Document:

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                                                                   EXHIBIT 10(z)

                   SECOND AMENDED AND RESTATED LOAN AGREEMENT

                                  By and Among:

                               PULTE FUNDING, INC.
                                  As Borrower,

                        ATLANTIC ASSET SECURITIZATION LLC
                                  As an Issuer,

                       JUPITER SECURITIZATION CORPORATION
                                  As an Issuer,

                       LA FAYETTE ASSET SECURITIZATION LLC
                                  As an Issuer,

                             CALYON NEW YORK BRANCH
                          As the Administrative Agent,
                       as a Bank and as a Managing Agent,

                    JPMORGAN CHASE BANK, NATIONAL ASSOCIATION
                       As a Bank and as a Managing Agent,

                               LLOYDS TSB BANK PLC
                                   As a Bank,

                                       and

                               PULTE MORTGAGE LLC
                                 As the Servicer

                           Dated as of August 19, 2005

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                                TABLE OF CONTENTS
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ARTICLE I GENERAL TERMS.................................................     2

  1.1.   Certain Definitions............................................     2
  1.2.   Other Definitional Provisions..................................    31

ARTICLE II AMOUNT AND TERMS OF COMMITMENT...............................    32

  2.1.   Maximum Facility Amount........................................    32
  2.2.   Promissory Notes...............................................    33
  2.3.   Notice and Manner of Obtaining Borrowings......................    33
  2.4.   Fees...........................................................    36
  2.5.   Prepayments....................................................    36
  2.6.   Business Days..................................................    36
  2.7.   Payment Procedures.............................................    36
  2.8.   The Reserve Account............................................    40
  2.9.   Interest Allocations...........................................    41
  2.10.  Interest Rates.................................................    42
  2.11.  Quotation of Rates.............................................    42
  2.12.  Default Rate...................................................    42
  2.13.  Interest Recapture.............................................    42
  2.14.  Interest Calculations..........................................    42
  2.15.  Interest Period................................................    43
  2.16.  Additional Costs...............................................    44
  2.17.  Additional Interest on Advances Bearing a Eurodollar Rate......    45
  2.18.  Consequential Loss.............................................    46
  2.19.  Replacement Banks..............................................    46

ARTICLE III COLLATERAL..................................................    46

  3.1.   Collateral.....................................................    46
  3.2.   Delivery of Collateral to Collateral Agent.....................    47
  3.3.   Redemption of Mortgage Collateral..............................    49
  3.4.   Correction of Mortgage Notes...................................    51
  3.5.   Collateral Reporting...........................................    52
  3.6.   Hedge Reports..................................................    52
  3.7.   [RESERVED].....................................................    52
  3.8.   Servicer Monthly Reporting.....................................    52
  3.9.   Servicer Annual Pipeline Reporting.............................    52
  3.10.  Servicer Periodic Reporting....................................    52

ARTICLE IV CONDITIONS PRECEDENT.........................................    53

  4.1.   Initial Borrowing.............................................     53
  4.2.   All Borrowings................................................     54
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<S>                                                                                  <C>
ARTICLE V REPRESENTATIONS AND WARRANTIES.......................................      55

   5.1.          Representations of the Borrower and the Servicer..............      55
   5.2.          Additional Representations of the Borrower....................      58
   5.3.          Additional Representations and Warranties of the Servicer.....      60
   5.4.          Survival of Representations...................................      61

ARTICLE VI AFFIRMATIVE COVENANTS...............................................      61

   6.1.          Financial Statements and Reports..............................      61
   6.2.          Taxes and Other Liens.........................................      63
   6.3.          Maintenance...................................................      64
   6.4.          Further Assurances............................................      64
   6.5.          Compliance with Laws..........................................      64
   6.6.          Insurance.....................................................      64
   6.7.          Accounts and Records..........................................      65
   6.8.          Right of Inspection...........................................      65
   6.9.          Notice of Certain Events......................................      65
   6.10.         Performance of Certain Obligations............................      66
   6.11.         Use of Proceeds; Margin Stock.................................      66
   6.12.         Notice of Default.............................................      67
   6.13.         Compliance with Transaction Documents.........................      67
   6.14.         Compliance with Material Agreements...........................      67
   6.15.         Operations and Properties.....................................      67
   6.16.         Performance Guarantor Credit Rating...........................      67
   6.17.         Take-Out Commitments..........................................      67
   6.18.         Collateral Proceeds...........................................      68
   6.19.         Environmental Compliance......................................      68
   6.20.         Closing Instructions..........................................      68
   6.21.         Special Affirmative Covenants Concerning Collateral...........      68
   6.22.         Corporate Separateness........................................      69

ARTICLE VII NEGATIVE COVENANTS.................................................      70

   7.1.          Limitations on Mergers and Acquisitions.......................      70
   7.2.          Fiscal Year...................................................      70
   7.3.          Business......................................................      71
   7.4.          Use of Proceeds...............................................      71
   7.5.          Actions with Respect to Collateral............................      71
   7.6.          Liens.........................................................      72
   7.7.          Employee Benefit Plans........................................      72
   7.8.          Change of Principal Office or Jurisdiction....................      72
   7.9.          No Commercial, A&D, Etc. Loans................................      72
   7.10.         Maximum Leverage..............................................      72
   7.11.         Indebtedness..................................................      72
   7.12.         Deposits to Collection Account................................      72
   7.13.         Transaction Documents.........................................      73
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<S>                                                                             <C>
               7.14.         Distributions, Etc. ...........................    73
               7.15.         Charter........................................    73

ARTICLE VIII   EVENTS OF DEFAULT............................................    73

               8.1.          Nature of Event................................    73
               8.2.          Default Remedies...............................    78
               8.3.          Paydowns.......................................    79
               8.4.          Waivers of Notice, Etc. .......................    79

ARTICLE IX     THE ADMINISTRATIVE AGENT.....................................    80

               9.1.          Authorization..................................    80
               9.2.          Reliance by Administrative Agent...............    80
               9.3.          Administrative Agent and Affiliates............    81
               9.4.          Lender Decision................................    81
               9.5.          Rights of the Administrative Agent.............    81
               9.6.          Indemnification of Administrative Agent........    81
               9.7.          UCC Filings....................................    82

ARTICLE X      INDEMNIFICATION..............................................    82

               10.1.         Indemnities by the Borrower....................    82
               10.2.         Contribution...................................    82

ARTICLE XI     ADMINISTRATION AND COLLECTION OF MORTGAGE LOANS..............    82

               11.1.         Designation of Servicer........................    82
               11.2.         Duties of Servicer.............................    83
               11.3.         Certain Rights of the Administrative Agent.....    83
               11.4.         Rights and Remedies............................    84
               11.5.         Indemnities by the Servicer....................    84

ARTICLE XII    THE MANAGING AGENTS..........................................    86

               12.1.         Authorization..................................    86
               12.2.         Reliance by Agent..............................    86
               12.3.         Agent and Affiliates...........................    87
               12.4.         Notices........................................    87
               12.5.         Lender Decision................................    87

ARTICLE XIII   MISCELLANEOUS................................................    87

               13.1.         Notices........................................    87
               13.2.         Amendments, Etc. ..............................    90
               13.3.         Invalidity.....................................    91
               13.4.         Restrictions on Informal Amendments............    91
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<S>                                                                          <C>
       13.5.     Cumulative Rights.......................................    91
       13.6.     Construction; Governing Law.............................    92
       13.7.     Interest................................................    92
       13.8.     Right of Offset.........................................    92
       13.9.     Successors and Assigns..................................    93
       13.10.    Survival of Termination.................................    95
       13.11.    Exhibits................................................    95
       13.12.    Titles of Articles, Sections and Subsections............    95
       13.13.    Counterparts............................................    95
       13.14.    No Proceedings..........................................    95
       13.15.    Confidentiality.........................................    96
       13.16.    Recourse Against Directors, Managers, Officers, Etc.....    96
       13.17.    Waiver of Jury Trial....................................    96
       13.18.    Consent to Jurisdiction; Waiver of Immunities...........    97
       13.19.    Costs, Expenses and Taxes...............................    97
       13.20.    Entire Second Restated Loan Agreement...................    98
       13.21.    Excess Funds............................................    98
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                             SCHEDULES AND EXHIBITS

Schedule I      Bank Commitments Percentages
Schedule II     Approved Investors
Schedule III    UCC Search
Schedule IV     Litigation

Exhibit A       Form of Assignment and Acceptance
Exhibit B       Form of Amended and Restated Subordination Agreement
Exhibit C       Form of Borrowing Request
Exhibit D       Form of Second Amended and Restated Collateral Agency Agreement
Exhibit D-1     Definitions - Section 1
Exhibit D-2     Form of Security Agreement - Section 3.1(a)
Exhibit D-3     Form of Amended and Restated Assignment of Account - Section
                3.1(b)
Exhibit D-4     Form of Assignment - Section 3.1(c) and Section 3.2(a)
Exhibit D-5     Form of Transfer Request
Exhibit D-5A(a) Form of Shipping Request (Conforming Loans)
Exhibit D-5A(b) Form of Shipping Request (Non-Conforming Loans)
Exhibit D-6(a)  Form of Bailee and Security Agreement Letter - Section
                3.4(b)(i)
Exhibit D-6(b)  Form of Bailee and Security Agreement Letter for Pool
                Custodian Section  3.4(b)(i)
Exhibit D-7     Form of Trust Receipt and Security Agreement for Approved
                Investors - Section 3.5

Exhibit D-8     Form of Collateral Agent Daily Report - Section 3.8(a)
Exhibit D-9     [Reserved]
Exhibit D-10    UCC Financing Statements - Section 3.1(d)
Exhibit D-11    [Reserved]
Exhibit D-12    Form of Assignment of Trade
Exhibit D-13    Form of Substitution Assignment
Exhibit E       Form of Promissory Note
Exhibit F       Form of Servicer Monthly Report
Exhibit G-1     Form of Amended and Restated Servicer Performance Guaranty
Exhibit G-2     Form of Amended and Restated Originator Performance Guaranty
Exhibit H-1     Form of Pulte Mortgage Quarterly Officer's Certificate
Exhibit H-2     Form of Borrower's Quarterly Officer's Certificate
Exhibit I-1     Form of Opinion of Counsel to Borrower on Corporate Matters
Exhibit I-2     Form of Opinion of Counsel to Borrower and Originator on
                Security Interest Matters
Exhibit J       Form of Opinion of Counsel to Originator on Bankruptcy Matters
Exhibit K       Form of Hedge Report
Exhibit L       [Reserved]
Exhibit M       Form of Servicer Periodic Report
Exhibit N       Form of Reserve Account Control Agreement
Exhibit O       Form of Collection and Paying Agreement

                                       v

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                   SECOND AMENDED AND RESTATED LOAN AGREEMENT
                           Dated as of August 19, 2005

            THIS SECOND AMENDED AND RESTATED LOAN AGREEMENT (this "Second
Restated Loan Agreement"), among PULTE FUNDING, INC., a Michigan corporation
(hereinafter, together with its successors and assigns, the "Borrower"), as the
Borrower, ATLANTIC ASSET SECURITIZATION LLC, a Delaware limited liability
company (hereinafter, together with its successors and assigns, "Atlantic"), as
an Issuer, JUPITER SECURITIZATION CORPORATION, a Delaware corporation
(hereinafter, together with its successors and assigns, "Jupiter"), as an
Issuer, LA FAYETTE ASSET SECURITIZATION LLC, as an Issuer ("La Fayette"), CALYON
NEW YORK BRANCH ("Calyon New York"), as a Bank, as the Administrative Agent and
as a Managing Agent, JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, a national bank
(hereinafter, together with its successors and assigns, "JPMorgan"), as a Bank
and as a Managing Agent, LLOYDS TSB BANK PLC, a banking corporation organized
under the laws of England (hereinafter, together with its successors and
assigns, "Lloyds"), as a Bank, and PULTE MORTGAGE LLC, a limited liability
company (hereinafter, together with its successors and assigns, "Pulte
Mortgage"), as Servicer.

                                    RECITALS

            1. Capitalized terms used in these Recitals and not defined in the
preamble above have the meanings set forth in Article I.

            2. The Borrower, Atlantic as an Issuer, Jupiter as an Issuer, Calyon
as a Bank, a Managing Agent and as the Administrative Agent, Lloyds as a Bank,
JPMorgan as a Bank and as a Managing Agent, and the Servicer have entered into
that certain Amended and Restated Loan Agreement dated as of August 23, 2002, as
further amended by the First Omnibus Amendment dated December 21, 2002, the
Second Omnibus Amendment dated August 25, 2003, the Third Omnibus Amendment
dated September 30, 2003 and the Fourth Omnibus Amendment dated September 20,
2004 (the "Original Loan Agreement").

            3. The Borrower, Atlantic as an Issuer, Jupiter as an Issuer, Calyon
as a Bank, a Managing Agent and as the Administrative Agent, Lloyds as a Bank,
JPMorgan as a Bank and as a Managing Agent, and the Servicer now wish to amend
and restate the Original Loan Agreement in order to add La Fayette as a party
thereto, and to amend certain other provisions thereof.

            4. The Originator is engaged in the business of originating,
acquiring, investing in, marketing and selling, for its own account, mortgage
loans that are made either to finance the purchase of one- to four-family
owner-occupied homes or to refinance loans secured by such properties.

            5. The Borrower has purchased, and may continue to purchase,
Eligible Mortgage Loans from the Originator, as determined from time to time by
the Borrower and the Originator.

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            6. In order to finance such purchases, the Borrower has requested
that the Lenders provide the Borrower with credit in the form of revolving loans
on the terms and conditions set forth herein.

            7. The Issuers may, in their sole discretion, and the Banks shall,
in each case subject to the terms and conditions contained in this Second
Restated Loan Agreement, make Advances to the Borrower secured by a lien on, and
security interest in, the Mortgage Loans and certain other Collateral.

            8. The Lenders have appointed the Administrative Agent as their
agent to perform certain administrative duties for the Lenders including, among
other things, the administration of the funding of the transactions hereunder
and the making of certain determinations hereunder and in connection herewith.

                                   AGREEMENTS

            In consideration of the recitals and the representations,
warranties, conditions, covenants and agreements made in this Second Restated
Loan Agreement, the sufficiency of which are acknowledged by all parties hereto,
the Borrower, the Lenders, the Servicer, the Managing Agents and the
Administrative Agent, intending to be legally bound, have established and hereby
amend and restate the provisions of the Original Loan Agreement. Accordingly,
the Borrower, the Lenders, the Administrative Agent, the Managing Agents and the
Servicer covenant and agree as follows:

                                   ARTICLE I

                                 GENERAL TERMS

      1.1. Certain Definitions.

            As used in this Second Restated Loan Agreement, the following terms
have the following meanings (such meanings to be equally applicable to both the
singular and plural forms of the terms defined):

            "ABR Allocation" is defined in Section 2.9.

            "Adjusted Liabilities" means, with respect to the Originator,
      without duplication, and at any time, the sum of (a) all amounts that
      should be reflected as liabilities on its balance sheet, plus (b) its
      total direct and indirect guaranty and other obligations in respect of
      borrowed money Indebtedness of others (calculated at the maximum amount of
      those obligations that is stated in the relevant documents or, if not so
      stated, that may reasonably be anticipated in good faith) plus (c) to the
      extent not already included in clause (a) above, its total funding
      obligations to originate or acquire Mortgage Loans that, in either case,
      are closed but not funded, minus (d) its total trade payables and accrued
      expenses incurred in the ordinary course of its business but unrelated to
      originating or acquiring any specific Mortgage Loan (including, without
      limitation, trade payables and accrued expenses owed to its Affiliates but
      excluding advances by its Affiliates and

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      interest on those advances), minus (e) the Originator's total
      deferred-federal-income tax liabilities.

            "Adjusted Net Worth" means, for the Originator, without duplication,
      and at any time, the sum of (a) its members' equity reflected on its
      balance sheet, plus (b) the remainder of (A) the income that Originator
      has deferred, for accounting purposes, pending the sale of Mortgage Loans
      in accordance with Statement of Financial Accounting Standards Number 91
      and Number 122, as each is published by the Financial Accounting Standards
      Board as of the date of this Second Restated Loan Agreement, minus (B)
      reasonable reserves for the federal income tax liabilities related to that
      deferred income.

            "Administrative Agent" means Calyon New York, in its capacity as
      administrative agent for the Lenders, or any successor administrative
      agent.

            "Administrative Agent's Account" means, the special account (account
      number 01-88485-3701-00-001, ABA No. 026008073) of Calyon New York
      maintained at the office of Calyon New York Branch at 1301 Avenue of the
      Americas, New York, New York.

            "Advance" means with respect to any Lender any amount disbursed by
      such Lender to the Borrower pursuant to Section 2.1 (or any conversion or
      continuation thereof).

            "Advance Rate" means (i) with respect to a Conforming Loan or a
      Jumbo Loan (other than a Super Jumbo Loan), ninety-eight percent (98%),
      (ii) with respect to an Alt-A Loan, ninety-seven percent (97%), or, if a
      FICO Score Trigger Event has occurred and is continuing, as reported to
      the Collateral Agent by the Servicer in the most recent Servicer Monthly
      Report, then zero, (iii) with respect to a Second Lien Loan or a Super
      Jumbo Loan, ninety-five percent (95%) and (iv) with respect to a Subprime
      Loan, ninety percent (90%).

            "Affected Party" means each Lender, the Administrative Agent, each
      Managing Agent, any bank party to a Liquidity Agreement and any permitted
      assignee or participant of any such bank, and any holding company of an
      Affected Party.

            "Affiliate" of any Person means (a) any other Person that, directly
      or indirectly, controls, is controlled by, or is under common control
      with, such Person, or (b) any other Person who is a director, manager,
      officer or employee (i) of such Person, or (ii) of any Person described in
      the preceding clause (a). For purposes of this definition, the term
      "control" (and the terms "controlled by" and "under common control with"),
      as used with respect to any Person, shall mean the possession or
      ownership, directly or indirectly, of the power either (x) to direct or
      cause the direction of the management and policies of such Person, whether
      by contract or otherwise, or (y) vote 10% or more of the securities having
      ordinary power in the election of directors or managers of such Person.

            "Agent" means each of the Administrative Agent and the Managing
      Agents.

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            "Alt-A Loan" means a Mortgage Loan (other than a Conforming Loan or
      a Jumbo Loan) that (1) does not conform to the conventional underwriting
      standards of Fannie Mae, Freddie Mac or Ginnie Mae but that is
      underwritten to Approved Investor guidelines (other than Fannie Mae,
      Freddie Mac or Ginnie Mae), within guidelines generally acceptable to
      industry norms for "Alt-A" loans, (2) has a demonstrated secondary market
      and are readily securitizable, (3) matches all applicable requirements for
      purchase under the requirements of a Take-Out Commitment specifically
      issued for the purchase of such Mortgage Loan, and (4) is a First Lien
      Mortgage Loan.

            "Alternate Base Rate" means:

            (i) for the Calyon New York Group, on any date, a fluctuating rate
      of interest per annum equal to the higher of:

                  (a) the rate of interest most recently announced by Calyon
          New York as its base rate; and

                  (b) the Federal Funds Rate (as defined below) most recently
          determined by the Administrative Agent plus 1.0% per annum; and

            (ii) for the JPMorgan Group, on any date, a fluctuating rate of
      interest per annum equal to the higher of:

                  (a) a rate per annum equal to the prime rate of interest
      announced from time to time by JPMorgan or its parent (which is not
      necessarily the lowest rate charged to any customer), changing when and as
      said prime rate changes; and

                  (b) the Federal Funds Rate (as defined below) most recently
      determined by JPMorgan plus 1.0% per annum.

      For purposes of this definition, "Federal Funds Rate" means, for any
      period, a fluctuating interest rate per annum equal (for each day during
      such period) to (i) the weighted average of the rates on overnight federal
      funds transactions with members of the Federal Reserve System arranged by
      federal funds brokers, as published for such day (or, if such day is not a
      Business Day, for the immediately preceding Business Day) by the Federal
      Reserve Bank of New York; or (ii) if such rate is not so published for any
      day that is a Business Day, the average of the quotations for such day on
      such transactions received by the Administrative Agent from three federal
      funds brokers of recognized standing selected by it. The Alternate Base
      Rate is not necessarily intended to be the lowest rate of interest
      determined by Calyon New York in connection with extensions of credit.

            "Annual Extension Date" shall mean (i) August 18, 2006, and (ii)
      thereafter, if consented to by the Lenders, the Managing Agents and the
      Administrative Agent pursuant to Section 2.1(b), the date that is
      specified by the Lenders, the Managing Agents and the Administrative Agent
      in the applicable consent, which date shall not be more than 364 days
      following the then effective Annual Extension Date.

            "Approved Investor" means:

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            (a) Fannie Mae, Freddie Mac or Ginnie Mae, or

            (b) any Person with short-term ratings of at least A-1, P-1 and F1
      from S&P, Moody's and Fitch, respectively, or long-term unsecured debt
      ratings (or in the case of a bank without such ratings that is the
      principal subsidiary of a bank holding company, the rating of the bank
      holding company) of at least AA, Aa2 and AA from S&P, Moody's, and Fitch,
      respectively, or

            (c) all other Persons as may be approved by the Managing Agents,
      which approvals may be subject to certain concentration limits but may not
      be unreasonably withheld or delayed;

      provided that (i) if an Approved Investor has a short-term rating or a
      long-term unsecured debt rating at the time such Person first becomes an
      "Approved Investor" and such Person's short-term ratings or long-term
      unsecured debt ratings are subsequently downgraded or withdrawn, such
      Person shall cease to be an "Approved Investor"; provided, further, that
      with respect to any Take-Out Commitments issued by such Person prior to
      the date of such downgrade or withdrawal, such Person shall cease to be an
      "Approved Investor" 60 days following such downgrade or withdrawal; and
      (ii) if an Approved Investor does not have a short-term rating or a
      long-term unsecured debt rating, such Person shall cease to be an
      "Approved Investor" upon prior written notice from either Managing Agent
      if such Managing Agent has good faith concerns about the future
      performance of such Person; provided, further, that with respect to any
      Take-Out Commitments issued by such Person prior to such notice, such
      Person shall cease to be an "Approved Investor" 60 days following such
      notice.

            As of the date of this Second Restated Loan Agreement, Schedule II
      hereto sets forth the Approved Investors pursuant to the preceding clauses
      (b) and (c) (and any applicable concentration limits). Schedule II shall
      be updated from time to time as Approved Investors are added or deleted or
      concentration limits are changed pursuant to the preceding clauses (b) and
      (c).

            "Assignment" is defined in the Second Restated Collateral Agency
      Agreement.

            "Assignment and Acceptance" means an assignment and acceptance
      agreement entered into by a Bank, an Eligible Assignee and the
      Administrative Agent, pursuant to which such Eligible Assignee may become
      a party to this Second Restated Loan Agreement, in substantially the form
      of Exhibit A hereto.

            "Atlantic" has the meaning set forth in the preamble to this Second
      Restated Loan Agreement.

            "Atlantic Program Agent" means Calyon New York, in its capacity as
      the collateral agent pursuant to a security agreement made by Atlantic for
      the benefit of certain creditors of Atlantic, and any successor to Calyon
      New York in such capacity.

            "Availability" means, at the time determined, the Maximum Facility
      Amount minus the Principal Debt owed to the Lenders.

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            "Available Collateral Value" means, at the time determined, the
      excess of the Collateral Value of all Eligible Mortgage Collateral over
      the Principal Debt.

            "Bailee and Security Agreement Letter" is defined in Section
      3.4(b)(i) of the Second Restated Collateral Agency Agreement.

            "Bank" means each of Calyon New York, JPMorgan, and Lloyds and each
      respective Eligible Assignee that shall become a party to the Second
      Restated Loan Agreement pursuant to an Assignment and Acceptance.

            "Bank Commitment" means (a) with respect to Calyon New York, Lloyds
      and JPMorgan, in its capacity as a Bank, the amount set forth on Schedule
      I hereto, and (b) with respect to a Bank that has entered into an
      Assignment and Acceptance, the amount set forth therein as such Bank's
      Bank Commitment, in each case as such amount may be reduced by each
      Assignment and Acceptance entered into between such Bank and an Eligible
      Assignee, and as may be further reduced (or terminated) pursuant to the
      next sentence. Any reduction (or termination) of the Maximum Facility
      Amount pursuant to the terms of this Second Restated Loan Agreement shall
      (unless otherwise agreed by all the Banks) reduce ratably (or terminate)
      each Bank's Bank Commitment. At no time shall the aggregate Bank
      Commitments of all Banks exceed the Maximum Facility Amount.

            "Bank Commitment Percentage" means, for any Bank, as of any date,
      the amount obtained by dividing such Bank's Bank Commitment on such date
      by the aggregate Bank Commitments of all Banks on such date. As of the
      date of this Second Restated Loan Agreement, the Bank Commitment
      Percentage for each Bank is as set forth on Schedule I hereto.

            "Bank Spread" means 1.00%.

            "Base Rate Advance" means an Advance that bears interest at a rate
      per annum determined on the basis of the Alternate Base Rate.

            "Borrower" has the meaning specified in the preamble of this Second
      Restated Loan Agreement.

            "Borrowing" means a borrowing of Advances consisting of Advances
      having the same Interest Period made hereunder by each of the Lenders on
      the same Business Day.

            "Borrowing Date" means the date, identified by the Borrower in the
      relevant Borrowing Request, as the date on which a Borrowing is to be
      made.

            "Borrowing Request" means a request, in the form of Exhibit C to
      this Second Restated Loan Agreement, for a Borrowing pursuant to Article
      ii.

            "Business Day" means (a) a day on which (i) commercial banks in New
      York City, New York, Chicago, Illinois and Denver, Colorado, are not
      authorized or required to be closed and (ii) commercial banks in the State
      in which the Collateral Agent has its

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      principal office are not authorized or required to be closed, and (b) if
      this definition of "Business Day" is utilized in connection with a
      Eurodollar Advance, a day on which dealings in United States dollars are
      carried out in the London interbank market.

            "Cash and Collateral Account" is account number 1928368, held at the
      Cash and Collateral Account Bank pursuant to the Collection and Paying
      Agreement.

            "Cash and Collateral Account Bank" means, initially, JPMorgan and,
      at any time, the institution then holding the Cash and Collateral Account
      in accordance with the terms of the Collection and Paying Agreement.

            "Collection and Paying Agreement" means the Collection and Paying
      Agreement, dated as of even date herewith, between the Borrower, the
      Servicer, the Administrative Agent, the Cash and Collateral Account Bank
      and the Collateral Agent.

            "Charter" means the Borrower's articles of incorporation or charter,
      as amended through the date of this Second Restated Loan Agreement.

            "Calyon New York" has the meaning set forth in the preamble of this
      Second Restated Loan Agreement and its successors and assigns.

            "Calyon New York Group" means Atlantic, La Fayette, Calyon New York,
      and each other Group Bank of Atlantic and La Fayette.

            "Closing Protection Rights" means any rights of the Originator or
      the Borrower to or under (i) a letter issued by a title insurance company
      to the Originator assuming liability for certain acts or failure to act on
      behalf of a named closing escrow agent, approved attorney or similar
      Person in connection with the closing of a Mortgage Loan transaction, (ii)
      a bond, insurance or trust fund established to protect a mortgage lender
      against a loss or damage resulting from certain acts or failure to act of
      a closing escrow agent, approved attorney, title insurance company or
      similar Person, or (iii) any other right or claim that the Originator or
      the Borrower may have against any Person for any loss or damage resulting
      from such Person's acts or failure to act in connection with the closing
      of a Mortgage Loan and the delivery of the related Mortgage Loan
      Collateral to the Collateral Agent, the Originator or to the Borrower.

            "Code" means the Internal Revenue Code of 1986, as amended from time
      to time.

            "Collateral" means Property that is subject to a Lien for the
      benefit of the holders of the Obligations.

            "Collateral Agent" means LaSalle Bank National Association, and its
      successors and assigns.

            "Collateral Agent Daily Report" is defined in Section 3.8(a) of the
      Second Restated Collateral Agency Agreement.

                                       7

<PAGE>

            "Collateral Deficiency" means, at any time, the amount by which the
      Principal Debt exceeds the lesser of (a) the Collateral Value of all
      Eligible Mortgage Collateral and (b) if the Collateral Agent holds no
      Eligible Mortgage Collateral, zero.

            "Collateral Proceeds" means all amounts received by the Borrower,
      the Servicer, the Administrative Agent, the Lenders, the Collateral Agent
      or any other Person, in respect of the Collateral, whether in respect of
      principal, interest, fees or other amounts, including, without limitation,
      (i) all amounts received pursuant to Take-Out Commitments, and (ii) with
      respect to any Mortgage Loan, all funds that are received from or on
      behalf of the related Obligors in payment of any amounts owed (including,
      without limitation, purchase prices, finance charges, escrow payments,
      interest and all other charges) in respect of such Mortgage Loan, or
      applied to such amounts owed by such Obligors (including, without
      limitation, insurance payments that Borrower or Servicer applies in the
      ordinary course of its business to amounts owed in respect of such
      Mortgage Loan and net proceeds of sale or other disposition of Property of
      the Obligor or any other party directly or indirectly liable for payment
      of such Mortgage Loan and available to be applied thereon).

            "Collateral Report" is defined in Section 6.1(f).

            "Collateral Value" means

            (A) with respect to each Eligible Mortgage Loan and at all times, an
      amount equal to the product of the Advance Rate for such Eligible Mortgage
      Loan multiplied by the least of:

                        (1) the lesser of the original principal amount of such
      Eligible Mortgage Loan or the acquisition price paid by Pulte
      Mortgage on the closing and funding of such Eligible Mortgage Loan;

                        (2) for each Eligible Mortgage Loan, a ratable amount
      determined by multiplying (a) the weighted average purchase price
      (expressed as a percentage of par) that Approved Investors are
      obligated to pay, pursuant to Take-Out Commitments, for all Eligible
      Mortgage Loans, as shown on the most recent Hedge Report, times (b)
      the outstanding principal amount of such Eligible Mortgage Loan; and

                        (3) while a Default or Event of Default is continuing,
      or upon request of either of the Managing Agents at any other time, the
      Market Value of such Eligible Mortgage Loan; and

            (B) with respect to the Collection Account, the balance of collected
      funds therein which is not subject to any Lien in favor of any Person
      other than the Lien in favor of the Administrative Agent for the benefit
      of the holders of the Obligations;

            provided, however, that

                                       8

<PAGE>

            (a) at any time, the portion of total Collateral Value that may be
      attributable to Jumbo Loans shall not exceed twenty percent (20%) of the
      Maximum Facility Amount;

            (b) at any time, the portion of total Collateral Value that may be
      attributable to Super Jumbo Loans shall not exceed ten percent (10%) of
      the Maximum Facility Amount, which percentage is a sublimit of clause (a)
      representing 50% of the 20% set forth in clause (a) above;

            (c) at any time, the portion of total Collateral Value that may be
      attributable to Alt-A Loans shall not exceed fifty percent (50%) of the
      Maximum Facility Amount; provided that (i) if an Obligor on any Alt-A Loan
      shall have a FICO Score of less than 650, or (ii) if an Alt-A Loan shall
      have a Loan-to-Value Ratio of more than 95% or a Combined Loan-to-Value
      Ratio of more than 100%, such Mortgage Loan shall have a Collateral Value
      of zero;

            (d) at any time, the portion of total Collateral Value that may be
      attributable to Subprime Loans shall not exceed five (5%) of the Maximum
      Facility Amount; provided that (i) if an Obligor on any Subprime Loan
      shall have a FICO Score of less than 600, or (ii) if a Subprime Loan shall
      have a Loan-to-Value Ratio of more than 90%, such Mortgage Loan shall have
      a Collateral Value of zero;

            (e) any Mortgage Loan with an original principal balance in excess
      of $1,000,000 or more and a Loan-to-Value Ratio of 75% or more shall have
      a Collateral Value of zero;

            (f) at any time, the portion of total Collateral Value that may be
      attributable to Mortgage Loans for which the Mortgage Notes have been
      withdrawn for correction pursuant to Section 3.5 of the Second Restated
      Collateral Agency Agreement shall not exceed five percent (5%) of the
      Maximum Facility Amount, as determined in accordance with said Section 3.5
      of the Second Restated Collateral Agency Agreement;

            (g) at any time, the portion of the total Collateral Value that may
      be attributable to any single Approved Investor listed on Schedule II
      pursuant to one or more Take-Out Commitments shall not exceed the
      concentration limit for such Approved Investor as set forth on Schedule II
      (as the same may be updated from time to time);

            (h) at any time, the portion of total Collateral Value that may be
      attributable to Mortgage Loans that have been Eligible Mortgage Loans (A)
      for more than 120 days shall not exceed ten percent (10%) of the Maximum
      Facility Amount or (B) for more than 180 days, shall be zero;

            (i) a Mortgage Loan that ceases to be an Eligible Mortgage Loan
      shall have a Collateral Value of zero;

            (j) at any time, (A) except the first five and last five Business
      Days of any month, the portion of total Collateral Value that may be
      attributable to Special Mortgage Loans with respect to which the related
      Principal Mortgage Documents have

                                       9

<PAGE>

      not been delivered to the Collateral Agent within nine (9) Business Days
      after the earlier of the date the Assignment was delivered to the
      Collateral Agent or, if different, the date of origination of the related
      Mortgage Loan shall not exceed thirty percent (30%) of the Maximum
      Facility Amount, and (B) during the first five and last five (5) Business
      Days of any month, the portion of total Collateral Value that may be
      attributable to Special Mortgage Loans with respect to which the related
      Principal Mortgage Documents have not been delivered to the Collateral
      Agent within nine (9) Business Days after the earlier of the date the
      Assignment was delivered to the Collateral Agent or, if different, the
      date of origination of the related Mortgage Loan shall not exceed fifty
      percent (50%) of the Maximum Facility Amount; and

            (k) at any time, the portion of total Collateral Value that may be
      attributable to Second Lien Loans shall not exceed ten percent (10%) of
      the Maximum Facility Amount; provided that (A) if any Obligor on any
      Second Lien Loan shall have a FICO Score of less than 670 or (B) if any
      Second Lien Loan shall have a Combined Loan-to-Value Ratio of more than
      100%, such Mortgage Loan shall have a Collateral Value of zero.

            "Collection Account" means the account established by the Borrower
      pursuant to Section 2.7(b) to be used for (i) the deposit of proceeds from
      the sale of Mortgage Loans; and (ii) the payment of the Obligations, it
      being understood that such account is assigned to the Administrative Agent
      pursuant to the Restated Assignment of Account and the Administrative
      Agent has the authority to direct the transfer of all funds in the
      Collection Account.

            "Collection Account Bank" means, initially, JPMorgan and, at any
      time, the institution then holding the Collection Account in accordance
      with the terms of the Restated Assignment of Account.

            "Collection Period" means each calendar month, beginning on the
      first day of each month and including the last day of the month.

            "Collections" means, with respect to any Mortgage Asset, all cash
      collections (other than in respect of escrows payable under the related
      Mortgage Loan) and other cash proceeds of such Mortgage Asset.

            "Combined Loan-to-Value Ratio" means, with respect to any Mortgage
      Loan, the fraction, expressed as a percentage found by dividing the
      original principal balance of all Mortgage Loans secured by a particular
      property by the value of such Mortgage Loans, such value being measured by
      (i) the appraised value of such property at such time, if a Mortgage Loan
      is a refinance of an existing loan or (ii) the lower of the sales price of
      the related property at the time of origination of a Mortgage Loan or the
      appraised value of such property at such time, if a Mortgage Loan is a
      purchase money loan.

            "Commercial Paper Notes" means short-term promissory notes issued or
      to be issued by the Issuers to fund or maintain their Advances or
      investments in other financial assets.

                                       10

<PAGE>

            "Commercial Paper Rate" for any Interest Period for the related
      Advance means:

            (a) with respect to the portion of such Advance funded by Atlantic
      or La Fayette, a rate per annum equal to the sum of:

                  (i) the rate or, if more than one rate, the weighted average
            of the rates, determined by converting to an interest-bearing
            equivalent rate per annum the discount rate (or rates) at which
            Commercial Paper Notes having a term equal to such Interest Period
            and to be issued to fund or to maintain such Advance by Atlantic
            (including, without limitation, Principal Debt and accrued and
            unpaid interest), may be sold by any placement agent or commercial
            paper dealer selected by the Managing Agent for Atlantic and La
            Fayette, as agreed between each such agent or dealer and the
            Managing Agent for Atlantic and La Fayette, plus

                  (ii) the commissions and charges charged by such placement
            agent or commercial paper dealer with respect to such Commercial
            Paper Notes expressed as a percentage of such face amount and
            converted to an interest-bearing equivalent rate per annum, plus

                  (iii) the Conduit Spread,

            (b) with respect to the portion of any Advance funded by Jupiter for
      any Interest Period, the per annum rate that reflects:

                  (i) the rate (or, if more than one rate, the weighted average
            of the rates) at which Commercial Paper Notes having a term equal to
            such Interest Period (or portion thereof) may be sold by any
            placement agent or commercial paper dealer selected by Jupiter, as
            agreed between each such agent or dealer and Jupiter, provided,
            however, that if the rate (or rates) as agreed between any such
            agent or dealer and Jupiter is a discount rate (or rates), the
            "Commercial Paper Rate" for such Interest Period (or portion
            thereof) shall be the rate (or if more than one rate, the weighted
            average of the rates) resulting from Jupiter's converting such
            discount rate (or rates) to an interest-bearing equivalent rate per
            annum, plus

                  (ii) accrued commissions in respect of placement agents and
            commercial paper dealers and issuing and paying agent fees incurred,
            in respect of such Commercial Paper Notes, minus

                  (iii) any payment received on such date net of expenses in
            respect of Consequential Losses related to the prepayment of any
            purchased interest of Jupiter pursuant to the terms of any
            receivable purchase facilities funded substantially with such
            Commercial Paper Notes plus

                  (iv) the Conduit Spread; or

            (c) such other rate as Atlantic, La Fayette or Jupiter and the
      Borrower shall agree to in writing.

                                       11

<PAGE>

            "Conduit Spread" means the margin set forth in the Restated Agent
      Fee Letter or the Managing Agent Fee Letter, as applicable.

            "Conforming Loan" means (i) a Mortgage Loan that complies with all
      applicable requirements for purchase under a Fannie Mae, Freddie Mac or
      similar Governmental Authority standard form of conventional mortgage loan
      purchase contract, then in effect, or (ii) an FHA Loan or a VA Loan, that,
      in either case, is a First Lien Mortgage Loan.

            "Consequential Loss" means any loss or expense that any Affected
      Party may reasonably incur in respect of a Borrowing as a consequence of
      (a) any failure or refusal of Borrower (for any reasons whatsoever other
      than a default by the Administrative Agent, any Lender or any Affected
      Party) to take such Borrowing after Borrower shall have requested it under
      this Second Restated Loan Agreement, (b) any prepayment or payment of such
      Borrowing that is a Eurodollar Advance or CP Advance on a day other than
      the last day of the Interest Period applicable to such Borrowing, (c) any
      prepayment of any Borrowing that is not made in compliance with the
      provisions of Section 2.5(a); provided, that so long as an Event of
      Default shall not have occurred, the Borrower shall not be responsible for
      any Consequential Loss resulting from changes in the Settlement Date made
      by the Administrative Agent, as described in the proviso contained in the
      definition of "Settlement Date," or (d) Borrower's failure to make a
      prepayment after giving notice under Section 2.5(a) that a prepayment will
      be made.

            "CP Allocation" is defined in Section 2.9.

            "Debtor Laws" means all applicable liquidation, conservatorship,
      bankruptcy, fraudulent transfer or conveyance, moratorium, arrangement,
      receivership, insolvency, reorganization or similar laws from time to time
      in effect affecting the rights of creditors generally.

            "Default" means any condition or event that, with the giving of
      notice or lapse of time or both and unless cured or waived, would
      constitute an Event of Default.

            "Default Rate" means a per annum rate of interest equal from day to
      day to the lesser of (a) the sum of the Alternate Base Rate plus two
      percent and (b) the Maximum Rate.

            "Default Ratio" means as of the end of any Collection Period, the
      ratio of (i) the principal amount of all Mortgage Loans that were
      Defaulted Mortgage Loans at such time, to (ii) the aggregate principal
      amount of all Mortgage Loans at such time.

            "Defaulted Mortgage Loan" means a Mortgage Asset under which the
      Obligor is 30 or more days in payment default or has taken any action, or
      suffered any event of the type described in Section 8.1(f), 8.1(g) or
      8.1(h) or is in foreclosure.

            "Deferred Income" means the amount of income that the Originator or
      Borrower has deferred, for accounting purposes, pending the sale of
      Mortgage Loans, in accordance with Statement of Financial Accounting
      Standards Number 91 ("SFAS 91") and

                                       12

<PAGE>

      Statement of Financial Accounting Standards Number 122 ("SFAS 122"), each
      as currently published by the Financial Accounting Standards Board.

            "Drawdown Termination Date" means the earliest to occur of:

            (a) August 18, 2006, or such earlier date determined in accordance
      with Section 2.1(b), or

            (b) the date on which the Maximum Facility Amount is terminated by
      the Borrower pursuant to Section 2.1(d), and

            (c) the date, on or after the occurrence of an Event of Default,
      determined pursuant to Section 8.1.

            "Effective Date" means August 19, 2005.

            "Eligible Assignee" means (i) Calyon New York or any of its
      Affiliates, JPMorgan or any of its Affiliates, or Lloyds or any of its
      Affiliates, (ii) any Person managed by Calyon New York or any of its
      Affiliates, JPMorgan or any of its Affiliates or Lloyds or any of its
      Affiliates, respectively, or (iii) any financial or other institution that
      is approved by the Administrative Agent (such approval not to be
      unreasonably withheld or delayed) and is approved by the Borrower (such
      approval not to be unreasonably withheld or delayed), provided that no
      such approval by the Borrower shall be required at any time when a Default
      or an Event of Default shall have occurred and be continuing.

            "Eligible Institution" means any depository institution, organized
      under the laws of the United States or any state, having capital and
      surplus in excess of $200,000,000, the deposits of which are insured to
      the full extent permitted by law by the Federal Deposit Insurance
      Corporation and that is subject to supervision and examination by federal
      or state banking authorities; provided that such institution also must
      have a rating of A or higher with respect to long-term deposit obligations
      from Moody's, A2 or higher with respect to long-term deposit obligations
      from S&P and A or higher with respect to long-term deposit obligations
      from Fitch. If such depository institution publishes reports of condition
      at least annually, pursuant to law or to the requirements of the aforesaid
      supervising or examining authority, then the combined capital and surplus
      of such corporation shall be deemed to be its combined capital and surplus
      as set forth in its most recent report of condition so published.

            "Eligible Mortgage Collateral" means Eligible Mortgage Loans and the
      Collection Account.

            "Eligible Mortgage Loan" means a Mortgage Loan:

            (a) that (i) is a closed and funded Mortgage Loan, (ii) has a
      maximum term to maturity of 30 years and the proceeds of which were used
      either to finance a portion of the purchase price of a Property encumbered
      by the related Mortgage or to refinance a loan secured by such Property,
      and (iii) is secured by a perfected first-priority Lien

                                       13

<PAGE>

      (except Second Lien Loans) on residential real Property consisting of
      land and a one-to-four family dwelling thereon which is completed and
      ready for owner occupancy, including townhouses and condominiums;

            (b) that is a Conforming Loan, a Jumbo Loan, a Subprime Loan, a
      Second Lien Loan or an Alt-A Loan;

            (c) in which the Administrative Agent has been granted and continues
      to hold a perfected (other than actual delivery of the Mortgage Note to
      the Collateral Agent for Special Borrowings), first-priority (except
      Second Lien Loans), security interest for the benefit of the holders of
      the Obligations;

            (d) for which the Mortgage Note is endorsed (without recourse) in
      blank and each of such Mortgage Loan and the related Mortgage Note is a
      legal, valid and binding obligation of the Obligor thereof;

            (e) for which, other than in respect of Special Mortgage Loans, the
      Principal Mortgage Documents have been received by the Collateral Agent
      and are in form and substance reasonably acceptable to the Collateral
      Agent;

            (f) that is either eligible for delivery or designated for delivery
      under a Take-Out Commitment from an Approved Investor; provided that no
      more than 45 days have lapsed since the date on which any documentation
      relating to such Mortgage Loan was shipped to the related Approved
      Investor;

            (g) that, immediately prior to the pledge thereof under the Second
      Restated Collateral Agency Agreement, together with the related Mortgage
      Loan Collateral, is owned beneficially by Borrower free and clear of any
      Lien of any other Person other than the Administrative Agent for the
      benefit of the holders of the Obligations (except Second Lien Loans);

            (h) that, together with the related Mortgage Loan Collateral, does
      not contravene any Governmental Requirements applicable thereto
      (including, without limitation, the Real Estate Settlement Procedures Act
      of 1974, as amended, and all laws, rules and regulations relating to
      usury, truth-in-lending, fair credit billing, fair credit reporting, equal
      credit opportunity, fair debt collection practices, privacy and other
      applicable federal and state consumer protection laws) and with respect to
      which no party to the related Mortgage Loan Collateral is in violation of
      any Governmental Requirements (or procedure prescribed thereby) if such
      violation would impair the collectability of such Mortgage Loan or the
      saleability of such Mortgage Loan under the applicable Take-Out
      Commitment;

            (i) that, (i) is not a Seasoned Mortgage Loan or an Uncovered
      Mortgage Loan; (ii) is not a Defaulted Mortgage Loan; (iii) has not
      previously been sold to an Approved Investor and repurchased by Borrower;
      (iv) is a Mortgage Loan with respect to which the Principal Mortgage
      Documents relating to such Mortgage Loan were delivered to the Collateral
      Agent within the time frame set forth in Section 2.3(c); provided that,
      upon delivery of such Principal Mortgage Documents to the Collateral
      Agent, such

                                       14

<PAGE>

      Mortgage Loans may subsequently qualify as Eligible Mortgage Loans to
      support Borrowings subsequent to such delivery; or (v) has an original
      principal balance not in excess of $1,500,000.00;

            (j) that if the Mortgage Loan Collateral has been withdrawn for
      correction pursuant to Section 3.4 such Mortgage Loan Collateral has been
      returned to the Collateral Agent within 14 calendar days after withdrawal
      as required by Section 3.4;

            (k) that is denominated and payable in U.S. dollars in the United
      States and the Obligor of which is a natural person who is a U.S. citizen
      or resident alien or a corporation or other legal entity organized under
      the laws of the United States or any State thereof or the District of
      Columbia;

            (l) that is not subject to any right of rescission, setoff,
      counterclaim or other dispute whatsoever; (m) that was acquired by the
      Borrower from the Originator within 60 days after its Mortgage Origination
      Date;

            (n) that is covered by the types and amounts of insurance required
      by Section 6.6(b);

            (o) with respect to which all representations and warranties made by
      the Originator in the Second Restated Repurchase Agreement are true and
      correct in all material respects and with respect to which all loan level
      covenants made in the Second Restated Repurchase Agreement have been
      complied with;

            (p) that is subjected to the following "Quality Control" measures by
      personnel of the Originator before the Mortgage Note is funded by the
      Originator:

                  (i) for those Mortgage Loans not originated by the Originator,
      is underwritten by the Originator prior to funding thereof and after
      performance of all underwriting procedures, is submitted to the
      Originator for closing where it is reviewed for thoroughness and
      compliance (including truth-in-lending, good faith estimates and
      other disclosures) and a verbal verification of employment and
      in-file credit report are obtained;

                  (ii) with respect to which, all Mortgage Loan Collateral is
      prepared by the Originator and submitted to the closing agent at the
      time of funding the related Mortgage Loan; and

            (q) that, if it is a Second Lien Loan, has a Combined Loan-to-Value
      Ratio of 100% or less and with respect to which the related first lien
      loan is owned by Pulte Mortgage.

            For the purpose of this definition:

                                       15

<PAGE>

            (x) A Mortgage Loan is "eligible for delivery" under a Take-Out
      Commitment if (i) it is designated to be transferred to a Governmental
      Authority, (ii) the underwriting criteria utilized and the Mortgage Loan
      Collateral either match, or are in respect of interest rates (which rates
      must bear a relationship to prevailing current market rates of interest
      for loans with similar maturities), term, product type and delivery period
      representative of the terms for purchase that are specified in a Take-Out
      Commitment, and (iii) the aggregate outstanding principal of all such
      Mortgage Loans is not more than the aggregate Take-Out Commitments'
      unutilized amount (i.e. taking in account all such Mortgage Loans already
      allocated to the aggregate Take-Out Commitments for purposes of
      determining Eligible Mortgage Loans whether or not already delivered by
      the Borrower to the Collateral Agent).

            (y) A Mortgage Loan is "designated for delivery" under a Take-Out
      Commitment if (i) it is designated to be transferred to any entity other
      than a Governmental Authority and (ii) the underwriting criteria utilized
      in approving such Mortgage Loan conform to the underwriting criteria, and
      the terms of repayment (including interest rate and "term to maturity")
      and other terms and conditions of the Mortgage Loan Collateral match the
      specifications of that specific Take-Out Commitment that designates that
      particular Mortgage Loan for purchase.

            "Employee Plan" means an employee pension benefit plan covered by
      Title IV of ERISA and established or maintained by the Originator.

            "ERISA" means the Employee Retirement Income Security Act of 1974,
      as amended from time to time.

            "ERISA Affiliate" means any corporation, trade or business that is,
      along with the Performance Guarantor, a member of a controlled group of
      corporations or a controlled group of trades or businesses, as described
      in Sections 414(b), (c), (m) and (o) of the Code, or Section 4001 of
      ERISA.

            "Eurocurrency Liabilities" has the meaning assigned to that term in
      Regulation D of the Federal Reserve Board, as in effect from time to time.

            "Eurodollar Advance" means an Advance that bears interest at a rate
      per annum determined on the basis of the Eurodollar Rate.

            "Eurodollar Rate" means, for any Interest Period for any Eurodollar
      Advance, for each Lender, an interest rate per annum (expressed as a
      decimal and rounded upwards, if necessary, to the nearest one hundredth of
      a percentage point) equal to the offered rate per annum for deposits in
      U.S. Dollars in a principal amount of not less than $10,000,000 for such
      Interest Period as of 11:00 A.M., London time, two Business Days before
      (and for value on) the first day of such Interest Period, that appears on
      the display designated as "Page 3750" on the Telerate Service (or such
      other page as may replace "Page 3750" on that service for the purpose of
      displaying London interbank offered rates of major banks); provided, that
      if such rate is not available on any date when the Eurodollar Rate is to
      be determined, then an interest rate per annum determined by the
      Administrative
<PAGE>

Agent equal to the rate at which it would offer deposits in United States
dollars to prime banks in the London interbank market for a period equal to such
Interest Period and in a principal amount of not less than $10,000,000 at or
about 11:00 A.M. (London time) on the second Business Day before (and for value
on) the first day of such Interest Period.

      "Eurodollar Reserve Percentage" means, with respect to any Bank and for
any Interest Period for such Bank's Eurodollar Advance, the reserve percentage
applicable during such Interest Period (or, if more than one such percentage
shall be so applicable, the daily average of such percentages for those days in
such Interest Period during which any such percentage shall be so applicable)
under regulations issued from time to time by the Federal Reserve Board (or any
successor) for determining the maximum reserve requirement (including, without
limitation, any emergency, supplemental or other marginal reserve requirement)
for such Bank with respect to liabilities or assets consisting of or including
Eurocurrency Liabilities having a term equal to such Interest Period.

      "Event of Default" is defined in Section 8.1.

      "Excess Spread" means, as of the last day of each Collection Period, an
amount equal to the Portfolio Yield for such Collection Period minus the
weighted average applicable interest rate on the Advances at such time minus the
weighted average Conduit Spread and/or Bank Spread, as applicable during such
Collection Period minus the Servicing Fee for such Collection Period determined
in accordance with clause (a) of the definition of Portfolio Yield.

      "Facility" means the borrowing facility provided by the Lenders as
described in Section 2.1 of this Second Restated Loan Agreement.

      "Fannie Mae" means the government sponsored enterprise formerly known as
the Federal National Mortgage Association, or any successor thereto.

      "Federal Reserve Board" means the Board of Governors of the Federal
Reserve System, or any successor thereto.

      "Fee Letter" means the Restated Agent Fee Letter or the Managing Agent Fee
Letter.

      "FHA" means the Federal Housing Administration, or any successor thereto.

      "FHA Loan" means a Mortgage Loan, the ultimate payment of which is
partially or completely insured by the FHA or with respect to which there is a
current, binding and enforceable commitment for such insurance issued by the
FHA.

      "FICO Score" means, with respect to the Obligor under a particular
Mortgage Loan, a credit rating established by Fair Isaac Corporation or a market
competitor.

      "FICO Score Trigger Event" means that (i) the Pool Weighted Average FICO
Score has been reported, in a Servicer Monthly Report, as less than 690, (ii) a
period of

                                       17
<PAGE>

seven Business Days has elapsed from the date of receipt of such report by the
Administrative Agent and (iii) the Servicer has not provided to the
Administrative Agent a revised Pool Weighted Average FICO Score that exceeds
690.

      "Financial Officer" means (i) with respect to the Servicer or the
Originator, the chief financial officer, treasurer or a vice president having
the knowledge and authority necessary to prepare and deliver the financial
statements and reports required pursuant to Sections 6.1(b) and Section 3.8 and
(ii) with respect to the Performance Guarantor, the chief financial officer, the
vice president-treasurer or the senior vice president-finance.

      "First Lien Mortgage Loan" means a loan secured by a perfected first lien
mortgage on real property.

      "Fitch" means Fitch, Inc., and any successor thereto.

      "Freddie Mac" means the Federal Home Loan Mortgage Corporation, or any
successor thereto.

      "GAAP" means generally accepted accounting principles as in effect in the
United States from time to time.

      "Ginnie Mae" means the Government National Mortgage Association, or any
successor thereto.

      "Governmental Authority" means any nation or government, any agency,
department, state or other political subdivision thereof, or any instrumentality
thereof, and any entity exercising executive, legislative, judicial, regulatory
or administrative functions of or pertaining to government. Governmental
Authority shall include, without limitation, each of Freddie Mac, Fannie Mae,
FHA, HUD, VA and Ginnie Mae.

      "Governmental Requirement" means any law, statute, code, ordinance, order,
rule, regulation, judgment, decree, injunction, franchise, permit, certificate,
license, authorization or other requirement (including, without limitation, any
of the foregoing that relate to energy regulations and occupational, safety and
health standards or controls and any hazardous materials laws) of any
Governmental Authority that has jurisdiction over either Originator, the
Servicer, the Collateral Agent or the Borrower or any of their respective
Properties.

      "Group" means the Calyon New York Group and the JPMorgan Group.

      "Group Bank" means (1) with respect to Atlantic and La Fayette, Calyon New
York, each Bank that has entered into an Assignment and Acceptance with Calyon
New York, including Lloyds, and each assignee (directly or indirectly) of any
such Bank, which assignee has entered into an Assignment and Acceptance and (2)
with respect to Jupiter, JPMorgan, each Bank that has entered into an Assignment
and Acceptance with JPMorgan and each assignee (directly or indirectly) of any
such Bank, which assignee has entered into an Assignment and Acceptance.

                                       18
<PAGE>

      "Group Bank Commitment Percentage" means, the sum of all of the Bank
Commitment Percentages of all of the Banks in a Group.

      "Hedge Report" means, with respect to any Conforming Loans included in the
Eligible Mortgage Collateral that is to be sold to a Governmental Authority, a
report prepared by the Servicer and pursuant to Section 3.6 hereof, showing, as
of the close of business on the previous Business Day, all trades that have been
assigned to the Administrative Agent, for the benefit of holders of the
Obligations, and the following information with respect to such trades: (i)
trade counterparty, (ii) trade amount, (iii) coupon, (iv) price, (v) type of
security, (vi) date of trade, and (vii) such other information as the
Administrative Agent may reasonably request in the form of Exhibit K hereto.

      "HUD" means the Department of Housing and Urban Development, or any
successor thereto.

      "Indebtedness" means, for any Person, without duplication, and at any
time, (a) all obligations required by GAAP to be classified on such Person's
balance sheet as liabilities, (b) obligations secured (or for which the holder
of the obligations has an existing contingent or other right to be so secured)
by any Lien existing on property owned or acquired by such Person, (c)
obligations that have been (or under GAAP should be) capitalized for financial
reporting purposes, and (d) all guaranties, endorsements, and other contingent
obligations with respect to obligations of others.

      "Indemnified Amounts" is defined in Section 10.1.

      "Indemnified Party" is defined in Section 10.1.

      "Interest Period" is defined in Section 2.15.

      "Issuer Facility Amount" means (a) with respect to Atlantic and La Fayette
on an aggregate basis, $300,000,000 and (b) with respect to Jupiter on an
aggregate basis, $250,000,000. Any reduction (or termination) of the Maximum
Facility Amount pursuant to the terms of this Second Restated Loan Agreement
shall reduce ratably (or terminate) the Issuer Facility Amount of each Issuer.

      "Issuer" means any of Atlantic, Jupiter and La Fayette.

      "JPMorgan" has the meaning as set forth in the preamble to this Second
Restated Loan Agreement.

      "JPMorgan Group" means Jupiter, JPMorgan and each other Group Bank of
Jupiter.

      "Jumbo Loan" means a Mortgage Loan (other than a Conforming Loan) that (1)
is underwritten to Approved Investor guidelines (other than Fannie Mae, Freddie
Mac or Ginnie Mae), (2) matches all applicable requirements for purchase under
the requirements of a Take-Out Commitment issued for the purchase of such
Mortgage Loan, (3) differs from a Conforming Loan solely because the principal
amount of such

                                       19
<PAGE>

Mortgage Loan exceeds the limit set for Conforming Loans by Fannie Mae or
Freddie Mac from time to time, but shall not exceed $1,000,000; provided, that a
Jumbo Loan having an original principal balance in excess of $1,000,000 but not
more than $1,500,000 shall qualify as a Super Jumbo Loan and (4) is a First Lien
Mortgage Loan. The term Jumbo Loan includes Super Jumbo Loans.

      "Jupiter" has the meaning as set forth in the preamble of this Second
Restated Loan Agreement.

      "La Fayette" has the meaning as set forth in the preamble of this Second
Restated Loan Agreement.

      "La Fayette Program Agent" means Calyon New York, in its capacity as the
collateral agent pursuant to a security agreement made by La Fayette for the
benefit of certain creditors of La Fayette, and any successor to Calyon New York
in such capacity.

      "Lenders" means, collectively, the Issuers and the Banks.

      "Lien" means any mortgage, pledge, hypothecation, assignment, deposit
arrangement, encumbrance, lien (whether statutory, consensual or otherwise), or
other security arrangement of any kind (including, without limitation, any
conditional sale or other title retention agreement, any financing lease having
substantially the same economic effect as any of the foregoing, and the filing
of any financing statement under the uniform commercial code or comparable law
of any jurisdiction in respect of any of the foregoing).

      "Liquidity Agreement" means, with respect to an Issuer, a liquidity loan
agreement, liquidity asset purchase agreement or similar agreement entered into
by the related Group Banks and providing for the making of loans to such Issuer,
or the purchase of Advances (or interests therein) from such Issuer, to support
the Issuer's payment obligations under its Commercial Paper Notes.

      "Lloyds" has the meaning specified in the preamble of this Second Restated
Loan Agreement.

      "Loan-to-Value Ratio" means, with respect to any Mortgage Loan, the
fraction, expressed as a percentage found by dividing the original principal
balance of a Mortgage Loan by the value of the Mortgage Loan, such value being
measured by (i) the appraised value of such property at such time, if the
Mortgage Loan is a refinance of an existing lien or (ii) the lower of the sales
price of the related property at the time of origination of the Mortgage Loan or
the appraised value of such property at such time, if the Mortgage Loan is a
purchase money loan.

      "Majority Banks" means, at any time, Banks, including Banks that have
become party to this Second Restated Loan Agreement pursuant to an Assignment
and Acceptance, having outstanding Advances equal to more than 67% of the
aggregate outstanding Advances held by Banks or, if no Advance is then
outstanding from any Bank, Banks having more than 67% of the Bank Commitments.

                                       20
<PAGE>

      "Majority Group Banks" means, as to any Group Banks included in the
related Group having outstanding Bank Commitments equal to more than 50% of the
aggregate outstanding Bank Commitments of the Banks in such Group.

      "Managing Agent" means, with respect to Atlantic and La Fayette, Calyon
New York or any successor managing agent designated by such party; and, with
respect to Jupiter, JPMorgan or any successor managing agent designated by such
party.

      "Managing Agent Fee Letter" means the letter agreement pertaining to fees
among the Borrower and JPMorgan, as a Managing Agent, as the same may be
amended, restated, supplemented or otherwise modified from time to time.

      "Managing Agent's Account" means, (a) with respect to Calyon New York, the
special account (account number 01-25680-001-00-001, ABA No. 026008073 of Calyon
New York maintained at Calyon New York Branch, 1301 Avenue of the Americas, New
York, New York, and (b) with respect to JPMorgan, the special account (account
number 5948118, ABA No. 021000021) of Jupiter maintained at JPMorgan Chase Bank,
National Association, One Bank One Plaza, Chicago, Illinois 60670.

      "Market Value" means at the time determined, for any (a) Mortgage Loan
(other than a Non-Conforming Loan), the market value of such Mortgage Loan based
upon the then most recent posted net yield for 30-day mandatory future delivery
furnished by Fannie Mae and published and distributed by Telerate Mortgage
Services, or, if such posted net yield is not available from Telerate Mortgage
Services, such posted net yield obtained by the Administrative Agent from Fannie
Mae, or (b) Non-Conforming Loan, or any other Mortgage Loan while the posted
rate is not available from Fannie Mae, the value determined by the
Administrative Agent in good faith.

      "Material Adverse Effect" means, with respect to any Person, any material
adverse effect on (i) the validity or enforceability of this Second Restated
Loan Agreement, the Notes or any other Transaction Document, (ii) the business,
operations, total Property or financial condition of such Person, (iii) the
Collateral taken as a whole, (iv) the enforceability or priority of the Lien in
favor of the Administrative Agent on any significant portion of the Collateral,
or (v) the ability of such Person to fulfill its obligations under this Second
Restated Loan Agreement, the Notes or any other Transaction Document.

      "Maximum Facility Amount" means $550,000,000, as such amount may be
reduced pursuant to Section 2.1(c) of this Second Restated Loan Agreement."

      "Maximum Rate" means the maximum non-usurious rate of interest that, under
applicable law, each of the Lenders is permitted to contract for, charge, take,
reserve, or receive on the Obligations.

      "MERS" means Mortgage Electronic Registration Systems, Inc., a Delaware
corporation.

                                       21
<PAGE>

      "MERS Designated Mortgage Loan" means a Mortgage Loan registered to or by
the Originator on the MERS electronic mortgage registration system.

      "Moody's" means Moody's Investors Service, Inc., and any successor
thereto.

      "Mortgage" means a mortgage or deed of trust or other security instrument
creating a Lien on real property, on a standard form as approved by Fannie Mae,
Freddie Mac or Ginnie Mae or such other form as the Originator determines is
satisfactory for any Approved Investor unless otherwise directed by the
Administrative Agent and communicated to the Collateral Agent.

      "Mortgage Assets" means, collectively, all of the Mortgage Loans,
including funds advanced for Mortgage Loans that ultimately fail to close, and
all Take-Out Commitments.

      "Mortgage Loan" means a loan evidenced by a Mortgage Note and secured by a
Mortgage, the beneficial interest of which has been acquired by the Borrower
from the Originator by purchase pursuant to the Second Restated Repurchase
Agreement (with the record owner thereof being the Originator or, in the case of
a MERS Designated Mortgage Loan, MERS as nominee for the Originator, and its
successors and assigns).

      "Mortgage Loan Collateral" means all Mortgage Notes and related Principal
Mortgage Documents, Other Mortgage Documents, and other Collateral.

      "Mortgage Note" means a promissory note, on a standard form approved by
Fannie Mae, Freddie Mac or Ginnie Mae or such other form as the Originator
determines is satisfactory for any Approved Investor unless otherwise directed
by the Administrative Agent and communicated to the Collateral Agent.

      "Mortgage Origination Date" means, with respect to each Mortgage Loan, the
date that is the later of (1) the date of the Mortgage Note or (2) the date such
Mortgage Loan was funded and disbursed to or at the direction of the Obligor.

      "Multiemployer Plan" means a multiemployer plan defined in Sections 3(37)
or 4001(a)(3) of ERISA or Section 414(f) of the Code to which Borrower or any
ERISA Affiliate is making or has made (or is accruing or has accrued an
obligation to make) contributions.

      "Net Worth" of a Person means, as of any date of determination, the total
stockholder's equity (including capital stock, additional paid-in capital and
retained earnings after deducting treasury stock) that would appear on a balance
sheet of such Person prepared as of such date in accordance with GAAP but
excluding the value of any investment made by such Person in an unconsolidated
Subsidiary.

      "Non-Conforming Loan" means a Subprime Loan, a Jumbo Loan, a Second Lien
Loan or an Alt-A Loan.

                                       22
<PAGE>

      "Note" means each or any of the promissory notes executed by the Borrower,
substantially in the form of Exhibit E hereto, together with all renewals,
extensions, and replacements for any such note.

      "Obligations" means any and all present and future indebtedness,
obligations, and liabilities of the Borrower to any of the Lenders, the
Collateral Agent, the Managing Agents, each Affected Party, each Indemnified
Party and the Administrative Agent, and all renewals, rearrangements and
extensions thereof, or any part thereof, arising pursuant to this Second
Restated Loan Agreement or any other Transaction Document, and all interest
accrued thereon, and attorneys' fees and other costs incurred in the drafting,
negotiation, enforcement or collection thereof, regardless of whether such
indebtedness, obligations, and liabilities are direct, indirect, fixed,
contingent, joint, several or joint and several.

      "Obligor" means (i) with respect to each Mortgage Note included in the
Collateral, the obligor on such Mortgage Note and (ii) with respect to any other
agreement included in the Collateral, any person from whom the Originator or the
Borrower is entitled to performance.

      "Original Loan Agreement" means the Amended and Restated Loan Agreement,
dated as of August 23, 2002, by and among the Borrower, Atlantic, as an Issuer,
Jupiter, as an Issuer, Calyon New York, as a Bank and as the Administrative
Agent, Lloyds, as a Bank, JPMorgan, as a Bank, and the Servicer, as amended by
the First Omnibus Amendment dated December 21, 2002, the Second Omnibus
Amendment dated August 25, 2003, the Third Omnibus Amendment dated September 30,
2003 and the Fourth Omnibus Amendment dated September 20, 2004.

      "Originator" means Pulte Mortgage LLC, a limited liability company, and
its successors and assigns.

      "Other Company" means the Performance Guarantor and all of its
Subsidiaries except the Borrower.

      "Other Mortgage Documents" is defined in Section 3.2(c).

      "PBGC" means the Pension Benefit Guaranty Corporation or any successor
thereto.

      "Performance Guarantor" means Pulte.

      "Permitted Investments" means book-entry securities, negotiable
instruments or securities represented by instruments in bearer or registered
form that evidence any of the following:

      (a) direct obligations of, and obligations fully guaranteed by, the United
States of America or any agency or instrumentality of the United States of
America, the obligations of which are backed by the full faith and credit of the
United States of America;

                                       23
<PAGE>

      (b) (i) demand and time deposits in, certificates of deposits of, bankers'
acceptances issued by, or federal funds sold by, any depository institution or
trust company incorporated under the laws of the United States of America, any
State thereof or the District of Columbia or any foreign depository institution
with a branch or agency licensed under the laws of the United States of America
or any State, subject to supervision and examination by Federal and/or State
banking authorities and having a rating of P-1 by Moody's, a rating of at least
A-1 by S&P and a rating of at least F1 by Fitch at the time of such investment
or contractual commitment providing for such investment or otherwise approved in
writing by each Rating Agency or (ii) any other demand or time deposit or
certificate of deposit that is fully insured by the Federal Deposit Insurance
Corporation;

      (c) repurchase obligations with respect to (i) any security described in
clause (a) above or (ii) any other security issued or guaranteed by an agency or
instrumentality of the United States of America, in either case entered into
with a depository institution or trust company (acting as principal) described
in clause (b)(i) above;

      (d) short-term securities bearing interest or sold at a discount issued by
any corporation incorporated, or any entity formed, under the laws of the United
States of America or any State, the short-term unsecured obligations of which
have a rating of at least P-1 by Moody's, a rating of at least A-1 by S&P and a
rating of at least F1 by Fitch at the time of such investment; provided,
however, that securities issued by any particular corporation or other entity
will not be Permitted Investments to the extent that investment therein will
cause the then outstanding principal amount of securities issued by such
corporation or other entity and held in the Reserve Account to exceed 10% of
amounts held in the Reserve Account;

      (e) commercial paper having a rating of at least P-1 by Moody's, a rating
of at least A-1 by S&P and a rating of least F1 by Fitch at the time of such
investment or pledge as security;

      (f) money market funds whose investments consist solely of one of the
foregoing; or

      (g) any other investments approved in writing by each Rating Agency.

      "Permitted Transferee" is defined in Section 3.3(c).

      "Person" means any individual, corporation (including a business trust),
limited liability company, partnership, joint venture, association, joint stock
company, trust, unincorporated organization, Governmental Authority, or any
other form of entity.

      "Pool Weighted Average FICO Score" means, as of any date, an amount,
reported in the most recent Servicer Monthly Report, equal to the ratio of (a)
the sum, for all Alt-A Loans, of the product for each Alt-A Loan of (i) its FICO
Score and (ii) its original principal balance to (b) the sum of the original
principal balances of all Alt-A Loans.

                                       24
<PAGE>

      "Portfolio Yield" means, with respect to any Collection Period, the
percentage equivalent to the amount computed as of the last day of such
Collection Period by multiplying (i) 12 by (ii) (a) the aggregate amount of
interest accrued (whether or not paid) with respect to all Eligible Mortgage
Loans included in the Collateral during such Collection Period divided by (b)
the daily average outstanding principal amount of all Eligible Mortgage Loans
included in the Collateral during such Collection Period.

      "Primary Obligations" means, at the time determined, the sum of Principal
Debt plus accrued and unpaid interest thereon through the end of the then
current Interest Period, plus accrued and unpaid fees under Section 2.4(b).

      "Principal Debt" means, at the time determined, the unpaid principal
balance of all Advances under this Second Restated Loan Agreement.

      "Principal Mortgage Documents" is defined in Section 3.2(b).

      "Program Documents" means, in the case of the Issuers, each Liquidity
Agreement relating to this Second Restated Loan Agreement and the other
documents executed and delivered in connection therewith, as each may be
amended, supplemented or otherwise modified from time to time.

      "Property" means any interest in any kind of property or asset, whether
real, personal or mixed, or tangible or intangible.

      "Pulte" means Pulte Homes, Inc., a Michigan corporation, and its
successors and assigns (formerly known as Pulte Corporation).

      "Pulte Funding, Inc." has the meaning set forth in the preamble to this
Second Restated Loan Agreement.

      "Pulte Mortgage" has the meaning set forth in the preamble to this Second
Restated Loan Agreement.

      "Rating Agency" means S&P, Moody's and Fitch.

      "Regulation T, U, X and Z," respectively, mean Regulation T, U, X and Z
promulgated by the Federal Reserve Board as in effect from time to time, or any
successor regulations thereto.

      "Regulatory Change" means, relative to any Affected Party:

      (a) any change in (or the adoption, implementation, change in the phase-in
or commencement of effectiveness of) any:

            (i) United States federal or state law or foreign law applicable to
such Affected Party;

                                       25
<PAGE>

            (ii) regulation, interpretation, directive, requirement or request
(whether or not having the force of law) applicable to such Affected Party of
(A) any court, government authority charged with the interpretation or
administration of any law referred to in clause (a)(i) or (B) any fiscal,
monetary or other authority having jurisdiction over such Affected Party; or

            (iii) GAAP or regulatory accounting principles applicable to such
Affected Party and affecting the application to such Affected Party of any law,
regulation, interpretation, directive, requirement or request referred to in
clause (a)(i) or (a)(ii) above;

      (b) any change in the application to such Affected Party of any existing
law, regulation, interpretation, directive, requirement, request or accounting
principles referred to in clause (a)(i), (a)(ii) or (a)(iii) above; or

      (c) the issuance, publication or release of any regulation,
interpretation, directive, requirement or request of a type described in clause
(a)(ii) above to the effect that the obligations of any Bank under the
applicable Liquidity Agreement are not entitled to be included in the zero
percent category of off-balance sheet assets for purposes of any risk-weighted
capital guidelines applicable to such Bank or any related Affected Party.

      "Required Reserve Account Amount" means, on any date, 0.50% of the Maximum
Facility Amount on such date.

      "Requirement of Law" as to any Person means the articles of incorporation,
or certificate of formation, and by-laws, or limited liability company
agreement, or other organizational or governing documents of such Person, and
any law, statute, code, ordinance, order, rule, regulation, judgment, decree,
injunction, franchise, permit, certificate, license, authorization or other
determination, direction or requirement (including, without limitation, any of
the foregoing that relate to energy regulations and occupational, safety and
health standards or controls and any hazardous materials laws) of any
Governmental Authority, in each case applicable to or binding upon such Person
or any of its Property or to which such Person or any of its Property is
subject.

      "Reserve Account" is defined in Section 2.8, it being understood that such
account is assigned to the Administrative Agent pursuant to the Reserve Account
Control Agreement and the Administrative Agent has the authority to direct the
transfer of all funds in the Reserve Account.

      "Reserve Account Bank" means the institution then holding the Reserve
Account pursuant to Section 2.8.

      "Reserve Account Control Agreement" means the Reserve Account Control
Agreement, dated as of December 22, 2000, among the Borrower, the Servicer, the
Administrative Agent and the Reserve Account Bank, substantially in the form
attached hereto as Exhibit N, as amended, modified or supplemented.

                                       26
<PAGE>

      "Restated Agent Fee Letter" means the amended and restated letter
agreement pertaining to fees of the Administrative Agent and Calyon New York, as
Managing Agent, among the Borrower, the Administrative Agent and Calyon New
York, as Managing Agent, as the same maybe amended, restated, supplemented or
otherwise modified from time to time.

      "Restated Assignment of Account" means the Amended and Restated Assignment
of Account dated as of August 23, 2002, among the Borrower, Calyon New York as
the secured party, the Servicer and LaSalle Bank National Association,
substantially in the form attached as Exhibit D-3 to the Second Restated
Collateral Agency Agreement, as amended, modified or supplemented.

      "Restated Originator Performance Guaranty" means the Amended and Restated
Originator Performance Guaranty, in the form attached hereto as Exhibit G-2,
made by the Performance Guarantor in favor of the Borrower, and assigned to the
Administrative Agent for the benefit of the Lenders.

      "Restated Performance Guaranties" means, collectively, the Restated
Servicer Performance Guaranty, in the form attached hereto as Exhibit G-1, made
by the Performance Guarantor in favor of the Administrative Agent for the
benefit of the Lenders, and the Restated Originator Performance Guaranty, in the
form attached hereto as Exhibit G-2, made by the Performance Guarantor in favor
of the Borrower and assigned to the Administrative Agent for the benefit of the
Lenders.

      "Restated Servicer Performance Guaranty" means the Amended and Restated
Servicer Performance Guaranty, in the form attached hereto as Exhibit G-1, made
by the Performance Guarantor in favor of the Administrative Agent for the
benefit of the Lenders.

      "Restated Subordination Agreement" means the Amended and Restated
Subordination Agreement, substantially in the form attached as Exhibit B hereto,
executed by the Performance Guarantor and certain of its Affiliates in favor of
the Borrower and the Administrative Agent for the benefit of the holders of the
Obligations.

      "S&P" means Standard & Poor's Rating Services, a Division of The
McGraw-Hill Companies, Inc., and any successor thereto.

      "Seasoned Mortgage Loan" means, as of any date, a Mortgage Loan with a
Mortgage Origination Date that is more than 180 days prior to such date.

      "Second Lien Loan" means a Mortgage Loan secured by particular property
with respect to which at least one other higher-priority Mortgage Loan exists
secured by the same property.

      "Second Restated Collateral Agency Agreement" means the Second Amended and
Restated Collateral Agency Agreement, dated as of the date hereof, among the
Borrower, the Collateral Agent and the Administrative Agent, substantially in
the form of

                                       27
<PAGE>

Exhibit D hereto, as amended, supplemented, restated or otherwise modified from
time to time.

      "Second Restated Loan Agreement" means this Second Amended and Restated
Loan Agreement, as amended, modified or supplemented from time to time.

      "Second Restated Repurchase Agreement" means the Master Repurchase
Agreement, dated as of December 22, 2000, and the Second Amended and Restated
Addendum to the Master Repurchase Agreement, dated as of the date of this Second
Restated Loan Agreement between the Originator, as Seller, and the Borrower, as
purchaser, as the same may be amended, modified or restated from time to time.

      "Security Agreement" means the Security Agreement dated as of December 22,
2000, among the Borrower, the Collateral Agent and the Administrative Agent in
the form attached as Exhibit D-2 to the Second Restated Collateral Agency
Agreement, as amended, modified or supplemented.

      "Security Instruments" means (a) the Second Restated Collateral Agency
Agreement, (b) the Security Agreement, (c) the Restated Assignment of
Account,(d) the Reserve Account Control Agreement, (e) the Collection and Paying
Agreement, and (f) such other executed documents as are or may be necessary to
grant to the Administrative Agent a perfected first, prior and continuing
security interest in and to the Collateral and any and all other agreements or
instruments now or hereafter executed and delivered by or on behalf of the
Borrower in connection with, or as security for the payment or performance of,
all or any of the Obligations, as amended, modified or supplemented.

      "Servicer" means at any time the Person then authorized pursuant to
Section 11.1 to administer and collect Mortgage Loans on behalf of the Lenders.
The initial Servicer shall be Pulte Mortgage.

      "Servicer Default" means (a) any Event of Default, to the extent relating
to the Servicer, arising under Sections 8.1(a), (b), (c), (d), (e), (f), (g),
(h), (i), (j), (k), (l), (m), (n), (o), (u), (v) or (w) in each case, without
giving effect to any provisions in such sections that make such sections
applicable only so long as the Servicer and the Originator are the same
entities, (b) if the Servicer is the Originator, the Performance Guarantor shall
cease to own, directly or indirectly, at least 75% of each class of the
outstanding capital stock of the Servicer, or (c) if the Servicer is the
Originator, the Servicer's Net Worth shall be less than $10,000,000.

      "Servicer Fee" is defined in Section 2.4(b).

      "Servicer Monthly Report" is defined in Section 3.8.

      "Servicer Periodic Report" is defined in Section 3.10.

      "Settlement Date" means (a) for purposes of determining fees set forth in
the Fee Letters, (i) the 10th day of each of October, January, April and July,
commencing

                                       28
<PAGE>

October 10, 2002 or, if such day is not a Business Day, the next succeeding
Business Day, or (ii) on and after the Drawdown Termination Date, the 10th day
of each calendar month or, if such day is not a Business Day, the next
succeeding Business Day, provided, however, that the Administrative Agent may,
with the consent of the Managing Agents, by notice to the Borrower and the
Servicer, select other days to be Settlement Dates (including days occurring
more frequently than once per month) and (b) for all other purposes, the 10th
day of each calendar month or, if such day is not a Business Day, the next
succeeding Business Day, commencing September 10, 2002, provided, however, on
and after the Drawdown Termination Date, the Administrative Agent may, with the
consent of the Managing Agents, by notice to the Borrower and the Servicer,
select other days to be Settlement Dates (including days occurring more
frequently than once per month)

      "Shipping Request" means the shipping request presented by the Borrower to
the Collateral Agent substantially on one of the forms attached as Exhibits
D-5A(a) and D-5A(b) (as amended, modified or supplemented from time to time as
agreed to by the Administrative Agent, the Borrower and the Collateral Agent).

      "Shortfall Amount" means, with respect to the last day of any Interest
Period or any Settlement Date, the excess, if any, of (a) all amounts due
pursuant to (i) Section 2.7(c)(iii)(B) or Section 2.7(c)(iv)(C) on the last day
of such Interest Period occurring prior to, on or after the Drawdown Termination
Date, as applicable, (ii) 2.7(c)(iii)(A), (C), (D), or (H) on any such
Settlement Date occurring prior to the Drawdown Termination Date or (iii)
Section 2.7(c)(iv)(A), (B), (D), (E), or (G) on any such Settlement Date
occurring on or after the Drawdown Termination Date, over (b) the sum of the
collections then held by the Servicer for the Lenders and the Administrative
Agent pursuant to Section 2.7(c)(ii) plus collected funds then on deposit in the
Collection Account.

      "Sixty-Day Default Ratio" means as of the end of any Collection Period,
the ratio of (i) the principal amount of all Mortgage Loans with respect to
which the Obligor is 60 or more days in payment default or has taken any action,
or suffered any event of the type described in Section 8.1(f), (g) or (h) or is
in foreclosure at such time, to (ii) the aggregate principal amount of all
Mortgage Loans at such time.

      "Special Borrowing" is defined in Section 2.3(c).

      "Special Indemnified Amounts" is defined in Section 11.5.

      "Special Indemnified Party" is defined in Section 11.5

      "Special Mortgage Loans" is defined in Section 2.3(c).

      "Subprime Loan" means a Mortgage Loan (other than a Conforming Loan, a
Jumbo Loan, an Alt-A Loan or a Second Lien Loan) that (1) is underwritten to
Approved Investor guidelines, (2) matches all applicable requirements for
purchase under the requirements of a Take-Out Commitment specifically issued for
the purchase of such Mortgage Loan, and (3) differs from a Conforming Loan
because of the credit quality of

                                       29
<PAGE>

the Obligor, and is originated by the Originator or by a correspondent of the
Originator using the established underwriting guidelines for subprime loans of
the Originator, which are the same underwriting guidelines that the Originator
uses to originate subprime loans for sales into the secondary mortgage market.

      "Subsidiary" means, with respect to any Person, any corporation or limited
liability company or other entity of which securities having ordinary voting
power to elect a majority of the board of directors or managers or other persons
performing similar functions are at the time directly or indirectly owned by
such Person, or one or more of its Subsidiaries, or by such Person and one or
more of its Subsidiaries.

      "Super Jumbo Loan" means a Jumbo Loan having an original principal balance
in excess of $1,000,000 but equal to or less than $1,500,000.

      "Take-Out Commitment" means a current, valid, binding, enforceable,
written commitment, issued by an Approved Investor, to purchase one or more
Mortgage Loans from the Originator prior to the date that is 120 days (or 180
days to the extent Collateral Value may include Mortgage Loans that have been
Eligible Mortgage Loans for more than 120 days pursuant to paragraph (f) of the
definition of Collateral Value) from the date that such Mortgage Loan first
becomes Eligible Mortgage Collateral and at a specified price and in amounts,
form and substance reasonably satisfactory to the Managing Agents, which
commitment is not subject to any term or condition (i) that is not customary in
commitments of like nature or (ii) that, in the reasonably anticipated course of
events, cannot be fully complied with prior to the expiration thereof, which
commitment has been assigned to the Borrower (partial assignments being
permitted so long as the amount assigned (together with all other Take-Out
Commitments) fully covers the amount of the Eligible Mortgage Collateral) and in
which a perfected and first-priority security interest has been granted by the
Borrower to the Administrative Agent; provided, that upon receipt of the actual
written confirmation (each, a "Trade Confirmation") of such trade duly executed
by the Originator and the trade counterparty, and promptly upon request of the
Administrative Agent, the Originator must provide such trade confirmation to the
Administrative Agent. The Administrative Agent, on behalf of the Lenders shall
have the right, without notice, to review such Trade Confirmation at the office
of, and with the officers of, the Originator during normal business hours.

      "Transaction Documents" means any of this Second Restated Loan Agreement,
the Notes, the Second Restated Collateral Agency Agreement, the Second Restated
Repurchase Agreement, the Restated Subordination Agreement, the Restated
Originator Performance Guaranty, the Restated Servicer Performance Guaranty, the
Fee Letters, the Original Loan Agreement, the Original Notes, the Security
Instruments, the Original Collateral Agency Agreement, the Original Repurchase
Agreement, the Original Administrative Agent Fee Letter, the Original
Subordination Agreement, the Original Servicer Performance Guaranty, the
Original Originator Performance Guaranty and any and all other agreements or
instruments now or hereafter executed and delivered by or on behalf of the
Borrower in connection with, or as security for the payment or performance of
any or all of the Obligations, as any of such documents may be renewed, amended,
restated or supplemented from time to time.

                                       30
<PAGE>

            "Transfer Request" is defined in Section 3.3(a).

            "UCC" means the Uniform Commercial Code as adopted in the applicable
      state, as the same may hereafter be amended.

            "Uncovered Mortgage Loan" means a Mortgage Loan that would be an
      Eligible Mortgage Loan but for the expiration, forfeiture, termination, or
      cancellation of, or default under, the relevant Take-Out Commitment.

            "VA" means the Department of Veterans Affairs, or any successor
      thereto.

            "VA Loan" means a Mortgage Loan, the payment of which is partially
      or completely guaranteed by the VA under the Servicemen's Readjustment Act
      of 1944, as amended, or Chapter 37 of Title 38 of the United States Code
      or with respect to which there is a current binding and enforceable
      commitment for such a guaranty issued by the VA.

            "Warehouse Credit Agreement" means the Fifth Amended and Restated
      Revolving Credit Agreement dated as of June 30, 2004, as amended from time
      to time, with JPMorgan as administrative agent, Pulte Mortgage and certain
      lenders named therein.

      1.2. Other Definitional Provisions.

            (a) Unless otherwise specified therein, all terms defined in this
Second Restated Loan Agreement have the above-defined meanings when used in the
Notes or any other Transaction Document, certificate, report or other document
made or delivered pursuant hereto.

            (b) The words "hereof," "herein," "hereunder" and similar terms when
used in this Second Restated Loan Agreement shall refer to this Second Restated
Loan Agreement as a whole and not to any particular provision of this Second
Restated Loan Agreement, and article, section, subsection, schedule and exhibit
references herein are references to articles, sections, subsections, schedules
and exhibits to this Second Restated Loan Agreement unless otherwise specified.

            (c) As used herein, in the Notes or in any other Transaction
Document, certificate, report or other document made or delivered pursuant
hereto, accounting terms relating to any Person and not specifically defined in
this Second Restated Loan Agreement or therein shall have the respective
meanings given to them under GAAP.

            (d) All accounting and financial terms used -- and compliance with
each financial covenant -- in the Transaction Documents shall be determined
under GAAP; however, unless the Administrative Agent has agreed (in writing) to
the contrary, the determinations concerning the financial covenants found in
Sections 7.1 and 7.10 and the Net Worth of the Servicer (so long as the
Originator is the Servicer), including determinations of Deferred Income under
SFAS 91 and SFAS 122, shall be made under GAAP, and SFAS 91 and SFAS 122, as in
effect on the date of this Second Restated Loan Agreement. All accounting
principles shall be

                                       31
<PAGE>

applied on a consistent basis so that the accounting principles in a current
period are comparable in all material respects to those applied during the
preceding comparable period.

                                   ARTICLE II

                         AMOUNT AND TERMS OF COMMITMENT

      2.1. Maximum Facility Amount.

            (a) Subject to the terms of this Second Restated Loan Agreement and
so long as (i) the total Principal Debt related to the Facility does not exceed
the Maximum Facility Amount, (ii) the Principal Debt owed to the Lenders never
exceed the total Collateral Value of all Eligible Mortgage Collateral, (iii) no
Borrowing ever exceeds the Availability, and (iv) Borrowings are only made on
Business Days before the Drawdown Termination Date, each Issuer may, each in its
sole discretion, make an Advance ratably in accordance with the Bank Commitment
of its Group Bank, and if an Issuer does not make such Advance, its Group Banks
shall, ratably in accordance with their Bank Commitments, make such Advance, to
the Borrower from time to time in such amounts as may be requested by the
Borrower pursuant to Section 2.3, so long as each Borrowing is the least of (x)
the Availability, (y) the Available Collateral Value as of such date, and (z)
$15,000,000 or an integral multiple of $10,000 in excess thereof. Within the
limits of the Maximum Facility Amount, the Borrower may borrow, prepay (whether
pursuant to Section 2.5 or Section 3.3(a) of this Second Restated Loan Agreement
or otherwise), and reborrow under this Section 2.1.

            (b) The Borrower may, from time to time by written request to the
Lenders, the Managing Agents, and the Administrative Agent (each such notice
being an "Extension Request") given not later than 90 days and not sooner than
120 days prior to each Annual Extension Date, request an extension of the then
applicable Annual Extension Date. If the Lenders, the Managing Agents, and the
Administrative Agent consent, in their sole discretion, to such Extension
Request, then (x) the Drawdown Termination Date shall not occur as of the then
applicable Annual Extension Date and (y) the Annual Extension Date shall be
extended as described in the definition of "Annual Extension Date." Any such
extension may be accompanied by such additional fees as the parties shall
mutually agree. Notwithstanding anything else to the contrary, the Drawdown
Termination Date shall occur automatically, without further action on the part
of the Lenders, the Managing Agents or the Administrative Agent, on the then
current Annual Extension Date unless an Extension Request has been granted
pursuant to this paragraph. If the Lenders in the JPMorgan Group decline to
consent to an extension requested pursuant to this Section 2.1, but the Lenders
in the Calyon New York Group nevertheless desire to consent to the extension or
confirmation, then the extension shall be granted, and at the option of the
Managing Agent of the Calyon New York Group, either (a) the Maximum Facility
Amount shall be reduced by the Bank Commitments of the Banks in the JPMorgan
Group on the anniversary date immediately following the Extension Request or (b)
the Managing Agent of the Calyon New York Group shall find a replacement for the
JPMorgan Group. If the Lenders in the Calyon New York Group decline to consent
to the extension, but the Lenders in the JPMorgan Group nevertheless desire to
consent to the extension, then the extension shall be granted, and Calyon New
York shall cease to be the Administrative Agent and JPMorgan shall become the
Administrative Agent hereunder, and, at the option of the Managing

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<PAGE>

Agent of the JPMorgan Group, either (a) the Maximum Facility Amount shall be
reduced by the Bank Commitments of the Banks in the Calyon New York Group on the
anniversary date immediately following the Extension Request or (b) the Managing
Agent of the JPMorgan Group shall find a replacement for the Calyon New York
Group. To the extent that a Group Bank declines to extend the Drawdown
Termination Date, the Obligations of such Group Bank will be repaid pursuant to
Section 2.7(c)(iii) hereof.

            (c) The Borrower may, upon at least thirty (30) days prior
irrevocable notice to the Managing Agents and the Administrative Agent, but no
more than once every three months, reduce the Maximum Facility Amount; provided,
however, that each partial reduction shall be in the aggregate amount of
$10,000,000 or integral multiples of $1,000,000 in excess thereof; provided
further, however that no such reduction shall reduce the Maximum Facility Amount
below the greater of (i) the total Principal Debt owed to the Lenders and (ii)
$75,000,000. Any partial reduction in the Maximum Facility Amount will reduce
the Bank Commitment of each Bank Group ratably.

            (d) The Borrower may, upon at least thirty (30) days' prior
irrevocable notice to the Administrative Agent and the Managing Agents,
terminate the Maximum Facility Amount in its entirety upon payment in full of
all Obligations.

      2.2. Promissory Notes.

            The Advances made by each of the Lenders related to each Group
pursuant to this Article II shall be evidenced by separate Notes each
substantially in the form set forth in Exhibit E-1 (in the case of Lenders in
the Calyon New York Group) or Exhibit E-2 (in the case of Lenders in the
JPMorgan Group) hereto, each in the maximum principal amount of such Group's
related Issuer Facility Amount. Each Managing Agent on behalf of the Lenders in
its Group shall record in its records the date and amount of each Advance to the
Borrower and each repayment thereof. The information so recorded shall be
rebuttable presumptive evidence of the accuracy thereof. The failure to so
record, in the absence of manifest error, any such information or any error in
so recording any such information shall not, however, limit or otherwise affect
the obligations of the Borrower hereunder or under the Notes to pay the
principal of all Advances, together with interest accruing thereon.

      2.3. Notice and Manner of Obtaining Borrowings.

            (a) Borrowings.

                  (i) The Borrower shall give the Administrative Agent and each
      Managing Agent notice of each request for a Borrowing pursuant to a
      Borrowing Request, and in accordance with the provisions of Section 4.2
      hereof. On the Borrowing Date specified in the Borrowing Request and
      subject to all other terms and conditions of this Second Restated Loan
      Agreement, each Issuer may, in its sole discretion, make available to its
      Managing Agent at the office of its Managing Agent set forth in Section
      13.1, in immediately available funds, its pro rata share of the Borrowing.

                  (ii) In the event that an Issuer shall elect not to fund an
      Advance requested by the Borrower, each Group Bank of such Issuer agrees
      that it shall, on the

                                       33
<PAGE>

      Borrowing Date specified in the Borrowing Request and subject to all other
      terms and conditions of this Second Restated Loan Agreement, make
      available to its Managing Agent at the office of its Managing Agent set
      forth in Section 13.1, in immediately available funds, an amount equal to
      the product of (x) such Bank's Bank Commitment Percentage of the Group
      Bank Commitment Percentage, multiplied by (y) the portion of such
      Borrowing that such Issuer has elected not to fund.

                  (iii) After each Managing Agent's receipt of funds pursuant to
      the preceding paragraph (i) or (ii) and upon fulfillment of the applicable
      conditions set forth in Article IV, each Managing Agent will make such
      funds available to the Borrower a like amount of immediately available
      funds. So long as the Borrower is otherwise entitled to make a specific
      Borrowing, Borrowing Requests that are received by each Managing Agent by
      4:00 p.m. (eastern time) on a Business Day will be funded on the next
      Business Day following receipt of the Borrowing Request.

                  (iv) Notwithstanding the foregoing, a Bank shall not be
      obligated to make Advances under this Section 2.3 at any time to the
      extent that the principal amount of all Advances made by such Bank would
      exceed such Bank's Bank Commitment less the outstanding and unpaid
      principal amount of any loans or purchases made by such Bank under a
      Liquidity Agreement. Each Bank's obligation shall be several, such that
      the failure of any Bank to make available to the Borrower any funds in
      connection with any Borrowing shall not relieve any other Group Bank of
      its obligation, if any, hereunder to make funds available on the date of
      such Borrowing, but no Group Bank shall be responsible for the failure of
      any other Group Bank to make funds available in connection with any
      Borrowing.

            (b) Type of Loan.

                  (i) Each Advance by an Issuer shall initially be funded by the
      issuance of Commercial Paper Notes by such Issuer.

                  (ii) Each Advance by a Bank shall be either a Base Rate
      Advance or a Eurodollar Advance, as determined pursuant to Section
      2.15(b).

            (c) Special Borrowings. The Borrower may from time to time request
that certain Borrowings be funded prior to the delivery to the Collateral Agent
of the corresponding Principal Mortgage Documents (individually, a "Special
Borrowing"; collectively, "Special Borrowings"). Advances in respect of Special
Borrowings shall be made in accordance with Section 2.3(a), subject to the terms
and conditions of this Second Restated Loan Agreement, including, without
limitation, the following additional terms and conditions:

                  (i) Pursuant to an Assignment, the Borrower shall grant to the
      Administrative Agent for the benefit of the holders of the Obligations,
      from the Borrowing Date of each Special Borrowing, a perfected,
      first-priority security interest in the Mortgage Loans identified in
      Schedule II to said Assignment (such Mortgage Loans being sometimes called
      "Special Mortgage Loans";

                                       34
<PAGE>

                  (ii) The Assignment in connection with the Borrowing Request
      delivered by the Borrower to the Administrative Agent and the Collateral
      Agent, pursuant to which the Borrower requests a Special Borrowing, shall
      describe the Mortgage Note or Mortgage Notes to be delivered to the
      Collateral Agent in connection therewith by the loan number assigned by
      the Originator, original principal amount, the amount funded (minus
      discount points paid to the Originator) by the Originator, Obligor's name
      and interest rate;

                  (iii) Within nine (9) Business Days after the earlier of the
      date that each Assignment is delivered or, if different, the date of
      origination of the related Special Mortgage Loan (and inclusion of the
      related Special Mortgage Loan within the computation of Collateral Value
      as reported on the Collateral Agent Daily Report), to Collateral Agent,
      the Borrower shall deliver to the Collateral Agent the Principal Mortgage
      Documents pertaining to any Special Mortgage Loan identified on Schedule
      II of such Assignment; and

                  (iv) The Borrower shall not request any Special Borrowing, and
      no Special Borrowing shall be made, in respect of any Mortgage Loan that
      is closed with an escrow agent other than the relevant title insurance
      company, unless at the time of such request, the Borrower is entitled to
      the benefit of Closing Protection Rights with provisions substantially
      similar to one of the prescribed sets of rights set forth in Exhibit N to
      this Second Restated Loan Agreement or as otherwise reasonably required by
      the Administrative Agent (it being understood that pursuant to the
      Security Agreement, the Administrative Agent has a security interest in
      all Closing Protection Rights).

Each request by the Borrower for a Special Borrowing shall be automatically
deemed to constitute a representation and warranty by the Borrower to the effect
that immediately before and after giving effect to such Borrowing, the terms and
conditions specified in the foregoing clauses (i) through (iv) and specified in
Section 4.2 are and shall be satisfied in full as of the related Borrowing Date.

            (d) Failure to Deliver Principal Mortgage Documents. The failure to
deliver Principal Mortgage Documents, as required by subparagraph ((iii)) of
Section 2.3(c) and elsewhere in this Second Restated Loan Agreement, shall not
be treated as a Default or an Event of Default so long as each Managing Agent is
satisfied that each such failure, when considered in the light of past and other
contemporaneous failures, does not have a Material Adverse Effect; however, (i)
if any such Principal Mortgage Documents related to such Special Mortgage Loans
are not so delivered on a timely basis, the Borrower shall make a mandatory
prepayment or deliver additional Mortgage Assets so that after giving effect
thereto, the Collateral Value of Eligible Mortgage Collateral (excluding such
Special Mortgage Loans) shall equal or exceed the Principal Debt, and (ii) the
Special Mortgage Loan shall not be an Eligible Mortgage Loan and shall have a
Collateral Value of zero until such Principal Mortgage Documents shall have been
delivered to the Collateral Agent in connection with a subsequent Borrowing.

            The Borrower diligently shall pursue delivery to the Collateral
Agent of all Principal Mortgage Documents pertaining to any Special Borrowings.

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<PAGE>

      2.4. Fees.

            (a) The Borrower shall pay to the Administrative Agent and each
Managing Agent (for itself and the Lenders for which it acts) the fees set forth
in the related Fee Letters, such fees to be payable pursuant to Section 2.7(c).

            (b) The Borrower shall pay to the Servicer a fee (the "Servicer
Fee") of 0.25% per annum on the aggregate outstanding principal balance of the
Eligible Mortgage Loans from the date hereof until the Principal Debt is paid in
full, payable monthly in arrears on each Settlement Date. The Servicer Fee shall
be payable only from Collections pursuant to, and subject to the priority of
payments set forth in, Section 2.7(c).

      2.5. Prepayments.

            (a) Optional Prepayments. The Borrower may, at any time and from
time to time with five (5) Business Days' notice to the Administrative Agent and
the Managing Agent, prepay the Advances in whole or in part, in the aggregate
amount of $1,000,000 or integral multiples of $100,000 in excess thereof,
without premium or penalty; provided, that the Borrower may not prepay any
Advance bearing interest at the Commercial Paper Rate on any day other than the
last day of the Interest Period with respect thereto. Notwithstanding the
foregoing, any prepayment made hereunder shall be accompanied by accrued
interest on the principal amount being prepaid. After giving notice that a
prepayment will be made, the Borrower shall be liable to each Affected Party for
any Consequential Loss resulting from such prepayment or the failure to make a
prepayment designated in any such notice.

            (b) Mandatory Prepayments. The Borrower shall immediately make a
mandatory prepayment on the Principal Debt owed to the Lenders if at any time,
and to the extent that, (i) the Principal Debt owed to the Lenders exceeds the
Maximum Facility Amount, or (ii) the Principal Debt exceeds the total Collateral
Value of all Eligible Mortgage Collateral. The Borrower shall be liable for any
Consequential Loss resulting from any such prepayment.

      2.6. Business Days.

            If the date for any payment under this Second Restated Loan
Agreement falls on a day that is not a Business Day, then for all purposes of
the Notes and this Second Restated Loan Agreement the same shall be deemed to
have fallen on either (a) the next following Business Day, and such extension of
time shall in such case be included in the computation of payments of interest
and fees or (b) if the next following Business Day is in another calendar month
and payment is being made with respect to a Eurodollar Advance, then on the
immediately previous Business Day.

      2.7. Payment Procedures.

            (a) In General. Subject to the provisions of this Section 2.7, all
payments on the Principal Debt and interest and fees under the Notes and this
Second Restated Loan Agreement shall be made by the Borrower (or the Collateral
Agent or the Servicer on behalf of the Borrower) to the related Managing Agent
for the account of the Lenders represented by such Managing Agent. All such
payments shall be made before 4:00 p.m. (eastern time) on the

                                       36
<PAGE>

respective due dates in federal or other funds immediately available by that
time of day and at each Managing Agent's Account. Funds received after 4:00 p.m.
(eastern time) shall be treated for all purposes as having been received by a
Managing Agent on the Business Day next following the date of receipt of such
funds from the Borrower. All payments made by the Borrower under this Second
Restated Loan Agreement and the Notes shall be without setoff, deduction or
counterclaim and the Borrower agrees to pay on demand any present or future
stamp or documentary taxes or any other taxes, levies, imposts, duties, charges
or fees which arise from payment made hereunder or under the Notes or from the
execution or delivery or otherwise with respect to this Second Restated Loan
Agreement or the Notes.

            (b) The Borrower shall establish and maintain an account (the
"Collection Account") with the Collection Account Bank, which account shall be
titled "Pulte Funding, Inc." The Collection Account shall be a fully segregated
trust account, unless the Collection Account Bank shall be an Eligible
Institution having short-term debt ratings from S&P, Moody's and Fitch no lower
than A-1/P-1/F1, in which case the account need not be a trust account. The
Collection Account shall be under the control of the Administrative Agent
pursuant to the Restated Assignment of Account, and the Borrower shall have no
right, title or interest in, or any right to withdraw any amount from, the
Collection Account. The Servicer shall have no right to access the Collection
Account except as otherwise contemplated in Section 2.7(c).

            (c) Collections.

                  (i) The Servicer shall administer Collections in accordance
      with the provisions of this Section 2.7.

                  (ii) The Servicer shall hold, on behalf of the Lenders and the
      Administrative Agent, from Collections received by it with respect to any
      Mortgage Asset, amounts necessary to make payments on the following
      Settlement Date (or end of the related Interest Period) pursuant to
      Section 2.7(c)(iii) or (iv). Such amounts shall be deposited into the
      Collection Account no later than such Settlement Date or at the end of
      such Interest Period, or, on or after the Drawdown Termination Date or
      upon the occurrence and during the continuation of an Event of Default,
      within one Business Day after receipt by the Servicer.

                  (iii) Prior to the Drawdown Termination Date, the Servicer
      shall withdraw funds from the Collection Account (to the extent of
      collected funds therein) and shall make payments from the Collection
      Account at the following times and in the following order of priority:

                        (A) To the extent not previously paid, on each
                  Settlement Date, the Servicer shall deposit an amount equal to
                  the costs, fees and expenses then due and payable to the
                  Collateral Agent to an account designated by the Collateral
                  Agent.

                        (B) On the last day of each Interest Period for any
                  Advance that bears interest at the Commercial Paper Rate or
                  any Eurodollar Advance, the Servicer shall deposit an amount
                  equal to accrued interest on such

                                       37
<PAGE>

                  Advance, which amount shall be paid to the applicable Managing
                  Agent's Account for the related Lenders. On each Settlement
                  Date, the Servicer shall deposit an amount equal to accrued
                  interest on each Advance that bears interest at the Alternate
                  Base Rate to the applicable Managing Agent's Account.

                        (C) To the extent not previously paid, on each
                  Settlement Date, an amount equal to the fees, costs and
                  expenses then due and payable, on a pro rata basis, to (i)
                  JPMorgan, as a Managing Agent under the Managing Agent Fee
                  Letter shall be paid to JPMorgan's Managing Agent's Account
                  and (ii) to the Administrative Agent and Calyon New York, as a
                  Managing Agent, under the Restated Agent Fee Letter to the
                  Calyon New York's Managing Agent's Account.

                        (D) On each Settlement Date on which the Required
                  Reserve Account Amount exceeds the amount then on deposit in
                  the Reserve Account, the Servicer shall deposit an amount
                  equal to such excess to the Reserve Account.

                        (E) [Reserved]

                        (F) On each Settlement Date, if the Group Banks in any
                  Group have not consented to an extension of the Drawdown
                  Termination Date, but the Group Banks in the other Group have
                  so consented and such non-extending Lenders have not assigned
                  their respective Advances and Bank Commitments to one or more
                  other Lenders in accordance with Section 2.1(b) and Section
                  13.9, the Servicer shall deposit an amount equal to the unpaid
                  balance of all Primary Obligations owing to the non-extending
                  Lenders to the related Managing Agent's Account.

                        (G) To the extent not previously paid, on each
                  Settlement Date, the Servicer shall deposit any amounts, other
                  than those listed in clauses (A), (B) and (C) above and other
                  than principal on the Advances, that are then due and payable
                  and of which the Servicer has received prior written notice,
                  including without limitation additional costs under Section
                  2.16, any additional interest under Section 2.17,
                  Consequential Losses under Section 2.18, indemnities under
                  Section 10.1 and costs, expenses and taxes under Section
                  13.19, to the applicable Managing Agent's Account.

                        (H) On each Settlement Date, the Servicer shall withdraw
                  from the Collection Account for its own account an amount
                  equal to accrued Servicing Fee then due and payable.

                  (iv) On the Drawdown Termination Date and thereafter, the
      Administrative Agent shall make payments from the Collection Account (to
      the extent of collected funds therein) at the following times and in the
      following order of priority:

                                       38
<PAGE>

                        (A) On each Settlement Date, if the Servicer is not the
                  Originator or an Affiliate of the Originator, an amount equal
                  to accrued Servicing Fee then due and payable shall be paid to
                  the Servicer.

                        (B) To the extent not previously paid, on each
                  Settlement Date, an amount equal to the costs, fees and
                  expenses then due and payable to the Collateral Agent shall be
                  paid to an account designated by the Collateral Agent.

                        (C) On the last day of each Interest Period for any
                  Advance that bears interest at the Commercial Paper Rate or
                  for any Eurodollar Advance, an amount equal to accrued
                  interest on each such Advance shall be paid to the applicable
                  Managing Agent's Account. On each Settlement Date, an amount
                  equal to accrued interest on Advances that bear interest at
                  the Alternate Base Rate shall be paid to the applicable
                  Managing Agent's Account.

                        (D) On each Settlement Date, an amount equal to the
                  unpaid principal balance of all Advances made by Lenders shall
                  be paid to the applicable Managing Agent's Account.

                        (E) To the extent not previously paid, on each
                  Settlement Date, an amount equal to the fees, costs and
                  expenses then due and payable, on a pro rata basis, (i) to
                  JPMorgan as a Managing Agent, under the Managing Agent Fee
                  Letter shall be paid to JPMorgan's Managing Agent's Account
                  and (ii) to the Administrative Agent and Calyon New York, as a
                  Managing Agent, under the Agent Fee Letter shall be paid to
                  the Calyon New York's Managing Agent's Account.

                        (F) To the extent not previously paid, on each
                  Settlement Date, any amounts of the type described in Section
                  2.7(c)(iii)(iii)(G) are then due and payable and any other
                  unpaid Obligations shall be paid to the applicable Managing
                  Agent's Account.

                        (G) On the Settlement Date on which all Obligations are
                  paid in full, if the Servicer is the Originator or an
                  Affiliate of the Originator, an amount equal to accrued
                  Servicing Fee then due and payable shall be paid to the
                  Servicer.

                  (v) Upon receipt of funds deposited into its Managing Agent's
      Account, each Managing Agent shall distribute such funds to the Lenders in
      its Group or to itself for application to the Obligations in accordance
      with the order of priority set forth in Section 2.7(c)(iii) or (iv), as
      applicable.

            (d) Interest Payments. Interest on each Advance that bears interest
at the Commercial Paper Rate and interest on each Eurodollar Advance shall be
due and payable on the last day of the Interest Period applicable to such
Advance. Interest on each Advance that bears

                                       39
<PAGE>

interest at a rate based on the Alternate Base Rate shall be due and payable in
arrears on each Settlement Date, on the Drawdown Termination Date and,
thereafter, on demand.

            (e) Payments from Collection Account. To effect payments (including
prepayments) hereunder, the Borrower or the Servicer may request the
Administrative Agent to remit the collected funds (if any) then held on deposit
in the Collection Account.

      2.8. The Reserve Account.

            (a) Establishment. An account (the "Reserve Account") shall be
established with JPMorgan Chase Bank, National Association. The Borrower, the
Servicer, Administrative Agent and the Reserve Account Bank have entered into
the Reserve Account Control Agreement. The Reserve Account is and shall be under
the control of the Administrative Agent, and the Borrower has and shall have no
right, title or interest in, or any right to withdraw any amount from, the
Reserve Account.

            (b) Taxation. The taxpayer identification number associated with the
Reserve Account shall be that of the Borrower, and the Borrower will report for
federal, state and local income tax purposes the income, if any, earned on funds
in the Reserve Account.

            (c) New Reserve Account. In the event the Reserve Account Bank
ceases to be an Eligible Institution, the Borrower shall, within ten days after
learning thereof, establish a new Reserve Account (and transfer any balance and
investments then in the Reserve Account to such new Reserve Account) at another
Eligible Institution.

            (d) Statements for Reserve Account. On a monthly basis, the Servicer
shall cause the Reserve Account Bank to provide the Borrower, the Servicer and
the Managing Agents with a written statement with respect to the preceding
calendar month regarding the Reserve Account in a form customary for statements
provided by the Reserve Account Bank for other accounts held by it, which
statement shall include, at a minimum, the amount on deposit in the Reserve
Account, and the dates and amounts of all deposits, withdrawals and investment
earnings with respect to the Reserve Account.

            (e) Payments from Reserve Account.

                  (i) On the Business Day preceding the last day of each
      Interest Period and each Settlement Date, the Servicer will determine
      whether any Shortfall Amount will arise with respect to such Interest
      Period or Settlement Date and will give the Administrative Agent notice of
      the amount thereof by noon New York City time. By 2:00 p.m. New York City
      time on the Business Day prior to the last day of each Interest Period and
      each Settlement Date on which the amount of the Shortfall Amount is
      greater than zero, the Servicer shall notify the Reserve Account Bank
      requesting payment thereof. To the extent funds are available in the
      Reserve Account, the Servicer shall cause the Reserve Account Bank to pay
      the amount requested to the applicable Managing Agent's Account, as
      specified by the Administrative Agent, by 2:00 p.m. New York City time on
      the last day of such Interest Period or on such Settlement Date.

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<PAGE>

                  (ii) On each Settlement Date prior to the Drawdown Termination
      Date on which the funds on deposit in the Reserve Account exceed the
      Required Reserve Account Amount (after giving effect to any payments
      pursuant to Section 2.8(e)(i)), the Servicer may withdraw and pay to the
      Borrower any such excess from the Reserve Account.

            (f) Payments to Reserve Account. On the date hereof, the Borrower
shall remit to the Reserve Account immediately available funds so that the
amount on deposit in the Reserve Account equals the Required Reserve Account
Amount. Additional payments shall be deposited to the Reserve Account from time
to time pursuant to Section 2.7(c)(iii)(D).

            (g) Pledge. The Borrower hereby pledges and assigns to the
Administrative Agent for the benefit of the Lenders, and hereby grants to the
Administrative Agent for the benefit of the Lenders, a security interest in, all
of the Borrower's right, title and interest in and to the Reserve Account,
including, without limitation, all funds on deposit therein, all investments
arising out of such funds, all interest and any other income arising therefrom,
all claims thereunder or in connection therewith, and all cash, instruments,
securities, rights and other property at any time and from time to time
received, receivable or otherwise distributed in respect of such account, such
funds or such investments, and all money at any time in the possession or under
the control of, or in transit to such account, or any bailee, nominee, agent or
custodian of the Reserve Account Bank, and all proceeds and products of any of
the foregoing. Except as provided in the preceding sentence, the Borrower may
not assign, transfer or otherwise convey its rights under this Second Restated
Loan Agreement to receive any amounts from the Reserve Account.

            (h) Termination of Reserve Account. On the date following the
Drawdown Termination Date on which all Obligations have been paid in full, all
funds then on deposit in the Reserve Account shall be paid to the Borrower, and
the Reserve Account shall be closed.

      2.9. Interest Allocations.

            Each Managing Agent shall, from time to time and in its sole
discretion, determine whether interest in respect of the Advances then
outstanding and owing to the Lenders in the related Group, or any portion
thereof, shall be calculated by reference to the Commercial Paper Rate (such
portion of the Principal Debt being herein called a "CP Allocation"), the
Eurodollar Rate or the Alternate Base Rate (such portion of the Principal Debt
as shall be calculated based on the Alternate Base Rate or the Eurodollar Rate
collectively, being herein called an "ABR Allocation"; provided, however, that
each Advance made by a Bank hereunder shall be allocated to the ABR Allocation.
Each Managing Agent shall provide the Borrower with reasonably prompt notice of
the allocations made by it pursuant to this Section 2.9. Following designation
by each Managing Agent of any Advance, or any portion thereof, as being a CP
Allocation, the Borrower may, at all times that such designation remains in
effect, consult with such Managing Agent as to the number and length of Interest
Periods relating to such CP Allocation. In selecting such Interest Periods, each
Managing Agent shall use reasonable efforts, taking into account market
conditions, to accommodate the Borrower's preferences; provided, however, that
each Managing Agent shall have the ultimate authority to make all such
selections.

                                       41
<PAGE>

      2.10. Interest Rates.

            Except where specifically otherwise provided, each CP Allocation
shall bear interest for the related Interest Period at a rate per annum equal to
the Commercial Paper Rate applicable to such Interest Period, and each ABR
Allocation shall bear interest at either the Eurodollar Rate plus the Bank
Spread, or the Alternate Base Rate; provided, however, that in no event shall
the rate of interest with respect to any Advance or portion thereof exceed the
Maximum Rate. Each change in the Alternate Base Rate and Maximum Rate, subject
to the terms of this Second Restated Loan Agreement, will become effective,
without notice to the Borrower or any other Person, upon the effective date of
such change.

      2.11. Quotation of Rates.

            It is hereby acknowledged that an officer or other individual
appropriately designated by an officer previously identified to a Managing Agent
in a certificate of incumbency or other appropriately designated officer of the
Borrower may call such Managing Agent from time to time in order to receive an
indication of the rates then in effect, but such indicated rates shall neither
be binding upon such Managing Agent nor the Lenders nor affect the rate of
interest which thereafter is actually in effect.

      2.12. Default Rate.

            So long as any Event of Default exists, all Obligations shall bear
interest at the Default Rate until paid, regardless of whether such payment is
made before or after entry of a judgment.

      2.13. Interest Recapture.

            If the designated rate applicable to any Borrowing exceeds the
Maximum Rate, the rate of interest on such Borrowing shall be limited to the
Maximum Rate, but any subsequent reductions in such designated rate shall not
reduce the rate of interest thereon below the Maximum Rate until the total
amount of interest accrued thereon equals the amount of interest that would have
accrued thereon if such designated rate had at all times been in effect. If at
maturity (stated or by acceleration), or at final payment of the Notes, the
total amount of interest paid or accrued is less than the amount of interest
that would have accrued if such designated rates had at all times been in
effect, then, at such time and to the extent permitted by applicable
Governmental Requirements, the Borrower shall pay an amount equal to the
difference between (a) the lesser of the amount of interest that would have
accrued if such designated rates had at all times been in effect and the amount
of interest that would have accrued if the Maximum Rate had at all times been in
effect, and (b) the amount of interest actually paid or accrued on the Notes.

      2.14. Interest Calculations.

            All computations of interest and any other fees hereunder shall be
made on the basis of a year of 360 days for the actual number of days (including
the first day but excluding the last day) elapsed; provided, however, that any
calculations of interest based on the rate set forth in clause (a) of the
definition of Alternate Base Rate shall be made on the basis of a year of

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<PAGE>

365/366 days for the actual number of days (including the first day but
excluding the last day) elapsed. All such determinations and calculations by the
Administrative Agent and the Managing Agents shall be conclusive and binding
absent manifest error.

      2.15. Interest Period.

            (a) "Interest Period" means with respect to any Advance included in
the CP Allocation, each period (i) commencing on, and including, the date that
such Advance was initially designated by the related Managing Agent as
comprising a part of the CP Allocation hereunder, or the last day of the
immediately preceding Interest Period for such Advance (whichever is latest);
and (ii) ending on, but excluding, the date that falls such number of days (not
to exceed 30 days) thereafter as such Managing Agent shall select; provided,
however, that no more than ten Interest Periods (five per Issuer) shall be in
effect at any one time with respect to Advances included in the CP Allocation.

            (b) "Interest Period" means with respect to any Advance included in
the ABR Allocation, a period of one month, which Advance shall be a Eurodollar
Advance, unless:

                  (i) on or prior to the first day of such Interest Period the
      Lender with respect to such Advance shall have notified the Administrative
      Agent that the introduction of or any change in or in the interpretation
      of any law or regulation makes it unlawful, or any central bank or other
      governmental authority asserts that it is unlawful, for such Lender to
      fund such Advance at the Eurodollar Rate (and such Lender shall not have
      subsequently notified the Administrative Agent and Managing Agents that
      such circumstances no longer exist), or

                  (ii) the Borrower shall have requested a Base Rate Advance or
      an Interest Period shorter than one month, or

                  (iii) the Administrative Agent and Managing Agents do not
      receive notice, by no later than 12:00 noon (New York City time) on the
      third Business Day preceding the first day of such Interest Period, that
      the related Advance will not be funded by issuance of Commercial Paper
      Notes, or

                  (iv) the principal amount of such Advance is less than
      $500,000, or

                  (v) an Event of Default shall have occurred and be continuing,

in which case (if any of the foregoing events occurs) such Advance shall be a
Base Rate Advance having a duration not in excess of 31 days as selected by the
Borrower (unless an Event of Default shall exist, in which case such duration
shall be selected by the applicable Managing Agent).

            (c) Notwithstanding any provision in this Second Restated Loan
Agreement to the contrary, (x) any Interest Period that would otherwise end on a
day that is not a Business Day shall be extended to the next succeeding Business
Day (provided, however, if interest in respect of such Interest Period is
computed by reference to the Eurodollar Rate, and such Interest Period would
otherwise end on a day that is not a Business Day, and there is no subsequent

                                       43
<PAGE>

Business Day in the same calendar month as such day, such Interest Period shall
end on the immediately preceding Business Day); (y) any Interest Period that
commences before the Drawdown Termination Date and would otherwise end after the
Drawdown Termination Date shall end on the Drawdown Termination Date; and (z)
the duration of each Interest Period that commences on or after the Drawdown
Termination Date shall be of such duration as shall be selected by the
applicable Managing Agents and communicated by notice to the Borrower.

      2.16. Additional Costs.

            (a) If any Regulatory Change occurring after the date hereof:

                  (i) shall subject an Affected Party to any tax, duty or other
      charge with respect to any Advance to or funded by it, or any obligations
      or right to make Advances hereunder or to provide funding therefor, or
      shall change the basis of taxation of payments to the Affected Party of
      any amounts in respect of a Lender's principal or interest owed to or
      funded by it or any other amounts due under this Second Restated Loan
      Agreement in respect of any Advance funded by it or its obligations or
      rights, if any, to make Advances or to provide funding therefor (except
      for changes in the rate of tax on the overall net income of such Affected
      Party imposed by the United States of America, by the jurisdiction in
      which such Affected Party's principal executive office is located and, if
      such Affected Party's principal executive office is not in the United
      States of America, by the jurisdiction where such Affected Party's
      principal office in the United States is located); or

                  (ii) shall impose, modify or deem applicable any reserve
      (other than reserve requirements referred to in Section 2.17), special
      deposit or similar requirement against assets of any Affected Party,
      deposits or obligations with or for the account of any Affected Party or
      with or for the account of any affiliate (or entity deemed by the Federal
      Reserve Board to be an affiliate) of any Affected Party, or credit
      extended by any Affected Party; or

                  (iii) shall change the amount of capital maintained or
      required or requested or directed to be maintained by any Affected Party;
      or

                  (iv) shall change the rates for, or the manner in which the
      Federal Deposit Insurance Corporation (or any successor thereto) assesses
      deposit insurance premiums or similar charges; or

                  (v) shall impose any other condition affecting any Advance
      funded by any Affected Party, or its obligations or rights, if any, to
      make Advances or to provide funding therefor;

and the result of any of the foregoing is or would be:

                  (x) to increase the cost to or impose a cost on (I) an
      Affected Party funding or making or maintaining any Advances or any
      liquidity loan to an Issuer or any commitment of such Affected Party with
      respect to any of the foregoing, or (II) the Administrative Agent for
      continuing its, or the Borrower's, relationship with the Lenders,

                                       44
<PAGE>

                  (y) to reduce the amount of any sum received or receivable by
      an Affected Party under this Second Restated Loan Agreement or any Note,
      or under the Liquidity Agreement with respect thereto, or

                  (z) in the sole determination of such Affected Party, to
      reduce materially the rate of return on the capital of an Affected Party
      as a consequence of its obligations hereunder or arising in connection
      herewith to a level below that which such Affected Party could otherwise
      have achieved,

then within thirty days after demand by such Affected Party (which demand shall
be accompanied by a statement setting forth the basis of such demand), the
Borrower shall pay directly to such Affected Party such additional amount or
amounts as will compensate such Affected Party for such additional or increased
cost or such reduction.

            (b) Each Affected Party will promptly notify the Borrower, the
applicable Managing Agent and the Administrative Agent of any event of which it
has knowledge that will entitle such Affected Party to compensation pursuant to
this Section 2.16; provided, however, no failure to give or delay in giving such
notification shall adversely affect the rights of any Affected Party to such
compensation.

            (c) In determining any amount provided for or referred to in this
Section 2.16, an Affected Party may use any averaging and attribution methods
that it (in its sole discretion) shall deem applicable. Any Affected Party when
making a claim under this Section 2.16 shall submit to the Borrower a statement
as to such increased cost or reduced return (including calculation thereof),
which Statement shall, in the absence of manifest error, be conclusive and
binding upon the Borrower.

      2.17. Additional Interest on Advances Bearing a Eurodollar Rate.

            The Borrower shall pay to any Affected Party, so long as such
Affected Party shall be required under regulations of the Federal Reserve Board
to maintain reserves with respect to liabilities or assets consisting of or
including Eurocurrency Liabilities, additional interest on the unpaid principal
of each Advance or portion thereof made or funded (including fundings to an
Issuer for the purpose of maintaining an Advance) by such Affected Party during
each Interest Period in respect of which interest is computed by reference to
the Eurodollar Rate, for such Interest Period, at a rate per annum equal at all
times during such Interest Period to the remainder obtained by subtracting (i)
the Eurodollar Rate for such Interest Period from (ii) the rate obtained by
dividing such Eurodollar Rate referred to in clause (i) above by that percentage
equal to 100% minus the Eurodollar Rate Reserve Percentage of such Affected
Party for such Interest Period, payable on each date on which interest is
payable on such Advance. Such additional interest shall be determined by such
Affected Party and notice thereof given to the Borrower (with a copy to the
Administrative Agent and the applicable Managing Agent) within 30 days after any
interest payment is made with respect to which such additional interest is
requested. A certificate as to such additional interest submitted to the
Borrower, the Administrative Agent and the applicable Managing Agent by such
Affected Party shall be conclusive and binding for all purposes, absent manifest
error.

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<PAGE>

      2.18. Consequential Loss.

            The Borrower shall indemnify each Affected Party against, and shall
pay to the Administrative Agent for such Affected Party within ten days after
request therefor, any Consequential Loss of any Affected Party. When any
Affected Party requests that the Borrower pay any Consequential Loss, it shall
deliver to the Borrower, the Administrative Agent and the applicable Managing
Agent a certificate setting forth the basis for imposing such Consequential Loss
and the calculation of such amount thereof, which calculation shall be
conclusive and binding absent manifest error.

      2.19. Replacement Banks.

            Upon the election of any Affected Party to request reimbursement by
the Borrower for increased costs under Sections 2.16 or 2.17, the Borrower may,
upon prior written notice to the Administrative Agent, the applicable Managing
Agent and such Affected Party, seek a replacement Bank to whom such additional
costs shall not apply (a "Replacement Bank") and, upon a Bank's breach of its
obligation hereunder to make an Advance, the Borrower may seek a Replacement
Bank for such Bank. Any Replacement Bank shall be satisfactory to the applicable
Managing Agent. Notwithstanding the foregoing, the Borrower may not seek a
replacement for a Bank that is also a Managing Agent unless the related Issuer
is also terminated as a party to this Second Restated Loan Agreement and all of
its outstanding Advances are repaid in full. Each Affected Party agrees that,
should it be identified for replacement pursuant to this Section 2.19, upon
payment in full of all amounts due and owing to such Affected Party hereunder
and under the other Transaction Documents, it will promptly execute and deliver
all documents and instruments reasonably required by the Borrower to assign such
Affected Party's portion of the Advances to the applicable Replacement Bank. Any
such replacement shall not relieve the Borrower of its obligation to reimburse
the Affected Party for any such increased costs incurred through the date of
such replacement.

                                  ARTICLE III

                                   COLLATERAL

      3.1. Collateral.

            To secure the payment of the Obligations, the Borrower has executed
and delivered to the Administrative Agent and the Collateral Agent, as
applicable:

            (a) the Security Agreement,

            (b) the Restated Assignment of Account,

            (c) Collection and Paying Agreement,

            (d) Reserve Account Control Agreement,

            (e) the Assignments, and

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<PAGE>

            (f) the UCC Financing Statements;

all as more fully provided for in the Second Restated Collateral Agency
Agreement. The Borrower further agrees to execute all documents and instruments,
and perform all other acts reasonably deemed necessary by the Administrative
Agent or any Managing Agent to create and perfect, and maintain the security
interests and collateral assignments in favor of the Administrative Agent or the
Collateral Agent for the benefit of the holders of the Obligations, as perfected
first priority security interests. Any security interest or collateral
assignments granted to the Administrative Agent or the Collateral Agent under
any Transaction Document is for the benefit of the holders of the Obligations,
whether or not reference is made to such holders.

      3.2. Delivery of Collateral to Collateral Agent.

            (a) Periodically, the Borrower may deliver Mortgage Loan Collateral
to the Collateral Agent to hold as bailee for the Administrative Agent. Each
delivery shall be made in association with an Assignment to the Administrative
Agent, for the benefit of the holders of the Obligations, in all Mortgage Loans,
Take-Out Commitments and related Collateral delivered with or described in such
Assignment or any schedules thereto. The Borrower shall use the form of
Assignment provided for in the Second Restated Collateral Agency Agreement.

            (b) Each Assignment delivered to the Collateral Agent shall be
accompanied by a completed Schedule I, Schedule II and Schedule III using the
forms of such schedules as prescribed in the Second Restated Collateral Agency
Agreement and, with respect to each Mortgage Loan described in Schedule I to
each Assignment, shall deliver or cause to be delivered the following items
(collectively, the "Principal Mortgage Documents"):

                  (i) the original of each Mortgage Note, endorsed in blank
      (without recourse) and all intervening endorsements thereto;

                  (ii) in the case of each Mortgage Loan that is not a MERS
      Designated Mortgage Loan, an original executed assignment in blank for
      each Mortgage Note and the Mortgage securing such Mortgage Note, in
      recordable form executed by the Originator (and if the related Mortgage
      Loan is a MERS Designated Mortgage Loan, this document shall not be
      required to be delivered to the Collateral Agent); and

                  (iii) a certified copy of the executed Mortgage related to
      such Mortgage Note;

            (c) The Servicer shall hold in trust for the Administrative Agent
for the benefit of the holders of the Obligations, with respect to each Mortgage
Loan included in the Collateral,

                  (i) the original filed Mortgage relating to such Mortgage
      Loan, provided, however, that, until an original Mortgage is received from
      the public official charged with its filing and recordation, a copy,
      certified by the closing agent to be a true and correct copy of the filed
      and recorded original, may be used by the Borrower to satisfy this
      requirement; however, the Borrower shall thereafter pursue, with
      reasonable diligence, receipt of the filed and recorded original Mortgage;

                                       47
<PAGE>

                  (ii) other than with respect to a HUD repossessed Property
      that is sold to a consumer, a mortgagee's policy of title insurance (or
      binding unexpired commitment to issue such insurance if the policy has not
      yet been delivered to the Servicer) insuring the Borrower's perfected,
      first-priority Lien except Second Lien Loans created by the Mortgage
      securing such Mortgage Loan (subject to such title exceptions that conform
      to the related Take-Out Commitments) in a policy amount not less than the
      principal amount of such Mortgage Loan;

                  (iii) the original hazard insurance policy, appropriately
      endorsed to provide that all insurance proceeds will be paid to the
      Originator or its assigns, referred to in Section 6.6(b) hereof which
      relate to such Mortgage Loan, or other evidence of insurance reasonably
      acceptable to the Administrative Agent;

                  (iv) the form of current appraisal of the Property described
      in the Mortgage, prepared by a state licensed appraiser, that complies
      with all applicable Governmental Requirements, including all Governmental
      Requirements that are applicable to the Lenders or any other Affected
      Party; provided, however, that no appraisal shall be required for Mortgage
      Loans (x) financing HUD repossessed Property that is sold to a consumer,
      financed with an FHA loan, fully insurable and in accordance with FHA
      guidelines, but for which an appraisal is not required, and (y)
      representing so called VA Rate Reduction or FHA Streamline refinances,
      insurable in accordance with VA and FHA guidelines, but for which an
      appraisal is not required; and

                  (v) all other original documents (collectively, the "Other
      Mortgage Documents").

Upon request of the Administrative Agent or any Managing Agent, the Borrower
shall immediately deliver, or shall cause to be delivered, all such items, held
in trust, to the Collateral Agent as bailee for the Administrative Agent or such
other party as may be designated in such notice. Upon instructions from the
Administrative Agent, the Collateral Agent shall reject as unsatisfactory any
items so delivered, whereupon the Mortgage Loan shall not be an Eligible
Mortgage Loan.

            (d) In connection with each Assignment delivered to the Collateral
Agent, the Borrower shall deliver to the Administrative Agent with respect to
any Non-Conforming Loans, copies of the related master agreement or commitment
with the related Approved Investor, with any confidential economic terms
redacted (unless a copy of such agreement or commitment has been delivered
previously), together with a current Hedge Report with respect to such Mortgage
Loans.

            (e) The Servicer shall provide the Collateral Agent and the
Administrative Agent with full access to all Other Mortgage Documents held in
trust for the Administrative Agent at all times.

            (f) With respect to each Assignment that is received by the
Collateral Agent, the Collateral Agent shall review such Assignment and make a
written report to the Borrower

                                       48
<PAGE>

and the Administrative Agent, all as more fully provided in the Second Restated
Collateral Agency Agreement.

      3.3. Redemption of Mortgage Collateral.

            (a) Generally. Subject to the limitations contained in this Section
3.3, in connection with a sale or other transfer contemplated by clause (a) or
(b), and so long as no Default or Event of Default is continuing, the Borrower
or the Servicer (on behalf of the Borrower) may request releases of the
Administrative Agent's security interest in all or any part of the Collateral
(including releases from the Collection Account and release of funds owned by
the Borrower and held in the Cash and Collateral Account) at any time, and from
time to time; provided that no such request shall be granted unless, in addition
to the satisfaction of the other conditions contained in this Section 3.3,

                  (i) (immediately after giving effect to any requested release)
      the total Collateral Value of all Eligible Mortgage Collateral shall equal
      or exceed the Principal Debt, or

                  (ii) (A) the Borrower makes a principal payment on account of
      the Principal Debt in an amount, or (B) the Borrower delivers to the
      Collateral Agent as bailee for the Administrative Agent substitute
      Eligible Mortgage Collateral with a Collateral Value, such that after
      giving effect to such payment or delivery, the total Collateral Value of
      all Eligible Mortgage Collateral will equal or exceed the Principal Debt.

Each request for a partial release of Collateral (a "Transfer Request") shall be
addressed to the Collateral Agent and (i) shall be substantially in the form
illustrated in Exhibit D-5 to the Second Restated Collateral Agency Agreement
(or such other form as may be reasonably acceptable to or required by the
Administrative Agent, from time to time) or (ii) shall be in the form of an
electronic transmission which shall include a schedule substantially in the form
illustrated on Schedule I to Exhibit D-5 to the Second Restated Collateral
Agency Agreement (or such other form as may be reasonably acceptable to or
required by the Administrative Agent, from time to time).

            (b) Redemption Pursuant to Sale. So long as no Default or Event of
Default is continuing, the Borrower or the Servicer (on behalf of the Borrower)
may from time to time submit a Shipping Request that would permit a sale of
Mortgage Loan Collateral to, or the pooling of Mortgage Loan Collateral for, an
Approved Investor, pursuant to a Take-Out Commitment. Upon the receipt by the
Collateral Agent of a Shipping Request from the Borrower identifying Collateral
to be delivered to an Approved Investor, and so long as no Default or Event of
Default shall be in existence or would be caused thereby:

                  (i) The Collateral Agent shall deliver to the Approved
      Investor, or its loan servicing provider or custodian, under the
      Collateral Agent's "Bailee and Security Agreement Letter" substantially in
      the form provided for in the Second Restated Collateral Agency Agreement,
      as appropriate, the items of Mortgage Loan Collateral being sold that are
      held by the Collateral Agent as bailee for the Administrative Agent
      pursuant to Section 3.2 hereof, with the release of the security interest
      in favor of the Administrative Agent

                                       49
<PAGE>

      for the benefit of the holders of the Obligations in such items being
      conditioned upon timely payment to the Cash and Collateral Account of the
      amount described in Section 3.3(b)(iii) or delivery of additional Eligible
      Mortgage Collateral;

                  (ii) The Servicer shall, as agent for the Administrative
      Agent, deliver to such Approved Investor, or such Approved Investor's loan
      servicing provider or custodian, pursuant to procedures provided for in
      the Second Restated Collateral Agency Agreement, the items held by the
      Servicer pursuant to Section 3.2(c) that are related to the Mortgage Loan
      Collateral to be transferred on the condition that such Approved Investor
      or its loan servicing provider or custodian shall hold or control such
      Other Mortgage Documents as bailee for the Administrative Agent (for the
      benefit of the holders of the Obligations) until the Approved Investor has
      either paid the full purchase price for such Mortgage Loan Collateral to
      the Collateral Agent, as required by the relevant Take-Out Commitment;

                  (iii) Within forty-five (45) days after the delivery by the
      Collateral Agent to such Approved Investor or its loan servicing provider
      or custodian of the items of Mortgage Loan Collateral described in Section
      3.3(b)(i), the Borrower shall make a payment, or shall cause a payment to
      be made, to the Cash and Collateral Account, for distribution to the
      Administrative Agent for the account of the Lenders in an amount equal to
      at least the full purchase price for such Mortgage Loan Collateral; and

                  (iv) With respect to each Shipping Request that is received by
      the Collateral Agent by 8:00 a.m. (eastern time) on a Business Day, the
      Collateral Agent shall use due diligence and efforts to review such
      Shipping Request and prepare the Mortgage Loan files identified in each
      Shipping Request, for shipment prior to the close of business on such day.

            (c) Transfers. So long as no Default or Event of Default is
continuing, the Borrower shall, at any time, be permitted to transfer Mortgage
Loans to any Permitted Transferees (as defined below) by means of its daily
electronic transmissions to the Collateral Agent, together with delivery of a
Transfer Request delivered to the Collateral Agent identifying each Mortgage
Loan being transferred. The Collateral Agent's sole responsibility with respect
to any such transfers shall be to correctly reflect such transfers on its
computer system and books and records and to indicate, on its Collateral Agent's
Daily Report on the next Business Day, that such transfers have been effected.
"Permitted Transferees" means (i) the Originator, in connection with any sale
and transfer thereto effected pursuant to the terms of the Second Restated
Repurchase Agreement and (ii) any Approved Investor approved by the
Administrative Agent as a Permitted Transferee. However, requested transfers
will not be made if (A) total Principal Debt, as shown on the most recently
received Servicer Periodic Report in the form of Exhibit M, will exceed the
total Collateral Value of Eligible Mortgage Collateral immediately after giving
effect to a requested transfer, (B) the Collateral Agent has not received the
prior day's Servicer Periodic Report in the form of Exhibit M by 11:00 a.m.
(eastern time) on the date on which the transfer is to be made, or (C) the
Collateral Agent shall have received written notice from the Administrative
Agent that a Default or Event of Default has occurred.

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<PAGE>

            (d) Continuation of Lien. Unless released in writing by the
Administrative Agent as herein provided, the security interest in favor of the
Administrative Agent for the benefit of the holders of the Obligations, in all
Mortgage Loan Collateral transmitted pursuant to Section 3.3(b) shall continue
in effect until such time as payment in full of the amount described in Section
3.3(b)(iii) shall have been received.

            (e) Application of Proceeds; No Duty. Neither the Administrative
Agent nor the Lenders shall be under any duty at any time to credit Borrower for
any amount due from any Approved Investor in respect of any purchase of any
Mortgage Collateral contemplated under Section 3.3(b) above, until such amount
has actually been received in immediately available funds and deposited to the
Collection Account. Neither the Collateral Agent, nor the Lenders, nor the
Administrative Agent shall be under any duty at any time to collect any amounts
or otherwise enforce any obligations due from any Approved Investor in respect
of any such purchase.

            (f) Mandatory Redemption of Mortgage Collateral. Notwithstanding any
provision herein to the contrary, if at any time a Collateral Deficiency exists,
the Borrower shall, immediately make a payment to the Collection Account (or
make payment directly to the Administrative Agent) or pledge, assign and deliver
additional or substitute Eligible Mortgage Collateral to the Administrative
Agent for the benefit of the holders of the Obligations, so that, immediately
after giving effect to such payment or pledge and assignment, total Collateral
Value of Eligible Mortgage Collateral shall be equal or greater than the
Principal Debt.

            (g) Representation in Connection with Releases, Sales and Transfers.
The Borrower represents and warrants that each request for any release or
transfer pursuant to Section 3.3(a) or Section 3.3(b) shall automatically
constitute a representation and warranty to the effect that immediately before
and after giving effect to such release or Transfer Request, the Collateral
Value of Eligible Mortgage Collateral shall equal or exceed the Principal Debt.

            (h) Limitation on Releases. Notwithstanding any provision to the
contrary, the Collateral Agent shall not release any Collateral unless payment
of the purchase price by the Approved Investor or the Originator shall have been
made in immediately available funds to the Cash and Collateral Account;
provided, however, that the foregoing shall not apply if there is no Default or
Event of Default and immediately before and after giving effect to such release,
the total Collateral Value of Eligible Mortgage Collateral shall equal or exceed
the Principal Debt.

      3.4. Correction of Mortgage Notes.

            The Servicer may from time to time request, in writing, that the
Collateral Agent deliver a Mortgage Note that constitutes Mortgage Loan
Collateral so that such Mortgage Note may be replaced by a corrected Mortgage
Note. Upon receipt by the Collateral Agent of such a request from the Servicer,
and so long as no Default or Event of Default shall be in existence, the
Collateral Agent shall deliver to the Servicer, under the Collateral Agent's
"Trust Receipt and Security Agreement Letter", in the form provided for in the
Second Restated Collateral Agency Agreement, the Mortgage Note to be corrected,
such delivery to be conditioned upon the receipt within fourteen (14) calendar
days by the Collateral Agent of a corrected Mortgage Note acceptable to it. If
the corrected Mortgage Note is not received with such time, then, beginning

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<PAGE>

on the first Business Day following such fourteenth calendar day, the Collateral
Agent shall assign such Mortgage Loan a Collateral Value of zero.

      3.5. Collateral Reporting.

            Pursuant to the Second Restated Collateral Agency Agreement, at the
commencement of each Business Day, and in no event later than 11:00 a.m.
(eastern time), the Collateral Agent shall furnish to the Borrower, the Servicer
and each Managing Agent (by facsimile (a hard copy of which shall not
subsequently be mailed, sent or delivered to either Managing Agent, unless so
requested by such Managing Agent)) a duly completed Collateral Agent Daily
Report in the form of Exhibit D-8 to the Second Restated Collateral Agency
Agreement.

            3.6. Hedge Reports.

                  No later than 11:00 a.m. (eastern time), on the first Business
Day of each week, and, if any changes would be reflected since the last Hedge
Report, on each other Business Day, the Servicer shall furnish the Borrower and
the Administrative Agent a Hedge Report, in the form of Exhibit K.

            3.7. [RESERVED]

            3.8. Servicer Monthly Reporting.

                  No later than 11:00 a.m. (eastern time) on the 15th day of
each month (or, if such day is not a Business Day, the next Business Day) and
within twenty (20) days after request by the Managing Agent, the Servicer shall
furnish the Borrower and the Managing Agents (by facsimile or electronic
transmission (a hard copy of which shall not subsequently be mailed, sent or
delivered to the Managing Agent, unless so requested by a Managing Agent) a
report executed by a Financial Officer of the Servicer or the Originator, in the
form of Exhibit F hereto ("Servicer Monthly Report") which shall provide as of
the last day of the previous month (or of the date of such request) (i) a
computation of the Default Ratio and Sixty-Day Default Ratio, (ii) an aging of
Mortgage Loans owned by the Borrower that are financed by the Lenders and
constitute Collateral hereunder, (iii) the Pool Weighted Average FICO Score, and
(iv) the other information provided for therein;

            3.9. Servicer Annual Pipeline Reporting.

                  No later than 11:00 a.m. (eastern time) promptly after
becoming available, and in any event within 90 days after the close of each
fiscal year of the Originator, a report, in form and content reasonably
acceptable to the Administrative Agent, on the Originator's "open and pipeline
positions" for Conforming Loans as of the last day of such fiscal year, and the
Originator's Mortgage Loan production for such fiscal year for all Mortgage
Loans; and

            3.10. Servicer Periodic Reporting.

                  The Servicer shall furnish the Administrative Agent, the
Managing Agents and the Collateral Agent (by facsimile (a hard copy of which
shall subsequently be mailed, sent or

                                       52
<PAGE>
delivered to the Collateral Agent only if so requested by such Person)) a duly
completed Servicer Periodic Report, in the form of Exhibit M (the "Servicer
Periodic Report") (i) as Schedule II attached to each Borrowing Request, on or
prior to 4:00 p.m. eastern time on the date prior to the date on which the
Borrowing is to be made, and (ii) upon any mandatory or voluntary prepayment in
accordance with Section 2.5(a) or (b), on or prior to 4:00 p.m. eastern time on
the date prior to the date on which the prepayment is to be made.

                                   ARTICLE IV

                              CONDITIONS PRECEDENT

      4.1.  Initial Borrowing.

            The effectiveness of this Second Restated Loan Agreement and the
making of the any Advances hereunder shall not occur until the later of August
19, 2005, or satisfaction of the conditions precedent specified in Section 4.2
hereof and delivery to the Administrative Agent of the following (each of the
following documents being duly executed and delivered and in form and substance
satisfactory to the Managing Agents and the Administrative Agent, and, with the
exception of the Notes and the UCC statement(s), each in a sufficient number of
originals that the Administrative Agent may have an executed original of each
document):

            (a)   an executed counterpart of this Second Restated Loan
Agreement;

            (b)   the Notes;

            (c)   the Second Restated Collateral Agency Agreement, the Restated
Assignment of Account, the Reserve Account Control Agreement, Collection and
Paying Agreement, and such other Security Instruments as may be requested by the
Administrative Agent;

            (d)   the Second Restated Repurchase Agreement;

            (e)   upon request of the Administrative Agent, a certificate of the
Secretary or Assistant Secretary of each of the Borrower and the Originator
certifying as to (i) certificate of incorporation or organization, or
certificate of formation (ii) bylaws or limited liability company agreement
(iii) resolutions of the Borrower's and the Originator's board of directors or
board of managers authorizing the execution, delivery, and performance by each
of them of the Transaction Amendment Documents to which they are a party and
identifying the officers of the Borrower and the Originator who are authorized
to sign such Transaction Amendment Documents, and (iv) specimen signatures of
the officers so authorized;

            (f)   upon request of the Administrative Agent, a favorable written
opinion, relating to security interest matters, substantially in the form of
Exhibit I-2 hereto;

            (g)   upon request of the Administrative Agent, a favorable written
opinion from counsel to the Borrower and the Originator, regarding corporate
matters, substantially in the form of Exhibit I-1 hereto;

                                       53
<PAGE>

            (h)   upon request of the Administrative Agent, a favorable written
opinion from counsel to the Borrower and Originator, regarding true sale
matters, substantially in the form of Exhibit J;

            (i)   upon request of the Administrative Agent, a certificate from
each of (i) the Michigan Department of Consumer and Industry Services, (ii) the
Secretary of State of Colorado, (iii) the Secretary of State of the State of
Delaware and (iv) an officer of the Borrower, the Performance Guarantor and the
Originator with respect to every other state in which the Borrower, the
Performance Guarantor or the Originator conducts business, as to the good
standing of the Borrower, the Performance Guarantor and/or the Originator, as
applicable, in each state or states for which each certificate is made;

            (j)   the Managing Agent Fee Letter and the Restated Agent Fee
Letter;

            (k)   evidence of the payment of fees due at closing, as provided in
the Fee Letters;

            (l)   evidence that the balance in the Reserve Account, as of the
date hereof, is the amount of the Required Reserve Account Amount;

            (m)   such other documents as the Managing Agents may reasonably
request at any time at or prior to the Borrowing Date of the initial Borrowing
hereunder; and

            (n)   upon request of the Administrative Agent, a search report
provided in writing to the Administrative Agent by the United States Corporation
Company Document Services, listing all effective financing statements that name
the Borrower or the Originator as debtor and that are filed in the jurisdictions
in which UCC1 filings were made in connection with the Original Loan Agreement
and in such other jurisdictions as the Administrative Agent shall reasonably
request, together with copies of such financing statements (none of which,
except as listed on Schedule V, shall cover any Mortgage Loans or interests
therein or proceeds thereof).

      4.2.  All Borrowings.

            Each Advance (including, without limitation, the initial Advance)
pursuant to this Second Restated Loan Agreement is subject to the following
further conditions precedent:

            (a)   (i) prior to 5:00 p.m. (eastern time) on the Business Day
before the designated Borrowing Date, the Administrative Agent, each Managing
Agent and the Collateral Agent shall have received a Borrowing Request (together
with any related Assignment) duly executed and delivered by the Borrower; and
(ii) the Administrative Agent and each Managing Agent shall have received on the
proposed date of funding, a Collateral Agent Daily Report, pursuant to Section
3.8 of the Second Restated Collateral Agency Agreement, verifying that after
giving effect to the requested Advance, the Collateral Value of all Eligible
Mortgage Collateral shall exceed the Principal Debt;

            (b)   all Collateral in which the Borrower has granted a security
interest to the Administrative Agent for the benefit of the holders of the
Obligations, with the exception of Special Mortgage Loans pursuant to Section
2.3(c), shall have been physically delivered to the

                                       54
<PAGE>

possession of the Collateral Agent, to the extent that such possession is
necessary or appropriate for the purpose of creating a first priority perfected
Lien of the Administrative Agent for the benefit of the holders of the
Obligations in such Collateral;

            (c)   the representations and warranties of the Borrower, the
Originator and (so long as the Servicer and the Originator are the same entity)
the Servicer contained in this Second Restated Loan Agreement, any Assignment or
Borrowing Request, or any Security Instrument or other Transaction Document
(other than those representations and warranties that, by their express terms,
are limited to the effective date of the document or agreement in which they are
initially made) shall be true and correct on and as of the date of such Advance;

            (d)   no Default or Event of Default or Servicer Default shall have
occurred and be continuing, or would result from such Advance, and no change or
event that constitutes a Material Adverse Effect shall have occurred and be
continuing as of the date of such Advance;

            (e)   the Collection Account shall be established and in existence
and free from any Lien other than pursuant to the Restated Assignment of
Account;

            (f)   delivery of a sufficient number of originals such that the
Administrative Agent may have an executed original thereof, of such other
documents, including such other documents as may be necessary or desirable to
perfect or maintain the priority of any Lien granted or intended to be granted
hereunder, as any Managing Agent may reasonably request; and

            (g)   the Drawdown Termination Date shall not have occurred.

Each Borrowing Request shall be automatically deemed to constitute a
representation and warranty by the Borrower on the Borrowing Date set forth
therein to the effect that all of the conditions of this Section 4.2 are
satisfied as of such Borrowing Date; provided that it is understood and agreed
that only the Managing Agents can determine whether conditions are
"satisfactory" to the Managing Agents.

                                    ARTICLE V

                         REPRESENTATIONS AND WARRANTIES

      5.1.  Representations of the Borrower and the Servicer.

            The Borrower and the Servicer each represents and warrants, as to
itself, as follows:

            (a)   Organization and Good Standing. It (i) is a corporation or
limited liability company duly organized and existing in good standing under the
laws of the jurisdiction of its incorporation or formation, (ii) is duly
qualified to do business and in good standing in all jurisdictions in which its
failure to be so qualified could have a Material Adverse Effect, (iii) has the
requisite corporate power and authority to own its properties and assets and to
transact the business in which it is engaged and is or will be qualified in
those states wherein it proposes to transact business in the future and (iv) is
in compliance with all Requirements of Law, except

                                       55
<PAGE>

where the failure to be in compliance would not reasonably be expected to have a
Material Adverse Effect. The Servicer is formed in Delaware and in no other
jurisdiction. The Borrower is incorporated in Michigan and in no other
jurisdiction.

            (b)   Authorization and Power. It has the requisite corporate power
and authority to execute, deliver and perform this Second Restated Loan
Agreement and the other Transaction Documents to which it is a party; it is duly
authorized to and has taken all requisite corporate action necessary to
authorize it to, execute, deliver and perform this Second Restated Loan
Agreement and the other Transaction Documents to which it is a party and is and
will continue to be duly authorized to perform this Second Restated Loan
Agreement and such other Transaction Documents.

            (c)   No Conflicts or Consents. Neither the execution and delivery
by it of this Second Restated Loan Agreement or the other Transaction Documents
to which it is a party, nor the consummation of any of the transactions herein
or therein contemplated, nor compliance with the terms and provisions hereof or
with the terms and provisions thereof, will (i) contravene or conflict with any
Requirement of Law to which it is subject, except where such contravention or
conflict would not reasonably be expected to have a Material Adverse Effect, or
any indenture, mortgage, deed of trust, or other agreement or instrument to
which it is a party or by which it may be bound, or to which its Property may be
subject, except where such contravention or conflict would not reasonably be
expected to have a Material Adverse Effect, or (ii) result in the creation or
imposition of any Lien, other than the Liens of the Security Instruments, on the
Property of the Borrower.

            (d)   Enforceable Obligations. This Second Restated Loan Agreement
and the other Transaction Documents to which it is a party have been duly and
validly executed by it and are its legal, valid and binding obligations,
enforceable in accordance with their respective terms, except as limited by
Debtor Laws and by general principles of equity.

            (e)   Full Disclosure. There is no fact known to it that it has not
disclosed to the Managing Agents that could have a Material Adverse Effect.
Neither its financial statements nor any Borrowing Request, officer's
certificate or statement delivered by it to the Managing Agents in connection
with this Second Restated Loan Agreement, contains or will contain any untrue or
inaccurate statement of material fact or omits or will omit to state a material
fact necessary to make such information not misleading.

            (f)   No Default. It is not in default under any loan agreement,
mortgage, security agreement or other agreement or obligation to which it is a
party or by which any of its Property is bound, if such default would also be a
Default or an Event of Default (or, with notice or passage of time would become
a Default or Event of Default) under either of subparagraphs (e) or (i) of
Section 8.1 of this Second Restated Loan Agreement.

            (g)   Litigation.

                  (i)   Except as set forth on Schedule IV, there are no
      actions, suits or proceedings, including arbitrations and administrative
      actions, at law or in equity, either by or before any Governmental
      Authority, now pending or, to its knowledge, threatened

                                       56
<PAGE>

      by or against it or any of its Subsidiaries, and pertaining to any
      Governmental Requirement affecting its Property or rights or any of its
      Subsidiaries.

                  (ii)  Neither it nor any of its Subsidiaries is in default
      with respect to any Governmental Requirements.

                  (iii) The Borrower is not liable on any judgment, order or
      decree (or any series of judgments, orders, or decrees) having an
      aggregate liability of $100,000 or more and that has not been paid, stayed
      or dismissed within 30 days.

            (h)   Taxes. All tax returns required to be filed by it in any
jurisdiction have been filed and all taxes, assessments, fees and other
governmental charges upon it or upon any of its properties, income or franchises
have been paid prior to the time that such taxes could give rise to a Lien
thereon, unless protested in good faith by appropriate proceedings and with
respect to which reserves in conformity with GAAP have been established on its
books, and except where such failure to file or pay would not reasonably be
expected to have a Material Adverse Effect. There is no proposed tax assessment
against it that would have a Material Adverse Effect.

            (i)   Indebtedness. If the Servicer is the Originator, the Servicer
is in compliance with the maximum leverage test set forth in Section 7.10.

            (j)   Permits, Patents, Trademarks, Etc.

                  (i)   It has all permits and licenses necessary for the
      operation of its business, the absence of which would reasonably be
      expected to have a Material Adverse Effect.

                  (ii)  It owns or possesses (or is licensed or otherwise has
      the necessary right to use) all patents, trademarks, service marks, trade
      names and copyrights, technology, know-how and processes, and all rights
      with respect to the foregoing, which are necessary for the operation of
      its business, without any conflict with the rights of others. The
      consummation of the transactions contemplated hereby will not alter or
      impair any of such rights of it.

            (k)   Status Under Certain Federal Statutes. It is not (i) a
"holding company", or a "subsidiary company" of a "holding company" or an
"affiliate" of a "holding company," or of a "subsidiary company" of a "holding
company," as such terms are defined in the Public Utility Holding Company Act of
1935, as amended, (ii) a "public utility," as such term is defined in the
Federal Power Act, as amended, (iii) an "investment company," or a company
"controlled" by an "investment company," within the meaning of the Investment
Company Act of 1940, as amended, or (iv) a "rail carrier," or a "person
controlled by or affiliated with a rail carrier," within the meaning of Title
49, U.S.C., and it is not a "carrier" to which 49 U.S.C. Section 11301(b)(1) is
applicable.

            (l)   Securities Acts. It has not issued any unregistered securities
in violation of the registration requirements of the Securities Act of 1933, as
amended, or of any other Requirement of Law, and is not violating any rule,
regulation, or requirement under the

                                       57
<PAGE>

Securities Act of 1933, as amended, or the Securities and Exchange Act of 1934,
as amended. The Borrower is not required to qualify an indenture under the Trust
Indenture Act of 1939, as amended, in connection with its execution and delivery
of the Notes.

            (m)   No Approvals Required. Other than consents and approvals
previously obtained and actions previously taken, neither the execution and
delivery of this Second Restated Loan Agreement and the other Transaction
Documents to which it is a party, nor the consummation of any of the
transactions contemplated hereby or thereby requires the consent or approval of,
the giving of notice to, or the registration, recording or filing by it of any
document with, or the taking of any other action in respect of, any Governmental
Authority that has jurisdiction over it or any of its Property.

            (n)   Environmental Matters. There have been no past, and there are
no pending or threatened, claims, complaints, notices, or governmental inquiries
against it regarding any alleged violation of, or potential liability under, any
environmental laws that could reasonably be expected to have a Material Adverse
Effect. It and its properties are in compliance in all respects with all
environmental laws and related licenses and permits, except where such
non-compliance would reasonably be expected to have a Material Adverse Effect.
No conditions exist at, on or under any Property now or previously owned or
leased by it that could give rise to liability under any environmental law that
could reasonably be expected to have a Material Adverse Effect.

            (o)   Eligibility. The Servicer and the Originator are approved and
qualified and in good standing as a lender or seller/servicer, as follows:

                  (i)   Each of the Servicer and the Originator is a Fannie Mae
      approved seller/servicer and the Borrower is a Fannie Mae approved seller
      (in good standing) of Mortgage Loans, eligible to originate, purchase,
      hold, sell and, with respect to the Originator and the Servicer, service
      Mortgage Loans to be sold to Fannie Mae.

                  (ii)  Each of the Servicer and the Originator is a Freddie Mac
      approved seller/servicer (in good standing) of Mortgage Loans, eligible to
      originate, purchase, hold, sell and service Mortgage Loans to be sold to
      Freddie Mac.

      The Servicer and Originator is an approved FHA servicer, VA servicer and
      Ginnie Mae issuer (in good standing) of mortgage loans, eligible to
      originate, purchase, hold, sell and service mortgage loans to be pooled
      into Ginnie Mae MBS Pools and to issue Ginnie Mae MBS.

            (p)   Second Lien Loans. At least 95% of the Second Lien Loans were
originated by the Originator at the same time that the Originator originated the
related first lien mortgage loan secured by the same mortgaged property.

      5.2.  Additional Representations of the Borrower.

            The Borrower further represents and warrants as follows:

                                       58
<PAGE>

            (a)   Activities. The Borrower was formed on December 22, 2000, and
the Borrower did not engage in any business activities prior to the date of the
Original Loan Agreement.

            (b)   Solvency. Both prior to and after giving effect to each
Borrowing, (i) the fair value of the property of the Borrower is greater than
the total amount of liabilities, including contingent liabilities, of the
Borrower, (ii) the present fair salable value of the assets of the Borrower is
not less than the amount that will be required to pay all probable liabilities
of the Borrower on its debts as they become absolute and matured, (iii) the
Borrower does not intend to, and does not believe that it will, incur debts or
liabilities beyond the Borrower's abilities to pay such debts and liabilities as
they mature and (iv) the Borrower is not engaged in a business or a transaction,
and is not about to engage in a business or a transaction, for which the
Borrower's property would constitute unreasonably small capital.

            (c)   Purchase of Mortgage Loans. With respect to each Mortgage
Loan, the Borrower purchased such Mortgage Loan from the Originator for cash (in
accordance with the provisions of the Second Restated Repurchase Agreement),
substitution of other Mortgage Loans, the Deferred Purchase Price (as such term
is defined in the Second Restated Repurchase Agreement), or a combination
thereof in an amount that constitutes fair consideration and reasonably
equivalent value. Each such sale referred to in the preceding sentence shall not
have been made for or on account of an antecedent debt owed by the Originator to
the Borrower and no such sale is or may be voidable or subject to avoidance
under any section of the Federal Bankruptcy Code.

            (d)   Priority of Debts and Liens. The Borrower has incurred no
Indebtedness except as expressly incurred hereunder and under the other
Transaction Documents. Upon delivery of an Assignment to the Collateral Agent,
the Administrative Agent will have a valid, enforceable, perfected and
first-priority Lien, for the benefit of the holders of the Obligations, in all
Mortgage Loan Collateral described in or delivered with such Assignment. Upon
delivery of funds for deposit in the Collection Account to the Collateral Agent,
the Administrative Agent will have a valid, enforceable, perfected and
first-priority Lien for the benefit of the holders of the Obligations, on the
Collection Account and related Collateral.

            (e)   No Liens. The Borrower has (or, as to all Mortgage Loan
Collateral delivered to the Collateral Agent after the date of this Second
Restated Loan Agreement, will have) good and indefeasible title to all
Collateral, and the Mortgage Loan Collateral and all proceeds thereof are (or,
as to all Mortgage Loan Collateral delivered to the Collateral Agent after the
date of this Second Restated Loan Agreement, will be) free and clear of all
Liens and other adverse claims of any nature, other than (i) the right of the
Originator to repurchase such Mortgage Loan Collateral pursuant to the terms of
the Second Restated Repurchase Agreement and/or (ii) Liens in the Mortgage Loan
Collateral or proceeds in favor of the Administrative Agent for the benefit of
the holders of the Obligations.

            (f)   Financial Condition. The opening pro forma balance sheet of
the Borrower as at December 31, 2004, giving effect to the initial Borrowing to
be made under this Second Restated Loan Agreement, a copy of which has been
furnished to the Managing Agents, fairly presents the financial condition of the
Borrower as at such date, in accordance with GAAP,

                                       59
<PAGE>

and since December 31, 2004, there has been no material adverse change in the
business, operations, property or financial or other condition of the Borrower.

            (g)   Principal Office, Etc. The principal office, chief executive
office and principal place of business of the Borrower is at Englewood,
Colorado.

            (h)   Ownership. Pulte Mortgage is the owner of all of the issued
and outstanding shares of each class of stock of the Borrower.

            (i)   UCC Financing Statements. Except as set forth on Schedule III,
no effective financing statement or other instrument similar in effect covering
any Mortgage Loan, any interest therein, or the related Collateral with respect
thereto is on file in any recording office except such as may be filed (x) in
favor of the Originator or the Borrower in accordance with the Mortgage Loans,
(y) in favor of the Borrower in connection with the Second Restated Repurchase
Agreement, or (z) in favor of the Administrative Agent or the holders of the
Obligations in accordance with this Second Restated Loan Agreement or in
connection with a Lien arising solely as the result of any action taken by the
Lenders (or any assignee thereof) or by the Administrative Agent.

            (j)   Trade Names. The Borrower is not known by and does not use any
trade name or doing-business-as name.

      5.3.  Additional Representations and Warranties of the Servicer.

            The Servicer represents and warrants as follows:

            (a)   Financial Condition.

                  (i)   The Servicer has delivered to the Administrative Agent
      (x) copies of the Servicer's balance sheet, as of December 31, 2004, and
      the related statements of income, stockholder's equity and cash flows for
      the year ended on such date, audited by independent certified accountants
      of recognized national standing and (y) copies of the Servicer's unaudited
      balance sheet, as of June 30, 2005, and the related statements of income,
      stockholder's equity and cash flows for the nine months ended on such date
      ("Interim Statements"); and all such financial statements fairly present
      the financial condition of the Servicer as of their respective dates,
      subject, in the case of the Interim Statements, to normal year end
      adjustments and the results of operations of the Servicer for the periods
      ended on such dates and have been prepared in accordance with GAAP.

                  (ii)  As of the date thereof, there are no material
      obligations, liabilities or Indebtedness (including contingent and
      indirect liabilities and obligations or unusual forward or long-term
      commitments) of the Servicer that are required to be reflected in the
      foregoing financial statements in accordance with GAAP and that are not
      reflected therein.

                  (iii) No change that constitutes a Material Adverse Effect has
      occurred in the financial condition or business of the Servicer since June
      30, 2005.

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<PAGE>

            (b)   Employee Benefit Plans. (i) No Employee Plan of the Servicer
or any ERISA Affiliate has incurred an "accumulated funding deficiency" (as
defined in Section 302 of ERISA or Section 412 of the Code), (ii) neither the
Servicer nor any ERISA Affiliate has incurred liability under ERISA to the PBGC,
(iii) neither the Servicer nor any ERISA Affiliate has partially or fully
withdrawn from participation in a Multiemployer Plan, (iv) no Employee Plan of
the Servicer or any ERISA Affiliate has been the subject of involuntary
termination proceedings, (v) neither the Servicer nor any ERISA Affiliate has
engaged in any "prohibited transaction" (as defined in Section 406 of ERISA or
Section 4975 of the Code), and (vi) no "reportable event" (as defined in Section
4043 of ERISA) has occurred in connection with any Employee Plan of the Servicer
or any ERISA Affiliate other than events for which the notice requirement is
waived under applicable PBGC regulations.

            (c)   Ownership. On the date of this Second Restated Loan Agreement,
the Performance Guarantor has beneficial ownership of 100% of the issued and
outstanding shares of each class of the stock of the Servicer.

      5.4.  Survival of Representations.

            All representations and warranties by the Borrower and the Servicer
herein shall survive delivery of the Notes and the making of the Advances, and
any investigation at any time made by or on behalf of the Administrative Agent
or the Lenders shall not diminish the right of the Administrative Agent, the
Managing Agents or the Lenders to rely thereon.

                                   ARTICLE VI

                              AFFIRMATIVE COVENANTS

            The Borrower and the Servicer shall each at all times comply with
the covenants applicable to it contained in this Article VI, from the date
hereof until the later of the Drawdown Termination Date and the date all of the
Obligations are paid in full.

      6.1.  Financial Statements and Reports.

            The Servicer, for so long as the Servicer is the Originator, and
thereafter the Borrower, shall furnish to the Managing Agents the following, all
in form and detail reasonably satisfactory to the Managing Agents:

            (a)   promptly after becoming available, and in any event within 120
days after the close of each fiscal year of each of the Servicer, the Originator
and the Performance Guarantor, such Person's audited consolidated balance sheet
as of the end of such fiscal year, and the related statements of income,
stockholder's equity and cash flows of such Person for such year accompanied by
(i) the related report of independent certified public accountants reasonably
acceptable to the Managing Agents, which report shall be to the effect that such
statements have been prepared in accordance with GAAP applied on a basis
consistent with prior periods except for such changes in such principles with
which the independent public accountants shall have concurred and (ii) if
issued, the auditor's letter or report to management customarily given in
connection with such audit;

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<PAGE>

            (b)   promptly after becoming available, and in any event within 60
days after the end of each fiscal quarter, excluding the fourth fiscal quarter,
of each fiscal year of each of the Servicer, the Originator and the Performance
Guarantor, the unaudited consolidated balance sheet of each of the Servicer, the
Originator and the Performance Guarantor as of the end of such fiscal quarter
and the related statements of income, stockholders' and members' equity and cash
flows of each of the Servicer, the Originator and the Performance Guarantor for
such fiscal quarter and the period from the first day of the then current fiscal
year of the Servicer, the Originator and the Performance Guarantor through the
end of such fiscal quarter, certified by a Financial Officer of the Servicer and
the Originator, respectively, to have been prepared in accordance with GAAP
applied on a basis consistent with prior periods, subject to normal year-end
adjustments;

            (c)   promptly upon receipt thereof, a copy of each other report
submitted to each of the Servicer, the Originator and the Performance Guarantor
by independent accountants in connection with any annual, interim or special
audit of the books of such Person;

            (d)   promptly and in any event within twenty (20) days after the
request of the Administrative Agent at any time and from time to time, a
certificate, executed by the president or chief financial officer of the
Servicer or the Originator, setting forth all of such Person's warehouse
borrowings and a description of the collateral related thereto; provided that,
as long as no Event of Default has occurred and is continuing, such requests may
be made no more frequently than annually;

            (e)   promptly and in any event within 60 days after the end of each
of the first three (3) quarters in each fiscal year of the Borrower, and within
120 days after the close of the Borrower's fiscal year, completed officer's
certificates in the form of Exhibit H-1 and H-2 hereto, executed by the
president or chief financial officer of each of the Servicer and the Borrower,
respectively;

            (f)   promptly and in any event within 60 days after the end of each
quarter (120 days in the case of the fourth quarter), a management report
regarding the Originator's Mortgage Loan production for the prior quarter and
year-to-date, in form and detail as reasonably required by the Administrative
Agent;

            (g)   promptly after the filing or receiving thereof, copies of all
reports and notices with respect to any "reportable event" defined in Article IV
of ERISA that the Borrower, the Originator or the Servicer files under ERISA
with the Internal Revenue Service, the PBGC or the U.S. Department of Labor
receives from the PBGC;

            (h)   immediately after becoming aware of the expiration,
forfeiture, termination, or cancellation of, or default under, any Take-Out
Commitment relating to any Collateral, telephone notice thereof confirmed in
writing within one Business Day, together with a statement as to what action the
Borrower proposes to take with respect thereto;

            (i)   promptly after becoming available, and in any event within 120
days after the close of each fiscal year of the Borrower, the Borrower's balance
sheet as of the end of such

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fiscal year, and the related statements of income, stockholder's equity and cash
flows of the Borrower for such year;

            (j)   promptly after becoming available, and in any event within 60
days after the end of each fiscal quarter, excluding the fourth fiscal quarter,
of each fiscal year of the Borrower, the balance sheet of the Borrower as of the
end of such fiscal quarter and the related statements of income, stockholders'
equity and cash flows of the Borrower for such fiscal quarter and the period
from the first day of such fiscal year through the end of such fiscal quarter,
certified by the chief financial officer of the Borrower, to have been prepared
in accordance with GAAP applied on a basis consistent with prior periods,
subject to normal year-end adjustments;

            (k)   promptly after the Borrower obtains knowledge thereof, notice
of any "Event of Default" or "Facility Termination Date" under the Second
Restated Repurchase Agreement;

            (l)   promptly after receipt thereof, copies of all notices received
by the Borrower from the Originator under the Second Restated Repurchase
Agreement;

            (m)   promptly after the Servicer obtains knowledge thereof, notice
of any Servicer Default or of any condition or event that, with the giving of
notice or lapse of time or both and unless cured or waived, would constitute a
Servicer Default;

            (n)   such other information concerning the business, properties or
financial condition of the Borrower or the Originator as the Administrative
Agent or either Managing Agent may reasonably request; and

            (o)   upon request by the Administrative Agent, or if there is an
Event of Default, copies of all Take-Out Commitments (if the Take-Out Commitment
is made on a confirmation or supplement to a master agreement and the master
agreement has been previously delivered to the Administrative Agent, only the
confirmation or supplement is required to be delivered pursuant to this clause).

      6.2.  Taxes and Other Liens.

            The Borrower shall pay and discharge promptly all taxes, assessments
and governmental charges or levies imposed upon it or upon its income or upon
any of its Property as well as all claims of any kind (including claims for
labor, materials, supplies and rent) that, if unpaid, might become a Lien upon
any or all of its Property; provided, however, the Borrower shall not be
required to pay any such tax, assessment, charge, levy or claim if the amount,
applicability or validity thereof shall currently be contested in good faith by
appropriate proceedings diligently conducted by it or on its behalf and if it
shall have set up reserves therefor adequate under GAAP. The Borrower shall
direct, via the closing instruction letter, each addressee title insurance
company, agent or attorney to remit into the Collection Account any funds held
in escrow for a Mortgage Loan that ultimately fails to close by the second
Business Day after the originally scheduled closing date for such Mortgage Loan.
In the absence of such remittance, the Borrower shall either (i) substitute for
the subject Mortgage Loan a substantially similar Mortgage Loan or (ii) remit
into the Collection Account, from its own funds, funds sufficient to repay funds
advanced for the subject Mortgage Loan.

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      6.3.  Maintenance.

            The Borrower shall (i) maintain its corporate existence, rights and
franchises and (ii) observe and comply with all Governmental Requirements. The
Servicer shall maintain its corporate existence. The Borrower shall maintain its
Properties (and any Properties leased by or consigned to it or held under title
retention or conditional sales contracts) in good and workable condition at all
times and make all repairs, replacements, additions, betterments and
improvements to its Properties as are needful and proper so that the business
carried on in connection therewith may be conducted properly and efficiently at
all times.

      6.4.  Further Assurances.

            The Borrower and the Servicer shall, each within three (3) Business
Days (or, in the case of Mortgage Notes, such longer period as provided under
Section 3.5 of this Second Restated Loan Agreement) after the request of the
Administrative Agent, cure any defects in the execution and delivery of the
Notes, this Second Restated Loan Agreement or any other Original Transaction
Documents or Transaction Amendment Documents. The Borrower and the Servicer
shall, each at its expense, promptly execute and deliver to the Administrative
Agent, upon the Administrative Agent's reasonable request, all such other and
further documents, agreements and instruments in compliance with or
accomplishment of the covenants and agreements of the Borrower and the Servicer,
respectively, in this Second Restated Loan Agreement and in the other Original
Transaction Documents or Transaction Amendment Documents or to further evidence
and more fully describe the collateral intended as security for the Notes, or to
correct any omissions in this Second Restated Loan Agreement or the other
Original Transaction Documents or Transaction Amendment Documents, or more fully
to state the security for the obligations set out herein or in any of the other
Original Transaction Documents or Transaction Amendment Documents, or to
perfect, protect or preserve any Liens created (or intended to be created)
pursuant to any of the other Original Transaction Documents or Transaction
Amendment Documents, or to make any recordings, to file any notices, or obtain
any consents.

      6.5.  Compliance with Laws.

            The Servicer shall comply, in all material respects, with all
applicable laws, rules, regulations and orders in connection with servicing the
Mortgage Assets.

      6.6.  Insurance.

            (a)   The Borrower and the Servicer shall each maintain with
financially sound and reputable insurers, insurance with respect to its
Properties and business against such liabilities, casualties, risks and
contingencies and in such types and amounts as is customary in the case of
Persons engaged in the same or similar businesses and similarly situated,
including, without limitation, a fidelity bond or bonds in form and with
coverage and with a company reasonably satisfactory to the Administrative Agent
and with respect to such individuals or groups of individuals as the
Administrative Agent may reasonably designate. Upon request of the
Administrative Agent or a Managing Agent, the Borrower and the Servicer shall
each furnish or cause to be furnished to the Administrative Agent and any
requesting Managing Agent from time to time a summary of the insurance coverage
of the Borrower and the Servicer, respectively,

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<PAGE>

in form and substance reasonably satisfactory to the Administrative Agent or
requesting Managing Agent and if requested shall furnish the Administrative
Agent or requesting Managing Agent with copies of the applicable policies.

            (b)   With respect to Mortgages comprising the Collateral (i) the
Servicer, for as long as the Servicer is the Originator, and thereafter the
Borrower, shall use its best efforts to cause the improvements on the land
covered by each Mortgage to be kept continuously insured at all times by
responsible insurance companies against fire and extended coverage hazards under
policies, binders, letters, or certificates of insurance, with a standard
mortgagee clause in favor of the original mortgagee and its successors and
assigns or, in the case of a MERS Designated Mortgage Loan, the beneficial owner
of such mortgage loan, and (ii) the Servicer, for so long as the Servicer is the
Originator, and thereafter the Borrower, shall use its best efforts to cause
each such policy to be in an amount equal to the lesser of the maximum insurable
value of the improvements or the original principal amount of the Mortgage,
without reduction by reason of any co-insurance, reduced rate contribution, or
similar clause of the policies or binders.

      6.7.  Accounts and Records.

            The Borrower and, so long as the Servicer and the Originator are the
same entity, the Servicer shall each keep books of record and account in which
full, true and correct entries will be made of all dealings or transactions in
relation to its business and activities, in accordance with GAAP. The Borrower
and the Servicer shall each maintain and implement administrative and operating
procedures (including, without limitation, an ability to recreate all records
pertaining to the performance of the Borrower's obligations under the Take-Out
Commitments and other agreements made with reference to any Mortgage Loans in
the event of the destruction of the originals of such records) and keep and
maintain all documents, books, records, computer tapes and other information
reasonably necessary or advisable for the performance by the Borrower of its
Obligations. The Borrower shall not enter the "loan servicing" business.

      6.8.  Right of Inspection.

            The Borrower and, so long as the Servicer and the Originator are the
same entity, the Servicer shall each permit any officer, employee or agent of
the Administrative Agent or either Managing Agent to visit and inspect any of
its Properties, examine its books of record and accounts and discuss its
affairs, finances and accounts with its officers, accountants and auditors, all
at such times during reasonable business hours and as often as the
Administrative Agent or either Managing Agent may desire upon prior notice,
provided that (i) except during the continuation of an Event of Default, such
inspections and examinations may be performed once annually and (ii) such
inspections and examinations shall be conducted in a manner which does not
interfere with the normal operations of the Borrower or the Servicer. The
Borrower agrees to pay the reasonable costs of reviews and inspections performed
pursuant to this Section 6.8.

      6.9.  Notice of Certain Events.

            The Borrower and, so long as the Servicer and the Originator are the
same entity (other than with respect to clause (g) hereof), the Servicer shall
each promptly notify the Managing Agents upon (a) the receipt of any notice
from, or the taking of any other action by,

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<PAGE>

the holder of any of its promissory notes, debentures or other evidences of
Indebtedness with respect to a claimed default, together with a detailed
statement by a responsible officer of the Borrower or the Servicer, as the case
may be, specifying the notice given or other action taken by such holder and the
nature of the claimed default and what action the Borrower or the Servicer is
taking or proposes to take with respect thereto, but only if such alleged
default or event of default (if it were true) would also be a Default or Event
of Default under this Second Restated Loan Agreement; (b) the commencement of,
or any determination in, any legal, judicial or regulatory proceedings that, if
adversely determined, could also be a Default or Event of Default under this
Second Restated Loan Agreement; (c) any dispute between the Borrower or the
Servicer, as the case may be, and any Governmental Authority or any other Person
that, if adversely determined, could have a Material Adverse Effect; (d) any
material adverse change in the business, operations or financial condition of
the Borrower or the Servicer, as the case may be, including, without limitation,
the Borrower's or the Servicer's insolvency; (e) any event or condition known to
it that, if adversely determined, would have a Material Adverse Effect; (f) the
receipt of any notice from, or the taking of any other action by any Approved
Investor indicating an intent not to honor, or claiming a default under a
Take-Out Commitment, together with a detailed statement by a responsible officer
of the Borrower specifying the notice given or other action taken by such
Approved Investor and the nature of the claimed default and what action the
Borrower is taking or proposes to take with respect thereto; (g) the receipt of
any notice from, and or the taking of any action by any Governmental Authority
indicating an intent to cancel the Borrower's or the Servicer's right to be
either a seller or servicer of such Governmental Authority's insured or
guaranteed Mortgage Loans; and (h) the receipt of any notice of any final
judgment or order for payment of money applicable to the Borrower or the
Servicer in excess of $1,000,000.

      6.10. Performance of Certain Obligations.

            The Borrower and, so long as the Servicer and the Originator are the
same entity, the Servicer shall each perform and observe each of the provisions
of each Mortgage Loan and Take-Out Commitment on its part to be performed or
observed and will cause all things to be done that are necessary to have each
Mortgage Loan covered by a Take-Out Commitment comply with the requirements of
such Take-Out Commitment.

      6.11. Use of Proceeds; Margin Stock.

            The proceeds of the Advances shall be used by the Borrower solely
for the acquisition of Mortgage Loans under the Second Restated Repurchase
Agreement. None of such proceeds shall be used for the purpose of purchasing or
carrying any "margin stock" as defined in Regulation U, or for the purpose of
reducing or retiring any Indebtedness that was originally incurred to purchase
or carry margin stock or for any other purpose that might constitute this
transaction a "purpose credit" within the meaning of such Regulation U. Neither
the Borrower nor any Person acting on behalf of the Borrower shall take any
action in violation of Regulations U or X or shall violate Section 7 of the
Securities Exchange Act of 1934, as amended, or any rule or regulation
thereunder, in each case as now in effect or as the same may hereafter be in
effect.

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      6.12. Notice of Default.

            The Borrower shall furnish to the Managing Agents immediately upon
becoming aware of the existence of any Default or Event of Default, a written
notice specifying the nature and period of existence thereof and the action that
the Borrower is taking or proposes to take with respect thereto.

      6.13. Compliance with Transaction Documents.

            The Borrower and, so long as the Servicer and the Originator are the
same entity, the Servicer shall each promptly comply with any and all covenants
and provisions of this Second Restated Loan Agreement applicable to it, the
Notes, in the case of the Borrower, and the other Transaction Documents.

      6.14. Compliance with Material Agreements.

            The Borrower and, so long as the Servicer and the Originator are the
same entity, the Servicer shall each comply in all respects with all agreements,
indentures, Mortgages or documents (including, with respect to the Borrower, the
Charter) binding on it or affecting its Property or business, except where such
non-compliance would not reasonably be expected to have a Material Adverse
Effect.

      6.15. Operations and Properties.

            The Borrower and, so long as the Servicer and the Originator are the
same entity, the Servicer shall each act prudently and in accordance with
customary industry standards in managing and operating its Property and shall
continue to underwrite, hedge and sell Mortgage Loans in the same diligent
manner it has applied in the past and take no greater credit or market risks
than are currently being borne by it.

      6.16. Performance Guarantor Credit Rating.

            If at any time any of the senior debt of the Performance Guarantor,
which is publicly held, shall fail to bear a rating of at least BBB- by S&P, Ba1
by Moody's or BBB- by Fitch, the Borrower shall give the Administrative Agent
and the Managing Agents written notice of such change in rating, within two
Business Days of the date on which such change is announced by any of these
rating agencies.

      6.17. Take-Out Commitments.

            The Borrower shall use its best efforts to cause the Originator to
obtain, and maintain in full force and effect, Take-Out Commitments reflecting
total Approved Investor obligations, as of each date of determination, with an
aggregate purchase price equal to the total of the original principal balances
of the Borrower's entire portfolio of Mortgage Loans issued as proceeds thereof.
Each of such Take-Out Commitments shall reflect only those terms and conditions
as are permitted hereunder or are acceptable to the Administrative Agent and the
Managing Agents. The Borrower shall use its best efforts to cause the Originator
to obtain, and maintain in full force and effect, forward purchase commitments
(which may include options to

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<PAGE>

sell Mortgage Loans to Approved Investors, so long as the Approved Investor is
bound thereby) issued by Approved Investors and obligating such Approved
Investors to purchase a portion of the Borrower's subsequently acquired Mortgage
Loans.

      6.18. Collateral Proceeds.

            The Borrower and the Servicer shall instruct all Approved Investors
to cause all payments in respect of Take-Out Commitments on Mortgage Loans to be
deposited directly in the Cash and Collateral Account.

      6.19. Environmental Compliance.

            The Borrower and, so long as the Servicer and the Originator are the
same entity, the Servicer shall each use and operate all of its facilities and
properties in compliance with all environmental laws, keep all necessary
permits, approvals, certificates, licenses and other authorizations relating to
environmental matters in effect and remain in compliance therewith, and handle
all hazardous materials in compliance with all applicable environmental laws,
except where failure to so act would not reasonably be expected to have a
Material Adverse Effect.

      6.20. Closing Instructions.

            The Borrower agrees to indemnify and hold the Lenders, the
Administrative Agent and the Managing Agents harmless from and against any loss,
including attorneys' fees and costs, attributable to the failure of a title
insurance company, agent, Managing Agent or approved attorney to comply with the
disbursement or instruction letter or letters of the Borrower, the Managing
Agents or of the Administrative Agent relating to any Mortgage Loan. The
Borrower shall direct, via the closing instruction letter, each addressee title
insurance company, agent or attorney to remit into the Collection Account any
funds held in escrow for a Mortgage Loan that ultimately fails to close by the
second Business Day after the originally scheduled closing date for such
Mortgage Loan. In the absence of such remittance, the Borrower shall either (i)
substitute for the subject Mortgage Loan a substantially similar Mortgage Loan
or (ii) remit into the Collection Account, from its own funds, funds sufficient
to repay funds advanced for the subject Mortgage Loan. The Administrative Agent
shall have the right to pre-approve the closing instructions of the Originator
to the title insurance company, agent or attorney in any case where the Mortgage
Loan to be created at settlement is intended to be warehoused by the Lenders
pursuant hereto.

      6.21. Special Affirmative Covenants Concerning Collateral.

            (a)   The Borrower shall at all times warrant and defend the right,
title and interest of the Lenders, the Collateral Agent and the Administrative
Agent in and to the Collateral against the claims and demands of all Persons
whomsoever.

            (b)   The Borrower and the Servicer shall each service or cause to
be serviced all Eligible Mortgage Loans in accordance with the standard
requirements of the issuers of Take-Out Commitments covering the same and all
applicable Fannie Mae, Freddie Mac or Ginnie Mae requirements, including without
limitation taking all actions necessary to enforce the obligations of the
Obligors under such Eligible Mortgage Loans. The Borrower and the Servicer shall
each

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<PAGE>

hold all escrow funds collected in respect of Eligible Mortgage Loans in trust,
without commingling the same with any other funds, and apply the same for the
purposes for which such funds were collected.

            (c)   The Borrower shall, no less than on an annual basis, review
financial statements, compliance with financial parameters, Fannie Mae/Freddie
Mac approvals (if applicable), and state licenses of all Persons from whom the
Originator acquires Mortgage Loans.

      6.22. Corporate Separateness.

            (a)   The Borrower covenants to take the following actions, and the
Servicer covenants to use its best efforts to cause the Borrower to take the
following actions: The Borrower shall at all times maintain at least one
Independent Director (as such term is defined in the Charter).

            (b)   The Borrower shall not direct or participate in the management
of any of the operations of the Other Companies.

            (c)   The Borrower shall allocate fairly and reasonably any overhead
for shared office space. The Borrower shall have stationery and other business
forms separate from that of the Other Companies.

            (d)   The Borrower shall at all times be adequately capitalized in
light of its contemplated business.

            (e)   The Borrower shall at all times provide for its own operating
expenses and liabilities from its own funds.

            (f)   The Borrower shall maintain its assets and transactions
separately from those of the Other Companies and reflect such assets and
transactions in financial statements separate and distinct from those of the
Other Companies and evidence such assets and transactions by appropriate entries
in books and records separate and distinct from those of the Other Companies.
The Borrower shall hold itself out to the public under the Borrower's own name
as a legal entity separate and distinct from the Other Companies. The Borrower
shall not hold itself out as having agreed to pay, or as being liable, primarily
or secondarily, for, any obligations of the Other Companies.

            (g)   The Borrower shall not maintain any joint account with any
Other Company or become liable as a guarantor or otherwise with respect to any
Indebtedness or contractual obligation of any Other Company.

            (h)   The Borrower shall not grant a Lien on any of its assets to
secure any obligation of any Other Company.

            (i)   The Borrower shall not make loans, advances or otherwise
extend credit to any of the Other Companies.

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            (j)   The Borrower shall conduct its business in its own name and
strictly comply with all organizational formalities to maintain its separate
existence.

            (k)   The Borrower shall have bills of sale (or similar instruments
of assignment) and, if appropriate, UCC-1 financing statements, with respect to
all assets purchased from any of the Other Companies.

            (l)   The Borrower shall not engage in any transaction with any of
the Other Companies, except as permitted by this Second Restated Loan Agreement
or the Charter and as contemplated by the Second Restated Repurchase Agreement.

            (m)   The Borrower will limit its activities to those specified in
the Charter and has no Subsidiaries.

                                   ARTICLE VII

                               NEGATIVE COVENANTS

            The Borrower and the Servicer shall each at all times comply with
the covenants applicable to it contained in this Article VII, from the date
hereof until the later of the Drawdown Termination Date and the date all of the
Obligations are paid in full:

      7.1.  Limitations on Mergers and Acquisitions.

            (a)   The Servicer (so long as the Servicer and the Originator are
the same entity) shall not (i) merge or consolidate with or into any corporation
or other entity unless the Servicer is the surviving entity of any such merger
or consolidation or (ii) liquidate or dissolve.

            (b)   The Borrower will not merge with or into or consolidate with
or into, or convey, transfer, lease or otherwise dispose of (whether in one
transaction or in a series of transactions), all or substantially all of its
assets (whether now owned or hereafter acquired) to, or acquire all or
substantially all of the assets or capital stock or other ownership interest of,
or enter into any joint venture or partnership agreement with, any Person, other
than as contemplated by this Second Restated Loan Agreement and the Second
Restated Repurchase Agreement.

      7.2.  Fiscal Year.

            Neither the Borrower nor, so long as the Servicer and the Originator
are the same entity, the Servicer shall change its fiscal year other than to
conform with changes that may be made to the Performance Guarantor's fiscal year
and then only after notice to the Managing Agents and after whatever amendments
are made to this Second Restated Loan Agreement as may be required by the
Managing Agents, in order that the reporting criteria for the financial
covenants contained in Articles VI and VII remain substantially unchanged.

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      7.3.  Business.

            The Borrower will not engage in any business other than as set forth
in Article V of the Charter.

      7.4.  Use of Proceeds.

            The Borrower shall not permit the proceeds of the Advances to be
used for any purpose other than those permitted by Section 6.11 hereof. The
Borrower shall not, directly or indirectly, use any of the proceeds of the
Advances for the purpose, whether immediate, incidental or ultimate, of buying
any "margin stock" or of maintaining, reducing or retiring any Indebtedness
originally incurred to purchase a stock that is currently any "margin stock," or
for any other purpose that might constitute this transaction a "purpose credit,"
in each case within the meaning of Regulation U, or otherwise take or permit to
be taken any action that would involve a violation of such Regulation U or of
Regulation T or Regulation Z (12 C.F.R. 224, as amended) or any other regulation
promulgated by the Federal Reserve Board.

      7.5.  Actions with Respect to Collateral.

            Neither the Borrower nor the Servicer shall:

            (a)   Compromise, extend, release, or adjust payments on any
Mortgage Collateral, accept a conveyance of mortgaged Property in full or
partial satisfaction of any Mortgage debt or release any Mortgage securing or
underlying any Mortgage Collateral, except as permitted by the related Approved
Investor or as contemplated in the servicing guidelines distributed thereby;

            (b)   Agree to the amendment or termination of any Take-Out
Commitment in which the Administrative Agent has a security interest or to
substitution of a Take-Out Commitment for a Take-Out Commitment in which the
Administrative Agent has a security interest hereunder, if such amendment,
termination or substitution may reasonably be expected (as determined by the
Collateral Agent or the Administrative Agent in either of their sole discretion)
to have a Material Adverse Effect or to result in a Default or Event of Default;

            (c)   Transfer, sell, assign or deliver any Mortgage Loan Collateral
pledged to the Administrative Agent to any Person other than the Administrative
Agent, except pursuant to a Take-Out Commitment or pursuant to either Section
3.3 or Section 3.4;

            (d)   Grant, create, incur, permit or suffer to exist any Lien upon
any Mortgage Loan Collateral except for (i) Liens granted to the Administrative
Agent to secure the Notes and Obligations and (ii) any rights created by the
Second Restated Repurchase Agreement; or

            (e)   With respect to any Mortgage Loans constituting Collateral,
permit the payment instructions relating to a Take-Out Commitment to provide for
payment to any Person except directly to the Cash and Collateral Account.

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      7.6.  Liens.

            The Borrower will not sell, assign (by operation of law or
otherwise) or otherwise dispose of, or create or suffer to exist any Lien upon
or with respect to, any Mortgage Asset, or upon or with respect to any account
to which any Collections of any Mortgage Asset are sent, or assign any right to
receive income in respect thereof except as contemplated hereby.

      7.7.  Employee Benefit Plans.

            Neither the Borrower nor, so long as the Servicer and the Originator
are the same entity, the Servicer may permit any of the events or circumstances
described in Section 5.3(b) to exist or occur.

      7.8.  Change of Principal Office or Jurisdiction.

            The Borrower shall not move its principal office, executive office
or principal place of business from the address set forth in Section 5.2(g)
without 30-days' prior written notice to the Administrative Agent and the
Managing Agents. The Borrower shall not change its place of organization or add
a new jurisdiction of organization without 30 days' prior written notice to the
Administrative Agent.

      7.9.  No Commercial, A&D, Etc. Loans.

            The Borrower shall not make or acquire any direct outright ownership
interest, participation interest or other creditor's interest in any commercial
real estate loan, acquisition and/or development loan, unimproved real estate
loan, personal property loan, oil and gas loan, commercial loan, wrap-around
real estate loan, unsecured loan, acquisition, development or construction loan.

      7.10. Maximum Leverage.

            If the Servicer is the Originator, the Servicer shall never permit
its Adjusted Liabilities to exceed 12 times its Adjusted Net Worth.

      7.11. Indebtedness.

            The Borrower will not incur any Indebtedness, other than any
Indebtedness incurred pursuant to this Second Restated Loan Agreement or the
Second Restated Repurchase Agreement or permitted to be incurred pursuant to the
Charter.

      7.12. Deposits to Collection Account.

            Neither the Borrower nor the Servicer shall deposit or otherwise
credit, or cause or permit to be so deposited or credited, to the Collection
Account, cash or cash proceeds other than Collateral Proceeds.

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      7.13. Transaction Documents.

            The Borrower will not amend, waive, terminate or modify any
provision of any Transaction Document to which it is a party (provided that the
Borrower may extend the "Facility Termination Date" or waive the occurrence of
any "Event of Default" under the Second Restated Repurchase Agreement) without,
in each case, the prior written consent of the Managing Agents. The Borrower
will perform all of its obligations under each Transaction Document to which it
is a party and will enforce each Transaction Document to which it is a party in
accordance with its terms in all respects.

      7.14. Distributions, Etc.

            The Borrower will not declare or make any dividend payment or other
distribution of assets, properties, cash, rights, obligations or securities on
account of any equity ownership interests of the Borrower, or return any capital
to its members as such, or purchase, retire, defease, redeem or otherwise
acquire for value or make any payment in respect of any equity ownership
interests of the Borrower or any warrants, rights or options to acquire any such
interests, now or hereafter outstanding; provided, however, that the Borrower
may declare and pay cash distributions on its equity ownership interests to its
members so long as (a) no Event of Default shall then exist or would occur as a
result thereof, (b) such distributions are in compliance with all applicable law
including the corporate law of the state of Borrower's organization, and (c)
such distributions have been approved by all necessary and appropriate action of
the Borrower.

      7.15. Charter.

            The Borrower will not amend or delete (a) Articles V through XX or
(b) the definition of "Independent Director" set forth in the Charter. The
Borrower will perform all of its obligations under the Charter.

                                  ARTICLE VIII

                                EVENTS OF DEFAULT

      8.1.  Nature of Event.

            An "Event of Default" shall exist if any one or more of the
following occurs:

            (a)   the Borrower fails (i) to make any payment of principal of or
interest on any of the Notes when due, or (ii) to make any payment, five (5)
Business Days after written notice thereof, of any fee, expense or other amount
due hereunder, under the Notes or under any other Transaction Document or, so
long as the Servicer and the Originator are the same entity, the Servicer fails
to make any payment or deposit to be made by it under this Second Restated Loan
Agreement by the third Business Day after the date such payment is due; or

            (b)   the Borrower, the Originator or, so long as the Servicer and
the Originator are the same entity, the Servicer fails to keep or perform any
covenant or agreement contained in this Second Restated Loan Agreement (other
than as referred to in Section 8.1(a) and such failure

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continues unremedied beyond the expiration of any applicable grace or notice
period that may be expressly provided for in such covenant or agreement (or, if
no grace or notice period is provided for thirty days after written notice
thereof); or

            (c) the Borrower, the Originator, the Servicer (so long as the
Servicer and the Originator are the same entity) or the Performance Guarantor
defaults in the due observance or performance of any of the covenants or
agreements contained in any Transaction Document other than this Second Restated
Loan Agreement, and (unless such default otherwise constitutes a Default or an
Event of Default pursuant to other provisions of this Section 8.1) such default
continues unremedied for five (5) calendar days after notice thereof beyond the
expiration of any applicable grace or notice period that may be expressly
provided for in such Transaction Document (or, if no grace or notice is
provided, for thirty days after written notice thereof); or

            (d) any statement, warranty or representation by or on behalf of the
Borrower, the Originator, the Servicer (so long as the Servicer and the
Originator are the same entity) or the Performance Guarantor contained in this
Second Restated Loan Agreement, the Notes or any other Transaction Document or
any Borrowing Request, officer's certificate or other writing furnished in
connection with this Second Restated Loan Agreement, proves to have been
incorrect or misleading in any material respect as of the date made or deemed
made; or

            (e) (i) the Borrower, the Originator, the Servicer (so long as the
Servicer and the Originator are the same entity) or the Performance Guarantor
fails to make when due or within any applicable grace period any payment on any
other Indebtedness with an unpaid principal balance of over $1,000,000.00
($10,000,000.00 in the case of the Performance Guarantor); or (ii) any event or
condition occurs under any provision contained in any such obligation or any
agreement securing or relating to such obligation (or any other breach or
default under such obligation or agreement occurs) if the effect thereof is to
cause or permit with the giving of notice or lapse of time or both the holder or
trustee of such obligation to cause such obligation to become due prior to its
stated maturity; or (iii) any such obligation becomes due (other than by
regularly scheduled payments) prior to its stated maturity; or (iv) any of the
foregoing occurs with respect to any one or more items of Indebtedness of the
Borrower, the Originator, the Servicer (so long as the Servicer and the
Originator are the same entity) or the Performance Guarantor with unpaid
principal balances exceeding, in the aggregate, $1,000,000.00 ($10,000,000.00 in
the case of the Performance Guarantor); or

            (f) the Borrower, the Originator, the Servicer (so long as the
Servicer and the Originator are the same entity) or the Performance Guarantor
generally shall not pay its debts as they become due or shall admit in writing
its inability to pay its debts, or shall make a general assignment for the
benefit of creditors; or

            (g) the Borrower, the Originator, the Servicer (so long as the
Servicer and the Originator are the same entity) or the Performance Guarantor
shall (i) apply for or consent to the appointment of a receiver, trustee,
custodian, intervenor or liquidator of it or of all or a substantial part of its
assets, (ii) file a voluntary petition in bankruptcy, (iii) file a petition or
answer seeking reorganization or an arrangement with creditors or to take
advantage of any Debtor Laws, (iv) file an answer admitting the allegations of,
or consent to, or default in

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answering, a petition filed against it in any bankruptcy, reorganization or
insolvency proceeding, or (v) take action for the purpose of effecting any of
the foregoing; or

            (h) an involuntary petition or complaint shall be filed against the
Borrower, the Originator, the Servicer (so long as the Servicer and the
Originator are the same entity) or the Performance Guarantor seeking bankruptcy
or reorganization of the Borrower, the Originator, the Servicer or the
Performance Guarantor or the appointment of a receiver, custodian, trustee,
intervenor or liquidator of the Borrower, the Originator, the Servicer or the
Performance Guarantor, or all or substantially all of the assets of either the
Borrower, the Originator, the Servicer or the Performance Guarantor, and such
petition or complaint shall not have been dismissed within 60 days of the filing
thereof; or an order, order for relief, judgment or, decree shall be entered by
any court of competent jurisdiction or other competent authority approving a
petition or complaint seeking reorganization of the Borrower, the Originator,
the Servicer (so long as the Servicer and the Originator are the same entity) or
the Performance Guarantor or appointing a receiver, custodian, trustee,
intervenor or liquidator of the Borrower, the Originator, the Servicer or the
Performance Guarantor, or of all or substantially all of assets of the Borrower,
the Originator, the Servicer or the Performance Guarantor; or

            (i) the Borrower, the Originator, the Servicer (so long as the
Servicer and the Originator are the same entity) or the Performance Guarantor
shall fail within 30 days to pay, bond or otherwise discharge any final judgment
or order for payment of money in excess of $1,000,000.00; or the Borrower, the
Originator or, so long as the Servicer and the Originator are the same entity,
the Servicer shall fail within 30 days to pay, bond or otherwise discharge final
judgments or orders for payment of money which exceed in the aggregate
$1,000,000.00 ($10,000,000.00 with respect to the Performance Guarantor); or the
Borrower, the Originator, the Servicer (so long as the Servicer and the
Originator are the same entity) or the Performance Guarantor shall fail within
30 days to timely appeal or pay, bond or otherwise discharge any judgments or
orders for payment of money which exceed, in the aggregate, $1,000,000.00
($10,000,000.00 with respect to the Performance Guarantor) and which the
Borrower, the Originator, the Servicer or the Performance Guarantor may appeal;
or

            (j) any Person shall levy on, seize or attach all or any material
portion of the assets of the Borrower, the Originator, the Servicer (so long as
the Servicer and the Originator are the same entity) or the Performance
Guarantor and within thirty (30) days thereafter the Borrower, the Originator,
the Servicer or the Performance Guarantor shall not have dissolved such levy or
attachment, as the case may be, and, if applicable, regained possession of such
seized assets; or

            (k) if an event or condition specified in Section 5.3(b) shall occur
or exist; or

            (l) the Borrower, the Originator or the Servicer (so long as the
Servicer and the Originator are the same entity) becomes ineligible to
originate, sell or service Mortgage Loans to Fannie Mae, Freddie Mac or Ginnie
Mae, or Fannie Mae, Freddie Mac or Ginnie Mae shall impose any sanctions upon or
terminate or revoke any rights of the Borrower, the Servicer (so long as the
Servicer and the Originator are the same entity) or the Originator; or

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            (m) if (x) any Governmental Authority cancels the Originator's right
to be either a seller or servicer of such Governmental Authority's insured or
guaranteed Mortgage Loans or mortgage-backed securities, (y) any Approved
Investor cancels for cause any servicing or underwriting agreement between the
Borrower or the Originator and such Approved Investor or (z) the Originator
receives notice from a Governmental Authority that such Governmental Authority
intends to revoke the Originator's right to be a seller or servicer of such
Governmental Authority's insured or guaranteed Mortgage Loans or
mortgaged-backed securities and such notice is not withdrawn within 30 days of
the receipt thereof; or

            (n) failure of the Borrower or the Originator to correct an
imbalance in any escrow account established with Borrower or the Originator as
either an originator, purchaser or servicer of Mortgage Loans, which imbalance
may have a Material Adverse Effect, within two (2) Business Days after demand by
any beneficiary of such account or by the Administrative Agent; or

            (o) failure of the Originator to meet, at all times, the minimum net
worth requirements of Fannie Mae, Freddie Mac or Ginnie Mae as an originator,
seller or servicer; or

            (p) any provision of this Second Restated Loan Agreement, the Notes
or any other Transaction Document shall for any reason cease to be in full force
and effect, or be declared null and void or unenforceable in whole or in part;
or the validity or enforceability of any such document shall be challenged or
denied; or

            (q) a "change in control," with respect to the ownership of the
Performance Guarantor shall have occurred (and as used in this subparagraph, the
term "change in control" shall mean an acquisition by any Person, partnership or
group, as defined under the Securities Exchange Act of 1934, as amended, of a
direct or indirect beneficial ownership of 30% or more of the then-outstanding
voting stock of the Performance Guarantor); or the Performance Guarantor shall
cease at any time to own, directly or indirectly, at least 75% of each class of
the outstanding capital stock of the Originator; or

            (r) the total Collateral Value of all Eligible Mortgage Collateral
shall be less than the Principal Debt at any time, and the Borrower shall fail
either to provide additional Eligible Mortgage Collateral with a sufficient
Collateral Value, or to pay Principal Debt, in an amount sufficient to correct
the deficiency within one Business Day after such failure; or

            (s) if, as a result of the Borrower's failure to obtain and deliver
to the Collateral Agent, Principal Mortgage Documents as required by Section
2.3(c), the Administrative Agent shall determine that the continuation of such
condition may have a Material Adverse Effect on the Borrower or the Lenders; or

            (t) there shall have occurred any event that adversely affects the
enforceability or collectability of any significant portion of the Mortgage
Loans or the Take-Out Commitments (provided that to the extent such event gives
rise to an obligation by the Originator to repurchase such Mortgage Loans
pursuant to the Second Restated Repurchase Agreement and the Originator does so
repurchase in accordance with the provisions of the Second Restated Repurchase
Agreement, no Event of Default shall occur under this Section 8.1(t) or there
shall

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have occurred any other event that adversely affects the ability of the
Borrower, the Servicer or the Collateral Agent to collect a significant portion
of Mortgage Loans or Take-Out Commitments or the ability of the Borrower or, so
long as the Servicer and the Originator are the same entity, the Servicer to
perform hereunder or a Material Adverse Effect has occurred in the financial
condition or business of the Borrower since inception or, so long as the
Servicer and the Originator are the same entity, the Servicer since June 30,
2005; or

            (u) (i) any litigation (including, without limitation, derivative
actions), arbitration proceedings or governmental proceedings not disclosed in
writing by the Borrower to the Lenders, the Administrative Agent and the
Managing Agents prior to the date of execution and delivery of this Second
Restated Loan Agreement is pending against the Borrower or any Affiliate
thereof, or (ii) any development not so disclosed has occurred in any litigation
(including, without limitation, derivative actions), arbitration proceedings or
governmental proceedings so disclosed, which, in the case of either clause (i)
and/or (ii), in the good faith opinion of the Administrative Agent, is likely to
materially adversely affect the financial position or business of the Borrower,
the Originator, the Servicer or the Performance Guarantor or materially impair
the ability of the Borrower, the Originator, the Servicer or the Performance
Guarantor to perform its obligations under this Second Restated Loan Agreement
or any other Transaction Document; or

            (v) the Internal Revenue Service shall file notice of a lien
pursuant to Section 6323 of the Code with regard to any of the assets of the
Borrower or the Originator and such lien shall not have been released within 30
days and, with respect to the Originator only, such lien is in an amount
exceeding $500,000, or the PBGC shall, or shall indicate its intention to, file
notice of a lien pursuant to Section 4068 of ERISA with regard to any of the
assets of the Borrower, the Originator or the Performance Guarantor and as to
the Originator or the Performance Guarantor only, such lien is or will be in an
amount exceeding $500,000; or

            (w) as at the end of any Collection Period, the Default Ratio shall
exceed 1%; or

            (x) a successor Collateral Agent shall not have been appointed and
accepted such appointment within 180 days after the retiring Collateral Agent
shall have given notice of resignation pursuant to Section 4.4 of the Collateral
Agreement; or

            (y) an "Event of Default" shall occur under the Second Restated
Repurchase Agreement, or the Second Restated Repurchase Agreement shall cease to
be in full force and effect; or

            (z) all of the outstanding equity ownership interests of the
Borrower shall cease to be owned, directly or indirectly, by Pulte; or

            (aa) the Borrower shall cease or otherwise fail to have a good and
valid title to (or, to the extent that Article 9 of the UCC is applicable to the
Borrower's acquisition thereof, a valid perfected security interest in) a
significant portion of the Collateral (other than Collateral released in
accordance with Section 3.3 or the Security Instruments shall for any reason
(other than pursuant to the terms hereof) fail or cease to create a valid and
perfected first priority

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security interest in the Mortgage Loans and the other Collateral for the benefit
of the holders of the Obligations; or

            (bb) the Originator's Net Worth shall be less than $30,000,000; or

            (cc) as at the end of any Collection Period the amount of the Excess
Spread is not positive, and the Excess Spread is not made positive within five
(5) Business Days; or

            (dd) as of the Settlement Date following any withdrawal from the
Reserve Account pursuant to Section 2.8(e)(i) (after giving effect to any
deposit to the Reserve Account pursuant to Section 2.7(c)(iii)(D) on such
Settlement Date) the amount on deposit in the Reserve Account shall be less than
the Required Reserve Account Amount and such deficiency is not funded within
five (5) Business days; or

            (ee) any of Moody's, S&P or Fitch shall rate any publicly traded
investment securities evidencing senior unsecured debt of the Performance
Guarantor at less than Ba1, BBB-or BBB-, respectively.

      8.2. Default Remedies.

            (a) Upon the occurrence and continuation of an Event of Default
under Sections 8.1(f), (g) or (h) of this Second Restated Loan Agreement, the
entire unpaid balance of the Obligations shall automatically become due and
payable, the Drawdown Termination Date shall immediately occur and the Maximum
Facility Amount shall immediately terminate, all without any notice or action of
any kind whatsoever.

            (b) Intentionally Omitted.

            (c) Upon the occurrence and continuation of an Event of Default
under any provision of Section 8.1 other than those set forth in Section 8.2(a),
the Administrative Agent may, but need not, do any one or both of the following:
(i) declare the entire unpaid balance of the Obligations immediately due and
payable, whereupon it shall be due and payable; and (ii) declare the Drawdown
Termination Date to have occurred and terminate the Maximum Facility Amount.

            (d) Upon the occurrence of an Event of Default under any provision
of Section 8.1 and the acceleration of the unpaid balance of the Obligations
pursuant to Section 8.2(a) or (c), the Administrative Agent may (and shall at
the direction of the Majority Banks) do any one or more of the following: (i)
reduce any claim to judgment; (ii) exercise the rights of offset or banker's
Lien against the interest of the Borrower in and to every account and other
Property of the Borrower that are in the possession of the Lenders, the Managing
Agents, the Collateral Agent or the Administrative Agent to the extent of the
full amount of the Obligations (the Borrower being deemed directly obligated to
the Lenders and the Administrative Agent in the full amount of the Obligations
for such purposes); (iii) foreclose or direct the Collateral Agent to foreclose
any or all Liens or otherwise realize upon any and all of the rights the
Administrative Agent may have in and to the Collateral, or any part thereof; and
(iv) exercise any and all other legal or equitable rights afforded by the
Transaction Documents, applicable Governmental Requirements, or otherwise,
including, but not limited to, the right to

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bring suit or other proceedings before any Governmental Authority either for
specific performance of any covenant or condition contained in any of the
Transaction Documents or in aid of the exercise of any right granted to the
Lenders, the Managing Agents or the Administrative Agent in any of the
Transaction Documents.

            (e) Notwithstanding anything to the contrary herein, the Obligations
of the Borrower under this Second Restated Loan Agreement shall be recourse
solely to the Mortgage Assets, and the Borrower shall have no obligation in
respect of any deficiencies.

      8.3. Paydowns.

            Immediately upon the occurrence of an Event of Default, and without
any requirement for notice or demand (including, without limitation, any notice
or demand otherwise required under Section 8.1), the Borrower shall (a) make a
payment to the Administrative Agent equal to the Collateral Deficiency and (b)
deliver to the Collateral Agent additional Take-Out Commitments in an amount
equal to unrepaid Advances that have been made against any Uncovered Mortgage
Loans. Take-Out Commitments for Conforming Loans that are delivered pursuant to
clause (b), above, in addition to conforming with all other criteria of this
Second Restated Loan Agreement, shall also substantially conform to the interest
rates and "terms to maturity" for all Uncovered Mortgage Loans. This is a
special, and not an exclusive, right or remedy, and any demand for performance
under this Section 8.3 shall not waive or affect the Lenders' or the
Administrative Agent's rights to enforce any security interest in the
Collateral, collect a deficiency or to pursue damages or any other remedy, as
herein provided or as permitted at law or in equity, until all Obligations have
been fully paid and performed.

      8.4. Waivers of Notice, Etc.

            Except as otherwise provided in this Second Restated Loan Agreement,
the Borrower and each surety, endorser, guarantor and other party ever liable
for payment of any sum or sums of money that may become due and payable, or the
performance or any undertaking that may be owed, to the Lenders, the Managing
Agents or the Administrative Agent pursuant to this Second Restated Loan
Agreement, the Notes, or the other Transaction Documents, including the
Obligations, jointly and severally waive demand for payment, presentment,
protest, notice of protest and nonpayment or other notice of default, notice of
acceleration and notice of intention to accelerate, and agree that its or their
liability under this Second Restated Loan Agreement, the Notes or other
Transaction Documents shall not be affected by any renewal or extension of the
time or place of payment or performance hereof, or any indulgences by the
Lenders, the Managing Agents or the Administrative Agent, or by any release or
change in any security for the payment of the Obligations, and hereby consent to
any and all renewals, extensions, indulgences, releases or changes, regardless
of the number of such renewals, extensions, indulgences, releases or changes.

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                                   ARTICLE IX

                            THE ADMINISTRATIVE AGENT

      9.1. Authorization.

            Each Lender has appointed the Administrative Agent as its agent to
take such action as agent on its behalf and to exercise such powers under this
Second Restated Loan Agreement as are delegated to the Administrative Agent by
the terms hereof, together with such powers as are reasonably incidental
thereto. As to any matters not expressly provided for by this Second Restated
Loan Agreement (including, without limitation, enforcement of this Second
Restated Loan Agreement), the Administrative Agent shall not be required to
exercise any discretion or take any action, but shall be required to act or to
refrain from acting (and shall be fully protected in so acting or refraining
from acting) upon the instructions of the Majority Banks, and such instructions
shall be binding upon all Lenders; provided, however, that the Administrative
Agent shall not be required to take any action that exposes the Administrative
Agent to personal liability or that is contrary to this Second Restated Loan
Agreement or applicable law.

      9.2. Reliance by Administrative Agent.

            Notwithstanding anything to the contrary in this Second Restated
Loan Agreement or any other Transaction Document, neither the Administrative
Agent nor any of its directors, managers, officers, agents, representatives,
employees, attorneys-in-fact or Affiliates shall be liable for any action taken
or omitted to be taken by it or them (in their capacity as or on behalf of the
Administrative Agent) under or in connection with this Second Restated Loan
Agreement or the other Transaction Documents, except for its or their own gross
negligence or willful misconduct. Without limitation of the generality of the
foregoing, the Administrative Agent: (a) may treat the payee of the Notes as the
holder thereof; (b) may consult with legal counsel (including counsel for the
Borrower), independent public accountants and other experts selected by it or
the Borrower and shall not be liable for any action taken or omitted to be taken
in good faith by it in accordance with the advice of such counsel, accountants
or experts; (c) makes no warranty or representation to any Lender or Managing
Agent and shall not be responsible to any Lender or Managing Agent for any
statements, warranties or representations made in or in connection with this
Second Restated Loan Agreement or the other Transaction Documents; (d) shall not
have any duty to ascertain or to inquire as to the performance or observance of
any of the terms, covenants or conditions of this Second Restated Loan Agreement
on the part of the Borrower or to inspect the Property (including the books and
records) of the Borrower; (e) shall not be responsible to any Lender or Managing
Agent for the due execution, legality, validity, enforceability, genuineness,
sufficiency or value of this Second Restated Loan Agreement or any other
instrument or document furnished pursuant hereto or the enforceability or
perfection or priority of any Collateral; and (f) shall incur no liability under
or in respect of this Second Restated Loan Agreement or any other Transaction
Document by acting upon any notice, consent, certificate or other instrument or
writing (which may be by telegram, cable or telex) believed by the
Administrative Agent to be genuine and signed or sent by the proper Person or
party.

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      9.3. Administrative Agent and Affiliates.

            With respect to any Advance made by Calyon New York, Calyon New York
shall have the same rights and powers under this Second Restated Loan Agreement
as would any Lender and may exercise the same as though it were not the
Administrative Agent. Calyon New York and its Affiliates may accept deposits
from, lend money to, act as trustee under indentures of, and generally engage in
any kind of business with, the Borrower, the Managing Agents, any of the
Borrower's Affiliates and any Person who may do business with or own securities
of the Borrower, the Managing Agents or any such Affiliate, all as if Calyon New
York were not the Administrative Agent and without any duty to account therefor
to the Lenders. If Calyon New York is removed as Administrative Agent, such
removal will not affect Calyon New York's rights and interests as a Lender.

      9.4. Lender Decision.

            Each Lender (including each Lender that becomes a party hereto by
assignment) acknowledges that it has, independently and without reliance on the
Administrative Agent, any of its Affiliates or any other Lender and based on
such documents and information as it has deemed appropriate, made its own
evaluation and decision to enter into this Second Restated Loan Agreement. Each
Lender also acknowledges that it will, independently and without reliance on the
Administrative Agent, any of its Affiliates or any other Lender and based on
such documents and information as it shall deem appropriate at the time,
continue to make its own decisions in taking or not taking action under this
Second Restated Loan Agreement.

      9.5. Rights of the Administrative Agent.

            Each right and remedy expressly provided by this Second Restated
Loan Agreement as being available to the Administrative Agent shall be exercised
by the Administrative Agent only at the direction of the Majority Banks.

      9.6. Indemnification of Administrative Agent.

            Each Bank agrees to indemnify the Administrative Agent (to the
extent not reimbursed by or on behalf of the Borrower), ratably according to the
respective principal amounts held by it (or if no Advances are then outstanding,
each Bank shall indemnify the Administrative Agent ratably according to the
amount of its Bank Commitment), from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind or nature whatsoever that may be imposed
on, incurred by, or asserted against the Administrative Agent in any way
relating to or arising out of this Second Restated Loan Agreement or the other
Transaction Documents or any action taken or omitted by the Administrative Agent
under this Second Restated Loan Agreement or the other Transaction Documents,
provided that no Bank shall be liable for any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements resulting from the Administrative Agent's gross
negligence or willful misconduct.

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      9.7. UCC Filings.

            The Lenders and the Borrower expressly recognize and agree that the
Administrative Agent may be listed as the assignee or secured party of record on
the various UCC filings made hereunder in order to perfect the security interest
in the Collateral granted by the Borrower for the benefit of the holders of the
Obligations and that such listing is for administrative convenience only in
creating a record-holder or nominee to take certain actions hereunder on behalf
of the holders of the Obligations.

                                    ARTICLE X

                                 INDEMNIFICATION

      10.1. Indemnities by the Borrower.

            (a) General Indemnity. Without limiting any other rights that any
such Person may have hereunder or under applicable law, the Borrower hereby
agrees to indemnify each of the Lenders, each Managing Agent, the agents, any
Affected Party, their respective successors, transferees, participants and
assigns and all affiliates, officers, directors, managers, shareholders,
controlling persons, employees and agents of any of the foregoing (each an
"Indemnified Party"), forthwith on demand, from and against any and all damages,
losses, claims, liabilities and related costs and expenses, including attorneys'
fees and disbursements (all of the foregoing being collectively referred to as
"Indemnified Amounts") awarded against or incurred by any of them arising out of
or relating to this Second Restated Loan Agreement or the exercise or
performance of any of its or their powers or duties, in respect of any Mortgage
Loan or Take-Out Commitment, or related in any way to its or their possession
of, or dealings with, the Collateral, excluding, however, (i) Indemnified
Amounts to the extent resulting from gross negligence or willful misconduct on
the part of such Indemnified Party, (ii) internal costs and expenses incurred in
the ordinary course of business and (iii) income taxes.

      10.2. Contribution.

            If for any reason the indemnification provided above in this Section
10.1 is unavailable to an Indemnified Party or is insufficient to hold an
Indemnified Party harmless, then the Borrower shall contribute to the amount
paid or payable by such Indemnified Party as a result of such loss, claim,
damage or liability in such proportion as is appropriate to reflect not only the
relative benefits received by such Indemnified Party on the one hand and
Borrower on the other hand but also the relative fault of such Indemnified Party
as well as any other relevant equitable considerations.

                                   ARTICLE XI

                 ADMINISTRATION AND COLLECTION OF MORTGAGE LOANS

      11.1. Designation of Servicer.

            The servicing, administration and collection of the Mortgage Assets
shall be conducted by the Servicer so designated hereunder from time to time.
Until the Administrative

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Agent gives notice to the Borrower and the Originator of the designation of a
new Servicer, the Originator is hereby designated as, and hereby agrees to
perform the duties and obligations of, the Servicer pursuant to the terms
hereof. The Administrative Agent may at any time following the occurrence of a
Servicer Default designate as Servicer any Person (including itself) to succeed
the Originator or any successor Servicer, if such Person shall consent and agree
to the terms hereof. The Servicer may, with the prior consent of the
Administrative Agent, subcontract with any other Person for the servicing,
administration or collection of the Mortgage Assets. Any such subcontract shall
not affect the Servicer's liability for performance of its duties and
obligations pursuant to the terms hereof.

      11.2. Duties of Servicer.

            (a) The Servicer shall take or cause to be taken all such actions as
may be necessary or advisable to collect each Mortgage Asset from time to time,
all in accordance with applicable laws, rules and regulations, with care and
diligence, and in accordance with the servicing guide issued by the Governmental
Authority applicable to such Mortgage Asset or, in the case of Non-Conforming
Loans, the servicing criteria specified by the Approved Investor that has issued
a Take-Out Commitment with respect thereto. The Borrower and the Administrative
Agent hereby appoint the Servicer, from time to time designated pursuant to
Section 11.1, as agent for themselves and for the Lenders to enforce their
respective rights and interests in the Mortgage Assets and the Collections
thereof. In performing its duties as Servicer, the Servicer shall exercise the
same care and apply the same policies as it would exercise and apply if it owned
such Mortgage Loans and shall act in the best interests of the Borrower and the
Lenders.

            (b) The Servicer shall administer the Collections in accordance with
the procedures described in Section 2.7 and shall service the Collateral in
accordance with Section 7.7.

            (c) The Servicer shall hold in trust for the Borrower and the
Lenders, in accordance with their respective interests, all books and records
(including, without limitation, computer tapes or disks) that relate to the
Mortgage Assets.

            (d) The Servicer shall, as soon as practicable following receipt,
turn over to the Borrower or the Originator, as appropriate, any cash
collections or other cash proceeds received with respect to Property not
constituting Mortgage Assets.

            (e) The Servicer shall, from time to time at the request of the
Administrative Agent, furnish to the Administrative Agent (promptly after any
such request) a calculation of the amounts set aside for the Lenders pursuant to
Section 2.7(c).

            (f) The Servicer shall perform the duties and obligations of the
Servicer set forth in the Second Restated Collateral Agency Agreement and the
other Security Instruments.

      11.3. Certain Rights of the Administrative Agent.

            At any time following the designation of a Servicer other than the
Originator pursuant to Section 11.1 or following an Event of Default:

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            (a) The Administrative Agent may direct the Obligors that all
payments thereunder be made directly to the Administrative Agent or its
designee.

            (b) At the Administrative Agent's request and at the Borrower's
expense, the Borrower shall notify each Obligor of the Lien on the Mortgage
Assets and direct that payments be made directly to the Administrative Agent or
its designee.

            (c) At the Administrative Agent's request and at the Borrower's
expense, the Borrower and the Servicer shall (i) assemble all of the documents,
instruments and other records (including, without limitation, computer tapes and
disks) that evidence or relate to the Mortgage Assets and Collections and
Collateral, or that are otherwise necessary or desirable to collect the Mortgage
Assets, and shall make the same available to the Administrative Agent at a place
selected by the Administrative Agent or its designee, and (ii) segregate all
cash, checks and other instruments received by it from time to time constituting
Collections in a manner reasonably acceptable to the Administrative Agent and,
promptly upon receipt, remit all such cash, checks and instruments, duly
endorsed or with duly executed instruments of transfer, to the Administrative
Agent or its designee.

            (d) The Borrower authorizes the Administrative Agent to take any and
all steps in the Borrower's name and on behalf of the Borrower that are
necessary or desirable, in the determination of the Administrative Agent, to
collect amounts due under the Mortgage Assets, including, without limitation,
endorsing the Borrower's name on checks and other instruments representing
Collections and enforcing the Mortgage Assets and the other Collateral.

      11.4. Rights and Remedies.

            (a) If the Servicer fails to perform any of its obligations under
this Second Restated Loan Agreement, the Administrative Agent may (but shall not
be required to) itself perform, or cause performance of, such obligation; and
the Administrative Agent's costs and expenses incurred in connection therewith
shall be payable by the Servicer.

            (b) The Borrower and the Originator shall perform their respective
obligations under the Mortgage Loans to the same extent as if such Mortgage
Loans had not been sold by the Originator and the exercise by the Administrative
Agent on behalf of the Lenders of their rights under this Second Restated Loan
Agreement shall not release the Servicer or the Borrower from any of their
duties or obligations with respect to any Mortgage Loans. Neither the
Administrative Agent, nor the Lenders shall have any obligation or liability
with respect to any Mortgage Loans, nor shall any of them be obligated to
perform the obligations of the Borrower thereunder.

            (c) In the event of any conflict between the provisions of this
Article XI of this Second Restated Loan Agreement and Article VI of the Second
Restated Repurchase Agreement, the provisions of this Second Restated Loan
Agreement shall control.

      11.5. Indemnities by the Servicer.

            Without limiting any other rights that the Administrative Agent, any
Lender or Managing Agent or any of their respective Affiliates (each, a "Special
Indemnified Party") may

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have hereunder or under applicable law, and in consideration of its appointment
as Servicer, the Servicer hereby agrees to indemnify each Special Indemnified
Party from and against any and all claims, losses and liabilities (including
attorneys' fees) (all of the foregoing being collectively referred to as
"Special Indemnified Amounts") arising out of or resulting from any of the
following (excluding, however, (x) Special Indemnified Amounts to the extent
resulting from gross negligence or willful misconduct on the part of such
Special Indemnified Party, (y) recourse for Mortgage Assets that are not
collected, not paid or uncollectible on account of the insolvency, bankruptcy or
financial inability to pay of the applicable Obligor or (z) any income taxes or
any other tax or fee measured by income incurred by such Special Indemnified
Party arising out of or as a result of this Second Restated Loan Agreement or
the Borrowings hereunder):

            (a) any representation or warranty or statement made or deemed made
by the Servicer under or in connection with this Second Restated Loan Agreement
that shall have been incorrect in any respect when made;

            (b) the failure by the Servicer to comply in any material respect
with any applicable law, rule or regulation with respect to any Mortgage Asset
or the failure of any Mortgage Loan to conform to any such applicable law, rule
or regulation;

            (c) the failure to have filed, or any delay in filing, financing
statements, Mortgages or assignments of Mortgages under the applicable laws of
any applicable jurisdiction with respect to any Mortgage Assets and the other
Collateral and Collections in respect thereof, whether at the time of any
purchase under the Second Restated Repurchase Agreement or at any subsequent
time;

            (d) any failure of the Servicer to perform its duties or obligations
in accordance with the provisions of this Second Restated Loan Agreement;

            (e) the commingling of Collections at any time by the Servicer with
other funds;

            (f) any action or omission by the Servicer reducing or impairing the
rights of the Administrative Agent or the Lenders with respect to any Mortgage
Asset or the value of any Mortgage Asset;

            (g) any Servicer Fees or other costs and expenses payable to any
replacement Servicer, to the extent in excess of the Servicer Fees payable to
the Servicer hereunder; or

            (h) any claim brought by any Person other than a Special Indemnified
Party arising from any activity by the Servicer or its Affiliates in servicing,
administering or collecting any Mortgage Asset.

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                                  ARTICLE XII

                              THE MANAGING AGENTS

      12.1. Authorization.

            The Calyon New York Group has appointed Calyon New York as its
Managing Agent to take such action as agent on its behalf and to exercise such
powers under this Second Restated Loan Agreement as are delegated to such
Managing Agent by the terms hereof, together with such powers as are reasonably
incidental thereto. The JPMorgan Group has appointed JPMorgan as its Managing
Agent to take such action as agent on its behalf and to exercise such powers
under this Second Restated Loan Agreement as are delegated to such Managing
Agent by the terms hereof, together with such powers as are reasonably
incidental thereto. As to any matters not expressly provided for by this Second
Restated Loan Agreement (including, without limitation, enforcement of this
Second Restated Loan Agreement), each Managing Agent shall not be required to
exercise any discretion or take any action, but shall be required to act or to
refrain from acting (and shall be fully protected in so acting or refraining
from acting) upon the instructions of its Majority Group Banks, and such
instructions shall be binding upon all Lenders in its Group; provided, however,
that such Managing Agent shall not be required to take any action which exposes
such Managing Agent to personal liability or which is contrary to this Second
Restated Loan Agreement or applicable law.

      12.2. Reliance by Agent.

            Notwithstanding anything to the contrary in this Second Restated
Loan Agreement or any other Transaction Document, neither of the Managing Agents
nor any of their respective directors, managers, officers, agents,
representatives, employees, attorneys-in-fact or Affiliates shall be liable for
any action taken or omitted to be taken by it or them (in their capacity as or
on behalf of such Managing Agent) under or in connection with this Second
Restated Loan Agreement or the other Transaction Documents, except for its or
their own gross negligence or willful misconduct. Without limitation of the
generality of the foregoing, each Managing Agent: (a) may treat the payee of the
Notes as the holder thereof; (b) may consult with legal counsel (including
counsel for the Borrower), independent public accountants and other experts
selected by it or any such party and shall not be liable for any action taken or
omitted to be taken in good faith by it in accordance with the advice of such
counsel, accountants or experts; (c) makes no warranty or representation to any
Lender or to the other Managing Agents and shall not be responsible to any
Lender or to the other Managing Agents for any statements, warranties or
representations made in or in connection with this Second Restated Loan
Agreement or the other Transaction Documents; (d) shall not have any duty to
ascertain or to inquire as to the performance or observance of any of the terms,
covenants or conditions of this Second Restated Loan Agreement on the part of
the Borrower or to inspect the property (including the books and records) of the
Borrower; (e) shall not be responsible to any Lender or to the other Managing
Agents for the due execution, legality, validity, enforceability, genuineness,
sufficiency or value of this Second Restated Loan Agreement or any other
instrument or document furnished pursuant hereto or the enforceability or
perfection or priority of any Collateral; and (f) shall incur no liability under
or in respect of this Second Restated Loan Agreement or any other Transaction
Document by acting upon any notice, consent, certificate or

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other instrument or writing (which may be by telegram, cable or telex) believed
by such Managing Agent to be genuine and signed or sent by the proper Person or
party.

      12.3. Agent and Affiliates.

            With respect to any Advance made by a Managing Agent, such Managing
Agent shall have the same rights and powers under this Second Restated Loan
Agreement as would any Lender and may exercise the same as though it were not a
Managing Agent. The Managing Agents and their respective Affiliates may accept
deposits from, lend money to, act as trustee under indentures of, and generally
engage in any kind of business with, the Borrower, any of the Borrower's
respective Affiliates and any Person who may do business with the Borrower or
any such Affiliates or own the Borrower's securities or those of any such
Affiliate, all as if no such Managing Agent were a Managing Agent and without
any duty to account therefor to the Lenders. If any Managing Agent is removed as
a Managing Agent, such removal will not affect the rights and interests of such
Managing Agent as a Lender.

      12.4. Notices.

            Each Managing Agent shall give each Lender in its Group prompt
notice of each written notice received by it from the Borrower pursuant to the
terms of this Second Restated Loan Agreement.

      12.5. Lender Decision.

            Each Lender (including each Lender that becomes a party hereto by
assignment) acknowledges that it has, independently and without reliance on any
Managing Agent, any Managing Agent's Affiliates or any other Lender and based on
such documents and information as it has deemed appropriate, made its own
evaluation and decision to enter into this Second Restated Loan Agreement. Each
Lender also acknowledges that it will, independently and without reliance on any
Managing Agent, any Managing Agent's Affiliates or any other Lender and based on
such documents and information as it shall deem appropriate at the time,
continue to make its own decisions in taking or not taking action under this
Second Restated Loan Agreement.

                                  ARTICLE XIII

                                  MISCELLANEOUS

      13.1. Notices.

            Any notice or request required or permitted to be given under or in
connection with this Second Restated Loan Agreement, the Notes or the other
Transaction Documents (except as may otherwise be expressly required therein)
shall be in writing and shall be mailed by first class or express mail, postage
prepaid, or sent by telex, telegram, telecopy or other similar form of rapid
transmission, confirmed by mailing (by first class or express mail, postage
prepaid) written confirmation at substantially the same time as such rapid
transmission, or personally delivered to an officer of the receiving party. With
the exception of certain administrative and collateral reports that may be
directed to specific departments of the

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Administrative Agent, all such communications shall be mailed, sent or delivered
to the parties hereto at their respective addresses as follows:

Borrower:           PULTE FUNDING, INC.
                    7475 South Joliet Street
                    Englewood, Colorado  80112
                    Telephone:  (303) 493-2900
                    Facsimile:  (303) 493-4900
                    Attention:  David M. Bruining

                    with copies of any notices of Event of Default to:

                    Norman H. Beitner
                    Honigman Miller Schwartz and Cohn LLP
                    2290 First National Building
                    660 Woodward Avenue
                    Detroit, Michigan 48226
                    Telephone: (313) 465-7320
                    Facsimile: (313) 465-7321

Issuers:            ATLANTIC ASSET SECURITIZATION LLC
                    c/o Calyon New York Branch
                    1301 Avenue of the Americas
                    New York, New York  10019
                    Facsimile: (212) 459-3258
                    Attention: Conduit Securitization Group
                    With a copy to the Administrative Agent (except in the case
                    of notice from the Administrative Agent).

                    With a copy to the Administrative Agent (except in the case
                    of notice from the Administrative Agent).

                    JUPITER SECURITIZATION CORPORATION
                    c/o JPMorgan Chase Bank, National Association
                    Asset-Backed Finance Division
                    1 Bank One Plaza
                    Chicago, Illinois  60670
                    Facsimile:  (312) 732-1844

                    LA FAYETTE ASSET SECURITIZATION LLC
                    c/o Calyon New York Branch
                    1301 Avenue of the Americas
                    New York, New York  10019
                    Facsimile:  (212) 459-3258
                    Attention:  Conduit Securitization Group

                    With a copy to the Administrative Agent (except in the case
                    of notice from the Administrative Agent).

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Banks:              CALYON NEW YORK BRANCH
                    Calyon Building
                    1301 Avenue of the Americas
                    New York, New York 10019
                    Facsimile:  (212) 459-3258
                    Attention:  Structured Finance

                    LLOYDS TSB BANK PLC
                    1251 Avenue of the Americas
                    39th Floor
                    New York, New York 10020
                    Telephone No.: (212) 930-5000
                    Facsimile: (212) 930-5098
                    Attention: Michelle White

                    JPMORGAN CHASE BANK, NATIONAL
                    ASSOCIATION
                    c/o JPMorgan Chase Bank, National Association
                    Asset-Backed Finance Division
                    1 Bank One Plaza
                    Chicago, Illinois  60670
                    Telephone No.: (312) 732-2722
                    Facsimile:  (312) 732-1844

Administrative      CALYON NEW YORK BRANCH,
Agent:              Calyon Building
                    1301 Avenue of the Americas
                    New York, New York 10019
                    Telephone No.: (212) 261-7810
                    Telex No.: 62410
                    (Answerback: CRED A 62410 UW)
                    Facsimile: (212) 459-3258
                    Attention: Conduit Securitization Group

Managing Agents:    CALYON NEW YORK BRANCH,
                    Calyon Building
                    1301 Avenue of the Americas
                    New York, New York 10019
                    Telephone No.:  (212) 261-7810
                    Telex No.: 62410
                    (Answerback: CRED A 62410 UW)
                    Facsimile: (212) 459-3258
                    Attention: Conduit Securitization Group

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<PAGE>

                    JPMORGAN CHASE BANK, NATIONAL ASSOCIATION
                    c/o JPMorgan Chase Bank, National Association
                    Asset-Backed Finance Division
                    1 Bank One Plaza
                    Chicago, Illinois  60670
                    Facsimile: (312) 732-1844
                    Telephone No. (312) 732-1844

   Originator and   PULTE MORTGAGE LLC
   Servicer:        7475 South Joliet Street
                    Englewood, CO  80112
                    Telephone: (303) 493-2900
                    Facsimile: (303) 493-4900
                    Attention: David M. Bruining

or at such other addresses or to such officer's, individual's or department's
attention as any party may have furnished the other parties in writing. Any
communication so addressed and mailed shall be deemed to be given when so
mailed, except that notices and requests given pursuant to Section 3.3(e).
Borrowing Requests and communications related thereto shall not be effective
until actually received by the Collateral Agent, the Administrative Agent, the
Issuers or the Borrower, as the case may be; and any notice so sent by rapid
transmission shall be deemed to be given when receipt of such transmission is
acknowledged, and any communication so delivered in person shall be deemed to be
given when receipted for by, or actually received by, an authorized officer of
the Borrower, the Collateral Agent, or the Administrative Agent.

      13.2. Amendments, Etc.

            No amendment or waiver of any provision of this Second Restated Loan
Agreement or consent to any departure by the Borrower therefrom shall be
effective unless in a writing signed by the Majority Banks, the Administrative
Agent (as agent for the Issuers) and the Administrative Agent (and, in the case
of any amendment, also signed by the Borrower), and then such amendment, waiver
or consent shall be effective only in the specific instance and for the specific
purpose for which given. Notwithstanding the foregoing, unless an amendment,
waiver or consent shall be made in writing and signed by each of the Banks, the
Managing Agents, and the Administrative Agent, and each of the Rating Agencies
shall confirm that any amendment will not result in a downgrade or withdrawal of
the ratings assigned to any Commercial Paper Notes, no amendment, waiver or
consent shall do any of the following:

            (a) amend the definitions of Eligible Mortgage Loan, Collateral
Value, Advance Rate or Majority Banks or

            (b) amend, modify or waive any provision of this Second Restated
Loan Agreement in any way that would:

                  (i) reduce the amount of principal or interest that is payable
      on account of any Advance or delay any scheduled date for payment thereof
      or

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                  (ii) impair any rights expressly granted to an assignee or
      participant under this Second Restated Loan Agreement or

            (c) reduce the fees payable by the Borrower, the Managing Agents, to
the Administrative Agent or the Lenders or delay the dates on which such fees
are payable or

            (d) amend or waive the Event of Default set forth in Sections
8.1(f), (g) or (h) relating to the bankruptcy of the Performance Guarantor, the
Originator or the Borrower or

            (e) amend or waive the Event of Default set forth in Section 8.1(w)
relating to the maximum Default Ratio or

            (f) amend clause (a) of the definition of Drawdown Termination Date
or

            (g) amend this Section 13.2;

and provided, further, that no amendment, waiver or consent shall, unless in
writing and signed by the Servicer in addition to the other parties required
above to take such action, affect the rights or duties of the Servicer under
this Second Restated Loan Agreement. No failure on the part of the Lenders, the
Managing Agents, or the Administrative Agent to exercise, and no delay in
exercising, any right thereunder shall operate as a waiver thereof; nor shall
any single or partial exercise of any right hereunder preclude any other or
further exercise thereof or the exercise of any other right.

      13.3. Invalidity.

            In the event that any one or more of the provisions contained in the
Notes, this Second Restated Loan Agreement or any other Transaction Document
shall, for any reason, be held invalid, illegal or unenforceable in any respect,
such invalidity, illegality or unenforceability shall not affect any other
provision of such document.

      13.4. Restrictions on Informal Amendments.

            No course of dealing or waiver on the part of the Administrative
Agent, the Managing Agents, the Collateral Agent, any Lender or any Affected
Party, or any of their officers, employees, consultants or agents, or any
failure or delay by any such Person with respect to exercising any right, power
or privilege under the Notes, this Second Restated Loan Agreement or any other
Transaction Document shall operate as an amendment to express written terms of
the Notes, this Second Restated Loan Agreement or any other Transaction Document
or shall act as a waiver of any right, power or privilege of any such Person.

      13.5. Cumulative Rights.

            The rights, powers, privileges and remedies of each of the Lenders,
the Collateral Agent, the Managing Agents, and the Administrative Agent under
the Notes, this Second Restated Loan Agreement, and any other Transaction
Document shall be cumulative, and the exercise or partial exercise of any such
right, power, privilege or remedy shall not preclude the exercise of any other
right or remedy.

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      13.6. Construction; Governing Law.

            THIS SECOND RESTATED LOAN AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK (WITHOUT GIVING
EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF, OTHER THAN SECTIONS 5-1401
AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW WHICH SHALL APPLY HERETO).

      13.7. Interest.

            Any provisions herein, in the Notes, or in any other Transaction
Document, or any other document executed or delivered in connection herewith, or
in any other agreement or commitment, whether written or oral, expressed or
implied, to the contrary notwithstanding, the Lenders shall in no event be
entitled to receive or collect, nor shall or may amounts received hereunder be
credited, so that the Lenders shall be paid, as interest, a sum greater than the
maximum amount permitted by applicable law to be charged to the Person primarily
obligated to pay such Note at the time in question. If any construction of this
Second Restated Loan Agreement, any Note or any other Transaction Document, or
any and all other papers, agreements or commitments indicate a different right
given to a Lender to ask for, demand or receive any larger sum as interest, such
is a mistake in calculation or wording that this clause shall override and
control, it being the intention of the parties that this Second Restated Loan
Agreement, each Note, and all other Transaction Documents or other documents
executed or delivered in connection herewith shall in all things comply with
applicable law and proper adjustments shall automatically be made accordingly.
In the event that any of the Lenders shall ever receive, collect or apply as
interest, any sum in excess of the maximum nonusurious rate permitted by
applicable law (the "Maximum Rate"), if any, such excess amount shall be applied
to the reduction of the unpaid principal balance of the Note held by such
Lender, and if such Note is paid in full, any remaining excess shall be paid to
the Borrower. In determining whether or not the interest paid or payable, under
any specific contingency, exceeds the Maximum Rate, if any, the Borrower and
each of the Lenders shall, to the maximum extent permitted under applicable law:
(a) characterize any nonprincipal payment as an expense or fee rather than as
interest, (b) exclude voluntary prepayments and the effects thereof, and (c)
"spread" the total amount of interest throughout the entire term of the
respective Note; provided that if any Note is paid and performed in full prior
to the end of the full contemplated term hereof, and if the interest received
for the actual period of existence thereof exceeds the Maximum Rate, if any, the
respective Lender shall refund to the Borrower the amount of such excess, or
credit the amount of such excess against the aggregate unpaid principal balance
of all Advances made by such Lender hereunder at the time in question.

      13.8. Right of Offset.

            The Borrower hereby grants to each of the Lenders and the
Administrative Agent and to any assignee or participant a right of offset, to
secure the repayment of the Obligations, upon any and all monies, securities or
other Property of the Borrower, and the proceeds therefrom now or hereafter held
or received by or in transit to such Person, from or for the account of the
Borrower, whether for safekeeping, custody, pledge, transmission, collection or
otherwise, and also upon any and all deposits (general or special, time or
demand, provisional or

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final) and credits of the Borrower, and any and all claims of the Borrower
against such Person at any time existing. Upon the occurrence of any Event of
Default, such Person is hereby authorized at any time and from time to time,
without notice to the Borrower, to offset, appropriate, and apply any and all
items hereinabove referred to against the Obligations. Notwithstanding anything
in this Section 13.8 or elsewhere in this Second Restated Loan Agreement to the
contrary, the Administrative Agent and the Lenders and any assignee or
participant shall not have any right to offset, appropriate or apply any
accounts of the Borrower that consist of escrowed funds (except and to the
extent of any beneficial interest of the Borrower in such escrowed funds) that
have been so identified by the Borrower in writing at the time of deposit
thereof.

      13.9. Successors and Assigns.

            (a) This Second Restated Loan Agreement and the Lenders' rights and
obligations herein (including ownership of each Advance) shall be assignable by
the Lenders and their successors and assigns to any Eligible Assignee. Each
assignor of an Advance or any interest therein shall notify the Administrative
Agent and the Borrower of any such assignment.

            (b) Each Bank may assign to any Eligible Assignee or to any other
Bank all or a portion of its rights and obligations under this Second Restated
Loan Agreement (including, without limitation, all or a portion of its Bank
Commitment and any Advances or interests therein owned by it), provided however,
that:

                  (i) each such assignment shall be of a constant, and not a
      varying, percentage of all rights and obligations under this Second
      Restated Loan Agreement,

                  (ii) the amount being assigned pursuant to each such
      assignment (determined as of the date of the Assignment and Acceptance
      Agreement with respect to such assignment) shall in no event be less than
      the lesser of (x) $20,000,000 and (y) all of the assigning Bank's Bank
      Commitment,

                  (iii) the parties to each such assignment shall execute and
      deliver to the Administrative Agent, for its acceptance and recording in
      the Register, an Assignment and Acceptance Agreement, together with a
      processing and recordation fee of $2,500, and

                  (iv) concurrently with such assignment, such assignor Bank
      shall assign to such assignee Bank an equal percentage of its rights and
      obligations under the related Liquidity Agreement.

            Upon such execution, delivery, acceptance and recording, from and
after the effective date specified in such Assignment and Acceptance Agreement,
(x) the assignee thereunder shall be a party to this Second Restated Loan
Agreement and, to the extent that rights and obligations hereunder or under this
Second Restated Loan Agreement have been assigned to it pursuant to such
Assignment and Acceptance Agreement, have the rights and obligations of a Bank
hereunder and thereunder and (y) the assigning Bank shall, to the extent that
rights and obligations hereunder have been assigned by it pursuant to such
Assignment and Acceptance Agreement, relinquish such rights and be released from
such obligations under this Second

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Restated Loan Agreement (and, in the case of an Assignment and Acceptance
Agreement covering all or the remaining portion of an assigning Bank's rights
and obligations under this Second Restated Loan Agreement, such Bank shall cease
to be a party thereto).

            (c) The Administrative Agent shall maintain at its address referred
to in Section 13.1 a copy of each Assignment and Acceptance Agreement delivered
to and accepted by it and a register for the recordation of the names and
addresses of the Banks and the Bank Commitment of, and aggregate outstanding
principal of Advances or interests therein owned by, each Bank from time to time
(the "Register"). The entries in the Register shall be conclusive and binding
for all purposes, absent manifest error, and the Borrower, the Servicer, the
Managing Agents, the Administrative Agent and the Banks may treat each person
whose name is recorded in the Register as a Bank under this Second Restated Loan
Agreement for all purposes of this Second Restated Loan Agreement. The Register
shall be available for inspection by the Borrower, the Servicer, the Managing
Agents, the Administrative Agent or any Bank at any time and from time to time
upon prior notice.

            (d) Each Bank may sell participations, to one or more banks or other
entities that are Eligible Assignees, in or to all or a portion of its rights
and obligations under this Second Restated Loan Agreement (including, without
limitation, all or a portion of its Bank Commitment and the Advances or
interests therein owned by it); provided, however, that:

                  (i) such Bank's obligations under this Second Restated Loan
      Agreement (including, without limitation, its Bank Commitment to the
      Borrower thereunder) shall remain unchanged,

                  (ii) such Bank shall remain solely responsible to the other
      parties to this Second Restated Loan Agreement for the performance of such
      obligations, and

                  (iii) concurrently with such participation, the selling Bank
      shall sell to such bank or other entity a participation in an equal
      percentage of its rights and obligations under the related Liquidity
      Agreement.

The Administrative Agent, the other Banks, the Managing Agents, the Servicer and
the Borrower shall have the right to continue to deal solely and directly with
such Bank in connection with such Bank's rights and obligations under this
Second Restated Loan Agreement.

            (e) The Borrower may not assign its rights or obligations hereunder
or any interest herein without the prior written consent of the Administrative
Agent, each Managing Agent, and each Lender.

            (f) The parties hereto acknowledge that Atlantic has granted to the
Atlantic Program Agent for the benefit of holders of its Commercial Paper Notes,
its liquidity banks, and certain other creditors of Atlantic, a security
interest in its right, title and interest in and to the Advances, the
Transaction Documents and the Collateral. Each reference herein or in any of the
other Transaction Documents to the Liens in the Collateral granted to Atlantic
under the Transaction Documents shall be deemed to include a reference to such
security interest of the Atlantic Program Agent.

                                       94
<PAGE>

            (g) The parties hereto acknowledge that La Fayette has granted to
the La Fayette Program Agent for the benefit of holders of its Commercial Paper
Notes, its liquidity banks, and certain other creditors of La Fayette, a
security interest in its right, title and interest in and to the Advances, the
Transaction Documents and the Collateral. Each reference herein or in any of the
other Transaction Documents to the Liens in the Collateral granted to La Fayette
under the Transaction Documents shall be deemed to include a reference to such
security interest of the La Fayette Program Agent.

      13.10. Survival of Termination.

            The provisions of Article X and Sections 2.12, 11.4, 13.14, 13.15,
13.20 and 13.21 shall survive any termination of this Second Restated Loan
Agreement.

      13.11. Exhibits.

            The exhibits attached to this Second Restated Loan Agreement are
incorporated herein and shall be considered a part of this Second Restated Loan
Agreement for the purposes stated herein, except that in the event of any
conflict between any of the provisions of such exhibits and the provisions of
this Second Restated Loan Agreement, the provisions of this Second Restated Loan
Agreement shall prevail.

      13.12. Titles of Articles, Sections and Subsections.

            All titles or headings to articles, sections, subsections or other
divisions of this Second Restated Loan Agreement or the exhibits hereto are only
for the convenience of the parties and shall not be construed to have any effect
or meaning with respect to the other content of such articles, sections,
subsections or other divisions, such other content being controlling as to the
agreement between the parties hereto.

      13.13. Counterparts.

            This Second Restated Loan Agreement may be executed in two or more
counterparts, and it shall not be necessary that the signatures of each of the
parties hereto be contained on any one counterpart hereof; each counterpart
shall be deemed an original, but all counterparts together shall constitute one
and the same instrument.

      13.14. No Proceedings.

            The Borrower, the Servicer, the Administrative Agent and each Bank
hereby agrees that it will not institute against the Issuers, or join any other
Person in instituting against the Issuers, any bankruptcy, reorganization,
arrangement, insolvency, or liquidation proceeding, or other proceeding under
any federal or state bankruptcy or similar law so long as any Commercial Paper
Notes issued by the either of the Issuers shall be outstanding or there shall
not have elapsed one year plus one day since the last day on which any such
Commercial Paper Notes shall have been outstanding. The foregoing shall not
limit the rights of the Borrower, the Servicer, any Managing Agent, the
Administrative Agent or any Bank to file any claim in or otherwise take any
action with respect to any insolvency proceeding that was instituted by any
other Person.

                                       95
<PAGE>

      13.15. Confidentiality.

            The Borrower and the Servicer each hereby agrees that it will
maintain and cause its respective employees to maintain the confidentiality of
this Second Restated Loan Agreement, and the other Transaction Documents (and
all drafts thereof), and each Lender, each Managing Agent, and the
Administrative Agent agrees that it will maintain and cause its respective
employees to maintain the confidentiality of the Collateral and all other
non-public information with respect to the Borrower and the Servicer, and their
respective businesses obtained by such party in connection with the structuring,
negotiating and execution of the transactions contemplated herein, in each case
except (a) as may be required or appropriate in communications with its
respective independent public accountants, legal advisors, or with independent
financial rating agencies, (b) as may be required or appropriate in any report,
statement or testimony submitted to any municipal, state or Federal regulatory
body having or claiming to have jurisdiction over it, (c) as may be required or
appropriate in response to any summons or subpoena or in connection with any
litigation, (d) as may be required by or in order to comply with any law, order,
regulation or ruling, (e) as may be required or appropriate in connection with
disclosures to any and all persons, without limitation of any kind, of
information relating to the tax treatment and tax structure of the transaction
and all materials of any kind (including opinions and other tax analyses) that
are provided to the Borrower or the Originator relating to such tax treatment
and tax structure, (f) in the case of any Bank, any Issuer, each Managing Agent,
or the Administrative Agent, to any Liquidity Bank or provider of credit support
to either of the Issuers, either Managing Agent, any dealer or placement
Administrative Agent for either of the Issuers' commercial paper, and any actual
or potential assignee of, or participant in, any of the rights or obligations of
such Lender, or (g) in the case of any Issuer, any Managing Agent or the
Administrative Agent, to any Person whom any dealer or placement Administrative
Agent for either of the Issuers shall have identified as an actual or potential
investor in Commercial Paper Notes; provided that any proposed recipient under
clause (f) or (g) shall, as a condition to the receipt of any such information,
agree to maintain the confidentiality thereof.

      13.16. Recourse Against Directors, Managers, Officers, Etc.

            The Obligations are solely the corporate obligations of the
Borrower. No recourse for the Obligations shall be had hereunder against any
director, manager, officer, employee (in its capacity as such, and not as
Servicer), trustee, Administrative Agent or any Person owning, directly or
indirectly, any legal or beneficial interest in the Borrower (in its capacity as
such owner, and not as Servicer, Performance Guarantor or otherwise as a party
to any Transaction Document). This Section 13.16 shall not, however, (a)
constitute a waiver, release or impairment of the Obligations, or (b) affect the
validity or enforceability of the Restated Performance Guaranty or any other
Transaction Document to which the Originator, the Servicer, the Performance
Guarantor or any of their Affiliates may be a party.

      13.17. Waiver of Jury Trial.

            EACH OF THE PARTIES HERETO HEREBY EXPRESSLY WAIVES ANY RIGHT TO A
TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER
THIS SECOND RESTATED LOAN AGREEMENT, THE

                                       96
<PAGE>

NOTES, ANY OTHER TRANSACTION DOCUMENT OR UNDER ANY AMENDMENT, INSTRUMENT OR
DOCUMENT DELIVERED OR THAT MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH
OR ARISING FROM ANY BANKING OR OTHER RELATIONSHIP EXISTING IN CONNECTION WITH
THIS SECOND RESTATED LOAN AGREEMENT, THE NOTES OR ANY OTHER TRANSACTION DOCUMENT
AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND
NOT BEFORE A JURY.

      13.18. Consent to Jurisdiction; Waiver of Immunities.

            EACH PARTY HERETO HEREBY ACKNOWLEDGES AND AGREES THAT:

            (a) IT IRREVOCABLY (i) SUBMITS TO THE JURISDICTION, FIRST, OF ANY
UNITED STATES FEDERAL COURT, AND, SECOND, IF FEDERAL JURISDICTION IS NOT
AVAILABLE, OF ANY NEW YORK STATE COURT, IN EITHER CASE SITTING IN NEW YORK CITY,
IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS SECOND RESTATED
LOAN AGREEMENT, (ii) AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR
PROCEEDING MAY BE HEARD AND DETERMINED ONLY IN SUCH NEW YORK STATE OR FEDERAL
COURT AND NOT IN ANY OTHER COURT, AND (iii) WAIVES, TO THE FULLEST EXTENT IT MAY
EFFECTIVELY DO SO, THE DEFENSE OF AN INCONVENIENT FORUM TO MAINTENANCE OF SUCH
ACTION OR PROCEEDING.

            (b) TO THE EXTENT THAT IT HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY
FROM THE JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH
SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID TO EXECUTION,
EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, IT HEREBY
IRREVOCABLY WAIVES SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER OR IN
CONNECTION WITH THIS SECOND RESTATED LOAN AGREEMENT.

      13.19. Costs, Expenses and Taxes.

            In addition to its obligations under Articles II and X, the Borrower
agrees to pay on demand:

            (a) (i) all out-of-pocket costs and expenses incurred by the
Administrative Agent, the Managing Agents and the Lenders, in connection with
the negotiation, preparation, execution and delivery or the administration
(including periodic auditing) of this Second Restated Loan Agreement, the Notes,
the other Transaction Documents, and, to the extent related to this Second
Restated Loan Agreement, the Program Documents (including any amendments or
modifications of or supplements to the Program Documents entered into in
connection herewith), and any amendments, consents or waivers executed in
connection therewith, including, without limitation, (A) the fees and expenses
of counsel to any of such Persons

                                       97
<PAGE>

incurred in connection with any of the foregoing or in advising such Persons as
to their respective rights and remedies under any of the Transaction Documents
or (to the extent related to this Second Restated Loan Agreement) the Program
Documents, and (B) all out-of-pocket expenses (including fees and expenses of
independent accountants) incurred in connection with any review of the books and
records of the Borrower or the Servicer either prior to the execution and
delivery hereof or pursuant to Section 6.8, and (ii) all costs and expenses
incurred by the Administrative Agent, the Managing Agents and the Lenders, in
connection with the enforcement of, or any actual or claimed breach of, this
Second Restated Loan Agreement, the Notes, the other Transaction Documents and,
to the extent related to this Second Restated Loan Agreement, the Program
Documents (including any amendments or modifications of or supplements to the
Program Documents entered into in connection herewith), including, without
limitation, the fees and expenses of counsel to any of such Persons incurred in
connection therewith including without limitation, with respect to each Issuer,
the cost of rating the Commercial Paper Notes by the Rating Agencies and the
reasonable fees and out-of-pocket expenses of counsel to each Issuer; and

            (b) all stamp and other taxes and fees payable or determined to be
payable in connection with the execution, delivery, filing and recording of this
Second Restated Loan Agreement, the Notes, the other Transaction Documents or
(to the extent related to this Second Restated Loan Agreement) the Program
Documents, and agrees to indemnify each Indemnified Party against any
liabilities with respect to or resulting from any delay in paying or omission to
pay such taxes and fees.

      13.20. Entire Second Restated Loan Agreement.

            THE NOTES, THIS SECOND RESTATED LOAN AGREEMENT, AND THE OTHER
TRANSACTION DOCUMENTS EXECUTED AND DELIVERED AS OF EVEN DATE HEREWITH REPRESENT
THE FINAL AGREEMENT BETWEEN THE PARTIES HERETO AND THERETO ANY MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS
OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

      13.21. Excess Funds.

            An Issuer shall not be obligated to pay any amount pursuant to this
Second Restated Loan Agreement unless such Issuer has excess cash flow from
operations or has received funds with respect to such obligation which may be
used to make such payment and which funds or excess cash flow are not required
to repay when due its Commercial Paper Note or other short term funding backing
its Commercial Paper Notes. Any amount which such Issuer does not pay pursuant
to the operation of the preceding sentence shall not constitute a claim, as
defined in Section 101(5) of the United States Bankruptcy Code, against such
Issuer for any such insufficiency unless and until such Issuer does have excess
cash flow or excess funds.

                                      * * *

                                       98
<PAGE>

            IN WITNESS WHEREOF, the parties hereto have caused this Second
Restated Loan Agreement to be duly executed as of the date first above written.

               PULTE FUNDING, INC.,
               as the Borrower

               By:           ___________________________________________
               Name:         ___________________________________________
               Title:        ___________________________________________

               ATLANTIC ASSET SECURITIZATION LLC,
               as an Issuer

               By:      Calyon New York Branch, as Attorney-in-
                        Fact

               By:           ___________________________________________
               Name:         ___________________________________________
               Title:        ___________________________________________

               By:           ___________________________________________
               Name:         ___________________________________________
               Title:        ___________________________________________

               JUPITER SECURITIZATION CORPORATION,
               as an Issuer

               By:           ___________________________________________
               Name:         ___________________________________________
               Title:        ___________________________________________

               LA FAYETTE ASSET SECURITIZATION LLC,
               as an Issuer

               By:      Calyon New York Branch, as Attorney-in-
                        Fact

               By:           ___________________________________________
               Name:         ___________________________________________
               Title:        ___________________________________________

               By:           ___________________________________________
               Name:         ___________________________________________
               Title:        ___________________________________________

                                       99
<PAGE>

               CALYON NEW YORK BRANCH,
               as a Bank, the Administrative Agent and a Managing Agent

               By:           ___________________________________________
               Name:         ___________________________________________
               Title:        ___________________________________________

               By:           ___________________________________________
               Name:         ___________________________________________
               Title:        ___________________________________________

               JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,
               as a Bank and a Managing Agent

               By:           ___________________________________________
               Name:         ___________________________________________
               Title:        ___________________________________________

               LLOYDS TSB BANK PLC,
               as a Bank

               By:           ___________________________________________
               Name:         ___________________________________________
               Title:        ___________________________________________

               By:           ___________________________________________
               Name:         ___________________________________________
               Title:        ___________________________________________

               PULTE MORTGAGE LLC,
               as the Servicer

               By:           ___________________________________________
               Name:         ___________________________________________
               Title:        ___________________________________________

                                      100<PAGE>

                                                                  EXHIBIT 10(aa)

                     SECOND AMENDED AND RESTATED ADDENDUM TO

                           MASTER REPURCHASE AGREEMENT

                           Dated as of August 19, 2005

                                     Between

                               PULTE MORTGAGE LLC

                                  as a Seller,

                                       and

                               PULTE FUNDING, INC.

                                    as Buyer

<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                         Page
                                                                         ----
<S>                                                                      <C>
ARTICLE I DEFINITIONS...................................................   5
  Section 1.01.  Certain Defined Terms..................................   5
  Section 1.02.  Other Terms............................................  23
ARTICLE II AMOUNTS AND TERMS OF PURCHASES...............................  24
  Section 2.01.  Facility...............................................  24
  Section 2.02.  Making Purchases.......................................  24
  Section 2.03.  Margin Maintenance.....................................  25
  Section 2.04.  Collections............................................  26
  Section 2.05.  Repurchase or Substitution Procedures..................  27
  Section 2.06.  Payments and Computations, Etc.........................  28
  Section 2.07.  Intent of the Seller and the Buyer.....................  28
  Section 2.08.  No Segregation of Assets...............................  28
  Section 2.09.  Substitution...........................................  29
ARTICLE III CONDITIONS OF PURCHASES...................................... 30
  Section 3.01.  C  onditions Precedent to Any Purchase from the Seller.. 30
  Section 3.02.  C  onditions Precedent to All Purchases................. 31
ARTICLE IV REPRESENTATIONS AND WARRANTIES................................ 32
  Section 4.01.  Representations of the Seller........................... 32
ARTICLE V COVENANTS...................................................... 37
  Section 5.01.  ........................................................ 37
  Section 5.02.  Financial Statements and Reports........................ 37
  Section 5.03.  Taxes and Other Liens................................... 38
  Section 5.04.  Maintenance............................................. 38
  Section 5.05.  Further Assurances...................................... 38
  Section 5.06.  Insurance............................................... 39
  Section 5.07.  Accounts and Records.................................... 40
  Section 5.08.  Right of Inspection..................................... 40
  Section 5.09.  Notice of Certain Events................................ 40
  Section 5.10.  Performance of Certain Obligations...................... 40
  Section 5.11.  Notice of Default....................................... 41
  Section 5.12.  Compliance with Laws and Material Agreements............ 41
  Section 5.13.  Deposits of Proceeds.................................... 41
  Section 5.14.  Closing Instructions.................................... 41
  Section 5.15.  Special Affirmative Covenants Concerning Transferred
                 Mortgage Assets......................................... 41
  Section 5.16.  Limitations on Mergers and Dissolutions................. 41
  Section 5.17.  Fiscal Year............................................. 42
  Section 5.18.  Actions with Respect to Transferred Mortgage Assets.
                 The Seller shall not:................................... 42
  Section 5.19.  Net Worth............................................... 42
  Section 5.20.  Employee Benefit Plans.................................. 42
  Section 5.21.  Change of Principal Office.............................. 42
  Section 5.22.  Maximum Leverage........................................ 42
</TABLE>

                                       2
<PAGE>

<TABLE>
<CAPTION>
<S>                                                                                 <C>
         Section 5.23.       Delivery of Special Mortgage Loans................     42
         Section 5.24.       Change in Business................................     43
         Section 5.25.       Separate Conduct of Business......................     43
         Section 5.26.       Sales, Liens, Etc.................................     43
         Section 5.27.       Operations and Properties.........................     43
         Section 5.28.       Performance Guarantor Credit Rating...............     44
         Section 5.29.       Take-Out Commitments..............................     44
         Section 5.30.       Environmental Compliance..........................     44
ARTICLE VI COVENANTS...........................................................     44
         Section 6.01.       Servicing.........................................     44
         Section 6.02.       Correction of Mortgage Notes......................     44
ARTICLE VII EVENTS OF DEFAULT..................................................     45
         Section 7.01.       Events of Default.................................     45
         Section 7.02.       Remedies..........................................     47
ARTICLE VIII INDEMNIFICATION...................................................     50
         Section 8.01.       Indemnities by the Seller.........................     50
ARTICLE IX MISCELLANEOUS.......................................................     51
         Section 9.01.       Amendments, Etc...................................     51
         Section 9.02.       Notices, Etc......................................     52
         Section 9.03.       Binding Effect; Assignability.....................     52
         Section 9.04.       Costs, Expenses and Taxes, Expenses and Taxes.....     52
         Section 9.05.       No Proceedings....................................     53
         Section 9.06.       GOVERNING LAW.....................................     53
         Section 9.07.       Third Party Beneficiary...........................     53
         Section 9.08.       Execution in Counterparts.........................     54
         Section 9.09.       Repurchase Transactions...........................     54
</TABLE>

                                       3
<PAGE>

                                    EXHIBITS
EXHIBIT A                    Form of Deferred Purchase Price Note
EXHIBIT B                    Form of Bill of Sale

                                    SCHEDULES
SCHEDULE I                   Trade Names
SCHEDULE II                  Approved Investors

                                       4
<PAGE>

            SECOND AMENDED AND RESTATED ADDENDUM TO MASTER REPURCHASE
                                   AGREEMENT

      This Second Amended and Restated Addendum to Master Repurchase Agreement,
dated as of August 19, 2005, (this "Agreement"), is made by and among PULTE
MORTGAGE LLC, a Delaware limited liability company (hereinafter, together with
its successors and assigns, the "Seller" or "Pulte Mortgage") and PULTE FUNDING,
INC., a Michigan corporation (hereinafter, together with its successors and
assigns, the "Buyer").

                                    RECITALS

      (1)Certain terms which are capitalized and used throughout this Agreement
(in addition to those defined above) are defined in Article I of this Agreement
or, if not defined therein, in the Master Repurchase Agreement.

      (2)The Seller and Buyer have entered into that certain Master Repurchase
Agreement, dated as of December 22, 2000 (the "Master Repurchase Agreement").

      (3)The Seller and Buyer have entered into that certain Addendum to Master
Repurchase Agreement, dated as of December 22, 2000 (the "Original Addendum").

      (4)The Buyer and Seller wish to amend and restate a second time the
Original Addendum in order to supplement and amend the Master Repurchase
Agreement to enter Transactions involving Mortgage Assets (as defined below).

      (4)This Agreement is in lieu of Annexes I-VII referred to in the Master
Repurchase Agreement.

      NOW, THEREFORE, the parties agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

      Section 1.01. Certain Defined Terms.

      As used in this Agreement, the following terms shall have the following
meanings (such meanings to be equally applicable to both the singular and plural
forms of the terms defined):

      "Adjusted Liabilities" means, with respect to the Seller, without
duplication, and at any time, the sum of (a) all amounts that should be
reflected as liabilities on its balance sheet, plus (b) its total direct and
indirect guaranty and other obligations in respect of borrowed money
Indebtedness of others (calculated at the maximum amount of those obligations
that is stated in the relevant documents or, if not so stated, that may
reasonably be anticipated in good faith) plus (c) to the extent not already
included in clause (a) above, its total funding obligations to originate or
acquire Mortgage Loans that, in either case, are closed but not funded, minus
(d) its total trade payables and accrued expenses incurred in the ordinary
course of its business but unrelated to

                                       5
<PAGE>

originating or acquiring any specific Mortgage Loan (including, without
limitation, trade payables and accrued expenses owed to its Affiliates but
excluding advances by its Affiliates and interest on those advances), minus (e)
such Seller's total deferred-federal-income tax liabilities.

      "Adjusted Net Worth" means, for the Seller, without duplication, and at
any time, the sum of (a) its members' equity reflected on its balance sheet,
plus (b) the remainder of (A) the income that the Seller has deferred, for
accounting purposes, pending the sale of Mortgage Loans in accordance with
Statement of Financial Accounting Standards Number 91 and Number 122, as each is
published by the Financial Accounting Standards Board as of the date of this
Agreement, minus (B) reasonable reserves for the federal income tax liabilities
related to that deferred income.

      "Administrative Agent" means Calyon New York, in its capacity as
administrative agent for the Lenders, or any successor administrative agent.

      "Advance" means with respect to any Lender any amount disbursed by such
Lender to the Borrower pursuant to Section 2.1 of the Second Restated Loan
Agreement (or any conversion or continuation thereof).

      "Advance Rate" means (i) with respect to a Conforming Loan or a Jumbo Loan
(other than a Super Jumbo Loan), ninety-eight percent (98%), (ii) with respect
to an Alt-A Loan, ninety-seven percent (97%), or, if a FICO Score Trigger Event
has occurred and is continuing, as reported to the Collateral Agent by the
Administrative Agent, then zero, (iii) with respect to a Second Lien Loan or a
Super Jumbo Loan, ninety-five percent (95%) and (iv) with respect to a Subprime
Loan, ninety percent (90%).

      "Adverse Claim" means a lien, security interest, or other charge or
encumbrance, or any other type of preferential arrangement.

      "Affiliate" of any Person means (a) any other Person that, directly or
indirectly, controls, is controlled by, or is under common control with, such
Person, or (b) any other Person who is a director, officer or employee (i) of
such Person, or (ii) of any Person described in the preceding clause (a). For
purposes of this definition, the term "control" (and the terms "controlled by"
and "under common control with"), as used with respect to any Person, shall mean
the possession or ownership, directly or indirectly, of the power either (x) to
direct or cause the direction of the management and policies of such Person,
whether by contract or otherwise, or (y) vote 10% or more of the securities
having ordinary power in the election of directors or managers of such Person.

      "Agreement" means this Agreement, as amended, modified or supplemented
from time to time.

      "Alt-A Loan" means a Mortgage Loan (other than a Conforming Loan or a
Jumbo Loan) that (1) does not conform to the conventional underwriting standards
of Fannie Mae, Freddie Mac or Ginnie Mae but that is underwritten to Approved
Investor guidelines (other than Fannie Mae, Freddie Mac or Ginnie Mae), within
guidelines generally acceptable to industry norms for "Alt-A" loans, (2) has a
demonstrated secondary market and are readily securitizable, and (3) matches all
applicable requirements for purchase under the requirements of a Take-Out

                                       6
<PAGE>

Commitment specifically issued for the purchase of such Mortgage Loan, and (4)
is a First Lien Mortgage Loan.

      "Alternate Base Rate" means:

      (i) for the Calyon New York Group, on any date, a fluctuating rate of
interest per annum equal to the higher of:

            (a) the rate of interest most recently announced by Calyon New York
            as its base rate; and

            (b) the Federal Funds Rate (as defined below) most recently
            determined by the Administrative Agent plus 1.0% per annum; and

      (ii) for the JPMorgan Group, on any date, a fluctuating rate of interest
per annum equal to the higher of:

            (a) a rate per annum equal to the prime rate of interest from time
            to time by JPMorgan or its parent (which is not necessarily the
            lowest rate charged to any customer), changing when and as said
            prime rate changes; and

            (b) the Federal Funds Rate (as defined below) most recently
            determined by JPMorgan plus 1.0% per annum.

      For purposes of this definition, "Federal Funds Rate" means, for any
period, a fluctuating interest rate per annum equal (for each day during such
period) to (i) the weighted average of the rates on overnight federal funds
transactions with members of the Federal Reserve System arranged by federal
funds brokers, as published for such day (or, if such day is not a Business Day,
for the immediately preceding Business Day) by the Federal Reserve Bank of New
York; or (ii) if such rate is not so published for any day that is a Business
Day, the average of the quotations for such day on such transactions received by
the Administrative Agent, from three federal funds brokers of recognized
standing selected by it. The Alternate Base Rate is not necessarily intended to
be the lowest rate of interest determined by Calyon New York in connection with
extensions of credit.

      "Approved Investor" means:

            (a) Fannie Mae, Freddie Mac or Ginnie Mae, or

            (b) any Person with short-term ratings of at least A-1, P-1 and F1
      from S&P, Moody's and Fitch, respectively, or long-term unsecured debt
      ratings (or in the case of a bank without such ratings that is the
      principal subsidiary of a bank holding company, the rating of the bank
      holding company) of at least AA, Aa2 and AA from S&P, Moody's, and Fitch
      respectively, or

            (c) all other Persons as may be approved by the Managing Agents,
      which approvals may be subject to certain concentration limits but may not
      be unreasonably withheld or delayed;

                                       7
<PAGE>

      provided that (i) if an Approved Investor has a short-term rating or a
      long-term unsecured debt rating at the time such Person first becomes an
      "Approved Investor" and such Person's short-term ratings or long-term
      unsecured debt ratings are subsequently downgraded or withdrawn, such
      Person shall cease to be an "Approved Investor"; provided, further, that
      with respect to any Take-Out Commitments issued by such Person prior to
      the date of such downgrade or withdrawal, such Person shall cease to be an
      "Approved Investor" 60 days following such downgrade or withdrawal; and
      (ii) if an Approved Investor does not have a short-term rating or a
      long-term unsecured debt rating, such Person shall cease to be an
      "Approved Investor" upon prior written notice from either Managing Agent
      if such Managing Agent has good faith concerns about the future
      performance of such Person; provided, further, that with respect to any
      Take-Out Commitments issued by such Person prior to such notice, such
      Person shall cease to be an "Approved Investor" 60 days following such
      notice.

      As of the date of this Agreement, Schedule II hereto sets forth the
Approved Investors pursuant to the preceding clauses (b) and (c) (and any
applicable concentration limits). Schedule II shall be updated from time to time
as Approved Investors are added or deleted or concentration limits are changed
pursuant to the preceding clauses (b) and (c).

      "Assignment and Acceptance" has the meaning set forth in the Second
Restated Loan Agreement.

      "Atlantic" means Atlantic Asset Securitization Corp. and its successors
and assigns.

      "Bank" means each of Calyon New York, JPMorgan, and Lloyds and each
respective Eligible Assignee (as defined in the Second Restated Loan Agreement)
that shall become a party to the Second Restated Loan Agreement pursuant to an
Assignment and Acceptance.

      "Business Day" means a day on which (i) commercial banks in New York City,
New York, Chicago, Illinois, and Denver, Colorado are not authorized or required
to be closed and (ii) commercial banks in the State in which the Collateral
Agent has its principal office are not authorized or required to be closed, and
(b) if this definition of "Business Day" is utilized in connection with a
Eurodollar Advance, a day on which dealings in United States dollars are carried
out in the London interbank market.

      "Calyon New York" means Calyon New York Branch and its successors and
assigns.

      "Calyon New York Group" means Atlantic, La Fayette, Calyon New York, and
each other Group Bank of Atlantic and La Fayette.

      "Code" means the Internal Revenue Code of 1986, as amended from time to
time.

      "Collateral Agent" means LaSalle Bank National Association, and its
successors and assigns.

                                       8
<PAGE>

      "Collateral Value" means

            (A) with respect to each Eligible Mortgage Loan and at all times, an
      amount equal to the product of the Advance Rate for such Eligible Mortgage
      Loan multiplied by the least of:

                (1) the lesser of the original principal amount of such Eligible
      Mortgage Loan or the acquisition price paid by Pulte Mortgage on the
      closing and funding of such Eligible Mortgage Loan;

                (2) for each Eligible Mortgage Loan, a ratable amount determined
      by multiplying (a) the weighted average purchase price (expressed as a
      percentage of par) that Approved Investors are obligated to pay, pursuant
      to Take-Out Commitments, for all Eligible Mortgage Loans, as shown on the
      most recent Hedge Report, times (b) the outstanding principal amount of
      such Eligible Mortgage Loan; and

                (3) while a Default or Event of Default is continuing, or upon
      request of either of the Managing Agents at any other time, the Market
      Value of such Eligible Mortgage Loan; and

            (B) with respect to the Collection Account, the balance of collected
      funds therein which is not subject to any Lien in favor of any Person
      other than the Lien in favor of the Administrative Agent for the benefit
      of the holders of the Obligations;

            provided, however, that

            (a) at any time, the portion of total Collateral Value that may be
      attributable to Jumbo Loans shall not exceed twenty percent (20%) of the
      Maximum Facility Amount;

            (b) at any time, the portion of total Collateral Value that may be
      attributable to Super Jumbo Loans shall not exceed ten percent (10%) of
      the Maximum Facility Amount, which percentage is a sublimit of clause (a)
      representing 50% of the 20% set forth in clause (a) above;

            (c) at any time, the portion of total Collateral Value that may be
      attributable to Alt-A Loans shall not exceed fifty percent (50%) of the
      Maximum Facility Amount; provided that (i) if an Obligor on any Alt-A Loan
      shall have a FICO Score of less than 650, or (ii) if an Alt-A Loan shall
      have a Loan-to-Value Ratio of more than 95% or a Combined Loan-to-Value
      Ratio of more than 100%, such Mortgage Loan shall have a Collateral Value
      of zero;

            (d) at any time, the portion of total Collateral Value that may be
      attributable to Subprime Loans shall not exceed five (5%) of the Maximum
      Facility Amount; provided that (i) if an Obligor on any Subprime Loan
      shall have a FICO Score of less than 600, or (ii) if a Subprime Loan shall
      have a Loan-to-Value Ratio of more than 90%, such Mortgage Loan shall have
      a Collateral Value of zero;

                                       9
<PAGE>

            (e) any Mortgage Loan with an original principal balance in excess
      of $1,000,000 or more and a Loan-to-Value Ratio of 75% or more shall have
      a Collateral Value of zero;

            (f) at any time, the portion of total Collateral Value that may be
      attributable to Mortgage Loans for which the Mortgage Notes have been
      withdrawn for correction pursuant to Section 3.5 of the Collateral Agency
      Agreement shall not exceed five percent (5%) of the Maximum Facility
      Amount, as determined in accordance with said Section 3.5 of the
      Collateral Agency Agreement;

            (g) at any time, the portion of the total Collateral Value that may
      be attributable to any single Approved Investor listed on Schedule II
      pursuant to one or more Take-Out Commitments shall not exceed the
      concentration limit for such Approved Investor as set forth on Schedule II
      (as the same may be updated from time to time);

            (h) at any time, the portion of total Collateral Value that may be
      attributable to Mortgage Loans that have been Eligible Mortgage Loans (A)
      for more than 120 days shall not exceed ten percent (10%) of the Maximum
      Facility Amount or (B) for more than 180 days, shall be zero;

            (i) a Mortgage Loan that ceases to be an Eligible Mortgage Loan
      shall have a Collateral Value of zero;

            (j) at any time, (A) except the first five and last five Business
      Days of any month, the portion of total Collateral Value that may be
      attributable to Special Mortgage Loans with respect to which the related
      Principal Mortgage Documents have not been delivered to the Collateral
      Agent within nine (9) Business Days after the earlier of the date the
      Assignment was delivered to the Collateral Agent or, if different, the
      date of origination of the related Mortgage Loan shall not exceed thirty
      percent (30%) of the Maximum Facility Amount, and (B) during the first
      five and last five (5) Business Days of any month, the portion of total
      Collateral Value that may be attributable to Special Mortgage Loans with
      respect to which the related Principal Mortgage Documents have not been
      delivered to the Collateral Agent within nine (9) Business Days after the
      earlier of the date the Assignment was delivered to the Collateral Agent
      or, if different, the date of origination of the related Mortgage Loan
      shall not exceed fifty percent (50%) of the Maximum Facility Amount; and

            (k) at any time, the portion of total Collateral Value that may be
      attributable to Second Lien Loans shall not exceed ten percent (10%) of
      the Maximum Facility Amount; provided that (A) if any Obligor on any
      Second Lien Loan shall have a FICO Score of less than 670 or (B) if any
      Second Lien Loan shall have a Combined Loan-to-Value Ratio of more than
      100%, such Mortgage Loan shall have a Collateral Value of zero.

      "Collection Account" means the account established by the Buyer pursuant
to Section 2.7(b) of the Second Restated Loan Agreement.

                                       10
<PAGE>

      "Collections" means, with respect to any Mortgage Asset, all cash
collections (other than in respect of escrows payable under the related Mortgage
Loan) and other cash proceeds of such Mortgage Asset.

      "Combined Loan-to-Value Ratio" means, with respect to any Mortgage Loan,
the fraction, expressed as a percentage found by dividing the original principal
balance of all Mortgage Loans secured by a particular property by the value of
such Mortgage Loans, such value being measured by (i) the appraised value of
such property at such time, if a Mortgage Loan is a refinance of an existing
loan or (ii) the lower of the sales price of the related property at the time of
origination of a Mortgage Loan or the appraised value of such property at such
time, if a Mortgage Loan is a purchase money loan.

      "Confirmation" is defined in Section 2.02(a) hereto.

      "Conforming Loan" means (i) a Mortgage Loan that complies with all
applicable requirements for purchase under a Fannie Mae, Freddie Mac or other
similar Governmental Authority standard form of conventional mortgage loan
purchase contract, then in effect, or (ii) an FHA Loan or a VA Loan, that, in
either case, is a First Lien Mortgage Loan.

      "Debtor Laws" means all applicable liquidation, conservatorship,
bankruptcy, fraudulent transfer or conveyance, moratorium, arrangement,
receivership, insolvency, reorganization or similar laws from time to time in
effect affecting the rights of creditors generally.

      "Default" means any condition or event that, with the giving of notice or
lapse of time or both and unless cured or waived, would constitute an Event of
Default.

      "Default Rate" has the meaning ascribed to such term in the Second
Restated Loan Agreement.

      "Defaulted Mortgage Loan" means a Mortgage Asset under which the Obligor
is 30 or more days in payment default or has taken any action, or suffered any
event of the type described in Section 7.01(a)(vii), 7.01(a)(viii) or
7.01(a)(ix) or is in foreclosure.

      "Deferred Purchase Price" means the portion of the Purchase Price of
Purchased Mortgage Assets purchased on any Purchase Date exceeding the amount of
the Purchase Price under Section 2.02 to be paid in cash. The obligations of the
Buyer in respect of the Deferred Purchase Price shall be evidenced by the
Buyer's subordinated promissory note in the form of Exhibit A hereto.

      "Eligible Institution" means any depository institution, organized under
the laws of the United States or any state, having capital and surplus in excess
of $200,000,000, the deposits of which are insured to the full extent permitted
by law by the Federal Deposit Insurance Corporation and that is subject to
supervision and examination by federal or state banking authorities; provided
that such institution also must have a rating of A or higher with respect to
long-term deposit obligations from Moody's and A2 or higher with respect to
long-term deposit obligations from S&P and A or higher with respect to long-term
deposit obligations from Fitch. If such depository institution publishes reports
of condition at least annually, pursuant to law or to the requirements of the
aforesaid supervising or examining authority, then the combined capital and
surplus of such corporation or limited liability company shall be deemed to be
its combined

                                       11
<PAGE>

capital and surplus as set forth in its most recent report of condition so
published.

      "Eligible Mortgage Asset" means an Eligible Mortgage Loan.

      "Eligible Mortgage Collateral" means Eligible Mortgage Loans and the
Collection Account.

      "Eligible Mortgage Loan" means a Mortgage Loan:

      (a) that (i) is a closed and funded Mortgage Loan, (ii) has a maximum term
to maturity of 30 years and the proceeds of which were used either to finance a
portion of the purchase price of a Property encumbered by the related Mortgage
or to refinance a loan secured by such Property, and (iii) is secured by a
perfected first-priority Lien (except Second Lien Loans) on residential real
Property consisting of land and a one-to-four family dwelling thereon which is
completed and ready for owner occupancy, including townhouses and condominiums;

      (b) that is a Conforming Loan, a Jumbo Loan, a Subprime Loan, a Second
Lien Loan or an Alt-A Loan;

      (c) in which the Administrative Agent has been granted and continues to
hold a perfected (other than actual delivery of the Mortgage Note to the
Collateral Agent for Special Borrowings), first-priority (except Second Lien
Loans), security interest for the benefit of the holders of the Obligations;

      (d) for which the Mortgage Note is endorsed (without recourse) in blank
and each of such Mortgage Loan and the related Mortgage Note is a legal, valid
and binding obligation of the Obligor thereof;

      (e) for which, other than in respect of Special Mortgage Loans, the
Principal Mortgage Documents have been received by the Collateral Agent and are
in form and substance reasonably acceptable to the Collateral Agent;

      (f) that is either eligible for delivery or designated for delivery under
a Take-Out Commitment from an Approved Investor; provided that no more than 45
days have lapsed since the date on which any documentation relating to such
Mortgage Loan was shipped to the related Approved Investor;

      (g) that, immediately prior to the pledge thereof under the Second
Restated Collateral Agency Agreement, together with the related Mortgage Loan
Collateral, is owned beneficially by the Buyer free and clear of any Lien of any
other Person other than the Administrative Agent for the benefit of the holders
of the Obligations (except Second Lien Loans);

      (h) that, together with the related Mortgage Loan Collateral, does not
contravene any Governmental Requirements applicable thereto (including, without
limitation, the Real Estate Settlement Procedures Act of 1974, as amended, and
all laws, rules and regulations relating to usury, truth-in-lending, fair credit
billing, fair credit reporting, equal credit opportunity, fair debt collection
practices, privacy and other applicable federal and state consumer protection
laws) and

                                       12
<PAGE>

with respect to which no party to the related Mortgage Loan Collateral is in
violation of any Governmental Requirements (or procedure prescribed thereby) if
such violation would impair the collectability of such Mortgage Loan or the
saleability of such Mortgage Loan under the applicable Take-Out Commitment;

      (i) that, (i) is not a Seasoned Mortgage Loan or an Uncovered Mortgage
Loan; (ii) is not a Defaulted Mortgage Loan; (iii) has not previously been sold
to an Approved Investor and repurchased by Buyer; (iv) is a Mortgage Loan with
respect to which the Principal Mortgage Documents relating to such Mortgage Loan
were delivered to the Collateral Agent within the time frame set forth in
Section 2.3(c) of the Second Restated Loan Agreement; provided that, upon
delivery of such Principal Mortgage Documents to the Collateral Agent, such
Mortgage Loans may subsequently qualify as Eligible Mortgage Loans to support
Borrowings subsequent to such delivery; or (v) has an original principal balance
not in excess of $1,500,000.00;

      (j) that if the Mortgage Loan Collateral has been withdrawn for correction
pursuant to Section 6.02 such Mortgage Loan Collateral has been returned to the
Collateral Agent within 14 calendar days after withdrawal as required by Section
6.02;

      (k) that is denominated and payable in U.S. dollars in the United States
and the Obligor of which is a natural person who is a U.S. citizen or resident
alien or a corporation or limited liability company or other legal entity
organized under the laws of the United States or any State thereof or the
District of Columbia;

      (l) that is not subject to any right of rescission, setoff, counterclaim
or other dispute whatsoever;

      (m) that was acquired by the Buyer from the Seller within 60 days after
its Mortgage Origination Date;

      (n) that is covered by the types and amounts of insurance required by
Section 5.06;

      (o) with respect to which all representations and warranties made by the
Seller in the Second Restated Loan Agreement and this Agreement are true and
correct in all material respects and with respect to which all loan level
covenants made in the Second Restated Loan Agreement and this Agreement have
been complied with;

      (p) that is subjected to the following "Quality Control" measures by
personnel of the Seller before the Mortgage Note is funded by the Seller:

               (i) for those Mortgage Loans not originated by the Seller, is
      underwritten by the Seller prior to funding thereof and after performance
      of all underwriting procedures, is submitted to the Seller for closing
      where it is reviewed for thoroughness and compliance (including
      truth-in-lending, good faith estimates and other disclosures) and a verbal
      verification of employment and in-file credit report are obtained;

                                       13
<PAGE>

               (ii) with respect to which, all Mortgage Loan Collateral is
      prepared by the Seller and submitted to the closing agent at the time of
      funding the related Mortgage Loan; and

      (q) that, if it is a Second Lien Loan, has a Combined Loan-to-Value Ratio
of 100% or less and with respect to which the related first lien loan is owned
by the Seller.

          For the purpose of this definition:

      (x) A Mortgage Loan is "eligible for delivery" under a Take-Out Commitment
if (i) it is designated to be transferred to a Governmental Authority, (ii) the
underwriting criteria utilized and the Mortgage Loan Collateral either match, or
are in respect of interest rates (which rates must bear a relationship to
prevailing current market rates of interest for loans with similar maturities),
term, product type and delivery period representative of the terms for purchase
that are specified in a Take-Out Commitment, and (iii) the aggregate outstanding
principal of all such Mortgage Loans is not more than the aggregate Take-Out
Commitments' unutilized amount (i.e. taking in account all such Mortgage Loans
already allocated to the aggregate Take-Out Commitments for purposes of
determining Eligible Mortgage Loans whether or not already delivered by the
Buyer to the Collateral Agent).

      (y) A Mortgage Loan is "designated for delivery" under a Take-Out
Commitment if (i) it is designated to be transferred to any entity other than a
Governmental Authority and (ii) the underwriting criteria utilized in approving
such Mortgage Loan conform to the underwriting criteria, and the terms of
repayment (including interest rate and "term to maturity") and other terms and
conditions of the Mortgage Loan Collateral match the specifications of that
specific Take-Out Commitment that designates that particular Mortgage Loan for
purchase.

      "Employee Plan" means an employee pension benefit plan covered by Title IV
of ERISA and established or maintained by the Seller.

      "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time.

      "ERISA Affiliate" means any corporation, trade or business that is, along
with the Performance Guarantor, a member of a controlled group of corporations
or a controlled group of trades or businesses, as described in Sections 414(b),
(c), (m) and (o) of the Code, or Section 4001 of ERISA.

      "Event of Default" has the meaning specified in Section 7.01.

      "Facility" means the borrowing facility provided by the Lenders as
described in Section 2.1 of the Second Restated Loan Agreement.

      "Facility Termination Date" means the earliest to occur of:

      (a) August 18, 2006, or such earlier date determined in accordance with
Section 2.1(b) of the Second Restated Loan Agreement, or

                                       14
<PAGE>

      (b) the date on which the Maximum Facility Amount is terminated by the
Borrower pursuant to Section 2.1(d) of the Second Restated Loan Agreement, and

      (c) the date, on or after the occurrence of an Event of Default,
determined pursuant to Section 8.1 of the Second Restated Loan Agreement.

      "Fannie Mae" means the government sponsored enterprise formerly known as
the Federal National Mortgage Association, or any successor thereto.

      "Fee Letters" is defined in the Second Restated Loan Agreement.

      "FHA" means the Federal Housing Administration, or any successor thereto.

      "FHA Loan" means a Mortgage Loan, the ultimate payment of which is
partially or completely insured by the FHA or with respect to which there is a
current, binding and enforceable commitment for such insurance issued by the
FHA.

      "FICO Score" means, with respect to the Obligor under a particular
Mortgage Loan, a credit rating established by Fair Isaac Corporation or a market
competitor.

      "FICO Score Trigger Event" means that, (i) the Pool Weighted Average FICO
Score has been reported, in a Servicer Monthly Report, as less than 690, (ii) a
period of seven Business Days has elapsed from the date of receipt of such
report by the Administrative Agent and (iii) the Servicer has not provided to
the Administrative Agent a revised Pool Weighted Average FICO Score that exceeds
690.

      "Financial Officer" means (i) with respect to the Seller, its chief
financial officer, treasurer or a vice president having the knowledge and
authority necessary to prepare and deliver the financial statements and reports
required pursuant to Sections 5.1(b) and (d) and (ii) with respect to the
Performance Guarantor, the chief financial officer, the vice president-treasurer
or the senior vice president-finance.

      "First Lien Mortgage Loan" means a loan secured by a perfected first lien
mortgage on real property.

      "Fitch" means Fitch, Inc., and any successor thereto.

      "Freddie Mac" means the Federal Home Loan Mortgage Corporation, or any
successor thereto.

      "GAAP" means generally accepted accounting principles as in effect in the
United States from time to time.

      "Ginnie Mae" means the Government National Mortgage Association, or any
successor thereto.

      "Governmental Authority" means any nation or government, any agency,
department, state or other political subdivision thereof, or any instrumentality
thereof, and any entity

                                       15
<PAGE>

exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government. Governmental Authority shall include,
without limitation, each of Freddie Mac, Fannie Mae, FHA, HUD, VA and Ginnie
Mae.

      "Governmental Requirement" means any law, statute, code, ordinance, order,
rule, regulation, judgment, decree, injunction, franchise, permit, certificate,
license, authorization or other requirement (including, without limitation, any
of the foregoing that relate to energy regulations and occupational, safety and
health standards or controls and any hazardous materials laws) of any
Governmental Authority that has jurisdiction over the Seller or any of its
Property.

      "Group Bank" means (1) with respect to Atlantic and La Fayette, Calyon New
York, each Bank that has entered into an Assignment and Acceptance with Calyon
New York, including Lloyds, and each assignee (directly or indirectly) of any
such Bank, which assignee has entered into an Assignment and Acceptance and (2)
with respect to Jupiter, JPMorgan, each Bank that has entered into an Assignment
and Acceptance with JPMorgan and each assignee (directly or indirectly) of any
such Bank, which assignee has entered into an Assignment and Acceptance.

      "Hedge Report" means, with respect to any Conforming Loans included in the
Eligible Mortgage Collateral that is to be sold to a Governmental Authority, a
report prepared by the Servicer and pursuant to Section 3.6 of the Second
Restated Loan Agreement, showing, as of the close of business on the previous
Business Day, all trades that have been assigned to the Administrative Agent,
for the benefit of holders of the Obligations, and the following information
with respect to such trades: (i) trade counterparty, (ii) trade amount, (iii)
coupon, (iv) price, (v) type of security, (vi) date of trade, and (vii) such
other information as the Administrative Agent may reasonably request in the form
of Exhibit K to the Second Restated Loan Agreement.

      "HUD" means the Department of Housing and Urban Development, or any
successor thereto.

      "Indebtedness" means, for any Person, without duplication, and at any
time, (a) all obligations required by GAAP to be classified on such Person's
balance sheet as liabilities, (b) obligations secured (or for which the holder
of the obligations has an existing contingent or other right to be so secured)
by any Lien existing on property owned or acquired by such Person, (c)
obligations that have been (or under GAAP should be) capitalized for financial
reporting purposes, and (d) all guaranties, endorsements, and other contingent
obligations with respect to obligations of others.

      "Indemnified Amounts" has the meaning specified in Section 8.01.

      "Indemnified Party" has the meaning specified in Section 8.01.

      "Interest Period" is defined in Section 2.15 of the Second Restated Loan
Agreement.

      "Issuer" means any of Atlantic, Jupiter and La Fayette.

      "JPMorgan" has the meaning set forth in the preamble of this Second
Restated Collateral Agency Agreement.

                                       16
<PAGE>

      "JPMorgan Group" means Jupiter, JPMorgan and each other Group Bank of
Jupiter.

      "Jumbo Loan" means a Mortgage Loan (other than a Conforming Loan) that (1)
is underwritten to Approved Investor guidelines (other than Fannie Mae, Freddie
Mac or Ginnie Mae), (2) matches all applicable requirements for purchase under
the requirements of a Take-Out Commitment issued for the purchase of such
Mortgage Loan, and (3) differs from a Conforming Loan solely because the
principal amount of such Mortgage Loan exceeds the limit set for Conforming
Loans by Fannie Mae or Freddie Mac from time to time, but shall not exceed
$1,000,000; provided, that a Jumbo Loan having an original principal balance in
excess of $1,000,000 but not more than $1,500,000 shall qualify as a Super Jumbo
Loan, and (4) is a First Lien Mortgage Loan. The term Jumbo Loan includes Super
Jumbo Loans.

      "Jupiter" means Jupiter Securitization Corporation and its successors and
assigns.

      "La Fayette" means La Fayette Asset Securitization LLC, a Delaware limited
liability company.

      "Lenders" means, collectively, the Issuers and the Banks.

      "Lien" means any mortgage, pledge, hypothecation, assignment, deposit
arrangement, encumbrance, lien (whether statutory, consensual or otherwise), or
other security arrangement of any kind (including, without limitation, any
conditional sale or other title retention agreement, any financing lease having
substantially the same economic effect as any of the foregoing, and the filing
of any financing statement under the uniform commercial code or comparable law
of any jurisdiction in respect of any of the foregoing).

      "Lloyds" means Lloyds TSB Bank plc and its successors and assigns.

      "Loan-to-Value Ratio" means, with respect to any Mortgage Loan, the
fraction, expressed as a percentage found by dividing the original principal
balance of a Mortgage Loan by the value of the Mortgage Loan, such value being
measured by (i) the appraised value of such property at such time, if the
Mortgage Loan is a refinance of an existing lien or (ii) the lower of the sales
price of the related property at the time of origination of the Mortgage Loan or
the appraised value of such property at such time, if the Mortgage Loan is a
purchase money loan.

      "Managing Agents" means, with respect to Atlantic and La Fayette, Calyon
New York or any successor managing agent designated by such party; and, with
respect to Jupiter, JPMorgan or any successor managing agent designated by such
party.

      "Margin Deficit" is defined in Section 2.03(b) hereof.

      "Market Value" means at the time determined, for any (a) Mortgage Loan
(other than a Non-Conforming Loan), the market value of such Mortgage Loan based
upon the then most recent posted net yield for 30-day mandatory future delivery
furnished by Fannie Mae and published and distributed by Telerate Mortgage
Services, or, if such posted net yield is not available from Telerate Mortgage
Services, such posted net yield obtained by the Administrative Agent from Fannie
Mae, or (b) Non-Conforming Loan, or any other Mortgage Loan while the

                                       17
<PAGE>

posted rate is not available from Fannie Mae, the value determined by the
Administrative Agent in good faith.

      "Material Adverse Effect" means, with respect to any Person, any material
adverse effect on (i) the validity or enforceability of the Master Repurchase
Agreement, this Agreement, the Notes or any other Transaction Document, (ii) the
business, operations, total Property or financial condition of such Person,
(iii) the Transferred Mortgage Assets taken as a whole, (iv) the enforceability
of the purchases of Mortgage Assets under this Agreement free of any Adverse
Claims, or (v) the ability of such Person to fulfill its obligations under this
Agreement or any other Transaction Document.

      "Maximum Facility Amount" is defined in the Second Restated Loan
Agreement.

      "MERS" means Mortgage Electronic Registration Systems, Inc., a Delaware
corporation.

      "MERS Designated Mortgage Loan" means a Mortgage Loan registered to or by
the Originator on the MERS electronic mortgage registration system.

      "Moody's" means Moody's Investors Service, Inc., and any successor
thereto.

      "Mortgage" means a mortgage or deed of trust or other security instrument
creating a Lien on real property, on a standard form as approved by Fannie Mae,
Freddie Mac or Ginnie Mae or such other form as the Seller determines is
satisfactory for any Approved Investor unless otherwise directed by the Buyer or
its assignee and communicated to the Collateral Agent.

      "Mortgage Assets" means, collectively, all of the Mortgage Loans,
including funds advanced for Mortgage Loans that ultimately fail to close, and
all Take-Out Commitments.

      "Mortgage File" means the mortgage documents pertaining to a particular
Mortgage Loan and any additional documents required to be included in or added
to the Mortgage File pursuant to the Second Restated Loan Agreement.

      "Mortgage Loan" means a loan evidenced by a Mortgage Note and secured by a
Mortgage, the beneficial interest of which has been acquired by the Buyer from
the Seller by purchase pursuant to this Agreement (with the record owner thereof
being the Seller or, in the case of a MERS Designated Mortgage Loan, MERS as
nominee for the Seller, and its successors and assigns).

      "Mortgage Loan Collateral" means all Mortgage Notes and related Principal
Mortgage Documents, Other Mortgage Documents.

      "Mortgage Note" means a promissory note, on a standard form approved by
Fannie Mae, Freddie Mac or Ginnie Mae or such other form as the Seller
determines is satisfactory for any Approved Investor unless otherwise directed
by the Buyer or its assignee and communicated to the Collateral Agent.

                                       18
<PAGE>

      "Mortgage Origination Date" means, with respect to each Mortgage Loan, the
date that is the later of (1) the date of the Mortgage Note or (2) the date such
Mortgage Loan was funded and disbursed to or at the direction of the Obligor.

      "Multiemployer Plan" means a multiemployer plan defined in Sections 3(37)
or 4001(a)(3) of ERISA or Section 414(f) of the Code to which a Seller or any
ERISA Affiliate is making or has made (or is accruing or has accrued an
obligation to make) contributions.

      "Net Worth" of a Person means, as of any date of determination, the total
stockholder's or member's equity (including capital stock, additional paid-in
capital and retained earnings after deducting treasury stock) that would appear
on a balance sheet of such Person prepared as of such date in accordance with
GAAP but excluding the value of any investment made by such Person in an
unconsolidated Subsidiary.

      "Non-Conforming Loan" means a Subprime Loan, a Jumbo Loan, a Second Lien
Loan or an Alt-A Loan.

      "Note" means each or any of the promissory notes executed by the Buyer,
substantially in the form of Exhibits E-1, E-2, and E-3 of the Second Restated
Loan Agreement, together with all renewals, extensions, and replacements for any
such note.

      "Obligations" means any and all present and future indebtedness,
obligations, and liabilities of the Buyer, as the borrower, to any of the
Lenders, the Collateral Agent, the Managing Agents, each Affected Party (as
defined in the Second Restated Loan Agreement), each Indemnified Party and the
Administrative Agent, and all renewals, rearrangements and extensions thereof,
or any part thereof, arising pursuant to this Second Restated Loan Agreement or
any other Transaction Document, and all interest accrued thereon, and attorneys'
fees and other costs incurred in the drafting, negotiation, enforcement or
collection thereof, regardless of whether such indebtedness, obligations, and
liabilities are direct, indirect, fixed, contingent, joint, several or joint and
several.

      "Obligor" means (i) with respect to each Mortgage Note included in the
Collateral, the obligor on such Mortgage Note and (ii) with respect to any other
agreement included in the Mortgage Assets, any person from whom the Seller is
entitled to performance.

      "Other Mortgage Documents" is defined in Section 3.2(c) to the Second
Restated Loan Agreement.

      "Outstanding Balance" means as of any date of determination (A) with
respect to each Mortgage Loan, an amount equal to the lesser of: (i) the lesser
of the original principal amount or the acquisition price of such Mortgage Loan
paid by the Seller on the closing and funding of such Mortgage Loan; and (ii)
for each Mortgage Loan, the amount determined by multiplying (a) the weighted
average purchase price (expressed as a percentage) that Approved Investors are
committed to pay, pursuant to Take-Out Commitments, for all Eligible Mortgage
Loans, as shown on the most recent Hedge Report, multiplied by the outstanding
principal balance of such Eligible Mortgage Loan.

      "PBGC" means the Pension Benefit Guaranty Corporation or any successor
thereto.

                                       19
<PAGE>

      "Performance Guarantor" means Pulte.

      "Person" means any individual, corporation (including a business trust),
limited liability company, partnership, joint venture, association, joint stock
company, trust, unincorporated organization, Governmental Authority, or any
other form of entity.

      "Pool Weighted Average FICO Score" means, as of any Collateral Reporting
date, the ratio of (a) the sum, for all Alt-A Loans, of the product for each
Alt-A Loan of (i) its FICO Score and (ii) its original principal balance to (b)
the sum of the original principal balances of all Alt-A Loans.

      "Pricing Rate" has the meaning specified in Section 2.02.

      "Principal Mortgage Documents" is defined in Section 3.2(b) to the Second
Restated Loan Agreement.

      "Property" means any interest in any kind of property or asset, whether
real, personal or mixed, or tangible or intangible.

      "Pulte" means Pulte Homes, Inc. (formerly known as Pulte Corporation), a
Michigan corporation, and its successors and assigns.

      "Pulte Mortgage" has the meaning set forth in the preamble to this
Agreement.

      "Purchase" means a purchase by the Buyer of Mortgage Assets from a Seller
pursuant to Article II.

      "Purchase Date" has the meaning specified in Section 2.02(a).

      "Purchase Price" for any Purchase means an amount equal to the Outstanding
Balance of the Mortgage Assets that are the subject of such Purchase. "Purchase
Request" has the meaning specified in Section 2.02(a).

      "Purchased Mortgage Asset" means any Mortgage Asset which has been
purchased by the Buyer pursuant to Section 2.02.

      "Repurchase Date" is defined in Section 2.02(a) hereto.

      "Repurchase Price" the price at which the Purchased Mortgage Assets are to
be transferred from Buyer to Seller upon termination of a transaction, which
will be determined in each case as the sum of the Purchase Price and the Price
Differential as of the end of the related Interest Period.

      "Requirement of Law" as to any Person means the articles of incorporation
and by-laws or certificate of formation and limited liability company agreement
or other organizational or governing documents of such Person, and any law,
statute, code, ordinance, order, rule, regulation, judgment, decree, injunction,
franchise, permit, certificate, license, authorization or

                                       20
<PAGE>

other determination, direction or requirement (including, without limitation,
any of the foregoing that relate to energy regulations and occupational, safety
and health standards or controls and any hazardous materials laws) of any
Governmental Authority, in each case applicable to or binding upon such Person
or any of its Property or to which such Person or any of its Property is
subject.

      "Restated Assignment of Account" is defined in the Second Restated
Collateral Agency Agreement.

      "Restated Originator Performance Guaranty" means the Amended and Restated
Originator Performance Guaranty, in the form attached the Second Restated Loan
Agreement as Exhibit G-2, made by the Performance Guarantor in favor of the
Buyer, as borrower, and assigned to the Administrative Agent for the benefit of
the Lenders.

      "Restated Performance Guaranties" means, collectively, the Restated
Servicer Performance Guaranty and the Restated Originator Performance Guaranty.

      "Restated Servicer Performance Guaranty" means the Amended and Restated
Servicer Performance Guaranty, in the form attached to the Second Restated Loan
Agreement as Exhibit G-1, made by the Performance Guarantor in favor of the
Administrative Agent.

      "Restated Subordination Agreement" means the Amended and Restated
Subordination Agreement, substantially in the form attached as Exhibit B to the
Second Restated Loan Agreement, executed by the Performance Guarantor and
certain of its Affiliates in favor of the Buyer and the Administrative Agent for
the benefit of the holders of the Obligations.

      "S&P" means Standard & Poor's Rating Services, a Division of The
McGraw-Hill Companies, Inc., and any successor thereto.

      "Seasoned Mortgage Loan" means a Mortgage Loan with a Mortgage Origination
Date that is more than 180 days prior to the current date.

      "Second Lien Loan" means a Mortgage Loan secured by particular property
with respect to which at least one other higher-priority Mortgage Loan exists
secured by the same property.

      "Second Restated Collateral Agency Agreement" means the Second Amended and
Restated Collateral Agency Agreement, dated as of the date hereof, among the
Buyer, as borrower, the Collateral Agent and the Administrative Agent,
substantially in the form of Exhibit D to the Second Restated Loan Agreement.

      "Second Restated Loan Agreement" means the Second Amended and Restated
Loan Agreement, dated as of the date hereof, by and among the Buyer, as the
Borrower, the Issuers parties thereto, the Banks parties thereto, the Managing
Agents parties thereto, the Administrative Agent and the Servicer, as amended,
modified or supplemented from time to time.

      "Servicer" means at any time the Person then authorized pursuant to
Section 11.1 of the Second Restated Loan Agreement to service, administer and
collect the Transferred Mortgage Assets. The initial Servicer shall be Pulte
Mortgage.

                                       21
<PAGE>

      "Settlement Date" means (a) for purposes of determining fees set forth in
the Fee Letters, (i) the 10th day of each of October, January, April and July,
commencing October 10, 2002 or, if such day is not a Business Day, the next
succeeding Business Day, or (ii) on and after the Facility Termination Date, the
10th day of each calendar month or, if such day is not a Business Day, the next
succeeding Business Day, provided, however, that the Administrative Agent may,
with the consent of the Managing Agents, by notice to the Buyer and the
Servicer, select other days to be Settlement Dates (including days occurring
more frequently than once per month) and (b) for all other purposes, the 10th
day of each calendar month or, if such day is not a Business Day, the next
succeeding Business Day, commencing September 10, 2002, provided, however, on
and after the Facility Termination Date, the Administrative Agent may, with the
consent of the Managing Agents, by notice to the Buyer and the Servicer, select
other days to be Settlement Dates (including days occurring more frequently than
once per month).

      "Special Borrowing" is defined in Section 2.03(c) to the Second Restated
Loan Agreement.

      "Special Mortgage Loan" is defined in Section 2.3(c) to the Second
Restated Loan Agreement.

      "Subprime Loan" means a Mortgage Loan (other than a Conforming Loan, a
Jumbo Loan, an Alt-A Loan or a Second Lien Loan) that (1) is underwritten to
Approved Investor guidelines, (2) matches all applicable requirements for
purchase under the requirements of a Take-Out Commitment specifically issued for
the purchase of such Mortgage Loan, and (3) differs from a Conforming Loan
because of the credit quality of the obligor, and is originated by the
Originator or by a correspondent of the Originator using the established
underwriting guidelines for subprime loans of the Originator, which are the same
underwriting guidelines that the Originator uses to originate subprime loans for
sales into the secondary mortgage market.

      "Subsidiary" means, with respect to any Person, any corporation, any
limited liability company, or other entity of which securities having ordinary
voting power to elect a majority of the board of directors or the board of
managers or other persons performing similar functions are at the time directly
or indirectly owned by such Person, or one or more of its Subsidiaries, or by
such Person and one or more of its Subsidiaries.

      "Super Jumbo Loan" means a Jumbo Loan having an original principal balance
in excess of $1,000,000 but equal to or less than $1,500,000.

      "Take-Out Commitment" means, a current, valid, binding, enforceable,
written commitment, issued by an Approved Investor, to purchase one or more
Mortgage Loans from the Seller prior to the date that is 120 days (or 180 days
to the extent Collateral Value may include Mortgage Loans that have been
Eligible Mortgage Loans for more than 120 days pursuant to paragraph (f) of the
definition of Collateral Value) from the date that such Mortgage Loan first
becomes an Eligible Mortgage Asset and at a specified price and in amounts, form
and substance reasonably satisfactory to the Managing Agents, which commitment
is not subject to any term or condition (i) that is not customary in commitments
of like nature or (ii) that, in the reasonably anticipated course of events,
cannot be fully complied with prior to the expiration thereof, which commitment
has been assigned to the Buyer (partial assignments being permitted so long as
the

                                       22
<PAGE>

amount assigned (together with all other Take-Out Commitments) fully covers the
amount of the Eligible Mortgage Assets); provided, that upon receipt of the
actual written confirmation (each, a "Trade Confirmation") of such trade duly
executed by the Seller and the trade counterparty (such Trade Confirmation being
held in trust for the Collateral Agent pursuant to Section 3.2(c) of the Second
Restated Loan Agreement) and promptly upon request of the Administrative Agent,
the Seller must provide such trade confirmation to the Administrative Agent. The
Administrative Agent, on behalf of the Lenders, shall have the right, without
notice, to review such Trade Confirmation at the office of, and with the
officers of, the Seller during normal business hours.

      "Take-Out Commitment Documents" means (1) with respect to any Conforming
Loans, copies of all Take Out Commitments or an executed original assignment of
trade as described in the definition of "Take Out Commitment"; and (2) with
respect to Non-Conforming Loans, copies of all Take Out Commitments.

      "Term" means three hundred sixty-four (364) days from the date of this
Agreement.

      "Transaction Document" means any of this Agreement, the assignments
delivered pursuant to Section 3.02(a), and any and all other agreements or
instruments now or hereafter executed and delivered by or on behalf of the
Seller in connection with this Agreement or the Master Repurchase Agreement, as
any of such documents may be renewed, amended, restated or supplemented from
time to time.

      "Transferred Mortgage Asset" means a Purchased Mortgage Asset.

      "Transferred Mortgage Loan" means a Mortgage Loan included in the
Transferred Mortgage Assets.

      "UCC" means the Uniform Commercial Code as adopted in the applicable
state, as the same may hereafter be amended.

      "Uncovered Mortgage Loan" means a Mortgage Loan that would be an Eligible
Mortgage Loan but for the expiration, forfeiture, termination, or cancellation
of, or default under, the relevant Take-Out Commitment.

      "VA" means the Department of Veterans Affairs, or any successor thereto.

      "VA Loan" means a Mortgage Loan, the payment of which is partially or
completely guaranteed by the VA under the Servicemen's Readjustment Act of 1944,
as amended, or Chapter 37 of Title 38 of the United States Code or with respect
to which there is a current binding and enforceable commitment for such a
guaranty issued by the VA.

      Section 1.02. Other Terms.

      All accounting terms not specifically defined herein shall be construed in
accordance with GAAP. All terms used in Article 9 of the UCC, and not
specifically defined herein, are used herein as defined in such Article 9.

                                       23
<PAGE>

                                   ARTICLE II

                         AMOUNTS AND TERMS OF PURCHASES

      Section 2.01. Facility.

      (a) The first sentence of Section 1 of the Master Repurchase Agreement is
amended in its entirety by replacing it with the following:

               "From time to time prior to the occurrence and continuance of an
          Event of Default and prior to the Facility Termination Date, the
          Seller may present for transfer to Buyer Mortgage Assets that are
          Eligible Mortgage Assets against the transfer of funds by Buyer with a
          simultaneous agreement by Buyer to transfer to the Seller such Assets
          at a date certain or on demand, against the transfer of funds by the
          Seller, and at each such time of presentation Buyer will enter into
          such Transaction."

      (b) Section 1 is hereby further amended by adding the following at the end
thereof:

               "Without limiting any rights of Buyer under this Master
          Repurchase Agreement, no Transaction shall be for a Purchase Price
          such that the cash portion thereof will be less than $5,000,000 or an
          integral multiple of $10,000 in excess thereof."

      (c) Every reference in the Master Repurchase Agreement to "Securities"
shall be replaced by "Mortgage Assets." Every reference in the Master Repurchase
Agreement to "Purchased Securities" shall be replaced by "Purchased Mortgage
Assets." Every reference in the Master Repurchase Agreement to "Additional
Purchased Securities" shall be replaced by "Additional Purchased Mortgage
Assets."

      Section 2.02. Making Purchases.

      (a) Subparagraph 3(b) of the Master Repurchase Agreement is amended by
deleting the subparagraph in its entirety and replacing it with the following:

               Purchases. Each Transaction shall be initiated by request from
          the Seller to the Buyer given no later than 12:00 noon (eastern time)
          on the Business Day prior to the date of Purchase. Each such request
          for a Purchase (each a "Purchase Request") shall specify the date of
          such Purchase (which shall be a Business Day), the Mortgage Assets
          included in such Purchase and the Purchase Price for such Purchase.
          The Buyer shall promptly notify the Seller whether it has determined
          to make such Purchase and, if so, shall deliver a written confirmation
          (each, a "Confirmation"). On the date of each Purchase (each a
          "Purchase Date"), the Buyer shall, upon satisfaction of the applicable
          conditions set forth in Article III, pay the Purchase Price for such
          Purchase by means of any one or a combination of the following: (i) a
          deposit in same day funds to the Seller's account designated by the
          Seller or (ii) an increase in the

                                       24
<PAGE>

      Deferred Purchase Price.The allocation of the Purchase Price as among
      such methods of payment shall be subject in each instance to the approval
      of the Buyer and the Seller.

               The "Repurchase Date" for each Transaction shall be the earlier
          of (i) the date set forth in the applicable Confirmation and (ii) the
          date determined by application of Paragraph 11 of the Master
          Repurchase Agreement. The "Pricing Rate" for each Transaction shall be
          set forth on the Confirmation; provided that, upon the occurrence of
          and during the continuance of an Event of Default, the Pricing Rate
          shall equal the Default Rate. The Confirmation, together with this
          Master Repurchase Agreement, shall constitute conclusive evidence of
          the terms agreed between Buyer and Seller with respect to the
          Transaction to which the Confirmation relates, unless with respect to
          the Confirmation specific objection is made promptly after receipt
          thereof. In the event of any conflict between the terms of such
          Confirmation and this Master Repurchase Agreement, this Master
          Repurchase Agreement shall prevail.

      (b) Subparagraph 3(c) of the Master Repurchase Agreement is amended by
replacing the first sentence of Paragraph 3(c) with the following:

          In the case of Transactions terminable upon demand, such demand by
      the Seller shall be for a repurchase of all Purchased Mortgage Assets
      subject to the related Transaction and shall be made no later than 11:00
      a.m. New York City time on the Business Day immediately preceding the day
      on which such termination will be effective, which termination shall also
      be on a Business Day.

      (c) Paragraph 3 of the Master Repurchase Agreement is amended by adding
the following language as a new Subparagraph 3(d):

      (d) This Master Repurchase Agreement shall continue in effect until the
expiration of the Facility Termination Date.

      Section 2.03. Margin Maintenance.

      Subparagraph 4 of the Master Repurchase Agreement is amended in its
entirety to read as follows:

      (a) Daily until the expiration of the Facility Termination Date (or less
frequently if the Buyer, in its sole and absolute discretion, so elects), the
Seller, as applicable (or Servicer on Buyer's behalf) will determine (i) the
aggregate Collateral Value of all Purchased Mortgage Assets held by Buyer, (ii)
the Repurchase Price as of such date, and the Maximum Facility Amount as of such
date. Without limiting the foregoing, the Seller shall deliver to Buyer, at any
time and from time to time, information in its possession in the ordinary course
of its business with respect to the Purchased Mortgage Assets sold by it to
assist Buyer in ascertaining the Collateral Value of such Purchased Mortgage
Assets.

      (b) If, on any date, the aggregate Repurchase Price exceeds the total
Collateral Value of all Eligible Mortgage Assets (a "Margin Deficit"), Buyer
may, in its sole and absolute discretion, by notice to the Seller (a "Margin
Call"), require the Seller to transfer to Buyer cash

                                       25
<PAGE>

or additional Purchased Mortgage Assets that are reasonably acceptable to Buyer
("Additional Purchased Mortgage Assets") to eliminate such deficiency.

      (c) Upon receipt of notice from Buyer at or prior to 11:00 a.m. New York
City time (which may be transmitted by facsimile), the Seller, as applicable, in
its sole discretion, shall transfer either cash or the Additional Purchased
Mortgage Assets no later than the close of business on the Business Day
immediately following the date on which a Margin Call is given. Any cash
transferred to Buyer pursuant hereto shall be held by Buyer until the Repurchase
Date and shall be applied against the Repurchase Price on the Repurchase Date.

      (d) Buyer's election, in its sole and absolute discretion, not to make a
Margin Call at any time there is a Margin Deficit shall not in any way limit or
impair its right to make a Margin Call at any time a Margin Deficit exists.

      Section 2.04. Collections.

      Paragraph 5 of the Master Repurchase Agreement is amended by adding the
following at the end of the last sentence thereof:

            Notwithstanding the foregoing and except as provided in paragraph 11
      of this Master Repurchase Agreement, the Seller shall hold for the benefit
      of, and in trust for, Buyer all income, including without limitation all
      scheduled and unscheduled principal and interest payments or any other
      income (including without limitation, tax escrow payments), received by or
      on behalf of the Seller with respect to such Purchased Mortgage Assets
      sold by it (collectively, "Purchased Asset Income"). To the extent
      required under the Second Restated Loan Agreement, the Seller shall
      deposit the Purchased Asset Income (other than any Obligor's escrow
      payments) in the Collection Account.

            On each Settlement Date, the Buyer shall pay to the Seller accrued
      interest on the Deferred Purchase Price of the related Purchased Mortgage
      Assets sold by it and the Buyer may, at its option, prepay in whole or in
      part the principal amount of any such Deferred Purchase Price; provided
      that each such payment shall be made solely from (i) Collections of the
      related Transferred Mortgage Assets after all other amounts then due from
      the Buyer under the Second Restated Loan Agreement have been paid in full
      and all amounts then required to be set aside by the Buyer or the Servicer
      under the Second Restated Loan Agreement have been so set aside or (ii)
      excess cash flow from operations of the Buyer which is not required to be
      applied to the payment of other obligations of the Buyer; and provided
      further, that no such payment shall be made at any time when an Event of
      Default shall have occurred and be continuing. At such time following the
      Facility Termination Date when all principal, interest and other amounts
      owed by the Buyer under the Second Restated Loan Agreement shall have been
      paid in full, the Buyer shall apply, on each Settlement Date, all
      Collections of Transferred Mortgage Assets deposited to the Collection
      Account pursuant to this Paragraph 5 (and not previously distributed)
      ratably as between the Seller first to the payment

                                       26
<PAGE>

      of accrued interest on each related Deferred Purchase Price, and then to
      the reduction of the principal amount of each related Deferred Purchase
      Price.

      Section 2.05. Repurchase or Substitution Procedures.

      (a) Upon discovery by the Seller or the Buyer of a breach of any of the
representations and warranties made by the Seller in Section 4.01(t) of this
Agreement with respect to any Transferred Mortgage Asset, such party shall give
prompt written notice thereof to the other party, as soon as practicable and in
any event within three Business Days following such discovery. The Seller shall,
upon not less than two Business Days' notice from the Buyer or its assignee or
designee, repurchase such Transferred Mortgage Asset on the next succeeding
Settlement Date for a repurchase price equal to the Repurchase Price of such
Transferred Mortgage Asset. Each repurchase of a Transferred Mortgage Asset
shall include the Mortgage Loan Collateral with respect to such Transferred
Mortgage Asset. The proceeds of any such repurchase shall be deemed to be a
Collection in respect of such Transferred Mortgage Asset. If the Seller is not
the Servicer, the Seller shall pay to the Servicer for deposit to the Collection
Account on or prior to the next Settlement Date the Repurchase Price required to
be paid pursuant to this subsection. If the Seller is the Servicer, the Seller
shall deposit such Repurchase Price to the Collection Account on or prior to the
next Settlement Date.

      (b) Upon discovery by the Seller or the Buyer of a breach by the Seller of
its covenant in Section 5.23 of this Agreement with respect to any Special
Mortgage Loan, such party shall give prompt written notice thereof to the other
parties, as soon as practicable and in any event within three Business Days
following such discovery. The Seller shall, upon not less than two Business
Days' notice from the Buyer or its assignee or designee or from the Collateral
Agent on its behalf, repurchase such Special Mortgage Loan for a repurchase
price equal to the Repurchase Price of such Special Mortgage Loan. Each
repurchase of a Special Mortgage Loan shall include the Mortgage Loan Collateral
with respect to such Special Mortgage Loan. The proceeds of any such repurchase
shall be deemed to be a Collection in respect of such Special Mortgage Loan. If
the Seller is not the Servicer, the Seller shall pay to the Servicer for deposit
to the Collection Account on or prior to the repurchase date the Repurchase
Price required to be paid pursuant to this subsection. If the Seller is the
Servicer, the Seller shall deposit such Repurchase Price to the Collection
Account on or prior to the next Settlement Date.

      (c) If a Mortgage Note has been withdrawn for correction pursuant to
Section 6.02 of this Agreement and the Seller has not delivered the corrected
Mortgage Note to the Collateral Agent within twenty calendar days after such
withdrawal, the Seller shall, upon not less than two Business Days' notice from
the Buyer or its assignee or designee or from the Collateral Agent on its
behalf, repurchase the related Mortgage Loan for a repurchase price equal to the
Repurchase Price of such Mortgage Loan. Each repurchase of a Mortgage Loan shall
include the Mortgage Loan Collateral with respect to such Mortgage Loan. The
proceeds of any such repurchase shall be deemed to be a Collection in respect of
such Mortgage Loan. If the Seller is not the Servicer, the Seller shall pay to
the Servicer for deposit to the Collection Account on or prior to the repurchase
date the Repurchase Price required to be paid pursuant to this subsection. If
the Seller is the Servicer, the Seller shall deposit such Repurchase Price to
the Collection Account on or prior to the next Settlement Date.

                                       27
<PAGE>

      (d) To the extent that any of the events occur that require the Seller to
repurchase pursuant to Subsections 2.05(a), 2.05(b) and 2.05(c), but only so
long as a Margin Deficit does not exist, the Seller may elect not to repurchase
the effected purchased loans by delivering written notice to the Buyer, its
successors and assigns.

      Section 2.06. Payments and Computations, Etc.

      (a) All amounts to be paid or deposited by the Seller hereunder shall be
paid or deposited no later than 11:00 a.m. (eastern time) on the day when due in
same day funds to an account designated by the Buyer from time to time, which
account shall initially be the Collection Account.

      (b) The Seller shall, to the extent permitted by law, pay to the Buyer
interest on any amount not paid or deposited by such the Seller (whether as
Servicer or otherwise) when due hereunder at an interest rate per annum equal to
2% per annum above the Alternate Base Rate, payable on demand.

      (c) All computations of interest and all computations of fees hereunder
shall be made on the basis of a year of 360 days for the actual number of days
(including the first but excluding the last day) elapsed. Whenever any payment
or deposit to be made hereunder shall be due on a day other than a Business Day,
such payment or deposit shall be made on the next succeeding Business Day and
such extension of time shall be included in the computation of such payment or
deposit.

      Section 2.07. Intent of the Seller and the Buyer.

      Paragraph 6 of the Master Repurchase Agreement is hereby deleted and
replaced with the following:

            The Seller and the Buyer have structured this Agreement with the
      intention that each Purchase of Mortgage Assets hereunder be treated as a
      sale of such Mortgage Assets by the Seller to the Buyer for all purposes.
      The Seller and the Buyer shall record each related Purchase as a sale or
      purchase, as the case may be, on its books and records, and reflect each
      related Purchase in its financial statements and tax returns as a sale or
      purchase, as the case may be. In the event that, contrary to the mutual
      intent of the Seller and the Buyer, any Purchase of Mortgage Assets
      hereunder is not characterized as a sale or absolute transfer, the Seller
      shall, effective as of the date hereof, be deemed to have granted (and the
      Seller hereby does grant) to the Buyer a first priority security interest
      in and to any and all Mortgage Assets, the related Mortgage Loan
      Collateral and the proceeds thereof to secure the repayment of all amounts
      advanced to the Seller hereunder with accrued interest thereon, and this
      Agreement shall be deemed to be a security agreement.

      Section 2.08. No Segregation of Assets.

      Paragraph 8 of the Master Repurchase Agreement is amended by deleting
Paragraph 8 in its entirety and replacing it with the following:

                                       28
<PAGE>

            Upon transfer of the Mortgage Loans to Buyer as set forth in
      Paragraph 3(a) of this Master Repurchase Agreement and until termination
      of any related Transactions as set forth in Paragraphs 3(c) or 11 of this
      Master Repurchase Agreement, ownership of each Mortgage Loan, including
      each document in the related Mortgage File, is vested in Buyer. Upon
      transfer of the Mortgage Loans to Buyer as set forth in Paragraph 3(a) of
      this Master Repurchase Agreement and until termination of any Transactions
      as set forth in paragraphs 3(c) or 11 of this Master Repurchase Agreement
      and prior to the recordation of the assignments of mortgage by the
      Collateral Agent as provided for in the Second Restated Collateral Agency
      Agreement, record title in the name of the Seller or in the case of a MERS
      Designated Mortgage Loan MERS as nominee for the beneficial owner to each
      Mortgage shall be retained thereby in trust, for the benefit of Buyer, for
      the sole purpose of facilitating the servicing and the supervision of the
      servicing of the Mortgage Loans. Nothing in this Master Repurchase
      Agreement shall preclude Buyer from engaging in repurchase transactions
      with the Purchased Mortgage Assets or otherwise pledging or hypothecating
      the Purchased Mortgage Assets without the prior consent of the Seller, but
      no such transaction or provision hereof or provision of the Second
      Restated Collateral Agency Agreement shall relieve Buyer of its
      obligations to transfer Purchased Mortgage Assets (and, with respect to
      the Mortgage Loans, the same Mortgage Loans and not substitutes therefor)
      to Seller pursuant and subject to Paragraphs 3, 4 or 11 hereof. Upon
      termination of any Transactions as set forth in Paragraph 3(c) of this
      Master Repurchase Agreement, Buyer agrees to execute promptly endorsements
      of the mortgage notes, assignments of the mortgages and UCC-3 assignments,
      releases or terminations related to such Transactions, to the extent that
      such documents are prepared by the Seller for Buyer's execution, are
      delivered to Buyer by the Seller and are necessary and appropriate, as
      reasonably determined by the Seller, to reconvey, without recourse, to the
      Seller and perfect title of like tenor to that conveyed to Buyer to the
      related Mortgage Loans. Buyer shall provide cooperation in assisting and
      directing the Collateral Agent to facilitate such preparation (without
      expense to Buyer).

            Notwithstanding anything to the contrary set forth in this Master
      Repurchase Agreement, in no event shall Purchased Mortgage Assets remain
      in the custody of the Seller or any affiliate of the Seller, except as
      permitted under the Second Restated Collateral Agency Agreement.

      Section 2.09. Substitution.

      Paragraph 9 of the Master Repurchase Agreement is amended by deleting the
existing Paragraph 9 in its entirety and replacing it with the following
language:

      (a) In the case of any Transaction for which the Repurchase Date is other
than the Business Day immediately following the Purchase Date and with respect
to which the Seller does not have any existing right to substitute substantially
the same Mortgage Assets for the Purchased Mortgage Assets, the Seller shall
have the right, subject to the proviso to this sentence, upon notice to Buyer,
which notice shall be given at or prior to noon (12:00 p.m.)

                                       29
<PAGE>

(New York time) on the preceding Business Day, to substitute substantially the
same Mortgage Assets for any Purchased Mortgage Assets; provided, however, that
Buyer, in its sole and absolute discretion, may elect, by the close of business
on the Business Day next following the Business Day on which notice is received
not to accept such substitution. In the event such substitution is accepted by
Buyer, such substitution shall be made by the Seller's transfer to Buyer of
additional Mortgage Assets, and after substitution, the substituted additional
Mortgage Loans shall be deemed to be Purchased Mortgage Assets. In the event
Buyer elects not to accept such substitution, Buyer shall offer the Seller the
right to terminate the Transaction. If the Seller elects to terminate such
Transaction (which election shall be made in writing within five (5) Business
Days of Buyer's offer to Seller of the right to terminate the transaction), the
date of termination will be determined in accordance with Paragraph 3(c) of the
Master Repurchase Agreement.

      (b) In the event the Seller exercises its right to substitute or terminate
pursuant to subparagraph (a), the Seller shall be obligated to pay to Buyer, by
the close of the Business Day of such substitution or termination, as the case
may be, an amount equal to (A) Buyer's actual cost (including all fees, expenses
and commissions) of (i) entering into replacement Transactions; and (ii)
entering into or terminating hedge transactions, (B) to the extent Buyer
determines not to enter into replacement Transactions, the loss incurred by
Buyer directly arising or resulting from such substitution or termination and
(C) in the case of the termination of any Transaction, the related Repurchase
Price for such Purchased Mortgage Assets. The foregoing amounts shall be
determined and calculated solely by Buyer on a commercially reasonable basis.

                                   ARTICLE III

                             CONDITIONS OF PURCHASES

      Section 3.01. Conditions Precedent to Any Purchase from the Seller.

      The initial Purchase of Mortgage Assets from the Seller hereunder is
subject to the conditions precedent that the Buyer shall have received on or
before the date of such Purchase the following, each (unless otherwise
indicated) dated such date, in form and substance reasonably satisfactory to the
Buyer:

      (a) Certified copies of the resolutions of the Board of Managers of the
Seller approving this Agreement and certified copies of all documents evidencing
other necessary corporate action and governmental approvals, if any, with
respect to this Agreement.

      (b) A certificate of the Secretary or Assistant Secretary of the Seller
certifying the names and true signatures of the officers of the Seller
authorized to sign this Agreement and the other documents to be delivered by it
hereunder.

      (c) Acknowledgment copies or time stamped receipt copies of financing
statements, if any, and any amendments thereto, in form acceptable for filing
and duly filed on or before the date of any Purchase hereunder, naming the
Seller as the seller/debtor and the Buyer as the buyer/secured party, or other
similar instruments or documents, as the Buyer may deem necessary or desirable
under the UCC of all appropriate jurisdictions or other applicable law to

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<PAGE>

perfect the Buyer's ownership of and security interest in the Transferred
Mortgage Assets and Mortgage Loan Collateral and Collections with respect
thereto.

      (d) Acknowledgment copies or time stamped receipt copies of financing
statements, if any, in form acceptable for filing and necessary to release all
security interests and other rights of any Person in the Transferred Mortgage
Assets and Mortgage Loan Collateral previously granted by the Seller.

      (e) Completed requests for information, dated on or before the date of any
Purchase hereunder, listing all effective financing statements filed in the
jurisdictions referred to in subsection (c) above that name the Seller as
debtor, together with copies of such other financing statements (none of which
shall cover any Transferred Mortgage Assets or Mortgage Loan Collateral).

      (f) A favorable opinion of Honigman Miller Schwartz and Cohn LLP, counsel
for the Seller, as to such matters as the Buyer may reasonably request.

      (g) Fully executed originals of the Second Restated Loan Agreement,
Restated Subordination Agreement, the Second Restated Collateral Agency
Agreement, and the Restated Performance Guaranties.

      Section 3.02. Conditions Precedent to All Purchases.

      Each Purchase hereunder shall be subject to the further conditions
precedent that:

      (a) prior to 12:00 noon (eastern time) on the Business Day prior to the
date of such Purchase, the Buyer and the Collateral Agent shall have received a
bill of sale and blanket assignment, in the form set forth in Exhibit B hereto,
and duly executed and delivered by the Seller, with respect to the Mortgage
Assets included in such Purchase;

      (b) the Principal Mortgage Documents with respect to each Mortgage Loan
included in such Purchase, other than Special Mortgage Loans, shall have been
physically delivered to the possession of the Collateral Agent; provided that if
such Purchase includes Special Mortgage Loans, the Collateral Value of such
Special Mortgage Loans plus the Collateral Value of all Special Mortgage Loans
then owned by the Buyer shall not exceed thirty percent (30%) of the Maximum
Facility Amount (as defined in the Second Restated Loan Agreement) at such time
and during the first five and last five Business Days of any month fifty percent
(50%) of the Maximum Facility Amount (as defined in the Second Restated Loan
Agreement) at such time.

      (c) Copies of the Take-Out Commitment Documents with respect to Conforming
Loans and Non-Conforming Loans shall have been delivered to the possession of,
or shall otherwise have been made available to, the Buyer or its assignee;

      (d) on the date of such Purchase the following statements shall be true
(and the Seller, by accepting the amount of such Purchase, shall be deemed to
have certified that):

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<PAGE>

            (1) The representations and warranties contained in Section 4.01 are
            correct in all material respects on and as of the date of such
            Purchase as though made on and as of such date,

            (2) No event has occurred and is continuing, or would result from
            such Purchase, that constitutes an Event of Default or would
            constitute a Default, and

            (3) The Buyer shall not have delivered to the Seller a notice that
            the Buyer shall not make any further Purchases hereunder.

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

      Section 4.01. Representations of the Seller.

      Paragraph 10 of the Master Repurchase Agreement is amended by deleting the
existing language in its entirety and replacing it with the following: The
Seller represents and warrants as follows:

      (a) Organization and Good Standing. It (i) is a limited liability company
duly formed and existing in good standing under the laws of the jurisdiction of
its formation, (ii) is duly qualified as a foreign limited liability company and
in good standing in all jurisdictions in which its failure to be so qualified
could have a Material Adverse Effect, (iii) has the corporate power and
authority to own its properties and assets and to transact the business in which
it is engaged and is or will be qualified in those states wherein it proposes to
transact business in the future and (iv) is in compliance with all Requirements
of Law, the failure to comply with which, individually or in the aggregate,
could have a Material Adverse Effect.

      (b) Authorization and Power. It has the corporate power and requisite
corporate authority to execute, deliver and perform this Agreement and the other
Transaction Documents to which it is a party; it is duly authorized to and has
taken all corporate action necessary to authorize it to, execute, deliver and
perform this Agreement and the other Transaction Documents to which it is a
party and is and will continue to be duly authorized to perform this Agreement
and such other Transaction Documents.

      (c) No Conflicts or Consents. Neither the execution and delivery by it of
this Agreement or the other Transaction Documents to which it is a party, nor
the consummation of any of the transactions herein or therein contemplated, nor
compliance with the terms and provisions hereof or with the terms and provisions
thereof, will (i) contravene or conflict with any Requirement of Law to which it
is subject, except where such contravention or conflict would not reasonably be
expected to have a Material Adverse Effect, or any indenture, mortgage, deed of
trust, or other agreement or instrument to which it is a party or by which it
may be bound, or to which its Property may be subject, except where such
contravention or conflict would not reasonably be expected to have a Material
Adverse Effect, or (ii) result in the creation or imposition of any Lien on the
Property of the Seller (other than the sale of the Transferred Mortgage Assets
as contemplated by this Agreement).

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<PAGE>

      (d) Enforceable Obligations. This Agreement and the other Transaction
Documents to which it is a party have been duly and validly executed by it and
are its legal, valid and binding obligations, enforceable in accordance with
their respective terms, except as limited by Debtor Laws.

      (e) Full Disclosure. There is no fact known to it that it has not
disclosed to the Buyer that could have a Material Adverse Effect. Neither its
financial statements nor any Purchase Request, officer's certificate or
statement delivered by it to the Buyer in connection with this Agreement,
contains or will contain any untrue statement of material fact or omits or will
omit to state a material fact necessary to make such information not misleading.

      (f) No Default. It is not in default under any loan agreement, mortgage,
security agreement or other material agreement or obligation to which it is a
party or by which any of its Property is bound, if such default would also be a
Default or an Event of Default under Section 11(v) of this Master Repurchase
Agreement.

      (g) Litigation.

               (i) Except as set forth on Schedule II to this Agreement, there
          are no actions, suits or proceedings, including arbitrations and
          administrative actions, at law or in equity, either by or before any
          Governmental Authority, now pending or, to its knowledge, threatened
          by or against it or any of its Subsidiaries, and pertaining to any
          Governmental Requirement affecting its Property or rights or any of
          its Subsidiaries that if determined adversely to the Seller could
          reasonably be expected to have a Material Adverse Effect.

               (ii) Neither it nor any of its Subsidiaries is in default with
          respect to any Governmental Requirements, which default could
          reasonably be expected to have a Material Adverse Effect.

               (iii) The Seller is not liable on any judgment, order or decree
          (or any series of judgments, orders, or decrees) having an aggregate
          liability or $100,000 or more that is not covered by insurance and
          that has not been paid, stayed or dismissed within 30 days.

      (h) Taxes. All tax returns required to be filed by it in any jurisdiction
have been filed and all taxes, assessments, fees and other governmental charges
upon it or upon any of its properties, income or franchises have been paid prior
to the time that such taxes could give rise to a Lien thereon, unless protested
in good faith by appropriate proceedings and with respect to which reserves in
conformity with GAAP have been established on its books, except where such
failure to file or pay would not reasonably be expected to have Material Adverse
Effect. It has no knowledge of any proposed tax assessment against it that would
have a Material Adverse Effect.

      (i) Indebtedness. If the Servicer is the Seller or an Affiliate thereof,
the Servicer is in compliance with the maximum leverage test set forth in
Section 5.22 of this Agreement.

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<PAGE>

      (j) Permits, Patents, Trademarks, Etc.

               (i) It has all permits and licenses necessary for the operation
          of its business, the absence of which would reasonably be expected to
          have a Material Adverse Effect.

               (ii) It owns or possesses (or is licensed or otherwise has the
          necessary right to use) all patents, trademarks, service marks, trade
          names and copyrights, technology, know-how and processes, and all
          rights with respect to the foregoing, that are necessary for the
          operation of its business without any known material conflict with the
          rights of others. The consummation of the transactions contemplated
          hereby will not alter or impair any of such rights.

      (k) Status Under Certain Federal Statutes. It is not (i) a "holding
company," or a "subsidiary company" of a "holding company" or an "affiliate" of
a "holding company," or of a "subsidiary company" of a "holding company," as
such terms are defined in the Public Utility Holding Company Act of 1935, as
amended, (ii) a "public utility," as such term is defined in the Federal Power
Act, as amended, (iii) an "investment company," or a company "controlled" by an
"investment company," within the meaning of the Investment Company Act of 1940,
as amended, or (iv) a "rail carrier," or a "person controlled by or affiliated
with a rail carrier," within the meaning of Title 49, U.S.C., and it is not a
"carrier" to which 49 U.S.C. Section 11301(b)(1) is applicable.

      (l) Securities Acts. It has not issued any unregistered securities in
violation of the registration requirements of the Securities Act of 1933, as
amended, or of any other Requirement of Law, and is not violating any rule,
regulation, or requirement under the Securities Act of 1933, as amended, or the
Securities and Exchange Act of 1934, as amended.

      (m) No Approvals Required. Other than consents and approvals previously
obtained and actions previously taken, neither the execution and delivery of
this Agreement and the other Transaction Documents to which it is a party, nor
the consummation of any of the transactions contemplated hereby or thereby
requires the consent or approval of, the giving of notice to, or the
registration, recording or filing by it of any document with, or the taking of
any other action in respect of, any Governmental Authority that has jurisdiction
over it or any of its Property.

      (n) Environmental Matters. There have been no past, and there are no
pending or threatened, claims, complaints, notices, or governmental inquiries
against it regarding any alleged violation of, or potential liability under, any
environmental laws that could reasonably be expected to have a Material Adverse
Effect. No conditions exist at, on or under any Property now or previously owned
or leased by it that could give rise to liability under any environmental law
that could reasonably be expected to have a Material Adverse Effect.

      (o) Eligibility. The Seller is approved and qualified and in good standing
as a lender or seller/servicer, as follows:

               (i) The Seller is a Fannie Mae approved seller/servicer (in good
          standing) of mortgage loans, eligible to originate, purchase, hold,
          sell and service mortgage loans to be sold to Fannie Mae.

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<PAGE>

               (ii) The Seller is a Freddie Mac approved seller/servicer (in
          good standing) of mortgage loans, eligible to originate, purchase,
          hold, sell and service mortgage loans to be sold to Freddie Mac.

               (iii) The Seller is an approved Ginnie Mae issuer (in good
          standing) of mortgage loans, eligible to originate, purchase, hold,
          sell and service mortgage loans to be pooled into Ginnie Mae MBS Pools
          and to issue Ginnie Mae MBS.

      (p) Principal Office, Etc. The principal office, chief executive office
and principal place of business of the Seller is at Englewood, Colorado.

      (q) Financial Condition. (i) The Seller has delivered to the Buyer (x)
copies of the consolidated balance sheet of Pulte, as of December 31, 2004, and
the related consolidated statements of income, stockholder's equity and cash
flows of Pulte for the year ended on such date, certified by independent
certified accountants of recognized national standing; and (y) copies of the
unaudited consolidated balance sheet for Pulte, as of June 30, 2005, and the
related statements of income, stockholder's equity and cash flows of Pulte for
the six (6) months ended on such date (the "Interim Statements") and all such
financial statements fairly present the financial condition of the Seller as of
their respective dates, subject, in the case of the Interim Statements, to
normal year end adjustments and the results of operations of the Seller for the
periods ended on such dates and have been prepared in accordance with GAAP.

               (i) As of the date thereof, there are no material obligations,
          liabilities or Indebtedness (including contingent and indirect
          liabilities and obligations or unusual forward or long-term
          commitments) of the Seller that are required to be reflected therein
          in accordance with GAAP and that are not reflected therein.

               (ii) No change that constitutes a Material Adverse Effect has
          occurred in the financial condition or business of the Seller since
          June 30, 2005.

      (r) Employee Benefit Plans. (i) No Employee Plan of the Seller or any
ERISA Affiliate has incurred an "accumulated funding deficiency" (as defined in
Section 302 of ERISA or Section 412 of the Code), (ii) neither the Seller nor
any ERISA Affiliate has incurred liability under ERISA to the PBGC, (iii)
neither the Seller nor any ERISA Affiliate has partially or fully withdrawn from
participation in a Multiemployer Plan, (iv) no Employee Plan of the Seller or
any ERISA Affiliate has been the subject of involuntary termination proceedings,
(v) neither the Seller nor any ERISA Affiliate has engaged in any "prohibited
transaction" (as defined in Section 406 of ERISA or Section 4975 of the Code),
and (vi) no "reportable event" (as defined in Section 4043 of ERISA) has
occurred in connection with any Employee Plan of the Seller or any ERISA
Affiliate other than events for which the notice requirement is waived under
applicable PBGC regulations.

      (s) Ownership. On the date of this Agreement, Pulte holds beneficial
ownership of 100% of the issued and outstanding shares of each class of the
stock of the Seller. The Seller is the owner of all of the issued and
outstanding shares of each class of stock of the Buyer.

      (t) Eligible Mortgage Assets. Each Mortgage Asset purported to be sold by
the Seller hereunder is an Eligible Mortgage Asset as of the date of such sale,
and each such

                                       35
<PAGE>

Mortgage Asset, together with the related Mortgage Loan Collateral, is owned
(immediately prior to its sale hereunder) by the Seller free and clear of any
Adverse Claim (other than any Adverse Claim arising solely as the result of any
action taken by the Buyer). When Buyer acquires a Transferred Mortgage Asset by
Purchase hereunder, it shall acquire good and marketable title to such
Transferred Mortgage Asset and the related Mortgage Loan Collateral and
Collections with respect thereto free and clear of any Adverse Claim (other than
any Adverse Claim arising solely as the result of any action taken by the
Buyer), and no effective financing statement or other instrument similar in
effect covering any Transferred Mortgage Asset, any interest therein, the
related Mortgage Loan Collateral or Collections with respect thereto is on file
in any recording office except such as may be filed in favor of Buyer in
accordance with this Agreement or in connection with any Adverse Claim arising
solely as the result of any action taken by the Buyer. In addition, with respect
to each Mortgage Loan sold to the Buyer that is subsequently sold to Freddie
Mac, the Seller hereby makes the representations and warranties set forth in the
Freddie Mac Selling Guide and the Seller's Master Agreement and Mortgage Loan
Purchase Agreement with Freddie Mac. In addition, with respect to each Mortgage
Loan sold to Buyer that is subsequently sold to Fannie Mae, the Seller hereby
makes the representations and warranties (collectively, the "Fannie Mae
Representations and Warranties") set forth in the Fannie Mae Selling and
Servicing Guides, the Mortgage Selling and Servicing Contract between the Seller
and Fannie Mae, and Master Agreement No. MDO2278 by and among Fannie Mae and the
Seller, as amended from time to time, and all subsequent master agreements
entered into by and among Fannie Mae and the Seller (collectively, the "Fannie
Mae Incorporated Documents") as though the Fannie Mae Representations and
Warranties were fully set forth herein. The Fannie Mae Incorporated Documents
are incorporated herein by reference as though fully set forth herein, and the
Fannie Mae Representations and Warranties shall survive the delivery of any
Mortgage Loan to Fannie Mae. Further, with respect to each Non-Conforming Loan,
the Seller hereby makes the representations and warranties set forth in the
related mortgage loan purchase agreement, seller/servicer guide or other similar
agreement with the applicable Approved Investor.

      (u) No Intent to Hinder Creditors. The transfers of Transferred Mortgage
Assets by the Seller to the Buyer pursuant to this Agreement, and all other
transactions between the Seller and the Buyer, have been and will be made in
good faith and without intent to hinder, delay or defraud creditors of the
Seller.

      (v) No Adverse Selection. No selection procedure was utilized by the
Seller in selecting the Transferred Mortgage Assets to be transferred to the
Buyer hereunder which the Seller reasonably believes to be adverse to the
interests of the Buyer.

      (w) Trade Names. Except as set forth on Schedule I hereto, the Seller is
neither known by nor uses any trade name or doing-business as name.

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<PAGE>

                                   ARTICLE V

                                    COVENANTS

      Section 5.01.

      The Seller shall at all times comply with the covenants contained in this
Article V, from the date hereof until the later of the Facility Termination Date
and the date all of the Obligations are paid in full.

      Section 5.02. Financial Statements and Reports.

      The Seller shall furnish to the Buyer the following, all in form and
detail reasonably satisfactory to the Buyer:

      (a) promptly after becoming available, and in any event within 120 days
after the close of each fiscal year of the Seller and Pulte, the audited
consolidated balance sheet of Seller and Pulte as of the end of such fiscal
year, and the related statements of income, stockholders' and members' equity
and cash flows of the Seller and Pulte for such year accompanied by (i) the
related report of independent certified public accountants which report shall be
to the effect that such statements have been prepared in accordance with GAAP
applied on a basis consistent with prior periods except for such changes in such
principles with which the independent public accountants shall have concurred
and (ii) if issued, the auditor's letter or report to management customarily
given in connection with such audit;

      (b) promptly after becoming available, and in any event within 60 days
after the end of each fiscal quarter, excluding the fourth fiscal quarter of
each fiscal year of the Seller and Pulte, the unaudited consolidated balance
sheet for Pulte as of the end of such fiscal quarter and the related statements
of income, stockholders' and members' equity and cash flows of each of Pulte for
such fiscal quarter and the period from the first day of the then current fiscal
year of the Seller and Pulte through the end of such fiscal quarter, and, in the
case of those financial statements of the Seller, certified by a Financial
Officer of Seller, to have been prepared in accordance with GAAP applied on a
basis consistent with prior periods, subject to normal year-end adjustments;

      (c) promptly and in any event within twenty (20) days after the request of
the Buyer at any time and from time to time, a certificate, executed by the
president or chief financial officer of the Seller, setting forth all of the
Seller's warehouse borrowings and a description of the collateral related
thereto; provided that, as long as not Event of Default has occurred and is
continuing, such request may be made no more frequently than annually;

      (d) no later than 11:00 a.m. (eastern time) on the fifteenth day of each
month and within twenty (20) days after request by the Buyer, a report executed
by a Financial Officer of the Seller, in form reasonably satisfactory to the
Buyer ("Seller Report") which shall provide as of the last day of the previous
month (or of the date of such request) (i) an aging of mortgage loans owned by
the Buyer, and (ii) such other information as the Buyer may reasonably request;

                                       37
<PAGE>

      (e) promptly after the filing or receiving thereof, copies of all reports
and notices with respect to any "reportable event" defined in Article IV of
ERISA that the Seller files under ERISA with the Internal Revenue Service, the
PBGC or the U.S. Department of Labor receives from the PBGC;

      (f) immediately after becoming aware of the expiration, forfeiture,
termination, or cancellation of, or default under, any Take-Out Commitment,
telephone notice thereof confirmed in writing within one Business Day, together
with a statement as to what action the Buyer proposes to take with respect
thereto; provided that no such notice need be given if such Take-Out Commitment,
is replaced by another Take-Out Commitment;

      (g) with respect to Take-Out Commitments, by noon (eastern time) on the
first Business Day of each week, a Hedge Report;

      (h) at least ten Business Days prior to any change in a Seller's name, a
notice setting forth the new name and the effective date thereof; and

      (i) such other information concerning the business, properties or
financial condition of the Seller as the Buyer may reasonably request.

      Section 5.03. Taxes and Other Liens.

      The Seller shall pay and discharge promptly all taxes, assessments and
governmental charges or levies imposed upon it or upon its income or upon any of
its Property as well as all claims of any kind (including claims for labor,
materials, supplies and rent) that, if unpaid, might become a Lien upon any or
all of its Property; provided, however, the Seller shall not be required to pay
any such tax, assessment, charge, levy or claim if the amount, applicability or
validity thereof shall currently be contested in good faith by appropriate
proceedings diligently conducted by it or on its behalf and if it shall have set
up reserves therefor adequate under GAAP.

      Section 5.04. Maintenance.

      The Seller shall (i) maintain its corporate existence, rights and
franchises and (ii) observe and comply in all material respects with all
Governmental Requirements.

      Section 5.05. Further Assurances.

      (a) The Seller agrees from time to time, at its expense, promptly to
execute and deliver all further instruments and documents, and to take all
further actions, that may be necessary or reasonably desirable, or that the
Buyer or its assignee may reasonably request, to perfect, protect or more fully
evidence the sale of Mortgage Assets under this Agreement, or to enable the
Buyer or its assignee to exercise and enforce its respective rights and remedies
under this Agreement. Without limiting the foregoing, the Seller will, upon the
reasonable request of the Buyer or its assignee, (i) execute and file such
financing or continuation statements, or amendments thereto, and such other
instruments and documents, that may be necessary or desirable to perfect,
protect or evidence such Transferred Mortgage Assets; and (ii) deliver to the
Buyer and/or the Collateral Agent copies of all Mortgage Loan Collateral
relating to the

                                       38
<PAGE>

Transferred Mortgage Assets and all records relating thereto, whether in hard
copy or in magnetic tape or diskette format.

      (b) The Seller authorizes the Buyer or its assignee to file financing or
continuation statements, and amendments thereto and assignments thereof,
relating to the Transferred Mortgage Assets, the related Mortgage Loan
Collateral and the Collections with respect thereto without the signature of the
Seller where permitted by law. A photocopy or other reproduction of this
Agreement shall be sufficient as a financing statement where permitted by law.

      Section 5.06. Insurance.

      (a) The Seller shall maintain with financially sound and reputable
insurers, insurance with respect to its Properties and business against such
liabilities, casualties, risks and contingencies and in such types and amounts
as is customary in the case of Persons engaged in the same or similar businesses
and similarly situated, including, without limitation, a fidelity bond or bonds
in form and with coverage and with a company reasonably satisfactory to the
Buyer and with respect to such individuals or groups of individuals as the Buyer
may reasonably designate.

      (b) The Seller for so long as it is the Servicer of the Transferred
Mortgage Assets shall use its best efforts to cause (i) all improvements on the
land covered by each Mortgage related to any Transferred Mortgage Assets to be
insured by responsible insurance companies against fire and extended coverage
hazards under policies, binders, letters, or certificates of insurance, with a
standard mortgagee clause in favor of the original mortgagee and its successors
and, and (ii) each such policy to be in an amount equal to the lesser of the
maximum insurable value of the improvements or the original principal amount of
the Mortgage, without reduction by reason of any co-insurance, reduced rate
contribution, or similar clause of the policies or binders.

      (c) In the event that the Seller shall obtain and maintain a blanket
policy issued by an issuer that has a Best rating acceptable to Fannie Mae
insuring against hazard losses on all of the Mortgage Loans, then, to the extent
such policy provides coverage in an amount equal to the amount required pursuant
to Section 5.05(b) and otherwise complies with all other requirements of Section
5.05(b), it shall conclusively be deemed to have satisfied its obligations as
set forth in Section 5.05(b), it being understood and agreed that such policy
may contain a deductible clause, in which case the Seller shall, in the event
that there shall not have been maintained on the related mortgaged property a
policy complying with Section 5.05(b), and there shall have been a loss which
would have been covered by such policy, deposit in the Collection Account the
amount not otherwise payable under the blanket policy because of such deductible
clause. In connection with its activities as servicer of the Mortgage Loans, the
Seller agrees to prepare and present, on behalf of the Buyer, claims under any
such blanket policy in a timely fashion in accordance with the terms of such
policy. Upon request of the Buyer or its assigns, the Seller shall cause to be
delivered to the Buyer or its assigns a certified true copy of such policy and
shall use its best efforts to obtain a statement from the insurer thereunder
that such policy shall in no event be terminated or materially modified without
thirty days' prior written notice to the Buyer or its assigns.

                                       39
<PAGE>

      Section 5.07. Accounts and Records.

      The Seller shall keep books of record and account in which full, true and
correct entries will be made of all dealings or transactions in relation to its
business and activities, in accordance with GAAP. The Seller shall maintain and
implement administrative and operating procedures (including, without
limitation, an ability to re-create all records pertaining to the performance of
the Seller's obligations under the Take-Out Commitments and other agreements
made with reference to any Mortgage Loans in the event of the destruction of the
originals of such records). The Seller will keep and maintain all servicing
records, pursuant to all Governmental Requirements and as required by all
Approved Investors.

      Section 5.08. Right of Inspection.

      The Seller shall permit any officer, employee or agent of the Buyer or its
assignee to visit and inspect any of its Properties, examine its books of record
and accounts, and discuss its affairs, finances and accounts with its officers,
accountants and auditors, all at such times during reasonable business hours and
as often as the Buyer or its assignee may desire upon prior notice, provided,
however, that (i) except during the continuation of an Event of Default, such
inspections and examinations may be performed only once annually, and (ii) such
inspections and examinations shall be conducted in a manner that does not
interfere with the normal operations of the Seller.

      Section 5.09. Notice of Certain Events.

      The Seller shall promptly notify the Buyer upon (i) any dispute between
the Seller and any Governmental Authority or any other Person that, if adversely
determined, would have a Material Adverse Effect; (ii) any material adverse
change in the business, operations or financial condition of the Seller,
including, without limitation, the Seller's insolvency; (iii) any event or
condition known to it that, if adversely determined, would have a Material
Adverse Effect; (iv) the receipt of any notice from, or the taking of any other
action by any Approved Investor indicating an intent not to honor, or claiming a
default under a Take-Out Commitment, together with a detailed statement by a
responsible officer of the Seller specifying the notice given or other action
taken by such Approved Investor and the nature of the claimed default and what
action the Seller is taking or proposes to take with respect thereto, (v) the
receipt of any notice from, and or the taking of any action by any Governmental
Authority indicating an intent to cancel the Seller's right to be either a
seller or servicer of such Governmental Authority's insured or guaranteed
Mortgage Loans and (vi) the receipt of any notice of any final judgment or order
for payment of money applicable to the Seller in excess of $1,000,000.

Section 5.10.  Performance of Certain Obligations.

      The Seller shall perform and observe in all material respects each of the
provisions of each Mortgage Loan transferred hereunder and the related Take-Out
Commitment on its part to be performed or observed and will cause all things to
be done that are necessary to have each item of the Transferred Mortgage Assets
comply with the requirements of the related Take-Out Commitment.

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<PAGE>

      Section 5.11. Notice of Default.

      The Seller shall furnish to the Buyer immediately upon becoming aware of
the existence of any Default or Event of Default, a written notice specifying
the nature and period of existence thereof and the action that the Seller is
taking or proposes to take with respect thereto.

      Section 5.12. Compliance with Laws and Material Agreements.

      The Seller shall comply with (a) all applicable laws, rules, regulations
and orders, and (b) material agreements, indentures, mortgages and corporate
documents, except to the extent that the failure so to comply would not be
reasonably expected to have a Material Adverse Effect.

      Section 5.13. Deposits of Proceeds.

      The Seller shall not deposit or otherwise credit, or cause or permit to be
so deposited or credited, to the Collection Account, cash or cash proceeds other
than payments in respect of Take-Out Commitments and other Collections of
Transferred Mortgage Assets.

      Section 5.14. Closing Instructions.

      The Seller agrees to indemnify and hold the Buyer and its assignee
harmless from and against any loss, including attorneys' fees and costs,
attributable to the failure of a title insurance company, agent or approved
attorney to comply with the disbursement or instruction letter or letters of the
Seller relating to any Mortgage Loan included in the Transferred Mortgage
Assets.

      Section 5.15. Special Affirmative Covenants Concerning Transferred
Mortgage Assets.

      (a) The Seller shall service or cause to be serviced pursuant to the
Second Restated Loan Agreement all Mortgage Loans sold by it and included in the
Transferred Mortgage Assets in accordance with the standard requirements of the
issuers of Take-Out Commitments covering the same and all applicable Fannie Mae
or Freddie Mac requirements, including without limitation taking all actions
necessary to enforce the obligations of the Obligors under such Mortgage Loans.
The Seller shall hold all escrow funds collected in respect of Mortgage Loans,
without commingling the same with any other non-escrow funds, and apply the same
for the purposes for which such funds were collected.

      (b) The Seller shall, no less than on an annual basis, review financial
statements, compliance with financial parameters, Fannie Mae/Freddie Mac
approvals (if applicable) and state licenses of all Persons from whom the Seller
acquires Mortgage Loans.

      Section 5.16. Limitations on Mergers and Dissolutions.

      The Seller shall not (i) merge or consolidate with or into any corporation
or limited liability company or other entity, unless the Seller is the surviving
entity of any such merger or consolidation nor (ii) liquidate or dissolve.

                                       41
<PAGE>

      Section 5.17. Fiscal Year.

      The Seller shall not change its fiscal year other than to conform with
changes that may be made to the Pulte fiscal year and then only after notice to
the Buyer and after whatever reasonable amendments are made to this Agreement as
may be required by the Buyer in order that the reporting criteria for the
financial covenants contained in this Article V remain substantially unchanged.

      Section 5.18. Actions with Respect to Transferred Mortgage Assets. The
Seller shall not:

      (a) Compromise, extend, release, or adjust payments on any Transferred
Mortgage Loan, accept a conveyance of mortgaged Property in full or partial
satisfaction of any Mortgage debt or release any Mortgage securing or underlying
any Transferred Mortgage Loan except as permitted by the related Approved
Investor or as contemplated in the servicing guidelines distributed thereby; or

      (b) Agree to the amendment or termination of any Take-Out Commitment in
which the Buyer has an interest or to substitution of a Take-Out Commitment for
a Take-Out Commitment in which the Buyer has an interest hereunder.

      Section 5.19. Net Worth.

      The Seller's Net Worth shall never be less than $30,000,000.

      Section 5.20. Employee Benefit Plans.

      The Seller shall not permit any of the events or circumstances described
in Section 4.01(r) to exist or occur.

      Section 5.21. Change of Principal Office.

      The Seller shall not move its principal office, executive office or
principal place of business from the address set forth in Section 4.01(p)
without 30-days' prior written notice to the Buyer.

      Section 5.22. Maximum Leverage.

      The Seller shall not permit its Adjusted Liabilities to exceed 12 times
its Adjusted Net Worth.

      Section 5.23. Delivery of Special Mortgage Loans.

      The Seller shall deliver to the Collateral Agent, within nine (9) Business
Days after the earlier of the date of transfer hereunder of any Special Mortgage
Loan from the Seller or, if different, the date of origination of such Special
Mortgage Loan, the Principal Mortgage Documents relating to such Special
Mortgage Loan; provided that at any time, except the first five and last five
Business Days of any month, the portion of total Collateral Value that may be

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<PAGE>

attributable to Special Mortgage Loans with respect to which the related
Principal Mortgage Documents have not been delivered to the Collateral Agent
within nine (9) Business Days after the date the Assignment was delivered to the
Collateral Agent, shall not exceed thirty percent (30%) of the Maximum Facility
Amount (as defined in the Second Restated Loan Agreement) at such time and
during the first five and last five Business Days of any month, the portion of
total Collateral Value that may be attributable to Special Mortgage Loans with
respect to which the related Principal Mortgage Documents have not been
delivered to the Collateral Agent within nine (9) Business Days after the date
the Assignment was delivered to the Collateral Agent shall not exceed fifty
percent (50%) of the Maximum Facility Amount (as defined in the Second Restated
Loan Agreement) at such time.

      Section 5.24. Change in Business.

      The Seller will not make any change in the character of its business that
would adversely affect the collectability of the Transferred Mortgage Assets or
the ability of the Seller to perform its obligations under this Agreement.

      Section 5.25. Separate Conduct of Business.

      The Seller will: (i) maintain separate corporate records and books of
account from those of the Buyer; (ii) conduct its business from an office
separate from that of the Buyer; (iii) ensure that all oral and written
communications, including, without limitation, letters, invoices, purchase
orders, contracts, statements and applications, will be made solely in its own
name; (iv) have stationery and other business forms separate from those of the
Buyer; (v) not hold itself out as having agreed to pay, or as being liable for,
the obligations of the Buyer; (vi) not engage in any transaction with the Buyer
except as contemplated by this Agreement or as permitted by the Second Restated
Loan Agreement; (vii) continuously maintain as official records the resolutions,
agreements and other instruments underlying the transactions contemplated by
this Agreement; and (viii) disclose on its annual financial statements (A) the
effects of the transactions contemplated by this Agreement in accordance with
GAAP and (B) that the assets of the Buyer are not available to pay the creditors
of the Seller.

      Section 5.26. Sales, Liens, Etc.

      Except for the sales of Transferred Mortgage Assets contemplated herein,
the Seller will not sell, assign (by operation of law or otherwise) or otherwise
dispose of, or create or suffer to exist any Adverse Claim upon or with respect
to, any Transferred Mortgage Asset or Mortgage Loan Collateral, or Collections
related thereto, or upon or with respect to any account to which any Collections
of any Transferred Mortgage Assets are sent, or assign any right to receive
income in respect thereof.

      Section 5.27. Operations and Properties.

      The Seller shall act prudently and in accordance with customary industry
standards in managing and operating its Property and shall continue to
underwrite, hedge and sell Mortgage Loans in the same diligent manner it has
applied in the past and take no greater credit or market risks than are
currently being borne by it.

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<PAGE>

      Section 5.28. Performance Guarantor Credit Rating.

      If at any time any of the senior debt of the Performance Guarantor, which
is publicly held, shall fail to bear a rating of at least BBB- by S&P, Ba1 by
Moody's or BBB-by Fitch, the Seller shall give the Buyer or its assigns written
notice of such change in rating, within two Business Days of the date on which
such change is announced by either of these rating agencies.

      Section 5.29. Take-Out Commitments.

      The Seller shall use its best efforts to obtain, and maintain in full
force and effect, Take-Out Commitments reflecting total Approved Investor
obligations, as of each determination, equal to the total of the original
principal balances of the Seller's entire portfolio of Mortgage Loans. Each of
such Take-Out Commitments shall reflect only those terms and conditions as are
permitted hereunder or are acceptable to the Administrative Agent. The Seller
shall use its best efforts to obtain, and maintain in full force and effect,
forward purchase commitments (which may include options to sell Mortgage Loans
to Approved Investors, so long as the Approved Investor is bound thereby) issued
by Approved Investors and obligating such Approved Investors to purchase a
portion of the Seller's subsequently acquired Mortgage Loans.

      Section 5.30. Environmental Compliance.

      The Seller shall use and operate all of its facilities and properties in
compliance with all environmental laws, keep all necessary permits, approvals,
certificates, licenses and other authorizations relating to environmental
matters in effect and remain in compliance therewith, and handle all hazardous
materials in compliance with all applicable environmental laws, except where
failure to so comply would not reasonably be expected to have a Material Adverse
Effect.

                                   ARTICLE VI

                                    COVENANTS

      Section 6.01. Servicing.

      So long as the Second Restated Loan Agreement remains in effect, the
servicing, administration and collection of the Transferred Mortgage Assets will
be conducted by the Person designated as the Servicer pursuant to the Second
Restated Loan Agreement and in the manner provided in the Second Restated Loan
Agreement. If the Second Restated Loan Agreement is terminated, the parties
hereto agree to enter into a servicing arrangement on terms substantially
similar to those contained in the Second Restated Loan Agreement. The parties
acknowledge that the Seller has been designated as the initial Servicer pursuant
to the terms and provisions of the Second Restated Loan Agreement.

      Section 6.02. Correction of Mortgage Notes.

      The Buyer may from time to time request, in writing, that the Collateral
Agent deliver a Mortgage Note that constitutes Transferred Mortgage Assets so
that such Mortgage Note may be replaced by a corrected Mortgage Note. Upon
receipt by the Collateral Agent of such a request, and so long as no Default or
Event of Default shall be in existence, the Collateral Agent is

                                       44
<PAGE>

permitted to deliver to the Buyer or the Servicer the Mortgage Note to be
corrected, such delivery to be conditioned upon the receipt by the Collateral
Agent of a corrected Mortgage Note acceptable to it within 14 calendar days
after such delivery; provided, that at no time shall the Collateral Value of
Mortgage Notes which have been so delivered and have not been replaced with
corrected Mortgage Notes hereunder exceed $5,000,000. If the corrected Mortgage
Note is not received within such time, then, beginning on the first Business Day
following such fourteenth calendar day, the Collateral Agent shall assign such
Mortgage Loan a Collateral Value of zero.

                                  ARTICLE VII

                                EVENTS OF DEFAULT

      Section 7.01. Events of Default.

      (a) Section 11 is amended by deleting such Section in its entirety and
substituting the following therefor:

            (i) the Seller fails to make (A) any payment required under Section
      2.03 or 2.04 by the day that such payment is due, or (B) payment of any
      cost, expense, indemnity payment or other amount due hereunder, and such
      failure continues for five Business Days after written notice thereof; or,
      while the Seller is acting as the Servicer, the Servicer fails to make any
      payment or deposit to be made by it under this Agreement or the Master
      Repurchase Agreement by the third Business Day after the date such payment
      is due; or

            (ii) the Seller or, while the Seller is acting as the Servicer, the
      Servicer fails to keep or perform any covenant or agreement contained in
      this Agreement or the Master Repurchase Agreement (other than as referred
      to in clause (i) above) and such failure continues unremedied beyond the
      expiration of any applicable grace or notice period which may be expressly
      provided for in such covenant or agreement, or, if no such period is
      specified, within thirty (30) days after written notice thereof; or

            (iii) [Intentionally Deleted]

            (iv) any statement, warranty or representation by or on behalf of
      the Seller contained in this Agreement or the Master Repurchase Agreement
      or any Purchase Request, officer's certificate or other writing furnished
      in connection with this Agreement, proves to have been incorrect or
      misleading in any material respect as of the date made or deemed made,
      provided that a breach of a representation or covenant that affects an
      individual Mortgage Loan shall not constitute an Event of Default; or

            (v) (i) the Seller, the Servicer (so long as the Servicer and the
      Seller are the same entity) or the Performance Guarantor fails to make
      when due or within any applicable grace period any payment on any other
      Indebtedness with an unpaid principal balance of over $1,000,000.00
      ($10,000,000 with respect to the Performance Guarantor); or (ii) any event
      or condition occurs under any provision contained in any such obligation
      or any agreement securing or relating to such obligation (or any other
      breach or default

                                       45
<PAGE>

      under such obligation or agreement occurs) if the effect thereof is to
      cause or permit with the giving of notice or lapse of time or both the
      holder or trustee of such obligation to cause such obligation to become
      due prior to its stated maturity; or (iii) any such obligation becomes due
      (other than by regularly scheduled payments) prior to its stated maturity;
      or (iv) any of the foregoing occurs with respect to any one or more items
      of Indebtedness of the Seller, the Servicer (so long as the Servicer and
      the Seller are the same entity) or the Performance Guarantor with unpaid
      principal balances exceeding, in the aggregate, $1,000,000.00 ($10,000,000
      with respect to the Performance Guarantor); or

            (vi) any Purchase of Mortgage Assets hereunder and the Mortgage Loan
      Collateral and the Collections with respect thereto shall for any reason
      cease to constitute valid and perfected ownership of such Mortgage Assets,
      Mortgage Loan Collateral and Collections free and clear of any Adverse
      Claim and the Seller fails to repurchase such Mortgage Assets pursuant to
      Section 2.04; or

            (vii) the Seller shall generally not pay its debts as they become
      due, or shall admit in writing its inability to pay its debts, or shall
      make a general assignment for the benefit of creditors; or

            (viii) the Seller shall (A) apply for or consent to the appointment
      of a receiver, trustee, Collateral Agent, intervenor or liquidator of it
      or of all or a substantial part of its assets, (B) file a voluntary
      petition in bankruptcy, (C) file a petition or answer seeking
      reorganization or an arrangement with creditors or to take advantage of
      any Debtor Laws, (D) file an answer admitting the material allegations of,
      or consent to, or default in answering, a petition filed against it in any
      bankruptcy, reorganization or insolvency proceeding, or (E) take corporate
      action for the purpose of effecting any of the foregoing; or

            (ix) an involuntary petition or complaint shall be filed against
      the Seller seeking bankruptcy or reorganization of the Seller or the
      appointment of a receiver, custodian, trustee, intervenor or liquidator of
      the Seller, or all or substantially all of the assets of the Seller, and
      such petition or complaint shall not have been dismissed within 60 days of
      the filing thereof; or an order, order for relief, judgment or, decree
      shall be entered by any court of competent jurisdiction or other competent
      authority approving a petition or complaint seeking reorganization of the
      Seller or appointing a receiver, custodian, trustee, intervenor or
      liquidator of the Seller, or of all or substantially all of assets of the
      Seller; or

            (x) an Event of Default shall have occurred under the Second
      Restated Loan Agreement;

(each of the foregoing, an "Event of Default") then, and in any such event, the
Buyer may, by notice to the Seller, take either or both of the following
actions: (A) declare the Facility Termination Date to have occurred (in which
case the Facility Termination Date shall be deemed to have occurred) and (B)
subject to the provisions of the Second Restated Loan Agreement, designate
another Person to succeed the Seller as Servicer (without payment of any
servicer

                                       46
<PAGE>

termination fees); provided, that, automatically upon the occurrence of any
event (without any requirement for the passage of time or the giving of notice)
described in paragraph (vii), (viii) or (ix) of this Paragraph 11(a), the
Facility Termination Date shall occur. Upon any such declaration or designation
or upon such automatic termination, the Buyer shall have, in addition to the
rights and remedies under this Agreement, all other rights and remedies with
respect to the Transferred Mortgage Assets provided after default under the UCC
and under other applicable law, which rights and remedies shall be cumulative.

      (b) The parties hereto recognize that the Seller's obligations to Buyer
under this Agreement and the Master Repurchase Agreement are special, unique and
of extraordinary character. If an Event of Default occurs hereunder, the Seller
agrees that Buyer may enforce this Agreement and the Master Repurchase Agreement
by a proceeding for specific performance or other equitable remedy including,
without limitation, a proceeding in which replevin or injunction is sought by
Buyer. The Seller hereby waives to the fullest extent permitted by law any and
all rights it may have by statute, constitution or otherwise, to (i) assert the
defense of adequacy of a remedy at law that might be asserted as a bar to such
proceeding, and (ii) the fixing, imposition or posting of a bond or other
security by Buyer as a condition to obtaining any equitable relief sought by
Buyer, which relief the Seller further agrees may be obtained ex parte without
prior notice to the Seller provided a hearing is substantially provided Seller
within a reasonable time after any ex parte relief may be granted Buyer. Seller
further agrees that the rights and remedies hereunder are cumulative, and are
not exclusive of any rights, powers, privileges, or remedies, now or thereafter
existing, at law, or in equity or otherwise.

      Section 7.02. Remedies.

      (a) If an Event of Default occurs with respect to the Seller, the
following rights and remedies are available to the Buyer:

            (i) At the option of the Buyer, exercised by written notice to the
      Seller (which option shall be deemed to have been exercised, even if no
      notice is given, immediately upon the occurrence of an Act of Insolvency),
      the Repurchase Date for each Transaction hereunder shall be deemed
      immediately to occur.

            (ii) If the Buyer exercised or is deemed to have exercised the
      option referred to in subsection (a)(i) of this Section:

                  (A)   the Seller's obligations hereunder to repurchase all
                        Purchased Mortgage Assets in such Transactions shall
                        thereupon become immediately due and payable, and

                  (B)   to the extent permitted by applicable law, the
                        Repurchase Price with respect to each such Transaction
                        shall be increased by the aggregate amount obtained by
                        daily application of, on a 360 day per year basis for
                        the actual number of days during the period from and
                        including the date of the exercise or deemed exercise of
                        such option to but excluding the date of payment of the
                        Repurchase Price as so increased, (x) the greater of the
                        Prime Rate or the

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<PAGE>

                        Pricing Rate for each such Transaction to (y) the
                        Repurchase Price for such Transaction as of the
                        Repurchase Date as determined pursuant to subsection
                        (a)(i) of this Section (decreased as of any day by (I)
                        any proceeds from the sale of Purchased Mortgage Assets
                        applied to the Repurchase Price pursuant to subsection
                        (a)(iii) of this Section, and (II) any amounts applied
                        to the Repurchase Price pursuant to subsection (a)(iii)
                        of this Section).

      (iii) The Buyer may (A) immediately sell, without notice or demand of any
            kind, at a public or private sale and at such price or prices as the
            Buyer may reasonably deem satisfactory any or all Mortgage Assets
            subject to a Transaction hereunder or (B) in its sole discretion
            elect, in lieu of selling all or a portion of such Purchase Assets,
            to give the Seller credit for such Purchase Assets in an amount
            equal to the Collateral Value of the Purchased Mortgage Assets
            against the aggregate unpaid Repurchase Price and any other amounts
            owing by the Seller hereunder. The proceeds of any disposition of
            Purchased Mortgage Assets shall be applied first to the costs and
            expenses incurred by the Buyer in connection with the defaulting
            Seller's default; second to Buyer's costs (including fees and
            expenses of counsel to Buyer) of cover and/or related hedging or
            similar transactions (including any transaction described in
            paragraph 8 of the Master Repurchase Agreement); third to the
            Repurchase Price; and fourth to any other outstanding obligation of
            the Seller to the Buyer or its affiliates.

      (iv)  The parties recognize that it may not be possible to purchase or
            sell all of the Purchased Mortgage Assets on a particular Business
            Day, or in a transaction with the same purchaser, or in the same
            manner because the market for such Purchased Mortgage Assets may not
            be liquid. In view of the nature of the Purchased Mortgage Assets,
            the parties agree that liquidation of a Transaction or the
            underlying Purchased Mortgage Assets does not require a public
            purchase or sale and that a good faith private purchase or sale
            shall be deemed to have been made in a commercially reasonable
            manner. Accordingly, Buyer may elect, in its sole discretion, the
            time and manner of liquidating any Purchased Mortgage Assets and
            nothing contained herein shall (A) obligate Buyer to liquidate any
            Purchased Mortgage Assets on the occurrence of an Event of Default
            or to liquidate all Purchased Mortgage Assets in the same manner or
            on the same Business Day or (B) constitute a waiver of any right or
            remedy of Buyer. However, in recognition of the parties' agreement
            that the Transactions hereunder have been entered into in
            consideration of and in reliance upon the fact that all Transactions
            hereunder constitute a single business and contractual relationship
            and that each Transaction has been entered into in consideration of
            the other Transactions, the parties further agree that Buyer shall
            use its best efforts to liquidate all Transactions hereunder upon
            the occurrence of an Event of Default as quickly as is prudently
            possible in the good faith judgment of Buyer.

      (v)   Buyer shall, without regard to the adequacy of the security for the
            Seller's obligations under this Agreement and the Master Repurchase
            Agreement, be entitled to the appointment of a receiver by any court
            having jurisdiction, without

                                       48
<PAGE>

             notice, to take possession of and protect, collect, manage,
             liquidate, and sell the Purchased Mortgage Assets or any portion
             thereof, and collect the payments due with respect to the Purchase
             Assets or any portion thereof. The Seller shall pay all costs and
             expenses incurred by Buyer in connection with the appointment and
             activities of such receiver.

      (vi)   Buyer shall have all the rights and remedies provided herein,
             provided by applicable federal, state, foreign, and local laws
             (including, without limitation, the rights and remedies of a
             security party under the Uniform Commercial Code of the State of
             New York, to the extent that the Uniform Commercial Code is
             applicable, and the right to offset any mutual debt and claim), in
             equity, and under any other agreement between Buyer and the Seller.

      (vii)  Buyer may exercise one or more of the remedies available to Buyer
             immediately upon the occurrence of an Event of Default and, except
             to the extent provided in subsections (a)(i) and (iii) of this
             Section, at any time thereafter without notice to the Seller. All
             rights and remedies arising under this Agreement and the Master
             Repurchase Agreement as amended from time to time hereunder are
             cumulative and not exclusive of any other rights or remedies which
             Buyer may have.

      (viii) In addition to its rights hereunder, Buyer shall have the right to
             proceed against any assets of Seller which may be in the possession
             of Buyer or its designee (including the Custodian), including the
             right to liquidate such assets and to set off the proceeds against
             monies owed by the Seller to Buyer pursuant to this Agreement and
             the Master Repurchase Agreement. Buyer may set off cash, the
             proceeds of the liquidation of the Purchased Mortgage Assets or
             proceeds thereof, and all other sums or obligations owed by the
             Seller to Buyer against all of Seller's obligations to Buyer,
             whether under this Agreement and the Master Repurchase Agreement,
             under a Transaction, or under any other agreement between the
             parties, or otherwise, whether or not such obligations are then
             due, without prejudice to Buyer's rights to recover any deficiency.
             Any cash, proceeds, or property in excess of any amounts due, or
             which Buyer reasonably believes may become due, to it from the
             Seller shall be returned to the Seller after satisfaction of all
             obligations of Seller to Buyer.

      (ix)   Buyer may enforce its rights and remedies hereunder without prior
             judicial process or hearing, and the Seller hereby expressly waives
             any defense the Seller might otherwise have to require Buyer to
             enforce its rights by judicial process. The Seller also waives any
             defense the Seller might otherwise have arising from the use of
             nonjudicial process, enforcement and sale of all or any portion of
             the Repurchase Items, or from any other election of remedies. The
             Seller recognizes that nonjudicial remedies are consistent with the
             usages of the trade, are responsive to commercial necessity and are
             the result of a bargain at arm's length.

      (x)    Notwithstanding anything to the contrary herein, the Buyer shall
             have no right to proceed against any assets of the Seller other
             than the Purchased Mortgage Assets in the event of a default in the
             Seller's obligation to repurchase any Purchased Mortgage

                                       49
<PAGE>

            Assets pursuant to Section 3(b) or 3(c) of the Master Repurchase
            Agreement, as modified by this Agreement. Such obligation of the
            Seller to repurchase Purchased Mortgage Assets pursuant to Section
            3(b) and 3(c) of the Master Repurchase Agreement, as modified by
            this Agreement, shall be recourse solely to the Purchased Mortgage
            Assets, in the aggregate, and the Seller shall have no obligation in
            respect of any deficiencies. By contrast, the Seller's obligation to
            repurchase Purchased Mortgage Assets pursuant to Section 2.5
            hereunder shall be recourse to the assets of the Seller.

                                  ARTICLE VIII

                                 INDEMNIFICATION

      Section 8.01. Indemnities by the Seller.

      Without limiting any other rights which the Buyer may have hereunder or
under applicable law, the Seller hereby agrees to indemnify the Buyer and its
assigns and transferees (each, an "Indemnified Party") from and against any and
all damages, claims, losses, liabilities and related costs and expenses,
including attorneys' fees and disbursements (all of the foregoing being
collectively referred to as "Indemnified Amounts"), awarded against or incurred
by any Indemnified Party arising out of or as a result of this Agreement or the
purchase of any Transferred Mortgage Assets or in respect of any Transferred
Mortgage Asset or any related Mortgage Loan Collateral, including, without
limitation, arising out of or as a result of:

      (a) the inclusion, or purported inclusion, in any Purchase of any Mortgage
Asset that is not an Eligible Mortgage Asset on the date of such Purchase, or
the characterization in any statement made by the Seller of any Transferred
Mortgage Asset as an Eligible Mortgage Asset which is not an Eligible Mortgage
Asset as of the date of such statement;

      (b) any representation or warranty or statement made or deemed made by the
Seller (or any of its officers) under or in connection with this Agreement,
which shall have been incorrect when made;

      (c) the failure by the Seller to comply with any applicable law, rule or
regulation with respect to any Transferred Mortgage Asset or the related
Mortgage Loan Collateral, or the failure of any Transferred Mortgage Asset or
the related Mortgage Loan Collateral to conform to any such applicable law, rule
or regulation;

      (d) the failure to vest in the Buyer absolute ownership of the Mortgage
Assets that are, or that purport to be, the subject of a Purchase under this
Agreement and the Mortgage Loan Collateral and Collections in respect thereof,
free and clear of any Adverse Claim;

      (e) the failure of the Seller to have filed, or any delay in filing,
financing statements or other similar instruments or documents under the UCC of
any applicable jurisdiction or other applicable laws with respect to any
Mortgage Assets that are, or that purport to be, the subject of a Purchase under
this Agreement and the Mortgage Loan Collateral and Collections in respect
thereof, whether at the time of any Purchase or at any subsequent time;

                                       50
<PAGE>

      (f) any claim by any Obligor arising out of the Seller's activities in
connection with originating or purchasing any Transferred Mortgage Asset or any
offset by any Obligor against the Seller arising out of acts by the Seller;

      (g) any failure of the Seller, as Seller or Servicer, to perform its
duties or obligations in accordance with the provisions hereof or to perform its
duties or obligations under any Mortgage Loan Collateral related to a
Transferred Mortgage Asset;

      (h) the commingling of Collections of Transferred Mortgage Assets by the
Seller or a designee of the Seller, as Servicer or otherwise, at any time with
other funds of the Seller or an Affiliate of the Seller;

      (i) any investigation, litigation or proceeding related to this Agreement
or the use of proceeds of Purchases or the ownership of Transferred Mortgage
Assets or the Mortgage Loan Collateral or Collections with respect thereto or in
respect of any Transferred Mortgage Asset or related Mortgage Loan Collateral;

      (j) any failure of the Seller to comply with its covenants contained in
Section 5.01; or

      (k) any claim brought by any Person other than an Indemnified Party
arising from any activity by the Seller or any Affiliate of the Seller in
servicing, administering or collecting any Transferred Mortgage Asset.

      It is expressly agreed and understood by the parties hereto (i) that the
foregoing indemnification is not intended to, and shall not, constitute a
guarantee of the collectibility or payment of the Transferred Mortgage Assets
and (ii) that nothing in this Section 8.01 shall require Seller to indemnify any
Person (A) for Mortgage Assets which are not collected, not paid or
uncollectible on account of the insolvency, bankruptcy, or financial inability
to pay of the applicable Obligor, (B) for damages, losses, claims or liabilities
or related costs or expenses resulting from such Person's gross negligence or
willful misconduct, or (C) for any income taxes or franchise taxes incurred by
such Person arising out of or as a result of this Agreement or in respect of any
Transferred Mortgage Asset or any related Mortgage Loan Collateral.

                                   ARTICLE IX

                                  MISCELLANEOUS

      Section 9.01. Amendments, Etc.

      No amendment or waiver of any provision of this Agreement or consent to
any departure by the Seller therefrom shall be effective unless in a writing
signed by the Buyer, and by any assignee of the Buyer if the amendment or waiver
in any way affects any right, remedy or obligation of the Buyer to such
assignee, and, in the case of any amendment, also signed by the Seller, and then
such amendment, waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given. No failure on the part of
the Buyer or any assignee to exercise, and no delay in exercising, any right
hereunder shall operate as a waiver thereof; nor shall any single or partial
exercise of any right hereunder preclude any other or further exercise thereof
or the exercise of any other right.

                                       51
<PAGE>

      Section 9.02. Notices, Etc..

      All notices and other communications hereunder shall, unless otherwise
stated herein, be in writing (which shall include facsimile communication) and
be faxed or delivered, to each party hereto, at its address set forth under its
name on the signature pages hereof or at such other address as shall be
designated by such party in a written notice to the other parties hereto.
Notices and communications by facsimile shall be effective when sent (and shall
be followed by hard copy sent by regular mail), and notices and communications
sent by other means shall be effective when received.

      Section 9.03. Binding Effect; Assignability.

      (a)   This Agreement shall be binding upon and inure to the benefit of the
Seller, the Buyer and their respective successors and assigns; provided,
however, that the Seller may not assign its rights or obligations hereunder or
any interest herein without the prior written consent of the Buyer, or as
provided in the next sentence. In connection with any sale or assignment by the
Buyer of all or a portion of the Transferred Mortgage Assets, the buyer or
assignee (including Fannie Mae, Freddie Mac or any other Approved Investor or
other purchaser to whom rights under this Agreement may be assigned but only
with respect to an assignment made following and during the continuance of an
Event of Default), as the case may be, shall, to the extent specifically
provided in connection with its purchase or assignment, under a master agreement
or otherwise (in the case of Mortgage Loans delivered to Fannie Mae), have all
rights and remedies of the Buyer under this Agreement (as if such buyer or
assignee, as the case may be, were the Buyer hereunder) and without limitation
of the foregoing, all representations and warranties (including Fannie Mae
Representations and Warranties in the case of Mortgage Loans delivered to Fannie
Mae) made by the Seller to Buyer shall be directly enforceable by such buyer or
assignee, except to the extent specifically provided in the agreement between
the Buyer and such buyer or assignee, as the case may be.

      (b)   This Agreement shall create and constitute the continuing
obligations of the parties hereto in accordance with its terms, and shall remain
in full force and effect until such time, after the Facility Termination Date,
when all of the Obligations are paid in full; provided, however, that rights and
remedies with respect to any breach of any representation and warranty made by
the Seller pursuant to Article IV and the provisions of Article VIII and
Sections 9.04 and 9.05 shall be continuing and shall survive any termination of
this Agreement.

      Section 9.04. Costs, Expenses and Taxes, Expenses and Taxes.

      (a)   In addition to the rights of indemnification granted to the Buyer
pursuant to Article VIII hereof, the Seller agrees to pay on demand all
out-of-pocket costs and expenses in connection with the preparation, execution
and delivery of this Agreement and the other documents and agreements to be
delivered hereunder, including, without limitation, the reasonable fees and
out-of-pocket expenses of counsel for the Buyer with respect thereto and with
respect to advising the Buyer as to its rights and remedies under this
Agreement, and the Seller agrees to pay all reasonable costs and expenses, if
any (including counsel fees and expenses), in connection with the enforcement of
this Agreement and the other documents to be delivered hereunder excluding,
however, any costs of enforcement or collection of Transferred

                                       52
<PAGE>

Mortgage Assets which are not paid on account of the insolvency, bankruptcy or
financial inability to pay of the applicable Obligor.

      (b)   In addition, the Seller agrees to pay any and all stamp and other
taxes and fees payable in connection with the execution, delivery, filing and
recording of this Agreement or the other documents or agreements to be delivered
hereunder, and the Seller agrees to save each Indemnified Party harmless from
and against any liabilities with respect to or resulting from any delay in
paying or omission to pay such taxes and fees.

      Section 9.05. No Proceedings.

      The Seller hereby agrees that it will not institute against the Buyer any
proceeding of the type referred to in Section 7.01(a)(viii) or (ix) so long as
there shall not have elapsed one year plus one day since the later of (i) the
Facility Termination Date and (ii) the date on which all of the Obligations are
paid in full.

      Section 9.06. GOVERNING LAW.

      THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS
PRINCIPLES THEREOF, OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK
GENERAL OBLIGATIONS LAW WHICH SHALL APPLY HERETO).

      Section 9.07. Third Party Beneficiary.

      Each of the parties hereto hereby acknowledges that the Buyer may assign
or grant a security interest in all or any portion of its rights under this
Agreement and that such assignees may (except as otherwise agreed to by such
assignees) further assign or grant a security interest in their rights under
this Agreement, and the Seller hereby consents to any such assignments or grants
of security interests. All such assignees, including parties to the Second
Restated Loan Agreement in the case of assignment or the grant of a security
interest to such parties, shall be third party beneficiaries of, and shall be
entitled to enforce the Buyer's rights and remedies under, this Agreement to the
same extent as if they were parties thereto, except to the extent specifically
limited under the terms of their assignment. Notwithstanding any provision to
the contrary contained in this Agreement, with respect to each Mortgage Loan
sold to Buyer that is subsequently sold to Fannie Mae, in addition to the other
rights and remedies granted herein, Fannie Mae shall have, and may exercise any
and all rights and remedies that are available to Fannie Mae under the Fannie
Mae Incorporated Documents as a result of a breach of any of the Fannie Mae
Representations and Warranties. Fannie Mae's definition or determination of what
event constitutes a breach shall be determinable by Fannie Mae under the terms
of the Fannie Mae Incorporated Documents. All rights and remedies granted herein
are cumulative and non-exclusive, and the exercise of any one shall not preclude
the exercise of others.

                                       53
<PAGE>

      Section 9.08. Execution in Counterparts.

      This Agreement may be executed in any number of counterparts, each of
which when so executed shall be deemed to be an original and all of which when
taken together shall constitute one and the same agreement.

      Section 9.09. Repurchase Transactions.

      Buyer may in its sole discretion engage in repurchase transactions with
the Purchased Mortgage Assets or otherwise pledge or hypothecate the Purchased
Mortgage Assets with a counterparty of Buyer's choice; provided, however, that
no such transaction by Buyer shall relieve Buyer of its obligations to Seller in
connection with the repurchase by Seller of any Purchased Mortgage Assets in
accordance with the terms of this Agreement and that, upon demand by Seller,
Buyer shall redeliver to Seller such repurchased Purchased Mortgage Assets as
are specifically identified by Seller free and clear of any liens or
encumbrances created, or permitted or suffered to be created, by Buyer.

                                       54
<PAGE>

      IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
by their respective officers thereunto duly authorized, as of the date first
above written.

SELLER AND SERVICER:                   PULTE MORTGAGE LLC

                                       By:  __________________________
                                       Name:  ________________________
                                       Title:  _______________________

                                       7475 South Joliet Street
                                       Englewood, Colorado  80112
                                       Telephone: (303) 493-2900
                                       Facsimile: (303) 493-4900

BUYER:                                 PULTE FUNDING, INC.

                                       By:  __________________________
                                       Name:  ________________________
                                       Title:  _______________________

                                       7475 South Joliet Street
                                       Englewood, Colorado  80112
                                       Telephone: (303) 493-2900
                                       Facsimile: (303) 493-4900

                                       55
<PAGE>

                                                                       EXHIBIT A

                                     FORM OF

                          DEFERRED PURCHASE PRICE NOTE

________, 20__

      FOR VALUE RECEIVED, PULTE FUNDING, INC., a Michigan corporation (the
"Buyer"), hereby promises to pay to PULTE MORTGAGE LLC, a Delaware limited
liability company (the "Seller") the principal amount of this Note, determined
as described below, together with interest thereon at a rate per annum equal at
all times to the Pricing Rate for periods of one month, in each case in lawful
money of the United States of America. Capitalized terms used herein but not
defined herein shall have the meanings assigned to such terms in the Master
Repurchase Agreement dated as of December 22, 2000 among the Seller and the
Buyer (such agreement, as it may from time to time be amended, restated or
otherwise modified in accordance with its terms, the "Master Repurchase
Agreement"), as modified by the Second Amended and Restated Addendum to Master
Repurchase Agreement thereto, dated as of August 19, 2005 (the "Addendum
Agreement" and, together with the Master Repurchase Agreement the "Repurchase
Agreement"). This Note is the note referred to in the definition of "Deferred
Purchase Price" in the Repurchase Agreement.

      The aggregate principal amount of this Note at any time shall be equal to
the difference between (a) the sum of the aggregate principal amount of this
Note on the date of the issuance hereof and each addition to the principal
amount of this Note pursuant to the terms of Paragraph 3 of the Master
Repurchase Agreement minus (b) the aggregate amount of all payments made in
respect of the principal amount of this Note, in each case, as recorded on the
schedule annexed to and constituting a part of this Note, but failure to so
record shall not affect the obligations of the Buyer to the Seller.

      The entire principal amount of this Note shall be due and payable on the
date one year after the Facility Termination Date or such later date as may be
agreed in writing by the Seller and the Buyer. The principal amount of this Note
may, at the option of the Buyer, be prepaid without penalty in whole at any time
or in part from time to time. Interest on this Note shall be paid in arrears on
each Settlement Date, at maturity and thereafter on demand. All payments
hereunder shall be made by wire transfer of immediately available funds to such
account of the Seller as the Seller may designate in writing.

      Notwithstanding any other provisions contained in this Note, in no event
shall the rate of interest payable by the Buyer under this Note exceed the
highest rate of interest permissible under applicable law.

      The indebtedness evidenced by this Deferred Purchase Note is subordinated
to the prior payment in full of all of the Buyer's obligations under the Second
Restated Loan Agreement. By its acceptance of this Deferred Purchase Price Note,
the Seller hereby agrees that the subordination provisions contained herein are
for the direct benefit of, and may be enforced by, the Lenders, the
Administrative Agent, the Collateral Agent, and/or any of their assignees

<PAGE>

(collectively, the "Senior Claimants") under the Second Restated Loan Agreement.
Until the date on which the Advances outstanding under (and as defined in) the
Second Restated Loan Agreement have been repaid in full and all other
obligations of the Buyer thereunder (all such obligations, collectively, the
"Senior Claim") have been indefeasibly satisfied in full, the Seller shall not
demand, accelerate, sue for, take, receive or accept from the Buyer, directly or
indirectly, in cash or other property or by set-off or any other manner
(including, without limitation, from or by way of collateral) any payment or
security of all or any of the indebtedness under this Deferred Purchase Price
Note or exercise any remedies or take any action or proceeding to enforce the
same; provided, however, that nothing in this paragraph shall restrict the Buyer
from paying, or the Seller from requesting, any payments under this Deferred
Purchase Price Note so long as the Buyer is not required under the Second
Restated Loan Agreement to set aside for the benefit of, or otherwise pay over
to, any of the Senior Claimants the funds used for such payments and further
provided that no Event of Default shall have occurred and be continuing and the
making of such payment would not otherwise violate the terms and provisions of
the Second Restated Loan Agreement. Should any payment, distribution or security
or proceeds thereof be received by the Seller in violation of the immediately
preceding sentence, the Seller agrees that such payment shall be segregated,
received and held in trust for the benefit of, and deemed to be the property of,
and shall be immediately paid over and delivered to the Collateral Agent for the
benefit of the Senior Claimants.

      The Buyer hereby waives diligence, presentment, demand, protest and notice
of any kind whatsoever.

      Neither this Note, nor any right of the Seller to receive payments
hereunder, shall, without the prior written consent of the Buyer and (so long as
the Second Restated Loan Agreement remains in effect or any amounts remain
outstanding thereunder) the Administrative Agent under the Second Restated Loan
Agreement, be assigned, transferred, exchanged, pledged, hypothecated,
participated or otherwise conveyed.

      THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS
PRINCIPLES THEREOF, OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK
GENERAL OBLIGATIONS LAW WHICH SHALL APPLY HERETO).

                                           PULTE FUNDING, INC.

                                           By:  _____________________

                                                 Title:
                                                 Name:

                                       57
<PAGE>

                    SCHEDULE TO DEFERRED PURCHASE PRICE NOTE
<TABLE>
<CAPTION>
                 Addition to Principal      Amount of Principal      Unpaid Principal    Notation Made
    Date                 Amount               Paid or Prepaid             Balance             By
-----------------------------------------------------------------------------------------------------------------
<S>              <C>                        <C>                      <C>                 <C>

-----------------------------------------------------------------------------------------------------------------
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</TABLE>

<PAGE>

                                                                       EXHIBIT B

                                     FORM OF
                                BILL OF SALE AND
                 BLANKET ASSIGNMENT OF ELIGIBLE MORTGAGE ASSETS

      BILL OF SALE, dated as of _____________, 20__, from PULTE MORTGAGE LLC, a
Delaware limited liability company, (hereinafter, together with its successors
and assigns, the "Seller"), to PULTE FUNDING, INC., a Michigan corporation,
(hereinafter, together with its successors and assigns, the "Buyer"). All terms
used herein which are not defined herein shall have the meanings given to them
in the Master Repurchase Agreement, dated as of December 22, 2000, as amended by
the Second Amended and Restated Addendum to Master Repurchase Agreement, dated
as of August 19, 2005 (the "Agreement") by and among the Seller, as seller, and
Buyer, as buyer.

      WHEREAS, pursuant to the Agreement, the Seller agreed to grant, sell,
assign, convey, transfer and deliver to the Buyer, from time to time, certain
Eligible Mortgage Assets.

      NOW, THEREFORE, in consideration of the payment of the Purchase Price for
the Eligible Mortgage Assets set forth on Schedule 1 attached hereto and made a
part hereof (the "Purchased Eligible Mortgage Assets"), and other good and
valuable consideration, the receipt of which is hereby acknowledged, and
intending to be legally bound hereby, the Seller by these presents does hereby
sell, convey, grant, transfer, assign, and set over to, subject to the terms of
the Agreement, Buyer, its successors and assigns, all of the Seller's right,
title and interest, legal or equitable, in and to the Purchased Eligible
Mortgage Assets. The terms of this Bill of Sale shall not supersede the terms of
the Agreement.

      IN WITNESS WHEREOF, the Seller has caused this Bill of Sale to be executed
as of the date written above.

SELLER:                                         PULTE MORTGAGE LLC
                                                By:
                                                Name:
                                                Title:

<PAGE>

                           Schedule 1 to Bill of Sale

                       Purchased Eligible Mortgage Assets

                                   [Attached]

<PAGE>

                                                                      SCHEDULE I

                                   TRADE NAMES

                                      None

<PAGE>

                                   SCHEDULE II

                               APPROVED INVESTORS

<TABLE>
<CAPTION>
TAKE-OUT INVESTORS            LIMIT     MOODY'S LT/ST  S&P LT/ST   RATED ENTITY
--------------------------------------------------------------------------------
<S>                            <C>      <C>           <C>          <C>
ABN AMRO Incorporated           100%       Aa3/P-1     AA-/A-1+    Fitch AA-/F1+
American Home Mortgage           10%         NR           NR
Astoria Financial Corp.          25%        Baa1       BBB-/A-2    Fitch BBB+/F2
Aurora Loan Services, Inc.      100%       A1/P-1        A/A1       Fitch A+/F1
Banc of America Securities LLC  100%         P-1         A-1+        Fitch F1+
Banc One Capital Markets, Inc.  100%         A1           BBB         Fitch F2
Banc One Corp.                  100%         A1           BBB         Fitch F2
Bank of America Mortgage        100%         P-1         A-1+        Fitch F1+
Barclays Capital Inc.           100%         P-1         A-1+        Fitch F1+
Bear, Stearns & Co., Inc.       100%         P-1          A-1        Fitch F1+
BNP Paribas Securities Corp.    100%         P-1          A-1        Fitch F1+
Charter One Financial Inc.       10%         NR           WR
Chase Financial Corp.           100%       Aa3/P-1       A+/A1      Fitch A+/F1
Chase Manhattan Mortgage
  Corporation                   100%       Aa3/P-1       A+/A1      Fitch A+/F1
Chase Securities Inc.           100%       Aa3/P-1       A+/A1      Fitch A+/F1
CIBC World Markets Corp.        100%       Aa3/P-1        NR
Citicorp Mortgage Corp.         100%       Aa1/P-1     AA-/A-1+    Fitch AA+/F1+
Colorado Housing Finance
  Authority                     100%         Aaa        AA-/A1+
Commercial Federal Corp.         10%         WR           BB+      Fitch BBB-/F3
Countrywide                     100%       A3/P-2        A/A-1       Fitch A/F1
CSFB                            100%       Aa3/P-1      A+/A-1     Fitch AA-/F1+
Daiwa Securities America, Inc.   25%        Baa3        BBB/A-2     Fitch BBB/F2
Dakota County Bond (Minnesota)  100%         Aaa          NR
Deutsche Bank Securities Inc.   100%       Aa3/P-1     AA-/A-1+    Fitch AA-/F1+
Dresdner Kleinwort
  Benson North America LLC      100%       A1/P-1        A/A-1       Fitch A/F1
E*Trade                          10%         Ba3          BB
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
TAKE-OUT INVESTORS               LIMIT  MOODY'S LT/ST  S&P LT/ST   RATED ENTITY
--------------------------------------------------------------------------------
<S>                              <C>    <C>            <C>         <C>
Federal Home Mortgage Corp.      100%       Aaa/P-1     AAA/ A1+
Federal National Mortgage
  Association                    100%       Aaa/P-1        AAA
Fidelity Bancshares, Inc.        100%       Aa3/P-1     AA-/A-1+      Fitch A+
First Franklin                    10%         NR           NR
First Nationwide Mortgage
  Corporation                     10%         NR           NR
First Union Mortgage
  Corporation                    100%       Aa3/P-1      A+/A-1    Fitch AA-/F1+
Fleet Mortgage group             100%       Aa2/WR         WR      Fitch AA-/F1+
Florida Housing Finance
  Agency                         100%         Aa1          NR
Fuji Securities Inc.             100%         WR           A2         Fitch WR
GE Capital Mortgage
  Services Inc.                  100%       Aaa/P-1     AAA/A-1+
GMAC Mortgage                     25%      Baa2/P-2      BB/B-1     Fitch BB+/B
Goldman, Sachs & Co.             100%       Aa3/P-1      A+/A-1    Fitch AA-/F1+
Government National Mortgage
  Association.                   100%         Aaa          AAA
Greenpoint Mortgage (formerly
  Headlands Mortgage)            100%         A2           WR         Fitch A-
Greenwich Capital Markets, Inc.  100%         Aa3          AA-       Fitch F1+
Homeside Lending Inc.             10%         WR           WR         Fitch WR
Housing Finance Authority of
  Broward County (FL)             10%         Aaa          NR
HSBC Securities (USA) Inc.       100%       Aa3/P-1      A+/A-1     Fitch AA/F1+
Illinois Housing Development
  Authority                      100%         Aaa        AA-/A1+
Indy Mac (Independent National
  Mortgage Corp.)                 25%         NR           BB+     Fitch BBB-/F2
J. P. Morgan Securities, Inc.    100%       Aa3/P-1       A+/A1     Fitch A+/F1
Leader Mortgage Corp.             10%         NR           NR
Lehman Brothers Inc.             100%       A1/P-1        A/A1      Fitch A+/F1
Long Beach Financial Corp.        10%         NR           NR
Maryland Housing Opportunities
  Commission (HOC)                10%         NR           NR
Merrill Lynch Government
  Securities Inc.                100%       Aa3/P-1      A+/A-1    Fitch AA-/F1+
Minnesota Housing Finance
  Agency                          10%         NR           NR
Morgan Stanley & Co.
  Incorporated                   100%       Aa3/P-1       A+/A1     Fitch A+/F1
Nesbitt Burns Securities Inc.    100%       Aa3/P-1     AA-/A-1+   Fitch AA-/F1+
Nevada State Housing Finance
  Agency                          10%         NR           NR
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                            MOODY'S      S&P          RATED
TAKE-OUT INVESTORS                LIMIT      LT/ST      LT/ST        ENTITY
--------------------------------------------------------------------------------
<S>                               <C>       <C>        <C>        <C>
New Jersey Housing Finance
  Agency                             10%      NR          NR
Nomura Securities International,
  Inc.                               25%     Baa1      BBB+/A-2   Fitch BBB/F2
North Carolina HFA                  100%      Aa3      AA-/A1+
Ohio Savings Financial Corp.
  (Ohio Savings Bank)                10%      NR          NR
Opteum Financial Services            10%      NR          NR
PaineWebber Incorporated            100%    Aa2/P-1       WR      Fitch AA+/F1+
Pinellas County Finance
  Authority                         100%      Aaa         A-
Pulte Corporation                    25%     Baa3        BBB-      Fitch BBB+
Regions Mortgage, Inc.
  (Regions Bank)                    100%      A1          A        Fitch A+/F1
Residential Mortgage Inc.            10%      NR          NR
Salomon Smith Barney                100%    Aa1/P-1    AA-/A-1+   Fitch AA+/F1+
Saxon Mortgage, Inc.                 10%      NR          NR
SG Cowen Securities Corporation     100%    Aa2/P-1    AA-/A-1+   Fitch AA-/F1+
Texas Department of Housing and
  Community Affairs (TDHCA)          10%      Aaa       AA/A1+
Texas Veteran Land Bond and bon
  VLB Loans                          10%      NR          NR
The Industrial Development
  Authority of the County
  of Maricopa, AZ                   100%      WR         A/A1
The Industrial Development
  Authority of the County
  of Pima, AZ                        10%      Ba3         B+
UBS Warburg LLC                     100%    Aa2/P-1    AA+/A-1+   Fitch AA+/F1+
Washington Mutual (formerly
  Alta Residential Mortgage)        100%    A3/P-2      A-/A-2     Fitch A/F1
Wells Fargo Funding, Inc.
  (formerly Norwest mortgage)       100%    Aa1/P-1    AA-/A-1+   Fitch AA/F1+
Wells Fargo Mortgage Resources
  (formerly Director's
  Acceptance)                       100%    Aa1/P-1    AA-/A-1+   Fitch AA/F1+
Zions First National Bank           100%    A2/P-1      A-/A-2     Fitch A-/F1
</TABLE>

<PAGE>

                                                                    SCHEDULE III

                                   LITIGATION

                                      None

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}]]