Document:

EXHIBIT 10.2

                        Letter of Understanding and Terms

11-01-2000

Dear Mr. Kandis,  The following deal points represent the terms of the agreement
between EasyWeb, Inc., and Euthenics International,  Inc. As a matter of record,
I will have an attorney  draw up the actual  contract in January.  We understand
the  financial  situation at Euthenics and our attorney is swamped with year-end
business himself. We will do our best to keep the contract fairly simple. In the
mean  time,  Terry  Romero  will  spend  whatever  time  necessary  to get  your
information  Technology  (IT) in place for the  infomercial  roll out in January
2001.

     1.   EasyWeb, Inc., with the cooperation and assistance of Euthenics staff,
          will design,  develop, and pay for a web site that allows for the sale
          of  Vitalatrim  products  on the  Internet.  Initially,  the  commerce
          ability  of the site will be  structured  for small  volume of several
          hundred  sales per month  and a few  dozen  sales per hour.  Euthenics
          agrees that if more than several  hundred sales per month or more than
          a few dozen sales per hour begin to take place, Euthenics will pay for
          any hard costs associated with upgrading the commerce  capabilities to
          handle large volume.  EasyWeb will design and implement those upgrades
          and be the  exclusive  provider of website  services for all Euthenics
          products.
     2.   EasyWeb  will  assist   Euthenics   in  the   internal   training  and
          implementation  of its internal "Mail Order Management" or MOM system.
          Easyweb  will train  Euthenics  employees on the MOM system by hiring,
          and paying for, a mutually acceptable consultant who is an expert with
          regard to MOM. EasyWeb will research the current MOM system that is in
          place  at  Euthenics  International,  and  pay for  any  upgrades  and
          additional  MOM software  enhancements  that may be needed for initial
          capability coverage of Euthenics infomercial campaign.
     3.   EasyWeb  will  make  its  best  efforts,   with  the  cooperation  and
          assistance  of  Euthenics  staff,  to design,  and  develop an overall
          management  integration  system,  using MOM, that will allow Euthenics
          International  to  download  customer  data  from  the  various  "call
          centers" that are taking  orders for  Vitalatrim  and other  products.
          EasyWeb  will  create a system  that  allows  that  data to  integrate
          directly  into  the MOM  database  management  feature  of MOM.  It is
          understood  that  Euthenics will be  financially  responsible  for any
          hardware  upgrades needed to handle volume,  and that EasyWeb will not
          be responsible  for  integration of sales volume beyond the capability
          of MOM.
     4.   EasyWeb,  Inc.  will  avail  itself  to the  management  of  Euthenics
          International  to assist in all  matters  with  regard to the  initial
          internal IT  (Information  Technology)  systems needed for the initial
          phases of the  infomercial  roll-out.  EasyWeb  will  make  reasonable
          efforts  to create a working  system  with any of  Euthenics  business
          partners, and vendors. It is the responsibility of Euthenics to employ
          vendors  that will make  reasonable  efforts  to assist  EasyWeb,  and
          Euthenics,  with  regard to the  transfer  of  information.  It is the
          responsibility  of Euthenics to make every effort to assist EasyWeb in
          all  efforts to  communicate  information  from  business  partners of
          Euthenics, to any Euthenics database. Easyweb will

<PAGE>

          not be responsible for costs  associated  with any  integration  costs
          needed at the various vendors, or business partners locations.
     5.   Any   additional   services   required  by   Euthenics,   specifically
          spreadsheets  as  requested,  are to be paid for at an hourly  rate of
          $125.00  per hour.  EasyWeb  reserves  the right to employ any outside
          consultants  it deems  necessary,  at any time during the term of this
          agreement,  and may negotiate any terms it wishes between EasyWeb, and
          outside consultants.

In return for these  services,  EasyWeb will receive an ongoing  royalty of $.50
cents per  bottle  not to  include  any free  offers or  premiums  sold over the
Internet by Euthenics,  of any Euthenics product, for a period of 5 years. There
after the contract will continue on a year-to-year basis. If either party wishes
to discontinue this agreement following the initial 5 year term, it may do so by
providing its wish to do so, in writing, to be delivered via courier, registered
mail,  or overnight  delivery,  at least 30 days prior to the new one year terms
annual  start  date.  The annual  start date shall be December 1, of the year in
question, thereby making the first date of automatic renewal December 1, 2005.

These terms represent the general  agreement and shall be incorporated  into the
final contract between the two Companies to be delivered in the first quarter of
2001,

     Signed

     /s/ David C. Olson                                         Dated 1-17-01
      ---------------------------------------                         -------
     David C. Olson, President, EasyWeb, Inc.

     /s/ Spiro Kandice                                          Dated 1-17-01
     --------------------------------------------------------         -------
       Spiro Kandice, President, Euthenics International, Inc.EXECUTION COPY

============================================================================

                            GMAC MORTGAGE CORPORATION
                                  as Servicer,

                     GMACM HOME EQUITY LOAN TRUST 2001-HE3,
                                    as Issuer

                                       and

                         BANK ONE, NATIONAL ASSOCIATION
                              as Indenture Trustee

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

                               SERVICING AGREEMENT

                          Dated as of October 24, 2001
                            -------------------------

============================================================================

<PAGE>

        This   Servicing   Agreement,   dated  as  of  October   24,  2001  (the
"Agreement"),  is among GMAC Mortgage Corporation, as servicer (the "Servicer"),
the GMACM Home Equity Loan Trust 2001-HE3,  as issuer (the  "Issuer"),  and Bank
One, National Association, as indenture trustee (the "Indenture Trustee").

                                   WITNESSETH:

        WHEREAS,  pursuant to the terms of the  Purchase  Agreement  (as defined
herein), GMAC Mortgage Corporation, as seller (in such capacity, "GMACM") and as
servicer and Walnut Grove Mortgage Loan Trust 2001-A,  as seller  (together with
GMACM, the "Sellers"),  will sell to Residential Asset Mortgage  Products,  Inc.
("RAMP"), as purchaser (in such capacity, the "Purchaser"), the Initial Mortgage
Loans on the Closing Date, and may sell Subsequent Mortgage Loans on one or more
Subsequent  Transfer Dates,  together with the Related  Documents on the Closing
Date and any Subsequent  Transfer  Date, and thereafter all Additional  Balances
created on or after the Cut-Off Date and any such Subsequent Transfer Date;

        WHEREAS,  RAMP, as depositor (in such capacity,  the "Depositor"),  will
sell the Initial  Mortgage Loans and assign all of its rights under the Purchase
Agreement  to the Issuer,  together  with the Related  Documents  on the Closing
Date,  and thereafter all Additional  Balances  relating  thereto  created on or
after the Cut-Off Date;

     WHEREAS,  pursuant  to the terms of the Trust  Agreement,  the Issuer  will
issue the Certificates;

     WHEREAS,  pursuat to the terms of the Indenture,  the Issuer will issue the
Notes; and

        WHEREAS,  pursuant to the terms of this  Agreement,  the  Servicer  will
service the Mortgage Loans directly or through one or more Subservicers.

        NOW,  THEREFORE,   in  consideration  of  the  mutual  covenants  herein
contained, the parties hereto agree as follows:

<PAGE>

                                   ARTICLE I

                                   Definitions

Section  1.01  Definitions.  For all  purposes  of  this  Agreement,  except  as
otherwise  expressly  provided herein or unless the context otherwise  requires,
capitalized  terms not otherwise defined herein shall have the meanings assigned
to such terms in the Definitions  contained in Appendix A to the indenture dated
as of October 24, 2001 (the  "Indenture"),  between the Issuer and the Indenture
Trustee,  which is incorporated by reference herein. All other capitalized terms
used herein shall have the meanings specified herein.

Section 1.02   Other Definitional Provisions.

(a) All terms  defined in this  Agreement  shall have the defined  meanings when
used in any  certificate  or other  document made or delivered  pursuant  hereto
unless otherwise defined therein.

(b) As used in this  Agreement and in any  certificate or other document made or
delivered  pursuant  hereto or  thereto,  accounting  terms not  defined in this
Agreement or in any such  certificate or other  document,  and accounting  terms
partly defined in this Agreement or in any such  certificate or other  document,
to the extent not  defined,  shall have the  respective  meanings  given to them
under  generally  accepted  accounting  principles.   To  the  extent  that  the
definitions of accounting  terms in this Agreement or in any such certificate or
other document are inconsistent  with the meanings of such terms under generally
accepted accounting  principles,  the definitions contained in this Agreement or
in any such certificate or other document shall control.

(c) The words "hereof,"  "herein,"  "hereunder" and words of similar import when
used in this  Agreement  shall refer to this Agreement as a whole and not to any
particular provision of this Agreement; Section and Exhibit references contained
in  this  Agreement  are  references  to  Sections  and  Exhibits  in or to this
Agreement unless otherwise specified; the term "including" shall mean "including
without limitation";  "or" shall include "and/or"; and the term "proceeds" shall
have the meaning ascribed thereto in the UCC.

(d) The  definitions  contained in this Agreement are applicable to the singular
as well as the plural  forms of such terms and to the  masculine  as well as the
feminine and neuter genders of such terms.

(e) Any agreement, instrument or statute defined or referred to herein or in any
instrument or certificate delivered in connection herewith means such agreement,
instrument or statute as from time to time amended, modified or supplemented and
includes  (in  the  case  of  agreements  or  instruments)   references  to  all
attachments thereto and instruments incorporated therein; references to a Person
are also to its permitted successors and assigns.

Section 1.03 Interest Calculations.  All calculations of interest hereunder that
are made in respect of the Principal Balance of a Mortgage Loan shall be made on
a daily basis using a 365-day year.  All  calculations  of interest on the Notes
shall be made on the basis of the actual  number of days in an  Interest  Period
and a year assumed to consist of 360-days.  The calculation of the Servicing Fee
shall be made on the basis of a 360-day year consisting of twelve 30-day months.
All dollar amounts  calculated  hereunder  shall be rounded to the nearest penny
with one-half of one penny being rounded up.

                                       2
<PAGE>

                                   ARTICLE II

                         Representations and Warranties

Section 2.01 Representations and Warranties Regarding the Servicer. The Servicer
represents  and  warrants  to the  Issuer and for the  benefit of the  Indenture
Trustee, as pledgee of the Mortgage Loans, as of the Closing Date:

(a) the Servicer is a corporation  duly organized,  validly existing and in good
standing  under  the  laws  of the  Commonwealth  of  Pennsylvania  and  has the
corporate  power to own its assets and to transact  the  business in which it is
currently  engaged.  The Servicer is duly  qualified to do business as a foreign
corporation and is in good standing in each  jurisdiction in which the character
of the business  transacted by it or  properties  owned or leased by it requires
such  qualification and in which the failure to so qualify would have a material
adverse  effect  (not in the  ordinary  course  of  business)  on the  business,
properties, assets, or condition (financial or other) of the Servicer;

(b) the  Servicer  has the power and  authority  to make,  execute,  deliver and
perform  this  Agreement  and all of the  transactions  contemplated  under this
Agreement,  and has taken  all  necessary  corporate  action  to  authorize  the
execution,  delivery  and  performance  of this  Agreement.  When  executed  and
delivered, this Servicing Agreement will constitute the legal, valid and binding
obligation of the Servicer  enforceable in accordance with its terms,  except as
enforcement  of such terms may be limited by  bankruptcy,  insolvency or similar
laws  affecting  the  enforcement  of  creditors'  rights  generally  and by the
availability of equitable remedies;

(c) the  Servicer is not  required to obtain the consent of any other  Person or
any  consent,  license,  approval or  authorization  from,  or  registration  or
declaration  with, any  governmental  authority,  bureau or agency in connection
with the execution,  delivery,  performance,  validity or enforceability of this
Agreement,  except for such  consent,  license,  approval or  authorization,  or
registration or  declaration,  as shall have been obtained or filed, as the case
may be;

(d) the execution  and delivery of this  Agreement  and the  performance  of the
transactions  contemplated  hereby by the Servicer will not violate any material
provision of any existing law or  regulation or any order or decree of any court
applicable to the Servicer or any provision of the Articles of  Incorporation or
Bylaws  of the  Servicer,  or  constitute  a  material  breach  of any  material
mortgage,  indenture,  contract or other  agreement  to which the  Servicer is a
party or by which the Servicer may be bound;

(e) no litigation or administrative  proceeding of or before any court, tribunal
or governmental body is currently  pending,  or to the knowledge of the Servicer
threatened,  against the  Servicer or any of its  properties  or with respect to
this  Agreement  or the  Securities  which in the opinion of the  Servicer has a
reasonable  likelihood  of  resulting  in  a  material  adverse  effect  on  the
transactions contemplated by this Agreement;

                                       3
<PAGE>

(f) the  Servicer is a member of MERS in good  standing,  and will comply in all
material  respects with the rules and procedures of MERS in connection  with the
servicing of the Mortgage Loans that are registered with MERS; and

(g) the  servicing  of the  Mortgage  Loans has at all times been  conducted  in
material compliance with all applicable federal, state and local laws, rules and
regulations and there has been no material  violation of any such laws, rules or
regulations arising out of the servicing of the Mortgage Loans.

        The  foregoing   representations   and  warranties   shall  survive  any
termination of the Servicer hereunder.

Section 2.02  Representations  and  Warranties of the Issuer.  The Issuer hereby
represents  and warrants to the  Servicer  and for the benefit of the  Indenture
Trustee, as pledgee of the Mortgage Loans, as of the Closing Date:

(a) the Issuer is a business  trust duly formed and in good  standing  under the
laws of the State of Delaware and has full power,  authority  and legal right to
execute and deliver this  Agreement  and to perform its  obligations  under this
Agreement,  and has  taken all  necessary  action to  authorize  the  execution,
delivery and performance by it of this Agreement; and

(b)  the  execution  and  delivery  by the  Issuer  of  this  Agreement  and the
performance  by the  Issuer of its  obligations  under this  Agreement  will not
violate  any  provision  of any law or  regulation  governing  the Issuer or any
order,  writ,  judgment  or  decree of any  court,  arbitrator  or  governmental
authority  or  agency  applicable  to the  Issuer  or any  of its  assets.  Such
execution,  delivery,  authentication  and  performance  will  not  require  the
authorization,  consent or  approval  of, the giving of notice to, the filing or
registration  with,  or the  taking of any other  action  with  respect  to, any
governmental  authority or agency regulating the activities of limited liability
companies.  Such execution,  delivery,  authentication  and performance will not
conflict  with,  or result in a breach or violation  of, any  mortgage,  deed of
trust, lease or other agreement or instrument to which the Issuer is bound.

Section 2.03 Enforcement of  Representations  and Warranties.  The Servicer,  on
behalf of and subject to the direction of the Indenture  Trustee,  as pledgee of
the  Mortgage  Loans,  or the  Issuer,  shall  enforce the  representations  and
warranties of the Sellers pursuant to the Purchase Agreement. Upon the discovery
by the  Sellers,  the  Depositor,  the  Servicer,  the  Indenture  Trustee,  the
Enhancer, the Issuer, or the Custodian of a breach of any of the representations
and  warranties  made by a Seller in the Purchase  Agreement,  in respect of any
Mortgage  Loan which  materially  and  adversely  affects the  interests  of the
Securityholders  or the Enhancer,  the party  discovering such breach shall give
prompt  written  notice to the other parties (the  Custodian  being so obligated
under the Custodial  Agreement).  The Servicer shall promptly notify such Seller
of  such  breach  and  request  that,  pursuant  to the  terms  of the  Purchase
Agreement,  the Seller  either  (i) cure such  breach in all  material  respects
within 90 days from the date the  Seller  was  notified  of such  breach or (ii)
purchase  such  Mortgage Loan from the Issuer at the price and in the manner set
forth in Section  3.1(c) of the Purchase  Agreement;  provided,  that the Seller
shall,  subject to the conditions set forth in the Purchase Agreement,  have the
option to  substitute  an Eligible  Substitute  Loan or Loans for such  Mortgage
Loan.  In the event that the Seller  elects to  substitute  one or more Eligible

                                       4
<PAGE>

Substitute  Loans  pursuant to Section  3.1(c) of the  Purchase  Agreement,  the
Seller shall deliver to the Custodian or the  Servicer,  in accordance  with the
Purchase Agreement, with respect to such Eligible Substitute Loans, the original
Loan  Agreement,  the Mortgage,  and such other  documents and agreements as are
required  by the  Purchase  Agreement.  Payments  due with  respect to  Eligible
Substitute  Loans in the month of  substitution  shall not be transferred to the
Issuer and will be retained by the Servicer and remitted by the Servicer to such
Seller on the next  succeeding  Payment Date except to the extent that a payment
less than the applicable Minimum Monthly Payment has been received by the Issuer
for such month in respect of the Mortgage Loan to be removed. The Servicer shall
amend or cause to be amended the Mortgage  Loan  Schedule to reflect the removal
of such Mortgage Loan and the substitution of the Eligible  Substitute Loans and
the Servicer  shall promptly  deliver the amended  Mortgage Loan Schedule to the
Owner Trustee and Indenture Trustee.

        It is understood  and agreed that the  obligation of the Sellers to cure
such breach or purchase or substitute  for such Mortgage Loan as to which such a
breach  has  occurred  and  is  continuing  shall  constitute  the  sole  remedy
respecting  such breach  available to the Issuer and the Indenture  Trustee,  as
pledgee of the Mortgage  Loans,  against either Seller.  In connection  with the
purchase of or  substitution  for any such  Mortgage  Loan by such  Seller,  the
Issuer  shall  assign to such  Seller all of its right,  title and  interest  in
respect of the Purchase Agreement applicable to such Mortgage Loan. Upon receipt
of the Repurchase Price, or upon completion of such  substitution,  the Servicer
shall notify the Custodian,  and the Custodian  shall deliver the Mortgage Notes
to the  Servicer,  together  with  all  relevant  endorsements  and  assignments
prepared by the Servicer that the Indenture Trustee shall execute.

                                  ARTICLE III

                 Administration and Servicing of Mortgage Loans

Section 3.01   The Servicer.

(a) The Servicer  shall service and  administer  the Mortgage  Loans in a manner
generally  consistent  with  the  terms  of the  Program  Guide  and in a manner
consistent  with the terms of this  Agreement and that shall be normal and usual
in its general mortgage  servicing  activities and consistent with the manner in
which it services  all other  Mortgage  Loans in its  servicing  portfolio  with
characteristics  similar to those of the Mortgage Loans. The Servicer shall have
full power and authority,  acting alone or through a Subservicer,  to do any and
all things in connection  with such  servicing and  administration  which it may
deem necessary or desirable,  it being  understood,  however,  that the Servicer
shall at all times remain  responsible to the Issuer and the Indenture  Trustee,
as  pledgee  of the  Mortgage  Loans,  for the  performance  of its  duties  and
obligations hereunder in accordance with the terms hereof and the Program Guide.
Without  limiting the generality of the foregoing,  the Servicer shall continue,
and is hereby authorized and empowered by the Issuer and the Indenture  Trustee,
as pledgee of the Mortgage Loans,  to execute and deliver,  on behalf of itself,
the Issuer,  the Indenture  Trustee or any of them,  any and all  instruments of
satisfaction or cancellation, or of partial or full release or discharge and all
other  comparable  instruments  with  respect  to the  Mortgage  Loans  and  the
Mortgaged  Properties.  The Issuer, the Indenture Trustee and the Custodian,  as
applicable,  shall  furnish the  Servicer  with any powers of attorney and other
documents  necessary  or  appropriate  to enable the  Servicer  to carry out its
servicing and administrative duties hereunder. In addition, the Servicer may, at
its own  discretion  and on  behalf  of the  Indenture  Trustee,  obtain  credit
information  in the form of a "credit  score" from a credit  repository.  On the

                                       5
<PAGE>

Closing  Date,  the  Indenture  Trustee  shall deliver to the Servicer a limited
power of attorney substantially in the form of Exhibit B hereto. The Servicer is
further  authorized  and empowered by the Issuer and the Indenture  Trustee,  on
behalf of the Noteholders and the Indenture  Trustee,  in its own name or in the
name of the Subservicer,  when the Servicer or the Subservicer,  as the case may
be,  believes it  appropriate in its best judgment to register any Mortgage Loan
on the  MERS(R)  System,  or cause  the  removal  from the  registration  of any
Mortgage Loan on the MERS(R)  System,  to execute and deliver,  on behalf of the
Indenture Trustee and the Noteholders or any of them, any and all instruments of
assignment and other  comparable  instruments with respect to such assignment or
re-recording  of a  Mortgage  in the name of MERS,  solely  as  nominee  for the
Indenture  Trustee and its  successors  and assigns.  Any  expenses  incurred in
connection with the actions  described in the preceding  sentence shall be borne
by the Servicer, with no right of reimbursement.

        If the Mortgage did not have a Lien senior to the related  Mortgage Loan
on the  related  Mortgaged  Property as of the related  Cut-Off  Date,  then the
Servicer,  in such capacity,  may not consent to the placing of a Lien senior to
that of the Mortgage on the related  Mortgaged  Property.  If the Mortgage had a
Lien senior to the related Mortgage Loan on the related Mortgaged Property as of
the related  Cut-Off Date, then the Servicer,  in such capacity,  may consent to
the refinancing of such prior senior Lien; provided, that (i) the resulting CLTV
of such  Mortgage  Loan is no higher  than the greater of the CLTV prior to such
refinancing or a 70% CLTV (or a 80% CLTV for those borrowers with a FICO "credit
score" of 720 or greater) and (ii) the interest rate for the loan evidencing the
refinanced  senior  Lien  is no  higher  than  the  interest  rate  on the  loan
evidencing  the  existing  senior  Lien  immediately  prior  to the date of such
refinancing  (meaning,  in the case of an adjustable  rate loan, a substantially
similar  index and a gross  margin no higher  than that of the  existing  senior
Lien);  provided,  however, that if the loan evidencing the existing senior Lien
prior  to the  date of  refinancing  is an  adjustable  rate  loan  and the loan
evidencing  the refinanced  senior Lien is a fixed rate loan,  then the interest
rate on the loan evidencing the refinanced  senior Lien may be up to 2.0% higher
than the  then-current  mortgage rate of the loan evidencing the existing senior
Lien and (iii) the loan evidencing the refinanced  senior Lien is not subject to
negative amortization.

        In connection with servicing the Mortgage  Loans,  the Servicer may take
reasonable  actions to encourage or effect the  termination  of Loan  Agreements
that have become dormant.

        The  relationship  of the Servicer (and of any successor to the Servicer
as servicer under this Agreement) to the Issuer under this Agreement is intended
by the parties to be that of an  independent  contractor and not that of a joint
venturer, partner or agent.

(b) The Servicer may enter into  Subservicing  Agreements with  Subservicers for
the servicing and administration of certain of the Mortgage Loans. References in
this  Agreement to actions taken or to be taken by the Servicer in servicing the
Mortgage  Loans include  actions taken or to be taken by a Subservicer on behalf
of the Servicer and any amount actually  received by such Subservicer in respect
of a Mortgage Loan shall be deemed to have been received by the Servicer whether
or not actually received by the Servicer.  Each  Subservicing  Agreement will be
upon such terms and conditions as are not  inconsistent  with this Agreement and
as the  Servicer  and the  Subservicer  have  agreed.  With the  approval of the
Servicer,  a Subservicer  may delegate its servicing  obligations to third-party
servicers,  but such  Subservicers  will  remain  obligated  under  the  related
Subservicing  Agreements.  The  Servicer  and the  Subservicer  may  enter  into
amendments to the related Subservicing Agreements;  provided,  however, that any
such  amendments  shall not cause the Mortgage  Loans to be serviced in a manner

                                       6
<PAGE>

that  would be  materially  inconsistent  with the  standards  set forth in this
Agreement.  The  Servicer  shall  be  entitled  to  terminate  any  Subservicing
Agreement in accordance  with the terms and  conditions  thereof and without any
limitation by virtue of this Agreement;  provided, however, that in the event of
termination of any  Subservicing  Agreement by the Servicer or the  Subservicer,
the Servicer shall either act as servicer of the related  Mortgage Loan or enter
into a Subservicing  Agreement with a successor  Subservicer which will be bound
by the  terms of the  related  Subservicing  Agreement.  The  Servicer  shall be
entitled to enter into any agreement with a Subservicer for  indemnification  of
the Servicer and nothing contained in this Agreement shall be deemed to limit or
modify such indemnification.

        In the event that the rights, duties and obligations of the Servicer are
terminated hereunder,  any successor to the Servicer in its sole discretion may,
to the extent permitted by applicable law,  terminate the existing  Subservicing
Agreement with any  Subservicer  in accordance  with the terms of the applicable
Subservicing   Agreement  or  assume  the  terminated   Servicer's   rights  and
obligations under such subservicing arrangements which termination or assumption
will not violate the terms of such arrangements.

        As part of its servicing  activities  hereunder,  the Servicer,  for the
benefit of the Indenture Trustee,  the Enhancer and the  Securityholders,  shall
use reasonable  efforts to enforce the obligations of each Subservicer under the
related  Subservicing  Agreement,  to the extent that the non-performance of any
such  obligation  would have a material  adverse effect on a Mortgage Loan. Such
enforcement,  including,  without  limitation,  the legal prosecution of claims,
termination  of  Subservicing  Agreements  and the pursuit of other  appropriate
remedies,  shall be in such form and  carried  out to such an extent and at such
time as the Servicer, in its good faith business judgment, would require were it
the owner of the related  Mortgage  Loans.  The Servicer  shall pay the costs of
such enforcement at its own expense,  and shall be reimbursed  therefor only (i)
from a general recovery  resulting from such enforcement to the extent,  if any,
that such  recovery  exceeds all amounts due in respect of the related  Mortgage
Loan or (ii) from a specific  recovery  of costs,  expenses  or  attorneys  fees
against the party against whom such enforcement is directed.

        (c) All other documents  contained in the Mortgage File and any original
documents  relating to the Mortgage  Loans not contained in the Mortgage File or
delivered to the  Custodian,  if any, or the Indenture  Trustee are and shall be
held by the  Servicer in trust as agent for the  Indenture  Trustee on behalf of
the Noteholders.

Section 3.02   Collection of Certain Mortgage Loan Payments.

(a) The Servicer shall make  reasonable  efforts to collect all payments  called
for under the terms and  provisions  of the Mortgage  Loans,  and shall,  to the
extent such  procedures  shall be consistent  with this  Agreement and generally
consistent with the Program Guide, follow such collection procedures as shall be
normal and usual in its general  mortgage  servicing  activities  and consistent
with the procedures  the Servicer  employs in servicing all other Mortgage Loans
in the servicing portfolio with characteristics similar to those of the Mortgage
Loans. Consistent with the foregoing, and without limiting the generality of the
foregoing, the Servicer may in its discretion (i) waive any late payment charge,
penalty  interest or other fees which may be collected in the ordinary course of
servicing a Mortgage  Loan and (ii)  arrange with a Mortgagor a schedule for the
payment  of  principal  and  interest  due  and  unpaid;   provided,  that  such
arrangement  is  consistent  with the  Servicer's  policies with respect to home
equity  mortgage  loans;  and  provided  further,   that   notwithstanding  such

                                       7
<PAGE>

arrangement,  such Mortgage Loans will be included in the information  regarding
delinquent Mortgage Loans set forth in the Servicing  Certificate.  The Servicer
may also extend the Due Date for payment  due on a Mortgage  Loan in  accordance
with the  Program  Guide;  provided,  however,  that the  Servicer  shall  first
determine  that any such waiver or extension will not impair the coverage of any
related insurance policy or materially  adversely affect the Lien of the related
Mortgage  or the  interests  of the  Securityholders  or the  Enhancer,  and the
Servicer  shall not grant any such waiver or extension  that would have any such
effect.  For each Mortgage Loan,  the Servicer will  accurately and fully report
the  Mortgagor's  credit  history to all three credit  repositories  in a timely
manner. Consistent with the terms of this Agreement, the Servicer may also:

     (i) waive,  modify or vary any term of any Mortgage Loan (including  reduce
the Credit Limit);

     (ii) consent to the postponement of strict compliance with any such term or
in any manner grant indulgence to any Mortgagor;

     (iii)  arrange with a Mortgagor a schedule for the payment of principal and
interest due and unpaid;

     (iv)  forgive  any  portion  of the  amounts  contractually  owed under the
Mortgage Loan;

               (v)  capitalize  past due amounts owed under the Mortgage Loan by
adding  any  amounts  in  arrearage  to the  existing  principal  balance of the
Mortgage  Loan (a  "Capitalization  Workout")  which will result in an increased
monthly  payment  amount,  provided  that:  (A) the amount added to the existing
principal  balance of the Mortgage Loan (the  "Capitalized  Amount") shall be no
greater than five times the Mortgagor's  current Monthly Payment amount; and (B)
the Servicer  shall not enter into a  Capitalization  Workout unless the CLTV of
the Mortgage Loan prior to the Capitalization  Workout equals or exceeds 80% and
the Mortgagor has qualified for the Capitalization  Workout under the Servicer's
servicing guidelines; or

               (vi) reset the  maturity  date for the Mortgage  Loan,  but in no
event  shall such  reset date  extend  beyond the end of the  Collection  Period
preceding the Final Payment Date;

               or  any  combination  of  the  foregoing,  if in  the  Servicer's
determination  such waiver,  modification,  postponement  or  indulgence  is not
materially  adverse to the  interests of the  Securityholders  or the  Enhancer;
provided, however, that the Servicer may not modify or permit any Subservicer to
modify any Mortgage Loan (including  without  limitation any  modification  that
would  change the Loan Rate,  forgive the payment of any  principal  or interest
(unless in connection  with the  liquidation  of the related  Mortgage  Loan) or
extend the final  maturity date of such Mortgage Loan) unless such Mortgage Loan
is in default or, in the judgment of the  Servicer,  such default is  reasonably
foreseeable.  The  general  terms  of  any  waiver,  modification,  forgiveness,
postponement  or  indulgence  with respect to any of the Mortgage  Loans will be
included  in the  Servicing  Certificate,  and such  Mortgage  Loans will not be
considered  "delinquent"  for the purposes of the Basic Documents so long as the
Mortgagor  complies  with the terms of such waiver,  modification,  forgiveness,
postponement or indulgence.

(b) The Servicer shall establish a Custodial Account, which shall be an Eligible
Account,  titled  "GMACM Home Equity Loan Trust Series  2001-HE3,"  in which the
Servicer  shall  deposit  or  cause to be  deposited  any  amounts  representing
payments and collections in respect of the Initial Mortgage Loans received by it
subsequent to or on the Cut-Off Date or, with respect to the Subsequent Mortgage
Loans,  the  Subsequent  Cut-Off  Date  (other  than in respect of the  payments

                                       8
<PAGE>

referred to in the  following  paragraph),  within one  Business  Day  following
receipt  thereof (or otherwise on or prior to the Closing  Date),  including the
following payments and collections received or made by it (without duplication):

(i)  all payments of principal of or interest on the Mortgage  Loans received or
     advanced  by the  Servicer,  net of any  portion  of the  interest  thereof
     retained by any Subservicer as subservicing fees;

(ii) the  aggregate  Repurchase  Price of the  Mortgage  Loans  purchased by the
     Servicer pursuant to Section 3.15;

(iii) Net Liquidation Proceeds, net of any related Foreclosure Profit;

(iv) all proceeds of any Mortgage Loans  repurchased by a Seller pursuant to the
     Purchase Agreement,  and all Substitution Adjustment Amounts required to be
     deposited in connection  with the  substitution  of an Eligible  Substitute
     Loan pursuant to the Purchase Agreement;

(v)  Insurance Proceeds, other than Net Liquidation Proceeds, resulting from any
     insurance policy maintained on a Mortgaged Property; and

(vi) amounts required to be paid by the Servicer pursuant to Section 8.08;

provided,  however,  that with respect to each Collection  Period,  the Servicer
shall be  permitted  to retain  from  payments  in  respect of  interest  on the
Mortgage  Loans,  the Servicing Fee for such  Collection  Period.  The foregoing
requirements  respecting  deposits to the Custodial  Account are  exclusive,  it
being  understood that,  without  limiting the generality of the foregoing,  the
Servicer  need  not  deposit  in  the  Custodial  Account  amounts  representing
Foreclosure  Profits,  fees  (including  annual fees) or late charge  penalties,
payable by  Mortgagors  (such  amounts to be  retained as  additional  servicing
compensation in accordance with Section 3.09 hereof), or amounts received by the
Servicer for the accounts of Mortgagors for  application  towards the payment of
taxes,  insurance  premiums,  assessments  and similar  items.  In the event any
amount not required to be deposited in the  Custodial  Account is so  deposited,
the Servicer may at any time withdraw  such amount from the  Custodial  Account,
any provision herein to the contrary notwithstanding.  The Servicer shall retain
all Foreclosure Profits as additional servicing compensation.

        The  Servicer,  in its sole  discretion,  may deposit into the Custodial
Account  amounts  representing  installments  of  principal  of or  interest  on
Mortgage  Loans that were  delinquent  as of the end of any  Collection  Period,
provided  that the  Servicer  reasonably  believes  that  such  amounts  will be
recoverable from Collections on the related Mortgage Loan. If the Servicer makes
any such advances of delinquent principal and/or interest, the Servicer shall be
entitled to reimburse  itself by  withdrawing  from the  Custodial  Account,  as
provided herein, any amounts so advanced. The Servicer may cause the institution
maintaining the Custodial  Account to invest any funds in the Custodial  Account
in Permitted  Investments  (including  obligations of the Servicer or any of its
Affiliates,  if such obligations  otherwise  qualify as Permitted  Investments),
which  investments  shall mature not later than the Business Day  preceding  the
next  succeeding  Payment  Date,  and  which  investments  shall  not be sold or

                                       9
<PAGE>

disposed of prior to maturity.  In addition,  no such Permitted Investment shall
be purchased at a price in excess of par. Except as provided  above,  all income
and gain  realized  from any such  investment  shall inure to the benefit of the
Servicer and shall be subject to its  withdrawal or order from time to time. The
amount of any losses  incurred  in respect of the  principal  amount of any such
investments  shall be deposited in the Custodial  Account by the Servicer out of
its own funds immediately as realized.

(c) The Servicer shall require each  Subservicer to hold all funds  constituting
collections on the Mortgage Loans,  pending  remittance thereof to the Servicer,
in one or more accounts  meeting the  requirements of an Eligible  Account,  and
shall require all such funds to be invested in Permitted Investments, unless all
such  collections are remitted on a daily basis to the Servicer for deposit into
the Custodial Account.

Section 3.03 Withdrawals from the Custodial  Account.  The Servicer shall,  from
time to time as provided herein,  make withdrawals from the Custodial Account of
amounts on deposit therein pursuant to Section 3.02 that are attributable to the
Mortgage Loans for the following purposes:

(a) on each  Determination  Date,  the Servicer  shall  determine  the aggregate
amounts to be  withdrawn  from the  Custodial  Account and  applied  pursuant to
Section  3.05(a) of the  Indenture  and,  prior to the close of  business on the
Business Day prior to the related Payment Date, shall withdraw such amounts from
the Custodial  Account and deposit such amounts into the Note Payment Account or
Funding  Account,  as  applicable,  to be  distributed  by the  Paying  Agent in
accordance with and in the order or priority set forth in Section 3.05(a) of the
Indenture for such Payment Date, in accordance with the Servicing Certificate;

(b) to pay to itself any monthly  payments  received  from the  Mortgagors,  the
amount of such payment that represents  interest accrued on the related Mortgage
Loan for any period prior to the Cut-Off Date;  prior to the commencement of the
Rapid Amortization Period, from Principal  Collections on the Mortgage Loans, to
pay to GMACM the amount of any  Additional  Balances as and when created  during
the related  Collection  Period,  and, prior to the  commencement of the Managed
Amortization  Period,  to pay to the related  Seller the  Purchase  Price of any
Subsequent Mortgage Loans on the related Subsequent Transfer Date;

(c) to the extent deposited to the Custodial Account, to reimburse itself or the
related Subservicer for previously unreimbursed expenses incurred in maintaining
individual insurance policies pursuant to Section 3.04, or Liquidation Expenses,
paid pursuant to Section 3.07 or otherwise reimbursable pursuant to the terms of
this  Agreement  (to the extent not  payable  pursuant  to Section  3.09),  such
withdrawal right being limited to amounts received on particular  Mortgage Loans
(other  than any  Repurchase  Price in  respect  thereof)  that  represent  late
recoveries  of the payments for which such  advances  were made, or from related
Net Liquidation Proceeds or the proceeds of the purchase of such Mortgage Loan;

(d) to pay to itself out of each  payment  received  on account of interest on a
Mortgage  Loan as  contemplated  by Section 3.09, an amount equal to the related
Servicing Fee (to the extent not retained  pursuant to Section 3.02), and to pay
to any  Subservicer  any  subservicing  fees  not  previously  withheld  by such
Subservicer;

                                       10
<PAGE>

(e)     reserved;

(f) to deposit into the Reserve Account in accordance  with Section  3.05(a)(ix)
of the Indenture, the amounts set forth in Section 3.20;

(g) to the  extent  deposited  in the  Custodial  Account,  to pay to  itself as
additional  servicing  compensation any (i) interest or investment income earned
on funds  deposited  in the  Custodial  Account  that it is entitled to withdraw
pursuant to  Sections  3.02(b) and 5.01,  and (ii)  Foreclosure  Profits (to the
extent permitted by law);

(h) to pay to  itself  or the  Seller,  with  respect  to any  Mortgage  Loan or
property  acquired  in respect  thereof  that has been  purchased  or  otherwise
transferred to such Seller,  the Servicer or other entity,  all amounts received
thereon and not required to be distributed to  Securityholders as of the date on
which the related Purchase Price or Repurchase Price is determined;

(i) to withdraw any other amount deposited in the Custodial Account that was not
required to be deposited therein pursuant to Section 3.02;

(j) to pay to itself, with respect to any Mortgage Loan for which it has made an
advance of delinquent  principal  and/or interest,  any previously  unreimbursed
advances  of such  amounts  theretofore  made to the extent of  receipts of late
recoveries  of such  payments  from the related  Mortgagors,  out of related Net
Liquidation Proceeds or the proceeds of the purchase of such Mortgage Loans;

(k) to reimburse itself for the amount of any investment earnings advanced prior
to  maturity  pursuant  to Section  3.17(c) or Section  5.01,  to the extent not
reimbursed from earnings received on the related investment at maturity;

(l) at its option,  for so long as it is the sole  Certificateholder,  to pay to
itself from  amounts  otherwise  required  to be  remitted  to the  Distribution
Account in accordance with Section  3.05(a)(xiv)  of the Indenture,  all amounts
payable to it as a Certificateholder on the related Payment Date, and

(m) to reimburse itself for advances of delinquent  principal and/or interest on
a Mortgage Loan or other  advances that are made pursuant to this Agreement that
are not reimbursed pursuant to clauses (c) or (j) of this Section 3.03.

        Since, in connection with withdrawals pursuant to clauses (c), (d), (g),
(h) and (j), 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, on a Mortgage Loan by Mortgage Loan basis, for the
purpose of justifying any withdrawal from the Custodial Account pursuant to such
clauses.  Notwithstanding  any other provision of this  Agreement,  the Servicer
shall be entitled to reimburse itself for any previously  unreimbursed  expenses
incurred  pursuant to Section  3.07 or  otherwise  reimbursable  pursuant to the
terms  of  this  Agreement   that  the  Servicer   determines  to  be  otherwise
nonrecoverable  (except  with  respect  to any  Mortgage  Loan as to  which  the
Repurchase  Price has been paid),  by withdrawal  from the Custodial  Account of
amounts on deposit  therein  attributable  to the Mortgage Loans on any Business
Day prior to the Payment Date succeeding the date of such determination.

                                       11
<PAGE>

Section 3.04 Maintenance of Hazard Insurance;  Property Protection Expenses.  To
the extent  permitted under the related Loan Agreement and Mortgage,  and to the
extent the  Servicer  receives  notice that a hazard  insurance  policy has been
cancelled,  the Servicer  shall cause to be  maintained  for each  Mortgage Loan
hazard  insurance  naming  the  Servicer  or related  Subservicer  as loss payee
thereunder  providing  extended coverage in an amount which is at least equal to
the lesser of (i) the maximum insurable value of the improvements  securing such
Mortgage Loan from time to time or (ii) the combined  principal balance owing on
such  Mortgage Loan and any mortgage loan senior to such Mortgage Loan from time
to time; provided,  however, that such coverage may not be less than the minimum
amount required to fully compensate for any loss or damage on a replacement cost
basis.  The Servicer shall use its best efforts to monitor that hazard insurance
is  maintained  as described  in the previous  sentence in the same manner as it
would for mortgage loans in its own portfolio.  The Servicer shall also cause to
be  maintained  on  property  acquired  upon  foreclosure,  or  deed  in lieu of
foreclosure,  of any Mortgage Loan, fire insurance with extended  coverage in an
amount which is at least equal to the amount  necessary to avoid the application
of any co-insurance  clause  contained in the related hazard  insurance  policy.
Amounts collected by the Servicer under any such policies (other than amounts to
be applied to the  restoration  or repair of the related  Mortgaged  Property or
property thus acquired or amounts  released to the Mortgagor in accordance  with
the Servicer's normal servicing  procedures) shall be deposited in the Custodial
Account  to the  extent  called  for by  Section  3.02.  In cases  in which  any
Mortgaged  Property is located at any time during the life of a Mortgage Loan in
a federally  designated  flood area, to the extent  permitted  under the related
Loan Agreement and Mortgage, and to the extent the Servicer receives notice that
the related  flood  insurance  has been  cancelled,  the hazard  insurance to be
maintained for the related  Mortgage Loan shall include flood  insurance (to the
extent  available).  All such flood  insurance  shall be in amounts equal to the
lesser of (i) the amount  required to  compensate  for any loss or damage to the
related  Mortgaged  Property  on a  replacement  cost basis and (ii) the maximum
amount  of such  insurance  available  for such  Mortgaged  Property  under  the
national flood insurance program (assuming that the area in which such Mortgaged
Property is located is  participating  in such program).  The Servicer shall use
its best  efforts to monitor  such flood  insurance as described in the previous
sentence in the same manner as it would for mortgage loans in its own portfolio.
The Servicer shall be under no obligation to require that any Mortgagor maintain
earthquake or other additional insurance and shall be under no obligation itself
to maintain any such additional  insurance on property  acquired in respect of a
Mortgage Loan,  other than pursuant to such  applicable  laws and regulations as
shall at any time be in force and as shall require such additional insurance. If
the  Servicer  shall obtain and maintain a blanket  policy  consistent  with its
general mortgage servicing  activities  insuring against hazard losses on all of
the  Mortgage  Loans,  it shall  conclusively  be deemed to have  satisfied  its
obligations  as set forth in the first  sentence of this Section  3.04, it being
understood and agreed that such policy may contain a deductible clause, in which
case the Servicer  shall, in the event that there shall not have been maintained
on the related Mortgaged  Property a policy complying with the first sentence of
this Section 3.04 and there shall have been a loss which would have been covered
by such  policy,  deposit in the  Custodial  Account  the  amount not  otherwise
payable under the blanket policy  because of such  deductible  clause.  Any such
deposit by the Servicer shall be made on the last Business Day of the Collection
Period in the month in which  payments  under any such  policy  would  have been
deposited  in the  Custodial  Account.  In  connection  with its  activities  as
servicer of the Mortgage  Loans,  the Servicer  agrees to present,  on behalf of
itself,  the Issuer and the  Indenture  Trustee,  claims  under any such blanket
policy.

                                       12
<PAGE>

Section 3.05 Modification  Agreements.  The Servicer or the related Subservicer,
as the case may be,  shall be  entitled to (a)  execute  assumption  agreements,
substitution  agreements,  and instruments of satisfaction or cancellation or of
partial or full release or discharge, or any other document contemplated by this
Agreement and other  comparable  instruments  with respect to the Mortgage Loans
and with  respect to the related  Mortgaged  Properties  (and the Issuer and the
Indenture  Trustee each shall promptly  execute any such documents on request of
the  Servicer)  and (b) approve the granting of an easement  thereon in favor of
another  Person,  any alteration or demolition of such  Mortgaged  Properties 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  Loans,  that the security for, and the timely and full  collectability
of, such  Mortgage  Loans would not be  adversely  affected  thereby.  A partial
release  pursuant to this Section  3.05 shall be permitted  only if the CLTV for
the related  Mortgage  Loan after such partial  release does not exceed the CLTV
for such Mortgage Loan as of the related  Cut-Off Date. Any fee collected by the
Servicer or the related Subservicer for processing such request will be retained
by the Servicer or such Subservicer as additional servicing compensation.

Section 3.06   Trust Estate; Related Documents.

(a) When  required  by the  provisions  of this  Agreement,  the  Issuer  or the
Indenture  Trustee shall execute  instruments to release property from the terms
of the Trust  Agreement,  Indenture or Custodial  Agreement,  as applicable,  or
convey the Issuer's or the Indenture Trustee's interest in the same, in a manner
and under  circumstances  that are not inconsistent  with the provisions of this
Agreement.  No party  relying upon an  instrument  executed by the Issuer or the
Indenture  Trustee as provided in this  Section 3.06 shall be bound to ascertain
the Issuer's or the Indenture Trustee's authority, inquire into the satisfaction
of any conditions precedent or see to the application of any moneys.

(b) If  from  time  to time  any  written  assurance,  assumption  agreement  or
substitution  agreement or other similar agreement shall be executed pursuant to
Section 3.05, the Servicer  shall check that each of such documents  purports to
be an original executed copy (or a copy of the original executed document if the
original  executed  copy has been  submitted  for recording and has not yet been
returned)  and,  if so,  shall  file such  documents,  and upon  receipt  of the
original executed copy from the applicable recording office or receipt of a copy
thereof  certified by the applicable  recording office shall file such originals
or certified copies, with the Related Documents held by the Servicer.

(c) Upon receipt of a Request for Release from the  Servicer,  substantially  in
the form of Exhibit C hereto,  to the effect  that a Mortgage  Loan has been the
subject of a final  payment or a prepayment  in full and such  Mortgage Loan has
been terminated or that  substantially  all Net  Liquidation  Proceeds that have
been  determined  by the  Servicer  in its  reasonable  judgment  to be  finally
recoverable  have been recovered,  and upon deposit to the Custodial  Account of
such final monthly payment,  prepayment in full together with accrued and unpaid
interest to the date of such payment with respect to such  Mortgage  Loan or, if
applicable,  Net Liquidation Proceeds,  the Custodian shall promptly release the
Related  Documents held by the Custodian to the Servicer.  The Indenture Trustee
shall execute such Related Documents,  along with such documents as the Servicer
or the related  Mortgagor may request to evidence  satisfaction and discharge of
such Mortgage  Loan,  upon request of the Servicer.  If from time to time and as

                                       13
<PAGE>

appropriate  for the servicing or foreclosure of any Mortgage Loan, the Servicer
requests the  Custodian to release the Related  Documents  held by the Custodian
and delivers to the Custodian a trust  receipt  reasonably  satisfactory  to the
Custodian  and signed by a Responsible  Officer of the  Servicer,  the Custodian
shall  release such Related  Documents to the Servicer.  If such Mortgage  Loans
shall be liquidated and the Custodian  receives a certificate  from the Servicer
as provided  above,  then,  upon request of the Servicer,  the  Custodian  shall
release the trust receipt to the Servicer.

Section 3.07  Realization  Upon Defaulted  Mortgage  Loans.  With respect to any
Mortgage  Loan that comes into and  continues  in default,  the  Servicer  shall
decide whether to (i) foreclose upon the related Mortgaged Property,  (ii) write
off the unpaid Principal  Balance thereof as bad debt, (iii) take a deed in lieu
of  foreclosure,  (iv) accept a short sale (a payoff of the Mortgage Loan for an
amount less than the total amount  contractually  owed in order to  facilitate a
sale of the Mortgaged Property by the Mortgagor), (v) permit a short refinancing
(a  payoff  of the  Mortgage  Loan for an  amount  less  than the  total  amount
contractually  owed in  order  to  facilitate  refinancing  transactions  by the
Mortgagor not involving a sale of the  Mortgaged  Property),  (vi) arrange for a
repayment plan,  (vii) agree to a modification in accordance with this Agreement
or (viii)  take an  unsecured  note in each case  subject  to the  rights of any
related first Lien holder;  provided,  that in connection with the foregoing, if
the Servicer has actual  knowledge  that any  Mortgaged  Property is affected by
hazardous  or toxic  wastes  or  substances  and that  the  acquisition  of such
Mortgaged Property would not be commercially reasonable, then the Servicer shall
not cause the Issuer or the Indenture Trustee to acquire title to such Mortgaged
Property  in a  foreclosure  or  similar  proceeding.  In  connection  with such
decision,  the Servicer shall follow such practices  (including,  in the case of
any default on a related senior mortgage loan, the advancing of funds to correct
such default if deemed to be  appropriate  by the Servicer) and procedures as it
shall  deem  necessary  or  advisable  and as shall be  normal  and usual in its
general mortgage  servicing  activities and as shall be required or permitted by
the  Program  Guide;  provided,  that the  Servicer  shall  not be liable in any
respect  hereunder  if the  Servicer  is  acting  in  connection  with  any such
foreclosure or attempted  foreclosure which is not completed or other conversion
in a manner  that is  consistent  with the  provisions  of this  Agreement.  The
foregoing is subject to the proviso  that the Servicer  shall not be required to
expend its own funds in connection with any foreclosure or attempted foreclosure
which is not  completed  or towards the  correction  of any default on a related
senior  mortgage loan or restoration of any property  unless it shall  determine
that such expenditure will increase the related Net Liquidation Proceeds. In the
event of a determination  by the Servicer that any such  expenditure  previously
made pursuant to this Section 3.07 will not be reimbursable from Net Liquidation
Proceeds,  the  Servicer  shall be  entitled  to  reimbursement  of its funds so
expended pursuant to Section 3.03.

        Notwithstanding any provision of this Agreement,  a Mortgage Loan may be
deemed to be finally  liquidated if  substantially  all amounts  expected by the
Servicer to be received in connection  therewith have been  received;  provided,
however, that the Servicer may continue to pursue recovery of such Mortgage Loan
and any subsequent  collections  with respect to any such Mortgage Loan shall be
deposited  into the  Custodial  Account.  If the  Servicer  continues  to pursue
recovery,  the Servicer  shall continue to be entitled to the Servicing Fee with
respect to that Mortgage Loan and to be reimbursed for any advances and expenses
as though such  Mortgage  Loan  continued  to be an  Outstanding  Mortgage  Loan
hereunder.  For  purposes  of  determining  the  amount  of any Net  Liquidation
Proceeds,  Insurance Proceeds or other unscheduled collections, the Servicer may
take into account minimal amounts of additional receipts expected to be received
or any  estimated  additional  liquidation  expenses  expected to be incurred in
connection with such Mortgage Loan.

                                       14
<PAGE>

        In the  event  that  title to any  Mortgaged  Property  is  acquired  in
foreclosure or by deed in lieu of  foreclosure,  the deed or certificate of sale
shall be issued to the Indenture Trustee, which shall hold the same on behalf of
the Issuer in accordance with Section 3.13 of the Indenture. Notwithstanding any
such  acquisition of title and  cancellation of the related  Mortgage Loan, such
Mortgaged  Property  shall (except as otherwise  expressly  provided  herein) be
considered  to be an  outstanding  Mortgage  Loan held as an asset of the Issuer
until such time as such property  shall be sold.  Consistent  with the foregoing
for purposes of all calculations hereunder, so long as the related Mortgage Loan
shall be  considered  to be an  outstanding  Mortgage  Loan, it shall be assumed
that,  notwithstanding  that the  indebtedness  evidenced  by the  related  Loan
Agreement shall have been discharged,  such Loan Agreement in effect at the time
of any such acquisition of title before any adjustment  thereto by reason of any
bankruptcy or similar  proceeding or any  moratorium or similar  waiver or grace
period will remain in effect.

        Any proceeds from foreclosure  proceedings or the purchase or repurchase
of any Mortgage  Loan  pursuant to the terms of this  Agreement,  as well as any
recovery  resulting from a collection of Net  Liquidation  Proceeds or Insurance
Proceeds,  shall be  applied  in the  following  order of  priority:  first,  to
reimburse  the  Servicer  or the related  Subservicer  in  accordance  with this
Section  3.07;  second,  to pay the  Servicer  or the  related  Subservicer  all
Servicing Fees payable  therefrom;  third, to pay accrued and unpaid interest on
such  Mortgage  Loan,  at the Net Loan Rate to the  Payment  Date on which  such
amounts are to be deposited in the Note Payment Account or Distribution Account;
and fourth,  as a recovery of principal on such  Mortgage  Loan.  Any  remaining
amount shall constitute Foreclosure Profits.

Section  3.08  Issuer and  Indenture  Trustee to  Cooperate.  On or before  each
Payment Date,  the Servicer will notify the Indenture  Trustee or the Custodian,
with a copy to the Issuer,  of the termination of or the payment in full and the
termination of any Mortgage Loan during the preceding  Collection  Period.  Upon
receipt of payment in full,  the Servicer is authorized to execute,  pursuant to
the  authorization  contained in Section 3.01,  an  instrument  of  satisfaction
regarding  the related  Mortgage,  which  instrument  of  satisfaction  shall be
recorded by the Servicer if required by  applicable  law and be delivered to the
Person  entitled  thereto and to cause the removal from the  registration on the
MERS(R) System of such  Mortgage.  It is understood and agreed that any expenses
incurred in connection with such instrument of satisfaction or transfer shall be
reimbursed from amounts  deposited in the Custodial  Account.  From time to time
and as  appropriate  for the servicing or  foreclosure of any Mortgage Loan, the
Custodian  shall,  upon request of the  Servicer and delivery to the  Custodian,
with a copy to the Issuer, of a Request for Release, in the form attached hereto
as Exhibit C, signed by a Servicing Officer, release or cause to be released the
related Loan  Agreement to the Servicer.  The Issuer or Indenture  Trustee shall
promptly execute such documents, in the forms provided by the Servicer, as shall
be necessary for the prosecution of any such  proceedings or the taking of other
servicing actions. Such trust receipt shall obligate the Servicer to return such
Loan  Agreement to the  Custodian  (as  specified in such receipt) 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  specified  above,  such trust  receipt shall be released to the
Servicer.

        In order to  facilitate  the  foreclosure  of the Mortgage  securing any
Mortgage Loan that is in default following recordation of the related Assignment
of Mortgage in accordance  with the  provisions of the Purchase  Agreement,  the
Indenture  Trustee  or the  Issuer  shall,  if so  requested  in  writing by the
Servicer, promptly execute an appropriate assignment in the form provided by the
Servicer  to assign such  Mortgage  Loan for the  purpose of  collection  to the
Servicer (any such assignment shall  unambiguously  indicate that the assignment
is for the purpose of collection only), and, upon such assignment, such assignee

                                       15
<PAGE>

for  collection  will thereupon  bring all required  actions in its own name and
otherwise  enforce the terms of such Mortgage Loan and deposit or credit the Net
Liquidation  Proceeds,  exclusive of Foreclosure Profits,  received with respect
thereto into the Custodial  Account.  In the event that all delinquent  payments
due  under  any  such  Mortgage  Loan are paid by the  Mortgagor  and any  other
defaults are cured,  then the assignee for collection  shall  promptly  reassign
such Mortgage Loan to the Indenture  Trustee and return all Related Documents to
the place where the related Mortgage File was being maintained.

        In connection  with the Issuer's  obligation to cooperate as provided in
this Section  3.08 and all other  provisions  of this  Agreement  requiring  the
Issuer to  authorize  or permit  any  actions  to be taken  with  respect to the
Mortgage Loans, the Indenture  Trustee,  as pledgee of the Mortgage Loans and as
assignee  of record of the  Mortgage  Loans on behalf of the Issuer  pursuant to
Section 3.13 of the Indenture,  expressly  agrees,  on behalf of the Issuer,  to
take all such actions on behalf of the Issuer and to promptly execute and return
all  instruments  reasonably  required by the Servicer in connection  therewith;
provided, that if the Servicer requests a signature of the Indenture Trustee, on
behalf of the Issuer,  then the Servicer shall deliver to the Indenture  Trustee
an Officer's Certificate stating that such signature is necessary or appropriate
to enable the  Servicer to carry out its  servicing  and  administrative  duties
under this Agreement.

Section 3.09 Servicing  Compensation;  Payment of Certain  Expenses by Servicer.
The Servicer  shall be entitled to receive the Servicing Fee in accordance  with
Section 3.03 as  compensation  for its services in connection with servicing the
Mortgage Loans.  Moreover,  late payment charges and other receipts not required
to be deposited in the  Custodial  Account as specified in Section 3.02 shall be
retained by the  Servicer as  additional  servicing  compensation.  The Servicer
shall be required to pay all  expenses  incurred  by it in  connection  with its
activities  hereunder  (including  payment  of all other fees and  expenses  not
expressly  stated  hereunder  to be for  the  account  of the  Securityholders),
including the fees and expenses of the Owner Trustee,  Indenture Trustee and the
Custodian, and shall not be entitled to reimbursement therefor.

Section 3.10   Annual Statement as to Compliance.

(a) The  Servicer  shall  deliver to the  Issuer,  the  Indenture  Trustee,  the
Depositor and the Underwriter,  with a copy to the Enhancer, beginning March 31,
2002,  and  on or  before  March  31  of  each  year  thereafter,  an  Officer's
Certificate  stating that (i) a review of the activities of the Servicer  during
the  preceding  calendar  year  and  of  its  performance  under  any  servicing
agreements to which it is a party, including this Agreement, has been made under
such officer's  supervision  and (ii) to the best of such  officer's  knowledge,
based on such review,  the Servicer has complied in all material  respects  with
the minimum  servicing  standards  set forth in the Uniform  Single  Attestation
Program for Mortgage  Bankers and has fulfilled all of its material  obligations
in all material  respects  throughout  such year, or, if there has been material
noncompliance  with such servicing  standards or a default in the fulfillment in
all  material  respects  of any  such  obligation  relating  to  this  Servicing
Agreement,  such statement shall include a description of such  noncompliance or
specify  each such  default,  as the case may be,  known to such officer and the
nature and status thereof.

(b) The Servicer shall deliver to the Issuer and the Indenture  Trustee,  with a
copy to the Enhancer,  promptly after having obtained knowledge thereof,  but in
no event later than five Business Days thereafter, written notice by means of an
Officer's  Certificate of any event which with the giving of notice or the lapse
of time or both, would become a Servicing Default.

                                       16
<PAGE>

Section 3.11 Annual Servicing Report. Beginning March 31, 2002, and on or before
March 31 of each year thereafter, the Servicer at its expense shall cause a firm
of nationally  recognized  independent  public  accountants (which firm may also
render other  services to the  Servicer) to furnish a report to the Issuer,  the
Indenture Trustee, the Depositor, the Underwriter,  the Enhancer and each Rating
Agency  stating its opinion  that, on the basis of an  examination  conducted by
such firm substantially in accordance with standards established by the American
Institute of Certified  Public  Accountants,  the  assertions  made  pursuant to
Section 3.10 regarding compliance with the minimum servicing standards set forth
in the Uniform  Single  Attestation  Program  for  Mortgage  Bankers  during the
preceding calendar year are fairly stated in all material  respects,  subject to
such exceptions and other qualifications that, in the opinion of such firm, such
accounting  standards  require it to report.  In rendering such statement,  such
firm may rely, as to matters  relating to the direct servicing of Mortgage Loans
by  Subservicers,  upon  comparable  statements  for  examinations  conducted by
independent  public  accountants  substantially  in  accordance  with  standards
established by the American Institute of Certified Public Accountants  (rendered
within one year of such statement) with respect to such Subservicers.

Section  3.12 Access to Certain  Documentation  and  Information  Regarding  the
Mortgage Loans.  Whenever required by statute or regulation,  the Servicer shall
provide to the  Enhancer,  any  Securityholder  upon  reasonable  request  (or a
regulator for a Securityholder) or the Indenture  Trustee,  reasonable access to
the  documentation  regarding the Mortgage Loans.  Such access shall be afforded
without  charge,  but only upon  reasonable  request and during normal  business
hours at the  offices  of the  Servicer.  Nothing  in this  Section  3.12  shall
derogate  from the  obligation  of the  Servicer to observe any  applicable  law
prohibiting  disclosure of information regarding Mortgagors,  and the failure of
the  Servicer to provide  access as provided in this Section 3.12 as a result of
such obligation shall not constitute a breach of this Section 3.12.

Section 3.13 Maintenance of Certain Servicing Insurance  Policies.  The Servicer
shall, during the term of its service as servicer,  maintain in force and effect
(i) a policy or policies  of  insurance  covering  errors and  omissions  in the
performance of its obligations as Servicer hereunder and (ii) a fidelity bond in
respect of its officers,  employees or agents.  Each such policy or policies and
fidelity  bond shall be at least equal to the coverage that would be required by
Fannie  Mae or  Freddie  Mac,  whichever  is  greater,  for  Persons  performing
servicing for mortgage loans purchased by such entity.

Section 3.14 Information Required by the Internal Revenue Service and Reports of
Foreclosures and Abandonments of Mortgaged Property.  The Servicer shall prepare
and  deliver  all  federal and state  information  reports  with  respect to the
Mortgage Loans when and as required by all  applicable  state and federal income
tax laws. In particular,  with respect to the requirement under Section 6050J of
the Code to the effect that the  Servicer or  Subservicer  shall make reports of
foreclosures and abandonments of any mortgaged  property for each year beginning
in 2001,  the  Servicer  or  Subservicer  shall file  reports  relating  to each
instance  occurring during the previous  calendar year in which the Servicer (a)
on behalf of the Issuer,  acquired an interest in any Mortgaged Property through
foreclosure or other comparable  conversion in full or partial satisfaction of a
Mortgage Loan, or (b) knew or had reason to know that any Mortgaged Property had
been  abandoned.  The reports from the Servicer or Subservicer  shall be in form
and substance  sufficient to meet the reporting  requirements imposed by Section
6050J and Section 6050H (reports relating to mortgage interest  received) of the
Code.

                                       17
<PAGE>

Section 3.15   Optional Repurchase or Transfer of Mortgage Loans.

(a) Notwithstanding any provision in Section 3.07 to the contrary, the Servicer,
at its option and in its sole discretion,  may repurchase any Mortgage Loan that
is  delinquent  in payment by a period of ninety (90) days or longer for a price
equal to the Repurchase  Price,  provided that any such  repurchase  shall occur
only during the 60-day  period  commencing on the first day of the next calendar
month.

(b) The Servicer,  at its option and in its sole discretion,  may repurchase any
Mortgage  Loan for a price  equal to the  Repurchase  Price  (i) if the  related
Mortgage did not have a Lien senior to it as of the related  Cut-Off Date,  and,
at the request of the related Mortgagor, the Servicer agrees to the placement of
a Lien on the related Mortgaged Property senior to that of such Mortgage or (ii)
at the  request of the  Mortgagor,  the  Servicer  agrees to an  increase in the
Credit  Limit  above the Credit  Limit of such  Mortgage  Loan as of the related
Cut-Off Date or (iii) at the request of the  Mortgagor,  the Servicer  agrees to
the refinancing of the Lien senior to that of the related Mortgage  resulting in
a CLTV above the previous CLTV for such Mortgage Loan.

(c) Subject to the  conditions  set forth below,  the Servicer,  upon receipt of
written  notice and  direction  from the Issuer,  shall cause the  retransfer of
Mortgage  Loans from the Trust  Estate to the Issuer as of the close of business
on a  Payment  Date  (the  "Transfer  Date").  On the  fifth  Business  Day (the
"Transfer  Notice Date") prior to the Transfer  Date  designated in such notice,
the  Servicer  shall give the  Indenture  Trustee,  the Rating  Agencies and the
Enhancer  a  notice  of the  proposed  retransfer  that  contains  a list of the
Mortgage Loans to be retransferred.  Such retransfers of Mortgage Loans shall be
permitted upon satisfaction of the following conditions:

(i)     No Rapid Amortization Event has occurred;

(ii)                  On the Transfer  Date,  the  Overcollateralization  Amount
                      (after  giving effect to the removal from the Trust Estate
                      of the Mortgage Loans proposed to be  retransferred)  will
                      equal or exceed the  Overcollateralization  Target  Amount
                      for the related Group;

(iii)                 The  retransfer of any Mortgage Loans on any Transfer Date
                      during the Managed  Amortization  Period shall not, in the
                      reasonable   belief  of  the   Servicer,   cause  a  Rapid
                      Amortization  Event to occur or an event which with notice
                      or  lapse  of  time  or  both  would  constitute  a  Rapid
                      Amortization Event;

(iv)                  On or before the Transfer  Date,  the Servicer  shall have
                      delivered to the Indenture Trustee a revised Mortgage Loan
                      Schedule  showing that the Mortgages Loans  transferred to
                      the  Certificateholders  are no longer  owned by the Trust
                      Estate;

(v)                   The Servicer shall represent and warrant that the Mortgage
                      Loans to be removed from the Trust Estate were selected at
                      random and the Servicer shall have received the consent of
                      the  Enhancer  as  to  the  selection  of  the  particular
                      Mortgage Loans to be removed; and

                                       18
<PAGE>

(vi)                  The Servicer shall have delivered to the Indenture Trustee
                      and the Enhancer an officer's certificate  certifying that
                      the items  set forth in  subparagraphs  (i)  through  (v),
                      inclusive, have been performed or are true and correct, as
                      the case may be. The  Indenture  Trustee may  conclusively
                      rely on such officer's certificate,  shall have no duty to
                      make  inquiries  with  regard  to the  matters  set  forth
                      therein and shall incur no liability in so relying.

        The  Servicer  shall not be permitted  to effect the  retransfer  of any
Mortgage Loan except under the conditions  specified  above.  Upon receiving the
requisite notice and direction from the Issuer,  the Servicer shall perform in a
timely manner those acts required of it, as specified above.  Upon  satisfaction
of the above  conditions,  on the  Transfer  Date the  Indenture  Trustee  shall
deliver,  or cause to be delivered,  to the Issuer a written itemization of each
Mortgage Loan being  transferred,  together with the Mortgage File for each such
Mortgage Loan, and the Indenture Trustee shall execute and deliver to the Issuer
or its  designee  such other  documents  prepared  by the  Servicer  as shall be
reasonably necessary to transfer such Mortgage Loans to the  Certificateholders.
Any such  transfer of the Trust  Estate's  right,  title and  interest in and to
Mortgage Loans shall be without  recourse,  representation  or warranty by or of
the Indenture Trustee or the Trust Estate to the Issuer or its designee.

Section 3.16   Reserved.

Section 3.17 Pre-Funding Account.

(a) No later than the Closing Date,  the Indenture  Trustee shall  establish and
maintain on behalf of itself one or more segregated trust accounts,  which shall
be  Eligible  Accounts,   titled  "Pre-Funding   Account,   Bank  One,  National
Association,  as  Indenture  Trustee for GMACM Home Equity Loan Trust  2001-HE3"
(the "Pre-Funding  Account").  On the Closing Date, GMACM shall deposit into the
Pre-Funding  Account an amount equal to the Original  Pre-Funded Amount from the
proceeds of the sale of the  Securities.  $32,209,201  of such  amount  shall be
allocated to Group I and  $32,350,228 of such amount shall be allocated to Group
II. On each Subsequent  Transfer Date, the Servicer shall instruct the Indenture
Trustee in writing to withdraw from the  Pre-Funding  Account an amount equal to
the aggregate Principal Balance as of the related Subsequent Cut-Off Date of the
Subsequent  Mortgage  Loans  for  each  Group  to be sold to the  Trust  on such
Subsequent  Transfer Date and allocate such  withdrawal to amounts on deposit in
the Pre-Funding Account for the related Group, and to pay such amount to or upon
the order of the related Seller upon satisfaction of the conditions set forth in
this Agreement, in the Purchase Agreement and in the related Subsequent Transfer
Agreement with respect thereto.

(b) If the  Pre-Funded  Amount  has not  been  reduced  to zero at the  close of
business on the last day of the Pre-Funding  Period,  after giving effect to any
withdrawal  therefrom  on such day,  any  remaining  Pre-Funded  Amount for each
Group, if any, shall be deposited into the Note Payment Account and applied as a
principal  distribution  on the Class or  Classes  of Notes in such Group on the
next  succeeding  Payment  Date,  except  that  the  amount  on  deposit  in the
Pre-Funding  up to a maximum  of  $50,000,  shall be  deposited  in the  Funding
Account  and  shall be  allocated  to Group I or Group II,  as  applicable,  and
withdrawn pursuant to Section 3.18(c) hereof.

(c) The Servicer may cause the institution  maintaining the Pre-Funding  Account
to invest any funds therein in Permitted  Investments having a maturity of up to
90 days or maturing  or  otherwise  available  not later than the  Business  Day
preceding the related  Payment Date on which funds are scheduled to be withdrawn

                                       19
<PAGE>

to purchase  Subsequent  Mortgage  Loans;  provided,  that any  investment in an
obligation of the institution  with which the Pre-Funding  Account is maintained
may mature on or before 10:30 a.m.,  New York time,  on such Payment  Date;  and
provided  further,  that no such  investment may be sold or disposed of prior to
maturity.  In addition,  no such  Permitted  Investment  shall be purchased at a
price in excess of par.  Notwithstanding the foregoing,  in the event investment
earnings  have not  matured on any  Payment  Date,  the amount of such  earnings
accrued as of such  Payment  Date shall be advanced by the  Servicer for deposit
into the Note Payment Account (which advance shall be reimbursed to the Servicer
from such  investment  earnings  at  maturity).  At any time when the  Indenture
Trustee is maintaining the Pre-Funding  Account,  any request by the Servicer to
invest funds on deposit therein shall be in writing,  delivered to the Indenture
Trustee at or before 10:30 a.m., New York time, if such investment is to be made
on such day.  The Servicer  shall  certify that the  requested  investment  is a
Permitted  Investment maturing at or prior to the time required hereby. Any such
investment  shall be  registered  in the name of the  Indenture  Trustee  or its
nominee,  and to the  extent  that any such  investment  is  certificated,  such
investment shall be maintained with the Indenture Trustee at its Corporate Trust
Office.  All net income or other gain received from any such investment shall be
deposited  into or credited to the Note  Payment  Account,  and may be withdrawn
therefrom in accordance  with Section 3.05 of the  Indenture.  In no event shall
the  Indenture  Trustee  be  liable  for  any  investment  losses  on  Permitted
Investments held in or credited to the Pre-Funding  Account,  provided that such
investments are made in accordance with the provisions of this Agreement and the
Indenture Trustee is not the obligor under the Permitted Investment.

(d) If on any  Payment  Date  during  the  Pre-Funding  Period,  the  amount  of
Additional  Balances  created during the related  Collection  Period exceeds the
amount of  Principal  Collections  on deposit in the  Custodial  Account and the
amount on deposit in Funding Account available to purchase Additional  Balances,
the Servicer may withdraw from amounts on deposit in the Pre-Funding Account, to
the extent  available and  following  the purchase of  Additional  Balances from
funds on deposit in the  Custodial  Account and Funding  Account,  the amount of
such  excess  and pay  such  amount  to  GMACM as  payment  for such  Additional
Balances.

Section 3.18   Funding Account.

(a) No later than the Closing Date,  the Indenture  Trustee shall  establish and
maintain on behalf of itself one or more segregated trust accounts,  which shall
be Eligible Accounts,  titled "Funding Account,  Bank One, National Association,
as Indenture  Trustee for GMACM Home Equity Loan Trust  2001-HE3"  (the "Funding
Account").  On each Payment Date during the Revolving Period, the Servicer shall
withdraw  from the  Custodial  Account and deposit into the Funding  Account the
aggregate  amount of Principal  Collections  for each Group  remaining after the
purchase of all Additional Balances and/or Subsequent Mortgage Loans on or prior
to such Payment Date and allocate such deposit to the related Group.

(b) The Servicer may cause the  institution  maintaining  the Funding Account to
invest any funds therein in Permitted  Investments having a maturity of up to 90
days or  maturing  or  otherwise  available  not  later  than the  Business  Day
preceding the related  Payment Date on which funds are scheduled to be withdrawn
to purchase  Subsequent  Mortgage  Loans;  provided,  that any  investment in an
obligation of the  institution  with which the Funding Account is maintained may
mature on or before  10:30  a.m.,  New York  time,  on such  Payment  Date;  and
provided  further,  that no such  investment may be sold or disposed of prior to
maturity.  In addition,  no such  Permitted  Investment  shall be purchased at a

                                       20
<PAGE>

price in excess of par. At any time when the  Indenture  Trustee is  maintaining
the  Funding  Account,  any request by the  Servicer to invest  funds on deposit
therein  shall be in writing,  delivered to the  Indenture  Trustee at or before
10:30 a.m.,  New York time,  if such  investment  is to be made on such day. The
Servicer shall certify that the requested  investment is a Permitted  Investment
maturing at or prior to the time required  hereby.  Any such investment shall be
registered  in the name of the  Indenture  Trustee  or its  nominee,  and to the
extent  that any such  investment  is  certificated,  such  investment  shall be
maintained  with the Indenture  Trustee at its Corporate  Trust Office.  All net
income or other gain received from any such  investment  shall be deposited into
or credited to the Note Payment Account.

(c) From time to time withdrawals  shall be made from the Funding Account by the
Servicer as follows:

(i)  on each Payment Date during the Revolving Period, any amounts on deposit in
     the Funding  Account  relating to each Group shall be withdrawn and applied
     with  respect to such  Group,  to the extent  available,  in the  following
     order:

     (A)  to GMACM, as payment for Additional  Balances  relating to such Group,
          if any, in an amount  equal to (1) the  aggregate  of all Draws during
          the  related  Collection  Period or (2) if the  Servicer  has  applied
          amounts on deposit in the  Custodial  Account  representing  Principal
          Collections for such Group received  during such Collection  Period to
          the  purchase  of  Additional  Balances,  the  excess,  if any, of the
          aggregate  of all Draws for such Group  during the related  Collection
          Period over Principal  Collections  for such Group for such Collection
          Period; and

     (B)  to each  Seller,  as payment for  Subsequent  Mortgage  Loans for such
          Group,  if any,  in an  amount  equal to (1) the  aggregate  Principal
          Balance of all such  Subsequent  Mortgage  Loans  purchased  from such
          Seller for such Group during the related  Collection  Period or (2) if
          the Servicer has applied  amounts on deposit in the Custodial  Account
          representing  Principal Collections for such Group for such Collection
          Period toward the purchase of Subsequent  Mortgage Loans,  the excess,
          if any,  of the  aggregate  Principal  Balance of all such  Subsequent
          Mortgage  Loans for such Group  purchased  from such  Seller over such
          Principal Collections for such Group; and

(ii) on the last Payment Date during the Revolving Period, any amounts remaining
     on deposit in the Funding  Account  relating to each Group,  if any,  after
     giving effect to clause (i) above, shall be deposited into the Note Payment
     Account for payment to the  Noteholders  relating to such Group pursuant to
     Section 3.05 of the Indenture.

                                       21
<PAGE>

Section 3.19   Capitalized Interest Account.

(a) No later than the Closing Date,  the Indenture  Trustee shall  establish and
maintain on behalf of itself one or more segregated trust accounts,  which shall
be Eligible Accounts,  titled "Capitalized  Interest Account, Bank One, National
Association,  as  Indenture  Trustee for GMACM Home Equity Loan Trust  2001-HE3"
(the "Capitalized Interest Account"). The Indenture Trustee shall, promptly upon
receipt,  deposit in the  Capitalized  Interest  Account and retain  therein the
Interest  Coverage Amount.  If the Indenture  Trustee shall not have received an
investment  direction  from GMACM,  the Indenture  Trustee shall invest funds on
deposit in the Capitalized Interest Account in Permitted Investments of the kind
described  in clause (v) of the  definition  of Permitted  Investments  having a
maturity date no later than the next  succeeding  Payment Date. In addition,  no
such Permitted  Investment shall be purchased at a price in excess of par. GMACM
shall be entitled to retain any investment earnings on amounts on deposit in the
Capitalized  Interest  Account and shall deposit into the  Capitalized  Interest
Account  the amount of any net loss  incurred  in respect of any such  Permitted
Investment  immediately  upon  realization  of such  loss  without  any right of
reimbursement  therefor.  GMACM shall be the owner of the  Capitalized  Interest
Account and shall  report all items of income,  deduction,  gain or loss arising
therefrom.

(b) On each Payment Date during the  Pre-Funding  Period and on the Payment Date
immediately after the end of the Pre-Funding  Period, the Indenture Trustee,  at
the written  direction of the  Servicer,  shall  withdraw  from the  Capitalized
Interest  Account and deposit into the Note  Payment  Account an amount equal to
the Capitalized Interest Requirement for such Payment Date.

(c)  In  connection  with  each  Subsequent   Transfer  Date  occurring  in  the
Pre-Funding  Period,  the Servicer,  at its option, may recalculate the Interest
Coverage  Amount  taking into account the amount  remaining  in the  Pre-Funding
Account  following  the sale of Subsequent  Mortgage  Loans to the Trust on such
date. The recomputed  Interest Coverage Amount shall be not less than the amount
necessary  to cover the  Capitalized  Interest  Requirement  for each  remaining
Payment Date in the Pre-Funding Period. With the written consent of the Enhancer
(which  consent  shall not be  unreasonably  withheld),  on any such  Subsequent
Transfer Date,  GMACM shall instruct in writing the Indenture  Trustee to pay to
it from funds in the  Capitalized  Interest  Account the excess of the amount on
deposit therein over the recomputed Interest Coverage Amount.

(d) Upon the earlier of (i)  termination  of the Trust  Agreement in  accordance
with Section 8.01  thereof and (ii) the Payment  Date  following  the end of the
Pre-Funding Period, any amount remaining on deposit in the Capitalized  Interest
Account shall be withdrawn by the Indenture Trustee and paid to GMACM.

Section 3.20   Reserve Account.

(a) On or after the Closing  Date,  the Indenture  Trustee  shall  establish and
maintain on behalf of itself one or more segregated trust accounts,  which shall
be Eligible Accounts,  titled "Reserve Account,  Bank One, National Association,
as Indenture  Trustee for GMACM Home Equity Loan Trust  2001-HE3"  (the "Reserve
Account").   On  each  Payment  Date  the  Servicer,   in  accordance  with  the
requirements  of Section  3.05(a)(ix)  of the  Indenture,  shall  determine  the
amount,  if any, to be withdrawn  from the Custodial  Account and deposited into
the  Reserve  Account.  From  time to time  withdrawals  shall be made  from the
Reserve Account by the Servicer in the amounts and for the purposes set forth in
Section 3.05(a) of the Indenture.

                                       22
<PAGE>

(b) The Servicer may cause the  institution  maintaining  the Reserve Account to
invest any funds  therein in  Permitted  Investments  having a maturity of up to
thirty (30) days and maturing or otherwise available not later than the Business
Day  preceding  the  related  Payment  Date on which funds are  scheduled  to be
withdrawn  from  the  Reserve  Account;  provided,  that  any  investment  in an
obligation of the  institution  with which the Reserve Account is maintained may
mature on or before  10:30  a.m.,  New York  time,  on such  Payment  Date;  and
provided  further,  that no such  investment may be sold or disposed of prior to
maturity.  In addition,  no such  Permitted  Investment  shall be purchased at a
price in excess of par. At any time when the  Indenture  Trustee is  maintaining
the  Reserve  Account,  any request by the  Servicer to invest  funds on deposit
therein  shall be in writing,  delivered to the  Indenture  Trustee at or before
10:30 a.m.,  New York time,  if such  investment  is to be made on such day. The
Servicer shall certify that the requested  investment is a Permitted  Investment
maturing at or prior to the time required  hereby.  Any such investment shall be
registered  in the name of the  Indenture  Trustee  or its  nominee,  and to the
extent  that any such  investment  is  certificated,  such  investment  shall be
maintained  with the Indenture  Trustee at its Corporate  Trust Office.  All net
income or other gain received from any such  investment  shall be deposited into
or credited to the Reserve Account,  and may be withdrawn  therefrom and applied
pursuant to Section 3.05(a) of the Indenture.

Section 3.21  Enforcement of Due-on-Sale  Clauses;  Assumption and  Modification
Agreements; Certain Assignments. .

(a) When any Mortgaged  Property is conveyed by the  Mortgagor,  the Servicer or
Subservicer,  to the extent it has knowledge of such  conveyance,  shall enforce
any  due-on-sale  clause  contained in any Loan  Agreement  or Mortgage,  to the
extent permitted under applicable law and governmental regulations,  but only to
the  extent  that such  enforcement  will not  adversely  affect  or  jeopardize
coverage under any Required Insurance Policy. Notwithstanding the foregoing:

     (i)  the Servicer  shall not be deemed to be in default  under this Section
          3.21(a) by reason of any transfer or assumption  which the Servicer is
          restricted by law from preventing; and

     (ii) if the  Servicer  determines  that it is  reasonably  likely  that any
          Mortgagor will bring, or if any Mortgagor does bring,  legal action to
          declare invalid or otherwise avoid enforcement of a due-on-sale clause
          contained in any Mortgage Note or Mortgage,  the Servicer shall not be
          required to enforce the due-on-sale clause or to contest such action.

(b)  Subject to the  Servicer's  duty to enforce any  due-on-sale  clause to the
extent set forth in Section 3.21(a),  in any case in which a Mortgaged  Property
is to be conveyed to a Person by a  Mortgagor,  and such Person is to enter into
an assumption or  modification  agreement or supplement to the Loan Agreement or
Mortgage  which  requires  the  signature  of the  Indenture  Trustee,  or if an
instrument of release signed by the Indenture Trustee is required  releasing the
Mortgagor  from  liability on the  Mortgage  Loan,  the Servicer is  authorized,
subject to the  requirements  of the  sentence  next  following,  to execute and
deliver, on behalf of the Indenture Trustee,  the assumption  agreement with the
Person to whom the  Mortgaged  Property is to be conveyed and such  modification
agreement or supplement to the Loan  Agreement or Mortgage or other  instruments
as are  reasonable  or necessary to carry out the terms of the Mortgage  Note or
Mortgage or otherwise to comply with any applicable  laws regarding  assumptions
or the transfer of the  Mortgaged  Property to such Person.  The Servicer  shall
execute and deliver such documents only if it reasonably determines that (i) its
execution  and delivery  thereof will not conflict  with or violate any terms of
this  Agreement or cause the unpaid balance and interest on the Mortgage Loan to
be  uncollectible  in whole or in part,  (ii) any required  consents of insurers
under any Required Insurance Policies have been obtained and (iii) subsequent to
the closing of the  transaction  involving  the  assumption or transfer (A) such
transaction will not adversely affect the coverage under any Required  Insurance
Policies,  (B) the Mortgage Loan will fully  amortize  over the  remaining  term
thereof,  (C) no material term of the Mortgage Loan (including the interest rate

                                       23
<PAGE>

on the Mortgage  Loan) will be altered nor will the term of the Mortgage Loan be
changed  and (D) if the  seller/transferor  of the  Mortgaged  Property is to be
released from  liability on the Mortgage  Loan,  such release will not (based on
the Servicer's or Subservicer's good faith  determination)  adversely affect the
collectability  of the Mortgage Loan.  Upon receipt of appropriate  instructions
from the Servicer in accordance with the foregoing,  the Indenture Trustee shall
execute  any  necessary  instruments  for such  assumption  or  substitution  of
liability  as  directed  in writing  by the  Servicer.  Upon the  closing of the
transactions  contemplated  by such  documents,  the  Servicer  shall  cause the
originals or true and correct  copies of the assumption  agreement,  the release
(if any), or the  modification or supplement to the Mortgage Note or Mortgage to
be delivered to the Indenture  Trustee or the  Custodian and deposited  with the
Mortgage File for such Mortgage  Loan. Any fee collected by the Servicer or such
related Subservicer for entering into an assumption or substitution of liability
agreement  will be retained by the Servicer or such  Subservicer  as  additional
servicing compensation.

                                   ARTICLE IV

                              Servicing Certificate

Section 4.01   Statements to Securityholders.

(a) With respect to each Payment Date, on the Business Day following the related
Determination  Date, the Servicer shall forward the Servicing  Certificate and a
computer file  containing  mutually  agreed upon loan level  information  to the
Indenture Trustee,  and the Indenture  Trustee,  pursuant to Section 3.26 of the
Indenture,   shall   make  such   Servicing   Certificate   available   to  each
Certificateholder,  each  Noteholder,  the Enhancer,  the  Depositor,  the Owner
Trustee,  the  Certificate  Paying Agent and each Rating  Agency.  The Servicing
Certificate  shall  set  forth  the  following  information  as to the Notes and
Certificates, to the extent applicable:

(i)  for each Group,  the  aggregate  amount of (a)  Interest  Collections,  (b)
     Principal  Collections  (and,  with respect to any Payment Date relating to
     the  Managed  Amortization  Period,  Net  Principal  Collections)  and  (c)
     Substitution Adjustment Amounts for such Collection Period;

(ii) the amount of such  distribution  as principal to the  Noteholders  of each
     Class of Notes;

(iii)the amount of such  distribution  as  interest to the  Noteholders  of each
     Class of Notes,  the amount thereof,  if any,  payable in respect of unpaid
     Interest  Shortfalls,  and the amount of any  Interest  Shortfalls  for the
     related Payment Date;

                                       24
<PAGE>

(iv) each Policy Draw Amount,  if any,  for such Payment Date and the  aggregate
     amount of prior draws on the Policy thereunder not yet reimbursed;

(v)     the amount of such distribution to the Certificateholders;

(vi) the aggregate  Principal  Balance of the Mortgage Loans in each Group as of
     the end of the preceding Collection Period;

(vii)for each Group,  the number and  aggregate  Principal  Balances of Mortgage
     Loans (a) as to which the Minimum  Monthly  Payment is delinquent for 30-59
     days, 60-89 days, 90-119 days, 120-149 days and 150-179 days, respectively,
     (b) the related  Mortgaged  Property of which has been  foreclosed upon and
     (c) as to which the related Mortgaged Property has become REO Property,  in
     each  case  as of the end of the  preceding  Collection  Period;  provided,
     however,  that such  information  shall not be provided  on the  statements
     relating to the first Payment Date;

(viii) for each Group,  the number and aggregate  Principal  Balance of Mortgage
     Loans repurchased pursuant to Section 3.15(a) herein during such Collection
     Period;

(ix) the Net WAC Rate for each Group for the related Collection Period;

(x)  prior to the second  Determination  Date following the  commencement of the
     Rapid  Amortization  Period,  the aggregate  amount of Additional  Balances
     created  during the previous  Collection  Period and conveyed to the Issuer
     prior to the commencement of such Rapid Amortization Period;

(xi) for each Group, the aggregate  Liquidation Loss Amounts with respect to the
     related  Collection  Period  for each  Group,  the  amount  distributed  as
     principal to  Noteholders  in respect of  Liquidation  Loss Amounts and the
     aggregate of the  Liquidation  Loss Amounts from all Collection  Periods to
     date  expressed  as dollar  amount  and as a  percentage  of the  aggregate
     Cut-Off Date Principal Balances of the Mortgage Loans;

(xii)the  aggregate  Note  Balance  of each  Class of Notes and the  Certificate
     Balance  of each  Class of the  Certificates  after  giving  effect  to the
     distribution of principal on such Payment Date;

(xiii) the balance of the  Pre-Funding  Account,  Funding  Account,  Capitalized
     Interest  Account  and  Reserve  Account  as of the  end  of the  preceding
     Collection Period;

(xiv)the  Percentage  Interest  applicable  to  each  of the  Securities,  after
     application of payments made on such Payment Date;

(xv) the  Overcollateralization  Amount  for  each  Group  as of the  end of the
     preceding Collection Period; and

                                       25
<PAGE>

(xvi) the aggregate Principal Balance of Subsequent Mortgage
                      Loans transferred to the Trust Estate for each Group.

        In the case of information  furnished pursuant to clauses (ii) and (iii)
above,  the amounts  shall be expressed as an aggregate  dollar  amount per Term
Note,  Variable  Funding  Note or  Certificate,  as  applicable,  with a $25,000
denomination and per Certificate with a denomination  equal to a 100% Percentage
Interest.

        If a  Managed  Amortization  Event,  a  Rapid  Amortization  Event  or a
Servicing  Default  shall  occur,  on the  Business  Day  following  the related
Determination Date, the Servicer shall forward to the Indenture Trustee, and the
Indenture Trustee,  pursuant to Section 3.26 of the Indenture,  shall forward or
cause to be forwarded by mail to each  Certificateholder,  each Noteholder,  the
Enhancer,  the Depositor,  the Owner Trustee,  the Certificate  Paying Agent and
each Rating  Agency,  a statement  to such effect,  including,  in the case of a
Rapid  Amortization  Event or a  Servicing  Default,  the nature  thereof.  Such
statement may be included in, or separate  from,  the regular  statement sent to
Securityholders.

        The Indenture Trustee will make the monthly statement to Securityholders
(and, at its option,  any additional files containing the same information in an
alternative format) available each month to  Securityholders,  and other parties
to this Agreement via the Indenture  Trustee's  internet website.  The Indenture
Trustee's internet website shall initially be located at  "www.abs.bankone.com".
Assistance  in using the  website  can be  obtained  by  calling  the  Indenture
Trustee's  customer  service desk at (800) 524-9472.  Parties that are unable to
use the above  distribution  options are entitled to have a paper copy mailed to
them via first class mail by calling the customer  service  desk and  indicating
such.  The  Indenture  Trustee  shall  have  the  right  to  change  the way the
statements to Securityholders are distributed in order to make such distribution
more  convenient  and/or more  accessible to the above parties and the Indenture
Trustee  shall  provide  timely and adequate  notification  to all above parties
regarding any such changes.

(b) The Servicer  shall forward to the Indenture  Trustee any other  information
reasonably  requested by the Indenture Trustee  necessary to make  distributions
pursuant to Section 3.05 of the Indenture. Prior to the close of business on the
Business Day next succeeding each Determination Date, the Servicer shall furnish
a written  statement to the Certificate  Paying Agent and the Indenture  Trustee
setting forth the aggregate  amounts required to be withdrawn from the Custodial
Account and deposited into the Note Payment Account,  Reserve  Account,  Funding
Account  and/or  Distribution  Account on the Business Day preceding the related
Payment Date pursuant to Section 3.03. The determination by the Servicer of such
amounts shall,  in the absence of obvious error,  be deemed to be  presumptively
correct for all  purposes  hereunder,  and the Owner  Trustee and the  Indenture
Trustee  shall be protected  in relying  upon the same  without any  independent
check or  verification.  In addition,  upon the Issuer's  written  request,  the
Servicer shall promptly  furnish such  information  reasonably  requested by the
Issuer  that is  reasonably  available  to the  Servicer to enable the Issuer to
perform its federal and state income tax reporting obligations.

Section 4.02   Tax Returns and 1934 Act Reports

(a) The  Servicer  will act as the Tax Matters  Partner or the agent for the Tax
Matters Partner pursuant to the Trust Agreement and the Indenture.  The Servicer
agrees to perform the  obligations  of the Servicer set forth in Section 8.02 of
the Trust  Agreement and the obligations of the Tax Matters Partner set forth in
Article XI of the  Indenture.  The Servicer will prepare and file or cause to be
prepared and filed all tax and information returns of the Trust Estate.

                                       26
<PAGE>

(b) The  Servicer  shall  prepare  all  reports  on behalf of the Trust  Estate,
including, but not limited to, all Forms 8-K, Forms 10-K and, when applicable, a
Form 15 that are required under the Securities Exchange Act of 1934, as amended.
The Servicer shall continue to file all Forms 8-K and Forms 10-K with respect to
the Trust Estate until directed by the Depositor in writing to discontinue  such
filings.

                                   ARTICLE V

                              Note Payment Account

Section 5.01 Note Payment  Account.  The Indenture  Trustee shall  establish and
maintain  an Eligible  Account  entitled  "Bank One,  National  Association,  as
Indenture  Trustee,  for the  benefit of the  Securityholders,  the  Certificate
Paying Agent and the Enhancer,  pursuant to the  Indenture,  dated as of October
24, 2001,  between GMACM Home Equity Loan Trust 2001-HE3 and Bank One,  National
Association"  (the "Note Payment  Account").  On each Payment  Date,  amounts on
deposit  in the Note  Payment  Account  shall be  distributed  by the  Indenture
Trustee in accordance with Section 3.05 of the Indenture.  The Indenture Trustee
shall invest or cause the  institution  maintaining  the Note Payment Account to
invest the funds  therein in  Permitted  Investments  selected in writing by the
Servicer and designated in the name of the Indenture Trustee,  which investments
shall  mature not later than the Business  Day next  preceding  the Payment Date
next  following the date of such  investment  (except that any investment in the
institution with which the Note Payment Account is maintained may mature on such
Payment  Date and  shall  not be sold or  disposed  of prior  to  maturity).  In
addition,  no such Permitted  Investment shall be purchased at a price in excess
of par. All income and gain realized from any such  investment  shall be for the
benefit of the  Servicer  and shall be subject to its  withdrawal  or order from
time to  time.  The  amount  of any  losses  incurred  in  respect  of any  such
investments  shall be deposited in the Note Payment  Account by the Servicer out
of its own funds immediately as realized.

                                   ARTICLE VI

                                  The Servicer

Section  6.01  Liability  of the  Servicer.  The  Servicer  shall be  liable  in
accordance herewith only to the extent of the obligations  specifically  imposed
upon and undertaken by the Servicer herein.

Section 6.02 Merger or  Consolidation  of, or Assumption of the  Obligations of,
the Servicer. Any corporation into which the Servicer 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 Servicer shall be a party, or
any  corporation  succeeding  to the  business  of the  Servicer,  shall  be the
successor  of the  Servicer  hereunder,  without the  execution or filing of any
paper or any  further  act on the part of any of the  parties  hereto,  anything
herein to the contrary notwithstanding.

        The  Servicer  may  assign  its  rights  and  delegate  its  duties  and
obligations  under this  Agreement;  provided,  that the Person  accepting  such
assignment or delegation  shall be a Person qualified to service mortgage loans,
is  reasonably  satisfactory  to the  Enhancer  (provided,  that such consent to
assignment may not be unreasonably withheld), is willing to service the Mortgage

                                       27
<PAGE>

agreement,  in form and substance reasonably  satisfactory to the Enhancer, that
contains an  assumption by such Person of the due and punctual  performance  and
observance  of each  covenant  and  condition to be performed or observed by the
Servicer under this Agreement;  and provided further,  that no Rating Event will
occur as a result of such assignment and delegation (as evidenced by a letter to
such  effect from each  Rating  Agency),  if  determined  without  regard to the
Policy; and provided further, that the Owner Trustee shall receive an Opinion of
Counsel to the effect  that such  assignment  or  delegation  will not cause the
Issuer  to be  treated  as an  association  (or a  publicly-traded  partnership)
taxable as a corporation for federal income tax purposes.

Section 6.03  Limitation  on  Liability of the Servicer and Others.  Neither the
Servicer  nor any of the  directors  or officers or  employees  or agents of the
Servicer  shall be under any  liability to the Issuer,  the Owner  Trustee,  the
Indenture Trustee or the  Securityholders for any action taken or for refraining
from  the  taking  of any  action  in good  faith  pursuant  to this  Agreement;
provided,  however,  that this  provision  shall not protect the Servicer or any
such Person against any liability  that would  otherwise be imposed by reason of
its willful misfeasance, bad faith or gross negligence in the performance of its
duties  hereunder or by reason of its reckless  disregard of its obligations and
duties hereunder.  The Servicer and any director or officer or employee or agent
of the  Servicer  may rely in good faith on any document of any kind prima facie
properly  executed and submitted by any Person  respecting  any matters  arising
hereunder.  The Servicer  and any  director,  officer,  employee or agent of the
Servicer shall be indemnified by the Issuer and held harmless  against any loss,
liability or expense  incurred in connection  with any legal action  relating to
this Agreement or the Securities, including any amount paid to the Owner Trustee
or the  Indenture  Trustee  pursuant  to Section  6.06(b),  other than any loss,
liability or expense  related to any specific  Mortgage  Loan or Mortgage  Loans
(except as any such loss,  liability or expense shall be otherwise  reimbursable
pursuant  to this  Agreement)  and any loss,  liability  or expense  incurred by
reason  of its  willful  misfeasance,  bad  faith  or  gross  negligence  in the
performance  of its duties  hereunder or by reason of its reckless  disregard of
its  obligations  and  duties  hereunder.  The  Servicer  shall not be under any
obligation  to appear  in,  prosecute  or defend  any legal  action  that is not
incidental to its duties to service the Mortgage  Loans in accordance  with this
Agreement,  and that in its opinion may involve it in any expense or  liability;
provided,  however,  that the Servicer may in its sole discretion  undertake any
such  action  that  it may  deem  necessary  or  desirable  in  respect  of this
Agreement,  the rights and duties of the parties hereto and the interests of the
Securityholders.  In such event, the reasonable legal expenses and costs of such
action  and any  liability  resulting  therefrom  shall be  expenses,  costs and
liabilities  of the Issuer,  and the Servicer shall be entitled to be reimbursed
therefor.  The Servicer's right to indemnity or  reimbursement  pursuant to this
Section  6.03 shall  survive any  resignation  or  termination  of the  Servicer
pursuant to Section 6.04 or 7.01 with respect to any losses,  expenses, costs or
liabilities  arising prior to such  resignation or termination  (or arising from
events that occurred prior to such resignation or termination).

Section 6.04 Servicer Not to Resign.  Subject to the provisions of Section 6.02,
the Servicer shall not resign from the  obligations and duties hereby imposed on
it except (a) upon  determination  that the  performance  of its  obligations or
duties  hereunder  are no  longer  permissible  under  applicable  law or are in
material conflict by reason of applicable law with any other activities  carried
on by it or its subsidiaries or Affiliates, the other activities of the Servicer
so causing such a conflict being of a type and nature carried on by the Servicer
or its  subsidiaries  or  Affiliates  at the date of this  Agreement or (b) upon
satisfaction of the following conditions: (i) the Servicer shall have proposed a
successor  servicer to the Issuer and the Indenture  Trustee in writing and such
proposed  successor  servicer  is  reasonably  acceptable  to  the  Issuer,  the

                                       28
<PAGE>

Indenture Trustee and the Enhancer; (ii) each Rating Agency shall have delivered
a letter to the Issuer,  the Enhancer  and the  Indenture  Trustee  prior to the
appointment of the successor  servicer stating that the proposed  appointment of
such successor  servicer as Servicer hereunder will not cause a Rating Event, if
determined  without  regard to the  Policy;  and (iii) such  proposed  successor
servicer is reasonably  acceptable to the Enhancer,  as evidenced by a letter to
the  Issuer  and  the  Indenture  Trustee;  provided,   however,  that  no  such
resignation by the Servicer shall become effective until such successor servicer
or, in the case of (a) above, the Indenture Trustee,  as pledgee of the Mortgage
Loans,  shall have  assumed  the  Servicer's  responsibilities  and  obligations
hereunder or the Indenture Trustee, as pledgee of the Mortgage Loans, shall have
designated  a successor  servicer in  accordance  with  Section  7.02.  Any such
resignation  shall not relieve the  Servicer  of  responsibility  for any of the
obligations  specified in Sections 7.01 and 7.02 as obligations that survive the
resignation or termination of the Servicer.  Any such  determination  permitting
the  resignation  of the Servicer shall be evidenced by an Opinion of Counsel to
such effect delivered to the Indenture Trustee and the Enhancer.

Section  6.05  Delegation  of Duties.  In the ordinary  course of business,  the
Servicer at any time may  delegate  any of its duties  hereunder  to any Person,
including  any  of its  Affiliates,  that  agrees  to  conduct  such  duties  in
accordance with standards  comparable to those with which the Servicer  complies
pursuant to Section 3.01. Such delegation  shall not relieve the Servicer of its
liabilities  and  responsibilities  with  respect  to such  duties and shall not
constitute a resignation within the meaning of Section 6.04.

                                       29
<PAGE>

     Section 6.06 Payment of Indenture  Trustee's and Owner  Trustee's  Fees and
     Expenses; Indemnification.

(a) After the Closing  Date,  the  Servicer  covenants  and agrees to pay to the
Owner Trustee, the Indenture Trustee and any co-trustee of the Indenture Trustee
or the Owner  Trustee from time to time,  and the Owner  Trustee,  the Indenture
Trustee and any such co-trustee  shall be entitled to,  reasonable  compensation
(which  shall  not  be  limited  by  any  provision  of  law  in  regard  to the
compensation  of a trustee of an express trust and, in the case of the Indenture
Trustee,  for so long as GMAC Mortgage  Corporation  is the Servicer shall be as
set forth in the letter agreement between the Indenture Trustee and the Servicer
dated as of October 24, 2001) for all  services  rendered by each of them in the
execution of the trusts created under the Trust  Agreement and the Indenture and
in the exercise and  performance of any of the powers and duties under the Trust
Agreement  or the  Indenture,  as the case may be,  of the  Owner  Trustee,  the
Indenture Trustee and any co-trustee, and the Servicer will pay or reimburse the
Indenture  Trustee and any co-trustee upon request for all reasonable  expenses,
disbursements  and  advances  incurred or made by the  Indenture  Trustee or any
co-trustee  in accordance  with any of the  provisions  of this  Agreement,  the
Indenture  or the Trust  Agreement  except  any such  expense,  disbursement  or
advance as may arise from its negligence,  willful  misfeasance or bad faith. In
addition,  the Indenture  Trustee  shall be entitled to be  reimbursed  from the
Servicer for all reasonable costs associated with the transfer of servicing from
the predecessor servicer pursuant to Section 7.02 hereunder,  including, without
limitation,  any  reasonable  costs or  expenses  associated  with the  complete
transfer of all servicing data and the completion, correction or manipulation of
such servicing  data as may be required by the Indenture  Trustee to correct any
errors or  insufficiencies  in the  servicing  data or  otherwise  to enable the
Indenture Trustee to service the Mortgage Loans properly and effectively.

(b) The Servicer agrees to indemnify the Indenture Trustee and the Owner Trustee
for, and to hold the Indenture  Trustee and the Owner  Trustee,  as the case may
be,  harmless  against,   any  loss,   liability  or  expense  incurred  without
negligence, bad faith or willful misconduct on the part of the Indenture Trustee
or the Owner Trustee, as the case may be, arising out of, or in connection with,
the  acceptance  and  administration  of the  Issuer  and  the  assets  thereof,
including the costs and expenses (including  reasonable legal fees and expenses)
of defending the  Indenture  Trustee or the Owner  Trustee,  as the case may be,
against any claim in connection  with the exercise or  performance of any of its
powers or duties under any Basic Document; provided that:

(i)                   with respect to any such claim,  the Indenture  Trustee or
                      Owner  Trustee,  as the case may be,  shall have given the
                      Servicer   written  notice  thereof   promptly  after  the
                      Indenture  Trustee or Owner  Trustee,  as the case may be,
                      shall have actual knowledge thereof;

(ii)                  while  maintaining  control  over  its  own  defense,  the
                      Issuer,  the Indenture  Trustee or Owner  Trustee,  as the
                      case may be, shall  cooperate  and consult  fully with the
                      Servicer in preparing such defense; and

(iii)                 notwithstanding   anything  in  this   Agreement   to  the
                      contrary,  the Servicer shall not be liable for settlement
                      of  any  claim  by the  Indenture  Trustee  or  the  Owner
                      Trustee,  as the case may be,  entered  into  without  the
                      prior consent of the Servicer.

                                       30
<PAGE>

No  termination  of this  Agreement or  resignation  or removal of the Indenture
Trustee  shall  affect  the  obligations  created  by this  Section  6.06 of the
Servicer to indemnify  the  Indenture  Trustee and the Owner  Trustee  under the
conditions and to the extent set forth herein.

        Notwithstanding  the  foregoing,  the  indemnification  provided  by the
Servicer in this  Section  6.06(b)  shall not pertain to any loss,  liability or
expense of the Indenture  Trustee or the Owner Trustee,  including the costs and
expenses of defending itself against any claim,  incurred in connection with any
actions taken by the Indenture  Trustee or the Owner Trustee at the direction of
the Noteholders or Certificateholders, as the case may be, pursuant to the terms
of this Agreement.

                                  ARTICLE VII

                                     Default

Section 7.01   Servicing Default.

(a) If any one of the following events (each, a "Servicing Default") shall occur
and be continuing:

(i)  any  failure  by the  Servicer  to deposit in the  Custodial  Account,  the
     Funding  Account,  the Reserve  Account,  the Note  Payment  Account or the
     Distribution  Account  any  deposit  required to be made under the terms of
     this Agreement that continues unremedied for a period of five Business Days
     after the date upon which  written  notice of such failure  shall have been
     given to the  Servicer by the Issuer or the  Indenture  Trustee,  or to the
     Servicer, the Issuer and the Indenture Trustee by the Enhancer;

(ii) any failure on the part of the  Servicer  duly to observe or perform in any
     material  respect any other  covenants  or  agreements  of the Servicer set
     forth in the Securities or in this Agreement,  which failure, in each case,
     materially and adversely  affects the interests of the  Securityholders  or
     the Enhancer,  and which failure  continues  unremedied  for a period of 45
     days after the date on which written notice of such failure,  requiring the
     same to be remedied,  and stating that such notice is a "Notice of Default"
     hereunder,  shall  have been  given to the  Servicer  by the  Issuer or the
     Indenture Trustee, or to the Servicer, the Issuer and the Indenture Trustee
     by the Enhancer;

(iii)the entry  against  the  Servicer of a decree or order by a court or agency
     or supervisory  authority having  jurisdiction under Title 11 of the United
     States Code or any other applicable federal or state bankruptcy, insolvency
     or other  similar law, or if a receiver,  assignee or trustee in bankruptcy
     or reorganization,  liquidator, sequestrator or similar official shall have
     been appointed for or taken possession of the Servicer or its property, and
     the  continuance  of any such decree or order  unstayed and in effect for a
     period of 60 consecutive days;

(iv) the Servicer shall voluntarily  submit to Proceedings under Title 11 of the
     United  States Code or any other  applicable  federal or state  bankruptcy,

                                       31
<PAGE>

     insolvency  or other similar law relating to the Servicer or of or relating
     to all or substantially all of its property; or the Servicer shall admit in
     writing its inability to pay its debts generally as they become due, file a
     petition to take advantage of any applicable  insolvency or  reorganization
     statute, make an assignment for the benefit of its creditors or voluntarily
     suspend payment of its obligations;

(v)  a Rapid Amortization Event occurs on account of the circumstances specified
     in clause (g) of the definition of Rapid  Amortization  Event,  which event
     continues beyond the 90 day grace period set forth in such clause (g);

(vi) the Servicer's Tangible Net Worth at any time is less than $100,000,000 and
     GMAC fails to own, directly or indirectly, at least 51% of the common stock
     of the Servicer.

(vii)the Rolling  Six-Month  Annualized  Liquidation Loss Amount with respect to
     the Mortgage  Loans  exceeds  1.50% of the sum of (a) the Term Note Balance
     and (b) the Variable Funding Balance.

then, and in every such case, so long as a Servicing Default shall not have been
remedied by the Servicer,  either the Issuer,  the  Indenture  Trustee (with the
consent of the Enhancer) or the Enhancer, by notice then given in writing to the
Servicer,  the Issuer and the Indenture Trustee, may terminate all of the rights
and  obligations of the Servicer as servicer under this Agreement other than its
right to receive servicing  compensation and expenses for servicing the Mortgage
Loans hereunder during any period prior to the date of such termination, and the
Issuer,  the  Enhancer  or  the  Indenture  Trustee  (with  the  consent  of the
Enhancer),  may exercise any and all other remedies  available at law or equity.
Any such notice to the Servicer shall also be given to each Rating  Agency,  the
Enhancer and the Issuer. 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 Securities or the Mortgage Loans or otherwise, shall pass to
and be vested in the  Indenture  Trustee,  as  pledgee  of the  Mortgage  Loans,
pursuant to and under this Section 7.01; and, without limitation,  the Indenture
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  of each  Mortgage  Loan  and  related
documents,  or otherwise.  The Servicer agrees to cooperate with the Issuer, the
Enhancer and Indenture Trustee, as the case may be, in effecting the termination
of the responsibilities and rights of the Servicer hereunder, including, without
limitation,  the transfer to the Indenture Trustee for the  administration by it
of all cash  amounts  relating to the  Mortgage  Loans that shall at the time be
held by the Servicer and to be deposited by it in the Custodial Account, or that
have been  deposited  by the  Servicer in the  Custodial  Account or  thereafter
received by the Servicer with respect to the Mortgage Loans,  the recordation of
Assignments  of Mortgages to the Indenture  Trustee if MERS is not the mortgagee
of a Mortgage  Loan, and the delivery of the Mortgage Files in its possession to
the Indenture  Trustee.  All reasonable costs and expenses  (including,  but not
limited to, attorneys' fees) incurred in connection with amending this Agreement
to reflect such  succession  as Servicer  pursuant to this Section 7.01 shall be
paid  by  the  predecessor  Servicer  (or  if the  predecessor  Servicer  is the
Indenture  Trustee,  the  initial  Servicer)  upon  presentation  of  reasonable
documentation of such costs and expenses.

                                       32
<PAGE>

(b) Notwithstanding any termination of the activities of the Servicer hereunder,
the  Servicer  shall be  entitled to receive,  out of any late  collection  of a
payment on a Mortgage  Loan  which was due prior to the notice  terminating  the
Servicer's rights and obligations hereunder and received after such notice, that
portion to which the Servicer would have been entitled pursuant to Sections 3.03
and 3.09 as well as its Servicing Fee in respect thereof,  and any other amounts
payable to the Servicer  hereunder the  entitlement  to which arose prior to the
termination of its activities hereunder.

        Notwithstanding  the  foregoing,  a delay in or failure  of  performance
under  paragraph  (a)(i) or (ii)  above,  after  the  applicable  grace  periods
specified  therein,  shall not  constitute a Servicing  Default if such delay or
failure  could not be prevented by the exercise of  reasonable  diligence by the
Servicer  and such  delay or  failure  was caused by an act of God or the public
enemy,  acts of  declared or  undeclared  war,  public  disorder,  rebellion  or
sabotage,  epidemics,  landslides,  lightning,  fire,  hurricanes,  earthquakes,
floods or similar causes.  The preceding sentence shall not relieve the Servicer
from using reasonable efforts to perform its respective  obligations in a timely
manner  in  accordance  with the terms of this  Agreement.  The  Servicer  shall
provide the Indenture Trustee,  the Enhancer and the Securityholders with notice
of any such failure or delay by it,  together with a description  of its efforts
to so  perform  its  obligations.  The  Servicer  shall  immediately  notify the
Indenture  Trustee,  the  Enhancer  and the Issuer in  writing of any  Servicing
Default.

Section 7.02   Indenture Trustee to Act; Appointment of Successor.

(a) On and after the time the Servicer receives a notice of termination pursuant
to Section  7.01 or sends a notice  pursuant  to  Section  6.04,  the  Indenture
Trustee as pledgee of the Mortgage Loans shall itself  become,  or shall appoint
an affiliate of the Indenture Trustee to become the successor in all respects to
the  Servicer  in  its  capacity  as  servicer  under  this  Agreement  and  the
transactions set forth or provided for herein and shall  immediately  assume all
of the  obligations  of the  Servicer to make  advances on Mortgage  Loans under
Section  3.02(b) and will be subject to all other  responsibilities,  duties and
liabilities  relating thereto placed on the Servicer by the terms and provisions
hereof as soon as  practicable,  but in no event  later  than 90 days  after the
Indenture Trustee becomes  successor  servicer.  During such 90 day period,  the
Indenture  Trustee,  with the consent of the Enhancer,  may require the Servicer
being terminated to continue to perform such servicing  responsibilities  (other
than  making  advances  on the  Mortgage  Loans  under  Section  3.02(b)) as the
Indenture  Trustee  deems  appropriate.   In  such  event,  the  Servicer  being
terminated  shall  provide such  services as directed by the  Indenture  Trustee
until the earliest of the date the Indenture  Trustee  notifies such Servicer to
discontinue  providing such services,  the date on which a successor servicer or
the Indenture Trustee has assumed all  responsibilities,  duties and liabilities
of the Servicer  hereunder or the expiration of the 90 day period.  The Servicer
shall be entitled to the Servicing Fee hereunder for any period during which the
Servicer is  obligated  to provide  such  services as if no  termination  of the
Servicer had occurred. Nothing in this Agreement or in the Trust Agreement shall
be  construed to permit or require the  Indenture  Trustee to (i) succeed to the
responsibilities, duties and liabilities of the initial Servicer in its capacity
as Seller under the Purchase  Agreement,  (ii) be responsible or accountable for
any act or  omission  of the  Servicer  prior to the  issuance  of a  notice  of
termination  hereunder,  (iii) require or obligate the Indenture Trustee, in its
capacity as  successor  Servicer,  to purchase,  repurchase  or  substitute  any
Mortgage Loan,  (iv) fund any  Additional  Balances with respect to any Mortgage
Loan,  (v) fund any losses on any  Permitted  Investment  directed  by any other
Servicer,  or (vi) be responsible for the  representations and warranties of the
Servicer. As compensation  therefor,  the Indenture Trustee shall be entitled to
such  compensation  as the Servicer  would have been entitled to hereunder if no
such notice of termination had been given. Notwithstanding the foregoing, if the
Indenture  Trustee is (x)  unwilling to act as successor  Servicer  itself or to

                                       33
<PAGE>

appoint an affiliate to become successor  Servicer,  or (y) legally unable so to
act,  the  Indenture  Trustee  as  pledgee  of the  Mortgage  Loans  may (in the
situation  described  in clause  (x)) or shall (in the  situation  described  in
clause (y)) appoint or petition a court of competent jurisdiction to appoint any
established  housing and home finance  institution,  bank or other mortgage loan
servicer 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;  provided,  that  any such
successor  Servicer  shall be acceptable  to the  Enhancer,  as evidenced by the
Enhancer's  prior  written  consent,  which  consent  shall not be  unreasonably
withheld;  and provided  further,  that the  appointment  of any such  successor
Servicer will not result in a Rating Event, if determined  without regard to the
Policy. Pending appointment of a successor to the Servicer hereunder, unless the
Indenture  Trustee is  prohibited by law from so acting,  the Indenture  Trustee
itself  shall act or appoint an  affiliate  to act in such  capacity as provided
above. In connection with such  appointment and assumption,  the successor shall
be entitled  to receive  compensation  out of  payments on Mortgage  Loans in an
amount equal to the compensation that the Servicer would otherwise have received
pursuant to Section 3.09 (or such other  compensation  as the Indenture  Trustee
and such successor shall agree).  The appointment of a successor  Servicer shall
not affect any liability of the predecessor  Servicer that may have arisen under
this Agreement prior to its termination as Servicer (including the obligation to
purchase Mortgage Loans pursuant to Section 3.01, to pay any deductible under an
insurance policy pursuant to Section 3.04 or to indemnify the Indenture  Trustee
pursuant to Section  6.06),  nor shall any successor  Servicer be liable for any
acts or omissions of the predecessor Servicer or for any breach by such Servicer
of any of its  representations or warranties  contained herein or in any related
document or agreement.  The Indenture Trustee and such successor shall take such
action,  consistent  with this  Agreement and the  requirements  (including  any
notice  requirements) of applicable law, as shall be necessary to effectuate any
such succession.  Notwithstanding  the foregoing,  the Indenture Trustee, in its
capacity  as  successor  Servicer,  shall  not be  responsible  for the  lack of
information and/or documents that it cannot obtain through reasonable efforts or
for failing to take any action that the Indenture Trustee is legally  prohibited
from taking by applicable law.

(b) Any successor,  including the Indenture Trustee, to the Servicer as servicer
shall  during its term as Servicer (i)  continue to service and  administer  the
Mortgage Loans for the benefit of the Securityholders,  (ii) maintain in force a
policy or policies of insurance covering errors and omissions in the performance
of its  obligations as Servicer  hereunder and a fidelity bond in respect of its
officers, employees and agents to the same extent as the Servicer is so required
pursuant  to  Section  3.13 and  (iii) be  bound by the  terms of the  Insurance
Agreement.

(c) Any successor Servicer, including the Indenture Trustee, shall not be deemed
in default or to have breached its duties hereunder if the predecessor  Servicer
shall fail to deliver any required deposit to the Custodial Account or otherwise
cooperate with any required servicing transfer or succession hereunder.

(d) In connection with the termination or resignation of the Servicer hereunder,
either  (i) the  successor  Servicer,  including  the  Indenture  Trustee if the
Indenture 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 Mortgage Loans that are registered with MERS, in which case the
predecessor Servicer shall cooperate with the successor Servicer in causing MERS
to revise its records to reflect  the  transfer of  servicing  to the  successor
Servicer as necessary under MERS' rules and regulations, or (ii) the predecessor

                                       34
<PAGE>

Servicer shall cooperate with the successor  Servicer in causing MERS to execute
and  deliver an  assignment  of  Mortgage in  recordable  form to  transfer  the
Mortgage  from MERS to the  Indenture  Trustee and to execute  and deliver  such
other notices,  documents and other instruments as may be necessary or desirable
to effect a transfer of such Mortgage Loan or servicing of such Mortgage Loan on
the MERS(R) System to the successor  Servicer.  The  predecessor  Servicer shall
file or cause  to be filed  any such  assignment  in the  appropriate  recording
office.  The predecessor  Servicer shall bear any and all fees of MERS, costs of
preparing  any  assignments  of  Mortgage,  and fees and  costs  of  filing  any
assignments  of Mortgage  that may be required  under this  subsection  (d). The
successor  Servicer shall cause such assignment to be delivered to the Indenture
Trustee or the Custodian  promptly upon receipt of the original with evidence of
recording  thereon or a copy certified by the public  recording  office in which
such assignment was recorded.

Section  7.03  Notification  to  Securityholders.  Upon  any  termination  of or
appointment  of a successor  to the  Servicer  pursuant  to this  Article VII or
Section 6.04, the Indenture  Trustee shall give prompt written notice thereof to
the Securityholders, the Enhancer, the Issuer and each Rating Agency.

                                  ARTICLE VIII

                            Miscellaneous Provisions

Section 8.01  Amendment.  This Agreement may be amended from time to time by the
parties  hereto;  provided,  that any such  amendment  shall be accompanied by a
letter from each Rating Agency to the effect that such amendment will not result
in a Rating Event,  if  determined  without  regard to the Policy;  and provided
further, that the Enhancer and the Indenture Trustee shall consent thereto.

Section 8.02 GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK AND THE  OBLIGATIONS,  RIGHTS AND  REMEDIES OF
THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

Section 8.03 Notices. All demands, notices and communications hereunder shall be
in writing and shall be deemed to have been duly given if  personally  delivered
at or mailed by certified mail, return receipt requested,  to (a) in the case of
the Servicer, 100 Witmer Road, Horsham,  Pennsylvania 19044, Attention:  Anthony
Renzi, (b) in the case of the Enhancer,  Financial  Guaranty  Insurance Company,
115 Broadway, New York, New York 10006, Attention:  Research and Risk Management
(GMACM  Home  Equity  Loan Trust  2001-HE3),  (c) in the case of  Moody's,  Home
Mortgage Loan Monitoring Group, 4th Floor, 99 Church Street,  New York, New York
10001, (d) in the case of Standard & Poor's, 55 Water Street, New York, New York
10004,  Attention:  Residential Mortgage  Surveillance Group, (e) in the case of
Fitch, One State Street Plaza, New York, New York 10004, Attention:  Residential
Mortgage Group, (f) in the case of the Owner Trustee,  Wilmington Trust Company,
Rodney Square North, 1100 North Market Street,  Wilmington,  Delaware 19890-0001
and (g) in the case of the Issuer,  GMACM Home Equity Loan Trust  2001-HE3,  c/o
the Owner  Trustee at the address set forth in clause (e) above,  and (g) in the
case of the Indenture  Trustee,  at the Corporate  Trust Office of the Indenture
Trustee, with a copy to Bank One, National Association,  1 Bank One Plaza, Suite
IL1-0126,  Chicago,  Illinois 60670-0126,  Attention:  GMACM 2001-HE3;  or, with
respect to each of the  foregoing  Persons,  at such  other  address as shall be

                                       35
<PAGE>

designated by such Person in a written  notice to the other  foregoing  Persons.
Any notice required or permitted to be mailed to a Securityholder shall be given
by first class mail, postage prepaid,  at the address of such  Securityholder as
shown in the Note  Register  or  Certificate  Register,  as the case may be. Any
notice  so  mailed  within  the  time  prescribed  in this  Agreement  shall  be
conclusively  presumed  to have  been duly  given,  whether  or not the  related
Securityholder receives such notice. Any notice or other document required to be
delivered or mailed by the Indenture Trustee to any Rating Agency shall be given
on  a  reasonable   efforts   basis  and  only  as  a  matter  of  courtesy  and
accommodation,  and the Indenture Trustee shall have no liability for failure to
deliver any such notice or document to any Rating Agency.

Section 8.04  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 the Securities or
the rights of the Securityholders.

Section  8.05  Third-Party  Beneficiaries.  This  Agreement  shall  inure to the
benefit of and be binding  upon the parties  hereto,  the  Securityholders,  the
Enhancer,  the Owner  Trustee  and their  respective  successors  and  permitted
assigns.  Except as otherwise provided in this Agreement,  no other Person shall
have any right or obligation hereunder.

Section  8.06  Counterparts.  This  instrument  may be executed in any number of
counterparts,  each of which so executed shall be deemed to be an original,  but
all such counterparts shall together constitute but one and the same instrument.

Section 8.07 Effect of Headings  and Table of Contents.  The Article and Section
headings herein and the Table of Contents are for convenience only and shall not
affect the construction hereof.

Section 8.08  Termination  Upon Purchase by the Servicer or  Liquidation  of All
Mortgage Loans; Partial Redemption.

(a) The respective  obligations and responsibilities of the Servicer, the Issuer
and the Indenture  Trustee  created hereby shall  terminate upon the last action
required to be taken by the Issuer  pursuant to the Trust  Agreement  and by the
Indenture Trustee pursuant to the Indenture following the earlier of:

(i)  the date on or  before  which  the  Indenture  or the  Trust  Agreement  is
     terminated, or

(ii) the purchase by the Servicer from the Issuer of all Mortgage  Loans and REO
     Property in accordance with Section 8.08(b).

(b) The  Servicer  shall have the right to  purchase  from the Issuer all of the
Mortgage  Loans and related REO  Property if the  aggregate  Note Balance of the
Notes as of any Payment Date is less than 10% of the  aggregate  Note Balance of
the Notes as of the Closing Date,  (provided that a draw on the Policy would not

                                       36
<PAGE>

occur as a result of such purchase and provided  further that the purchase price
will provide  sufficient  funds to pay the outstanding  Note Balance and accrued
and unpaid  interest on the Notes to the Payment  Date on which such amounts are
to be  distributed  to the  Securityholders),  at a price  equal  to 100% of the
aggregate unpaid Principal  Balance of all such remaining  Mortgage Loans,  plus
accrued and unpaid  interest  thereon at the weighted  average of the Loan Rates
thereon up to the date  preceding  the Payment Date on which such amounts are to
be distributed to the Securityholders (and in the case of REO Property, the fair
market  value  of the REO  Property),  plus  any  amounts  due and  owing to the
Enhancer  under the  Insurance  Agreement  related to the Mortgage  Loans or the
Notes (and any unpaid  Servicing  Fee  relating to the  Mortgage  Loans shall be
deemed to have been paid at such time), plus any Interest Shortfall and interest
owed thereon to the Noteholders.

               The  Servicer  shall send  written  notice to the Enhancer of its
intent to exercise its right to purchase any of the Mortgage  Loans  pursuant to
this Section 8.08(b).

               If such right is exercised by the  Servicer,  the Servicer  shall
deposit  the  amount  calculated  pursuant  to this  Section  8.08(b)  with  the
Indenture  Trustee  pursuant  to Section  4.10 of the  Indenture  and,  upon the
receipt of such deposit, the Indenture Trustee or Custodian shall release to the
Servicer,  the files  pertaining  to the  Mortgage  Loans being  purchased.  The
Servicer, at its expense, shall prepare and deliver to the Indenture Trustee for
execution,  at the time the  related  Mortgage  Loans are to be  released to the
Servicer,  appropriate  documents  assigning  each such Mortgage  Loans from the
Indenture Trustee or the Issuer to the Servicer or the appropriate party.

Section 8.09 Certain Matters Affecting the Indenture  Trustee.  For all purposes
of this Agreement, in the performance of any of its duties or in the exercise of
any of its  powers  hereunder,  the  Indenture  Trustee  shall be subject to and
entitled to the benefits of Article VI of the Indenture.

Section  8.10 Owner  Trustee  Not Liable for  Related  Documents.  The  recitals
contained herein shall be taken as the statements of the Servicer, and the Owner
Trustee and the Indenture Trustee assume no  responsibility  for the correctness
thereof.  The Owner Trustee and the Indenture Trustee make no representations as
to the  validity or  sufficiency  of this  Agreement,  of any Basic  Document or
Related Document, or of the Certificates (other than the signatures of the Owner
Trustee and the Indenture  Trustee on the  Certificates) or the Notes. The Owner
Trustee and the Indenture  Trustee shall at no time have any  responsibility  or
liability with respect to the  sufficiency of the Trust Estate or its ability to
generate the payments to be  distributed to  Certificateholders  under the Trust
Agreement or the  Noteholders  under the Indenture,  including the compliance by
the Depositor,  the Sellers or the Servicer with any warranty or  representation
made  under  any  Basic  Document  or the  accuracy  of  any  such  warranty  or
representation,  or any  action  of any  person  taken in the name of the  Owner
Trustee or the Indenture Trustee.

                                       37
<PAGE>

        IN WITNESS WHEREOF,  the Servicer,  the Issuer and the Indenture Trustee
have caused this Agreement to be duly executed by their  respective  officers or
representatives all as of the day and year first above written.

                             GMAC MORTGAGE CORPORATION,
                                as Servicer

                             By:
                                    ----------------------------------------
                                    Name:
                                    Title:

                             GMACM HOME EQUITY LOAN TRUST 2001-HE3, as
                             Issuer

                             By:    Wilmington Trust Company, not in its
                                    individual capacity but solely as
                                    Owner Trustee

                             By:
                                    ----------------------------------------
                                    Name:
                                    Title:

                             BANK ONE, NATIONAL ASSOCIATION,
                                as Indenture Trustee

                             By:
                                    ----------------------------------------
                                    Name:
                                    Title:

                                       38
<PAGE>

                                  EXHIBIT A

                             MORTGAGE LOAN SCHEDULE

                                        A-1
<PAGE>

                                    EXHIBIT B

                            LIMITED POWER OF ATTORNEY

                               KNOW ALL MEN BY THESE PREMISES:

        That  Bank  One,  National   Association,   as  indenture  trustee  (the
"Indenture  Trustee"),  under the  indenture  dated as of October  24, 2001 (the
"Indenture"),  between GMACM Home Equity Loan Trust 2001-HE3,  as issuer and the
Indenture Trustee, a national banking  association  organized and existing under
the laws of the  United  States of  America,  and having  its  principal  office
located at 1 Bank One Plaza, Suite IL1-0126,  Chicago, Illinois 60670-0126, hath
made, constituted and appointed, and does by these presents make, constitute and
appoint GMAC Mortgage  Corporation,  a corporation  organized and existing under
the  laws  of  the   Commonwealth   of   Pennsylvania,   its  true  and   lawful
Attorney-in-Fact,  with full power and authority to sign, execute,  acknowledge,
deliver, file for record, and record any instrument on its behalf and to perform
such  other  act or acts as may be  customarily  and  reasonably  necessary  and
appropriate to effectuate the following  enumerated  transactions  in respect of
any of the Mortgages  securing a Mortgage  Loan and the related Loan  Agreements
for  which  the   undersigned  is  acting  as  Indenture   Trustee  for  various
Securityholders  (whether  the  undersigned  is named  therein as  mortgagee  or
beneficiary  or has  become  mortgagee  by  virtue of  endorsement  of such Loan
Agreement secured by any such Mortgage) and for which GMAC Mortgage  Corporation
is acting as Servicer pursuant to a Servicing  Agreement dated as of October 24,
2001 (the "Servicing Agreement").

This appointment shall apply to the following enumerated transactions only:

1.      The modification or re-recording of a Mortgage,  where said modification
        or re-recording is for the purpose of correcting the Mortgage to conform
        same to the original  intent of the parties  thereto or to correct title
        errors  discovered  after  such  title  insurance  was  issued  and said
        modification or  re-recording,  in either  instance,  does not adversely
        affect the Lien of the Mortgage as insured.

2.      The subordination of the Lien of a Mortgage to an easement in favor of a
        public  utility  company or a  government  agency or unit with powers of
        eminent  domain;  this section shall include,  without  limitation,  the
        execution of partial  satisfactions/releases,  partial  reconveyances or
        the execution of requests to trustees to accomplish same.

3.      With  respect to a Mortgage,  the  foreclosure,  the taking of a deed in
        lieu of  foreclosure,  or the  completion  of judicial  or  non-judicial
        foreclosure  or  termination,  cancellation  or  rescission  of any such
        foreclosure, including, without limitation, any and all of the following
        acts:

          a.   The  substitution  of  trustee(s)  serving  under a Mortgage,  in
               accordance with state law and the Mortgage;

        b.     Statements of breach or non-performance;

        c.     Notices of default;

          d.   Cancellations/rescissions of notices of default and/or notices of
               sale;

                                        B-1
<PAGE>

        e.     The taking of a deed in lieu of foreclosure; and

          f.   Such other  documents  and actions as may be necessary  under the
               terms of the Mortgage or state law to expeditiously complete said
               transactions.

4.      The conveyance of the properties to the mortgage insurer, or the closing
        of the title to the  property to be acquired  as real estate  owned,  or
        conveyance of title to real estate owned.

5.      The completion of loan assumption agreements.

6.      The full  satisfaction/release  of a Mortgage or full  reconveyance upon
        payment and discharge of all sums secured  thereby,  including,  without
        limitation, cancellation of the related Mortgage Note.

7.   The  assignment  of  any  Mortgage  and  the  related  Loan  Agreement,  in
     connection  with the  repurchase of the Mortgage Loan secured and evidenced
     thereby.

8.      The full assignment of a Mortgage upon payment and discharge of all sums
        secured thereby in conjunction with the refinancing thereof,  including,
        without limitation, the endorsement of the related Mortgage Note.

9.   The modification or re-recording of a Mortgage,  where said modification or
     re-recording  is for the  purpose of any  modification  pursuant to Section
     3.01 of the Servicing Agreement.

10.     The subordination of the Lien of a Mortgage, where said subordination is
        in  connection  with any  modification  pursuant to Section  3.01 of the
        Servicing Agreement, and the execution of partial satisfactions/releases
        in connection with such same Section 3.01.

        The undersigned gives said  Attorney-in-Fact full power and authority to
execute  such  instruments  and to do and  perform  all and  every act and thing
necessary  and  proper to carry into  effect  the power or powers  granted by or
under this Limited Power of Attorney as fully as the undersigned  might or could
do, and hereby does ratify and confirm to all that said  Attorney-in-Fact  shall
lawfully do or cause to be done by authority hereof.

        Capitalized  terms used herein that are not otherwise defined shall have
the meanings ascribed thereto in Appendix A to the Indenture.

                                        B-2
<PAGE>

        Third  parties  without  actual notice may rely upon the exercise of the
power granted under this Limited  Power of Attorney;  and may be satisfied  that
this Limited Power of Attorney  shall  continue in full force and effect has not
been revoked  unless an instrument of revocation has been made in writing by the
undersigned.

                                BANK ONE, NATIONAL ASSOCIATION,
                                    not in its individual capacity
                                    but solely as Indenture Trustee

                                By:
                                       ----------------------------------------
                                       Name:
                                       Title:

                                        B-3
<PAGE>

STATE OF                     )
                             SS.
COUNTY OF                    )

        On this [___] day of October,  2001,  before me the undersigned,  Notary
Public of said State,  personally  appeared , personally  known to me to be duly
authorized  officers of Bank One, National  Association that executed the within
instrument and personally  known to me to be the persons who executed the within
instrument  on behalf of Bank  One,  National  Association  therein  named,  and
acknowledged  to me such Bank One,  National  Association  executed  the  within
instrument pursuant to its by-laws.

                                WITNESS  my  hand  and   official
seal.

                                Notary Public in and for the
                                State of
                                        --------------------------------

After recording, please mail to:

Attn:
     -------------------------------

                                        B-4
<PAGE>

                                    EXHIBIT C

                           FORM OF REQUEST FOR RELEASE

DATE:

TO:

RE:            REQUEST FOR RELEASE OF DOCUMENTS

In connection  with your  administration  of the Mortgage  Loans, we request the
release of the Mortgage File described below.

Servicing Agreement Dated:
Series #:
Account #:
Pool #:
Loan #:
Borrower Name(s):
Reason for Document Request: (circle one)          Mortgage Loan
Prepaid in Full                                    Mortgage Loan Repurchased

"We hereby  certify  that all amounts  received or to be received in  connection
with such  payments  which are required to be deposited  have been or will be so
deposited as provided in the Servicing Agreement."

GMAC Mortgage Corporation
Authorized Signature

******************************************************************************
TO CUSTODIAN:  Please  acknowledge  this request,  and check off documents being
enclosed with a copy of this form. You should retain this form for your files in
accordance with the terms of the Servicing Agreement.

Enclosed Documents:       [  ]   Loan Agreement

Name
    --------------------------------

Title
     -------------------------------

Date
    ------------------

                                        C-1
<PAGE>

<TABLE>
<CAPTION>

        TABLE OF CONTENTS                                                                PAGE

<S>                                                                                        <C>
ARTICLE I         Definitions...............................................................2

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

        Section 1.02     Other Definitional Provisions......................................2

        Section 1.03     Interest Calculations..............................................2

ARTICLE II        Representations and Warranties............................................3

        Section 2.01     Representations and Warranties Regarding the Servicer..............3

        Section 2.02     Representations and Warranties of the Issuer.......................4

        Section 2.03     Enforcement of Representations and Warranties......................4

ARTICLE III       Administration and Servicing of Mortgage Loans............................5

        Section 3.01     The Servicer.......................................................5

        Section 3.02     Collection of Certain Mortgage Loan Payments.......................7

        Section 3.03     Withdrawals from the Custodial Account............................10

        Section 3.04     Maintenance of Hazard Insurance; Property Protection Expenses.....12

        Section 3.05     Modification Agreements...........................................13

        Section 3.06     Trust Estate; Related Documents...................................13

        Section 3.07     Realization Upon Defaulted Mortgage Loans.........................14

        Section 3.08     Issuer and Indenture Trustee to Cooperate.........................15

        Section 3.09     Servicing Compensation; Payment of Certain Expenses by
                         Servicer..........................................................16

        Section 3.10     Annual Statement as to Compliance.................................16

        Section 3.11     Annual Servicing Report...........................................17

        Section 3.12     Access to Certain Documentation and Information Regarding
                         the Mortgage Loans................................................17

        Section 3.13     Maintenance of Certain Servicing Insurance Policies...............17

        Section 3.14     Information Required by the Internal Revenue Service and
                         Reports of Foreclosures and Abandonments of Mortgaged
                         Property..........................................................17

        Section 3.15     Optional Repurchase or Transfer of Mortgage Loans.................18

        Section 3.16     Reserved..........................................................19

        Section 3.17     Pre-Funding Account...............................................19

        Section 3.18     Funding Account...................................................20

                                        i
<PAGE>

        Section 3.19     Capitalized Interest Account......................................22

        Section 3.20     Reserve Account...................................................22

        Section 3.21     Enforcement of Due-on-Sale Clauses; Assumption and
                         Modification Agreements; Certain Assignments......................23

ARTICLE IV        Servicing Certificate....................................................24

        Section 4.01     Statements to Securityholders.....................................24

        Section 4.02     Tax Returns and 1934 Act Reports..................................26

ARTICLE V         Note Payment Account.....................................................27

        Section 5.01     Note Payment Account..............................................27

ARTICLE VI        The Servicer.............................................................27

        Section 6.01     Liability of the Servicer.........................................27

        Section 6.02     Merger or Consolidation of, or Assumption of the Obligations
                         of, the Servicer..................................................27

        Section 6.03     Limitation on Liability of the Servicer and Others................28

        Section 6.04     Servicer Not to Resign............................................28

        Section 6.05     Delegation of Duties..............................................29

        Section 6.06     Payment of Indenture Trustee's and Owner Trustee's Fees and
                         Expenses; Indemnification.........................................30

ARTICLE VII       Default..................................................................31

        Section 7.01     Servicing Default.................................................31

        Section 7.02     Indenture Trustee to Act; Appointment of Successor................33

        Section 7.03     Notification to Securityholders...................................35

ARTICLE VIII      Miscellaneous Provisions.................................................35

        Section 8.01     Amendment.........................................................35

        Section 8.02     GOVERNING LAW.....................................................35

        Section 8.03     Notices...........................................................35

        Section 8.04     Severability of Provisions........................................36

        Section 8.05     Third-Party Beneficiaries.........................................36

        Section 8.06     Counterparts......................................................36

        Section 8.07     Effect of Headings and Table of Contents..........................36

                                        ii

<PAGE>

        Section 8.08     Termination Upon Purchase by the Servicer or Liquidation of
                         All Mortgage Loans; Partial Redemption............................36

        Section 8.09     Certain Matters Affecting the Indenture Trustee...................37

        Section 8.10     Owner Trustee Not Liable for Related Documents....................37

</TABLE>

                                        iii
<PAGE>

EXHIBIT A - MORTGAGE LOAN SCHEDULE          A-1

EXHIBIT B - LIMITED POWER OF ATTORNEY       B-1

EXHIBIT C - FORM OF REQUEST FOR RELEASE     C-1

                                        iv

<PAGE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}]]