Document:

EXHIBIT 10.74
                                                               EXECUTION VERSION

                       FIFTH AMENDMENT TO CREDIT AGREEMENT

         This FIFTH AMENDMENT TO CREDIT AGREEMENT (this "Amendment"), dated as
of February 7, 2007, is entered into by and among THE GYMBOREE CORPORATION, a
Delaware corporation (the "Company"), each other Borrower named in the signature
pages hereof (together with the Company, each a "Borrower" and, collectively,
the "Borrowers"), and BANK OF AMERICA, N.A. (the "Lender").

                                    RECITALS

         A.       The Borrowers and the Lender are parties to a Credit
Agreement, dated as of August 11, 2003 (as amended, restated, extended,
supplemented or otherwise modified from time to time, including as amended
pursuant to that certain Waiver and First Amendment to Credit Agreement dated as
of December 6, 2004 among the Borrowers and the Lender, that certain Second
Amendment to Credit Agreement dated as of July 27, 2005, that certain Third
Amendment to Credit Agreement dated as of March 30, 2006, and that certain
Fourth Amendment to Credit Agreement dated as of July 5, 2006, the "Credit
Agreement"), pursuant to which the Lender has extended certain credit facilities
to the Borrowers.

         B.       The Borrowers have requested that the Lender agree to amend
the Credit Agreement, and the Lender has agreed to such request, subject to the
terms and conditions of this Amendment.

         NOW, THEREFORE, for valuable consideration, the receipt and adequacy of
which are hereby acknowledged, the parties hereto hereby agree as follows:

         1.       Defined Terms. Unless otherwise defined herein, capitalized
terms used herein shall have the meanings, if any, assigned to such terms in the
Credit Agreement (as amended hereby). As used herein, "Amendment Documents"
means this Amendment, the Credit Agreement (as amended by this Amendment), and
each certificate and other document executed and delivered by the Borrowers
pursuant to Section 5 hereof.

         2.       Interpretation. The rules of interpretation set forth in
Sections 1.02, 1.03, 1.04, 1.05, and 1.06 of the Credit Agreement shall be
applicable to this Amendment and are incorporated herein by this reference.

         3.       Amendments to Credit Agreement. Subject to the terms and
conditions hereof, and with effect from and after the Effective Date, the Credit
Agreement shall be amended as follows:

                  (a)      Section 1.01 of the Credit Agreement shall be amended
by adding the following definition to such Section in the appropriate
alphabetical order:

<PAGE>

                                   "`Fifth Amendment Date'" means the `Effective
                  Date' as defined in that Fifth Amendment to Credit Agreement
                  dated as of February 7, 2007 among the Borrowers and the
                  Lender."

                  (b)      Section 7.06(e) of the Credit Agreement shall be
amended by amending and restating such subsection to read in its entirety as
follows

                                   "(e)   the Company may purchase, redeem or
                  otherwise acquire shares of its capital stock for cash, in an
                  aggregate amount not to exceed, (i) for all such purchases,
                  redemptions and other acquisitions together occurring from and
                  after the Second Amendment Date until the Fifth Amendment
                  Date, the amount of $110,000,000, and (ii) for all such
                  purchases, redemptions and other acquisitions together
                  occurring from and after the Fifth Amendment Date, the amount
                  of $50,000,000; provided, in each case that after giving
                  effect to such proposed action, no Default would exist."

         4.       Representations and Warranties. Each Borrower hereby
represents and warrants to the Lender as follows:

                  (a)      No Default has occurred and is continuing (or would
result from the amendment to the Credit Agreement contemplated hereby).

                  (b)      The execution, delivery and performance by the
Borrowers of this Amendment have been duly authorized by all necessary corporate
and other action and do not and will not require any registration with, consent
or approval of, or notice to or action by, any Person (including any
Governmental Authority) in order to be effective and enforceable.

                  (c)      The Amendment Documents constitute the legal, valid
and binding obligations of the Borrowers party thereto, enforceable against each
such Borrower in accordance with their respective terms, without defense,
counterclaim or offset.

                  (d)      All representations and warranties of the Borrowers
contained in Article V of the Credit Agreement are true and correct on and as of
the Effective Date, except to the extent that any such representation and
warranty specifically relates to an earlier date, in which case they are true
and correct as of such earlier date.

                  (e)      Each Borrower is entering into this Amendment on the
basis of its own investigation and for its own reasons, without reliance upon
the Lender or any other Person.

                  (f)      There has occurred since January 28, 2006 no event or
circumstance that has resulted or could reasonably be expected to result in a
Material Adverse Effect.

                  (g)      The Obligations of each Borrower under the Credit
Agreement and each other Loan Document are not subject to any defense,
counterclaim, set-off, right of recoupment, abatement or other claim.

<PAGE>

         5.       Effective Date. a. This Amendment will become effective when
each of the conditions precedent set forth in this Section 5 has been satisfied
(the "Effective Date"):

                           (i)      The Lender shall have received from each
                  Borrower a duly executed original (or, if elected by the
                  Lender, an executed facsimile copy) counterpart to this
                  Amendment.

                           (ii)     The Lender shall have received from the
                  Company a certificate signed by the assistant secretary of
                  each Borrower, dated the Effective Date, in form and substance
                  satisfactory to the Lender, and certifying evidence of the
                  authorization of the execution, delivery and performance by
                  each Borrower of the Amendment Documents to which it is party.

                           (iii)    The Lender shall have received, in form and
                  substance satisfactory to it, such additional approvals,
                  consents, opinions, documents and other information as the
                  Lender shall request.

                  (b)      From and after the Effective Date, the Credit
Agreement is amended as set forth herein. Except as expressly amended pursuant
hereto, the Credit Agreement shall remain unchanged and in full force and effect
and is hereby ratified and confirmed in all respects.

         6.       Reservation of Rights. Each Borrower acknowledges and agrees
that neither the execution nor the delivery by the Lender of this Amendment
shall (a) be deemed to create a course of dealing or otherwise obligate the
Lender to execute similar amendments under the same or similar circumstances in
the future or (b) be deemed to create any implied waiver of any right or remedy
of the Lender with respect to any term or provision of any Loan Document
(including any term or provision relating to the occurrence of a Material
Adverse Effect).

         7.       Miscellaneous.

                  (a)      Except as herein expressly amended, all terms,
covenants and provisions of the Credit Agreement are and shall remain in full
force and effect and all references therein to such Credit Agreement shall
henceforth refer to the Credit Agreement as amended by this Amendment. This
Amendment shall be deemed incorporated into, and a part of, the Credit
Agreement.

                  (b)      This Amendment shall be binding upon and inure to the
benefit of the parties hereto and thereto and their respective successors and
assigns. No third party beneficiaries are intended in connection with this
Amendment.

                  (c)      THIS AMENDMENT IS SUBJECT TO THE PROVISIONS OF
SECTIONS 9.19, 9.20 and 9.23 OF THE CREDIT AGREEMENT RELATING TO GOVERNING LAW,
VENUE, WAIVER OF RIGHT TO TRIAL BY JURY AND JUDICIAL REFERENCE, THE PROVISIONS
OF WHICH ARE BY THIS REFERENCE INCORPORATED HEREIN IN FULL.

<PAGE>

                  (d)      This Amendment may be executed in any number of
counterparts, each of which shall be deemed an original, but all such
counterparts together shall constitute but one and the same instrument. Each of
the parties hereto understands and agrees that this document (and any other
document required herein) may be delivered by any party hereto or thereto either
in the form of an executed original or an executed original sent by facsimile
transmission to be followed promptly by mailing of a hard copy original, and the
receipt by the Lender of a facsimile transmitted document purportedly bearing
the signature of a Borrower shall bind such Borrower with the same force and
effect as the delivery of a hard copy original. Any failure by the Lender to
receive the hard copy executed original of such document shall not diminish the
binding effect of receipt of the facsimile transmitted executed original of such
document of the party whose hard copy page was not received by the Lender.

                  (e)      This Amendment, together with the Credit Agreement,
contains the entire and exclusive agreement of the parties hereto with reference
to the matters discussed herein and therein. This Amendment supersedes all prior
drafts and communications with respect thereto. This Amendment may not be
amended except in accordance with the provisions of Section 9.01 of the Credit
Agreement.

                  (f)      If any term or provision of this Amendment shall be
deemed prohibited by or invalid under any applicable law, such provision shall
be invalidated without affecting the remaining provisions of this Amendment or
the Credit Agreement, respectively.

                  (g)      Each Borrower covenants to pay to or reimburse the
Lender, upon demand, for all costs and expenses (including Attorney Costs and
the non-duplicative allocated costs of in-house counsel) incurred in connection
with the development, preparation, negotiation, execution and delivery of this
Amendment.

                  (h)      This Amendment shall constitute a "Loan Document"
under and as defined in the Credit Agreement.

                  [Remainder of Page Intentionally Left Blank]

<PAGE>

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

                                           THE GYMBOREE CORPORATION,
                                           as a Borrower

                                           By:    /s/  BLAIR W. LAMBERT
                                                  ------------------------------
                                           Name:  Blair W. Lambert
                                           Title: COO - CFO

                                           GYMBOREE MANUFACTURING, INC.,
                                           as a Borrower

                                           By:    /s/  BLAIR W. LAMBERT
                                                  ------------------------------
                                           Name:  Blair W. Lambert
                                           Title: COO - CFO

                                           GYM-MARK, INC.,
                                           as a Borrower

                                           By:    /s/  BLAIR W. LAMBERT
                                                  ------------------------------
                                           Name:  Blair W. Lambert
                                           Title: COO - CFO

            Signature Page Two to Fifth Amendment to Credit Agreement

<PAGE>

                                           GYMBOREE RETAIL STORES, INC.,
                                           as a Borrower

                                           By:    /s/  BLAIR W. LAMBERT
                                                  ------------------------------
                                           Name:  Blair W. Lambert
                                           Title: COO - CFO

                                           THE GYMBOREE STORES, INC.,
                                           as a Borrower

                                           By:    /s/  BLAIR W. LAMBERT
                                                  ------------------------------
                                           Name:  Blair W. Lambert
                                           Title: COO - CFO

                                           GYMBOREE LOGISTICS PARTNERSHIP,
                                           as a Borrower

                                           By:    GYMBOREE RETAIL STORES, INC.
                                                  as General Partner

                                           By:    /s/  BLAIR W. LAMBERT
                                                  ------------------------------
                                           Name:  Blair W. Lambert
                                           Title: COO - CFO

                                           GYMBOREE PLAY PROGRAMS, INC.,
                                           as a Borrower

                                           By:    /s/  BLAIR W. LAMBERT
                                                  ------------------------------
                                           Name:  Blair W. Lambert
                                           Title: COO - CFO

           Signature Page Three to Fifth Amendment to Credit Agreement

<PAGE>

                                           GYMBOREE OPERATIONS, INC.,
                                           as a Borrower

                                           By:    /s/  BLAIR W. LAMBERT
                                                  ------------------------------
                                           Name:  Blair W. Lambert
                                           Title: COO - CFO

                                           GYMBOREE, INC. (CANADA),
                                           as a Borrower

                                           By:    /s/  BLAIR W. LAMBERT
                                                  -----------------------------
                                           Name:  Blair W. Lambert
                                           Title: COO - CFO

                                           LENDER

                                           BANK OF AMERICA, N.A., as the Lender

                                           By:    /s/  MAILE DOUGLAS
                                                  -----------------------------
                                           Name:  Maile Douglas
                                           Title: Vice President

           Signature Page Three to Fifth Amendment to Credit AgreementClick here for printer-friendly pdf version of this document with page breaks as indicated in the Table of Contents

If above link does not activate, you will find the duplicate printer-friendly pdf version of this document attached to this filing submission with the SEC.

EXHIBIT 4.1

EXECUTION VERSION

 

WaMu ASSET
ACCEPTANCE CORP.,

as
Depositor

and

WASHINGTON
MUTUAL BANK,

as
Servicer

and

LASALLE BANK
NATIONAL ASSOCIATION,

as
Trustee

and

CHRISTIANA
BANK & TRUST COMPANY,

as Delaware Trustee

POOLING AND
SERVICING AGREEMENT

$3,041,313,226.54

WaMu
Mortgage Pass-Through Certificates Series 2007-HY1 Trust

WaMu Asset
Acceptance Corp.

WaMu
Mortgage Pass-Through Certificates

Series
2007-HY1

Cut-Off
Date: January 1, 2007

TABLE OF CONTENTS

 

	
 

	

Page

	

ARTICLE I

	

7

	
Section
1.01.Definitions

	

7

	
Adjustment Date

	

7

	
Aggregate Certificate Principal
Balance

	

7

	
Agreement

	

7

	
Appraised Value

	

7

	
Assignment of Proprietary Lease

	

7

	
Authenticating Agent

	

7

	
Authorized Denomination

	

7

	
Balloon
Loan

	

8

	
Bankruptcy Loss

	

8

	
Beneficial Holder

	

8

	
Benefit
Plan Opinion

	

8

	
Book-Entry Certificates

	

8

	
Business
Day

	

8

	
Buydown
Agreement

	

8

	
Buydown
Fund

	

8

	
Buydown
Fund Account

	

9

	
Buydown
Loan

	

9

	
Carry-Forward Subsequent Recoveries
Amount

	

9

	
Certificate

	

9

	
Certificate Account

	

9

	
Certificateholder or Holder

	

9

	
Certificate Group

	

10

	
Certificate Interest Rate

	

10

	
Certificate of Trust

	

10

	
Certificate Principal Balance

	

10

	
Certificate Register and Certificate
Registrar

	

10

	
Class

	

10

	
Class
1-A1 Certificates

	

11

	
Class
1-A2 Certificates

	

11

	
Class
2-A1 Certificates

	

11

	
Class
2-A2 Certificates

	

11

	
Class
2-A3 Certificates

	

11

	
Class
2-A4 Certificates

	

11

	
Class
3-A1 Certificates

	

11

	
Class
3-A2 Certificates

	

11

	
Class
3-A3 Certificates

	

11

	
Class
3-A4 Certificates

	

11

	
Class
3-B-1 Certificates

	

11

	
Class
3-B-2 Certificates

	

11

	
Class
3-B-3 Certificates

	

11

	
Class
3-B-4 Certificates

	

11

	
Class
3-B-5 Certificates

	

11

	
Class
3-B-6 Certificates

	

11

	
Class A
Certificates

	

11

	
Class
L-B-1 Certificates

	

12

	
Class
L-B-2 Certificates

	

12

	
Class
L-B-3 Certificates

	

12

	
Class
L-B-4 Certificates

	

12

	
Class
L-B-5 Certificates

	

12

	
Class
L-B-6 Certificates

	

12

	
Class
Principal Balance

	

12

	
Class R
Certificates

	

13

	
Class R
Residual Interests

	

13

	
Class
R-1 Residual Interest

	

13

	
Class
R-2 Residual Interest

	

13

	
Class
R-3 Residual Interest

	

13

	
Class Y
Regular Interests

	

13

	
Class Y
Principal Reduction Amounts

	

13

	
Class
Y-1 Regular Interest

	

13

	
Class
Y-1 Principal Distribution Amount

	

14

	
Class
Y-2 Regular Interest

	

14

	
Class
Y-2 Principal Distribution Amount

	

14

	
Class Z
Regular Interests

	

14

	
Class Z
Principal Reduction Amounts

	

14

	
Class
Z-1 Regular Interest

	

14

	
Class
Z-1 Principal Distribution Amount

	

14

	
Class
Z-2 Regular Interest

	

14

	
Class
Z-2 Principal Distribution Amount

	

14

	
Clearing
Agency

	

14

	
Closing
Date

	

14

	
Code

	

15

	
Commission

	

15

	
Company

	

15

	
Compensating Interest

	

15

	
Complying Insurance Company

	

15

	
Cooperative

	

15

	
Cooperative Apartment

	

15

	
Cooperative Lease

	

15

	
Cooperative Loans

	

15

	
Cooperative Stock

	

15

	
Cooperative Stock Certificate

	

15

	
Corporate Trust Office

	

16

	
Corporation

	

16

	
Cumulative Carry-Forward Subsequent Recoveries
Amount

	

16

	
Current
Loan-to-Value Ratio

	

16

	
Curtailment

	

16

	
Curtailment Shortfall

	

16

	
Custodial Account for P&I

	

16

	
Custodial Agreement

	

17

	
Custodian

	

17

	
Cut-Off
Date

	

17

	
Definitive Certificates

	

17

	
Delaware
Trustee

	

17

	
Depositary Agreement

	

17

	
Destroyed Mortgage Note

	

17

	
Determination Date

	

17

	
Disqualified Organization

	

17

	
Distribution Date

	

17

	
DTC

	

17

	
DTC
Participant

	

17

	
Due
Date

	

17

	
Eligible
Institution

	

17

	
Eligible
Investments

	

18

	
ERISA

	

19

	
ERISA
Restricted Certificate

	

19

	
ERISA
Super Restricted Certificate

	

19

	
Event of
Default

	

19

	
Excess
Liquidation Proceeds

	

19

	
Excess
Subsequent Recoveries

	

19

	
Fannie
Mae

	

19

	
FDIC

	

20

	
FHA

	

20

	
Final
Maturity Date

	

20

	
Fitch

	

20

	
Freddie
Mac

	

20

	
Group 1
Certificates

	

20

	
Group 1
Loans

	

20

	
Group 1
Senior Liquidation Amount

	

20

	
Group 1
Senior Percentage

	

20

	
Group 1
Senior Prepayment Percentage or Group 2 Senior Prepayment
Percentage

	

20

	
Group 1
Senior Principal Distribution Amount

	

23

	
Group 1
Subordinate Balance

	

23

	
Group 1
Subordinate Percentage

	

23

	
Group 1
Subordinate Prepayment Percentage

	

23

	
Group
1-A Certificates

	

23

	
Group 2
Certificates

	

23

	
Group 2
Loans

	

23

	
Group 2
Senior Liquidation Amount

	

23

	
Group 2
Senior Percentage

	

23

	
Group 2
Senior Prepayment Percentage

	

23

	
Group 2
Senior Principal Distribution Amount

	

24

	
Group 2
Subordinate Balance

	

24

	
Group 2
Subordinate Percentage

	

24

	
Group 2
Subordinate Prepayment Percentage

	

24

	
Group
2-A Certificates

	

24

	
Group 3
Certificates

	

24

	
Group 3
Clean-Up Call Option Date

	

24

	
Group 3
Clean-Up Call Percentage

	

24

	
Group 3
Credit Support Depletion Date

	

24

	
Group 3
Excess Liquidation Proceeds

	

24

	
Group 3
Loans

	

24

	
Group 3
Senior Liquidation Amount

	

24

	
Group 3
Senior Percentage

	

25

	
Group 3
Senior Prepayment Percentage

	

25

	
Group 3
Senior Principal Distribution Amount

	

26

	
Group 3
Subordinate Liquidation Amount

	

27

	
Group 3
Subordinate Percentage

	

27

	
Group 3
Subordinate Prepayment Percentage

	

27

	
Group 3
Subordinate Principal Distribution Amount

	

27

	
Group 3
Subordinate Principal Prepayments Distribution Amount

	

27

	
Group
3-A Certificates

	

27

	
Group
3-B Certificates

	

27

	
Group
L-B Certificates

	

27

	
Group
L-B Percentage

	

28

	
Group
L-B Subordinate Liquidation Amount

	

28

	
Group
L-B Subordinate Principal Distribution Amount

	

28

	
Group
L-B Subordinate Principal Prepayments Distribution
Amount

	

28

	
Group
L-B Weighted Average Pass-Through Rate

	

29

	
Groups
1-2 Clean-Up Call Option Date

	

29

	
Groups
1-2 Clean-Up Call Percentage

	

29

	
Groups
1-2 Credit Support Depletion Date

	

29

	
Groups
1-2 Excess Liquidation Proceeds

	

29

	
Index

	

29

	
Indirect
DTC Participants

	

29

	
Initial
Custodial Agreement

	

29

	
Initial
Custodian

	

29

	
Insurance Proceeds

	

29

	
Interest
Distribution Amount

	

30

	
Interest
Transfer Amount

	

30

	
Investment Account

	

30

	
Investment Depository

	

30

	
Junior
Subordinate Certificates

	

30

	
Last
Scheduled Distribution Date

	

30

	
Lender
PMI Loan

	

30

	
Liquidated Mortgage Loan

	

30

	
Liquidation Principal

	

30

	
Liquidation Proceeds

	

31

	
Loan
Group

	

31

	
Loan
Group 1

	

31

	
Loan
Group 1 Weighted Average Pass-Through Rate

	

31

	
Loan
Group 2

	

31

	
Loan
Group 2 Weighted Average Pass-Through Rate

	

31

	
Loan
Group 3

	

31

	
Loan
Group 3 Weighted Average Pass-Through Rate

	

31

	
Lowest
Class B Owner

	

31

	
MERS

	

31

	
MERS
Loan

	

31

	
MERS® System

	

31

	
MIN

	

31

	
MOM
Loan

	

32

	
Monthly
P&I Advance

	

32

	
Monthly
Payment

	

32

	
Moody’s

	

32

	
Mortgage

	

32

	
Mortgage
File

	

32

	
Mortgage
Interest Rate

	

35

	
Mortgage
Loan Margin

	

35

	
Mortgage
Loan Purchase Agreement

	

35

	
Mortgage
Loan Schedule

	

35

	
Mortgage
Loans

	

35

	
Mortgage
Note

	

36

	
Mortgage
Pool

	

36

	
Mortgage
Pool Assets

	

36

	
Mortgaged Property

	

36

	
Mortgagor

	

36

	
Nonrecoverable Advance

	

36

	
Non-U.S.
Person

	

36

	
Notice
Addresses

	

36

	
OTS

	

37

	
Officer’s Certificate

	

37

	
One-Year
LIBOR

	

37

	
Opinion
of Counsel

	

37

	
Original
Trust Agreement

	

37

	
Overcollateralized Group

	

37

	
Ownership Interest

	

37

	
Pass-Through Entity

	

37

	
Pass-Through Rate

	

37

	
Paying
Agent

	

38

	
Payoff

	

38

	
Payoff
Earnings

	

38

	
Payoff
Interest

	

38

	
Payoff
Period

	

38

	
Percentage Interest

	

38

	
Permitted Transferee

	

39

	
Person

	

39

	
Plan
Investor

	

39

	
Prepaid
Monthly Payment

	

39

	
Primary
Insurance Policy

	

40

	
Principal Balance

	

40

	
Principal Payment

	

40

	
Principal Payment Amount

	

40

	
Principal Prepayment

	

40

	
Principal Prepayment Amount

	

40

	
Principal Transfer Amount

	

40

	
Prior
Period

	

41

	
Prospectus

	

41

	
Rate
Ceiling

	

41

	
Rate
Floor

	

41

	
Rating
Agency

	

41

	
Ratings

	

41

	
Reacquired Mortgage Loan

	

41

	
Realized
Loss

	

41

	
Recognition Agreement

	

44

	
Record
Date

	

44

	
Recording Documents

	

44

	
Regular
Interests

	

44

	
Regulation AB

	

44

	
Relief
Act Shortfall

	

44

	
REMIC

	

44

	
REMIC
Provisions

	

44

	
REMIC
I

	

44

	
REMIC I
Assets

	

45

	
REMIC I
Available Distribution Amount

	

45

	
REMIC I
Distribution Amount

	

46

	
REMIC I
Regular Interests

	

47

	
REMIC
II

	

47

	
REMIC II
Assets

	

47

	
REMIC II
Available Distribution Amount

	

47

	
REMIC II
Distribution Amount

	

48

	
REMIC II
Regular Interests

	

51

	
REMIC
III

	

51

	
REMIC
III Assets

	

51

	
REMIC
III Available Distribution Amount

	

51

	
REMIC
III Distribution Amount

	

51

	
REMIC
III Regular Interests

	

57

	
Repurchase Price

	

57

	
Repurchase Proceeds

	

57

	
Residual
Certificates

	

57

	
Residual
Distribution Amount

	

57

	
Responsible Officer

	

58

	
ROV
Mortgage Loan

	

58

	
S&P

	

58

	
Secretary of State

	

58

	
Securities Act

	

58

	
Security
Agreement

	

58

	
Seller

	

58

	
Senior
Certificates

	

59

	
Senior
Subordinate Certificates

	

59

	
Servicer

	

59

	
Servicer
Business Day

	

59

	
Servicing Fee

	

59

	
Servicing Fee Rate

	

59

	
Servicing Officer

	

59

	
Special
Primary Insurance Policy

	

59

	
Special
Primary Insurance Premium

	

59

	
Statutory Trust Statute

	

59

	
Streamlined Mortgage Loan

	

59

	
Subordinate Certificates

	

59

	
Subordinate Component Balance

	

59

	
Subordination Level

	

60

	
Subsequent Recoveries

	

60

	
Substitute Mortgage Loan

	

60

	
Substitution Price

	

60

	
Tax
Matters Person

	

60

	
Termination Date

	

61

	
Termination Payment

	

61

	
Total
Transfer Amount

	

61

	
Transfer

	

61

	
Transferee

	

61

	
Transferee Affidavit and Agreement

	

61

	
Trust

	

61

	
Trustee

	

61

	
Uncollected Interest

	

61

	
Uncompensated Interest Shortfall

	

61

	
Undercollateralized Group

	

62

	
Underwriter

	

62

	
Uninsured Cause

	

62

	
U.S.
Person

	

63

	
VA

	

63

	
Withdrawal Date

	

63

	
ARTICLE
II  Creation of the Trust; Conveyance of the Mortgage Pool
Assets and REMIC I Regular Interests; REMIC Election and
Designations;
Original Issuance of Certificates

	

63

	
Section
2.01.Creation of the Trust

	

63

	
Section
2.02.Restrictions on Activities of the Trust

	

64

	
Section
2.03.Separateness Requirements

	

64

	
Section
2.04.Conveyance of Mortgage Pool Assets; Security
Interest

	

66

	
Section
2.05.Delivery of Mortgage Files

	

67

	
Section
2.06.REMIC Elections for REMIC I and REMIC II

	

68

	
Section
2.07.Acceptance by Trustee

	

70

	
Section
2.08.Representation and Warranty of the Company Concerning the
Mortgage Loans

	

71

	
Section
2.09.Representations and Warranties of Each Seller Concerning the
Mortgage Loans

	

73

	
Section
2.10.Additional Provisions Relating to Repurchases of and
Substitutions for Mortgage Loans by the Company or a
Seller

	

74

	
Section
2.11.Acknowledgment of Transfer of Mortgage Pool Assets

	

75

	
Section
2.12.Conveyance of REMIC III Assets; Security Interest

	

75

	
Section
2.13.REMIC Election for REMIC III

	

76

	
Section
2.14.Acknowledgement of Transfer of REMIC III Assets

	

77

	
Section
2.15.Legal Title

	

77

	
Section
2.16.Compliance with ERISA Requirements

	

77

	
Section
2.17.Additional Representation Concerning the Mortgage
Loans

	

78

	
ARTICLE
III  Administration and Servicing of Mortgage Loans

	

78

	
Section
3.01.The Servicer

	

78

	
Section
3.02.The Custodial Accounts for P&I and Buydown Fund
Accounts

	

80

	
Section
3.03.The Investment Account; Eligible Investments

	

81

	
Section
3.04.The Certificate Account

	

81

	
Section
3.05.Permitted Withdrawals from the Certificate Account, the
Investment Account, the Custodial Accounts for P&I and the
Buydown Fund Accounts

	

83

	
Section
3.06.Maintenance of Primary Insurance Policies; Collections
Thereunder

	

84

	
Section
3.07.Maintenance of Hazard Insurance

	

85

	
Section
3.08.Enforcement of Due-on-Sale Clauses; Assumption
Agreements

	

85

	
Section
3.09.Realization Upon Defaulted Mortgage Loans

	

86

	
Section
3.10.Trustee to Cooperate; Release of Mortgage Files

	

88

	
Section
3.11.Compensation to the Servicer

	

89

	
Section
3.12.[Reserved.]

	

89

	
Section
3.13.Reports on Assessment of Compliance with Servicing Criteria
and Servicing Compliance Statements

	

89

	
Section
3.14.Access to Certain Documentation and Information Regarding the
Mortgage Loans

	

90

	
ARTICLE
IV  Payments to Certificateholders; Payment of
Expenses

	

90

	
Section
4.01.Distributions to Holders of REMIC I Regular Interests and
Class R-1 Residual Interest

	

90

	
Section
4.02.Monthly P&I Advances; Distribution Reports to the
Trustee

	

91

	
Section
4.03.Nonrecoverable Advances

	

93

	
Section
4.04.Distributions to Certificateholders; Payment of Special
Primary Insurance Premiums

	

93

	
Section
4.05.Statements to Certificateholders

	

94

	
ARTICLE
V  The Certificates

	

95

	
Section
5.01.The Certificates

	

95

	
Section
5.02.Certificates Issuable in Classes; Distributions of Principal
and Interest; Authorized Denominations

	

101

	
Section
5.03.Registration of Transfer and Exchange of
Certificates

	

101

	
Section
5.04.Mutilated, Destroyed, Lost or Stolen Certificates

	

102

	
Section
5.05.Persons Deemed Owners

	

102

	
Section
5.06.[Reserved.]

	

102

	
Section
5.07.Book-Entry for Book-Entry Certificates

	

102

	
Section
5.08.Notices to Clearing Agency

	

103

	
Section
5.09.Definitive Certificates

	

103

	
Section
5.10.Office for Transfer of Certificates

	

104

	
Section
5.11.Nature of Certificates

	

104

	
ARTICLE
VI  The Company and the Servicer

	

105

	
Section
6.01.Liability of the Company and the Servicer

	

105

	
Section
6.02.Merger or Consolidation of the Company or the
Servicer

	

105

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

	

105

	
Section
6.04.Neither the Company nor the Servicer May Resign

	

106

	
Section
6.05.Trustee Access 

	

106

	
ARTICLE
VII  Default

	

106

	
Section
7.01.Events of Default

	

106

	
Section
7.02.Trustee to Act; Appointment of Successor

	

109

	
Section
7.03.Notification to Certificateholders

	

110

	
ARTICLE
VIII  Concerning the Trustees

	

110

	
Section
8.01.Duties of Trustees

	

110

	
Section
8.02.Certain Matters Affecting the Trustees

	

111

	
Section
8.03.Trustees Not Liable for Certificates or Mortgage
Loans

	

112

	
Section
8.04.Trustees May Own Certificates

	

113

	
Section
8.05.The Servicer to Pay Trustees’ Fees and
Expenses

	

113

	
Section
8.06.Eligibility Requirements for Trustees

	

113

	
Section
8.07.Resignation and Removal of Trustees

	

114

	
Section
8.08.Successor Trustee

	

114

	
Section
8.09.Merger or Consolidation of Trustee

	

115

	
Section
8.10.Appointment of Co-Trustee or Separate Trustee

	

115

	
Section
8.11.Authenticating Agents

	

116

	
Section
8.12.Paying Agents

	

117

	
Section
8.13.Duties of Delaware Trustee

	

118

	
Section
8.14.Amendment to Certificate of Trust

	

118

	
Section
8.15.[Reserved.]

	

118

	
Section
8.16.Trustees Act on Behalf of Trust

	

118

	
Section
8.17.Limitation of Liability

	

118

	
Section
8.18.Trustee Report on Assessment of Compliance with Servicing
Criteria

	

118

	
ARTICLE
IX  Termination

	

119

	
Section
9.01.Termination Upon Purchase by the Servicer or Liquidation of
All Mortgage Loans

	

119

	
Section
9.02.Additional Termination Requirements

	

123

	
Section
9.03.Trust Irrevocable

	

124

	
ARTICLE
X  Miscellaneous Provisions

	

124

	
Section
10.01.Amendment

	

124

	
Section
10.02.Recordation of Agreement

	

125

	
Section
10.03.Limitation on Rights of Certificateholders

	

126

	
Section
10.04.Access to List of Certificateholders

	

126

	
Section
10.05.Governing Law

	

127

	
Section
10.06.Notices

	

127

	
Section
10.07.Compliance With Regulation AB

	

127

	
Section
10.08.Severability of Provisions

	

128

	
Section
10.09.Counterpart Signatures

	

128

	
Section
10.10.Benefits of Agreement

	

128

	
Section
10.11.Notices and Copies to Rating Agencies

	

128

	
Section
10.12.Covenant Not to Place Trust Into Bankruptcy

	

129

	
Section
10.13.Covenant Not to Place Company Into Bankruptcy

	

129

 

 

	
Exhibit
A

	
Form of
Certificates (other than Class R Certificates)

	
Exhibit
B

	
Form of
Class R Certificates

	
Exhibit
C

	
[Reserved]

	
Exhibit
D

	
Mortgage
Loan Schedule

	
Exhibit
E

	
[Reserved]

	
Exhibit
F

	
Form of
Transferor Certificate For Junior Subordinate
Certificates

	
Exhibit
G

	
Form of
Transferee’s Agreement For Junior Subordinate
Certificates

	
Exhibit
H

	
Form of
Additional Matter Incorporated Into the Certificates

	
Exhibit
I

	
Transferor Certificate

	
Exhibit
J

	
Transferee Affidavit And Agreement

	
Exhibit
K

	
[Reserved]

	
Exhibit
L

	
Form of
Investment Letter

	
Exhibit
M

	
Form of
Trustee’s Certification Pursuant to Section 2.07

	
Exhibit
N

	
Officer’s Certificate With Respect to ERISA
Matters Pursuant to Section 5.01(d)

	
Exhibit
O

	
Officer’s Certificate With Respect to ERISA
Matters Pursuant to Section 5.01(g)

 

This
Pooling and Servicing Agreement, dated as of January 1, 2007 (this
“Agreement”), is by and among WaMu Asset
Acceptance Corp., as depositor (the “Company”),
Washington Mutual Bank, as Servicer, LaSalle Bank National
Association, as Trustee, and Christiana Bank & Trust Company,
as Delaware Trustee.  Capitalized terms used in this Agreement
and not otherwise defined have the meanings ascribed to such terms
in Article I hereof.

PRELIMINARY STATEMENT

The
Company at the Closing Date is the owner of the Mortgage Loans and
the other property being conveyed by it to the Trust. On the
Closing Date, the Company will sell the Mortgage Loans and certain
other assets to the Trust in return for the REMIC I, REMIC II and
REMIC III Regular Interests and the Class R-1, Class R-2 and Class
R-3 Residual Interests and will be the owner of the REMIC I, REMIC
II and REMIC III Regular Interests and the Class R-1, Class R-2 and
Class R-3 Residual Interests.  Thereafter, on the Closing
Date, the Company will acquire the REMIC IV Regular Interests and
the Class R-4 Residual Interest from the Trust as consideration for
its transfer to the Trust of the REMIC I and REMIC III Regular
Interests and will be the owner of the REMIC IV Regular Interests
and the Class R-4 Residual Interest.  The Company has duly
authorized the execution and delivery of this Agreement to provide
for (i) the sale to the Trust of the Mortgage Loans and certain
other assets, (ii) the issuance to the Company of the REMIC I,
REMIC II and REMIC III Regular Interests and the Class R-1, Class
R-2 and Class R-3 Residual Interests representing in the aggregate
the entire beneficial interest in REMIC I, REMIC II and REMIC III,
(iii) the conveyance to the Trust of the REMIC I and REMIC III
Regular Interests and (iv) the issuance to the Company of the REMIC
IV Regular Interests and the Class R-4 Residual Interest
representing in the aggregate the entire beneficial interest in
REMIC IV. The Company and the Servicer are entering into this
Agreement, and the Trustee and the Delaware Trustee are each
accepting the trust created hereby, for good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged.

The Certificates issued hereunder, other than the
Junior Subordinate Certificates, have been offered for sale
pursuant to a Prospectus, dated January 11, 2007, and a Prospectus
Supplement, dated January 22, 2007, of the Company (together, the
“Prospectus”). The Junior Subordinate
Certificates have been offered for sale pursuant to a Private
Placement Memorandum, dated January 24, 2007. The Trust created
hereunder is the “Trust” described in the Prospectus
and the Private Placement Memorandum and the Certificates are the
“Certificates” described therein. The following tables
set forth the designation, type of interest, Certificate Interest
Rate, initial Class Principal Balance and Final Maturity Date for
the REMIC I Regular Interests, the REMIC II Regular Interests, the
REMIC III Regular Interests, the REMIC IV Regular Interests and the
Class R Residual Interests:

 

REMIC I
Interests

	
Class Designation for each REMIC I Regular
Interest and the Class R-1 Residual Interest

	
 

	
Type of Interest

	
 

	
Certificate Interest

 Rate (1)

	
 

	
Initial Class

 Principal

 Balance

	
 

	
Final Maturity

 Date*

	
 

	
Class Y-1

	
 

	
Regular

	
 

	
Variable (2)

	
 

	
$      
328,999.27

	
 

	
January
2039

	
 

	
Class Y-2

	
 

	
Regular

	
 

	
Variable (3)

	
 

	
375,581.17

	
 

	
January
2039

	
 

	
Class Z-1

	
 

	
Regular

	
 

	
Variable (2)

	
 

	
657,669,537.19

	
 

	
January
2039

	
 

	
Class Z-2

	
 

	
Regular

	
 

	
Variable (3)

	
 

	
750,800,919.73

	
 

	
January
2039

	
 

	
Class R-1†

	
 

	
Residual

	
 

	
5.7322%

	
 

	
100.00

	
 

	
January
2039

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

*            
The Distribution Date in the specified month, which is two years
following the month in which the latest maturing Mortgage Loan in
the related Loan Group matures. For federal income tax purposes,
for each Class of REMIC I Regular and Residual Interests, the
“latest possible maturity date” shall be the Final
Maturity Date.

	

†             
The Class R-1 Residual Interest is entitled to receive the
applicable Residual Distribution Amount and any Groups 1-2 Excess
Liquidation Proceeds.

	

(1)          
Interest distributed to the REMIC I Regular Interests and the Class
R-1 Residual Interest on each Distribution Date will have accrued
at the applicable per annum Certificate Interest Rate on the
applicable Class Principal Balance outstanding immediately before
such Distribution Date.

	

(2)          
For each Distribution Date, the Certificate
Interest Rate on the Class Y-1 and Class Z-1 Regular Interests
shall equal the Loan Group 1 Weighted Average Pass-Through Rate for
such Distribution Date.

	

(3)          
For each Distribution Date, the Certificate
Interest Rate on the Class Y-2 and Class Z-2 Regular Interests
shall equal the Loan Group 2 Weighted Average Pass-Through Rate for
such Distribution Date.

As
provided herein, with respect to REMIC I, the Servicer will cause
an election to be made on behalf of REMIC I to be treated for
federal income tax purposes as a REMIC. The REMIC I Regular
Interests will be designated regular interests in REMIC I and the
Class R-1 Residual Interest will be designated the sole class of
residual interest in REMIC I, for purposes of the REMIC
Provisions.

 

REMIC II
Interests

	
 

	
Class Designation for each Class of REMIC II
Regular Interests and the Class R-2 Residual Interest

	
 

	
Type of Interest

	
 

	
Certificate Interest

 Rate (1)

	
 

	
Initial Class

 Principal

 Balance

	
 

	
Final Maturity

 Date*

	
 

	
 

	
Class 3-A1

	
 

	
Regular

	
 

	
Variable (2)

	
 

	
$175,621,000.00

	
 

	
January
2039

	
 

	
Class 3-A2

	
 

	
Regular

	
 

	
Variable (2)

	
 

	
55,650,000.00

	
 

	
January
2039

	
 

	
Class 3-A3

	
 

	
Regular

	
 

	
Variable (2)

	
 

	
77,090,000.00

	
 

	
January
2039

	
 

	
Class 3-A4

	
 

	
Regular

	
 

	
Variable (2)

	
 

	
10,689,000.00

	
 

	
January
2039

	
 

	
Class 3-B-1

	

 

	
Regular

	

 

	
Variable (2)

	

 

	
5,117,000.00

	
 

	
January
2039

	
 

	
Class 3-B-2

	

 

	
Regular

	

 

	
Variable (2)

	

 

	
2,310,000.00

	
 

	
January
2039

	
 

	
Class 3-B-3

	
 

	
Regular

	
 

	
Variable (2)

	
 

	
1,155,000.00

	
 

	
January
2039

	
 

	
Class 3-B-4

	
 

	
Regular

	
 

	
Variable (2)

	

 

	
1,155,000.00

	
 

	
January
2039

	
 

	
Class 3-B-5

	
 

	
Regular

	
 

	
Variable (2)

	

 

	
825,000.00

	
 

	
January
2039

	
 

	
Class 3-B-6

	
 

	
Regular

	
 

	
Variable (2)

	

 

	
497,422.05

	
 

	
January
2039

	
 

	
Class R-2 (3)

	
 

	
Residual

	
 

	
-----

	
 

	
-----

	
 

	
January
2039

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
*            
The Distribution Date in the specified month, which is two years
following the month in which the latest maturing Mortgage Loan in
the related Loan Group matures.  For federal income tax
purposes, for each Class of REMIC II Regular and Residual
Interests, the “latest possible maturity date” shall be
the Final Maturity Date.

	
(1)          
Interest distributed to the REMIC II Regular Interests on each
Distribution Date will have accrued at the applicable per annum
Certificate Interest Rate on the applicable Class Principal Balance
outstanding immediately before such Distribution Date.

	
(2)          
The Certificate Interest Rate on each Class
of Group 3-A and Group 3-B Certificates for each Distribution Date
shall equal the Loan Group 3 Weighted Average Pass-Through Rate for
such Distribution Date.

	

(3)          
The Class R-2 Residual Interest shall be entitled to receive the
applicable Residual Distribution Amount and any Group 3 Excess
Liquidation Proceeds.  The Class R-2 Residual Interest shall
not be entitled to receive any distributions of interest or
principal.

											

As
provided herein, with respect to REMIC II, the Servicer will cause
an election to be made on behalf of REMIC II to be treated for
federal income tax purposes as a REMIC. The REMIC II Regular
Interests will be designated regular interests in REMIC II and the
Class R-2 Residual Interest will be designated the sole class of
residual interest in REMIC II, for purposes of the REMIC
Provisions.

 

REMIC III
Interests

	
Class Designation for each REMIC III Regular
Interest and the Class R-3 Residual Interest

	
 

	
Type of Interest

	
 

	
Certificate Interest

 Rate (1)

	
 

	
Initial Class

 Principal

 Balance

	
 

	
Final Maturity

 Date*

	
Class Y-4

	
 

	
Regular

	
 

	
Variable (2)

	
 

	
$      
363,393.76

	
 

	
July
2038

	
Class Y-5

	
 

	
Regular

	
 

	
Variable (3)

	
 

	
287,615.66

	
 

	
July
2038

	
Class Z-4

	
 

	
Regular

	
 

	
Variable (2)

	
 

	
726,433,945.01

	
 

	
July
2038

	
Class Z-5

	
 

	
Regular

	
 

	
Variable (3)

	
 

	
574,943,712.70

	
 

	
July
2038

	
Class R-3†

	
 

	
Residual

	
 

	
-----

	
 

	
-----

	
 

	
July
2038

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

*            
The Distribution Date in the specified month, which is two years
following the month in which the latest maturing Mortgage Loan in
the related Loan Group matures. For federal income tax purposes,
for each Class of REMIC I Regular and Residual Interests, the
“latest possible maturity date” shall be the Final
Maturity Date.

	

†             
The Class R-3 Residual Interest is entitled to receive the
applicable Residual Distribution Amount and any Groups 4-5 Excess
Liquidation Proceeds. The Class R-3 Residual Interest shall not be
entitled to receive any distributions of interest or
principal.

	

(1)          
Interest distributed to the REMIC III Regular Interests and the
Class R-3 Residual Interest on each Distribution Date will have
accrued at the applicable per annum Certificate Interest Rate on
the applicable Class Principal Balance outstanding immediately
before such Distribution Date.

	

(2)          
For each Distribution Date, the Certificate
Interest Rate on the Class Y-4 and Class Z-4 Regular Interests
shall equal the Loan Group 4 Weighted Average Pass-Through Rate for
such Distribution Date.

	

(3)          
For each Distribution Date, the Certificate
Interest Rate on the Class Y-5 and Class Z-5 Regular Interests
shall equal the Loan Group 5 Weighted Average Pass-Through Rate for
such Distribution Date.

As
provided herein, with respect to REMIC III, the Servicer will cause
an election to be made on behalf of REMIC III to be treated for
federal income tax purposes as a REMIC. The REMIC III Regular
Interests will be designated regular interests in REMIC III and the
Class R-3 Residual Interest will be designated the sole class of
residual interest in REMIC III, for purposes of the REMIC
Provisions.

 

REMIC IV
Interests

	
Class Designation for each Class of REMIC IV
Regular Interests and the Class R-4 Residual Interest

	
 

	
Type of Interest

	
 

	
Certificate Interest

 Rate (1)

	
 

	
Initial Class

 Principal

 Balance

	
 

	
Final Maturity

 Date*

	
 

	
Class
1-A1

	
 

	
Regular

	
 

	
Variable
(2)

	
 

	
$603,886,000.00

	
 

	
January
2039

	
Class
1-A2

	
 

	
Regular

	
 

	
Variable
(2)

	
 

	
26,476,000.00

	
 

	
January
2039

	
Class
2-A1

	
 

	
Regular

	
 

	
Variable
(3)

	
 

	
258,607,000.00

	
 

	
January
2039

	
Class
2-A2A

	
 

	
Regular

	
 

	
Variable
(3)

	
 

	
82,753,000.00

	
 

	
January
2039

	
Class
2-A2B

	
 

	
Regular

	
 

	
Variable
(3)

	
 

	
3,449,000.00

	
 

	
January
2039

	
Class
2-A3

	
 

	
Regular

	
 

	
Variable
(3)

	
 

	
343,262,000.00

	
 

	
January
2039

	
Class
2-A4

	
 

	
Regular

	
 

	
Variable
(3)

	
 

	
31,556,000.00

	
 

	
January
2039

	
Class
4-A1

	
 

	
Regular

	
 

	
Variable
(4)

	
 

	
655,932,000.00

	
 

	
July
2038

	
Class
4-A2

	
 

	
Regular

	
 

	
Variable
(4)

	
 

	
34,525,000.00

	
 

	
July
2038

	
Class
5-A1

	
 

	
Regular

	
 

	
Variable
(5)

	
 

	
519,145,000.00

	
 

	
July
2038

	
Class
5-A2

	
 

	
Regular

	
 

	
Variable
(5)

	
 

	
27,324,000.00

	
 

	
July
2038

	
Class
L-B-1

	
 

	
Regular

	
 

	
Variable
(6)

	
 

	
25,365,000.00

	
 

	
January
2039

	
Class
L-B-2

	
 

	
Regular

	
 

	
Variable
(6)

	
 

	
12,682,000.00

	
 

	
January
2039

	
Class
L-B-3

	
 

	
Regular

	
 

	
Variable
(6)

	
 

	
7,045,000.00

	
 

	
January
2039

	
Class
L-B-4

	
 

	
Regular

	
 

	
Variable
(6)

	
 

	
6,341,000.00

	
 

	
January
2039

	
Class
L-B-5

	
 

	
Regular

	
 

	
Variable
(6)

	
 

	
4,227,000.00

	
 

	
January
2039

	
Class
L-B-6

	
 

	
Regular

	
 

	
Variable
(6)

	
 

	
3,526,037.36

	
 

	
January
2039

	
Class
M-B-1

	
 

	
Regular

	
 

	
Variable
(7)

	
 

	
27,343,000.00

	
 

	
July
2038

	
Class
M-B-2

	
 

	
Regular

	
 

	
Variable
(7)

	
 

	
13,020,000.00

	
 

	
July
2038

	
Class
M-B-3

	
 

	
Regular

	
 

	
Variable
(7)

	
 

	
7,812,000.00

	
 

	
July
2038

	
Class
M-B-4

	
 

	
Regular

	
 

	
Variable
(7)

	
 

	
7,161,000.00

	
 

	
July
2038

	
Class
M-B-5

	
 

	
Regular

	
 

	
Variable
(7)

	
 

	
5,859,000.00

	
 

	
July
2038

	
Class
M-B-6

	
 

	
Regular

	
 

	
Variable
(7)

	
 

	
3,907,667.13

	
 

	
July
2038

	
Class
R-4 (8)

	
 

	
Residual

	
 

	
   -----

	
 

	
-----

	
 

	
January
2039

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
*            
The Distribution Date in the specified month, which is two years
following the month in which the latest maturing Mortgage Loan in
the related Loan Group (or Loan Groups, as applicable)
matures.  For federal income tax purposes, for each Class of
REMIC IV Regular and Residual Interests, the “latest possible
maturity date” shall be the Final Maturity Date.

	
 

	
(1)          
Interest distributed to the REMIC IV Regular Interests on each
Distribution Date will have accrued at the applicable per annum
Certificate Interest Rate on the applicable Class Principal Balance
outstanding immediately before such Distribution Date.

	
 

	
(2)          
The Certificate Interest Rate on each Class
of Group 1-A Certificates for each Distribution Date shall equal
the Loan Group 1 Weighted Average Pass-Through Rate for such
Distribution Date.

	
 

	
(3)          
The Certificate Interest Rate on each Class
of Group 2-A Certificates for each Distribution Date shall equal
the Loan Group 2 Weighted Average Pass-Through Rate for such
Distribution Date.

	
 

	
(4)          
The Certificate Interest Rate on each Class
of Group 4-A Certificates for each Distribution Date shall equal
the Loan Group 4 Weighted Average Pass-Through Rate for such
Distribution Date.

	
 

	
(5)          
The Certificate Interest Rate on each Class
of Group 5-A Certificates for each Distribution Date shall equal
the Loan Group 5 Weighted Average Pass-Through Rate for such
Distribution Date.

	
 

	
(6)          
The Certificate Interest Rate on each Class of Group L-B
Certificates for each Distribution Date shall equal the Group L-B
Weighted Average Pass-Through Rate for such Distribution
Date.

 

	
 

	
(7)          
The Certificate Interest Rate on each Class of Group M-B
Certificates for each Distribution Date shall equal the Group M-B
Weighted Average Pass-Through Rate for such Distribution
Date.

 

	
 

	

(8)          
The Class R-4 Residual Interest shall be entitled to receive the
applicable Residual Distribution Amount.  The Class R-4
Residual Interest shall not be entitled to receive any
distributions of interest or principal.

	
 

											

As
provided herein, with respect to REMIC IV, the Servicer will cause
an election to be made on behalf of REMIC IV to be treated for
federal income tax purposes as a REMIC.  The REMIC IV Regular
Interests will be designated regular interests in REMIC IV and the
Class R-4 Residual Interest will be designated the sole class of
residual interest in REMIC IV, for purposes of the REMIC
Provisions.

In
addition, the Trust will issue the Class R Certificates, which will
represent ownership of the Class R-1, Class R-2, Class R-3 and
Class R-4 Residual Interests.

As of
the Cut-Off Date, the Mortgage Loans have an aggregate Principal
Balance of $3,041,313,226.54 and, as of the Closing Date, the
Certificates have an Aggregate Certificate Principal Balance of
$3,041,313,226.54.

W I T N E S S E T H :

WHEREAS, the Company is a corporation duly
organized and existing under and by virtue of the laws of the State
of Delaware and has full corporate power and authority to enter
into this Agreement and to undertake the obligations undertaken by
it herein;

WHEREAS, the Servicer is a federal savings
association and has full power and authority to enter into this
Agreement and to undertake the obligations undertaken by it
herein;

WHEREAS, the Trustee is a national banking
association duly organized and existing under the laws of the
United States of America and has full power and authority to enter
into this Agreement;

WHEREAS, the Delaware Trustee is a banking
corporation duly organized and existing under the laws of the State
of Delaware and has full power and authority to enter into this
Agreement;

WHEREAS, prior to the execution and delivery
hereof, the Company and the Delaware Trustee have entered into the
Original Trust Agreement, and the Delaware Trustee has filed the
Certificate of Trust;

WHEREAS, it is the intention of the Company, the
Servicer, the Trustee and the Delaware Trustee that the Trust
created by this Agreement constitute a statutory trust under the
Statutory Trust Statute, that this Agreement constitute the
governing instrument of the Trust, and that this Agreement amend
and restate the Original Trust Agreement;

WHEREAS, the Company is the owner of the Mortgage
Loans identified in the Mortgage Loan Schedule hereto having unpaid
Principal Balances on the Cut-Off Date as stated therein;
and

WHEREAS, the Company has been duly authorized to
create the Trust to (i) hold the Mortgage Loans and certain other
property, (ii) issue the REMIC I, REMIC II and REMIC III Regular
Interests and the Class R-1, Class R-2 and Class R-3 Residual
Interests, (iii) hold the REMIC I and REMIC III Regular Interests
and (iv) issue the REMIC IV Regular Interests and the Class R-4
Residual Interest.

NOW,
THEREFORE, in order to declare the terms and conditions upon which
the REMIC I Regular Interests, the REMIC II Regular Interests, the
REMIC III Regular Interests, the REMIC IV Regular Interests, the
Class R Residual Interests and the Certificates are to be issued,
and in consideration of the premises and of the purchase and
acceptance of the Certificates by the Holders thereof, the Company
covenants and agrees with the Servicer, the Trustee and the
Delaware Trustee, for the equal and proportionate benefit of the
respective Holders from time to time of the REMIC I Regular
Interests, the REMIC II Regular Interests, the REMIC III Regular
Interests, the REMIC IV Regular Interests and the Certificates, as
applicable, as follows:

ARTICLE I

Section
1.01.       
Definitions.

Whenever used in this Agreement, the following
words and phrases, unless the context otherwise requires, shall
have the following meanings:

Adjustment Date:  As to each Mortgage Loan, a Due Date on
or about the fifth anniversary (in the case of the Group 1 Loans
and the Group 4 Loans), on or about the seventh anniversary (in the
case of the Group 2 Loans and the Group 5 Loans) and on or about
the tenth anniversary (in the case of the Group 3 Loans) of the
first Due Date and annually thereafter, as set forth in the related
Mortgage Note, on which date an adjustment to the Mortgage Interest
Rate of such Mortgage Loan becomes effective.

Aggregate Certificate Principal
Balance: At any given time, the sum of the then current
Class Principal Balances of the Certificates.

Agreement: The meaning specified in
the introductory paragraph hereof.

Appraised Value:  With respect to
any (i) Mortgage Loan that is not a Streamlined Mortgage Loan
or ROV Mortgage Loan, the lesser of (a) the value set forth on the
appraisal made in connection with the origination of such Mortgage
Loan as the value of the related Mortgaged Property and (b) the
purchase price paid for the Mortgaged Property, provided,
however, that if such Mortgage Loan was originated in
connection with the refinance of a mortgage loan, the Appraised
Value shall be the value set forth on the appraisal made in
connection with the origination of such Mortgage Loan as the value
of the related Mortgaged Property; (ii) ROV Mortgage Loan, the
lesser of (a) the value set forth on the residential appraisal
review made in connection with the origination of such Mortgage
Loan as the value of the related Mortgaged Property and (b) the
purchase price paid for the Mortgaged Property, provided,
however, that if such ROV Mortgage Loan was originated in
connection with the refinance of a mortgage loan, the Appraised
Value shall be the value set forth on the residential appraisal
review made in connection with the origination of such ROV Mortgage
Loan as the value of the related Mortgaged Property; and
(iii) Streamlined Mortgage Loan, the value set forth in the
appraisal made in connection with the origination of the mortgage
loan being refinanced.

Assignment of Proprietary Lease: With
respect to a Cooperative Loan, the assignment or mortgage of the
related Cooperative Lease from the Mortgagor to the originator of
the Cooperative Loan.

Authenticating Agent: Any
authenticating agent appointed by the Trustee pursuant to Section
8.11.

Authorized Denomination:  With
respect to each Class of Certificates (other than the Class R
Certificates), an initial Certificate Principal Balance equal to
$25,000 and multiples of $1 in excess thereof, except that one
Certificate of each Class of the Junior Subordinate Certificates
may be issued in an amount that is not an integral multiple of $1.
 With respect to the Class R Certificates, one Certificate
with a Percentage Interest equal to 0.01% and one Certificate with
a Percentage Interest equal to 99.99%.

Balloon Loan: Any Mortgage Loan which,
by its terms, does not fully amortize the principal balance thereof
by its stated maturity and thus requires a payment at the stated
maturity larger than the monthly payments due thereunder.

Bankruptcy Loss: For any Distribution
Date and any Mortgage Loan, (i) the amount of any permanent
forgiveness of principal with respect to such Mortgage Loan by a
court of competent jurisdiction in a case under the United States
Bankruptcy Code as of the related Due Date, other than any such
forgiveness of principal that arises out of clause (ii) of this
definition of “Bankruptcy Loss,” or (ii) the amount, if
any, by which the then outstanding principal balance of such
Mortgage Loan exceeds any valuation, as of the related Due Date, by
a court of competent jurisdiction in a case under the United States
Bankruptcy Code, of the related Mortgaged Property, in each case,
to the extent not previously allocated to the Certificates as a
Realized Loss.

Beneficial Holder: A Person holding a
beneficial interest in any Book-Entry Certificate as or through a
DTC Participant or an Indirect DTC Participant or a Person holding
a beneficial interest in any Definitive Certificate.

Benefit Plan Opinion: With respect to
any Certificate presented for registration in the name of any
Person, an Opinion of Counsel acceptable to and in form and
substance satisfactory to the Trustee and the Company to the effect
that the purchase or holding of such Certificate is permissible
under applicable law, will not constitute or result in a non-exempt
prohibited transaction under Section 406 of ERISA or Section 4975
of the Code, and will not subject the Trust, the Trustee, the
Delaware Trustee, the Servicer or the Company to any obligation or
liability (including obligations or liabilities under Section 406
of ERISA or Section 4975 of the Code) in addition to those
undertaken in this Agreement, which Opinion of Counsel shall not be
an expense of the Trust, the Trustee, the Delaware Trustee, the
Servicer or the Company.

Book-Entry Certificates: The Class A
and Senior Subordinate Certificates, beneficial ownership and
transfers of which shall be made through book entries as described
in Section 5.07.

Business Day: Any day other than a
Saturday, a Sunday, or a day on which banking institutions in
Stockton, California, Chicago, Illinois, New York, New York,
Seattle, Washington or any city in which the Corporate Trust Office
is located are authorized or obligated by law or executive order to
be closed.

Buydown Agreement: An agreement
between a Person and a Mortgagor pursuant to which such Person has
provided a Buydown Fund.

Buydown Fund: A fund provided by the
originator of a Mortgage Loan or another Person with respect to a
Buydown Loan which provides an amount sufficient to subsidize
regularly scheduled principal and interest payments due on such
Buydown Loan for a period. Buydown Funds may be (i) funded at the
par values of future payment subsidies, or (ii) funded in an amount
less than the par values of future payment subsidies, and
determined by discounting such par values in accordance with
interest accruing on such amounts, in which event they will be
deposited in an account bearing interest. Buydown Funds may be held
in a separate Buydown Fund Account or may be held in a Custodial
Account for P&I and monitored by the Servicer.

Buydown Fund Account: A separate
account created and maintained pursuant to Section 3.02 (a) with
the corporate trust department of the Trustee or another financial
institution selected by the Servicer, (b) within FDIC insured
accounts created, maintained and monitored by the Servicer or (c)
in a separate account in an Eligible Institution. Such account may
be non-interest bearing or may bear interest. In the event that a
Buydown Fund Account is established pursuant to clause (b) of the
preceding sentence, amounts held in such Buydown Fund Account shall
not exceed the level of deposit insurance coverage on such account;
accordingly, more than one Buydown Fund Account may be
established.

Buydown Loan: A Mortgage Loan for
which the Mortgage Interest Rate has been subsidized through a
Buydown Fund provided at the time of origination of such Mortgage
Loan.

Carry-Forward Subsequent Recoveries
Amount: For any Distribution Date and any of Loan Group
1, Loan Group 2, Loan Group 3, Loan Group 4 or Loan Group 5, the
excess, if any, of (i) the Subsequent Recoveries for such
Distribution Date for such Loan Group over (ii) the amount by which
the Class Principal Balance of the Class of Group L-B Certificates,
Group 3-B Certificates or Group M-B Certificates, as applicable,
with the lowest priority is increased in respect of Subsequent
Recoveries for such Loan Group on such Distribution Date pursuant
to the definition of “Class Principal Balance”
herein.

Certificate: Any one of the
Certificates issued pursuant to this Agreement, executed by the
Trustee on behalf of the Trust and authenticated by or on behalf of
the Trustee hereunder in substantially one of the forms set forth
in Exhibit A and B hereto. The additional matter appearing in
Exhibit H shall be deemed incorporated into Exhibit A as though set
forth at the end of such Exhibit.

Certificate Account: The separate
trust account created pursuant to Section 3.04 and maintained with
the Trustee, the Investment Depository or any Eligible Institution,
which account shall be entitled “WaMu Mortgage Pass-Through
Certificates Series 2007-HY1 Trust Certificate Account”.
Funds in the Certificate Account may be invested in Eligible
Investments pursuant to Section 3.04(d) and reinvestment earnings
thereon shall be paid to the Servicer as additional servicing
compensation. Funds deposited in the Certificate Account (exclusive
of the Servicing Fee) shall be held in trust for the
Certificateholders and for the uses and purposes set forth in
Section 2.01, Section 3.04, Section 3.05, Section 4.01 and Section
4.04.

Certificateholder or Holder: With
respect to the Certificates, the Person in whose name a Certificate
is registered in the Certificate Register, except that, solely for
the purposes of giving any consent pursuant to this Agreement, any
Certificate registered in the name of the Company, the Servicer or
any affiliate thereof shall be deemed not to be outstanding and the
Percentage Interest evidenced thereby shall not be taken into
account in determining whether the requisite percentage of
Percentage Interests necessary to effect any such consent has been
obtained; provided, that the Trustee may conclusively rely
upon an Officer’s Certificate to determine whether any Person
is an affiliate of the Company or the Servicer. With respect to the
REMIC I Regular Interests and REMIC III Regular Interests, the
owner of the REMIC I Regular Interests and REMIC III Regular
Interests, which as of the Closing Date shall be the Trust.

Certificate Group: The Group 1-A
Certificates, Group 2-A Certificates, Group 3-A Certificates, Group
4-A Certificates or Group 5-A Certificates, as applicable.

Certificate Interest Rate: For each
Class of REMIC I Regular Interests, REMIC II Regular Interests,
REMIC III Regular Interests and REMIC IV Regular Interests and the
Class R-1 Residual Interest, the per annum rate set forth as the
Certificate Interest Rate for such Class in the Preliminary
Statement hereto.

Certificate of Trust: The certificate
of trust filed with respect to the Trust with the Secretary of
State in accordance with Section 3810(a) of the Statutory Trust
Statute.

Certificate Principal Balance: 
For each Certificate of any Class, the portion of the related Class
Principal Balance, if any, represented by such Certificate.

Certificate Register and Certificate
Registrar: The register maintained and the registrar
appointed, respectively, pursuant to Section 5.03.

Class: All REMIC I Regular Interests
or the Class R-1 Residual Interest having the same priority and
rights to payments on the Group 1 and Group 2 Loans from the REMIC
I Available Distribution Amount, all REMIC II Regular Interests or
the Class R-2 Residual Interest having the same priority and rights
to payments on the Group 3 Loans from the REMIC II Available
Distribution Amount, all REMIC III Regular Interests or the Class
R-3 Residual Interest having the same priority and rights to
payments on the Group 4 and Group 5 Loans from the REMIC III
Available Distribution Amount and all REMIC IV Regular Interests or
the Class R-4 Residual Interest having the same priority and rights
to payments on the REMIC I Regular Interests and REMIC III Regular
Interests from the REMIC IV Available Distribution Amount, as
applicable, which REMIC I Regular Interests, REMIC II Regular
Interests, REMIC III Regular Interests, REMIC IV Regular Interests
and Class R Residual Interests, as applicable, shall be designated
as a separate Class, and which, in the case of the Certificates
(including the Class R Certificates representing ownership of the
Class R Residual Interests), shall be set forth in the applicable
forms of Certificates attached hereto as Exhibits A and B. Each
Class of REMIC I Regular Interests and the Class R-1 Residual
Interest shall be entitled to receive the amounts allocated to such
Class pursuant to the definition of “REMIC I Distribution
Amount” only to the extent of the REMIC I Available
Distribution Amount for such Distribution Date remaining after
distributions in accordance with prior clauses of the definition of
“REMIC I Distribution Amount,” each Class of REMIC II
Regular Interests and the Class R-2 Residual Interest shall be
entitled to receive the amounts allocated to such Class pursuant to
the definition of “REMIC II Distribution Amount” only
to the extent of the REMIC II Available Distribution Amount for
such Distribution Date remaining after distributions in accordance
with prior clauses of the definition of “REMIC II
Distribution Amount”, each Class of REMIC III Regular
Interests and the Class R-3 Residual Interest shall be entitled to
receive the amounts allocated to such Class pursuant to the
definition of “REMIC III Distribution Amount” only to
the extent of the REMIC III Available Distribution Amount for such
Distribution Date remaining after distributions in accordance with
prior clauses of the definition of “REMIC III Distribution
Amount” and each Class of REMIC IV Regular Interests and the
Class R-4 Residual Interest shall be entitled to receive the
amounts allocated to such Class pursuant to the definition of
“REMIC IV Distribution Amount” only to the extent of
the REMIC IV Available Distribution Amount for such Distribution
Date remaining after distributions in accordance with prior clauses
of the definition of “REMIC IV Distribution
Amount.”

Class 1-A1 Certificates:  The
Certificates designated as “Class 1-A1” on the face
thereof in substantially the form attached hereto as Exhibit A.

Class 1-A2 Certificates:  The
Certificates designated as “Class 1-A2” on the face
thereof in substantially the form attached hereto as Exhibit A.

Class 2-A1 Certificates:  The
Certificates designated as “Class 2-A1” on the face
thereof in substantially the form attached hereto as Exhibit A.

Class 2-A2A Certificates:  The
Certificates designated as “Class 2-A2A” on the face
thereof in substantially the form attached hereto as Exhibit A.

Class 2-A2B Certificates:  The
Certificates designated as “Class 2-A2B” on the face
thereof in substantially the form attached hereto as Exhibit A.

Class 2-A3 Certificates:  The
Certificates designated as “Class 2-A3” on the face
thereof in substantially the form attached hereto as Exhibit A.

Class 2-A4 Certificates:  The
Certificates designated as “Class 2-A4” on the face
thereof in substantially the form attached hereto as Exhibit A.

Class 3-A1 Certificates:  The
Certificates designated as “Class 3-A1” on the face
thereof in substantially the form attached hereto as Exhibit A.

Class 3-A2 Certificates:  The
Certificates designated as “Class 3-A2” on the face
thereof in substantially the form attached hereto as Exhibit A.

Class 3-A3 Certificates:  The
Certificates designated as “Class 3-A3” on the face
thereof in substantially the form attached hereto as Exhibit A.

Class 3-A4 Certificates:  The
Certificates designated as “Class 3-A4” on the face
thereof in substantially the form attached hereto as Exhibit A.

Class 3-B-1 Certificates:  The
Certificates designated as “Class 3-B-1” on the face
thereof in substantially the form attached hereto as Exhibit A.

Class 3-B-2 Certificates:  The
Certificates designated as “Class 3-B-2” on the face
thereof in substantially the form attached hereto as Exhibit A.

Class 3-B-3 Certificates:  The
Certificates designated as “Class 3-B-3” on the face
thereof in substantially the form attached hereto as Exhibit A.

Class 3-B-4 Certificates:  The
Certificates designated as “Class 3-B-4” on the face
thereof in substantially the form attached hereto as Exhibit A.

Class 3-B-5 Certificates:  The
Certificates designated as “Class 3-B-5” on the face
thereof in substantially the form attached hereto as Exhibit A.

Class 3-B-6 Certificates:  The
Certificates designated as “Class 3-B-6” on the face
thereof in substantially the form attached hereto as Exhibit A.

Class 4-A1 Certificates:  The
Certificates designated as “Class 4-A1” on the face
thereof in substantially the form attached hereto as Exhibit A.

Class 4-A2 Certificates:  The
Certificates designated as “Class 4-A2” on the face
thereof in substantially the form attached hereto as Exhibit A.

Class 5-A1 Certificates:  The
Certificates designated as “Class 5-A1” on the face
thereof in substantially the form attached hereto as Exhibit A.

Class 5-A2 Certificates:  The
Certificates designated as “Class 5-A2” on the face
thereof in substantially the form attached hereto as Exhibit A.

Class A Certificates:  The Group
1-A, Group 2-A, Group 3-A, Group 4-A and Group 5-A
Certificates.

Class L-B-1 Certificates:  The
Certificates designated as “Class L-B-1” on the face
thereof in substantially the form attached hereto as Exhibit A.

Class L-B-2 Certificates:  The
Certificates designated as “Class L-B-2” on the face
thereof in substantially the form attached hereto as Exhibit A.

Class L-B-3 Certificates:  The
Certificates designated as “Class L-B-3” on the face
thereof in substantially the form attached hereto as Exhibit A.

Class L-B-4 Certificates:  The
Certificates designated as “Class L-B-4” on the face
thereof in substantially the form attached hereto as Exhibit A.

Class L-B-5 Certificates:  The
Certificates designated as “Class L-B-5” on the face
thereof in substantially the form attached hereto as Exhibit A.

Class L-B-6 Certificates:  The
Certificates designated as “Class L-B-6” on the face
thereof in substantially the form attached hereto as Exhibit A.

Class M-B-1 Certificates:  The
Certificates designated as “Class M-B-1” on the face
thereof in substantially the form attached hereto as Exhibit A.

Class M-B-2 Certificates:  The
Certificates designated as “Class M-B-2” on the face
thereof in substantially the form attached hereto as Exhibit A.

Class M-B-3 Certificates:  The
Certificates designated as “Class M-B-3” on the face
thereof in substantially the form attached hereto as Exhibit A.

Class M-B-4 Certificates:  The
Certificates designated as “Class M-B-4” on the face
thereof in substantially the form attached hereto as Exhibit A.

Class M-B-5 Certificates:  The
Certificates designated as “Class M-B-5” on the face
thereof in substantially the form attached hereto as Exhibit A.

Class M-B-6 Certificates:  The
Certificates designated as “Class M-B-6” on the face
thereof in substantially the form attached hereto as Exhibit A.

Class Principal Balance:  For any
Class of REMIC I, REMIC II, REMIC III or REMIC IV Regular
Interests and for the Class R-1 Residual Interest, the applicable
initial Class Principal Balance therefor set forth in the
Preliminary Statement hereto (or, in the case of the Class R
Certificates, the Class Principal Balance of the Class R-1 Residual
Interest), corresponding to the rights of such Class in payments of
principal due to be passed through to such Class from principal
payments on the Mortgage Loans, REMIC I Regular Interests or the
REMIC III Regular Interests, as applicable, as reduced from time to
time by (x) distributions of principal to such Class and (y) the
portion of Realized Losses allocated to the Class Principal Balance
of such Class pursuant to the definition of “Realized
Loss” with respect to a given Distribution Date. For any
Distribution Date, the reduction of the Class Principal Balance of
any Class of REMIC II or REMIC IV Regular Interests pursuant to the
definition of “Realized Loss” shall be deemed effective
after the determination and distribution of principal on such Class
pursuant to the definitions of “REMIC II Distribution
Amount” and “REMIC IV Distribution Amount”, as
applicable. For any Distribution Date, the reduction of the Class
Principal Balance of any Class of REMIC I or REMIC III Regular
Interests pursuant to the definition of “Realized Loss”
shall be deemed effective before the determination and distribution
of principal on such Class pursuant to the definitions of
“REMIC I Distribution Amount” and “REMIC III
Distribution Amount”, as applicable.

Notwithstanding the foregoing, (A) any amounts
distributed in respect of Realized Losses allocable to principal
pursuant to paragraph (I)(C)(xix), (II)(A)(v) or (II)(B)(v) of the
definition of “REMIC IV Distribution Amount” shall not
cause a reduction in the Class Principal Balances of the Group 1,
Group 2, Group 4, Group 5, Group L-B or Group M-B Certificates and
(B) any amounts distributed in respect of Realized Losses allocable
to principal pursuant to paragraph (I)(xxii) or (II)(iv) of the
definition of “REMIC II Distribution Amount” shall not
cause a reduction in the Class Principal Balances of the Group 3
Certificates. 

In
addition to the foregoing, on each Distribution Date, the Class
Principal Balance of the Class of Group L-B Certificates with the
lowest priority then outstanding shall be increased by an amount
equal to the lesser of (i) the Subsequent Recoveries for Loan Group
1 and Loan Group 2 for such Distribution Date and (ii) the amount
of Realized Losses allocated to such Class on previous Distribution
Dates (the amount in this clause (ii) reduced by the amount, if
any, by which such Class Principal Balance has been increased on
prior Distribution Dates pursuant to this paragraph).

In
addition to the foregoing, on each Distribution Date, the Class
Principal Balance of the Class of Group 3-B Certificates with the
lowest priority then outstanding shall be increased by an amount
equal to the lesser of (i) the Subsequent Recoveries for Loan Group
3 for such Distribution Date and (ii) the amount of Realized Losses
allocated to such Class on previous Distribution Dates (the amount
in this clause (ii) reduced by the amount, if any, by which such
Class Principal Balance has been increased on prior Distribution
Dates pursuant to this paragraph).

In
addition to the foregoing, on each Distribution Date, the Class
Principal Balance of the Class of Group M-B Certificates with the
lowest priority then outstanding shall be increased by an amount
equal to the lesser of (i) the Subsequent Recoveries for Loan Group
4 and Loan Group 5 for such Distribution Date and (ii) the amount
of Realized Losses allocated to such Class on previous Distribution
Dates (the amount in this clause (ii) reduced by the amount, if
any, by which such Class Principal Balance has been increased on
prior Distribution Dates pursuant to this paragraph).

The
Class Principal Balance for the Class 1-A1 Certificates shall be
referred to as the “Class 1-A1 Principal Balance,” the
Class Principal Balance for the Class 1-A2 Certificates shall be
referred to as the “Class 1-A2 Principal Balance,” and
so on.

Class R Certificates: The Certificates
designated as “Class R” on the face thereof in
substantially the form attached hereto as Exhibit B, representing
ownership of the Class R-1, Class R-2, Class R-3 and Class R-4
Residual Interests, each of which Class of Residual Interests has
been designated as the sole class of “residual
interest” in REMIC I, REMIC II, REMIC III and REMIC IV,
respectively, pursuant to Section 2.06 and Section 2.13, as
applicable, for purposes of Section 860G(a)(2) of the Code.

Class R Residual Interests: The Class
R-1, Class R-2, Class R-3 and Class R-4 Residual Interests (which
shall be transferable only as a unit evidenced by the Class R
Certificates, in accordance with the applicable provisions of
Section 5.01).

Class R-1
Residual Interest: The uncertificated undivided
beneficial interest in REMIC I which has been designated as the
single class of “residual interest” in REMIC I pursuant
to Section 2.06.

Class R-2 Residual Interest: The
uncertificated undivided beneficial interest in REMIC II which has
been designated as the single class of “residual
interest” in REMIC II pursuant to Section 2.06.

Class R-3
Residual Interest: The uncertificated undivided
beneficial interest in REMIC III which has been designated as the
single class of “residual interest” in REMIC III
pursuant to Section 2.06.

Class R-4 Residual Interest: The
uncertificated undivided beneficial interest in REMIC IV which has
been designated as the single class of “residual
interest” in REMIC IV pursuant to Section 2.13.

Class Y Regular Interests: The Class
Y-1, Class Y-2, Class Y-4 and Class Y-5 Regular Interests.

Class Y Principal Reduction Amounts:
  For any Distribution Date, the amounts by which the
Class Principal Balances of the Class Y-1, Class Y-2, Class Y-4 and
Class Y-5 Regular Interests, respectively, will be reduced on such
Distribution Date by the allocation of Realized Losses and the
distribution of principal, determined as described in Appendix
1.

Class Y-1 Regular Interest: The
uncertificated partial undivided beneficial ownership interest in
REMIC I which constitutes a REMIC I Regular Interest and is
entitled to distributions as set forth herein.

Class Y-1 Principal Distribution
Amount:   For any Distribution Date, the
excess, if any, of the Class Y-1 Principal Reduction Amount for
such Distribution Date over the principal portion of Realized
Losses allocated to the Class Y-1 Regular Interest on such
Distribution Date.

Class Y-2 Regular Interest:  The
uncertificated partial undivided beneficial ownership interest in
REMIC I which constitutes a REMIC I Regular Interest and is
entitled to distributions as set forth herein.

Class Y-2 Principal Distribution
Amount:    For any Distribution Date,
the excess, if any, of the Class Y-2 Principal Reduction Amount for
such Distribution Date over the principal portion of Realized
Losses allocated to the Class Y-2 Regular Interest on such
Distribution Date.

Class Y-4 Regular Interest: The
uncertificated partial undivided beneficial ownership interest in
REMIC III which constitutes a REMIC III Regular Interest and is
entitled to distributions as set forth herein.

Class Y-4 Principal Distribution
Amount:   For any Distribution Date, the
excess, if any, of the Class Y-4 Principal Reduction Amount for
such Distribution Date over the principal portion of Realized
Losses allocated to the Class Y-4 Regular Interest on such
Distribution Date.

Class Y-5 Regular Interest:  The
uncertificated partial undivided beneficial ownership interest in
REMIC III which constitutes a REMIC III Regular Interest and is
entitled to distributions as set forth herein.

Class Y-5 Principal Distribution
Amount:    For any Distribution Date,
the excess, if any, of the Class Y-5 Principal Reduction Amount for
such Distribution Date over the principal portion of Realized
Losses allocated to the Class Y-5 Regular Interest on such
Distribution Date.

Class Z Regular Interests: The Class
Z-1, Class Z-2, Class Z-4 and Class Z-5 Regular Interests.

Class Z Principal Reduction Amounts:
For any Distribution Date, the amounts by which the Class Principal
Balances of the Class Z-1, Class Z-2, Class Z-4 and Class Z-5
Regular Interests, respectively, will be reduced on such
Distribution Date by the allocation of Realized Losses and the
distribution of principal, which shall be in each case the excess
of (A) the sum of (x) the excess of (1) the REMIC I Available
Distribution Amount, in the case of the Class Z-1 and Class Z-2
Regular Interests or (2) the REMIC III Available Distribution
Amount, in the case of the Class Z-4 and Class Z-5 Regular
Interests, for the related Loan Group (i.e. the “related Loan
Group” for the Class Z-1 Regular Interest is Loan Group 1,
the “related Loan Group” for the Class Z-2 Regular
Interest is Loan Group 2, the “related Loan Group” for
the Class Z-4 Regular Interest is Loan Group 4 and the
“related Loan Group” for the Class Z-5 Regular Interest
is Loan Group 5) over the sum of the amounts thereof distributable
(i) in respect of interest on such Class Z Regular Interest
and the related Class Y Regular Interest, (ii) to such Class Z
Regular Interest and the related Class Y Regular Interest pursuant
to clause (c)(i) of the definition of “REMIC I Distribution
Amount”, in the case of the  and (iii) in the case of
Loan Group 1, to the Class R‐1 Residual Interest and (y) the
amount of Realized Losses allocable to principal for the related
Loan Group over (B) the Class Y Principal Reduction Amount for the
related Loan Group.

Class Z-1 Regular Interest: The
uncertificated partial undivided beneficial ownership interest in
REMIC I which constitutes a REMIC I Regular Interest and is
entitled to distributions as set forth herein.

Class Z-1 Principal Distribution
Amount: or any Distribution Date, the excess, if any, of
the Class Z-1 Principal Reduction Amount for such Distribution Date
over the principal portion of Realized Losses allocated to the
Class Z-1 Regular Interest on such Distribution Date.

Class Z-2 Regular Interest: The
uncertificated partial undivided beneficial ownership interest in
REMIC I which constitutes a REMIC I Regular Interest and is
entitled to distributions as set forth herein.

Class Z-2 Principal Distribution
Amount: For any Distribution Date, the excess, if any,
of the Class Z-2 Principal Reduction Amount for such Distribution
Date over the principal portion of Realized Losses allocated to the
Class Z-2 Regular Interest on such Distribution Date.

Class Z-4 Regular Interest: The
uncertificated partial undivided beneficial ownership interest in
REMIC III which constitutes a REMIC III Regular Interest and is
entitled to distributions as set forth herein.

Class Z-4 Principal Distribution
Amount: or any Distribution Date, the excess, if any, of
the Class Z-4 Principal Reduction Amount for such Distribution Date
over the principal portion of Realized Losses allocated to the
Class Z-4 Regular Interest on such Distribution Date.

Class Z-5 Regular Interest: The
uncertificated partial undivided beneficial ownership interest in
REMIC III which constitutes a REMIC III Regular Interest and is
entitled to distributions as set forth herein.

Class Z-5 Principal Distribution
Amount: or any Distribution Date, the excess, if any, of
the Class Z-5 Principal Reduction Amount for such Distribution Date
over the principal portion of Realized Losses allocated to the
Class Z-5 Regular Interest on such Distribution Date.

Clearing Agency: An organization
registered as a “clearing agency” pursuant to Section
17A of the Securities Exchange Act of 1934, as amended, which
initially shall be DTC.

Closing Date: January 24, 2007.

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

Commission: The Securities and
Exchange Commission.

Company: The meaning specified in the
introductory paragraph hereof.

Compensating Interest: For any
Distribution Date, with respect to each Loan Group and the Mortgage
Loans contained therein, the least of (i) the sum of (a) 1/12 of 0.050% of the aggregate Principal Balance of
such Mortgage Loans immediately before
such Distribution Date, (b) the aggregate Payoff Earnings
with respect to such Mortgage Loans for such Distribution Date and (c) the
aggregate Payoff Interest with respect to such Mortgage Loans for
such Distribution Date, (ii) the aggregate Uncollected Interest
with respect to such Mortgage Loans for such Distribution Date and
(iii) 1/12 of 0.125% of the aggregate Principal Balance of
such Mortgage Loans immediately before such Distribution Date.

Complying Insurance Company: With
respect to a transfer of a Certificate, a transferee that satisfies
the following conditions: (i) such transferee is an insurance
company, (ii) the source of funds used by it to acquire or hold
such Certificate is an “insurance company general
account” (within the meaning of Department of Labor
Prohibited Transaction Class Exemption (“PTCE”)
95-60) and (iii) the conditions in Sections I and III of PTCE 95-60
have been satisfied.

Cooperative: A private cooperative
housing corporation which owns or leases land and all or part of a
building or buildings, including apartments, spaces used for
commercial purposes and common areas therein and whose board of
directors authorizes, among other things, the sale of Cooperative
Stock.

Cooperative Apartment: A dwelling unit
in a multi-dwelling building owned or leased by a Cooperative,
which unit the Mortgagor has an exclusive right to occupy pursuant
to the terms of a proprietary lease or occupancy agreement.

Cooperative Lease: With respect to a
Cooperative Loan, the proprietary lease or occupancy agreement with
respect to the Cooperative Apartment occupied by the Mortgagor and
relating to the related Cooperative Stock, which lease or agreement
confers an exclusive right to the holder of such Cooperative Stock
to occupy such apartment.

Cooperative Loans:  Any of the
Mortgage Loans made in respect of a Cooperative Apartment,
evidenced by a Mortgage Note and secured by the related Cooperative
Stock and the related Cooperative Lease, together with (i) the
related Security Agreement, (ii) the related Cooperative Stock
Certificate, (iii) the related assignment or mortgage of the
Cooperative Lease, (iv) the related financing statements, (v) the
related stock power or other similar instrument and (vi) the
related Recognition Agreement

Cooperative Stock:  With respect
to a Cooperative Loan, the stock, partnership interest or other
ownership instrument in the related Cooperative.

Cooperative Stock Certificate: 
With respect to a Cooperative Loan, the stock certificate or other
instrument evidencing the related Cooperative Stock.

Corporate Trust Office:  The
corporate trust office of the Trustee, at which at any particular
time its corporate trust business with respect to this Agreement
shall be administered, which office at the date of the execution of
this Agreement is located at 135 South LaSalle Street, Suite 1511,
Chicago, Illinois, 60603, Attention: Global Securities and Trust
Services – WaMu 2007-HY1.

Corporation: Any Person (other than an
individual, partnership, joint venture or unincorporated
organization) incorporated, associated, organized, chartered or
existing under the laws of any state or under the federal laws of
the United States of America; provided, that such Person
have indefinite existence under the law of its domicile.

Cumulative Carry-Forward Subsequent Recoveries
Amount: For any Distribution Date and any of Loan Group
1, Loan Group 2, Loan Group 3, Loan Group 4 or Loan Group 5, the
sum of (i) the Carry-Forward Subsequent Recoveries Amount for such
Distribution Date for such Loan Group and (ii) the Carry-Forward
Subsequent Recoveries Amounts for prior Distribution Dates for such
Loan Group to the extent such Carry-Forward Subsequent Recoveries
Amounts have not been applied in reduction of Realized Losses on
prior Distribution Dates pursuant to the first paragraph of the
definition of “Realized Loss” herein.

Current Loan-to-Value Ratio: The
Principal Balance of a Mortgage Loan as of the applicable date of
substitution divided by the Appraised Value.

Curtailment: Any payment of principal
on a Mortgage Loan, made by or on behalf of the related Mortgagor,
other than a Monthly Payment, a Prepaid Monthly Payment or a
Payoff, which is applied to reduce the outstanding principal
balance of the Mortgage Loan. (Prepayment penalties are not
payments of principal and hence Curtailments do not include
prepayment penalties.)

Curtailment Shortfall: For any
Distribution Date and for any Curtailment received in the Prior
Period, an amount equal to one month’s interest on such
Curtailment at the Pass-Through Rate for the applicable Mortgage
Loan.

Custodial Account for P&I: A
custodial account for principal and interest established and
maintained by the Servicer pursuant to Section 3.02 either (a) with
the corporate trust department of the Trustee or another financial
institution selected by the Servicer such that the rights of the
Servicer, the Trustee, the Trust, the Delaware Trustee and the
Certificateholders thereto shall be fully protected against the
claims of any creditors or depositors of the institution in which
such account is maintained, (b) within FDIC insured accounts
created, maintained and monitored by the Servicer or (c) as a
separate account at an Eligible Institution. In the event that a
Custodial Account for P&I is established pursuant to clause (b)
of the preceding sentence, amounts held in such Custodial Account
for P&I shall not exceed the level of deposit insurance
coverage on such account; accordingly, more than one Custodial
Account for P&I may be established. In the event that a
Custodial Account for P&I is established pursuant to clause (c)
it shall be entitled "[Name of Servicer] in trust for holders of
WaMu Mortgage Pass-Through Certificates, Series 2007-HY1."

Custodial Agreement: The agreement, if
any, between the Trustee and a Custodian (or the Trustee, a
Custodian and the Servicer) providing for the safekeeping of the
Mortgage Files on behalf of the Trust.

Custodian: The Initial Custodian or a
successor custodian which is appointed by the Trustee with the
consent of the Servicer, as provided in Article II hereof, pursuant
to a Custodial Agreement. Any Custodian shall act as agent on
behalf of the Trustee.  The reasonable fees and expenses of
the Custodian shall be paid by the Servicer.

Cut-Off Date: January 1, 2007.

Definitive Certificates: Certificates
in definitive, fully registered and certificated form.

Delaware Trustee: Christiana Bank
& Trust Company, or its successor-in-interest as provided in
Section 8.09, or any successor trustee appointed as herein
provided.

Depositary Agreement: The Letter of
Representations, dated January 23, 2007 by and among DTC, the Trust
and the Trustee. The Trustee is authorized to enter into the
Depositary Agreement on behalf of the Trust.

Destroyed Mortgage Note: A Mortgage
Note the original of which (or a portion of the original of which)
was permanently lost or destroyed and has not been replaced.

Determination Date: A day not earlier
than the 14th day and not later than the 18th day of the calendar
month of the related Distribution Date, as determined by the
Servicer.

Disqualified Organization:  Any
Person which is not a Permitted Transferee, but does not include
any Pass-Through Entity which owns or holds a Residual Certificate
and of which a Disqualified Organization, directly or indirectly,
may be a stockholder, partner or beneficiary.

Distribution Date: With respect to
distributions on the REMIC I Regular Interests and the
Certificates, the 25th day (or, if such 25th day is not a Business
Day, the Business Day immediately succeeding such 25th day) of each
month, with the first such date being February 26, 2007. The
“related Due Date” for any Distribution Date is the Due
Date immediately preceding such Distribution Date.

DTC: The Depository Trust Company.

DTC Participant: A Person for whom DTC
effects book-entry transfers and pledges of securities deposited
with DTC.

Due Date: The day on which the Monthly
Payment for each Mortgage Loan is due.

Eligible Institution: An institution
having (i) the highest short-term debt rating, and one of the two
highest long-term debt ratings, of the Rating Agencies, (ii) with
respect to any Custodial Account for P&I, an unsecured
long-term debt rating of at least one of the two highest unsecured
long-term debt ratings of the Rating Agencies, (iii) with respect
to any Buydown Fund Account or Custodial Account which also serves
as a Buydown Fund Account, the highest unsecured long-term debt
rating by the Rating Agencies, or (iv) the approval of the Rating
Agencies. Notwithstanding the foregoing, Washington Mutual Bank
shall be an “Eligible Institution” if the following
conditions are satisfied: (i) Washington Mutual Bank is acting as
Servicer, (ii) if S&P is a Rating Agency as defined herein, the
long-term unsecured debt obligations of Washington Mutual Bank are
rated no lower than “A-” by S&P and the short-term
unsecured debt obligations of Washington Mutual Bank are rated no
lower than “A-2” by S&P, (iii) if Fitch is a Rating
Agency as defined herein, the long-term unsecured debt obligations
of Washington Mutual Bank are rated no lower than “A”
by Fitch and the short-term unsecured debt obligations of
Washington Mutual Bank are rated no lower than “F1” by
Fitch and (iv) if Moody’s is a Rating Agency as defined
herein, the long-term unsecured debt obligations of Washington
Mutual Bank are rated no lower than “A2” by
Moody’s and the short-term unsecured debt obligations of
Washington Mutual Bank are rated no lower than “P-1” by
Moody’s; provided, that if the long-term or short-term
unsecured debt obligations of Washington Mutual Bank are downgraded
by any of the Rating Agencies to a rating lower than the applicable
rating specified in this sentence, Washington Mutual Bank shall
cease to be an “Eligible Institution” ten Business Days
after it receives notification of such downgrade.

Eligible Investments: The investment
property or other property listed below:

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

(ii)               
Repurchase agreements on obligations described in clause (i) of
this definition of “Eligible Investments,” provided
that the unsecured obligations of the party (including the
institution acting as Trustee) agreeing to repurchase such
obligations have at the time one of the two highest short term debt
ratings  of the Rating Agencies and provided that such
repurchaser’s unsecured long term debt has one of the two
highest unsecured long term debt ratings of the Rating
Agencies;

(iii)              
Federal funds, certificates of deposit, time deposits and
bankers’ acceptances of the institution acting as Trustee or
any bank or trust company incorporated under the laws of the United
States or any state, provided that the debt obligations of such
bank or trust company (or, in the case of the principal bank in a
bank holding company system, debt obligations of the bank holding
company) at the date of acquisition thereof have one of the two
highest short term debt ratings of the Rating Agencies and
unsecured long term debt has one of the two highest unsecured long
term debt ratings of the Rating Agencies;

(iv)             
Obligations of, or obligations guaranteed by, any state of the
United States or the District of Columbia, provided that such
obligations at the date of acquisition thereof shall have the
highest long-term debt ratings available for such securities from
the Rating Agencies;

(v)               
Commercial paper of any corporation incorporated under the laws of
the United States or any state thereof, which on the date of
acquisition has the highest commercial paper rating of the Rating
Agencies, provided that the corporation has unsecured long term
debt that has one of the two highest unsecured long term debt
ratings of the Rating Agencies;

(vi)             
Securities (other than stripped bonds or stripped coupons) bearing
interest or sold at a discount that are issued by any corporation
incorporated under the laws of the United States or any state
thereof and have the highest long-term unsecured rating available
for such securities from the Rating Agencies; provided, however,
that securities issued by any such corporation will not be Eligible
Investments to the extent that investment therein would cause the
outstanding principal amount of securities issued by such
corporation that are then held as part of the Investment Account or
the Certificate Account to exceed 20% of the aggregate principal
amount of all Eligible Investments then held in the Investment
Account and the Certificate Account; and

(vii)            
Units of taxable money market funds (which may be 12b-1 funds, as
contemplated under the rules promulgated by the Commission under
the Investment Company Act of 1940), which funds have the highest
rating available for such securities from the Rating Agencies or
which have been designated in writing by the Rating Agencies as
Eligible Investments;

provided, however, that such
investment property or other property is held for a temporary
period pursuant to Section 1.860G-2(g)(1) of the Treasury
Regulations, and that such period can in no event exceed thirteen
months.

In no
event shall an instrument or security be an Eligible Investment if
such instrument or security (a) evidences a right to receive only
interest payments with respect to the obligations underlying such
instrument or (b) has been purchased at a price greater than the
outstanding principal balance of such instrument.

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

ERISA Restricted Certificate: Any
Senior Subordinate Certificate.

ERISA Super Restricted Certificate:
Any Junior Subordinate Certificate.

Event of Default: The meaning
specified in Section 7.01.

Excess Liquidation Proceeds: With
respect to any Distribution Date, the Groups 1-2 Excess Liquidation
Proceeds and the Group 3 Excess Liquidation Proceeds for such
Distribution Date.

Excess Subsequent Recoveries: For any
Distribution Date and any Loan Group, the excess, if any, of (i)
amounts received by the Servicer during the Prior Period in
connection with the liquidation of defaulted Mortgage Loans in such
Loan Group after such Mortgage Loans became Liquidated Mortgage
Loans over (ii) the Subsequent Recoveries (other than any
Repurchase Proceeds included therein) for such Loan Group for such
Distribution Date.

Fannie Mae: The Federal National
Mortgage Association and any successor thereto.

FDIC: The Federal Deposit Insurance
Corporation, or any successor thereto.

FHA: The Federal Housing
Administration, or any successor thereto.

Final Maturity Date:  With
respect to each Class of the REMIC I, REMIC II, REMIC III and REMIC
IV Regular Interests and the Residual Interests, the date set forth
in the applicable table contained in the Preliminary Statement
hereto.

Fitch: Fitch, Inc. (or its successor
in interest thereto), provided that at the applicable time it is a
Rating Agency.

Freddie Mac: The Federal Home Loan
Mortgage Corporation and any successor thereto.

Group 1 Certificates: The Group 1-A
Certificates.

Group 1 Loans:  The Mortgage
Loans designated on the Mortgage Loan Schedule as Group 1
Loans.

Group 1 Senior Liquidation Amount: For
any Distribution Date, the sum of (A) the aggregate, for each
Group 1 Loan which became a Liquidated Mortgage Loan during the
Prior Period, of the lesser of: (i) the Group 1 Senior Percentage
of the Principal Balance of such Mortgage Loan immediately before
such Distribution Date and (ii) the Group 1 Senior Prepayment
Percentage of the Liquidation Principal with respect to such
Mortgage Loan and (B) the Group 1 Senior Prepayment Percentage
of any Subsequent Recoveries for Loan Group 1.

Group 1 Senior Percentage: For any
Distribution Date, the lesser of (i) 100% and (ii) the aggregate
Class Principal Balance of the Group 1-A and Residual Certificates
divided by the aggregate Principal Balance of the Group 1 Loans, in
each case immediately before such Distribution Date.

Group 1 Senior Prepayment Percentage or Group 2
Senior Prepayment Percentage:  Subject to the
immediately succeeding paragraph, (A) for any Distribution Date
prior to the seventh anniversary of the first Distribution Date,
each of the Group 1 Senior Prepayment Percentage and the Group 2
Senior Prepayment Percentage shall equal 100% and (B) for any
Distribution Date on or after the seventh anniversary of the first
Distribution Date, the Group 1 Senior Prepayment Percentage and the
Group 2 Senior Prepayment Percentage shall be calculated as
follows: (1) for any such Distribution Date on or after the seventh
anniversary but before the eighth anniversary of the first
Distribution Date, the Group 1 Senior Percentage or the Group 2
Senior Percentage, as applicable, for such Distribution Date plus
70% of the Subordinate Percentage for the related Loan Group for
such Distribution Date; (2) for any such Distribution Date on or
after the eighth anniversary but before the ninth anniversary of
the first Distribution Date, the Group 1 Senior Percentage or the
Group 2 Senior Percentage, as applicable, for such Distribution
Date plus 60% of the Subordinate Percentage for the related Loan
Group for such Distribution Date; (3) for any such Distribution
Date on or after the ninth anniversary but before the tenth
anniversary of the first Distribution Date, the Group 1 Senior
Percentage or the Group 2 Senior Percentage, as applicable, for
such Distribution Date plus 40% of the Subordinate Percentage for
the related Loan Group for such Distribution Date; (4) for any such
Distribution Date on or after the tenth anniversary but before the
eleventh anniversary of the first Distribution Date, the Group 1
Senior Percentage or the Group 2 Senior Percentage, as applicable,
for such Distribution Date plus 20% of the Subordinate Percentage
for the related Loan Group for such Distribution Date; and (5) for
any such Distribution Date thereafter, the Group 1 Senior
Percentage or the Group 2 Senior Percentage, as applicable, for
such Distribution Date; provided, however, that (x) for any
Distribution Date on or prior to the Distribution Date in January
2010, if (i) the Group L-B Percentage for such Distribution Date is
greater than or equal to twice the Group L-B Percentage as of the
Closing Date and (ii) cumulative Realized Losses on the Group 1 and
Group 2 Loans allocated to the Group L-B Certificates, as a
percentage of the aggregate Class Principal Balance of the Group
L-B Certificates as of the Closing Date, do not exceed 20%, then
the Group 1 Senior Prepayment Percentage and the Group 2 Senior
Prepayment Percentage shall equal the Group 1 Senior Percentage or
the Group 2 Senior Percentage, as applicable, for such Distribution
Date plus 50% of the Subordinate Percentage for the related Loan
Group for such Distribution Date and (y) for any Distribution Date
after the Distribution Date in January 2010, if (i) the Group L-B
Percentage for such Distribution Date is greater than or equal to
twice the Group L-B Percentage as of the Closing Date and (ii)
cumulative Realized Losses on the Group 1 and Group 2 Loans
allocated to the Group L-B Certificates, as a percentage of the
aggregate Class Principal Balance of the Group L-B Certificates as
of the Closing Date, do not exceed 30%, then the Group 1 Senior
Prepayment Percentage and the Group 2 Senior Prepayment Percentage
shall equal the Group 1 Senior Percentage or the Group 2 Senior
Percentage, as applicable, for such Distribution Date.

Notwithstanding the immediately preceding
paragraph, (A) for any Distribution Date, if the Group 1 Senior
Percentage for such Distribution Date is greater than the Group 1
Senior Percentage as of the Closing Date or the Group 2 Senior
Percentage for such Distribution Date is greater than the Group 2
Senior Percentage as of the Closing Date, then each of the Group 1
Senior Prepayment Percentage and Group 2 Senior Prepayment
Percentage shall equal 100%, (B) for any Distribution Date on or
before the seventh anniversary of the first Distribution Date, if
any of the tests specified in clauses (a) through (d) below is met,
then each of the Group 1 Senior Prepayment Percentage and Group 2
Senior Prepayment Percentage shall equal 100% and (C) for any
Distribution Date after the seventh anniversary of the first
Distribution Date, if any of the tests specified in clauses (a)
through (d) below is met (unless either (w) the Group 1 Senior
Percentage for such Distribution Date is greater than the Group 1
Senior Percentage as of the Closing Date, (x) the Group 2 Senior
Percentage for such Distribution Date is greater than the Group 2
Senior Percentage as of the Closing Date or (y) there is no Groups
1 & 2 Earlier Distribution Date (as defined below), in each of
which case each of the Group 1 Senior Prepayment Percentage and the
Group 2 Senior Prepayment Percentage shall equal 100%), then each
of the Group 1 Senior Prepayment Percentage and the Group 2 Senior
Prepayment Percentage shall be calculated as follows:  (1) if
the most recent preceding Distribution Date on which none of the
tests specified in clauses (a) through (d) below was met (such date
referred to as the “Groups 1 & 2 Earlier Distribution
Date”) is on or after the seventh anniversary but before
the eighth anniversary of the first Distribution Date, then the
Group 1 Senior Prepayment Percentage and the Group 2 Senior
Prepayment Percentage shall equal the Group 1 Senior Percentage or
the Group 2 Senior Percentage, as applicable, for the current
Distribution Date plus 70% of the Subordinate Percentage for the
related Loan Group for the current Distribution Date, (2) if the
Groups 1 & 2 Earlier Distribution Date is on or after the
eighth anniversary but before the ninth anniversary of the first
Distribution Date, then the Group 1 Senior Prepayment Percentage
and the Group 2 Senior Prepayment Percentage shall equal the Group
1 Senior Percentage or the Group 2 Senior Percentage, as
applicable, for the current Distribution Date plus 60% of the
Subordinate Percentage for the related Loan Group for the current
Distribution Date, (3) if the Groups 1 & 2 Earlier Distribution
Date is on or after the ninth  anniversary but before the
tenth anniversary of the first Distribution Date, then the Group 1
Senior Prepayment Percentage and the Group 2 Senior Prepayment
Percentage shall equal the Group 1 Senior Percentage or the Group 2
Senior Percentage, as applicable, for the current Distribution Date
plus 40% of the Subordinate Percentage for the related Loan Group
for the current Distribution Date, (4) if the Groups 1 & 2
Earlier Distribution Date is on or after the tenth anniversary but
before the eleventh anniversary of the first Distribution Date,
then the Group 1 Senior Prepayment Percentage and the Group 2
Senior Prepayment Percentage shall equal the Group 1 Senior
Percentage or the Group 2 Senior Percentage, as applicable, for the
current Distribution Date plus 20% of the Subordinate Percentage
for the related Loan Group for the current Distribution Date, and
(5) if the Groups 1 & 2 Earlier Distribution Date is on or
after the eleventh anniversary of the first Distribution Date, then
the Group 1 Senior Prepayment Percentage and the Group 2 Senior
Prepayment Percentage shall equal the Group 1 Senior Percentage or
the Group 2 Senior Percentage, as applicable, for the current
Distribution Date:

(a)        the
mean aggregate Principal Balance, as of the Distribution Date in
each of the immediately preceding six calendar months, of the Group
1 Loans which were 60 or more days delinquent as of such date
(including Mortgage Loans in bankruptcy or foreclosure and
Mortgaged Properties held by REMIC I) is greater than 50% of the
Subordinate Component Balance for Loan Group 1 as of the current
Distribution Date,

(b)        the
mean aggregate Principal Balance, as of the Distribution Date in
each of the immediately preceding six calendar months, of the Group
2 Loans which were 60 or more days delinquent as of such date
(including Mortgage Loans in bankruptcy or foreclosure and
Mortgaged Properties held by REMIC I) is greater than 50% of the
Subordinate Component Balance for Loan Group 2 as of the current
Distribution Date,

(c)       
cumulative Realized Losses on the Group 1 Loans allocated to the
Group L-B Certificates, as a percentage of the Subordinate
Component Balance for Loan Group 1 as of the Closing Date, are
greater than, for any Distribution Date (1) before the eighth
anniversary of the first Distribution Date, 30%, (2) on or after
the eighth anniversary but before the ninth anniversary of the
first Distribution Date, 35%, (3) on or after the ninth anniversary
but before the tenth anniversary of the first Distribution Date,
40%, (4) on or after the tenth anniversary but before the eleventh
anniversary of the first Distribution Date, 45%, and (5) on or
after the eleventh anniversary of the first Distribution Date, 50%
or

(d)       
cumulative Realized Losses on the Group 2 Loans allocated to the
Group L-B Certificates, as a percentage of the Subordinate
Component Balance for Loan Group 2 as of the Closing Date, are
greater than, for any Distribution Date (1) before the eighth
anniversary of the first Distribution Date, 30%, (2) on or after
the eighth anniversary but before the ninth anniversary of the
first Distribution Date, 35%, (3) on or after the ninth anniversary
but before the tenth anniversary of the first Distribution Date,
40%, (4) on or after the tenth anniversary but before the eleventh
anniversary of the first Distribution Date, 45%, and (5) on or
after the eleventh anniversary of the first Distribution Date,
50%.

If on
any Distribution Date the allocation to the Group 1-A or Group 2-A
Certificates of Principal Prepayments in the percentage required
would reduce the aggregate Class Principal Balance of such
Certificates below zero, the Group 1 Senior Prepayment Percentage
or the Group 2 Senior Prepayment Percentage, as applicable, for
such Distribution Date shall be limited to the percentage necessary
to reduce such aggregate Class Principal Balance to
zero.

Group 1 Senior Principal Distribution
Amount:  For any Distribution Date, an amount equal
to the sum of (a) the Group 1 Senior Percentage of the Principal
Payment Amount for Loan Group 1, (b) the Group 1 Senior Prepayment
Percentage of the Principal Prepayment Amount for Loan Group 1 and
(c) the Group 1 Senior Liquidation Amount.

Group 1 Subordinate Balance:  For
any date of determination, an amount equal to the then outstanding
aggregate Principal Balance of the Group 1 Loans reduced by the
aggregate Class Principal Balance of the Group 1-A and Residual
Certificates.

Group 1 Subordinate Percentage: For
any Distribution Date, the excess of 100% over the Group 1 Senior
Percentage for such date.

Group 1 Subordinate Prepayment
Percentage:  For any Distribution Date, the excess
of 100% over the Group 1 Senior Prepayment Percentage for such
Distribution Date; provided, however, that if the aggregate
Class Principal Balance of the Group 1-A and Residual Certificates
has been reduced to zero, then the Group 1 Subordinate Prepayment
Percentage shall equal 100%.

Group 1-A Certificates: The Class 1-A1
and Class 1-A2 Certificates.

Group 2 Certificates: The Group 2-A
Certificates.

Group 2 Loans:  The Mortgage
Loans designated on the Mortgage Loan Schedule as Group 2
Loans.

Group 2 Senior Liquidation Amount: For
any Distribution Date, the sum of (A) the aggregate, for each
Group 2 Loan which became a Liquidated Mortgage Loan during the
Prior Period, of the lesser of: (i) the Group 2 Senior Percentage
of the Principal Balance of such Mortgage Loan immediately before
such Distribution Date and (ii) the Group 2 Senior Prepayment
Percentage of the Liquidation Principal with respect to such
Mortgage Loan and (B) the Group 2 Senior Prepayment Percentage
of any Subsequent Recoveries for Loan Group 2.

Group 2 Senior Percentage: For any
Distribution Date, the lesser of (i) 100% and (ii) the aggregate
Class Principal Balance of the Group 2-A Certificates divided by
the aggregate Principal Balance of the Group 2 Loans, in each case
immediately before such Distribution Date.

Group 2 Senior Prepayment
Percentage:  See the definition of “Group 1
Senior Prepayment Percentage or Group 2 Senior Prepayment
Percentage”.

Group 2 Senior Principal Distribution
Amount:  For any Distribution Date, an amount equal
to the sum of (a) the Group 2 Senior Percentage of the Principal
Payment Amount for Loan Group 2, (b) the Group 2 Senior Prepayment
Percentage of the Principal Prepayment Amount for Loan Group 2 and
(c) the Group 2 Senior Liquidation Amount.

Group 2 Subordinate Balance:  For
any date of determination, an amount equal to the then outstanding
aggregate Principal Balance of the Group 2 Loans reduced by the sum
of (i) the aggregate Class Principal Balance of the Group 2-A
Certificates.

Group 2 Subordinate Percentage: For
any Distribution Date, the excess of 100% over the Group 2 Senior
Percentage for such date.

Group 2 Subordinate Prepayment
Percentage:  For any Distribution Date, the excess
of 100% over the Group 2 Senior Prepayment Percentage for such
Distribution Date; provided, however, that if the aggregate
Class Principal Balance of the Group 2-A Certificates has been
reduced to zero, then the Group 2 Subordinate Prepayment Percentage
shall equal 100%.

Group 2-A Certificates: The Class
2-A1, Class 2-A2, Class 2-A3 and Class 2-A4 Certificates.

Group 3 Certificates: The Group 3-A
and Class 3-B Certificates.

Group 3 Clean-Up Call Option
Date:  The date on which the aggregate principal
balance of the Group 3 Loans has been reduced to less than the
Group 3 Clean-Up Call Percentage of that balance as of the Cut-Off
Date.

Group 3 Clean-Up Call Percentage:
10%.

Group 3 Credit Support Depletion Date:
The first Distribution Date on which the aggregate Class Principal
Balance of the Group 3-B Certificates has been or will be reduced
to zero as a result of principal distributions thereon and the
allocation of Realized Losses on such Distribution Date.

Group 3 Excess Liquidation Proceeds:
With respect to any Distribution Date, the sum of (i) the excess,
if any, of aggregate Liquidation Proceeds and Insurance Proceeds
received with respect to the Group 3 Loans during the Prior Period
over the amount that would have been received if Payoffs had been
made with respect to such Mortgage Loans during such Prior Period
and (ii) any Excess Subsequent Recoveries for Loan Group 3 for such
Distribution Date.

Group 3 Loans:  The Mortgage
Loans designated on the Mortgage Loan Schedule as Group 3
Loans.

Group 3 Senior Liquidation Amount: For
any Distribution Date, the sum of (A) the aggregate, for each
Group 3 Loan which became a Liquidated Mortgage Loan during the
Prior Period, of the lesser of: (i) the Group 3 Senior Percentage
of the Principal Balance of such Mortgage Loan immediately before
such Distribution Date and (ii) the Group 3 Senior Prepayment
Percentage of the Liquidation Principal with respect to such
Mortgage Loan and (B) the Group 3 Senior Prepayment Percentage
of any Subsequent Recoveries for Loan Group 3.

Group 3 Senior Percentage: For any
Distribution Date, the lesser of (i) 100% and (ii) the aggregate
Class Principal Balance of the Group 3-A Certificates divided by
the aggregate Principal Balance of the Group 3 Loans, in each case
immediately before such Distribution Date.

Group 3 Senior Prepayment
Percentage:  Subject to the immediately succeeding
paragraph, (A) for any Distribution Date prior to the seventh
anniversary of the first Distribution Date, the Group 3 Senior
Prepayment Percentage shall equal 100% and (B) for any Distribution
Date on or after the seventh anniversary of the first Distribution
Date, the Group 3 Senior Prepayment Percentage shall be calculated
as follows: (1) for any such Distribution Date on or after the
seventh anniversary but before the eighth anniversary of the first
Distribution Date, the Group 3 Senior Percentage for such
Distribution Date plus 70% of the Group 3 Subordinate Percentage
for such Distribution Date; (2) for any such Distribution Date on
or after the eighth anniversary but before the ninth anniversary of
the first Distribution Date, the Group 3 Senior Percentage for such
Distribution Date plus 60% of the Group 3 Subordinate Percentage
for such Distribution Date; (3) for any such Distribution Date on
or after the ninth anniversary but before the tenth anniversary of
the first Distribution Date, the Group 3 Senior Percentage for such
Distribution Date plus 40% of the Group 3 Subordinate Percentage
for such Distribution Date; (4) for any such Distribution Date on
or after the tenth anniversary but before the eleventh anniversary
of the first Distribution Date, the Group 3 Senior Percentage for
such Distribution Date plus 20% of the Group 3 Subordinate
Percentage for such Distribution Date; and (5) for any such
Distribution Date thereafter, the Group 3 Senior Percentage for
such Distribution Date;provided, however, that (x) for any
Distribution Date on or prior to the Distribution Date in January
2010, if (i) the Group 3 Subordinate Percentage for such
Distribution Date is greater than or equal to twice the Group 3
Subordinate Percentage as of the Closing Date and (ii) cumulative
Realized Losses on the Group 3 Loans allocated to the Group 3-B
Certificates, as a percentage of the aggregate Class Principal
Balance of the Group 3-B Certificates as of the Closing Date, do
not exceed 20%, then the Group 3 Senior Prepayment Percentage shall
equal the Group 3 Senior Percentage for such Distribution Date plus
50% of the Group 3 Subordinate Percentage for such Distribution
Date and (y) for any Distribution Date after the Distribution Date
in January 2010, if (i) the Group 3 Subordinate Percentage for such
Distribution Date is greater than or equal to twice the Group 3
Subordinate Percentage as of the Closing Date and (ii) cumulative
Realized Losses on the Group 3 Loans allocated to the Group 3-B
Certificates, as a percentage of the aggregate Class Principal
Balance of the Group 3-B Certificates as of the Closing Date, do
not exceed 30%, then the Group 3 Senior Prepayment Percentage shall
equal the Group 3 Senior Percentage for such Distribution Date.

Notwithstanding the immediately preceding
paragraph, (A) for any Distribution Date, if the Group 3 Senior
Percentage for such Distribution Date is greater than the Group 3
Senior Percentage as of the Closing Date, then the Group 3 Senior
Prepayment Percentage shall equal 100%, (B) for any Distribution
Date on or before the seventh anniversary of the first Distribution
Date, if any of the tests specified in clauses (a) and (b) below is
met, then the Group 3 Senior Prepayment Percentage shall equal 100%
and (C) for any Distribution Date after the seventh anniversary of
the first Distribution Date, if any of the tests specified in
clauses (a) and (b) below is met (unless either (x) the Group 3
Senior Percentage for such Distribution Date is greater than the
Group 3 Senior Percentage as of the Closing Date or (y) there is no
Group 3 Earlier Distribution Date (as defined below), in each of
which case the Group 3 Senior Prepayment Percentage shall equal
100%), then the Group 3 Senior Prepayment Percentage shall be
calculated as follows:  (1) if the most recent preceding
Distribution Date on which none of the tests specified in clauses
(a) and (b) below was met (such date referred to as the
“Group 3 Earlier Distribution Date”) is on or
after the seventh anniversary but before the eighth anniversary of
the first Distribution Date, then the Group 3 Senior Prepayment
Percentage shall equal the Group 3 Senior Percentage for the
current Distribution Date plus 70% of the Group 3 Subordinate
Percentage for the current Distribution Date, (2) if the Group 3
Earlier Distribution Date is on or after the eighth anniversary but
before the ninth anniversary of the first Distribution Date, then
the Group 3 Senior Prepayment Percentage shall equal the Group 3
Senior Percentage for the current Distribution Date plus 60% of the
Group 3 Subordinate Percentage for the current Distribution Date,
(3) if the Group 3 Earlier Distribution Date is on or after the
ninth anniversary but before the tenth anniversary of the first
Distribution Date, then the Group 3 Senior Prepayment Percentage
shall equal the Group 3 Senior Percentage for the current
Distribution Date plus 40% of the Group 3 Subordinate Percentage
for the current Distribution Date, (4) if the Group 3 Earlier
Distribution Date is on or after the tenth anniversary but before
the eleventh anniversary of the first Distribution Date, then the
Group 3 Senior Prepayment Percentage shall equal the Group 3 Senior
Percentage for the current Distribution Date plus 20% of the Group
3 Subordinate Percentage for the current Distribution Date, and (5)
if the Group 3 Earlier Distribution Date is on or after the
eleventh anniversary of the first Distribution Date, then the Group
3 Senior Prepayment Percentage shall equal the Group 3 Senior
Percentage for the current Distribution Date:

(a)        the
mean aggregate Principal Balance, as of the Distribution Date in
each of the immediately preceding six calendar months, of the Group
3 Loans which were 60 or more days delinquent as of such date
(including Mortgage Loans in bankruptcy or foreclosure and
Mortgaged Properties held by REMIC II) is greater than 50% of the
aggregate Class Principal Balance of the Group 3-B Certificates as
of the current Distribution Date, or

(b)       
cumulative Realized Losses on the Group 3 Loans allocated to the
Group 3-B Certificates, as a percentage of the aggregate Class
Principal Balance of the Group 3-B Certificates as of the Closing
Date, are greater than, for any Distribution Date (1) before the
eighth anniversary of the first Distribution Date, 30%, (2) on or
after the eighth anniversary but before the ninth anniversary of
the first Distribution Date, 35%, (3) on or after the ninth
anniversary but before the tenth anniversary of the first
Distribution Date, 40%, (4) on or after the tenth anniversary but
before the eleventh anniversary of the first Distribution Date,
45%, and (5) on or after the eleventh anniversary of the first
Distribution Date, 50%.

If on
any Distribution Date the allocation to the Group 3-A Certificates
of Principal Prepayments in the percentage required would reduce
the aggregate Class Principal Balance of such Certificates below
zero, the Group 3 Senior Prepayment Percentage for such
Distribution Date shall be limited to the percentage necessary to
reduce such aggregate Class Principal Balance to zero.

Group 3 Senior Principal Distribution
Amount:  For any Distribution Date, an amount equal
to the sum of (a) the Group 3 Senior Percentage of the Principal
Payment Amount for Loan Group 3, (b) the Group 3 Senior Prepayment
Percentage of the Principal Prepayment Amount for Loan Group 3 and
(c) the Group 3 Senior Liquidation Amount.

Group 3 Subordinate Liquidation
Amount:  For any Distribution Date, the excess, if
any, of the sum of (A) the aggregate Liquidation Principal for all
Group 3 Loans which became Liquidated Mortgage Loans during the
Prior Period and (B) any Subsequent Recoveries for such
Distribution Date for Loan Group 3, over the Group 3 Senior
Liquidation Amount for such Distribution Date.

Group 3 Subordinate Percentage: For
any Distribution Date, the excess of 100% over the Group 3 Senior
Percentage for such date.

Group 3 Subordinate Prepayment
Percentage:  For any Distribution Date, the excess
of 100% over the Group 3 Senior Prepayment Percentage for such
Distribution Date; provided, however, that if the aggregate
Class Principal Balance of the Group 3-A Certificates has been
reduced to zero, then the Group 3 Subordinate Prepayment Percentage
shall equal 100%.

Group 3 Subordinate Principal Distribution
Amount:  For any Distribution Date, the sum of (i)
the Group 3 Subordinate Percentage of the Principal Payment Amount
for Loan Group 3, (ii) the Group 3 Subordinate Principal
Prepayments Distribution Amount and (iii) the Group 3 Subordinate
Liquidation Amount.

For
any Distribution Date, the Group 3 Subordinate Principal
Distribution Amount shall be allocated pro rata, by Class Principal
Balance, among the Classes of Group 3-B Certificates and paid in
the order of distribution to such Classes pursuant to clause (I) of
the definition of “REMIC II Distribution Amount” except
as otherwise stated in such definition. Notwithstanding the
foregoing, for any Distribution Date prior to distributions on such
date, if the Subordination Level for any Class or Classes of Group
3-B Certificates is less than such Subordination Level as of the
Closing Date, then the pro rata portion of the Group 3 Subordinate
Principal Prepayments Distribution Amount, if any, otherwise
allocable to such Class or Classes of Group 3-B Certificates shall
be allocated to the more senior Classes of Group 3-B Certificates,
pro rata according to the Class Principal Balances of such
Classes.  For purposes of this definition and the definition
of “Subordination Level,” the relative seniority, from
highest to lowest, of the Group 3-B Certificates shall be as
follows: Class 3-B-1, Class 3-B-2, Class 3-B-3, Class 3-B-4, Class
3-B-5 and Class 3-B-6.

Group 3 Subordinate Principal Prepayments
Distribution Amount:  For any Distribution Date,
Group 3 Subordinate Prepayment Percentage of the Principal
Prepayment Amount for Loan Group 3.

Group 3-A Certificates: The Class
3-A1, Class 3-A2, Class 3-A3 and Class 3-A4 Certificates.

Group 3-B Certificates: The Class
3-B-1, Class 3-B-2, Class 3-B-3, Class 3-B-4, Class 3-B-5 and Class
3-B-6 Certificates.

Group 4 Certificates: The Group 4-A
Certificates.

Group 4 Loans:  The Mortgage
Loans designated on the Mortgage Loan Schedule as Group 4
Loans.

Group 4 Senior Liquidation Amount: For
any Distribution Date, the sum of (A) the aggregate, for each
Group 4 Loan which became a Liquidated Mortgage Loan during the
Prior Period, of the lesser of: (i) the Group 4 Senior Percentage
of the Principal Balance of such Mortgage Loan immediately before
such Distribution Date and (ii) the Group 4 Senior Prepayment
Percentage of the Liquidation Principal with respect to such
Mortgage Loan and (B) the Group 4 Senior Prepayment Percentage
of any Subsequent Recoveries for Loan Group 4.

Group 4 Senior Percentage: For any
Distribution Date, the lesser of (i) 100% and (ii) the aggregate
Class Principal Balance of the Group 4-A Certificates divided by
the aggregate Principal Balance of the Group 4 Loans, in each case
immediately before such Distribution Date.

Group 4 Senior Prepayment Percentage or Group 5
Senior Prepayment Percentage:  Subject to the
immediately succeeding paragraph, (A) for any Distribution Date
prior to the seventh anniversary of the first Distribution Date,
each of the Group 4 Senior Prepayment Percentage and the Group 5
Senior Prepayment Percentage shall equal 100% and (B) for any
Distribution Date on or after the seventh anniversary of the first
Distribution Date, the Group 4 Senior Prepayment Percentage and the
Group 5 Senior Prepayment Percentage shall be calculated as
follows: (1) for any such Distribution Date on or after the seventh
anniversary but before the eighth anniversary of the first
Distribution Date, the Group 4 Senior Percentage or the Group 5
Senior Percentage, as applicable, for such Distribution Date plus
70% of the Subordinate Percentage for the related Loan Group for
such Distribution Date; (2) for any such Distribution Date on or
after the eighth anniversary but before the ninth anniversary of
the first Distribution Date, the Group 4 Senior Percentage or the
Group 5 Senior Percentage, as applicable, for such Distribution
Date plus 60% of the Subordinate Percentage for the related Loan
Group for such Distribution Date; (3) for any such Distribution
Date on or after the ninth anniversary but before the tenth
anniversary of the first Distribution Date, the Group 4 Senior
Percentage or the Group 5 Senior Percentage, as applicable, for
such Distribution Date plus 40% of the Subordinate Percentage for
the related Loan Group for such Distribution Date; (4) for any such
Distribution Date on or after the tenth anniversary but before the
eleventh anniversary of the first Distribution Date, the Group 4
Senior Percentage or the Group 5 Senior Percentage, as applicable,
for such Distribution Date plus 20% of the Subordinate Percentage
for the related Loan Group for such Distribution Date; and (5) for
any such Distribution Date thereafter, the Group 4 Senior
Percentage or the Group 5 Senior Percentage, as applicable, for
such Distribution Date; provided, however, that (x) for any
Distribution Date on or prior to the Distribution Date in January
2010, if (i) the Group M-B Percentage for such Distribution Date is
greater than or equal to twice the Group M-B Percentage as of the
Closing Date and (ii) cumulative Realized Losses on the Group 4 and
Group 5 Loans allocated to the Group M-B Certificates, as a
percentage of the aggregate Class Principal Balance of the Group
M-B Certificates as of the Closing Date, do not exceed 20%, then
the Group 4 Senior Prepayment Percentage and the Group 5 Senior
Prepayment Percentage shall equal the Group 4 Senior Percentage or
the Group 5 Senior Percentage, as applicable, for such Distribution
Date plus 50% of the Subordinate Percentage for the related Loan
Group for such Distribution Date and (y) for any Distribution Date
after the Distribution Date in January 2010, if (i) the Group M-B
Percentage for such Distribution Date is greater than or equal to
twice the Group M-B Percentage as of the Closing Date and (ii)
cumulative Realized Losses on the Group 4 and Group 5 Loans
allocated to the Group M-B Certificates, as a percentage of the
aggregate Class Principal Balance of the Group M-B Certificates as
of the Closing Date, do not exceed 30%, then the Group 4 Senior
Prepayment Percentage and the Group 5 Senior Prepayment Percentage
shall equal the Group 4 Senior Percentage or the Group 5 Senior
Percentage, as applicable, for such Distribution Date.

Notwithstanding the immediately preceding
paragraph, (A) for any Distribution Date, if the Group 4 Senior
Percentage for such Distribution Date is greater than the Group 4
Senior Percentage as of the Closing Date or the Group 5 Senior
Percentage for such Distribution Date is greater than the Group 5
Senior Percentage as of the Closing Date, then each of the Group 4
Senior Prepayment Percentage and Group 5 Senior Prepayment
Percentage shall equal 100%, (B) for any Distribution Date on or
before the seventh anniversary of the first Distribution Date, if
any of the tests specified in clauses (a) through (d) below is met,
then each of the Group 4 Senior Prepayment Percentage and Group 5
Senior Prepayment Percentage shall equal 100% and (C) for any
Distribution Date after the seventh anniversary of the first
Distribution Date, if any of the tests specified in clauses (a)
through (d) below is met (unless either (w) the Group 4 Senior
Percentage for such Distribution Date is greater than the Group 4
Senior Percentage as of the Closing Date, (x) the Group 5 Senior
Percentage for such Distribution Date is greater than the Group 5
Senior Percentage as of the Closing Date or (y) there is no Groups
1 & 2 Earlier Distribution Date (as defined below), in each of
which case each of the Group 4 Senior Prepayment Percentage and the
Group 5 Senior Prepayment Percentage shall equal 100%), then each
of the Group 4 Senior Prepayment Percentage and the Group 5 Senior
Prepayment Percentage shall be calculated as follows:  (1) if
the most recent preceding Distribution Date on which none of the
tests specified in clauses (a) through (d) below was met (such date
referred to as the “Groups 4 & 5 Earlier Distribution
Date”) is on or after the seventh anniversary but before
the eighth anniversary of the first Distribution Date, then the
Group 4 Senior Prepayment Percentage and the Group 5 Senior
Prepayment Percentage shall equal the Group 4 Senior Percentage or
the Group 5 Senior Percentage, as applicable, for the current
Distribution Date plus 70% of the Subordinate Percentage for the
related Loan Group for the current Distribution Date, (2) if the
Groups 1 & 2 Earlier Distribution Date is on or after the
eighth anniversary but before the ninth anniversary of the first
Distribution Date, then the Group 4 Senior Prepayment Percentage
and the Group 5 Senior Prepayment Percentage shall equal the Group
4 Senior Percentage or the Group 5 Senior Percentage, as
applicable, for the current Distribution Date plus 60% of the
Subordinate Percentage for the related Loan Group for the current
Distribution Date, (3) if the Groups 1 & 2 Earlier Distribution
Date is on or after the ninth  anniversary but before the
tenth anniversary of the first Distribution Date, then the Group 4
Senior Prepayment Percentage and the Group 5 Senior Prepayment
Percentage shall equal the Group 4 Senior Percentage or the Group 5
Senior Percentage, as applicable, for the current Distribution Date
plus 40% of the Subordinate Percentage for the related Loan Group
for the current Distribution Date, (4) if the Groups 1 & 2
Earlier Distribution Date is on or after the tenth anniversary but
before the eleventh anniversary of the first Distribution Date,
then the Group 4 Senior Prepayment Percentage and the Group 5
Senior Prepayment Percentage shall equal the Group 4 Senior
Percentage or the Group 5 Senior Percentage, as applicable, for the
current Distribution Date plus 20% of the Subordinate Percentage
for the related Loan Group for the current Distribution Date, and
(5) if the Groups 1 & 2 Earlier Distribution Date is on or
after the eleventh anniversary of the first Distribution Date, then
the Group 4 Senior Prepayment Percentage and the Group 5 Senior
Prepayment Percentage shall equal the Group 4 Senior Percentage or
the Group 5 Senior Percentage, as applicable, for the current
Distribution Date:

(a)        the
mean aggregate Principal Balance, as of the Distribution Date in
each of the immediately preceding six calendar months, of the Group
4 Loans which were 60 or more days delinquent as of such date
(including Mortgage Loans in bankruptcy or foreclosure and
Mortgaged Properties held by REMIC III) is greater than 50% of the
Subordinate Component Balance for Loan Group 4 as of the current
Distribution Date,

(b)        the
mean aggregate Principal Balance, as of the Distribution Date in
each of the immediately preceding six calendar months, of the Group
5 Loans which were 60 or more days delinquent as of such date
(including Mortgage Loans in bankruptcy or foreclosure and
Mortgaged Properties held by REMIC III) is greater than 50% of the
Subordinate Component Balance for Loan Group 5 as of the current
Distribution Date,

(c)       
cumulative Realized Losses on the Group 4 Loans allocated to the
Group M-B Certificates, as a percentage of the Subordinate
Component Balance for Loan Group 4 as of the Closing Date, are
greater than, for any Distribution Date (1) before the eighth
anniversary of the first Distribution Date, 30%, (2) on or after
the eighth anniversary but before the ninth anniversary of the
first Distribution Date, 35%, (3) on or after the ninth anniversary
but before the tenth anniversary of the first Distribution Date,
40%, (4) on or after the tenth anniversary but before the eleventh
anniversary of the first Distribution Date, 45%, and (5) on or
after the eleventh anniversary of the first Distribution Date, 50%
or

(d)       
cumulative Realized Losses on the Group 5 Loans allocated to the
Group M-B Certificates, as a percentage of the Subordinate
Component Balance for Loan Group 5 as of the Closing Date, are
greater than, for any Distribution Date (1) before the eighth
anniversary of the first Distribution Date, 30%, (2) on or after
the eighth anniversary but before the ninth anniversary of the
first Distribution Date, 35%, (3) on or after the ninth anniversary
but before the tenth anniversary of the first Distribution Date,
40%, (4) on or after the tenth anniversary but before the eleventh
anniversary of the first Distribution Date, 45%, and (5) on or
after the eleventh anniversary of the first Distribution Date,
50%.

If on
any Distribution Date the allocation to the Group 4-A or Group 5-A
Certificates of Principal Prepayments in the percentage required
would reduce the aggregate Class Principal Balance of such
Certificates below zero, the Group 4 Senior Prepayment Percentage
or the Group 5 Senior Prepayment Percentage, as applicable, for
such Distribution Date shall be limited to the percentage necessary
to reduce such aggregate Class Principal Balance to
zero.

Group 4 Senior Principal Distribution
Amount:  For any Distribution Date, an amount equal
to the sum of (a) the Group 4 Senior Percentage of the Principal
Payment Amount for Loan Group 4, (b) the Group 4 Senior Prepayment
Percentage of the Principal Prepayment Amount for Loan Group 4 and
(c) the Group 4 Senior Liquidation Amount.

Group 4 Subordinate Balance:  For
any date of determination, an amount equal to the then outstanding
aggregate Principal Balance of the Group 4 Loans reduced by the
aggregate Class Principal Balance of the Group 4-A
Certificates.

Group 4 Subordinate Percentage: For
any Distribution Date, the excess of 100% over the Group 4 Senior
Percentage for such date.

Group 4 Subordinate Prepayment
Percentage:  For any Distribution Date, the excess
of 100% over the Group 4 Senior Prepayment Percentage for such
Distribution Date; provided, however, that if the aggregate
Class Principal Balance of the Group 4-A Certificates has been
reduced to zero, then the Group 4 Subordinate Prepayment Percentage
shall equal 100%.

Group 4-A Certificates: The Class 4-A1
and Class 4-A2 Certificates.

Group 5 Certificates: The Group 5-A
Certificates.

Group 5 Loans:  The Mortgage
Loans designated on the Mortgage Loan Schedule as Group 5
Loans.

Group 5 Senior Liquidation Amount: For
any Distribution Date, the sum of (A) the aggregate, for each
Group 5 Loan which became a Liquidated Mortgage Loan during the
Prior Period, of the lesser of: (i) the Group 5 Senior Percentage
of the Principal Balance of such Mortgage Loan immediately before
such Distribution Date and (ii) the Group 5 Senior Prepayment
Percentage of the Liquidation Principal with respect to such
Mortgage Loan and (B) the Group 5 Senior Prepayment Percentage
of any Subsequent Recoveries for Loan Group 5.

Group 5 Senior Percentage: For any
Distribution Date, the lesser of (i) 100% and (ii) the aggregate
Class Principal Balance of the Group 5-A Certificates divided by
the aggregate Principal Balance of the Group 5 Loans, in each case
immediately before such Distribution Date.

Group 5 Senior Prepayment
Percentage:  See the definition of “Group 4
Senior Prepayment Percentage or Group 5 Senior Prepayment
Percentage”.

Group 5 Senior Principal Distribution
Amount:  For any Distribution Date, an amount equal
to the sum of (a) the Group 5 Senior Percentage of the Principal
Payment Amount for Loan Group 5, (b) the Group 5 Senior Prepayment
Percentage of the Principal Prepayment Amount for Loan Group 5 and
(c) the Group 5 Senior Liquidation Amount.

Group5 Subordinate Balance:  For
any date of determination, an amount equal to the then outstanding
aggregate Principal Balance of the Group 5 Loans reduced by the sum
of (i) the aggregate Class Principal Balance of the Group 5-A
Certificates.

Group 5 Subordinate Percentage: For
any Distribution Date, the excess of 100% over the Group 5 Senior
Percentage for such date.

Group 5 Subordinate Prepayment
Percentage:  For any Distribution Date, the excess
of 100% over the Group 5 Senior Prepayment Percentage for such
Distribution Date; provided, however, that if the aggregate
Class Principal Balance of the Group 5-A Certificates has been
reduced to zero, then the Group 5 Subordinate Prepayment Percentage
shall equal 100%.

Group 5-A Certificates: The Class 5-A1
and Class 5-A2 Certificates.

Group L-B Certificates: The Class
L-B-1, Class L-B-2, Class L-B-3, Class L-B-4, Class L-B-5 and Class
L-B-6 Certificates.

Group L-B Percentage:  For any
date of determination, the aggregate Class Principal Balance of the
Group L-B Certificates divided by the then outstanding aggregate
Principal Balance of the Group 1 and Group 2 Loans.

Group L-B Subordinate Liquidation
Amount:  For any Distribution Date, the excess, if
any, of the sum of (A) the aggregate of Liquidation Principal for
all Group 1 and Group 2 Loans which became Liquidated Mortgage
Loans during the Prior Period and (B) any Subsequent Recoveries for
such Distribution Date for Loan Group 1 and Loan Group 2, over the
sum of the Group 1 Senior Liquidation Amount and the Group 2 Senior
Liquidation Amount for such Distribution Date.

Group L-B Subordinate Principal Distribution
Amount:  For any Distribution Date, the excess of
(A) the sum of (i) the Group 1 Subordinate Percentage of the
Principal Payment Amount for Loan Group 1, (ii) the Group 2
Subordinate Percentage of the Principal Payment Amount for Loan
Group 2, (iii) the Group L-B Subordinate Principal Prepayments
Distribution Amount (without regard to the proviso in the
definition thereof) and (iv) the Subordinate Liquidation Amount,
over (B) the sum of (x) the amounts, if any, paid from the REMIC IV
Available Distribution Amount pursuant to clause (X) of the
sentence immediately following paragraph (I)(C) of the definition
of “REMIC IV Distribution Amount,” and (y) the amounts,
if any, paid from the REMIC IV Available Distribution Amount
pursuant to clause (Y) of the sentence immediately following
paragraph (I)(C) of the definition of “REMIC IV Distribution
Amount.”

For
any Distribution Date, the Subordinate Principal Distribution
Amount shall be allocated pro rata, by Class Principal Balance,
among the Classes of Group L-B Certificates and paid in the order
of distribution to such Classes pursuant to clause (I)(C) of the
definition of “REMIC IV Distribution Amount” except as
otherwise stated in such definition. Notwithstanding the foregoing,
for any Distribution Date prior to distributions on such date, if
the Subordination Level for any Class or Classes of Group L-B
Certificates is less than such Subordination Level as of the
Closing Date, then the pro rata portion of the Group L-B
Subordinate Principal Prepayments Distribution Amount, if any,
otherwise allocable to such Class or Classes of Group L-B
Certificates shall be allocated to the more senior Classes of Group
L-B Certificates, pro rata according to the Class Principal
Balances of such Classes.  For purposes of this definition and
the definition of “Subordination Level,” the relative
seniority, from highest to lowest, of the Group L-B Certificates
shall be as follows: Class L-B-1, Class L-B-2, Class L-B-3, Class
L-B-4, Class L-B-5 and Class L-B-6.

Group L-B Subordinate Principal Prepayments
Distribution Amount:  For any Distribution Date,
the sum of (i) the Group 1 Subordinate Prepayment Percentage of the
Principal Prepayment Amount for Loan Group 1 and (ii) the Group 2
Subordinate Prepayment Percentage of the Principal Prepayment
Amount for Loan Group 2; provided, however, that if the
amount specified in clause (B) of the definition of “Group
L-B Subordinate Principal Distribution Amount” is greater
than the sum of the amounts specified in clauses (A)(i), (A)(ii)
and (A)(iv) of such definition, then the Group L-B Subordinate
Principal Prepayments Distribution Amount shall be reduced by the
amount of such excess.

Group L-B Weighted Average Pass-Through
Rate:  For any Distribution Date, a fraction, the
numerator of which is the sum of (i) the product of
(x) the Loan Group 1 Weighted Average Pass-Through Rate and
(y) the Subordinate Component Balance for Loan Group 1
immediately before that Distribution Date and (ii) the product
of (x) the Loan Group 2 Weighted Average Pass-Through Rate and
(y) the Subordinate Component Balance for Loan Group 2
immediately before that Distribution Date and the denominator of
which is the sum of the Subordinate Component Balances for Loan
Group 1 and Loan Group 2 immediately before that Distribution
Date.

For
REMIC purposes, the Group L-B Weighted Average Pass-Through Rate
for any Distribution Date shall equal the weighted average of the
Certificate Interest Rates for the Class Y-1 and Class Y-2 Regular
Interests.

Group M-B Certificates: The Class
M-B-1, Class M-B-2, Class M-B-3, Class M-B-4, Class M-B-5 and Class
M-B-6 Certificates.

Group M-B Percentage:  For any
date of determination, the aggregate Class Principal Balance of the
Group M-B Certificates divided by the then outstanding aggregate
Principal Balance of the Group 4 and Group 5 Loans.

Group M-B Subordinate Liquidation
Amount:  For any Distribution Date, the excess, if
any, of the sum of (A) the aggregate of Liquidation Principal for
all Group 4 and Group 5 Loans which became Liquidated Mortgage
Loans during the Prior Period and (B) any Subsequent Recoveries for
such Distribution Date for Loan Group 4 and Loan Group 5, over the
sum of the Group 4 Senior Liquidation Amount and the Group 5 Senior
Liquidation Amount for such Distribution Date.

Group M-B Subordinate Principal Distribution
Amount:  For any Distribution Date, the excess of
(A) the sum of (i) the Group 4 Subordinate Percentage of the
Principal Payment Amount for Loan Group 4, (ii) the Group 5
Subordinate Percentage of the Principal Payment Amount for Loan
Group 5, (iii) the Group M-B Subordinate Principal Prepayments
Distribution Amount (without regard to the proviso in the
definition thereof) and (iv) the Subordinate Liquidation Amount,
over (B) the sum of (x) the amounts, if any, paid from the REMIC IV
Available Distribution Amount pursuant to clause (X) of the
sentence immediately following paragraph (III)(C) of the definition
of “REMIC IV Distribution Amount,” and (y) the amounts,
if any, paid from the REMIC IV Available Distribution Amount
pursuant to clause (Y) of the sentence immediately following
paragraph (III)(C) of the definition of “REMIC IV
Distribution Amount.”

For
any Distribution Date, the Subordinate Principal Distribution
Amount shall be allocated pro rata, by Class Principal Balance,
among the Classes of Group M-B Certificates and paid in the order
of distribution to such Classes pursuant to clause (III)(C) of the
definition of “REMIC IV Distribution Amount” except as
otherwise stated in such definition. Notwithstanding the foregoing,
for any Distribution Date prior to distributions on such date, if
the Subordination Level for any Class or Classes of Group M-B
Certificates is less than such Subordination Level as of the
Closing Date, then the pro rata portion of the Group M-B
Subordinate Principal Prepayments Distribution Amount, if any,
otherwise allocable to such Class or Classes of Group M-B
Certificates shall be allocated to the more senior Classes of Group
M-B Certificates, pro rata according to the Class Principal
Balances of such Classes. For purposes of this definition and the
definition of “Subordination Level,” the relative
seniority, from highest to lowest, of the Group M-B Certificates
shall be as follows: Class M-B-1, Class M-B-2, Class M-B-3, Class
M-B-4, Class M-B-5 and Class M-B-6.

Group M-B Subordinate Principal Prepayments
Distribution Amount:  For any Distribution Date,
the sum of (i) the Group 4 Subordinate Prepayment Percentage of the
Principal Prepayment Amount for Loan Group 4 and (ii) the Group 5
Subordinate Prepayment Percentage of the Principal Prepayment
Amount for Loan Group 5; provided, however, that if the
amount specified in clause (B) of the definition of “Group
M-B Subordinate Principal Distribution Amount” is greater
than the sum of the amounts specified in clauses (A)(i), (A)(ii)
and (A)(iv) of such definition, then the Group M-B Subordinate
Principal Prepayments Distribution Amount shall be reduced by the
amount of such excess.

Group M-B Weighted Average Pass-Through
Rate:  For any Distribution Date, a fraction, the
numerator of which is the sum of (i) the product of
(x) the Loan Group 4 Weighted Average Pass-Through Rate and
(y) the Subordinate Component Balance for Loan Group 4
immediately before that Distribution Date and (ii) the product
of (x) the Loan Group 5 Weighted Average Pass-Through Rate and
(y) the Subordinate Component Balance for Loan Group 5
immediately before that Distribution Date and the denominator of
which is the sum of the Subordinate Component Balances for Loan
Group 4 and Loan Group 5 immediately before that Distribution
Date.

For
REMIC purposes, the Group M-B Weighted Average Pass-Through Rate
for any Distribution Date shall equal the weighted average of the
Certificate Interest Rates for the Class Y-4 and Class Y-5 Regular
Interests.

Groups 1-2 Clean-Up Call Option
Date:  The date on which the aggregate principal
balance of the Group 1 and Group 2 Loans has been reduced to less
than the Groups 1-2 Clean-Up Call Percentage of that balance as of
the Cut-Off Date.

Groups 1-2 Clean-Up Call Percentage:
10%.

Groups 1-2 Credit Support Depletion
Date: The first Distribution Date on which the aggregate
Class Principal Balance of the Group L-B Certificates has been or
will be reduced to zero as a result of principal distributions
thereon and the allocation of Realized Losses on such Distribution
Date.

Groups 1-2 Excess Liquidation
Proceeds: With respect to any Distribution Date, the sum
of (i) the excess, if any, of aggregate Liquidation Proceeds and
Insurance Proceeds received with respect to the Group 1 and Group 2
Loans during the Prior Period over the amount that would have been
received if Payoffs had been made with respect to such Mortgage
Loans during such Prior Period and (ii) any Excess Subsequent
Recoveries for Loan Group 1 or Loan Group 2 for such Distribution
Date.

Groups 4-5 Clean-Up Call Option
Date:  The date on which the aggregate principal
balance of the Group 4 and Group 5 Loans has been reduced to less
than the Groups 4-5 Clean-Up Call Percentage of that balance as of
the Cut-Off Date.

Groups 4-5 Clean-Up Call Percentage:
10%.

Groups 4-5 Credit Support Depletion
Date: The first Distribution Date on which the aggregate
Class Principal Balance of the Group M-B Certificates has been or
will be reduced to zero as a result of principal distributions
thereon and the allocation of Realized Losses on such Distribution
Date.

Groups 4-5 Excess Liquidation
Proceeds: With respect to any Distribution Date, the sum
of (i) the excess, if any, of aggregate Liquidation Proceeds and
Insurance Proceeds received with respect to the Group 4 and Group 5
Loans during the Prior Period over the amount that would have been
received if Payoffs had been made with respect to such Mortgage
Loans during such Prior Period and (ii) any Excess Subsequent
Recoveries for Loan Group 4 or Loan Group 5 for such Distribution
Date.

Index:  For each Mortgage Loan,
initially, either One-Year CMT or One-Year LIBOR, as set forth on
the Mortgage Loan Schedule.  In the event such initial Index
(or a substitute index) is no longer available, the Servicer will
select a substitute index in accordance with the Mortgage Note.

Indirect DTC Participants: Entities
such as banks, brokers, dealers or trust companies, that clear
through or maintain a custodial relationship with a DTC
Participant, either directly or indirectly.

Initial Custodial Agreement: The
Custodial Agreement, dated the date hereof, among the Trustee, the
Servicer and the Initial Custodian.

Initial Custodian :  Washington
Mutual Bank fsb.

Insurance Proceeds: Amounts paid or
payable by the insurer under any Primary Insurance Policy or any
other insurance policy (including any replacement policy permitted
under this Agreement) covering any Mortgage Loan or Mortgaged
Property, including, without limitation, any hazard insurance
policy required pursuant to Section 3.07, any title insurance
policy and any FHA insurance policy or VA guaranty, to the extent
such amounts are not released to the Mortgagor in accordance with
prudent mortgage loan servicing practices.

Interest Distribution Amount: 
For any Distribution Date for any Class of REMIC I Regular
Interests, REMIC II Regular Interests, REMIC III Regular Interests,
REMIC IV Regular Interests and the Class R-1 Residual Interest, the
amount of interest accrued during the Prior Period, at the related
Certificate Interest Rate for such Class for such Distribution Date
on the respective Class Principal Balance immediately before such
Distribution Date, reduced by Uncompensated Interest Shortfall and
the interest portion of Realized Losses allocated to such Class on
such Distribution Date pursuant to the definitions of
“Uncompensated Interest Shortfall” and “Realized
Loss,” respectively.

The
computation of interest accrued shall be made on the basis of a
360-day year of twelve 30-day months.

Interest Transfer Amount: On any
Distribution Date for an Undercollateralized Group, an amount equal
to one month’s interest on the applicable Principal Transfer
Amount at the weighted average of the Certificate Interest Rates on
the Class A Certificates related to such Undercollateralized Group,
plus any interest accrued on such Class A Certificates remaining
unpaid from prior Distribution Dates.

Investment Account: The commingled
account (which shall be commingled only with investment accounts
related to series of pass-through certificates with a class of
certificates which has a rating equal to the highest of the Ratings
of the Certificates) maintained by the Servicer in the trust
department of the Investment Depository pursuant to Section
3.03.

Investment Depository: JPMorgan Chase
Bank, N.A., or another bank or trust company designated from time
to time by the Servicer. The Investment Depository shall at all
times be an Eligible Institution.

Junior Subordinate Certificates: The
Class L-B-4, Class L-B-5, Class L-B-6, Class 3-B-4, Class 3-B-5,
Class 3-B-6, Class M-B-4, Class M-B-5 and Class M-B-6
Certificates.

Last Scheduled Distribution
Date: With respect to (a) the Group 1-A, Group
2-A, Group 3, Group L-B and Class R Certificates, the Distribution
Date in February 2037, (b) the Group 4-A Certificates, the
Distribution Date in May 2036 and (c) the Group 5-A and Group M-B
Certificates, the Distribution Date in August 2036.

Liquidated Mortgage Loan: A Mortgage
Loan (other than a Mortgage Loan with respect to which a Payoff has
been made) for which the Servicer has determined in accordance with
its customary servicing practices that it has received all amounts
which it expects to recover from or on account of such Mortgage
Loan, whether from Insurance Proceeds, Liquidation Proceeds or
otherwise. For purposes of this definition, acquisition of a
Mortgaged Property by the Trust shall not constitute final
liquidation of the related Mortgage Loan.

Liquidation Principal:  The
principal portion of Liquidation Proceeds and Insurance Proceeds
received with respect to each Mortgage Loan which became a
Liquidated Mortgage Loan during the Prior Period (but not in excess
of the principal balance thereof).

Liquidation Proceeds: Amounts received
and retained in connection with the liquidation of defaulted
Mortgage Loans, whether through foreclosure or otherwise, other
than Insurance Proceeds and other than Subsequent Recoveries, and
(except for purposes of the definition of “Realized
Loss”) after deduction of amounts reimbursable to the
Servicer under Section 3.05(a)(i) and (ii) hereof.

Loan Group: Loan Group 1, Loan Group
2, Loan Group 3, Loan Group 4 or Loan Group 5, as applicable.

Loan Group 1: The group of Mortgage
Loans comprised of the Group 1 Loans.

Loan Group 1 Weighted Average Pass-Through
Rate:  For any Distribution Date, the weighted
average of the Pass-Through Rates on the Group 1 Loans as of the
second preceding Due Date (after giving effect to (i) payments due
on such Mortgage Loans on such Due Date and (ii) except for the
first Distribution Date, any Payoffs on such Mortgage Loans
received on or before the 14th day of the calendar month of such
Due Date).

Loan Group 2:  The group of
Mortgage Loans comprised of the Group 2 Loans.

Loan Group 2 Weighted Average Pass-Through
Rate:  For any Distribution Date, the weighted
average of the Pass-Through Rates on the Group 2 Loans as of the
second preceding Due Date (after giving effect to (i) payments due
on such Mortgage Loans on such Due Date and (ii) except for the
first Distribution Date, any Payoffs on such Mortgage Loans
received on or before the 14th day of the calendar month of such
Due Date).

Loan Group 3: The group of Mortgage
Loans comprised of the Group 3 Loans.

Loan Group 3 Weighted Average Pass-Through
Rate:  For any Distribution Date, the weighted
average of the Pass-Through Rates on the Group 3 Loans as of the
second preceding Due Date (after giving effect to (i) payments due
on such Mortgage Loans on such Due Date and (ii) except for the
first Distribution Date, any Payoffs on such Mortgage Loans
received on or before the 14th day of the calendar month of such
Due Date).

Loan Group 4:  The group of
Mortgage Loans comprised of the Group 4 Loans.

Loan Group 4 Weighted Average Pass-Through
Rate:  For any Distribution Date, the weighted
average of the Pass-Through Rates on the Group 4 Loans as of the
second preceding Due Date (after giving effect to (i) payments due
on such Mortgage Loans on such Due Date and (ii) except for the
first Distribution Date, any Payoffs on such Mortgage Loans
received on or before the 14th day of the calendar month of such
Due Date).

Loan Group 5:  The group of
Mortgage Loans comprised of the Group 5 Loans.

Loan Group 5 Weighted Average Pass-Through
Rate:  For any Distribution Date, the weighted
average of the Pass-Through Rates on the Group 5 Loans as of the
second preceding Due Date (after giving effect to (i) payments due
on such Mortgage Loans on such Due Date and (ii) except for the
first Distribution Date, any Payoffs on such Mortgage Loans
received on or before the 14th day of the calendar month of such
Due Date).

Lowest Class B Owner: An owner
unaffiliated with the Company or the Servicer of (i) a 100%
interest in the Class of Group L-B Certificates with the lowest
priority, (ii) a 100% interest in the Class of Group 3-B
Certificates with the lowest priority, (iii) a 100% interest in the
Class of Group M-B Certificates with the lowest priority or (iv) a
100% interest in a class of securities representing such interest
in such Class specified in clause (i), (ii) or (iii) above.

MERS: Mortgage Electronic Registration
Systems, Inc., a Delaware corporation, or any successor
thereto.

MERS Loan: Any Mortgage Loan
registered on the MERS® System for which MERS appears as the
mortgagee of record on the related Mortgage or on an assignment
thereof.

MERS® System: The system of
electronically recording transfers of Mortgages maintained by
MERS.

MIN: The Mortgage Identification
Number for a MERS Loan.

MOM Loan: A MERS Loan that was
registered on the MERS® System at the time of origination
thereof and for which MERS appears as the mortgagee of record on
the related Mortgage.

Monthly P&I Advance: An advance of
funds by the Servicer pursuant to Section 4.02 to cover delinquent
principal and interest installments.

Monthly Payment: For each Mortgage
Loan, the scheduled payment of principal (if any) and interest on a
Mortgage Loan (including any amounts due from a Buydown Fund, if
any) which is due on the related Due Date for such Mortgage
Loan.

Moody’s:  Moody’s
Investors Service, Inc., provided that at the applicable time it is
a Rating Agency.

Mortgage: The mortgage, deed of trust
or other instrument securing a Mortgage Note.

Mortgage File: The following documents
or instruments with respect to each Mortgage Loan, (X) with respect
to each Mortgage Loan that is not a Cooperative Loan:

(i)                 
The original Mortgage Note endorsed (A) in blank, without recourse,
(B) to the Trustee, without recourse, or (C) to the Trust, without
recourse, and all intervening endorsements evidencing a complete
chain of endorsements from the originator to the endorser last endorsing the Mortgage Note, or,
in the event of any Destroyed Mortgage Note, a copy or a duplicate
original of the Mortgage Note (or portion thereof, as applicable),
together with an original lost note affidavit from the originator
of the Mortgage Loan, the applicable Seller or the Company stating
that the original Mortgage Note (or portion thereof, as applicable)
was lost, misplaced or destroyed, together with a copy of the
Mortgage Note (or portion thereof, as applicable); provided,
however, that in the event that either (a) Washington Mutual
Bank or Washington Mutual Bank fsb is the Seller of the Mortgage
Loan or (b) Washington Mutual Mortgage Securities Corp. is the
Seller of the Mortgage Loan and purchased the Mortgage Loan from
Washington Mutual Bank or Washington Mutual Bank fsb, then the
Mortgage Note need not be endorsed in blank or to the Trustee or
the Trust as provided above, but, if not so endorsed, shall be made
payable to, or properly endorsed to, Washington Mutual Bank or
Washington Mutual Bank fsb, as applicable;

(ii)               
The Buydown Agreement, if applicable;

(iii)              
(1)        (x) the original
recorded Mortgage with evidence of recording thereon for the
jurisdiction in which the Mortgaged Property is located (which
original recorded Mortgage, in the case of a MOM Loan, shall set
forth the MIN and shall indicate that the Mortgage Loan is a MOM
Loan), (y) unless the Mortgage Loan is a MERS Loan, an original
assignment of the Mortgage duly executed and acknowledged in
recordable form (A) in blank, (B) to the Trustee or (C) to the
Trust, and (z) unless the Mortgage Loan is a MOM Loan, recorded
originals of all intervening assignments evidencing a complete
chain of assignment from the originator to the person executing the
assignment described in clause (y); or

(2)        (x)
a copy (which may be in electronic form) of the Mortgage (which
Mortgage, in the case of a MOM Loan, shall set forth the MIN and
shall indicate that the Mortgage Loan is a MOM Loan) which
represents a true and correct reproduction of the original Mortgage
and which has either been certified (i) on the face thereof by the
public recording office in the appropriate jurisdiction in which
the Mortgaged Property is located, or (ii) by the originator, the
applicable Seller, the Servicer or the escrow or title company
which provided closing services in connection with such Mortgage
Loan as a true and correct copy the original of which has been sent
for recordation, (y) unless the Mortgage Loan is a MERS Loan, an
original assignment of the Mortgage duly executed and acknowledged
in recordable form (A) in blank, (B) to the Trustee or (C) to the
Trust, and (z) unless the Mortgage Loan is a MOM Loan, true and
correct copies, certified by the applicable county recorder or by
the originator, the applicable Seller or the Servicer as described
above, of all intervening assignments evidencing a complete chain
of assignment from the originator to the person executing the
assignment described in clause (y);

provided,
however, that in the event that either (a) Washington
Mutual Bank or Washington Mutual Bank fsb is the Seller of the
Mortgage Loan or (b) Washington Mutual Mortgage Securities Corp. is
the Seller of the Mortgage Loan and purchased the Mortgage Loan
from Washington Mutual Bank or Washington Mutual Bank fsb, then the
Mortgage File need not include an assignment of the Mortgage
executed in blank or to the Trustee or the Trust as provided in
clause (X)(iii)(1)(y) or (X)(iii)(2)(y) above, as applicable, but
the Mortgage File shall, unless the Mortgage Loan was originated by
Washington Mutual Bank or Washington Mutual Bank fsb, include a
complete chain of assignments of the related Mortgage from the
originator of such Mortgage Loan to Washington Mutual Bank or
Washington Mutual Bank fsb, as applicable; and

(iv)             
For any Mortgage Loan that has been modified or amended, the
original instrument or instruments effecting such modification or
amendment;

and (Y) with respect to each Cooperative
Loan:

(v)               
The original Mortgage Note endorsed (A) in blank, without recourse,
(B) to the Trustee, without recourse, or (C) to the Trust, without
recourse, and all intervening endorsements evidencing a complete
chain of endorsements from the originator to the endorser last endorsing the Mortgage Note, or,
in the event of any Destroyed Mortgage Note, a copy or a duplicate
original of the Mortgage Note (or portion thereof, as applicable),
together with an original lost note affidavit from the originator
of the Cooperative Loan, the applicable Seller or the Company, as
applicable, stating that the original Mortgage Note (or portion
thereof, as applicable) was lost, misplaced or destroyed, together
with a copy of the Mortgage Note (or portion thereof, as
applicable); provided, however, that in the event that
either (a) Washington Mutual Bank or Washington Mutual Bank fsb is
the Seller of the Mortgage Loan or (b) Washington Mutual Mortgage
Securities Corp. is the Seller of the Mortgage Loan and purchased
the Mortgage Loan from Washington Mutual Bank or Washington Mutual
Bank fsb, then the Mortgage Note need not be endorsed in blank or
to the Trustee or the Trust as provided above, but, if not so
endorsed, shall be made payable to, or properly endorsed to,
Washington Mutual Bank or Washington Mutual Bank fsb, as
applicable;

(vi)             
A counterpart of the Cooperative Lease and the Assignment of
Proprietary Lease;

(vii)            
The Cooperative Stock Certificate, together with an undated stock
power or other similar instrument executed in blank;

(viii)          
The Recognition Agreement;

(ix)             
The Security Agreement;

(x)               
Copies of the original UCC financing statement, and any
continuation statements or amendments thereof, each with evidence
of recording thereof, perfecting the security interest granted
under the Security Agreement and the Assignment of Proprietary
Lease;

(xi)             
Copies of the filed UCC assignments or amendments of the UCC
financing statements described in clause (vi) above showing an
unbroken chain of assignments from the originator to the Trustee or
the Trust, each with evidence of recording thereof;

(xii)            
Executed assignments of the interest of the originator in the
Security Agreement, the Assignment of Proprietary Lease and the
Recognition Agreement, showing an unbroken chain of assignments
from the originator to the Trustee or the Trust; and

(xiii)          
For any Cooperative Loan that has been modified or amended, the
original instrument or instruments effecting such modification or
amendment;

provided,
however, that in the event that either (a) Washington
Mutual Bank or Washington Mutual Bank fsb is the Seller of the
Mortgage Loan or (b) Washington Mutual Mortgage Securities Corp. is
the Seller of the Mortgage Loan and purchased the Mortgage Loan
from Washington Mutual Bank or Washington Mutual Bank fsb, then the
Mortgage File need not include (1) a UCC assignment or amendment of
the UCC financing statement referenced in clause (Y)(vi) above to
the Trustee or the Trust as provided in clause (Y)(vii) above, but
the Mortgage File shall, unless the Cooperative Loan was originated
by Washington Mutual Bank or Washington Mutual Bank fsb, include a
UCC assignment or amendment of such UCC financing statement to
Washington Mutual Bank or Washington Mutual Bank fsb, as
applicable, or (2) an assignment of the interest of the originator
in the Security Agreement, the Assignment of Proprietary Lease and
the Recognition Agreement to the Trustee or the Trust as provided
in clause (Y)(viii) above, but the Mortgage File shall, unless the
Cooperative Loan was originated by Washington Mutual Bank or
Washington Mutual Bank fsb, include an assignment of such interest
to Washington Mutual Bank or Washington Mutual Bank fsb, as
applicable.

Mortgage Interest Rate: For any
Mortgage Loan, the per annum rate at which interest accrues on such
Mortgage Loan pursuant to the terms of the related Mortgage
Note.

Mortgage Loan Margin:  For each
Mortgage Loan, the applicable fixed per annum percentage rate
specified in the applicable Mortgage Note and designated as such in
the Mortgage Loan Schedule; provided, however, that in the
event the applicable Index is replaced, the Mortgage Loan Margin
will be increased or decreased pursuant to the related Mortgage
Note.

Mortgage Loan Purchase Agreement: The
Mortgage Loan Purchase and Sale Agreement, dated as of October 25,
2005, among the Company, Washington Mutual Bank and Washington
Mutual Bank fsb, as supplemented and amended by the Term Sheet,
dated the Closing Date, between the Company and Washington Mutual
Bank and relating to the Certificates.

Mortgage Loan Schedule: The schedule,
as amended from time to time, of Mortgage Loans attached hereto as
Exhibit D, which shall set forth as to each Mortgage Loan the
following, among other things:

(xiv)          
its loan number,

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

(xvi)          
the Monthly Payment as of the Cut-Off Date,

(xvii)        
the Appraised Value of the property subject to the
Mortgage,

(xviii)       
the Principal Balance as of the Cut-Off Date,

(xix)          
the Mortgage Interest Rate, as of the Cut-Off Date, under the
Mortgage Note and the Rate Ceiling, Rate Floor, subsequent Periodic
Cap, and Mortgage Loan Margin, as applicable, under the Mortgage
Note,

(xx)           
whether a Primary Insurance Policy is in effect as of the Cut-Off
Date, and, if so, whether such Primary Insurance Policy is a
Special Primary Insurance Policy,

(xxi)          
the maturity of the Mortgage Note,

(xxii)        
the Servicing Fee Rate, and

(xxiii)       
its Loan Group.

Mortgage Loans: The mortgage loans and
cooperative loans (if any), including each Substitute Mortgage
Loan, listed on the Mortgage Loan Schedule. With respect to each
Mortgage Loan that is a Cooperative Loan, “Mortgage
Loan” shall include, but not be limited to, the Mortgage Note
and the related Security Agreement, Assignment of Proprietary
Lease, Recognition Agreement, Cooperative Stock Certificate and
Cooperative Lease and, with respect to each Mortgage Loan other
than a Cooperative Loan, “Mortgage Loan” shall include,
but not be limited to, the Mortgage Note and the related
Mortgage.

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

Mortgage Pool: All of the Mortgage
Loans.

Mortgage Pool Assets: (i) The Mortgage
Loans (including all Substitute Mortgage Loans) identified on the
Mortgage Loan Schedule, and all rights pertaining thereto,
including the related Mortgage Notes, Mortgages, Cooperative Stock
Certificates, Cooperative Leases, Security Agreements, Assignments
of Proprietary Lease, and Recognition Agreements, and all Monthly
Payments due after the Cut-Off Date and all other payments and
distributions collected with respect to the Mortgage Loans on or
after the Cut-Off Date; (ii) the Certificate Account, the
Investment Account, and all money, instruments, investment
property, and other property credited thereto, carried therein, or
deposited therein (except amounts constituting the Servicing Fee);
(iii) the Custodial Accounts for P&I and any Buydown Fund
Account (to the extent of the amounts on deposit or other property
therein attributable to the Mortgage Loans), and all money,
instruments, investment property, and other property credited
thereto, carried therein, or deposited therein (except amounts
constituting the Servicing Fee); (iv) all property that secured a
Mortgage Loan and that has been acquired by foreclosure or deed in
lieu of foreclosure or, in the case of a Cooperative Loan, a
similar form of conversion, after the Cut-Off Date; and (v) each
FHA insurance policy, Primary Insurance Policy, VA guaranty, and
other insurance policy related to any Mortgage Loan, and all
amounts paid or payable thereunder and all proceeds thereof.

Mortgaged Property: With respect to
any Mortgage Loan, other than a Cooperative Loan, the real
property, together with improvements thereto, and, with respect to
any Cooperative Loan, the related Cooperative Stock and Cooperative
Lease, securing the indebtedness of the Mortgagor under the related
Mortgage Note.  “Mortgaged Property” shall also
refer to property which once secured the indebtedness of a
Mortgagor under the related Mortgage Loan but which was acquired by
the Trust upon foreclosure or other liquidation of such Mortgage
Loan.

Mortgagor: The obligor on a Mortgage
Note.

Nonrecoverable Advance: With respect
to any Mortgage Loan, any advance which the Servicer shall
determine to be a Nonrecoverable Advance pursuant to Section 4.03
and which was, or is proposed to be, made by the Servicer.

Non-U.S. Person: A Person that is not
a U.S. Person.

Notice Addresses: (a) In the case of
the Company, 1301 Second Avenue, WMC 3501A, Seattle, WA 98101, or
such other address as may hereafter be furnished to the Trustee in
writing by the Company, (b) in the case of the Servicer, 7800 N
113th Street Milwaukee, WI 53224, Fax No: (414) 359-5327,
Attention: President, Investor Reporting, with a copy to:
Washington Mutual Legal Department, 1301 Second Avenue, WMC 3501,
Seattle, WA 98101, Fax No: (206) 377-6244, Attention: WaMu, and
with a copy to Washington Mutual Mortgage Securities Corp., 1301 Second Avenue, WMC 1401, Seattle, WA
98101, Attention: Bond Administration, or such other address
and fax number as may hereafter be furnished in writing by the
Servicer, (c) in the case of the Trustee, at its Corporate Trust
Office, or such other address as may hereafter be furnished to the
Servicer in writing by the Trustee, (d) in the case of the Delaware
Trustee, 1314 King Street, Wilmington, DE 19801, or such other
address as may hereafter be furnished to the Servicer in writing by
the Delaware Trustee, (e) in the case of the Trust, c/o LaSalle
Bank National Association, at the Corporate Trust Office, or such
other address as may hereafter be furnished to the Servicer in
writing by the Trustee, (f) in the case of the Certificate
Registrar, at its Corporate Trust Office, or such other address as
may hereafter be furnished to the Trustee in writing by the
Certificate Registrar, (g) in the case of S&P, 55 Water Street,
41st Floor, New York, New York 10041-0003, Attention: 
Residential Mortgage Backed Securities Surveillance Group, or such
other address as may hereafter be furnished to the Trustee and
Servicer in writing by S&P, and (h) in the case of Fitch, 1
State Street Plaza, New York, New York 10004, Attention:
Monitoring, or such other address as may hereafter be furnished to
the Trustee and Servicer in writing by Fitch.

OTS: The Office of Thrift Supervision,
or any successor thereto.

Officer’s Certificate: A
certificate signed by the Chairman of the Board, the President, a
Vice President, or the Treasurer of the Servicer and delivered to
the Trustee or the Delaware Trustee, as applicable.

One-Year CMT:  The weekly average
yield on United States Treasury Securities adjusted to a constant
maturity of one year, as made available by the Federal Reserve
Board, published in Federal Reserve Statistical Release H.15(519)
and most recently available as of the date 45 days before the
applicable Adjustment Date.

One-Year LIBOR: The average of
interbank offered rates for one-year U.S. dollar-denominated
deposits in the London market, as published in The Wall Street
Journal and most recently available as of the date 45 days
before the applicable Adjustment Date.

Opinion of Counsel: A written opinion
of counsel, who shall be reasonably acceptable to the Trustee or
the Delaware Trustee, as applicable, and who may be counsel
(including in-house counsel) for the Company or the Servicer.

Original Trust Agreement: The Trust
Agreement, dated as of January 1, 2007, between the Company and the
Delaware Trustee, providing for the creation of the Trust.

Overcollateralized Group:  With
respect to (i) Loan Group 1 or Loan Group 2, either Loan Group, if
on any Distribution Date such Loan Group is not an
Undercollateralized Group and the other Loan Group is an
Undercollateralized Group and (ii) Loan Group 4 or Loan Group 5,
either Loan Group, if on any Distribution Date such Loan Group is
not an Undercollateralized Group and the other Loan Group is an
Undercollateralized Group.

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

Pass-Through Entity:  Any
regulated investment company, real estate investment trust, common
trust fund, partnership, trust or estate, and any organization to
which Section 1381 of the Code applies.

Pass-Through Rate: For each Mortgage
Loan, the excess, if any, of the Mortgage Interest Rate for such
Mortgage Loan over the sum of (i) the Servicing Fee Rate for such
Mortgage Loan and (ii) if such Mortgage Loan was covered by a
Special Primary Insurance Policy on the Closing Date (even if no
longer so covered), the per annum rate at which the applicable
Special Primary Insurance Premium for such Mortgage Loan is
calculated. For each Mortgage Loan, any calculation of monthly
interest at such rate shall be based upon annual interest at such
rate (computed on the basis of a 360-day year of twelve 30-day
months) on the unpaid Principal Balance of such Mortgage Loan
divided by twelve, and any calculation of interest at such rate by
reason of a Payoff shall be based upon annual interest at such rate
on the outstanding Principal Balance of such Mortgage Loan
multiplied by a fraction, the numerator of which is the number of
days elapsed from the Due Date of the last scheduled payment of
principal and interest to, but not including, the date of such
Payoff, and the denominator of which is (a) for Payoffs received on
a Due Date, 360, and (b) for all other Payoffs, 365.

Paying Agent: Any paying agent
appointed by the Trustee pursuant to Section 8.12.

Payoff: Any payment by or on behalf of
a Mortgagor of principal on a Mortgage Loan equal to the entire
outstanding principal balance of such Mortgage Loan, if received in
advance of the last scheduled Due Date for such Mortgage Loan and
accompanied by an amount of interest equal to accrued unpaid
interest on the Mortgage Loan to the date of such payment in
full.  (Prepayment penalties are not payments of principal and
hence Payoffs do not include prepayment penalties.)

Payoff Earnings: For any Distribution
Date with respect to each Mortgage Loan on which a Payoff was
received by the Servicer during the Payoff Period, the aggregate of
the interest earned by the Servicer from investment of each such
Payoff from the date of receipt of such Payoff until the Business
Day immediately preceding the related Distribution Date (net of
investment losses).

Payoff Interest: For any Distribution
Date with respect to a Mortgage Loan for which a Payoff was
received on or after the first calendar day of the month of such
Distribution Date and before the 15th calendar day of such month,
an amount of interest thereon at the applicable Pass-Through Rate
from the first day of the month of distribution through the day of
receipt thereof; to the extent (together with aggregate Payoff
Earnings and the aggregate Servicing Fee) not required to be
distributed as Compensating Interest on such Distribution Date,
aggregate Payoff Interest shall be paid to the Servicer as
additional servicing compensation.

Payoff Period: For the first
Distribution Date, the period from the Cut-Off Date through
February 14, 2007, inclusive; and for any Distribution Date
thereafter, the period from the 15th day of the Prior Period
through the 14th day of the month of such Distribution Date,
inclusive.

Percentage Interest:  (a) 
With respect to the right of each Certificate of a particular Class
in the distributions allocated to such Class, “Percentage
Interest” shall mean the percentage equal to:

(xxiv)      
with respect to any Certificate (other than the Residual
Certificates), its Certificate Principal Balance divided by the
applicable Class Principal Balance; and

(xxv)        
with respect to any Residual Certificate, the percentage set forth
on the face of such Certificate.

(b)       
With respect to the rights of each Certificate in connection with
Sections 5.09, 7.01, 8.01(c), 8.02, 8.07, 10.01 and 10.03,
“Percentage Interest” shall mean the percentage equal
to:

(xxvi)      
with respect to any Certificate (other than the Residual
Certificates), its Certificate Principal Balance divided by the
Aggregate Certificate Principal Balance of the Certificates (or,
with respect to its rights in connection with Section 5.09, by the
aggregate Class Principal Balance of the Book-Entry Certificates);
and

(xxvii)      with
respect to any Residual Certificate, zero.

Permitted Transferee: With respect to
the holding or ownership of any Residual Certificate, any Person
other than (i) the United States, a State or any political
subdivision thereof, or any agency or instrumentality of any of the
foregoing, (ii) a foreign government, International Organization or
any agency or instrumentality of either of the foregoing, (iii) an
organization (except certain farmers’ cooperatives described
in Code Section 521) which is exempt from the taxes imposed by
Chapter 1 of the Code (unless such organization is subject to the
tax imposed by Section 511 of the Code on unrelated business
taxable income), (iv) rural electric and telephone cooperatives
described in Code Section 1381(a)(2)(C), (v) any “electing
large partnership” as defined in Section 775(a) of the Code,
(vi) any Person from whom the Trustee has not received an affidavit
to the effect that it is not a “disqualified
organization” within the meaning of Section 860E(e)(5) of the
Code, and (vii) any other Person so designated by the Company based
upon an Opinion of Counsel that the transfer of an Ownership
Interest in a Residual Certificate to such Person may cause REMIC
I, REMIC II, REMIC III or REMIC IV to fail to qualify as a REMIC at
any time that the Certificates are outstanding. The terms
“United States,” “State” and
“International Organization” shall have the meanings
set forth in Code Section 7701 or successor provisions. A
corporation shall not be treated as an instrumentality of the
United States or of any State or political subdivision thereof if
all of its activities are subject to tax, and, with the exception
of the Freddie Mac, a majority of its board of directors is not
selected by such governmental unit.

Person: Any individual, corporation,
limited liability company, partnership, joint venture, association,
joint-stock company, trust, unincorporated organization, government
or any agency or political subdivision thereof, or any other entity
or organization, whether or not a legal entity.

Plan Investor: With respect to a
transfer of a Certificate, an employee benefit or other plan
subject to the prohibited transaction provisions of ERISA or
Section 4975 of the Code, or any person (including an investment
manager, a named fiduciary or a trustee of any such plan) acting,
directly or indirectly, on behalf of or purchasing such Certificate
with “plan assets” of any such plan.

Prepaid Monthly Payment: Any Monthly
Payment received prior to its scheduled Due Date, which is intended
to be applied to a Mortgage Loan on its scheduled Due Date and held
in the related Custodial Account for P&I until the Withdrawal
Date following its scheduled Due Date.

Primary Insurance Policy: With respect
to any Mortgage Loan, a primary policy of mortgage guaranty
insurance, if any, on such Mortgage Loan (including any Special
Primary Insurance Policy).

Principal Balance: Except as used in
Sections 2.08, 3.09 and 9.01 and except for purposes of the
definition of Repurchase Price, for any date of determination, the
principal balance of a Mortgage Loan remaining to be paid at the
close of business on the Cut‐Off Date, after application of
all scheduled principal payments due on or before the Cut‐Off
Date, whether or not received (or, in the case of a Substitute
Mortgage Loan, its principal balance on its date of substitution,
after deduction of all scheduled principal payments due on or
before such date, whether or not received), reduced by all amounts
distributed or to be distributed to, and any Realized Loss
allocated or to be allocated to, Certificateholders through such
date of determination that are reported as allocable to principal
of such Mortgage Loan.

For
purposes of the definition of Repurchase Price and as used in
Sections 2.08, 3.09 and 9.01, for any date of determination, the
principal balance of a Mortgage Loan remaining to be paid at the
close of business on the Cut-Off Date, after deduction of all
scheduled principal payments due on or before the Cut-Off Date,
whether or not received (or, in the case of a Substitute Mortgage
Loan, its principal balance on its date of substitution, after
deduction of all scheduled principal payments due on or before such
date, whether or not received), reduced by all amounts distributed
or to be distributed to Certificateholders (other than the price
paid by the Servicer in connection with a purchase by the Servicer
of the Mortgage Loans pursuant to Section 9.01) through the
Distribution Date in the month of determination that are reported
as allocable to principal of such Mortgage Loan.

Principal Payment: Any payment of
principal on a Mortgage Loan other than a Principal Prepayment.

Principal Payment Amount: For any
Distribution Date and for any Loan Group, the sum with respect to
the Mortgage Loans in such Loan Group of (i) the scheduled
principal payments (if any) on the Mortgage Loans due on the
related Due Date, (ii) the principal portion of Repurchase Proceeds
received during the Prior Period (other than any Repurchase
Proceeds included in Subsequent Recoveries for such Distribution
Date) and (iii) any other unscheduled payments of principal which
were received with respect to any Mortgage Loan during the Prior
Period, other than Payoffs, Curtailments, Liquidation Principal and
Subsequent Recoveries.

Principal Prepayment: Any payment of
principal on a Mortgage Loan which constitutes a Payoff or a
Curtailment.

Principal Prepayment Amount: For any
Distribution Date and for any Loan Group, the sum with respect to
the Mortgage Loans in such Loan Group of (i) Curtailments received
during the Prior Period from such Mortgage Loans and (ii) Payoffs
received during the Payoff Period from such Mortgage Loans.

Principal Transfer Amount:  For
any Distribution Date for each Undercollateralized Group, the
excess, if any, of (a) the aggregate Class Principal Balance of the
Class A Certificates related to such Loan Group over (b) the
aggregate Principal Balance of the Mortgage Loans in such Loan
Group, in each case immediately prior to such Distribution
Date.

Prior Period: With respect to any
Distribution Date, the calendar month immediately preceding such
Distribution Date.

Prospectus: The Prospectus, dated
January 11, 2007, and the Prospectus Supplement, dated January 22,
2007, of the Company.

Rate Ceiling:  The maximum per
annum Mortgage Interest Rate permitted under the related Mortgage
Note.

Rate Floor: The minimum per annum
Mortgage Interest Rate permitted under the related Mortgage
Note.

Rating Agency: Initially, each of
S&P and Fitch and thereafter, each nationally recognized
statistical rating organization that has rated the Certificates at
the request of the Company, or their respective successors in
interest.

Ratings: As of any date of
determination, the ratings, if any, of the Certificates as assigned
by the applicable Rating Agencies.

Reacquired Mortgage Loan: A Mortgage
Loan for which another Mortgage Loan is substituted pursuant to and
in accordance with the provisions of Section 2.08.

Realized Loss: For any Distribution
Date, with respect to any Mortgage Loan that became a Liquidated
Mortgage Loan during the related Prior Period, the sum of (A) the
excess, if any, of (i) accrued and unpaid interest on such Mortgage
Loan over (ii) the aggregate Insurance Proceeds and Liquidation
Proceeds received with respect to such Mortgage Loan (the interest
portion of such Realized Loss) and (B) the excess, if any, of (i)
the sum of (a) the Principal Balance of such Mortgage Loan
immediately before such Distribution Date and (b) the aggregate
amount of Monthly P&I Advances (other than advances of
delinquent interest) and any other advances made hereunder by the
Servicer with respect to such Mortgage Loan, to the extent not
previously reimbursed, over (ii) the aggregate Insurance Proceeds
and Liquidation Proceeds received with respect to such Mortgage
Loan (the amount in this clause (B)(ii) reduced by the amount in
clause (A)(i) above) (the principal portion of such Realized Loss);
provided, however, that for purposes of allocating
Realized Losses to the REMIC I, REMIC II, REMIC III and REMIC IV Regular Interests pursuant to this
definition of “Realized Loss,” the aggregate principal
portion of Realized Losses for any of Loan Group 1, Loan Group 2,
Loan Group 3, Loan Group 4 or Loan Group 5 for any Distribution
Date shall be reduced by the Cumulative Carry-Forward Subsequent
Recoveries Amount for such Distribution Date for such Loan Group.
For any Distribution Date, with respect to any Mortgage Loan that
is not a Liquidated Mortgage Loan, the amount of the Bankruptcy
Loss for such Mortgage Loan and such Distribution Date.

Realized Losses on Group 1 and Group 2 Loans
shall be allocated to the REMIC I Regular Interests as follows: (1)
the interest portion of Realized Losses on Group 1 Loans, if
any, shall be allocated between the Class Y-1 and Class Z-1 Regular
Interests pro rata according to the amount of interest accrued but
unpaid thereon, in reduction thereof; and (2) the interest portion
of Realized Losses on Group 2 Loans, if any, shall be
allocated between the Class Y-2 and Class Z-2 Regular Interests pro
rata according to the amount of interest accrued but unpaid
thereon, in reduction thereof.  Any interest portion of such
Realized Losses in excess of the amount allocated pursuant to the
preceding sentence shall be treated as a principal portion of
Realized Losses not attributable to any specific Mortgage Loan in
such Loan Group and allocated pursuant to the succeeding
sentences.  The remainder of the principal portion of Realized
Losses with respect to Loan Group 1 and Loan Group 2 shall be
allocated to the REMIC I Regular Interests as follows: (1) the
principal portion of Realized Losses on Group 1 Loans shall be
allocated, first, to the Class Y-1 Regular Interest to the extent
of the Class Y-1 Principal Reduction Amount in reduction of the
Class Principal Balance of such Regular Interest and, second, the
remainder, if any, of such principal portion of such Realized
Losses shall be allocated to the Class Z-1 Regular Interest in
reduction of the Class Principal Balance thereof; and (2) the
principal portion of Realized Losses on Group 2 Loans shall be
allocated, first, to the Class Y-2 Regular Interest to the extent
of the Class Y-2 Principal Reduction Amount in reduction of the
Class Principal Balance of such Regular Interest and, second, the
remainder, if any, of such principal portion of such Realized
Losses shall be allocated to the Class Z-2 Regular Interest in
reduction of the Class Principal Balance thereof.

Realized Losses on Group 1 and Group 2 Loans
shall be allocated among the REMIC IV Regular Interests (i) for
Realized Losses allocable to principal (a) first, to the Class
L-B-6 Certificates, until the Class L-B-6 Principal Balance has
been reduced to zero, (b) second, to the Class L-B-5 Certificates,
until the Class L-B-5 Principal Balance has been reduced to zero,
(c) third, to the Class L-B-4 Certificates, until the Class L-B-4
Principal Balance has been reduced to zero, (d) fourth, to the
Class L-B-3 Certificates, until the Class L-B-3 Principal Balance
has been reduced to zero, (e) fifth, to the Class L-B-2
Certificates, until the Class L-B-2 Principal Balance has been
reduced to zero, (f) sixth, to the Class L-B-1 Certificates, until
the Class L-B-1 Principal Balance has been reduced to zero, and (g)
seventh, (x) in the case of Realized Losses on Group 1 Loans, (A)
first, to the Class 1-A2 Certificates, in reduction of their Class
Principal Balance, and (B) second, to the Class 1-A1 Certificates,
in reduction of their Class Principal Balance, and (y) in the case
of Realized Losses on Group 2 Loans, (A) first, to the Class 2-A4
Certificates, in reduction of their Class Principal Balance, and
(B) second, to the Class 2-A1, Class 2-A2A, Class 2-A2B and Class
2-A3 Certificates, pro rata, in reduction of their Class Principal
Balances; and (ii) for Realized Losses allocable to interest (a)
first, to the Class L-B-6 Certificates, in reduction of accrued but
unpaid interest thereon and then in reduction of the Class L-B-6
Principal Balance, (b) second, to the Class L-B-5 Certificates, in
reduction of accrued but unpaid interest thereon and then in
reduction of the Class L-B-5 Principal Balance, (c) third, to the
Class L-B-4 Certificates, in reduction of accrued but unpaid
interest thereon and then in reduction of the Class L-B-4 Principal
Balance, (d) fourth, to the Class L-B-3 Certificates, in reduction
of accrued but unpaid interest thereon and then in reduction of the
Class L-B-3 Principal Balance, (e) fifth, to the Class L-B-2
Certificates, in reduction of accrued but unpaid interest thereon
and then in reduction of the Class L-B-2 Principal Balance, (f)
sixth, to the Class L-B-1 Certificates, in reduction of accrued but
unpaid interest thereon and then in reduction of the Class L-B-1
Principal Balance, and (g) seventh, (x) with respect to Realized
Losses on Group 1 Loans, (A) first, to the Class 1-A2 Certificates,
in reduction of accrued but unpaid interest thereon and then in
reduction of their Class Principal Balance, and (B) second, to the
Class 1-A1 Certificates, in reduction of accrued but unpaid
interest thereon and then in reduction of their Class Principal
Balance, and (y) with respect to Realized Losses on Group 2 Loans,
(A) first, to the Class 2-A4 Certificates, in reduction of accrued
but unpaid interest thereon and then in reduction of their Class
Principal Balance, and (B) second, to the Class 2-A1, Class 2-A2A,
Class 2-A2B and Class 2-A3 Certificates, pro rata, in reduction of
accrued but unpaid interest thereon and then in reduction of their
Class Principal Balances; provided, however, that until the
Class 2-A2B Principal Balance has been reduced to zero, all
Realized Losses allocable to principal that would otherwise be
allocated to the Class 2-A2A Certificates pursuant to clause (i) of
this paragraph shall instead be allocated to the Class 2-A2B
Certificates, in reduction of the Class 2-A2B Principal Balance,
and all Realized Losses allocable to interest that would otherwise
be allocated to the Class 2-A2A Certificates pursuant to clause
(ii) of this paragraph shall instead be allocated to the Class
2-A2B Certificates, in reduction of accrued but unpaid interest
thereon, and then in reduction of the Class 2-A2B Principal
Balance.

Realized Losses on Group 3 Loans shall be
allocated among the REMIC II Regular Interests (i) for Realized
Losses allocable to principal (a) first, to the Class 3-B-6
Certificates, until the Class 3-B-6 Principal Balance has been
reduced to zero, (b) second, to the Class 3-B-5 Certificates, until
the Class 3-B-5 Principal Balance has been reduced to zero, (c)
third, to the Class 3-B-4 Certificates, until the Class 3-B-4
Principal Balance has been reduced to zero, (d) fourth, to the
Class 3-B-3 Certificates, until the Class 3-B-3 Principal Balance
has been reduced to zero, (e) fifth, to the Class 3-B-2
Certificates, until the Class 3-B-2 Principal Balance has been
reduced to zero, (f) sixth, to the Class 3-B-1 Certificates, until
the Class 3-B-1 Principal Balance has been reduced to zero, and (g)
seventh, (A) first, to the Class 3-A4 Certificates, in reduction of
their Class Principal Balance, and (B) second, to the Class 3-A1,
Class 3-A2 and Class 3-A3 Certificates, pro rata, in reduction of
their Class Principal Balances; and (ii) for Realized Losses
allocable to interest (a) first, to the Class 3-B-6 Certificates,
in reduction of accrued but unpaid interest thereon and then in
reduction of the Class 3-B-6 Principal Balance, (b) second, to the
Class 3-B-5 Certificates, in reduction of accrued but unpaid
interest thereon and then in reduction of the Class 3-B-5 Principal
Balance, (c) third, to the Class 3-B-4 Certificates, in reduction
of accrued but unpaid interest thereon and then in reduction of the
Class 3-B-4 Principal Balance, (d) fourth, to the Class 3-B-3
Certificates, in reduction of accrued but unpaid interest thereon
and then in reduction of the Class 3-B-3 Principal Balance, (e)
fifth, to the Class 3-B-2 Certificates, in reduction of accrued but
unpaid interest thereon and then in reduction of the Class 3-B-2
Principal Balance, (f) sixth, to the Class 3-B-1 Certificates, in
reduction of accrued but unpaid interest thereon and then in
reduction of the Class 3-B-1 Principal Balance, and (g) seventh,
(A) first, to the Class 3-A4 Certificates, in reduction of accrued
but unpaid interest thereon and then in reduction of their Class
Principal Balance, and (B) second, to the Class 3-A1, Class 3-A2
and Class 3-A3 Certificates, pro rata, in reduction of accrued but
unpaid interest thereon and then in reduction of their Class
Principal Balances.

Realized Losses on Group 4 and Group 5 Loans
shall be allocated among the REMIC IV Regular Interests (i) for
Realized Losses allocable to principal (a) first, to the Class
M-B-6 Certificates, until the Class M-B-6 Principal Balance has
been reduced to zero, (b) second, to the Class M-B-5 Certificates,
until the Class M-B-5 Principal Balance has been reduced to zero,
(c) third, to the Class M-B-4 Certificates, until the Class M-B-4
Principal Balance has been reduced to zero, (d) fourth, to the
Class M-B-3 Certificates, until the Class M-B-3 Principal Balance
has been reduced to zero, (e) fifth, to the Class M-B-2
Certificates, until the Class M-B-2 Principal Balance has been
reduced to zero, (f) sixth, to the Class M-B-1 Certificates, until
the Class M-B-1 Principal Balance has been reduced to zero, and (g)
seventh, (x) in the case of Realized Losses on Group 4 Loans, (A)
first, to the Class 4-A2 Certificates, in reduction of their Class
Principal Balance, and (B) second, to the Class 4-A1 Certificates,
in reduction of their Class Principal Balance, and (y) in the case
of Realized Losses on Group 5 Loans, (A) first, to the Class 5-A2
Certificates, in reduction of their Class Principal Balance, and
(B) second, to the Class 5-A1 Certificates, in reduction of their
Class Principal Balance; and (ii) for Realized Losses allocable to
interest (a) first, to the Class M-B-6 Certificates, in reduction
of accrued but unpaid interest thereon and then in reduction of the
Class M-B-6 Principal Balance, (b) second, to the Class M-B-5
Certificates, in reduction of accrued but unpaid interest thereon
and then in reduction of the Class M-B-5 Principal Balance, (c)
third, to the Class M-B-4 Certificates, in reduction of accrued but
unpaid interest thereon and then in reduction of the Class M-B-4
Principal Balance, (d) fourth, to the Class M-B-3 Certificates, in
reduction of accrued but unpaid interest thereon and then in
reduction of the Class M-B-3 Principal Balance, (e) fifth, to the
Class M-B-2 Certificates, in reduction of accrued but unpaid
interest thereon and then in reduction of the Class M-B-2 Principal
Balance, (f) sixth, to the Class M-B-1 Certificates, in reduction
of accrued but unpaid interest thereon and then in reduction of the
Class M-B-1 Principal Balance, and (g) seventh, (x) with respect to
Realized Losses on Group 4 Loans, (A) first, to the Class 4-A2
Certificates, in reduction of accrued but unpaid interest thereon
and then in reduction of their Class Principal Balance, and (B)
second, to the Class 4-A1 Certificates, in reduction of accrued but
unpaid interest thereon and then in reduction of their Class
Principal Balance, and (y) with respect to Realized Losses on Group
5 Loans, (A) first, to the Class 4-A2 Certificates, in reduction of
accrued but unpaid interest thereon and then in reduction of their
Class Principal Balance, and (B) second, to the Class 4-A1
Certificates, in reduction of accrued but unpaid interest thereon
and then in reduction of their Class Principal Balance.

On
each Distribution Date, after giving effect to the principal
distributions and allocations of Realized Losses as provided in
this Agreement (without regard to this paragraph), if the aggregate
Class Principal Balance of all outstanding Classes of REMIC IV
Regular Interests related to Loan Group 1 or Loan Group 2 (plus any
Cumulative Carry-Forward Subsequent Recoveries Amount for Loan
Group 1 or Loan Group 2 for such Distribution Date) exceeds the
aggregate principal balance of the Group 1 and Group 2 Loans
remaining to be paid at the close of business on the Cut-Off Date,
after deduction of (i) all principal payments due on or before the
Cut-Off Date in respect of each such Mortgage Loan whether or not
paid, and (ii) all amounts of principal in respect of each such
Mortgage Loan that have been received or advanced and included in
the REMIC IV Available Distribution Amount and all Realized Losses
in respect of each such Mortgage Loan that have been allocated to
the REMIC IV Regular Interests on such Distribution Date or prior
Distribution Dates, then such excess will be deemed a Realized Loss
allocable to principal and will be allocated to the most junior
Class of Group L-B Certificates, in reduction of the Class
Principal Balance thereof.

On
each Distribution Date, after giving effect to the principal
distributions and allocations of Realized Losses as provided in
this Agreement (without regard to this paragraph), if the aggregate
Class Principal Balance of all outstanding Classes of REMIC II
Regular Interests (plus any Cumulative Carry-Forward Subsequent
Recoveries Amount for Loan Group 3 for such Distribution Date)
exceeds the aggregate principal balance of the Group 3 Loans
remaining to be paid at the close of business on the Cut-Off Date,
after deduction of (i) all principal payments due on or before the
Cut-Off Date in respect of each such Mortgage Loan whether or not
paid, and (ii) all amounts of principal in respect of each such
Mortgage Loan that have been received or advanced and included in
the REMIC II Available Distribution Amount and all Realized Losses
in respect of each such Mortgage Loan that have been allocated to
the REMIC II Regular Interests on such Distribution Date or prior
Distribution Dates, then such excess will be deemed a Realized Loss
allocable to principal and will be allocated to the most junior
Class of Group 3-B Certificates, in reduction of the Class
Principal Balance thereof.

On
each Distribution Date, after giving effect to the principal
distributions and allocations of Realized Losses as provided in
this Agreement (without regard to this paragraph), if the aggregate
Class Principal Balance of all outstanding Classes of REMIC IV
Regular Interests related to Loan Group 4 or Loan Group 5 (plus any
Cumulative Carry-Forward Subsequent Recoveries Amount for Loan
Group 4 or Loan Group 5 for such Distribution Date) exceeds the
aggregate principal balance of the Group 4 and Group 5 Loans
remaining to be paid at the close of business on the Cut-Off Date,
after deduction of (i) all principal payments due on or before the
Cut-Off Date in respect of each such Mortgage Loan whether or not
paid, and (ii) all amounts of principal in respect of each such
Mortgage Loan that have been received or advanced and included in
the REMIC IV Available Distribution Amount and all Realized Losses
in respect of each such Mortgage Loan that have been allocated to
the REMIC IV Regular Interests on such Distribution Date or prior
Distribution Dates, then such excess will be deemed a Realized Loss
allocable to principal and will be allocated to the most junior
Class of Group M-B Certificates, in reduction of the Class
Principal Balance thereof.

Recognition Agreement: With respect to
a Cooperative Loan, the recognition agreement between the
Cooperative and the originator of such Cooperative Loan.

Record Date: The last Business Day of
the month immediately preceding the month of the related
Distribution Date.

Recording Documents: With respect to
each Mortgage Loan, the original recorded Mortgage relating to such
Mortgage Loan and any intervening assignment thereof required to be
included in the Mortgage File with evidence of recording thereon
(or a copy of such original Mortgage or intervening assignment
certified by the applicable recording office) (which may be in
electronic form).

Regular Interests: (i) With respect to
(i) REMIC I, the REMIC I Regular Interests, (ii) with respect to
REMIC II, the REMIC II Regular Interests, (iii) with respect to
REMIC III, the REMIC III Regular Interests and (iv) with respect to
REMIC IV, the REMIC IV Regular Interests.

Regulation AB: Subpart 229.1100
– Asset Backed Securities (Regulation AB), 17 C.F.R.
§§229.1100-229.1123, as such may be amended from time to
time.

Relief Act Shortfall: For any
Distribution Date and any Loan Group, for any Mortgage Loan in such
Loan Group with respect to which the Servicemembers Civil Relief
Act, as amended, formerly known as the Soldiers’ and
Sailors’ Civil Relief Act of 1940, or any comparable state
legislation (collectively, the “Relief Act”),
limits the amount of interest payable by the related Mortgagor, an
amount equal to one month’s interest on such Mortgage Loan at
an annual interest rate equal to the excess, if any, of (i) the
annual interest rate otherwise payable by the Mortgagor on the
related Due Date under the terms of the related Mortgage Note over
(ii) the annual interest rate payable by the Mortgagor on the
related Due Date by application of the Relief Act.

REMIC: A real estate mortgage
investment conduit, as such term is defined in the Code.

REMIC Provisions: Sections 860A
through 860G of the Code, and the related Code provisions and
regulations promulgated thereunder, as the foregoing may be in
effect from time to time.

REMIC I: The segregated pool of assets
of the Trust consisting of the REMIC I Assets.

REMIC I Assets: The Group 1 Loans, the
Group 2 Loans and all other Mortgage Pool Assets to the extent
related to the Group 1 Loans or the Group 2 Loans.

REMIC I Available Distribution
Amount:  For each of Loan Group 1 and Loan Group 2
and any Distribution Date, the sum of the following amounts with
respect to the Mortgage Loans in such Loan Group:

(1)        the
total amount of all cash received by or on behalf of the Servicer
with respect to the Mortgage Loans by the Determination Date for
such Distribution Date and not previously distributed, including
Liquidation Proceeds, Insurance Proceeds and scheduled amounts of
distributions from Buydown Funds respecting Buydown Loans, if any,
except:

(a)        all
scheduled payments of principal and interest collected but due
subsequent to such Distribution Date;

(b)        all
Curtailments received after the Prior Period;

(c)        all
Payoffs received after the Payoff Period immediately preceding such
Distribution Date (together with any interest payment received with
such Payoffs to the extent that it represents the payment of
interest accrued on the Mortgage Loans for the period subsequent to
the Prior Period), and interest which was accrued and received on
Payoffs received during the period from the 1st to the 14th day of
the month of such Distribution Date, which interest shall not be
included in the calculation of the REMIC I Available Distribution
Amount for any Distribution Date;

(d)       
Insurance Proceeds, Liquidation Proceeds and Subsequent Recoveries
received on such Mortgage Loans after the Prior Period;

(e)        all
amounts payable to the Servicer in reimbursement for advances made
by the Servicer pursuant to this Agreement;

(f)        
the Servicing Fee for each such Mortgage Loan, and any Special
Primary Insurance Premium payable on such Distribution Date with
respect to such Mortgage Loan;

(g)        all
prepayment penalties, late charges, nonsufficient funds fees and
other fees and charges collected with respect to such Mortgage
Loans; and

(h)       
Excess Liquidation Proceeds;

(2)        the
sum, to the extent not previously distributed, of the following
amounts, to the extent advanced or received, as applicable, by the
Servicer:

(a)        any
Monthly P&I Advance with respect to such Distribution Date
relating to such Mortgage Loans; and

(b)       
Compensating Interest for such Distribution Date; and

(3)       
Repurchase Proceeds received during the Prior Period.

REMIC I Distribution Amount:  For
any Distribution Date, the REMIC I Available Distribution Amount
for such Distribution Date shall be distributed to the REMIC I
Regular Interests and the Class R-1 Residual Interest in the
following amounts and priority, to the extent of the REMIC I
Available Distribution Amount for such Distribution Date:

(a)        To
the extent of the REMIC I Available Distribution Amount for Loan
Group 1 (reduced by the amount of any Subsequent Recoveries for
such Distribution Date for such Loan Group):

           
(i)         first, to the
Class Y-1 and Class Z-1 Regular Interests and the Class R‐1
Residual Interest, concurrently, the sum of the Interest
Distribution Amounts for such Classes remaining unpaid from
previous Distribution Dates, pro rata according to their respective
shares of such unpaid amounts;

           
(ii)        second, to the Class
Y-1 and Class Z-1 Regular Interests and the Class R‐1
Residual Interest, concurrently, the sum of the Interest
Distribution Amounts for such Classes for the current Distribution
Date, pro rata according to their respective Interest Distribution
Amounts;

           
(iii)       third, to the Class R-1
Residual Interest, as principal, until the Class Principal Balance
thereof has been reduced to zero; and

           
(iv)       fourth, to the Class Y-1
and Class Z-1 Regular Interests, the Class Y-1 Principal
Distribution Amount and the Class Z-1 Principal Distribution
Amount, respectively.

(b)        To
the extent of the REMIC I Available Distribution Amount for Loan
Group 2 (reduced by the amount of any Subsequent Recoveries for
such Distribution Date for such Loan Group):

(i)        
first, to the Class Y-2 and Class Z-2 Regular Interests,
concurrently, the sum of the Interest Distribution Amounts for the
such Classes remaining unpaid from previous Distribution Dates, pro
rata according to their respective shares of such unpaid
amounts;

(ii)       
second, to the Class Y-2 and Class Z-2 Regular Interests,
concurrently, the sum of the Interest Distribution Amounts for such
Classes for the current Distribution Date, pro rata according to
their respective Interest Distribution Amounts; and

(iii)       third,
to the Class Y-2 and Class Z-2 Regular Interests, the Class Y-2
Principal Distribution Amount and the Class Z-2 Principal
Distribution Amount, respectively.

(c)        To
the extent of the REMIC I Available Distribution Amounts for Loan
Group 1 and Loan Group 2 for such Distribution Date remaining after
payment of the amounts pursuant to paragraphs (a) and (b) of this
definition of “REMIC I Distribution Amount”:

(i)        
first, to each Class of the REMIC I Regular Interests, up to the
amount of unreimbursed Realized Losses allocable to principal
previously allocated to each such Class, pro rata according such
amount; provided, however, that any amounts distributed
pursuant to this paragraph (c)(i) of this definition of
“REMIC I Distribution Amount” shall not cause a further
reduction in the Class Principal Balances of any of the REMIC I
Regular Interests; and

(ii)       
second, to the Class R-1 Residual Interest, the Residual
Distribution Amount for the Class R-1 Residual Interest for such
Distribution Date.

REMIC I Regular Interests: The Classes
of undivided beneficial interests in REMIC I designated as
“regular interests” in the table titled “REMIC I
Interests” in the Preliminary Statement hereto.

REMIC II: The segregated pool of
assets of the Trust consisting of the REMIC II Assets.

REMIC II Assets: The Group 3 Loans and
all other Mortgage Pool Assets to the extent related to the Group 3
Loans.

REMIC II Available Distribution
Amount:  For any Distribution Date, the sum of the
following amounts with respect to the Mortgage Loans in Loan Group
3:

(1)        the
total amount of all cash received by or on behalf of the Servicer
with respect to the Mortgage Loans by the Determination Date for
such Distribution Date and not previously distributed, including
Liquidation Proceeds, Insurance Proceeds and scheduled amounts of
distributions from Buydown Funds respecting Buydown Loans, if any,
except:

(a)        all
scheduled payments of principal and interest collected but due
subsequent to such Distribution Date;

(b)        all
Curtailments received after the Prior Period;

(c)        all
Payoffs received after the Payoff Period immediately preceding such
Distribution Date (together with any interest payment received with
such Payoffs to the extent that it represents the payment of
interest accrued on the Mortgage Loans for the period subsequent to
the Prior Period), and interest which was accrued and received on
Payoffs received during the period from the 1st to the 14th day of
the month of such Distribution Date, which interest shall not be
included in the calculation of the REMIC II Available Distribution
Amount for any Distribution Date;

(d)       
Insurance Proceeds, Liquidation Proceeds and Subsequent Recoveries
received on such Mortgage Loans after the Prior Period;

(e)        all
amounts payable to the Servicer in reimbursement for advances made
by the Servicer pursuant to this Agreement;

(f)        
the Servicing Fee for each such Mortgage Loan, and any Special
Primary Insurance Premium payable on such Distribution Date with
respect to such Mortgage Loan;

(g)        all
prepayment penalties, late charges, nonsufficient funds fees and
other fees and charges collected with respect to such Mortgage
Loans; and

(h)       
Excess Liquidation Proceeds;

(2)        the
sum, to the extent not previously distributed, of the following
amounts, to the extent advanced or received, as applicable, by the
Servicer:

(a)        any
Monthly P&I Advance with respect to such Distribution Date
relating to such Mortgage Loans; and

(b)       
Compensating Interest for such Distribution Date; and

(3)       
Repurchase Proceeds received during the Prior Period.

REMIC II Distribution Amount: 
(I) For any Distribution Date prior to the Group 3 Credit Support
Depletion Date, the REMIC II Available Distribution Amount for such
Distribution Date shall be distributed to the Group 3 Certificates
and the Class R-2 Residual Interest in the following amounts and
priority, to the extent of the REMIC II Available Distribution
Amount for such Distribution Date:

(i)        
first, to the Group 3-A Certificates, concurrently, the
sum of the Interest Distribution Amounts for such Classes remaining
unpaid from previous Distribution Dates, pro rata according to
their respective shares of such unpaid amounts;

(ii)       
second, to the Group 3-A Certificates, concurrently, the
sum of the Interest Distribution Amounts for such Classes for the
current Distribution Date, pro rata according to their respective
Interest Distribution Amounts;

(iii)       third,
to the Group 3-A Certificates, as principal, the Group 3
Senior Principal Distribution Amount, concurrently, pro rata
according to Class Principal Balance (or, with respect to clause
(a) of this paragraph, aggregate Class Principal Balance) of the
Classes described in each of clause (a) and (b) below, as
follows:

(a)        to
the Class 3-A1, Class 3-A2 and Class 3-A3 Certificates,
sequentially, as follows;

(1)       
first, to the Class 3-A1 Certificates, until the Class 3-A1
Principal Balance has been reduced to zero;

(2)       
second, to the Class 3-A2 Certificates, until the Class 3-A2
Principal Balance has been reduced to zero; and

(3)       
third, to the Class 3-A3 Certificates, until the Class 3-A3
Principal Balance has been reduced to zero; and

(b)        to
the Class 3-A4 Certificates, until the Class 3-A4 Principal Balance
has been reduced to zero;

(iv)
      fourth, to the Class 3-B-1
Certificates, the Interest Distribution Amount for such
Class remaining unpaid from previous Distribution Dates;

(v)       
fifth, to the Class 3-B-1 Certificates, the Interest Distribution
Amount for such Class for the current Distribution
Date;

(vi)       sixth,
to the Class 3-B-1 Certificates, the portion of the Group 3
Subordinate Principal Distribution Amount allocable to such Class
pursuant to the definition of “Group 3 Subordinate Principal
Distribution Amount,” until the Class 3-B-1 Principal Balance
has been reduced to zero;

(vii)      seventh, to
the Class 3-B-2 Certificates, the Interest Distribution Amount for
such Class remaining unpaid from previous Distribution
Dates;

(viii)      eighth, to
the Class 3-B-2 Certificates, the Interest Distribution Amount for
such Class for the current Distribution Date;

(ix)       ninth,
to the Class 3-B-2 Certificates, the portion of the Group 3
Subordinate Principal Distribution Amount allocable to such Class
pursuant to the definition of “Group 3 Subordinate Principal
Distribution Amount,” until the Class 3-B-2 Principal Balance
has been reduced to zero;

(x)       
tenth, to the Class 3-B-3 Certificates, the Interest Distribution
Amount for such Class remaining unpaid from previous Distribution
Dates;

(xi)      
eleventh, to the Class 3-B-3 Certificates, the Interest
Distribution Amount for such Class for the current Distribution
Date;

(xii)     
twelfth, to the Class 3-B-3 Certificates, the portion of
the Group 3 Subordinate Principal Distribution Amount allocable to
such Class pursuant to the definition of “Group 3 Subordinate
Principal Distribution Amount,” until the Class 3-B-3
Principal Balance has been reduced to zero;

(xiii)     
thirteenth, to the Class 3-B-4 Certificates, the
Interest Distribution Amount for such Class remaining unpaid from
previous Distribution Dates;

(xiv)     fourteenth, to the
Class 3-B-4 Certificates, the Interest Distribution Amount for such
Class for the current Distribution Date;

(xv)      fifteenth, to
the Class 3-B-4 Certificates, the portion of the Group 3
Subordinate Principal Distribution Amount allocable to such Class
pursuant to the definition of “Group 3 Subordinate
Principal Distribution Amount,” until the Class 3-B-4
Principal Balance has been reduced to zero;

(xvi)     sixteenth, to the
Class 3-B-5 Certificates, the Interest Distribution Amount for such
Class remaining unpaid from previous Distribution
Dates;

(xvii)     seventeenth, to
the Class 3-B-5 Certificates, the Interest Distribution Amount for
such Class for the current Distribution Date;

(xviii)    eighteenth, to the
Class 3-B-5 Certificates, the portion of the Group 3 Subordinate
Principal Distribution Amount allocable to such Class pursuant to
the definition of “Group 3 Subordinate Principal
Distribution Amount,” until the Class 3-B-5 Principal Balance
has been reduced to zero;

(xix)     nineteenth, to the
Class 3-B-6 Certificates, the Interest Distribution Amount for such
Class remaining unpaid from previous Distribution
Dates;

(xx)      twentieth, to
the Class 3-B-6 Certificates, the Interest Distribution Amount for
such Class for the current Distribution Date;

(xxi)     twenty-first, to
the Class 3-B-6 Certificates, the portion of the Group 3
Subordinate Principal Distribution Amount allocable to such Class
pursuant to the definition of “Group 3 Subordinate
Principal Distribution Amount,” until the Class 3-B-6
Principal Balance has been reduced to zero;

(xxii)     twenty-second, to
the Classes of Group 3-B Regular Interests in the order of
seniority (which, from highest to lowest, shall be as follows:
Class 3-B-1, Class 3-B-2, Class 3-B-3, Class 3-B-4, Class 3-B-5 and
Class 3-B-6) the remaining portion, if any, of the REMIC II
Available Distribution Amount, up to the amount of unreimbursed
Realized Losses allocable to principal previously allocated or to
be allocated on such Distribution Date to such Class, if any;
provided, however, that any amounts distributed pursuant to
this paragraph (I)(xxii) of this definition of “REMIC II
Distribution Amount” shall not cause a reduction in the Class
Principal Balances of any of the Classes of Group 3-B Certificates;
and

(xxiii)    twenty-third, to the
Class R-2 Residual Interest, the Residual Distribution Amount for
the Class R-2 Residual Interest for such Distribution
Date.

(II)       For any
Distribution Date on or after the Group 3 Credit Support
Depletion Date, the REMIC II Available Distribution Amount for such
Distribution Date shall be distributed to the outstanding Classes
of Group 3 Certificates and the Class R-2 Residual Interest in the
following amounts and priority, to the extent of the REMIC II
Available Distribution Amount for such Distribution Date:

(i)        
first, to the Group 3-A Certificates, the amount payable
to each such Class on prior Distribution Dates pursuant to clause
(I)(ii) or (II)(ii) of this definition of “REMIC II
Distribution Amount,” and remaining unpaid, pro rata
according to such amount payable to the extent of amounts
available;

(ii)       
second, to the Group 3-A Certificates, concurrently, the
sum of the Interest Distribution Amounts for such Classes for the
current Distribution Date, pro rata according to their respective
Interest Distribution Amounts;

(iii)       third,
to the Group 3-A Certificates, as principal, the Group 3
Senior Principal Distribution Amount, pro rata according to Class
Principal Balance, until such Class Principal Balances have each
been reduced to zero;

(iv)       fourth,
to the Group 3-A and Group 3-B Certificates, in the
order of seniority (which, from highest to lowest, shall be as
follows: the Group 3-A Certificates of equal seniority, and then
Class 3-B-1, Class 3-B-2, Class 3-B-3, Class 3-B-4, Class 3-B-5 and
Class 3-B-6 of decreasing seniority) the remaining portion, if any,
of the REMIC II Available Distribution Amount, up to the amount of
unreimbursed Realized Losses allocable to principal previously
allocated or to be allocated on such Distribution Date to such
Class, if any; provided, however, that in the case of
Classes of equal seniority, the amount distributable to such
Classes shall be allocated among such Classes according to the
amount of losses allocated thereto; provided, further, that
any amounts distributed pursuant to this paragraph (II)(iv) of this
definition of “REMIC II Distribution Amount” shall not
cause a reduction in the Class Principal Balances of any of the
Classes of Group 3-A and Group 3-B Certificates; and

(v)       
fifth, Class R-2 Residual Interest, the Residual Distribution
Amount for the Class R-2 Residual Interest for such Distribution
Date.

REMIC II Regular Interests: The
Classes of undivided beneficial interests in REMIC II designated as
“regular interests” in the table titled “REMIC II
Interests” in the Preliminary Statement hereto.

REMIC III: The segregated pool of
assets of the Trust consisting of the REMIC III Assets.

REMIC III Assets: The Group 4 Loans,
the Group 5 Loans and all other Mortgage Pool Assets to the extent
related to the Group 4 Loans or the Group 5 Loans.

REMIC III Available Distribution
Amount:  For each of Loan Group 4 and Loan Group 5
and any Distribution Date, the sum of the following amounts with
respect to the Mortgage Loans in such Loan Group:

(1)        the
total amount of all cash received by or on behalf of the Servicer
with respect to the Mortgage Loans by the Determination Date for
such Distribution Date and not previously distributed, including
Liquidation Proceeds, Insurance Proceeds and scheduled amounts of
distributions from Buydown Funds respecting Buydown Loans, if any,
except:

(a)        all
scheduled payments of principal and interest collected but due
subsequent to such Distribution Date;

(b)        all
Curtailments received after the Prior Period;

(c)        all
Payoffs received after the Payoff Period immediately preceding such
Distribution Date (together with any interest payment received with
such Payoffs to the extent that it represents the payment of
interest accrued on the Mortgage Loans for the period subsequent to
the Prior Period), and interest which was accrued and received on
Payoffs received during the period from the 1st to the 14th day of
the month of such Distribution Date, which interest shall not be
included in the calculation of the REMIC III Available Distribution
Amount for any Distribution Date;

(d)       
Insurance Proceeds, Liquidation Proceeds and Subsequent Recoveries
received on such Mortgage Loans after the Prior Period;

(e)        all
amounts payable to the Servicer in reimbursement for advances made
by the Servicer pursuant to this Agreement;

(f)        
the Servicing Fee for each such Mortgage Loan, and any Special
Primary Insurance Premium payable on such Distribution Date with
respect to such Mortgage Loan;

(g)        all
prepayment penalties, late charges, nonsufficient funds fees and
other fees and charges collected with respect to such Mortgage
Loans; and

(h)       
Excess Liquidation Proceeds;

(2)        the
sum, to the extent not previously distributed, of the following
amounts, to the extent advanced or received, as applicable, by the
Servicer:

(a)        any
Monthly P&I Advance with respect to such Distribution Date
relating to such Mortgage Loans; and

(b)       
Compensating Interest for such Distribution Date; and

(3)       
Repurchase Proceeds received during the Prior Period.

REMIC III Distribution Amount: 
For any Distribution Date, the REMIC III Available Distribution
Amount for such Distribution Date shall be distributed to the REMIC
III Regular Interests and the Class R-3 Residual Interest in the
following amounts and priority, to the extent of the REMIC III
Available Distribution Amount for such Distribution Date:

(a)        To
the extent of the REMIC III Available Distribution Amount for Loan
Group 4 (reduced by the amount of any Subsequent Recoveries for
such Distribution Date for such Loan Group):

           
(i)         first, to the
Class Y-4 and Class Z-4 Regular Interests, concurrently, the sum of
the Interest Distribution Amounts for such Classes remaining unpaid
from previous Distribution Dates, pro rata according to their
respective shares of such unpaid amounts;

           
(ii)        second, to the Class
Y-4 and Class Z-4 Regular Interests, concurrently, the sum of the
Interest Distribution Amounts for such Classes for the current
Distribution Date, pro rata according to their respective Interest
Distribution Amounts; and

           
(iii)       third, to the Class Y-4
and Class Z-4 Regular Interests, the Class Y-4 Principal
Distribution Amount and the Class Z-4 Principal Distribution
Amount, respectively.

(b)        To
the extent of the REMIC III Available Distribution Amount for Loan
Group 5 (reduced by the amount of any Subsequent Recoveries for
such Distribution Date for such Loan Group):

(i)        
first, to the Class Y-5 and Class Z-5 Regular Interests,
concurrently, the sum of the Interest Distribution Amounts for the
such Classes remaining unpaid from previous Distribution Dates, pro
rata according to their respective shares of such unpaid
amounts;

(ii)       
second, to the Class Y-5 and Class Z-5 Regular Interests,
concurrently, the sum of the Interest Distribution Amounts for such
Classes for the current Distribution Date, pro rata according to
their respective Interest Distribution Amounts; and

(iii)       third,
to the Class Y-5 and Class Z-5 Regular Interests, the Class Y-5
Principal Distribution Amount and the Class Z-5 Principal
Distribution Amount, respectively.

(c)        To
the extent of the REMIC III Available Distribution Amounts for Loan
Group 4 and Loan Group 5 for such Distribution Date remaining after
payment of the amounts pursuant to paragraphs (a) and (b) of this
definition of “REMIC III Distribution
Amount”:

(i)        
first, to each Class of the REMIC III Regular Interests, up to the
amount of unreimbursed Realized Losses allocable to principal
previously allocated to each such Class, pro rata according such
amount; provided, however, that any amounts distributed
pursuant to this paragraph (c)(i) of this definition of
“REMIC III Distribution Amount” shall not cause a
further reduction in the Class Principal Balances of any of the
REMIC III Regular Interests; and

(ii)       
second, to the Class R-3 Residual Interest, the Residual
Distribution Amount for the Class R-3 Residual Interest for such
Distribution Date.

REMIC III Regular Interests: The
Classes of undivided beneficial interests in REMIC III designated
as “regular interests” in the table titled “REMIC
III Interests” in the Preliminary Statement hereto.

REMIC IV:  The segregated pool of
assets of the Trust consisting of the REMIC IV Assets.

REMIC IV Assets:  The REMIC I and
REMIC III Regular Interests.

REMIC IV Available Distribution
Amount:  For Loan Group 1, on any Distribution
Date, the aggregate of all distributions to the Class Y-1 and Class
Z-1 Regular Interests. For Loan Group 2, on any Distribution Date,
the aggregate of all distributions to the Class Y-2 and Class Z-2
Regular Interests. For Loan Group 4, on any Distribution Date, the
aggregate of all distributions to the Class Y-4 and Class Z-4
Regular Interests.  For Loan Group 5, on any Distribution
Date, the aggregate of all distributions to the Class Y-5 and Class
Z-5 Regular Interests.

REMIC IV Distribution Amount: 
(I) For any Distribution Date prior to the Groups 1-2 Credit
Support Depletion Date, the REMIC III Available Distribution Amount
for Loan Group 1 and Loan Group 2 for such Distribution Date shall
be distributed to the REMIC IV Regular Interests and the Class R-4
Residual Interest in the following amounts and priority, to the
extent of the REMIC IV Available Distribution Amount for the
applicable Loan Group for such Distribution Date:

(A)       With
respect to the Group 1 Certificates, on any Distribution
Date prior to the Groups 1-2 Credit Support Depletion Date, to the
extent of the REMIC IV Available Distribution Amount for Loan Group
1 for such Distribution Date:

(i)        
first, to the Group 1-A Certificates, concurrently, the
sum of the Interest Distribution Amounts for such Classes remaining
unpaid from previous Distribution Dates, pro rata according to
their respective shares of such unpaid amounts;

(ii)       
second, to the Group 1-A Certificates, concurrently, the
sum of the Interest Distribution Amounts for such Classes for the
current Distribution Date, pro rata according to their respective
Interest Distribution Amounts; and

(iii)       third,
to the Group 1-A Certificates, pro rata according to
Class Principal Balance, as principal, the Group 1 Senior Principal
Distribution Amount (reduced by $100 for the first Distribution
Date), until the aggregate Class Principal Balance of the Group 1-A
Certificates has been reduced to zero:

(B)       With
respect to the Group 2 Certificates, on any Distribution
Date prior to the Groups 1-2 Credit Support Depletion Date, to the
extent of the REMIC IV Available Distribution Amount for Loan Group
2 for such Distribution Date:

(i)        
first, to the Group 2-A Certificates, concurrently, the sum of the
Interest Distribution Amounts for such Classes remaining unpaid
from previous Distribution Dates, pro rata according to their
respective shares of such unpaid amounts;

(ii)       
second, to the Group 2-A Certificates, concurrently, the
sum of the Interest Distribution Amounts for such Classes for the
current Distribution Date, pro rata according to their respective
Interest Distribution Amounts; and

(iii)       third,
to the Group 2-A Certificates, as principal, the Group 2
Senior Principal Distribution Amount, concurrently, pro rata
according to Class Principal Balance (or, with respect to clause
(a) of this paragraph, aggregate Class Principal Balance) of the
Classes described in each of clause (a), (b) and (c) below, as
follows:

(a)        to
the Class 2-A1, Class 2-A2A and Class 2-A2B Certificates,
sequentially, as follows;

(1)       
first, to the Class 2-A1 Certificates, until the Class 2-A1
Principal Balance has been reduced to zero; and

(2)       
second, to the Class 2-A2A and Class 2-A2B Certificates, pro rata
until their Class Principal Balances have each been reduced to
zero;

(b)        to
the Class 2-A3 Certificates, until the Class 2-A3 Principal Balance
has been reduced to zero; and

(c)        to
the Class 2-A4 Certificates, until the Class 2-A4 Principal Balance
has been reduced to zero;

(C)       With
respect to the Group L-B Certificates and the Class R-4 Residual
Interest, on any Distribution Date prior to the Groups 1-2 Credit
Support Depletion Date, to the extent of the REMIC IV Available
Distribution Amount for Loan Group 1 and Loan Group 2 for such
Distribution Date after payment of the amounts pursuant to
paragraphs (I)(A) and (I)(B) of this definition of “REMIC IV
Distribution Amount”:

(i)
        first, to the Class
L-B-1 Certificates, the Interest Distribution Amount for
such Class remaining unpaid from previous Distribution Dates;

(ii)       
second, to the Class L-B-1 Certificates, the Interest Distribution
Amount for such Class for the current Distribution
Date;

(iii)       third,
to the Class L-B-1 Certificates, the portion of the Group L-B
Subordinate Principal Distribution Amount allocable to such Class
pursuant to the definition of “Group L-B Subordinate
Principal Distribution Amount,” until the Class L-B-1
Principal Balance has been reduced to zero;

(iv)       fourth,
to the Class L-B-2 Certificates, the Interest Distribution Amount
for such Class remaining unpaid from previous Distribution
Dates;

(v)       
fifth, to the Class L-B-2 Certificates, the Interest Distribution
Amount for such Class for the current Distribution
Date;

(vi)       sixth,
to the Class L-B-2 Certificates, the portion of the Group L-B
Subordinate Principal Distribution Amount allocable to such Class
pursuant to the definition of “Group L-B Subordinate
Principal Distribution Amount,” until the Class L-B-2
Principal Balance has been reduced to zero;

(vii)      seventh, to
the Class L-B-3 Certificates, the Interest Distribution Amount for
such Class remaining unpaid from previous Distribution
Dates;

(viii)      eighth, to
the Class L-B-3 Certificates, the Interest Distribution Amount for
such Class for the current Distribution Date;

(ix)      
ninth, to the Class L-B-3 Certificates, the portion of
the Group L-B Subordinate Principal Distribution Amount allocable
to such Class pursuant to the definition of “Group L-B
Subordinate Principal Distribution Amount,” until the Class
L-B-3 Principal Balance has been reduced to zero;

(x)       
tenth, to the Class L-B-4 Certificates, the Interest
Distribution Amount for such Class remaining unpaid from previous
Distribution Dates;

(xi)      
eleventh, to the Class L-B-4 Certificates, the Interest
Distribution Amount for such Class for the current Distribution
Date;

(xii)      twelfth, to
the Class L-B-4 Certificates, the portion of the Group L-B
Subordinate Principal Distribution Amount allocable to such Class
pursuant to the definition of “Group L-B
Subordinate Principal Distribution Amount,” until the Class
L-B-4 Principal Balance has been reduced to zero;

(xiii)      thirteenth,
to the Class L-B-5 Certificates, the Interest Distribution Amount
for such Class remaining unpaid from previous Distribution
Dates;

(xiv)     fourteenth, to the
Class L-B-5 Certificates, the Interest Distribution Amount for such
Class for the current Distribution Date;

(xv)      fifteenth, to
the Class L-B-5 Certificates, the portion of the Group L-B
Subordinate Principal Distribution Amount allocable to such Class
pursuant to the definition of “Group L-B
Subordinate Principal Distribution Amount,” until the Class
L-B-5 Principal Balance has been reduced to zero;

(xvi)     sixteenth, to the
Class L-B-6 Certificates, the Interest Distribution Amount for such
Class remaining unpaid from previous Distribution
Dates;

(xvii)     seventeenth, to
the Class L-B-6 Certificates, the Interest Distribution Amount for
such Class for the current Distribution Date;

(xviii)    eighteenth, to the
Class L-B-6 Certificates, the portion of the Group L-B Subordinate
Principal Distribution Amount allocable to such Class pursuant to
the definition of “Group L-B Subordinate Principal
Distribution Amount,” until the Class L-B-6 Principal Balance
has been reduced to zero;

(xix)     nineteenth, to the
Classes of Group L-B Certificates in the order of seniority (which,
from highest to lowest, shall be as follows: Class L-B-1, Class
L-B-2, Class L-B-3, Class L-B-4, Class L-B-5 and Class L-B-6) the
remaining portion, if any, of the REMIC IV Available Distribution
Amount for Loan Group 1 and Loan Group 2, up to the amount of
unreimbursed Realized Losses allocable to principal previously
allocated or to be allocated on such Distribution Date to such
Class, if any; provided, however, that any amounts
distributed pursuant to this paragraph (I)(C)(xix) of this
definition of “REMIC IV Distribution Amount” shall not
cause a reduction in the Class Principal Balances of any of the
Classes of Group L-B Certificates; and

(xx)      twentieth, to
the Class R-4 Residual Interest, the Residual Distribution Amount
for the Class R-4 Residual Interest for Loan Group 1 and Loan Group
2 for such Distribution Date.

Notwithstanding the foregoing paragraph (I)(C) of
this definition of “REMIC IV Distribution
Amount”,

(X)       on any
Distribution Date on which both of the following conditions
specified in clauses (1) and (2) are met:

(1)        the
aggregate Class Principal Balance of the Group 1-A Certificates or
the Group 2-A Certificates has been reduced to zero, and

(2)       
either (a) the Group L-B Percentage for such Distribution Date is
less than 200% of the Group L-B Percentage as of the Closing Date
or (b) the outstanding principal balance of the Mortgage Loans in
any of Loan Group 1 or Loan Group 2 delinquent 60 days or more
averaged over the last six months (including Mortgage Loans in
foreclosure and Mortgage Loans the Mortgaged Property of which is
held by REMIC I and acquired by foreclosure or deed in lieu of
foreclosure), as a percentage of the related Subordinate Component
Balance, is greater than or equal to 50%,

all principal received or advanced with respect
to the Mortgage Loans in the Loan Group related to the Certificate
Group whose aggregate Class Principal Balance has been reduced to
zero shall be paid as principal to the remaining Class A
Certificates related to the other Certificate Group to the extent
of and in reduction of the Class Principal Balances (and, in the
case of the Group 1-A Certificates, pro rata, and, in the case of
the Group 2-A Certificates, in the order of priority of
paragraphs (I)(B)(iii)(a)-(c) above), and

(Y)       if on any
Distribution Date any of Loan Group 1 or Loan Group 2 is an
Undercollateralized Group and the other Loan Group is an
Overcollateralized Group, then the REMIC IV Available Distribution
Amount for the Overcollateralized Group, to the extent remaining
following distributions pursuant to paragraph (I)(A) or (I)(B)
above, as applicable, shall be paid in the following priority: (1)
first, such remaining amount, up to the Total Transfer Amount for
such Undercollateralized Group, shall be distributed (a) first, to
the Class A Certificates related to such Undercollateralized Group,
in payment of any portion of the Interest Distribution Amounts for
such Classes remaining unpaid from such Distribution Date or
previous Distribution Dates, pro rata according to their respective
shares of such unpaid amounts, and (b) second, to the Class A
Certificates related to such Undercollateralized Group, as
principal (and, in the case of the Group 1-A Certificates, pro
rata, and, in the case of the Group 2-A Certificates, in the
order of priority of paragraphs (I)(B)(iii)(a)-(c) above), and (2)
second, any remaining amount shall be distributed pursuant to
paragraph (I)(C) above.

(II)       For any
Distribution Date on or after the Groups 1-2 Credit Support
Depletion Date, the REMIC IV Available Distribution Amount
for Loan Group 1 and Loan Group 2 for such Distribution Date shall
be distributed to the outstanding Classes of REMIC IV Regular
Interests and the Class R-4 Residual Interest in the following
amounts and priority, to the extent of the REMIC IV Available
Distribution Amount for the applicable Loan Group for such
Distribution Date:

(A)       With
respect to the Group 1 Certificates and the Class R-4
Residual Interest, on any Distribution Date on or after the Groups
1-2 Credit Support Depletion Date, to the extent of the REMIC IV
Available Distribution Amount for Loan Group 1 for such
Distribution Date:

(i)        
first, to the Group 1-A Certificates, the amount payable
to each such Class on prior Distribution Dates pursuant to clause
(I)(A)(ii) or (II)(A)(ii) of this definition of “REMIC IV
Distribution Amount,” and remaining unpaid, pro rata
according to such amount payable to the extent of amounts
available;

(ii)       
second, to the Group 1-A Certificates, concurrently, the
sum of the Interest Distribution Amounts for such Classes for the
current Distribution Date, pro rata according to their respective
Interest Distribution Amounts;

(iii)       third,
to the Group 1-A Certificates, as principal, the Group 1
Senior Principal Distribution Amount, pro rata according to Class
Principal Balance, until such Class Principal Balances have each
been reduced to zero;

(iv)       fourth,
any payments to the Group 2-A Certificates pursuant to the last
paragraph of this definition of “REMIC IV Distribution
Amount;”

(v)       
fifth, to the Group 1-A and Group L-B Certificates, in
the order of seniority (which, from highest to lowest, shall be as
follows: the Group 1-A Certificates of equal seniority, and then
Class L-B-1, Class L-B-2, Class L-B-3, Class L-B-4, Class L-B-5 and
Class L-B-6 of decreasing seniority) the remaining portion, if any,
of the REMIC IV Available Distribution Amount for Loan Group 1, up
to the amount of unreimbursed Realized Losses allocable to
principal previously allocated or to be allocated on such
Distribution Date to such Class, if any; provided, however,
that in the case of Classes of equal seniority, the amount
distributable to such Classes shall be allocated among such Classes
according to the amount of losses allocated thereto; provided,
further, that any amounts distributed pursuant to this
paragraph (II)(A)(v) of this definition of “REMIC IV
Distribution Amount” shall not cause a reduction in the Class
Principal Balances of any of the Classes of REMIC IV Regular
Interests; and

(vi)       sixth,
Class R-4 Residual Interest, the Residual Distribution Amount for
Loan Group 1 for such Distribution Date.

(B)       With
respect to the Group 2 Certificates and the Class R-4
Residual Interest, on any Distribution Date on or after the Groups
1-2 Credit Support Depletion Date, to the extent of the REMIC IV
Available Distribution Amount for Loan Group 2 for such
Distribution Date:

(i)        
first, to the Group 2-A Certificates, the amount payable to each
such Class on prior Distribution Dates pursuant to clause
(I)(B)(ii) or (II)(B)(ii) of this definition of “REMIC IV
Distribution Amount,” and remaining unpaid, pro rata
according to such amount payable to the extent of amounts
available;

(ii)       
second, to the Group 2-A Certificates, concurrently, the
sum of the Interest Distribution Amounts for such Classes for the
current Distribution Date, pro rata according to their respective
Interest Distribution Amounts;

(iii)       third,
to the Group 2-A Certificates, as principal, the Group 2
Senior Principal Distribution Amount, pro rata according to Class
Principal Balance, until such Class Principal Balances have each
been reduced to zero;

(iv)       fourth,
any payments to Group 1-A Certificates pursuant to the last
paragraph of this definition of “REMIC IV Distribution
Amount;”

(v)       
fifth, to the Group 2-A and Group L-B Certificates, in
the order of seniority (which, from highest to lowest, shall be as
follows: the Group 2-A Certificates of equal seniority, and then
Class L-B-1, Class L-B-2, Class L-B-3, Class L-B-4, Class L-B-5 and
Class L-B-6 of decreasing seniority) the remaining portion, if any,
of the REMIC IV Available Distribution Amount for Loan Group 2, up
to the amount of unreimbursed Realized Losses allocable to
principal previously allocated or to be allocated on such
Distribution Date to such Class, if any; provided, however,
that in the case of Classes of equal seniority, the amount
distributable to such Classes shall be allocated among such Classes
according to the amount of losses allocated thereto; provided,
further, that any amounts distributed pursuant to this
paragraph (II)(B)(v) of this definition of “REMIC IV
Distribution Amount” shall not cause a reduction in the Class
Principal Balances of any of the Classes of REMIC IV Regular
Interests; and

(vi)       sixth,
Class R-4 Residual Interest, the Residual Distribution Amount for
Loan Group 2 for such Distribution Date.

If on any Distribution Date any of Loan
Group 1 or Loan Group 2 is an Undercollateralized Group and the
other of such Loan Groups is an Overcollateralized Group, then the
REMIC IV Available Distribution Amount for the Overcollateralized
Group, to the extent remaining following distributions pursuant to
paragraph (II)(A)(i) through (II)(A)(iii) or paragraph (II)(B)(i)
through (II)(B)(iii) above, as applicable, shall be paid in the
following priority: (1) first, such remaining amount, up to the
Total Transfer Amount for such Undercollateralized Group, shall be
distributed (a) first, to the Class A Certificates related to such
Undercollateralized Group, in payment of any portion of the
Interest Distribution Amounts for such Classes remaining unpaid
from such Distribution Date or previous Distribution Dates, pro
rata according to their respective shares of such unpaid amounts,
and (b) second, to the Class A Certificates related to such
Undercollateralized Group, as principal, pro rata according to
Class Principal Balance, and (2) second, any remaining amount shall
be distributed pursuant to paragraph (II)(A)(v) through (II)(A)(vi)
or paragraph (II)(B)(v) through (II)(B)(vi) above, as
applicable.

(III)
For any Distribution Date prior to the Groups 4-5 Credit Support
Depletion Date, the REMIC IV Available Distribution Amount for Loan
Group 4 and Loan Group 5 for such Distribution Date shall be
distributed to the REMIC IV Regular Interests and the Class R-4
Residual Interest in the following amounts and priority, to the
extent of the REMIC IV Available Distribution Amount for the
applicable Loan Group for such Distribution Date:

(A)       With
respect to the Group 4 Certificates, on any Distribution Date prior
to the Groups 4-5 Credit Support Depletion Date, to the extent of
the REMIC IV Available Distribution Amount for Loan Group 4 for
such Distribution Date:

(i)        
first, to the Group 4-A Certificates, concurrently, the sum
of the Interest Distribution Amounts for such Classes remaining
unpaid from previous Distribution Dates, pro rata according to
their respective shares of such unpaid amounts;

(ii)       
second, to the Group 4-A Certificates, concurrently, the sum
of the Interest Distribution Amounts for such Classes for the
current Distribution Date, pro rata according to their respective
Interest Distribution Amounts; and

(iii)       third,
to the Group 4-A Certificates, pro rata according to Class
Principal Balance, as principal, the Group 4 Senior Principal
Distribution Amount, until the aggregate Class Principal Balance of
the Group 4-A Certificates has been reduced to zero;

(B)       With
respect to the Group 5 Certificates, on any Distribution Date prior
to the Groups 4-5 Credit Support Depletion Date, to the extent of
the REMIC IV Available Distribution Amount for Loan Group 5 for
such Distribution Date:

(i)        
first, to the Group 5-A Certificates, concurrently, the sum of the
Interest Distribution Amounts for such Classes remaining unpaid
from previous Distribution Dates, pro rata according to their
respective shares of such unpaid amounts;

(ii)       
second, to the Group 5-A Certificates, concurrently, the sum
of the Interest Distribution Amounts for such Classes for the
current Distribution Date, pro rata according to their respective
Interest Distribution Amounts; and

(iii)       third,
to the Group 5-A Certificates, pro rata according to Class
Principal Balance, as principal, the Group 5 Senior Principal
Distribution Amount, until the aggregate Class Principal Balance of
the Group 5-A Certificates has been reduced to zero; and

(C)       With
respect to the Group M-B Certificates and the Class R-4 Residual
Interest, on any Distribution Date prior to the Groups 4-5 Credit
Support Depletion Date, to the extent of the REMIC IV Available
Distribution Amount for Loan Group 4 and Loan Group 5 for such
Distribution Date after payment of the amounts pursuant to
paragraphs (III)(A) and (III)(B) of this definition of “REMIC
IV Distribution Amount”:

(i)
        first, to the Class
M-B-1 Certificates, the Interest Distribution Amount for
such Class remaining unpaid from previous Distribution Dates;

(ii)       
second, to the Class M-B-1 Certificates, the Interest Distribution
Amount for such Class for the current Distribution Date;

(iii)       third,
to the Class M-B-1 Certificates, the portion of the Group M-B
Subordinate Principal Distribution Amount allocable to such Class
pursuant to the definition of “Group M-B Subordinate
Principal Distribution Amount,” until the Class M-B-1
Principal Balance has been reduced to zero;

(iv)       fourth,
to the Class M-B-2 Certificates, the Interest Distribution Amount
for such Class remaining unpaid from previous Distribution
Dates;

(v)       
fifth, to the Class M-B-2 Certificates, the Interest Distribution
Amount for such Class for the current Distribution Date;

(vi)       sixth,
to the Class M-B-2 Certificates, the portion of the Group M-B
Subordinate Principal Distribution Amount allocable to such Class
pursuant to the definition of “Group M-B Subordinate
Principal Distribution Amount,” until the Class M-B-2
Principal Balance has been reduced to zero;

(vii)     
seventh, to the Class M-B-3 Certificates, the Interest Distribution
Amount for such Class remaining unpaid from previous Distribution
Dates;

(viii)      eighth, to
the Class M-B-3 Certificates, the Interest Distribution Amount for
such Class for the current Distribution Date;

(ix)      
ninth, to the Class M-B-3 Certificates, the portion of the
Group M-B Subordinate Principal Distribution Amount allocable to
such Class pursuant to the definition of “Group M-B
Subordinate Principal Distribution Amount,” until the Class
M-B-3 Principal Balance has been reduced to zero;

(x)       
tenth, to the Class M-B-4 Certificates, the Interest
Distribution Amount for such Class remaining unpaid from previous
Distribution Dates;

(xi)      
eleventh, to the Class M-B-4 Certificates, the Interest
Distribution Amount for such Class for the current Distribution
Date;

(xii)     
twelfth, to the Class M-B-4 Certificates, the portion of the Group
M-B Subordinate Principal Distribution Amount allocable to such
Class pursuant to the definition of “Group M-B
Subordinate Principal Distribution Amount,” until the Class
M-B-4 Principal Balance has been reduced to zero;

(xiii)      thirteenth,
to the Class M-B-5 Certificates, the Interest Distribution Amount
for such Class remaining unpaid from previous Distribution
Dates;

(xiv)    
fourteenth, to the Class M-B-5 Certificates, the Interest
Distribution Amount for such Class for the current Distribution
Date;

(xv)     
fifteenth, to the Class M-B-5 Certificates, the portion of the
Group M-B Subordinate Principal Distribution Amount allocable to
such Class pursuant to the definition of “Group M-B
Subordinate Principal Distribution Amount,” until the Class
M-B-5 Principal Balance has been reduced to zero;

(xvi)    
sixteenth, to the Class M-B-6 Certificates, the Interest
Distribution Amount for such Class remaining unpaid from previous
Distribution Dates;

(xvii)    
seventeenth, to the Class M-B-6 Certificates, the Interest
Distribution Amount for such Class for the current Distribution
Date;

(xviii)   
eighteenth, to the Class M-B-6 Certificates, the portion of the
Group M-B Subordinate Principal Distribution Amount allocable to
such Class pursuant to the definition of “Group M-B
Subordinate Principal Distribution Amount,” until the Class
M-B-6 Principal Balance has been reduced to zero;

(xix)    
nineteenth, to the Classes of Group M-B Certificates in the order
of seniority (which, from highest to lowest, shall be as follows:
Class M-B-1, Class M-B-2, Class M-B-3, Class M-B-4, Class M-B-5 and
Class M-B-6) the remaining portion, if any, of the REMIC IV
Available Distribution Amount for Loan Group 4 and Loan Group 5, up
to the amount of unreimbursed Realized Losses allocable to
principal previously allocated or to be allocated on such
Distribution Date to such Class, if any; provided, however,
that any amounts distributed pursuant to this paragraph
(III)(C)(xix) of this definition of “REMIC IV Distribution
Amount” shall not cause a reduction in the Class Principal
Balances of any of the Classes of Group M-B Certificates;
and

(xx)     
twentieth, to the Class R-4 Residual Interest, the Residual
Distribution Amount for the Class R-4 Residual Interest for Loan
Group 4 and Loan Group 5 for such Distribution Date.

Notwithstanding the foregoing paragraph (III)(C)
of this definition of “REMIC IV Distribution
Amount”,

(X)       on any
Distribution Date on which both of the following conditions
specified in clauses (1) and (2) are met:

(1)        the
aggregate Class Principal Balance of the Group 4-A Certificates or
the Group 5-A Certificates has been reduced to zero, and

(2)       
either (a) the Group M-B Percentage for such Distribution Date is
less than 200% of the Group M-B Percentage as of the Closing Date
or (b) the outstanding principal balance of the Mortgage Loans in
any of Loan Group 4 or Loan Group 5 delinquent 60 days or more
averaged over the last six months (including Mortgage Loans in
foreclosure and Mortgage Loans the Mortgaged Property of which is
held by REMIC III and acquired by foreclosure or deed in lieu of
foreclosure), as a percentage of the related Subordinate Component
Balance, is greater than or equal to 50%,

all principal received or advanced with respect
to the Mortgage Loans in the Loan Group related to the Certificate
Group whose aggregate Class Principal Balance has been reduced to
zero shall be paid as principal to the remaining Class A
Certificates related to the other Certificate Group, pro rata, to
the extent of and in reduction of the Class Principal Balances,
and

(Y)       if on any
Distribution Date any of Loan Group 4 or Loan Group 5 is an
Undercollateralized Group and the other Loan Group is an
Overcollateralized Group, then the REMIC IV Available Distribution
Amount for the Overcollateralized Group, to the extent remaining
following distributions pursuant to paragraph (III)(A) or (III)(B)
above, as applicable, shall be paid in the following priority: (1)
first, such remaining amount, up to the Total Transfer Amount for
such Undercollateralized Group, shall be distributed (a) first, to
the Class A Certificates related to such Undercollateralized Group,
in payment of any portion of the Interest Distribution Amounts for
such Classes remaining unpaid from such Distribution Date or
previous Distribution Dates, pro rata according to their respective
shares of such unpaid amounts, and (b) second, to the Class A
Certificates related to such Undercollateralized Group, as
principal, pro rata, and (2) second, any remaining amount shall be
distributed pursuant to paragraph (III)(C) above.

(IV)      For any
Distribution Date on or after the Groups 4-5 Credit Support
Depletion Date, the REMIC IV Available Distribution Amount for Loan
Group 4 and Loan Group 5 for such Distribution Date shall be
distributed to the outstanding Classes of REMIC IV Regular
Interests and the Class R-4 Residual Interest in the following
amounts and priority, to the extent of the REMIC IV Available
Distribution Amount for the applicable Loan Group for such
Distribution Date:

(A)       With
respect to the Group 4 Certificates and the Class R-4 Residual
Interest, on any Distribution Date on or after the Groups 4-5
Credit Support Depletion Date, to the extent of the REMIC IV
Available Distribution Amount for Loan Group 4 for such
Distribution Date:

(i)        
first, to the Group 4-A Certificates, the amount payable to
each such Class on prior Distribution Dates pursuant to clause
(III)(A)(ii) or (IV)(A)(ii) of this definition of “REMIC IV
Distribution Amount,” and remaining unpaid, pro rata
according to such amount payable to the extent of amounts
available;

(ii)       
second, to the Group 4-A Certificates, concurrently, the sum
of the Interest Distribution Amounts for such Classes for the
current Distribution Date, pro rata according to their respective
Interest Distribution Amounts;

(iii)       third,
to the Group 4-A Certificates, as principal, the Group 4
Senior Principal Distribution Amount, pro rata according to Class
Principal Balance, until such Class Principal Balances have each
been reduced to zero;

(iv)       fourth,
any payments to the Group 5-A Certificates pursuant to the last
paragraph of this definition of “REMIC IV Distribution
Amount;”

(v)       
fifth, to the Group 4-A and Group M-B Certificates, in the
order of seniority (which, from highest to lowest, shall be as
follows: the Group 4-A Certificates of equal seniority, and then
Class M-B-1, Class M-B-2, Class M-B-3, Class M-B-4, Class M-B-5 and
Class M-B-6 of decreasing seniority) the remaining portion, if any,
of the REMIC IV Available Distribution Amount for Loan Group 4, up
to the amount of unreimbursed Realized Losses allocable to
principal previously allocated or to be allocated on such
Distribution Date to such Class, if any; provided, however,
that in the case of Classes of equal seniority, the amount
distributable to such Classes shall be allocated among such Classes
according to the amount of losses allocated thereto; provided,
further, that any amounts distributed pursuant to this
paragraph (IV)(A)(v) of this definition of “REMIC IV
Distribution Amount” shall not cause a reduction in the Class
Principal Balances of any of the Classes of REMIC IV Regular
Interests; and

(vi)       sixth,
Class R-4 Residual Interest, the Residual Distribution Amount for
Loan Group 4 for such Distribution Date.

(B)       With
respect to the Group 5 Certificates and the Class R-4 Residual
Interest, on any Distribution Date on or after the Groups 4-5
Credit Support Depletion Date, to the extent of the REMIC IV
Available Distribution Amount for Loan Group 5 for such
Distribution Date:

(i)        
first, to the Group 5-A Certificates, the amount payable to each
such Class on prior Distribution Dates pursuant to clause
(III)(B)(ii) or (IV)(B)(ii) of this definition of “REMIC IV
Distribution Amount,” and remaining unpaid, pro rata
according to such amount payable to the extent of amounts
available;

(ii)       
second, to the Group 5-A Certificates, concurrently, the sum
of the Interest Distribution Amounts for such Classes for the
current Distribution Date, pro rata according to their respective
Interest Distribution Amounts;

(iii)       third,
to the Group 5-A Certificates, as principal, the Group 2
Senior Principal Distribution Amount, pro rata according to Class
Principal Balance, until such Class Principal Balances have each
been reduced to zero;

(iv)       fourth,
any payments to Group 5-A Certificates pursuant to the last
paragraph of this definition of “REMIC IV Distribution
Amount;”

(v)       
fifth, to the Group 5-A and Group M-B Certificates, in the
order of seniority (which, from highest to lowest, shall be as
follows: the Group 5-A Certificates of equal seniority, and then
Class M-B-1, Class M-B-2, Class M-B-3, Class M-B-4, Class M-B-5 and
Class M-B-6 of decreasing seniority) the remaining portion, if any,
of the REMIC IV Available Distribution Amount for Loan Group 5, up
to the amount of unreimbursed Realized Losses allocable to
principal previously allocated or to be allocated on such
Distribution Date to such Class, if any; provided, however,
that in the case of Classes of equal seniority, the amount
distributable to such Classes shall be allocated among such Classes
according to the amount of losses allocated thereto; provided,
further, that any amounts distributed pursuant to this
paragraph (IV)(B)(v) of this definition of “REMIC IV
Distribution Amount” shall not cause a reduction in the Class
Principal Balances of any of the Classes of REMIC IV Regular
Interests; and

(vi)       sixth,
Class R-4 Residual Interest, the Residual Distribution Amount for
Loan Group 5 for such Distribution Date.

If on any Distribution Date any of Loan
Group 4 or Loan Group 5 is an Undercollateralized Group and the
other of such Loan Groups is an Overcollateralized Group, then the
REMIC IV Available Distribution Amount for the Overcollateralized
Group, to the extent remaining following distributions pursuant to
paragraph (IV)(A)(i) through (IV)(A)(iii) or paragraph (IV)(B)(i)
through (IV)(B)(iii) above, as applicable, shall be paid in the
following priority: (1) first, such remaining amount, up to the
Total Transfer Amount for such Undercollateralized Group, shall be
distributed (a) first, to the Class A Certificates related to such
Undercollateralized Group, in payment of any portion of the
Interest Distribution Amounts for such Classes remaining unpaid
from such Distribution Date or previous Distribution Dates, pro
rata according to their respective shares of such unpaid amounts,
and (b) second, to the Class A Certificates related to such
Undercollateralized Group, as principal, pro rata according to
Class Principal Balance, and (2) second, any remaining amount shall
be distributed pursuant to paragraph (IV)(A)(v) through (IV)(A)(vi)
or paragraph (IV)(B)(v) through (IV)(B)(vi) above, as
applicable.

REMIC IV Regular Interests: The
Classes of undivided beneficial interests in REMIC IV designated as
“regular interests” in the table titled “REMIC IV
Interests” in the Preliminary Statement hereto.

Repurchase Price: With respect to any
Mortgage Loan to be repurchased by the Company pursuant to Section
2.08, an amount equal to the sum of (i) the Principal Balance
thereof, (ii) one month’s interest thereon at the applicable
Pass-Through Rate, (iii) any unreimbursed Monthly P&I Advances
or advances of reimbursable expenses made by the Servicer with
respect to such Mortgage Loan hereunder and (iv) any interest due
but unpaid with respect to such Mortgage Loan not covered by a
Monthly P&I Advance.

Repurchase Proceeds: Proceeds received
by the Trust with respect to any Mortgage Loan that was repurchased
or substituted for by the Company pursuant to Section 2.08 or
repurchased or substituted for by a Seller pursuant to the Mortgage
Loan Purchase Agreement, after deduction of amounts reimbursable
under Section 3.05(a)(i) and (ii).

Residual Certificates:  The Class
R Certificates.

Residual Distribution Amount: 
For any Distribution Date, with respect to the Class R-1 Residual
Interest, any portion of the REMIC I Available Distribution Amount
for Loan Group 1 and Loan Group 2 remaining after all distributions
of the REMIC I Available Distribution Amount pursuant to clauses
(a), (b) and (c) (other than the last subclause of clause (c)) of
the definition of “REMIC I Distribution Amount”.

For
any Distribution Date, with respect to the Class R-2 Residual
Interest, any portion of the REMIC II Available Distribution Amount
remaining after all distributions of the REMIC II Available
Distribution Amount pursuant to clauses (I) and (II), as
applicable, of the definition of “REMIC II Distribution
Amount” (other than the distribution pursuant to the last
subclause of clauses (I) and (II)).

For
any Distribution Date, with respect to the Class R-3 Residual
Interest, any portion of the REMIC III Available Distribution
Amount for Loan Group 4 and Loan Group 5 remaining after all
distributions of the REMIC III Available Distribution Amount
pursuant to clauses (a), (b) and (c) (other than the last subclause
of clause (c)) of the definition of “REMIC III Distribution
Amount”.

For
any Distribution Date, with respect to the Class R-4 Residual
Interest and for Loan Group 1, Loan Group 2, Loan Group 4 and Loan
Group 5, any portion of the REMIC IV Available Distribution Amount
for Loan Group 1, Loan Group 2, Loan Group 4 and Loan Group 5,
respectively, remaining after all distributions of such REMIC IV
Available Distribution Amount pursuant to clauses (I)(A), (I)(B),
(I)(C), (II)(A), (II)(B), (III)(A), (III)(B), (III)(C), (IV)(A) and
(IV)(B), as applicable, of the definition of “REMIC IV
Distribution Amount” (other than the distributions pursuant
to the last subclause of clauses (I)(C), (II)(A), (II)(B),
(III)(C), (IV)(A) and (IV)(B)).

Upon
termination of the obligations created by this Agreement and
liquidation of REMIC I, REMIC II, REMIC III and REMIC IV, the
amounts which remain on deposit in the Certificate Account after
payment to the Holders of the REMIC IV Regular Interests of the
amounts set forth in Section 9.01 of this Agreement, and subject to
the conditions set forth therein, shall be distributed to the Class
R-1, Class R-2, Class R-3 and Class R-4 Residual Interests in
accordance with the preceding sentences of this definition as if
the date of such distribution were a Distribution Date.

Responsible Officer: When used with
respect to the Trustee or the Delaware Trustee, any officer
assigned to and working in the Corporate Trust Office (in the case
of the Trustee) or its corporate trust office (in the case of the
Delaware Trustee) or, in each case, in a similar group and also,
with respect to a particular matter, any other officer to whom such
matter is referred because of such officer’s knowledge of and
familiarity with the particular subject.

ROV Mortgage Loan:  A Mortgage
Loan originated by Washington Mutual Bank or an affiliate thereof
with respect to which the value set forth on the appraisal has been
appealed and, as a result, an internal valuation has been conducted
and included in a residential appraisal review contained in the
related credit file.

S&P: Standard & Poor’s
Ratings Services, a division of The McGraw-Hill Companies, Inc.,
provided that at the applicable time it is a Rating Agency.

Secretary of State: The Secretary of
State of the State of Delaware.

Securities Act: The Securities Act of
1933, as amended.

Security Agreement: With respect to a
Cooperative Loan, the agreement or mortgage creating a security
interest in favor of the originator of the Cooperative Loan in the
related Cooperative Stock.

Seller:  For each Mortgage Loan,
the seller of such Mortgage Loan pursuant to the Mortgage Loan
Purchase Agreement.

Senior Certificates:  The Class A
and Class R Certificates.

Senior Subordinate Certificates: 
The Subordinate Certificates other than the Junior Subordinate
Certificates.

Servicer:  Washington Mutual
Bank, or any successor thereto appointed as provided pursuant to
Section 7.02.

Servicer Business Day:  Any day
other than a Saturday, a Sunday, or a day on which banking
institutions in Seattle, Washington or in any other city in which a
corporate office of the Servicer is located are authorized or
obligated by law or executive order to be closed.

Servicing Fee: For each Mortgage Loan,
the fee payable to the Servicer for servicing and advancing certain
amounts with respect to such Mortgage Loan, equal to 1/12 of the
product of (i) the Servicing Fee Rate for such Mortgage Loan and
(ii) the outstanding Principal Balance of such Mortgage Loan. In
addition, the Servicer will be paid, as additional servicing
compensation, any prepayment penalties, late charges, nonsufficient
funds fees and other fees and charges collected on the Mortgage
Loans.

 Servicing Fee Rate: For each
Mortgage Loan in Loan Group 1, a per annum rate equal to 0.500%.
For each Mortgage Loan in Loan Group 2, a per annum rate equal to
0.375%. For each Mortgage Loan in Loan Group 3, a per annum rate
equal to 0.250%. For each Mortgage Loan in Loan Group 4, a per
annum rate equal to 0.375%. For each Mortgage Loan in Loan Group 5,
a per annum rate equal to 0.375%.

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

Special Primary Insurance Policy: Any
Primary Insurance Policy covering a Mortgage Loan the premium of
which is payable by the Trustee pursuant to Section 4.05(a), if so
identified in the Mortgage Loan Schedule. There are no Special
Primary Insurance Policies with respect to any of the Mortgage
Loans, and all references herein to Special Primary Insurance
Policies shall be of no force or effect.

Special Primary Insurance Premium:
With respect to any Special Primary Insurance Policy, the monthly
premium payable thereunder.

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

Streamlined Mortgage Loan:  A
Mortgage Loan originated in connection with the refinance of a
mortgage loan pursuant to the streamlined loan documentation
program then in effect of the originator of such Mortgage Loan.

Subordinate Certificates:  The
Group L-B, Group 3-B and Group M-B Certificates.

Subordinate Component Balance: 
With respect to Loan Group 1 for any date of determination, the
excess, if any, of the then outstanding aggregate Principal Balance
of the Group 1 Loans over the then outstanding aggregate Class
Principal Balance of the Group 1-A and Residual Certificates. With
respect to Loan Group 2 for any date of determination, the excess,
if any, of the then outstanding aggregate Principal Balance of the
Group 2 Loans over the then outstanding aggregate Class Principal
Balance of the Group 2-A Certificates. With respect to Loan
Group 4 for any date of determination, the excess, if any, of the
then outstanding aggregate Principal Balance of the Group 4 Loans
over the then outstanding aggregate Class Principal Balance of the
Group 4-A Certificates. With respect to Loan Group 5 for any
date of determination, the excess, if any, of the then outstanding
aggregate Principal Balance of the Group 5 Loans over the then
outstanding aggregate Class Principal Balance of the Group 5-A
Certificates.

Subordination Level:  On any
specified date, with respect to any Class of Group L-B
Certificates, the percentage obtained by dividing the aggregate
Class Principal Balance of such Class and the Classes of Group L-B
Certificates which are subordinate in right of payment to such
Class by the aggregate Class Principal Balance of the Group 1,
Group 2 and Group L-B Certificates and the Class R-1 Residual
Interest as of such date prior to giving effect to distributions of
principal and interest and allocations of Realized Losses on such
date.

On any
specified date, with respect to any Class of Group 3-B
Certificates, the percentage obtained by dividing the aggregate
Class Principal Balance of such Class and the Classes of Group 3-B
Certificates which are subordinate in right of payment to such
Class by the aggregate Class Principal Balance of the Group 3
Certificates as of such date prior to giving effect to
distributions of principal and interest and allocations of Realized
Losses on such date.

On any
specified date, with respect to any Class of Group M-B
Certificates, the percentage obtained by dividing the aggregate
Class Principal Balance of such Class and the Classes of Group M-B
Certificates which are subordinate in right of payment to such
Class by the aggregate Class Principal Balance of the Group 4,
Group 5 and Group M-B Certificates as of such date prior to giving
effect to distributions of principal and interest and allocations
of Realized Losses on such date.

Subsequent Recoveries: For any
Distribution Date and any Loan Group, the sum of (a) amounts
received by the Servicer during the Prior Period in connection with
the liquidation of defaulted Mortgage Loans in such Loan Group
after such Mortgage Loans became Liquidated Mortgage Loans and (b)
Repurchase Proceeds received during the Prior Period with respect
to Mortgage Loans in such Loan Group, for each such Mortgage Loan
referred to in clause (a) or (b) up to the amount of Realized
Losses, if any, previously allocated in respect of such Mortgage
Loan in reduction of the Class Principal Balance of any Class of
Certificates.

Substitute Mortgage Loan: A Mortgage
Loan which is substituted for another Mortgage Loan pursuant to and
in accordance with the provisions of Section 2.08.

Substitution Price: With respect to
all Reacquired Mortgage Loans for which Substitute Mortgage Loans
are substituted on a specific date pursuant to Section 2.08, an
amount equal to the sum of (i) the excess, if any, of the aggregate
Principal Balance of the Reacquired Mortgage Loans over the
aggregate Principal Balance of the Substitute Mortgage Loans, in
each case, as of the date of substitution, (ii) one month’s
interest on the excess amount described in clause (i) above at the
weighted average Pass-Through Rate for the Reacquired Mortgage
Loans, (iii) all unreimbursed Monthly P&I Advances and advances
of reimbursable expenses made by the Servicer with respect to such
Reacquired Mortgage Loans hereunder and (iv) all interest due but
unpaid with respect to such Reacquired Mortgage Loans not covered
by a Monthly P&I Advance.

Tax Matters Person: With respect to
each of REMIC I, REMIC II, REMIC III and REMIC IV, a Holder of a
Class R Certificate with a Percentage Interest of at least 0.01% or
any Permitted Transferee of such Class R Certificateholder
designated as succeeding to the position of Tax Matters Person in a
notice to the Trustee signed by authorized representatives of the
transferor and transferee of such Class R Certificate, which Tax
Matters Person shall be the tax matters person for each REMIC
within the meaning of Section 6231(a)(7) of the Code and Treasury
Regulation Section 1.860F-4(d). The Servicer is hereby appointed to
act as Tax Matters Person so long as it holds a Class R Certificate
with a Percentage Interest of at least 0.01%.  In the event
that the Servicer ceases to hold a Class R Certificate with the
required Percentage Interest, the holder of the Class R Certificate
with the largest Percentage Interest shall be Tax Matters Person,
and such Tax Matters Person shall be deemed to have appointed the
Servicer to act as agent for the Tax Matters Person, to perform the
functions of such Tax Matters Person as provided herein. If the Tax
Matters Person becomes a Disqualified Organization, the last
preceding Holder, that is not a Disqualified Organization, of the
Class R Certificate held by the Disqualified Organization shall be
Tax Matters Person pursuant to and as permitted by Section 5.01(c).
If any Person is appointed as tax matters person by the Internal
Revenue Service pursuant to the Code, such Person shall be Tax
Matters Person.

Termination Date: The date upon which
final payment of the Certificates will be made pursuant to the
procedures set forth in Section 9.01(b).

Termination Payment: The final payment
delivered to the Certificateholders on the Termination Date
pursuant to the procedures set forth in Section 9.01(b).

Total Transfer Amount:  For any
Distribution Date and for any Undercollateralized Group, an amount
equal to the sum of the Interest Transfer Amount and the Principal
Transfer Amount for such Undercollateralized Group.

Transfer:  Any direct or indirect
transfer or sale of any Ownership Interest in a Residual
Certificate.

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

Transferee Affidavit and Agreement: An
affidavit and agreement in the form attached hereto as Exhibit
J.

Trust: WaMu Mortgage Pass-Through
Certificates Series 2007-HY1 Trust, a Delaware statutory trust,
created pursuant to the Original Trust Agreement.

Trustee: LaSalle Bank National
Association, not in its individual capacity but solely as trustee,
or its successor-in-interest as provided in Section 8.09, or any
successor trustee appointed as herein provided.

Uncollected Interest: With respect to
any Distribution Date for any Mortgage Loan on which a Payoff was
made by a Mortgagor during the related Payoff Period, except for
Payoffs received during the period from the first through the 14th
day of the month of such Distribution Date, an amount equal to one
month’s interest at the applicable Pass-Through Rate on such
Mortgage Loan less the amount of interest actually paid by the
Mortgagor with respect to such Payoff.

Uncompensated Interest Shortfall: With
respect to a Loan Group, for any Distribution Date, the excess, if
any, of (a) the sum of (i) the aggregate Relief Act Shortfall for
such Distribution Date with respect to the Mortgage Loans in such
Loan Group, (ii) aggregate Curtailment Shortfall for such
Distribution Date with respect to the Mortgage Loans in such Loan
Group and (iii) the aggregate Uncollected Interest for such
Distribution Date with respect to the Mortgage Loans in such Loan
Group over (b) Compensating Interest for such Distribution Date for
such Loan Group.

Uncompensated Interest Shortfall shall be
allocated to the REMIC IV Regular Interests as follows:

(a)       
Uncompensated Interest Shortfall for Loan Group 1 shall be
allocated to the Group 1-A Certificates and the portions of the
Group L-B Certificates that derive their Interest Distribution
Amounts from the Group 1 Loans, pro rata according to the amount of
interest accrued but unpaid on each such Class or portion thereof
during the immediately preceding accrual period, in reduction
thereof.

(b)       
Uncompensated Interest Shortfall for Loan Group 2 shall be
allocated to the Group 2-A Certificates and the portions of the
Group L-B Certificates that derive their Interest Distribution
Amounts from the Group 2 Loans, pro rata according to the amount of
interest accrued but unpaid on each such Class or portion thereof
during the immediately preceding accrual period, in reduction
thereof.

(c)       
Uncompensated Interest Shortfall for Loan Group 4 shall be
allocated to the Group 4-A Certificates and the portions of the
Group M-B Certificates that derive their Interest Distribution
Amounts from the Group 4 Loans, pro rata according to the amount of
interest accrued but unpaid on each such Class or portion thereof
during the immediately preceding accrual period, in reduction
thereof.

(d)       
Uncompensated Interest Shortfall for Loan Group 5 shall be
allocated to the Group 5-A Certificates and the portions of the
Group M-B Certificates that derive their Interest Distribution
Amounts from the Group 5 Loans, pro rata according to the amount of
interest accrued but unpaid on each such Class or portion thereof
during the immediately preceding accrual period, in reduction
thereof.

Uncompensated Interest Shortfall for Loan Group 3
shall be allocated to the Group 3 Certificates, pro rata according
to the amount of interest accrued but unpaid on each such Class
during the immediately preceding accrual period, in reduction
thereof.

Uncompensated Interest Shortfall shall be
allocated to the REMIC I Regular Interests as follows:

(a)       
Uncompensated Interest Shortfall for Loan Group 1 shall be
allocated to the Class Y-1 and Class Z-1 Regular Interests, pro
rata according to the amount of interest accrued but unpaid on each
such Class during the immediately preceding accrual period, in
reduction thereof.

(b)       
Uncompensated Interest Shortfall for Loan Group 2 shall be
allocated to the Class Y-2 and Class Z-2 Regular Interests, pro
rata according to the amount of interest accrued but unpaid on each
such Class during the immediately preceding accrual period, in
reduction thereof.

Uncompensated Interest Shortfall shall be
allocated to the REMIC III Regular Interests as follows:

(a)       
Uncompensated Interest Shortfall for Loan Group 4 shall be
allocated to the Class Y-4 and Class Z-4 Regular Interests, pro
rata according to the amount of interest accrued but unpaid on each
such Class during the immediately preceding accrual period, in
reduction thereof.

(b)       
Uncompensated Interest Shortfall for Loan Group 5 shall be
allocated to the Class Y-5 and Class Z-5 Regular Interests, pro
rata according to the amount of interest accrued but unpaid on each
such Class during the immediately preceding accrual period, in
reduction thereof.

Undercollateralized Group: For any
Distribution Date, Loan Group 1, if immediately prior to such
Distribution Date the aggregate Class Principal Balance of the
Group 1-A and Residual Certificates is greater than the aggregate
Principal Balance of the Group 1 Loans; and for any Distribution
Date, Loan Group 2, if immediately prior to such Distribution Date
the aggregate Class Principal Balance of the Group 2-A Certificates
is greater than the aggregate Principal Balance of the Group 2
Loans. For any Distribution Date, Loan Group 4, if immediately
prior to such Distribution Date the aggregate Class Principal
Balance of the Group 4-A Certificates is greater than the aggregate
Principal Balance of the Group 4 Loans; and for any Distribution
Date, Loan Group 5, if immediately prior to such Distribution Date
the aggregate Class Principal Balance of the Group 5-A Certificates
is greater than the aggregate Principal Balance of the Group 5
Loans.

Underwriter: WaMu Capital Corp.

Uninsured Cause: Any cause of damage
to a Mortgaged Property, the cost of the complete restoration of
which is not fully reimbursable under the hazard insurance policies
required to be maintained pursuant to Section 3.07.

U.S. Person: A citizen or resident of
the United States, a corporation, partnership or other entity
created or organized in or under the laws of the United States, any
state thereof or the District of Columbia, or an estate or trust
that is subject to U.S. federal income tax regardless of the source
of its income.

VA: The Department of Veterans
Affairs, formerly known as the Veterans Administration, or any
successor thereto.

Withdrawal Date: Any day during the
period commencing on the 18th day of the month of the related
Distribution Date (or if such day is not a Business Day, the
immediately preceding Business Day) and ending on the last Business
Day prior to the 21st day of the month of such Distribution Date. The “related Due Date” for any Withdrawal Date
is the Due Date immediately preceding the related Distribution
Date.

ARTICLE II

Creation of the Trust; Conveyance of the Mortgage Pool Assets and
REMIC I Regular Interests; REMIC Election and Designations;
Original Issuance of Certificates

Section
2.01.       
Creation of the Trust. 
The Trust was created pursuant to the Original Trust Agreement and
is hereby continued. As set forth in the Original Trust Agreement,
the Trust shall be known as “WaMu Mortgage Pass-Through
Certificates Series 2007-HY1 Trust”. The purpose of the Trust
is, and the Trust shall have the power and authority, to engage in
the following activities, all as provided by and subject to the
terms of this Agreement:

(i)        
to acquire, hold, lease, manage, administer, control, invest,
reinvest, operate and/or transfer the Mortgage Pool Assets and the
REMIC IV Assets;

(ii)        to
issue the REMIC I and REMIC III Regular Interests, the Class R-1,
Class R-2, Class R-3 and Class R-4 Residual Interests and the
Certificates;

(iii)       to make
distributions to the REMIC I and REMIC III Regular Interests and
the Certificates; and

(iv)       to
engage in such other activities, including entering into
agreements, as are described in or required by the terms of this
Agreement or as are necessary, suitable or convenient to accomplish
the foregoing or incidental thereto.

LaSalle
Bank National Association is hereby appointed as the trustee of the
Trust, to have all the rights, duties and obligations of the
Trustee with respect to the Trust expressly set forth hereunder,
and LaSalle Bank National Association hereby accepts such
appointment and the trust created hereby.  Christiana Bank
& Trust Company is hereby appointed as the Delaware trustee of
the Trust, to have all the rights, duties and obligations of the
Delaware Trustee with respect to the Trust hereunder, and
Christiana Bank & Trust Company hereby accepts such appointment
and the trust created hereby.  It is the intention of the
Company, the Servicer, the Trustee and the Delaware Trustee that
the Trust constitute a statutory trust under the Statutory Trust
Statute, that this Agreement constitute the governing instrument of
the Trust, and that this Agreement amend and restate the Original
Trust Agreement.  The parties hereto acknowledge and agree
that, prior to the execution and delivery hereof, the Delaware
Trustee has filed the Certificate of Trust.

The
assets of the Trust shall remain in the custody of the Trustee or
the Custodian, on behalf of the Trust, and shall be owned by the
Trust.  Moneys to the credit of the Trust shall be held by the
Trustee and invested as provided herein.  All assets received
and held by the Trust will not be subject to any right, charge,
security interest, lien or claim of any kind in favor of either of
the institution acting as Trustee or the institution acting as
Delaware Trustee in its own right, or any Person claiming through
either.  Neither the Trustee nor the Delaware Trustee shall
have the power or authority to transfer, assign, hypothecate,
pledge or otherwise dispose of any of the assets of the Trust to
any Person, except as permitted herein.  No creditor of a
beneficiary of the Trust, of the Trustee, of the Delaware Trustee,
of the Servicer or of the Company shall have any right to obtain
possession of, or otherwise exercise legal or equitable remedies
with respect to, the property of the Trust, except in accordance
with the terms of this Agreement.

Section
2.02.       
Restrictions on Activities of the
Trust. Notwithstanding any other provision of this
Agreement and any provision of law that otherwise so empowers the
Trust, so long as any Certificates are outstanding, the Trust shall
not, and none of the Trustee, the Delaware Trustee, the Company or
the Servicer shall knowingly cause the Trust to, do any of the
following:

(i)        
engage in any business or activity other than those set forth in
Section 2.01;

(ii)       
incur or assume any indebtedness except for such indebtedness that
may be incurred by the Trust in connection with the execution or
performance of this Agreement or any other agreement contemplated
hereby;

(iii)      
guarantee or otherwise assume liability for the debts of any other
party;

(iv)       do any
act in contravention of this Agreement or any other agreement
contemplated hereby to which the Trust is a party;

(v)        do
any act which would make it impossible to carry on the ordinary
business of the Trust;

(vi)       confess
a judgment against the Trust;

(vii)      possess or
assign the assets of the Trust for other than a Trust
purpose;

(viii)      cause the
Trust to lend any funds to any entity, except as contemplated by
this Agreement; or

(ix)       change
the purposes and powers of the Trust from those set forth in this
Agreement.

Section
2.03.       
Separateness Requirements.
Notwithstanding any other provision of this Agreement and any
provision of law that otherwise so empowers the Trust, so long as
any Certificates are outstanding, the Trust shall perform the
following:

(i)        
except as expressly permitted by this Agreement or the Custodial
Agreement, maintain its books, records, bank accounts and files
separate from those of any other Person;

(ii)       
except as expressly permitted by this Agreement, maintain its
assets in its own separate name and in such a manner that it is not
costly or difficult to segregate, identify, or ascertain such
assets;

(iii)      
consider the interests of the Trust's creditors in connection with
its actions;

(iv)       hold
itself out to creditors and the public as a legal entity separate
and distinct from any other Person and correct any known
misunderstanding regarding its separate identity and refrain from
engaging in any activity that compromises the separate legal
identity of the Trust;

(v)       
prepare and maintain separate records, accounts and financial
statements in accordance with generally accepted accounting
principles, consistently applied, and susceptible to audit. 
To the extent it is included in consolidated financial statements
or consolidated tax returns, such financial statements and tax
returns will reflect the separateness of the respective entities
and indicate that the assets of the Trust will not be available to
satisfy the debts of any other Person;

(vi)       allocate
and charge fairly and reasonably any overhead shared with any other
Person;

(vii)      transact all
business with affiliates on an arm's-length basis and pursuant to
written, enforceable agreements;

(viii)      conduct
business solely in the name of the Trust.  In that regard all
written and oral communications of the Trust, including, without
limitation, letters, invoices, purchase orders and contracts, shall
be made solely in the name of the Trust;

(ix)       maintain
a separate office through which its business shall be conducted,
provided that such office may be an office of the Trustee, which
office shall not be shared with the Company or any affiliates of
the Company;

(x)        in
the event that services have been or are in the future performed or
paid by any Person on behalf of the Trust (other than the Trustee,
the Delaware Trustee, the Servicer or the Tax Matters Person as
permitted herein), reimburse such Person, as applicable, for the
commercially reasonable value of such services or expenses provided
or incurred by such Person.  Accordingly, (i) the Trust shall
reimburse such Person, as applicable, for the commercially
reasonable value of such services or expenses provided or incurred
by such Person; (ii) to the extent invoices for such services are
not allocated and separately billed to the Trust, the amount
thereof that was or is to be allocated and separately billed to the
Trust was or will be reasonably related to the services provided to
the Trust; and (iii) any other allocation of direct, indirect or
overhead expenses for items shared between the Trust and any other
Person, was or will be, to the extent practicable, allocated on the
basis of actual use or value of services rendered or otherwise on a
basis reasonably related to actual use or the value of services
rendered;

(xi)       except
as expressly permitted by this Agreement, not commingle its assets
or funds with those of any other Person;

(xii)      except as
expressly permitted by this Agreement, not assume, guarantee, or
pay the debts or obligations of any other Person;

(xiii)      except as
expressly permitted by this Agreement, not pledge its assets for
the benefit of any other Person;

(xiv)    
not hold out its credit or assets as being available to satisfy the
obligations of others;

(xv)      pay its
liabilities only out of its funds;

(xvi)    
pay the salaries of its own employees, if any; and

(xvii)     cause the agents
and other representatives of the Trust, if any, to act at all times
with respect to the Trust consistently and in furtherance of the
foregoing.

None
of the Trustee, the Delaware Trustee, the Company or the Servicer
shall take any action that is inconsistent with the purposes of the
Trust or Section 2.02 or Section 2.03.  Neither the Company
nor the Servicer shall direct the Trustee or the Delaware Trustee
to take any action that is inconsistent with the purposes of the
Trust or Section 2.02 or Section 2.03.

Section
2.04.       
Conveyance of Mortgage Pool Assets; Security
Interest.

The
Company does hereby irrevocably sell, transfer, assign, set over
and otherwise convey to the Trust, without recourse, all the
Company’s right, title and interest in and to the Mortgage
Pool Assets. The Trust, as payment of the purchase price of the
Mortgage Pool Assets, shall, on the Closing Date, (i) issue the
REMIC I Regular Interests, the REMIC III Regular Interests, the
Class R-1 Residual Interest, the Class R-2 Residual Interest and
the Class R-3 Residual Interest to the Company and (ii) issue the
Group 3 Certificates to the Company or the Company’s designee
in Authorized Denominations. The REMIC I, REMIC II and REMIC III
Regular Interests and the Class R-1, Class R-2 and Class R-3
Residual Interests shall together be a separate series of
beneficial interests in the assets of the Trust consisting of the
Mortgage Pool Assets pursuant to Section 3806(b)(2) of the
Statutory Trust Statute.

It is
the express intent of the parties hereto that the conveyance of the
Mortgage Pool Assets to the Trust by the Company as provided in
this Section 2.04 be, and be construed as, an absolute sale of the
Mortgage Pool Assets. It is, further, not the intention of the
parties that such conveyance be deemed the grant of a security
interest in the Mortgage Pool Assets by the Company to the Trust to
secure a debt or other obligation of the Company. However, in the
event that, notwithstanding the intent of the parties, the Mortgage
Pool Assets are held to be the property of the Company, or if for
any other reason this Agreement is held or deemed to create a
security interest in the Mortgage Pool Assets, then

(a)       
this Agreement shall constitute a security agreement;

(b)        the
conveyance provided for in this Section 2.04 shall be deemed to be
a grant by the Company to the Trust of, and the Company hereby
grants to the Trust, to secure all of the Company’s
obligations hereunder, a security interest in all of the
Company’s right, title, and interest, whether now owned or
hereafter acquired, in and to:

(I)        The
Mortgage Pool Assets;

(II)       All
accounts, chattel paper, deposit accounts, documents, general
intangibles, goods, instruments, investment property,
letter-of-credit rights, letters of credit, money, and oil, gas,
and other minerals, consisting of, arising from, or relating to,
any of the foregoing; and

(III)      All
proceeds of the foregoing.

The
Company shall file such financing statements, and the Company, the
Servicer and the Trustee acting on behalf of the Trust at the
direction of the Company shall, to the extent consistent with this
Agreement, take such other actions as may be necessary to ensure
that, if this Agreement were found to create a security interest in
the Mortgage Pool Assets, such security interest would be a
perfected security interest of first priority under applicable law
and will be maintained as such throughout the term of the
Agreement. In connection herewith, the Trust shall have all of the
rights and remedies of a secured party under the Uniform Commercial
Code as in force in the relevant jurisdiction.

Section
2.05.       
Delivery of Mortgage
Files.

On the
Closing Date, the Company shall deliver to and deposit with, or
cause to be delivered to and deposited with, the Trustee or the
Initial Custodian the Mortgage Files, which shall at all times be
identified in the records of the Trustee or the Initial Custodian,
as applicable, as being held by or on behalf of the
Trust.

Concurrently with the execution and delivery
hereof, the Company shall cause to be filed with respect to each
Cooperative Loan the UCC assignment or amendment referred to in
clause (Y)(vii) of the definition of “Mortgage
File.”  In connection with its servicing of Cooperative
Loans, the Servicer shall use its best efforts to file timely
continuation statements, if necessary, with regard to each
financing statement relating to a Cooperative Loan.

The
Trustee is authorized, with the Servicer’s consent, to
appoint on behalf of the Trust any bank or trust company approved
by each of the Company and the Servicer as Custodian of the
documents or instruments referred to in this Section 2.05 or in
Section 2.12, and to enter into a Custodial Agreement for such
purpose; provided, however, that the Trustee shall be and
remain liable for the acts and omissions of any such Custodian to
the extent (and only to the extent) that it would have been liable
for such acts and omissions hereunder had such acts and omissions
been its own acts and omissions.  Any documents delivered by
the Company or the Servicer to the Custodian, if any, shall be
deemed to have been delivered to the Trustee for all purposes
hereunder; and any documents held by the Custodian, if any, shall
be deemed to be held by the Trustee for all purposes hereunder.
There shall be a written Custodial Agreement between the Trustee
and each Custodian. Each Custodial Agreement shall contain an
acknowledgment by the Custodian that all Mortgage Pool Assets,
Mortgage Files, and other documents and property held by it at any
time are held by it for the benefit of the Trust. Pursuant to the
Initial Custodial Agreement, the Initial Custodian shall perform
responsibilities of the Trustee on the Trustee’s behalf with
respect to the delivery, receipt, examination, custody and release
of the Mortgage Files related to the Mortgage Loans identified in
the Initial Custodial Agreement, as provided therein. The Trustee
shall not have any responsibility for the acts or omissions of the
Initial Custodian; provided, however, that nothing herein
shall relieve the Trustee from liability for its own negligent
action, its own negligent failure to act or its willful misconduct.
Each Custodial Agreement shall, if such reports are required to be
filed with the Commission as an exhibit to a Report on Form 10-K,
require the Custodian (i) if determined by the Servicer to be a
party participating in the servicing function within the meaning of
Item 1122 of Regulation AB, to deliver to the Servicer the report
on assessment of compliance with applicable servicing criteria and
the accounting firm’s attestation report described in Section
3.13(c) and (ii) if determined by the Servicer to meet the criteria
in Item 1108(a)(2)(i) through (iii) of Regulation AB, to deliver to
the Servicer the statement of compliance described in Section
3.13(e).

On or
promptly after the Closing Date, the Servicer shall cause the
MERS® System to indicate that each MERS Loan, if any, has been
assigned to the Trustee or to the Trust, by including in the
MERS® System computer files (a) the code necessary to identify
the Trustee and (b) the code necessary to identify the series of
the Certificates issued in connection with such Mortgage
Loans.  The Servicer shall not alter the codes referenced in
this paragraph with respect to any MERS Loan during the term of
this Agreement except in connection with an assignment of such MERS
Loan or de-registration thereof from the MERS® System in
accordance with the terms of this Agreement.

Section
2.06.       
REMIC Elections for REMIC I, REMIC II and
REMIC III.

The
Servicer shall, on behalf of each of REMIC I, REMIC II and REMIC
III, elect to treat such REMIC I, REMIC II or REMIC III as a REMIC
within the meaning of Section 860D of the Code and, if necessary,
under applicable state laws. Such election shall be included in the
Form 1066 and any appropriate state return to be filed on behalf of
each of REMIC I, REMIC II and REMIC III for its first taxable
year.

The
Closing Date is hereby designated as the “startup day”
of each of REMIC I, REMIC II and REMIC III within the meaning of
Section 860G(a)(9) of the Code.

The
regular interests (as set forth in the table contained in the
Preliminary Statement hereto) relating to REMIC I are hereby
designated as “regular interests” in REMIC I for
purposes of Section 860G(a)(1) of the Code. The Class R-1 Residual
Interest is hereby designated as the sole class of “residual
interest” in REMIC I for purposes of Section 860G(a)(2) of
the Code. The regular interests (as set forth in the table
contained in the Preliminary Statement hereto) relating to REMIC II
are hereby designated as “regular interests” in REMIC
II for purposes of Section 860G(a)(1) of the Code. The Class R-2
Residual Interest is hereby designated as the sole class of
“residual interest” in REMIC II for purposes of Section
860G(a)(2) of the Code. The regular interests (as set forth in the
table contained in the Preliminary Statement hereto) relating to
REMIC III are hereby designated as “regular interests”
in REMIC III for purposes of Section 860G(a)(1) of the Code. The
Class R-3 Residual Interest is hereby designated as the sole class
of “residual interest” in REMIC III for purposes of
Section 860G(a)(2) of the Code.

The
parties intend that the affairs of each of REMIC I, REMIC II and
REMIC III shall constitute, and that the affairs of each of REMIC
I, REMIC II and REMIC III shall be conducted so as to qualify each
of REMIC I, REMIC II and REMIC III as a REMIC. In furtherance of
such intention, the Servicer shall, on behalf of each of REMIC I,
REMIC II and REMIC III: (a) prepare and file, or cause to be
prepared and filed, a federal tax return using a calendar year as
the taxable year and using an accrual method of accounting for such
REMIC when and as required by the REMIC Provisions and other
applicable federal income tax laws; (b) make an election, on behalf
of the Trust, for each of REMIC I, REMIC II and REMIC III to be
treated as a REMIC on the federal tax return of such REMIC I, REMIC
II or REMIC III for its first taxable year, in accordance with the
REMIC Provisions; (c) prepare and forward, or cause to be prepared
and forwarded, to the Holders of the REMIC I, REMIC II and REMIC
III Regular Interests and the Class R-1, Class R-2 and Class R-3
Residual Interests and the Trustee, all information reports as and
when required to be provided to them in accordance with the REMIC
Provisions, and make available the information necessary for the
application of Section 860E(e) of the Code; (d) conduct the affairs
of REMIC I at all times that any REMIC I Regular Interests are
outstanding so as to maintain the status of REMIC I as a REMIC
under the REMIC Provisions, conduct the affairs of REMIC II at all
times that any REMIC II Regular Interests are outstanding so as to
maintain the status of REMIC II as a REMIC under the REMIC
Provisions and conduct the affairs of REMIC III at all times that
any REMIC III Regular Interests are outstanding so as to maintain
the status of REMIC III as a REMIC under the REMIC Provisions; (e)
not knowingly or intentionally take any action or omit to take any
action that would cause the termination of the REMIC status of
either REMIC I, REMIC II or REMIC III; and (f) pay the amount of
any federal prohibited transaction penalty taxes imposed on REMIC
I, REMIC II or REMIC III when and as the same shall be due and
payable (but such obligation shall not prevent the Servicer from
contesting any such tax in appropriate proceedings and shall not
prevent the Servicer from withholding payment of such tax, if
permitted by law, pending the outcome of such
proceedings).

The
Company and the Trustee shall promptly provide the Servicer with
such information in the possession of the Company or the Trustee,
respectively, as the Servicer may from time to time request for the
purpose of enabling the Servicer to prepare or cause the
preparation of tax returns.  If so requested by the Servicer,
the Trustee shall sign tax returns on behalf of the
REMICs.

In the
event that a Mortgage Loan is discovered to have a defect which,
had such defect been discovered before the startup day, would have
prevented such Mortgage Loan from being a “qualified
mortgage” within the meaning of Section 860G(a)(3) of the
Code, and the applicable Seller does not repurchase such Mortgage
Loan within 90 days of such date pursuant to Section 3.3 of the
Mortgage Loan Purchase Agreement, the Servicer, on behalf of the
Trust, shall within 90 days of the date such defect is discovered
sell such Mortgage Loan at such price as the Servicer, in its sole
discretion, determines to be the greatest price that will result in
the purchase thereof within 90 days of such date, unless the
Servicer delivers to the Trustee an Opinion of Counsel to the
effect that continuing to hold such Mortgage Loan will not
adversely affect the status of the electing portion of REMIC I,
REMIC II or REMIC III as a REMIC for federal income tax
purposes.

In the
event that the Servicer has paid any federal prohibited transaction
penalty taxes imposed on REMIC I, REMIC II or REMIC III pursuant to
clause (f) of the third preceding paragraph, the Trustee on behalf
of the Trust shall (unless the Servicer’s failure to exercise
reasonable care was the primary cause of the imposition of such
taxes) reimburse the Servicer or its agent, upon the written
request of the Servicer, for such payment from amounts on deposit
in the Certificate Account in reduction of the REMIC I Available
Distribution Amount, the REMIC II Available Distribution Amount or
the REMIC III Available Distribution Amount, as applicable, for the
applicable Distribution Date.  In the event that any federal
prohibited transaction penalty taxes are imposed on REMIC I, REMIC
II or REMIC III and not paid by the Servicer pursuant to clause (f)
of the third preceding paragraph, the Trustee on behalf of the
Trust shall pay such taxes from amounts on deposit in the
Certificate Account in reduction of the REMIC I Available
Distribution Amount, the REMIC II Available Distribution Amount or
the REMIC III Available Distribution Amount, as applicable, for the
applicable Distribution Date. The amount so reimbursed or paid
pursuant to either of the immediately preceding two sentences shall
be allocated as a loss to the Class R-1 Residual Interest, the
Class R-2 Residual Interest or the Class R-3 Residual Interest, as
applicable, in reduction of the Class Principal Balance
thereof.

Neither the Trustee nor the Tax Matters Person
shall knowingly or intentionally take any action that would cause
the termination of the REMIC status of REMIC I, REMIC II or REMIC
III.

Section
2.07.       
Acceptance by Trustee. The
Trustee acknowledges receipt (or with respect to any Mortgage Loan
subject to a Custodial Agreement, including the Initial Custodial
Agreement, receipt by the Custodian thereunder) on behalf of the
Trust of the documents referred to in Section 2.05 above, but
without having made the review required to be made within 45 days
pursuant to this Section 2.07. The Trustee acknowledges that all
Mortgage Pool Assets, Mortgage Files and related documents and
property held by it at any time are held by it as Trustee of the
Trust for the benefit of the holders of the Certificates. The
Trustee shall review (or cause the Initial Custodian to review)
each Mortgage File within 45 days after the Closing Date and
deliver to the Company a certification (or cause the Initial
Custodian to deliver to the Company and the Trustee a
certification, which satisfies the applicable requirements of this
Agreement; provided, however, that with respect to the
Initial Custodian, Exhibit B-2 to the Initial Custodial Agreement
is deemed to satisfy the applicable requirements of this Agreement)
in the form attached as Exhibit M hereto, to the effect that,
except as noted, all documents required (in the case of instruments
described in clauses (X)(ii), (X)(iv) and (Y)(ix) of the definition
of “Mortgage File,” known by the Trustee to be
required) pursuant to the definition of “Mortgage File”
and Section 2.05 have been executed and received, and that such
documents relate to the Mortgage Loans identified in the Mortgage
Loan Schedule. In performing such review, the Trustee may rely upon
the purported genuineness and due execution of any such document,
and on the purported genuineness of any signature thereon. The
Trustee shall not be required to make any independent examination
of any documents contained in each Mortgage File beyond the review
specifically required herein. The Trustee makes no representations
as to: (i) the validity, legality, enforceability or genuineness of
any of the Mortgage Loans identified on the Mortgage Loan Schedule,
or (ii) the collectability, insurability, effectiveness or
suitability of any Mortgage Loan.

If the Trustee finds any document or
documents required to be included in the Mortgage File for a
Mortgage Loan pursuant to the definition of “Mortgage
File” not to have been executed and received, the Trustee
shall promptly so notify the Servicer. An exception report
delivered by the Custodian to the Servicer pursuant to the
Custodial Agreement shall be deemed to constitute such notice. Upon
notice from the Trustee or the Custodian that any document required
to be included in the Mortgage File for a Mortgage Loan has not
been executed and received, the Servicer shall promptly notify the
applicable Seller of such defect and take appropriate steps on
behalf of the Trust to enforce such Seller’s obligation,
pursuant to Section 2.4 of the Mortgage Loan Purchase Agreement, to
correct or cure such defect or repurchase or substitute for such
Mortgage Loan, in accordance with and subject to the time
limitations set forth in such Section 2.4; provided,
however, that the Servicer shall not require or permit a Seller
to repurchase a Mortgage Loan pursuant to such Section 2.4 of the
Mortgage Loan Purchase Agreement more than two years after the
Closing Date unless (a) such defect would cause the Mortgage Loan
to be other than a “qualified mortgage” (as defined in
the Code), (b) such Mortgage Loan is in default, or default is in
the judgment of the Servicer reasonably imminent, or (c) the
Servicer, at the expense of the Seller, delivers to the Trustee an
Opinion of Counsel addressed to the Trust and the Trustee to the
effect that the repurchase of such Mortgage Loan will not give rise
to a tax on a prohibited transaction, as defined in Section 860F(a)
of the Code; provided, further, that in the event that such
defect consists solely of the failure of the applicable Seller to
deliver any Recording Document with respect to such Mortgage Loan,
due to a delay on the part of the recording office, then the
Servicer shall instead notify the applicable Seller of such defect
and take appropriate steps on behalf of the Trust to enforce such
Seller’s obligation, pursuant to Section 2.3 of the Mortgage
Loan Purchase Agreement, to comply with the procedure described in
such Section 2.3.

If a Seller is the Servicer, then the
Trustee may, but shall not be obligated to (or, if so directed by
Certificateholders holding Certificates which evidence Percentage
Interests aggregating not less than 25%, then the Trustee shall),
give the notification to such Seller and, if applicable, require
the repurchase or substitution by such Seller provided for in the
immediately preceding paragraph, in the event that any document
required to be included in the Mortgage File for a Mortgage Loan
sold by such Seller has not been executed and received.

In
connection with the enforcement of a Seller’s repurchase or
substitution obligation pursuant to Section 2.4 of the Mortgage
Loan Purchase Agreement, the Servicer and the Trustee shall comply
with the additional provisions set forth in Section 2.10
hereof.

Section
2.08.       
Representation and Warranty of the Company
Concerning the Mortgage Loans. The Company hereby
represents and warrants to the Trust that, immediately upon the
sale, transfer and assignment contemplated by Section 2.04, the
Trust shall have good title to, and will be the sole legal owner
of, each Mortgage Loan, free and clear of any encumbrance or lien,
other than (i) any lien arising before the Company’s purchase
of the Mortgage Loan from the Seller and (ii) any lien arising
under this Agreement.

The representation and warranty set forth in
this Section 2.08 shall survive delivery of the respective Mortgage
Files to the Trustee or the Custodian, as the case may be, and
shall continue throughout the term of this Agreement. Upon
discovery by any of the Company, the Servicer or the Trustee of a
breach of the foregoing representation and warranty which
materially and adversely affects the value of the related Mortgage
Loans or the interests of the Trust in the related Mortgage Loans,
the party discovering such breach shall give prompt written notice
to the others. Within 90 days of its discovery or its receipt of
notice of breach, the Company shall repurchase or substitute for
the affected Mortgage Loan or Mortgage Loans or any property
acquired in respect thereof by the Trust, unless it has cured such
breach in all material respects. Any such substitution shall be
made within the three-month period commencing on the Closing Date
(or within the two-year period commencing on the Closing Date if
the related Mortgage Loan is a “defective obligation”
within the meaning of Section 860G(a)(4)(B)(ii) of the Code and
Treasury Regulation Section 1.860G-2(f)). Any such repurchase shall
be made at the Repurchase Price; provided,
however, that no Mortgage Loan shall be repurchased
pursuant to this Section 2.08 unless (a) the Mortgage Loan to be
repurchased is in default, or default is in the judgment of the
Servicer reasonably imminent, or (b) the Servicer, at the expense
of the Company, delivers to the Trustee an Opinion of Counsel
addressed to the Trust and the Trustee to the effect that the
repurchase of such Mortgage Loan will not give rise to a tax on a
prohibited transaction, as defined in Section 860F(a) of the Code.
If such breach would cause the Mortgage Loan to be other than a
“qualified mortgage” (as defined in the Code), then
notwithstanding the previous sentence, the repurchase or
substitution must occur within the sooner of (i) 90 days from the
date the defect was discovered or (ii) in the case of substitution,
two years from the Closing Date.

Any
number of Substitute Mortgage Loans may be substituted for any
number of Reacquired Mortgage Loans, subject to the limitations
described in the next sentence. With respect to the Mortgage Loans
substituted on any date, (i) the aggregate Principal Balance of the
Substitute Mortgage Loans shall not exceed the aggregate Principal
Balance of the Reacquired Mortgage Loans, (ii) each Substitute
Mortgage Loan shall mature no later than, and not more than two
years before, the weighted average date of maturity of the
Reacquired Mortgage Loans, (iii) each Substitute Mortgage Loan
shall have a Current Loan-to-Value Ratio equal to or less than the
weighted average Current Loan-to-Value Ratio of the Reacquired
Mortgage Loans, (iv) each Substitute Mortgage Loan shall have a
Mortgage Interest Rate on the date of substitution equal to or no
more than 1 percentage point greater than the weighted average
Mortgage Interest Rate of the Reacquired Mortgage Loans, (v) if the
Reacquired Mortgage Loans do not provide for any payments of
principal during an initial period, each Substitute Mortgage Loan
also shall not provide for payments of principal during such
initial period and (vi) each Substitute Mortgage Loan shall (1)
have an initial Adjustment Date occurring on approximately the same
date as, but not earlier than, the weighted average initial
Adjustment Date of the Reacquired Mortgage Loans and interest rate
adjustments annually thereafter, (2) have a Mortgage Loan Margin,
Rate Ceiling and Rate Floor equal to or greater than the weighted
average Mortgage Loan Margin, Rate Ceiling and Rate Floor of the
Reacquired Mortgage Loans and (3) have the same terms (other than
the terms referenced in clauses (1) and (2) above) for adjusting
the Mortgage Interest Rate as the Reacquired Mortgage Loans. In
addition, a Substitute Mortgage Loan shall not be a High Cost Loan
or Covered Loan (as such terms are defined in the Standard &
Poor's LEVELS® Glossary in effect on the date of substitution,
with such exceptions thereto as the Company and S&P may
reasonably agree). A Substitute Mortgage Loan may be substituted
for a defective Mortgage Loan that is itself a Substitute Mortgage
Loan.

In
connection with the substitution of one or more Substitute Mortgage
Loans for one or more Reacquired Mortgage Loans on any date, the
Company shall pay to the Trust the Substitution Price for such
Reacquired Mortgage Loans, and such payment by the Company shall be
treated in the same manner as proceeds of the repurchase by the
Company of a Mortgage Loan pursuant to this Section
2.08.

With
respect to each Substitute Mortgage Loan, the Company shall (a)
deliver to and deposit with, or cause to be delivered to and
deposited with, the Trustee or the Custodian on behalf of the Trust
the Mortgage File for such Substitute Mortgage Loan and (b) cause
the Seller from which the Company acquired such Substitute Mortgage
Loan to enter into an agreement with the Trust and the Servicer
pursuant to which, with respect to such Substitute Mortgage Loan,
such Seller will (i) make, as of the date of substitution, each of
the representations and warranties that the applicable Seller made
pursuant to Section 3.1 of the Mortgage Loan Purchase Agreement
with respect to the original Mortgage Loan (except that references
to “Closing Date” or “Cut-off Date” in such
Section 3.1 shall be changed to the applicable date of
substitution), (ii) agree to deliver any missing Recording
Documents with respect to such Substitute Mortgage Loan, and to
repurchase or substitute for such Substitute Mortgage Loan in the
event of such Seller’s failure to deliver any document
required to be included in such Mortgage File or in the event of
such Seller’s material breach of any of such representations
and warranties, upon the same terms as the Seller’s
corresponding obligations with respect to the original Mortgage
Loan pursuant to Sections 2.3, 2.4 and 3.3 of the Mortgage Loan
Purchase Agreement, and (iii) convey such Substitute Mortgage Loan
to the Trust.

The
Company shall pay all costs and expenses incurred in connection
with any repurchase or substitution by the Company made pursuant to
this Section 2.08.

With respect to each Mortgage Loan
repurchased pursuant to this Section 2.08 and each Reacquired
Mortgage Loan, the Company shall own and be entitled to receive all
scheduled payments due after the date of repurchase or
substitution, as applicable, any Curtailments received in or after
the calendar month of repurchase or substitution, as applicable,
and any Payoffs received after the 14th day of the calendar month
of repurchase or substitution, as applicable; and with respect to
each Substitute Mortgage Loan, the Company shall own and be
entitled to receive all payments due under the related Mortgage
Note on or before the date of substitution. Any such payments
received by the Servicer shall promptly be remitted by the Servicer
to the Company. With respect to each Substitute Mortgage Loan, the
Trust shall own and be entitled to receive all scheduled payments
due after the date of substitution, any Curtailments received in or
after the calendar month of substitution, and any Payoffs received
after the 14th day of the calendar month of substitution. Any such
payments received by the Company shall promptly be remitted by the
Company to the Servicer.

In
connection with any repurchase or substitution by the Company made
pursuant to this Section 2.08, the Servicer and the Trustee (to the
extent of any obligations on its part) shall comply with the
additional provisions set forth in Section 2.10 hereof.

Section
2.09.       
Representations and Warranties of Each Seller
Concerning the Mortgage Loans. The Company hereby
assigns to the Trust all of its rights under the Mortgage Loan
Purchase Agreement, to the extent that the Mortgage Loan Purchase
Agreement relates to the Mortgage Loans.

Upon
discovery by any of the Company, the Servicer or the Trustee (in
the case of the Trustee, having actual knowledge thereof) of a
breach of any of the representations and warranties in respect of
the Mortgage Loan set forth in Section 3.1 of the Mortgage Loan
Purchase Agreement (in the case of a breach of the representation
set forth in clause (xxix) of such Section 3.1 thereof, determined
as specified in Section 3.3(b) thereof) that materially and
adversely affects the value of the related Mortgage Loans or the
interests of the Trust in the related Mortgage Loans, the party
discovering such breach shall give prompt written notice to the
others. Any breach of the representation set forth in clause
(xxvii) or clause (xxviii) of such Section 3.1 thereof shall be
deemed to materially and adversely affect the value of the related
Mortgage Loans or the interests of the Trust in the related
Mortgage Loans. The Servicer shall promptly notify the applicable
Seller of such breach and take appropriate steps on behalf of the
Trust to enforce such Seller’s obligation, pursuant to
Section 3.3 of the Mortgage Loan Purchase Agreement, to cure such
breach in all material respects or repurchase or substitute for the
affected Mortgage Loan or Mortgage Loans or any property acquired
in respect thereof, in accordance with and subject to the time
limitations set forth in such Section 3.3; provided,
however, that a Seller shall not be required or permitted to
repurchase a Mortgage Loan pursuant to such Section 3.3 thereof
unless (a) such defect would cause the Mortgage Loan to be other
than a “qualified mortgage” (as defined in the Code),
(b) such Mortgage Loan is in default, or default is in the judgment
of the Servicer reasonably imminent, or (c) the Servicer, at the
expense of the Seller, delivers to the Trustee an Opinion of
Counsel addressed to the Trust and the Trustee to the effect that
the purchase of such Mortgage Loan will not give rise to a tax on a
prohibited transaction, as defined in Section 860F(a) of the
Code.

If a Seller is the Servicer, then the
Trustee may, but shall not be obligated to (or, if so directed by
Certificateholders holding Certificates which evidence Percentage
Interests aggregating not less than 25%, then the Trustee shall),
give the notification to such Seller and, if applicable, require
the repurchase or substitution by such Seller provided for in the
immediately preceding paragraph, in the event of such a breach of a
representation or warranty made by such Seller.

In
connection with the enforcement of a Seller’s repurchase or
substitution obligation pursuant to Section 3.3 of the Mortgage
Loan Purchase Agreement, the Servicer and the Trustee shall comply
with the additional provisions set forth in Section 2.10
hereof.

Section
2.10.       
Additional Provisions Relating to Repurchases
of and Substitutions for Mortgage Loans by the Company or a
Seller.

The
Servicer shall deposit or cause to be deposited in the Custodial
Account for P&I (i) the Repurchase Price that it receives for
each Mortgage Loan repurchased by the Company pursuant to Section
2.08 hereof, (ii) the Substitution Price that it receives in
connection with each substitution for a Mortgage Loan by the
Company pursuant to such Section 2.08, (iii) the Repurchase Price
(as defined in the Mortgage Loan Purchase Agreement) that it
receives for each Mortgage Loan repurchased by a Seller pursuant to
Section 2.4 or 3.3 of the Mortgage Loan Purchase Agreement and (iv)
the Substitution Price (as defined in the Mortgage Loan Purchase
Agreement) that it receives in connection with each substitution
for a Mortgage Loan by a Seller pursuant to such Section 2.4 or 3.3
thereof.

Upon
receipt by the Trustee of written notification, signed by a
Servicing Officer, of the deposit in the Custodial Account for
P&I of the Repurchase Price or Substitution Price, as
applicable, and (in the case of a substitution for a Mortgage Loan)
upon receipt by the Trustee of such instruments of transfer or
assignment, in each case without recourse, as shall be necessary to
vest in the Trust title to any Substitute Mortgage Loan, the
Trustee shall (or, if applicable, shall cause the Custodian in
accordance with the Custodial Agreement to) on behalf of the Trust
release to the Company or such Seller, as applicable, or to such
person’s designee, the Mortgage File for such Mortgage Loan
and shall execute and deliver (or, in the event that the Mortgage
Files are held in the name of the Custodian, shall cause the
Custodian in accordance with the Custodial Agreement to execute and
deliver) on behalf of the Trust such instruments of transfer or
assignment, in each case without recourse, as shall be necessary to
vest in such person or its designee or assignee title to any such
Mortgage Loan. In furtherance of the foregoing, if such Mortgage
Loan is a MERS Loan and as a result of the repurchase thereof or
substitution therefor such Mortgage Loan shall cease to be serviced
by a servicer that is a member of MERS or if the Company or the
Seller, as applicable, or such person’s assignee, shall so
request, the Servicer shall cause MERS to execute and deliver an
assignment of the Mortgage in recordable form from MERS to such
person or its assignee and shall cause the Mortgage Loan to be
removed from registration on the MERS® System in accordance
with MERS’ rules and procedures.

It is
understood and agreed that the obligation of (a) a Seller, pursuant
to Section 2.4 of the Mortgage Loan Purchase Agreement, to
repurchase or substitute for any Mortgage Loan as to which a defect
in a constituent document exists, or (b) of a Seller or the
Company, as applicable, pursuant to Section 3.3 of the Mortgage
Loan Purchase Agreement or Section 2.8 hereof, to repurchase or
substitute for any Mortgage Loan as to which a breach has occurred
and is continuing, shall constitute the sole remedy respecting such
defect or breach available to the Trust or the Holders of the REMIC
interests or the Certificates issued hereunder or the Trustee on
behalf of such Holders.

Section
2.11.       
Acknowledgment of Transfer of Mortgage Pool
Assets. The Trustee hereby acknowledges and accepts
on behalf of the Trust the transfer and assignment pursuant to
Section 2.04 to the Trust of the Mortgage Pool Assets, but without
having made the review required to be made within 45 days pursuant
to Section 2.07, and declares that as of the Closing Date it (or
the Custodian on behalf of the Trustee) holds and shall hold any
documents constituting a part of the Mortgage Pool Assets, and the
Mortgage Pool Assets, as Trustee in trust, upon the trust herein
set forth, for the use and benefit of all present and future
Holders of the Certificates.

Section
2.12.       
Conveyance of REMIC IV Assets; Security
Interest.  The Company does hereby irrevocably
sell, transfer, assign, set over, and otherwise convey to the
Trust, without recourse, all the Company’s right, title and
interest in and to the REMIC IV Assets. The Trust, as payment of
the purchase price of the REMIC IV Assets, shall, on the Closing
Date, (i) issue the Class R-4 Residual Interest to the Company and
(ii) issue the Group 1 Certificates, the Group 2 Certificates, the
Group 4 Certificates, the Group 5 Certificates, the Group L-B
Certificates and the Group M-B Certificates to the Company or the
Company’s designee in Authorized Denominations. Pursuant to
Section 3818 of the Statutory Trust Statute, the REMIC I Regular
Interests and the REMIC III Regular Interests shall not be
cancelled and shall be held as treasury interests owned by the
Trust. The REMIC IV Regular Interests and the Class R-4 Residual
Interest shall together be a separate series of beneficial
interests in the assets of the Trust consisting of the REMIC IV
Assets pursuant to Section 3806(b)(2) of the Statutory Trust
Statute.

           
It is the express intent of the parties hereto that the conveyance
of the REMIC IV Assets to the Trust by the Company as provided in
this Section 2.12 be, and be construed as, an absolute sale of the
REMIC IV Assets. It is, further, not the intention of the parties
that such conveyance be deemed the grant of a security interest in
the REMIC IV Assets by the Company to the Trust to secure a debt or
other obligation of the Company. However, in the event that,
notwithstanding the intent of the parties, the REMIC IV Assets are
held to be the property of the Company, or if for any other reason
this Agreement is held or deemed to create a security interest in
the REMIC IV Assets, then

(a)       
this Agreement shall constitute a security agreement;

(b)        the
conveyance provided for in this Section 2.12 shall be deemed to be
a grant by the Company to the Trust of, and the Company hereby
grants to the Trust, to secure all of the Company’s
obligations hereunder, a security interest in all of the
Company’s right, title, and interest, whether now owned or
hereafter acquired, in and to:

(I)        The
REMIC IV Assets, including without limitation all rights
represented thereby in and to the Mortgage Pool Assets and the
proceeds thereof;

(II)       All
accounts, chattel paper, deposit accounts, documents, general
intangibles, goods, instruments, investment property,
letter-of-credit rights, letters of credit, money, and oil, gas,
and other minerals, consisting of, arising from, or relating to,
any of the foregoing; and

(III)      All
proceeds of the foregoing.

The
Company shall file such financing statements, and the Company, the
Servicer and the Trustee acting on behalf of the Trust at the
direction of the Company shall, to the extent consistent with this
Agreement, take such other actions as may be necessary to ensure
that, if this Agreement were found to create a security interest in
the REMIC IV Assets, such security interest would be a perfected
security interest of first priority under applicable law and will
be maintained as such throughout the term of this Agreement. In
connection herewith, the Trust shall have all of the rights and
remedies of a secured party under the Uniform Commercial Code as in
force in the relevant jurisdiction.

Section
2.13.       
REMIC Election for REMIC
IV.

The
Servicer shall, on behalf of REMIC IV, elect to treat REMIC IV as a
REMIC within the meaning of Section 860D of the Code and, if
necessary, under applicable state laws. Such election shall be
included in the Form 1066 and any appropriate state return to be
filed on behalf of REMIC IV for its first taxable year.

The
Closing Date is hereby designated as the “startup day”
of REMIC IV within the meaning of Section 860G(a)(9) of the
Code.

The
regular interests (as set forth in the table contained in the
Preliminary Statement hereto) relating to REMIC IV are hereby
designated as “regular interests” in REMIC IV for
purposes of Section 860G(a)(1) of the Code. The Class R-4 Residual
Interest is hereby designated as the sole class of “residual
interest” in REMIC IV for purposes of Section 860G(a)(2) of
the Code.

The
parties intend that the affairs of REMIC IV shall constitute, and
that the affairs of REMIC IV shall be conducted so as to qualify it
as, a REMIC. In furtherance of such intention, the Servicer shall,
on behalf of REMIC IV: (a) prepare and file, or cause to be
prepared and filed, a federal tax return using a calendar year as
the taxable year for REMIC IV when and as required by the REMIC
provisions and other applicable federal income tax laws; (b) make
an election, on behalf of REMIC IV, to be treated as a REMIC on the
federal tax return of REMIC IV for its first taxable year, in
accordance with the REMIC provisions; (c) prepare and forward, or
cause to be prepared and forwarded, to the Certificateholders all
information reports as and when required to be provided to them in
accordance with the REMIC provisions; (d) conduct the affairs of
REMIC IV at all times that any of the REMIC IV Regular Interests
are outstanding so as to maintain the status of REMIC IV as a REMIC
under the REMIC provisions; (e) not knowingly or intentionally take
any action or omit to take any action that would cause the
termination of the REMIC status of REMIC IV; and (f) pay the amount
of any federal prohibited transaction penalty taxes imposed on
REMIC IV when and as the same shall be due and payable (but such
obligation shall not prevent the Servicer or any other appropriate
person from contesting any such tax in appropriate proceedings and
shall not prevent the Servicer from withholding payment of such
tax, if permitted by law, pending the outcome of such
proceedings).

In the
event that the Servicer has paid any federal prohibited transaction
penalty taxes imposed on REMIC IV pursuant to clause (f) of the
immediately preceding paragraph, the Trustee on behalf of the Trust
shall (unless the Servicer’s failure to exercise reasonable
care was the primary cause of the imposition of such taxes)
reimburse the Servicer, upon the written request of the Servicer,
for such payment from amounts on deposit in the Certificate Account
in reduction of the REMIC IV Available Distribution Amount for the
applicable Distribution Date.  In the event that any federal
prohibited transaction penalty taxes are imposed on REMIC IV and
not paid by the Servicer pursuant to clause (f) of the immediately
preceding paragraph, the Trustee on behalf of the Trust shall pay
such taxes from amounts on deposit in the Certificate Account in
reduction of the REMIC IV Available Distribution Amount for the
applicable Distribution Date. The amount so reimbursed or paid
pursuant to either of the immediately preceding two sentences shall
be allocated as a loss to the Class R-4 Residual Interest, in
reduction of the Class Principal Balance thereof.

Neither the Trustee nor the Tax Matters Person
shall knowingly or intentionally take any action that would cause
the termination of the REMIC status of REMIC IV.

Section
2.14.       
Acknowledgement of Transfer of REMIC IV
Assets. The Trustee hereby acknowledges and accepts
on behalf of the Trust the assignment to the Trust pursuant to
Section 2.12 of the REMIC IV Assets and declares that as of the
Closing Date it holds and shall hold any documents constituting a
part of the REMIC IV Assets, and the REMIC IV Assets, as Trustee in
trust, upon the trust herein set forth, for the use and benefit of
all present and future Holders of the Certificates.

Section
2.15.       
Legal Title. Legal title to
all assets of the Trust shall be vested at all times in the Trust
as a separate legal entity.

Section
2.16.       
Compliance with ERISA
Requirements. For purposes of ensuring compliance
with the requirements of the “underwriter’s
exemption” (U.S. Department of Labor Prohibited Transaction
Exemption 2002-41, 67 Fed. Reg. 54487 (Aug. 22, 2002)), issued
under ERISA, and for the avoidance of any doubt as to the
applicability of other provisions of this Agreement, to the fullest
extent permitted by applicable law and except as contemplated by
this Agreement, the Trust shall not be a party to any merger,
consolidation or reorganization, or liquidate or sell its
assets.

Section
2.17.       
Additional Representation Concerning the
Mortgage Loans. Based on the applicable
Seller’s obligation, pursuant to Section 3.3 of the Mortgage
Loan Purchase Agreement, to repurchase or substitute for the
affected Mortgage Loan in the event of a breach of the
representation set forth in clauses (xxvii) or (xxviii) of such
Section 3.3 thereof, the parties hereto agree and understand that
it is not intended for the Mortgage Pool to include any Mortgage
Loan that is a “high-cost home loan” as defined under
the New Jersey Home Ownership Security Act of 2002, the New Mexico
Home Loan Protection Act, the Massachusetts Predatory Home Loan
Practices Act or the Indiana Home Loan Practices Act (Indiana Code,
Section 24-9 et seq.).

ARTICLE III

Administration and Servicing of Mortgage Loans

Section
3.01.       
The Servicer.  Washington
Mutual Bank shall act as Servicer to service and administer the
Mortgage Loans on behalf of the Trust in accordance with the terms
hereof, consistent with prudent mortgage loan servicing practices
and (unless inconsistent with prudent mortgage loan servicing
practices) in the same manner in which, and with the same care,
skill, prudence and diligence with which, it services and
administers similar mortgage loans for other portfolios, and shall
have full power and authority to do or cause to be done any and all
things in connection with such servicing and administration which a
prudent servicer of mortgage loans would do under similar
circumstances, including, without limitation, the power and
authority to bring actions and defend the Mortgage Pool Assets on
behalf of the Trust in order to enforce the terms of the Mortgage
Notes.  The Servicer may perform its servicing
responsibilities through subservicers or other agents or
independent contractors, but shall not thereby be released from any
of its responsibilities hereunder and the Servicer shall diligently
pursue all of its rights against such subservicers or other agents
or independent contractors; provided, however, that the
Servicer shall, if such reports are required to be filed with the
Commission as an exhibit to a Report on Form 10-K, (i) cause each
such party, if determined by the Servicer to be a party
participating in the servicing function within the meaning of Item
1122 of Regulation AB, to deliver to the Servicer the report on
assessment of compliance with applicable servicing criteria and the
accounting firm’s attestation report described in Section
3.13(c) and (ii) cause each such party, if determined by the
Servicer to meet the criteria in Item 1108(a)(2)(i) through (iii)
of Regulation AB, to deliver to the Servicer the statement of
compliance described in Section 3.13(e).

The
Servicer shall make reasonable efforts to collect or cause to be
collected all payments called for under the terms and provisions of
the Mortgage Loans and shall, to the extent such procedures shall
be consistent with this Agreement and the terms and provisions of
any Primary Insurance Policy, any FHA insurance policy or VA
guaranty, any hazard insurance policy, and federal flood insurance,
cause to be followed such collection procedures as are followed
with respect to mortgage loans comparable to the Mortgage Loans and
held in portfolios of responsible mortgage lenders in the local
areas where each Mortgaged Property is located. The Servicer shall
enforce “due-on-sale” clauses with respect to the
related Mortgage Loans, to the extent permitted by law, subject to
the provisions set forth in Section 3.08.

Consistent with the foregoing, the Servicer may,
in accordance with prudent mortgage loan servicing practices, (i)
waive or cause to be waived any assumption fee or late payment
charge in connection with the prepayment of any Mortgage Loan and
(ii) only upon determining that the coverage of any applicable
insurance policy or guaranty related to a Mortgage Loan will not be
materially adversely affected, arrange a schedule, running for no
more than 180 days after the first delinquent Due Date, for payment
of any delinquent installment on any Mortgage Note or for the
liquidation of delinquent items.

Consistent with the terms of this Section 3.01,
the Servicer may waive, modify or vary any term of any Mortgage
Loan or consent to the postponement of strict compliance with any
such term or in any manner grant indulgence to any Mortgagor if it
has determined, exercising its good faith business judgment in the
same manner as it would if it were the owner of the related
Mortgage Loan, that the security for, and the timely and full
collectability of, such Mortgage Loan would not be adversely
affected by such waiver, modification, postponement or indulgence;
provided, however, that (unless the Mortgagor is in default
with respect to the Mortgage Loan or in the reasonable judgment of
the Servicer such default is imminent) the Servicer shall not
permit any modification with respect to any Mortgage Loan that
would (i) change the applicable Mortgage Interest Rate, defer or
forgive the payment of any principal or interest, reduce the
outstanding principal balance (except for actual payments of
principal) or extend the final maturity date with respect to such
Mortgage Loan, or (ii) be inconsistent with the terms of any
applicable Primary Insurance Policy, FHA insurance policy, VA
guaranty, hazard insurance policy or federal flood insurance
policy. Notwithstanding the foregoing, the Servicer shall not
permit any modification with respect to any Mortgage Loan that
would both constitute a sale or exchange of such Mortgage Loan
within the meaning of Section 1001 of the Code (including any
proposed, temporary or final regulations promulgated thereunder)
(other than in connection with a proposed conveyance or assumption
of such Mortgage Loan that is treated as a Principal Prepayment or
in a default situation) and cause any REMIC to fail to qualify as
such under the Code. The Servicer shall be entitled to approve a
request from a Mortgagor for a partial release of the related
Mortgaged Property, the granting of an easement thereon in favor of
another Person, any alteration or demolition of the related
Mortgaged Property or other similar matters if it has determined,
exercising its good faith business judgment in the same manner as
it would if it were the owner of the related Mortgage Loan, that
the security for, and the timely and full collectability of, such
Mortgage Loan would not be adversely affected thereby and that
REMIC I, REMIC II, REMIC III and REMIC IV would not fail to
continue to qualify as REMICs under the Code as a result thereof
and that no tax on “prohibited transactions” or
“contributions” after the startup day would be imposed
on any REMIC as a result thereof.

The
Servicer is hereby authorized and empowered by the Trust to, and
shall, execute and deliver or cause to be executed and delivered on
behalf of the Holders of the Certificates, the Trustee and the
Trust or any of them, any and all instruments of satisfaction or
cancellation, or of partial or full release, discharge or
modification, assignments of Mortgages and endorsements of Mortgage
Notes in connection with refinancings (in jurisdictions where such
assignments are the customary and usual standard of practice of
mortgage lenders) and all other comparable instruments, with
respect to the Mortgage Loans and with respect to the Mortgaged
Properties. The Servicer is hereby further authorized and empowered
by the Trust to execute and deliver or cause to be executed and
delivered on behalf of the Holders of the Certificates, the Trustee
and the Trust, or any of them, such instruments of assignment or
other comparable instruments as the Servicer shall, in its sole
judgment, deem appropriate in order to register any Mortgage Loan
on the MERS® System or to cause the removal of any Mortgage
Loan from registration thereon. Any expenses incurred in connection
with the actions described in the preceding sentence shall be borne
by the Servicer with no right of reimbursement; provided,
however, that any such expenses incurred as a result of any
termination by MERS of the MERS® System shall be reimbursable
to the Servicer.  The Trustee on behalf of the Trust shall
execute and furnish to the Servicer, at the Servicer’s
direction, any powers of attorney and other documents prepared by
the Servicer and determined by the Servicer to be necessary or
appropriate to enable the Servicer to carry out its supervisory,
servicing and administrative duties under this
Agreement.

The
Servicer shall obtain (to the extent generally commercially
available) and maintain fidelity bond and errors and omissions
coverage acceptable to Fannie Mae or Freddie Mac with respect to
its obligations under this Agreement.  The Servicer shall
establish escrow accounts for, or pay when due (by means of an
advance), any tax liens in connection with the Mortgaged Properties
and premiums with respect to any insurance required to be
maintained by the Servicer under Section 3.06 and 3.07, to the
extent that such amounts are not paid by the Mortgagors when due
and to the extent that any such payment would not constitute a
Nonrecoverable Advance when made.

In
connection with the servicing and administering of each Mortgage
Loan, the Servicer and any affiliate of the Servicer (i) may
perform services such as appraisals, default management and (in the
case of affiliates only) brokerage services that are not
customarily provided by servicers of mortgage loans, and shall be
entitled to reasonable compensation therefor and (ii) may, at
its own discretion and on behalf of the Trust, obtain credit
information in the form of a “credit score” from a
credit repository.

Section
3.02.       
The Custodial Accounts for P&I and
Buydown Fund Accounts. The Servicer shall establish
and maintain the Custodial Accounts for P&I and shall deposit
or cause to be deposited therein within 48 hours of receipt the
following amounts received or advanced by the Servicer with respect
to the Mortgage Loans:

(i)        
all scheduled payments of principal;

(ii)       
all scheduled payments of interest, net of the Servicing Fees (to
the extent not applied to pay Compensating
Interest);

(iii)       all
Curtailments and Payoffs;

(iv)       all
Insurance Proceeds (except Insurance Proceeds required for the
restoration or repair of the related Mortgaged Property, which
shall be retained by the Servicer in an escrow account established
for such purpose and maintained in an Eligible Institution, and
which may, at the Servicer’s option, be invested in Eligible
Investments), Liquidation Proceeds, Excess Liquidation Proceeds and
Subsequent Recoveries; and

(v)        all
Repurchase Proceeds.

The
Servicer shall not be required to deposit or cause to be deposited
in the Custodial Accounts for P&I the additional servicing
compensation described in the second sentence of the definition of
“Servicing Fee.”

In the
event that Buydown Funds have been provided with respect to any
Mortgage Loan, the Servicer shall deposit such Buydown Funds in
Buydown Fund Accounts established and maintained by the
Servicer.

The
Servicer is hereby authorized to make withdrawals from and to issue
drafts against the Custodial Accounts for P&I and the Buydown
Fund Accounts for the purposes required or permitted by this
Agreement.

The
aggregate amount deposited in a Custodial Account for P&I on
any date pursuant to this Section 3.02 may be net of any amounts
permitted to be withdrawn by the Servicer from such account on such
date pursuant to Section 3.05.

The
Servicer hereby undertakes to assure remittance to the Certificate
Account of all amounts relating to the Mortgage Loans that have
been collected by the Servicer and that are due to the Certificate
Account pursuant to Section 3.04 of this Agreement.

Funds
held in the Custodial Account for P&I may, at the
Servicer’s option, be invested in (i) one or more Eligible
Investments which shall in no event mature later than the Business
Day prior to the Distribution Date on which such funds are required
to be distributed to pursuant to Article IV (except if such
Eligible Investments are obligations of the institution acting as
the Trustee, in which case such Eligible Investments may mature on
such Distribution Date), or (ii) such other investments as shall be
required to maintain the Ratings.

Section
3.03.       
The Investment Account; Eligible
Investments.

(a)        At
its option, the Servicer may invest funds withdrawn from the
Custodial Accounts for P&I or the Buydown Fund Accounts for its
own account and at its own risk, during any period prior to their
deposit in the Certificate Account pursuant to Section 3.04. Funds
so withdrawn shall immediately be deposited by the Servicer with
the Investment Depository in the Investment Account in the name of
the Servicer for investment only as set forth in this Section 3.03.
The Servicer shall bear any and all losses incurred on any
investments made with funds on deposit in the Investment Account
and shall be paid all gains realized on such investments (except
Payoff Earnings to the extent applied to pay Compensating Interest)
as additional servicing compensation.

(b)       
Funds held in the Investment Account shall be invested in (i) one
or more Eligible Investments which shall in no event mature later
than the Business Day prior to the Distribution Date on which such
funds are required to be distributed pursuant to Article IV (except
if such Eligible Investments are obligations of the institution
acting as the Trustee, in which case such Eligible Investments may
mature on such Distribution Date), or (ii) such other investments
as shall be required to maintain the Ratings.

Section
3.04.       
The Certificate Account.

(a)        On
or prior to the Closing Date, the Trustee shall establish or cause
to be established the Certificate Account. Promptly after the
Closing Date, the Trustee shall communicate to the Servicer the
account number and wiring instructions for the Certificate
Account.

(b)        Not
later than the Business Day prior to each Distribution Date, the
Servicer shall direct the Investment Depository to withdraw from
the Investment Account and deposit in the Certificate Account (or,
in the event any such amounts have not been deposited in the
Investment Account, the Servicer shall withdraw from the Custodial
Accounts for P&I or the Buydown Fund Accounts, as applicable,
and deposit in the Certificate Account) the following amounts (in
each case, net of any amounts that the Servicer is entitled to
withdraw from the Custodial Accounts for P&I pursuant to
Section 3.05(a)(i) through (v)):

(i)                 
Scheduled installments of principal and interest on the Mortgage
Loans received by the Servicer which were due on or before the
related Due Date;

(ii)               
Payoffs received by the Servicer during the related Payoff Period,
with interest to the date of Payoff;

(iii)              
Curtailments, Insurance Proceeds (except Insurance Proceeds
required for the restoration or repair of the related Mortgaged
Property), Liquidation Proceeds, Excess Liquidation Proceeds,
Subsequent Recoveries and Repurchase Proceeds received by the
Servicer during the Prior Period;

(iv)             
any Monthly P&I Advance required to be made by the Servicer for
such Distribution Date;

(v)               
amounts paid by the Servicer in connection with the exercise of its
option to terminate this Agreement pursuant to Section 9.01;
and

(vi)             
any other amounts required to be distributed from the Certificate
Account on such Distribution Date pursuant to Article IV (other
than amounts, if any, to be deposited in the Certificate Account by
the Trustee pursuant to clause (c) of this Section 3.04).

(c)       
[Reserved.]

(d)       
Funds held in the Certificate Account shall be invested at the
written direction of the Servicer in (i) one or more Eligible
Investments which shall in no event mature later than the Business
Day prior to the related Distribution Date (except if such Eligible
Investments are obligations of the institution acting as the
Trustee, such Eligible Investments may mature on the Distribution
Date), or (ii) such other instruments as shall be required to
maintain the Ratings.  The Servicer shall be entitled to be
paid as additional servicing compensation any gains earned on such
Eligible Investments and shall bear any losses suffered in
connection therewith.  If the Trustee has not received such
written investment directions from the Servicer, the Trustee shall
not invest funds held in the Certificate Account.  The Trustee
shall have no liability for any losses on investments of funds held
in the Certificate Account.

Section
3.05.       

Permitted Withdrawals from the Certificate
Account, the Investment Account, the Custodial Accounts for P&I 
and  the Buydown Fund
Accounts.

(a)       
The Servicer is authorized to make withdrawals
(or, in the case of the Certificate Account, to direct the Trustee
to make withdrawals), from time to time, from the Investment
Account, the Certificate Account or the Custodial Accounts for
P&I of amounts deposited therein, as follows:

(i)                 
To reimburse itself for  
the following amounts
advanced  by the
Servicer, 
to the extent that such amounts have not been
previously reimbursed or otherwise recovered by the
Servicer:  (a) Monthly P&I
Advances made pursuant to Section 4.02, (b) 
amounts advanced with respect to the
payment of taxes pursuant to the sixth paragraph of Section
3.01, (c) 
amounts advanced to maintain any required
insurance pursuant to Sections 3.06 and 3.07 and
(d) amounts expended by or for the account of
the Servicer pursuant to Section 3.09 in connection with
foreclosure or bankruptcy proceedings or the maintenance or
restoration of Mortgaged Properties,such right to
reimbursement pursuant to this paragraph (i) being limited to
amounts (including late Monthly Payments, Insurance Proceeds and
Liquidation Proceeds) received on the particular Mortgage Loan with
respect to which such advances were made;

(ii)               
To reimburse itself for  amounts 
advanced 
by the
Servicer that the Servicer has determined to be
Nonrecoverable Advances;

(iii)              
To pay to itself the sum of the Servicing Fees and any Payoff
Interest (net of Compensating Interest reduced by Payoff Earnings)
for the related Distribution Date;

(iv)             
To pay to itself the amount of any reinvestment earnings deposited
or earned in the Investment Account or the Certificate Account
(reduced by the lesser of Payoff Earnings and Compensating Interest
for the related Distribution Date);

(v)               
To reimburse itself or the Company for expenses incurred by and
reimbursable to it or the Company pursuant to Section 6.03;

(vi)             
To pay on behalf of the Trust any Special Primary Insurance Premium
payable by the Trust pursuant to Section 4.04(a); provided,
the Servicer shall give written notice thereof to the Trustee prior
to noon New York City time two Business Days prior to the
applicable Distribution Date;

(vii)            
To make any deposit, required or permitted hereunder, of withdrawn
funds to the Investment Account or the Certificate Account;
and

after making
or providing for the above withdrawals and after the withdrawals
described in Article IV have been made by the
Trustee

(viii)          
To clear and terminate the Investment Account and the Certificate
Account following termination of this Agreement pursuant to Section
9.01.

Since,
in connection with withdrawals pursuant to Section 3.05(a)(i), the
Servicer’s entitlement thereto is limited to collections or
other recoveries on the related Mortgage Loan, the Servicer shall
keep and maintain, separate accounting for each Mortgage Loan, for
the purpose of justifying any such withdrawals.

(b)        The
Servicer is authorized to make withdrawals, from time to time, of
Buydown Funds from the Buydown Fund Accounts or Custodial Accounts
for P&I (and, to the extent applicable, to make deposits of the
amounts withdrawn), as follows:

(ix)             
To deposit each month in the Investment Account or the Certificate
Account the amount necessary to supplement payments received on
Buydown Loans;

(x)               
In the event of a Payoff of any Mortgage Loan having a related
Buydown Fund, to apply amounts remaining in Buydown Fund Accounts
to reduce the required amount of such principal Payoff (or, if the
Mortgagor has made a Payoff, to refund such remaining Buydown Fund
amounts to the Person entitled thereto);

(xi)             
In the event of foreclosure or liquidation of any Mortgage Loan
having a Buydown Fund, to deposit remaining Buydown Fund amounts in
the Investment Account or the Certificate Account as Liquidation
Proceeds; and

(xii)            
To clear and terminate the portion of any account representing
Buydown Funds following termination of this Agreement pursuant to
Section 9.01.

(c)        The
Trustee is authorized to make withdrawals from time to time from
the Certificate Account to reimburse itself for advances it has
made as successor Servicer pursuant to Section 7.01(a) hereof that
it has determined to be Nonrecoverable Advances.

Section
3.06.       
Maintenance of Primary Insurance Policies;
Collections Thereunder. The Servicer shall use
commercially reasonable efforts to keep in full force and effect
each Primary Insurance Policy (except any Special Primary Insurance
Policy) required with respect to a Mortgage Loan until no longer
required, and the Servicer shall use commercially reasonable
efforts to keep in full force and effect each Special Primary
Insurance Policy, if any. Notwithstanding the foregoing, the
Servicer shall have no obligation to maintain any Primary Insurance
Policy for a Mortgage Loan for which the outstanding Principal
Balance thereof at any time subsequent to origination was 80% or
less of the Appraised Value of the related Mortgaged Property,
unless required by applicable law.

Unless
required by applicable law, the Servicer shall not cancel or refuse
to renew any Primary Insurance Policy in effect at the date of the
initial issuance of the Certificates that is required to be kept in
force hereunder; provided, however, that the Servicer shall
not advance funds for the payment of any premium due under (i) any
such Primary Insurance Policy (other than a Special Primary
Insurance Policy) if it shall determine that such an advance would
be a Nonrecoverable Advance or (ii) any Special Primary Insurance
Policy.

Section
3.07.       
Maintenance of Hazard
Insurance. The Servicer shall cause to be maintained
for each Mortgage Loan (other than a Cooperative Loan) hazard
insurance with extended coverage in an amount which is not less
than the original principal balance of such Mortgage Loan, except
in cases approved by the Servicer in which such amount exceeds the
value of the improvements to the Mortgaged Property. The Servicer
shall also require hazard insurance with extended coverage in a
comparable amount on property acquired upon foreclosure, or deed in
lieu of foreclosure, of any Mortgage Loan (other than a Cooperative
Loan). Any amounts collected under any such policies (other than
amounts to be applied to the restoration or repair of the related
Mortgaged Property) shall be deposited into the Custodial Account
for P&I, subject to withdrawal pursuant to Section 3.03 and
Section 3.05. Any unreimbursed costs incurred in maintaining any
insurance described in this Section 3.07 shall be recoverable as an
advance by the Servicer pursuant to Section 3.05(a). Such insurance
shall be with insurers approved by the Servicer or Fannie Mae or
Freddie Mac. Other additional insurance may be required of a
Mortgagor pursuant to such applicable laws and regulations as shall
at any time be in force and as shall require such additional
insurance. Where any part of any improvement to the Mortgaged
Property (other than a Mortgaged Property secured by a Cooperative
Loan) is located in a federally designated special flood hazard
area and in a community which participates in the National Flood
Insurance Program at the time of origination of the related
Mortgage Loan, the Servicer shall cause flood insurance to be
provided. The hazard insurance coverage required by this Section
3.07 may be met with blanket policies providing protection
equivalent to individual policies otherwise required.  The
Servicer agrees to present, or cause to be presented, on behalf of
and for the benefit of the Trust, claims under the hazard insurance
policy respecting any Mortgage Loan, and in this regard to take
such reasonable actions as shall be necessary to permit recovery
under such policy.

Section
3.08.       
Enforcement of Due-on-Sale Clauses;
Assumption Agreements. When any Mortgaged Property
is about to be conveyed by the Mortgagor, the Servicer shall, to
the extent it has knowledge of such prospective conveyance and
prior to the time of the consummation of such conveyance, exercise
on behalf of the Trust the Trust’s rights to accelerate the
maturity of such Mortgage Loan, to the extent that such
acceleration is permitted by the terms of the related Mortgage
Note, under any “due-on-sale” clause applicable
thereto; provided, however, that the Servicer shall not
exercise any such right if the due-on-sale clause, in the
reasonable belief of the Servicer, is not enforceable under
applicable law or if such exercise would result in non-coverage of
any resulting loss that would otherwise be covered under any
insurance policy. In the event the Servicer is prohibited from
exercising such right, the Servicer is authorized to take or enter
into an assumption and modification agreement from or with the
Person to whom a Mortgaged Property has been or is about to be
conveyed, pursuant to which such Person becomes liable under the
Mortgage Note and, unless prohibited by applicable state law or
unless the Mortgage Note contains a provision allowing a qualified
borrower to assume the Mortgage Note, the Mortgagor remains liable
thereon; provided that the Mortgage Loan shall continue to be
covered (if so covered before the Servicer enters such agreement)
by any related Primary Insurance Policy. The Servicer is also
authorized to enter into a substitution of liability agreement with
such Person, pursuant to which the original Mortgagor is released
from liability and such Person is substituted as Mortgagor and
becomes liable under the Mortgage Note.  The Servicer shall
not enter into any substitution or assumption with respect to a
Mortgage Loan if such substitution or assumption shall (i) both
constitute a “significant modification” effecting an
exchange or reissuance of such Mortgage Loan under the Code (or
Treasury regulations promulgated thereunder) and cause the REMICs
to fail to qualify as a REMIC under the REMIC Provisions or (ii)
cause the imposition of any tax on “prohibited
transactions” or “contributions” after the
startup day under the REMIC Provisions.  The Servicer shall
notify the Trustee that any such substitution or assumption
agreement has been completed by forwarding to the Trustee (or, if
applicable, the Custodian) the original copy of such substitution
or assumption agreement and other documents and instruments
constituting a part thereof. In connection with any such assumption
or substitution agreement, the terms of the related Mortgage Note
shall not be changed. Any fee collected by the Servicer for
entering into an assumption or substitution of liability agreement
shall be paid to the Servicer as additional servicing
compensation.

Notwithstanding the foregoing paragraph or any
other provision of this Agreement, the Servicer shall not be deemed
to be in default, breach or otherwise in violation of any of its
obligations hereunder by reason of any assumption of a Mortgage
Loan by operation of law or any assumption which the Servicer may
be restricted by law from preventing, for any reason
whatsoever.

Section
3.09.       
Realization Upon Defaulted Mortgage
Loans. The Servicer shall foreclose upon or
otherwise comparably convert, or cause to be foreclosed upon or
comparably converted, the ownership of any Mortgaged Property
securing a Mortgage Loan which comes into and continues in default
and as to which no satisfactory arrangements can be made for
collection of delinquent payments pursuant to Section 3.01. In lieu
of such foreclosure or other conversion, and taking into
consideration the desirability of maximizing net Liquidation
Proceeds and Insurance Proceeds, the Servicer may, to the extent
consistent with prudent mortgage loan servicing practices, accept a
payment of less than the outstanding Principal Balance of a
delinquent Mortgage Loan in full satisfaction of the indebtedness
evidenced by the related Mortgage Note and release the lien of the
related Mortgage upon receipt of such payment. The Servicer shall
not foreclose upon or otherwise comparably convert a Mortgaged
Property if the Servicer is aware of evidence of toxic waste, other
hazardous substances or other evidence of environmental
contamination thereon and the Servicer determines that it would be
imprudent to do so. In connection with such foreclosure or other
conversion, the Servicer shall cause to be followed such practices
and procedures as it shall deem necessary or advisable and as shall
be normal and usual in general mortgage servicing activities. The
Servicer shall be responsible for all costs and expenses incurred
by it in any such foreclosure proceedings or in any bankruptcy
proceedings with respect to a Mortgagor, and the costs and expenses
of maintaining or restoring any Mortgaged Property securing a
defaulted Mortgage Loan; provided, however, that it shall be
entitled to reimbursement thereof (as well as its normal servicing
compensation) as an advance. The foregoing is subject to the
provision that, in the case of damage to a Mortgaged Property from
an Uninsured Cause, the Servicer shall not advance funds towards
the restoration of the property unless it shall be determined, in
the sole judgment of the Servicer, (i) that such restoration will
increase the proceeds of liquidation of the Mortgage Loan to
Certificateholders after reimbursement to itself for such expenses,
and (ii) that such expenses will be recoverable to it through
Liquidation Proceeds. The Servicer shall maintain information
required for tax reporting purposes regarding any Mortgaged
Property which is abandoned or which has been foreclosed or
otherwise comparably converted. The Servicer shall report such
information to the Internal Revenue Service and the Mortgagor in
the manner required by applicable law.

The Servicer may enter into one or more
special servicing agreements with a Lowest Class B Owner, subject
to each Rating Agency’s acknowledgment that the Ratings of
the Certificates in effect immediately prior to the entering into
of such agreement would not be qualified, downgraded or withdrawn
and the Certificates would not be placed on credit review status
(except for possible upgrading) as a result of such
agreement.  Any such agreement may contain provisions whereby
such Lowest Class B Owner may (a) instruct the Servicer to commence
or delay foreclosure proceedings with respect to delinquent
Mortgage Loans, provided that the Lowest Class B Owner deposits a
specified amount of cash with the Servicer that will be available
for distribution to Certificateholders if Liquidation Proceeds are
less than they otherwise may have been had the Servicer acted
pursuant to its normal servicing procedures, (b) purchase such
delinquent Mortgage Loans from the Trust immediately prior to the
commencement of foreclosure proceedings at a price equal to the
aggregate outstanding Principal Balance of such Mortgage Loans plus
accrued interest thereon at the applicable Mortgage Interest Rate
through the last day of the month in which such Mortgage Loans are
purchased plus any unreimbursed advances made by the Servicer
hereunder; and/or (c) assume all of the servicing rights and
obligations with respect to such delinquent Mortgage Loans so long
as (i) the Servicer has the right to transfer the servicing rights
and obligations of such Mortgage Loans to another servicer and (ii)
such Lowest Class B Owner will service such Mortgage Loans in
accordance with the terms of this Agreement; provided,
however, that no such agreement will relieve the Servicer of
any of its obligations hereunder.

REMIC
I, REMIC II and REMIC III shall not acquire any real property (or
personal property incident to such real property) except in
connection with a default or imminent default of a Mortgage Loan.
In the event that REMIC I, REMIC II or REMIC III acquires any real
property (or personal property incident to such real property) in
connection with a default or imminent default of a Mortgage Loan,
such property shall be disposed of by the Servicer as soon as
practicable in a manner that, consistent with prudent mortgage loan
servicing practices, maximizes the net present value of the
recovery to the Trust, but in any event within three years after
its acquisition by REMIC I, REMIC II or REMIC III unless the
Servicer provides to the Trustee an Opinion of Counsel to the
effect that the holding by REMIC I, REMIC II or REMIC III of such
Mortgaged Property subsequent to three years after its acquisition
will not result in the imposition of taxes on “prohibited
transactions” of REMIC I, REMIC II or REMIC III as defined in
Section 860F of the Code or under the law of any state in which
real property securing a Mortgage Loan owned by REMIC I, REMIC II
or REMIC III is located or cause REMIC I, REMIC II or REMIC III to
fail to qualify as a REMIC for federal income tax purposes or for
state tax purposes under the laws of any state in which real
property securing a Mortgage Loan owned by REMIC I, REMIC II or
REMIC III is located at any time that any Certificates are
outstanding. The Servicer shall conserve, protect and operate each
such property for the Certificateholders solely for the purpose of
its prompt disposition and sale in a manner which does not cause
such property to fail to qualify as “foreclosure
property” within the meaning of Section 860G(a)(8) or result
in the receipt by the REMIC of any “income from non-permitted
assets” within the meaning of Section 860F(a)(2)(B) of the
Code or any “net income from foreclosure property”
which is subject to taxation under the REMIC Provisions. Pursuant
to its efforts to sell such property, the Servicer shall either
itself or through an agent selected by the Servicer protect and
conserve such property in the same manner and to such extent as is
customary in the locality where such property is located and may,
incident to its conservation and protection of the assets of the
Trust, rent the same, or any part thereof, as the Servicer deems to
be in the best interest of the Trust for the period prior to the
sale of such property. Additionally, the Servicer shall perform the
tax withholding and shall file information returns with respect to
the receipt of mortgage interests received in a trade or business,
the reports of foreclosures and abandonments of any Mortgaged
Property and the information returns relating to cancellation of
indebtedness income with respect to any Mortgaged Property required
by Sections 6050H, 6050J and 6050P, respectively, of the Code, and
deliver to the Trustee an Officers’ Certificate on or before
March 31 of each year stating that such reports have been
filed.  Such reports shall be in form and substance sufficient
to meet the reporting requirements imposed by Sections 6050H, 6050J
and 6050P of the Code.

Notwithstanding any other provision of this
Agreement, the Servicer and the Trustee, as applicable, shall
comply with all federal withholding requirements with respect to
payments to Certificateholders of interest or original issue
discount that the Servicer or the Trustee reasonably believes are
applicable under the Code.  The consent of Certificateholders
shall not be required for any such withholding.  Without
limiting the foregoing, the Servicer shall not withhold with
respect to payments of interest or original issue discount in the
case of a Certificateholder that has furnished or caused to be
furnished an effective Form W-8 or an acceptable substitute form or
a successor form and who is not a “10 percent
shareholder” within the meaning of Code Section 871(h)(3)(B)
or a “controlled foreign corporation” described in Code
Section 881(c)(3)(C) with respect to REMIC I, REMIC II, REMIC III,
REMIC IV or the Company.  In the event the Trustee withholds
any amount from interest or original issue discount payments or
advances thereof to any Certificateholder pursuant to federal
withholding requirements, the Trustee shall indicate the amount
withheld to such Certificateholder.

Section
3.10.       
Trustee to Cooperate; Release of Mortgage
Files. Upon the Payoff or payment at scheduled
maturity of any Mortgage Loan, the Servicer shall cause such final
payment to be deposited within 48 hours in the related Custodial
Account for P&I.  The Servicer shall promptly notify the
Trustee thereof by a certification (which certification shall
include a statement to the effect that all amounts received in
connection with such payment which are required to be deposited in
such account have been so deposited) of a Servicing Officer and
shall request delivery to it of the Mortgage File; provided,
however, that such certification shall not be required if the
Mortgage File is held by a Custodian which is also the Servicer of
the Mortgage Loan. Upon receipt of such certification and request,
the Trustee shall (or, if applicable, shall cause the Custodian in
accordance with the Custodial Agreement to), not later than the
fifth succeeding Business Day, release, or cause to be released,
the related Mortgage File to the Servicer. With any such Payoff or
other final payment, the Servicer is authorized (i) to prepare for
and procure from the trustee or mortgagee under the Mortgage which
secured the Mortgage Note a deed of full reconveyance or other form
of satisfaction or assignment of Mortgage and endorsement of
Mortgage Note in connection with a refinancing covering the
Mortgaged Property, which satisfaction, endorsed Mortgage Note or
assigning document shall be delivered by the Servicer to the person
or persons entitled thereto, and (ii) with respect to any Mortgage
Loan that is a MERS Loan, to cause the removal of such Mortgage
Loan from registration on the MERS® System. No expenses
incurred in connection with such satisfaction or assignment shall
be payable to the Servicer by the Trustee or from the Certificate
Account, the related Investment Account or the related Custodial
Account for P&I. From time to time as appropriate for the
servicing or foreclosure of any Mortgage Loan, including, for this
purpose, collection under any Primary Insurance Policy, the Trustee
shall (or, if applicable, shall cause the Custodian in accordance
with the Custodial Agreement to), upon request of the Servicer and
delivery to it of a trust receipt signed by a Servicing Officer,
release not later than the fifth Business Day following the date of
receipt of such request and trust receipt the related Mortgage File
to the Servicer and shall execute such documents as shall be
necessary to the prosecution of any such proceedings. Such trust
receipt shall obligate the Servicer to return the Mortgage File to
the Trustee (or, if applicable, the Custodian) when the need
therefor by the Servicer no longer exists, unless the Mortgage Loan
shall be liquidated, in which case, upon receipt of a certificate
of a Servicing Officer similar to that herein above specified, the
trust receipt shall be released by the Trustee to the Servicer.

Section
3.11.       
Compensation to the Servicer.
As compensation for its activities hereunder, the Servicer shall be
entitled to receive from the accounts listed in Section 3.05(a) the
amounts provided for by Section 3.05(a)(iii). In addition, the
Servicer shall be entitled to be paid, as additional servicing
compensation, (i) any prepayment penalty received on a Mortgage
Loan, and any late charges, nonsufficient funds fees and other fees
and charges collected on the Mortgage Loans, (ii) to the extent
provided in Section 3.03, all gains realized on investments of
funds held in the Investment Account and (iii) all gains realized
on investments of funds held in the Certificate Account. The
Servicer shall be required to pay all expenses incurred by it in
connection with its activities hereunder and shall not be entitled
to reimbursement therefor, except as specifically provided
herein.

Section
3.12.       
[Reserved.]

Section
3.13.       
Reports on Assessment of Compliance with
Servicing Criteria and Servicing Compliance
Statements. The Servicer shall, on or before the
90th day following each December 31 after the Cut-Off Date, deliver
to the Company and the Trustee, and, if required, file with the
Commission as an exhibit to a Report on Form 10-K filed on behalf
of the Trust, the following documents:

(a)        a
report on its assessment of compliance during the preceding
calendar year with all applicable servicing criteria set forth in
Item 1122(d) of Regulation AB with respect to asset-backed
securities transactions taken as a whole involving the Servicer
that are backed by assets of the same type as the Mortgage Loans,
as required by Item 1122 of Regulation AB;

(b)       
with respect to the assessment report described in clause (a)
above, a report by a registered public accounting firm that attests
to, and reports on, the assessment made by the Servicer, as
required by Item 1122 of Regulation AB;

(c)       
with respect to each subservicer or other agent or independent
contractor through which the Servicer performs any of its servicing
responsibilities hereunder and each Custodian, in each case, if
determined by the Servicer to be a party participating in the
servicing function within the meaning of Item 1122 of Regulation
AB, (i) a report prepared by such party on its assessment of
compliance during the preceding calendar year with all applicable
servicing criteria set forth in Item 1122(d) of Regulation AB with
respect to asset-backed securities transactions taken as a whole
involving such party that are backed by assets of the same type as
the Mortgage Loans and (ii) a report by a registered public
accounting firm that attests to, and reports on, such assessment,
each as required by Item 1122 of Regulation AB;

(d)        the
assessment report and public accounting firm’s attestation
report delivered by the Trustee under Section 8.18 (if required to
be delivered by the Trustee under such Section 8.18);
and

(e)        a
statement of compliance from the Servicer, and a similar statement
from each subservicer or other agent or independent contractor
through which the Servicer performs any of its servicing
responsibilities hereunder and from each Custodian, in each case,
if determined by the Servicer to meet the criteria in Item
1108(a)(2)(i) through (iii) of Regulation AB, as required by Item
1123 of Regulation AB, signed by an authorized officer, to the
effect that:

(i)        
a review of the Servicer’s (or, in the case of a statement
from any such other party, such other party’s) activities
during the preceding calendar year (or the applicable portion
thereof in the case of the initial statement) and of its
performance under this Agreement (or the servicing agreement
applicable to such other party) has been made under such
officer’s supervision; and

(ii)        to
the best of such officer’s knowledge, based on such review,
the Servicer (or such other party) has fulfilled all of its
obligations under this Agreement (or the servicing agreement
applicable to such other party) in all material respects throughout
the preceding calendar year (or the applicable portion thereof) or,
if there has been a failure to fulfill any such obligation in any
material respect, specifying each such failure known to such
officer and the nature and status thereof;

provided,
however, that the Servicer shall not be required to
deliver the documents described in clauses (c) and (d), and in
clause (e) with respect to any subservicer or other agent or
independent contractor, or any Custodian, if such reports are not
required to be filed with the Commission as an exhibit to a Report
on Form 10-K.

Copies of such reports and
statements shall be provided by the Servicer, or by the Trustee
(solely to the extent that such copies are available to the
Trustee) at the expense of the Servicer, to Certificateholders upon
request.

Section
3.14.       
Access to Certain Documentation and
Information Regarding the Mortgage Loans. In the
event that the Certificates are legal for investment by
federally-insured savings associations, the Servicer shall provide
to the OTS, the FDIC and the supervisory agents and examiners of
the OTS and the FDIC access to the documentation regarding the
related Mortgage Loans required by applicable regulations of the
OTS or the FDIC, as applicable, and shall in any event provide such
access to the documentation regarding such Mortgage Loans to the
Trustee and its representatives, such access being afforded without
charge, but only upon reasonable request and during normal business
hours at the offices of the Servicer designated by it.

ARTICLE IV

Payments to Certificateholders; Payment of Expenses

Section
4.01.       
Distributions to Holders of REMIC I Regular
Interests, REMIC III Regular Interests and Class R-1 Residual
Interest.  On each Distribution Date, the
Trustee (or any duly appointed paying agent) on behalf of the Trust
(i) shall be deemed to have distributed from the Certificate
Account the REMIC I Distribution Amount to the Holders of the REMIC
I Regular Interests, and to have deposited such amounts for their
benefit into the Certificate Account, (ii) from the Certificate
Account shall distribute to the Class R Certificateholders, in
accordance with the written statement received from the Servicer
pursuant to Section 4.02(b), the sum of (a) the Groups 1-2 Excess
Liquidation Proceeds and (b) the amounts to be distributed to the
Holders of the Class R-1 Residual Interest pursuant to the
definition of “REMIC I Distribution Amount” for such
Distribution Date, (iii) shall be deemed to have distributed from
the Certificate Account the REMIC III Distribution Amount to the
Holders of the REMIC III Regular Interests, and to have deposited
such amounts for their benefit into the Certificate Account and
(iv) from the Certificate Account shall distribute to the Class R
Certificateholders, in accordance with the written statement
received from the Servicer pursuant to Section 4.02(b), the sum of
(a) the Groups 4-5 Excess Liquidation Proceeds and (b) the amounts
to be distributed to the Holders of the Class R-3 Residual Interest
pursuant to the definition of “REMIC III Distribution
Amount” for such Distribution Date. Amounts distributed
pursuant to clauses (ii) and (iv) above shall be distributed by
wire transfer in immediately available funds for the account of
each Class R Certificateholder, or by any other means of payment
acceptable to each Class R Certificateholder of record on the
immediately preceding Record Date (other than as provided in
Section 9.01 respecting the final distribution), as specified by
each such Certificateholder and at the address of such Holder
appearing in the Certificate Register.  Notwithstanding any
other provision of this Agreement, no actual distributions pursuant
to clauses (i) or (iii) of this Section 4.01 shall be made on
account of the deemed distributions described in this paragraph
except in the event of a liquidation of REMIC IV and not REMIC I or
REMIC III.

Section
4.02.       
Monthly P&I Advances; Distribution Reports to the
Trustee.

(a)        To
the extent described below, the Servicer is obligated to advance
its own funds to the Custodial Account for P&I, or apply funds
held in the Custodial Account for P&I for future distribution,
to cover any shortfall between (i) Monthly Payments scheduled to be
received in respect of the Mortgage Loans and (ii) the amounts
actually received; provided that, with respect to any
Balloon Loan that is delinquent on its maturity date, the Servicer
will not be required to advance the related balloon payment but
will be required to continue to make advances in accordance with
this Section 4.02 with respect to such Balloon Loan in an amount
equal to one month’s interest on the unpaid principal balance
at the applicable Pass-Through Rate for each Distribution Date to
the extent the Servicer deems such amount to be recoverable. 
The Servicer’s obligation to make any advance or advances
described in this Section 4.02 is effective only to the extent that
such advance is, in the good faith judgment of the Servicer made
not later than the second Business Day prior to each Distribution
Date, reimbursable from Insurance Proceeds or Liquidation Proceeds
of the related Mortgage Loans or recoverable as late Monthly
Payments with respect to the related Mortgage Loans or
otherwise.

Prior
to the close of business on the second Business Day prior to each
Distribution Date, the Servicer shall determine whether or not it
will make a Monthly P&I Advance not later than the Business Day
prior to such Distribution Date and shall furnish a written
statement to the Trustee, the Paying Agent, if any, and to any
Certificateholder requesting the same, setting forth the aggregate
amount to be advanced on account of principal and interest in
respect of the Mortgage Loans, stated separately.

In the
event that the Servicer shall be required to make a Monthly P&I
Advance, it shall, not later than the Business Day prior to the
related Distribution Date either (i) deposit in the Custodial
Account for P&I an amount equal to such Monthly P&I
Advance, (ii) make an appropriate entry in the records of the
Custodial Account for P&I that funds in such account being held
for future distribution or withdrawal have been, as permitted by
this Section 4.02, used by the Servicer to make such Monthly
P&I Advance or (iii) make advances in the form of any
combination of (i) and (ii) aggregating the amount of such Monthly
P&I Advance.  Any funds being held for future distribution
and so used shall be replaced by the Servicer by deposit in the
Custodial Account for P&I not later than the Business Day prior
to any future Distribution Date to the extent that funds otherwise
available for distribution on such Distribution Date with respect
to the Mortgage Loans shall be less than payments required to be
made hereunder on such Distribution Date. 

(b)       
Prior to noon New York City time two Business Days prior to each
Distribution Date, the Servicer shall provide (x) the Trustee and
(y) the Company with a statement in writing of:

(A)       the
following information with respect to the
Certificates: 

(1) the total amount of (i) interest, (ii)
scheduled principal, (iii) Principal Prepayments, (iv) Liquidation
Proceeds and Insurance Proceeds, (v) Subsequent Recoveries and (vi)
Repurchase Proceeds to be distributed to the Certificates on such
Distribution Date;

(2) the amount, as applicable, of (i)
interest, (ii) principal, (iii) Excess Liquidation Proceeds and
(iv) the Residual Distribution Amount to be distributed to each
Class of Certificates on such Distribution Date;

(3) the amount of (i) Realized Losses (after
giving effect to any reduction thereof by application of any
Cumulative Carry-Forward Subsequent Recoveries Amount) and (ii)
Uncompensated Interest Shortfall to be allocated to each Class of
Certificates on such Distribution Date; and

(4) the applicable Class Principal Balance
before and after giving effect to such distributions and
allocations; and

(B)       the
following information with respect to the Mortgage
Loans:

(1)        the
number and aggregate Principal Balance of the Mortgage Loans before
and after giving effect to the distributions on such Distribution
Date. in each case, by Loan Group;

(2)        the
number and aggregate Principal Balance of the Mortgage Loans
delinquent one, two and three months or more, in each case, by Loan
Group;

(3)        the
number and aggregate Principal Balance of the Mortgage Loans with
respect to which foreclosure proceedings have been initiated, in
each case, by Loan Group;

(4)        the
number and aggregate Principal Balance of Mortgage Loans with
respect to which the related Mortgaged Properties have been
acquired through foreclosure, deed in lieu of foreclosure or
otherwise, in each case, by Loan Group; and

(5)        any
Monthly P&I Advance made by the Servicer for such Distribution
Date.

Section
4.03.       
Nonrecoverable Advances. Any
advance previously made by the Servicer that the Servicer shall
determine in its good faith judgment not to be ultimately
recoverable from Insurance Proceeds or Liquidation Proceeds or
otherwise with respect to such Mortgage Loan or recoverable as late
Monthly Payments with respect to such Mortgage Loan, and any such
advance which, if made, would not be so recoverable, shall be a
Nonrecoverable Advance.  The determination by the Servicer
that it has made a Nonrecoverable Advance or that any advance would
constitute a Nonrecoverable Advance shall be evidenced by an
Officer’s Certificate of the Servicer delivered to the
Trustee on the Determination Date and detailing the reasons for
such determination.  Notwithstanding any other provision of
this Agreement, any insurance policy relating to the Mortgage
Loans, or any other agreement relating to the Mortgage Loans to
which the Company or the Servicer is a party, (a) the Servicer
shall not be obligated to, and shall not, make any advance that,
after reasonable inquiry and in its sole discretion, the Servicer
shall determine would be a Nonrecoverable Advance and (b) the
Servicer shall be entitled to reimbursement for any advance as
provided in Section 3.05(a)(i) and (ii) of this Agreement.

Section
4.04.       
Distributions to Certificateholders; Payment
of Special Primary Insurance Premiums. 

(a)        On
each Distribution Date, the Trustee (or any duly appointed paying
agent) shall on behalf of the Trust (i) subject to Section
3.05(a)(vi), withdraw from the Certificate Account any Special
Primary Insurance Premium payable on such Distribution Date and pay
such amount to the insurer under the applicable Special Primary
Insurance Policy in accordance with the Servicer’s
instructions, (ii) withdraw from the Certificate Account the REMIC
II Available Distribution Amount for such Distribution Date and
distribute, from the amount so withdrawn, to the extent of the
REMIC II Available Distribution Amount, the REMIC II Distribution
Amount to the Group 3 Certificateholders and the Class R-2 Residual
Interest and (iii) withdraw from the Certificate Account the REMIC
IV Available Distribution Amount for such Distribution Date and
distribute, from the amount so withdrawn, to the extent of the
REMIC IV Available Distribution Amount, the REMIC IV Distribution
Amount to the Group 1, Group 2, Group 4, Group 5, Group L-B and
Group M-B Certificateholders and the Class R-4 Residual Interest,
all in accordance with the written statement received from the
Servicer pursuant to Section 4.02(b). Any Special Primary Insurance
Premiums distributed pursuant to clause (i) above shall be
distributed by any method specified in the respective Special
Primary Insurance Policy as directed by the related insurer to the
Servicer (and by the Servicer to the Trustee).  Amounts
distributed to the Certificateholders pursuant to clause (ii) or
(iii) above shall be distributed by wire transfer in immediately
available funds for the account of, or by check mailed to, each
such Certificateholder of record on the immediately preceding
Record Date (other than as provided in Section 9.01 respecting the
final distribution), as specified by each such Certificateholder
and at the address of such Holder appearing in the Certificate
Register. 

(b)        All
reductions in the Certificate Principal Balance of a Certificate
effected by distributions of principal and all allocations of
Realized Losses made on any Distribution Date shall be binding upon
all Holders of such Certificate and of any Certificate issued upon
the registration of transfer or exchange therefor or in lieu
thereof, whether or not such distribution is noted on such
Certificate. The final distribution of principal of each
Certificate (and the final distribution upon the Class R
Certificates upon (i) the termination of REMIC I, REMIC II, REMIC
III and REMIC IV and (ii) the payment, or making provision for
payment, of all liabilities of the Trust) shall be payable in the
manner provided above only upon presentation and surrender thereof
on or after the Distribution Date therefor at the office or agency
of the Certificate Registrar specified in the notice delivered
pursuant to Section 4.04(c)(ii) and Section 9.01(b).

(c)       
Whenever, on the basis of Curtailments, Payoffs and Monthly
Payments on the Mortgage Loans and Insurance Proceeds and
Liquidation Proceeds received and expected to be received during
the Payoff Period, the Servicer believes that the entire remaining
unpaid Class Principal Balance of any Class of Certificates will
become distributable on the next Distribution Date, the Servicer
shall so notify the Trustee no later than the 16th day of the month
of such Distribution Date, and the Trustee shall, upon receipt of
such notice, no later than the 18th day of the month of such
Distribution Date, mail or cause to be mailed to each Person in
whose name a Certificate to be so retired is registered at the
close of business on the Record Date and to the Rating Agencies a
notice to the effect that:

(i)                 
it is expected that funds sufficient to make such final
distribution will be available in the Certificate Account on such
Distribution Date, and

(ii)               
if such funds are available, (A) such final distribution will be
payable on such Distribution Date, but only upon presentation and
surrender of such Certificate at the office or agency of the
Certificate Registrar maintained for such purpose (the address of
which shall be set forth in such notice), and (B) no interest shall
accrue on such Certificate after such Distribution Date.

Section
4.05.       
Statements to
Certificateholders. With each distribution from the
Certificate Account on a Distribution Date, the Trustee shall make
available to each Rating Agency and each Certificateholder the
statement required by Section 4.02(b).  The Trustee may make
available such statement and certain other information, including,
without limitation, information required to be provided by the
Trustee pursuant to Section 3.13, to Certificateholders through the
Trustee’s Corporate Trust home page on the world wide web.
Such web page is currently located at
“www.etrustee.net”. The location of such web page and
the procedures used therein are subject to change from time to time
at the Trustee’s discretion.

Upon request by any Certificateholder, the
Servicer, as soon as reasonably practicable, shall provide the
requesting Certificateholder with such information as is necessary
and appropriate, in the Servicer’s sole discretion, for
purposes of satisfying applicable reporting requirements under Rule
144A of the Securities Act.

The Company or the Servicer may make
available any reports, statements or other information to
Certificateholders through a web page on the world wide web. As of
the Closing Date, such web page is located at
“www.wamumsc.com” and information is available by
clicking on “Investor Information.”

ARTICLE V

The Certificates

Section
5.01.       
The Certificates.

(a)        The
Certificates shall be substantially in the forms set forth in
Exhibit A and B with the additional insertion from Exhibit H
attached hereto, and shall be executed by the Trustee on behalf of
the Trust, authenticated by the Trustee (or any duly appointed
Authenticating Agent) and delivered (i) upon and pursuant to the
order of the Company and (ii) upon receipt by the Trustee of the
documents specified in Section 2.01. The Certificates shall be
issuable in Authorized Denominations. Certificates shall be
executed by manual or facsimile signature on behalf of the Trust by
authorized officers of the Trustee. Certificates bearing the manual
or facsimile signatures of individuals who were at the time of
execution the proper officers of the Trustee shall bind the Trust,
notwithstanding that such individuals or any of them have ceased to
hold such offices prior to the authentication and delivery of such
Certificates or did not hold such offices at the date of such
Certificates. No Certificate shall be entitled to any benefit under
this Agreement, or be valid for any purpose, unless there appears
on such Certificate a certificate of authentication substantially
in the form provided for herein executed by the Trustee or any
Authenticating Agent by manual signature, and such certificate upon
any Certificate shall be conclusive evidence, and the only
evidence, that such Certificate has been duly authenticated and
delivered hereunder. All Certificates shall be dated the date of
their authentication.

(b)        The
following definitions apply for purposes of this Section 5.01:
“Disqualified Organization” means any Person
which is not a Permitted Transferee, but does not include any
“Pass-Through Entity” which owns or holds a
Residual Certificate and of which a Disqualified Organization,
directly or indirectly, may be a stockholder, partner or
beneficiary; “Pass-Through Entity” means any regulated
investment company, real estate investment trust, common trust
fund, partnership, trust or estate, and any organization to which
Section 1381 of the Code applies; “Ownership
Interest” means, with respect to any Residual
Certificate, any ownership or security interest in such Residual
Certificate, including any interest in a Residual Certificate as
the Holder thereof and any other interest therein whether direct or
indirect, legal or beneficial, as owner or as pledgee;
“Transfer” means any direct or indirect transfer
or sale of, or directly or indirectly transferring or selling any
Ownership Interest in a Residual Certificate; and
“Transferee” means any Person who is acquiring
by Transfer any Ownership Interest in a Residual
Certificate.

(c)       
Restrictions on Transfers of the Residual Certificates to
Disqualified Organizations are set forth in this Section
5.01(c).

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

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

(B)       In
connection with any proposed Transfer of any Ownership Interest in
a Residual Certificate to a U.S. Person, the Trustee shall require
delivery to it, and shall not register the Transfer of any Residual
Certificate until its receipt of (1) an affidavit and agreement (a
“Transferee Affidavit and Agreement”) attached
hereto as Exhibit J from the proposed Transferee, in form and
substance satisfactory to the Company, representing and warranting,
among other things, that it is not a Non-U.S. Person, that such
transferee is a Permitted Transferee, that it is not acquiring its
Ownership Interest in the Residual Certificate that is the subject
of the proposed Transfer as a nominee, trustee or agent for any
Person who is not a Permitted Transferee, that for so long as it
retains its Ownership Interest in a Residual Certificate, it will
endeavor to remain a Permitted Transferee, and that it has reviewed
the provisions of this Section 5.01(c) and agrees to be bound by
them, and (2) a certificate, attached hereto as Exhibit I, from the
Holder wishing to transfer the Residual Certificate, in form and
substance satisfactory to the Company, representing and warranting,
among other things, that no purpose of the proposed Transfer is to
allow such Holder to impede the assessment or collection of
tax.

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

(D)       Each
Person holding or acquiring any Ownership Interest in a Residual
Certificate agrees by holding or acquiring such Ownership Interest
(i) to require a Transferee Affidavit and Agreement from any other
Person to whom such Person attempts to transfer its Ownership
Interest and to provide a certificate to the Trustee in the form
attached hereto as Exhibit J; (ii) to obtain the express written
consent of the Company prior to any transfer of such Ownership
Interest, which consent may be withheld in the Company’s sole
discretion; and (iii) to provide a certificate to the Trustee in
the form attached hereto as Exhibit I.

(ii)               
The Trustee shall register the Transfer of any Residual Certificate
only if it shall have received the Transferee Affidavit and
Agreement, a certificate of the Holder requesting such transfer in
the form attached hereto as Exhibit J and all of such other
documents as shall have been reasonably required by the Trustee as
a condition to such registration.

(iii)              
(A)       If any “disqualified
organization” (as defined in Section 860E(e)(5) of the Code)
shall become a holder of a Residual Certificate, then the last
preceding Permitted Transferee shall be restored, to the extent
permitted by law, to all rights and obligations as Holder thereof
retroactive to the date of registration of such Transfer of such
Residual Certificate. If any Non-U.S. Person shall become a holder
of a Residual Certificate, then the last preceding holder which is
a U.S. Person shall be restored, to the extent permitted by law, to
all rights and obligations as Holder thereof retroactive to the
date of registration of the Transfer to such Non-U.S. Person of
such Residual Certificate. If a transfer of a Residual Certificate
is disregarded pursuant to the provisions of Treasury Regulations
Section 1.860E-1 or Section 1.860G-3, then the last preceding
Permitted Transferee shall be restored, to the extent permitted by
law, to all rights and obligations as Holder thereof retroactive to
the date of registration of such Transfer of such Residual
Certificate. Neither the Trust nor the Trustee shall be under any
liability to any Person for any registration of Transfer of a
Residual Certificate that is in fact not permitted by this Section
5.01(c) or for making any payments due on such Certificate to the
holder thereof or for taking any other action with respect to such
holder under the provisions of this Agreement.

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

(iv)             
The Servicer shall make available, upon written request from the
Trustee, all information necessary to compute any tax imposed (A)
as a result of the Transfer of an Ownership Interest in a Residual
Certificate to any Person who is not a Permitted Transferee,
including the information regarding “excess inclusions”
of such Residual Certificates required to be provided to the
Internal Revenue Service and certain Persons as described in
Treasury Regulation Section 1.860D-1(b)(5), and (B) as a result of
any regulated investment company, real estate investment trust,
common trust fund, partnership, trust, estate or organizations
described in Section 1381 of the Code having as among its record
holders at any time any Person who is not a Permitted Transferee.
Reasonable compensation for providing such information may be
required by the Servicer from such Person.

(v)               
The provisions of this Section 5.01 set forth prior to this Section
(v) may be modified, added to or eliminated by the Company, the
Servicer and the Trustee, provided that there shall have been
delivered to the Trustee the following:

(A)       written
notification from each of the Rating Agencies to the effect that
the modification, addition to or elimination of such provisions
will not cause such Rating Agency to downgrade its then-current
Ratings of the Certificates; and

(B)       an
Opinion of Counsel, in form and substance satisfactory to the
Company (as evidenced by a certificate of the Company), to the
effect that such modification, addition to or absence of such
provisions will not cause REMIC I, REMIC II, REMIC III and REMIC IV
to cease to qualify as a REMIC and will not create a risk that (1)
REMIC I, REMIC II, REMIC III and REMIC IV may be subject to an
entity-level tax caused by the Transfer of any Residual Certificate
to a Person which is not a Permitted Transferee or (2) a
Certificateholder or another Person will be subject to a
REMIC-related tax caused by the Transfer of a Residual Certificate
to a Person which is not a Permitted Transferee.

(vi)             
The following legend shall appear on all Residual
Certificates:

ANY RESALE, TRANSFER OR OTHER
DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY IF THE PROPOSED
TRANSFEREE PROVIDES A TRANSFER AFFIDAVIT TO THE COMPANY AND THE
TRUSTEE THAT (1) SUCH TRANSFEREE IS NOT EITHER (A) THE UNITED
STATES, ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY FOREIGN
GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR
INSTRUMENTALITY OF ANY OF THE FOREGOING, (B) ANY ORGANIZATION
(OTHER THAN A COOPERATIVE DESCRIBED IN SECTION 521 OF THE CODE)
WHICH IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE
UNLESS SUCH ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION
511 OF THE CODE, (C) ANY ORGANIZATION DESCRIBED IN SECTION
1381(a)(2)(C) OF THE CODE (ANY SUCH PERSON DESCRIBED IN THE
FOREGOING CLAUSES (A), (B), OR (C) BEING HEREINAFTER REFERRED TO AS
A “DISQUALIFIED ORGANIZATION”), OR (D) AN AGENT OF A
DISQUALIFIED ORGANIZATION AND (2) NO PURPOSE OF SUCH TRANSFER IS TO
ENABLE THE TRANSFEROR TO IMPEDE THE ASSESSMENT OR COLLECTION OF
TAX. SUCH AFFIDAVIT SHALL INCLUDE CERTAIN REPRESENTATIONS AS TO THE
FINANCIAL CONDITION OF THE PROPOSED TRANSFEREE. NOTWITHSTANDING THE
REGISTRATION IN THE CERTIFICATE REGISTER OF ANY TRANSFER, SALE OR
OTHER DISPOSITION OF THIS CLASS R CERTIFICATE TO A DISQUALIFIED
ORGANIZATION OR AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH
REGISTRATION SHALL BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT
WHATSOEVER AND SUCH PERSON SHALL NOT BE DEEMED TO BE A
CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER, INCLUDING, BUT NOT
LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS CERTIFICATE. EACH
HOLDER OF THE CLASS R CERTIFICATE BY ACCEPTANCE OF THIS CERTIFICATE
SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS
PARAGRAPH.

(vii)            
The Tax Matters Person for each of REMIC I, REMIC II, REMIC III and
REMIC IV, while not a Disqualified Organization, shall be the tax
matters person for the related REMIC within the meaning of Section
6231(a)(7) of the Code and Treasury Regulation Section
1.860F-4(d).

(d)       
(1)        In the case of any
Residual Certificate presented for registration in the name of any
Person, the Trustee shall require (i) a Transferee Affidavit and
Agreement which includes the representation set forth in paragraph
19 of the form attached hereto as Exhibit J and (ii) only if the
representation set forth in such paragraph 19 indicates that a
Benefit Plan Opinion is delivered in connection therewith, a
Benefit Plan Opinion.

(2)        In
the case of any ERISA Super Restricted Certificate presented for
registration in the name of any Person, the prospective transferee
shall be required to provide the Trustee and the Company (A) an
officer’s certificate substantially in the form of Exhibit N
attached hereto acceptable to and in form and substance
satisfactory to the Trustee and the Company, which officer’s
certificate shall not be an expense of the Trust, the Trustee, the
Delaware Trustee, the Servicer or the Company, and (B) only if such
officer’s certificate indicates that a Benefit Plan Opinion
is delivered in connection therewith, a Benefit Plan
Opinion.

(e)        No
transfer, sale, pledge or other disposition of a Junior Subordinate
Certificate shall be made unless such transfer, sale, pledge or
other disposition is made in accordance with this Section 5.01(e)
or Section 5.01(f).  Each Person who, at any time, acquires
any ownership interest in any Junior Subordinate Certificate shall
be deemed by the acceptance or acquisition of such ownership
interest to have agreed to be bound by the following provisions of
this Section 5.01(e) and Section 5.01(f), as applicable. No
transfer of a Junior Subordinate Certificate shall be deemed to be
made in accordance with this Section 5.01(e) unless such transfer
is made pursuant to an effective registration statement under the
Securities Act or unless the Trustee is provided with the
certificates and an Opinion of Counsel, if required, on which the
Trustee may conclusively rely, to the effect that such transfer is
exempt from the registration requirements under the Securities Act,
as follows.  In the event that a transfer is to be made in
reliance upon an exemption from the Securities Act, the Trustee
shall require, in order to assure compliance with the Securities
Act, that the Certificateholder desiring to effect such transfer
certify to the Trustee and the Trust in writing, in substantially
the form attached hereto as Exhibit F, the facts surrounding the
transfer, with such modifications to such Exhibit F as may be
appropriate to reflect the actual facts of the proposed transfer,
and that the Certificateholder’s proposed transferee certify
to the Trustee and the Trust in writing, in substantially the form
attached hereto as Exhibit G, the facts surrounding the transfer,
with such modifications to such Exhibit G as may be appropriate to
reflect the actual facts of the proposed transfer. If such
certificate of the proposed transferee does not contain
substantially the substance of Exhibit G, the Trustee shall require
an Opinion of Counsel that such transfer may be made without
registration, which Opinion of Counsel shall not be obtained at the
expense of the Trustee, the Delaware Trustee, the Trust, the
Servicer or the Company. Such Opinion of Counsel shall allow for
the forwarding of, and the Trustee shall forward, a copy thereof to
the Rating Agencies. Notwithstanding the foregoing, any Junior
Subordinate Certificate may be transferred, sold, pledged or
otherwise disposed of in accordance with the requirements set forth
in Section 5.01(f).

(f)        
To effectuate a transfer of a Junior Subordinate Certificate in
accordance with this Section 5.01(f), the proposed transferee of
such Certificate must provide the Trustee and the Company with an
investment letter substantially in the form of Exhibit L attached
hereto, which investment letter shall not be an expense of the
Trust, the Trustee, the Delaware Trustee or the Company, and which
investment letter states that, among other things, such transferee
(i) is a “qualified institutional buyer” as defined
under Rule 144A, acting for its own account or the accounts of
other “qualified institutional buyers” as defined under
Rule 144A, and (ii) is aware that the proposed transferor intends
to rely on the exemption from registration requirements under the
Securities Act provided by Rule 144A. Notwithstanding the
foregoing, the proposed transferee of such Certificate shall not be
required to provide the Trustee or the Company with Annex 1 or
Annex 2 to the form of Exhibit L attached hereto if the Company so
consents prior to each such transfer. Such transfers shall be
deemed to have complied with the requirements of this Section
5.01(f). The Holder of a Certificate desiring to effect such
transfer does hereby agree to indemnify the Trust, the Trustee, the
Delaware Trustee, the Servicer, the Company, and the Certificate
Registrar against any liability that may result if transfer is not
made in accordance with this Agreement.

 (g)      
(1)        In the case of any
ERISA Restricted Certificate presented for registration in the name
of any Person, the prospective transferee shall be required to
provide the Trustee and the Company (A) an officer’s
certificate substantially in the form of Exhibit O attached hereto
acceptable to and in form and substance satisfactory to the Trustee
and the Company, which officer’s certificate shall not be an
expense of the Trust, the Servicer, the Trustee, the Delaware
Trustee or the Company, and (B) only if such officer’s
certificate indicates that a Benefit Plan Opinion is delivered in
connection therewith, a Benefit Plan Opinion.

(2)       
Notwithstanding the foregoing, a certification (and, if applicable,
a Benefit Plan Opinion) as described in Section 5.01(g)(1) above
will not be required with respect to the transfer of any ERISA
Restricted Certificate to a Clearing Agency, or for any subsequent
transfer of any interest in a ERISA Restricted Certificate for so
long as such Certificate is a Book-Entry Certificate (each such
ERISA Restricted Certificate, a “Book-Entry ERISA
Restricted Certificate”).  Any transferee of a
Book-Entry ERISA Restricted Certificate will be deemed to have
represented, by virtue of its acquisition or holding of such
Certificate (or interest therein), that either (i) such transferee
is not a Plan Investor, (ii) such transferee is a Complying
Insurance Company or (iii) such Certificate was rated
“BBB-” or better (or its equivalent) by at least one of
the Rating Agencies at the time of such transferee’s
acquisition of such Certificate (or interest therein).

(3)        If
any Book-Entry ERISA Restricted Certificate (or any interest
therein) is acquired or held in violation of the provisions of
Section 5.01(g)(2) above, then the last preceding transferee that
either (i) is not a Plan Investor, (ii) is a Complying Insurance
Company or (iii) acquired such Certificate at a time when such
Certificate was rated “BBB-” or better (or its
equivalent) by at least one of the Rating Agencies shall be
restored, to the extent permitted by law, to all rights and
obligations as Beneficial Holder thereof retroactive to the date of
transfer of such Certificate by such preceding transferee. 
Neither the Trust nor the Trustee shall be under any liability to
any Person for making any payments due on such Certificate to such
preceding transferee.

(4)        Any
purported Beneficial Holder whose acquisition or holding of any
Book-Entry ERISA Restricted Certificate (or interest therein) was
effected in violation of the restrictions in this Section 5.01(g)
shall indemnify and hold harmless the Company, the Trustee, the
Delaware Trustee, the Servicer, the Trust and each Underwriter from
and against any and all liabilities, claims, costs or expenses
incurred by such parties as a result of such acquisition or
holding.

Section
5.02.       
Certificates Issuable in Classes;
Distributions of Principal and Interest; Authorized
Denominations. The aggregate principal amount of the
Certificates that may be authenticated and delivered under this
Agreement is limited to the aggregate Principal Balance of the
Mortgage Loans as of the Cut-Off Date, as specified in the
Preliminary Statement to this Agreement, except for Certificates
authenticated and delivered upon registration of transfer of, or in
exchange for, or in lieu of, other Certificates pursuant to Section
5.03. Such aggregate principal amount shall be allocated among one
or more Classes having designations, types of interests, initial
per annum Certificate Interest Rates, initial Class Principal
Balances and Final Maturity Dates as specified in the Preliminary
Statement to this Agreement. The aggregate Percentage Interest of
each Class of Certificates of which the Class Principal Balance
equals zero as of the Cut-Off Date that may be authenticated and
delivered under this Agreement is limited to 100%. Certificates
shall be issued in Authorized Denominations.

Section
5.03.       
Registration of Transfer and Exchange of
Certificates. The Trustee on behalf of the Trust
shall cause to be maintained at one of its offices or at its
designated agent, a Certificate Register in which there shall be
recorded the name and address of each Certificateholder. Subject to
such reasonable rules and regulations as the Trustee may prescribe,
the Certificate Register shall be amended from time to time by the
Trustee or its agent to reflect notice of any changes received by
the Trustee or its agent pursuant to Section 10.06. The Trustee
hereby appoints itself as the initial Certificate Registrar.

Upon
surrender for registration of transfer of any Certificate to the
Trustee at the Corporate Trust Office of the Trustee, or such other
address or agency as may hereafter be provided to the Servicer in
writing by the Trustee, the Trustee on behalf of the Trust shall
execute, and the Trustee or any Authenticating Agent shall
authenticate and deliver, in the name of the designated transferee
or transferees, one or more new Certificates of Authorized
Denominations. At the option of the Certificateholders,
Certificates may be exchanged for other Certificates in Authorized
Denominations of like Certificate Principal Balance or Percentage
Interest, as applicable, upon surrender of the Certificates to be
exchanged at any such office or agency. Whenever any Certificates
are so surrendered for exchange, the Trustee on behalf of the Trust
shall execute, and the Trustee, or any Authenticating Agent, shall
authenticate and deliver, the Certificates which the
Certificateholder making the exchange is entitled to receive. Every
Certificate presented or surrendered for transfer shall be duly
endorsed by, or be accompanied by a written instrument of transfer
in form satisfactory to the Trustee or any Authenticating Agent and
duly executed by, the Holder thereof or such Holder’s
attorney duly authorized in writing.

A
reasonable service charge may be made for any such exchange or
transfer of Certificates, and the Trustee may require payment of a
sum sufficient to cover any tax or governmental charge that may be
imposed in connection with any exchange or transfer of
Certificates.

All
Certificates surrendered for exchange or transfer shall be
cancelled by the Trustee or any Authenticating Agent.

Section
5.04.       
Mutilated, Destroyed, Lost or Stolen
Certificates. If (i) any mutilated Certificate is
surrendered to the Trustee or any Authenticating Agent, or (ii) the
Trustee or any Authenticating Agent receives evidence to their
satisfaction of the destruction, loss or theft of any Certificate,
and there is delivered to the Trustee or any Authenticating Agent
such security or indemnity as may be required by them to save each
of them and the Trust harmless, then, in the absence of notice to
the Trustee or any Authenticating Agent that such Certificate has
been acquired by a protected purchaser, the Trustee on behalf of
the Trust shall execute and the Trustee or any Authenticating Agent
shall authenticate and deliver, in exchange for or in lieu of any
such mutilated, destroyed, lost or stolen Certificate, a new
Certificate of like Certificate Principal Balance or Percentage
Interest as applicable. Upon the issuance of any new Certificate
under this Section 5.04, the Trustee or any Authenticating Agent
may require the payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in relation thereto
and any other expenses (including the fees and expenses of the
Trustee or any Authenticating Agent) connected therewith. Any
replacement Certificate issued pursuant to this Section 5.04 shall
constitute complete and indefeasible evidence of a beneficial
interest in the Trust as if originally issued, whether or not the
lost or stolen Certificate shall be found at any time.

Section
5.05.       
Persons Deemed Owners. The
Company, the Servicer, the Trust, the Trustee, the Delaware Trustee
and any agent of any of them may treat the Person in whose name any
Certificate is registered as the owner of such Certificate for the
purpose of receiving distributions pursuant to Section 4.01 and
Section 4.04 and for all other purposes whatsoever, and none of the
Company, the Servicer, the Trust, the Trustee, the Delaware
Trustee, the Certificate Registrar or any agent thereof shall be
affected by notice to the contrary.

Section
5.06.       
[Reserved.]

Section
5.07.       
Book-Entry for Book-Entry
Certificates. Notwithstanding the foregoing, the
Book-Entry Certificates, upon original issuance, shall be issued in
the form of one or more word-processed Certificates of Authorized
Denomination representing the Book-Entry Certificates, to be
delivered to DTC, the initial Clearing Agency, by, or on behalf of,
the Company. The Book-Entry Certificates shall initially be
registered on the Certificate Register in the name of Cede &
Co., the nominee of DTC, as the initial Clearing Agency, and no
Beneficial Holder shall receive a definitive certificate
representing such Beneficial Holder’s interest in any Class
of Book-Entry Certificate, except as provided above and in Section
5.09. Each Book-Entry Certificate shall bear the following
legend:

Unless this Certificate is
presented by an authorized representative of The Depository Trust
Company, a New York corporation (“DTC”), to the
Trust or its agent for registration of transfer, exchange, or
payment, and any Certificate issued is registered in the name of
Cede & Co. or such other name as is requested by an authorized
representative of DTC (and any payment is made to Cede & Co. or
to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as
the registered owner hereof, Cede & Co., has an interest
herein.

Unless and until definitive, fully registered
Book-Entry Certificates (the “Definitive
Certificates”) have been issued to the Beneficial Holders
pursuant to Section 5.09:

(a)        the
provisions of this Section 5.07 shall be in full force and effect
with respect to the Book-Entry Certificates;

(b)        the
Servicer and the Trustee may deal with the Clearing Agency for all
purposes with respect to the Book-Entry Certificates (including the
making of distributions on the Book-Entry Certificates) as the sole
Certificateholder;

(c)        to
the extent that the provisions of this Section 5.07 conflict with
any other provisions of this Agreement, the provisions of this
Section 5.07 shall control; and

(d)        the
rights of the Beneficial Holders shall be exercised only through
the Clearing Agency and the DTC Participants and shall be limited
to those established by law and agreements between such Beneficial
Holders and the Clearing Agency and/or the DTC Participants.
Pursuant to the Depositary Agreement, unless and until Definitive
Certificates are issued pursuant to Section 5.09, the initial
Clearing Agency will make book-entry transfers among the DTC
Participants and receive and transmit distributions of principal
and interest on the related Class of Book-Entry Certificates to
such DTC Participants.

For
purposes of any provision of this Agreement requiring or permitting
actions with the consent of, or at the direction of, Holders of
Book-Entry Certificates evidencing a specified Percentage Interest,
such direction or consent may be given by the Clearing Agency at
the direction of Beneficial Holders owning Book-Entry Certificates
evidencing the requisite Percentage Interest represented by the
Book-Entry Certificates. The Clearing Agency may take conflicting
actions with respect to the Book-Entry Certificates to the extent
that such actions are taken on behalf of the Beneficial
Holders.

Section
5.08.       
Notices to Clearing Agency.
Whenever notice or other communication to the Certificateholders is
required under this Agreement, unless and until Definitive
Certificates shall have been issued to the related
Certificateholders pursuant to Section 5.09, the Trustee shall give
all such notices and communications specified herein to be given to
Holders of the Book-Entry Certificates to the Clearing Agency which
shall give such notices and communications to the related DTC
Participants in accordance with its applicable rules, regulations
and procedures.

Section
5.09.       
Definitive Certificates. If
(a) the Clearing Agency or the Servicer notifies the Trustee in
writing that the Clearing Agency is no longer willing or able to
discharge properly its responsibilities under the Depositary
Agreement with respect to the Book-Entry Certificates and the
Trustee or the Servicer is unable to locate a qualified successor,
(b) the Servicer, to the extent permitted by law, advises the
Trustee in writing that it elects to terminate the book-entry
system with respect to the Book-Entry Certificates through the
Clearing Agency or (c) after the occurrence of an Event of Default,
Certificateholders holding Book-Entry Certificates evidencing
Percentage Interests aggregating not less than 662⁄3% of the
aggregate Class Principal Balance of such Certificates advise the
Trustee and the Clearing Agency through DTC Participants in writing
that the continuation of a book-entry system with respect to the
Book-Entry Certificates through the Clearing Agency is no longer in
the best interests of the Certificateholders with respect to such
Certificates, the Trustee shall notify all Certificateholders of
Book-Entry Certificates of the occurrence of any such event and of
the availability of Definitive Certificates. Upon surrender to the
Trustee of the Book-Entry Certificates by the Clearing Agency,
accompanied by registration instructions from the Clearing Agency
for registration, the Trustee on behalf of the Trust shall execute
and the Trustee or any Authenticating Agent shall authenticate and
deliver the Definitive Certificates. Neither the Company, the
Servicer, the Trust nor the Trustee shall be liable for any delay
in delivery of such instructions and may conclusively rely on, and
shall be protected in relying on, such instructions. Upon the
issuance of Definitive Certificates for all of the Certificates all
references herein to obligations imposed upon or to be performed by
the Clearing Agency shall be deemed to be imposed upon and
performed by the Trustee, to the extent applicable with respect to
such Definitive Certificates, and the Trustee shall recognize the
Holders of Definitive Certificates as Certificateholders
hereunder.

Section
5.10.       
Office for Transfer of
Certificates. The Trustee on behalf of the Trust
shall maintain an office or agency where Certificates may be
surrendered for registration of transfer or exchange. The Corporate
Trust Office is initially designated for said purposes.

Section
5.11.       
Nature of Certificates. The
Certificates shall be personal property giving only the rights
specifically set forth therein and in this Agreement.  The
Certificates shall have no preemptive or similar rights and when
issued and delivered to the Holders against payment of the purchase
price therefor will be fully paid and nonassessable by the
Trust.  The Holders of the Certificates, in their capacities
as such, shall be entitled to the same limitation of personal
liability extended to stockholders of private corporations for
profit organized under the General Corporation Law of the State of
Delaware. THE RECEIPT AND ACCEPTANCE OF A CERTIFICATE OR ANY
INTEREST THEREIN BY OR ON BEHALF OF A HOLDER OR ANY BENEFICIAL
OWNER, WITHOUT ANY SIGNATURE OR FURTHER MANIFESTATION OF ASSENT,
SHALL CONSTITUTE THE UNCONDITIONAL ACCEPTANCE BY THE HOLDER AND ALL
OTHERS HAVING A BENEFICIAL INTEREST IN SUCH CERTIFICATE OF ALL THE
TERMS AND PROVISIONS OF THIS AGREEMENT, AND SHALL CONSTITUTE THE
AGREEMENT OF THE TRUST, SUCH HOLDER AND SUCH OTHERS THAT THE TERMS
AND PROVISIONS OF THIS AGREEMENT SHALL BE BINDING, OPERATIVE AND
EFFECTIVE AS BETWEEN THE TRUST AND SUCH HOLDER AND SUCH OTHERS.

ARTICLE VI

The Company and the Servicer

Section
6.01.       
Liability of the Company and the
Servicer. Each of the Company and the Servicer shall
be liable in accordance herewith only to the extent of the
obligations specifically imposed upon and undertaken by the Company
or the Servicer, as applicable, herein.

Section
6.02.       
Merger or Consolidation of the Company or the
Servicer. Any Corporation into which either the
Company or the Servicer may be merged or consolidated, or any
Corporation resulting from any merger, conversion or consolidation
to which either the Company or the Servicer shall be a party, or
any Corporation succeeding to the business of either the Company or
the Servicer, shall be the successor of the Company or the
Servicer, as applicable, hereunder, without the execution or filing
of any paper or any further act on the part of any of the parties
hereto, anything herein to the contrary notwithstanding.

Section
6.03.       
Limitation on Liability of the Company, the
Servicer and Others. Neither the Company nor the
Servicer nor any of the directors, officers, employees or agents of
the Company or the Servicer shall be under any liability to the
Trust, the Holders of the REMIC I, REMIC II, REMIC III or REMIC IV
Regular Interests or the Certificateholders for any action taken by
such Person or for such Person’s refraining from the taking
of any action in good faith pursuant to this Agreement, or for
errors in judgment; provided, however, that this provision
shall not protect the Company, the Servicer or any such Person
against any liability which would otherwise be imposed by reason of
willful misfeasance, bad faith or gross negligence in the
performance of duties or by reason of reckless disregard of duties
and obligations hereunder. Each of the Company, the Servicer and
any director, officer, employee or agent of the Company or the
Servicer, as applicable, may rely in good faith on any document of
any kind properly executed and submitted by any Person respecting
any matters arising hereunder. Each of the Company, the Servicer
and any director, officer, employee or agent of the Company or the
Servicer, as applicable, shall be indemnified by the Trust and held
harmless against any loss, liability or expense incurred in
connection with any legal action relating to this Agreement or the
Certificates, other than any loss, liability or expense relating to
any Mortgage Loan (other than as otherwise permitted in this
Agreement) or incurred by reason of willful misfeasance, bad faith
or gross negligence in the performance of duties hereunder or by
reason of reckless disregard of obligations and duties hereunder.
Neither the Company nor the Servicer shall be under any obligation
to appear in, prosecute or defend any legal action which is not
incidental to its duties related to the Mortgage Loans in
accordance with this Agreement and which in its opinion may involve
it in any expense or liability; provided, however, that each
of the Company and the Servicer may in its discretion undertake any
such action which it may deem necessary or desirable with respect
to the Mortgage Loans, this Agreement, the Certificates or the
rights and duties of the parties hereto and the interests of the
Certificateholders hereunder. In such event, the legal expenses and
costs of such action and any liability resulting therefrom shall be
expenses, costs and liabilities of the Trust and the Company and
the Servicer shall be entitled to be reimbursed, as applicable,
therefor out of the Certificate Account, as provided by
Section 3.05.

Section
6.04.       
Neither the Company nor the Servicer May
Resign. Neither the Company nor the Servicer shall
resign from its respective obligations and duties hereby imposed on
it, as applicable, except upon determination by the Company or the
Servicer that its respective duties hereunder are no longer
permissible under applicable law.  Any such determination
permitting the resignation of the Company or the Servicer shall be
evidenced by an Opinion of Counsel to such effect delivered to the
Trustee. No such resignation shall become effective until the
Trustee or a successor Servicer shall have assumed the
Servicer’s responsibilities and obligations in accordance
with Section 7.02 hereof.

The
Servicer shall give prompt written notice to the Company of any
information received by the Servicer which affects or relates to an
ongoing obligation or right of the Company under this
Agreement.

Section
6.05.       
Trustee Access. The Servicer shall afford the Company and the
Trustee, upon reasonable notice, during normal business hours
access to all records maintained by the Servicer, in respect of the
Mortgage Loans and in respect of its rights and obligations
hereunder and access to such of its officers as are responsible for
such obligations.  Upon reasonable request, the Servicer,
shall furnish the Company and the Trustee with its most recent
financial statements (or, for so long as Washington Mutual Bank is
the Servicer, the most recent consolidated financial statements for
Washington Mutual Bank appearing in the audited financial
statements of Washington Mutual, Inc., or the entity with whose
financial statements the financial statements of Washington Mutual
Bank are consolidated) and such other information as it possesses,
and which it is not prohibited by law or, to the extent applicable,
binding obligations to third parties with respect to
confidentiality, from disclosing, regarding its business, affairs,
property and condition, financial or otherwise.

ARTICLE VII

Default

Section
7.01.       
Events of Default. (a) In case
one or more of the following Events of Default by the Servicer
shall occur and be continuing, that is to say:

(i)                 
Any failure by the Servicer to deposit into the Certificate Account
any payment required to be deposited therein by the Servicer under
the terms of this Agreement which continues unremedied for a period
of five Business Days after the date upon which written notice of
such failure, requiring the same to be remedied, shall have been
given to the Servicer by the Trustee or to the Servicer and the
Trustee by the Holders of Certificates evidencing Percentage
Interests aggregating not less than 25%; or

(ii)               
Failure on the part of the Servicer duly to observe or perform in
any material respect any other of the covenants or agreements on
the part of the Servicer contained in the Certificates or in this
Agreement which continues unremedied for a period of 60 days after
the date on which written notice of such failure, requiring the
same to be remedied, shall have been given to the Servicer by the
Trustee, or to the Servicer and the Trustee by the Holders of
Certificates evidencing Percentage Interests aggregating not less
than 25%; or

(iii)              
A decree or order of a court or agency or supervisory authority
having jurisdiction in the premises for the appointment of a
trustee, conservator, receiver or liquidator in any bankruptcy,
insolvency, readjustment of debt, marshalling of assets and
liabilities or similar proceedings, or for the winding‐up or
liquidation of its affairs, shall have been entered against the
Servicer and such decree or order shall have remained in force
undischarged or unstayed for a period of 60 days; or

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

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

(vi)             
Any failure of the Servicer to make any Monthly P&I Advance
(other than a Nonrecoverable Advance) which continues unremedied at
the opening of business on the Distribution Date in respect of
which such Monthly P&I Advance was to have been made;

then, and in each and every such case, so long as
an Event of Default shall not have been remedied, either the
Trustee or the Holders of Certificates evidencing Percentage
Interests aggregating not less than 25%, by notice in writing to
the Company and the Servicer (and to the Trustee if given by the
Certificateholders, in which case such notice shall set forth
evidence reasonably satisfactory to the Trustee that such Event of
Default has occurred and shall not have been remedied) may
terminate all of the rights (other than its right to reimbursement
for advances) and obligations of the Servicer, including its right
to the Servicing Fee, under this Agreement. Such termination shall
be final and binding. On or after the receipt by the Servicer of
such written notice, all authority and power of the Servicer under
this Agreement, whether with respect to the Certificates or the
Mortgage Loans or otherwise, shall pass to and be vested in the
Trustee pursuant to and under this Section 7.01; and, without
limitation, the Trustee is hereby authorized and empowered to
execute and deliver, on behalf of the Servicer, as
attorney‐in‐fact or otherwise, any and all documents
and other instruments, and to do or accomplish all other acts or
things necessary or appropriate to effect the purposes of such
notice of termination, whether to complete the transfer and
endorsement or assignment of the Mortgage Loans and related
documents, or otherwise. The Servicer agrees to cooperate with the
Trustee in effecting the termination of the Servicer’s
responsibilities and rights hereunder, including, without
limitation, the transfer to the Trustee for administration by it of
all collections on the Mortgage Loans that shall at the time be
held by the Servicer or thereafter be received by the Servicer with
respect to the Mortgage Loans.

Notwithstanding the foregoing, if an Event of
Default described in clause (vi) of this Section 7.01(a) shall
occur, the Trustee shall, by notice in writing to the Servicer,
which may be delivered by telecopy, immediately suspend all of the
rights and obligations of the Servicer thereafter arising under
this Agreement, but without prejudice to any rights it may have as
a Certificateholder or in any capacity other than Servicer, or to
reimbursement of advances, and the Trustee shall act as provided in
Section 7.02 to carry out the duties of the Servicer, including the
obligation to make any Monthly P&I Advance the nonpayment of
which was an Event of Default described in clause (vi) of this
Section 7.01(a). Any such action taken by the Trustee must be
prior to the distribution on the relevant Distribution Date. If the
Servicer shall within two Business Days following such suspension
remit to the Trustee the amount of any Monthly P&I Advance
(plus interest accrued thereon at a per annum rate equal to the
prime rate for United States money center commercial banks as
published in The Wall Street Journal) the nonpayment of
which by the Servicer was an Event of Default described in
clause (vi) of this Section 7.01(a), the Trustee, subject
to the last sentence of this paragraph, shall permit the Servicer
to resume its rights and obligations as Servicer hereunder. The
Servicer agrees that it will reimburse the Trustee for actual,
necessary and reasonable costs incurred by the Trustee because of
action taken pursuant to clause (vi) of this Section 7.01(a). The
Servicer agrees that if an Event of Default as described in clause
(vi) of this Section 7.01(a) shall occur more than two times in any
twelve month period, the Trustee shall be under no obligation to
permit the Servicer to resume its rights and obligations as
Servicer hereunder.

(b)        In
case one or more of the following Events of Default by the Company
shall occur and be continuing, that is to say:

(vii)            
Failure on the part of the Company duly to observe or perform in
any material respect any of the covenants or agreements on the part
of the Company contained in the Certificates or in this Agreement
which continues unremedied for a period of 60 days after the date
on which written notice of such failure, requiring the same to be
remedied, shall have been given to the Company by the Trustee, or
to the Company and the Trustee by the Holders of Certificates
evidencing Percentage Interests aggregating not less than 25%;
or

(viii)          
A decree or order of a court or agency or supervisory authority
having jurisdiction in the premises for the appointment of a
trustee, conservator, receiver or liquidator in any bankruptcy,
insolvency, readjustment of debt, marshalling of assets and
liabilities or similar proceedings, or for the winding‐up or
liquidation of its affairs, shall have been entered against the
Company and such decree or order shall have remained in force
undischarged or unstayed for a period of 60 days; or

(ix)             
The Company shall consent to the appointment of a trustee,
conservator, receiver or liquidator in any bankruptcy, insolvency,
readjustment of debt, marshalling of assets and liabilities or
similar proceedings of or relating to the Company or of or relating
to all or substantially all of its property; or

(x)               
The Company shall admit in writing its inability to pay its debts
generally as they become due, file a petition to take advantage of
any applicable bankruptcy, insolvency or reorganization statute,
make an assignment for the benefit of creditors, or voluntarily
suspend payment of its obligations;

then, and in each and every such case, so long as
such Event of Default shall not have been remedied, the Holders of
Certificates evidencing Percentage Interests aggregating not less
than 25%, by notice in writing to the Company and the Trustee, may
direct the Trustee in accordance with Section 10.03 to institute an
action, suit or proceeding in its own name as Trustee hereunder to
enforce the Company's obligations hereunder.

(c)        In
any circumstances in which this Agreement states that
Certificateholders owning Certificates evidencing a certain
Percentage Interest may take certain action, such action shall be
taken by the Trustee, but only if the requisite percentage of
Certificateholders required under this Agreement for taking like
action or giving like instruction to the Trustee under this
Agreement shall have so directed the Trustee in writing.

Section
7.02.       
Trustee to Act; Appointment of
Successor.

(a)        On
and after the date on which the Servicer receives a notice of
termination pursuant to Section 7.01 or the Servicer resigns
pursuant to Section 6.04, the Trustee shall be the successor in all
respects to the Servicer under this Agreement and shall have all
the rights and powers and be subject to all the responsibilities,
duties and liabilities relating thereto arising on or after such
date of termination or resignation placed on the Servicer by the
terms and provisions hereof and thereof, and shall have the same
limitations on liability herein granted to the Servicer;
provided, that the Trustee shall not under any circumstances
be responsible for any representations and warranties or any
repurchase obligation of the Company or any liability incurred by
the Servicer prior to such date of termination or resignation and
the Trustee shall not be obligated to make a Monthly P&I
Advance if it is prohibited by law from so doing. As compensation
therefor, the Trustee shall be entitled to all compensation to
which the Servicer would have been entitled if the Servicer had
continued to act hereunder. Notwithstanding the above, the Trustee
may, if it shall be unwilling to so act, or shall if it is unable
to so act, appoint, or petition a court of competent jurisdiction
to appoint, any established housing and home finance institution
having a net worth of not less than $10,000,000 as the successor to
the Servicer hereunder in the assumption of all or any part of the
responsibilities, duties or liabilities of the Servicer hereunder.
Pending any such appointment, the Trustee is obligated to act in
such capacity. In connection with such appointment and assumption,
the Trustee may make such arrangements for the compensation of such
successor out of payments on Mortgage Loans as it and such
successor shall agree; provided, however, that no such
compensation shall, together with the compensation to the Trustee,
be in excess of that permitted the Servicer hereunder. The Trustee
and such successor shall take such actions, consistent with this
Agreement, as shall be necessary to effectuate any such
succession.

(b)        In
connection with any termination or resignation of the Servicer
hereunder, in the event that any of the Mortgage Loans are MERS
Loans, either (i) the successor Servicer (including the Trustee if
the Trustee is acting as successor Servicer) shall represent and
warrant that it is a member of MERS in good standing and shall
agree to comply in all material respects with the rules and
procedures of MERS in connection with the servicing of the MERS
Loans, in which case the predecessor Servicer shall cooperate with
the successor Servicer in registering the transfer of servicing of
the MERS Loans to the successor Servicer on the MERS® System in
accordance with MERS’ rules and procedures, or (ii) if the
successor Servicer is not a member of MERS, the predecessor
Servicer shall cooperate with the successor Servicer in (A)
de-registering the MERS Loans from the MERS® System and (B)
causing MERS to execute and deliver an assignment from MERS to the
Trust of the Mortgage securing each MERS Loan in recordable form
and in the form otherwise provided under clause (X)(iii) of the
definition of “Mortgage File” herein and to execute and
deliver such other notices, documents and other instruments as may
be necessary or desirable to effect such de-registration and
assignment. The predecessor Servicer shall bear any and all fees of
MERS and all fees and costs of preparing and recording any
assignments of Mortgages as required under this Section
7.02(b).

Section
7.03.       
Notification to
Certificateholders. Upon any such termination or
appointment of a successor to the Servicer, the Trustee shall give
prompt written notice thereof to the Certificateholders at their
respective addresses appearing in the Certificate Register.

ARTICLE VIII

Concerning the Trustees

Section
8.01.       
Duties of Trustees.

(a)        The
Trustee, prior to the occurrence of an Event of Default and after
the curing of all Events of Default which may have occurred,
undertakes to perform such duties and only such duties as are
specifically set forth in this Agreement. In case an Event of
Default has occurred (which has not been cured or waived) the
Trustee shall exercise such of the rights and powers vested in it
by this Agreement, and use the same degree of care and skill in its
exercise as a prudent person would exercise or use under the
circumstances in the conduct of such person’s own
affairs.

(b)        The
Trustee, upon receipt of all resolutions, certificates, statements,
opinions, reports, documents, orders or other instruments furnished
to it which are specifically required to be furnished to it
pursuant to any provision of this Agreement, shall examine them to
determine whether they are in the form required by this Agreement;
provided, however, that the Trustee shall not be responsible for
the accuracy or content of any such certificate, statement,
opinion, report, or other order or instrument furnished by the
Company or Servicer to the Trustee pursuant to this
Agreement.

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

(i)                 
Prior to the occurrence of an Event of Default and after the curing
of all such Events of Default which may have occurred, the duties
and obligations of the Trustee shall be determined solely by the
express provisions of this Agreement,

(ii)               
Neither the Trustee nor the Delaware Trustee shall be liable except
for the performance of such duties and obligations as are
specifically set forth in this Agreement, no implied covenants or
obligations shall be read into this Agreement against the Trustee
or the Delaware Trustee, and, in the absence of bad faith on the
part of the Trustee or the Delaware Trustee, such trustee may
conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon any
certificates or opinions furnished to such trustee and conforming
to the requirements of this Agreement; and

(iii)              
Neither the Trustee nor the Delaware Trustee shall be personally
liable with respect to any action taken or omitted to be taken by
it in good faith in accordance with the direction of the
Certificateholders holding Certificates which evidence Percentage
Interests aggregating not less than 25% relating to the time,
method and place of conducting any proceeding for any remedy
available to such trustee, or relating to the exercise of any trust
or power conferred upon such trustee under this Agreement.

(d)       
Within ten Business Days after the occurrence of any Event of
Default known to the Trustee, the Trustee shall transmit by mail to
the Rating Agencies notice of each Event of Default. Within 90 days
after the occurrence of any Event of Default known to the Trustee,
the Trustee shall transmit by mail to all Certificateholders (with
a copy to the Rating Agencies) notice of each Event of Default,
unless such Event of Default shall have been cured or waived;
provided, however, the Trustee shall be protected in
withholding such notice if and so long as a Responsible Officer of
the Trustee in good faith determines that the withholding of such
notice is in the best interests of the Certificateholders; and
provided, further, that in the case of any Event of Default
of the character specified in Section 7.01(a)(i) or Section
7.01(a)(ii), no such notice to Certificateholders or to the Rating
Agencies shall be given until at least 30 days after the occurrence
thereof.

Section
8.02.       
Certain Matters Affecting the
Trustees. Except as otherwise provided in Section
8.01:

(i)                 
Each of the Trustee and the Delaware Trustee may request and rely
upon and shall be protected in acting or refraining from acting
upon any resolution, Officer’s Certificate, certificate of
auditors or any other certificate, statement, instrument, opinion,
report, notice, request, consent, order, approval, bond or other
paper or document believed by it to be genuine and to have been
signed or presented by the proper party or parties;

(ii)               
Each of the Trustee and the Delaware Trustee may consult with
counsel and any Opinion of Counsel shall be full and complete
authorization and protection in respect of any action taken or
suffered or omitted by it hereunder in good faith and in accordance
with such Opinion of Counsel;

(iii)              
Neither the Trustee nor the Delaware Trustee shall be personally
liable for any action taken or omitted by it in good faith and
reasonably believed by it to be authorized or within the discretion
or rights or powers conferred upon it by this Agreement;

(iv)             
Prior to the occurrence of an Event of Default hereunder and after
the curing of all Events of Default which may have occurred,
neither the Trustee nor the Delaware Trustee shall be bound to make
any investigation into the facts or matters stated in any
resolution, certificate, statement, instrument, opinion, report,
notice, request, consent, order, approval, bond or other paper or
document, unless requested in writing to do so by the Holders of
Certificates evidencing Percentage Interests aggregating not less
than 25%; provided, however, that if the payment within a
reasonable time to the Trustee or the Delaware Trustee of the
costs, expenses or liabilities likely to be incurred by it in the
making of such investigation is, in the opinion of such trustee,
not reasonably assured to such trustee by the security, if any,
afforded to it by the terms of this Agreement, such trustee may
require reasonable indemnity against such expense or liability as a
condition to proceeding;

(v)               
Each of the Trustee and the Delaware Trustee may execute the trust
or any of the powers hereunder or perform any duties hereunder
either directly or by or through agents or attorneys selected by it
with reasonable care or (as in the case of the Initial Custodian)
designated by the Servicer;

(vi)             
Neither the Trustee nor the Delaware Trustee shall be deemed to
have knowledge or notice of any matter, including without
limitation an Event of Default, unless actually known by a
Responsible Officer, or unless written notice thereof referencing
this Agreement or the Certificates is received at the Notice
Address of such trustee;

(vii)            
In no event shall the Trustee or the Delaware Trustee be held
liable for acts or omissions of the Servicer or the other trustee
(excepting the Trustee’s own actions as
Servicer).   No provision of this Agreement shall require
the Trustee or the Delaware Trustee to expend or risk its own funds
or otherwise incur any financial liability in the performance of
any of its duties hereunder (except for the giving of required
notices), or in the exercise of any of its rights or powers, if it
shall have reasonable grounds for believing the repayment of such
funds or adequate indemnity against such risk or liability is not
reasonably assured to it;

(viii)          
When the Trustee is acting as Servicer, and to the extent permitted
under applicable law, the Trustee is hereby authorized, in making
or disposing of any investment permitted hereunder, to deal with
itself (in its individual capacity) or with any one or more of its
affiliates, whether it or its affiliate is acting as an agent of
the Trustee or of any third person or dealing as principal for its
own account;

(ix)             
Except as expressly provided in this Agreement, in no event shall
the Trustee be under any duty or obligation to monitor, determine,
investigate or compel compliance by the Trust with the requirements
of the Statutory Trust Statute; and

(x)               
Except as provided in Section 8.18, in no event shall the Trustee
be obligated or responsible for preparing, executing, filing or
delivering in respect of the Trust or another party either (A) any
report or filing required by the Commission to be prepared,
executed, filed or delivered in respect of the Trust or another
party or (B) any certification in respect of a report or filing
required by the Commission.

Section
8.03.       
Trustees Not Liable for Certificates or
Mortgage Loans. The recitals contained herein (other
than those relating to the due organization, power and authority of
the Trustee and the Delaware Trustee) and in the Certificates
(other than the execution of, and certificate of authentication on,
the Certificates) shall not be taken as the statements of the
Trustee or the Delaware Trustee, and neither the Trustee nor the
Delaware Trustee assumes any responsibility for their correctness.
Neither the Trustee nor the Delaware Trustee makes any
representations as to the validity or sufficiency of this
Agreement, the Mortgage Loan Purchase Agreement or of the
Certificates or any Mortgage Loan. Neither the Trustee nor the
Delaware Trustee shall be accountable for the use or application by
the Company, the Servicer or the Trust, as applicable, of any of
the Certificates or of the proceeds of such Certificates, or for
the use or application of any funds paid to the Servicer or the
Company in respect of the Mortgage Loans or deposited into the
Custodial Accounts for P&I, any Buydown Fund Account, the
Investment Account or the Certificate Account by the Servicer or
the Company.

Section
8.04.       
Trustees May Own Certificates.
The Trustee, the Delaware Trustee or any agent or affiliate of such
trustee, in its individual or any other capacity, may become the
owner or pledgee of Certificates with the same rights it would have
if it were not trustee.

Section
8.05.       
The Servicer to Pay Trustees’ Fees and
Expenses. Subject to separate written agreements
with the Trustee and the Delaware Trustee, the Servicer covenants
and agrees to, and the Servicer shall, pay each of the Trustee and
the Delaware Trustee from time to time, and such trustee shall be
entitled to payment, for all services rendered by it in the
execution of the trust hereby created and in the exercise and
performance of any of the powers and duties hereunder of such
trustee. Except as otherwise expressly provided herein, the
Servicer shall pay or reimburse each of the Trustee and the
Delaware Trustee upon such trustee’s request for all
reasonable expenses and disbursements incurred or made by such
trustee in accordance with any of the provisions of this Agreement,
including any such expenses incurred or made in connection with a
transfer of servicing, and shall indemnify the institution acting
as such trustee, both in its individual capacity and as trustee,
from any loss, liability or expense incurred by it hereunder
(including the reasonable compensation and the expenses and
disbursements of its counsel and of all persons not regularly in
its employ and any expenses which arise out of or are imposed upon
the Trustee or the Delaware Trustee in connection with the
creation, operation or termination of the Trust) except any such
expense or disbursement as may arise from its own negligence or bad
faith. Such obligation shall survive the termination of this
Agreement or resignation or removal of the Trustee or the Delaware
Trustee. The Servicer shall, at its expense, prepare or cause to be
prepared all federal and state income tax and franchise tax and
information returns relating to REMIC I, REMIC II, REMIC III or
REMIC IV required to be prepared or filed by the Trustee or the
Delaware Trustee and shall indemnify the Trustee and the Delaware
Trustee for any liability of such trustees arising from any error
in such returns.

Section
8.06.       
Eligibility Requirements for
Trustees. The Trustee hereunder shall at all times
be (i) an institution insured by the FDIC, (ii) a Corporation
organized and doing business under the laws of the United States of
America or of any state, authorized under such laws to exercise
corporate trust powers, having a combined capital and surplus of
not less than $50,000,000 and subject to supervision or examination
by federal or state authority and (iii) acceptable to the Rating
Agencies. If such Corporation publishes reports of condition at
least annually, pursuant to law or to the requirements of any
aforementioned supervising or examining authority, then for the
purposes of this Section 8.06, 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.  The Delaware Trustee hereunder shall at all times
have its principal place of business in the State of Delaware and
shall satisfy the applicable requirements under the laws of the
State of Delaware authorizing it to act as the Delaware trustee of
the Trust.  In case at any time the Trustee or the Delaware
Trustee shall cease to be eligible in accordance with the
provisions of this Section 8.06, such trustee shall resign
immediately in the manner and with the effect specified in Section
8.07.

Section
8.07.       
Resignation and Removal of
Trustees. Each of the Trustee and the Delaware
Trustee may at any time resign and be discharged from the trust
hereby created by giving written notice thereof to the Servicer.
Upon receiving such notice of resignation, the Servicer shall
promptly appoint a successor trustee by written instrument, in
duplicate, one copy of which instrument shall be delivered to the
resigning trustee and one copy to the successor trustee. If no
successor trustee shall have been so appointed and shall have
accepted appointment within 30 days after the giving of such notice
of resignation, the resigning trustee may petition any court of
competent jurisdiction for the appointment of a successor
trustee.

If at
any time the Trustee or the Delaware Trustee shall cease to be
eligible in accordance with the provisions of Section 8.06 and
shall fail to resign after written request therefor by the
Servicer, or if at any time the Trustee or the Delaware Trustee
shall become incapable of acting, or shall be adjudged bankrupt or
insolvent, or a receiver of such trustee or of its property shall
be appointed, or any public officer shall take charge or control of
such trustee or of its property or affairs for the purpose of
rehabilitation, conservation or liquidation, then the Servicer may
remove such trustee and appoint a successor trustee by written
instrument, in triplicate, copies of which instrument shall be
delivered to the trustee so removed, the trustee continuing in its
capacity and the successor trustee.

The
Holders of Certificates evidencing Percentage Interests aggregating
more than 50% may at any time remove the Trustee or the Delaware
Trustee and appoint a successor trustee by written instrument or
instruments, in triplicate, signed by such Holders or their
attorneys in-fact duly authorized, one complete set of which
instruments shall be delivered to the Servicer, one complete set to
the Trustee so removed and one complete set to the successor so
appointed.

Any
resignation or removal of the Trustee or the Delaware Trustee and
appointment of a successor trustee pursuant to any of the
provisions of this Section 8.07 shall become effective upon
acceptance of appointment by the successor trustee as provided in
Section 8.08. Any expenses associated with the resignation of the
Trustee or the Delaware Trustee shall be borne by such trustee, and
any expenses associated with the removal of the Trustee or the
Delaware Trustee shall be borne by the Servicer.

Section
8.08.       
Successor Trustee. Any
successor trustee appointed as provided in Section 8.07 shall
execute, acknowledge and deliver to the Servicer and to its
predecessor trustee an instrument accepting such appointment
hereunder, and thereupon the resignation or removal of the
predecessor trustee shall become effective and such successor
trustee, without any further act, deed or conveyance, shall become
fully vested with all the rights, powers, duties and obligations of
its predecessor hereunder, with like effect as if originally named
as Trustee or Delaware Trustee herein. The predecessor shall
deliver to the successor trustee all Mortgage Files, related
documents, statements and all other property held by it hereunder,
and the Servicer and the predecessor trustee shall execute and
deliver such instruments and do such other things as may reasonably
be required for more fully and certainly vesting and confirming in
the successor trustee all such rights, powers, duties and
obligations.

No
successor trustee shall accept appointment as provided in this
Section 8.08 unless at the time of such appointment such successor
trustee shall be eligible under the provisions of Section
8.06.

Upon
acceptance of appointment by a successor trustee as provided in
this Section 8.08, the Servicer shall mail notice of the succession
of such trustee hereunder to (i) all Certificateholders at their
addresses as shown in the Certificate Register and (ii) the Rating
Agencies. If the Servicer fails to mail such notice within ten days
after acceptance of appointment by the successor trustee, the
successor trustee shall cause such notice to be mailed.

Section
8.09.       
Merger or Consolidation of
Trustee. Any Corporation into which the Trustee or
the Delaware Trustee may be merged or converted or with which it
may be consolidated, or any Corporation resulting from any merger,
conversion or consolidation to which the Trustee or the Delaware
Trustee shall be a party, or any Corporation succeeding to the
corporate trust business of such trustee, shall be the successor of
such trustee hereunder, provided such resulting or successor
Corporation shall be eligible under the provisions of Section 8.06,
without the execution or filing of any paper or any further act on
the part of any of the parties hereto, anything herein to the
contrary notwithstanding.

Section
8.10.       
Appointment of Co-Trustee or Separate
Trustee. Notwithstanding any other provisions
hereof, at any time, for the purpose of meeting any legal
requirements of any jurisdiction in which any part of the assets of
the Trust may at the time be located, the Servicer and the Trustee
or the Delaware Trustee, as applicable, acting jointly shall have
the power and shall execute and deliver all instruments to appoint
one or more Persons approved by such trustee to act as co-trustee
or co-trustees, jointly with such trustee, or separate trustee or
separate trustees, of all or any part of the assets of the Trust
and to vest in such Person or Persons, in such capacity, such title
to the assets of the Trust, or any part thereof, and, subject to
the other provisions of this Section 8.10, such powers, duties,
obligations, rights and trusts as the Servicer and the Trustee or
the Delaware Trustee, as applicable, may consider necessary or
desirable; provided, that the Trustee or the Delaware Trustee, as
applicable, shall remain liable for all of its obligations and
duties under this Agreement. If the Servicer shall not have joined
in such appointment within 15 days after the receipt by it of a
request so to do, or in case an Event of Default shall have
occurred and be continuing, the Trustee or the Delaware Trustee, as
applicable, alone shall have the power to make such appointment;
provided, that such trustee shall remain liable for all of its
obligations and duties under this Agreement. No co-trustee or
separate trustee hereunder shall be required to meet the terms of
eligibility as a successor trustee under Section 8.06 hereunder and
no notice to Certificateholders of the appointment of co-trustee(s)
or separate trustee(s) shall be required under Section 8.08
hereof.

In the
case of any appointment of a co-trustee or separate trustee
pursuant to this Section 8.10, all rights, powers, duties and
obligations conferred or imposed upon the Trustee or the Delaware
Trustee, as applicable, shall be conferred or imposed upon and
exercised or performed by the Trustee or the Delaware Trustee, as
applicable, and such separate trustee or co-trustee jointly and
severally, except to the extent that under any law of any
jurisdiction in which any particular act or acts are to be
performed by the Trustee or the Delaware Trustee, as applicable,
such trustee shall be incompetent or unqualified to perform such
act or acts, in which event such rights, powers, duties and
obligations (including the holding of title to the assets of the
Trust or any portion thereof in any such jurisdiction) shall be
exercised and performed by such separate trustee or co-trustee at
the direction of the Trustee or the Delaware Trustee, as
applicable.

Any
notice, request or other writing given to the Trustee or the
Delaware Trustee shall be deemed to have been given to each of the
then related separate trustee(s) and co-trustee(s), as effectively
as if given to each of them. Every instrument appointing any
separate trustee(s) or co-trustee(s) shall refer to this Agreement
and the conditions of this Article VIII. Each separate trustee and
co-trustee, upon its acceptance of the trusts conferred, shall be
vested with the estates or property specified in its instrument of
appointment, either jointly with the Trustee or the Delaware
Trustee, as applicable, or separately, as may be provided therein,
subject to all the provisions of this Agreement, specifically
including every provision of this Agreement relating to the conduct
of, affecting the liability of, or affording protection to, the
Trustee or the Delaware Trustee, as applicable. Every such
instrument shall be filed with the Trustee or the Delaware Trustee,
as applicable.

Any
separate trustee or co-trustee may, at any time, constitute the
Trustee or the Delaware Trustee, as applicable, its agent or
attorney-in-fact, with full power and authority, to the extent not
prohibited by law, to do any lawful act under or in respect of this
Agreement on its behalf and in its name. If any separate trustee or
co-trustee shall die, become incapable of acting, resign or be
removed, all of its estates, properties, rights, remedies and the
trust shall vest in and be exercised by the Trustee or the Delaware
Trustee, as applicable, to the extent permitted by law, without the
appointment of a new or successor trustee.

Section
8.11.       
Authenticating Agents. The
Trustee may appoint one or more Authenticating Agents which shall
be authorized to act on behalf of the Trustee in authenticating
Certificates. Wherever reference is made in this Agreement to the
authentication of Certificates by the Trustee or the
Trustee’s certificate of authentication, such reference shall
be deemed to include authentication on behalf of the Trustee by an
Authenticating Agent and a certificate of authentication executed
on behalf of the Trustee by an Authenticating Agent. Each
Authenticating Agent must be acceptable to the Servicer and must be
a corporation, trust company or banking association organized and
doing business under the laws of the United States of America or of
any state, having an office and place of business in New York, New
York, having a combined capital and surplus of at least
$15,000,000, authorized under such laws to do a trust business and
subject to supervision or examination by federal or state
authorities.

Any
corporation into which any Authenticating Agent may be merged or
converted or with which it may be consolidated, or any corporation
resulting from any merger, conversion or consolidation to which any
Authenticating Agent shall be a party, or any corporation
succeeding to the corporate agency business of any Authenticating
Agent, shall continue to be the Authenticating Agent so long as it
shall be eligible in accordance with the provisions of the first
paragraph of this Section 8.11 without the execution or filing of
any paper or any further act on the part of the Trustee or the
Authenticating Agent.

Any
Authenticating Agent may at any time resign by giving written
notice of resignation to the Trustee and the Servicer. The Trustee
may, upon prior written approval of the Servicer, at any time
terminate the agency of any Authenticating Agent by giving written
notice of termination to such Authenticating Agent and to the
Servicer. Upon receiving a notice of resignation or upon such a
termination, or in case at any time any Authenticating Agent shall
cease to be eligible in accordance with the provisions of the first
paragraph of this Section 8.11, the Trustee may appoint, upon prior
written approval of the Servicer, a successor Authenticating Agent,
shall give written notice of such appointment to the Servicer and
shall mail notice of such appointment to all Certificateholders.
Any successor Authenticating Agent upon acceptance of its
appointment hereunder shall become vested with all the rights,
powers, duties and responsibilities of its predecessor hereunder,
with like effect as if originally named as Authenticating Agent.
Any reasonable compensation paid to an Authenticating Agent shall
be a reimbursable expense pursuant to Section 8.05 if paid by the
Trustee.

Section
8.12.       
Paying Agents. The Trustee may
appoint one or more Paying Agents which shall be authorized to act
on behalf of the Trustee in making withdrawals from the Certificate
Account, and distributions to Certificateholders as provided in
Section 4.01, Section 4.04(a) and Section 9.01(b) to the extent
directed to do so by the Servicer. Wherever reference is made in
this Agreement to the withdrawal from the Certificate Account by
the Trustee, such reference shall be deemed to include such a
withdrawal on behalf of the Trustee by a Paying Agent. Whenever
reference is made in this Agreement to a distribution by the
Trustee or the furnishing of a statement to Certificateholders by
the Trustee, such reference shall be deemed to include such a
distribution or furnishing on behalf of the Trustee by a Paying
Agent. Each Paying Agent shall provide to the Trustee such
information concerning the Certificate Account as the Trustee shall
request from time to time. Each Paying Agent must be reasonably
acceptable to the Servicer and must be a corporation, trust company
or banking association organized and doing business under the laws
of the United States of America or of any state, having an office
and place of business in New York, New York, having a combined
capital and surplus of at least $15,000,000, authorized under such
laws to do a trust business and subject to supervision or
examination by federal or state authorities.

Any
corporation into which any Paying Agent may be merged or converted
or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which any Paying
Agent shall be a party, or any corporation succeeding to the
corporate agency business of any Paying Agent, shall continue to be
the Paying Agent provided that such corporation after the
consummation of such merger, conversion, consolidation or
succession meets the eligibility requirements of this Section
8.12.

Any
Paying Agent may at any time resign by giving written notice of
resignation to the Trustee and to the Servicer; provided, that the
Paying Agent has returned to the Certificate Account or otherwise
accounted, to the reasonable satisfaction of the Servicer, for all
amounts it has withdrawn from the Certificate Account. The Trustee
may, upon prior written approval of the Servicer, at any time
terminate the agency of any Paying Agent by giving written notice
of termination to such Paying Agent and to the Servicer. Upon
receiving a notice of resignation or upon such a termination, or in
case at any time any Paying Agent shall cease to be eligible in
accordance with the provisions of the first paragraph of this
Section 8.12, the Trustee may appoint, upon prior written approval
of the Servicer, a successor Paying Agent, shall give written
notice of such appointment to the Servicer and shall mail notice of
such appointment to all Certificateholders. Any successor Paying
Agent upon acceptance of its appointment hereunder shall become
vested with all the rights, powers, duties and responsibilities of
its predecessor hereunder, with like effect as if originally named
as Paying Agent. Any reasonable compensation paid to any Paying
Agent shall be a reimbursable expense pursuant to Section 8.05 if
paid by the Trustee.

Section
8.13.       
Duties of Delaware
Trustee.

(a)        The
Delaware Trustee is appointed to serve as the trustee of the Trust
in the State of Delaware for the sole purpose of satisfying the
requirement of Section 3807(a) of the Statutory Trust Statute that
the Trust have at least one trustee with a principal place of
business in Delaware.  It is understood and agreed by the
parties hereto that the Delaware Trustee shall have none of the
duties or liabilities of the Trustee.

(b)        The
duties of the Delaware Trustee shall be limited to (i) accepting
legal process served on the Trust in the State of Delaware, (ii)
the execution of any certificates with respect to the Trust
required to be filed with the Secretary of State which the Delaware
Trustee is required to execute under Section 3811 of the Statutory
Trust Statute and (iii) such other duties as are set forth in this
Article VIII.  To the extent that, at law or in equity, the
Delaware Trustee has duties (including fiduciary duties) and
liabilities relating thereto to the Trust or the Holders of the
REMIC I Regular Interests, REMIC II Regular Interests, REMIC III
Regular Interests, REMIC IV Regular Interests or the Certificates,
it is hereby understood and agreed by the parties hereto that such
duties and liabilities are replaced by the duties and liabilities
of the Delaware Trustee expressly set forth in this
Agreement.

Section
8.14.       
Amendment to Certificate of
Trust. If at any time required by Section 3810 of
the Statutory Trust Statute, the Trustee, the Delaware Trustee and
any other trustee of the Trust shall cause an amendment to the
Certificate of Trust to be filed with the Secretary of State in
accordance with the provisions of such Section 3810.

Section
8.15.       
[Reserved.].

Section
8.16.       
Trustees Act on Behalf of
Trust. Except to the extent otherwise expressly
provided herein, in the performance of its obligations under this
Agreement, each of the Trustee and the Delaware Trustee shall at
all times be acting on behalf of the Trust or the
Certificateholders, as applicable.

Section
8.17.       
Limitation of Liability. It is
expressly understood and agreed by the parties hereto that (a) each
of the representations, undertakings and agreements herein made on
the part of the Trust is made and intended not as personal
representations, undertakings and agreements by the Trustee but is
made and intended for the purpose of binding only the Trust and (b)
under no circumstances shall the Trustee be personally liable for
the payment of any indebtedness or expenses of the Trust or be
liable for the breach or failure of any obligation, representation,
warranty or covenant made or undertaken by the Trust under this
Agreement.

Section
8.18.       
Trustee Report on Assessment of Compliance
with Servicing Criteria. The Trustee shall, on or
before the 90th day following each December 31 after the Cut-Off
Date (or such earlier date as reasonably requested by the Servicer,
but in no event earlier than March 15), deliver to the Company and
the Servicer the following documents, if so requested by the
Servicer:

(a)        a
report on its assessment of compliance during the preceding
calendar year with all applicable servicing criteria set forth in
Item 1122(d) of Regulation AB with respect to asset-backed
securities transactions taken as a whole involving the Trustee that
are backed by assets of the same type as the Mortgage Loans, as
required by Item 1122 of Regulation AB; and

(b)        a
report by a registered public accounting firm that attests to, and
reports on, the assessment made by the Trustee pursuant to clause
(a) above, as required by Item 1122 of Regulation AB;

 provided,
however, that the Trustee shall only be required to deliver the
reports specified in Section 8.18(a) and (b) with respect to any
year for which a Report on Form 10-K is required to be filed with
the Commission on behalf of the Trust.  Promptly following
December 31 of each year for which a Report on Form 10-K is so
required to be filed, the Servicer shall advise the Trustee whether
the foregoing reports will be required of the Trustee and the
Servicer and the Trustee shall cooperate in good faith to determine
the applicable servicing criteria.

ARTICLE IX

Termination

Section
9.01.       
Termination Upon Purchase by the Servicer or
Liquidation of All Mortgage Loans.

(a)        The
Servicer may purchase the outstanding Group 1 and Group 2 Loans,
all property acquired by the Trust in respect of any such Mortgage
Loan and all other property included in REMIC I or REMIC IV in
respect of such Mortgage Loans, on or after the first date on which
the aggregate Principal Balance of the Group 1 and Group 2 Loans is
less than the Groups 1-2 Clean-Up Call Percentage of the aggregate
Principal Balance of such Mortgage Loans as of the Cut-Off Date, at
a price equal to the sum, reduced by unreimbursed advances (other
than advances made with respect to Group 1 and Group 2 Loans as to
which the Servicer expects at the time of such purchase, in its
sole judgment, that foreclosure is not imminent), of

(x)        the
excess of

(A)       100%
of the aggregate Principal Balance of the Group 1 and Group 2 Loans
(other than Mortgage Loans in respect of which the related
Mortgaged Property has been acquired by the Trust by foreclosure,
deed in lieu of foreclosure or otherwise) (after giving effect to
the distribution of all other principal and the allocation of
Realized Losses to the Group 1, Group 2 and Group L-B Certificates
on the date of such purchase), plus accrued interest at the
applicable Pass-Through Rates with respect to such Mortgage Loans
through the last day of the month of such purchase, over

(B)       the
amount of any Bankruptcy Losses incurred with respect to such
Mortgage Loans as of the date of such purchase to the extent that
the Principal Balances of such Mortgage Loans have not been
previously reduced by such Bankruptcy Losses, and

(y)       
without duplication,

(A)       the
appraised fair market value as of the date of such purchase of all
property owned by the Trust which secured a Group 1 or Group 2 Loan
and which has been acquired by the Trust by foreclosure, deed in
lieu of foreclosure or otherwise, including related Insurance
Proceeds, and

(B)       the
appraised fair market value as of the date of such purchase of all
other property included in REMIC I or REMIC IV in respect of such
Mortgage Loans, any such appraisal pursuant to clause (A) or (B) to
be conducted by an appraiser mutually agreed upon by the Servicer
and the Trustee;

provided, however, that the
Servicer may not so purchase such outstanding Group 1 and Group 2
Loans and property if such price exceeds the fair market value,
determined by the Servicer in accordance with prudent industry
practices, of such outstanding Mortgage Loans and property. If such
right is exercised, the Servicer shall provide to the Trustee, the
Delaware Trustee and the Company the written certification of an
officer of the Servicer (which certification shall include a
statement to the effect that all amounts required to be paid in
order to exercise such right have been deposited in the Certificate
Account) and the Trustee on behalf of the Trust shall promptly
execute all instruments as may be necessary to release and assign
to the Servicer the Group 1 and Group 2 Loans,
all property acquired by the Trust in
respect of any such Mortgage Loan and all other property included
in REMIC I or REMIC IV in respect of such Mortgage
Loans.

The
Servicer may purchase the outstanding Group 3 Loans, all property
acquired by the Trust in respect of any such Mortgage Loan and all
other property included in REMIC II in respect of such Mortgage
Loans, on or after the first date on which the aggregate Principal
Balance of the Group 3 Loans is less than the Group 3 Clean-Up Call
Percentage of the aggregate Principal Balance of such Mortgage
Loans as of the Cut-Off Date, at a price equal to the sum, reduced
by unreimbursed advances (other than advances made with respect to
Group 3 Loans as to which the Servicer expects at the time of such
purchase, in its sole judgment, that foreclosure is not imminent),
of

(x)        the
excess of

(A)       100%
of the aggregate Principal Balance of the Group 3 Loans (other than
Mortgage Loans in respect of which the related Mortgaged Property
has been acquired by the Trust by foreclosure, deed in lieu of
foreclosure or otherwise) (after giving effect to the distribution
of all other principal and the allocation of Realized Losses to the
Group 3 Certificates on the date of such purchase), plus accrued
interest at the applicable Pass-Through Rates with respect to such
Mortgage Loans through the last day of the month of such purchase,
over

(B)       the
amount of any Bankruptcy Losses incurred with respect to such
Mortgage Loans as of the date of such purchase to the extent that
the Principal Balances of such Mortgage Loans have not been
previously reduced by such Bankruptcy Losses, and

(y)       
without duplication,

(A)       the
appraised fair market value as of the date of such purchase of all
property owned by the Trust which secured a Group 3 Loan and which
has been acquired by the Trust by foreclosure, deed in lieu of
foreclosure or otherwise, including related Insurance Proceeds,
and

(B)       the
appraised fair market value as of the date of such purchase of all
other property included in REMIC II in respect of such Mortgage
Loans, any such appraisal pursuant to clause (A) or (B) to be
conducted by an appraiser mutually agreed upon by the Servicer and
the Trustee;

provided, however, that the
Servicer may not so purchase such outstanding Group 3 Loans and
property if such price exceeds the fair market value, determined by
the Servicer in accordance with prudent industry practices, of such
outstanding Mortgage Loans and property. If such right is
exercised, the Servicer shall provide to the Trustee, the Delaware
Trustee and the Company the written certification of an officer of
the Servicer (which certification shall include a statement to the
effect that all amounts required to be paid in order to exercise
such right have been deposited in the Certificate Account) and the
Trustee on behalf of the Trust shall promptly execute all
instruments as may be necessary to release and assign to the
Servicer the Group 3 Loans, all property
acquired by the Trust in respect of any such
Mortgage Loan and all other property included in REMIC II in
respect of such Mortgage Loans.

The
Servicer may purchase the outstanding Group 4 and Group 5 Loans,
all property acquired by the Trust in respect of any such Mortgage
Loan and all other property included in REMIC III or REMIC IV in
respect of such Mortgage Loans, on or after the first date on which
the aggregate Principal Balance of the Group 4 and Group 5 Loans is
less than the Groups 4-5 Clean-Up Call Percentage of the aggregate
Principal Balance of such Mortgage Loans as of the Cut-Off Date, at
a price equal to the sum, reduced by unreimbursed advances (other
than advances made with respect to Group 4 and Group 5 Loans as to
which the Servicer expects at the time of such purchase, in its
sole judgment, that foreclosure is not imminent), of

(x)        the
excess of

(A)       100%
of the aggregate Principal Balance of the Group 4 and Group 5 Loans
(other than Mortgage Loans in respect of which the related
Mortgaged Property has been acquired by the Trust by foreclosure,
deed in lieu of foreclosure or otherwise) (after giving effect to
the distribution of all other principal and the allocation of
Realized Losses to the Group 4, Group 5 and Group M-B Certificates
on the date of such purchase), plus accrued interest at the
applicable Pass-Through Rates with respect to such Mortgage Loans
through the last day of the month of such purchase, over

(B)       the
amount of any Bankruptcy Losses incurred with respect to such
Mortgage Loans as of the date of such purchase to the extent that
the Principal Balances of such Mortgage Loans have not been
previously reduced by such Bankruptcy Losses, and

(y)       
without duplication,

(A)       the
appraised fair market value as of the date of such purchase of all
property owned by the Trust which secured a Group 4 or Group 5 Loan
and which has been acquired by the Trust by foreclosure, deed in
lieu of foreclosure or otherwise, including related Insurance
Proceeds, and

(B)       the
appraised fair market value as of the date of such purchase of all
other property included in REMIC III or REMIC IV in respect of such
Mortgage Loans, any such appraisal pursuant to clause (A) or (B) to
be conducted by an appraiser mutually agreed upon by the Servicer
and the Trustee;

provided, however, that the
Servicer may not so purchase such outstanding Group 4 and Group 5
Loans and property if such price exceeds the fair market value,
determined by the Servicer in accordance with prudent industry
practices, of such outstanding Mortgage Loans and property. If such
right is exercised, the Servicer shall provide to the Trustee, the
Delaware Trustee and the Company the written certification of an
officer of the Servicer (which certification shall include a
statement to the effect that all amounts required to be paid in
order to exercise such right have been deposited in the Certificate
Account) and the Trustee on behalf of the Trust shall promptly
execute all instruments as may be necessary to release and assign
to the Servicer the Group 4 and Group 5 Loans,
all property acquired by the Trust in
respect of any such Mortgage Loan and all other property included
in REMIC III or REMIC IV in respect of such Mortgage
Loans.

Except
as otherwise set forth in this Article IX, including, without
limitation, the obligation of the Servicer to make payments to
Certificateholders as hereafter set forth, the Trust and the
respective obligations and responsibilities of the Company, the
Servicer, the Trustee and the Delaware Trustee created hereby shall
terminate in accordance with Section 3808 of the Statutory Trust
Statute upon:

(i)        
the Distribution Date immediately following the exercise by the
Servicer of its purchase options set forth in the first, second and
third paragraph of this Section 9.01(a),

(ii)       
the later of the final payment or other liquidation (or any advance
with respect thereto) of the last Mortgage Loan owned by the Trust
or the disposition of all property acquired upon foreclosure in
respect of any Mortgage Loan, and the payment to the
Certificateholders of all amounts required to be paid to them
hereunder, or

(iii)      
the Distribution Date immediately following the exercise by the
Servicer of its purchase option set forth in (a) the first
paragraph of this Section 9.01(a) if such Distribution Date occurs
on or after the later of the final payment or other liquidation (or
any advance with respect thereto) of the last Group1 and Group 2
Loan owned by the Trust or the disposition of all property acquired
upon foreclosure in respect of any such Mortgage Loan, and the
payment to the Group 1, Group 2 and Group L-B Certificateholders of
all amounts required to be paid to them hereunder, (b) the second
paragraph of this Section 9.01(a), if such Distribution Date occurs
on or after the later of the final payment or other liquidation (or
any advance with respect thereto) of the last Group 3 Loan owned by
the Trust or the disposition of all property acquired upon
foreclosure in respect of any such Mortgage Loan, and the payment
to the Group 3 Certificateholders of all amounts required to be
paid to them hereunder or (c) the third paragraph of this Section
9.01(a), if such Distribution Date occurs on or after the later of
the final payment or other liquidation (or any advance with respect
thereto) of the last Group 4 and Group 5 Loan owned by the Trust or
the disposition of all property acquired upon foreclosure in
respect of any such Mortgage Loan, and the payment to the Group 4,
Group 5 and Group M-B Certificateholders of all amounts required to
be paid to them hereunder.

The
Servicer shall not have any further right to reimbursement by the
Trust for any advance that is used to reduce the purchase price of
the applicable Mortgage Loans pursuant to the first or second
paragraph of this Section 9.01(a).

In no
event shall the Trust continue beyond the expiration of 21 years
from the death of the survivor of the issue of Joseph P. Kennedy,
the late ambassador of the United States to the Court of St.
James’, living on the date hereof.

In no
event shall the Servicer be required to expend any amounts other
than those described in the first and second paragraph of this
Section 9.01(a) in order to terminate the Trust or purchase the
applicable Mortgage Loans under this Section 9.01, and in no event
shall the Company, the Trustee or the Delaware Trustee be required
to expend any amounts in connection with such termination or
purchase.

(b)       
Notice of such purchase pursuant to the first, second or third
paragraph of Section 9.01(a), specifying the date upon which the
applicable Certificateholders may surrender their Certificates to
the Trustee for payment and cancellation, shall be given promptly
by letter from the Trustee to those Certificateholders mailed not
less than 30 days prior to such final distribution, specifying (i)
the date upon which final payment of those Certificates will be
made upon presentation and surrender of those Certificates at the
office of the Certificate Registrar therein designated (the
“Termination Date”), (ii) the amount of such
final payment (the “Termination Payment”) and
(iii) that the Record Date otherwise applicable to the Distribution
Date upon which the Termination Date occurs is not applicable to
those Certificates, payments being made only upon presentation and
surrender of those Certificates at the office of the Certificate
Registrar therein specified. The Servicer shall provide the Trustee
with written notice of its intent to exercise its purchase option
pursuant to the first, second or third paragraph of this Section
9.01(a) at least five Business Days, or such lesser time as is
acceptable to the Trustee, such acceptance not to be unreasonably
withheld, prior to the time that the Trustee is required to mail
notice to the applicable Certificateholders.

In the
event that all of the applicable Certificateholders shall not
surrender their Certificates for cancellation within six months
after the Termination Date, the Servicer shall give a second
written notice to the remaining of those Certificateholders to
surrender their Certificates for cancellation and receive the
Termination Payment with respect thereto. If within one year after
the second notice all those Certificates shall not have been
surrendered for cancellation, the Servicer may take appropriate
steps to contact the remaining of those Certificateholders
concerning surrender of their Certificates, and the cost thereof
shall be paid out of the funds and other assets related to those
Certificates which remain in trust hereunder.

Upon
any termination of the Trust pursuant to the fourth paragraph of
Section 9.01(a),  the Certificate Account shall terminate
subject to the Servicer’s obligation to hold all amounts
payable to Certificateholders in trust without interest pending
such payment. 

Upon
the completion of winding up of the Trust, including the payment or
the making reasonable provision for payment of all obligations of
the Trust in accordance with Section 3808(e) of the Statutory Trust
Statute, the Delaware Trustee shall prepare, the Trustee, the
Delaware Trustee and any other trustee hereunder shall sign, and
the Delaware Trustee (upon the Trustee’s consent acting at
direction of the Servicer) shall file, a certificate of
cancellation with the Secretary of State in accordance with Section
3810 of the Statutory Trust Statute, at which time the Trust and
this Agreement shall terminate.  The Servicer shall act as the
liquidator of the Trust and shall be responsible for taking all
actions in connection with winding up the Trust, in accordance with
the requirements of this Agreement (including this Section 9.01 and
Section 9.02) and applicable law.

Section
9.02.       
Additional Termination
Requirements.

(a)        In
the event the Servicer exercises its purchase option as provided in
the first paragraph of Section 9.01(a), REMIC I shall be terminated
in accordance with the following additional requirements, unless
the Servicer, at its own expense, obtains for the Trustee an
Opinion of Counsel to the effect that the failure of REMIC I to
comply with the requirements of this Section 9.02 will not (i)
result in the imposition of taxes on “prohibited
transactions” of REMIC I as described in Section 860F of the
Code, or (ii) cause REMIC I to fail to qualify as a REMIC at any
time that any Certificates are outstanding:

(i)                 
Within 90 days prior to the final Distribution Date set forth in
the notice given by the Trustee under Section 9.01(b) of the
Servicer’s exercise of its purchase option as provided in the
first paragraph of Section 9.01(a), the Tax Matters Person shall
prepare the documentation required and the Tax Matters Person and
the Trustee shall adopt a plan of complete liquidation on behalf of
REMIC I meeting the requirements of a qualified liquidation under
Section 860F of the Code and any regulations thereunder, as
evidenced by an Opinion of Counsel obtained at the expense of the
Servicer, on behalf of REMIC I; and

(ii)               
At or after the time of adoption of such a plan of complete
liquidation and at or prior to the final Distribution Date, the
Servicer on behalf of the Trust shall sell all of the assets of
REMIC I to the Servicer for cash in the amount specified in the
first paragraph of Section 9.01(a).

(b)        In
the event the Servicer exercises its purchase option as provided in
the second paragraph of Section 9.01(a), REMIC II shall be
terminated in accordance with the following additional
requirements, unless the Servicer, at its own expense, obtains for
the Trustee an Opinion of Counsel to the effect that the failure of
REMIC II to comply with the requirements of this Section 9.02 will
not (i) result in the imposition of taxes on “prohibited
transactions” of REMIC II as described in Section 860F of the
Code, or (ii) cause REMIC II to fail to qualify as a REMIC at any
time that any Certificates are outstanding:

(iii)              
Within 90 days prior to the final Distribution Date set forth in
the notice given by the Trustee under Section 9.01(b) of the
Servicer’s exercise of its purchase option as provided in the
second paragraph of Section 9.01(a), the Tax Matters Person shall
prepare the documentation required and the Tax Matters Person and
the Trustee shall adopt a plan of complete liquidation on behalf of
REMIC II meeting the requirements of a qualified liquidation under
Section 860F of the Code and any regulations thereunder, as
evidenced by an Opinion of Counsel obtained at the expense of the
Servicer, on behalf of REMIC II; and

(iv)             
At or after the time of adoption of such a plan of complete
liquidation and at or prior to the final Distribution Date, the
Servicer on behalf of the Trust shall sell all of the assets of
REMIC II to the Servicer for cash in the amount specified in the
second paragraph of Section 9.01(a).

(c)        In
the event the Servicer exercises its purchase option as provided in
the third paragraph of Section 9.01(a), REMIC III shall be
terminated in accordance with the following additional
requirements, unless the Servicer, at its own expense, obtains for
the Trustee an Opinion of Counsel to the effect that the failure of
REMIC III to comply with the requirements of this Section 9.02 will
not (i) result in the imposition of taxes on “prohibited
transactions” of REMIC III as described in Section 860F of
the Code, or (ii) cause REMIC III to fail to qualify as a REMIC at
any time that any Certificates are outstanding:

(v)               
Within 90 days prior to the final Distribution Date set forth in
the notice given by the Trustee under Section 9.01(b) of the
Servicer’s exercise of its purchase option as provided in the
third paragraph of Section 9.01(a), the Tax Matters Person shall
prepare the documentation required and the Tax Matters Person and
the Trustee shall adopt a plan of complete liquidation on behalf of
REMIC III meeting the requirements of a qualified liquidation under
Section 860F of the Code and any regulations thereunder, as
evidenced by an Opinion of Counsel obtained at the expense of the
Servicer, on behalf of REMIC III; and

(vi)             
At or after the time of adoption of such a plan of complete
liquidation and at or prior to the final Distribution Date, the
Servicer on behalf of the Trust shall sell all of the assets of
REMIC III to the Servicer for cash in the amount specified in the
third paragraph of Section 9.01(a).

(d)        By
its acceptance of any Residual Certificate, the Holder thereof
hereby agrees to authorize the Tax Matters Person and the Trustee
to adopt such plans of complete liquidation and to take such other
action in connection therewith as may be reasonably requested by
the Tax Matters Person or the Trustee.

Section
9.03.       
Trust Irrevocable. Except as
expressly provided herein, the trust created hereby is
irrevocable.

ARTICLE X

Miscellaneous Provisions

Section
10.01.    Amendment.

(a)       
This Agreement may be amended from time to time by the Servicer,
the Company and the Trustee, without the consent of any of the
Certificateholders:

(i)                 
to cure any ambiguity;

(ii)               
to correct or supplement any provision herein which may be
defective or inconsistent with any other provisions herein;

(iii)              
to comply with any requirements imposed by the Code or any
regulations thereunder;

(iv)             
to correct the description of any property at any time included in
REMIC I, REMIC II, REMIC III or REMIC IV, or to assure the
conveyance to the Trust of any property included in REMIC I, REMIC
II, REMIC III or REMIC IV;

(v)               
pursuant to Section 5.01(c)(v); and

(vi)             
to add any provision to, or amend any provision in, this Agreement,
provided that such amendment or addition does not adversely affect
in any material respect the interests of any
Certificateholder;

provided, however, that any such
amendment which modifies the rights or obligations of the Delaware
Trustee hereunder shall require the consent of the Delaware
Trustee. No such amendment (other than one entered into pursuant to
clause (iii) of the preceding sentence) shall change the powers of
the Servicer. Prior to entering into any amendment (other than one
entered into pursuant to clause (iii) of the second preceding
sentence) without the consent of Certificateholders pursuant to
this paragraph, the Trustee shall require an Opinion of Counsel
addressed to the Trust and the Trustee to the effect that such
amendment is permitted under this Agreement and has no material
adverse effect on the interests of the Certificateholders;
provided, however, that no such Opinion of Counsel shall be
required if the Company obtains a letter from each Rating Agency
stating that the amendment would not result in the downgrading or
withdrawal of the respective ratings then assigned to the
Certificates. Prior to entering into any amendment pursuant to
clause (iii) of the third preceding sentence without the consent of
Certificateholders pursuant to this paragraph, the Trustee shall
require an Opinion of Counsel to the effect that such action is
necessary or helpful to comply with the requirements imposed by the
Code or any regulations thereunder and shall not cause any REMIC
formed under this Agreement to fail to qualify as such under the
Code. The cost of any opinion required by this Section 10.01 shall
be borne by the party requesting such amendment.

(b)       
This Agreement may also be amended from time to time by the
Servicer, the Company and the Trustee with the consent of the
Holders of Certificates evidencing Percentage Interests aggregating
not less than 66%, for the purpose of adding any provisions to, or
changing in any manner or eliminating any of the provisions of,
this Agreement or of modifying in any manner the rights of the
Certificateholders; provided, however, that no such
amendment shall, without the consent of the Holder of each
Certificate affected thereby (i) reduce in any manner the amount
of, or delay the timing of, distributions of principal or interest
required to be made hereunder or reduce the
Certificateholder’s Percentage Interest, the Certificate
Interest Rate or the Termination Payment with respect to any of the
Certificates, (ii) reduce the percentage of Percentage Interests
specified in this Section 10.01 which are required to amend this
Agreement, (iii) create or permit the creation of any lien against
any part of REMIC I, REMIC II, REMIC III or REMIC IV, or (iv)
modify any provision in any way which would permit an earlier
retirement of the Certificates; provided, further, that any
such amendment which modifies the rights or obligations of the
Delaware Trustee hereunder shall require the consent of the
Delaware Trustee.

Promptly after the execution of any such
amendment, the Trustee shall furnish written notification of the
substance of such amendment to the Delaware Trustee and each
Certificateholder. Any failure to provide such notice, or any
defect therein, shall not, however, in any way impair or affect the
validity of any such amendment.

It
shall not be necessary for the consent of Certificateholders under
this Section 10.01 to approve the particular form of any proposed
amendment, but it shall be sufficient if such consent shall approve
the substance thereof. The manner of obtaining such consents and of
evidencing the authorization of the execution thereof by
Certificateholders shall be subject to such reasonable regulations
as the Trustee may prescribe.

Section
10.02.    Recordation of Agreement. To the extent
permitted by applicable law, this Agreement is subject to
recordation in all appropriate public offices for real property
records in all the counties or the comparable jurisdictions in
which any Mortgaged Property is situated, and in any other
appropriate public recording office or elsewhere, such recordation
to be effected by the Company and at its expense on direction by
the Trustee, but only upon direction accompanied by an Opinion of
Counsel to the effect that such recordation materially and
beneficially affects the interests of the Certificateholders.

Section
10.03.    Limitation on Rights of Certificateholders.
The death or incapacity of any Certificateholder shall not operate
to terminate this Agreement or the Trust, nor entitle such
Certificateholder’s legal representatives or heirs to claim
an accounting or to take any action or proceeding in any court for
a partition or winding-up of the Trust, nor otherwise affect the
rights, obligations and liabilities of the parties hereto or any of
them.

No
Certificateholder shall have any right to vote or in any manner
otherwise to control the operation and management of the Trust or
the obligations of the parties hereto (except as provided in
Section 5.09, Section 7.01, Section 8.01, Section 8.02, Section
8.07, Section 10.01 and this Section 10.03), nor shall anything
herein set forth, or contained in the terms of the Certificates, be
construed so as to constitute the Certificateholders from time to
time as partners or members of an association; nor shall any
Certificateholder be under any liability to any third person by
reason of any action taken by the parties to this Agreement
pursuant to any provision hereof.

No
Certificateholder shall have any right by virtue or by availing of
any provision of this Agreement to institute any suit, action or
proceeding in equity or at law upon or under or with respect to
this Agreement, unless such Holder previously shall have given to
the Trustee a written notice of default and of the continuance
thereof, as hereinbefore provided, and unless also the Holders of
Certificates evidencing Percentage Interests aggregating not less
than 25% shall have made written request upon the Trustee to
institute such action, suit or proceeding in its own name as
Trustee hereunder and shall have offered to the institution acting
as Trustee, both in its individual capacity and as Trustee, such
reasonable indemnity as it may require against the costs, expenses
and liabilities to be incurred therein or thereby, and the Trustee,
for 60 days after its receipt of such notice, request and offer of
indemnity, shall have neglected or refused to institute any such
action, suit or proceeding. However, the Trustee is under no
obligation to exercise any of the extraordinary trusts or powers
vested in it by this Agreement or to make any investigation of
matters arising hereunder or to institute, conduct or defend any
litigation hereunder or in relation hereto at the request, order or
direction of any of the Certificateholders unless such
Certificateholders have offered to the Trustee reasonable security
or indemnity against the costs, expenses and liabilities which may
be incurred therein or thereby. It is understood and intended, and
expressly covenanted by each Certificateholder with every other
Certificateholder and the Trustee, that no one or more Holders of
Certificates shall have any right in any manner whatever by virtue
or by availing of any provision of this Agreement to affect,
disturb or prejudice the rights of the Holders of any other of such
Certificates, or to obtain or seek to obtain priority over or
preference to any other such Holder, or to enforce any right under
this Agreement, except in the manner herein provided and for the
equal, ratable and common benefit of all Certificateholders. For
the protection and enforcement of the provisions of this Section
10.03, each and every Certificateholder and the Trustee shall be
entitled to such relief as can be given either at law or in
equity.

Section
10.04.    Access to List of Certificateholders. The
Certificate Registrar shall furnish or cause to be furnished to the
Trustee within 30 days after receipt of a request by the Trustee in
writing, a list, in such form as the Trustee may reasonably
require, of the names and addresses of the Certificateholders as of
the most recent Record Date for payment of distributions to such
Certificateholders.

If
three or more Certificateholders (hereinafter referred to as
“applicants”) apply in writing to the Trustee,
and such application states that the applicants desire to
communicate with other Certificateholders with respect to their
rights under this Agreement or under the Certificates and is
accompanied by a copy of the communication which such applicants
propose to transmit, then the Trustee shall, within five Business
Days after the receipt of such list from the Certificate Registrar,
afford such applicants access during normal business hours to the
most recent list of Certificateholders held by the Trustee. If such
a list is as of a date more than 90 days prior to the date of
receipt of such applicants’ request, the Trustee shall
promptly request from the Certificate Registrar a current list as
provided above, and shall afford such applicants access to such
list promptly upon receipt.

Every
Certificateholder, by receiving and holding the same, agrees with
the Servicer, the Company, the Trust, the Trustee and the Delaware
Trustee that none of the Servicer, the Company, the Trust, the
Trustee or the Delaware Trustee shall be held accountable by reason
of the disclosure of any such information as to the names and
addresses of the Certificateholders hereunder, regardless of the
source from which such information was derived.

Section
10.05.    Governing Law. This Agreement shall be
construed in accordance with the laws of the State of Delaware
without giving effect to its conflict of laws provisions and the
obligations, rights and remedies of the parties hereunder shall be
determined in accordance with such laws without giving effect to
conflict of laws provisions.

Section
10.06.    Notices. All demands, notices and
communications hereunder shall be in writing and shall be deemed to
have been duly given if personally delivered at or mailed by
registered or certified mail, return receipt requested, or
overnight courier to the applicable Notice Address. Notices to the
Rating Agencies shall also be deemed to have been duly given if
mailed by first class mail, postage prepaid, to the above listed
addresses of the Rating Agencies. Any notice required or permitted
to be mailed to a Certificateholder shall be given by first class
mail, postage prepaid, at the address of such Holder as shown in
the Certificate Register. Any notice so mailed within the time
prescribed in this Agreement shall be conclusively presumed to have
been duly given, whether or not the Certificateholder receives such
notice.

Section
10.07.    Compliance With Regulation AB. Each of the
parties hereto acknowledges and agrees that the purpose of Section
3.13, Section 8.18 and the last sentence of the third paragraph of
Section 2.05 is to facilitate compliance by the Company, the Trust
and Washington Mutual Bank with the provisions of Regulation AB, as
it may be amended or clarified from time to time. Each of the
Servicer and the Trustee acknowledges that interpretations of the
requirements of Regulation AB may change over time, whether due to
interpretive guidance provided by the Commission or its staff,
consensus among participants in the asset-backed securities
markets, advice of counsel, or otherwise, and agrees to comply with
reasonable requests made by the Company, the Trust or Washington
Mutual Bank in good faith for delivery of information under the
provisions of Regulation AB on the basis of evolving
interpretations thereof, and to deliver any other information
necessary in the good faith determination of the Company, the Trust
or Washington Mutual Bank to permit the Company, the Trust and
Washington Mutual Bank to comply with the provisions of Regulation
AB. Each of the Trust and Washington Mutual Bank shall be a
third-party beneficiary of the Servicer’s and the
Trustee’s respective obligations under Section 3.13, Section
8.18 and this Section 10.07.

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

Section
10.09.    Counterpart Signatures. For the purpose of
facilitating the recordation of this Agreement as herein provided
and for other purposes, this Agreement may be executed
simultaneously in any number of counterparts, each of which
counterparts shall be deemed to be an original, and such
counterparts shall constitute but one and the same instrument.

Section
10.10.    Benefits of Agreement. Except as expressly
provided herein, nothing in this Agreement or in any Certificate,
expressed or implied, shall give to any Person, other than the
parties hereto and their respective successors hereunder, any
separate trustee or co-trustee appointed under Section 8.10 and the
Certificateholders, any benefit or any legal or equitable right,
remedy or claim under this Agreement.

Section
10.11.    Notices and Copies to Rating Agencies.

(a)        The
Trustee shall notify the Rating Agencies of the occurrence of any
of the following events, in the manner provided in Section
10.06:

(i)                 
the occurrence of an Event of Default pursuant to Section 7.01,
subject to the provisions of Section 8.01(d); and

(ii)               
the appointment of a successor Servicer pursuant to Section
7.02;

(b)        The
Servicer shall notify the Rating Agencies of the occurrence of any
of the following events, or in the case of clauses (iii), (iv),
(v), (vii) and (viii) promptly upon receiving notice thereof, in
the manner provided in Section 10.06:

(iii)              
any amendment of this Agreement pursuant to Section 10.01;

(iv)             
the appointment of a successor Trustee or successor Delaware
Trustee pursuant to Section 8.08;

(v)               
the filing of any claim under or the cancellation or modification
of any fidelity bond and errors and omissions coverage pursuant to
Section 3.01 and Section 3.06 with respect to the Servicer;

(vi)             
any change in the location of the Certificate Account, any
Custodial Account for P&I or the Investment Account;

(vii)            
the purchase of any Mortgage Loan by the Company pursuant to
Section 2.08 or by a Seller pursuant to the Mortgage Loan Purchase
Agreement, or the purchase of the outstanding Mortgage Loans
pursuant to Section 9.01;

(viii)          
the occurrence of the final Distribution Date or the termination of
the Trust pursuant to Section 9.01(a)(ii);

(ix)             
the failure of the Servicer to make a Monthly P&I Advance
pursuant to Section 4.02; and

(x)               
the failure of the Servicer to make a determination by the close of
business on the second Business Day prior a Distribution Date
regarding whether it will make a Monthly P&I Advance for such
Distribution Date pursuant to Section 4.02.

The Servicer shall provide copies of the
statements pursuant to Section 4.02, Section 4.05, Section 3.13 or
Section 3.15 or any other statements or reports to the Rating
Agencies in such time and manner that such statements or
determinations are required to be provided to
Certificateholders.

 

Section
10.12.    Covenant Not to Place Trust Into Bankruptcy.
Each party hereto covenants that it shall not, until at least one
year and one day after all Certificates have been paid in full, (i)
take any action to file an involuntary bankruptcy petition against
the Trust, or (ii) institute against the Trust, or join in any
institution against the Trust of, any bankruptcy or insolvency
proceedings under any federal or state bankruptcy, insolvency or
similar law. In addition, each Certificateholder or Beneficial
Owner, by accepting and holding a Certificate or an interest
therein, agrees it shall not, until at least one year and one day
after all Certificates have been paid in full, take any action to
file an involuntary bankruptcy petition against the Trust.

Section
10.13.    Covenant Not to Place Company Into
Bankruptcy. Each party hereto (other than the
Company) covenants that it shall not, until at least one year and
one day after all securities issued by any trust to which the
Company has transferred property have been paid in full, take any
action to file an involuntary bankruptcy petition against the
Company.  In addition, each Certificateholder or Beneficial
Owner, by accepting and holding a Certificate or an interest
therein, agrees it shall not, until at least one year and one day
after all securities issued by any trust to which the Company has
transferred property have been paid in full, take any action to
file an involuntary bankruptcy petition against the Company.

IN
WITNESS WHEREOF, the Company, the Servicer, the Trustee and the
Delaware Trustee have caused their names to be signed hereto by
their respective officers, thereunto duly authorized, all as of the
date first above written.

	
 

	
WAMU ASSET ACCEPTANCE CORP.

 

By:  /s/ Barbara Loper

 Name:  Barbara Loper

 Title:   Vice President

	
 

 

	
 

	
 

	
WASHINGTON MUTUAL BANK,

 as Servicer

 

By: /s/ Jason Laukaitis

 Name:  Jason Laukaitis

 Title:    Assistant Vice President

	
 

 

	
 

	
 

	
LASALLE BANK NATIONAL ASSOCIATION, as Trustee

 

By: /s/ Susan L. Feld

 Name: Susan L. Feld

 Title: Assistant Vice President

	
 

 

	
 

	
 

	
CHRISTIANA BANK & TRUST COMPANY, as Delaware Trustee

 

By: /s/ James M. Young

 Name: James M. Young

 Title: Vice President

  

[Signature page to Pooling and Servicing
Agreement for WaMu Series 2007-HY1]

 

Appendix 1

 

Definition of Class Y Principal Reduction
Amounts

 

               
For any Distribution Date the amounts by which the principal
balances of the Class Y-1 and Class Y-2 Regular Interests
respectively will be reduced on such distribution date by the
allocation of Realized Losses and the distribution of principal,
determined as follows:

 

               
First for each of Loan Group 1 and Loan Group 2 determine the Loan
Group Weighted Average Pass-Through Rate for that Loan Group for
distributions of interest that will be made on the next succeeding
Distribution Date (the “Group Interest Rate”). 
The Principal Reduction Amount for each of the Class Y Regular
Interests will be determined pursuant to the “Generic
solution for the Class Y Principal Reduction Amounts” set
forth below (the “Generic Solution”) by making
identifications among the actual Loan Groups and their related
Class Y and Class Z Regular Interests and Loan Group Weighted
Average Pass-Through Rates and the Loan Groups named in the Generic
Solution and their related Class Y and Class Z Regular Interests as
follows:

 

               
A.  Determine which Loan Group has the lowest Group Interest
Rate.  That Loan Group will be identified with Loan
Group AA and the Class Y and Class Z Regular Interests related
to that Loan Group will be respectively identified with the
Class YAA and Class ZAA Regular Interests.  The
Group Interest Rate for that Loan Group will be identified with
J%.  If the two Loan Groups have the same Group Interest Rate
pick one for this purpose, subject to the restriction that each
Loan Group may be picked only once in the course of any such
selections pursuant to paragraphs A and B of this
definition.

 

               
B. Determine which Loan Group has the higher Group Interest
Rate.  That Loan Group will be identified with Group BB
and the Class Y and Class Z Regular Interests related to that Group
will be respectively identified with the Class BB and
Class ZBB Regular Interests.  The Group Interest Rate for
that Loan Group will be identified with K%.  If the two Loan
Groups have the same Group Interest Rate the Loan Group not
selected pursuant to paragraph A, above, will be selected for
purposes of this paragraph B.

 

               
Second, apply the Generic Solution set forth below to determine the
Class Y Principal Reduction Amounts for the Distribution Date using
the identifications made above.

 

               
Generic Solution for the Class Y Principal Reduction
Amounts:  For any Distribution Date, the
amounts by which the Class Principal Balances of the Class YAA and
Class YBB Regular Interests respectively will be reduced on such
Distribution Date by the allocation of Realized Losses and the
distribution of principal, determined as follows:

 

J% and
K% represent the interest rates on Group AA and Group BB
respectively.  J%<K%.

 

For
purposes of the succeeding formulas the following symbols shall
have the meanings set forth below:

 

PJB =
       the Group AA Subordinate
Balance after the allocation of Realized Losses and distributions
of principal on such Distribution Date.

 

PKB
=       the Group BB Subordinate
Balance after the allocation of Realized Losses and distributions
of principal on such Distribution Date.

 

R =
         the Class B
Certificate Interest Rate = (J%PJB +
K%PKB)/(PJB + PKB)

 

Yj =
        the Class YAA Principal
Balance after distributions on the prior Distribution
Date.

 

Yk =
        the Class YBB Principal
Balance after distributions on the prior Distribution
Date.

 

DYj =
     the Class YAA Principal Reduction
Amount.

 

DYk =
     the Class YBB Principal Reduction
Amount.

 

Zj =
        the Class ZAA Principal
Balance after distributions on the prior Distribution
Date.

 

Zk =
        the Class ZBB Principal
Balance after distributions on the prior Distribution
Date.

 

DZj =
     the Class ZAA Principal Reduction
Amount.

 

DZk =
     the Class ZBB Principal Reduction
Amount.

 

Pj =
        the aggregate Class
Principal Balance of the Class YAA and Class ZAA Regular Interests
after distributions on the prior Distribution Date, which is equal
to the aggregate principal balance of the Group AA Loans reduced by
the Group AA Class P Principal Balance, if any, and the Class R
Principal Balance, if applicable.

 

Pk =
        the aggregate Class
Principal Balance of the Class YBB and Class ZBB Regular Interests
after distributions on the prior Distribution Date, which is equal
to the aggregate principal balance of the Group BB Loans reduced by
the Group BB Class P Principal Balance, if any and Class R
Principal Balance, if applicable.

 

DPj
=       the aggregate principal
reduction resulting on such Distribution Date on the Group AA Loans
as a result of principal distributions (exclusive of any amounts
distributed pursuant to clauses (c)(i) or (c)(ii) of the definition
of REMIC I Distribution Amount) to be made and Realized Losses to
be allocated on such Distribution Date, reduced by the portion, if
any, of such reduction allocable to any Group AA Class P
Certificates or the Class R Certificates, if applicable, which is
equal to the aggregate of the Class YAA and Class ZAA Principal
Reduction Amounts.

 

DPk=        the
aggregate principal reduction resulting on such Distribution Date
on the Group BB Loans as a result of principal distributions
(exclusive of any amounts distributed pursuant to clauses (c)(i) or
(c)(ii) of the definition of REMIC I Distribution Amount) to be
made and Realized Losses to be allocated on such Distribution Date,
reduced by the portion, if any, of such reduction allocable to any
Group BB Class P Certificates or the Class R Certificates, if
applicable, which is equal to the aggregate of the Class YBB and
Class ZBB Principal Reduction Amounts.

 

a =
         .0005

 

g =          
(R – J%)/(K% - R).  g is a non-negative number unless
its denominator is zero, in which event it is undefined.

 

If g is zero, DYk =
Yk and DYj = (Yj/Pj)DPj.

 

If g is undefined, DYj =
Yj, DYk = (Yk/Pk)DPk.

 

In the remaining
situations, DYk and DYj shall be defined as
follows:

 

1.       
If Yk - a(Pk - DPk)
30,
Yj- a(Pj - DPj) 3 0, and g (Pj
- DPj) < (Pk - DPk), DYk = Yk - 
ag (Pj - 
DPj)
and DYj = Yj - 
a(Pj -  DPj).

2.       
If Yk ‐  a(Pk ‐  DPk) 3 0,
Yj ‐  a(Pj ‐  DPj) 3 0, and g (Pj ‐  DPj) 3 (Pk ‐  DPk), DYk = Yk ‐ 
a(Pk ‐  DPk) and DYj = Yj ‐ (a/g)(Pk ‐  DPk).

3.       
If Yk ‐  a(Pk ‐  DPk) < 0,
Yj ‐  a(Pj ‐  DPj) 3 0, and
Yj ‐  a(Pj ‐  DPj) 3 Yj ‐ (Yk/g), DYk = Yk ‐ 
ag (Pj ‐  DPj) and DYj = Yj ‐ 
a(Pj ‐  DPj).

4.       
If Yk ‐  a(Pk ‐  DPk) < 0,
Yj ‐ (Yk/g)  3 0, and
Yj ‐  a(Pj ‐  DPj)  £ Yj ‐ (Yk/g), DYk = 0 and DYj = Yj ‐ (Y
k/g).

5.       
If Yj ‐  a(Pj ‐  DPj) < 0,
Yj ‐ (Yk/g) < 0, and
Yk ‐  a(Pk ‐  DPk)  £ Yk ‐ (gYj), DYk = Yk ‐ (gYj)
and DYj = 0.

6.       
If Yj ‐  a(Pj ‐  DPj) < 0,
Yk ‐  a(Pk ‐  DPk) 3 0, and
Yk ‐  a(Pk ‐  DPk) 3 Yk ‐ (gYj), DYk = Yk ‐ 
a(Pk ‐  DPk) and DYj = Yj ‐ (a/g)(Pk ‐  DPk).

 

The
purpose of the foregoing definitional provisions together with the
related provisions allocating Realized Losses and defining the
Class Y and Class Z Principal Distribution Amounts is to accomplish
the following goals in the following order of priority:

 

1.       
Making the ratio of Yk to Yj
equal to g after taking account of the allocation of Realized Losses and
the distributions that will be made through end of the Distribution
Date to which such provisions relate and assuring that the
Principal Reduction Amount for each of the Class YAA, Class YBB,
Class ZAA and Class ZBB Regular Interests is greater than or equal
to zero for such Distribution Date;

2.       
Making (i) the Class YAA Principal Balance less than
or equal to 0.0005 of the sum of the Class YAA and Class ZAA
Principal Balances and (ii) the Class YBB Principal Balance less
than or equal to 0.0005 of the sum of the Class YBB and Class ZBB
Principal Balances in each case after giving effect to allocations
of Realized Losses and distributions to be made through the end of
the Distribution Date to which such provisions relate;
and

3.       
Making the larger of (a) the fraction whose
numerator is Yk and whose denominator is the sum of
Yk and Zk and (b) the fraction whose
numerator is Yj and whose denominator is the sum of
Yj, and Zj as large as possible while
remaining less than or equal to 0.0005.

 

In the
event of a failure of the foregoing portion of the definition of
Class Y Principal Reduction Amounts to accomplish both of goals 1
and 2 above, the amounts thereof should be adjusted so as to
accomplish such goals within the requirement that each Class Y
Principal Reduction Amount must be less than or equal to the sum of
(a) the principal portion of Realized Losses to be allocated on the
related Distribution Date for the related Loan Group remaining
after the allocation of such Realized Losses to the related Class P
Certificates, if any, and (b) the remainder of the REMIC I
Available Distribution Amount for the related Loan Group after
reduction thereof by the distributions to be made on such
Distribution Date (i) to the related Class P Certificates, if any,
(ii) to the related Class X Certificates, if any, and (iii) in
respect of interest on the related Class Y and Class Z Regular
Interests, or, if both of such goals cannot be accomplished within
such requirement, such adjustment as is necessary shall be made to
accomplish goal 1 within such requirement.  In the event of
any conflict among the provisions of the definition of the Class Y
Principal Reduction Amounts, such conflict shall be resolved on the
basis of the goals and their priorities set forth above within the
requirement set forth in the preceding sentence.

 

 

In the execution copy of this Agreement, symbols
are represented by the following labels; in any conformed copy of
this Agreement, such symbols may be represented by characters other
than numerals and the upper and lower case letters of the alphabet
and standard punctuation, including, without limitation, Greek
letters and mathematical symbols.

 

Example:

 

	
a

	
alpha

	
D

	
delta

	
g

	
gamma

 

 

	
 

	
Exhibit
A

	
 

	
CUSIP
92925 VA A8

 

	
WaMu
MORTGAGE PASS-THROUGH CERTIFICATE

	
 

	
Class
1-A1

 

Evidencing
a beneficial interest in a trust that owns a pool of assets
consisting of, among other things, conventional one- to four-family
mortgage loans formed by

	
 

	
WaMu ASSET ACCEPTANCE
CORP.

	
 

 

This
Certificate is issued by WaMu Mortgage Pass-Through Certificates
Series 2007-HY1 Trust. This Certificate represents ownership of a
“regular interest” in a “real estate mortgage
investment conduit,” as those terms are defined in Sections
860G and 860D, respectively, of the Internal Revenue Code of 1986,
as amended. The issue date of this Certificate is January 24,
2007.

Unless
this Certificate is presented by an authorized representative of
The Depository Trust Company, a New York corporation
(“DTC”), to the Trust or its agent for registration of
transfer, exchange, or payment, and any Certificate issued is
registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment
is made to Cede & Co. or to such other entity as is requested
by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL inasmuch as the registered owner hereof, Cede & Co.,
has an interest herein.

 

	
Series
2007-HY1

	
Portion
of the Class 1-A1 Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

	
$603,886,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class
1-A1 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off
Date:

	
January
1, 2007

	
 

	
First
Distribution Date:

	
February
26, 2007

	
 

	
Last
Scheduled Distribution Date:

	
February
25, 2037

	
 

	
Class
1-A1 Principal Balance as of the Cut-Off Date:

	
$603,886,000.00

	
 

 

 

	
Cede
& Co.

	
Registered Owner

	
Certificate No.

 

 

 

	
 

	
Exhibit
A

	
 

	
CUSIP
92925 VAB6

 

	
WaMu
MORTGAGE PASS-THROUGH CERTIFICATE

	
 

	
Class
1-A2

 

Evidencing
a beneficial interest in a trust that owns a pool of assets
consisting of, among other things, conventional one- to four-family
mortgage loans formed by

	
 

	
WaMu ASSET ACCEPTANCE
CORP.

	
 

 

 

This
Certificate is issued by WaMu Mortgage Pass-Through Certificates
Series 2007-HY1 Trust. This Certificate represents ownership of a
“regular interest” in a “real estate mortgage
investment conduit,” as those terms are defined in Sections
860G and 860D, respectively, of the Internal Revenue Code of 1986,
as amended. The issue date of this Certificate is January 24,
2007.

Unless
this Certificate is presented by an authorized representative of
The Depository Trust Company, a New York corporation
(“DTC”), to the Trust or its agent for registration of
transfer, exchange, or payment, and any Certificate issued is
registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment
is made to Cede & Co. or to such other entity as is requested
by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL inasmuch as the registered owner hereof, Cede & Co.,
has an interest herein.

The Class
1-A2 Certificates will provide credit support to certain Classes of
Certificates, as described in the Pooling Agreement.

 

	
Series
2007-HY1

	
Portion
of the Class 1-A2 Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

	
$26,476,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class
1-A2 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off
Date:

	
January
1, 2007

	
 

	
First
Distribution Date:

	
February
26, 2007

	
 

	
Last
Scheduled Distribution Date:

	
February
25, 2037

	
 

	
Class
1-A2 Principal Balance as of the Cut-Off Date:

	
$26,476,000.00

	
 

 

 

	
Cede
& Co.

	
Registered Owner

 

 

 

	
 

	
Exhibit
A

	
 

	
CUSIP
92925 VA C4

 

 

	
WaMu
MORTGAGE PASS-THROUGH CERTIFICATE

	
 

	
Class
2-A1

 

Evidencing
a beneficial interest in a trust that owns a pool of assets
consisting of, among other things, conventional one- to four-family
mortgage loans formed by

	
 

	
WaMu ASSET ACCEPTANCE
CORP.

	
 

 

 

This
Certificate is issued by WaMu Mortgage Pass-Through Certificates
Series 2007-HY1 Trust. This Certificate represents ownership of a
“regular interest” in a “real estate mortgage
investment conduit,” as those terms are defined in Sections
860G and 860D, respectively, of the Internal Revenue Code of 1986,
as amended. The issue date of this Certificate is January 24,
2007.

Unless
this Certificate is presented by an authorized representative of
The Depository Trust Company, a New York corporation
(“DTC”), to the Trust or its agent for registration of
transfer, exchange, or payment, and any Certificate issued is
registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment
is made to Cede & Co. or to such other entity as is requested
by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL inasmuch as the registered owner hereof, Cede & Co.,
has an interest herein.

 

	
Series
2007-HY1

	
Portion
of the Class 2-A1 Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

	
$258,607,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class
2-A1 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off
Date:

	
January
1, 2007

	
 

	
First
Distribution Date:

	
February
26, 2007

	
 

	
Last
Scheduled Distribution Date:

	
February
25, 2037

	
 

	
Class
2-A1 Principal Balance as of the Cut-Off Date:

	
$258,607,000.00

	
 

 

 

	
Cede
& Co.

	
Registered Owner

 

	
 

	
Exhibit
A

	
 

	
CUSIP
92925 VA D2

 

 

	
WaMu
MORTGAGE PASS-THROUGH CERTIFICATE

	
 

	
Class
2-A2A

 

Evidencing
a beneficial interest in a trust that owns a pool of assets
consisting of, among other things, conventional one- to four-family
mortgage loans formed by

	
 

	
WaMu ASSET ACCEPTANCE
CORP.

	
 

 

 

This
Certificate is issued by WaMu Mortgage Pass-Through Certificates
Series 2007-HY1 Trust. This Certificate represents ownership of a
“regular interest” in a “real estate mortgage
investment conduit,” as those terms are defined in Sections
860G and 860D, respectively, of the Internal Revenue Code of 1986,
as amended. The issue date of this Certificate is January 24,
2007.

Unless
this Certificate is presented by an authorized representative of
The Depository Trust Company, a New York corporation
(“DTC”), to the Trust or its agent for registration of
transfer, exchange, or payment, and any Certificate issued is
registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment
is made to Cede & Co. or to such other entity as is requested
by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL inasmuch as the registered owner hereof, Cede & Co.,
has an interest herein.

 

	
Series
2007-HY1

	
Portion
of the Class 2-A2A Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

	
$82,753,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class
2-A2A Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off
Date:

	
January
1, 2007

	
 

	
First
Distribution Date:

	
February
26, 2007

	
 

	
Last
Scheduled Distribution Date:

	
February
25, 2037

	
 

	
Class
2-A2A Principal Balance as of the Cut-Off Date:

	
$82,753,000.00

	
 

 

 

	
Cede
& Co.

	
Registered Owner

 

	
 

	
Exhibit
A

	
 

	
CUSIP
92925 VA E0

 

 

	
WaMu
MORTGAGE PASS-THROUGH CERTIFICATE

	
 

	
Class
2-A2B

 

Evidencing
a beneficial interest in a trust that owns a pool of assets
consisting of, among other things, conventional one- to four-family
mortgage loans formed by

	
 

	
WaMu ASSET ACCEPTANCE
CORP.

	
 

 

 

This
Certificate is issued by WaMu Mortgage Pass-Through Certificates
Series 2007-HY1 Trust. This Certificate represents ownership of a
“regular interest” in a “real estate mortgage
investment conduit,” as those terms are defined in Sections
860G and 860D, respectively, of the Internal Revenue Code of 1986,
as amended. The issue date of this Certificate is January 24,
2007.

Unless
this Certificate is presented by an authorized representative of
The Depository Trust Company, a New York corporation
(“DTC”), to the Trust or its agent for registration of
transfer, exchange, or payment, and any Certificate issued is
registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment
is made to Cede & Co. or to such other entity as is requested
by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL inasmuch as the registered owner hereof, Cede & Co.,
has an interest herein.

The Class
2-A2B Certificates will provide credit support to certain Classes
of Certificates, as described in the Pooling Agreement.

 

	
Series
2007-HY1

	
Portion
of the Class 2-A2B Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

	
$3,449,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class
2-A2B Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off
Date:

	
January
1, 2007

	
 

	
First
Distribution Date:

	
February
26, 2007

	
 

	
Last
Scheduled Distribution Date:

	
February
25, 2037

	
 

	
Class
2-A2B Principal Balance as of the Cut-Off Date:

	
$3,449,000.00

	
 

 

 

	
Cede
& Co.

	
Registered Owner

 

	
 

	
Exhibit
A

	
 

	
CUSIP
92925 VA F7

 

	
WaMu
MORTGAGE PASS-THROUGH CERTIFICATE

	
 

	
Class
2-A3

 

Evidencing
a beneficial interest in a trust that owns a pool of assets
consisting of, among other things, conventional one- to four-family
mortgage loans formed by

	
 

	
WaMu ASSET ACCEPTANCE
CORP.

	
 

 

 

This
Certificate is issued by WaMu Mortgage Pass-Through Certificates
Series 2007-HY1 Trust. This Certificate represents ownership of a
“regular interest” in a “real estate mortgage
investment conduit,” as those terms are defined in Sections
860G and 860D, respectively, of the Internal Revenue Code of 1986,
as amended. The issue date of this Certificate is January 24,
2007.

Unless
this Certificate is presented by an authorized representative of
The Depository Trust Company, a New York corporation
(“DTC”), to the Trust or its agent for registration of
transfer, exchange, or payment, and any Certificate issued is
registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment
is made to Cede & Co. or to such other entity as is requested
by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL inasmuch as the registered owner hereof, Cede & Co.,
has an interest herein.

 

	
Series
2007-HY1

	
Portion
of the Class 2-A3 Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

	
$343,262,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class
2-A3 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off
Date:

	
January
1, 2007

	
 

	
First
Distribution Date:

	
February
26, 2007

	
 

	
Last
Scheduled Distribution Date:

	
February
25, 2037

	
 

	
Class
2-A3 Principal Balance as of the Cut-Off Date:

	
$343,262,000.00

	
 

 

 

	
Cede
& Co.

	
Registered Owner

 

	
 

	
Exhibit
A

	
 

	
CUSIP
92925 VA G5

 

	
WaMu
MORTGAGE PASS-THROUGH CERTIFICATE

	
 

	
Class
2-A4

 

Evidencing
a beneficial interest in a trust that owns a pool of assets
consisting of, among other things, conventional one- to four-family
mortgage loans formed by

	
 

	
WaMu ASSET ACCEPTANCE
CORP.

	
 

 

 

This
Certificate is issued by WaMu Mortgage Pass-Through Certificates
Series 2007-HY1 Trust. This Certificate represents ownership of a
“regular interest” in a “real estate mortgage
investment conduit,” as those terms are defined in Sections
860G and 860D, respectively, of the Internal Revenue Code of 1986,
as amended. The issue date of this Certificate is January 24,
2007.

Unless
this Certificate is presented by an authorized representative of
The Depository Trust Company, a New York corporation
(“DTC”), to the Trust or its agent for registration of
transfer, exchange, or payment, and any Certificate issued is
registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment
is made to Cede & Co. or to such other entity as is requested
by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL inasmuch as the registered owner hereof, Cede & Co.,
has an interest herein.

The Class
2-A4 Certificates will provide credit support to certain Classes of
Certificates, as described in the Pooling Agreement.

 

	
Series
2007-HY1

	
Portion
of the Class 2-A4 Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

	
$31,556,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class
2-A4 Certificate Interest Rate:

	
variable

	
 

	
Cut-Off
Date:

	
January
1, 2007

	
 

	
First
Distribution Date:

	
February
26, 2007

	
 

	
Last
Scheduled Distribution Date:

	
February
25, 2037

	
 

	
Class
2-A4 Principal Balance as of the Cut-Off Date:

	
$31,556,000.00

	
 

 

 

	
Cede
& Co.

	
Registered Owner

 

	
 

	
Exhibit
A

	
 

	
CUSIP
92925 VA H3

 

	
WaMu
MORTGAGE PASS-THROUGH CERTIFICATE

	
 

	
Class
3-A1

 

Evidencing
a beneficial interest in a trust that owns a pool of assets
consisting of, among other things, conventional one- to four-family
mortgage loans formed by

	
 

	
WaMu ASSET ACCEPTANCE
CORP.

	
 

 

This
Certificate is issued by WaMu Mortgage Pass-Through Certificates
Series 2007-HY1 Trust. This Certificate represents ownership of a
“regular interest” in a “real estate mortgage
investment conduit,” as those terms are defined in Sections
860G and 860D, respectively, of the Internal Revenue Code of 1986,
as amended. The issue date of this Certificate is January 24,
2007.

Unless
this Certificate is presented by an authorized representative of
The Depository Trust Company, a New York corporation
(“DTC”), to the Trust or its agent for registration of
transfer, exchange, or payment, and any Certificate issued is
registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment
is made to Cede & Co. or to such other entity as is requested
by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL inasmuch as the registered owner hereof, Cede & Co.,
has an interest herein.

 

	
Series
2007-HY1

	
Portion
of the Class 3-A1 Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

	
$175,621,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class
3-A1 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off
Date:

	
January
1, 2007

	
 

	
First
Distribution Date:

	
February
26, 2007

	
 

	
Last
Scheduled Distribution Date:

	
February
25, 2037

	
 

	
Class
3-A1 Principal Balance as of the Cut-Off Date:

	
$175,621,000.00

	
 

 

 

	
Cede
& Co.

	
Registered Owner

 

	
 

	
Exhibit
A

	
 

	
CUSIP
92925 VA J9

 

	
WaMu
MORTGAGE PASS-THROUGH CERTIFICATE

	
 

	
Class
3-A2

 

Evidencing
a beneficial interest in a trust that owns a pool of assets
consisting of, among other things, conventional one- to four-family
mortgage loans formed by

	
 

	
WaMu ASSET ACCEPTANCE
CORP.

	
 

 

This
Certificate is issued by WaMu Mortgage Pass-Through Certificates
Series 2007-HY1 Trust. This Certificate represents ownership of a
“regular interest” in a “real estate mortgage
investment conduit,” as those terms are defined in Sections
860G and 860D, respectively, of the Internal Revenue Code of 1986,
as amended. The issue date of this Certificate is January 24,
2007.

Unless
this Certificate is presented by an authorized representative of
The Depository Trust Company, a New York corporation
(“DTC”), to the Trust or its agent for registration of
transfer, exchange, or payment, and any Certificate issued is
registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment
is made to Cede & Co. or to such other entity as is requested
by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL inasmuch as the registered owner hereof, Cede & Co.,
has an interest herein.

 

	
Series
2007-HY1

	
Portion
of the Class 3-A2 Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

	
$55,650,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class
3-A2 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off
Date:

	
January
1, 2007

	
 

	
First
Distribution Date:

	
February
26, 2007

	
 

	
Last
Scheduled Distribution Date:

	
February
25, 2037

	
 

	
Class
3-A2 Principal Balance as of the Cut-Off Date:

	
$55,650,000.00

	
 

 

 

	
Cede
& Co.

	
Registered Owner

 

	
 

	
Exhibit
A

	
 

	
CUSIP
92925 VA K6

 

	
WaMu
MORTGAGE PASS-THROUGH CERTIFICATE

	
 

	
Class
3-A3

 

Evidencing
a beneficial interest in a trust that owns a pool of assets
consisting of, among other things, conventional one- to four-family
mortgage loans formed by

	
 

	
WaMu ASSET ACCEPTANCE
CORP.

	
 

 

This
Certificate is issued by WaMu Mortgage Pass-Through Certificates
Series 2007-HY1 Trust. This Certificate represents ownership of a
“regular interest” in a “real estate mortgage
investment conduit,” as those terms are defined in Sections
860G and 860D, respectively, of the Internal Revenue Code of 1986,
as amended. The issue date of this Certificate is January 24,
2007.

Unless
this Certificate is presented by an authorized representative of
The Depository Trust Company, a New York corporation
(“DTC”), to the Trust or its agent for registration of
transfer, exchange, or payment, and any Certificate issued is
registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment
is made to Cede & Co. or to such other entity as is requested
by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL inasmuch as the registered owner hereof, Cede & Co.,
has an interest herein.

 

	
Series
2007-HY1

	
Portion
of the Class 3-A3 Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

	
$77,090,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class
3-A3 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off
Date:

	
January
1, 2007

	
 

	
First
Distribution Date:

	
February
26, 2007

	
 

	
Last
Scheduled Distribution Date:

	
February
25, 2037

	
 

	
Class
3-A3 Principal Balance as of the Cut-Off Date:

	
$77,090,000.00

	
 

 

 

	
Cede
& Co.

	
Registered Owner

 

	
 

	
Exhibit
A

	
 

	
CUSIP
92925 VA L4

 

	
WaMu
MORTGAGE PASS-THROUGH CERTIFICATE

	
 

	
Class
3-A4

 

Evidencing
a beneficial interest in a trust that owns a pool of assets
consisting of, among other things, conventional one- to four-family
mortgage loans formed by

	
 

	
WaMu ASSET ACCEPTANCE
CORP.

	
 

 

This
Certificate is issued by WaMu Mortgage Pass-Through Certificates
Series 2007-HY1 Trust. This Certificate represents ownership of a
“regular interest” in a “real estate mortgage
investment conduit,” as those terms are defined in Sections
860G and 860D, respectively, of the Internal Revenue Code of 1986,
as amended. The issue date of this Certificate is January 24,
2007.

Unless
this Certificate is presented by an authorized representative of
The Depository Trust Company, a New York corporation
(“DTC”), to the Trust or its agent for registration of
transfer, exchange, or payment, and any Certificate issued is
registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment
is made to Cede & Co. or to such other entity as is requested
by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL inasmuch as the registered owner hereof, Cede & Co.,
has an interest herein.

The Class
3-A4 Certificates will provide credit support to certain Classes of
Certificates, as described in the Pooling Agreement

 

	
Series
2007-HY1

	
Portion
of the Class 3-A4 Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

	
$10,689,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class
3-A4 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off
Date:

	
January
1, 2007

	
 

	
First
Distribution Date:

	
February
26, 2007

	
 

	
Last
Scheduled Distribution Date:

	
February
25, 2037

	
 

	
Class
3-A4 Principal Balance as of the Cut-Off Date:

	
$10,689,000.00

	
 

 

 

	
Cede
& Co.

	
Registered Owner

 

	
 

	
Exhibit
A

	
 

	
CUSIP
92925 VA M2

 

	
WaMu
MORTGAGE PASS-THROUGH CERTIFICATE

	
 

	
Class
4-A1

 

Evidencing
a beneficial interest in a trust that owns a pool of assets
consisting of, among other things, conventional one- to four-family
mortgage loans formed by

	
 

	
WaMu ASSET ACCEPTANCE
CORP.

	
 

 

This
Certificate is issued by WaMu Mortgage Pass-Through Certificates
Series 2007-HY1 Trust. This Certificate represents ownership of a
“regular interest” in a “real estate mortgage
investment conduit,” as those terms are defined in Sections
860G and 860D, respectively, of the Internal Revenue Code of 1986,
as amended. The issue date of this Certificate is January 24,
2007.

Unless
this Certificate is presented by an authorized representative of
The Depository Trust Company, a New York corporation
(“DTC”), to the Trust or its agent for registration of
transfer, exchange, or payment, and any Certificate issued is
registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment
is made to Cede & Co. or to such other entity as is requested
by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL inasmuch as the registered owner hereof, Cede & Co.,
has an interest herein.

 

	
Series
2007-HY1

	
Portion
of the Class 4-A1 Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

	
$655,932,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class
4-A1 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off
Date:

	
January
1, 2007

	
 

	
First
Distribution Date:

	
February
26, 2007

	
 

	
Last
Scheduled Distribution Date:

	
May 25,
2036

	
 

	
Class
4-A1 Principal Balance as of the Cut-Off Date:

	
$655,932,000.00

	
 

 

 

	
Cede
& Co.

	
Registered Owner

	
Certificate No.

 

 

 

 

	
 

	
Exhibit
A

	
 

	
CUSIP
92925 VA N0

 

	
WaMu
MORTGAGE PASS-THROUGH CERTIFICATE

	
 

	
Class
4-A2

 

Evidencing
a beneficial interest in a trust that owns a pool of assets
consisting of, among other things, conventional one- to four-family
mortgage loans formed by

	
 

	
WaMu ASSET ACCEPTANCE
CORP.

	
 

 

 

This
Certificate is issued by WaMu Mortgage Pass-Through Certificates
Series 2007-HY1 Trust. This Certificate represents ownership of a
“regular interest” in a “real estate mortgage
investment conduit,” as those terms are defined in Sections
860G and 860D, respectively, of the Internal Revenue Code of 1986,
as amended. The issue date of this Certificate is January 24,
2007.

Unless
this Certificate is presented by an authorized representative of
The Depository Trust Company, a New York corporation
(“DTC”), to the Trust or its agent for registration of
transfer, exchange, or payment, and any Certificate issued is
registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment
is made to Cede & Co. or to such other entity as is requested
by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL inasmuch as the registered owner hereof, Cede & Co.,
has an interest herein.

The Class
4-A2 Certificates will provide credit support to certain Classes of
Certificates, as described in the Pooling Agreement.

 

	
Series
2007-HY1

	
Portion
of the Class 4-A2 Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

	
$34,525,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class
4-A2 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off
Date:

	
January
1, 2007

	
 

	
First
Distribution Date:

	
February
26, 2007

	
 

	
Last
Scheduled Distribution Date:

	
May 25,
2036

	
 

	
Class
4-A2 Principal Balance as of the Cut-Off Date:

	
$34,525,000.00

	
 

 

 

	
Cede
& Co.

	
Registered Owner

 

	
 

	
Exhibit
A

	
 

	
CUSIP
92925 VA P5

 

	
WaMu
MORTGAGE PASS-THROUGH CERTIFICATE

	
 

	
Class
5-A1

 

Evidencing
a beneficial interest in a trust that owns a pool of assets
consisting of, among other things, conventional one- to four-family
mortgage loans formed by

	
 

	
WaMu ASSET ACCEPTANCE
CORP.

	
 

 

This
Certificate is issued by WaMu Mortgage Pass-Through Certificates
Series 2007-HY1 Trust. This Certificate represents ownership of a
“regular interest” in a “real estate mortgage
investment conduit,” as those terms are defined in Sections
860G and 860D, respectively, of the Internal Revenue Code of 1986,
as amended. The issue date of this Certificate is January 24,
2007.

Unless
this Certificate is presented by an authorized representative of
The Depository Trust Company, a New York corporation
(“DTC”), to the Trust or its agent for registration of
transfer, exchange, or payment, and any Certificate issued is
registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment
is made to Cede & Co. or to such other entity as is requested
by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL inasmuch as the registered owner hereof, Cede & Co.,
has an interest herein.

 

	
Series
2007-HY1

	
Portion
of the Class 5-A1 Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

	
$519,145,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class
5-A1 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off
Date:

	
January
1, 2007

	
 

	
First
Distribution Date:

	
February
26, 2007

	
 

	
Last
Scheduled Distribution Date:

	
August
25, 2036

	
 

	
Class
5-A1 Principal Balance as of the Cut-Off Date:

	
$519,145,000.00

	
 

 

 

	
Cede
& Co.

	
Registered Owner

	
Certificate No.

 

 

 

	
 

	
Exhibit
A

	
 

	
CUSIP
92925 VA Q3

 

	
WaMu
MORTGAGE PASS-THROUGH CERTIFICATE

	
 

	
Class
5-A2

 

Evidencing
a beneficial interest in a trust that owns a pool of assets
consisting of, among other things, conventional one- to four-family
mortgage loans formed by

	
 

	
WaMu ASSET ACCEPTANCE
CORP.

	
 

 

 

This
Certificate is issued by WaMu Mortgage Pass-Through Certificates
Series 2007-HY1 Trust. This Certificate represents ownership of a
“regular interest” in a “real estate mortgage
investment conduit,” as those terms are defined in Sections
860G and 860D, respectively, of the Internal Revenue Code of 1986,
as amended. The issue date of this Certificate is January 24,
2007.

Unless
this Certificate is presented by an authorized representative of
The Depository Trust Company, a New York corporation
(“DTC”), to the Trust or its agent for registration of
transfer, exchange, or payment, and any Certificate issued is
registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment
is made to Cede & Co. or to such other entity as is requested
by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL inasmuch as the registered owner hereof, Cede & Co.,
has an interest herein.

The Class
5-A2 Certificates will provide credit support to certain Classes of
Certificates, as described in the Pooling Agreement.

 

	
Series
2007-HY1

	
Portion
of the Class 5-A2 Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

	
$27,324,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class
5-A2 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off
Date:

	
January
1, 2007

	
 

	
First
Distribution Date:

	
February
26, 2007

	
 

	
Last
Scheduled Distribution Date:

	
August
25, 2036

	
 

	
Class
5-A2 Principal Balance as of the Cut-Off Date:

	
$27,324,000.00

	
 

 

 

	
Cede
& Co.

	
Registered Owner

 

	
 

	
Exhibit A

	
 

	
CUSIP
92925 VA R1

 

	
WaMu
MORTGAGE PASS-THROUGH CERTIFICATE

	
 

	
Class
L-B-1

 

Evidencing
a beneficial interest in a trust that owns a pool of assets
consisting of, among other things, conventional one- to four-family
mortgage loans formed by

	
 

	
WaMu ASSET ACCEPTANCE
CORP.

	
 

 

This
Certificate is issued by WaMu Mortgage Pass-Through Certificates
Series 2007-HY1 Trust. This Certificate represents ownership of a
“regular interest” in a “real estate mortgage
investment conduit,” as those terms are defined in Sections
860G and 860D, respectively, of the Internal Revenue Code of 1986,
as amended (the “Code”). The issue date of this
Certificate is January 24, 2007.

Unless
this Certificate is presented by an authorized representative of
The Depository Trust Company, a New York corporation
(“DTC”), to the Trust or its agent for registration of
transfer, exchange, or payment, and any Certificate issued is
registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment
is made to Cede & Co. or to such other entity as is requested
by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL inasmuch as the registered owner hereof, Cede & Co.,
has an interest herein.

NO
TRANSFER OF THIS CLASS L-B-1 CERTIFICATE WILL BE MADE UNLESS THE
TRUSTEE HAS RECEIVED (I) AN OFFICER’S CERTIFICATE IN THE FORM
DESCRIBED IN SECTION 5.01(g) OF THE POOLING AGREEMENT AND (II) IF
SO INDICATED IN SUCH OFFICER’S CERTIFICATE, AN OPINION OF
COUNSEL ACCEPTABLE TO AND IN FORM AND SUBSTANCE SATISFACTORY TO THE
TRUSTEE AND THE COMPANY TO THE EFFECT THAT THE PURCHASE AND HOLDING
OF THIS CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT
CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, AND WILL NOT
SUBJECT THE TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER
OR THE COMPANY TO ANY OBLIGATION OR LIABILITY (INCLUDING
OBLIGATIONS OR LIABILITIES UNDER SECTION 406 OF ERISA OR SECTION
4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE POOLING
AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE
TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER OR THE
COMPANY.

NOTWITHSTANDING THE FOREGOING PARAGRAPH, WITH
RESPECT TO THE TRANSFER OF THIS CLASS L-B-1 CERTIFICATE TO DTC OR
ANY OTHER CLEARING AGENCY OR ANY SUBSEQUENT TRANSFER OF ANY
INTEREST IN THIS CERTIFICATE FOR SO LONG AS THIS CERTIFICATE IS
HELD BY DTC OR ANY OTHER CLEARING AGENCY, (I) AN OFFICER’S
CERTIFICATE (AND, IF APPLICABLE, A BENEFIT PLAN OPINION), AS
DESCRIBED IN THE FOREGOING PARAGRAPH, SHALL NOT BE REQUIRED, AND
(II) THE FOLLOWING CONDITIONS SHALL APPLY:

1.            
ANY TRANSFEREE OF THIS CERTIFICATE WILL BE DEEMED TO HAVE
REPRESENTED, BY VIRTUE OF ITS ACQUISITION OR HOLDING OF THIS
CERTIFICATE (OR INTEREST HEREIN), THAT EITHER (A) SUCH TRANSFEREE
IS NOT AN EMPLOYEE BENEFIT OR OTHER PLAN SUBJECT TO THE PROHIBITED
TRANSACTION PROVISIONS OF ERISA OR SECTION 4975 OF THE CODE, OR ANY
PERSON (INCLUDING AN INVESTMENT MANAGER, A NAMED FIDUCIARY OR A
TRUSTEE OF ANY SUCH PLAN) ACTING, DIRECTLY OR INDIRECTLY, ON BEHALF
OF OR PURCHASING THIS CERTIFICATE WITH “PLAN ASSETS” OF
ANY SUCH PLAN (A “PLAN INVESTOR”), (B) SUCH TRANSFEREE
IS AN INSURANCE COMPANY, THE SOURCE OF FUNDS TO BE USED BY IT TO
ACQUIRE OR HOLD THIS CERTIFICATE IS AN “INSURANCE COMPANY
GENERAL ACCOUNT” (WITHIN THE MEANING OF DEPARTMENT OF LABOR
PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 95-60),
AND THE CONDITIONS IN SECTIONS I AND III OF PTCE 95-60 HAVE BEEN
SATISFIED (EACH ENTITY THAT SATISFIES THIS CLAUSE (B), A
“COMPLYING INSURANCE COMPANY”) OR (C) THIS CERTIFICATE
WAS RATED “BBB-” OR BETTER (OR ITS EQUIVALENT) BY AT
LEAST ONE OF THE RATING AGENCIES AT THE TIME OF SUCH
TRANSFEREE’S ACQUISITION OF THIS CERTIFICATE (OR INTEREST
HEREIN); AND

2.            
IF THIS CERTIFICATE (OR ANY INTEREST HEREIN) IS ACQUIRED OR HELD IN
VIOLATION OF THE PROVISIONS OF THE PRECEDING PARAGRAPH, THEN THE
LAST PRECEDING TRANSFEREE THAT EITHER (I) IS NOT A PLAN INVESTOR,
(II) IS A COMPLYING INSURANCE COMPANY OR (III) ACQUIRED THIS
CERTIFICATE AT A TIME WHEN THIS CERTIFICATE WAS RATED
“BBB-” OR BETTER (OR ITS EQUIVALENT) BY AT LEAST ONE OF
THE RATING AGENCIES SHALL BE RESTORED, TO THE EXTENT PERMITTED BY
LAW, TO ALL RIGHTS AND OBLIGATIONS AS BENEFICIAL HOLDER THEREOF
RETROACTIVE TO THE DATE OF TRANSFER OF THIS CERTIFICATE BY SUCH
PRECEDING TRANSFEREE.  NEITHER THE TRUST NOR THE TRUSTEE SHALL
BE UNDER ANY LIABILITY TO ANY PERSON FOR MAKING ANY PAYMENTS DUE ON
THIS CERTIFICATE TO SUCH PRECEDING TRANSFEREE.

ANY
PURPORTED BENEFICIAL HOLDER WHOSE ACQUISITION OR HOLDING OF THIS
CERTIFICATE (OR INTEREST HEREIN) WAS EFFECTED IN VIOLATION OF THE
RESTRICTIONS IN SECTION 5.01(g) OF THE POOLING AGREEMENT SHALL
INDEMNIFY AND HOLD HARMLESS THE COMPANY, THE TRUSTEE, THE DELAWARE
TRUSTEE, THE SERVICER, THE TRUST AND EACH UNDERWRITER FROM AND
AGAINST ANY AND ALL LIABILITIES, CLAIMS, COSTS OR EXPENSES INCURRED
BY SUCH PARTIES AS A RESULT OF SUCH ACQUISITION OR
HOLDING.

The Class
L-B-1 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as
described in the Pooling Agreement.

 

	
Series
2007-HY1

	
Portion
of the Class L-B-1 Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

	
$25,365,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class
L-B-1 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off
Date:

	
January
1, 2007

	
 

	
First
Distribution Date:

	
February
26, 2007

	
 

	
Last
Scheduled Distribution Date:

	
February
25, 2037

	
 

	
Class
L-B-1 Principal Balance as of the Cut-Off Date:

	
$25,365,000.00

	
 

 

 

	
Cede
& Co.

	
Registered Owner

 

	
 

	
Exhibit A

	
 

	
CUSIP
92925 VA S9

 

	
WaMu
MORTGAGE PASS-THROUGH CERTIFICATE

	
 

	
Class
L-B-2

 

Evidencing
a beneficial interest in a trust that owns a pool of assets
consisting of, among other things, conventional one- to four-family
mortgage loans formed by

	
 

	
WaMu ASSET ACCEPTANCE
CORP.

	
 

 

This
Certificate is issued by WaMu Mortgage Pass-Through Certificates
Series 2007-HY1 Trust. This Certificate represents ownership of a
“regular interest” in a “real estate mortgage
investment conduit,” as those terms are defined in Sections
860G and 860D, respectively, of the Internal Revenue Code of 1986,
as amended (the “Code”). The issue date of this
Certificate is January 24, 2007.

Unless
this Certificate is presented by an authorized representative of
The Depository Trust Company, a New York corporation
(“DTC”), to the Trust or its agent for registration of
transfer, exchange, or payment, and any Certificate issued is
registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment
is made to Cede & Co. or to such other entity as is requested
by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL inasmuch as the registered owner hereof, Cede & Co.,
has an interest herein.

NO
TRANSFER OF THIS CLASS L-B-2 CERTIFICATE WILL BE MADE UNLESS THE
TRUSTEE HAS RECEIVED (I) AN OFFICER’S CERTIFICATE IN THE FORM
DESCRIBED IN SECTION 5.01(g) OF THE POOLING AGREEMENT AND (II) IF
SO INDICATED IN SUCH OFFICER’S CERTIFICATE, AN OPINION OF
COUNSEL ACCEPTABLE TO AND IN FORM AND SUBSTANCE SATISFACTORY TO THE
TRUSTEE AND THE COMPANY TO THE EFFECT THAT THE PURCHASE AND HOLDING
OF THIS CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT
CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, AND WILL NOT
SUBJECT THE TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER
OR THE COMPANY TO ANY OBLIGATION OR LIABILITY (INCLUDING
OBLIGATIONS OR LIABILITIES UNDER SECTION 406 OF ERISA OR SECTION
4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE POOLING
AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE
TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER OR THE
COMPANY.

NOTWITHSTANDING THE FOREGOING PARAGRAPH, WITH
RESPECT TO THE TRANSFER OF THIS CLASS L-B-2 CERTIFICATE TO DTC OR
ANY OTHER CLEARING AGENCY OR ANY SUBSEQUENT TRANSFER OF ANY
INTEREST IN THIS CERTIFICATE FOR SO LONG AS THIS CERTIFICATE IS
HELD BY DTC OR ANY OTHER CLEARING AGENCY, (I) AN OFFICER’S
CERTIFICATE (AND, IF APPLICABLE, A BENEFIT PLAN OPINION), AS
DESCRIBED IN THE FOREGOING PARAGRAPH, SHALL NOT BE REQUIRED, AND
(II) THE FOLLOWING CONDITIONS SHALL APPLY:

1.            
ANY TRANSFEREE OF THIS CERTIFICATE WILL BE DEEMED TO HAVE
REPRESENTED, BY VIRTUE OF ITS ACQUISITION OR HOLDING OF THIS
CERTIFICATE (OR INTEREST HEREIN), THAT EITHER (A) SUCH TRANSFEREE
IS NOT AN EMPLOYEE BENEFIT OR OTHER PLAN SUBJECT TO THE PROHIBITED
TRANSACTION PROVISIONS OF ERISA OR SECTION 4975 OF THE CODE, OR ANY
PERSON (INCLUDING AN INVESTMENT MANAGER, A NAMED FIDUCIARY OR A
TRUSTEE OF ANY SUCH PLAN) ACTING, DIRECTLY OR INDIRECTLY, ON BEHALF
OF OR PURCHASING THIS CERTIFICATE WITH “PLAN ASSETS” OF
ANY SUCH PLAN (A “PLAN INVESTOR”), (B) SUCH TRANSFEREE
IS AN INSURANCE COMPANY, THE SOURCE OF FUNDS TO BE USED BY IT TO
ACQUIRE OR HOLD THIS CERTIFICATE IS AN “INSURANCE COMPANY
GENERAL ACCOUNT” (WITHIN THE MEANING OF DEPARTMENT OF LABOR
PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 95-60),
AND THE CONDITIONS IN SECTIONS I AND III OF PTCE 95-60 HAVE BEEN
SATISFIED (EACH ENTITY THAT SATISFIES THIS CLAUSE (B), A
“COMPLYING INSURANCE COMPANY”) OR (C) THIS CERTIFICATE
WAS RATED “BBB-” OR BETTER (OR ITS EQUIVALENT) BY AT
LEAST ONE OF THE RATING AGENCIES AT THE TIME OF SUCH
TRANSFEREE’S ACQUISITION OF THIS CERTIFICATE (OR INTEREST
HEREIN); AND

2.            
IF THIS CERTIFICATE (OR ANY INTEREST HEREIN) IS ACQUIRED OR HELD IN
VIOLATION OF THE PROVISIONS OF THE PRECEDING PARAGRAPH, THEN THE
LAST PRECEDING TRANSFEREE THAT EITHER (I) IS NOT A PLAN INVESTOR,
(II) IS A COMPLYING INSURANCE COMPANY OR (III) ACQUIRED THIS
CERTIFICATE AT A TIME WHEN THIS CERTIFICATE WAS RATED
“BBB-” OR BETTER (OR ITS EQUIVALENT) BY AT LEAST ONE OF
THE RATING AGENCIES SHALL BE RESTORED, TO THE EXTENT PERMITTED BY
LAW, TO ALL RIGHTS AND OBLIGATIONS AS BENEFICIAL HOLDER THEREOF
RETROACTIVE TO THE DATE OF TRANSFER OF THIS CERTIFICATE BY SUCH
PRECEDING TRANSFEREE.  NEITHER THE TRUST NOR THE TRUSTEE SHALL
BE UNDER ANY LIABILITY TO ANY PERSON FOR MAKING ANY PAYMENTS DUE ON
THIS CERTIFICATE TO SUCH PRECEDING TRANSFEREE.

ANY
PURPORTED BENEFICIAL HOLDER WHOSE ACQUISITION OR HOLDING OF THIS
CERTIFICATE (OR INTEREST HEREIN) WAS EFFECTED IN VIOLATION OF THE
RESTRICTIONS IN SECTION 5.01(g) OF THE POOLING AGREEMENT SHALL
INDEMNIFY AND HOLD HARMLESS THE COMPANY, THE TRUSTEE, THE DELAWARE
TRUSTEE, THE SERVICER, THE TRUST AND EACH UNDERWRITER FROM AND
AGAINST ANY AND ALL LIABILITIES, CLAIMS, COSTS OR EXPENSES INCURRED
BY SUCH PARTIES AS A RESULT OF SUCH ACQUISITION OR
HOLDING.

The Class
L-B-2 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as
described in the Pooling Agreement.

 

	
Series
2007-HY1

	
Portion
of the Class L-B-2 Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

	
$12,682,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class
L-B-2 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off
Date:

	
January
1, 2007

	
 

	
First
Distribution Date:

	
February
26, 2007

	
 

	
Last
Scheduled Distribution Date:

	
February
25, 2037

	
 

	
Class
L-B-2 Principal Balance as of the Cut-Off Date:

	
$12,682,000.00

	
 

 

 

	
Cede
& Co.

	
Registered Owner

 

	
 

	
Exhibit A

	
 

	
CUSIP
92925 VA T7

 

	
WaMu
MORTGAGE PASS-THROUGH CERTIFICATE

	
 

	
Class
L-B-3

 

Evidencing
a beneficial interest in a trust that owns a pool of assets
consisting of, among other things, conventional one- to four-family
mortgage loans formed by

	
 

	
WaMu ASSET ACCEPTANCE
CORP.

	
 

 

This
Certificate is issued by WaMu Mortgage Pass-Through Certificates
Series 2007-HY1 Trust. This Certificate represents ownership of a
“regular interest” in a “real estate mortgage
investment conduit,” as those terms are defined in Sections
860G and 860D, respectively, of the Internal Revenue Code of 1986,
as amended (the “Code”). The issue date of this
Certificate is January 24, 2007.

Unless
this Certificate is presented by an authorized representative of
The Depository Trust Company, a New York corporation
(“DTC”), to the Trust or its agent for registration of
transfer, exchange, or payment, and any Certificate issued is
registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment
is made to Cede & Co. or to such other entity as is requested
by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL inasmuch as the registered owner hereof, Cede & Co.,
has an interest herein.

NO
TRANSFER OF THIS CLASS L-B-3 CERTIFICATE WILL BE MADE UNLESS THE
TRUSTEE HAS RECEIVED (I) AN OFFICER’S CERTIFICATE IN THE FORM
DESCRIBED IN SECTION 5.01(g) OF THE POOLING AGREEMENT AND (II) IF
SO INDICATED IN SUCH OFFICER’S CERTIFICATE, AN OPINION OF
COUNSEL ACCEPTABLE TO AND IN FORM AND SUBSTANCE SATISFACTORY TO THE
TRUSTEE AND THE COMPANY TO THE EFFECT THAT THE PURCHASE AND HOLDING
OF THIS CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT
CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, AND WILL NOT
SUBJECT THE TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER
OR THE COMPANY TO ANY OBLIGATION OR LIABILITY (INCLUDING
OBLIGATIONS OR LIABILITIES UNDER SECTION 406 OF ERISA OR SECTION
4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE POOLING
AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE
TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER OR THE
COMPANY.

NOTWITHSTANDING THE FOREGOING PARAGRAPH, WITH
RESPECT TO THE TRANSFER OF THIS CLASS L-B-3 CERTIFICATE TO DTC OR
ANY OTHER CLEARING AGENCY OR ANY SUBSEQUENT TRANSFER OF ANY
INTEREST IN THIS CERTIFICATE FOR SO LONG AS THIS CERTIFICATE IS
HELD BY DTC OR ANY OTHER CLEARING AGENCY, (I) AN OFFICER’S
CERTIFICATE (AND, IF APPLICABLE, A BENEFIT PLAN OPINION), AS
DESCRIBED IN THE FOREGOING PARAGRAPH, SHALL NOT BE REQUIRED, AND
(II) THE FOLLOWING CONDITIONS SHALL APPLY:

1.            
ANY TRANSFEREE OF THIS CERTIFICATE WILL BE DEEMED TO HAVE
REPRESENTED, BY VIRTUE OF ITS ACQUISITION OR HOLDING OF THIS
CERTIFICATE (OR INTEREST HEREIN), THAT EITHER (A) SUCH TRANSFEREE
IS NOT AN EMPLOYEE BENEFIT OR OTHER PLAN SUBJECT TO THE PROHIBITED
TRANSACTION PROVISIONS OF ERISA OR SECTION 4975 OF THE CODE, OR ANY
PERSON (INCLUDING AN INVESTMENT MANAGER, A NAMED FIDUCIARY OR A
TRUSTEE OF ANY SUCH PLAN) ACTING, DIRECTLY OR INDIRECTLY, ON BEHALF
OF OR PURCHASING THIS CERTIFICATE WITH “PLAN ASSETS” OF
ANY SUCH PLAN (A “PLAN INVESTOR”), (B) SUCH TRANSFEREE
IS AN INSURANCE COMPANY, THE SOURCE OF FUNDS TO BE USED BY IT TO
ACQUIRE OR HOLD THIS CERTIFICATE IS AN “INSURANCE COMPANY
GENERAL ACCOUNT” (WITHIN THE MEANING OF DEPARTMENT OF LABOR
PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 95-60),
AND THE CONDITIONS IN SECTIONS I AND III OF PTCE 95-60 HAVE BEEN
SATISFIED (EACH ENTITY THAT SATISFIES THIS CLAUSE (B), A
“COMPLYING INSURANCE COMPANY”) OR (C) THIS CERTIFICATE
WAS RATED “BBB-” OR BETTER (OR ITS EQUIVALENT) BY AT
LEAST ONE OF THE RATING AGENCIES AT THE TIME OF SUCH
TRANSFEREE’S ACQUISITION OF THIS CERTIFICATE (OR INTEREST
HEREIN); AND

2.            
IF THIS CERTIFICATE (OR ANY INTEREST HEREIN) IS ACQUIRED OR HELD IN
VIOLATION OF THE PROVISIONS OF THE PRECEDING PARAGRAPH, THEN THE
LAST PRECEDING TRANSFEREE THAT EITHER (I) IS NOT A PLAN INVESTOR,
(II) IS A COMPLYING INSURANCE COMPANY OR (III) ACQUIRED THIS
CERTIFICATE AT A TIME WHEN THIS CERTIFICATE WAS RATED
“BBB-” OR BETTER (OR ITS EQUIVALENT) BY AT LEAST ONE OF
THE RATING AGENCIES SHALL BE RESTORED, TO THE EXTENT PERMITTED BY
LAW, TO ALL RIGHTS AND OBLIGATIONS AS BENEFICIAL HOLDER THEREOF
RETROACTIVE TO THE DATE OF TRANSFER OF THIS CERTIFICATE BY SUCH
PRECEDING TRANSFEREE.  NEITHER THE TRUST NOR THE TRUSTEE SHALL
BE UNDER ANY LIABILITY TO ANY PERSON FOR MAKING ANY PAYMENTS DUE ON
THIS CERTIFICATE TO SUCH PRECEDING TRANSFEREE.

ANY
PURPORTED BENEFICIAL HOLDER WHOSE ACQUISITION OR HOLDING OF THIS
CERTIFICATE (OR INTEREST HEREIN) WAS EFFECTED IN VIOLATION OF THE
RESTRICTIONS IN SECTION 5.01(g) OF THE POOLING AGREEMENT SHALL
INDEMNIFY AND HOLD HARMLESS THE COMPANY, THE TRUSTEE, THE DELAWARE
TRUSTEE, THE SERVICER, THE TRUST AND EACH UNDERWRITER FROM AND
AGAINST ANY AND ALL LIABILITIES, CLAIMS, COSTS OR EXPENSES INCURRED
BY SUCH PARTIES AS A RESULT OF SUCH ACQUISITION OR
HOLDING.

The Class
L-B-3 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as
described in the Pooling Agreement.

 

	
Series
2007-HY1

	
Portion
of the Class L-B-3 Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

	
$7,045,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class
L-B-3 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off
Date:

	
January
1, 2007

	
 

	
First
Distribution Date:

	
February
26, 2007

	
 

	
Last
Scheduled Distribution Date:

	
February
25, 2037

	
 

	
Class
L-B-3 Principal Balance as of the Cut-Off Date:

	
$7,045,000.00

	
 

 

 

	
Cede
& Co.

	
Registered Owner

 

	
 

	
Exhibit A

	
 

	
CUSIP
92925 VB B4

 

	
WaMu
MORTGAGE PASS-THROUGH CERTIFICATE

	
 

	
Class
L-B-4

 

Evidencing
a beneficial interest in a trust that owns a pool of assets
consisting of, among other things, conventional one- to four-family
mortgage loans formed by

	
 

	
WaMu ASSET ACCEPTANCE
CORP.

	
 

 

This
Certificate is issued by WaMu Mortgage Pass-Through Certificates
Series 2007-HY1 Trust. This Certificate represents ownership of a
“regular interest” in a “real estate mortgage
investment conduit,” as those terms are defined in Sections
860G and 860D, respectively, of the Internal Revenue Code of 1986,
as amended (the “Code”). The issue date of this
Certificate is January 24, 2007.

NO TRANSFER OF THIS CLASS L-B-4
CERTIFICATE WILL BE MADE UNLESS THE TRUSTEE HAS RECEIVED (I) AN
OFFICER’S CERTIFICATE IN THE FORM DESCRIBED IN SECTION
5.01(d) OF THE POOLING AGREEMENT AND (II) IF SO INDICATED IN SUCH
OFFICER’S CERTIFICATE, AN OPINION OF COUNSEL ACCEPTABLE TO
AND IN FORM AND SUBSTANCE SATISFACTORY TO THE TRUSTEE AND THE
COMPANY TO THE EFFECT THAT THE PURCHASE AND HOLDING OF THIS
CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT
CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, AND WILL NOT
SUBJECT THE TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER
OR THE COMPANY TO ANY OBLIGATION OR LIABILITY (INCLUDING
OBLIGATIONS OR LIABILITIES UNDER SECTION 406 OF ERISA OR SECTION
4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE POOLING
AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE
TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER OR THE
COMPANY.

THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933. THESE SECURITIES MAY NOT BE OFFERED, SOLD, TRANSFERRED,
PLEDGED OR HYPOTHECATED IN THE ABSENCE OF REGISTRATION OR THE
AVAILABILITY OF AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
ACT OF 1933 AND EXCEPT IN ACCORDANCE WITH SECTION 5.01(e) OF THE
POOLING AGREEMENT.

The Class
L-B-4 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as
described in the Pooling Agreement

	
Series
2007-HY1

	
Portion
of the Class L-B-4 Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

	
$6,341,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class
L-B-4 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off
Date:

	
January
1, 2007

	
 

	
First
Distribution Date:

	
February
26, 2007

	
 

	
Last
Scheduled Distribution Date:

	
February
25, 2037

	
 

	
Class
L-B-4 Principal Balance as of the Cut-Off Date:

	
$6,341,000.00

	
 

 

	
____________________

	
Registered Owner

 

	
 

	
Exhibit A

	
 

	
CUSIP
92925 VB C3

 

	
WaMu
MORTGAGE PASS-THROUGH CERTIFICATE

	
 

	
Class
L-B-5

 

Evidencing
a beneficial interest in a trust that owns a pool of assets
consisting of, among other things, conventional one- to four-family
mortgage loans formed by

	
 

	
WaMu ASSET ACCEPTANCE
CORP.

	
 

 

This
Certificate is issued by WaMu Mortgage Pass-Through Certificates
Series 2007-HY1 Trust. This Certificate represents ownership of a
“regular interest” in a “real estate mortgage
investment conduit,” as those terms are defined in Sections
860G and 860D, respectively, of the Internal Revenue Code of 1986,
as amended (the “Code”). The issue date of this
Certificate is January 24, 2007.

NO TRANSFER OF THIS CLASS L-B-5
CERTIFICATE WILL BE MADE UNLESS THE TRUSTEE HAS RECEIVED (I) AN
OFFICER’S CERTIFICATE IN THE FORM DESCRIBED IN SECTION
5.01(d) OF THE POOLING AGREEMENT AND (II) IF SO INDICATED IN SUCH
OFFICER’S CERTIFICATE, AN OPINION OF COUNSEL ACCEPTABLE TO
AND IN FORM AND SUBSTANCE SATISFACTORY TO THE TRUSTEE AND THE
COMPANY TO THE EFFECT THAT THE PURCHASE AND HOLDING OF THIS
CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT
CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, AND WILL NOT
SUBJECT THE TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER
OR THE COMPANY TO ANY OBLIGATION OR LIABILITY (INCLUDING
OBLIGATIONS OR LIABILITIES UNDER SECTION 406 OF ERISA OR SECTION
4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE POOLING
AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE
TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER OR THE
COMPANY.

THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933. THESE SECURITIES MAY NOT BE OFFERED, SOLD, TRANSFERRED,
PLEDGED OR HYPOTHECATED IN THE ABSENCE OF REGISTRATION OR THE
AVAILABILITY OF AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
ACT OF 1933 AND EXCEPT IN ACCORDANCE WITH SECTION 5.01(e) OF THE
POOLING AGREEMENT.

The Class
L-B-5 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as
described in the Pooling Agreement

	
Series
2007-HY1

	
Portion
of the Class L-B-5 Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

	
$4,227,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class
L-B-5 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off
Date:

	
January
1, 2007

	
 

	
First
Distribution Date:

	
February
26, 2007

	
 

	
Last
Scheduled Distribution Date:

	
February
25, 2037

	
 

	
Class
L-B-5 Principal Balance as of the Cut-Off Date:

	
$4,227,000.00

	
 

 

	
____________________

	
Registered Owner

 

 

	
 

	
Exhibit A

	
 

	
CUSIP
92925 VB D1

 

	
WaMu
MORTGAGE PASS-THROUGH CERTIFICATE

	
 

	
Class
L-B-6

 

Evidencing
a beneficial interest in a trust that owns a pool of assets
consisting of, among other things, conventional one- to four-family
mortgage loans formed by

	
 

	
WaMu ASSET ACCEPTANCE
CORP.

	
 

 

This
Certificate is issued by WaMu Mortgage Pass-Through Certificates
Series 2007-HY1 Trust. This Certificate represents ownership of a
“regular interest” in a “real estate mortgage
investment conduit,” as those terms are defined in Sections
860G and 860D, respectively, of the Internal Revenue Code of 1986,
as amended (the “Code”). The issue date of this
Certificate is January 24, 2007.

NO TRANSFER OF THIS CLASS L-B-6
CERTIFICATE WILL BE MADE UNLESS THE TRUSTEE HAS RECEIVED (I) AN
OFFICER’S CERTIFICATE IN THE FORM DESCRIBED IN SECTION
5.01(d) OF THE POOLING AGREEMENT AND (II) IF SO INDICATED IN SUCH
OFFICER’S CERTIFICATE, AN OPINION OF COUNSEL ACCEPTABLE TO
AND IN FORM AND SUBSTANCE SATISFACTORY TO THE TRUSTEE AND THE
COMPANY TO THE EFFECT THAT THE PURCHASE AND HOLDING OF THIS
CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT
CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, AND WILL NOT
SUBJECT THE TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER
OR THE COMPANY TO ANY OBLIGATION OR LIABILITY (INCLUDING
OBLIGATIONS OR LIABILITIES UNDER SECTION 406 OF ERISA OR SECTION
4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE POOLING
AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE
TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER OR THE
COMPANY.

THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933. THESE SECURITIES MAY NOT BE OFFERED, SOLD, TRANSFERRED,
PLEDGED OR HYPOTHECATED IN THE ABSENCE OF REGISTRATION OR THE
AVAILABILITY OF AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
ACT OF 1933 AND EXCEPT IN ACCORDANCE WITH SECTION 5.01(e) OF THE
POOLING AGREEMENT.

The Class
L-B-6 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as
described in the Pooling Agreement

	
Series
2007-HY1

	
Portion
of the Class L-B-6 Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

	
$3,526,037.36

	
 

	
 

	
 

	
 

	
 

	
 

	
Class
L-B-6 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off
Date:

	
January
1, 2007

	
 

	
First
Distribution Date:

	
February
26, 2007

	
 

	
Last
Scheduled Distribution Date:

	
February
25, 2037

	
 

	
Class
L-B-6 Principal Balance as of the Cut-Off Date:

	
$3,526,037.36

	
 

 

	
____________________

	
Registered Owner

 

 

 

	
 

	
Exhibit A

	
 

	
CUSIP
92925 VA U4

 

	
WaMu
MORTGAGE PASS-THROUGH CERTIFICATE

	
 

	
Class
3-B-1

 

Evidencing
a beneficial interest in a trust that owns a pool of assets
consisting of, among other things, conventional one- to four-family
mortgage loans formed by

	
 

	
WaMu ASSET ACCEPTANCE
CORP.

	
 

 

This
Certificate is issued by WaMu Mortgage Pass-Through Certificates
Series 2007-HY1 Trust. This Certificate represents ownership of a
“regular interest” in a “real estate mortgage
investment conduit,” as those terms are defined in Sections
860G and 860D, respectively, of the Internal Revenue Code of 1986,
as amended (the “Code”). The issue date of this
Certificate is January 24, 2007.

Unless
this Certificate is presented by an authorized representative of
The Depository Trust Company, a New York corporation
(“DTC”), to the Trust or its agent for registration of
transfer, exchange, or payment, and any Certificate issued is
registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment
is made to Cede & Co. or to such other entity as is requested
by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL inasmuch as the registered owner hereof, Cede & Co.,
has an interest herein.

NO
TRANSFER OF THIS CLASS 3-B-1 CERTIFICATE WILL BE MADE UNLESS THE
TRUSTEE HAS RECEIVED (I) AN OFFICER’S CERTIFICATE IN THE FORM
DESCRIBED IN SECTION 5.01(g) OF THE POOLING AGREEMENT AND (II) IF
SO INDICATED IN SUCH OFFICER’S CERTIFICATE, AN OPINION OF
COUNSEL ACCEPTABLE TO AND IN FORM AND SUBSTANCE SATISFACTORY TO THE
TRUSTEE AND THE COMPANY TO THE EFFECT THAT THE PURCHASE AND HOLDING
OF THIS CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT
CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, AND WILL NOT
SUBJECT THE TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER
OR THE COMPANY TO ANY OBLIGATION OR LIABILITY (INCLUDING
OBLIGATIONS OR LIABILITIES UNDER SECTION 406 OF ERISA OR SECTION
4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE POOLING
AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE
TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER OR THE
COMPANY.

NOTWITHSTANDING THE FOREGOING PARAGRAPH, WITH
RESPECT TO THE TRANSFER OF THIS CLASS 3-B-1 CERTIFICATE TO DTC OR
ANY OTHER CLEARING AGENCY OR ANY SUBSEQUENT TRANSFER OF ANY
INTEREST IN THIS CERTIFICATE FOR SO LONG AS THIS CERTIFICATE IS
HELD BY DTC OR ANY OTHER CLEARING AGENCY, (I) AN OFFICER’S
CERTIFICATE (AND, IF APPLICABLE, A BENEFIT PLAN OPINION), AS
DESCRIBED IN THE FOREGOING PARAGRAPH, SHALL NOT BE REQUIRED, AND
(II) THE FOLLOWING CONDITIONS SHALL APPLY:

1.            
ANY TRANSFEREE OF THIS CERTIFICATE WILL BE DEEMED TO HAVE
REPRESENTED, BY VIRTUE OF ITS ACQUISITION OR HOLDING OF THIS
CERTIFICATE (OR INTEREST HEREIN), THAT EITHER (A) SUCH TRANSFEREE
IS NOT AN EMPLOYEE BENEFIT OR OTHER PLAN SUBJECT TO THE PROHIBITED
TRANSACTION PROVISIONS OF ERISA OR SECTION 4975 OF THE CODE, OR ANY
PERSON (INCLUDING AN INVESTMENT MANAGER, A NAMED FIDUCIARY OR A
TRUSTEE OF ANY SUCH PLAN) ACTING, DIRECTLY OR INDIRECTLY, ON BEHALF
OF OR PURCHASING THIS CERTIFICATE WITH “PLAN ASSETS” OF
ANY SUCH PLAN (A “PLAN INVESTOR”), (B) SUCH TRANSFEREE
IS AN INSURANCE COMPANY, THE SOURCE OF FUNDS TO BE USED BY IT TO
ACQUIRE OR HOLD THIS CERTIFICATE IS AN “INSURANCE COMPANY
GENERAL ACCOUNT” (WITHIN THE MEANING OF DEPARTMENT OF LABOR
PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 95-60),
AND THE CONDITIONS IN SECTIONS I AND III OF PTCE 95-60 HAVE BEEN
SATISFIED (EACH ENTITY THAT SATISFIES THIS CLAUSE (B), A
“COMPLYING INSURANCE COMPANY”) OR (C) THIS CERTIFICATE
WAS RATED “BBB-” OR BETTER (OR ITS EQUIVALENT) BY AT
LEAST ONE OF THE RATING AGENCIES AT THE TIME OF SUCH
TRANSFEREE’S ACQUISITION OF THIS CERTIFICATE (OR INTEREST
HEREIN); AND

2.            
IF THIS CERTIFICATE (OR ANY INTEREST HEREIN) IS ACQUIRED OR HELD IN
VIOLATION OF THE PROVISIONS OF THE PRECEDING PARAGRAPH, THEN THE
LAST PRECEDING TRANSFEREE THAT EITHER (I) IS NOT A PLAN INVESTOR,
(II) IS A COMPLYING INSURANCE COMPANY OR (III) ACQUIRED THIS
CERTIFICATE AT A TIME WHEN THIS CERTIFICATE WAS RATED
“BBB-” OR BETTER (OR ITS EQUIVALENT) BY AT LEAST ONE OF
THE RATING AGENCIES SHALL BE RESTORED, TO THE EXTENT PERMITTED BY
LAW, TO ALL RIGHTS AND OBLIGATIONS AS BENEFICIAL HOLDER THEREOF
RETROACTIVE TO THE DATE OF TRANSFER OF THIS CERTIFICATE BY SUCH
PRECEDING TRANSFEREE.  NEITHER THE TRUST NOR THE TRUSTEE SHALL
BE UNDER ANY LIABILITY TO ANY PERSON FOR MAKING ANY PAYMENTS DUE ON
THIS CERTIFICATE TO SUCH PRECEDING TRANSFEREE.

ANY
PURPORTED BENEFICIAL HOLDER WHOSE ACQUISITION OR HOLDING OF THIS
CERTIFICATE (OR INTEREST HEREIN) WAS EFFECTED IN VIOLATION OF THE
RESTRICTIONS IN SECTION 5.01(g) OF THE POOLING AGREEMENT SHALL
INDEMNIFY AND HOLD HARMLESS THE COMPANY, THE TRUSTEE, THE DELAWARE
TRUSTEE, THE SERVICER, THE TRUST AND EACH UNDERWRITER FROM AND
AGAINST ANY AND ALL LIABILITIES, CLAIMS, COSTS OR EXPENSES INCURRED
BY SUCH PARTIES AS A RESULT OF SUCH ACQUISITION OR
HOLDING.

The Class
3-B-1 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as
described in the Pooling Agreement.

 

	
Series
2007-HY1

	
Portion
of the Class 3-B-1 Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

	
$5,117,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class
3-B-1 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off
Date:

	
January
1, 2007

	
 

	
First
Distribution Date:

	
February
26, 2007

	
 

	
Last
Scheduled Distribution Date:

	
February
25, 2037

	
 

	
Class
3-B-1 Principal Balance as of the Cut-Off Date:

	
$5,117,000.00

	
 

 

 

	
Cede
& Co.

	
Registered Owner

 

	
 

	
Exhibit A

	
 

	
CUSIP
92925 VA V2

 

	
WaMu
MORTGAGE PASS-THROUGH CERTIFICATE

	
 

	
Class
3-B-2

 

Evidencing
a beneficial interest in a trust that owns a pool of assets
consisting of, among other things, conventional one- to four-family
mortgage loans formed by

	
 

	
WaMu ASSET ACCEPTANCE
CORP.

	
 

 

This
Certificate is issued by WaMu Mortgage Pass-Through Certificates
Series 2007-HY1 Trust. This Certificate represents ownership of a
“regular interest” in a “real estate mortgage
investment conduit,” as those terms are defined in Sections
860G and 860D, respectively, of the Internal Revenue Code of 1986,
as amended (the “Code”). The issue date of this
Certificate is January 24, 2007.

Unless
this Certificate is presented by an authorized representative of
The Depository Trust Company, a New York corporation
(“DTC”), to the Trust or its agent for registration of
transfer, exchange, or payment, and any Certificate issued is
registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment
is made to Cede & Co. or to such other entity as is requested
by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL inasmuch as the registered owner hereof, Cede & Co.,
has an interest herein.

NO
TRANSFER OF THIS CLASS 3-B-2 CERTIFICATE WILL BE MADE UNLESS THE
TRUSTEE HAS RECEIVED (I) AN OFFICER’S CERTIFICATE IN THE FORM
DESCRIBED IN SECTION 5.01(g) OF THE POOLING AGREEMENT AND (II) IF
SO INDICATED IN SUCH OFFICER’S CERTIFICATE, AN OPINION OF
COUNSEL ACCEPTABLE TO AND IN FORM AND SUBSTANCE SATISFACTORY TO THE
TRUSTEE AND THE COMPANY TO THE EFFECT THAT THE PURCHASE AND HOLDING
OF THIS CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT
CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, AND WILL NOT
SUBJECT THE TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER
OR THE COMPANY TO ANY OBLIGATION OR LIABILITY (INCLUDING
OBLIGATIONS OR LIABILITIES UNDER SECTION 406 OF ERISA OR SECTION
4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE POOLING
AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE
TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER OR THE
COMPANY.

NOTWITHSTANDING THE FOREGOING PARAGRAPH, WITH
RESPECT TO THE TRANSFER OF THIS CLASS 3-B-2 CERTIFICATE TO DTC OR
ANY OTHER CLEARING AGENCY OR ANY SUBSEQUENT TRANSFER OF ANY
INTEREST IN THIS CERTIFICATE FOR SO LONG AS THIS CERTIFICATE IS
HELD BY DTC OR ANY OTHER CLEARING AGENCY, (I) AN OFFICER’S
CERTIFICATE (AND, IF APPLICABLE, A BENEFIT PLAN OPINION), AS
DESCRIBED IN THE FOREGOING PARAGRAPH, SHALL NOT BE REQUIRED, AND
(II) THE FOLLOWING CONDITIONS SHALL APPLY:

1.            
ANY TRANSFEREE OF THIS CERTIFICATE WILL BE DEEMED TO HAVE
REPRESENTED, BY VIRTUE OF ITS ACQUISITION OR HOLDING OF THIS
CERTIFICATE (OR INTEREST HEREIN), THAT EITHER (A) SUCH TRANSFEREE
IS NOT AN EMPLOYEE BENEFIT OR OTHER PLAN SUBJECT TO THE PROHIBITED
TRANSACTION PROVISIONS OF ERISA OR SECTION 4975 OF THE CODE, OR ANY
PERSON (INCLUDING AN INVESTMENT MANAGER, A NAMED FIDUCIARY OR A
TRUSTEE OF ANY SUCH PLAN) ACTING, DIRECTLY OR INDIRECTLY, ON BEHALF
OF OR PURCHASING THIS CERTIFICATE WITH “PLAN ASSETS” OF
ANY SUCH PLAN (A “PLAN INVESTOR”), (B) SUCH TRANSFEREE
IS AN INSURANCE COMPANY, THE SOURCE OF FUNDS TO BE USED BY IT TO
ACQUIRE OR HOLD THIS CERTIFICATE IS AN “INSURANCE COMPANY
GENERAL ACCOUNT” (WITHIN THE MEANING OF DEPARTMENT OF LABOR
PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 95-60),
AND THE CONDITIONS IN SECTIONS I AND III OF PTCE 95-60 HAVE BEEN
SATISFIED (EACH ENTITY THAT SATISFIES THIS CLAUSE (B), A
“COMPLYING INSURANCE COMPANY”) OR (C) THIS CERTIFICATE
WAS RATED “BBB-” OR BETTER (OR ITS EQUIVALENT) BY AT
LEAST ONE OF THE RATING AGENCIES AT THE TIME OF SUCH
TRANSFEREE’S ACQUISITION OF THIS CERTIFICATE (OR INTEREST
HEREIN); AND

2.            
IF THIS CERTIFICATE (OR ANY INTEREST HEREIN) IS ACQUIRED OR HELD IN
VIOLATION OF THE PROVISIONS OF THE PRECEDING PARAGRAPH, THEN THE
LAST PRECEDING TRANSFEREE THAT EITHER (I) IS NOT A PLAN INVESTOR,
(II) IS A COMPLYING INSURANCE COMPANY OR (III) ACQUIRED THIS
CERTIFICATE AT A TIME WHEN THIS CERTIFICATE WAS RATED
“BBB-” OR BETTER (OR ITS EQUIVALENT) BY AT LEAST ONE OF
THE RATING AGENCIES SHALL BE RESTORED, TO THE EXTENT PERMITTED BY
LAW, TO ALL RIGHTS AND OBLIGATIONS AS BENEFICIAL HOLDER THEREOF
RETROACTIVE TO THE DATE OF TRANSFER OF THIS CERTIFICATE BY SUCH
PRECEDING TRANSFEREE.  NEITHER THE TRUST NOR THE TRUSTEE SHALL
BE UNDER ANY LIABILITY TO ANY PERSON FOR MAKING ANY PAYMENTS DUE ON
THIS CERTIFICATE TO SUCH PRECEDING TRANSFEREE.

ANY
PURPORTED BENEFICIAL HOLDER WHOSE ACQUISITION OR HOLDING OF THIS
CERTIFICATE (OR INTEREST HEREIN) WAS EFFECTED IN VIOLATION OF THE
RESTRICTIONS IN SECTION 5.01(g) OF THE POOLING AGREEMENT SHALL
INDEMNIFY AND HOLD HARMLESS THE COMPANY, THE TRUSTEE, THE DELAWARE
TRUSTEE, THE SERVICER, THE TRUST AND EACH UNDERWRITER FROM AND
AGAINST ANY AND ALL LIABILITIES, CLAIMS, COSTS OR EXPENSES INCURRED
BY SUCH PARTIES AS A RESULT OF SUCH ACQUISITION OR
HOLDING.

The Class
3-B-2 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as
described in the Pooling Agreement.

 

	
Series
2007-HY1

	
Portion
of the Class 3-B-2 Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

	
$2,310,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class
3-B-2 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off
Date:

	
January
1, 2007

	
 

	
First
Distribution Date:

	
February
26, 2007

	
 

	
Last
Scheduled Distribution Date:

	
February
25, 2037

	
 

	
Class
3-B-2 Principal Balance as of the Cut-Off Date:

	
$2,310,000.00

	
 

 

 

	
Cede
& Co.

	
Registered Owner

 

	
 

	
Exhibit A

	
 

	
CUSIP
92925 VA W0

 

	
WaMu
MORTGAGE PASS-THROUGH CERTIFICATE

	
 

	
Class
3-B-3

 

Evidencing
a beneficial interest in a trust that owns a pool of assets
consisting of, among other things, conventional one- to four-family
mortgage loans formed by

	
 

	
WaMu ASSET ACCEPTANCE
CORP.

	
 

 

This
Certificate is issued by WaMu Mortgage Pass-Through Certificates
Series 2007-HY1 Trust. This Certificate represents ownership of a
“regular interest” in a “real estate mortgage
investment conduit,” as those terms are defined in Sections
860G and 860D, respectively, of the Internal Revenue Code of 1986,
as amended (the “Code”). The issue date of this
Certificate is January 24, 2007.

Unless
this Certificate is presented by an authorized representative of
The Depository Trust Company, a New York corporation
(“DTC”), to the Trust or its agent for registration of
transfer, exchange, or payment, and any Certificate issued is
registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment
is made to Cede & Co. or to such other entity as is requested
by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL inasmuch as the registered owner hereof, Cede & Co.,
has an interest herein.

NO
TRANSFER OF THIS CLASS 3-B-3 CERTIFICATE WILL BE MADE UNLESS THE
TRUSTEE HAS RECEIVED (I) AN OFFICER’S CERTIFICATE IN THE FORM
DESCRIBED IN SECTION 5.01(g) OF THE POOLING AGREEMENT AND (II) IF
SO INDICATED IN SUCH OFFICER’S CERTIFICATE, AN OPINION OF
COUNSEL ACCEPTABLE TO AND IN FORM AND SUBSTANCE SATISFACTORY TO THE
TRUSTEE AND THE COMPANY TO THE EFFECT THAT THE PURCHASE AND HOLDING
OF THIS CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT
CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, AND WILL NOT
SUBJECT THE TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER
OR THE COMPANY TO ANY OBLIGATION OR LIABILITY (INCLUDING
OBLIGATIONS OR LIABILITIES UNDER SECTION 406 OF ERISA OR SECTION
4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE POOLING
AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE
TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER OR THE
COMPANY.

NOTWITHSTANDING THE FOREGOING PARAGRAPH, WITH
RESPECT TO THE TRANSFER OF THIS CLASS 3-B-3 CERTIFICATE TO DTC OR
ANY OTHER CLEARING AGENCY OR ANY SUBSEQUENT TRANSFER OF ANY
INTEREST IN THIS CERTIFICATE FOR SO LONG AS THIS CERTIFICATE IS
HELD BY DTC OR ANY OTHER CLEARING AGENCY, (I) AN OFFICER’S
CERTIFICATE (AND, IF APPLICABLE, A BENEFIT PLAN OPINION), AS
DESCRIBED IN THE FOREGOING PARAGRAPH, SHALL NOT BE REQUIRED, AND
(II) THE FOLLOWING CONDITIONS SHALL APPLY:

1.            
ANY TRANSFEREE OF THIS CERTIFICATE WILL BE DEEMED TO HAVE
REPRESENTED, BY VIRTUE OF ITS ACQUISITION OR HOLDING OF THIS
CERTIFICATE (OR INTEREST HEREIN), THAT EITHER (A) SUCH TRANSFEREE
IS NOT AN EMPLOYEE BENEFIT OR OTHER PLAN SUBJECT TO THE PROHIBITED
TRANSACTION PROVISIONS OF ERISA OR SECTION 4975 OF THE CODE, OR ANY
PERSON (INCLUDING AN INVESTMENT MANAGER, A NAMED FIDUCIARY OR A
TRUSTEE OF ANY SUCH PLAN) ACTING, DIRECTLY OR INDIRECTLY, ON BEHALF
OF OR PURCHASING THIS CERTIFICATE WITH “PLAN ASSETS” OF
ANY SUCH PLAN (A “PLAN INVESTOR”), (B) SUCH TRANSFEREE
IS AN INSURANCE COMPANY, THE SOURCE OF FUNDS TO BE USED BY IT TO
ACQUIRE OR HOLD THIS CERTIFICATE IS AN “INSURANCE COMPANY
GENERAL ACCOUNT” (WITHIN THE MEANING OF DEPARTMENT OF LABOR
PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 95-60),
AND THE CONDITIONS IN SECTIONS I AND III OF PTCE 95-60 HAVE BEEN
SATISFIED (EACH ENTITY THAT SATISFIES THIS CLAUSE (B), A
“COMPLYING INSURANCE COMPANY”) OR (C) THIS CERTIFICATE
WAS RATED “BBB-” OR BETTER (OR ITS EQUIVALENT) BY AT
LEAST ONE OF THE RATING AGENCIES AT THE TIME OF SUCH
TRANSFEREE’S ACQUISITION OF THIS CERTIFICATE (OR INTEREST
HEREIN); AND

2.            
IF THIS CERTIFICATE (OR ANY INTEREST HEREIN) IS ACQUIRED OR HELD IN
VIOLATION OF THE PROVISIONS OF THE PRECEDING PARAGRAPH, THEN THE
LAST PRECEDING TRANSFEREE THAT EITHER (I) IS NOT A PLAN INVESTOR,
(II) IS A COMPLYING INSURANCE COMPANY OR (III) ACQUIRED THIS
CERTIFICATE AT A TIME WHEN THIS CERTIFICATE WAS RATED
“BBB-” OR BETTER (OR ITS EQUIVALENT) BY AT LEAST ONE OF
THE RATING AGENCIES SHALL BE RESTORED, TO THE EXTENT PERMITTED BY
LAW, TO ALL RIGHTS AND OBLIGATIONS AS BENEFICIAL HOLDER THEREOF
RETROACTIVE TO THE DATE OF TRANSFER OF THIS CERTIFICATE BY SUCH
PRECEDING TRANSFEREE.  NEITHER THE TRUST NOR THE TRUSTEE SHALL
BE UNDER ANY LIABILITY TO ANY PERSON FOR MAKING ANY PAYMENTS DUE ON
THIS CERTIFICATE TO SUCH PRECEDING TRANSFEREE.

ANY
PURPORTED BENEFICIAL HOLDER WHOSE ACQUISITION OR HOLDING OF THIS
CERTIFICATE (OR INTEREST HEREIN) WAS EFFECTED IN VIOLATION OF THE
RESTRICTIONS IN SECTION 5.01(g) OF THE POOLING AGREEMENT SHALL
INDEMNIFY AND HOLD HARMLESS THE COMPANY, THE TRUSTEE, THE DELAWARE
TRUSTEE, THE SERVICER, THE TRUST AND EACH UNDERWRITER FROM AND
AGAINST ANY AND ALL LIABILITIES, CLAIMS, COSTS OR EXPENSES INCURRED
BY SUCH PARTIES AS A RESULT OF SUCH ACQUISITION OR
HOLDING.

The Class
3-B-3 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as
described in the Pooling Agreement.

 

	
Series
2007-HY1

	
Portion
of the Class 3-B-3 Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

	
$1,155,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class
3-B-3 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off
Date:

	
January
1, 2007

	
 

	
First
Distribution Date:

	
February
26, 2007

	
 

	
Last
Scheduled Distribution Date:

	
February
25, 2037

	
 

	
Class
3-B-3 Principal Balance as of the Cut-Off Date:

	
$1,155,000.00

	
 

 

 

	
Cede
& Co.

	
Registered Owner

 

	
 

	
Exhibit A

	
 

	
CUSIP
92925 VB E9

 

	
WaMu
MORTGAGE PASS-THROUGH CERTIFICATE

	
 

	
Class
3-B-4

 

Evidencing
a beneficial interest in a trust that owns a pool of assets
consisting of, among other things, conventional one- to four-family
mortgage loans formed by

	
 

	
WaMu ASSET ACCEPTANCE
CORP.

	
 

 

This
Certificate is issued by WaMu Mortgage Pass-Through Certificates
Series 2007-HY1 Trust. This Certificate represents ownership of a
“regular interest” in a “real estate mortgage
investment conduit,” as those terms are defined in Sections
860G and 860D, respectively, of the Internal Revenue Code of 1986,
as amended (the “Code”). The issue date of this
Certificate is January 24, 2007.

NO TRANSFER OF THIS CLASS 3-B-4
CERTIFICATE WILL BE MADE UNLESS THE TRUSTEE HAS RECEIVED (I) AN
OFFICER’S CERTIFICATE IN THE FORM DESCRIBED IN SECTION
5.01(d) OF THE POOLING AGREEMENT AND (II) IF SO INDICATED IN SUCH
OFFICER’S CERTIFICATE, AN OPINION OF COUNSEL ACCEPTABLE TO
AND IN FORM AND SUBSTANCE SATISFACTORY TO THE TRUSTEE AND THE
COMPANY TO THE EFFECT THAT THE PURCHASE AND HOLDING OF THIS
CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT
CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, AND WILL NOT
SUBJECT THE TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER
OR THE COMPANY TO ANY OBLIGATION OR LIABILITY (INCLUDING
OBLIGATIONS OR LIABILITIES UNDER SECTION 406 OF ERISA OR SECTION
4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE POOLING
AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE
TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER OR THE
COMPANY.

THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933. THESE SECURITIES MAY NOT BE OFFERED, SOLD, TRANSFERRED,
PLEDGED OR HYPOTHECATED IN THE ABSENCE OF REGISTRATION OR THE
AVAILABILITY OF AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
ACT OF 1933 AND EXCEPT IN ACCORDANCE WITH SECTION 5.01(e) OF THE
POOLING AGREEMENT.

The Class
3-B-4 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as
described in the Pooling Agreement

	
Series
2007-HY1

	
Portion
of the Class 3-B-4 Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

	
$1,155,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class
3-B-4 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off
Date:

	
January
1, 2007

	
 

	
First
Distribution Date:

	
February
26, 2007

	
 

	
Last
Scheduled Distribution Date:

	
February
25, 2037

	
 

	
Class
3-B-4 Principal Balance as of the Cut-Off Date:

	
$1,155,000.00

	
 

 

	
____________________

	
Registered Owner

 

	
 

	
Exhibit A

	
 

	
CUSIP
92925 VB F6

 

	
WaMu
MORTGAGE PASS-THROUGH CERTIFICATE

	
 

	
Class
3-B-5

 

Evidencing
a beneficial interest in a trust that owns a pool of assets
consisting of, among other things, conventional one- to four-family
mortgage loans formed by

	
 

	
WaMu ASSET ACCEPTANCE
CORP.

	
 

 

This
Certificate is issued by WaMu Mortgage Pass-Through Certificates
Series 2007-HY1 Trust. This Certificate represents ownership of a
“regular interest” in a “real estate mortgage
investment conduit,” as those terms are defined in Sections
860G and 860D, respectively, of the Internal Revenue Code of 1986,
as amended (the “Code”). The issue date of this
Certificate is January 24, 2007.

NO TRANSFER OF THIS CLASS 3-B-5
CERTIFICATE WILL BE MADE UNLESS THE TRUSTEE HAS RECEIVED (I) AN
OFFICER’S CERTIFICATE IN THE FORM DESCRIBED IN SECTION
5.01(d) OF THE POOLING AGREEMENT AND (II) IF SO INDICATED IN SUCH
OFFICER’S CERTIFICATE, AN OPINION OF COUNSEL ACCEPTABLE TO
AND IN FORM AND SUBSTANCE SATISFACTORY TO THE TRUSTEE AND THE
COMPANY TO THE EFFECT THAT THE PURCHASE AND HOLDING OF THIS
CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT
CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, AND WILL NOT
SUBJECT THE TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER
OR THE COMPANY TO ANY OBLIGATION OR LIABILITY (INCLUDING
OBLIGATIONS OR LIABILITIES UNDER SECTION 406 OF ERISA OR SECTION
4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE POOLING
AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE
TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER OR THE
COMPANY.

THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933. THESE SECURITIES MAY NOT BE OFFERED, SOLD, TRANSFERRED,
PLEDGED OR HYPOTHECATED IN THE ABSENCE OF REGISTRATION OR THE
AVAILABILITY OF AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
ACT OF 1933 AND EXCEPT IN ACCORDANCE WITH SECTION 5.01(e) OF THE
POOLING AGREEMENT.

The Class
3-B-5 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as
described in the Pooling Agreement

	
Series
2007-HY1

	
Portion
of the Class 3-B-5 Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

	
$825,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class
3-B-5 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off
Date:

	
January
1, 2007

	
 

	
First
Distribution Date:

	
February
26, 2007

	
 

	
Last
Scheduled Distribution Date:

	
February
25, 2037

	
 

	
Class
3-B-5 Principal Balance as of the Cut-Off Date:

	
$825,000.00

	
 

 

	
____________________

	
Registered Owner

 

 

	
 

	
Exhibit A

	
 

	
CUSIP
92925 VB G4

 

	
WaMu
MORTGAGE PASS-THROUGH CERTIFICATE

	
 

	
Class
3-B-6

 

Evidencing
a beneficial interest in a trust that owns a pool of assets
consisting of, among other things, conventional one- to four-family
mortgage loans formed by

	
 

	
WaMu ASSET ACCEPTANCE
CORP.

	
 

 

This
Certificate is issued by WaMu Mortgage Pass-Through Certificates
Series 2007-HY1 Trust. This Certificate represents ownership of a
“regular interest” in a “real estate mortgage
investment conduit,” as those terms are defined in Sections
860G and 860D, respectively, of the Internal Revenue Code of 1986,
as amended (the “Code”). The issue date of this
Certificate is January 24, 2007.

NO TRANSFER OF THIS CLASS 3-B-6
CERTIFICATE WILL BE MADE UNLESS THE TRUSTEE HAS RECEIVED (I) AN
OFFICER’S CERTIFICATE IN THE FORM DESCRIBED IN SECTION
5.01(d) OF THE POOLING AGREEMENT AND (II) IF SO INDICATED IN SUCH
OFFICER’S CERTIFICATE, AN OPINION OF COUNSEL ACCEPTABLE TO
AND IN FORM AND SUBSTANCE SATISFACTORY TO THE TRUSTEE AND THE
COMPANY TO THE EFFECT THAT THE PURCHASE AND HOLDING OF THIS
CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT
CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, AND WILL NOT
SUBJECT THE TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER
OR THE COMPANY TO ANY OBLIGATION OR LIABILITY (INCLUDING
OBLIGATIONS OR LIABILITIES UNDER SECTION 406 OF ERISA OR SECTION
4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE POOLING
AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE
TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER OR THE
COMPANY.

THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933. THESE SECURITIES MAY NOT BE OFFERED, SOLD, TRANSFERRED,
PLEDGED OR HYPOTHECATED IN THE ABSENCE OF REGISTRATION OR THE
AVAILABILITY OF AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
ACT OF 1933 AND EXCEPT IN ACCORDANCE WITH SECTION 5.01(e) OF THE
POOLING AGREEMENT.

The Class
3-B-6 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as
described in the Pooling Agreement

	
Series
2007-HY1

	
Portion
of the Class 3-B-6 Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

	
$497,422.05

	
 

	
 

	
 

	
 

	
 

	
 

	
Class
3-B-6 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off
Date:

	
January
1, 2007

	
 

	
First
Distribution Date:

	
February
26, 2007

	
 

	
Last
Scheduled Distribution Date:

	
February
25, 2037

	
 

	
Class
3-B-6 Principal Balance as of the Cut-Off Date:

	
$497,422.05

	
 

 

 

	
____________________

	
Registered Owner

 

 

	
 

	
Exhibit A

	
 

	
CUSIP
92925 VA X8

 

	
WaMu
MORTGAGE PASS-THROUGH CERTIFICATE

	
 

	
Class
M-B-1

 

Evidencing
a beneficial interest in a trust that owns a pool of assets
consisting of, among other things, conventional one- to four-family
mortgage loans formed by

	
 

	
WaMu ASSET ACCEPTANCE
CORP.

	
 

 

This
Certificate is issued by WaMu Mortgage Pass-Through Certificates
Series 2007-HY1 Trust. This Certificate represents ownership of a
“regular interest” in a “real estate mortgage
investment conduit,” as those terms are defined in Sections
860G and 860D, respectively, of the Internal Revenue Code of 1986,
as amended (the “Code”). The issue date of this
Certificate is January 24, 2007.

Unless
this Certificate is presented by an authorized representative of
The Depository Trust Company, a New York corporation
(“DTC”), to the Trust or its agent for registration of
transfer, exchange, or payment, and any Certificate issued is
registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment
is made to Cede & Co. or to such other entity as is requested
by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL inasmuch as the registered owner hereof, Cede & Co.,
has an interest herein.

NO
TRANSFER OF THIS CLASS M-B-1 CERTIFICATE WILL BE MADE UNLESS THE
TRUSTEE HAS RECEIVED (I) AN OFFICER’S CERTIFICATE IN THE FORM
DESCRIBED IN SECTION 5.01(g) OF THE POOLING AGREEMENT AND (II) IF
SO INDICATED IN SUCH OFFICER’S CERTIFICATE, AN OPINION OF
COUNSEL ACCEPTABLE TO AND IN FORM AND SUBSTANCE SATISFACTORY TO THE
TRUSTEE AND THE COMPANY TO THE EFFECT THAT THE PURCHASE AND HOLDING
OF THIS CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT
CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, AND WILL NOT
SUBJECT THE TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER
OR THE COMPANY TO ANY OBLIGATION OR LIABILITY (INCLUDING
OBLIGATIONS OR LIABILITIES UNDER SECTION 406 OF ERISA OR SECTION
4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE POOLING
AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE
TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER OR THE
COMPANY.

NOTWITHSTANDING THE FOREGOING PARAGRAPH, WITH
RESPECT TO THE TRANSFER OF THIS CLASS M-B-1 CERTIFICATE TO DTC OR
ANY OTHER CLEARING AGENCY OR ANY SUBSEQUENT TRANSFER OF ANY
INTEREST IN THIS CERTIFICATE FOR SO LONG AS THIS CERTIFICATE IS
HELD BY DTC OR ANY OTHER CLEARING AGENCY, (I) AN OFFICER’S
CERTIFICATE (AND, IF APPLICABLE, A BENEFIT PLAN OPINION), AS
DESCRIBED IN THE FOREGOING PARAGRAPH, SHALL NOT BE REQUIRED, AND
(II) THE FOLLOWING CONDITIONS SHALL APPLY:

1.            
ANY TRANSFEREE OF THIS CERTIFICATE WILL BE DEEMED TO HAVE
REPRESENTED, BY VIRTUE OF ITS ACQUISITION OR HOLDING OF THIS
CERTIFICATE (OR INTEREST HEREIN), THAT EITHER (A) SUCH TRANSFEREE
IS NOT AN EMPLOYEE BENEFIT OR OTHER PLAN SUBJECT TO THE PROHIBITED
TRANSACTION PROVISIONS OF ERISA OR SECTION 4975 OF THE CODE, OR ANY
PERSON (INCLUDING AN INVESTMENT MANAGER, A NAMED FIDUCIARY OR A
TRUSTEE OF ANY SUCH PLAN) ACTING, DIRECTLY OR INDIRECTLY, ON BEHALF
OF OR PURCHASING THIS CERTIFICATE WITH “PLAN ASSETS” OF
ANY SUCH PLAN (A “PLAN INVESTOR”), (B) SUCH TRANSFEREE
IS AN INSURANCE COMPANY, THE SOURCE OF FUNDS TO BE USED BY IT TO
ACQUIRE OR HOLD THIS CERTIFICATE IS AN “INSURANCE COMPANY
GENERAL ACCOUNT” (WITHIN THE MEANING OF DEPARTMENT OF LABOR
PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 95-60),
AND THE CONDITIONS IN SECTIONS I AND III OF PTCE 95-60 HAVE BEEN
SATISFIED (EACH ENTITY THAT SATISFIES THIS CLAUSE (B), A
“COMPLYING INSURANCE COMPANY”) OR (C) THIS CERTIFICATE
WAS RATED “BBB-” OR BETTER (OR ITS EQUIVALENT) BY AT
LEAST ONE OF THE RATING AGENCIES AT THE TIME OF SUCH
TRANSFEREE’S ACQUISITION OF THIS CERTIFICATE (OR INTEREST
HEREIN); AND

2.            
IF THIS CERTIFICATE (OR ANY INTEREST HEREIN) IS ACQUIRED OR HELD IN
VIOLATION OF THE PROVISIONS OF THE PRECEDING PARAGRAPH, THEN THE
LAST PRECEDING TRANSFEREE THAT EITHER (I) IS NOT A PLAN INVESTOR,
(II) IS A COMPLYING INSURANCE COMPANY OR (III) ACQUIRED THIS
CERTIFICATE AT A TIME WHEN THIS CERTIFICATE WAS RATED
“BBB-” OR BETTER (OR ITS EQUIVALENT) BY AT LEAST ONE OF
THE RATING AGENCIES SHALL BE RESTORED, TO THE EXTENT PERMITTED BY
LAW, TO ALL RIGHTS AND OBLIGATIONS AS BENEFICIAL HOLDER THEREOF
RETROACTIVE TO THE DATE OF TRANSFER OF THIS CERTIFICATE BY SUCH
PRECEDING TRANSFEREE.  NEITHER THE TRUST NOR THE TRUSTEE SHALL
BE UNDER ANY LIABILITY TO ANY PERSON FOR MAKING ANY PAYMENTS DUE ON
THIS CERTIFICATE TO SUCH PRECEDING TRANSFEREE.

ANY
PURPORTED BENEFICIAL HOLDER WHOSE ACQUISITION OR HOLDING OF THIS
CERTIFICATE (OR INTEREST HEREIN) WAS EFFECTED IN VIOLATION OF THE
RESTRICTIONS IN SECTION 5.01(g) OF THE POOLING AGREEMENT SHALL
INDEMNIFY AND HOLD HARMLESS THE COMPANY, THE TRUSTEE, THE DELAWARE
TRUSTEE, THE SERVICER, THE TRUST AND EACH UNDERWRITER FROM AND
AGAINST ANY AND ALL LIABILITIES, CLAIMS, COSTS OR EXPENSES INCURRED
BY SUCH PARTIES AS A RESULT OF SUCH ACQUISITION OR
HOLDING.

The Class
M-B-1 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as
described in the Pooling Agreement.

 

	
Series
2007-HY1

	
Portion
of the Class M-B-1 Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

	
$27,343,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class
M-B-1 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off
Date:

	
January
1, 2007

	
 

	
First
Distribution Date:

	
February
26, 2007

	
 

	
Last
Scheduled Distribution Date:

	
August
25, 2036

	
 

	
Class
M-B-1 Principal Balance as of the Cut-Off Date:

	
$27,343,000.00

	
 

 

 

	
Cede
& Co.

	
Registered Owner

 

	
 

	
Exhibit A

	
 

	
CUSIP
92925 VA Y6

 

	
WaMu
MORTGAGE PASS-THROUGH CERTIFICATE

	
 

	
Class
M-B-2

 

Evidencing
a beneficial interest in a trust that owns a pool of assets
consisting of, among other things, conventional one- to four-family
mortgage loans formed by

	
 

	
WaMu ASSET ACCEPTANCE
CORP.

	
 

 

This
Certificate is issued by WaMu Mortgage Pass-Through Certificates
Series 2007-HY1 Trust. This Certificate represents ownership of a
“regular interest” in a “real estate mortgage
investment conduit,” as those terms are defined in Sections
860G and 860D, respectively, of the Internal Revenue Code of 1986,
as amended (the “Code”). The issue date of this
Certificate is January 24, 2007.

Unless
this Certificate is presented by an authorized representative of
The Depository Trust Company, a New York corporation
(“DTC”), to the Trust or its agent for registration of
transfer, exchange, or payment, and any Certificate issued is
registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment
is made to Cede & Co. or to such other entity as is requested
by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL inasmuch as the registered owner hereof, Cede & Co.,
has an interest herein.

NO
TRANSFER OF THIS CLASS M-B-2 CERTIFICATE WILL BE MADE UNLESS THE
TRUSTEE HAS RECEIVED (I) AN OFFICER’S CERTIFICATE IN THE FORM
DESCRIBED IN SECTION 5.01(g) OF THE POOLING AGREEMENT AND (II) IF
SO INDICATED IN SUCH OFFICER’S CERTIFICATE, AN OPINION OF
COUNSEL ACCEPTABLE TO AND IN FORM AND SUBSTANCE SATISFACTORY TO THE
TRUSTEE AND THE COMPANY TO THE EFFECT THAT THE PURCHASE AND HOLDING
OF THIS CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT
CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, AND WILL NOT
SUBJECT THE TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER
OR THE COMPANY TO ANY OBLIGATION OR LIABILITY (INCLUDING
OBLIGATIONS OR LIABILITIES UNDER SECTION 406 OF ERISA OR SECTION
4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE POOLING
AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE
TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER OR THE
COMPANY.

NOTWITHSTANDING THE FOREGOING PARAGRAPH, WITH
RESPECT TO THE TRANSFER OF THIS CLASS M-B-2 CERTIFICATE TO DTC OR
ANY OTHER CLEARING AGENCY OR ANY SUBSEQUENT TRANSFER OF ANY
INTEREST IN THIS CERTIFICATE FOR SO LONG AS THIS CERTIFICATE IS
HELD BY DTC OR ANY OTHER CLEARING AGENCY, (I) AN OFFICER’S
CERTIFICATE (AND, IF APPLICABLE, A BENEFIT PLAN OPINION), AS
DESCRIBED IN THE FOREGOING PARAGRAPH, SHALL NOT BE REQUIRED, AND
(II) THE FOLLOWING CONDITIONS SHALL APPLY:

1.            
ANY TRANSFEREE OF THIS CERTIFICATE WILL BE DEEMED TO HAVE
REPRESENTED, BY VIRTUE OF ITS ACQUISITION OR HOLDING OF THIS
CERTIFICATE (OR INTEREST HEREIN), THAT EITHER (A) SUCH TRANSFEREE
IS NOT AN EMPLOYEE BENEFIT OR OTHER PLAN SUBJECT TO THE PROHIBITED
TRANSACTION PROVISIONS OF ERISA OR SECTION 4975 OF THE CODE, OR ANY
PERSON (INCLUDING AN INVESTMENT MANAGER, A NAMED FIDUCIARY OR A
TRUSTEE OF ANY SUCH PLAN) ACTING, DIRECTLY OR INDIRECTLY, ON BEHALF
OF OR PURCHASING THIS CERTIFICATE WITH “PLAN ASSETS” OF
ANY SUCH PLAN (A “PLAN INVESTOR”), (B) SUCH TRANSFEREE
IS AN INSURANCE COMPANY, THE SOURCE OF FUNDS TO BE USED BY IT TO
ACQUIRE OR HOLD THIS CERTIFICATE IS AN “INSURANCE COMPANY
GENERAL ACCOUNT” (WITHIN THE MEANING OF DEPARTMENT OF LABOR
PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 95-60),
AND THE CONDITIONS IN SECTIONS I AND III OF PTCE 95-60 HAVE BEEN
SATISFIED (EACH ENTITY THAT SATISFIES THIS CLAUSE (B), A
“COMPLYING INSURANCE COMPANY”) OR (C) THIS CERTIFICATE
WAS RATED “BBB-” OR BETTER (OR ITS EQUIVALENT) BY AT
LEAST ONE OF THE RATING AGENCIES AT THE TIME OF SUCH
TRANSFEREE’S ACQUISITION OF THIS CERTIFICATE (OR INTEREST
HEREIN); AND

2.            
IF THIS CERTIFICATE (OR ANY INTEREST HEREIN) IS ACQUIRED OR HELD IN
VIOLATION OF THE PROVISIONS OF THE PRECEDING PARAGRAPH, THEN THE
LAST PRECEDING TRANSFEREE THAT EITHER (I) IS NOT A PLAN INVESTOR,
(II) IS A COMPLYING INSURANCE COMPANY OR (III) ACQUIRED THIS
CERTIFICATE AT A TIME WHEN THIS CERTIFICATE WAS RATED
“BBB-” OR BETTER (OR ITS EQUIVALENT) BY AT LEAST ONE OF
THE RATING AGENCIES SHALL BE RESTORED, TO THE EXTENT PERMITTED BY
LAW, TO ALL RIGHTS AND OBLIGATIONS AS BENEFICIAL HOLDER THEREOF
RETROACTIVE TO THE DATE OF TRANSFER OF THIS CERTIFICATE BY SUCH
PRECEDING TRANSFEREE.  NEITHER THE TRUST NOR THE TRUSTEE SHALL
BE UNDER ANY LIABILITY TO ANY PERSON FOR MAKING ANY PAYMENTS DUE ON
THIS CERTIFICATE TO SUCH PRECEDING TRANSFEREE.

ANY
PURPORTED BENEFICIAL HOLDER WHOSE ACQUISITION OR HOLDING OF THIS
CERTIFICATE (OR INTEREST HEREIN) WAS EFFECTED IN VIOLATION OF THE
RESTRICTIONS IN SECTION 5.01(g) OF THE POOLING AGREEMENT SHALL
INDEMNIFY AND HOLD HARMLESS THE COMPANY, THE TRUSTEE, THE DELAWARE
TRUSTEE, THE SERVICER, THE TRUST AND EACH UNDERWRITER FROM AND
AGAINST ANY AND ALL LIABILITIES, CLAIMS, COSTS OR EXPENSES INCURRED
BY SUCH PARTIES AS A RESULT OF SUCH ACQUISITION OR
HOLDING.

The Class
M-B-2 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as
described in the Pooling Agreement.

 

	
Series
2007-HY1

	
Portion
of the Class M-B-2 Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

	
$13,020,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class
M-B-2 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off
Date:

	
January
1, 2007

	
 

	
First
Distribution Date:

	
February
26, 2007

	
 

	
Last
Scheduled Distribution Date:

	
August
25, 2036

	
 

	
Class
M-B-2 Principal Balance as of the Cut-Off Date:

	
$13,020,000.00

	
 

 

 

	
Cede
& Co.

	
Registered Owner

 

	
 

	
Exhibit A

	
 

	
CUSIP
92925 VA Z3

 

	
WaMu
MORTGAGE PASS-THROUGH CERTIFICATE

	
 

	
Class
M-B-3

 

Evidencing
a beneficial interest in a trust that owns a pool of assets
consisting of, among other things, conventional one- to four-family
mortgage loans formed by

	
 

	
WaMu ASSET ACCEPTANCE
CORP.

	
 

 

This
Certificate is issued by WaMu Mortgage Pass-Through Certificates
Series 2007-HY1 Trust. This Certificate represents ownership of a
“regular interest” in a “real estate mortgage
investment conduit,” as those terms are defined in Sections
860G and 860D, respectively, of the Internal Revenue Code of 1986,
as amended (the “Code”). The issue date of this
Certificate is January 24, 2007.

Unless
this Certificate is presented by an authorized representative of
The Depository Trust Company, a New York corporation
(“DTC”), to the Trust or its agent for registration of
transfer, exchange, or payment, and any Certificate issued is
registered in the name of Cede & Co. or such other name as is
requested by an authorized representative of DTC (and any payment
is made to Cede & Co. or to such other entity as is requested
by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL inasmuch as the registered owner hereof, Cede & Co.,
has an interest herein.

NO
TRANSFER OF THIS CLASS M-B-3 CERTIFICATE WILL BE MADE UNLESS THE
TRUSTEE HAS RECEIVED (I) AN OFFICER’S CERTIFICATE IN THE FORM
DESCRIBED IN SECTION 5.01(g) OF THE POOLING AGREEMENT AND (II) IF
SO INDICATED IN SUCH OFFICER’S CERTIFICATE, AN OPINION OF
COUNSEL ACCEPTABLE TO AND IN FORM AND SUBSTANCE SATISFACTORY TO THE
TRUSTEE AND THE COMPANY TO THE EFFECT THAT THE PURCHASE AND HOLDING
OF THIS CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT
CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, AND WILL NOT
SUBJECT THE TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER
OR THE COMPANY TO ANY OBLIGATION OR LIABILITY (INCLUDING
OBLIGATIONS OR LIABILITIES UNDER SECTION 406 OF ERISA OR SECTION
4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE POOLING
AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE
TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER OR THE
COMPANY.

NOTWITHSTANDING THE FOREGOING PARAGRAPH, WITH
RESPECT TO THE TRANSFER OF THIS CLASS M-B-3 CERTIFICATE TO DTC OR
ANY OTHER CLEARING AGENCY OR ANY SUBSEQUENT TRANSFER OF ANY
INTEREST IN THIS CERTIFICATE FOR SO LONG AS THIS CERTIFICATE IS
HELD BY DTC OR ANY OTHER CLEARING AGENCY, (I) AN OFFICER’S
CERTIFICATE (AND, IF APPLICABLE, A BENEFIT PLAN OPINION), AS
DESCRIBED IN THE FOREGOING PARAGRAPH, SHALL NOT BE REQUIRED, AND
(II) THE FOLLOWING CONDITIONS SHALL APPLY:

1.            
ANY TRANSFEREE OF THIS CERTIFICATE WILL BE DEEMED TO HAVE
REPRESENTED, BY VIRTUE OF ITS ACQUISITION OR HOLDING OF THIS
CERTIFICATE (OR INTEREST HEREIN), THAT EITHER (A) SUCH TRANSFEREE
IS NOT AN EMPLOYEE BENEFIT OR OTHER PLAN SUBJECT TO THE PROHIBITED
TRANSACTION PROVISIONS OF ERISA OR SECTION 4975 OF THE CODE, OR ANY
PERSON (INCLUDING AN INVESTMENT MANAGER, A NAMED FIDUCIARY OR A
TRUSTEE OF ANY SUCH PLAN) ACTING, DIRECTLY OR INDIRECTLY, ON BEHALF
OF OR PURCHASING THIS CERTIFICATE WITH “PLAN ASSETS” OF
ANY SUCH PLAN (A “PLAN INVESTOR”), (B) SUCH TRANSFEREE
IS AN INSURANCE COMPANY, THE SOURCE OF FUNDS TO BE USED BY IT TO
ACQUIRE OR HOLD THIS CERTIFICATE IS AN “INSURANCE COMPANY
GENERAL ACCOUNT” (WITHIN THE MEANING OF DEPARTMENT OF LABOR
PROHIBITED TRANSACTION CLASS EXEMPTION (“PTCE”) 95-60),
AND THE CONDITIONS IN SECTIONS I AND III OF PTCE 95-60 HAVE BEEN
SATISFIED (EACH ENTITY THAT SATISFIES THIS CLAUSE (B), A
“COMPLYING INSURANCE COMPANY”) OR (C) THIS CERTIFICATE
WAS RATED “BBB-” OR BETTER (OR ITS EQUIVALENT) BY AT
LEAST ONE OF THE RATING AGENCIES AT THE TIME OF SUCH
TRANSFEREE’S ACQUISITION OF THIS CERTIFICATE (OR INTEREST
HEREIN); AND

2.            
IF THIS CERTIFICATE (OR ANY INTEREST HEREIN) IS ACQUIRED OR HELD IN
VIOLATION OF THE PROVISIONS OF THE PRECEDING PARAGRAPH, THEN THE
LAST PRECEDING TRANSFEREE THAT EITHER (I) IS NOT A PLAN INVESTOR,
(II) IS A COMPLYING INSURANCE COMPANY OR (III) ACQUIRED THIS
CERTIFICATE AT A TIME WHEN THIS CERTIFICATE WAS RATED
“BBB-” OR BETTER (OR ITS EQUIVALENT) BY AT LEAST ONE OF
THE RATING AGENCIES SHALL BE RESTORED, TO THE EXTENT PERMITTED BY
LAW, TO ALL RIGHTS AND OBLIGATIONS AS BENEFICIAL HOLDER THEREOF
RETROACTIVE TO THE DATE OF TRANSFER OF THIS CERTIFICATE BY SUCH
PRECEDING TRANSFEREE.  NEITHER THE TRUST NOR THE TRUSTEE SHALL
BE UNDER ANY LIABILITY TO ANY PERSON FOR MAKING ANY PAYMENTS DUE ON
THIS CERTIFICATE TO SUCH PRECEDING TRANSFEREE.

ANY
PURPORTED BENEFICIAL HOLDER WHOSE ACQUISITION OR HOLDING OF THIS
CERTIFICATE (OR INTEREST HEREIN) WAS EFFECTED IN VIOLATION OF THE
RESTRICTIONS IN SECTION 5.01(g) OF THE POOLING AGREEMENT SHALL
INDEMNIFY AND HOLD HARMLESS THE COMPANY, THE TRUSTEE, THE DELAWARE
TRUSTEE, THE SERVICER, THE TRUST AND EACH UNDERWRITER FROM AND
AGAINST ANY AND ALL LIABILITIES, CLAIMS, COSTS OR EXPENSES INCURRED
BY SUCH PARTIES AS A RESULT OF SUCH ACQUISITION OR
HOLDING.

The Class
M-B-3 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as
described in the Pooling Agreement.

 

	
Series
2007-HY1

	
Portion
of the Class M-B-3 Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

	
$7,812,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class
M-B-3 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off
Date:

	
January
1, 2007

	
 

	
First
Distribution Date:

	
February
26, 2007

	
 

	
Last
Scheduled Distribution Date:

	
August
25, 2036

	
 

	
Class
M-B-3 Principal Balance as of the Cut-Off Date:

	
$7,812,000.00

	
 

 

 

	
Cede
& Co.

	
Registered Owner

 

	
 

	
Exhibit A

	
 

	
CUSIP
92925 VB H2

 

	
WaMu
MORTGAGE PASS-THROUGH CERTIFICATE

	
 

	
Class
M-B-4

 

Evidencing
a beneficial interest in a trust that owns a pool of assets
consisting of, among other things, conventional one- to four-family
mortgage loans formed by

	
 

	
WaMu ASSET ACCEPTANCE
CORP.

	
 

 

This
Certificate is issued by WaMu Mortgage Pass-Through Certificates
Series 2007-HY1 Trust. This Certificate represents ownership of a
“regular interest” in a “real estate mortgage
investment conduit,” as those terms are defined in Sections
860G and 860D, respectively, of the Internal Revenue Code of 1986,
as amended (the “Code”). The issue date of this
Certificate is January 24, 2007.

NO TRANSFER OF THIS CLASS M-B-4
CERTIFICATE WILL BE MADE UNLESS THE TRUSTEE HAS RECEIVED (I) AN
OFFICER’S CERTIFICATE IN THE FORM DESCRIBED IN SECTION
5.01(d) OF THE POOLING AGREEMENT AND (II) IF SO INDICATED IN SUCH
OFFICER’S CERTIFICATE, AN OPINION OF COUNSEL ACCEPTABLE TO
AND IN FORM AND SUBSTANCE SATISFACTORY TO THE TRUSTEE AND THE
COMPANY TO THE EFFECT THAT THE PURCHASE AND HOLDING OF THIS
CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT
CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, AND WILL NOT
SUBJECT THE TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER
OR THE COMPANY TO ANY OBLIGATION OR LIABILITY (INCLUDING
OBLIGATIONS OR LIABILITIES UNDER SECTION 406 OF ERISA OR SECTION
4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE POOLING
AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE
TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER OR THE
COMPANY.

THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933. THESE SECURITIES MAY NOT BE OFFERED, SOLD, TRANSFERRED,
PLEDGED OR HYPOTHECATED IN THE ABSENCE OF REGISTRATION OR THE
AVAILABILITY OF AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
ACT OF 1933 AND EXCEPT IN ACCORDANCE WITH SECTION 5.01(e) OF THE
POOLING AGREEMENT.

The Class
M-B-4 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as
described in the Pooling Agreement

	
Series
2007-HY1

	
Portion
of the Class M-B-4 Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

	
$7,161,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class
M-B-4 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off
Date:

	
January
1, 2007

	
 

	
First
Distribution Date:

	
February
26, 2007

	
 

	
Last
Scheduled Distribution Date:

	
August
25, 2036

	
 

	
Class
M-B-4 Principal Balance as of the Cut-Off Date:

	
$7,161,000.00

	
 

 

	
____________________

	
Registered Owner

 

	
 

	
Exhibit A

	
 

	
CUSIP
92925 VB J8

 

	
WaMu
MORTGAGE PASS-THROUGH CERTIFICATE

	
 

	
Class
M-B-5

 

Evidencing
a beneficial interest in a trust that owns a pool of assets
consisting of, among other things, conventional one- to four-family
mortgage loans formed by

	
 

	
WaMu ASSET ACCEPTANCE
CORP.

	
 

 

This
Certificate is issued by WaMu Mortgage Pass-Through Certificates
Series 2007-HY1 Trust. This Certificate represents ownership of a
“regular interest” in a “real estate mortgage
investment conduit,” as those terms are defined in Sections
860G and 860D, respectively, of the Internal Revenue Code of 1986,
as amended (the “Code”). The issue date of this
Certificate is January 24, 2007.

NO TRANSFER OF THIS CLASS M-B-5
CERTIFICATE WILL BE MADE UNLESS THE TRUSTEE HAS RECEIVED (I) AN
OFFICER’S CERTIFICATE IN THE FORM DESCRIBED IN SECTION
5.01(d) OF THE POOLING AGREEMENT AND (II) IF SO INDICATED IN SUCH
OFFICER’S CERTIFICATE, AN OPINION OF COUNSEL ACCEPTABLE TO
AND IN FORM AND SUBSTANCE SATISFACTORY TO THE TRUSTEE AND THE
COMPANY TO THE EFFECT THAT THE PURCHASE AND HOLDING OF THIS
CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT
CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, AND WILL NOT
SUBJECT THE TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER
OR THE COMPANY TO ANY OBLIGATION OR LIABILITY (INCLUDING
OBLIGATIONS OR LIABILITIES UNDER SECTION 406 OF ERISA OR SECTION
4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE POOLING
AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE
TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER OR THE
COMPANY.

THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933. THESE SECURITIES MAY NOT BE OFFERED, SOLD, TRANSFERRED,
PLEDGED OR HYPOTHECATED IN THE ABSENCE OF REGISTRATION OR THE
AVAILABILITY OF AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
ACT OF 1933 AND EXCEPT IN ACCORDANCE WITH SECTION 5.01(e) OF THE
POOLING AGREEMENT.

The Class
M-B-5 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as
described in the Pooling Agreement

	
Series
2007-HY1

	
Portion
of the Class M-B-5 Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

	
$5,859,000.00

	
 

	
 

	
 

	
 

	
 

	
 

	
Class
M-B-5 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off
Date:

	
January
1, 2007

	
 

	
First
Distribution Date:

	
February
26, 2007

	
 

	
Last
Scheduled Distribution Date:

	
August
25, 2036

	
 

	
Class
M-B-5 Principal Balance as of the Cut-Off Date:

	
$5,859,000.00

	
 

 

	
____________________

	
Registered Owner

 

 

	
 

	
Exhibit A

	
 

	
CUSIP
92925 VB K5

 

	
WaMu
MORTGAGE PASS-THROUGH CERTIFICATE

	
 

	
Class
M-B-6

 

Evidencing
a beneficial interest in a trust that owns a pool of assets
consisting of, among other things, conventional one- to four-family
mortgage loans formed by

	
 

	
WaMu ASSET ACCEPTANCE
CORP.

	
 

 

This
Certificate is issued by WaMu Mortgage Pass-Through Certificates
Series 2007-HY1 Trust. This Certificate represents ownership of a
“regular interest” in a “real estate mortgage
investment conduit,” as those terms are defined in Sections
860G and 860D, respectively, of the Internal Revenue Code of 1986,
as amended (the “Code”). The issue date of this
Certificate is January 24, 2007.

NO TRANSFER OF THIS CLASS M-B-6
CERTIFICATE WILL BE MADE UNLESS THE TRUSTEE HAS RECEIVED (I) AN
OFFICER’S CERTIFICATE IN THE FORM DESCRIBED IN SECTION
5.01(d) OF THE POOLING AGREEMENT AND (II) IF SO INDICATED IN SUCH
OFFICER’S CERTIFICATE, AN OPINION OF COUNSEL ACCEPTABLE TO
AND IN FORM AND SUBSTANCE SATISFACTORY TO THE TRUSTEE AND THE
COMPANY TO THE EFFECT THAT THE PURCHASE AND HOLDING OF THIS
CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT
CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE, AND WILL NOT
SUBJECT THE TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER
OR THE COMPANY TO ANY OBLIGATION OR LIABILITY (INCLUDING
OBLIGATIONS OR LIABILITIES UNDER SECTION 406 OF ERISA OR SECTION
4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE POOLING
AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE
TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER OR THE
COMPANY.

THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933. THESE SECURITIES MAY NOT BE OFFERED, SOLD, TRANSFERRED,
PLEDGED OR HYPOTHECATED IN THE ABSENCE OF REGISTRATION OR THE
AVAILABILITY OF AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
ACT OF 1933 AND EXCEPT IN ACCORDANCE WITH SECTION 5.01(e) OF THE
POOLING AGREEMENT.

The Class
M-B-6 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as
described in the Pooling Agreement

	
Series
2007-HY1

	
Portion
of the Class M-B-6 Principal Balance as of the Cut-Off Date
Evidenced by this Certificate:

	
$3,907,667.13

	
 

	
 

	
 

	
 

	
 

	
 

	
Class
M-B-6 Certificate Interest Rate:

	
Variable

	
 

	
Cut-Off
Date:

	
January
1, 2007

	
 

	
First
Distribution Date:

	
February
26, 2007

	
 

	
Last
Scheduled Distribution Date:

	
August
25, 2036

	
 

	
Class
M-B-6 Principal Balance as of the Cut-Off Date:

	
$3,907,667.13

	
 

 

	
____________________

	
Registered Owner

 

 

	
 

	
Exhibit B

	
 

	
CUSIP
92925 VB A7

 

	
WaMu
MORTGAGE PASS-THROUGH CERTIFICATE

	
 

	
Class
R

 

Evidencing
a Percentage Interest in certain distributions with respect to a
pool of conventional one- to four-family mortgage loans formed
by

	
 

	
WaMu ASSET ACCEPTANCE
CORP.

	
 

 

ANY
RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE
MADE ONLY IF THE PROPOSED TRANSFEREE PROVIDES A TRANSFER AFFIDAVIT
TO THE COMPANY AND THE TRUSTEE THAT (1) SUCH TRANSFEREE IS NOT
EITHER (A) THE UNITED STATES, ANY STATE OR POLITICAL SUBDIVISION
THEREOF, ANY FOREIGN GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR
ANY AGENCY OR INSTRUMENTALITY OF ANY OF THE FOREGOING, (B) ANY
ORGANIZATION (OTHER THAN A COOPERATIVE DESCRIBED IN SECTION 521 OF
THE CODE) WHICH IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF THE
CODE UNLESS SUCH ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY
SECTION 511 OF THE CODE, (C) ANY ORGANIZATION DESCRIBED IN SECTION
1381(a)(2)(C) OF THE CODE (ANY SUCH PERSON DESCRIBED IN THE
FOREGOING CLAUSES (A), (B), OR (C) BEING HEREINAFTER REFERRED TO AS
A “DISQUALIFIED ORGANIZATION”), OR (D) AN AGENT OF A
DISQUALIFIED ORGANIZATION AND (2) NO PURPOSE OF SUCH TRANSFER IS TO
ENABLE THE TRANSFER TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX.
SUCH AFFIDAVIT SHALL INCLUDE CERTAIN REPRESENTATIONS AS TO THE
FINANCIAL CONDITION OF THE PROPOSED TRANSFEREE. NOTWITHSTANDING THE
REGISTRATION IN THE CERTIFICATE REGISTER OF ANY TRANSFER, SALE OR
OTHER DISPOSITION OF THIS CLASS R CERTIFICATE TO A DISQUALIFIED
ORGANIZATION OR AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH
REGISTRATION SHALL BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT
WHATSOEVER AND SUCH PERSON SHALL NOT BE DEEMED TO BE A
CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER, INCLUDING, BUT NOT
LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS CERTIFICATE. EACH
HOLDER OF A CLASS R CERTIFICATE BY ACCEPTANCE OF THIS CERTIFICATE
SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS
PARAGRAPH.

IN THE
CASE OF ANY CLASS R CERTIFICATE PRESENTED FOR REGISTRATION IN THE
NAME OF ANY PERSON, THE TRUSTEE SHALL REQUIRE (I) AN
OFFICER’S CERTIFICATE IN THE FORM DESCRIBED IN SECTION
5.01(d) OF THE POOLING AGREEMENT AND (II) IF SO INDICATED IN SUCH
OFFICER’S CERTIFICATE, AN OPINION OF COUNSEL ACCEPTABLE TO
AND IN FORM AND SUBSTANCE SATISFACTORY TO THE TRUSTEE AND THE
COMPANY TO THE EFFECT THAT THE PURCHASE AND HOLDING OF A CLASS R
CERTIFICATE ARE PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT
CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER
SECTION 406 OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
AS AMENDED (“ERISA”), OR SECTION 4975 OF THE CODE AND
WILL NOT SUBJECT THE TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE
SERVICER OR THE COMPANY TO ANY OBLIGATION OR LIABILITY (INCLUDING
OBLIGATIONS OR LIABILITIES UNDER SECTION 406 OF ERISA OR SECTION
4975 OF THE CODE) IN ADDITION TO THOSE UNDERTAKEN IN THE POOLING
AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN EXPENSE OF THE
TRUST, THE TRUSTEE, THE DELAWARE TRUSTEE, THE SERVICER OR THE
COMPANY.

This
Certificate is issued by WaMu Mortgage Pass-Through Certificates
Series 2007-HY1 Trust. Solely for U.S. federal income tax purposes,
this Certificate represents “residual interests” in
“real estate mortgage investment conduits,” as those
terms are defined in Sections 860G and 860D, respectively, of the
Internal Revenue Code of 1986, as amended.

 

	
Series
2007-HY1

	
Percentage Interest evidenced by this
Class R Certificate in the distributions to be made with
respect to the Class R Certificates:

	
__________%

	
 

	
 

	
 

	
Class R
Certificate Interest Rate:

	
5.7322%
Additionally the Class R Certificates are entitled to Excess
Liquidation Proceeds and the Residual Distribution Amount as
defined in the Pooling Agreement.

	
 

	
Cut-Off
Date:

	
January
1, 2007

	
 

	
First
Distribution Date:

	
February
26, 2007

	
 

	
Last
Scheduled Distribution Date:

	
February
25, 2037

	
 

	
Class R
Principal Balance as of the Cut-Off Date:

	
$100.00

	
 

	
_____________________________

	
Registered Owner

	
Certificate No. ______

 

This
Certificate does not represent an obligation of or interest in WaMu
Asset Acceptance Corp. or any of its affiliates. Neither this
Certificate nor the underlying Mortgage Loans are guaranteed by any
agency or instrumentality of the United States.

This
certifies that the above-named Registered Owner is the registered
owner of a beneficial interest in a trust (the “Trust”)
that owns a pool of assets consisting of, among other things,
conventional one- to four-family mortgage loans (the
“Mortgage Loans”), and that was formed by WaMu Asset
Acceptance Corp. (the “Company”), which term includes
any successor entity under the Pooling Agreement referred to
below.  The Trust was created pursuant to a Pooling and
Servicing Agreement, dated as of the Cut-Off Date stated above (the
“Pooling Agreement”), among the Company, the Servicer,
LaSalle Bank National Association, as Trustee (the
“Trustee”), and Christiana Bank & Trust Company, as
Delaware Trustee, a summary of certain of the pertinent provisions
of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the
Pooling Agreement. Nothing herein shall be deemed inconsistent with
such meanings, and in the event of any conflict between the Pooling
Agreement and the terms of this Certificate, the Pooling Agreement
shall control. This Certificate is issued under and is subject to
the terms, provisions and conditions of the Pooling Agreement, to
which Pooling Agreement the Holder of this Certificate, by virtue
of the acceptance hereof, assents and by which such Holder is
bound.

Distributions will be made, pursuant to the
Pooling Agreement, on the 25th day of each month or, if such 25th
day is not a Business Day, the Business Day immediately following
(the “Distribution Date”), commencing on the first
Distribution Date specified above, to the Person in whose name this
Certificate is registered at the close of business on the last day
(or if such last day is not a Business Day, the Business Day
immediately preceding such last day) of the month immediately
preceding the month of such distribution (the “Record
Date”), to the extent of such Certificateholder's Percentage
Interest represented by this Certificate in the portions (if any)
then distributable on the Certificates of this Class of (i) the
REMIC I Available Distribution Amount for such Distribution Date,
as specified in Section 4.01 of the Pooling Agreement, (ii) the
REMIC II Available Distribution Amount for such Distribution Date,
as specified in Section 4.04 of the Pooling Agreement, (iii) the
REMIC III Available Distribution Amount for such Distribution Date
and (iv) the REMIC IV Available Distribution Amount for such
Distribution Date as specified in Section 4.04 of the Pooling
Agreement.

Distributions on this Certificate will be made by
the Trustee by wire transfer or check mailed to the address of the
Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final
distribution on this Certificate will be made after due notice by
the Trustee of the pendency of such distribution and only upon
presentation and surrender of this Certificate to the Certificate
Registrar.

Reference is hereby made to the further
provisions of this Certificate set forth below, which further
provisions shall for all purposes have the same effect as if set
forth at this place.

Unless
the certificate of authentication hereon has been executed by or on
behalf of the Trustee, by manual signature, this Certificate shall
not be entitled to any benefit under the Pooling Agreement or be
valid for any purpose.

IN
WITNESS WHEREOF, the Trust has caused this Certificate to be duly
executed.

	
 

	
WaMu
MORTGAGE PASS-THROUGH CERTIFICATES SERIES 2007-HY1 TRUST

 

	
 

	
By:

	
LASALLE BANK NATIONAL ASSOCIATION, as
Trustee

 

	
 

	
 

	
 

 

By: 
_____________________________________

 

 

 

	
(TRUSTEE'S CERTIFICATE OF
AUTHENTICATION)

 

 

This is
one of the Certificates referred to in the within-mentioned Pooling
Agreement.

LASALLE BANK NATIONAL ASSOCIATION,

as
Trustee

 

 

 

By:
___________________________________

 

Dated:
_________________________________

 

 

	
WaMu
ASSET ACCEPTANCE CORP.

	
 

	
WaMu
MORTGAGE PASS-THROUGH CERTIFICATE

 

 

This
Certificate is one of a duly authorized issue of Certificates
designated as WaMu Mortgage Pass-Through Certificates of the Series
and Class specified hereon (herein called the
“Certificates”) and representing a beneficial interest
in the Trust.

The
Certificates do not represent an obligation of, or an interest in,
the Company or any of its affiliates and are not insured or
guaranteed by any governmental agency. The Certificates are limited
in right of payment to certain collections and recoveries
respecting the Mortgage Loans, all as more specifically set forth
herein and in the Pooling Agreement. In the event funds are
advanced with respect to any Mortgage Loan, such advance is
reimbursable to the Servicer from the related recoveries on such
Mortgage Loan or from amounts received with respect to other
Mortgage Loans to the extent that such advance is not otherwise
recoverable.

As
provided in the Pooling Agreement, withdrawals from the Certificate
Account may be made from time to time for purposes other than
distributions to Certificateholders, such purposes including
reimbursement to the Servicer of advances made, or certain expenses
incurred, by it.

The
Pooling Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights
and obligations of the Company and the rights of the
Certificateholders under the Pooling Agreement at any time by the
Company, the Servicer and the Trustee with the consent of the
Holders of the Certificates evidencing Percentage Interests
aggregating not less than 66%. The Pooling Agreement also permits
the amendment thereof, in certain limited circumstances, without
the consent of the Holders of any of the Certificates.

As
provided in the Pooling Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is
registrable in the Certificate Register upon surrender of this
Certificate for registration of transfer at the office of the
Certificate Registrar or the office maintained by the Trustee in
the City and State of New York, duly endorsed by, or accompanied by
an assignment in the form below or other written instrument of
transfer in form satisfactory to the Trustee or any Authenticating
Agent duly executed by, the Holder hereof or such Holder's attorney
duly authorized in writing, and thereupon one or more new
Certificates of Authorized Denominations evidencing the same
Percentage Interest set forth hereinabove will be issued to the
designated transferee or transferees.

The
Certificates are issuable only as registered Certificates without
coupons in Authorized Denominations specified in the Pooling
Agreement. As provided in the Pooling Agreement and subject to
certain limitations therein set forth, Certificates are
exchangeable for new Certificates of Authorized Denominations of
like Certificate Principal Balance or Percentage Interest, as
applicable, as requested by the Holder surrendering the
same.

A
reasonable service charge may be made for any such registration of
transfer or exchange, and the Trustee may require payment of a sum
sufficient to cover any tax or other governmental charge payable in
connection therewith.

The
Company, the Servicer, the Trust, the Trustee, the Delaware Trustee
and any agent of any of them may treat the Person in whose name
this Certificate is registered as the owner hereof for all
purposes, and none of the Company, the Servicer, the Trust, the
Trustee, the Delaware Trustee nor any agent thereof shall be
affected by notice to the contrary.

The
obligations created by the Pooling Agreement and the Trust created
thereby shall terminate upon (i) the later of the final payment or
other liquidation (including purchase by the Servicer) of the last
Mortgage Loan owned by the Trust or the disposition of all property
acquired upon foreclosure or deed in lieu of foreclosure of any
Mortgage Loan, and (ii) the payment to Certificateholders of all
amounts required to be paid to them pursuant to the Pooling
Agreement. The Pooling Agreement permits, but does not require, the
Servicer to purchase from the Trust all Mortgage Loans at the time
subject thereto and all property acquired by the Trust in respect
of any Mortgage Loan upon payment to the Certificateholders of the
amounts specified in the Pooling Agreement. The exercise of such
right will effect early retirement of the Certificates, the
Servicer’s right to purchase being subject to the aggregate
Principal Balance of the Mortgage Loans at the time of purchase
being less than the Clean-Up Call Percentage of the aggregate
Principal Balance of the Mortgage Loans as of the Cut-Off
Date.

 

	
ASSIGNMENT

	
FOR VALUE RECEIVED the undersigned hereby sell(s)
and assign(s) and transfer(s) unto

	

	

	

	
 

	
 

	

(Please print or typewrite name and
address, including postal zip code of assignee. Please insert
social security or other identifying number of
assignee.)

	

the within WaMu Mortgage
Pass-Through Certificate and hereby irrevocably constitutes and
appoints

	

	
 

	
 

	
Attorney to transfer said Certificate on the
Certificate Register, with full power of substitution in the
premises.

 

 

	

Dated:_______________________

	

 

	

	

 

	

 

	

Signature Guaranteed

 

	

	
NOTICE:   The signature to this
assignment must correspond with the name as written upon the face
of the within instrument in every particular, without alteration or
enlargement or any change whatever.  This Certificate does not
represent an obligation of or an interest in WaMu Asset Acceptance
Corp. or any of its affiliates.  Neither this Certificate nor
the underlying Mortgage Loans are guaranteed by any agency or
instrumentality of the United States.

 

 

	
Exhibit C

 

[Reserved]

 

 

	

Exhibit D

 

 

Mortgage Loan Schedule

 

	

 

 

	

 

	
        The
Mortgage Loan Schedule, included as Exhibit D to the Pooling and
Servicing Agreement, has been intentionally omitted from this
filing.  Copies may be obtained from WaMu Asset Acceptance
Corp. or LaSalle Bank National Association by
contacting:

 

	

 

	
      in the case
of WaMu Asset Acceptance Corp.,

 

	

 

	
        John
Ganzer

         WaMu Asset
Acceptance Corp.

          c/o Washington
Mutual Mortgage Securities Corp.

         75 N. Fairway
Drive,VHF2A01

         Vernon Hills, IL
60061

         Telephone:
 (847) 549-3113

         Facsimile:    
(847) 549-3680

 

 

	

 

	
      in the case
of LaSalle Bank National Association,

 

	

 

	
       
Stefanie Edwards

         LaSalle Bank
National Association

         135 S. LaSalle
Street, Suite 1511

         Chicago, IL 
60603

         Telephone:  (312)
904-8975

         Facsimile:    (312)
904-2084

 

 

	
Exhibit E

 

 

[Reserved]

 

 

 

	
Exhibit F

 

 

FORM OF TRANSFEROR CERTIFICATE FOR

JUNIOR SUBORDINATE CERTIFICATES

 

[Date]

 LaSalle Bank National Association, as Trustee
(the “Trustee”)

135
South LaSalle Street, Suite 1511

Chicago, Illinois, 60603

Attention: Global Securitization Trust Services
(WaMu 2007-HY1)

 

WaMu
Asset Acceptance Corp. (“Washington Mutual”)

1301
Second Avenue, WMC 3501A

Seattle, WA 98101

 

 

Re:      Purchase of
WaMu Asset Acceptance Corp. WaMu Mortgage Pass-Through Certificates
Series 2007-HY1, Class [   ]  (the
“Certificates”)

Ladies
and Gentlemen:

In
connection with our disposition of the above Certificates we
certify that (a) we understand the Certificates have not been
registered under the Securities Act of 1933, as amended (the
“Act”) and are being disposed by us in a transaction
that is exempt from the registration requirements of the Act, and
(b) we have not offered or sold any certificates to, or solicited
offers to buy any Certificates from, any person, or otherwise
approached or negotiated with any person with respect thereto, or
taken any other action which would result in a violation of Section
5 of the Act.

	
 

	
Very
truly yours,

 

[Name of Transferor]

 

By: 
__________________________________

Authorized Officer

 

 

 

	
Exhibit G

 

FORM OF TRANSFEREE'S AGREEMENT FOR

JUNIOR SUBORDINATE CERTIFICATES

 

[Date]

 

LaSalle Bank National Association, as Trustee
(the “Trustee”)

135
South LaSalle Street, Suite 1511

Chicago, Illinois, 60603

Attention: Global Securitization Trust Services
(WaMu 2007-HY1)

 

WaMu
Asset Acceptance Corp. (“Washington Mutual”)

1301
Second Avenue, WMC 3501A

Seattle, WA 98101

 

The
undersigned (the “Purchaser”) proposes to purchase WaMu
Asset Acceptance Corp. WaMu Mortgage Pass-Through Certificates,
Series 2007-HY1, Class [   ] (the “Purchased
Certificates”) in the principal amount of $______________. In
doing so, the Purchaser hereby acknowledges and agrees as
follows:

Section 1. Definitions. Each capitalized term
used herein and not otherwise defined herein shall have the meaning
ascribed to it in the Pooling and Servicing Agreement, dated as of
January 1, 2007 (the “Pooling Agreement”), by and among
WaMu Asset Acceptance Corp. (“Washington Mutual”),
Washington Mutual Bank (the “Servicer”), LaSalle Bank
National Association, as trustee (the “Trustee”), and
Christiana Bank & Trust Company, as Delaware trustee, of the
WaMu Asset Acceptance Corp. WaMu Mortgage Pass-Through
Certificates, Series 2007-HY1.

Section 2. Representations and Warranties of the
Purchaser. In connection with the proposed transfer, the Purchaser
represents and warrants to Washington Mutual, the Servicer, the
Trustee and the Trust that:

(a)        The
Purchaser is duly organized, validly existing and in good standing
under the laws of the jurisdiction in which the Purchaser is
organized, is authorized to invest in the Purchased Certificates,
and to enter into this Agreement, and duly executed and delivered
this Agreement;

(b)        The
Purchaser is acquiring the Purchased Certificates for its own
account as principal and not with a view to the distribution
thereof, in whole or in part;

(c)        The
Purchaser is an “accredited investor” as such term is
defined in paragraph (a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) of
Section 501 of Regulation D under the Securities Act of 1933, as
amended (the “Act”), has knowledge of financial and
business matters and is capable of evaluating the merits and risks
of an investment in the Purchased Certificates; the Purchaser has
sought such accounting, legal and tax advice as it has considered
necessary to make an informed investment decision; and the
Purchaser is able to bear the economic risk of an investment in the
Purchased Certificates and can afford a complete loss of such
investment;

(d)        The
Purchaser is not affiliated with the Trustee;

(e)        The
Purchaser confirms that Washington Mutual has made available to the
Purchaser the opportunity to ask questions of, and receive answers
from Washington Mutual concerning the trust created pursuant to the
Pooling Agreement (the “Trust”), the purchase by the
Purchaser of the Purchased Certificates and all matters relating
thereto that Washington Mutual possesses or can acquire without
unreasonable effort or expense; and

(f)        If
applicable, the Purchaser has complied, and will continue to
comply, with the guidelines established by Thrift Bulletin 13a
issued April 23, 1998, by the Office of Regulatory Activities of
the Federal Home Loan Bank System.

Section 3. Transfer of Purchased
Certificates.

(a)        The
Purchaser understands that the Purchased Certificates have not been
registered under the Act, or any state securities laws and that no
transfer may be made unless the Purchased Certificates are
registered under the Act and under applicable state law or unless
an exemption from registration is available. The Purchaser further
understands that neither Washington Mutual nor the Trust is under
any obligation to register the Purchased Certificates or make an
exemption available. In the event that such a transfer is to be
made within two years from the Closing Date without registration
under the Act or applicable state securities laws, (i) the Trustee
shall require, in order to assure compliance with such laws, that
the Certificateholder's prospective transferee each certify to
Washington Mutual, the Trustee and the Trust as to the factual
basis for the registration or qualification exemption relied upon,
and (ii) the Trustee or Washington Mutual may require an Opinion of
Counsel that such transfer may be made pursuant to an exemption
from the Act and state securities laws, which Opinion of Counsel
shall not be an expense of the Trust, the Trustee or Washington
Mutual. Any such Certificateholder desiring to effect such transfer
shall, and does hereby agree to, indemnify the Trust, the Trustee
and Washington Mutual against any liability that may result if the
transfer is not so exempt or is not made in accordance with such
federal and state laws.

(b)        No
transfer of a Purchased Certificate shall be made unless the
transferee provides Washington Mutual and the Trustee with (i) a
Transferee's Agreement, substantially in the form of this
Agreement, (ii) an affidavit substantially in the form of Exhibit N
to the Pooling Agreement and (iii) if so indicated in such
affidavit, a Benefit Plan Opinion (as defined in Section 1.01 of
the Pooling Agreement).

(c)        The
Purchaser acknowledges that its Purchased Certificates bear a
legend setting forth the applicable restrictions on
transfer.

IN
WITNESS WHEREOF, the undersigned has caused this Agreement to be
validly executed by its duly authorized representative as of the
day and the year first above written.

	
 

	
[Purchaser]

 

 

By: 
__________________________________

 

Its:
___________________________________

 

 

 

	
Exhibit H

 

FORM OF ADDITIONAL MATTER INCORPORATED INTO THE
FORM OF THE CERTIFICATES

(OTHER THAN THE CLASS R
CERTIFICATES)

 

 

This
Certificate does not represent an obligation of or interest in WaMu
Asset Acceptance Corp. or any of its affiliates. Neither this
Certificate nor the underlying Mortgage Loans are guaranteed by any
agency or instrumentality of the United States.

This
certifies that the above-named Registered Owner is the registered
owner of a beneficial interest in a trust (the “Trust”)
that owns a pool of assets consisting of, among other things,
conventional one- to four-family mortgage loans (the
“Mortgage Loans”), and that was formed by WaMu Asset
Acceptance Corp. (the “Company”), which term includes
any successor entity under the Pooling Agreement referred to below.
 The Trust was created pursuant to a Pooling and Servicing
Agreement, dated as of the Cut-Off Date stated above (the
“Pooling Agreement”), among the Company, the Servicer,
LaSalle Bank National Association, as Trustee (the
“Trustee”), and Christiana Bank & Trust Company, as
Delaware Trustee, a summary of certain of the pertinent provisions
of which is set forth hereafter. To the extent not defined herein,
the capitalized terms used herein have the meanings assigned in the
Pooling Agreement. Nothing herein shall be deemed inconsistent with
such meanings, and in the event of any conflict between the Pooling
Agreement and the terms of this Certificate, the Pooling Agreement
shall control. This Certificate is issued under and is subject to
the terms, provisions and conditions of the Pooling Agreement, to
which Pooling Agreement the Holder of this Certificate, by virtue
of the acceptance hereof, assents and by which such Holder is
bound.

Distributions will be made, pursuant to the
Pooling Agreement, on the 25th day of each month or, if such 25th
day is not a Business Day, the Business Day immediately following
(the “Distribution Date”), commencing on the first
Distribution Date specified above, to the Person in whose name this
Certificate is registered at the close of business on the last day
(or if such last day is not a Business Day, the Business Day
immediately preceding such last day) of the month immediately
preceding the month of such distribution (the “Record
Date”), to the extent of such Certificateholder's Percentage
Interest represented by this Certificate for such Distribution Date
then distributable on the Certificates of this Class, as specified
in Section 4.04 of the Pooling Agreement.

Distributions on this Certificate will be made by
the Trustee by wire transfer or check mailed to the address of the
Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final
distribution on this Certificate will be made after due notice by
the Trustee of the pendency of such distribution and only upon
presentation and surrender of this Certificate to the Certificate
Registrar.

Reference is hereby made to the further
provisions of this Certificate set forth below, which further
provisions shall for all purposes have the same effect as if set
forth at this place.

Unless
the certificate of authentication hereon has been executed by or on
behalf of the Trustee, by manual signature, this Certificate shall
not be entitled to any benefit under the Pooling Agreement or be
valid for any purpose.

IN
WITNESS WHEREOF, the Trust has caused this Certificate to be duly
executed.

 

	
 

	
WaMu
MORTGAGE PASS-THROUGH CERTIFICATES SERIES 2007-HY1 TRUST

 

	
 

	
By:

	
LASALLE BANK NATIONAL ASSOCIATION, as
Trustee

 

	
 

	
 

	
 

 

By: 
_____________________________________

 

 

(TRUSTEE'S CERTIFICATE OF
AUTHENTICATION)

 

 

This is
one of the Certificates referred to in the within-mentioned Pooling
Agreement.

LASALLE BANK NATIONAL ASSOCIATION,

as
Trustee

 

 

 

By:
_____________________________________

 

Dated:
___________________________________

 

 

WaMu ASSET ACCEPTANCE CORP.

WaMu MORTGAGE PASS-THROUGH CERTIFICATE

 

 

This
Certificate is one of a duly authorized issue of Certificates
designated as WaMu Mortgage Pass-Through Certificates of the Series
and Class specified hereon (herein called the
“Certificates”) and representing a beneficial interest
in the Trust.

The
Certificates do not represent an obligation of, or an interest in,
the Company or any of its affiliates and are not insured or
guaranteed by any governmental agency. The Certificates are limited
in right of payment to certain collections and recoveries
respecting the Mortgage Loans, all as more specifically set forth
herein and in the Pooling Agreement. In the event funds are
advanced with respect to any Mortgage Loan, such advance is
reimbursable to the Servicer from the related recoveries on such
Mortgage Loan or from amounts received with respect to other
Mortgage Loans to the extent that such advance is not otherwise
recoverable.

As
provided in the Pooling Agreement, withdrawals from the Certificate
Account may be made from time to time for purposes other than
distributions to Certificateholders, such purposes including
reimbursement to the Servicer of advances made, or certain expenses
incurred, by it.

The
Pooling Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights
and obligations of the Company and the rights of the
Certificateholders under the Pooling Agreement at any time by the
Company, the Servicer and the Trustee with the consent of the
Holders of the Certificates evidencing Percentage Interests
aggregating not less than 66%. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and
upon all future Holders of this Certificate and of any Certificate
issued upon the transfer hereof or in exchange herefor or in lieu
hereof whether or not notation of such consent is made upon this
Certificate. The Pooling Agreement also permits the amendment
thereof, in certain limited circumstances, without the consent of
the Holders of any of the Certificates.

As
provided in the Pooling Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is
registrable in the Certificate Register upon surrender of this
Certificate for registration of transfer at the office of the
Certificate Registrar or the office maintained by the Trustee in
the City and State of New York, duly endorsed by, or accompanied by
an assignment in the form below or other written instrument of
transfer in form satisfactory to the Trustee or any Authenticating
Agent duly executed by, the Holder hereof or such Holder's attorney
duly authorized in writing, and thereupon one or more new
Certificates of Authorized Denominations evidencing the same
Percentage Interest set forth hereinabove will be issued to the
designated transferee or transferees.

[to be
used only in the case of the Junior Subordinate Certificates:] [No
transfer of a Certificate will be made unless such transfer is
exempt from or is made in accordance with the registration
requirements of the Securities Act of 1933, as amended (the
“Securities Act”) and any applicable state securities
laws. In the event that a transfer is to be made without
registration or qualification under applicable laws, (i) in the
event such transfer is made pursuant to Rule 144A under the
Securities Act, the Company and the Trustee shall require the
transferee to execute an investment letter in substantially the
form attached as Exhibit L to the Pooling Agreement, which
investment letter shall not be an expense of the Company, the
Servicer, the Trust, the Delaware Trustee or the Trustee and (ii)
in the event that such a transfer is not made pursuant to Rule 144A
under the Securities Act, the Trustee may require an Opinion of
Counsel satisfactory to the Trustee that such transfer may be made
without such registration or qualification, which Opinion of
Counsel shall not be an expense of the Company, the Servicer, the
Trust, the Trustee or the Delaware Trustee. Neither the Company nor
the Trust will register the Certificate under the Securities Act,
qualify the Certificate under any state securities law or provide
registration rights to any purchaser. Any Holder desiring to effect
such transfer shall, and does hereby agree to, indemnify the Trust,
the Trustee, the Delaware Trustee, the Company and the Servicer
against any liability that may result if the transfer is not made
in accordance with the Pooling Agreement.]

The
Certificates are issuable only as registered Certificates without
coupons in Authorized Denominations specified in the Pooling
Agreement. As provided in the Pooling Agreement and subject to
certain limitations therein set forth, Certificates are
exchangeable for new Certificates of Authorized Denominations of
like Certificate Principal Balance or Percentage Interest, as
applicable, as requested by the Holder surrendering the
same.

A
reasonable service charge may be made for any such registration of
transfer or exchange, and the Trustee may require payment of a sum
sufficient to cover any tax or other governmental charge payable in
connection therewith.

The
Company, the Servicer, the Trust, the Trustee, the Delaware Trustee
and any agent of any of them may treat the Person in whose name
this Certificate is registered as the owner hereof for all
purposes, and none of the Company, the Servicer, the Trust, the
Trustee, the Delaware Trustee nor any agent thereof shall be
affected by notice to the contrary.

The
obligations created by the Pooling Agreement and the Trust created
thereby shall terminate upon (i) the later of the final payment or
other liquidation (including purchase by the Servicer) of the last
Mortgage Loan owned by the Trust or the disposition of all property
acquired upon foreclosure or deed in lieu of foreclosure of any
Mortgage Loan, and (ii) the payment to Certificateholders of all
amounts required to be paid to them pursuant to the Pooling
Agreement. The Pooling Agreement permits, but does not require, the
Servicer to purchase from the Trust all Mortgage Loans at the time
subject thereto and all property acquired by the Trust in respect
of any Mortgage Loan upon payment to the Certificateholders of the
amounts specified in the Pooling Agreement. The exercise of such
right will effect early retirement of the Certificates, the
Servicer’s right to purchase being subject to the aggregate
Principal Balance of the Mortgage Loans at the time of purchase
being less than the Clean-Up Call Percentage of the aggregate
Principal Balance of the Mortgage Loans as of the Cut-Off
Date.

 

	
ASSIGNMENT

	
FOR VALUE RECEIVED the undersigned hereby sell(s)
and assign(s) and transfer(s) unto

	

	

	

	
 

	
 

	

(Please print or typewrite name and
address, including postal zip code of assignee. Please insert
social security or other identifying number of
assignee.)

	

the within WaMu Mortgage
Pass-Through Certificate and hereby irrevocably constitutes and
appoints

	

	
 

	
 

	
Attorney to transfer said Certificate on the
Certificate Register, with full power of substitution in the
premises.

 

 

	

Dated:_______________________

	

 

	

	

 

	

 

	

Signature Guaranteed

 

	

	
NOTICE:   The signature to this
assignment must correspond with the name as written upon the face
of the within instrument in every particular, without alteration or
enlargement or any change whatever.  This Certificate does not
represent an obligation of or an interest in WaMu Asset Acceptance
Corp. or any of its affiliates.  Neither this Certificate nor
the underlying Mortgage Loans are guaranteed by any agency or
instrumentality of the United States.

 

 

	
Exhibit I

 

 

TRANSFEROR CERTIFICATE FOR CLASS R
CERTIFICATES

[Date]

 

 

LaSalle Bank National Association, as
Trustee

135
South LaSalle Street, Suite 1511

Chicago, Illinois, 60603

Attention: Global Securitization Trust Services
(WaMu 2007-HY1)

Re:      WaMu Asset
Acceptance Corp. WaMu Mortgage Pass-Through Certificates, Series
2007-HY1, Class R

Ladies
and Gentlemen:

This
letter is delivered to you in connection with the sale from
                                        
 (the “Seller”) to
          
                                   
(the “Purchaser”) of $____________________ initial
Certificate Principal Balance of WaMu Mortgage Pass-Through
Certificates, Series 2007-HY1, Class R (the
“Certificate”), pursuant to Section 5.01 of the Pooling
and Servicing Agreement (the “Pooling Agreement”),
dated as of January 1, 2007 among WaMu Asset Acceptance Corp., as
depositor (the "Company"), Washington Mutual Bank, as servicer (the
“Servicer”), LaSalle Bank National Association, as
trustee (the “Trustee”), and Christiana Bank &
Trust Company, as Delaware trustee. All terms used herein and not
otherwise defined shall have the meanings set forth in the Pooling
Agreement. The Seller hereby certifies, represents and warrants to,
and covenants with, the Company, the Servicer, the Trustee and the
Trust that:

1.        
No purpose of the Seller relating to the sale of the Certificate by
the Seller to the Purchaser is or will be to enable the Seller to
impede the assessment or collection of tax.

2.        
The Seller understands that the Purchaser has delivered to the
Trustee and the Company a transferee affidavit and agreement in the
form attached to the Pooling Agreement as Exhibit J. The Seller
does not know or believe that any representation contained therein
is false.

3.        
The Seller has no actual knowledge that the proposed Transferee is
not a Permitted Transferee.

4.        
The Seller has no actual knowledge that the Purchaser would be
unwilling or unable to pay taxes due on its share of the taxable
income attributable to the Certificates.

5.        
The Seller has conducted a reasonable investigation of the
financial condition of the Purchaser and, as a result of the
investigation, found that the Purchaser has historically paid its
debts as they came due, and found no significant evidence to
indicate that the Purchaser will not continue to pay its debts as
they come due in the future.

6.        
The Purchaser has represented to the Seller that, if the
Certificates constitute a noneconomic residual interest, it (i)
understands that as holder of a noneconomic residual interest it
may incur tax liabilities in excess of any cash flows generated by
the interest, and (ii) intends to pay taxes associated with its
holding of the Certificates as they become due.

	
 

	
Very
truly yours,

 

[Seller]

 

 

By: 
__________________________________

           
Name: __________________________

           
Title: ___________________________

 

 

 

	
Exhibit J

 

 

TRANSFEREE AFFIDAVIT AND AGREEMENT FOR CLASS R
CERTIFICATES

 

 

	
STATE OF

	
_________________________

	
)

	
 

	
 

	
 

	
)

	
ss:

	
COUNTY OF

	
_________________________

	
)

	
 

 

 

[NAME
OF OFFICER], being first duly sworn, deposes and says:

1.        
That he is [Title of Officer] of [Name of Owner] (record or
beneficial owner of the Class R Certificate (the
“Owner”)), a [savings institution] [corporation] duly
organized and existing under the laws of [the State of
                 
] [the United States], on behalf of which he makes this affidavit
and agreement.

2.        
That the Owner (i) is not and will not be a “disqualified
organization” as of [date of transfer] within the meaning of
Section 860E(e)(5) of the Internal Revenue Code of 1986, as amended
(the “Code”) and will endeavor to remain other than a
disqualified organization for so long as it retains its ownership
interest in the Class R Certificates, and (ii) is acquiring the
Class R Certificates for its own account or for the account of
another Owner from which it has received an affidavit and agreement
in substantially the same form as this affidavit and agreement.
(For this purpose, a disqualified organization” means the
United States, any state or political subdivision thereof, or any
agency or instrumentality of any of the foregoing (other than an
instrumentality all of the activities of which are subject to tax
and, except for the Federal Home Loan Mortgage Corporation, a
majority of whose board of directors is not selected by any such
governmental entity), or any foreign government or international
organization, or any agency or instrumentality of such foreign
government or organization, any rural electric or telephone
cooperative, or any organization (other than certain farmers'
cooperatives) that is generally exempt from federal income tax
unless such organization is subject to the tax on unrelated
business taxable income).

3.        
That the Owner is aware (i) of the tax that would be imposed on
transfers of the Class R Certificates after March 31, 1988; (ii)
that such tax would be on the transferor, or, if such transfer is
through an agent (which person includes a broker, nominee or
middle-man) for a disqualified organization, on the agent; (iii)
that the person otherwise liable for the tax shall be relieved of
liability for the tax if the transferee furnishes to such person an
affidavit that the transferee is not a disqualified organization
and, at the time of transfer, such person does not have actual
knowledge that the affidavit is false; and (iv) that the Class R
Certificates may be a “noneconomic residual interest”
within the meaning of Treasury regulations promulgated pursuant to
the Code and that the transferor of a noneconomic residual interest
will remain liable for any taxes due with respect to the income on
such residual interest, if a significant purpose of the transfer
was to enable the transferor to impede the assessment or collection
of tax.

4.        
That the Owner is aware of the tax imposed on a “pass-through
entity” holding the Class R Certificates if at any time
during the taxable year of the pass-through entity a disqualified
organization is the record holder of an interest in such entity.
(For this purpose, a “pass through entity” includes a
regulated investment company, a real estate investment trust or
common trust fund, a partnership, trust or estate, and certain
cooperatives.)

5.        
That the Owner is aware that the Trustee will not register the
Transfer of the Class R Certificates unless the transferee, or the
transferees' agent, delivers to it an affidavit and agreement,
among other things, in substantially the same form as this
affidavit and agreement. The Owner expressly agrees that it will
not consummate any such transfer if it knows or believes that any
of the representations contained in such affidavit and agreement
are false.

6.        
That the Owner has reviewed the restrictions set forth on the face
of the Class R Certificates and the provisions of Section 5.01 of
the Pooling Agreement under which the Class R Certificates were
issued (in particular, clauses (iii)(A) and (iii)(B) of Section
5.01(c) which authorize the Trustee to deliver payments to a person
other than the Owner and negotiate a mandatory sale by the Trustee
in the event the Owner holds such Certificates in violation of
Section 5.01). The Owner expressly agrees to be bound by and to
comply with such restrictions and provisions.

7.        
That the Owner consents to any additional restrictions or
arrangements that shall be deemed necessary upon advice of counsel
to constitute a reasonable arrangement to ensure that the Class R
Certificates will only be owned, directly or indirectly, by an
Owner that is not a disqualified organization.

8.        
The Owner's Taxpayer Identification Number is
                              
..

9.        
That no purpose of the Owner relating to the purchase of the Class
R Certificates by the Owner is or will be to enable the transferor
to impede the assessment or collection of tax, and that in making
this representation, the Owner warrants that the Owner is familiar
with Treasury Regulation 1.860E-1(c) and with the preamble to the
adoption of amendments to that regulation as of July 19, 2002,
attached hereto as Exhibit 1.

10.       
That the Owner anticipates that it will, so long as it holds the
Class R Certificates, have sufficient assets to pay any taxes owed
by the holder of such Certificates, and hereby represents to and
for the benefit of the person from whom it acquired the Class R
Certificates that the Owner intends to pay taxes associated with
holding such Certificates as they become due, fully understanding
that it may incur tax liabilities in excess of any cash flows
generated by the Class R Certificates. That the Owner has provided
financial statements or other financial information requested by
the transferor in connection with the transfer of the Class R
Certificates to permit the transferor to assess the financial
capability of the Owner to pay such taxes.

11.       
That the Owner has no present knowledge or expectation that it will
be unable to pay any United States taxes owed by it so long as any
of the Class R Certificates remain outstanding.

12.       
That the Owner has no present knowledge or expectation that it will
become insolvent or subject to a bankruptcy proceeding for so long
as any of the Class R Certificates remain outstanding.

13.       
That the Owner is familiar with Treasury Regulation 1.860E-1(c) and
with the preamble to the adoption of amendments to that regulation
as of July 19, 2002, attached hereto as Exhibit 1, and that no
purpose of the Owner relating to any sale of the Class R
Certificates by the Owner will be to impede the assessment or
collection of tax.

14.        The
Owner is a citizen or resident of the United States, a corporation,
partnership or other entity treated as a partnership or corporation
for U.S. federal income tax purposes created or organized in, or
under the laws of, the United States or any state thereof or the
District of Columbia, or an estate or trust whose income from
sources without the United States is includible in gross income for
United States federal income tax purposes regardless of its
connection with the conduct of a trade or business within the
United States.

15.        The
Owner hereby agrees that it will not cause income from the Class R
Certificates to be attributable to a foreign permanent
establishment or fixed base (within the meaning of an applicable
income tax treaty) of the Owner or another United States
taxpayer.

16.        The
Owner hereby agrees to cooperate with the Company and to take any
action required of it by the Code or Treasury regulations
thereunder (whether now or hereafter promulgated) in order to
create or maintain the REMIC status of REMIC I, REMIC II, REMIC
III, and REMIC IV (the “REMICs”).

17.        The
Owner hereby agrees that it will not take any action that could
endanger the REMIC status of the REMICs or result in the imposition
of tax on the REMICs unless counsel for, or acceptable to, the
Company has provided an opinion that such action will not result in
the loss of such REMIC status or the imposition of such tax, as
applicable.

18.        The
Owner as transferee of the Class R Certificates has represented to
the transferor that, if the Class R Certificates constitute a
noneconomic residual interest, the Owner (i) understands that as
holder of a noneconomic residual interest it may incur tax
liabilities in excess of any cash flows generated by the interest,
and (ii) intends to pay taxes associated with its holding of the
Class R Certificates as they become due.

19.       
That the Owner satisfies the condition in the paragraph marked
below [mark one paragraph only]:

	
___

	
The Owner is not an employee benefit or other
plan subject to the prohibited transaction provisions of the
Employee Retirement Income Security Act of 1974, as amended, or
Section 4975 of the Internal Revenue Code of 1986, as amended (a
“Plan”), or any other person (including an investment
manager, a named fiduciary or a trustee of any Plan) acting,
directly or indirectly, on behalf of, or purchasing the Class R
Certificates with “plan assets” of, any Plan within the
meaning of the Department of Labor (“DOL”) regulation
at 29 C.F.R. Section 2510.3-101.

	
___

	
The Owner has delivered a Benefit Plan Opinion
(as defined in Section 1.01 of the Pooling Agreement under which
the Class R Certificates were issued).

 

IN
WITNESS WHEREOF, the Owner has caused this instrument to be
executed on its behalf, pursuant to the authority of its Board of
Directors, by its [Title of Officer] and its corporate seal to be
hereunto attached, attested by its [Assistant] Secretary, this
          day
of          ,
20     .

 

	
 

	
[Name of Owner]

 

 

By: 
__________________________________

[Name of Officer]

[Title of Officer

 

	
[Corporate Seal]

 

ATTEST:

 

[Assistant Secretary]

	
 

 

 

Personally appeared before me the above-named
[Name of Officer], known or proved to me to be the same person who
executed the foregoing instrument and to be the [Title of Officer]
of the Owner, and Acknowledged to me that he executed the same as
his free act and deed and the free act and deed of the
Owner.

Subscribed and sworn before me this ___ day of
__________________, 20__.

 

	
 

	
NOTARY PUBLIC

 

COUNTY OF
________________________________

STATE OF
__________________________________

My
commission expires the       
day of
                  
, 20      .

 

 

 

	
Exhibit 1 to Transferee Affidavit

 

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26
CFR Parts 1 and 602

[TD
9004]

RIN
1545-AW98

 

Real
Estate Mortgage Investment Conduits

 

AGENCY: Internal Revenue Service (IRS),
Treasury.

 

ACTION: Final regulations.

 

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

 

	
SUMMARY:

	
This
document contains final regulations relating to safe harbor
transfers of noneconomic residual interests in real estate mortgage
investment conduits (REMICs). The final regulations provide
additional limitations on the circumstances under which transferors
may claim safe harbor treatment.

	
 

	
 

	
DATES:

	
Effective Date: These regulations are effective
July 19, 2002.  Applicability Date: For dates of
applicability, see Sec. 1.860E-(1)(c)(10).

	
 

	
 

	
FOR
FURTHER INFORMATION CONTACT:

	
Courtney Shepardson at (202) 622-3940

(not
a toll-free number).

			

 

SUPPLEMENTARY
INFORMATION:

 

Paperwork Reduction
Act

 

The
collection of information in this final rule has been reviewed and,
pending receipt and evaluation of public comments, approved by the
Office of Management and Budget (OMB) under 44 U.S.C. 3507 and
assigned control number 1545-1675.  The collection of
information in this regulation is in Sec. 1.860E-1(c)(5)(ii). This
information is required to enable the IRS to verify that a taxpayer
is complying with the conditions of this regulation. The collection
of information is mandatory and is required. Otherwise, the
taxpayer will not receive the benefit of safe harbor treatment as
provided in the regulation. The likely respondents are businesses
and other for-profit institutions.

Comments on the collection of information should
be sent to the Office of Management and Budget, Attn: Desk Officer
for the Department of the Treasury, Office of Information and
Regulatory Affairs, Washington, DC, 20503, with copies to the
Internal Revenue Service, Attn: IRS Reports Clearance Officer,
W:CAR:MP:FP:S, Washington, DC 20224. Comments on the collection of
information should be received by September 17, 2002. Comments are
specifically requested concerning: 

Whether the collection of information is
necessary for the proper performance of the functions of the
Internal Revenue Service, including whether the information will
have practical utility; 

The accuracy of the estimated burden associated
with the collection of information (see below);

How the quality, utility, and clarity of the
information to be collected may be enhanced;

How the burden of complying with the collection
of information may be minimized, including through the application
of automated collection techniques or other forms of information
technology; and

Estimates of capital or start-up costs and costs
of operation, maintenance, and purchase of service to provide
information.

An
agency may not conduct or sponsor, and a person is not required to
respond to, a collection of information unless it displays a valid
control number assigned by the Office of Management and
Budget.

The
estimated total annual reporting burden is 470 hours, based on an
estimated number of respondents of 470 and an estimated average
annual burden hours per respondent of one hour.

Books
or records relating to a collection of information must be retained
as long as their contents may become material in the administration
of any internal revenue law. Generally, tax returns and tax return
information are confidential, as required by 26 U.S.C.
6103.

Background

This
document contains final regulations regarding the proposed
amendments to 26 CFR part 1 under section 860E of the Internal
Revenue Code (Code). The regulations provide the circumstances
under which a transferor of a noneconomic REMIC residual interest
meeting the investigation and representation requirements may avail
itself of the safe harbor by satisfying either the formula test or
the asset test.

Final
regulations governing REMICs, issued in 1992, contain rules
governing the transfer of noneconomic REMIC residual interests. In
general, a transfer of a noneconomic residual interest is
disregarded for all tax purposes if a significant purpose of the
transfer is to enable the transferor to impede the assessment or
collection of tax. A purpose to impede the assessment or collection
of tax (a wrongful purpose) exists if the transferor, at the time
of the transfer, either knew or should have known that the
transferee would be unwilling or unable to pay taxes due on its
share of the REMIC's taxable income.

Under a
safe harbor, the transferor of a REMIC noneconomic residual
interest is presumed not to have a wrongful purpose if two
requirements are satisfied: (1) the transferor conducts a
reasonable investigation of the transferee's financial condition
(the investigation requirement); and (2) the transferor secures a
representation from the transferee to the effect that the
transferee understands the tax obligations associated with holding
a residual interest and intends to pay those taxes (the
representation requirement).

The IRS
and Treasury have been concerned that some transferors of
noneconomic residual interests claim they satisfy the safe harbor
even in situations where the economics of the transfer clearly
indicate the transferee is unwilling or unable to pay the tax
associated with holding the interest. For this reason, on February
7, 2000, the IRS published in the Federal Register (65 FR 5807) a
notice of proposed rulemaking (REG-100276-97; REG-122450-98)
designed to clarify the safe harbor by adding the ``formula test,''
an economic test. The proposed regulation provides that the safe
harbor is unavailable unless the present value of the anticipated
tax liabilities associated with holding the residual interest does
not exceed the sum of: (1) The present value of any consideration
given to the transferee to acquire the interest; (2) the present
value of the expected future distributions on the interest; and (3)
the present value of the anticipated tax savings associated with
holding the interest as the REMIC generates losses.

The
notice of proposed rulemaking also contained rules for FASITs.
Section 1.860H-6(g) of the proposed regulations provides
requirements for transfers of FASIT ownership interests and adopts
a safe harbor by reference to the safe harbor provisions of the
REMIC regulations.   

In
January 2001, the IRS published Rev. Proc. 2001-12 (2001-3 I.R.B.
335) to set forth an alternative safe harbor that taxpayers could
use while the IRS and the Treasury considered comments on the
proposed regulations. Under the alternative safe harbor, if a
transferor meets the investigation requirement and the
representation requirement but the transfer fails to meet the
formula test, the transferor may invoke the safe harbor if the
transferee meets a two-prong test (the asset test). A transferee
generally meets the first prong of this test if, at the time of the
transfer, and in each of the two years preceding the year of
transfer, the transferee's gross assets exceed $100 million and its
net assets exceed $10 million. A transferee generally meets the
second prong of this test if it is a domestic, taxable corporation
and agrees in writing not to transfer the interest to any person
other than another domestic, taxable corporation that also
satisfies the requirements of the asset test. A transferor cannot
rely on the asset test if the transferor knows, or has reason to
know, that the transferee will not comply with its written
agreement to limit the restrictions on subsequent transfers of the
residual interest.

Rev.
Proc. 2001-12 provides that the asset test fails to be satisfied in
the case of a transfer or assignment of a noneconomic residual
interest to a foreign branch of an otherwise eligible transferee.
If such a transfer or assignment were permitted, a corporate
taxpayer might seek to claim that the provisions of an applicable
income tax treaty would resource excess inclusion income as foreign
source income, and that, as a consequence, any U.S. tax liability
attributable to the excess inclusion income could be offset by
foreign tax credits. Such a claim would impede the assessment or
collection of U.S. tax on excess inclusion income, contrary to the
congressional purpose of assuring that such income will be taxable
in all events. See, e.g., sections 860E(a)(1), (b), (e) and 860G(b)
of the Code.

The
Treasury and the IRS have learned that certain taxpayers
transferring noneconomic residual interests to foreign branches
have attempted to rely on the formula test to obtain safe harbor
treatment in an effort to impede the assessment or collection of
U.S. tax on excess inclusion income. Accordingly, the final
regulations provide that if a noneconomic residual interest is
transferred to a foreign permanent establishment or fixed base of a
U.S. taxpayer, the transfer is not eligible for safe harbor
treatment under either the asset test or the formula test. The
final regulations also require a transferee to represent that it
will not cause income from the noneconomic residual interest to be
attributable to a foreign permanent establishment or fixed
base.

Section
1.860E-1(c)(8) provides computational rules that a taxpayer may use
to qualify for safe harbor status under the formula test. Section
1.860E-1(c)(8)(i) provides that the transferee is presumed to pay
tax at a rate equal to the highest rate of tax specified in section
11(b). Some commentators were concerned that this presumed rate of
taxation was too high because it does not take into consideration
taxpayers subject to the alternative minimum tax rate. In light of
the comments received, this provision has been amended in the final
regulations to allow certain transferees that compute their taxable
income using the alternative minimum tax rate to use the
alternative minimum tax rate applicable to corporations.

Additionally, Sec. 1.860E-1(c)(8)(iii) provides
that the present values in the formula test are to be computed
using a discount rate equal to the applicable Federal short-term
rate prescribed by section 1274(d). This is a change from the
proposed regulation and Rev. Proc. 2001-12. In those publications
the provision stated that “present values are computed using
a discount rate equal to the applicable Federal rate prescribed in
section 1274(d) compounded semiannually” and that “[a]
lower discount rate may be used if the transferee can demonstrate
that it regularly borrows, in the course of its trade or business,
substantial funds at such lower rate from an unrelated third
party.”  The IRS and the Treasury Department have
learned that, based on this provision, certain taxpayers have been
attempting to use unrealistically low or zero interest rates to
satisfy the formula test, frustrating the intent of the test.
Furthermore, the Treasury Department and the IRS believe that a
rule allowing for a rate other than a rate based on an objective
index would add unnecessary complexity to the safe harbor. As a
result, the rule in the proposed regulations that permits a
transferee to use a lower discount rate, if the transferee can
demonstrate that it regularly borrows substantial funds at such
lower rate, is not included in the final regulations; and the
Federal short-term rate has been substituted for the applicable
Federal rate. To simplify taxpayers' computations, the final
regulations allow use of any of the published short-term rates,
provided that the present values are computed with a corresponding
period of compounding. With the exception of the provisions
relating to transfers to foreign branches, these changes generally
have the proposed applicability date of February 4, 2000, but
taxpayers may choose to apply the interest rate formula set forth
in the proposed regulation and Rev. Proc. 2001-12 for transfers
occurring before August 19, 2002.

It is
anticipated that when final regulations are adopted with respect to
FASITs, Sec. 1.860H-6(g) of the proposed regulations will be
adopted in substantially its present form, with the result that the
final regulations contained in this document will also govern
transfers of FASIT ownership interests with substantially the same
applicability date as is contained in this document.

Effect on Other Documents

Rev.
Proc. 2001-12 (2001-3 I.R.B. 335) is obsolete for transfers of
noneconomic residual interests in REMICs occurring on or after
August 19, 2002.

Special Analyses

It is
hereby certified that these regulations will not have a significant
economic impact on a substantial number of small entities. This
certification is based on the fact that it is unlikely that a
substantial number of small entities will hold REMIC residual
interests. Therefore, a Regulatory Flexibility Analysis under the
Regulatory Flexibility Act (5 U.S.C. chapter 6) is not required. It
has been determined that this Treasury decision is not a
significant regulatory action as defined in Executive Order 12866.
Therefore, a regulatory assessment is not required. It also has
been determined that sections 553(b) and 553(d) of the
Administrative Procedure Act (5 U.S.C. chapter 5) do not apply to
these regulations.

Drafting Information

The
principal author of these regulations is Courtney Shepardson.
However, other personnel from the IRS and Treasury Department
participated in their development.

List of Subjects

26 CFR
Part 1

Income
taxes, Reporting and record keeping requirements.

26 CFR
Part 602

Reporting and record keeping
requirements.

Adoption of Amendments to the
Regulations

Accordingly, 26 CFR parts 1 and 602 are amended
as follows:

PART
1--INCOME TAXES

Paragraph 1. The authority citation for part 1
continues to read in part as follows:

    Authority: 26 U.S.C. 7805 * *
*

 

	
Exhibit K

 

 

[Reserved]

 

 

 

 

 

	
Exhibit L

 

 

[FORM OF RULE 144A INVESTMENT
REPRESENTATION]

Description of Rule 144A Securities, including
numbers:

 

___________________________________

___________________________________

___________________________________

___________________________________

 

 

The
undersigned  seller, as registered holder (the
“Seller”), intends to transfer the Rule 144A Securities
described above to the undersigned buyer (the
“Buyer”).

1.        
In connection with such transfer and in accordance with the
agreements pursuant to which the Rule 144A Securities were issued,
the Seller hereby certifies the following facts: Neither the Seller
nor anyone acting on its behalf has offered, transferred, pledged,
sold or otherwise disposed of the Rule 144A Securities, any
interest in the Rule 144A Securities or any other similar security
to, or solicited any offer to buy or accept a transfer, pledge or
other disposition of the Rule 144A Securities, any interest in the
Rule 144A Securities or any other similar security from, or
otherwise approached or negotiated with respect to the Rule 144A
Securities, any interest in the Rule 144A Securities or any other
similar security with, any person in any manner, or made any
general solicitation by means of general advertising or in any
other manner, or taken any other action, that would constitute a
distribution of the Rule 144A Securities under the Securities Act
of 1933, as amended (the “1933 Act”), or that would
render the disposition of the Rule 144A Securities a violation of
Section 5 of the 1933 Act or require registration pursuant thereto,
and that the Seller has not offered the Rule 144A Securities to any
person other than the Buyer or another “qualified
institutional buyer” as defined in Rule 144A under the 1933
Act.

2.        
The Buyer warrants and represents to, and covenants with, the
Seller, the Trustee, the Trust and the Servicer (as defined in
Section 1.01 of the Pooling and Servicing Agreement (the
“Agreement”) dated as of January 1, 2007 among WaMu
Asset Acceptance Corp., as Depositor, Washington Mutual Bank, as
Servicer, LaSalle Bank National Association, as Trustee, and
Christiana Bank & Trust Company, as Delaware Trustee) pursuant
to Section 5.01(f) of the Agreement, as follows:

a.        
The Buyer understands that the Rule 144A Securities have not been
registered under the 1933 Act or the securities laws of any
state.

b.        
The Buyer considers itself a substantial, sophisticated
institutional investor having such knowledge and experience in
financial and business matters that it is capable of evaluating the
merits and risks of investment in the Rule 144A
Securities.

c.        
The Buyer has received and reviewed the Private Placement
Memorandum dated January 24, 2007 relating to the Rule 144A
Securities and has been furnished with all information regarding
the Rule 144A Securities that it has requested from the Seller, the
Trustee, the Company or the Servicer.

d.        
Neither the Buyer nor anyone acting on its behalf has offered,
transferred, pledged, sold or otherwise disposed of the Rule 144A
Securities, any interest in the Rule 144A Securities or any other
similar security to, or solicited any offer to buy or accept a
transfer, pledge or other disposition of the Rule 144A Securities,
any interest in the Rule 144A Securities or any other similar
security from, or otherwise approached or negotiated with respect
to the Rule 144A Securities, any interest in the Rule 144A
Securities or any other similar security with, any person in any
manner, or made any general solicitation by means of general
advertising or in any other manner, or taken any other action, that
would constitute a distribution of the Rule 144A Securities under
the 1933 Act or that would render the disposition of the Rule 144A
Securities a violation of Section 5 of the 1933 Act or require
registration pursuant thereto, nor will it act, nor has it
authorized or will it authorize any person to act, in such manner
with respect to the Rule 144A Securities.

e.        
The Buyer is a “qualified institutional buyer” as that
term is defined in Rule 144A under the 1933 Act and has (1)
completed either of the forms of certification to that effect
attached hereto as Annex 1 or Annex 2, or (2) obtained the waiver
of the Company with respect to Annex 1 and Annex 2
pursuant to Section 5.01(f) of the Agreement. The Buyer is aware
that the sale to it is being made in reliance on Rule 144A. The
Buyer is acquiring the Rule 144A Securities for its own account or
the accounts of other qualified institutional buyers, understands
that such Rule 144A Securities may be resold, pledged or
transferred only (i) to a person reasonably believed to be a
qualified institutional buyer that purchases for its own account or
for the account of a qualified institutional buyer to whom notice
is given that the resale, pledge or transfer is being made in
reliance on Rule 144A, or (ii) pursuant to another exemption from
registration under the 1933 Act.

f.         
The Buyer is not affiliated with (i) the Trustee or
(ii) any Rating Agency that rated the Rule 144A
Securities.

g.        
If applicable, the Buyer has complied, and will continue to comply,
with the guidelines established by Thrift Bulletin 13a issued April
23, 1998, by the Office of Regulatory Activities of the Federal
Home Loan Bank System.

3.        
This document may be executed in one or more counterparts and by
the different parties hereto on separate counterparts, each of
which, when so executed, shall be deemed to be an original; such
counterparts, together, shall constitute one and the same
document.

IN
WITNESS WHEREOF, each of the parties has executed this document as
of the date set forth below.

 

	
___________________________________

	
 

	
___________________________________

	
Print
Name of Seller

	
 

	
Print
Name of Buyer

	
 

	
 

	
 

	
By:

	
______________________________

	
 

	
By:

	
______________________________

	
 

	
Name:

	
 

	
 

	
Name:

	
 

	
Title:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
Taxpayer Identification Number:

	
 

	
Taxpayer Identification Number:

	
___________________________________

	
 

	
___________________________________

	
Date:

	
___________________________

	
 

	
Date:

	
___________________________

							

 

	
Annex 1
to Exhibit L

 

 

QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC
RULE 144A

[For Buyers Other Than Registered Investment
Companies]

 

 

The
undersigned hereby certifies as follows in connection with the Rule
144A Investment Representation to which this Certification is
attached:

1.        
As indicated below, the undersigned is the President, Chief
Financial Officer, Senior Vice President or other executive officer
of the Buyer.

2.        
In connection with purchases by the Buyer, the Buyer is a
“qualified institutional buyer” as that term is defined
in Rule 144A under the Securities Act of 1933 (“Rule
144A”) because (i) the Buyer owned and/or invested on a
discretionary basis $______________________ (the Buyer must own
and/or invest on a discretionary basis at least $100,000,000 in
securities unless the Buyer is a dealer, and, in that case, the
Buyer must own and/or invest on a discretionary basis at least
$10,000,000 in securities) in securities (except for the excluded
securities referred to below) as of the end of the Buyer's most
recent fiscal year (such amount being calculated in accordance with
Rule 144A) and (ii) the Buyer satisfies the criteria in the
category marked below.

	

___

	

Corporation,
etc. The Buyer is a corporation (other than a bank,
savings and loan association or similar institution), Massachusetts
or similar business trust, partnership, or charitable organization
described in Section 501(c)(3) of the Internal Revenue Code.

	

___

	

Bank. The Buyer
(a) is a national bank or banking institution organized under the
laws of any State, territory or the District of Columbia, the
business of which is substantially confined to banking and is
supervised by the State or territorial banking commission or
similar official or is a foreign bank or equivalent institution,
and (b) has an audited net worth of at least $25,000,000 as
demonstrated in its latest annual financial statements, a copy
of which is attached hereto.

	

___

	

Savings and
Loan. The Buyer (a) is a savings and loan association,
building and loan association, cooperative bank, homestead
association or similar institution, which is supervised and
examined by a State or Federal authority having supervision over
any such institutions or is a foreign savings and loan association
or equivalent institution and (b) has an audited net worth of at
least $25,000,000 as demonstrated in its latest annual financial
statements.

	

___

	

Broker-Dealer.
The Buyer is a dealer registered pursuant to Section 15 of the
Securities Exchange Act of 1934.

	

___

	

Insurance
Company. The Buyer is an insurance company whose primary
and predominant business activity is the writing of insurance or
the reinsuring of risks underwritten by insurance companies and
which is subject to supervision by the insurance commissioner or a
similar official or agency of a State or territory or the District
of Columbia.

	

___

	

State or Local
Plan. The Buyer is a plan established and maintained by
a State, its political subdivisions, or any agency or
instrumentality of the State or its political subdivisions, for the
benefit of its employees.

	

___

	

ERISA Plan. The
Buyer is an employee benefit plan within the meaning of Section
3(3) of the Employee Retirement Income Security Act of 1974, as
amended (“ERISA”) and is subject to the fiduciary
responsibility provisions of ERISA.

	

___

	

Investment
Adviser. The Buyer is an investment adviser registered
under the Investment Advisers Act of 1940.

	

___

	

SBIC. The Buyer
is a Small Business Investment Company licensed by the U.S. Small
Business Administration under Section 301(c) or (d) of the Small
Business Investment Act of 1958.

	

___

	

Business Development
Company. The Buyer is a business development company as
defined in Section 202(a)(22) of the Investment Advisers Act of
1940.

	

___

	

Trust Fund. The
Buyer is a trust fund whose trustee is a bank or trust company and
whose participants are exclusively (a) plans established and
maintained by a State, its political subdivisions, or any agency or
instrumentality of the State or its political subdivisions, for the
benefit of its employees, or (b) employee benefit plans within the
meaning of Title I of the Employee Retirement Income Security Act
of 1974, but is not a trust fund that includes as participants
individual retirement accounts or H.R. 10 plans.

3.        
The term “securities” as used herein does not
include (i) securities of issuers that are affiliated with
the Buyer, (ii) securities that are part of an unsold
allotment to or subscription by the Buyer, if the Buyer is a
dealer, (iii) bank deposit notes and certificates of deposit,
(iv) loan participations, (v) repurchase agreements,
(vi) securities owned but subject to a repurchase agreement
and (vii) currency, interest rate and commodity
swaps.

4.        
For purposes of determining the aggregate amount of securities
owned and/or invested on a discretionary basis by the Buyer, the
Buyer used the cost of such securities to the Buyer and did not
include any of the securities referred to in the preceding
paragraph. Further, in determining such aggregate amount, the Buyer
may have included securities owned by subsidiaries of the 
Buyer,  but only if such subsidiaries are consolidated with
the Buyer in its financial statements prepared in accordance with
generally accepted accounting principles and if the investments of
such subsidiaries are managed under the Buyer's direction. However,
such securities were not included if the Buyer is a majority-owned,
consolidated subsidiary of another enterprise and the Buyer is not
itself a reporting company under the Securities Exchange Act of
1934.

5.        
The Buyer acknowledges that it is familiar with Rule 144A and
understands that the seller to it and other parties related to the
Certificates are relying and will continue to rely on the
statements made herein because one or more sales to the Buyer may
be in reliance on Rule 144A.

	

_____

	

 

	

_____

	
 

	
Will
the Buyer be purchasing the Rule 144A Securities for the
Buyer’s own account?

	

Yes

	

No

 

6.        
If the answer to the foregoing question is “no”, the
Buyer agrees that, in connection with any purchase of securities
sold to the Buyer for the account of a third party (including any
separate account) in reliance on Rule 144A, the Buyer will
only purchase for the account of a third party that at the time is
a “qualified institutional buyer” within the meaning of
Rule 144A. In addition, the Buyer agrees that the Buyer will
not purchase securities for a third party unless the Buyer has
obtained a current representation letter from such third party or
taken other appropriate steps contemplated by Rule 144A to
conclude that such third party independently meets the definition
of “qualified institutional buyer” set forth in
Rule 144A.

7.        
The Buyer will notify each of the parties to which this
certification is made of any changes in the information and
conclusions herein. Until such notice is given, the Buyer's
purchase of Rule 144A Securities will constitute a reaffirmation of
this certification as of the date of such purchase.

 

 

	

 

	
 

	

___________________________________

	

 

	
 

	

Print Name of
Buyer

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
______________________________

	
 

	
 

	
 

	
 

	
Name:

	
 

	
 

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
 

	
 

	
Date:

	
____________________________

	
 

	
 

	
 

	
 

	
 

							

 

	
Annex 2 to Exhibit L

 

 

QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC
RULE 144A 

[For Buyers That Are Registered Investment
Companies]

 

 

 

The
undersigned hereby certifies as follows in connection with the Rule
144A Investment Representation to which this Certification is
attached:

1.        
As indicated below, the undersigned is the President, Chief
Financial Officer or Senior Vice President of the Buyer or, if the
Buyer is a “qualified institutional buyer” as that term
is defined in Rule 144A under the Securities Act of 1933
(“Rule 144A”) because Buyer is part of a Family of
Investment Companies (as defined below), is such an officer of the
Adviser.

2.        
In connection with purchases by Buyer, the Buyer is a
“qualified institutional buyer” as defined in SEC Rule
144A because (i) the Buyer is an investment company registered
under the Investment Company Act of 1940, and (ii) as marked below,
the Buyer alone, or the Buyer's Family of Investment Companies,
owned at least $100,000,000 in securities (other than the excluded
securities referred to below) as of the end of the Buyer's most
recent fiscal year. For purposes of determining the amount of
securities owned by the Buyer or the Buyer's Family of Investment
Companies, the cost of such securities was used.

	

____

	

The Buyer owned
$___________________ in securities (other than the excluded
securities referred to below) as of the end of the Buyer's most
recent fiscal year (such amount being calculated in accordance with
Rule 144A).

	

____

	

The Buyer is part of a Family
of Investment Companies which owned in the aggregate
$______________ in securities (other than the excluded securities
referred to below) as of the end of the Buyer's most recent fiscal
year (such amount being calculated in accordance with Rule
144A).

3.        
The term “Family of Investment Companies” as
used herein means two or more registered investment companies (or
series thereof) that have the same investment adviser or investment
advisers that are affiliated (by virtue of being majority owned
subsidiaries of the same parent or because one investment adviser
is a majority owned subsidiary of the other).

4.        
The term “securities” as used herein does not
include (i) securities of issuers that are affiliated with the
Buyer or are part of the Buyer's Family of Investment Companies,
(ii) bank deposit notes and certificates of deposit, (iii) loan
participations, (iv) repurchase agreements, (v) securities owned
but subject to a repurchase agreement and (vi) currency, interest
rate and commodity swaps.

5.        
The Buyer is familiar with Rule 144A and understands that each of
the parties to which this certification is made are relying and
will continue to rely on the statements made herein because one or
more sales to the Buyer will be in reliance on Rule 144A. In
addition, the Buyer will only purchase for the Buyer's own
account.

6.        
The undersigned will notify each of the parties to which this
certification is made of any changes in the information and
conclusions herein. Until such notice, the Buyer's purchase of Rule
144A Securities will constitute a reaffirmation of this
certification by the undersigned as of the date of such
purchase.

 

 

	

 

	
 

	

___________________________________

	

 

	
 

	

Print Name of
Buyer

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
______________________________

	
 

	
 

	
 

	
 

	
Name:

	
 

	
 

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
 

	
 

	
Date:

	
____________________________

	
 

	
 

	
 

	
 

	
 

							

 

 

	
IF
AN ADVISER:

	
 

	

___________________________________

	

 

	
 

	

Print Name of
Buyer

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
______________________________

	
 

	
 

	
 

	
 

	
Name:

	
 

	
 

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
 

	
 

	
Date:

	
____________________________

	
 

	
 

	
 

	
 

	
 

							

 

 

 

 

(SEAL)

 

	
Exhibit M

 

	
[Date]

 

[Company]

Re:       Pooling
and Servicing Agreement dated as of January 1, 2007 by and among
WaMu Asset Acceptance Corp., as Depositor, Washington Mutual Bank,
as Servicer, LaSalle Bank National Association, as Trustee, and
Christiana Bank & Trust Company, as Delaware Trustee, relating
to WaMu Asset Acceptance Corp. WaMu Mortgage Pass-Through
Certificates, Series 2007-HY1

Ladies
and Gentlemen:

In
accordance with Section 2.07 of the above-captioned Pooling and
Servicing Agreement, the undersigned, as [Trustee] [Initial
Custodian], hereby certifies that, except as noted on the
attachment hereto, as to each Mortgage Loan listed in the Mortgage
Loan Schedule (other than any Mortgage Loan paid in full or listed
on the attachment hereto) it has reviewed the documents delivered
to it pursuant to Section 2.05 of the Pooling and Servicing
Agreement and has determined that (i) all documents required (in
the case of instruments described in clauses (X)(ii), (X)(iv) and
(Y)(ix) of the definition of “Mortgage File,” known by
it to be required) pursuant to the definition of “Mortgage
File” and Section 2.05 of the Pooling and Servicing Agreement
to have been executed and received as of the date hereof are in its
possession and (ii) all such documents have been executed and
relate to the Mortgage Loans identified in the Mortgage Loan
Schedule. The [Trustee] [Initial Custodian] has made no independent
examination of such documents beyond the review specifically
required in the above referenced Pooling and Servicing Agreement
and has relied upon the purported genuineness and due execution of
any such documents and upon the purported genuineness of any
signature thereon. The [Trustee] [Initial Custodian] makes no
representations as to: (i) the validity, legality, enforceability
or genuineness of any of the documents contained in each Mortgage
File or any of the Mortgage Loans identified on the Mortgage Loan
Schedule, or (ii) the collectability, insurability, effectiveness
or suitability of any such Mortgage Loan.

Capitalized words and phrases used herein shall
have the respective meanings assigned to them in the
above-captioned Pooling and Servicing Agreement.

 

 

	
 

	
 

	
___________________________________

	

 

	
 

	

as [Trustee] [Initial
Custodian]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
______________________________

	
 

	
 

	
 

	
 

	
Name:

	
 

	
 

	
 

	
 

	
Title:

 

	
Exhibit N

 

BENEFIT PLAN AFFIDAVIT

 

LaSalle Bank National Association, as Trustee
(the “Trustee”)

135
South LaSalle Street, Suite 1511

Chicago, Illinois, 60603

Attention: Global Securitization Trust Services
(WaMu 2007-HY1)

 

WaMu
Asset Acceptance Corp. (“Washington Mutual”)

1301
Second Avenue, WMC 3501A

Seattle, WA 98101

 

RE:       CLASS
[L-B-4][L-B-5][L-B-6] [3-B-4][3-B-5][3-B-6] [M-B-4][M-B-5][M-B-6]
CERTIFICATES (THE “PURCHASED CERTIFICATES”) ISSUED BY
WaMu MORTGAGE PASS-THROUGH CERTIFICATES SERIES 2007-HY1 TRUST (THE
“TRUST”)

Under
penalties of perjury, I, _____________________, declare that, to
the best of my knowledge and belief, the following representations
are true, correct and complete; and

1.        
That I am the _______________ of __________________ (the
“Purchaser”), whose taxpayer identification number
is  ___________, and on behalf of which I have the authority
to make this affidavit.

2.        
That the Purchaser is acquiring a Purchased Certificate
representing an interest in the assets of the Trust.

3.        
That the Purchaser satisfies the condition in the paragraph marked
below [mark one paragraph only]:

	

___

	

The Purchaser is not an
employee benefit plan or other plan subject to the prohibited
transaction provisions of the Employee Retirement Income Security
Act of 1974, as amended, or Section 4975 of the Internal Revenue
Code of 1986, as amended (a “Plan”), or any other
person (including an investment manager, a named fiduciary or a
trustee of any Plan) acting, directly or indirectly, on behalf of,
or purchasing any of the Purchased Certificates with “plan
assets” of, any Plan within the meaning of the Department of
Labor (“DOL”) regulation at 29 C.F.R. Section
2510.3-101.

	

___

	

The Purchaser is an insurance
company, the source of funds to be used by it to acquire or hold
the Purchased Certificate is an “insurance company general
account” (within the meaning of DOL Prohibited Transaction
Class Exemption (“PTCE”) 95-60), and the conditions in
Sections I and III of PTCE 95-60 have been satisfied.

	

___

	

The Purchaser has delivered
to Washington Mutual and the Trustee a Benefit Plan Opinion (as
defined in Section 1.01 of the Pooling and Servicing Agreement,
dated as of January 1, 2007, by and among Washington Mutual, the
Servicer, the Trustee and the Delaware Trustee thereunder, and
relating to the Trust).

 

IN
WITNESS WHEREOF, the Purchaser has caused this
instrument to be duly executed on its behalf, by its duly
authorized officer this _____ day of __________________, 20__.

 

	
 

	
 

	
[Purchaser]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
_________________________________

	
 

	
 

	
 

	
 

	
Its:

 

 

Personally appeared before me
______________________, known or proved to me to be the same person
who executed the foregoing instrument and to be a ________________
of the Purchaser, and acknowledged to me that (s)he executed the
same as his/her free act and deed and as the free act and deed of
the Purchaser.

SUBSCRIBED and SWORN to

 before me this day of ____________,
20__.

 

	

 

	
 

	
____________________________________

	
 

	
 

	

Notary Public

 

	
Exhibit O

 

BENEFIT PLAN AFFIDAVIT

 

LaSalle Bank National Association, as Trustee
(the “Trustee”)

135
South LaSalle Street, Suite 1511

Chicago, Illinois, 60603

Attention: Global Securitization Trust Services
(WaMu 2007-HY1)

 

WaMu
Asset Acceptance Corp. (“Washington Mutual”)

1301
Second Avenue, WMC 3501A

Seattle, WA 98101

 

RE:       CLASS
[L-B-1][L-B-2][L-B-3] [3-B-1][3-B-2][3-B-3] [M-B-1][M-B-2][M-B-3]
CERTIFICATES (THE “PURCHASED CERTIFICATES”) ISSUED BY
WaMu MORTGAGE PASS-THROUGH CERTIFICATES SERIES 2007-HY1 TRUST (THE
“TRUST”)

 

Under
penalties of perjury, I, _____________________, declare that, to
the best of my knowledge and belief, the following representations
are true, correct and complete; and

1.        
That I am the _______________ of __________________ (the
“Purchaser”), whose taxpayer identification number
is  ___________, and on behalf of which I have the authority
to make this affidavit.

2.        
That the Purchaser is acquiring a Purchased Certificate
representing an interest in the assets of the Trust.

3.        
That the Purchaser satisfies the condition in the paragraph marked
below [mark one paragraph only]:

	

___

	

The Purchaser is not an
employee benefit or other plan subject to the prohibited
transaction provisions of the Employee Retirement Income Security
Act of 1974, as amended (“ERISA”), or Section 4975 of
the Internal Revenue Code of 1986, as amended (a
“Plan”), or any other person (including an investment
manager, a named fiduciary or a trustee of any such Plan) acting,
directly or indirectly, on behalf of or purchasing the Purchased
Certificate with “plan assets” of, any Plan within the
meaning of the Department of Labor (“DOL”) regulation
at 29 C.F.R. Section 2510.3-101.

	

___

	

The Purchaser is an insurance
company, the source of funds to be used by it to acquire or hold
the Purchased Certificate is an “insurance company general
account” (within the meaning of DOL Prohibited Transaction
Class Exemption (“PTCE”) 95-60), and the conditions in
Sections I and III of PTCE 95-60 have been satisfied.

	

___

	

The Purchased Certificate was
rated “BBB-” or better (or its equivalent) by at least
one of the Rating Agencies (as defined in Section 1.01 of the
Pooling and Servicing Agreement (the “Pooling and Servicing
Agreement”), dated as of January 1, 2007, by and among
Washington Mutual, the Servicer, the Trustee and the Delaware
Trustee thereunder, and relating to the Trust) at the time of
Purchaser’s acquisition of the Purchased Certificate (or
interest therein).

	

___

	

The Purchaser has delivered
to Washington Mutual and the Trustee a Benefit Plan Opinion (as
defined in Section 1.01 of the Pooling and Servicing
Agreement).

 

 

IN
WITNESS WHEREOF, the Purchaser has caused this
instrument to be duly executed on its behalf, by its duly
authorized officer this _____ day of __________________, 20__.

 

	
 

	
 

	
[Purchaser]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
_________________________________

	
 

	
 

	
 

	
 

	
Its:

 

 

Personally appeared before me
______________________, known or proved to me to be the same person
who executed the foregoing instrument and to be a ________________
of the Purchaser, and acknowledged to me that (s)he executed the
same as his/her free act and deed and as the free act and deed of
the Purchaser.

SUBSCRIBED and SWORN to before me this day of
____________, 20__.

 

 

	
 

	
 

	
___________________________________

	

 

	
 

	
Notary Public

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