Document:

MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

                            Depositor

                   HOMEQ SERVICING CORPORATION

                             Servicer

                               and

                  U.S. BANK NATIONAL ASSOCIATION

                             Trustee

                 POOLING AND SERVICING AGREEMENT
                   Dated as of December 1, 2004

          MASTR Asset Backed Securities Trust 2004-WMC3
                Mortgage Pass-Through Certificates

                         Series 2004-WMC3

<PAGE>

                                i

                        TABLE OF CONTENTS

                                    ARTICLE I

                                   DEFINITIONS

SECTION 1.01.     Defined Terms...............................................11
SECTION 1.02.     Allocation of Certain Interest Shortfalls...................64
SECTION 1.03.     Rights of the NIMS Insurer..................................65

                                   ARTICLE II

         CONVEYANCE OF MORTGAGE LOANS; ORIGINAL ISSUANCE OF CERTIFICATES

SECTION 2.01.     Conveyance of the Mortgage Loans............................66
SECTION 2.02.     Acceptance of REMIC I by Trustee............................69
SECTION 2.03.     Repurchase or Substitution of Mortgage Loans by the
                  Originator or the Seller....................................70
SECTION 2.04.     Reserved....................................................73
SECTION 2.05.     Representations, Warranties and Covenants of the Servicer...73
SECTION 2.06.     Conveyance of REMIC Regular Interests and Acceptance of
                  REMIC I, REMIC II, REMIC III and REMIC IV by the
                  Trustee; Issuance of Certificates...........................75
SECTION 2.07.     Issuance of Class R Certificates and Class R-X Certificates.76

                                   ARTICLE III

               ADMINISTRATION AND SERVICING OF THE MORTGAGE LOANS

SECTION 3.01.     Servicer to Act as Servicer.................................77
SECTION 3.02.     Sub-Servicing Agreements Between Servicer
                  and Sub-Servicers...........................................79
SECTION 3.03.     Successor Sub-Servicers.....................................80
SECTION 3.04.     Liability of the Servicer...................................80
SECTION 3.05.     No Contractual Relationship Between Sub-Servicers
                  and the NIMS Insurer, Trustee or Certificateholders.........80
SECTION 3.06.     Assumption or Termination of Sub-Servicing
                  Agreements by Trustee.......................................81
SECTION 3.07.     Collection of Certain Mortgage Loan Payments................81
SECTION 3.08.     Sub-Servicing Accounts......................................82
SECTION 3.09.     Collection of Taxes, Assessments and Similar
                  Items; Servicing Accounts...................................82
SECTION 3.10.     Collection Account and Distribution Account.................83
SECTION 3.11.     Withdrawals from the Collection Account
                  and Distribution Account....................................85
SECTION 3.12.     Investment of Funds in the Collection Account
                  and the Distribution Account................................88
SECTION 3.13.     [Reserved]..................................................89
SECTION 3.14.     Maintenance of Hazard Insurance and Errors and
                  Omissions and Fidelity Coverage.............................89
SECTION 3.15.     Enforcement of Due-On-Sale Clauses; Assumption Agreements...90

                                       i
<PAGE>

SECTION 3.16.     Realization Upon Defaulted Mortgage Loans...................91
SECTION 3.17.     Trustee to Cooperate; Release of Mortgage Files.............93
SECTION 3.18.     Servicing Compensation......................................95
SECTION 3.19.     Reports to the Trustee; Collection Account Statements.......95
SECTION 3.20.     Statement as to Compliance..................................95
SECTION 3.21.     Independent Public Accountants' Servicing Report............96
SECTION 3.22.     Access to Certain Documentation; Filing of
                  Reports by Trustee..........................................96
SECTION 3.23.     Title, Management and Disposition of REO Property...........97
SECTION 3.24.     Obligations of the Servicer in Respect of
                  Prepayment Interest Shortfalls.............................100
SECTION 3.25.     [Reserved].................................................100
SECTION 3.26.     Obligations of the Servicer in Respect of Mortgage
                  Rates and Monthly Payments.................................100
SECTION 3.27.     [Reserved].................................................100
SECTION 3.28.     [Reserved].................................................100
SECTION 3.29.     Advance Facility...........................................100

                                   ARTICLE IV

                         PAYMENTS TO CERTIFICATEHOLDERS

SECTION 4.01.     Distributions..............................................103
SECTION 4.02.     Statements to Certificateholders...........................115
SECTION 4.03.     Remittance Reports; Advances...............................118
SECTION 4.04.     Allocation of Realized Losses..............................119
SECTION 4.05.     Compliance with Withholding Requirements...................122
SECTION 4.06.     Exchange Commission; Additional Information................122
SECTION 4.07.     Net WAC Rate Carryover Reserve Account.....................124

                                    ARTICLE V

                                THE CERTIFICATES

SECTION 5.01.     The Certificates...........................................126
SECTION 5.02.     Registration of Transfer and Exchange of Certificates......128
SECTION 5.03.     Mutilated, Destroyed, Lost or Stolen Certificates..........132
SECTION 5.04.     Persons Deemed Owners......................................133
SECTION 5.05.     Certain Available Information..............................133

                                   ARTICLE VI

                         THE DEPOSITOR AND THE SERVICER

SECTION 6.01.     Liability of the Servicer and the Depositor................134
SECTION 6.02.     Merger or Consolidation of, or Assumption of
                  the Obligations of, the Servicer or the Depositor..........134
SECTION 6.03.     Limitation on Liability of the Servicer and Others.........134
SECTION 6.04.     Servicer Not to Resign.....................................135
SECTION 6.05.     Delegation of Duties.......................................136
SECTION 6.06.     Reserved...................................................136

                                       ii
<PAGE>

SECTION 6.07.     Inspection.................................................136

                                   ARTICLE VII

                                     DEFAULT

SECTION 7.01.     Servicer Events of Default.................................137
SECTION 7.02.     Trustee to Act; Appointment of Successor...................139
SECTION 7.03.     Notification to Certificateholders.........................141
SECTION 7.04.     Waiver of Servicer Events of Default.......................141
SECTION 7.05.     Survivability of Servicer Liabilities......................141

                                  ARTICLE VIII

                             CONCERNING THE TRUSTEE

SECTION 8.01.     Duties of Trustee..........................................142
SECTION 8.02.     Certain Matters Affecting the Trustee......................143
SECTION 8.03.     Trustee not Liable for Certificates or Mortgage Loans......144
SECTION 8.04.     Trustee May Own Certificates...............................145
SECTION 8.05.     Trustee's Fees and Expenses................................145
SECTION 8.06.     Eligibility Requirements for Trustee.......................145
SECTION 8.07.     Resignation and Removal of the Trustee.....................146
SECTION 8.08.     Successor Trustee..........................................146
SECTION 8.09.     Merger or Consolidation of Trustee.........................147
SECTION 8.10.     Appointment of Co-Trustee or Separate Trustee..............147
SECTION 8.11.     Appointment of Office or Agency; Appointment of Custodian..148
SECTION 8.12.     Representations and Warranties.............................149

                                   ARTICLE IX

                                   TERMINATION

SECTION 9.01.     Termination Upon Repurchase or Liquidation of All
                  Mortgage Loans.............................................150
SECTION 9.02.     Additional Termination Requirements........................152

                                    ARTICLE X

                                REMIC PROVISIONS

SECTION 10.01.    REMIC Administration.......................................154
SECTION 10.02.    Prohibited Transactions and Activities.....................156
SECTION 10.03.    Servicer and Trustee Indemnification.......................157

                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

SECTION 11.01.    Amendment..................................................159
SECTION 11.02.    Recordation of Agreement; Counterparts.....................160
SECTION 11.03.    Limitation on Rights of Certificateholders.................160

                                      iii
<PAGE>

SECTION 11.04.    Governing Law..............................................161
SECTION 11.05.    Notices....................................................161
SECTION 11.06.    Severability of Provisions.................................162
SECTION 11.07.    Notice to Rating Agencies and the NIMS Insurer.............162
SECTION 11.08.    Article and Section References.............................163
SECTION 11.09.    Grant of Security Interest.................................163
SECTION 11.10.    Third Party Rights.........................................164

                                       iv
<PAGE>

Exhibits
--------

Exhibit A-1       Form of Class A-1 Certificate
Exhibit A-2       Form of Class A-2 Certificate
Exhibit A-3       Form of Class A-3 Certificate
Exhibit A-4       Form of Class A-4 Certificate
Exhibit A-5       Form of Class A-5 Certificate
Exhibit A-6       Form of Class M-1 Certificate
Exhibit A-7       Form of Class M-2 Certificate
Exhibit A-8       Form of Class M-3 Certificate
Exhibit A-9       Form of Class M-4 Certificate
Exhibit A-10      Form of Class M-5 Certificate
Exhibit A-11      Form of Class M-6 Certificate
Exhibit A-12      Form of Class M-7 Certificate
Exhibit A-13      Form of Class M-8 Certificate
Exhibit A-14      Form of Class M-9 Certificate
Exhibit A-15      Form of Class M-10 Certificate
Exhibit A-16      Form of Class M-11 Certificate
Exhibit A-17      Form of Class CE Certificate
Exhibit A-18      Form of Class P Certificate
Exhibit A-19      Form of Class R Certificate
Exhibit A-20      Form of Class R-X Certificate
Exhibit B         [Reserved]
Exhibit C-1       Form of Trustee's Initial Certification
Exhibit C-2       Form of Trustee's Final Certification
Exhibit C-3       Form of Trustee's Receipt of Mortgage Notes
Exhibit D         Form of Mortgage Loan Purchase Agreement
Exhibit E         Request for Release
Exhibit F-1       Form of Transferor Representation Letter and Form of
                  Transferee Representation Letter in Connection with Transfer
                  of the Private Certificates Pursuant to Rule 144A Under the
                  1933 Act
Exhibit F-2       Form of Transfer Affidavit and Agreement and Form of
                  Transferor Affidavit in Connection with Transfer of Residual
                  Certificates
Exhibit G         Form of Certification with respect to ERISA and the Code
Exhibit H         Form of Report Pursuant to Section 4.06
Exhibit I         Form of Lost Note Affidavit
Exhibit J-1       Form of Certification to Be Provided by the Trustee with Form
                  10-K
Exhibit J-2       Form of Backup Certification to Be Provided by the Servicer
                  with respect to the Form 10-K
Exhibit K         Form of Custodial Agreement
Exhibit L         Annual Statement of Compliance pursuant to Section 3.20
Exhibit M         Forms of Cap Contracts

Schedule 1        Mortgage Loan Schedule
Schedule 2        Prepayment Charge Schedule

                                       v

<PAGE>

                  This Pooling and Servicing Agreement, is dated and effective
as of December 1, 2004, among MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.
as Depositor, HOMEQ SERVICING CORPORATION as Servicer and U.S. BANK NATIONAL
ASSOCIATION as Trustee.

                             PRELIMINARY STATEMENT:

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

<PAGE>

                                     REMIC I
                                     -------

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

<TABLE>
<CAPTION>
                        REMIC I                  Initial                   Latest Possible
Designation         Remittance Rate     Uncertificated Balance ($)        Maturity Date(1)
-----------         ---------------     --------------------------        ----------------
<S>                  <C>                              <C>                 <C>
  I-LTAA              Variable(2)                     365,035,682.42      October 25, 2034
  I-LTA1              Variable(2)                       1,247,325.00      October 25, 2034
  I-LTA2              Variable(2)                         311,830.00      October 25, 2034
  I-LTA3              Variable(2)                         747,095.00      October 25, 2034
  I-LTA4              Variable(2)                         597,875.00      October 25, 2034
  I-LTA5              Variable(2)                         113,005.00      October 25, 2034
  I-LTM1              Variable(2)                         119,195.00      October 25, 2034
  I-LTM2              Variable(2)                         113,610.00      October 25, 2034
  I-LTM3              Variable(2)                          68,910.00      October 25, 2034
  I-LTM4              Variable(2)                          65,185.00      October 25, 2034
  I-LTM5              Variable(2)                          59,600.00      October 25, 2034
  I-LTM6              Variable(2)                          52,150.00      October 25, 2034
  I-LTM7              Variable(2)                          37,250.00      October 25, 2034
  I-LTM8              Variable(2)                          37,250.00      October 25, 2034
  I-LTM9              Variable(2)                          37,250.00      October 25, 2034
  I-LTM10             Variable(2)                          29,800.00      October 25, 2034
  I-LTM11             Variable(2)                          39,110.00      October 25, 2034
  I-LTZZ              Variable(2)                       3,773,267.80      October 25, 2034
   I-LTP              Variable(2)                             100.00      October 25, 2034
 I-LT1SUB             Variable(2)                           7,314.62      October 25, 2034
 I-LT1GRP             Variable(2)                          38,497.73      October 25, 2034
 I-LT2SUB             Variable(2)                           6,839.85      October 25, 2034
 I-LT2GRP             Variable(2)                          35,999.35      October 25, 2034
   I-XX               Variable(2)                     372,396,738.65      October 25, 2034
</TABLE>
----------------
(1)  Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
     regulations, the Distribution Date immediately following the maturity date
     for the Mortgage Loan with the latest maturity date has been designated as
     the "latest possible maturity date" for each REMIC I Regular Interest.
(2)  Calculated in accordance with the definition of "REMIC I Remittance Rate"
     herein.

                                       2
<PAGE>

                                    REMIC II
                                    --------

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

<TABLE>
<CAPTION>
                                                    Initial Aggregate            Latest Possible
   Designation        Pass-Through Rate       Certificate Principal Balance       Maturity Date
   -----------        -----------------       -----------------------------       -------------
<S>                      <C>                       <C>                           <C>
    Class A-1            Variable(1)               $       249,465,000.00        October 25, 2034
    Class A-2            Variable(1)               $        62,366,000.00        October 25, 2034
    Class A-3            Variable(1)               $       149,419,000.00        October 25, 2034
    Class A-4            Variable(1)               $       119,575,000.00        October 25, 2034
    Class A-5            Variable(1)               $        22,601,000.00        October 25, 2034
    Class M-1            Variable(1)               $        23,839,000.00        October 25, 2034
    Class M-2            Variable(1)               $        22,722,000.00        October 25, 2034
    Class M-3            Variable(1)               $        13,782,000.00        October 25, 2034
    Class M-4            Variable(1)               $        13,037,000.00        October 25, 2034
    Class M-5            Variable(1)               $        11,920,000.00        October 25, 2034
    Class M-6            Variable(1)               $        10,430,000.00        October 25, 2034
    Class M-7            Variable(1)               $         7,450,000.00        October 25, 2034
    Class M-8            Variable(1)               $         7,450,000.00        October 25, 2034
    Class M-9            Variable(1)               $         7,450,000.00        October 25, 2034
   Class M-10            Variable(1)               $         5,960,000.00        October 25, 2034
   Class M-11            Variable(1)               $         7,822,000.00        October 25, 2034
Class CE Interest        Variable(2)               $         9,682,780.44        October 25, 2034
Class P Interest           N/A(3)                  $               100.00        October 25, 2034
</TABLE>

---------------
(1)  Calculated in accordance with the definition of "Pass-Through Rate" herein.
(2)  The Class CE Interest will accrue interest at its variable Pass-Through
     Rate on the Notional Amount of the Class CE Interest outstanding from time
     to time which shall equal the Uncertificated Balance of the REMIC I Regular
     Interests (other than REMIC I Regular Interest I-LTP). The Class CE
     Interest will not accrue interest on its Uncertificated Balance.
(3)  The Class P Interest will not accrue interest.

                                       3

<PAGE>

                                    REMIC III
                                    ---------

                  As provided herein, the Trustee shall make an election to
treat the segregated pool of assets consisting of the Class CE Interest as a
REMIC for federal income tax purposes, and such segregated pool of assets will
be designated as "REMIC III." The Class R-III Interest represents the sole class
of "residual interests" in REMIC III for purposes of the REMIC Provisions.

                  The following table sets forth (or describes) the Class
designation, Pass-Through Rate and Original Class Certificate Principal Balance
for the indicated Class of Certificates that represents a "regular interest" in
REMIC III created hereunder:

<TABLE>
<CAPTION>
                                                                Initial Aggregate
                                                              Certificate Principal           Latest Possible
      Class Designation             Pass-Through Rate                Balance                 Maturity Date(1)
    ---------------------           -----------------         ---------------------          ----------------
<S>                                    <C>                        <C>                       <C>
    Class CE Certificates              Variable(2)                $ 9,682,780.44             October 25, 2034
</TABLE>
---------------
(1)  Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
     regulations, the Distribution Date immediately following the maturity date
     for the Mortgage Loans with the latest maturity date has been designated as
     the "latest possible maturity date" for the Class CE Certificates.
(2)  The Class CE Certificates will receive 100% of amounts received in respect
     of the Class CE Interest.

                                       4
<PAGE>

                                    REMIC IV
                                    --------

                  As provided herein, the Trustee shall make an election to
treat the segregated pool of assets consisting of the Class P Interest as a
REMIC for federal income tax purposes, and such segregated pool of assets will
be designated as "REMIC IV." The Class R-IV Interest represents the sole class
of "residual interests" in REMIC IV for purposes of the REMIC Provisions.

                  The following table sets forth (or describes) the Class
designation, Pass-Through Rate and Original Class Certificate Principal Balance
for the indicated Class of Certificates that represents a "regular interest" in
REMIC IV created hereunder:

<TABLE>
<CAPTION>
                                                                Initial Aggregate
                                                              Certificate Principal           Latest Possible
      Class Designation             Pass-Through Rate                Balance                 Maturity Date(1)
      -----------------             -----------------         ---------------------          ----------------
<S>                                    <C>                          <C>                      <C>
    Class P Certificates               Variable(2)                   $100.00                 October 25, 2034
</TABLE>
---------------
(1)  Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
     regulations, the Distribution Date immediately following the maturity date
     for the Mortgage Loans with the latest maturity date has been designated as
     the "latest possible maturity date" for the Class P Certificates.
(2)  The Class P Certificates will receive 100% of amounts received in respect
     of the Class P Interest.

                  As of the Cut-off Date, the Mortgage Loans had an aggregate
Stated Principal Balance equal to $744,970,880.44.

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

                                       5
<PAGE>

                                    RTICLE I

                                   DEFINITIONS

                  SECTION 1.01. Defined Terms.

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

                  "Accrual Period": With respect to the Class A Certificates and
the Mezzanine Certificates and each Distribution Date, the period commencing on
the preceding Distribution Date (or in the case of the first such Accrual
Period, commencing on the Closing Date) and ending on the day preceding the
current Distribution Date. With respect to the Class CE Certificates and the
REMIC I Regular Interests and each Distribution Date, the calendar month prior
to the month of such Distribution Date.

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

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

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

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

                  "Advance": With respect to any Distribution Date, as to any
Mortgage Loan or REO Property, any advance made by the Servicer in respect of
Monthly Payments due during the related Due Period pursuant to Section 4.03.

                  "Advance Facility": As defined in Section 3.29 hereof.

                  "Advancing Person": As defined in Section 3.29 hereof.

                                       11
<PAGE>

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

                  "Aggregate Loss Severity Percentage": With respect to any
Distribution Date, the percentage equivalent of a fraction, the numerator of
which is the aggregate amount of Realized Losses incurred on any Mortgage Loans
from the Cut-off Date to the last day of the preceding calendar month and the
denominator of which is the aggregate principal balance of such Mortgage Loans
immediately prior to the liquidation of such Mortgage Loans.

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

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

                  "Assignment": An assignment of Mortgage, notice of transfer or
equivalent instrument, in recordable form (excepting therefrom, if applicable,
the mortgage recordation information which has not been required pursuant to
Section 2.01 hereof or returned by the applicable recorder's office), which is
sufficient under the laws of the jurisdiction wherein the related Mortgaged
Property is located to reflect of record the sale of the Mortgage, which
assignment, notice of transfer or equivalent instrument may be in the form of
one or more blanket assignments covering Mortgages secured by Mortgaged
Properties located in the same county, if permitted by law.

                  "Available Funds": With respect to any Distribution Date, an
amount equal to the excess of (i) the sum of (a) the aggregate of the related
Monthly Payments received on the Mortgage Loans on or prior to the related
Determination Date, (b) Net Liquidation Proceeds, Insurance Proceeds, Principal
Prepayments, Subsequent Recoveries, proceeds from repurchases of and
substitutions for such Mortgage Loans and other unscheduled recoveries of
principal and interest in respect of the Mortgage Loans received during the
related Prepayment Period, (c) the aggregate of any amounts received in respect
of a related REO Property withdrawn from any REO Account and deposited in the
Collection Account for such Distribution Date, (d) the aggregate of any amounts
deposited in the Collection Account by the Servicer in respect of related
Prepayment Interest Shortfalls for such Distribution Date, (e) the aggregate of
any Advances made by the Servicer for such Distribution Date in respect of the
Mortgage Loans and (f) the aggregate of any related advances made by the Trustee
in respect of the Mortgage Loans for such Distribution Date pursuant to Section
7.02 over (ii) the sum of (a) amounts reimbursable or payable to the Servicer
pursuant to Section 3.11(a), (b) Extraordinary Trust Fund Expenses reimbursable
to the Trustee pursuant to Section 3.11(b), (c) amounts deposited in the
Collection

                                       12
<PAGE>

Account or the Distribution Account pursuant to clauses (a) through (f) above,
as the case may be, in error, (d) the amount of any Prepayment Charges collected
by the Servicer in connection with the full or partial prepayment of any of the
Mortgage Loans and any Servicer Prepayment Charge Payment Amount and (e) the
Trustee Fee and any indemnification amounts owed to the Trustee payable from the
Distribution Account pursuant to Section 8.05.

                  "Balloon Mortgage Loan": A Mortgage Loan that provides for the
payment of the unamortized principal balance of such Mortgage Loan in a single
payment at the maturity of such Mortgage Loan that is substantially greater than
the preceding monthly payment.

                  "Balloon Payment": A payment of the unamortized principal
balance of a Mortgage Loan in a single payment at the maturity of such Mortgage
Loan that is substantially greater than the preceding Monthly Payment.

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

                  "Book-Entry Certificate": The Class A Certificates and the
Mezzanine Certificates for so long as the Certificates of such Class shall be
registered in the name of the Depository or its nominee.

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

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

                  "Cap Contracts": The Group I Cap Contract, the Group II Cap
Contract and the Mezzanine Cap Contract in the forms attached hereto as Exhibit
L.

                  "Certificate": Any one of the Mortgage Pass-Through
Certificates, Series 2004-WMC3, Class A-1, Class A-2, Class A-3, Class A-4,
Class A-5, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6,
Class M-7, Class M-8, Class M-9, Class M-10, Class CE, Class P, Class R or Class
R-X, issued under this Agreement.

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

                                       13
<PAGE>

                  "Certificate Margin": With respect to the Class A-1
Certificates and REMIC I Regular Interest I-LTA1, 0.300% in the case of each
Distribution Date through and including the Distribution Date on which the
aggregate Stated Principal Balance of the Mortgage Loans (and properties
acquired in respect thereof) remaining in the Trust Fund is reduced to less than
10% of the aggregate Cut-off Date Principal Balance of the Mortgage Loans and
0.600% in the case of each Distribution Date thereafter.

                  With respect to the Class A-2 Certificates and REMIC I Regular
Interest I-LTA2, 0.360% in the case of each Distribution Date through and
including the Distribution Date on which the aggregate Stated Principal Balance
of the Mortgage Loans (and properties acquired in respect thereof) remaining in
the Trust Fund is reduced to less than 10% of the aggregate Cut-off Date
Principal Balance of the Mortgage Loans and 0.720% in the case of each
Distribution Date thereafter.

                  With respect to the Class A-3 Certificates and REMIC I Regular
Interest I-LTA3, 0.150% in the case of each Distribution Date through and
including the Distribution Date on which the aggregate Stated Principal Balance
of the Mortgage Loans (and properties acquired in respect thereof) remaining in
the Trust Fund is reduced to less than 10% of the aggregate Cut-off Date
Principal Balance of the Mortgage Loans and 0.300% in the case of each
Distribution Date thereafter.

                  With respect to the Class A-4 Certificates and REMIC I Regular
Interest I-LTA4, 0.290% in the case of each Distribution Date through and
including the Distribution Date on which the aggregate Stated Principal Balance
of the Mortgage Loans (and properties acquired in respect thereof) remaining in
the Trust Fund is reduced to less than 10% of the aggregate Cut-off Date
Principal Balance of the Mortgage Loans and 0.580% in the case of each
Distribution Date thereafter.

                  With respect to the Class A-5 Certificates and REMIC I Regular
Interest I-LTA5, 0.460% in the case of each Distribution Date through and
including the Distribution Date on which the aggregate Stated Principal Balance
of the Mortgage Loans (and properties acquired in respect thereof) remaining in
the Trust Fund is reduced to less than 10% of the aggregate Cut-off Date
Principal Balance of the Mortgage Loans and 0.920% in the case of each
Distribution Date thereafter.

                  With respect to the Class M-1 Certificates and REMIC I Regular
Interest I-LTM1, 0.550% in the case of each Distribution Date through and
including the Distribution Date on which the aggregate Stated Principal Balance
of the Mortgage Loans (and properties acquired in respect thereof) remaining in
the Trust Fund is reduced to less than 10% of the aggregate Cut-off Date
Principal Balance of the Mortgage Loans and 0.825% in the case of each
Distribution Date thereafter.

                  With respect to the Class M-2 Certificates and REMIC I Regular
Interest I-LTM2, 0.580% in the case of each Distribution Date through and
including the Distribution Date on which the aggregate Stated Principal Balance
of the Mortgage Loans (and properties acquired in respect thereof) remaining in
the Trust Fund is reduced to less than 10% of the aggregate Cut-off

                                       14
<PAGE>

Date Principal Balance of the Mortgage Loans and 0.870% in the case of each
Distribution Date thereafter.

                  With respect to the Class M-3 Certificates and REMIC I Regular
Interest I-LTM3, 0.640% in the case of each Distribution Date through and
including the Distribution Date on which the aggregate Stated Principal Balance
of the Mortgage Loans (and properties acquired in respect thereof) remaining in
the Trust Fund is reduced to less than 10% of the aggregate Cut-off Date
Principal Balance of the Mortgage Loans and 0.960% in the case of each
Distribution Date thereafter.

                  With respect to the Class M-4 Certificates and REMIC I Regular
Interest I-LTM4, 0.950% in the case of each Distribution Date through and
including the Distribution Date on which the aggregate Stated Principal Balance
of the Mortgage Loans (and properties acquired in respect thereof) remaining in
the Trust Fund is reduced to less than 10% of the aggregate Cut-off Date
Principal Balance of the Mortgage Loans and 1.425% in the case of each
Distribution Date thereafter.

                  With respect to the Class M-5 Certificates and REMIC I Regular
Interest I-LTM5, 1.020% in the case of each Distribution Date through and
including the Distribution Date on which the aggregate Stated Principal Balance
of the Mortgage Loans (and properties acquired in respect thereof) remaining in
the Trust Fund is reduced to less than 10% of the aggregate Cut-off Date
Principal Balance of the Mortgage Loans and 1.530% in the case of each
Distribution Date thereafter.

                  With respect to the Class M-6 Certificates and REMIC I Regular
Interest I-LTM6, 1.200% in the case of each Distribution Date through and
including the Distribution Date on which the aggregate Stated Principal Balance
of the Mortgage Loans (and properties acquired in respect thereof) remaining in
the Trust Fund is reduced to less than 10% of the aggregate Cut-off Date
Principal Balance of the Mortgage Loans and 1.800% in the case of each
Distribution Date thereafter.

                  With respect to the Class M-7 Certificates and REMIC I Regular
Interest I-LTM7, 1.670% in the case of each Distribution Date through and
including the Distribution Date on which the aggregate Stated Principal Balance
of the Mortgage Loans (and properties acquired in respect thereof) remaining in
the Trust Fund is reduced to less than 10% of the aggregate Cut-off Date
Principal Balance of the Mortgage Loans and 2.505% in the case of each
Distribution Date thereafter.

                  With respect to the Class M-8 Certificates and REMIC I Regular
Interest I-LTM8, 1.800% in the case of each Distribution Date through and
including the Distribution Date on which the aggregate Stated Principal Balance
of the Mortgage Loans (and properties acquired in respect thereof) remaining in
the Trust Fund is reduced to less than 10% of the aggregate Cut-off Date
Principal Balance of the Mortgage Loans and 2.700% in the case of each
Distribution Date thereafter.

                  With respect to the Class M-9 Certificates and REMIC I Regular
Interest I-LTM9, 2.900% in the case of each Distribution Date through and
including the Distribution Date on

                                       15
<PAGE>

which the aggregate Stated Principal Balance of the Mortgage Loans (and
properties acquired in respect thereof) remaining in the Trust Fund is reduced
to less than 10% of the aggregate Cut-off Date Principal Balance of the Mortgage
Loans and 4.350% in the case of each Distribution Date thereafter.

                  With respect to the Class M-10 Certificates and REMIC I
Regular Interest I-LTM10, 3.400% in the case of each Distribution Date through
and including the Distribution Date on which the aggregate Stated Principal
Balance of the Mortgage Loans (and properties acquired in respect thereof)
remaining in the Trust Fund is reduced to less than 10% of the aggregate Cut-off
Date Principal Balance of the Mortgage Loans and 5.100% in the case of each
Distribution Date thereafter.

                  With respect to the Class M-11 Certificates and REMIC I
Regular Interest I-LTM11, 3.500% in the case of each Distribution Date through
and including the Distribution Date on which the aggregate Stated Principal
Balance of the Mortgage Loans (and properties acquired in respect thereof)
remaining in the Trust Fund is reduced to less than 10% of the aggregate Cut-off
Date Principal Balance of the Mortgage Loans and 5.250% in the case of each
Distribution Date thereafter.

                  "Certificateholder" or "Holder": The Person in whose name a
Certificate is registered in the Certificate Register, except that a
Disqualified Organization or a Non-United States Person shall not be a Holder of
a Residual Certificate for any purposes hereof and, solely for the purposes of
giving any consent pursuant to this Agreement, any Certificate registered in the
name of the Depositor or the Servicer or any Affiliate thereof shall be deemed
not to be outstanding and the Voting Rights to which it is entitled shall not be
taken into account in determining whether the requisite percentage of Voting
Rights necessary to effect any such consent has been obtained, except as
otherwise provided in Section 11.01. The Trustee and the NIMS Insurer may
conclusively rely upon a certificate of the Depositor or the Servicer in
determining whether a Certificate is held by an Affiliate thereof. All
references herein to "Holders" or "Certificateholders" shall reflect the rights
of Certificate Owners as they may indirectly exercise such rights through the
Depository and participating members thereof, except as otherwise specified
herein; provided, however, that the Trustee and the NIMS Insurer shall be
required to recognize as a "Holder" or "Certificateholder" only the Person in
whose name a Certificate is registered in the Certificate Register.

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

                  "Certificate Principal Balance": With respect to each Class A
Certificate, Mezzanine Certificate or Class P Certificate as of any date of
determination, the Certificate Principal Balance of such Certificate on the
Distribution Date immediately prior to such date of determination plus any
Subsequent Recoveries added to the Certificate Principal Balance of such
Certificate pursuant to Section 4.01, minus all distributions allocable to
principal made thereon and Realized Losses allocated thereto on such immediately
prior Distribution Date (or, in the case of any date of determination up to and
including the first Distribution Date, the initial

                                       16
<PAGE>

Certificate Principal Balance of such Certificate, as stated on the face
thereof). With respect to each Class CE Certificate as of any date of
determination, an amount equal to the Percentage Interest evidenced by such
Certificate times the excess, if any, of (A) the then aggregate Uncertificated
Balance of the REMIC I Regular Interests over (B) the then aggregate Certificate
Principal Balance of the Class A Certificates, the Mezzanine Certificates and
the Class P Certificates then outstanding.

                  "Certificate Register": The register maintained pursuant to
Section 5.02.

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

                  "Class A Certificates": Any Class A-1 Certificate, Class A-2
Certificate, Class A-3 Certificate, Class A-4 Certificate or Class A-5
Certificate.

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

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

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

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

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

                  "Class CE Certificate": Any one of the Class CE Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-17 and evidencing a Regular Interest in REMIC III
for purposes of the REMIC Provisions.

                  "Class CE Interest": An uncertificated interest in the Trust
Fund held by the Trustee on behalf of the Holders of the Class CE Certificates,
evidencing a Regular Interest in REMIC II for purposes of the REMIC Provisions.

                  "Class M-1 Certificate": Any one of the Class M-1 Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-6 and evidencing a Regular Interest in REMIC II for
purposes of the REMIC Provisions.

                  "Class M-1 Principal Distribution Amount": The excess of (x)
the sum of (i) the aggregate Certificate Principal Balance of the Class A
Certificates (after taking into account the

                                       17
<PAGE>

distribution of the Senior Principal Distribution Amount on such Distribution
Date) and (ii) the Certificate Principal Balance of the Class M-1 Certificates
immediately prior to such Distribution Date over (y) the lesser of (A) the
product of (i) 68.40% and (ii) the aggregate Stated Principal Balance of the
Mortgage Loans as of the last day of the related Due Period (after giving effect
to scheduled payments of principal due during the related Due Period, to the
extent received or advanced, and unscheduled collections of principal received
during the related Prepayment Period) and (B) the excess of the aggregate Stated
Principal Balance of the Mortgage Loans as of the last day of the related Due
Period (after giving effect to scheduled payments of principal due during the
related Due Period, to the extent received or advanced, and unscheduled
collections of principal received during the related Prepayment Period) over
$3,724,854.40 .

                  "Class M-2 Certificate": Any one of the Class M-2 Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-7 and evidencing a Regular Interest in REMIC II for
purposes of the REMIC Provisions.

                  "Class M-2 Principal Distribution Amount": With respect to any
Distribution Date, the excess of (x) the sum of (i) the aggregate Certificate
Principal Balance of the Class A Certificates (after taking into account the
distribution of the Senior Principal Distribution Amount on such Distribution
Date), (ii) the Certificate Principal Balance of the Class M-1 Certificates
(after taking into account the distribution of the Class M-1 Principal
Distribution Amount on such Distribution Date) and (iii) the Certificate
Principal Balance of the Class M-2 Certificates immediately prior to such
Distribution Date over (y) the lesser of (A) the product of (i) 74.50% and (ii)
the aggregate Stated Principal Balance of the Mortgage Loans as of the last day
of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period) and (B) the excess of the aggregate Stated Principal Balance of the
Mortgage Loans as of the last day of the related Due Period (after giving effect
to scheduled payments of principal due during the related Due Period, to the
extent received or advanced, and unscheduled collections of principal received
during the related Prepayment Period) over $3,724,854.40 .

                  "Class M-3 Certificate": Any one of the Class M-3 Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-8 and evidencing a Regular Interest in REMIC II for
purposes of the REMIC Provisions.

                  "Class M-3 Principal Distribution Amount": With respect to any
Distribution Date, the excess of (x) the sum of (i) the aggregate Certificate
Principal Balance of the Class A Certificates (after taking into account the
distribution of the Senior Principal Distribution Amount on such Distribution
Date), (ii) the Certificate Principal Balance of the Class M-1 Certificates
(after taking into account the distribution of the Class M-1 Principal
Distribution Amount on such Distribution Date), (iii) the Certificate Principal
Balance of the Class M-2 Certificates (after taking into account the
distribution of the Class M-2 Principal Distribution Amount on such Distribution
Date) and (iv) the Certificate Principal Balance of the Class M-3 Certificates
immediately prior to such Distribution Date over (y) the lesser of (A) the
product of (i) 78.20% and (ii) the aggregate Stated Principal Balance of the
Mortgage Loans as of the last day of the related Due Period (after giving effect
to scheduled payments of principal due during the related Due Period, to the
extent received or advanced, and unscheduled collections of

                                       18
<PAGE>

principal received during the related Prepayment Period) and (B) the excess of
the aggregate Stated Principal Balance of the Mortgage Loans as of the last day
of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period) over $3,724,854.40 .

                  "Class M-4 Certificate": Any one of the Class M-4 Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-9 and evidencing a Regular Interest in REMIC II for
purposes of the REMIC Provisions.

                  "Class M-4 Principal Distribution Amount": With respect to any
Distribution Date, the excess of (x) the sum of (i) the aggregate Certificate
Principal Balance of the Class A Certificates (after taking into account the
distribution of the Senior Principal Distribution Amount on such Distribution
Date), (ii) the Certificate Principal Balance of the Class M-1 Certificates
(after taking into account the distribution of the Class M-1 Principal
Distribution Amount on such Distribution Date), (iii) the Certificate Principal
Balance of the Class M-2 Certificates (after taking into account the
distribution of the Class M-2 Principal Distribution Amount on such Distribution
Date), (iv) the Certificate Principal Balance of the Class M-3 Certificates
(after taking into account the distribution of the Class M-3 Principal
Distribution Amount on such Distribution Date) and (v) the Certificate Principal
Balance of the Class M-4 Certificates immediately prior to such Distribution
Date over (y) the lesser of (A) the product of (i) 87.10% and (ii) the aggregate
Stated Principal Balance of the Mortgage Loans as of the last day of the related
Due Period (after giving effect to scheduled payments of principal due during
the related Due Period, to the extent received or advanced, and unscheduled
collections of principal received during the related Prepayment Period) and (B)
the excess of the aggregate Stated Principal Balance of the Mortgage Loans as of
the last day of the related Due Period (after giving effect to scheduled
payments of principal due during the related Due Period, to the extent received
or advanced, and unscheduled collections of principal received during the
related Prepayment Period) over $3,724,854.40 .

                  "Class M-5 Certificate": Any one of the Class M-5 Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-10 and evidencing a Regular Interest in REMIC II for
purposes of the REMIC Provisions.

                  "Class M-5 Principal Distribution Amount": With respect to any
Distribution Date, the excess of (x) the sum of (i) the aggregate Certificate
Principal Balance of the Class A Certificates (after taking into account the
distribution of the Senior Principal Distribution Amount on such Distribution
Date), (ii) the Certificate Principal Balance of the Class M-1 Certificates
(after taking into account the distribution of the Class M-1 Principal
Distribution Amount on such Distribution Date), (iii) the Certificate Principal
Balance of the Class M-2 Certificates (after taking into account the
distribution of the Class M-2 Principal Distribution Amount on such Distribution
Date), (iv) the Certificate Principal Balance of the Class M-3 Certificates
(after taking into account the distribution of the Class M-3 Principal
Distribution Amount on such Distribution Date), (v) the Certificate Principal
Balance of the Class M-4 Certificates (after taking into account the
distribution of the Class M-4 Principal Distribution Amount on such Distribution
Date) and (vi) the Certificate Principal Balance of the Class M-5 Certificates
immediately prior to such Distribution Date over (y) the lesser of (A) the
product of

                                       19
<PAGE>

(i) 84.90% and (ii) the aggregate Stated Principal Balance of the Mortgage Loans
as of the last day of the related Due Period (after giving effect to scheduled
payments of principal due during the related Due Period, to the extent received
or advanced, and unscheduled collections of principal received during the
related Prepayment Period) and (B) the excess of the aggregate Stated Principal
Balance of the Mortgage Loans as of the last day of the related Due Period
(after giving effect to scheduled payments of principal due during the related
Due Period, to the extent received or advanced, and unscheduled collections of
principal received during the related Prepayment Period) over $3,724,854.40 .

                  "Class M-6 Certificate": Any one of the Class M-6 Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-11 and evidencing a Regular Interest in REMIC II for
purposes of the REMIC Provisions.

                  "Class M-6 Principal Distribution Amount": With respect to any
Distribution Date, the excess of (x) the sum of (i) the aggregate Certificate
Principal Balance of the Class A Certificates (after taking into account the
distribution of the Senior Principal Distribution Amount on such Distribution
Date), (ii) the Certificate Principal Balance of the Class M-1 Certificates
(after taking into account the distribution of the Class M-1 Principal
Distribution Amount on such Distribution Date), (iii) the Certificate Principal
Balance of the Class M-2 Certificates (after taking into account the
distribution of the Class M-2 Principal Distribution Amount on such Distribution
Date), (iv) the Certificate Principal Balance of the Class M-3 Certificates
(after taking into account the distribution of the Class M-3 Principal
Distribution Amount on such Distribution Date), (v) the Certificate Principal
Balance of the Class M-4 Certificates (after taking into account the
distribution of the Class M-4 Principal Distribution Amount on such Distribution
Date), (vi) the Certificate Principal Balance of the Class M-5 Certificates
(after taking into account the distribution of the Class M-5 Principal
Distribution Amount on such Distribution Date) and (vii) the Certificate
Principal Balance of the Class M-6 Certificates immediately prior to such
Distribution Date over (y) the lesser of (A) the product of (i) 87.70% and (ii)
the aggregate Stated Principal Balance of the Mortgage Loans as of the last day
of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period) and (B) the excess of the aggregate Stated Principal Balance of the
Mortgage Loans as of the last day of the related Due Period (after giving effect
to scheduled payments of principal due during the related Due Period, to the
extent received or advanced, and unscheduled collections of principal received
during the related Prepayment Period) over $3,724,854.40 .

                  "Class M-7 Certificate": Any one of the Class M-7 Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-12 and evidencing a Regular Interest in REMIC II for
purposes of the REMIC Provisions.

                  "Class M-7 Principal Distribution Amount": With respect to any
Distribution Date, the excess of (x) the sum of (i) the aggregate Certificate
Principal Balance of the Class A Certificates (after taking into account the
distribution of the Senior Principal Distribution Amount on such Distribution
Date), (ii) the Certificate Principal Balance of the Class M-1 Certificates
(after taking into account the distribution of the Class M-1 Principal
Distribution Amount on such Distribution Date), (iii) the Certificate Principal
Balance of the Class M-2

                                       20
<PAGE>

Certificates (after taking into account the distribution of the Class M-2
Principal Distribution Amount on such Distribution Date), (iv) the Certificate
Principal Balance of the Class M-3 Certificates (after taking into account the
distribution of the Class M-3 Principal Distribution Amount on such Distribution
Date), (v) the Certificate Principal Balance of the Class M-4 Certificates
(after taking into account the distribution of the Class M-4 Principal
Distribution Amount on such Distribution Date), (vi) the Certificate Principal
Balance of the Class M-5 Certificates (after taking into account the
distribution of the Class M-5 Principal Distribution Amount on such Distribution
Date), (vii) the Certificate Principal Balance of the Class M-6 Certificates
(after taking into account the distribution of the Class M-6 Principal
Distribution Amount on such Distribution Date) and (viii) the Certificate
Principal Balance of the Class M-7 Certificates immediately prior to such
Distribution Date over (y) the lesser of (A) the product of (i) 89.70% and (ii)
the aggregate Stated Principal Balance of the Mortgage Loans as of the last day
of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period) and (B) the excess of the aggregate Stated Principal Balance of the
Mortgage Loans as of the last day of the related Due Period (after giving effect
to scheduled payments of principal due during the related Due Period, to the
extent received or advanced, and unscheduled collections of principal received
during the related Prepayment Period) over $3,724,854.40 .

                  "Class M-8 Certificate": Any one of the Class M-8 Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-13 and evidencing a Regular Interest in REMIC II for
purposes of the REMIC Provisions.

                  "Class M-8 Principal Distribution Amount": With respect to any
Distribution Date, the excess of (x) the sum of (i) the aggregate Certificate
Principal Balance of the Class A Certificates (after taking into account the
distribution of the Senior Principal Distribution Amount on such Distribution
Date), (ii) the Certificate Principal Balance of the Class M-1 Certificates
(after taking into account the distribution of the Class M-1 Principal
Distribution Amount on such Distribution Date), (iii) the Certificate Principal
Balance of the Class M-2 Certificates (after taking into account the
distribution of the Class M-2 Principal Distribution Amount on such Distribution
Date), (iv) the Certificate Principal Balance of the Class M-3 Certificates
(after taking into account the distribution of the Class M-3 Principal
Distribution Amount on such Distribution Date), (v) the Certificate Principal
Balance of the Class M-4 Certificates (after taking into account the
distribution of the Class M-4 Principal Distribution Amount on such Distribution
Date), (vi) the Certificate Principal Balance of the Class M-5 Certificates
(after taking into account the distribution of the Class M-5 Principal
Distribution Amount on such Distribution Date), (vii) the Certificate Principal
Balance of the Class M-6 Certificates (after taking into account the
distribution of the Class M-6 Principal Distribution Amount on such Distribution
Date), (viii) the Certificate Principal Balance of the Class M-7 Certificates
(after taking into account the distribution of the Class M-7 Principal
Distribution Amount on such Distribution Date) and (ix) the Certificate
Principal Balance of the Class M-8 Certificates immediately prior to such
Distribution Date over (y) the lesser of (A) the product of (i) 91.70% and (ii)
the aggregate Stated Principal Balance of the Mortgage Loans as of the last day
of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period) and (B) the excess of the aggregate

                                       21
<PAGE>

Stated Principal Balance of the Mortgage Loans as of the last day of the related
Due Period (after giving effect to scheduled payments of principal due during
the related Due Period, to the extent received or advanced, and unscheduled
collections of principal received during the related Prepayment Period) over
$3,724,854.40 .

                  "Class M-9 Certificate": Any one of the Class M-9 Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-14 and evidencing a Regular Interest in REMIC II for
purposes of the REMIC Provisions.

                  "Class M-9 Principal Distribution Amount": With respect to any
Distribution Date, the excess of (x) the sum of (i) the aggregate Certificate
Principal Balance of the Class A Certificates (after taking into account the
distribution of the Senior Principal Distribution Amount on such Distribution
Date), (ii) the Certificate Principal Balance of the Class M-1 Certificates
(after taking into account the distribution of the Class M-1 Principal
Distribution Amount on such Distribution Date), (iii) the Certificate Principal
Balance of the Class M-2 Certificates (after taking into account the
distribution of the Class M-2 Principal Distribution Amount on such Distribution
Date), (iv) the Certificate Principal Balance of the Class M-3 Certificates
(after taking into account the distribution of the Class M-3 Principal
Distribution Amount on such Distribution Date), (v) the Certificate Principal
Balance of the Class M-4 Certificates (after taking into account the
distribution of the Class M-4 Principal Distribution Amount on such Distribution
Date), (vi) the Certificate Principal Balance of the Class M-5 Certificates
(after taking into account the distribution of the Class M-5 Principal
Distribution Amount on such Distribution Date), (vii) the Certificate Principal
Balance of the Class M-6 Certificates (after taking into account the
distribution of the Class M-6 Principal Distribution Amount on such Distribution
Date), (viii) the Certificate Principal Balance of the Class M-7 Certificates
(after taking into account the distribution of the Class M-7 Principal
Distribution Amount on such Distribution Date), (ix) the Certificate Principal
Balance of the Class M-8 Certificates (after taking into account the
distribution of the Class M-8 Principal Distribution Amount on such Distribution
Date) and (x) the Certificate Principal Balance of the Class M-9 Certificates
immediately prior to such Distribution Date over (y) the lesser of (A) the
product of (i) 93.70% and (ii) the aggregate Stated Principal Balance of the
Mortgage Loans as of the last day of the related Due Period (after giving effect
to scheduled payments of principal due during the related Due Period, to the
extent received or advanced, and unscheduled collections of principal received
during the related Prepayment Period) and (B) the excess of the aggregate Stated
Principal Balance of the Mortgage Loans as of the last day of the related Due
Period (after giving effect to scheduled payments of principal due during the
related Due Period, to the extent received or advanced, and unscheduled
collections of principal received during the related Prepayment Period) over
$3,724,854.40 .

                  "Class M-10 Certificate": Any one of the Class M-10
Certificates executed, authenticated and delivered by the Trustee, substantially
in the form annexed hereto as Exhibit A-15 and evidencing a Regular Interest in
REMIC II for purposes of the REMIC Provisions.

                  "Class M-10 Principal Distribution Amount": With respect to
any Distribution Date, the excess of (x) the sum of (i) the aggregate
Certificate Principal Balance of the Class A Certificates (after taking into
account the distribution of the Senior Principal Distribution Amount on such
Distribution Date), (ii) the Certificate Principal Balance of the Class M-1
Certificates (after taking into account the distribution of the Class M-1

                                       22
<PAGE>

Principal Distribution Amount on such Distribution Date), (iii) the Certificate
Principal Balance of the Class M-2 Certificates (after taking into account the
distribution of the Class M-2 Principal Distribution Amount on such Distribution
Date), (iv) the Certificate Principal Balance of the Class M-3 Certificates
(after taking into account the distribution of the Class M-3 Principal
Distribution Amount on such Distribution Date), (v) the Certificate Principal
Balance of the Class M-4 Certificates (after taking into account the
distribution of the Class M-4 Principal Distribution Amount on such Distribution
Date), (vi) the Certificate Principal Balance of the Class M-5 Certificates
(after taking into account the distribution of the Class M-5 Principal
Distribution Amount on such Distribution Date), (vii) the Certificate Principal
Balance of the Class M-6 Certificates (after taking into account the
distribution of the Class M-6 Principal Distribution Amount on such Distribution
Date), (viii) the Certificate Principal Balance of the Class M-7 Certificates
(after taking into account the distribution of the Class M-7 Principal
Distribution Amount on such Distribution Date), (ix) the Certificate Principal
Balance of the Class M-8 Certificates (after taking into account the
distribution of the Class M-8 Principal Distribution Amount on such Distribution
Date), (x) the Certificate Principal Balance of the Class M-9 Certificates
(after taking into account the distribution of the Class M-9 Principal
Distribution Amount on such Distribution Date) and (xi) the Certificate
Principal Balance of the Class M-10 Certificates immediately prior to such
Distribution Date over (y) the lesser of (A) the product of (i) 95.30% and (ii)
the aggregate Stated Principal Balance of the Mortgage Loans as of the last day
of the related Due Period (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period) and (B) the excess of the aggregate Stated Principal Balance of the
Mortgage Loans as of the last day of the related Due Period (after giving effect
to scheduled payments of principal due during the related Due Period, to the
extent received or advanced, and unscheduled collections of principal received
during the related Prepayment Period) over $3,724,854.40 .

                  "Class M-11 Certificate": Any one of the Class M-11
Certificates executed, authenticated and delivered by the Trustee, substantially
in the form annexed hereto as Exhibit A-16 and evidencing a Regular Interest in
REMIC II for purposes of the REMIC Provisions.

                  "Class M-11 Principal Distribution Amount": With respect to
any Distribution Date, the excess of (x) the sum of (i) the aggregate
Certificate Principal Balance of the Class A Certificates (after taking into
account the distribution of the Senior Principal Distribution Amount on such
Distribution Date), (ii) the Certificate Principal Balance of the Class M-1
Certificates (after taking into account the distribution of the Class M-1
Principal Distribution Amount on such Distribution Date), (iii) the Certificate
Principal Balance of the Class M-2 Certificates (after taking into account the
distribution of the Class M-2 Principal Distribution Amount on such Distribution
Date), (iv) the Certificate Principal Balance of the Class M-3 Certificates
(after taking into account the distribution of the Class M-3 Principal
Distribution Amount on such Distribution Date), (v) the Certificate Principal
Balance of the Class M-4 Certificates (after taking into account the
distribution of the Class M-4 Principal Distribution Amount on such Distribution
Date), (vi) the Certificate Principal Balance of the Class M-5 Certificates
(after taking into account the distribution of the Class M-5 Principal
Distribution Amount on such Distribution Date), (vii) the Certificate Principal
Balance of the Class M-6 Certificates (after taking into account the
distribution of the Class M-6 Principal Distribution

                                       23
<PAGE>

Amount on such Distribution Date), (viii) the Certificate Principal Balance of
the Class M-7 Certificates (after taking into account the distribution of the
Class M-7 Principal Distribution Amount on such Distribution Date), (ix) the
Certificate Principal Balance of the Class M-8 Certificates (after taking into
account the distribution of the Class M-8 Principal Distribution Amount on such
Distribution Date), (x) the Certificate Principal Balance of the Class M-9
Certificates (after taking into account the distribution of the Class M-9
Principal Distribution Amount on such Distribution Date), (xi) the Certificate
Principal Balance of the Class M-10 Certificates (after taking into account the
distribution of the Class M-10 Principal Distribution Amount on such
Distribution Date) and (xii) the Certificate Principal Balance of the Class M-11
Certificates immediately prior to such Distribution Date over (y) the lesser of
(A) the product of (i) 97.40% and (ii) the aggregate Stated Principal Balance of
the Mortgage Loans as of the last day of the related Due Period (after giving
effect to scheduled payments of principal due during the related Due Period, to
the extent received or advanced, and unscheduled collections of principal
received during the related Prepayment Period) and (B) the excess of the
aggregate Stated Principal Balance of the Mortgage Loans as of the last day of
the related Due Period (after giving effect to scheduled payments of principal
due during the related Due Period, to the extent received or advanced, and
unscheduled collections of principal received during the related Prepayment
Period) over $3,724,854.40.

                  "Class P Certificate": Any one of the Class P Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-18 and evidencing a Regular Interest in REMIC IV for
purposes of the REMIC Provisions.

                  "Class P Interest": An uncertificated interest in the Trust
Fund held by the Trustee on behalf of the Holders of the Class P Certificates,
evidencing a Regular Interest in REMIC II for purposes of the REMIC Provisions.

                  "Class R Certificate": Any one of the Class R Certificates
executed, authenticated and delivered by the Trustee, substantially in the form
annexed hereto as Exhibit A-19 and evidencing the ownership of the Class R-I
Interest and the Class R-II Interest.

                  "Class R-X Certificate": The Class R-X Certificate executed,
authenticated and delivered by the Trustee, substantially in the form annexed
hereto as Exhibit A-20 and evidencing the ownership of the Class R-III Interest
and the Class R-IV Interest.

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

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

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

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

                  "Closing Date": December 21, 2004.

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

                                       24
<PAGE>

                  "Collection Account": The account or accounts created and
maintained, or caused to be created and maintained, by the Servicer pursuant to
Section 3.10(a), which shall be entitled "HomEq Servicing Corporation, as
Servicer for U.S. Bank National Association, as Trustee, in trust for the
registered holders of MASTR Asset Backed Securities Trust 2004-WMC3, Mortgage
Pass-Through Certificates." The Collection Account must be an Eligible Account.

                  "Commission":  The Securities and Exchange Commission.

                  "Compensating Interest": As defined in Section 3.24 hereof.

                  "Corporate Trust Office": The principal corporate trust office
of the Trustee at which at any particular time its corporate trust business in
connection with this Agreement shall be administered, which office, at the date
of the execution of this instrument is located at 60 Livingston Avenue, St.
Paul, Minnesota 55107, Attention: Structured Finance/MASTR 2004-WMC3, or at such
other address as the Trustee may designate from time to time by notice to the
Certificateholders, the Depositor, the Servicer and the Originator.

                  "Corresponding Certificate": With respect to each REMIC I
Regular Interest set forth below, the corresponding Regular Certificate set
forth in the table below:

        REMIC I REGULAR INTEREST                  REGULAR CERTIFICATE
        -------------------------------------------------------------
                 I-LTA1                                Class A-1
                 I-LTA2                                Class A-2
                 I-LTA3                                Class A-3
                 I-LTA4                                Class A-4
                 I-LTA5                                Class A-5
                 I-LTM1                                Class M-1
                 I-LTM2                                Class M-2
                 I-LTM3                                Class M-3
                 I-LTM4                                Class M-4
                 I-LTM5                                Class M-5
                 I-LTM6                                Class M-6
                 I-LTM7                                Class M-7
                 I-LTM8                                Class M-8
                 I-LTM9                                Class M-9
                I-LTM10                                Class M-10
                I-LTM11                                Class M-11
                 I-LTP                                  Class P

                  "Credit Enhancement Percentage": For any Distribution Date,
the percentage equivalent of a fraction, the numerator of which is the sum of
the aggregate Certificate Principal Balances of the Mezzanine Certificates and
the Class CE Certificates, and the denominator of which is the aggregate Stated
Principal Balance of the Mortgage Loans, calculated prior to taking into account
distributions of principal on the Mortgage Loans and distribution of the Group I
Principal Distribution Amount and the Group II Principal Distribution Amount to
the Certificates then entitled to distributions of principal on such
Distribution Date.

                                       25
<PAGE>

                  "Cumulative Loss Percentage": With respect to any Distribution
Date, the percentage equivalent of a fraction, the numerator of which is the
aggregate amount of Realized Losses incurred from the Cut-off Date to the last
day of the preceding calendar month and the denominator of which is the sum of
the aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off
Date.

                  "Custodial Agreement": The custodial agreement, dated December
1, 2004, entered into among the Trustee, the Custodian and the Servicer in the
form of Exhibit K attached hereto.

                  "Custodian": Wells Fargo Bank, N.A., a national banking
association, or its successor in interest as Custodian pursuant to the Custodial
Agreement.

                  "Cut-off Date": With respect to each Original Mortgage Loan,
December 1, 2004. With respect to all Qualified Substitute Mortgage Loans, their
respective dates of substitution. References herein to the "Cut-off Date," when
used with respect to more than one Mortgage Loan, shall be to the respective
Cut-off Dates for such Mortgage Loans.

                  "Cut-off Date Principal Balance": With respect to any Mortgage
Loan, the unpaid principal balance thereof as of the Cut-off Date of such
Mortgage Loan (or as of the applicable date of substitution with respect to a
Qualified Substitute Mortgage Loan), after giving effect to scheduled payments
due on or before the Cut-off Date, whether or not received.

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

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

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

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

                  "Delinquency Percentage": As of the last day of the related
Due Period, the percentage equivalent of a fraction, the numerator of which is
the aggregate Stated Principal Balance of all Mortgage Loans that, as of the
last day of the previous calendar month, are 60 or more days delinquent, are in
foreclosure, have been converted to REO Properties or have been discharged by
reason of bankruptcy, and the denominator of which is the aggregate Stated
Principal Balance of the Mortgage Loans and REO Properties as of the last day of
the previous calendar month.

                  "Depositor": Mortgage Asset Securitization Transactions, Inc.,
a Delaware corporation, or its successor in interest.

                                       26
<PAGE>

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

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

                  "Determination Date": With respect to any Distribution Date,
the 15th day of the calendar month in which such Distribution Date occurs or, if
such 15th day is not a Business Day, the Business Day immediately preceding such
15th day.

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

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

                  "Distribution Account": The trust account or accounts created
and maintained by the Trustee pursuant to Section 3.10(b) which shall be
entitled "U.S. Bank National Association, as Trustee, in trust for the
registered holders of MASTR Asset Backed Securities Trust 2004-

                                       27
<PAGE>

WMC3, Mortgage Pass-Through Certificates, Series 2004-WMC3." The Distribution
Account must be an Eligible Account.

                  "Distribution Date": The 25th day of any month, or if such
25th day is not a Business Day, the Business Day immediately following such 25th
day, commencing in August 2004.

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

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

                  "Eligible Account": Any of (i) an account or accounts
maintained with a federal or state chartered depository institution or trust
company the short-term unsecured debt obligations of which (or, in the case of a
depository institution or trust company that is the principal subsidiary of a
holding company, the short-term unsecured debt obligations of such holding
company) are rated P-1 by Moody's or A-1+ by S&P (or comparable ratings if
Moody's and S&P are not the Rating Agencies) at the time any amounts are held on
deposit therein, (ii) with respect to any Escrow Account, an account or accounts
the deposits in which are fully insured by the FDIC (to the limits established
by such corporation), the uninsured deposits in which account are otherwise
secured such that, as evidenced by an Opinion of Counsel delivered to the NIMS
Insurer, the Trustee and to each Rating Agency, the Certificateholders will have
a claim with respect to the funds in such account or a perfected first priority
security interest against such collateral (which shall be limited to Permitted
Investments) securing such funds that is superior to claims of any other
depositors or creditors of the depository institution with which such account is
maintained, (iii) a trust account or accounts maintained with the trust
department of a federal or state chartered depository institution, national
banking association or trust company acting in its fiduciary capacity or (iv) an
account otherwise acceptable to the NIMS Insurer and to each Rating Agency
without reduction or withdrawal of their then current ratings of the
Certificates as evidenced by a letter from each Rating Agency to the Trustee and
the NIMS Insurer. Eligible Accounts may bear interest.

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

                  "Escrow Payments": The amounts constituting ground rents,
taxes, assessments, water rates, fire and hazard insurance premiums and other
payments required to be escrowed by the Mortgagor with the mortgagee pursuant to
any Mortgage Loan.

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

                  "Excess Overcollateralized Amount": With respect to the Class
A Certificates and the Mezzanine Certificates and any Distribution Date, the
excess, if any, of (i) the Overcollateralized Amount for such Distribution Date,
assuming that 100% of the Principal

                                       28
<PAGE>

Remittance Amount is applied as a principal distribution on such Distribution
Date over (ii) the Overcollateralization Target Amount for such Distribution
Date.

                  "Extra Principal Distribution Amount": With respect to any
Distribution Date, the lesser of (x) the Monthly Interest Distributable Amount
payable on the Class CE Certificates on such Distribution Date as reduced by
Realized Losses allocated thereto with respect to such Distribution Date
pursuant to Section 4.04 and (y) the Overcollateralization Deficiency Amount for
such Distribution Date.

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

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

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

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

                  "Fixed-Rate Mortgage Loan": Each of the Mortgage Loans
identified in the Mortgage Loan Schedule as having a Mortgage Rate that is fixed
for the entire term of the Mortgage Loan..

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

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

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

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

                                       29
<PAGE>

                  "Group I Basic Principal Distribution Amount": With respect to
any Distribution Date, the excess of (i) the Group I Principal Remittance Amount
for such Distribution Date over (ii)(a) the Overcollateralization Release
Amount, if any, for such Distribution Date multiplied by (b) the Group I
Allocation Percentage.

                  "Group I Cap Contract": The cap contract between the Trustee
and the counterparty thereunder relating to the Group I Certificates.

                  "Group II Cap Contract": The cap contract between the Trustee
and the counterparty thereunder relating to the Group II Certificates.

                  "Group I Certificates": The Class A-1 Certificates and the
Class A-2 Certificates.

                  "Group I Interest Remittance Amount": With respect to any
Distribution Date, that portion of the Available Funds for such Distribution
Date attributable to interest received or advanced with respect to the Group I
Mortgage Loans.

                  "Group I Mortgage Loan": A Mortgage Loan assigned to Loan
Group I with a principal balance that conforms to Fannie Mae and Freddie Mac
loan limits.

                  "Group I Principal Distribution Amount": With respect to any
Distribution Date, the sum of (i) the Group I Basic Principal Distribution
Amount for such Distribution Date and (ii)(a) the Extra Principal Distribution
Amount for such Distribution Date multiplied by (b) the Group I Allocation
Percentage.
                  "Group I Principal Remittance Amount": With respect to any
Distribution Date, the sum of (i) each scheduled payment of principal collected
or advanced on the Group I Mortgage Loans by the Servicer that were due during
the related Due Period, (ii) the principal portion of all partial and full
Principal Prepayments of the Group I Mortgage Loans applied by the Servicer
during the related Prepayment Period, (iii) the principal portion of all related
Net Liquidation Proceeds, Insurance Proceeds and Subsequent Recoveries received
during such Prepayment Period with respect to the Group I Mortgage Loans, (iv)
that portion of the Purchase Price, representing principal of any repurchased
Group I Mortgage Loan, deposited to the Collection Account during such
Prepayment Period, (v) the principal portion of any related Substitution
Adjustment Amounts deposited in the Collection Account during such Prepayment
Period with respect to the Group I Mortgage Loans and (vi) on the Distribution
Date on which the Trust Fund is to be terminated pursuant to Section 9.01, that
portion of the Termination Price, in respect of principal on the Group I
Mortgage Loans.

                  "Group I Senior Principal Distribution Amount": The excess of
(x) the Certificate Principal Balance of the Class A-1 Certificates immediately
prior to such Distribution Date over (y) the lesser of (A) the product of (i)
62.00% and (ii) the aggregate Stated Principal Balance of the Group I Mortgage
Loans as of the last day of the related Due Period (after giving effect to
scheduled payments of principal due during the related Due Period, to the extent
received or advanced, and unscheduled collections of principal received during
the related Prepayment Period) and (B) the excess of the aggregate Stated
Principal Balance of the Group I Mortgage Loans as of the last day of the
related Due Period (after giving effect to scheduled payments of

                                       30
<PAGE>

principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period) over $1,924,886.66.

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

                  "Group II Basic Principal Distribution Amount": With respect
to any Distribution Date, the excess of (i) the Group II Principal Remittance
Amount for such Distribution Date over (ii)(a) the Overcollateralization Release
Amount, if any, for such Distribution Date multiplied by (b) the Group II
Allocation Percentage.

                  "Group II Certificates": The Class A-3 Certificates, the Class
A-4 Certificates and the Class A-5 Certificates.

                  "Group II Interest Remittance Amount": With respect to any
Distribution Date, that portion of the Available Funds for such Distribution
Date attributable to interest received or advanced with respect to the Group II
Mortgage Loans.

                  "Group II Mortgage Loan": A Mortgage Loan assigned to Loan
Group II with a principal balance that conforms to Fannie Mae and Freddie Mac
loan limits.

                  "Group II Principal Distribution Amount": With respect to any
Distribution Date, the sum of (i) the Group II Basic Principal Distribution
Amount for such Distribution Date and (ii)(a) the Extra Principal Distribution
Amount for such Distribution Date multiplied by (b) the Group II Allocation
Percentage.

                  "Group II Principal Remittance Amount": With respect to any
Distribution Date, the sum of (i) each scheduled payment of principal collected
or advanced on the Group II Mortgage Loans by the Servicer that were due during
the related Due Period, (ii) the principal portion of all partial and full
principal prepayments of the Group II Mortgage Loans applied by the Servicer
during the related Prepayment Period, (iii) the principal portion of all related
Net Liquidation Proceeds, Insurance Proceeds and Subsequent Recoveries received
during such Prepayment Period with respect to the Group II Mortgage Loans, (iv)
that portion of the Purchase Price, representing principal of any repurchased
Group II Mortgage Loan, deposited to the Collection Account during such
Prepayment Period, (v) the principal portion of any related Substitution
Adjustment Amounts deposited in the Collection Account during such Prepayment
Period with respect to the Group II Mortgage Loans and (vi) on the Distribution
Date on which the Trust Fund is to be terminated pursuant to Section 9.01, that
portion of the Termination Price, in respect of principal on the Group II
Mortgage Loans.

                  "Group II Senior Principal Distribution Amount": The excess of
(x) the Certificate Principal Balance of the Class A-2 Certificates immediately
prior to such Distribution Date over (y) the lesser of (A) the product of (i)
62.00% and (ii) the aggregate Stated Principal Balance of the Group II Mortgage
Loans as of the last day of the related Due Period (after giving effect to
scheduled payments of principal due during the related Due Period, to the extent

                                       31
<PAGE>

received or advanced, and unscheduled collections of principal received during
the related Prepayment Period) and (B) the excess of the aggregate Stated
Principal Balance of the Group II Mortgage Loans as of the last day of the
related Due Period (after giving effect to scheduled payments of principal due
during the related Due Period, to the extent received or advanced, and
unscheduled collections of principal received during the related Prepayment
Period) over $1,799,967.74.

                  "Highest Priority": As of any date of determination, the Class
of Mezzanine Certificates then outstanding with a Certificate Principal Balance
greater than zero, with the highest priority for payments pursuant to Section
4.01, in the following order: Class M-1, Class M-2, Class M-3, Class M-4, Class
M-5, Class M-6, Class M-7, Class M-8, Class M-9, Class M-10 and Class M-11
Certificates.

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

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

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

                  "Index": With respect to each Adjustable Rate Mortgage Loan
and with respect to each related Adjustment Date, the index as specified in the
related Mortgage Note.

                                       32
<PAGE>

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

                  "Interest Determination Date": With respect to the Class A
Certificates, the Mezzanine Certificates, REMIC I Regular Interest I-LTA1, REMIC
I Regular Interest I-LTA2, REMIC I Regular Interest I-LTA3, REMIC I Regular
Interest I-LTA4, REMIC I Regular Interest I-LTA5, REMIC I Regular Interest
I-LTM1, REMIC I Regular Interest I-LTM2, REMIC I Regular Interest I-LTM3, REMIC
I Regular Interest I-LTM4, REMIC I Regular Interest I-LTM5, REMIC I Regular
Interest I-LTM6, REMIC I Regular Interest I-LTM7, REMIC I Regular Interest
I-LTM8, REMIC I Regular Interest I-LTM9, REMIC I Regular Interest I-LTM10 and
REMIC I Regular Interest I-LTM11 and any Accrual Period therefor, the second
London Business Day preceding the commencement of such Accrual Period.

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

                  "Liquidated Mortgage Loan": As to any Distribution Date, any
Mortgage Loan in respect of which the Servicer has determined, in its reasonable
judgment, as of the end of the related Prepayment Period, that all Liquidation
Proceeds which it expects to recover with respect to the liquidation of the
Mortgage Loan or disposition of the related REO Property have been recovered.

                  "Liquidation Event": With respect to any Mortgage Loan, any of
the following events: (i) such Mortgage Loan is paid in full; (ii) a Final
Recovery Determination is made as to such Mortgage Loan; or (iii) such Mortgage
Loan is removed from REMIC I by reason of its being purchased, repurchased or
replaced pursuant to or as contemplated by Section 2.03, Section 3.16(c) or
Section 9.01. With respect to any REO Property, either of the following events:
(i) a Final Recovery Determination is made as to such REO Property; or (ii) such
REO Property is removed from REMIC I by reason of its being purchased pursuant
to Section 9.01.

                  "Liquidation Proceeds": The amount (other than amounts
received in respect of the rental of any REO Property prior to REO Disposition)
received by the Servicer in connection with (i) the taking of all or a part of a
Mortgaged Property by exercise of the power of eminent domain or condemnation,
(ii) the liquidation of a defaulted Mortgage Loan through a trustee's sale,
foreclosure sale or otherwise, or (iii) the purchase, repurchase or substitution
of a Mortgage Loan or an REO Property pursuant to or as contemplated by Section
2.03, Section 3.16(c), Section 3.23 or Section 9.01.

                                       33
<PAGE>

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

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

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

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

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

                  "Loss Severity Percentage": With respect to any Distribution
Date, the percentage equivalent of a fraction, the numerator of which is the
amount of Realized Losses incurred on a Mortgage Loan and the denominator of
which is the principal balance of such Mortgage Loan immediately prior to the
liquidation of such Mortgage Loan.

                  "Marker Rate": With respect to the Class CE Interest and any
Distribution Date, a per annum rate equal to two (2) times the weighted average
of the REMIC I Remittance Rate for each of REMIC I Regular Interests I-LTA1,
I-LTA2, I-LTA3, I-LTA4, I-LTA5, I-LTM1, I-LTM2, I-LTM3, I-LTM4, I-LTM5, I-LTM6,
I-LTM7, I-LTM8, I-LTM9, I-LTM10, I-LTM11 and I-LTZZ, with the rate on each such
REMIC I Regular Interest (other than REMIC I Regular Interest I-LTZZ) subject to
a cap equal to the lesser of (a) One-Month LIBOR plus the related margin and (b)
the related Net WAC Rate for the purpose of this calculation and with the rate
on REMIC I Regular Interest I-LTZZ subject to a cap of zero for the purpose of
this calculation; provided, however, that solely for this purpose, calculations
of the REMIC I Remittance Rate and the related caps with respect to such REMIC I
Regular Interests (other than REMIC I Regular Interest I-LTZZ) shall be
multiplied by a fraction, the numerator of which is the actual number of days
elapsed in the related Accrual Period and the denominator of which is 30.

                  "Maximum Cap Rate": For any Distribution Date with respect to
the Class A Certificates and the Mezzanine Certificates, a per annum rate equal
to the weighted average of the Adjusted Net Maximum Mortgage Rates of the
Mortgage Loans multiplied by a fraction, the numerator of which is 30 and the
denominator of which is the actual number of days elapsed in the related Accrual
Period.

                  "Maximum I-LTZZ Uncertificated Interest Deferral Amount": With
respect to any Distribution Date, the excess of (i) accrued interest at the
REMIC I Remittance Rate applicable to REMIC I Regular Interest I-LTZZ for such
Distribution Date on a balance equal to the Uncertificated Balance of REMIC I
Regular Interest I-LTZZ minus the REMIC I Overcollateralization Amount, in each
case for such Distribution Date, over (ii) Uncertificated Interest on REMIC I
Regular Interest I-LTA1, REMIC I Regular Interest I-LTA2, REMIC I Regular
Interest I-LTA3, REMIC I Regular Interest I-LTA4, REMIC I Regular Interest
I-LTA5, REMIC I Regular Interest I-LTM1, REMIC I Regular Interest I-LTM2, REMIC
I Regular

                                       34
<PAGE>

Interest I-LTM3, REMIC I Regular Interest I-LTM4, REMIC I Regular Interest
I-LTM5, REMIC I Regular Interest I-LTM6, REMIC I Regular Interest I-LTM7, REMIC
I Regular Interest I-LTM8, REMIC I Regular Interest I-LTM9, REMIC I Regular
Interest I-LTM10 and REMIC I Regular Interest I-LTM11 for such Distribution
Date, with the rate on each such REMIC I Regular Interest subject to a cap equal
to the lesser of (a) One-Month LIBOR plus the related Certificate Margin and (b)
the related Net WAC Rate; provided, however, each cap shall be multiplied by a
fraction, the numerator of which is the actual number of days elapsed in the
related Accrual Period and the denominator of which is 30.

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

                  "MERS": Mortgage Electronic Registration Systems, Inc., a
corporation organized and existing under the laws of the State of Delaware, or
any successor thereto.

                  "MERS(R) System": The system of recording transfers of
Mortgages electronically maintained by MERS.

                  "MIN": The Mortgage Identification Number for Mortgage Loans
registered with MERS on the MERS(R) System.

                  "MOM Loan": With respect to any Mortgage Loan, MERS acting as
the mortgagee of such Mortgage Loan, solely as nominee for the originator of
such Mortgage Loan and its successors and assigns, at the origination thereof.

                  "Mezzanine Cap Contract": The cap contract between the Trustee
and the counterparty thereunder relating to the Mezzanine Certificates.

                  "Mezzanine Certificate": Any Class M-1 Certificate, Class M-2
Certificate, Class M-3 Certificate, Class M-4 Certificates, Class M-5
Certificates, Class M-6 Certificate, Class M-7 Certificates, Class M-8
Certificates, Class M-9 Certificates, Class M-10 Certificates or Class M-11
Certificates.

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

                  "Monthly Interest Distributable Amount": With respect to the
Class A Certificates, the Mezzanine Certificates and the Class CE Certificates
and any Distribution Date, the amount of interest accrued during the related
Accrual Period at the related Pass-Through Rate on the Certificate Principal
Balance (or Notional Amount in the case of the Class CE Certificates) of such
Class immediately prior to such Distribution Date, reduced by any Prepayment
Interest Shortfalls (to the extent not covered by payments made by the Servicer
pursuant to Section 3.24) and Relief Act Interest Shortfalls (allocated to such
Certificate based on its respective entitlements to interest irrespective of any
Prepayment Interest Shortfalls and Relief Act Interest Shortfalls for such
Distribution Date).

                                       35
<PAGE>

                  "Monthly Payment": With respect to any Mortgage Loan, the
scheduled monthly payment of principal and interest on such Mortgage Loan which
is payable by the related Mortgagor from time to time under the related Mortgage
Note, determined: (a) after giving effect to (i) any Deficient Valuation and/or
Debt Service Reduction with respect to such Mortgage Loan and (ii) any reduction
in the amount of interest collectible from the related Mortgagor pursuant to the
Relief Act; (b) without giving effect to any extension granted or agreed to by
the Servicer pursuant to Section 3.07 and (c) on the assumption that all other
amounts, if any, due under such Mortgage Loan are paid when due.

                  "Monthly Statement": The statement prepared by the Trustee
pursuant to Section 4.02.

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

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

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

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

                  "Mortgage Loan Purchase Agreement": The agreement among the
Seller, the Originator and the Depositor, regarding the sale of the Mortgage
Loans by the Seller to the Depositor, substantially in the form of Exhibit D
annexed hereto.

                  "Mortgage Loan Schedule": As of any date, the list of Mortgage
Loans included in REMIC I on such date, attached hereto as Schedule 1. The
Mortgage Loan Schedule shall set forth the following information with respect to
each Mortgage Loan:

                  (1) the Mortgage Loan identifying number;

                  (2) [reserved];

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

                  (4) a code indicating whether the Mortgaged Property was
         represented by the borrower, at the time of origination, as being
         owner-occupied;

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

                  (6) the original months to maturity;

                                       36
<PAGE>

                  (7) the stated remaining months to maturity from the Cut-off
         Date based on the original amortization schedule;

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

                  (9) the Mortgage Rate in effect immediately following the
         Cut-off Date;

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

                  (11) the stated maturity date;

                  (12) the amount of the Monthly Payment at origination;

                  (13) the amount of the Monthly Payment due on the first Due
         Date after the Cut-off Date;

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

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

                  (16) the Stated Principal Balance of the Mortgage Loan as of
         the close of business on the Cut-off Date;

                  (17) a code indicating the purpose of the Mortgage Loan (i.e.,
         purchase financing, rate/term refinancing, cash-out refinancing);

                  (18) the Mortgage Rate at origination;

                  (19) a code indicating the documentation program (i.e., full
         documentation, limited documentation, stated income documentation);

                  (20) the risk grade;

                  (21) the Value of the Mortgaged Property;

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

                  (23) the actual unpaid principal balance of the Mortgage Loan
         as of the Cut-off Date;

                  (24) the type and term of the related Prepayment Charge;

                  (25) the rounding code;

                  (26) the program code;

                  (27) a code indicating the lien priority for Mortgage Loans;

                                       37
<PAGE>

                  (28) with respect to each Adjustable Rate Mortgage Loan, the
         Minimum Mortgage Rate, the Maximum Mortgage Rate, the Gross Margin, the
         next Adjustment Date and the Periodic Rate Cap;

                  (29) the credit score ("FICO") of such Mortgage Loan; and

                  (30) the total amount of points and fees charged such Mortgage
         Loan.

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

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

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

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

                  "Mortgaged Property": The underlying property securing a
Mortgage Loan, including any REO Property, consisting of an Estate in Real
Property improved by a Residential Dwelling.

                                       38
<PAGE>

                  "Mortgagor": The obligor on a Mortgage Note.

                  "Net Liquidation Proceeds": With respect to any Liquidated
Mortgage Loan or any other disposition of related Mortgaged Property (including
REO Property) the related Liquidation Proceeds and Insurance Proceeds net of
Advances, Servicing Advances, Servicing Fees and any other accrued and unpaid
servicing fees received and retained in connection with the liquidation of such
Mortgage Loan or Mortgaged Property.

                  "Net Monthly Excess Cashflow": With respect to each
Distribution Date, the sum of (a) any Overcollateralization Release Amount for
such Distribution Date and (b) the excess of (x) Available Funds for such
Distribution Date over (y) the sum for such Distribution Date of (A) the Monthly
Interest Distributable Amounts for the Class A Certificates and the Mezzanine
Certificates, (B) the Unpaid Interest Shortfall Amounts for the Class A
Certificates and (C) the Principal Remittance Amount.

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

                  "Net WAC Rate": For any Distribution Date with respect to the
Class A-1 Certificates, a per annum rate equal to the product of (x) the
weighted average of the Adjusted Net Mortgage Rates of the Group I Mortgage
Loans, weighted based on their outstanding Principal Balances as of the first
day of the calendar month preceding the month in which the Distribution Date
occurs and (y) a fraction, the numerator of which is 30 and the denominator of
which is the actual number of days elapsed in the related Accrual Period. For
federal income tax purposes, the economic equivalent of such rate shall be
expressed as the weighted average of the REMIC I Remittance Rate on REMIC I
Regular Interest I-LT1GRP, weighted on the basis of the Uncertificated Balance
of such REMIC I Regular Interest.

                  For any Distribution Date with respect to the Group II
Certificates, a per annum rate equal to the product of (x) the weighted average
of the Adjusted Net Mortgage Rates of the Group II Mortgage Loans, weighted
based on their outstanding Principal Balances as of the first day of the
calendar month preceding the month in which the Distribution Date occurs and (y)
a fraction, the numerator of which is 30 and the denominator of which is the
actual number of days elapsed in the related Accrual Period. For federal income
tax purposes, the economic equivalent of such rate shall be expressed as the
weighted average of the REMIC I Remittance Rate on REMIC I Regular Interest
I-LT2GRP, weighted on the basis of the Uncertificated Balance of such REMIC I
Regular Interest.

                  For any Distribution Date with respect to the Mezzanine
Certificates, a per annum rate equal to the product of (x) the weighted average
of the Adjusted Net Mortgage Rates of the Group I Mortgage Loans and the Group
II Mortgage Loans, weighted in proportion to the results of subtracting from the
aggregate Stated Principal Balance of each Loan Group the Certificate Principal
Balance of the related Class of Class A Certificates and (y) for each Class of
Mezzanine Certificates, a fraction, the numerator of which is 30 and the
denominator of which is the actual number of days elapsed in the related Accrual
Period. For federal income tax purposes, the economic equivalent of such rate
shall be expressed as the weighted average of the REMIC I

                                       39
<PAGE>

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

                  "Net WAC Rate Carryover Amount": With respect to the Class A
Certificates and the Mezzanine Certificates and any Distribution Date, the sum
of (A) the positive excess of (i) the amount of interest accrued on such Class
of Certificates on such Distribution Date calculated at the related Formula
Rate, over (ii) the amount of interest accrued on such Class of Certificates at
the Net WAC Rate for such Distribution Date and (B) the Net WAC Rate Carryover
Amount for the previous Distribution Date not previously paid, together with
interest thereon at a rate equal to the Formula Rate for such Class of
Certificates for such Distribution Date and for such Accrual Period.

                  "Net WAC Rate Carryover Reserve Account": The account
established and maintained pursuant to Section 4.07.

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

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

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

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

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

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

                  "Officer's Certificate": A certificate signed by the Chairman
of the Board, the Vice Chairman of the Board, the President or a vice president
(however denominated), and by the Treasurer, the Secretary, or one of the
assistant treasurers or assistant secretaries of the Servicer, the Originator,
the Seller or the Depositor, as applicable.

                                       40
<PAGE>

                  "One-Month LIBOR": With respect to the Class A Certificates,
the Mezzanine Certificates, REMIC I Regular Interest I-LTA1, REMIC I Regular
Interest I-LTA2, REMIC I Regular Interest I-LTA3, REMIC I Regular Interest
I-LTA4, REMIC I Regular Interest I-LTA5, REMIC I Regular Interest I-LTM1, REMIC
I Regular Interest I-LTM2, REMIC I Regular Interest I-LTM3, REMIC I Regular
Interest I-LTM4, REMIC I Regular Interest I-LTM5, REMIC I Regular Interest
I-LTM6, REMIC I Regular Interest I-LTM7, REMIC I Regular Interest I-LTM8, REMIC
I Regular Interest I-LTM9, REMIC I Regular Interest I-LTM10 and REMIC I Regular
Interest I-LTM11 and any Accrual Period therefor, the rate determined by the
Trustee on the related Interest Determination Date on the basis of the offered
rate for one-month U.S. dollar deposits, as such rate appears on Telerate Page
3750 as of 11:00 a.m. (London time) on such Interest Determination Date;
provided that if such rate does not appear on Telerate Page 3750, the rate for
such date will be determined on the basis of the offered rates of the Reference
Banks for one-month U.S. dollar deposits, as of 11:00 a.m. (London time) on such
Interest Determination Date. In such event, the Trustee will request the
principal London office of each of the Reference Banks to provide a quotation of
its rate. If on such Interest Determination Date, two or more Reference Banks
provide such offered quotations, One-Month LIBOR for the related Accrual Period
shall be the arithmetic mean of such offered quotations (rounded upwards if
necessary to the nearest whole multiple of 1/16%). If on such Interest
Determination Date, fewer than two Reference Banks provide such offered
quotations, One-Month LIBOR for the related Accrual Period shall be the higher
of (i) LIBOR as determined on the previous Interest Determination Date and (ii)
the Reserve Interest Rate. Notwithstanding the foregoing, if, under the
priorities described above, LIBOR for an Interest Determination Date would be
based on LIBOR for the previous Interest Determination Date for the third
consecutive Interest Determination Date, the Trustee shall select, after
consultation with the NIMS Insurer, an alternative comparable index (over which
the Trustee has no control), used for determining one-month Eurodollar lending
rates that is calculated and published (or otherwise made available) by an
independent party.

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

                  "Original Mortgage Loan": Any of the Mortgage Loans included
in REMIC I as of the Closing Date.

                  "Originator": WMC Mortgage Corp., a California corporation.

                  "Overcollateralization Deficiency Amount": With respect to any
Distribution Date, the amount, if any, by which the Overcollateralization Target
Amount exceeds the Overcollateralized Amount on such Distribution Date (after
giving effect to distributions in respect of the Group I Basic Principal
Distribution Amount and the Group II Basic Principal Distribution Amount).

                  "Overcollateralization Release Amount": With respect to any
Distribution Date, the lesser of (x) the Principal Remittance Amount for such
Distribution Date and (y) the Excess Overcollateralized Amount.

                                       41
<PAGE>

                  "Overcollateralization Target Amount": With respect to any
Distribution Date, (i) approximately 1.30% of the Cut-off Date Principal Balance
of the Mortgage Loans, (ii) on or after the Stepdown Date provided a Trigger
Event is not in effect, the greater of (x) approximately 2.60% of the aggregate
Stated Principal Balance of the Mortgage Loans as of the last day of the related
Due Period (after giving effect to scheduled payments of principal due during
the related Due Period, to the extent received or advanced, and unscheduled
collections of principal received during the related Prepayment Period) and (y)
$3,724,854.40 , or (iii) on or after the Stepdown Date if a Trigger Event is in
effect, the Overcollateralization Target Amount for the immediately preceding
Distribution Date. Notwithstanding the foregoing, on and after any Distribution
Date following the reduction of the aggregate Certificate Principal Balance of
the Class A Certificates, the Mezzanine Certificates to zero, the
Overcollateralization Target Amount shall be zero.

                  "Overcollateralized Amount": For any Distribution Date, the
amount equal to (i) the aggregate Principal Balance of the Mortgage Loans as of
the last day of the related Due Period (after giving effect to scheduled
payments of principal due during the related Due Period, to the extent received
or advanced, and unscheduled collections of principal received during the
related Prepayment Period) as of the related Determination Date minus (ii) the
sum of the aggregate Certificate Principal Balance of the Class A Certificates,
the Mezzanine Certificates and the Class P Certificates as of such Distribution
Date after giving effect to distributions to be made on such Distribution Date.

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

                  "Pass-Through Rate": With respect to the Class A Certificates
and the Mezzanine Certificates and any Distribution Date, a rate per annum equal
to the lesser of (i) the related Formula Rate for such Distribution Date and
(ii) the related Net WAC Rate for such Distribution Date.

                  With respect to the Class CE Interest and any Distribution
Date, a rate per annum equal to the percentage equivalent of a fraction, the
numerator of which is the sum of the amounts calculated pursuant to clauses (A)
through (S) below, and the denominator of which is the aggregate Uncertificated
Balance of REMIC I Regular Interest I-LTAA, REMIC I Regular Interest I-LTA1,
I-REMIC I Regular Interest LTA2, REMIC I Regular Interest I-LTA3, REMIC I
Regular Interest I-LTA4, REMIC I Regular Interest I-LTA5, REMIC I Regular
Interest I-LTM1, REMIC I Regular Interest I-LTM2, REMIC I Regular Interest
I-LTM3, REMIC I Regular Interest I-LTM4, REMIC I Regular Interest I-LTM5, REMIC
I Regular Interest I-LTM6, REMIC I Regular Interest I-LTM7, REMIC I Regular
Interest I-LTM8, REMIC I Regular Interest I-LTM9, REMIC I Regular Interest
I-LTM10, REMIC I Regular Interest I-LTM11 and REMIC I Regular Interest I-LTZZ.
For purposes of calculating the Pass-Through Rate for the Class CE Interest, the
numerator is equal to the sum of the following components:

                  (A) the REMIC I Remittance Rate for REMIC I Regular Interest
         I-LTAA minus the Marker Rate, applied to an amount equal to the
         Uncertificated Balance of REMIC I Regular Interest I-LTAA;

                                       42
<PAGE>

                  (B) the REMIC I Remittance Rate for REMIC I Regular Interest
         I-LTA1 minus the Marker Rate, applied to an amount equal to the
         Uncertificated Balance of REMIC I Regular Interest I-LTA1;

                  (C) the REMIC I Remittance Rate for REMIC I Regular Interest
         I-LTA2 minus the Marker Rate, applied to an amount equal to the
         Uncertificated Balance of REMIC I Regular Interest I-LTA2;

                  (D) the REMIC I Remittance Rate for REMIC I Regular Interest
         I-LTA3 minus the Marker Rate, applied to an amount equal to the
         Uncertificated Balance of REMIC I Regular Interest I-LTA3;

                  (E) the REMIC I Remittance Rate for REMIC I Regular Interest
         I-LTA4 minus the Marker Rate, applied to an amount equal to the
         Uncertificated Balance of REMIC I Regular Interest I-LTA4;

                  (F) the REMIC I Remittance Rate for REMIC I Regular Interest
         I-LTA5 minus the Marker Rate, applied to an amount equal to the
         Uncertificated Balance of REMIC I Regular Interest I-LTA5;

                  (G) the REMIC I Remittance Rate for REMIC I Regular Interest
         I-LTM1 minus the Marker Rate, applied to an amount equal to the
         Uncertificated Balance of REMIC I Regular Interest I-LTM1;

                  (H) the REMIC I Remittance Rate for REMIC I Regular Interest
         I-LTM2 minus the Marker Rate, applied to an amount equal to the
         Uncertificated Balance of REMIC I Regular Interest I-LTM2;

                  (I) the REMIC I Remittance Rate for REMIC I Regular Interest
         I-LTM3 minus the Marker Rate, applied to an amount equal to the
         Uncertificated Balance of REMIC I Regular Interest I-LTM3;

                  (J) the REMIC I Remittance Rate for REMIC I Regular Interest
         I-LTM4 minus the Marker Rate, applied to an amount equal to the
         Uncertificated Balance of REMIC I Regular Interest I-LTM4;

                  (K) the REMIC I Remittance Rate for REMIC I Regular Interest
         I-LTM5 minus the Marker Rate, applied to an amount equal to the
         Uncertificated Balance of REMIC I Regular Interest I-LTM5;

                  (L) the REMIC I Remittance Rate for REMIC I Regular Interest
         I-LTM6 minus the Marker Rate, applied to an amount equal to the
         Uncertificated Balance of REMIC I Regular Interest I-LTM6;

                  (M) the REMIC I Remittance Rate for REMIC I Regular Interest
         I-LTM7 minus the Marker Rate, applied to an amount equal to the
         Uncertificated Balance of REMIC I Regular Interest I-LTM7;

                                       43
<PAGE>

                  (N) the REMIC I Remittance Rate for REMIC I Regular Interest
         I-LTM8 minus the Marker Rate, applied to an amount equal to the
         Uncertificated Balance of REMIC I Regular Interest I-LTM8;

                  (O) the REMIC I Remittance Rate for REMIC I Regular Interest
         I-LTM9 minus the Marker Rate, applied to an amount equal to the
         Uncertificated Balance of REMIC I Regular Interest I-LTM9;

                  (P) the REMIC I Remittance Rate for REMIC I Regular Interest
         I-LTM10 minus the Marker Rate, applied to an amount equal to the
         Uncertificated Balance of REMIC I Regular Interest I-LTM10;

                  (Q) the REMIC I Remittance Rate for REMIC I Regular Interest
         I-LTM11 minus the Marker Rate, applied to an amount equal to the
         Uncertificated Balance of REMIC I Regular Interest I-LTM11;

                  (R) the REMIC I Remittance Rate for REMIC I Regular Interest
         I-LTZZ minus the Marker Rate, applied to an amount equal to the
         Uncertificated Balance of REMIC I Regular Interest I-LTZZ; and

                  (S) 100% of the interest on REMIC I Regular Interest I-LTP.

                  With respect to the Class CE Certificates, 100% of the
interest distributable to the Class CE Interest, expressed as a per annum rate.

                  "Percentage Interest": With respect to any Class of
Certificates (other than the Residual Certificates), the undivided percentage
ownership in such Class evidenced by such Certificate, expressed as a
percentage, the numerator of which is the initial Certificate Principal Balance
or Notional Amount represented by such Certificate and the denominator of which
is the aggregate initial Certificate Principal Balance or Notional Amount of all
of the Certificates of such Class. The Class A Certificates and the Mezzanine
Certificates are issuable only in minimum Percentage Interests corresponding to
minimum initial Certificate Principal Balances of $25,000 and integral multiples
of $1.00 in excess thereof. The Class P Certificates are issuable only in
Percentage Interests corresponding to initial Certificate Principal Balances of
$20 and integral multiples thereof. The Class CE Certificates are issuable only
in minimum Percentage Interests corresponding to minimum initial Certificate
Principal Balances of $10,000 and integral multiples of $1.00 in excess thereof;
provided, however, that a single Certificate of each such Class of Certificates
may be issued having a Percentage Interest corresponding to the remainder of the
aggregate initial Certificate Principal Balance or Notional Amount of such Class
or to an otherwise authorized denomination for such Class plus such remainder.
With respect to any Residual Certificate, the undivided percentage ownership in
such Class evidenced by such Certificate, as set forth on the face of such
Certificate. The Residual Certificates are issuable in Percentage Interests of
20% and multiples thereof.

                  "Periodic Rate Cap": With respect to each Adjustable-Rate
Mortgage Loan and any Adjustment Date therefor, the fixed percentage set forth
in the related Mortgage Note, which is the maximum amount by which the Mortgage
Rate for such Mortgage Loan may increase or

                                       44
<PAGE>

decrease (without regard to the Maximum Mortgage Rate or the Minimum Mortgage
Rate) on such Adjustment Date (other than the first Adjustment Date) from the
Mortgage Rate in effect immediately prior to such Adjustment Date.

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

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

                  (ii) (A) demand and time deposits in, certificates of deposit
         of, bankers' acceptances issued by or federal funds sold by any
         depository institution or trust company (including the Trustee or its
         agent acting in their respective commercial capacities) incorporated
         under the laws of the United States of America or any state thereof and
         subject to supervision and examination by federal and/or state
         authorities, so long as, at the time of such investment or contractual
         commitment providing for such investment, such depository institution
         or trust company (or, if the only Rating Agency is S&P, in the case of
         the principal depository institution in a depository institution
         holding company, debt obligations of the depository institution holding
         company) or its ultimate parent has a short-term uninsured debt rating
         in the highest available rating of Moody's and S&P and provided that
         each such investment has an original maturity of no more than 365 days;
         and provided further that, if the only Rating Agency is S&P and if the
         depository or trust company is a principal subsidiary of a bank holding
         company and the debt obligations of such subsidiary are not separately
         rated, the applicable rating shall be that of the bank holding company;
         and, provided further that, if the original maturity of such short-term
         obligations of a domestic branch of a foreign depository institution or
         trust company shall exceed 30 days, the short-term rating of such
         institution shall be "A-1+" in the case of S&P if S&P is the Rating
         Agency; and (B) any other demand or time deposit or deposit which is
         fully insured by the FDIC;

                  (iii) repurchase obligations with a term not to exceed 30 days
         with respect to any security described in clause (i) above and entered
         into with a depository institution or trust company (acting as
         principal) rated "A-1+" or higher by S&P and "A2" or higher by Moody's,
         provided, however, that collateral transferred pursuant to such
         repurchase obligation must be of the type described in clause (i) above
         and must (A) be valued daily at current market prices plus accrued
         interest, (B) pursuant to such valuation, be equal, at all times, to
         105% of the cash transferred by the Trustee in exchange for such
         collateral and (C) be delivered to the Trustee or, if the Trustee is
         supplying the collateral, an agent for the Trustee, in such a manner as
         to accomplish perfection of a security interest in the collateral by
         possession of certificated securities;

                  (iv) securities bearing interest or sold at a discount that
         are issued by any corporation incorporated under the laws of the United
         States of America or any State thereof and that are rated by a Rating
         Agency in its highest long-term unsecured

                                       45
<PAGE>

         rating category at the time of such investment or contractual
         commitment providing for such investment;

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

                  (vi) units of money market funds, including those managed or
         advised by the Trustee or its Affiliates, that have been rated "AAA" by
         S&P and "Aaa" by Moody's; and

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

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

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

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

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

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

                  "Prepayment Charge": With respect to any Prepayment Period,
any prepayment premium, fee, penalty or charge payable by a Mortgagor in
connection with any full or partial Principal Prepayment on a Mortgage Loan
pursuant to the terms of the related Mortgage Note (other than any Servicer
Prepayment Charge Payment Amount).

                  "Prepayment Charge Schedule": As of any date, the list of
Prepayment Charges on the Mortgage Loans included in REMIC I on such date,
attached hereto as Schedule 2 (including the Prepayment Charge Summary attached
thereto). The Prepayment Charge Schedule shall set forth the following
information with respect to each related Mortgage Loan:

                                       46
<PAGE>

                  (i) the Mortgage Loan identifying number;

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

                  (iii) the state of origination of the related Mortgage Loan;

                  (iv) the date on which the first monthly payment was due on
         the related Mortgage Loan;

                  (v) the term of the related Mortgage Loan; and

                  (vi) the Stated Principal Balance of the related Mortgage Loan
         as of the Cut-off Date.

                  The Prepayment Charge Schedule shall be amended from time to
time by the Depositor in accordance with the provisions of this Agreement and a
copy of such amended Prepayment Charge Schedule shall be furnished by the
Depositor to the NIMS Insurer.

                  "Prepayment Interest Excess": With respect to any Distribution
Date, for each Mortgage Loan that was the subject of a Principal Prepayment in
full during the portion of the related Prepayment Period occurring between the
first day and the fifteenth day of the calendar month in which such Distribution
Date occurs, an amount equal to interest (to the extent received) at the
applicable Net Mortgage Rate on the amount of such Principal Prepayment for the
number of days commencing on the first day of the calendar month in which such
Distribution Date occurs and ending on the date on which such prepayment is so
applied.

                  "Prepayment Interest Shortfall": With respect to any
Distribution Date, for each Mortgage Loan that was the subject of a Principal
Prepayment in full during the portion of the related Prepayment Period occurring
from the first day of the related Prepayment Period through the last day of the
calendar month preceding the month in which such Distribution Date occurs, an
amount equal to one month's interest on the Mortgage Loan less any payments in
respect of interest for such month made by the related Mortgagor.

                  "Prepayment Period": With respect to any Distribution Date and
any Principal Prepayment in full, the period commencing on the 16th day of the
calendar month preceding the calendar month in which such Distribution Date
occurs (or, in the case of the first Distribution Date, commencing on December
1, 2004) and ending on the 15th day of the calendar month in which such
Distribution Date occurs and for any Distribution Date and any Principal
Prepayment in part, the calendar month preceding the month in which such
Distribution Date occurs.

                  "Principal Balance": As to any Mortgage Loan other than a
Liquidated Mortgage Loan, and any day, the related Cut-off Date Principal
Balance, minus all collections credited against the Cut-off Date Principal
Balance of any such Mortgage Loan. For purposes of this definition, a Liquidated
Mortgage Loan shall be deemed to have a Principal Balance equal to the Principal
Balance of the related Mortgage Loan as of the final recovery of related
Liquidation Proceeds and a Principal Balance of zero thereafter. As to any REO
Property and any day, the Principal Balance of the related Mortgage Loan
immediately prior to such Mortgage Loan

                                       47
<PAGE>

becoming REO Property minus any REO Principal Amortization received with respect
thereto on or prior to such day.

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

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

                  "Prospectus Supplement": That certain Prospectus Supplement
dated December 16, 2004 relating to the public offering of the Class A
Certificates and the Mezzanine Certificates (other than the Class M-11
Certificates).

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

                  "Qualified Substitute Mortgage Loan": A mortgage loan
substituted for a Deleted Mortgage Loan pursuant to the terms of this Agreement
which must, on the date of such substitution, (i) have an outstanding Principal
Balance, after application of all scheduled payments of principal and interest
due during or prior to the month of substitution, not in excess

                                       48
<PAGE>

of the Principal Balance of the Deleted Mortgage Loan as of the Due Date in the
calendar month during which the substitution occurs, (ii) have a Mortgage Rate
not less than (and not more than one percentage point in excess of) the Mortgage
Rate of the Deleted Mortgage Loan, (iii) with respect to any Adjustable-Rate
Mortgage Loan, have a Maximum Mortgage Rate not less than the Maximum Mortgage
Rate on the Deleted Mortgage Loan, (iv) with respect to any Adjustable-Rate
Mortgage Loan, have a Minimum Mortgage Rate not less than the Minimum Mortgage
Rate of the Deleted Mortgage Loan, (v) with respect to any Adjustable-Rate
Mortgage Loan, have a Gross Margin equal to the Gross Margin of the Deleted
Mortgage Loan, (vi) with respect to any Adjustable-Rate Mortgage Loan, have a
next Adjustment Date not more than two months later than the next Adjustment
Date on the Deleted Mortgage Loan, (vii) have a remaining term to maturity not
greater than (and not more than one year less than) that of the Deleted Mortgage
Loan, (viii) have the same Due Date as the Due Date on the Deleted Mortgage
Loan, (ix) have a Loan-to-Value Ratio as of the date of substitution equal to or
lower than the Loan-to-Value Ratio of the Deleted Mortgage Loan as of such date,
(x) have a risk grading determined by the Originator at least equal to the risk
grading assigned on the Deleted Mortgage Loan, (xi) have a Prepayment Charge
provision at least equal to the Prepayment Charge provision in the Deleted
Mortgage Loan, (xii) [reserved] and (xiii) conform to each representation and
warranty set forth in Section 6 of the Mortgage Loan Purchase Agreement
applicable to the Deleted Mortgage Loan. In the event that one or more mortgage
loans are substituted for one or more Deleted Mortgage Loans, the amounts
described in clause (i) hereof shall be determined on the basis of aggregate
principal balances, the Mortgage Rates described in clause (ii) hereof shall be
determined on the basis of weighted average Mortgage Rates, the terms described
in clause (vii) hereof shall be determined on the basis of weighted average
remaining term to maturity, the Loan-to-Value Ratios described in clause (ix)
hereof shall be satisfied as to each such mortgage loan, the risk gradings
described in clause (x) hereof shall be satisfied as to each such mortgage loan
and, except to the extent otherwise provided in this sentence, the
representations and warranties described in clause (xi) hereof must be satisfied
as to each Qualified Substitute Mortgage Loan or in the aggregate, as the case
may be.

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

                  "Realized Loss": With respect to any Liquidated Mortgage Loan
or any Mortgage Loan charged off by the Servicer pursuant to this Agreement, the
amount of loss realized equal to the portion of the Stated Principal Balance
remaining unpaid after application of all Net Liquidation Proceeds in respect of
such Mortgage Loan. If the Servicer receives Subsequent Recoveries with respect
to any Mortgage Loan, the amount of the Realized Loss with respect to that
Mortgage Loan will be reduced to the extent such recoveries are applied to
principal distributions on any Distribution Date.

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

                                       49
<PAGE>

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

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

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

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

                  "Relief Act": The Servicemembers Civil Relief Act.

                  "Relief Act Interest Shortfall": With respect to any
Distribution Date and any Mortgage Loan, any reduction in the amount of interest
collectible on such Mortgage Loan for the most recently ended calendar month as
a result of the application of the Relief Act or any similar state or local law.

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

                  "REMIC I": The segregated pool of assets subject hereto,
constituting the primary trust created hereby and to be administered hereunder,
with respect to which a REMIC election is to be made, consisting of: (i) such
Mortgage Loans and Prepayment Charges as from time to time are subject to this
Agreement, together with the Mortgage Files relating thereto, and together with
all collections thereon and proceeds thereof; (ii) any REO Property, together
with all collections thereon and proceeds thereof; (iii) the Trustee's rights
with respect to the Mortgage Loans under all insurance policies, required to be
maintained pursuant to this Agreement and any proceeds thereof; (iv) the
Depositor's rights under the Mortgage Loan Purchase Agreement (including any
security interest created thereby); and (v) the Collection Account (other than
any amounts representing any Servicer Prepayment Charge Payment Amount), the
Distribution Account (other than any amounts representing any Servicer
Prepayment Charge Payment Amount) and any REO Account, and such assets that are
deposited therein from time to time and any investments thereof, together with
any and all income, proceeds and payments with respect thereto. Notwithstanding
the foregoing, however, REMIC I specifically excludes the Net WAC Rate Carryover
Reserve Account, the Cap Contracts, all payments and other collections of
principal and interest due on the Mortgage Loans on or before the Cut-off Date
and all Prepayment Charges payable in connection with Principal Prepayments made
before the Cut-off Date.

                                       50
<PAGE>

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

                  "REMIC I Marker Allocation Percentage": 50% of any amount
payable or loss attributable from the Mortgage Loans, which shall be allocated
to the REMIC I Regular Interests.

                  "REMIC I Overcollateralized Amount": With respect to any date
of determination, (i) 0.50% of the aggregate Uncertificated Balance of the REMIC
I Regular Interests minus (ii) the aggregate Uncertificated Balance of REMIC I
Regular Interest I-LTA1, REMIC I Regular Interest I-LTA2, REMIC I Regular
Interest I-LTA3, REMIC I Regular Interest I-LTA4, REMIC I Regular Interest
I-LTA5, REMIC I Regular Interest I-LTM1, REMIC I Regular Interest I-LTM2, REMIC
I Regular Interest I-LTM3, REMIC I Regular Interest I-LTM4, REMIC I Regular
Interest I-LTM5, REMIC I Regular Interest I-LTM6, REMIC I Regular Interest
I-LTM7, REMIC I Regular Interest I-LTM8, REMIC I Regular Interest I-LTM9, REMIC
I Regular Interest I-LTM10, REMIC I Regular Interest I-LTM11 and REMIC I Regular
Interest I-LTP, in each case as of such date of determination.

                  "REMIC I Principal Loss Allocation Amount": With respect to
any Distribution Date, an amount equal to the product of (i) 50% of the
aggregate Stated Principal Balance of the Mortgage Loans and REO Properties then
outstanding and (ii) 1 minus a fraction, the numerator of which is two times the
aggregate Uncertificated Balance of REMIC I Regular Interest I-LTA1, REMIC I
Regular Interest I-LTA2, REMIC I Regular Interest I-LTA3, REMIC I Regular
Interest I-LTA4, REMIC I Regular Interest I-LTA5, REMIC I Regular Interest
I-LTM1, REMIC I Regular Interest I-LTM2, REMIC I Regular Interest I-LTM3, REMIC
I Regular Interest I-LTM4, REMIC I Regular Interest I-LTM5, REMIC I Regular
Interest I-LTM6, REMIC I Regular Interest I-LTM7, REMIC I Regular Interest
I-LTM8, REMIC I Regular Interest I-LTM9, REMIC I Regular Interest I-LTM10 and
REMIC I Regular Interest I-LTM11 and the denominator of which is the aggregate
Uncertificated Balance of REMIC I Regular Interest I-LTA1, REMIC I Regular
Interest I-LTA2, REMIC I Regular Interest I-LTA3, REMIC I Regular Interest
I-LTA4, REMIC I Regular Interest I-LTA5, REMIC I Regular Interest I-LTM1, REMIC
I Regular Interest I-LTM2, REMIC I Regular Interest I-LTM3, REMIC I Regular
Interest I-LTM4, REMIC I Regular Interest I-LTM5, REMIC I Regular Interest
I-LTM6, REMIC I Regular Interest I-LTM7, REMIC I Regular Interest I-LTM8, REMIC
I Regular Interest I-LTM9, REMIC I Regular Interest I-LTM10, REMIC I Regular
Interest I-LTM11 and REMIC I Regular Interest I-LTZZ.

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

                                       51
<PAGE>

                  "REMIC I Regular Interest I-LTAA": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LTAA
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LTA1": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LTA1
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LTA2": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LTA2
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LTA3": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LTA3
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LTA4": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LTA4
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LTA5": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LTA5
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LTM1": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LTM1
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal,

                                       52
<PAGE>

subject to the terms and conditions hereof, in an aggregate amount equal to its
initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LTM2": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LTM2
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LTM3": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LTM3
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LTM4": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LTM4
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LTM5": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LTM5
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LTM6": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LTM6
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LTM7": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LTM7
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LTM8": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest

                                       53
<PAGE>

in REMIC I. REMIC I Regular Interest I-LTM8 shall accrue interest at the related
REMIC I Remittance Rate in effect from time to time, and shall be entitled to
distributions of principal, subject to the terms and conditions hereof, in an
aggregate amount equal to its initial Uncertificated Balance as set forth in the
Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LTM9": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LTM9
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LTM10": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LTM10
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LTM11": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LTM11
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                   "REMIC I Regular Interest I-LTP": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LTP
shall be entitled to any Prepayment Charges collected by the Servicer and to a
distribution of principal, subject to the terms and conditions hereof, in an
aggregate amount equal to its initial Uncertificated Balance as set forth in the
Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LTXX": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LTXX
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LTZZ": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LTZZ
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                                       54
<PAGE>

                  "REMIC I Regular Interest I-LT1GRP": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LT1GRP
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LT1SUB": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LT1SUB
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LT2GRP": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LT2GRP
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                  "REMIC I Regular Interest I-LT2SUB": One of the separate
non-certificated beneficial ownership interests in REMIC I issued hereunder and
designated as a Regular Interest in REMIC I. REMIC I Regular Interest I-LT2SUB
shall accrue interest at the related REMIC I Remittance Rate in effect from time
to time, and shall be entitled to distributions of principal, subject to the
terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

                  "REMIC I Remittance Rate": With respect to REMIC I Regular
Interest I-LTAA, REMIC I Regular Interest I-LTA1, REMIC I Regular Interest
I-LTA2, REMIC I Regular Interest I-LTA3, REMIC I Regular Interest I-LTA4, REMIC
I Regular Interest I-LTA5, REMIC I Regular Interest I-LTM1, REMIC I Regular
Interest I-LTM2, REMIC I Regular Interest I-LTM3, REMIC I Regular Interest
I-LTM4, REMIC I Regular Interest I-LTM5, REMIC I Regular Interest I-LTM6, REMIC
I Regular Interest I-LTM7, REMIC I Regular Interest I-LTM8, REMIC I Regular
Interest I-LTM9, REMIC I Regular Interest I-LTM10, REMIC I Regular Interest
I-LTM11, REMIC I Regular Interest I-LTZZ, REMIC I Regular Interest I-LTP, REMIC
I Regular Interest I-LT1SUB, REMIC I Regular Interest I-LT2SUB and REMIC I
Regular Interest I-LTXX, the weighted average of the Adjusted Net Mortgage Rates
of the Mortgage Loans. With respect to REMIC I Regular Interest I-LT1GRP, the
weighted average of the Adjusted Net Mortgage Rates of the Group I Mortgage
Loans. With respect REMIC I Regular Interest I-LT2GRP, the weighted average of
the Adjusted Net Mortgage Rates of the Group II Mortgage Loans.

                  "REMIC I Subordinated Balance Ratio": The ratio among the
Uncertificated Balance of each REMIC I Regular Interest ending with the
designation "SUB,", equal to the ratio among, with respect to each such REMIC I
Regular Interest, the excess of (x) the aggregate

                                       55
<PAGE>

Stated Principal Balance of the Mortgage Loans in the related Loan Group over
(y) the current Certificate Principal Balance of the Class A Certificates in the
related Loan Group.

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

                  "REMIC I Required Overcollateralized Amount": 1.00% of the
Overcollateralization Target Amount.

                  "REMIC II": The segregated pool of assets consisting of all of
the REMIC I Regular Interests conveyed in trust to the Trustee, for the benefit
of the REMIC II Certificateholders pursuant to Section 2.07, and all amounts
deposited therein, with respect to which a separate REMIC election is to be
made.

                  "REMIC II Certificate": Any Regular Certificate (other than a
Class CE Certificate or Class P Certificate) or Class R Certificate.

                  "REMIC II Certificateholder": The Holder of any REMIC II
Certificate.

                  "REMIC II Regular Interest": Any Class A Certificate,
Mezzanine Certificate, the Class CE Interest or the Class P Interest.

                  "REMIC III": The segregated pool of assets consisting of all
of the Class CE Interest conveyed in trust to the Trustee, for the benefit of
the Holders of the Regular Certificates and the Class R-X Certificate (in
respect of the Class R-III Interest), pursuant to Article II hereunder, and all
amounts deposited therein, with respect to which a separate REMIC election is to
be made.

                  "REMIC IV": The segregated pool of assets consisting of all of
the Class P Interest conveyed in trust to the Trustee, for the benefit of the
Holders of the Regular Certificates and the Class R-X Certificate (in respect of
the Class R-IV Interest), pursuant to Article II hereunder, and all amounts
deposited therein, with respect to which a separate REMIC election is to be
made.

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

                  "Remittance Report": A report prepared by the Servicer and
delivered to the Trustee and the NIMS Insurer pursuant to Section 4.03.

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

                                       56
<PAGE>

                  "REO Account": The account or accounts maintained, or caused
to be maintained, by the Servicer in respect of an REO Property pursuant to
Section 3.23.

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

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

                  "REO Principal Amortization": With respect to any REO
Property, for any calendar month, the excess, if any, of (a) the aggregate of
all amounts received in respect of such REO Property during such calendar month,
whether in the form of rental income, sale proceeds (including, without
limitation, that portion of the Termination Price paid in connection with a
purchase of all of the Mortgage Loans and REO Properties pursuant to Section
9.01 that is allocable to such REO Property) or otherwise, net of any portion of
such amounts (i) payable pursuant to Section 3.23(c) in respect of the proper
operation, management and maintenance of such REO Property or (ii) payable or
reimbursable to the Servicer pursuant to Section 3.23(d) for unpaid Servicing
Fees in respect of the related Mortgage Loan and unreimbursed Servicing Advances
and Advances in respect of such REO Property or the related Mortgage Loan, over
(b) the REO Imputed Interest in respect of such REO Property for such calendar
month.

                  "REO Property": A Mortgaged Property acquired by the Servicer
on behalf of REMIC I through foreclosure or deed-in-lieu of foreclosure, as
described in Section 3.23.

                  "Request for Release": A request for release in such
electronic or other format as shall be mutually agreeable by the Trustee and the
Servicer, in substantially the form of Exhibit E attached hereto.

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

                  "Residential Dwelling": Any one of the following: (i) a
detached one-family dwelling, (ii) a detached two- to four-family dwelling,
(iii) a one-family dwelling unit in a Fannie Mae eligible condominium project,
(iv) a manufactured home, or (v) a detached one-family dwelling in a planned
unit development, none of which is a co-operative or mobile home.

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

                                       57
<PAGE>

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

                  "Responsible Officer": When used with respect to the Trustee,
the Chairman or Vice Chairman of the Board of Directors or Trustees, the
Chairman or Vice Chairman of the Executive or Standing Committee of the Board of
Directors or Trustees, the President, the Chairman of the Committee on Trust
Matters, any vice president, any assistant vice president, the Secretary, any
assistant secretary, the Treasurer, any assistant treasurer, the Cashier, any
assistant cashier, any trust officer or assistant trust officer, the Controller
and any assistant controller or any other officer of the Trustee, customarily
performing functions similar to those performed by any of the above designated
officers and, with respect to a particular matter, to whom such matter is
referred because of such officer's knowledge of and familiarity with the
particular subject.

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

                  "Seller": UBS Real Estate Securities Inc. or its successor in
interest, in its capacity as seller under the Mortgage Loan Purchase Agreement.

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

                  "Servicer": HomEq Servicing Corporation or its successor in
interest, in its capacity as servicer hereunder.

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

                  "Servicer Prepayment Charge Payment Amount": The amounts
payable by the Servicer in respect of any waived Prepayment Charges pursuant to
Section 2.05 or Section 3.01.

                   "Sequential Trigger Event": With respect to any Distribution
Date, a Sequential Trigger Event is in effect if, before the 37th Distribution
Date, the aggregate amount of Realized Losses incurred since the Cut-off Date
through the last day of the related Due Period (after giving effect to scheduled
payments received or Advanced on or before the related Determination Date and
Principal Prepayments received during the related Prepayment Period) divided by
the aggregate principal balance of the Mortgage Loans as of the Cut-off Date
exceeds 3.00%, or if, on or after the 37th Distribution Date, a Trigger Event is
in effect.

                  "Servicer Remittance Date": With respect to any Distribution
Date, by 1:00 p.m. New York time on the 18th day of the month in which such
Distribution Date occurs, or if such 18th day is not a Business Day, the
immediately following Business Day.

                  "Servicing Account": The account or accounts created and
maintained pursuant to Section 3.09.

                                       58
<PAGE>

                  "Servicing Advances": All customary, reasonable and necessary
"out of pocket" costs and expenses other than Advances (including reasonable
attorneys' fees and disbursements) incurred by the Servicer in the performance
of its servicing obligations, including, but not limited to, the cost of (i) the
preservation, restoration, inspection and protection of the Mortgaged Property,
(ii) any enforcement or judicial proceedings, including foreclosures, in respect
of a particular Mortgage Loan, (iii) the management and liquidation of the REO
Property and (iv) taxes, assessments, water rates, sewer rents and other charges
which are or may become a lien upon the Mortgaged Property. Servicing Advances
also include any reasonable "out-of-pocket" costs and expenses (including legal
fees) incurred by the Servicer in connection with executing and recording
instruments of satisfaction, deeds of reconveyance or Assignments of Mortgage in
connection with any foreclosure in respect of any Mortgage Loan to the extent
not recovered from the related Mortgagor or otherwise payable under this
Agreement. The Servicer shall not be required to make any Servicing Advance that
would be a Nonrecoverable Servicing Advance.

                  "Servicing Fee": With respect to each Mortgage Loan and for
any calendar month, an amount equal to one-twelfth of the Servicing Fee Rate
(without regards to the words "per annum" in the definition thereof) multiplied
by the Stated Principal Balance of the Mortgage Loans as of the first day of the
related Due Period.

                  "Servicing Fee Rate": 0.50% per annum.

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

                  "Servicing Transfer Costs": Shall mean all reasonable costs
and expenses incurred by the Trustee in connection with the transfer of
servicing from a predecessor servicer, 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 Trustee to correct any errors or insufficiencies
in the servicing data or otherwise to enable the Trustee to service the Mortgage
Loans properly and effectively.

                  "Single Certificate": With respect to any Class of
Certificates (other than the Class P Certificates and the Residual
Certificates), a hypothetical Certificate of such Class evidencing a Percentage
Interest for such Class corresponding to an initial Certificate Principal
Balance of $1,000. With respect to the Class P Certificates and the Residual
Certificates, a hypothetical Certificate of such Class evidencing a 100%
Percentage Interest in such Class.

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

                  "Stated Principal Balance": With respect to any Mortgage Loan:
(a) as of any date of determination up to but not including the Distribution
Date on which the proceeds, if any, of a Liquidation Event with respect to such
Mortgage Loan would be distributed, the Cut-off Date Principal Balance of such
Mortgage Loan, as shown in the Mortgage Loan Schedule, minus the

                                       59
<PAGE>

sum of (i) the principal portion of each Monthly Payment due on a Due Date
subsequent to the Cut-off Date, to the extent received from the Mortgagor or
advanced by the Servicer and distributed pursuant to Section 4.01 on or before
such date of determination, (ii) all Principal Prepayments received after the
Cut-off Date, to the extent distributed pursuant to Section 4.01 on or before
such date of determination, (iii) all Liquidation Proceeds and Insurance
Proceeds applied by the Servicer as recoveries of principal in accordance with
the provisions of Section 3.16, to the extent distributed pursuant to Section
4.01 on or before such date of determination, and (iv) any Realized Loss
incurred with respect thereto as a result of a Deficient Valuation made during
or prior to the Prepayment Period for the most recent Distribution Date
coinciding with or preceding such date of determination; and (b) as of any date
of determination coinciding with or subsequent to the Distribution Date on which
the proceeds, if any, of a Liquidation Event with respect to such Mortgage Loan
would be distributed, zero. With respect to any REO Property: (a) as of any date
of determination up to but not including the Distribution Date on which the
proceeds, if any, of a Liquidation Event with respect to such REO Property would
be distributed, an amount (not less than zero) equal to the Stated Principal
Balance of the related Mortgage Loan as of the date on which such REO Property
was acquired on behalf of REMIC I, minus the sum of (i) if such REO Property was
acquired before the Distribution Date in any calendar month, the principal
portion of the Monthly Payment due on the Due Date in the calendar month of
acquisition, to the extent advanced by the Servicer and distributed pursuant to
Section 4.01 on or before such date of determination, and (ii) the aggregate
amount of REO Principal Amortization in respect of such REO Property for all
previously ended calendar months, to the extent distributed pursuant to Section
4.01 on or before such date of determination; and (b) as of any date of
determination coinciding with or subsequent to the Distribution Date on which
the proceeds, if any, of a Liquidation Event with respect to such REO Property
would be distributed, zero.

                  "Stepdown Date": The earlier to occur of (i) the Distribution
Date on which the aggregate Certificate Principal Balance of the Class A
Certificates has been reduced to zero and (ii) the later to occur of (x) the
Distribution Date occurring in August 2007 and (y) the first Distribution Date
on which the Credit Enhancement Percentage (calculated for this purpose only
after taking into account payments of principal on the Mortgage Loans but prior
to distribution of the Group I Principal Distribution Amount and the Group II
Principal Distribution Amount to the Certificates then entitled to distributions
of principal on such Distribution Date) is equal to or greater than 40.50%.

                  "Sub-Servicer": Any Person with which the Servicer has entered
into a Sub-Servicing Agreement which meets the requirements set forth in Section
3.02.

                  "Sub-Servicing Account": An account established by a
Sub-Servicer which meets the requirements set forth in Section 3.08 and is
otherwise acceptable to the Servicer.

                  "Sub-Servicing Agreement": The written contract between the
Servicer and a Sub-Servicer relating to servicing and administration of certain
Mortgage Loans meeting the requirements set forth in Section 3.02.

                  "Subsequent Recoveries": As of any Distribution Date,
unexpected amounts received by the Servicer (net of any related expenses
permitted to be reimbursed to the Servicer)

                                       60
<PAGE>

specifically related to a Mortgage Loan that was the subject of a liquidation or
an REO Disposition prior to the related Prepayment Period that resulted in a
Realized Loss.

                  "Substitution Adjustment Amount": As defined in Section
2.03(b).

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

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

                  "Termination Price": As defined in Section 9.01.

                  "Terminator": As defined in Section 9.01.

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

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

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

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

                  (a) the Delinquency Percentage exceeds 39.15% of the Credit
Enhancement Percentage; or

                  (b) the aggregate amount of Realized Losses incurred since the
Cut-off Date through the last day of the related Due Period (reduced by the
aggregate amount of Subsequent Recoveries received since the Cut-off Date
through the last day of the related Due Period) divided by the aggregate Stated
Principal Balance of the Mortgage Loans as of the Cut-off Date exceeds the
applicable percentages set forth below with respect to such Distribution Date:

              DISTRIBUTION DATE OCCURRING IN            PERCENTAGE
        --------------------------------------------------------------
        January 2008 through December 2008                 3.00%
        January 2009 through December 2009                 4.75%
        January 2010 through December 2010                 6.25%
        January 2011 and thereafter                        7.00%

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<PAGE>

                   "Trust Fund": Collectively, all of the assets of REMIC I,
REMIC II, REMIC III, REMIC IV, the Net WAC Rate Carryover Reserve Account, the
Cap Contracts and the other assets conveyed by the Depositor to the Trustee
pursuant to Section 2.01.

                  "Trust REMIC": Any of REMIC I, REMIC II, REMIC III or REMIC
IV.

                  "Trustee": U.S. Bank National Association, a national banking
association, or its successor in interest, or any successor trustee appointed as
herein provided.

                  "Trustee Fee": The amount payable to the Trustee on each
Distribution Date pursuant to Section 8.05 as compensation for all services
rendered by it in the execution of the trust hereby created and in the exercise
and performance of any of the powers and duties of the Trustee hereunder, which
amount shall be equal to one-twelfth of the Trustee Fee Rate (without regards to
the words "per annum" in the definition thereof) multiplied by the Stated
Principal Balance of the Mortgage Loans as of the first day of the related Due
Period.

                  "Trustee Fee Rate": 0.0085% per annum.

                  "Uncertificated Balance": The amount of any REMIC I Regular
Interest outstanding as of any date of determination. As of the Closing Date,
the Uncertificated Balance of each REMIC I Regular Interest shall equal the
amount set forth in the Preliminary Statement hereto as its initial
uncertificated balance. On each Distribution Date, the Uncertificated Balance of
each REMIC I Regular Interest shall be reduced by all distributions of principal
made on such REMIC I Regular Interest on such Distribution Date pursuant to
Section 4.01 and, if and to the extent necessary and appropriate, shall be
further reduced on such Distribution Date by Realized Losses as provided in
Section 4.04. The Uncertificated Balance of REMIC I Regular Interest I-LTZZ
shall be increased by interest deferrals as provided in Section 4.01(a)(1)(i).
The Uncertificated Balance of each REMIC I Regular Interest shall never be less
than zero. With respect to the Class CE Interest as of any date of
determination, an amount equal to the excess, if any, of (A) the then aggregate
Uncertificated Principal Balance of the REMIC I Regular Interests over (B) the
then aggregate Certificate Principal Balances of the Class A Certificates,
Mezzanine Certificates and the Class P Interest then outstanding.

                  "Uncertificated Interest": With respect to any REMIC I Regular
Interest for any Distribution Date, one month's interest at the REMIC I
Remittance Rate applicable to such REMIC I Regular Interest for such
Distribution Date, accrued on the Uncertificated Balance thereof immediately
prior to such Distribution Date. Uncertificated Interest in respect of any REMIC
I Regular Interest shall accrue on the basis of a 360-day year consisting of
twelve 30-day months. Uncertificated Interest with respect to each Distribution
Date, as to any REMIC I Regular Interest, shall be reduced by an amount equal to
the sum of (a) the aggregate Prepayment Interest Shortfall, if any, for such
Distribution Date to the extent not covered by payments pursuant to Section 3.24
and (b) the aggregate amount of any Relief Act Interest Shortfall, if any
allocated, in each case, to such REMIC I Regular Interest pursuant to Section
1.02. In addition, Uncertificated Interest with respect to each Distribution
Date, as to any REMIC I Regular Interest shall be reduced by Realized Losses, if
any, allocated to such REMIC I Regular Interest pursuant to Section 1.02 and
Section 4.04.

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

                  "Uninsured Cause": Any cause of damage to a Mortgaged Property
such that the complete restoration of such property is not fully reimbursable by
the hazard insurance policies required to be maintained pursuant to Section
3.14.

                  "United States Person": A citizen or resident of the United
States, a corporation, partnership or other entity created or organized in, or
under the laws of, the United States, any state thereof or, District of Columbia
(except, in the case of a partnership, to the extent provided in regulations)
provided that, for purposes solely of the restrictions on the transfer of Class
R Certificates, no partnership or other entity treated as a partnership for
United States federal income tax purposes shall be treated as a United States
Person unless all persons that own an interest in such partnership either
directly or through any entity that is not a corporation for United States
federal income tax purposes are required by the applicable operative agreement
to be United States Persons or an estate whose income is subject to United
States federal income tax regardless of its source, or a trust if a court within
the United States is able to exercise primary supervision over the
administration of the trust and one or more United States persons have the
authority to control all substantial decisions of the trust. To the extent
prescribed in regulations by the Secretary of the Treasury, which have not yet
been issued, a trust which was in existence on August 20, 1996 (other than a
trust treated as owned by the grantor under subpart E of part I of subchapter J
of chapter 1 of the Code), and which was treated as a United States person on
August 20, 1996 may elect to continue to be treated as a United States person
notwithstanding the previous sentence. The term "United States" shall have the
meaning set forth in Section 7701 of the Code.

                  "Unpaid Interest Shortfall Amount": With respect to the Class
A Certificates and the Mezzanine Certificates and (i) the first Distribution
Date, zero, and (ii) any Distribution Date after the first Distribution Date,
the amount, if any, by which (a) the sum of (1) the Monthly Interest
Distributable Amount for such Class for the immediately preceding Distribution
Date and (2) the outstanding Unpaid Interest Shortfall Amount, if any, for such
Class for such preceding Distribution Date exceeds (b) the aggregate amount
distributed on such Class in respect of interest pursuant to clause (a) of this
definition on such preceding Distribution Date, plus interest on the amount of
interest due but not paid on the Certificates of such Class on such preceding
Distribution Date, to the extent permitted by law, at the Pass-Through Rate for
such Class for the related Accrual Period.

                  "Value": With respect to any Mortgage Loan, and the related
Mortgaged Property, the lesser of:

         (i)      the lesser of (a) the value thereof as determined by an
                  appraisal made for the originator of the Mortgage Loan at the
                  time of origination of the Mortgage Loan by an appraiser who
                  met the minimum requirements of Fannie Mae and Freddie Mac,
                  and (b) the value thereof as determined by a review appraisal
                  conducted by the Originator in the event any such review
                  appraisal determines an appraised value more than 10% lower
                  than the value thereof, in the case of a Mortgaged Loan with a
                  Loan-to-Value Ratio less than or equal to 80%, or more than 5%
                  lower than the value thereof, in the case of a Mortgage Loan
                  with a Loan-to-

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<PAGE>

                  Value Ratio greater than 80%, as determined by the appraisal
                  referred to in clause (i)(a) above; and

         (ii)     the purchase price paid for the related Mortgaged Property by
                  the Mortgagor with the proceeds of the Mortgage Loan;
                  provided, however, that in the case of a refinanced Mortgage
                  Loan (which is a Mortgage Loan the proceeds of which were not
                  used to purchase the related Mortgaged Property) or a Mortgage
                  Loan originated in connection with a "lease option purchase"
                  if the "lease option purchase price" was set 12 months or more
                  prior to origination, such value of the Mortgaged Property is
                  based solely upon clause (i) above.

                  "Voting Rights": The portion of the voting rights of all of
the Certificates which is allocated to any Certificate. With respect to any date
of determination, 98% of all Voting Rights will be allocated among the holders
of the Class A Certificates, the Mezzanine Certificates and the Class CE
Certificates in proportion to the then outstanding Certificate Principal
Balances of their respective Certificates, 1% of all Voting Rights will be
allocated to the holders of the Class P Certificates and 1% of all Voting Rights
will be allocated among the holders of the Residual Certificates. The Voting
Rights allocated to each Class of Certificate shall be allocated among Holders
of each such Class in accordance with their respective Percentage Interests as
of the most recent Record Date.

                  SECTION 1.02. Allocation of Certain Interest Shortfalls.

                  For purposes of calculating the amount of the Monthly Interest
Distributable Amount for the Class A Certificates, the Mezzanine Certificates
and the Class CE Certificates for any Distribution Date, (1) the aggregate
amount of any Prepayment Interest Shortfalls (to the extent not covered by
payments by the Servicer pursuant to Section 3.24) and any Relief Act Interest
Shortfall incurred in respect of the Mortgage Loans for any Distribution Date
shall be allocated first, to the Class CE Certificates based on, and to the
extent of, one month's interest at the then applicable respective Pass-Through
Rate on the respective Notional Amount of each such Certificate and, thereafter,
among the Class A Certificates and the Mezzanine Certificates on a PRO RATA
basis based on, and to the extent of, one month's interest at the then
applicable respective Pass-Through Rate on the respective Certificate Principal
Balance of each such Certificate and (2) the aggregate amount of any Realized
Losses and Net WAC Rate Carryover Amounts incurred for any Distribution Date
shall be allocated to the Class CE Certificates based on, and to the extent of,
one month's interest at the then applicable respective Pass-Through Rate on the
respective Notional Amount of each such Certificate.

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

         (A)      The REMIC I Marker Allocation Percentage of the aggregate
                  amount of any Prepayment Interest Shortfalls (to the extent
                  not covered by payments by the Servicer pursuant to Section
                  3.24) and the REMIC I Marker Allocation Percentage of the
                  aggregate amount of any Relief Act Interest Shortfalls
                  incurred in respect of the Mortgage Loans for any Distribution
                  Date shall be allocated among REMIC I Regular Interest I-LTAA,
                  REMIC I Regular Interest I-LTA1,

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<PAGE>

                  REMIC I Regular Interest I-LTA2, REMIC I Regular Interest
                  I-LTA3, REMIC I Regular Interest I-LTA4, REMIC I Regular
                  Interest I-LTA5, REMIC I Regular Interest I-LTM1, REMIC I
                  Regular Interest I-LTM2, REMIC I Regular Interest I-LTM3,
                  REMIC I Regular Interest I-LTM4, REMIC I Regular Interest
                  I-LTM5, REMIC I Regular Interest I-LTM6, REMIC I Regular
                  Interest I-LTM7, REMIC I Regular Interest I-LTM8, REMIC I
                  Regular Interest I-LTM9, REMIC I Regular Interest I-LTM10,
                  REMIC I Regular Interest I-LTM11 and REMIC I Regular Interest
                  I-LTZZ PRO RATA based on, and to the extent of, one month's
                  interest at the then applicable respective Pass-Through Rate
                  on the respective Uncertificated Balance of each such REMIC I
                  Regular Interest; and

         (B)      The REMIC I Sub WAC Allocation Percentage of the aggregate
                  amount of any Prepayment Interest Shortfalls (to the extent
                  not covered by payments by the Servicer pursuant to Section
                  3.24) and the REMIC I Sub WAC Allocation Percentage of the
                  aggregate amount of any Relief Act Interest Shortfalls
                  incurred in respect of the Mortgage Loans for any Distribution
                  Date shall be allocated to Uncertificated Interest payable to
                  REMIC I Regular Interest I-LT1SUB, REMIC I Regular Interest
                  I-LT1GRP, REMIC I Regular Interest I-LT2SUB, REMIC I Regular
                  Interest I-LT2GRP and REMIC I Regular Interest I-LTXX, pro
                  rata based on, and to the extent of, one month's interest at
                  the then applicable respective Pass-Through Rate on the
                  respective Uncertificated Balance of each such REMIC I Regular
                  Interest.

                  SECTION 1.03. Rights of the NIMS Insurer.

                  Each of the rights of the NIMS Insurer set forth in this
Agreement shall exist so long as (i) the NIMS Insurer has undertaken to
guarantee certain payments of notes issued pursuant to the Indenture and (ii)
the notes issued pursuant to the Indenture remain outstanding or the NIMS
Insurer is owed amounts in respect of its guarantee of payment on such notes;
provided, however, the NIMS Insurer shall not have any rights hereunder (except
pursuant to Section 11.01 and any rights to indemnification hereunder in the
case of clause (ii) below) so long as (i) the NIMS Insurer has not undertaken to
guarantee certain payments of notes issued pursuant to the Indenture or (ii) any
default has occurred and is continuing under the insurance policy issued by the
NIMS Insurer with respect to such notes.

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<PAGE>
                                   ARTICLE II

                          CONVEYANCE OF MORTGAGE LOANS;
                        ORIGINAL ISSUANCE OF CERTIFICATES

                  SECTION 2.01. Conveyance of the Mortgage Loans.

                  The Depositor, concurrently with the execution and delivery
hereof, does hereby transfer, assign, set over and otherwise convey to the
Trustee without recourse, for the benefit of the Certificateholders, all the
right, title and interest of the Depositor, including any security interest
therein for the benefit of the Depositor, in and to the Mortgage Loans
identified on the Mortgage Loan Schedule, the rights of the Depositor under the
Mortgage Loan Purchase Agreement, and all other assets included or to be
included in REMIC I. Such assignment includes all interest and principal
received by the Depositor or the Servicer on or with respect to the Mortgage
Loans (other than payments of principal and interest due on such Mortgage Loans
on or before the Cut-off Date). The Depositor herewith delivers to the Trustee
an executed original Mortgage Loan Purchase Agreement.

                  In connection with such transfer and assignment, the Depositor
does hereby deliver to, and deposit with, the Trustee (or the Custodian on
behalf of the Trustee) the following documents or instruments with respect to
each Mortgage Loan so transferred and assigned (a "Mortgage File"):

                  (i) the original Mortgage Note, endorsed in blank or in the
         following form: "Pay to the order of U.S. Bank National Association, as
         Trustee under the applicable agreement, without recourse," with all
         prior and intervening endorsements showing a complete chain of
         endorsement from the originator to the Person so endorsing to the
         Trustee;

                  (ii) the original Mortgage, noting the presence of the MIN of
         the Mortgage Loan and language indicating that the Mortgage Loan is a
         MOM Loan if the Mortgage Loan is a MOM Loan, with evidence of recording
         thereon, and the original recorded power of attorney, if the Mortgage
         was executed pursuant to a power of attorney, with evidence of
         recording thereon;

                  (iii) unless the Mortgage Loan is registered on the MERS(R)
         System, an original Assignment in blank;

                  (iv) the original recorded Assignment or Assignments showing a
         complete chain of assignment from the originator to the Person
         assigning the Mortgage to the Trustee (or to MERS, if the Mortgage Loan
         is registered on the MERS(R) System and noting the presence of the MIN)
         as contemplated by the immediately preceding clause (iii);

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

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<PAGE>

                  (vi) the original lender's title insurance policy, together
         with all endorsements or riders that were issued with or subsequent to
         the issuance of such policy, insuring the priority of the Mortgage as a
         first or second lien on the Mortgaged Property represented therein as a
         fee interest vested in the Mortgagor, or in the event such original
         title policy is unavailable, a written commitment or uniform binder or
         preliminary report of title issued by the title insurance or escrow
         company.

                  With respect to a maximum of approximately 1.0% of the
Mortgage Loans, by outstanding principal balance of the Mortgage Loans as of the
Cut-off Date, if any original Mortgage Note referred to in Section 2.01(i) above
cannot be located, the obligations of the Depositor to deliver such documents
shall be deemed to be satisfied upon delivery to the Trustee (or the Custodian
on behalf of the Trustee) of a photocopy of such Mortgage Note, if available,
with a lost note affidavit substantially in the form of Exhibit I attached
hereto. If any of the original Mortgage Notes for which a lost note affidavit
was delivered to the Trustee (or the Custodian on behalf of the Trustee) is
subsequently located, such original Mortgage Note shall be delivered to the
Trustee (or the Custodian on behalf of the Trustee) within three Business Days.

                  Except with respect to any Mortgage Loan for which MERS is
identified on the Mortgage or on a properly recorded assignment of the Mortgage
as the mortgagee of record, the Trustee shall promptly (within sixty Business
Days following the later of the Closing Date and the date of receipt by the
Trustee or the Custodian of the recording information for a Mortgage, but in no
event later than ninety days following the Closing Date) enforce the obligations
of the Originator pursuant to the terms of the Mortgage Loan Purchase Agreement
to submit or cause to be submitted for recording, at no expense to the Trust
Fund, the Trustee, the Custodian, the Servicer or the Depositor, in the
appropriate public office for real property records, each Assignment referred to
in Sections 2.01(iii) and (iv) above and in connection therewith, the Trustee
shall enforce the obligation of the Originator pursuant to the terms of the
Mortgage Loan Purchase Agreement to execute each original Assignment in the
following form: "U.S. Bank National Association, as Trustee under the applicable
agreement." In the event that any such Assignment is lost or returned unrecorded
because of a defect therein, the Trustee shall enforce the obligation of the
Originator pursuant to the Mortgage Loan Purchase Agreement to promptly prepare
or cause to be prepared a substitute Assignment or cure or cause to be cured
such defect, as the case may be, and thereafter cause each such Assignment to be
duly recorded.

                  In connection with the assignment of any Mortgage Loan
registered on the MERS(R) System, the Depositor further agrees that it will
cause, within 30 Business Days after the Closing Date, the MERS(R) System to
indicate that such Mortgage Loans have been assigned by the Depositor to the
Trustee in accordance with this Agreement for the benefit of the
Certificateholders by including (or deleting, in the case of Mortgage Loans
which are repurchased in accordance with this Agreement) in such computer files
(a) the code in the field which identifies the specific Trustee and (b) the code
in the field "Pool Field" which identifies the series of the Certificates issued
in connection with such Mortgage Loans. The Depositor further agrees that it
will not, and will not permit the Servicer to, and the Servicer agrees that it
will not, alter the codes referenced in this paragraph with respect to any
Mortgage Loan during the term of this Agreement unless and until such Mortgage
Loan is repurchased in accordance with the terms of this Agreement.

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<PAGE>

                  If any of the documents referred to in Sections 2.01(ii),
(iii) or (iv) has, as of the Closing Date, been submitted for recording but
either (x) has not been returned from the applicable public recording office or
(y) has been lost or such public recording office has retained the original of
such document, the obligations of the Depositor to deliver such documents shall
be deemed to be satisfied upon (1) delivery to the Trustee (or the Custodian on
behalf of the Trustee) of a copy of each such document certified by the
Originator in the case of (x) above or the applicable public recording office in
the case of (y) above to be a true and complete copy of the original that was
submitted for recording and (2) if such copy is certified by the Originator,
delivery to the Trustee (or the Custodian on behalf of the Trustee) promptly
upon receipt thereof of either the original or a copy of such document certified
by the applicable public recording office to be a true and complete copy of the
original. Pursuant to the Mortgage Loan Purchase Agreement, notice shall be
provided to the Trustee and the Rating Agencies by the Originator if delivery
pursuant to clause (2) above will be made more than 180 days after the Closing
Date.

                  If the original lender's title insurance policy was not
delivered pursuant to Section 2.01(vi) above, the Depositor shall deliver or
cause to be delivered to the Trustee (or the Custodian on behalf of the
Trustee), promptly after receipt thereof, the original lender's title insurance
policy. The Depositor shall deliver or cause to be delivered to the Trustee (or
the Custodian on behalf of the Trustee) promptly upon receipt thereof any other
original documents constituting a part of a Mortgage File received with respect
to any Mortgage Loan, including, but not limited to, any original documents
evidencing an assumption or modification of any Mortgage Loan.

                  All original documents relating to the Mortgage Loans that are
not delivered to the Trustee (or the Custodian on behalf of the Trustee) are and
shall be held by or on behalf of the Originator, the Seller, the Depositor or
the Servicer, as the case may be, in trust for the benefit of the Trustee on
behalf of the Certificateholders. In the event that any such original document
is required pursuant to the terms of this Section 2.01 to be a part of a
Mortgage File, such document shall be delivered promptly to the Trustee (or the
Custodian on behalf of the Trustee). Any such original document delivered to or
held by the Depositor that is not required pursuant to the terms of this Section
to be a part of a Mortgage File, shall be delivered promptly to the Servicer.

                  The Depositor and the Trustee hereto understand and agree that
it is not intended that any Mortgage Loan be included in the Trust that is a
"High-Cost Home Loan" as defined by the Homeownership and Equity Protection Act
of 1994 or any other applicable predatory or abusive lending laws.

                  The Depositor hereby directs the Trustee to, and the Trustee
hereby agrees to execute, deliver and perform its obligations under each of the
Cap Contracts on the Closing Date and thereafter on behalf of the Holders of the
Group I Certificates, the Group II Certificates and the Mezzanine Certificates.
The Depositor, the Servicer and the Holders of the Group I Certificates, the
Group II Certificates and the Mezzanine Certificates by their acceptance of such
Certificates acknowledge and agree that the Trustee shall execute, deliver and
perform its obligations under each of the Cap Contracts and shall do so solely
in its capacity as Trustee of the Trust Fund and not in its individual capacity.

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<PAGE>

                  SECTION 2.02. Acceptance of REMIC I by Trustee.

                  The Trustee acknowledges receipt (or receipt by the Custodian
as the duly appointed agent of the Trustee), subject to the provisions of
Section 2.01 and subject to any exceptions noted on the exception report
described in the next paragraph below, the documents referred to in Section 2.01
(other than such documents described in Section 2.01(v)) above and all other
assets included in the definition of "REMIC I" under clauses (i), (iii), (iv)
and (v) (to the extent of amounts deposited into the Distribution Account) and
declares that it holds and will hold such documents and the other documents
delivered to it constituting a Mortgage File, and that it holds or will hold all
such assets and such other assets included in the definition of "REMIC I" in
trust for the exclusive use and benefit of all present and future
Certificateholders.

                  The Trustee (or the Custodian on behalf of the Trustee) agrees
to execute and deliver to the Depositor and the NIMS Insurer on or prior to the
Closing Date an acknowledgment of receipt of the original Mortgage Note (with
any exceptions noted), substantially in the form attached as Exhibit C-3 hereto.

                  The Trustee (or the Custodian on behalf of the Trustee)
agrees, for the benefit of the Certificateholders and the NIMS Insurer, to
review each Mortgage File and, within 45 days of the Closing Date; to certify in
substantially the form attached hereto as Exhibit C-1 (or cause the Custodian to
certify in the form of the Initial Certification attached to the Custodial
Agreement) that, as to each Mortgage Loan listed in the Mortgage Loan Schedule
(other than any Mortgage Loan paid in full or any Mortgage Loan specifically
identified in the exception report annexed thereto as not being covered by such
certification), (i) all documents constituting part of such Mortgage File (other
than such documents described in Section 2.01(v)) required to be delivered to it
pursuant to this Agreement are in its possession, (ii) such documents have been
reviewed by it or the Custodian and appear regular on their face and relate to
such Mortgage Loan and (iii) based on its or the Custodian's examination and
only as to the foregoing, the information set forth in the Mortgage Loan
Schedule that corresponds to items (1), (3), (12), (15) and (18) of the
definition of "Mortgage Loan Schedule" accurately reflects information set forth
in the Mortgage File. It is herein acknowledged that, in conducting such review,
the Trustee (or the Custodian on behalf of the Trustee) is under no duty or
obligation (i) to inspect, review or examine any such documents, instruments,
certificates or other papers to determine whether they are genuine, enforceable,
or appropriate for the represented purpose or whether they have actually been
recorded or that they are other than what they purport to be on their face or
(ii) to determine whether any Mortgage File should include any of the documents
specified in clause (v) of Section 2.01.

                  Prior to the first anniversary date of this Agreement the
Trustee shall deliver to the Depositor, the NIMS Insurer and the Servicer a
final certification in the form annexed hereto as Exhibit C-2 (or shall cause
the Custodian to deliver to the Depositor, the NIMS Insurer and the Servicer a
final certification in the form attached to the Custodial Agreement) evidencing
the completeness of the Mortgage Files, with any applicable exceptions noted
thereon, and the Servicer shall forward a copy thereof to any Sub-Servicer.

                  If in the process of reviewing the Mortgage Files and making
or preparing, as the case may be, the certifications referred to above, the
Trustee (or the Custodian on behalf of the

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<PAGE>

Trustee) finds any document or documents constituting a part of a Mortgage File
to be missing or defective in any material respect, at the conclusion of its
review the Trustee (or the Custodian on behalf of the Trustee) shall so notify
the Depositor, the NIMS Insurer and the Servicer. In addition, upon the
discovery by the Depositor, the NIMS Insurer, the Servicer or the Trustee of a
breach of any of the representations and warranties made by the Originator or
the Seller in the Mortgage Loan Purchase Agreement in respect of any Mortgage
Loan which materially adversely affects such Mortgage Loan or the interests of
the related Certificateholders in such Mortgage Loan, the party discovering such
breach shall give prompt written notice to the other parties.

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

                  The Depositor and the Trustee intend that the assignment and
transfer herein contemplated constitute a sale of the Mortgage Loans, the
related Mortgage Notes and the related documents, conveying good title thereto
free and clear of any liens and encumbrances, from the Depositor to the Trustee
in trust for the benefit of the Certificateholders and that such property not be
part of the Depositor's estate or property of the Depositor in the event of any
insolvency by the Depositor. In the event that such conveyance is deemed to be,
or to be made as security for, a loan, the parties intend that the Depositor
shall be deemed to have granted and does hereby grant to the Trustee a first
priority perfected security interest in all of the Depositor's right, title and
interest in and to the Mortgage Loans, the related Mortgage Notes and the
related documents, and that this Agreement shall constitute a security agreement
under applicable law.

                  SECTION 2.03. Repurchase or Substitution of Mortgage Loans by
                                the Originator or the Seller.

                  (a) Upon discovery or receipt of notice of any materially
defective document in, or that a document is missing from, a Mortgage File or of
the breach by the Originator or the Seller of any representation, warranty or
covenant under the Mortgage Loan Purchase Agreement (including any
representation, warranty or covenant regarding the Prepayment Charge Schedule)
in respect of any Mortgage Loan that materially adversely affects the value of
such Mortgage Loan or the interest therein of the Certificateholders, the
Trustee shall promptly notify the Originator, the NIMS Insurer, the Seller and
the Servicer of such defect, missing document or breach and request that the
Originator or the Seller, as applicable, deliver such missing document or cure
such defect or breach within 90 days from the date the Originator or the Seller,
as applicable, was notified of such missing document, defect or breach, and if
the Originator or the Seller, as applicable, does not deliver such missing
document or cure such defect or breach in all material respects during such
period, the Trustee shall enforce the obligations of the Originator or the
Seller, as applicable, under the Mortgage Loan Purchase Agreement to repurchase
such Mortgage Loan from REMIC I at the Purchase Price within 90 days after the
date on which the Originator or the Seller, as applicable, was notified (subject
to Section 2.03(c)) of such missing document, defect or breach, if and to the
extent that the Originator or the Seller, as applicable, is obligated to do so
under the Mortgage Loan Purchase Agreement. The Purchase Price for the
repurchased Mortgage Loan shall be remitted to the Servicer for deposit in the
Collection Account and the Trustee (or the Custodian on behalf of the

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<PAGE>

Trustee), upon receipt of written certification from the Servicer of such
deposit, shall release to the Originator or the Seller, as applicable, the
related Mortgage File and the Trustee (or the Custodian on behalf of the
Trustee) shall execute and deliver such instruments of transfer or assignment,
in each case without recourse, as the Originator or the Seller, as applicable,
shall furnish to it and as shall be necessary to vest in the Originator or the
Seller, as applicable, any Mortgage Loan released pursuant hereto. In
furtherance of the foregoing, if the Originator or the Seller, as applicable, is
not a member of MERS and repurchases a Mortgage Loan which is registered on the
MERS(R) System, the Originator or the Seller, as applicable, at its own expense
and without any right of reimbursement, shall cause MERS to execute and deliver
an assignment of the Mortgage in recordable form to transfer the Mortgage from
MERS to the Originator or the Seller, as applicable, and shall cause such
Mortgage to be removed from registration on the MERS(R) System in accordance
with MERS' rules and regulations. Neither the Trustee nor the Custodian shall
have any further responsibility with regard to such Mortgage File. In lieu of
repurchasing any such Mortgage Loan as provided above, if so provided in the
Mortgage Loan Purchase Agreement, the Originator or the Seller, as applicable,
may cause such Mortgage Loan to be removed from REMIC I (in which case it shall
become a Deleted Mortgage Loan) and substitute one or more Qualified Substitute
Mortgage Loans in the manner and subject to the limitations set forth in Section
2.03(b); provided, however, the Originator or the Seller, as applicable, may not
substitute a Qualified Substitute Mortgage Loan for any Deleted Mortgage Loan
that violates any predatory or abusive lending law. It is understood and agreed
that the obligation of the Originator or the Seller, as applicable, to cure or
to repurchase (or to substitute for) any Mortgage Loan as to which a document is
missing, a material defect in a constituent document exists or as to which such
a breach has occurred and is continuing shall constitute the sole remedy
respecting such omission, defect or breach available to the Trustee and the
Certificateholders.

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

                  As to any Deleted Mortgage Loan for which the Originator or
the Seller, as applicable, substitutes a Qualified Substitute Mortgage Loan or
Loans, such substitution shall be effected by the Originator or the Seller, as
applicable, delivering to the Trustee (or the Custodian on behalf of the
Trustee), for such Qualified Substitute Mortgage Loan or Loans, the Mortgage
Note, the Mortgage, the Assignment in blank or to the Trustee, and such other
documents and agreements, with all necessary endorsements thereon, as are
required by Section 2.01, together with an Officers' Certificate providing that
each such Qualified Substitute Mortgage Loan satisfies the definition thereof
and specifying the Substitution Adjustment Amount (as described below), if any,
in connection with such substitution. The Trustee (or the Custodian on behalf of
the Trustee) shall acknowledge receipt for such Qualified Substitute Mortgage
Loan or Loans and, within ten Business Days thereafter, review such documents as
specified in Section 2.02 and deliver to the Depositor, the NIMS Insurer and the
Servicer, with respect to such Qualified Substitute Mortgage Loan or Loans, a
certification substantially in the form attached hereto as Exhibit C-1, with any
applicable exceptions noted thereon. Within one year of the date of
substitution, the Trustee (or the Custodian on behalf of the Trustee) shall
deliver to the Depositor, the NIMS Insurer and the Servicer a certification
substantially in the form of Exhibit C-2 hereto with respect to such Qualified
Substitute Mortgage Loan or Loans, with any

                                       71
<PAGE>

applicable exceptions noted thereon. Monthly Payments due with respect to
Qualified Substitute Mortgage Loans in the month of substitution are not part of
REMIC I and will be retained by the Originator or the Seller, as applicable. For
the month of substitution, distributions to Certificateholders will reflect the
Monthly Payment due on such Deleted Mortgage Loan on or before the Due Date in
the month of substitution, and the Originator or the Seller, as applicable,
shall thereafter be entitled to retain all amounts subsequently received in
respect of such Deleted Mortgage Loan. The Depositor shall give or cause to be
given written notice to the Certificateholders and the NIMS Insurer that such
substitution has taken place, shall amend the Mortgage Loan Schedule to reflect
the removal of such Deleted Mortgage Loan from the terms of this Agreement and
the substitution of the Qualified Substitute Mortgage Loan or Loans and shall
deliver a copy of such amended Mortgage Loan Schedule to the Trustee, the
Custodian, the Servicer and the NIMS Insurer. Upon such substitution, such
Qualified Substitute Mortgage Loan or Loans shall constitute part of the
Mortgage Pool and shall be subject in all respects to the terms of this
Agreement and the Mortgage Loan Purchase Agreement, including, all applicable
representations and warranties thereof included in the Mortgage Loan Purchase
Agreement.

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

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

                  (c) Upon discovery by the Depositor, the NIMS Insurer, the
Originator, the Seller, the Servicer or the Trustee that any Mortgage Loan does
not constitute a "qualified mortgage" within the meaning of Section 860G(a)(3)
of the Code, the party discovering such fact shall within two Business Days give
written notice thereof to the other parties hereto and the

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Trustee shall give written notice to the Originator and the Seller. In
connection therewith, the Originator, the Seller or the Depositor shall
repurchase or, subject to the limitations set forth in Section 2.03(b),
substitute one or more Qualified Substitute Mortgage Loans for the affected
Mortgage Loan within 90 days of the earlier of discovery or receipt of such
notice with respect to such affected Mortgage Loan. Such repurchase or
substitution shall be made by (i) the Originator or the Seller, as the case may
be, if the affected Mortgage Loan's status as a non-qualified mortgage is or
results from a breach of any representation, warranty or covenant made by the
Originator or the Seller, as the case may be, under the Mortgage Loan Purchase
Agreement, or (ii) the Depositor, if the affected Mortgage Loan's status as a
non-qualified mortgage is a breach of no representation or warranty. Any such
repurchase or substitution shall be made in the same manner as set forth in
Section 2.03(a). The Trustee (or the Custodian on behalf of the Trustee) shall
reconvey to the Depositor, the Originator or the Seller, as the case may be, the
Mortgage Loan to be released pursuant hereto in the same manner, and on the same
terms and conditions, as it would a Mortgage Loan repurchased for breach of a
representation or warranty.

                  SECTION 2.04. Reserved

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

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

                  (i) The Servicer is duly organized, validly existing, and in
         good standing under the laws of the jurisdiction of its formation and
         has all licenses necessary to carry on its business as now being
         conducted and is licensed, qualified and in good standing in the states
         where the Mortgaged Property is located if the laws of such state
         require licensing or qualification in order to conduct business of the
         type conducted by the Servicer or to ensure the enforceability or
         validity of each Mortgage Loan; the Servicer has the power and
         authority to execute and deliver this Agreement and to perform in
         accordance herewith; the execution, delivery and performance of this
         Agreement (including all instruments of transfer to be delivered
         pursuant to this Agreement) by the Servicer and the consummation of the
         transactions contemplated hereby have been duly and validly authorized;
         this Agreement evidences the valid, binding and enforceable obligation
         of the Servicer, subject to applicable bankruptcy, insolvency,
         reorganization, moratorium or other similar laws affecting the
         enforcement of creditors' rights generally; and all requisite corporate
         action has been taken by the Servicer to make this Agreement valid and
         binding upon the Servicer in accordance with its terms;

                  (ii) The consummation of the transactions contemplated by this
         Agreement are in the ordinary course of business of the Servicer and
         will not result in the material breach of any term or provision of the
         charter or by-laws of the Servicer or result in the breach of any term
         or provision of, or conflict with or constitute a default under or
         result in the acceleration of any obligation under, any material
         agreement, indenture or loan or credit agreement or other instrument to
         which the Servicer or its property is subject, or result in the
         violation of any law, rule, regulation, order, judgment or decree to
         which the Servicer or its property is subject;

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<PAGE>

                  (iii) The execution and delivery of this Agreement by the
         Servicer and the performance and compliance with its obligations and
         covenants hereunder do not require the consent or approval of any
         governmental authority or, if such consent or approval is required, it
         has been obtained;

                  (iv) This Agreement, and all documents and instruments
         contemplated hereby which are executed and delivered by the Servicer,
         constitute and will constitute valid, legal and binding obligations of
         the Servicer, enforceable in accordance with their respective terms,
         except as the enforcement thereof may be limited by applicable
         bankruptcy laws and general principles of equity;

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

                  (vi) There is no action, suit, proceeding or investigation
         pending or, to its knowledge, threatened against the Servicer that,
         either individually or in the aggregate, (A) may result in any change
         in the business, operations, financial condition, properties or assets
         of the Servicer that might prohibit or materially and adversely affect
         the performance by such Servicer of its obligations under, or validity
         or enforceability of, this Agreement, or (B) may result in any material
         impairment of the right or ability of the Servicer to carry on its
         business substantially as now conducted, or (C) would draw into
         question the validity or enforceability of this Agreement or of any
         action taken or to be taken in connection with the obligations of the
         Servicer contemplated herein, or (D) would otherwise be likely to
         impair materially the ability of the Servicer to perform under the
         terms of this Agreement;

                  (vii) No information, certificate of an officer, statement
         furnished in writing or report delivered to the Trustee by the Servicer
         in connection with the transactions contemplated hereby contains any
         untrue statement of a material fact;

                  (viii) The Servicer covenants that its computer and other
         systems used in servicing the Mortgage Loans operate in a manner such
         that the Servicer can service the Mortgage Loans in accordance with the
         terms of this Agreement;

                  (ix) The Servicer will not waive any Prepayment Charge unless
         it is waived in accordance with the standard set forth in Section 3.01;

                  (x) The Servicer has accurately and fully reported, and will
         continue to accurately and fully report on a monthly basis, its
         borrower credit files to each of the three national credit repositories
         in a timely manner; and

                  (xi) 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.

                  It is understood and agreed that the representations,
warranties and covenants set forth in this Section 2.05 shall survive delivery
of the Mortgage Files to the Trustee or the Custodian and shall inure to the
benefit of the Trustee, the Depositor and the Certificateholders.

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Upon discovery by any of the Depositor, the Servicer, the NIMS Insurer or the
Trustee of a breach of any of the foregoing representations, warranties and
covenants which materially and adversely affects the value of any Mortgage Loan
or the interests therein of the Certificateholders, the party discovering such
breach shall give prompt written notice (but in no event later than two Business
Days following such discovery) to the Servicer, the NIMS Insurer and the
Trustee. Notwithstanding the foregoing, within 90 days of the earlier of
discovery by the Servicer or receipt of notice by the Servicer of the breach of
the representation or covenant of the Servicer set forth in Section 2.05(ix)
above which materially and adversely affects the interests of the Holders of the
Class P Certificates in any Prepayment Charge, the Servicer must pay the amount
of such waived Prepayment Charge, for the benefit of the Holders of the Class P
Certificates, by depositing such amount into the Collection Account. The
foregoing shall not, however, limit any remedies available to the
Certificateholders, the Depositor or the Trustee on behalf of the
Certificateholders, pursuant to the Mortgage Loan Purchase Agreement respecting
a breach of the representations, warranties and covenants of the Originator made
in its capacity as a party to the Mortgage Loan Purchase Agreement.

                  SECTION 2.06. Conveyance of REMIC Regular Interests and
                                Acceptance of REMIC I, REMIC II, REMIC III
                                and REMIC IV by the Trustee; Issuance of
                                Certificates.

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

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

                  (c) The Depositor, concurrently with the execution and
delivery hereof, does hereby transfer, assign, set over and otherwise convey in
trust to the Trustee without recourse all the right, title and interest of the
Depositor in and to the Class CE Interest (which is uncertificated) for the
benefit of the Holders of the Class CE Certificates and the Class R-X

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Certificates (in respect of the Class R-III Interest). The Trustee acknowledges
receipt of the Class CE Interest and declares that it holds and will hold the
same in trust for the exclusive use and benefit of the Holders of the Class CE
Certificates and the Class R-X Certificates (in respect of the Class R-III
Interest). The interests evidenced by the Class R-III Interest, together with
the Class CE Certificates, constitute the entire beneficial ownership interest
in REMIC III.

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

                  SECTION 2.07. Issuance of Class R Certificates and Class R-X
Certificates.

                  (a) The Trustee acknowledges the assignment to it of the REMIC
I Regular Interests and, concurrently therewith and in exchange therefor,
pursuant to the written request of the Depositor executed by an officer of the
Depositor, the Trustee has executed, authenticated and delivered to or upon the
order of the Depositor, the Class R Certificates in authorized denominations.
The interests evidenced by the Class R Certificates, together with the REMIC II
Certificates, constitute the entire beneficial ownership interest in REMIC II.

                  (b) The Trustee acknowledges the assignment to it of the Class
CE Interest and the Class P Interest and, concurrently therewith and in exchange
therefor, pursuant to the written request of the Depositor executed by an
officer of the Depositor, the Trustee has executed, authenticated and delivered
to or upon the order of the Depositor, the Class R-X Certificates in authorized
denominations. The interests evidenced by the Class R-X Certificates, together
with the Class CE Certificates and the Class P Certificates constitute the
entire beneficial ownership interest in REMIC III and REMIC IV.

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                                  ARTICLE III

                          ADMINISTRATION AND SERVICING
                              OF THE MORTGAGE LOANS

                  SECTION 3.01. Servicer to Act as Servicer.

                  The Servicer shall service and administer the Mortgage Loans
on behalf of the Trust Fund and in the best interests of and for the benefit of
the Certificateholders (as determined by the Servicer in its reasonable
judgment) in accordance with the terms of this Agreement and the Mortgage Loans
and, to the extent consistent with such terms, in the same manner in which it
services and administers similar mortgage loans for its own portfolio, giving
due consideration to customary and usual standards of practice of mortgage
lenders and loan servicers administering similar mortgage loans but without
regard to:

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

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

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

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

                  To the extent consistent with the foregoing, the Servicer (a)
shall seek to maximize the timely and complete recovery of principal and
interest on the Mortgage Notes and (b) shall waive (or permit a Sub-Servicer to
waive) a Prepayment Charge only under the following circumstances: (i) such
waiver is standard and customary in servicing similar Mortgage Loans and such
waiver relates to a default or a reasonably foreseeable default and would, in
the reasonable judgment of the Servicer, maximize recovery of total proceeds
taking into account the value of such Prepayment Charge and the related Mortgage
Loan, (ii) the collection of such Prepayment Charge would be in violation of
applicable laws, (iii) the amount of the Prepayment Charge set forth on the
Prepayment Charge Schedule is not consistent with the related Mortgage Note or
is otherwise unenforceable or (iv) the collection of such Prepayment Charge
would be considered "predatory" pursuant to written guidance published or issued
by any applicable federal, state or local regulatory authority acting in its
official capacity and having jurisdiction over such matters. If a Prepayment
Charge is waived as permitted by meeting the standard described in clauses (ii),
(iii) or (iv) above, then the Trustee shall enforce the obligation of the
Originator to pay the amount of such waived Prepayment Charge to the Servicer
for deposit in the Collection Account for the benefit of the Holders of the
Class P Certificates. Subject only to the above-described servicing standards
and the terms of this Agreement and of the Mortgage Loans, the Servicer shall
have full power and authority, acting alone or through Sub-Servicers as provided
in Section 3.02, to do or cause to be done any and all things in connection with
such servicing and administration which it may deem necessary or desirable.
Without limiting the generality of the foregoing, the Servicer in its own name
or in the

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name of a Sub-Servicer is hereby authorized and empowered by the Trustee when
the Servicer believes it appropriate in its best judgment in accordance with the
servicing standards set forth above, to execute and deliver, on behalf of the
Certificateholders and the Trustee, any and all instruments of satisfaction or
cancellation, or of partial or full release or discharge, and all other
comparable instruments, with respect to the Mortgage Loans and the Mortgaged
Properties and to institute foreclosure proceedings or obtain a deed-in-lieu of
foreclosure so as to convert the ownership of such properties, and to hold or
cause to be held title to such properties, on behalf of the Trustee and
Certificateholders. The Servicer shall service and administer the Mortgage Loans
in accordance with applicable state and federal law and shall provide to the
Mortgagors any reports required to be provided to them thereby. The Servicer
shall also comply in the performance of this Agreement with all reasonable rules
and requirements of each insurer under any standard hazard insurance policy.
Subject to Section 3.17, within fifteen (15) days of the Closing Date, the
Trustee shall execute, at the written request of the Servicer, and furnish to
the Servicer and any Sub-Servicer any special or limited powers of attorney and
other documents necessary or appropriate to enable the Servicer or any
Sub-Servicer to carry out their servicing and administrative duties hereunder;
provided, such limited powers of attorney or other documents shall be prepared
by the Servicer and submitted to the Trustee for execution. The Trustee shall
not be liable for the actions of the Servicer or any Sub-Servicers under such
powers of attorney.

                  The Servicer further is authorized and empowered by the
Trustee, on behalf of the Certificateholders and the Trustee, in its own name or
in the name of the Sub-Servicer, when the Servicer or the Sub-Servicer, as the
case may be, believes it is 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 Trustee and the Certificateholders 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
Trustee and its successors and assigns. Any reasonable expenses incurred in
connection with the actions described in the preceding sentence or as a result
of MERS discontinuing or becoming unable to continue operations in connection
with the MERS(R) System, shall be reimbursable to the Servicer by withdrawal
from the Collection Account pursuant to Section 3.11.

                  Subject to Section 3.09 hereof, in accordance with the
standards of the preceding paragraph, the Servicer, on escrowed accounts, shall
advance or cause to be advanced funds as necessary for the purpose of effecting
the payment of taxes and assessments on the Mortgaged Properties, which advances
shall be Servicing Advances reimbursable in the first instance from related
collections from the Mortgagors pursuant to Section 3.09, and further as
provided in Section 3.11. Any cost incurred by the Servicer or by Sub-Servicers
in effecting the payment of taxes and assessments on a Mortgaged Property shall
not, for the purpose of calculating distributions to Certificateholders, be
added to the unpaid Stated Principal Balance of the related Mortgage Loan,
notwithstanding that the terms of such Mortgage Loan so permit.

                  Notwithstanding anything in this Agreement to the contrary,
the Servicer may not make any future advances with respect to a Mortgage Loan
(except as provided in Section 4.03) and the Servicer shall not (i) permit any
modification with respect to any Mortgage Loan that would change the Mortgage
Rate, reduce or increase the Stated Principal Balance (except for

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reductions resulting from actual payments of principal) or change the final
maturity date on such Mortgage Loan (unless, as provided in Section 3.07, the
Mortgagor is in default with respect to the Mortgage Loan or such default is, in
the judgment of the Servicer, reasonably foreseeable) or (ii) permit any
modification, waiver or amendment of any term of any Mortgage Loan that would
both (A) effect an exchange or reissuance of such Mortgage Loan under Section
1001 of the Code (or Treasury regulations promulgated thereunder) and (B) cause
any REMIC created hereunder to fail to qualify as a REMIC under the Code or the
imposition of any tax on "prohibited transactions" or "contributions after the
startup date" under the REMIC Provisions.

                  Notwithstanding anything in this Agreement to the contrary and
notwithstanding its ability to do so pursuant to the terms of the related
mortgage note, the Servicer shall not be required to enforce any provision in
any mortgage note the enforcement of which would violate federal, state or local
laws or ordinances designed to discourage predatory lending practices.

                  SECTION 3.02. Sub-Servicing Agreements Between Servicer and
                                Sub-Servicers.

                  (a) The Servicer may enter into Sub-Servicing Agreements with
Sub-Servicers, which may be Affiliates of the Servicer, for the servicing and
administration of the Mortgage Loans; provided, however, that (i) such
sub-servicing arrangement and the terms of the related Sub-Servicing Agreement
must provide for the servicing of the Mortgage Loans in a manner consistent with
the servicing arrangement contemplated hereunder and (ii) the NIMS Insurer shall
have consented to such Sub-Servicing Agreement. The Trustee is hereby authorized
to acknowledge, at the request of the Servicer, any Sub-Servicing Agreement that
meets the requirements applicable to Sub-Servicing Agreements set forth in this
Agreement and that is otherwise permitted under this Agreement.

                  Each Sub-Servicer shall be (i) authorized to transact business
in the state or states where the related Mortgaged Properties it is to service
are situated, if and to the extent required by applicable law to enable the
Sub-Servicer to perform its obligations hereunder and under the Sub-Servicing
Agreement and (ii) a Freddie Mac or Fannie Mae approved mortgage servicer. Each
Sub-Servicing Agreement must impose on the Sub-Servicer requirements conforming
to the provisions set forth in Section 3.08 and provide for servicing of the
Mortgage Loans consistent with the terms of this Agreement. The Servicer will
examine each Sub-Servicing Agreement and will be familiar with the terms
thereof. The terms of any Sub-Servicing Agreement will not be inconsistent with
any of the provisions of this Agreement. Any material variations in any
Sub-Servicing Agreements from the provisions set forth in Section 3.08 relating
to insurance or priority requirements of Sub-Servicing Accounts, or credits and
charges to the Sub-Servicing Accounts or the timing and amount of remittances by
the Sub-Servicers to the Servicer, are conclusively deemed to be inconsistent
with this Agreement and therefore prohibited. The Servicer shall deliver to the
NIMS Insurer and the Trustee copies of all Sub-Servicing Agreements, and any
amendments or modifications thereof, promptly upon the Servicer's execution and
delivery of such instruments.

                  (b) As part of its servicing activities hereunder, the
Servicer, for the benefit of the Trustee and the Certificateholders, shall
enforce the obligations of each Sub-Servicer under the related Sub-Servicing
Agreement, including, without limitation, any obligation to make

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advances in respect of delinquent payments as required by a Sub-Servicing
Agreement. Such enforcement, including, without limitation, the legal
prosecution of claims, termination of Sub-Servicing Agreements, and the pursuit
of other appropriate remedies, shall be in such form and carried out to such an
extent and at such time as the 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 Loans, or (ii) from a specific recovery of
costs, expenses or attorneys' fees against the party against whom such
enforcement is directed.

                  SECTION 3.03. Successor Sub-Servicers.

                  The Servicer, with the consent of the NIMS Insurer, shall be
entitled to terminate any Sub-Servicing Agreement and the rights and obligations
of any Sub-Servicer pursuant to any Sub-Servicing Agreement in accordance with
the terms and conditions of such Sub-Servicing Agreement. In the event of
termination of any Sub-Servicer, all servicing obligations of such Sub-Servicer
shall be assumed simultaneously by the Servicer without any act or deed on the
part of such Sub-Servicer or the Servicer, and the Servicer either shall service
directly the related Mortgage Loans or shall enter into a Sub-Servicing
Agreement with a successor Sub-Servicer which qualifies under Section 3.02.

                  Any Sub-Servicing Agreement shall include the provision that
such agreement may be immediately terminated by the Servicer or the Trustee (if
the Trustee is acting as Servicer) without fee, in accordance with the terms of
this Agreement, in the event that the Servicer (or the Trustee, if such party is
then acting as Servicer) shall, for any reason, no longer be the Servicer
(including termination due to a Servicer Event of Termination).

                  SECTION 3.04. Liability of the Servicer.

                  Notwithstanding any Sub-Servicing Agreement or the provisions
of this Agreement relating to agreements or arrangements between the Servicer
and a Sub-Servicer or reference to actions taken through a Sub-Servicer or
otherwise, the Servicer shall remain obligated and primarily liable to the
Trustee and the Certificateholders for the servicing and administering of the
Mortgage Loans in accordance with the provisions of Section 3.01, without
diminution of such obligation or liability by virtue of such Sub-Servicing
Agreements or arrangements or by virtue of indemnification from the Sub-Servicer
and to the same extent and under the same terms and conditions as if the
Servicer alone were servicing and administering the Mortgage Loans. The Servicer
shall be entitled to enter into any agreement with a Sub-Servicer for
indemnification of the Servicer by such Sub-Servicer and nothing contained in
this Agreement shall be deemed to limit or modify such indemnification.

                  SECTION 3.05. No Contractual Relationship Between
                                Sub-Servicers and the NIMS Insurer,
                                Trustee or Certificateholders.

                  Any Sub-Servicing Agreement that may be entered into and any
transactions or services relating to the Mortgage Loans involving a Sub-Servicer
in its capacity as such shall be deemed to be between the Sub-Servicer and the
Servicer alone, and the NIMS Insurer, the

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Trustee or Certificateholders shall not be deemed parties thereto and shall have
no claims, rights, obligations, duties or liabilities with respect to the
Sub-Servicer except as set forth in Section 3.06. The Servicer shall be solely
liable for all fees owed by it to any Sub-Servicer, irrespective of whether the
Servicer's compensation pursuant to this Agreement is sufficient to pay such
fees.

                  SECTION 3.06. Assumption or Termination of Sub-Servicing
                                Agreements by Trustee.

                  In the event the Servicer shall for any reason no longer be
the servicer (including by reason of the occurrence of a Servicer Event of
Termination), the Trustee shall thereupon assume all of the rights and
obligations of the Servicer under each Sub-Servicing Agreement that the Servicer
may have entered into, unless the Trustee elects to terminate any Sub-Servicing
Agreement in accordance with its terms as provided in Section 3.03. Upon such
assumption, the Trustee (or the successor servicer appointed pursuant to Section
7.02) shall be deemed, subject to Section 3.03, to have assumed all of the
departing Servicer's interest therein and to have replaced the departing
Servicer as a party to each Sub-Servicing Agreement to the same extent as if
each Sub-Servicing Agreement had been assigned to the assuming party, except
that (i) the departing Servicer shall not thereby be relieved of any liability
or obligations under any Sub-Servicing Agreement that arose before it ceased to
be the Servicer and (ii) neither the Trustee nor any successor Servicer shall be
deemed to have assumed any liability or obligation of the Servicer that arose
before it ceased to be the Servicer.

                  The Servicer at its expense shall, upon request of the
Trustee, deliver to the assuming party all documents and records relating to
each Sub-Servicing Agreement and the Mortgage Loans then being serviced and an
accounting of amounts collected and held by or on behalf of it, and otherwise
use its best efforts to effect the orderly and efficient transfer of the
Sub-Servicing Agreements to the assuming party.

                  SECTION 3.07. Collection of Certain Mortgage Loan Payments.

                  The Servicer shall make reasonable efforts, in accordance with
the servicing standards set forth in Section 3.01, to collect all payments
called for under the terms and provisions of the Mortgage Loans and the
provisions of any applicable insurance policies provided to the Servicer.
Consistent with the foregoing, the Servicer may in its discretion (i) waive any
late payment charge or, if applicable, any penalty interest, (ii) waive any
provisions of any Mortgage Loan requiring the related Mortgagor to submit to
mandatory arbitration with respect to disputes arising thereunder or (iii)
extend the due dates for the Monthly Payments due on a Mortgage Note for a
period of not greater than 180 days; provided, however, that any extension
pursuant to clause (iii) above shall not affect the amortization schedule of any
Mortgage Loan for purposes of any computation hereunder, except as provided
below. In the event of any such arrangement pursuant to clause (iii) above, the
Servicer shall make timely Advances on such Mortgage Loan during such extension
pursuant to Section 4.04 and in accordance with the amortization schedule of
such Mortgage Loan without modification thereof by reason of such arrangement.
Notwithstanding the foregoing, in the event that any Mortgage Loan is in default
or, in the judgment of the Servicer, such default is reasonably foreseeable, the
Servicer, consistent with the standards set forth in Section 3.01, may also
waive, modify or vary any term of such Mortgage Loan (including modifications
that would change the Mortgage Rate,

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forgive the payment of principal or interest or extend the final maturity date
of such Mortgage Loan), accept payment from the related Mortgagor of an amount
less than the Stated Principal Balance in final satisfaction of such Mortgage
Loan, or consent to the postponement of strict compliance with any such term or
otherwise grant indulgence to any Mortgagor (any and all such waivers,
modifications, variances, forgiveness of principal or interest, postponements,
or indulgences collectively referred to herein as "forbearance"). The Servicer's
analysis supporting any forbearance and the conclusion that any forbearance
meets the standards of Section 3.01 shall be reflected in writing in the
Mortgage File or the Servicer's books and records.

                  SECTION 3.08. Sub-Servicing Accounts.

                  In those cases where a Sub-Servicer is servicing a Mortgage
Loan pursuant to a Sub- Servicing Agreement, the Sub-Servicer will be required
to establish and maintain one or more accounts (collectively, the "Sub-Servicing
Account"). The Sub-Servicing Account shall be an Eligible Account and shall
comply with all requirements of this Agreement relating to the Collection
Account. The Sub-Servicer shall deposit in the clearing account in which it
customarily deposits payments and collections on mortgage loans in connection
with its mortgage loan servicing activities on a daily basis, and in no event
more than one Business Day after the Sub-Servicer's receipt thereof, all
proceeds of Mortgage Loans received by the Sub-Servicer less its servicing
compensation to the extent permitted by the Sub-Servicing Agreement, and shall
thereafter deposit such amounts in the Sub-Servicing Account, in no event more
than two Business Days after the receipt of such amounts. The Sub-Servicer shall
thereafter deposit such proceeds in the Collection Account or remit such
proceeds to the Servicer for deposit in the Collection Account not later than
two Business Days after the deposit of such amounts in the Sub-Servicing
Account. For purposes of this Agreement, the Servicer shall be deemed to have
received payments on the Mortgage Loans when the Sub-Servicer receives such
payments.

                  SECTION 3.09. Collection of Taxes, Assessments and Similar
                                Items; Servicing Accounts.

                  The Servicer shall establish and maintain, or cause to be
established and maintained, one or more accounts (the "Servicing Accounts"),
into which all Escrow Payments shall be deposited and retained. Servicing
Accounts shall be Eligible Accounts. The Servicer shall deposit in the clearing
account in which it customarily deposits payments and collections on mortgage
loans in connection with its mortgage loan servicing activities on a daily
basis, and in no event more than one Business Day after the Servicer's receipt
thereof, all Escrow Payments collected on account of the Mortgage Loans and
shall thereafter deposit such Escrow Payments in the Servicing Accounts, in no
event more than two Business Days after the receipt of such Escrow Payments, all
Escrow Payments collected on account of the Mortgage Loans for the purpose of
effecting the payment of any such items as required under the terms of this
Agreement. Withdrawals of amounts from a Servicing Account may be made only to
(i) effect payment of taxes, assessments, hazard insurance premiums, and
comparable items in a manner and at a time that assures that the lien priority
of the Mortgage is not jeopardized (or, with respect to the payment of taxes, in
a manner and at a time that avoids the loss of the Mortgaged Property due to a
tax sale or the foreclosure as a result of a tax lien); (ii) reimburse the
Servicer (or a Sub-Servicer to the extent provided in the related Sub-Servicing
Agreement) out of related collections for any Servicing Advances made pursuant
to Section 3.01 (with respect to taxes and

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assessments) and Section 3.14 (with respect to hazard insurance); (iii) refund
to Mortgagors any sums as may be determined to be overages; (iv) pay interest,
if required and as described below, to Mortgagors on balances in the Servicing
Account; or (v) clear and terminate the Servicing Account at the termination of
the Servicer's obligations and responsibilities in respect of the Mortgage Loans
under this Agreement in accordance with Article X. In the event the Servicer
shall deposit in a Servicing Account any amount not required to be deposited
therein or any amount previously deposited therein is unpaid by the related
Mortgagor's banking institution, it may at any time withdraw such amount from
such Servicing Account, any provision herein to the contrary notwithstanding.
The Servicer will be responsible for the administration of the Servicing
Accounts and will be obligated to make Servicing Advances to such accounts when
and as necessary to avoid the lapse of insurance coverage on the Mortgaged
Property, or which the Servicer knows, or in the exercise of the required
standard of care of the Servicer hereunder should know, is necessary to avoid
the loss of the Mortgaged Property due to a tax sale or the foreclosure as a
result of a tax lien. If any such payment has not been made and the Servicer
receives notice of a tax lien with respect to the Mortgage being imposed, the
Servicer will, within 10 Business Days of receipt of such notice, advance or
cause to be advanced funds necessary to discharge such lien on the Mortgaged
Property. As part of its servicing duties, the Servicer or Sub-Servicers shall
pay to the Mortgagors interest on funds in the Servicing Accounts, to the extent
required by law and, to the extent that interest earned on funds in the
Servicing Accounts is insufficient, to pay such interest from its or their own
funds, without any reimbursement therefor. The Servicer may pay to itself any
excess interest on funds in the Servicing Accounts, to the extent such action is
in conformity with the servicing standard set forth in Section 3.01, is
permitted by law and such amounts are not required to be paid to Mortgagors or
used for any of the other purposes set forth above.

                  SECTION 3.10. Collection Account and Distribution Account.

                  (a) On behalf of the Trust Fund, the Servicer shall establish
and maintain, or cause to be established and maintained, one or more accounts
(such account or accounts, the "Collection Account"), held in trust for the
benefit of the Trustee and the Certificateholders. On behalf of the Trust Fund,
the Servicer shall deposit or cause to be deposited in the clearing account in
which it customarily deposits payments and collections on mortgage loans in
connection with its mortgage loan servicing activities on a daily basis, and in
no event more than one Business Day after the Servicer's receipt thereof, and
shall thereafter deposit in the Collection Account, in no event more than two
Business Days after the Servicer's receipt thereof, as and when received or as
otherwise required hereunder, the following payments and collections received or
made by it subsequent to the Cut-off Date (other than in respect of principal or
interest on the Mortgage Loans due on or before the Cut-off Date) or payments
(other than Principal Prepayments) received by it on or prior to the Cut-off
Date but allocable to a Due Period subsequent thereto:

                  (i) all payments on account of principal, including Principal
         Prepayments (but not Prepayment Charges), on the Mortgage Loans;

                  (ii) all payments on account of interest (net of the Servicing
         Fee) on each Mortgage Loan;

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                  (iii) all Insurance Proceeds, Liquidation Proceeds, Subsequent
         Recoveries and condemnation proceeds (other than proceeds collected in
         respect of any particular REO Property and amounts paid in connection
         with a purchase of Mortgage Loans and REO Properties pursuant to
         Section 9.01);

                  (iv) any amounts required to be deposited pursuant to Section
         3.12 in connection with any losses realized on Permitted Investments
         with respect to funds held in the Collection Account;

                  (v) any amounts required to be deposited by the Servicer
         pursuant to the second paragraph of Section 3.14(a) in respect of any
         blanket policy deductibles;

                  (vi) all proceeds of any Mortgage Loan repurchased or
         purchased in accordance with Section 2.03, Section 3.16(c) or Section
         9.01;

                  (vii) all amounts required to be deposited in connection with
         Substitution Adjustments pursuant to Section 2.03; and

                  (viii) all Prepayment Charges collected by the Servicer and
         any Servicer Prepayment Charge Payment Amounts in connection with the
         Principal Prepayment of any of the Mortgage Loans.

                  The foregoing requirements for deposit in the Collection
Account shall be exclusive, it being understood and agreed that, without
limiting the generality of the foregoing, payments in the nature of Servicing
Fees, late payment charges, Prepayment Interest Excess, assumption fees,
insufficient funds charges and ancillary income (other than Prepayment Charges)
need not be deposited by the Servicer in the Collection Account and may be
retained by the Servicer as additional compensation. In the event the Servicer
shall deposit in the Collection Account any amount not required to be deposited
therein, it may at any time withdraw such amount from the Collection Account,
any provision herein to the contrary notwithstanding.

                  (b) On behalf of the Trust Fund, the Trustee shall establish
and maintain one or more accounts (such account or accounts, the "Distribution
Account"), held in trust for the benefit of the Trustee and the
Certificateholders. On behalf of the Trust Fund, the Servicer shall deliver to
the Trustee in immediately available funds for deposit in the Distribution
Account on or before 1:00 p.m. New York time (i) on the Servicer Remittance
Date, that portion of the Available Funds (calculated without regard to the
references in the definition thereof to amounts that may be withdrawn from the
Distribution Account) for the related Distribution Date then on deposit in the
Collection Account, the amount of all Prepayment Charges collected during the
applicable Prepayment Period by the Servicer and Servicer Prepayment Charge
Payment Amounts in connection with the Principal Prepayment of any of the
Mortgage Loans then on deposit in the Collection Account, the amount of any
funds reimbursable to an Advancing Person pursuant to Section 3.29 (unless such
amounts are to be remitted in another manner as specified in the documentation
establishing the related Advance Facility) and (ii) on each Business Day as of
the commencement of which the balance on deposit in the Collection Account
exceeds $75,000 following any withdrawals pursuant to the next succeeding
sentence, the amount of such excess, but only if the Collection Account
constitutes an Eligible Account solely pursuant to

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clause (ii) of the definition of "Eligible Account." If the balance on deposit
in the Collection Account exceeds $75,000 as of the commencement of business on
any Business Day and the Collection Account does not qualify as an Eligible
Account pursuant to clauses (i), (iii) or (iv) of the definition of "Eligible
Account," the Servicer shall, on or before 1:00 p.m. New York time on such
Business Day, withdraw from the Collection Account any and all amounts payable
or reimbursable to the Servicer, the Advancing Person, the Trustee or any
Sub-Servicer pursuant to Section 3.11 and shall pay such amounts to the Persons
entitled thereto.

                  (c) Funds in the Collection Account and the Distribution
Account may be invested in Permitted Investments in accordance with the
provisions set forth in Section 3.12. The Servicer shall give written notice to
the NIMS Insurer and the Trustee of the location of the Collection Account
maintained by it when established and prior to any change thereof. The Trustee
shall give notice to the NIMS Insurer, the Servicer and the Depositor of the
location of the Distribution Account when established and prior to any change
thereof.

                  (d) Funds held in the Collection Account at any time may be
delivered by the Servicer to the Trustee for deposit in an account (which may be
the Distribution Account and must satisfy the standards for the Distribution
Account as set forth in the definition thereof) and for all purposes of this
Agreement shall be deemed to be a part of the Collection Account; provided,
however, that the Trustee shall have the sole authority to withdraw any funds
held pursuant to this subsection (d). In the event the Servicer shall deliver to
the Trustee for deposit in the Distribution Account any amount not required to
be deposited therein, it may at any time request that the Trustee withdraw such
amount from the Distribution Account and remit to it any such amount, any
provision herein to the contrary notwithstanding. In addition, the Servicer,
with respect to items (i) through (iv) below, shall deliver to the Trustee from
time to time for deposit, and the Trustee, with respect to items (i) through
(iv) below, shall so deposit, in the Distribution Account:

                  (i) any Advances, as required pursuant to Section 4.04;

                  (ii) any amounts required to be deposited pursuant to Section
         3.23(d) or (f) in connection with any REO Property;

                  (iii) any amounts to be paid by the Servicer in connection
         with a purchase of Mortgage Loans and REO Properties pursuant to
         Section 10.01;

                  (iv) any Compensating Interest to be deposited pursuant to
         Section 3.24 in connection with any Prepayment Interest Shortfall; and

                  (v) any amounts required to be paid to the Trustee pursuant to
         the Agreement, including, but not limited to Section 3.06 and Section
         7.02.

                  SECTION 3.11. Withdrawals from the Collection Account and
                                Distribution Account.

                  (a) The Servicer shall, from time to time, make withdrawals
from the Collection Account for any of the following purposes or as described in
Section 4.04:

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                  (i) to remit to the Trustee for deposit in the Distribution
         Account the amounts required to be so remitted pursuant to Section
         3.10(b) or permitted to be so remitted pursuant to the first sentence
         of Section 3.10(d);

                  (ii) subject to Section 3.16(d), to reimburse the Servicer for
         (a) any unreimbursed Advances to the extent of amounts received which
         represent Late Collections (net of the related Servicing Fees),
         Liquidation Proceeds and Insurance Proceeds on Mortgage Loans or REO
         Properties with respect to which such Advances were made in accordance
         with the provisions of Section 4.04; or (b) without limiting any right
         of withdrawal set forth in clause (vi) below, any unreimbursed Advances
         that, upon a Final Recovery Determination with respect to such Mortgage
         Loan, are Nonrecoverable Advances, but only to the extent that Late
         Collections, Liquidation Proceeds and Insurance Proceeds received with
         respect to such Mortgage Loan are insufficient to reimburse the
         Servicer for such unreimbursed Advances;

                  (iii) subject to Section 3.16(d), to pay the Servicer or any
         Sub-Servicer (a) any unpaid Servicing Fees, (b) any unreimbursed
         Servicing Advances with respect to each Mortgage Loan, but only to the
         extent of any Late Collections, Liquidation Proceeds and Insurance
         Proceeds received with respect to such Mortgage Loan or REO Property,
         and (c) without limiting any right of withdrawal set forth in clause
         (vi) below, any Servicing Advances made with respect to a Mortgage Loan
         that, upon a Final Recovery Determination with respect to such Mortgage
         Loan are Nonrecoverable Advances, but only to the extent that Late
         Collections, Liquidation Proceeds and Insurance Proceeds received with
         respect to such Mortgage Loan are insufficient to reimburse the
         Servicer or any Sub-Servicer for Servicing Advances;

                  (iv) to pay to the Servicer as additional servicing
         compensation (in addition to the Servicing Fee) on the Servicer
         Remittance Date any interest or investment income earned on funds
         deposited in the Collection Account;

                  (v) to pay itself or the Originator with respect to each
         Mortgage Loan that has previously been purchased or replaced pursuant
         to Section 2.03 or Section 3.16(c) all amounts received thereon
         subsequent to the date of purchase or substitution, as the case may be;

                  (vi) to reimburse the Servicer for any Advance or Servicing
         Advance previously made which the Servicer has determined to be a
         Nonrecoverable Advance in accordance with the provisions of Section
         4.04;

                  (vii) to pay, or to reimburse the Servicer for Servicing
         Advances in respect of, expenses incurred in connection with any
         Mortgage Loan pursuant to Section 3.16(b);

                  (viii) to reimburse the Servicer for expenses incurred by or
         reimbursable to the Servicer pursuant to Section 6.03;

                  (ix) to reimburse the NIMS Insurer, the Servicer (if the
         Servicer is not an Affiliate of the Originator) or the Trustee, as the
         case may be, for the enforcement

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         expenses reasonably incurred in respect of the breach or defect giving
         rise to the purchase obligation under Section 2.03 of this Agreement
         that were included in the Purchase Price of the Mortgage Loan,
         including any expenses arising out of the enforcement of the purchase
         obligation;

                  (x) to pay itself any Prepayment Interest Excess (to the
         extent not otherwise retained); and

                  (xi) to clear and terminate the Collection Account pursuant to
         Section 9.01.

                  The foregoing requirements for withdrawal from the Collection
Account shall be exclusive. In the event the Servicer shall deposit in the
Collection Account any amount not required to be deposited therein or any amount
previously deposited therein is unpaid by the related Mortgagor's banking
institution, it may at any time withdraw such amount from the Collection
Account, any provision herein to the contrary notwithstanding.

                  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 Collection Account, to the extent held by or on behalf of
it, pursuant to subclauses (ii), (iii), (iv), (v), (vi) and (vii) above. The
Servicer shall provide written notification to the NIMS Insurer and the Trustee,
on or prior to the next succeeding Servicer Remittance Date, upon making any
withdrawals from the Collection Account pursuant to subclause (vi) above;
provided that an Officers' Certificate in the form described under Section
4.04(d) shall suffice for such written notification to the Trustee in respect
hereof.

                  (b) The Trustee shall, from time to time, make withdrawals
from the Distribution Account, for any of the following purposes, without
priority:

                  (i) to make distributions in accordance with Section 4.01;

                  (ii) to pay itself the Trustee Fee and any Extraordinary Trust
         Fund Expenses pursuant to Section 8.05;

                  (iii) to pay any amounts in respect of taxes pursuant to
         Section 10.01(g);

                  (iv) to clear and terminate the Distribution Account pursuant
         to Section 9.01;

                  (v) to pay any amounts required to be paid to the Trustee
         pursuant to this Agreement, including but not limited to funds required
         to be paid pursuant to Section 3.06, Section 7.02 and Section 8.05;

                  (vi) to pay to the Trustee, any interest or investment income
         earned on funds deposited in the Distribution Account; and

                  (vii) to pay to an Advancing Person reimbursements for
         Advances and/or Servicing Advances pursuant to Section 3.29.

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                  SECTION 3.12. Investment of Funds in the Collection Account
                                and the Distribution Account.

                  (a) The Servicer may direct any depository institution
maintaining the Collection Account and REO Account to invest the funds on
deposit in such accounts, and the Trustee may direct any depository institution
maintaining the Distribution Account to invest the funds on deposit in such
account or to hold such funds uninvested (each such account, for the purposes of
this Section 3.12, an "Investment Account"). All investments pursuant to this
Section 3.12 shall be in one or more Permitted Investments bearing interest or
sold at a discount, and maturing, unless payable on demand, (i) no later than
the Business Day immediately preceding the date on which such funds are required
to be withdrawn from such account pursuant to this Agreement, if a Person other
than the Trustee is the obligor thereon or if such investment is managed or
advised by a Person other than the Trustee or an Affiliate of the Trustee, and
(ii) no later than the date on which such funds are required to be withdrawn
from such account pursuant to this Agreement, if the Trustee is the obligor
thereon or if such investment is managed or advised by the Trustee or any
Affiliate. All such Permitted Investments shall be held to maturity, unless
payable on demand. Any investment of funds in an Investment Account shall be
made in the name of the Trustee (in its capacity as such), or in the name of a
nominee of the Trustee. The Trustee shall be entitled to sole possession (except
with respect to investment direction of funds held in the Collection Account and
REO Account and any income and gain realized thereon) over each such investment,
and any certificate or other instrument evidencing any such investment shall be
delivered directly to the Trustee or its agent, together with any document of
transfer necessary to transfer title to such investment to the Trustee or its
nominee. In the event amounts on deposit in an Investment Account are at any
time invested in a Permitted Investment payable on demand, the Trustee shall:

                  (x) consistent with any notice required to be given
         thereunder, demand that payment thereon be made on the last day such
         Permitted Investment may otherwise mature hereunder in an amount equal
         to the lesser of (1) all amounts then payable thereunder and (2) the
         amount required to be withdrawn on such date; and

                  (y) demand payment of all amounts due thereunder promptly upon
         determination by a Responsible Officer of the Trustee that such
         Permitted Investment would not constitute a Permitted Investment in
         respect of funds thereafter on deposit in the Investment Account.

                  (b) All income and gain realized from the investment of funds
deposited in the Collection Account and any REO Account held by or on behalf of
the Servicer shall be for the benefit of the Servicer and shall be subject to
its withdrawal in accordance with Section 3.11 or Section 3.23, as applicable.
The Servicer shall deposit in the Collection Account or any REO Account, as
applicable, the amount of any loss of principal incurred in respect of any such
Permitted Investment made with funds in such Account immediately upon
realization of such loss.

                  (c) All income and gain realized from the investment of funds
deposited in the Distribution Account shall be for the benefit of the Trustee.
The Trustee shall deposit in the Distribution Account the amount of any loss of
principal incurred in respect of any such

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Permitted Investment made with funds in such Account immediately upon
realization of such loss. Notwithstanding the foregoing, the Trustee may at its
discretion, and without liability, hold the funds in the Distribution Account
uninvested.

                  (d) Except as otherwise expressly provided in this Agreement,
if any default occurs in the making of a payment due under any Permitted
Investment, or if a default occurs in any other performance required under any
Permitted Investment, the Trustee may and, subject to Section 8.01 and Section
8.02(a)(v), upon the request of the NIMS Insurer or the Holders of Certificates
representing more than 50% of the Voting Rights allocated to any Class of
Certificates, shall take such action as may be appropriate to enforce such
payment or performance, including the institution and prosecution of appropriate
proceedings.

                  SECTION 3.13. [Reserved].

                  SECTION 3.14. Maintenance of Hazard Insurance and Errors and
                                Omissions and Fidelity Coverage.

                  (a) The Servicer shall cause to be maintained for each
Mortgage Loan hazard insurance with extended coverage on the Mortgaged Property
in an amount which is at least equal to the least of (i) the current Principal
Balance of such Mortgage Loan, (ii) the amount necessary to fully compensate for
any damage or loss to the improvements that are a part of such property on a
replacement cost basis and (iii) the maximum insurable value of the improvements
which are part of such Mortgaged Property, in each case in an amount not less
than such amount as is necessary to avoid the application of any coinsurance
clause contained in the related hazard insurance policy. The Servicer shall also
cause to be maintained hazard insurance with extended coverage on each REO
Property in an amount which is at least equal to the least of (i) the maximum
insurable value of the improvements which are a part of such property, (ii) the
outstanding Principal Balance of the related Mortgage Loan at the time it became
an REO Property and (iii) the maximum insurable value of the improvements which
are part of such REO Property. The Servicer will comply in the performance of
this Agreement with all reasonable rules and requirements of each insurer under
any such hazard policies. Any amounts to be collected by the Servicer under any
such policies (other than amounts to be applied to the restoration or repair of
the property subject to the related Mortgage or amounts to be released to the
Mortgagor in accordance with the procedures that the Servicer would follow in
servicing loans held for its own account, subject to the terms and conditions of
the related Mortgage and Mortgage Note) shall be deposited in the Collection
Account, subject to withdrawal pursuant to Section 3.11, if received in respect
of a Mortgage Loan, or in the REO Account, subject to withdrawal pursuant to
Section 3.23, if received in respect of an REO Property. Any cost incurred by
the Servicer in maintaining any such insurance shall not, for the purpose of
calculating distributions to Certificateholders, be added to the unpaid
Principal Balance of the related Mortgage Loan, notwithstanding that the terms
of such Mortgage Loan so permit. It is understood and agreed that no earthquake
or other additional insurance is to be required of any Mortgagor other than
pursuant to such applicable laws and regulations as shall at any time be in
force and as shall require such additional insurance. If the Mortgaged Property
or REO Property is at any time in an area identified in the Federal Register by
the Federal Emergency Management Agency as having special flood hazards and
flood insurance has been made available, the Servicer will cause to be
maintained a flood insurance policy in respect thereof.

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Such flood insurance shall be in an amount equal to the least of (i) the unpaid
Principal Balance of the related Mortgage Loan, (ii) the maximum amount of such
insurance available for the related Mortgaged Property under the national flood
insurance program (assuming that the area in which such Mortgaged Property is
located is participating in such program) and (iii) the maximum insurable value
of the improvements which are part of such Mortgaged Property.

                  In the event that the Servicer shall obtain and maintain a
blanket policy insuring against hazard losses on all of the Mortgage Loans, it
shall conclusively be deemed to have satisfied its obligations as set forth in
the first two sentences of this Section 3.14, it being understood and agreed
that such policy may contain a deductible clause on terms substantially
equivalent to those commercially available and maintained by competent
servicers, in which case the Servicer shall, in the event that there shall not
have been maintained on the related Mortgaged Property or REO Property a policy
complying with the first two sentences of this Section 3.14, and there shall
have been one or more losses which would have been covered by such policy,
deposit to the Collection Account from its own funds the amount not otherwise
payable under the blanket policy because of such deductible clause. In
connection with its activities as servicer of the Mortgage Loans, the Servicer
agrees to prepare and present, on behalf of itself, the Trustee and
Certificateholders, claims under any such blanket policy in a timely fashion in
accordance with the terms of such policy.

                  (b) The Servicer shall keep in force during the term of this
Agreement a policy or policies of insurance covering errors and omissions for
failure in the performance of the Servicer's obligations under this Agreement,
which policy or policies shall be in such form and amount that would meet the
requirements of Fannie Mae or Freddie Mac if it were the purchaser of the
Mortgage Loans, unless the Servicer has obtained a waiver of such requirements
from Fannie Mae or Freddie Mac. The Servicer shall also maintain a fidelity bond
in the form and amount that would meet the requirements of Fannie Mae or Freddie
Mac, unless the Servicer has obtained a waiver of such requirements from Fannie
Mae or Freddie Mac. The Servicer shall be deemed to have complied with this
provision if an Affiliate of the Servicer has such errors and omissions and
fidelity bond coverage and, by the terms of such insurance policy or fidelity
bond, the coverage afforded thereunder extends to the Servicer. Any such errors
and omissions policy and fidelity bond shall by its terms not be cancelable
without thirty days' prior written notice to the Trustee and the NIMS Insurer.
The Servicer shall also cause each Sub-Servicer to maintain a policy of
insurance covering errors and omissions and a fidelity bond which would meet
such requirements.

                  SECTION 3.15. Enforcement of Due-On-Sale Clauses; Assumption
                                Agreements.

                  The Servicer will, to the extent it has knowledge of any
conveyance or prospective conveyance of any Mortgaged Property by any Mortgagor
(whether by absolute conveyance or by contract of sale, and whether or not the
Mortgagor remains or is to remain liable under the Mortgage Note and/or the
Mortgage), exercise its rights to accelerate the maturity of such Mortgage Loan
under the "due-on-sale" clause, if any, applicable thereto; provided, however,
that the Servicer shall not be required to take such action if in its sole
business judgment the Servicer believes it is not in the best interests of the
Trust Fund and shall not exercise any such rights if prohibited by law from
doing so. If the Servicer reasonably

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believes it is unable under applicable law to enforce such "due-on-sale" clause,
or if any of the other conditions set forth in the proviso to the preceding
sentence apply, the Servicer will enter into an assumption and modification
agreement from or with the person to whom such property has been conveyed or is
proposed to be conveyed, pursuant to which such person becomes liable under the
Mortgage Note and, to the extent permitted by applicable state law, the
Mortgagor remains liable thereon. The Servicer is also authorized, to the extent
permitted under the related Mortgage Note, to enter into a substitution of
liability agreement with such person, pursuant to which the original Mortgagor
is released from liability and such person is substituted as the Mortgagor and
becomes liable under the Mortgage Note, provided that no such substitution shall
be effective unless such person satisfies the underwriting criteria of the
Servicer for a mortgage loan similar to the Mortgage Loan. In connection with
any assumption, modification or substitution, the Servicer shall apply such
underwriting standards and follow such practices and procedures as shall be
normal and usual in its general mortgage servicing activities and as it applies
to other mortgage loans owned solely by it. The Servicer shall not take or enter
into any assumption and modification agreement, however, unless (to the extent
practicable in the circumstances) it shall have received confirmation, in
writing, of the continued effectiveness of any applicable hazard insurance
policy. Any fee collected by the Servicer in respect of an assumption,
modification or substitution of liability agreement shall be retained by the
Servicer as additional servicing compensation. In connection with any such
assumption, no material term of the Mortgage Note (including but not limited to
the related Mortgage Rate and the amount of the Monthly Payment) may be amended
or modified, except as otherwise required pursuant to the terms thereof. The
Servicer shall notify the Trustee and the Custodian that any such substitution,
modification or assumption agreement has been completed by forwarding to the
Custodian the executed original of such substitution, modification or assumption
agreement, which document shall be added to the related Mortgage File and shall,
for all purposes, be considered a part of such Mortgage File to the same extent
as all other documents and instruments constituting a part thereof.

                  Notwithstanding the foregoing paragraph or any other provision
of this Agreement, the Servicer shall not be deemed to be in default, breach or
any other violation of its obligations hereunder by reason of any assumption of
a Mortgage Loan by operation of law or by the terms of the Mortgage Note or any
assumption which the Servicer may be restricted by law from preventing, for any
reason whatsoever. For purposes of this Section 3.15, the term "assumption" is
deemed to also include a sale (of the Mortgaged Property) subject to the
Mortgage that is not accompanied by an assumption or substitution of liability
agreement.

                  SECTION 3.16. Realization Upon Defaulted Mortgage Loans.

                  (a) The Servicer shall use its best efforts, consistent with
the servicing standards set forth in Section 3.01, to foreclose upon or
otherwise comparably convert the ownership of properties securing such of the
Mortgage Loans as come into and continue in default and as to which no
satisfactory arrangements can be made for collection of delinquent payments
pursuant to Section 3.07. The Servicer shall be responsible for all costs and
expenses incurred by it in any such proceedings; provided, however, that such
costs and expenses will be recoverable as Servicing Advances by the Servicer as
contemplated in Section 3.11(a) and Section 3.23. The foregoing is subject to
the provision that, in any case in which a Mortgaged Property shall have
suffered damage from an Uninsured Cause, the Servicer shall not be required

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to expend its own funds toward the restoration of such property unless it shall
determine in its discretion that such restoration will increase the proceeds of
liquidation of the related Mortgage Loan after reimbursement to itself for such
expenses.

                  (b) Notwithstanding the foregoing provisions of this Section
3.16 or any other provision of this Agreement, with respect to any Mortgage Loan
as to which the Servicer has received actual notice of, or has actual knowledge
of, the presence of any toxic or hazardous substance on the related Mortgaged
Property, the Servicer shall not, on behalf of the Trustee, either (i) obtain
title to such Mortgaged Property as a result of or in lieu of foreclosure or
otherwise, or (ii) otherwise acquire possession of, or take any other action
with respect to, such Mortgaged Property, if, as a result of any such action,
the Trustee, the Trust Fund or the Certificateholders would be considered to
hold title to, to be a "mortgagee-in-possession" of, or to be an "owner" or
"operator" of such Mortgaged Property within the meaning of the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, as amended from
time to time, or any comparable law, unless the Servicer has also previously
determined, based on its reasonable judgment and a report prepared by a Person
who regularly conducts environmental audits using customary industry standards,
that:

                  (1) such Mortgaged Property is in compliance with applicable
         environmental laws or, if not, that it would be in the best economic
         interest of the Trust Fund to take such actions as are necessary to
         bring the Mortgaged Property into compliance therewith; and

                  (2) there are no circumstances present at such Mortgaged
         Property relating to the use, management or disposal of any hazardous
         substances, hazardous materials, hazardous wastes, or petroleum-based
         materials for which investigation, testing, monitoring, containment,
         clean-up or remediation could be required under any federal, state or
         local law or regulation, or that if any such materials are present for
         which such action could be required, that it would be in the best
         economic interest of the Trust Fund to take such actions with respect
         to the affected Mortgaged Property.

                  The Servicer shall forward a copy of the environmental audit
report to the Depositor and the NIMS Insurer. Notwithstanding the foregoing, if
such environmental audit reveals, or if the Servicer has actual knowledge or
notice, that such Mortgaged Property contains such wastes or substances, the
Servicer shall not foreclose or accept a deed in lieu of foreclosure without the
prior written consent of the NIMS Insurer.

                  The cost of the environmental audit report contemplated by
this Section 3.16 shall be advanced by the Servicer, subject to the Servicer's
right to be reimbursed therefor from the Collection Account as provided in
Section 3.11(a)(vii), such right of reimbursement being prior to the rights of
Certificateholders to receive any amount in the Collection Account received in
respect of the affected Mortgage Loan or other Mortgage Loans.

                  If the Servicer determines, as described above, that it is in
the best economic interest of the Trust Fund to take such actions as are
necessary to bring any such Mortgaged Property into compliance with applicable
environmental laws, or to take such action with respect to the containment,
clean-up or remediation of hazardous substances, hazardous materials,

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hazardous wastes or petroleum-based materials affecting any such Mortgaged
Property, then the Servicer shall take such action as it deems to be in the best
economic interest of the Trust Fund; provided that any amounts disbursed by the
Servicer pursuant to this Section 3.16(b) shall constitute Servicing Advances,
subject to Section 4.04(d). The cost of any such compliance, containment,
clean-up or remediation shall be advanced by the Servicer, subject to the
Servicer's right to be reimbursed therefor from the Collection Account as
provided in Section 3.11(a)(vii), such right of reimbursement being prior to the
rights of Certificateholders to receive any amount in the Collection Account
received in respect of the affected Mortgage Loan or other Mortgage Loans.

                  (c) The Servicer or the NIMS Insurer may, at its option,
purchase a Mortgage Loan which has become 90 or more days delinquent or for
which the Servicer has accepted a deed in lieu of foreclosure. Prior to purchase
pursuant to this Section 3.16(c), the Servicer shall be required to continue to
make Advances pursuant to Section 4.04. If the Servicer or the NIMS Insurer
purchases any delinquent Mortgage Loans pursuant to this Section 3.16(c), it
must purchase Mortgage Loans that are delinquent the greatest number of days
before it may purchase any that are delinquent any fewer number of days. The
Servicer or the NIMS Insurer shall purchase such delinquent Mortgage Loan at a
price equal to the Purchase Price of such Mortgage Loan. Any such purchase of a
Mortgage Loan pursuant to this Section 3.16(c) shall be accomplished by deposit
in the Collection Account of the amount of the Purchase Price. Upon the
satisfaction of the requirements set forth in Section 3.17(a), the Trustee shall
immediately deliver the Mortgage File and any related documentation to the
Servicer or the NIMS Insurer and will execute such documents provided to it as
are necessary to convey the Mortgage Loan to the Servicer or the NIMS Insurer,
as applicable.

                  (d) Proceeds received in connection with any Final Recovery
Determination, as well as any recovery resulting from a partial collection of
Insurance Proceeds, Liquidation Proceeds or condemnation proceeds, in respect of
any Mortgage Loan, will be applied in the following order of priority: first, to
unpaid Servicing Fees; second, to reimburse the Servicer or any Sub-Servicer for
any related unreimbursed Servicing Advances pursuant to Section 3.11(a)(iii) and
Advances pursuant to Section 3.11(a)(ii); third, to accrued and unpaid interest
on the Mortgage Loan, to the date of the Final Recovery Determination, or to the
Due Date prior to the Distribution Date on which such amounts are to be
distributed if not in connection with a Final Recovery Determination; and
fourth, as a recovery of principal of the Mortgage Loan. The portion of the
recovery so allocated to unpaid Servicing Fees shall be reimbursed to the
Servicer or any Sub-Servicer pursuant to Section 3.11(a)(iii).

                  SECTION 3.17. Trustee to Cooperate; Release of Mortgage Files.

                  (a) Upon the payment in full of any Mortgage Loan, or the
receipt by the Servicer of a notification that payment in full shall be escrowed
in a manner customary for such purposes, the Servicer will immediately notify or
cause to be notified the Custodian by a certification and shall deliver to the
Custodian, in written (with two executed copies) or electronic format, a Request
for Release in the form of Exhibit E hereto (which certification shall include a
statement to the effect that all amounts received or to be received in
connection with such payment which are required to be deposited in the
Collection Account pursuant to Section 3.10 have been or will be so deposited)
signed by a Servicing Officer (or in a mutually agreeable

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electronic format that will, in lieu of a signature on its face, originate from
a Servicing Officer) and shall request delivery to it of the Mortgage File. Upon
receipt of such certification and request and pursuant to the terms of the
Custodial Agreement, the Custodian shall, within three Business Days, release
the related Mortgage File to the Servicer and the Servicer is authorized to
cause the removal from the registration on the MERS(R) System of any such
Mortgage Loan, if applicable. Except as otherwise provided herein, no expenses
incurred in connection with any instrument of satisfaction or deed of
reconveyance shall be chargeable to the Collection Account or the Distribution
Account.

                  (b) From time to time and as appropriate for the servicing or
foreclosure of any Mortgage Loan, including, for this purpose, collection under
any insurance policy relating to the Mortgage Loans, the Custodian, pursuant to
the terms of the Custodial Agreement shall, upon any request made by or on
behalf of the Servicer and delivery to the Custodian, in written (with two
executed copies) or electronic format, of a Request for Release in the form of
Exhibit E signed by a Servicing Officer (or in a mutually agreeable electronic
format that will, in lieu of a signature on its face, originate from a Servicing
Officer), release the related Mortgage File to the Servicer within three
Business Days, and the Custodian shall, at the written direction of the
Servicer, execute such documents as shall be necessary to the prosecution of any
such proceedings. Such Request for Release shall obligate the Servicer to return
each and every document previously requested from the Mortgage File to the
Custodian when the need therefor by the Servicer no longer exists, unless the
Mortgage Loan has been liquidated and the Liquidation Proceeds relating to the
Mortgage Loan have been deposited in the Collection Account or the Mortgage File
or such document has been delivered to an attorney, or to a public trustee or
other public official as required by law, for purposes of initiating or pursuing
legal action or other proceedings for the foreclosure of the Mortgaged Property
either judicially or non-judicially, and the Servicer has delivered, or caused
to be delivered, to the Custodian an additional Request for Release certifying
as to such liquidation or action or proceedings. Upon the request of the
Trustee, the Servicer shall provide notice to the Trustee of the name and
address of the Person to which such Mortgage File or such document was delivered
and the purpose or purposes of such delivery. Upon receipt of a Request for
Release, in written (with two executed copies) or electronic format, from a
Servicing Officer stating that such Mortgage Loan was liquidated and that all
amounts received or to be received in connection with such liquidation that are
required to be deposited into the Collection Account have been so deposited, or
that such Mortgage Loan has become an REO Property, such Mortgage Loan shall be
released by the Custodian to the Servicer or its designee.

                  (c) Upon written certification of a Servicing Officer, the
Trustee shall execute and deliver to the Servicer or the Sub-Servicer, as the
case may be, copies of, any court pleadings, requests for trustee's sale or
other documents necessary to the foreclosure or trustee's sale in respect of a
Mortgaged Property or to any legal action brought to obtain judgment against any
Mortgagor on the Mortgage Note or Mortgage or to obtain a deficiency judgment,
or to enforce any other remedies or rights provided by the Mortgage Note or
Mortgage or otherwise available at law or in equity. Each such certification
shall include a request that such pleadings or documents be executed by the
Trustee and a statement as to the reason such documents or pleadings are
required and that the execution and delivery thereof by the Trustee will not
invalidate or otherwise affect the lien of the Mortgage, except for the
termination of such a lien upon completion of the foreclosure or trustee's sale.

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                  SECTION 3.18. Servicing Compensation.

                  As compensation for the activities of the Servicer hereunder,
the Servicer shall be entitled to the Servicing Fee with respect to each
Mortgage Loan payable solely from payments of interest in respect of such
Mortgage Loan, subject to Section 3.24. In addition, the Servicer shall be
entitled to recover unpaid Servicing Fees out of Insurance Proceeds, Liquidation
Proceeds or condemnation proceeds to the extent permitted by Section
3.11(a)(iii) and out of amounts derived from the operation and sale of an REO
Property to the extent permitted by Section 3.23. Except as provided in Section
3.29 or Section 6.04, the right to receive the Servicing Fee may not be
transferred in whole or in part except in connection with the transfer of all of
the Servicer's responsibilities and obligations under this Agreement; provided,
however, that the Servicer may pay from the Servicing Fee any amounts due to a
Sub-Servicer pursuant to a Sub-Servicing Agreement entered into under Section
3.02.

                  Additional servicing compensation in the form of assumption
fees, late payment charges, insufficient funds charges, ancillary income or
otherwise (other than Prepayment Charges) shall be retained by the Servicer only
to the extent such fees or charges are received by the Servicer. The Servicer
shall also be entitled pursuant to Section 3.11(a)(iv) to withdraw from the
Collection Account and pursuant to Section 3.23(b) to withdraw from any REO
Account, as additional servicing compensation, interest or other income earned
on deposits therein, subject to Section 3.12 and Section 3.24. The Servicer
shall also be entitled to receive Prepayment Interest Excess pursuant to Section
3.10 and 3.11 as additional servicing compensation. The Servicer shall be
required to pay all expenses incurred by it in connection with its servicing
activities hereunder (including premiums for the insurance required by Section
3.14, to the extent such premiums are not paid by the related Mortgagors or by a
Sub-Servicer and servicing compensation of each Sub-Servicer) and shall not be
entitled to reimbursement therefor except as specifically provided herein.

                  SECTION 3.19. Reports to the Trustee; Collection Account
Statements.

                  Not later than twenty days after each Distribution Date, the
Servicer shall forward, upon request, to the Trustee, the NIMS Insurer and the
Depositor the most current available bank statement for the Collection Account.
Copies of such statement shall be provided by the Trustee to any
Certificateholder and to any Person identified to the Trustee as a prospective
transferee of a Certificate, upon request at the expense of the requesting
party, provided such statement is delivered by the Servicer to the Trustee.

                  SECTION 3.20. Statement as to Compliance.

                  The Servicer will deliver to the Trustee, the NIMS Insurer and
the Depositor not later than March 15th of each calendar year, commencing in
2005, an Officers' Certificate (in a form similar to Exhibit G attached hereto)
stating, as to each signatory thereof, that (i) a review of the activities of
the Servicer during the preceding year and of performance under this Agreement
has been made under such officers' supervision and (ii) to the best of such
officers' knowledge, based on such review, the Servicer has fulfilled all of its
obligations under this Agreement throughout such year, or, if there has been a
default in the fulfillment of any such obligation, specifying each such default
known to such officer and the nature and status thereof.

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Copies of any such statement shall be provided by the Trustee to any
Certificateholder and to any Person identified to the Trustee as a prospective
transferee of a Certificate, upon request at the expense of the requesting
party, provided such statement is delivered by the Servicer to the Trustee. In
addition to the foregoing, the Servicer will, to the extent reasonable, give any
other servicing information required by the Securities and Exchange Commission
pursuant to applicable law.

                  SECTION 3.21. Independent Public Accountants' Servicing
Report.

                  Not later than March 15th of each calendar year, commencing in
2005, the Servicer, at its expense, shall cause a nationally recognized firm of
independent certified public accountants to furnish to the Servicer a report
stating that (i) it has obtained a letter of representation regarding certain
matters from the management of the Servicer which includes an assertion that the
Servicer has complied with certain minimum residential mortgage loan servicing
standards, identified in the Uniform Single Attestation Program for Mortgage
Bankers established by the Mortgage Bankers Association of America, with respect
to the servicing of residential mortgage loans during the most recently
completed calendar year and (ii) on the basis of an examination conducted by
such firm in accordance with standards established by the American Institute of
Certified Public Accountants, such representation is fairly stated in all
material respects, subject to such exceptions and other qualifications that may
be appropriate. In rendering its report such firm may rely, as to matters
relating to the direct servicing of residential mortgage loans by Sub-Servicers,
upon comparable reports of firms of independent certified public accountants
rendered on the basis of examinations conducted in accordance with the same
standards (rendered within one year of such report) with respect to those
Sub-Servicers. Immediately upon receipt of such report, the Servicer shall
furnish a copy of such report to the Trustee and the NIMS Insurer. Copies of
such statement shall be provided by the Trustee to any Certificateholder upon
request at the expense of the requesting party, provided that such statement is
delivered by the Servicer to the Trustee.

                  SECTION 3.22. Access to Certain Documentation; Filing of
Reports by Trustee.

                  The Servicer shall provide to the Office of Thrift
Supervision, the FDIC, and any other federal or state banking or insurance
regulatory authority that may exercise authority over any Certificateholder,
access to the documentation regarding the Mortgage Loans required by applicable
laws and regulations. Such access shall be afforded without charge, but only
upon reasonable request and during normal business hours at the offices of the
Servicer designated by it. Nothing in this Section shall limit the obligation of
the Servicer to observe any applicable law prohibiting disclosure of information
regarding the Mortgagors (absent proof that it is in compliance with applicable
law) and the failure of the Servicer to provide access as provided in this
Section as a result of such obligation shall not constitute a breach of this
Section. In addition, access to the documentation regarding the Mortgage Loans
will be provided to the NIMS Insurer, the Trustee, on behalf of the
Certificateholders or a prospective transferee of a Certificate, upon reasonable
request during normal business hours at the offices of the Servicer designated
by it at the expense of the Person requesting such access. Nothing in this
Section 3.22 shall require the Servicer to collect, create, collate or otherwise
generate any information that it does not generate in its usual course of
business. The Servicer shall not be required to

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make copies of or ship documents to any party unless provisions have been made
for the reimbursement of the costs thereof.

                  SECTION 3.23. Title, Management and Disposition of REO
                                Property.

                  (a) The deed or certificate of sale of any REO Property shall,
subject to applicable laws, be taken in the name of the Trustee, or its nominee,
in trust for the benefit of the Certificateholders. The Servicer, on behalf of
REMIC I, shall sell any REO Property as soon as practicable and in any event no
later than the end of the third full taxable year after the taxable year in
which such REMIC acquires ownership of such REO Property for purposes of Section
860G(a)(8) of the Code or request from the Internal Revenue Service, no later
than 60 days before the day on which the three-year grace period would otherwise
expire, an extension of such three-year period, unless the Servicer shall have
delivered to the Trustee and the NIMS Insurer an Opinion of Counsel acceptable
to the NIMS Insurer and addressed to the Trustee, the NIMS Insurer and the
Depositor, to the effect that the holding by the REMIC of such REO Property
subsequent to three years after its acquisition will not result in the
imposition on the REMIC of taxes on "prohibited transactions" thereof, as
defined in Section 860F of the Code, or cause any of the REMICs created
hereunder to fail to qualify as a REMIC under Federal law at any time that any
Certificates are outstanding. The Servicer shall manage, conserve, protect and
operate each REO Property for the Certificateholders solely for the purpose of
its prompt disposition and sale in a manner which does not cause such REO
Property to fail to qualify as "foreclosure property" within the meaning of
Section 860G(a)(8) of the Code or result in the receipt by any of the REMICs
created hereunder of any "income from non-permitted assets" within the meaning
of Section 860F(a)(2)(B) of the Code, or any "net income from foreclosure
property" which is subject to taxation under the REMIC Provisions.

                  (b) The Servicer shall separately account for all funds
collected and received in connection with the operation of any REO Property and
shall establish and maintain, or cause to be established and maintained, with
respect to REO Properties an account held in trust for the Trustee for the
benefit of the Certificateholders (the "REO Account"), which shall be an
Eligible Account. The Servicer shall be permitted to allow the Collection
Account to serve as the REO Account, subject to separate ledgers for each REO
Property. The Servicer shall be entitled to retain or withdraw any interest
income paid on funds deposited in the REO Account.

                  (c) The Servicer shall have full power and authority, subject
only to the specific requirements and prohibitions of this Agreement, to do any
and all things in connection with any REO Property as are consistent with the
manner in which the Servicer manages and operates similar property owned by the
Servicer or any of its Affiliates, all on such terms and for such period
(subject to the requirement of prompt disposition set forth in Section 3.23(a))
as the Servicer deems to be in the best interests of Certificateholders. In
connection therewith, the Servicer shall deposit, or cause to be deposited in
the clearing account in which it customarily deposits payments and collections
on mortgage loans in connection with its mortgage loan servicing activities on a
daily basis, and in no event more than one Business Day after the Servicer's
receipt thereof, and shall thereafter deposit in the REO Account, in no event
more than two Business Days after the Servicer's receipt thereof, all revenues
received by it with respect to an REO Property and shall withdraw therefrom
funds necessary for the proper operation, management and maintenance of such REO
Property including, without limitation:

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                  (i) all insurance premiums due and payable in respect of such
         REO Property;

                  (ii) all real estate taxes and assessments in respect of such
         REO Property that may result in the imposition of a lien thereon; and

                  (iii) all costs and expenses necessary to maintain, operate
         and dispose of such REO Property.

                  To the extent that amounts on deposit in the REO Account with
respect to an REO Property are insufficient for the purposes set forth in
clauses (i) through (iii) above with respect to such REO Property, the Servicer
shall advance from its own funds such amount as is necessary for such purposes
if, but only if, the Servicer would make such advances if the Servicer owned the
REO Property and if in the Servicer's judgment, the payment of such amounts will
be recoverable from the rental or sale of the REO Property.

                  Notwithstanding the foregoing, neither the Servicer nor the
Trustee shall:

                  (A) authorize the Trust Fund to enter into, renew or extend
         any New Lease with respect to any REO Property, if the New Lease by its
         terms will give rise to any income that does not constitute Rents from
         Real Property;

                  (B) authorize any amount to be received or accrued under any
         New Lease other than amounts that will constitute Rents from Real
         Property;

                  (C) authorize any construction on any REO Property, other than
         the completion of a building or other improvement thereon, and then
         only if more than ten percent of the construction of such building or
         other improvement was completed before default on the related Mortgage
         Loan became imminent, all within the meaning of Section 856(e)(4)(B) of
         the Code; or

                  (D) authorize any Person to Directly Operate any REO Property
         on any date more than 90 days after its date of acquisition by the
         Trust Fund;

unless, in any such case, the Servicer has obtained an Opinion of Counsel,
provided to the Trustee and the NIMS Insurer, to the effect that such action
will not cause such REO Property to fail to qualify as "foreclosure property"
within the meaning of Section 860G(a)(8) of the Code at any time that it is held
by the REMIC, in which case the Servicer may take such actions as are specified
in such Opinion of Counsel.

                  The Servicer may contract with any Independent Contractor for
the operation and management of any REO Property, provided that:

                  (1) the terms and conditions of any such contract shall not be
         inconsistent herewith;

                  (2) any such contract shall require, or shall be administered
         to require, that the Independent Contractor pay all costs and expenses
         incurred in connection with the operation and management of such REO
         Property, including those listed above and remit

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         all related revenues (net of such costs and expenses) to the Servicer
         as soon as practicable, but in no event later than thirty days
         following the receipt thereof by such Independent Contractor;

                  (3) none of the provisions of this Section 3.23(c) relating to
         any such contract or to actions taken through any such Independent
         Contractor shall be deemed to relieve the Servicer of any of its duties
         and obligations to the Trustee on behalf of the Certificateholders with
         respect to the operation and management of any such REO Property; and

                  (4) the Servicer shall be obligated with respect thereto to
         the same extent as if it alone were performing all duties and
         obligations in connection with the operation and management of such REO
         Property.

                  The Servicer shall be entitled to enter into any agreement
with any Independent Contractor performing services for it related to its duties
and obligations hereunder for indemnification of the Servicer by such
Independent Contractor, and nothing in this Agreement shall be deemed to limit
or modify such indemnification. The Servicer shall be solely liable for all fees
owed by it to any such Independent Contractor, irrespective of whether the
Servicer's compensation pursuant to Section 3.18 is sufficient to pay such fees;
provided, however, that to the extent that any payments made by such Independent
Contractor would constitute Servicing Advances if made by the Servicer, such
amounts shall be reimbursable as Servicing Advances made by the Servicer.

                  (d) In addition to the withdrawals permitted under Section
3.23(c), the Servicer may from time to time make withdrawals from the REO
Account for any REO Property: (i) to pay itself or any Sub-Servicer unpaid
Servicing Fees in respect of the related Mortgage Loan; and (ii) to reimburse
itself or any Sub-Servicer for unreimbursed Servicing Advances and Advances made
in respect of such REO Property or the related Mortgage Loan. On the Servicer
Remittance Date, the Servicer shall withdraw from each REO Account maintained by
it and deposit into the Distribution Account in accordance with Section
3.10(d)(ii), for distribution on the related Distribution Date in accordance
with Section 4.01, the income from the related REO Property received during the
prior calendar month, net of any withdrawals made pursuant to Section 3.23(c) or
this Section 3.23(d).

                  (e) Subject to the time constraints set forth in Section
3.23(a), each REO Disposition shall be carried out by the Servicer in a manner,
at such price and upon such terms and conditions as shall be normal and usual in
the servicing standard set forth in Section 3.01.

                  (f) The proceeds from the REO Disposition, net of any amount
required by law to be remitted to the Mortgagor under the related Mortgage Loan
and net of any payment or reimbursement to the Servicer or any Sub-Servicer as
provided above, shall be deposited in the Distribution Account in accordance
with Section 3.10(d)(ii) on the Servicer Remittance Date in the month following
the receipt thereof for distribution on the related Distribution Date in
accordance with Section 4.01. Any REO Disposition shall be for cash only (unless
changes in the REMIC Provisions made subsequent to the Startup Day allow a sale
for other consideration).

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                  (g) The Servicer shall file information returns with respect
to the receipt of mortgage interest received in a trade or business, reports of
foreclosures and abandonments of any Mortgaged Property and cancellation of
indebtedness income with respect to any Mortgaged Property as required by
Sections 6050H, 6050J and 6050P of the Code, respectively. Such reports shall be
in form and substance sufficient to meet the reporting requirements imposed by
such Sections 6050H, 6050J and 6050P of the Code.

                  SECTION 3.24. Obligations of the Servicer in Respect of
                                Prepayment Interest Shortfalls.

                  Not later than 1:00 p.m. New York time on each Servicer
Remittance Date, the Servicer shall remit to the Distribution Account an amount
("Compensating Interest") equal to the lesser of (A) the aggregate of the
Prepayment Interest Shortfalls for the related Distribution Date and (B) its
aggregate Servicing Fee received in the related Due Period. The Servicer shall
not have the right to reimbursement for any amounts remitted to the Trustee in
respect of Compensating Interest. Such amounts so remitted shall be included in
the Available Funds and distributed therewith on the next Distribution Date. The
Servicer shall not be obligated to pay Compensating Interest with respect to
Relief Act Interest Shortfalls.

                  SECTION 3.25. [Reserved].

                  SECTION 3.26. Obligations of the Servicer in Respect of
Mortgage Rates and Monthly Payments.

                  In the event that a shortfall in any collection on or
liability with respect to the Mortgage Loans in the aggregate results from or is
attributable to adjustments to Mortgage Rates, Monthly Payments or Stated
Principal Balances that were made by the Servicer in a manner not consistent
with the terms of the related Mortgage Note and this Agreement, the Servicer,
upon discovery or receipt of notice thereof, immediately shall deposit in the
Collection Account from its own funds the amount of any such shortfall and shall
indemnify and hold harmless the Trust Fund, the Trustee, the Depositor and any
successor servicer in respect of any such liability. Such indemnities shall
survive the termination or discharge of this Agreement. Notwithstanding the
foregoing, this Section 3.26 shall not limit the ability of the Servicer to seek
recovery of any such amounts from the related Mortgagor under the terms of the
related Mortgage Note, as permitted by law.

                  SECTION 3.27. [Reserved].

                  SECTION 3.28. [Reserved]

                  SECTION 3.29. Advance Facility.

                  The Servicer is hereby authorized to enter into a financing or
other facility (any such arrangement, an "Advance Facility") under which (1) the
Servicer sells, assigns or pledges to another Person (together with such
Person's successors and assigns, an "Advancing Person") the Servicer's rights
under this Agreement to be reimbursed for any Advances or Servicing Advances
and/or (2) an Advancing Person agrees to fund some or all Advances and/or
Servicing Advances required to be made by the Servicer pursuant to this
Agreement. No consent of the

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Depositor, the Trustee, the Certificateholders or any other party shall be
required before the Servicer may enter into an Advance Facility. The Servicer
shall notify each other party to this Agreement prior to or promptly after
entering into or terminating any Advance Facility. Notwithstanding the existence
of any Advance Facility under which an Advancing Person agrees to fund Advances
and/or Servicing Advances on the Servicer's behalf, the Servicer shall remain
obligated pursuant to this Agreement to make Advances and Servicing Advances
pursuant to and as required by this Agreement. If the Servicer enters into an
Advance Facility, and for so long as an Advancing Person remains entitled to
receive reimbursement for any Advances including Nonrecoverable Advances
("Advance Reimbursement Amounts") and/or Servicing Advances including
Nonrecoverable Advances ("Servicing Advance Reimbursement Amounts" and together
with Advance Reimbursement Amounts, "Reimbursement Amounts") (in each case to
the extent such type of Reimbursement Amount is included in the Advance
Facility), as applicable, pursuant to this Agreement, then, the Servicer shall
identify such Reimbursement Amounts consistent with the reimbursement rights set
forth in Section 3.11(a)(ii), (iii), (vi) and (vii) and remit such Reimbursement
Amounts in accordance with Section 3.10(b) or otherwise in accordance with the
documentation establishing the Advance Facility to such Advancing Person or to a
trustee, agent or custodian (an "Advance Facility Trustee") designated by such
Advancing Person. Notwithstanding anything to the contrary herein, in no event
shall Advance Reimbursement Amounts or Servicing Advance Reimbursement Amounts
be included in the Available Funds or distributed to Certificateholders.

                  Reimbursement Amounts shall consist solely of amounts in
respect of Advances and/or Servicing Advances made with respect to the Mortgage
Loans for which the Servicer would be permitted to reimburse itself in
accordance with this Agreement, assuming the Servicer or the Advancing Person
had made the related Advance(s) and/or Servicing Advance(s). Notwithstanding the
foregoing, except with respect to reimbursement of Nonrecoverable Advances as
set forth in this Agreement, no Person shall be entitled to reimbursement from
funds held in the Collection Account for future distribution to
Certificateholders pursuant to this Agreement. None of the Depositor or the
Trustee shall have any duty or liability with respect to the calculation or
payment of any Reimbursement Amount, nor shall the Depositor or the Trustee have
any responsibility to track or monitor the administration of the Advance
Facility or the payment of Reimbursement Amounts to the related Advancing Person
or Advance Facility Trustee. The Servicer shall maintain and provide to any
successor servicer and (upon request) the Trustee a detailed accounting on a
loan by loan basis as to amounts advanced by, sold, pledged or assigned to, and
reimbursed to any Advancing Person. The successor servicer shall be entitled to
rely on any such information provided by the predecessor servicer, and the
successor servicer shall not be liable for any errors in such information.

                  An Advancing Person who receives an assignment or pledge of
the rights to be reimbursed for Advances and/or Servicing Advances, and/or whose
obligations hereunder are limited to the funding or purchase of Advances and/or
Servicing Advances shall not be required to meet the criteria for qualification
of a subservicer set forth in this Agreement.

                  Reimbursement Amounts distributed with respect to each
Mortgage Loan shall be allocated to outstanding unreimbursed Advances or
Servicing Advances (as the case may be) made with respect to that Mortgage Loan
on a "first in, first out" (FIFO) basis. Such documentation shall also require
the Servicer to provide to the related Advancing Person or

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Advance Facility Trustee loan by loan information with respect to each
Reimbursement Amount distributed to such Advancing Person or Advance Facility
Trustee, to enable the Advancing Person or Advance Facility Trustee to make the
FIFO allocation of each Reimbursement Amount with respect to each Mortgage Loan.
The Servicer shall remain entitled to be reimbursed for all Advances and
Servicing Advances funded by the Servicer to the extent the related rights to be
reimbursed therefor have not been sold, assigned or pledged to an Advancing
Person.

                  The Servicer shall indemnify the Depositor, the Trustee, any
successor servicer and the Trust Fund resulting from any claim by the related
Advancing Person arising out of the Advance Facility, except to the extent that
such claim, loss, liability or damage resulted from or arose out of negligence,
recklessness or willful misconduct or breach of its duties hereunder on the part
of the Depositor, the Trustee or any successor servicer.

                  Any amendment to this Section 3.29 or to any other provision
of this Agreement that may be necessary or appropriate to effect the terms of an
Advance Facility as described generally in this Section 3.29, including
amendments to add provisions relating to a successor servicer, may be entered
into by the Trustee, the Depositor and the Servicer without the consent of any
Certificateholder, provided such amendment complies with Section 11.01 hereof.
All reasonable costs and expenses (including attorneys' fees) of each party
hereto of any such amendment shall be borne solely by the Servicer. Prior to
entering into an Advance Facility, the Servicer shall notify the Advancing
Person in writing that: (a) the Advances and/or Servicing Advances purchased,
financed by and/or pledged to the Advancing Person are obligations owed to the
Servicer on a non-recourse basis payable only from the cash flows and proceeds
received under this Agreement for reimbursement of Advances and/or Servicing
Advances only to the extent provided herein, and the Trustee and the Trust are
not otherwise obligated or liable to repay any Advances and/or Servicing
Advances financed by the Advancing Person; (b) the Servicer will be responsible
for remitting to the Advancing Person the applicable amounts collected by it as
reimbursement for Advances and/or Servicing Advances funded by the Advancing
Person, subject to the restrictions and priorities created in this Agreement;
and (c) the Trustee shall not have any responsibility to track or monitor the
administration of the Advance Facility between the Servicer and the Advancing
Person.

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                                   ARTICLE IV

                         PAYMENTS TO CERTIFICATEHOLDERS

                  SECTION 4.01. Distributions.

                  (a) (1) On each Distribution Date, the following amounts, in
the following order of priority, shall be distributed by REMIC I to REMIC II on
account of the REMIC I Regular Interests or withdrawn from the Distribution
Account and distributed to the holders of the Class R Certificates (in respect
of the Class R-I Interest), as the case may be:

                  (i) (a) to Holders of REMIC I Regular Interest I-LTAA, REMIC I
         Regular Interest I-LTA1, REMIC I Regular Interest I-LTA2, REMIC I
         Regular Interest I-LTA3, REMIC I Regular Interest I-LTA4, REMIC I
         Regular Interest I-LTA5, REMIC I Regular Interest I-LTM1, REMIC I
         Regular Interest I-LTM2, REMIC I Regular Interest I-LTM3, REMIC I
         Regular Interest I-LTM4, REMIC I Regular Interest I-LTM5, REMIC I
         Regular Interest I-LTM6, REMIC I Regular Interest I-LTM7, REMIC I
         Regular Interest I-LTM8, REMIC I Regular Interest I-LTM9, REMIC I
         Regular Interest I-LTM10, REMIC I Regular Interest I-LTM11, REMIC I
         Regular Interest I-LTZZ and REMIC I Regular Interest I-LTP, PRO RATA,
         in an amount equal to (A) the Uncertificated Interest for such
         Distribution Date, plus (B) any amounts in respect thereof remaining
         unpaid from previous Distribution Dates. Amounts payable as
         Uncertificated Interest in respect of REMIC I Regular Interest I-LTZZ
         shall be reduced and deferred when the REMIC I Overcollateralized
         Amount is less than the REMIC I Required Overcollateralization Amount,
         by the lesser of (x) the amount of such difference and (y) the Maximum
         I-LTZZ Uncertificated Interest Deferral Amount and such amount will be
         payable to the Holders of REMIC I Regular Interest I-LTA1, REMIC I
         Regular Interest I-LTA2, REMIC I Regular Interest I-LTA3, REMIC I
         Regular Interest I-LTA4, REMIC I Regular Interest I-LTA5, REMIC I
         Regular Interest I-LTM1, REMIC I Regular Interest I-LTM2, REMIC I
         Regular Interest I-LTM3, REMIC I Regular Interest I-LTM4, REMIC I
         Regular Interest I-LTM5, REMIC I Regular Interest I-LTM6, REMIC I
         Regular Interest I-LTM7, REMIC I Regular Interest I-LTM8, REMIC I
         Regular Interest I-LTM9, REMIC I Regular Interest I-LTM10 and REMIC I
         Regular Interest I-LTM11 in the same proportion as the
         Overcollateralization Deficiency Amount is allocated to the
         Corresponding Certificates and the Uncertificated Balance of REMIC I
         Regular Interest I-LTZZ shall be increased by such amount; and

                           (b) to Holders of REMIC I Regular Interest I-LT1SUB,
         REMIC I Regular Interest I-LT1GRP, REMIC I Regular Interest I-LT2SUB,
         REMIC I Regular Interest I-LT2GRP and REMIC I Regular Interest I-LTXX,
         PRO RATA, in an amount equal to (A) the Uncertificated Interest for
         such Distribution Date, plus (B) any amounts in respect thereof
         remaining unpaid from previous Distribution Dates;

                  (ii) second, to the Holders of REMIC I Regular Interests, in
         an amount equal to the remainder of the REMIC I Marker Allocation
         Percentage of Available Funds for such Distribution Date after the
         distributions made pursuant to clause (i) above, allocated as follows:

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                           (a) 98.00% of such remainder to the Holders of REMIC
         I Regular Interest I-LTAA and REMIC I Regular Interest I-LTP, until the
         Uncertificated Balance of such REMIC I Regular Interest is reduced to
         zero, provided, however, that REMIC I Regular Interest I-LTP shall not
         be reduced until the Distribution Date immediately following the
         expiration of the latest Prepayment Charge as identified on the
         Prepayment Charge Schedule or any Distribution Date thereafter, at
         which point such amount shall be distributed to REMIC I Regular
         Interest I-LTP, until $100 has been distributed pursuant to this
         clause;

                           (b) 2.00% of such remainder, first to the Holders of
         REMIC I Regular Interest I-LTA1, REMIC I Regular Interest I-LTA2, REMIC
         I Regular Interest I-LTA3, REMIC I Regular Interest I-LTA4, REMIC I
         Regular Interest I-LTA5, REMIC I Regular Interest I-LTM1, REMIC I
         Regular Interest I-LTM2, REMIC I Regular Interest I-LTM3, REMIC I
         Regular Interest I-LTM4, REMIC I Regular Interest I-LTM5, REMIC I
         Regular Interest I-LTM6, REMIC I Regular Interest I-LTM7, REMIC I
         Regular Interest I-LTM8, REMIC I Regular Interest I-LTM9, REMIC I
         Regular Interest I-LTM10 and REMIC I Regular Interest I-LTM11 equal to
         1.00% of and in the same proportion as principal payments are allocated
         to the Corresponding Certificates, until the Uncertificated Balances of
         such REMIC I Regular Interests are reduced to zero and second, to the
         Holders of REMIC I Regular Interest I-LTZZ, 1.00%, until the
         Uncertificated Balance of such REMIC I Regular Interest is reduced to
         zero; and

                           (c) any remaining amount to the Holders of the Class
         R Certificates (in respect of the Class R-I Interest);

provided, however, that (i) 98.00% and (ii) 2.00% of any principal payments that
are attributable to an Overcollateralization Release Amount shall be allocated
to Holders of (i) REMIC I Regular Interest I-LTAA and REMIC I Regular Interest
I-LTP, in that order and (ii) REMIC I Regular Interest I-LTZZ, respectively;
provided that REMIC I Regular Interest I-LTP shall not be reduced until the
Distribution Date immediately following the expiration of the latest Prepayment
Charge as identified on the Prepayment Charge Schedule or any Distribution Date
thereafter, at which point such amount shall be distributed to REMIC I Regular
Interest I-LTP, until $100 has been distributed pursuant to this clause.

                  On each Distribution Date, all amounts representing Prepayment
Charges in respect of the Mortgage Loans during the related Prepayment Period
and any Servicer Prepayment Charge Payment Amount paid by the Servicer during
the related Prepayment Period will be distributed by REMIC I to the Holders of
REMIC I Regular Interest I-LTP. The payment of the foregoing amounts to the
Holders of REMIC I Regular Interest I-LTP shall not reduce the Uncertificated
Balance thereof.

                  (iii) to the Holders of REMIC I Regular Interests, in an
         amount equal to the remainder of the REMIC I Sub WAC Allocation
         Percentage of Available Funds for such Distribution Date after the
         distributions made pursuant to clause (i) above, allocated so that
         distributions of principal shall be deemed to be made to the REMIC I
         Regular Interests first, so as to keep the Uncertificated Balance of
         each REMIC I Regular Interest ending with the designation "GRP" equal
         to 0.01% of the aggregate Stated Principal

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         Balance of the Mortgage Loans in the related Loan Group; second, to
         each REMIC I Regular Interest ending with the designation "SUB," so
         that the Uncertificated Balance of each such REMIC I Regular Interest
         is equal to 0.01% of the excess of (x) the aggregate Stated Principal
         Balance of the Mortgage Loans in the related Loan Group over (y) the
         Certificate Principal Balance of the Class A Certificate in the related
         Loan Group (except that if any such excess is a larger number than in
         the preceding distribution period, the least amount of principal shall
         be distributed to such REMIC I Regular Interests such that the REMIC I
         Subordinated Balance Ratio is maintained); and third, any remaining
         principal to REMIC I Regular Interest I-LTXX.

                  (2)(I) On each Distribution Date, the Trustee shall withdraw
from the Distribution Account that portion of Available Funds for such
Distribution Date consisting of the Group I Interest Remittance Amount for such
Distribution Date, and make the following distributions in the order of priority
described below, in each case to the extent of the Group I Interest Remittance
Amount remaining for such Distribution Date:

                  (i) concurrently, to the Holders of the Group I Certificates,
         on a PRO rata basis, based on the entitlement of each such Class, the
         related Monthly Interest Distributable Amount and the related Unpaid
         Interest Shortfall Amount, if any, for such Certificates for such
         Distribution Date; and

                  (ii) concurrently, to the Holders of the Group II
         Certificates, on a PRO RATA basis, based on the entitlement of each
         such Class, an amount equal to the excess, if any, of (x) the amount
         required to be distributed pursuant to Section 4.01(a)(2)(II)(i) for
         such Distribution Date over (y) the amount actually distributed
         pursuant to such sections, from the Group II Interest Remittance
         Amount.

                  (II) On each Distribution Date the Trustee shall withdraw from
the Distribution Account that portion of Available Funds for such Distribution
Date consisting of the Group II Interest Remittance Amount for such Distribution
Date, and make the following distributions in the order of priority described
below, in each case to the extent of the Group II Interest Remittance Amount
remaining for such Distribution Date:

                  (i) concurrently, to the Holders of the Group II Certificates,
         on a PRO RATA basis based on the entitlement of each such Class, the
         related Monthly Interest Distributable Amount and the related Unpaid
         Interest Shortfall Amount, if any, for such Certificates for such
         Distribution Date; and

                  (ii) concurrently, to the Holders of the Group I Certificates,
         on a PRO RATA basis, based on the entitlement of each such Class, an
         amount equal to the excess, if any, of (x) the amount required to be
         distributed pursuant to Section 4.01(a)(2)(I)(i) for such Distribution
         Date over (y) the amount actually distributed pursuant to such sections
         from the Group I Interest Remittance Amount.

                  (III) On each Distribution Date, following the distributions
made pursuant to Section 4.01(a)(2)(I) and Section 4.01(a)(2)(II) above, the
Trustee shall make the following distributions in the order of priority
described below, in each case to the extent of the sum of the

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Group I Interest Remittance Amount and the Group II Interest Remittance Amount
remaining undistributed for such Distribution Date:

                  (i) to the Holders of the Class M-1 Certificates, the Monthly
         Interest Distributable Amount allocable to such Certificates;

                  (ii) to the Holders of the Class M-2 Certificates, the Monthly
         Interest Distributable Amount allocable to such Certificates;

                  (iii) to the Holders of the Class M-3 Certificates, the
         Monthly Interest Distributable Amount allocable to such Certificates;

                  (iv) to the Holders of the Class M-4 Certificates, the Monthly
         Interest Distributable Amount allocable to such Certificates;

                  (v) to the Holders of the Class M-5 Certificates, the Monthly
         Interest Distributable Amount allocable to such Certificates;

                  (vi) to the Holders of the Class M-6 Certificates, the Monthly
         Interest Distributable Amount allocable to such Certificates; and

                  (vii) to the Holders of the Class M-7 Certificates, the
         Monthly Interest Distributable Amount allocable to such Certificates.

                  (viii) to the Holders of the Class M-8 Certificates, the
         Monthly Interest Distributable Amount allocable to such Certificates.

                  (ix) to the Holders of the Class M-9 Certificates, the Monthly
         Interest Distributable Amount allocable to such Certificates;

                  (x) to the Holders of the Class M-10 Certificates, the Monthly
         Interest Distributable Amount allocable to such Certificates; and

                  (xi) to the Holders of the Class M-11 Certificates, the
         Monthly Interest Distributable Amount allocable to such Certificates.

                  (3)(I) On each Distribution Date (a) prior to the Stepdown
Date or (b) on which a Trigger Event is in effect, distributions in respect of
principal to the extent of the Group I Principal Distribution Amount shall be
made in the following amounts and order of priority:

                  (i) first, to the Holders of the Group I Certificates
         (allocated among the Group I Certificates in the priority described
         below), until the Certificate Principal Balances thereof have been
         reduced to zero; and

                  (ii) second, to the Holders of the Group II Certificates
         (allocated among the Group II Certificates in the priority described
         below), after taking into account the distribution of the Group II
         Principal Distribution Amount already distributed, until the
         Certificate Principal Balances thereof have been reduced to zero.

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<PAGE>

                  (II) On each Distribution Date (a) prior to the Stepdown Date
or (b) on which a Trigger Event is in effect, distributions in respect of
principal to the extent of the Group II Principal Distribution Amount shall be
made in the following amounts and order of priority:

                  (i) first, to the Holders of the Group II Certificates
         (allocated among the Group II Certificates in the priority described
         below), until the Certificate Principal Balances thereof have been
         reduced to zero; and

                  (ii) second, to the Holders of the Group I Certificates
         (allocated among the Group I Certificates in the priority described
         below), after taking into account the distribution of the Group I
         Principal Distribution Amount already distributed until the Certificate
         Principal Balances thereof have been reduced to zero.

                  (III) On each Distribution Date (a) prior to the Stepdown Date
or (b) on which a Trigger Event is in effect, distributions in respect of
principal to the extent of the sum of the Group I Principal Distribution Amount
and the Group II Principal Distribution Amount remaining undistributed for such
Distribution Date shall be made in the following amounts and order of priority:

                  (i) first, to the Holders of the Class M-1 Certificates, until
         the Certificate Principal Balance thereof has been reduced to zero;

                  (ii) second, to the Holders of the Class M-2 Certificates,
         until the Certificate Principal Balance thereof has been reduced to
         zero;

                  (iii) third, to the Holders of the Class M-3 Certificates,
         until the Certificate Principal Balance thereof has been reduced to
         zero;

                  (iv) fourth, to the Holders of the Class M-4 Certificates,
         until the Certificate Principal Balance thereof has been reduced to
         zero;

                  (v) fifth, to the Holders of the Class M-5 Certificates, until
         the Certificate Principal Balance thereof has been reduced to zero;

                  (vi) sixth, to the Holders of the Class M-6 Certificates,
         until the Certificate Principal Balance thereof has been reduced to
         zero;

                  (vii) seventh, to the Holders of the Class M-7 Certificates,
         until the Certificate Principal Balance thereof has been reduced to
         zero;

                  (viii) eighth, to the Holders of the Class M-8 Certificates,
         until the Certificate Principal Balance thereof has been reduced to
         zero;

                  (ix) ninth, to the Holders of the Class M-9 Certificates,
         until the Certificate Principal Balance thereof has been reduced to
         zero;

                  (x) tenth, to the Holders of the Class M-10 Certificates,
         until the Certificate Principal Balance thereof has been reduced to
         zero; and

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<PAGE>

                  (xi) eleventh, to the Holders of the Class M-11 Certificates,
         until the Certificate Principal Balance thereof has been reduced to
         zero.

                  (IV) On each Distribution Date (a) on or after the Stepdown
Date and (b) on which a Trigger Event is not in effect, distributions in respect
of principal to the extent of the Group I Principal Distribution Amount shall be
made in the following amounts and order of priority:

                  (i) first, to the Holders of the Group I Certificates
         (allocated among the Group I Certificates in the priority described
         below), the Group I Senior Principal Distribution Amount until the
         Certificate Principal Balances thereof have been reduced to zero; and

                  (ii) second, to the Holders of the Group II Certificates
         (allocated among the Group II Certificates in the priority described
         below), the remaining undistributed Group II Senior Principal
         Distribution Amount, after taking into account the distribution of the
         Group II Principal Distribution Amount, up to an amount equal to the
         Group II Senior Principal Distribution Amount remaining undistributed,
         until the Certificate Principal Balances thereof have been reduced to
         zero.

                  (V) On each Distribution Date (a) on or after the Stepdown
Date and (b) on which a Trigger Event is not in effect, distributions in respect
of principal to the extent of the Group II Principal Distribution Amount shall
be made in the following amounts and order of priority:

                  (i) first, to the Holders of the Group II Certificates
         (allocated among the Group II Certificates in the priority described
         below), the Group II Senior Principal Distribution Amount until the
         Certificate Principal Balances thereof have been reduced to zero; and

                  (ii) second, to the Holders of the Group I Certificates
         (allocated among the Group I Certificates in the priority described
         below), the remaining undistributed Group I Senior Principal
         Distribution Amount, after taking into account the distribution of the
         Group I Principal Distribution Amount, up to an amount equal to the
         Group I Senior Principal Distribution Amount remaining undistributed,
         until the Certificate Principal Balances thereof have been reduced to
         zero.

                  (VI) On each Distribution Date (a) on or after the Stepdown
Date and (b) on which a Trigger Event is not in effect, distributions in respect
of principal to the extent of the sum of the Group I Principal Distribution
Amount and the Group II Principal Distribution Amount remaining undistributed
for such Distribution Date shall be made in the following amounts and order of
priority:

                  (i) first, to the Holders of the Class M-1 Certificates, the
         Class M-1 Principal Distribution Amount until the Certificate Principal
         Balance thereof has been reduced to zero;

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                  (ii) second, to the Holders of the Class M-2 Certificates, the
         Class M-2 Principal Distribution Amount until the Certificate Principal
         Balance thereof has been reduced to zero;

                  (iii) third, to the Holders of the Class M-3 Certificates, the
         Class M-3 Principal Distribution Amount until the Certificate Principal
         Balance thereof has been reduced to zero;

                  (iv) fourth, to the Holders of the Class M-4 Certificates, the
         Class M-4 Principal Distribution Amount until the Certificate Principal
         Balance thereof has been reduced to zero;

                  (v) fifth, to the Holders of the Class M-5 Certificates, the
         Class M-5 Principal Distribution Amount until the Certificate Principal
         Balance thereof has been reduced to zero;

                  (vi) sixth, to the Holders of the Class M-6 Certificates, the
         Class M-6 Principal Distribution Amount until the Certificate Principal
         Balance thereof has been reduced to zero; and

                  (vii) seventh, to the Holders of the Class M-7 Certificates,
         the Class M-7 Principal Distribution Amount until the Certificate
         Principal Balance thereof has been reduced to zero.

                  (viii) eigth, to the Holders of the Class M-8 Certificates,
         the Class M-8 Principal Distribution Amount until the Certificate
         Principal Balance thereof has been reduced to zero;

                  (ix) fifth, to the Holders of the Class M-9 Certificates, the
         Class M-9 Principal Distribution Amount until the Certificate Principal
         Balance thereof has been reduced to zero;

                  (x) sixth, to the Holders of the Class M-10 Certificates, the
         Class M-10 Principal Distribution Amount until the Certificate
         Principal Balance thereof has been reduced to zero; and

                  (xi) seventh, to the Holders of the Class M-11 Certificates,
         the Class M-11 Principal Distribution Amount until the Certificate
         Principal Balance thereof has been reduced to zero.

                  With respect to the Group I Certificates, all principal
distributions will be distributed on a PRO RATA basis based on the Certificate
Principal Balance of each such class, with the exception that if a Sequential
Trigger Event is in effect, principal distributions will be allocated
sequentially, to the Class A-1 and Class A-2 Certificates, in that order, until
their respective Certificate Principal Balances have been reduced to zero.

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<PAGE>

                  With respect to the Group II Certificates, all principal
distributions will be distributed sequentially, to the Class A-3, Class A-4 and
Class A-5 Certificates, in that order, until their respective Certificate
Principal Balances have been reduced to zero.

                  (4) On each Distribution Date, the Net Monthly Excess Cashflow
shall be distributed as follows:

                  (i) to the Holders of the Class or Classes of Certificates
         then entitled to receive distributions in respect of principal, in an
         amount equal to any Extra Principal Distribution Amount, distributable
         to such Holders as part of the Group I Principal Distribution Amount
         and/or the Group II Principal Distribution Amount as described under
         Section 4.01(a)(3) above;

                  (ii) to the Holders of the Class M-1 Certificates, in an
         amount equal to the Unpaid Interest Shortfall Amount allocable to such
         Certificates;

                  (iii) to the Holders of the Class M-1 Certificates, in an
         amount equal to the Allocated Realized Loss Amount allocable to such
         Certificates;

                  (iv) to the Holders of the Class M-2 Certificates, in an
         amount equal to the Unpaid Interest Shortfall Amount allocable to such
         Certificates;

                  (v) to the Holders of the Class M-2 Certificates, in an amount
         equal to the Allocated Realized Loss Amount allocable to such
         Certificates;

                  (vi) to the Holders of the Class M-3 Certificates, in an
         amount equal to the Unpaid Interest Shortfall Amount allocable to such
         Certificates;

                  (vii) to the Holders of the Class M-3 Certificates, in an
         amount equal to the Allocated Realized Loss Amount allocable to such
         Certificates;

                  (viii) to the Holders of the Class M-4 Certificates, in an
         amount equal to the Unpaid Interest Shortfall Amount allocable to such
         Certificates;

                  (ix) to the Holders of the Class M-4 Certificates, in an
         amount equal to the Allocated Realized Loss Amount allocable to such
         Certificates;

                  (x) to the Holders of the Class M-5 Certificates, in an amount
         equal to the Unpaid Interest Shortfall Amount allocable to such
         Certificates;

                  (xi) to the Holders of the Class M-5 Certificates, in an
         amount equal to the Allocated Realized Loss Amount allocable to such
         Certificates;

                  (xii) to the Holders of the Class M-6 Certificates, in an
         amount equal to the Unpaid Interest Shortfall Amount allocable to such
         Certificates;

                  (xiii) to the Holders of the Class M-6 Certificates, in an
         amount equal to the Allocated Realized Loss Amount allocable to such
         Certificates;

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<PAGE>

                  (xiv) to the Holders of the Class M-7 Certificates, in an
         amount equal to the Unpaid Interest Shortfall Amount allocable to such
         Certificates;

                  (xv) to the Holders of the Class M-7 Certificates, in an
         amount equal to the Allocated Realized Loss Amount allocable to such
         Certificates;

                  (xvi) to the Holders of the Class M-8 Certificates, in an
         amount equal to the Unpaid Interest Shortfall Amount allocable to such
         Certificates;

                  (xvii) to the Holders of the Class M-8 Certificates, in an
         amount equal to the Allocated Realized Loss Amount allocable to such
         Certificates;

                  (xviii) to the Holders of the Class M-9 Certificates, in an
         amount equal to the Unpaid Interest Shortfall Amount allocable to such
         Certificates;

                  (xix) to the Holders of the Class M-9 Certificates, in an
         amount equal to the Allocated Realized Loss Amount allocable to such
         Certificates;

                  (xx) to the Holders of the Class M-10 Certificates, in an
         amount equal to the Unpaid Interest Shortfall Amount allocable to such
         Certificates;

                  (xxi) to the Holders of the Class M-10 Certificates, in an
         amount equal to the Allocated Realized Loss Amount allocable to such
         Certificates;

                  (xxii) to the Holders of the Class M-11 Certificates, in an
         amount equal to the Unpaid Interest Shortfall Amount allocable to such
         Certificates;

                  (xxiii) to the Holders of the Class M-11 Certificates, in an
         amount equal to the Allocated Realized Loss Amount allocable to such
         Certificates;

                  (xxiv) to the Net WAC Rate Carryover Reserve Account, the
         amount by which any Net WAC Rate Carryover Amounts for such
         Distribution Date exceed the amounts received by the Trustee under the
         Cap Contracts;

                  (xxv) to the Holders of the Class CE Certificates, (a) the
         Monthly Interest Distributable Amount and any Overcollateralization
         Release Amount for such Distribution Date and (b) on any Distribution
         Date on which the aggregate Certificate Principal Balance of the Class
         A Certificates and the Mezzanine Certificates has been reduced to zero,
         any remaining amounts in reduction of the Certificate Principal Balance
         of the Class CE Certificates, until the Certificate Principal Balance
         thereof has been reduced to zero;

                  (xviii) if such Distribution Date follows the Prepayment
         Period during which occurs the latest date on which a Prepayment Charge
         may be required to be paid in respect of any Mortgage Loans, to the
         Holders of the Class P Certificates, in reduction of the Certificate
         Principal Balance thereof, until the Certificate Principal Balance
         thereof is reduced to zero; and

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                  (xix) any remaining amounts to the Holders of the Residual
         Certificates (in respect of the appropriate Class R Interest).

                  Without limiting the provisions of Section 9.01(b), by
acceptance of the Residual Certificates the Holders of the Residual Certificates
agree, and it is the understanding of the parties hereto, that for so long as
any of the notes issued pursuant to the Indenture are outstanding or any amounts
are reimbursable or payable to the NIMS Insurer in accordance with the terms of
the Indenture, to pledge their rights to receive any amounts otherwise
distributable to the Holders of the Class R Certificates (and such rights are
hereby assigned and transferred) to the Holders of the Class CE Certificates.

                  On each Distribution Date, after making the distributions of
the Available Funds as set forth above, the Trustee will FIRST, withdraw from
the Net WAC Rate Carryover Reserve Account all income from the investment of
funds in the Net WAC Rate Carryover Reserve Account and distribute such amount
to the Holders of the Class CE Certificates, and SECOND, withdraw from the Net
WAC Rate Carryover Reserve Account, to the extent of amounts remaining on
deposit therein, the amount of any Net WAC Rate Carryover Amount for such
Distribution Date and distribute such amount in the following order of priority:

                  (A) to the Group I Certificates, on a pro rata basis based on
         the Net WAC Rate Carryover Amount for each such Class, the Net WAC Rate
         Carryover Amount for each such class, but only to the extent of amounts
         paid under the Group I Cap Contract;

                  (B) to the Group II Certificates, on a pro rata basis based on
         the Net WAC Rate Carryover Amount for each such Class, the Net WAC Rate
         Carryover Amount for each such class, but only to the extent of amounts
         paid under the Group II Cap Contract;

                  (C) concurrently, to the Mezzanine Certificates, on a PRO RATA
         basis based on the Net WAC Rate Carryover Amount for each such Class,
         the Net WAC Rate Carryover Amount for each such Class, but only to the
         extent of amounts paid under the Mezzanine Cap Contract;

                  (E) to the Class A Certificates and the Mezzanine
         Certificates, any related unpaid Net WAC Rate Carryover Amount (after
         taking into account distributions pursuant to (A), (B) and (C) above),
         distributed in the following order of priority:

                  (i) to the Class A Certificates, on a PRO RATA basis based on
         the remaining Net WAC Rate Carryover Amount for each such Class;

                  (ii) to the Class M-1 Certificates;

                  (iii) to the Class M-2 Certificates;

                  (iv) to the Class M-3 Certificates;

                  (v) to the Class M-4 Certificates;

                  (vi) to the Class M-5 Certificates;

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                  (vii) to the Class M-6 Certificates;

                  (viii) to the Class M-7 Certificates;

                  (ix) to the Class M-8 Certificates;

                  (x) to the Class M-9 Certificates;

                  (xi) to the Class M-10 Certificates; and

                  (xii) to the Class M-11 Certificates.

                  On each Distribution Date, the Trustee shall withdraw any
amounts then on deposit in the Distribution Account that represent (i)
Prepayment Charges collected by the Servicer in connection with the Principal
Prepayment of any of the Mortgage Loans or (ii) any Servicer Prepayment Charge
Payment Amount, and shall distribute such amounts to the Holders of the Class P
Certificates. Such distributions shall not be applied to reduce the Certificate
Principal Balance of the Class P Certificates.

                  Following the foregoing distributions, an amount equal to the
amount of Subsequent Recoveries remitted to the Servicer shall be applied to
increase the Certificate Principal Balance of the Class of Certificates with the
Highest Priority up to the extent of such Realized Losses previously allocated
to that Class of Certificates pursuant to Section 4.04. An amount equal to the
amount of any remaining Subsequent Recoveries shall be applied to increase the
Certificate Principal Balance of the Class of Certificates with the next Highest
Priority, up to the amount of such Realized Losses previously allocated to that
Class of Certificates pursuant to Section 4.04. Holders of such Certificates
will not be entitled to any distribution in respect of interest on the amount of
such increases for any Accrual Period preceding the Distribution Date on which
such increase occurs. Any such increases shall be applied to the Certificate
Principal Balance of each Certificate of such Class in accordance with its
respective Percentage Interest.

                  (b) All distributions made with respect to each Class of
Certificates on each Distribution Date shall be allocated PRO RATA among the
outstanding Certificates in such Class based on their respective Percentage
Interests. Distributions in respect of each Class of Certificates on each
Distribution Date will be made to the Holders of the respective Class of record
on the related Record Date (except as otherwise provided in Section 4.01(e) or
Section 9.01 respecting the final distribution on such Class), based on the
aggregate Percentage Interest represented by their respective Certificates, and
shall be made by wire transfer of immediately available funds to the account of
any such Holder at a bank or other entity having appropriate facilities
therefor, if such Holder shall have so notified the Trustee in writing at least
five Business Days prior to the Record Date immediately prior to such
Distribution Date and is the registered owner of Certificates having an initial
aggregate Certificate Principal Balance or Notional Amount that is in excess of
the lesser of (i) $5,000,000 or (ii) two-thirds of the initial Certificate
Principal Balance or Notional Amount of such Class of Certificates, or otherwise
by check mailed by first class mail to the address of such Holder appearing in
the Certificate Register. The final distribution on each Certificate will be
made in like manner, but only upon

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presentment and surrender of such Certificate at the Corporate Trust Office of
the Trustee or such other location specified in the notice to Certificateholders
of such final distribution.

                  Each distribution with respect to a Book-Entry Certificate
shall be paid to the Depository, as Holder thereof, and the Depository shall be
responsible for crediting the amount of such distribution to the accounts of its
Depository Participants in accordance with its normal procedures. Each
Depository Participant shall be responsible for disbursing such distribution to
the Certificate Owners that it represents and to each indirect participating
brokerage firm (a "brokerage firm" or "indirect participating firm") for which
it acts as agent. Each brokerage firm shall be responsible for disbursing funds
to the Certificate Owners that it represents. None of the Trustee, the Depositor
or the Servicer shall have any responsibility therefor except as otherwise
provided by this Agreement or applicable law.

                  (c) The rights of the Certificateholders to receive
distributions in respect of the Certificates, and all interests of the
Certificateholders in such distributions, shall be as set forth in this
Agreement. None of the Holders of any Class of Certificates, the Trustee or the
Servicer shall in any way be responsible or liable to the Holders of any other
Class of Certificates in respect of amounts properly previously distributed on
the Certificates.

                  (d) Except as otherwise provided in Section 9.01, whenever the
Trustee expects that the final distribution with respect to any Class of
Certificates will be made on the next Distribution Date, the Trustee shall, no
later than three (3) days before the related Distribution Date, mail to each
Holder on such date of such Class of Certificates a notice to the effect that:

                  (i) the Trustee expects that the final distribution with
         respect to such Class of Certificates will be made on such Distribution
         Date but only upon presentation and surrender of such Certificates at
         the office of the Trustee therein specified, and

                  (ii) no interest shall accrue on such Certificates from and
         after the end of the related Accrual Period.

                  Any funds not distributed to any Holder or Holders of
Certificates of such Class on such Distribution Date because of the failure of
such Holder or Holders to tender their Certificates shall, on such date, be set
aside and held in trust by the Trustee and credited to the account of the
appropriate non-tendering Holder or Holders. If any Certificates as to which
notice has been given pursuant to this Section 4.01(e) shall not have been
surrendered for cancellation within six months after the time specified in such
notice, the Trustee shall mail a second notice to the remaining non-tendering
Certificateholders to surrender their Certificates for cancellation in order to
receive the final distribution with respect thereto. If within one year after
the second notice all such Certificates shall not have been surrendered for
cancellation, the Trustee shall, directly or through an agent, mail a final
notice to the remaining non-tendering Certificateholders concerning surrender of
their Certificates but shall continue to hold any remaining funds for the
benefit of non-tendering Certificateholders. The costs and expenses of
maintaining the funds in trust and of contacting such Certificateholders shall
be paid out of the assets remaining in the Trust Fund. If within one year after
the final notice any such Certificates shall not have been surrendered for
cancellation, the Trustee shall pay to UBS Securities LLC all

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such amounts, and all rights of non-tendering Certificateholders in or to such
amounts shall thereupon cease. No interest shall accrue or be payable to any
Certificateholder on any amount held in trust by the Trustee as a result of such
Certificateholder's failure to surrender its Certificate(s) for final payment
thereof in accordance with this Section 4.01(e). Any such amounts held in trust
by the Trustee shall be held in an Eligible Account and the Trustee may direct
any depository institution maintaining such account to invest the funds in one
or more Permitted Investments. All income and gain realized from the investment
of funds deposited in such accounts held in trust by the Trustee shall be for
the benefit of the Trustee; provided, however, that the Trustee shall deposit in
such account the amount of any loss of principal incurred in respect of any such
Permitted Investment made with funds in such accounts immediately upon the
realization of such loss.

                  (e) Notwithstanding anything to the contrary herein, (i) in no
event shall the Certificate Principal Balance of a Class A Certificate or a
Mezzanine Certificate be reduced more than once in respect of any particular
amount both (a) allocated to such Certificate in respect of Realized Losses
pursuant to Section 4.04 and (b) distributed to the Holder of such Certificate
in reduction of the Certificate Principal Balance thereof pursuant to this
Section 4.01 from Net Monthly Excess Cashflow and (ii) in no event shall the
Uncertificated Balance of a REMIC I Regular Interest be reduced more than once
in respect of any particular amount both (a) allocated to such REMIC I Regular
Interest in respect of Realized Losses pursuant to Section 4.04 and (b)
distributed on such REMIC I Regular Interest in reduction of the Uncertificated
Balance thereof pursuant to this Section 4.01.

                  SECTION 4.02. Statements to Certificateholders.

                  On each Distribution Date, the Trustee shall prepare and make
available on its website at www.usbank.com/abs for access by each Holder of the
Regular Certificates, the other parties hereto, and the NIMS Insurer, Rating
Agencies, a statement as to the distributions made on such Distribution Date
containing the following information:

                  (i) the amount of the distribution made on such Distribution
         Date to the Holders of the Certificates of each Class allocable to
         principal, and the amount of the distribution made on such Distribution
         Date to the Holders of the Class P Certificates allocable to Prepayment
         Charges and Servicer Prepayment Charge Payment Amounts;

                  (ii) the amount of the distribution made on such Distribution
         Date to the Holders of the Certificates of each Class allocable to
         interest;

                  (iii) the aggregate Servicing Fee (and any other compensation
         payable to the Servicer) and the Trustee Fee during the related Due
         Period and such other customary information as the Trustee deems
         necessary or desirable, or which a Certificateholder reasonably
         requests, to enable Certificateholders to prepare their tax returns;

                  (iv) the aggregate amount of Advances for such Distribution
         Date;

                  (v) the aggregate Stated Principal Balance of the Mortgage
         Loans and any REO Properties as of the close of business on such
         Distribution Date;

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                  (vi) the number, aggregate Principal Balance, weighted average
         remaining term to maturity and weighted average Mortgage Rate of the
         Mortgage Loans as of the related Due Date;

                  (vii) the number and aggregate unpaid principal balance of
         Mortgage Loans (a) delinquent 30 to 59 days, (b) delinquent 60 to 89
         days, (c) delinquent 90 or more days, in each case, as of the last day
         of the preceding calendar month, (d) as to which foreclosure
         proceedings have been commenced and (e) with respect to which the
         related Mortgagor has filed for protection under applicable bankruptcy
         laws, with respect to whom bankruptcy proceedings are pending or with
         respect to whom bankruptcy protection is in force;

                  (viii) the total number and cumulative principal balance of
         all REO Properties as of the close of business on the last day of the
         preceding Prepayment Period;

                  (ix) [reserved];

                  (x) the aggregate amount of Principal Prepayments made during
         the related Prepayment Period;

                  (xi) the aggregate amount of Realized Losses incurred during
         the related Prepayment Period, the aggregate amount of Realized Losses
         incurred since the Closing Date and the aggregate amount of Subsequent
         Recoveries received during the related Prepayment Period and the
         cumulative amount of Subsequent Recoveries received since the Closing
         Date;

                  (xii) the aggregate amount of Extraordinary Trust Fund
         Expenses withdrawn from the Collection Account or the Distribution
         Account for such Distribution Date;

                  (xiii) the aggregate Certificate Principal Balance and
         Notional Amount, as applicable, of each Class of Certificates, after
         giving effect to the distributions, and allocations of Realized Losses,
         made on such Distribution Date, separately identifying any reduction
         thereof due to allocations of Realized Losses;

                  (xiv) the Certificate Factor for each such Class of
         Certificates applicable to such Distribution Date;

                  (xv) the Monthly Interest Distributable Amount in respect of
         the Class A Certificates, the Mezzanine Certificates and the Class CE
         Certificates for such Distribution Date and the Unpaid Interest
         Shortfall Amount, if any, with respect to the Class A Certificates and
         the Mezzanine Certificates on such Distribution Date, separately
         identifying any reduction thereof due to allocations of Realized
         Losses, Prepayment Interest Shortfalls and Relief Act Interest
         Shortfalls;

                  (xvi) the aggregate amount of any Prepayment Interest
         Shortfall for such Distribution Date, to the extent not covered by
         payments by the Servicer pursuant to Section 3.24;

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                  (xvii) the aggregate amount of Relief Act Interest Shortfalls
         for such Distribution Date; (xviii) the Overcollateralization Target
         Amount, Overcollateralized Amount and Overcollateralization Deficiency
         Amount and the Credit Enhancement Percentage for such Distribution
         Date;

                  (xix) the respective Pass-Through Rates applicable to the
         Class A Certificates, the Mezzanine Certificates and the Class CE
         Certificates for such Distribution Date and the Pass-Through Rate
         applicable to the Class A Certificates and the Mezzanine Certificates
         for the immediately succeeding Distribution Date;

                  (xx) the Aggregate Loss Severity Percentage;

                  (xxi) when the Stepdown Date or Trigger Event has occurred;

                  (xxii) the Available Funds;

                  (xxiii) the Net WAC Rate Carryover Amount for the Class A
         Certificates and the Mezzanine Certificates, if any, for such
         Distribution Date, the amount remaining unpaid after reimbursements
         therefor on such Distribution Date; and

                  (xxiv) payments, if any, made under the Cap Contracts.

                  In the case of information furnished pursuant to subclauses
(i) through (iii) above, the amounts shall be expressed as a dollar amount per
Single Certificate of the relevant Class.

                  Within a reasonable period of time after the end of each
calendar year, the Trustee shall, upon written request, forward to each Person
who at any time during the calendar year was a Holder of a Regular Certificate
and the NIMS Insurer a statement containing the information set forth in
subclauses (i) through (iii) above, aggregated for such calendar year or
applicable portion thereof during which such Person was a Certificateholder.
Such obligation of the Trustee shall be deemed to have been satisfied to the
extent that substantially comparable information shall be provided by the
Trustee pursuant to any requirements of the Code as from time to time are in
force.

                  On each Distribution Date, the Trustee shall make available on
its website at www.usbank.com/abs for access by the Depositor, the NIMS Insurer,
each Holder of a Residual Certificate and the Servicer, the reports available to
the Regular Certificateholders on such Distribution Date and a statement setting
forth the amounts, if any, actually distributed with respect to the Residual
Certificates, respectively, on such Distribution Date.

                  Within a reasonable period of time after the end of each
calendar year, the Trustee shall furnish to each Person who at any time during
the calendar year was a Holder of a Residual Certificate and the NIMS Insurer a
statement setting forth the amount, if any, actually distributed with respect to
the Residual Certificates, as appropriate, aggregated for such calendar year or
applicable portion thereof during which such Person was a Certificateholder.

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                  The Trustee shall, upon request, furnish to each
Certificateholder and the NIMS Insurer, during the term of this Agreement, such
periodic, special, or other reports or information, whether or not provided for
herein, as shall be reasonable with respect to the Certificateholder, or
otherwise with respect to the purposes of this Agreement, all such reports or
information to be provided at the expense of the Certificateholder in accordance
with such reasonable and explicit instructions and directions as the
Certificateholder may provide. For purposes of this Section 4.02, the Trustee's
duties are limited to the extent that the Trustee receives timely reports as
required from the Servicer.

                  On each Distribution Date the Trustee shall provide Bloomberg
Financial Markets, L.P. ("Bloomberg") CUSIP level factors for each class of
Certificates as of such Distribution Date, using a format and media mutually
acceptable to the Trustee and Bloomberg.

                  SECTION 4.03. Remittance Reports; Advances.

                  (a) Not later than the eighteenth day of each calendar month
or if such eighteenth day is not a Business Day, the following Business Day, the
Servicer shall deliver to the Trustee and the NIMS Insurer by telecopy or
electronic mail (or by such other means as the Servicer and the Trustee may
agree from time to time) a Remittance Report with respect to the related
Distribution Date. Not later than the eighteenth day of each calendar month or
if such eighteenth day is not a Business Day, the following Business Day, the
Servicer shall deliver or cause to be delivered to the Trustee in addition to
the information provided on the Remittance Report, such other information
reasonably available to it with respect to the Mortgage Loans as the Trustee may
reasonably require to perform the calculations necessary to make the
distributions contemplated by Section 4.01 and to prepare the statements to
Certificateholders contemplated by Section 4.03. The Trustee shall not be
responsible to recompute, recalculate or verify any information provided to it
by the Servicer.

                  (b) The amount of Advances to be made by the Servicer for any
Distribution Date shall equal, subject to Section 4.03(d), the sum of (i) the
aggregate amount of Monthly Payments (net of the related Servicing Fee), due
during the related Due Period in respect of the Mortgage Loans, which Monthly
Payments were delinquent on a contractual basis as of the close of business on
the related Determination Date; provided however, that with respect to any
Balloon Mortgage Loan that is delinquent on its maturity date, the Servicer will
not be required to advance the related Balloon Payment but will be required to
continue to make Advances in accordance with this Section 4.04(b) with respect
to such Balloon Mortgage Loan in an amount equal to an assumed scheduled
interest that would otherwise be due based on the original amortization schedule
for that Balloon Mortgage Loan (with interest at the Mortgage Rate less the
Servicing Fee Rate) and (ii) with respect to each REO Property, which REO
Property was acquired during or prior to the related Due Period and as to which
REO Property an REO Disposition did not occur during the related Due Period, an
amount equal to the excess, if any, of the REO Imputed Interest on such REO
Property for the most recently ended calendar month, over the net income from
such REO Property transferred to the Distribution Account pursuant to Section
3.23 for distribution on such Distribution Date.

                  On or before 1:00 p.m. New York time on the Servicer
Remittance Date, the Servicer shall remit in immediately available funds to the
Trustee for deposit in the Distribution

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Account an amount equal to the aggregate amount of Advances, if any, to be made
in respect of the Mortgage Loans and REO Properties for the related Distribution
Date either (i) from its own funds or (ii) from the Collection Account, to the
extent of funds held therein for future distribution (in which case it will
cause to be made an appropriate entry in the records of Collection Account that
amounts held for future distribution have been, as permitted by this Section
4.03, used by the Servicer in discharge of any such Advance) or (iii) in the
form of any combination of (i) and (ii) aggregating the total amount of Advances
to be made by the Servicer with respect to the Mortgage Loans and REO
Properties. Any amounts held for future distribution used by the Servicer to
make an Advance as permitted in the preceding sentence shall be appropriately
reflected in the Servicer's records and replaced by the Servicer by deposit in
the Collection Account on or before any future Servicer Remittance Date to the
extent that the Available Funds for the related Distribution Date (determined
without regard to Advances to be made on the Servicer Remittance Date) shall be
less than the total amount that would be distributed to the Classes of
Certificateholders pursuant to Section 4.01 on such Distribution Date if such
amounts held for future distributions had not been so used to make Advances. The
Trustee will provide notice to the Servicer and the NIMS Insurer by telecopy by
the close of business on any Servicer Remittance Date in the event that the
amount remitted by the Servicer to the Trustee on such date is less than the
Advances required to be made by the Servicer for the related Distribution Date,
as set forth in the related Remittance Report.

                  (c) The obligation of the Servicer to make such Advances is
mandatory, notwithstanding any other provision of this Agreement but subject to
(d) below and (b) above with respect to Balloon Payments, and, with respect to
any Mortgage Loan, shall continue until the Mortgage Loan is paid in full or
until all Liquidation Proceeds thereon have been recovered, or a Final Recovery
Determination has been made thereon.

                  (d) Notwithstanding anything herein to the contrary, no
Advance or Servicing Advance shall be required to be made hereunder by the
Servicer if such Advance or Servicing Advance would, if made, constitute a
Nonrecoverable Advance or Nonrecoverable Servicing Advance, respectively. The
determination by the Servicer that it has made a Nonrecoverable Advance or a
Nonrecoverable Servicing Advance or that any proposed Advance or Servicing
Advance, if made, would constitute a Nonrecoverable Advance or Nonrecoverable
Servicing Advance, respectively, shall be evidenced by an Officers' Certificate
of the Servicer delivered to the Depositor, the NIMS Insurer and the Trustee.
Furthermore, the Servicer shall not be required to advance Relief Act Interest
Shortfalls.

                  SECTION 4.04. Allocation of Realized Losses.

                  (a) Not later than the eighteenth day of the calendar month in
which such Distribution Date occurs or if such eighteenth day is not a Business
Day, the following Business Day, the Servicer shall determine as to each
Mortgage Loan and REO Property: (i) the total amount of Realized Losses, if any,
incurred in connection with any Final Recovery Determinations made during the
related Prepayment Period; and (ii) the respective portions of such Realized
Losses allocable to interest and allocable to principal. Not later than the
eighteenth day of the calendar month in which such Distribution Date occurs or
if such eighteenth day is not a Business Day, the following Business Day, the
Servicer shall also determine as to each Mortgage Loan: (i) the total amount of
Realized Losses, if any, incurred in connection with any

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Deficient Valuations made during the related Prepayment Period; and (ii) the
total amount of Realized Losses, if any, incurred in connection with Debt
Service Reductions in respect of Monthly Payments due during the related Due
Period. The information described in the preceding sentence that is to be
supplied by the Servicer shall be evidenced by an Officer's Certificate
delivered to the Trustee by the Servicer not later than the eighteenth day of
the calendar month in which such Distribution Date occurs or if such eighteenth
day is not a Business Day, the following Business Day, immediately following the
end of the Prepayment Period during which any such Realized Loss was incurred.

                  (b) All Realized Losses on the Mortgage Loans shall be
allocated by the Trustee on each Distribution Date as follows: first, to Net
Monthly Excess Cashflow; second, to the Class CE Certificates, until the
Certificate Principal Balance thereof has been reduced to zero; third, to the
Class M-11 Certificates, until the Certificate Principal Balance thereof has
been reduced to zero; fourth, to the Class M-10 Certificates, until the
Certificate Principal Balance thereof has been reduced to zero; fifth, to the
Class M-9 Certificates, until the Certificate Principal Balance thereof has been
reduced to zero; sixth, to the Class M-8 Certificates, until the Certificate
Principal Balance thereof has been reduced to zero; seventh, to the Class M-7
Certificates, until the Certificate Principal Balance thereof has been reduced
to zero; eighth, to the Class M-6 Certificates, until the Certificate Principal
Balance thereof has been reduced to zero; ninth, to the Class M-5 Certificates,
until the Certificate Principal Balance thereof has been reduced to zero; tenth,
to the Class M-4 Certificates, until the Certificate Principal Balance thereof
has been reduced to zero; eleventh, to the Class M-3 Certificates, until the
Certificate Principal Balance thereof has been reduced to zero; twelfth, to the
Class M-2 Certificates, until the Certificate Principal Balance thereof has been
reduced to zero; and thirteenth, to the Class M-1 Certificates, until the
Certificate Principal Balance thereof has been reduced to zero. All Realized
Losses to be allocated to the Certificate Principal Balances of all Classes on
any Distribution Date shall be so allocated after the actual distributions to be
made on such date as provided above. All references above to the Certificate
Principal Balance of any Class of Certificates shall be to the Certificate
Principal Balance of such Class immediately prior to the relevant Distribution
Date, before reduction thereof by any Realized Losses, in each case to be
allocated to such Class of Certificates, on such Distribution Date.

                  Any allocation of Realized Losses to a Mezzanine Certificate
on any Distribution Date shall be made by reducing the Certificate Principal
Balance thereof by the amount so allocated; any allocation of Realized Losses to
a Class CE Certificate shall be made by reducing the amount otherwise payable in
respect thereof pursuant to Section 4.01(a)(4)(xviii). No allocations of any
Realized Losses shall be made to the Certificate Principal Balances of the Class
A Certificates or the Class P Certificates.

                  As used herein, an allocation of a Realized Loss on a "PRO
RATA basis" among two or more specified Classes of Certificates means an
allocation on a PRO RATA basis, among the various Classes so specified, to each
such Class of Certificates on the basis of their then outstanding Certificate
Principal Balances prior to giving effect to distributions to be made on such
Distribution Date. All Realized Losses and all other losses allocated to a Class
of Certificates hereunder will be allocated among the Certificates of such Class
in proportion to the Percentage Interests evidenced thereby.

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                  (c) (i) The REMIC I Marker Percentage of all Realized Losses
on the Mortgage Loans shall be allocated by the Trustee on each Distribution
Date to the following REMIC I Regular Interests in the specified percentages, as
follows: first, to Uncertificated Interest payable to the REMIC I Regular
Interest I-LTAA and REMIC I Regular Interest I-LTZZ up to an aggregate amount
equal to the REMIC I Interest Loss Allocation Amount, 98% and 2%, respectively;
second, to the Uncertificated Balances of the REMIC I Regular Interest I-LTAA
and REMIC I Regular Interest I-LTZZ up to an aggregate amount equal to the REMIC
I Principal Loss Allocation Amount, 98% and 2%, respectively; third, to the
Uncertificated Balances of REMIC I Regular Interest I-LTAA, REMIC I Regular
Interest I-LTM11 and REMIC I Regular Interest I-LTZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Balance of REMIC I Regular Interest
I-LTM11 has been reduced to zero; fourth, to the Uncertificated Balances of
REMIC I Regular Interest I-LTAA, REMIC I Regular Interest I-LTM10 and REMIC I
Regular Interest I-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated
Balance of REMIC I Regular Interest I-LTM6 has been reduced to zero; fifth, to
the Uncertificated Balances of REMIC I Regular Interest I-LTAA, REMIC I Regular
Interest I-LTM9 and REMIC I Regular Interest I-LTZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Balance of REMIC I Regular Interest
I-LTM5 has been reduced to zero; sixth, to the Uncertificated Balances of REMIC
I Regular Interest I-LTAA, REMIC I Regular Interest I-LTM8 and REMIC I Regular
Interest I-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance
of REMIC I Regular Interest I-LTM4 has been reduced to zero; seventh, to the
Uncertificated Balances of REMIC I Regular Interest I-LTAA, REMIC I Regular
Interest I-LTM7 and REMIC I Regular Interest I-LTZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Balance of REMIC I Regular Interest
I-LTM3 has been reduced to zero; eighth to the Uncertificated Balances of REMIC
I Regular Interest I-LTAA, REMIC I Regular Interest I-LTM6 and REMIC I Regular
Interest I-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance
of REMIC I Regular Interest I-LTM2 has been reduced to zero; ninth, to the
Uncertificated Balances of REMIC I Regular Interest I-LTAA, REMIC I Regular
Interest I-LTM5 and REMIC I Regular Interest II-LTZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Balance of REMIC I Regular Interest
I-LTM1 has been reduced to zero; tenth, to the Uncertificated Balances of REMIC
I Regular Interest I-LTAA, REMIC I Regular Interest I-LTM4 and REMIC I Regular
Interest I-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance
of REMIC I Regular Interest I-LTM5 has been reduced to zero; eleventh, to the
Uncertificated Balances of REMIC I Regular Interest I-LTAA, REMIC I Regular
Interest I-LTM3 and REMIC I Regular Interest I-LTZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Balance of REMIC I Regular Interest
I-LTM4 has been reduced to zero; twelfth, to the Uncertificated Balances of
REMIC I Regular Interest I-LTAA, REMIC I Regular Interest I-LTM2 and REMIC I
Regular Interest I-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated
Balance of REMIC I Regular Interest I-LTM3 has been reduced to zero; and
thirteenth, to the Uncertificated Balances of REMIC I Regular Interest I-LTAA,
REMIC I Regular Interest I-LTM1 and REMIC I Regular Interest I-LTZZ, 98%, 1% and
1%, respectively, until the Uncertificated Balance of REMIC I Regular Interest
I-LTM2 has been reduced to zero.

                  (ii) The REMIC I Sub WAC Allocation Percentage of all Realized
Losses shall be applied after all distributions have been made on each
Distribution Date first, so as to keep the Uncertificated Balance of each REMIC
I Regular Interest ending with the designation "GRP" equal to 0.01% of the
aggregate Stated Principal Balance of the Mortgage Loans in the related Loan
Group; second, to each REMIC I Regular Interest ending with the designation

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"SUB," so that the Uncertificated Balance of each such REMIC I Regular Interest
is equal to 0.01% of the excess of (x) the aggregate Stated Principal Balance of
the Mortgage Loans in the related Loan Group over (y) the Certificate Principal
Balance of the Class A Certificate in the related Loan Group (except that if any
such excess is a larger number than in the preceding distribution period, the
least amount of Realized Losses shall be applied to such REMIC I Regular
Interests such that the REMIC I Subordinated Balance Ratio is maintained); and
third, any remaining Realized Losses shall be allocated to REMIC I Regular
Interest I-LTXX.

                  SECTION 4.05. Compliance with Withholding Requirements

                  Notwithstanding any other provision of this Agreement, the
Trustee shall comply with all federal withholding requirements respecting
payments to Certificateholders of interest or original issue discount that the
Trustee reasonably believes are applicable under the Code. The consent of
Certificateholders shall not be required for such withholding. In the event the
Trustee does withhold any amount from interest or original issue discount
payments or advances thereof to any Certificateholder pursuant to federal
withholding requirements, the Trustee shall indicate the amount withheld to such
Certificateholders.

                  SECTION 4.06. Exchange Commission; Additional Information.

                  (a) The Trustee and the Servicer shall reasonably cooperate
with the Depositor in connection with satisfying the reporting requirements of
the Trust Fund under the Exchange Act. The Trustee shall prepare and sign on
behalf of the Trust Fund any Forms 8-K customary for similar securities as
required by the Exchange Act and the Rules and Regulations of the Commission
thereunder, and the Trustee shall file (via the Commission's Electronic Data
Gathering and Retrieval System) such forms on behalf of the Trust Fund. The
Trustee shall prepare and sign any Form 10-K which includes as exhibits (i) the
Certification (as defined in (b) below), (ii) the Servicer's annual statement of
compliance described under Section 3.20 and (iii) the accountant's report
described under Section 3.21 and the Trustee shall file (via the Commission's
Electronic Data Gathering and Retrieval System) such forms on behalf of the
Trust Fund. To the extent that the Commission requires any additional
information to be filed pursuant to a Form 10-K, the Trustee, shall prepare,
sign and promptly file an amended Form 10-K containing such additional
information. To the extent that the Servicer acquires actual knowledge of
material information (as determined by the Servicer in good faith) concerning
the Trust Fund, it shall notify the Trustee of such information.

                  (b) Each Form 8-K shall be filed by the Trustee within 15 days
after each Distribution Date with a copy of the Monthly Statement for such
Distribution Date as an exhibit thereto. Prior to March 31st of each year (or
such earlier date as may be required by the Exchange Act and the Rules and
Regulations of the Commission), the Trustee shall file a Form 10-K, in substance
as required by applicable law or applicable Commission staff's interpretations.
Such Form 10-K shall include as exhibits the Servicer's annual statement of
compliance described under Section 3.20 and the accountant's report described
under Section 3.21, in each case to the extent they have been timely delivered
to the Trustee. If they are not so timely delivered, the Trustee shall file an
amended Form 10-K including such documents as exhibits reasonably promptly after
they are delivered to the Trustee. The Trustee shall have no liability with
respect to any failure to properly prepare or file such periodic reports
resulting from

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or relating to (a) the Trustee's inability or failure to obtain any information
not resulting from its own negligence or willful misconduct or (b) any
inaccuracy in such periodic reports resulting from incorrect information
provided to the Trustee by the Servicer in a Remittance Report or otherwise. The
Form 10-K shall also include a certification in the form attached hereto as
Exhibit J-1 (the "Certification"), which shall be signed by the Trustee.

                  (c) In addition, the Servicer shall sign a certification (in
the form attached hereto as Exhibit J-2) for the benefit of the Trustee and its
officers, directors and Affiliates regarding certain aspects of the
Certification (provided, however, that the Servicer shall not undertake an
analysis of the accountant's report attached as an exhibit to the Form 10-K).
The Servicer's certification shall be delivered to the Trustee by no later than
March 15th of each year (or if such day is not a Business Day, the immediately
preceding Business Day).

                  In addition, (i) the Trustee shall, subject to the provisions
of Sections 8.01 and 8.02, indemnify and hold harmless the Depositor and the
Servicer and their respective officers, directors and Affiliates from and
against any losses, damages, penalties, fines, forfeitures, reasonable and
necessary legal fees and related costs, judgments and other costs and expenses
arising out of or based upon a breach of the Trustee's obligations under Section
4.06(b) or the Trustee's negligence, bad faith or willful misconduct in
connection therewith, and (ii) the Servicer shall indemnify and hold harmless
the Depositor, the Trustee and their respective officers, directors and
Affiliates from and against any losses, damages, penalties, fines, forfeitures,
reasonable and necessary legal fees and related costs, judgments and other costs
and expenses arising out of or based upon a breach of the Servicer's obligations
under this Section 4.06(b) or the Servicer's negligence, bad faith or willful
misconduct in connection therewith. If the indemnification provided for herein
is unavailable or insufficient to hold harmless the Depositor or the Servicer,
then (i) the Trustee agrees that it shall contribute to the amount paid or
payable by the Depositor or the Servicer, as applicable, as a result of the
losses, claims, damages or liabilities of the Depositor or the Servicer, as
applicable, in such proportion as is appropriate to reflect the relative fault
of the or the Depositor or the Servicer, as applicable, on the one hand and the
Trustee on the other in connection with a breach of the Trustee's obligations
under this Section 4.06(b) or the Trustee's negligence, bad faith or willful
misconduct in connection therewith and (ii) the Servicer agrees that it shall
contribute to the amount paid or payable by the Depositor or the Trustee, as
applicable, as a result of the losses, claims, damages or liabilities of the
Depositor or the Trustee, as applicable, in such proportion as is appropriate to
reflect the relative fault of the Depositor or the Trustee, as applicable, on
the one hand and the Servicer on the other in connection with a breach of the
Servicer's obligations under this Section 4.06(b) or the Servicer's negligence,
bad faith or willful misconduct in connection therewith. Notwithstanding any
other provision in this Agreement to the contrary, the Servicer shall not have
any responsibility or liability to any party relating to the certification or
information prepared, certified or distributed by the Trustee or any other party
other than the Servicer unless such information was derived from erroneous or
incomplete information required to be provided by the Servicer under this
Agreement.

                  (d) Upon any filing with the Commission pursuant to this
Section 4.06(b), the Trustee shall promptly deliver to the Depositor a copy of
any executed report, statement or information.

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                  (e) Prior to January 30 of the first year in which the Trustee
is able to do so under applicable law, the Trustee shall file a Form 15
Suspension Notification with respect to the Trust Fund.

                  SECTION 4.07. Net WAC Rate Carryover Reserve Account.

                  No later than the Closing Date, the Trustee shall establish
and maintain with itself a separate, segregated trust account titled, "U.S. Bank
National Association as Trustee, in trust for the registered holders of MASTR
Asset Backed Securities Trust 2004-WMC3, Mortgage Pass-Through Certificates,
Series 2004-WMC3--Net WAC Rate Carryover Reserve Account." Amounts deposited in
the Net WAC Rate Carryover Reserve Account will consist of any payments received
by the Trustee under the Cap Contracts and deposited into the Net WAC Rate
Carryover Reserve Account.

                  On each Distribution Date as to which there is a Net WAC Rate
Carryover Amount payable to the Class A Certificates and/or the Mezzanine
Certificates, the Trustee has been directed by the Class CE Certificateholders
to, and therefore will, deposit into the Net WAC Rate Carryover Reserve Account
the amounts described in Section 4.01(a)(4)(xvii), rather than distributing such
amounts to the Class CE Certificateholders. On each such Distribution Date, the
Trustee shall hold all such amounts for the benefit of the Holders of the Class
A Certificates and the Mezzanine Certificates, and will distribute such amounts
to the Holders of the Class A Certificates and/or the Mezzanine Certificates in
the amounts and priorities set forth in Section 4.01(d).

                  For federal and state income tax purposes, the Class CE
Certificateholders will be deemed to be the owners of the Net WAC Rate Carryover
Reserve Account and all amounts deposited into the Net WAC Rate Carryover
Reserve Account shall be treated as amounts distributed by REMIC II to the
Holders of the Class CE Interest and by REMIC III to the Holders of the Class CE
Certificates. Upon the termination of the Trust Fund, or the payment in full of
the Class A Certificates and the Mezzanine Certificates, all amounts remaining
on deposit in the Net WAC Rate Carryover Reserve Account will be released by the
Trust Fund and distributed to the Class CE Certificateholders or their
designees. The Net WAC Rate Carryover Reserve Account will be part of the Trust
Fund but not part of any REMIC and any payments to the Holders of the Class A
Certificates or the Mezzanine Certificates of Net WAC Rate Carryover Amounts
will not be payments with respect to a "regular interest" in a REMIC within the
meaning of Code Section 860(G)(a)(1).

                  By accepting a Class CE Certificate, each Class CE
Certificateholder hereby agrees to direct the Trustee, and the Trustee hereby is
directed, to deposit into the Net WAC Rate Carryover Reserve Account the amounts
described above on each Distribution Date as to which there is any Net WAC Rate
Carryover Amount rather than distributing such amounts to the Class CE
Certificateholders. By accepting a Class CE Certificate, each Class CE
Certificateholder further agrees that such direction is given for good and
valuable consideration, the receipt and sufficiency of which is acknowledged by
such acceptance.

                  At the direction of the Holders of a majority in Percentage
Interest in the Class CE Certificates, the Trustee shall direct any depository
institution maintaining the Net WAC

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Rate Carryover Reserve Account to invest the funds in such account in one or
more Permitted Investments bearing interest or sold at a discount, and maturing,
unless payable on demand, (i) no later than the Business Day immediately
preceding the date on which such funds are required to be withdrawn from such
account pursuant to this Agreement, if a Person other than the Trustee or an
Affiliate manages or advises such investment, and (ii) no later than the date on
which such funds are required to be withdrawn from such account pursuant to this
Agreement, if the Trustee or an Affiliate manages or advises such investment. If
no investment direction of the Holders of a majority in Percentage Interest in
the Class CE Certificates with respect to the Net WAC Rate Carryover Reserve
Account is received by the Trustee, the Trustee shall invest the funds in such
account in Permitted Investments managed by the Trustee or an Affiliate of the
kind described in clause (vi) of the definition of Permitted Investments. All
income and gain earned upon such investment shall be deposited into the Net WAC
Rate Carryover Reserve Account.

                  For federal tax return and information reporting, the value of
the right of the Group I Certificateholders, Group II Certificateholders and the
Mezzanine Certificateholders to receive payments from the Net WAC Rate Carryover
Reserve Account in respect of any Net Wac Rate Carryover Amount shall be
$193,618, $258,748 and $584,534, respectively.

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                                   ARTICLE V

                                THE CERTIFICATES

                  SECTION 5.01. The Certificates.

                  (a) The Certificates in the aggregate will represent the
entire beneficial ownership interest in the Mortgage Loans and all other assets
included in REMIC I.

                  The Certificates will be substantially in the forms annexed
hereto as Exhibits A-1 through A-20. The Certificates of each Class will be
issuable in registered form only, in denominations of authorized Percentage
Interests as described in the definition thereof. Each Certificate will share
ratably in all rights of the related Class.

                  Upon original issue, the Certificates shall be executed by the
Trustee and authenticated and delivered by the Trustee to or upon the order of
the Depositor. The Certificates shall be executed by manual or facsimile
signature on behalf of the Trustee by an authorized signatory. Certificates
bearing the manual or facsimile signatures of individuals who were at any time
the proper officers of the Trustee shall bind the Trustee notwithstanding that
such individuals or any of them have ceased to hold such offices prior to the
authentication and delivery of such Certificates or did not hold such offices at
the date of such Certificates. No Certificate shall be entitled to any benefit
under this Agreement or be valid for any purpose, unless there appears on such
Certificate a certificate of authentication substantially in the form provided
herein executed by the Trustee by manual signature, and such certificate of
authentication shall be conclusive evidence, and the only evidence, that such
Certificate has been duly authenticated and delivered hereunder. All
Certificates shall be dated the date of their authentication.

                  (b) The Class A Certificates and the Mezzanine Certificates
shall initially be issued as one or more Certificates held by the Book-Entry
Custodian or, if appointed to hold such Certificates as provided below, the
Depository and registered in the name of the Depository or its nominee and,
except as provided below, registration of such Certificates may not be
transferred by the Trustee except to another Depository that agrees to hold such
Certificates for the respective Certificate Owners with Ownership Interests
therein. The Certificate Owners shall hold their respective Ownership Interests
in and to such Certificates through the book-entry facilities of the Depository
and, except as provided below, shall not be entitled to definitive, fully
registered Certificates ("Definitive Certificates") in respect of such Ownership
Interests. All transfers by Certificate Owners of their respective Ownership
Interests in the Book-Entry Certificates shall be made in accordance with the
procedures established by the Depository Participant or brokerage firm
representing such Certificate Owner. Each Depository Participant shall only
transfer the Ownership Interests in the Book-Entry Certificates of Certificate
Owners it represents or of brokerage firms for which it acts as agent in
accordance with the Depository's normal procedures. The Trustee is hereby
initially appointed as the Book-Entry Custodian and hereby agrees to act as such
in accordance herewith and in accordance with the agreement that it has with the
Depository authorizing it to act as such. The Book-Entry Custodian may, and, if
it is no longer qualified to act as such, the Book-Entry Custodian shall,
appoint, by a written instrument delivered to the Depositor, the Servicer and
the Trustee, any other transfer agent

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<PAGE>

(including the Depository or any successor Depository) to act as Book-Entry
Custodian under such conditions as the predecessor Book-Entry Custodian and the
Depository or any successor Depository may prescribe, provided that the
predecessor Book-Entry Custodian shall not be relieved of any of its duties or
responsibilities by reason of any such appointment of other than the Depository.
If the Trustee resigns or is removed in accordance with the terms hereof, the
successor trustee or, if it so elects, the Depository shall immediately succeed
to its predecessor's duties as Book-Entry Custodian. The Depositor shall have
the right to inspect, and to obtain copies of, any Certificates held as
Book-Entry Certificates by the Book-Entry Custodian.

                  The Trustee, the Servicer and the Depositor may for all
purposes (including the making of payments due on the Book-Entry Certificates)
deal with the Depository as the authorized representative of the Certificate
Owners with respect to the Book-Entry Certificates for the purposes of
exercising the rights of Certificateholders hereunder. The rights of Certificate
Owners with respect to the Book-Entry Certificates shall be limited to those
established by law and agreements between such Certificate Owners and the
Depository Participants and brokerage firms representing such Certificate
Owners. Multiple requests and directions from, and votes of, the Depository as
Holder of the Book-Entry Certificates with respect to any particular matter
shall not be deemed inconsistent if they are made with respect to different
Certificate Owners. The Trustee may establish a reasonable record date in
connection with solicitations of consents from or voting by Certificateholders
and shall give notice to the Depository of such record date.

                  If (i)(A) the Depositor advises the Trustee in writing that
the Depository is no longer willing or able to properly discharge its
responsibilities as Depository, and (B) the Depositor is unable to locate a
qualified successor or (ii) after the occurrence of a Servicer Event of Default,
Certificate Owners representing in the aggregate not less than 51% of the
Ownership Interests of the Book-Entry Certificates advise the Trustee through
the Depository, in writing, that the continuation of a book-entry system through
the Depository is no longer in the best interests of the Certificate Owners, the
Trustee shall notify all Certificate Owners, through the Depository, of the
occurrence of any such event and of the availability of Definitive Certificates
to Certificate Owners requesting the same. Upon surrender to the Trustee of the
Book-Entry Certificates by the Book-Entry Custodian or the Depository, as
applicable, accompanied by registration instructions from the Depository for
registration of transfer, the Trustee shall cause the Definitive Certificates to
be issued. Such Definitive Certificates will be issued in minimum denominations
of $25,000, except that any beneficial ownership that was represented by a
Book-Entry Certificate in an amount less than $25,000 immediately prior to the
issuance of a Definitive Certificate shall be issued in a minimum denomination
equal to the amount represented by such Book-Entry Certificate. None of the
Depositor, the Servicer or the Trustee shall be liable for any delay in the
delivery of such instructions and may conclusively rely on, and shall be
protected in relying on, such instructions. Upon the issuance of Definitive
Certificates all references herein to obligations imposed upon or to be
performed by the Depository shall be deemed to be imposed upon and performed by
the Trustee, to the extent applicable with respect to such Definitive
Certificates, and the Trustee shall recognize the Holders of the Definitive
Certificates as Certificateholders hereunder.

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                  SECTION 5.02. Registration of Transfer and Exchange of
Certificates.

                  (a) The Trustee shall cause to be kept at one of the offices
or agencies to be appointed by the Trustee in accordance with the provisions of
Section 8.11, a Certificate Register for the Certificates in which, subject to
such reasonable regulations as it may prescribe, the Trustee shall provide for
the registration of Certificates and of transfers and exchanges of Certificates
as herein provided.

                  (b) No transfer of any Class M-11 Certificate, Class CE
Certificate, Class P Certificate or Residual Certificate (the "Private
Certificates") shall be made unless that transfer is made pursuant to an
effective registration statement under the Securities Act of 1933, as amended
(the "1933 Act"), and effective registration or qualification under applicable
state securities laws, or is made in a transaction that does not require such
registration or qualification. In the event that such a transfer of a Class CE
Certificate, Class P Certificate or Residual Certificate is to be made without
registration or qualification (other than in connection with the initial
transfer of any such Certificate by the Depositor to an affiliate of the
Depositor), the Trustee shall require receipt of: (i) if such transfer is
purportedly being made in reliance upon Rule 144A under the 1933 Act, written
certifications from the Certificateholder desiring to effect the transfer and
from such Certificateholder's prospective transferee, substantially in the forms
attached hereto as Exhibit F-1; and (ii) in all other cases, an Opinion of
Counsel satisfactory to it that such transfer may be made without such
registration or qualification (which Opinion of Counsel shall not be an expense
of the Trust Fund or of the Depositor, the Trustee, the Servicer in its capacity
as such or any Sub-Servicer), together with copies of the written
certification(s) of the Certificateholder desiring to effect the transfer and/or
such Certificateholder's prospective transferee upon which such Opinion of
Counsel is based, if any. None of the Depositor, the Servicer or the Trustee is
obligated to register or qualify any such Certificates under the 1933 Act or any
other securities laws or to take any action not otherwise required under this
Agreement to permit the transfer of such Certificates without registration or
qualification. Any Certificateholder desiring to effect the transfer of any such
Certificate shall, and does hereby agree to, indemnify the Trustee, the
Depositor and the Servicer against any liability that may result if the transfer
is not so exempt or is not made in accordance with such federal and state laws.
Notwithstanding anything to the contrary contained in this Agreement, all
transfers of the Class M-11 Certificates shall be made in reliance upon Rule
144A under the 1933 Act.

                  (c) No transfer of a Private Certificate or any interest
therein shall be made to any Plan, any Person acting, directly or indirectly, on
behalf of any such Plan or any Person acquiring such Certificates with "Plan
Assets" of a Plan within the meaning of the Department of Labor regulation
promulgated at 29 C. F. R. ss. 2510.3-101 ("Plan Assets"), as certified by such
transferee in the form of Exhibit G, unless the Trustee is provided with an
Opinion of Counsel for the benefit of the Trustee, the Depositor and the
Servicer and on which they may rely which establishes to the satisfaction of the
Depositor, the Trustee and the Servicer that the purchase of such Certificates
is permissible under applicable law, will not constitute or result in any
prohibited transaction under ERISA or Section 4975 of the Code and will not
subject the Depositor, the Servicer, the NIMS Insurer, the Trustee or the Trust
Fund to any obligation or liability (including obligations or liabilities under
ERISA or Section 4975 of the Code) in addition to those undertaken in this
Agreement, which Opinion of Counsel shall not be an expense of the Depositor,
the Servicer, the Trustee or the Trust Fund. Neither an Opinion of

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Counsel nor any certification will be required in connection with the initial
transfer of any such Certificate by the Depositor to an affiliate of the
Depositor (in which case, the Depositor or any affiliate thereof shall have
deemed to have represented that such affiliate is not a Plan or a Person
investing Plan Assets) and the Trustee shall be entitled to conclusively rely
upon a representation (which, upon the request of the Trustee, shall be a
written representation) from the Depositor of the status of such transferee as
an affiliate of the Depositor.

                  Each beneficial owner of a Mezzanine Certificates or any
interest therein shall be deemed to have represented, by virtue of its
acquisition or holding of that certificate or interest therein, that either (i)
it is not a Plan investor, (ii) in the case of each class other than Class M-11
Certificates, it has acquired and is holding such Mezzanine Certificates in
reliance on the Underwriters' Exemption, and that it understands that there are
certain conditions to the availability of the Underwriters' Exemption, including
that the Mezzanine Certificates must be rated, at the time of purchase, not
lower than "BBB-" (or its equivalent) by Moody's or S&P or (iii) (1) it is an
insurance company, (2) the source of funds used to acquire or hold the
certificate or interest therein is an "insurance company general account," as
such term is defined in PTCE 95-60, and (3) the conditions in Sections I and III
of PTCE 95-60 have been satisfied.

                  If any Mezzanine Certificate or Private Certificate or any
interest therein is acquired or held in violation of the provisions of the
preceding two paragraphs, the next preceding permitted beneficial owner will be
treated as the beneficial owner of that Certificate retroactive to the date of
transfer to the purported beneficial owner. Any purported beneficial owner whose
acquisition or holding of any such Certificate or interest therein was effected
in violation of the provisions of the preceding two paragraphs shall indemnify
and hold harmless the Depositor, the Servicer, the NIMS Insurer, the Trustee and
the Trust Fund from and against any and all liabilities, claims, costs or
expenses incurred by those parties as a result of that acquisition or holding.

                  (d) (i) Each Person who has or who acquires any Ownership
Interest in a Residual Certificate shall be deemed by the acceptance or
acquisition of such Ownership Interest to have agreed to be bound by the
following provisions and to have irrevocably authorized the Trustee or its
designee under clause (iii)(A) below to deliver payments to a Person other than
such Person and to negotiate the terms of any mandatory sale under clause
(iii)(B) below and to execute all instruments of Transfer and to do all other
things necessary in connection with any such sale. The rights of each Person
acquiring any Ownership Interest in a Residual Certificate are expressly subject
to the following provisions:

                  (A) Each Person holding or acquiring any Ownership Interest in
         a Residual Certificate shall be a Permitted Transferee and shall
         promptly notify the Trustee of any change or impending change in its
         status as a Permitted Transferee.

                  (B) In connection with any proposed Transfer of any Ownership
         Interest in a Residual Certificate, the Trustee shall require delivery
         to it, and shall not register the Transfer of any Residual Certificate
         until its receipt of, an affidavit and agreement (a "Transfer Affidavit
         and Agreement," in the form attached hereto as Exhibit F-2) from the
         proposed Transferee, in form and substance satisfactory to the Trustee,
         representing and warranting, among other things, that such Transferee
         is a Permitted

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         Transferee, that it is not acquiring its Ownership Interest in the
         Residual Certificate that is the subject of the proposed Transfer as a
         nominee, trustee or agent for any Person that is not a Permitted
         Transferee, that for so long as it retains its Ownership Interest in a
         Residual Certificate, it will endeavor to remain a Permitted
         Transferee, and that it has reviewed the provisions of this Section
         5.02(d) and agrees to be bound by them.

                  (C) Notwithstanding the delivery of a Transfer Affidavit and
         Agreement by a proposed Transferee under clause (B) above, if a
         Responsible Officer of the Trustee who is assigned to this transaction
         has actual knowledge that the proposed Transferee is not a Permitted
         Transferee, no Transfer of an Ownership Interest in a Residual
         Certificate to such proposed Transferee shall be effected.

                  (D) Each Person holding or acquiring any Ownership Interest in
         a Residual Certificate shall agree (x) to require a Transfer Affidavit
         and Agreement in the form attached hereto as Exhibit F-2 from any other
         Person to whom such Person attempts to transfer its Ownership Interest
         in a Residual Certificate and (y) not to transfer its Ownership
         Interest unless it provides a Transferor Affidavit (in the form
         attached hereto as Exhibit F-2) to the Trustee stating that, among
         other things, it has no actual knowledge that such other Person is not
         a Permitted Transferee.

                  (E) Each Person holding or acquiring an Ownership Interest in
         a Residual Certificate, by purchasing an Ownership Interest in such
         Certificate, agrees to give the Trustee written notice that it is a
         "pass-through interest holder" within the meaning of temporary Treasury
         regulation Section 1.67-3T(a)(2)(i)(A) immediately upon acquiring an
         Ownership Interest in a Residual Certificate, if it is, or is holding
         an Ownership Interest in a Residual Certificate on behalf of, a
         "pass-through interest holder."

                  (ii) The Trustee will register the Transfer of any Residual
Certificate only if it shall have received the Transfer Affidavit and Agreement
and all of such other documents as shall have been reasonably required by the
Trustee as a condition to such registration. In addition, no Transfer of a
Residual Certificate shall be made unless the Trustee shall have received a
representation letter from the Transferee of such Certificate to the effect that
such Transferee is a Permitted Transferee.

                  (iii)(A) If any purported Transferee shall become a Holder of
         a Residual Certificate in violation of the provisions of this Section
         5.02(d), then the last preceding Permitted Transferee shall be
         restored, to the extent permitted by law, to all rights as holder
         thereof retroactive to the date of registration of such Transfer of
         such Residual Certificate. The Trustee shall be under no liability to
         any Person for any registration of Transfer of a Residual Certificate
         that is in fact not permitted by this Section 5.02(d) or for making any
         payments due on such Certificate to the holder thereof or for taking
         any other action with respect to such holder under the provisions of
         this Agreement.

                  (B) If any purported Transferee shall become a holder of a
         Residual Certificate in violation of the restrictions in this Section
         5.02(d) and to the extent that the retroactive restoration of the
         rights of the holder of such Residual Certificate as described

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         in clause (iii)(A) above shall be invalid, illegal or unenforceable,
         then the Trustee shall have the right, without notice to the holder or
         any prior holder of such Residual Certificate, to sell such Residual
         Certificate to a purchaser selected by the Trustee on such terms as the
         Trustee may choose. Such purported Transferee shall promptly endorse
         and deliver each Residual Certificate in accordance with the
         instructions of the Trustee. Such purchaser may be the Trustee itself
         or any Affiliate of the Trustee. The proceeds of such sale, net of the
         commissions (which may include commissions payable to the Trustee or
         its Affiliates), expenses and taxes due, if any, will be remitted by
         the Trustee to such purported Transferee. The terms and conditions of
         any sale under this clause (iii)(B) shall be determined in the sole
         discretion of the Trustee, and the Trustee shall not be liable to any
         Person having an Ownership Interest in a Residual Certificate as a
         result of its exercise of such discretion.

                  (iv) The Trustee shall make available to the Internal Revenue
Service and those Persons specified by the REMIC Provisions all information
necessary to compute any tax imposed (A) as a result of the Transfer of an
Ownership Interest in a Residual Certificate to any Person who is a Disqualified
Organization, including the information described in Treasury regulations
sections 1.860D-1(b)(5) and 1.860E-2(a)(5) with respect to the "excess
inclusions" of such Residual Certificate and (B) as a result of any regulated
investment company, real estate investment trust, common Trust, partnership,
trust, estate or organization described in Section 1381 of the Code that holds
an Ownership Interest in a Residual Certificate having as among its record
holders at any time any Person which is a Disqualified Organization. Reasonable
compensation for providing such information may be accepted by the Trustee.

                  (v) The provisions of this Section 5.02(d) set forth prior to
this subsection (v) may be modified, added to or eliminated, provided that there
shall have been delivered to the Trustee and the NIMS Insurer at the expense of
the party seeking to modify, add to or eliminate any such provision the
following:

                  (A) written notification from each Rating Agency to the effect
         that the modification, addition to or elimination of such provisions
         will not cause such Rating Agency to downgrade its then-current ratings
         of any Class of Certificates; and

                  (B) an Opinion of Counsel, in form and substance satisfactory
         to the Trustee and the NIMS Insurer, to the effect that such
         modification of, addition to or elimination of such provisions will not
         cause any Trust REMIC to cease to qualify as a REMIC and will not cause
         any Trust REMIC to be subject to an entity-level tax caused by the
         Transfer of any Residual Certificate to a Person that is not a
         Permitted Transferee or a Person other than the prospective transferee
         to be subject to a REMIC-tax caused by the Transfer of a Residual
         Certificate to a Person that is not a Permitted Transferee.

                  The Trustee shall forward to the NIMS Insurer a copy of the
items delivered to it pursuant to (A) and (B) above.

                  (e) Subject to the preceding subsections, upon surrender for
registration of transfer of any Certificate at any office or agency of the
Trustee maintained for such purpose pursuant to Section 8.11, the Trustee shall
execute, authenticate and deliver, in the name of the

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designated Transferee or Transferees, one or more new Certificates of the same
Class of a like aggregate Percentage Interest.

                  (f) At the option of the Holder thereof, any Certificate may
be exchanged for other Certificates of the same Class with authorized
denominations and a like aggregate Percentage Interest, upon surrender of such
Certificate to be exchanged at any office or agency of the Trustee maintained
for such purpose pursuant to Section 8.11. Whenever any Certificates are so
surrendered for exchange, the Trustee shall execute, authenticate and deliver,
the Certificates which the Certificateholder making the exchange is entitled to
receive. Every Certificate presented or surrendered for transfer or exchange
shall (if so required by the Trustee) be duly endorsed by, or be accompanied by
a written instrument of transfer in the form satisfactory to the Trustee duly
executed by, the Holder thereof or his attorney duly authorized in writing. In
addition, (i) with respect to each Class R Certificate, the holder thereof may
exchange, in the manner described above, such Class R Certificate for two
separate certificates, each representing such holder's respective Percentage
Interest in the Class R-I Interest and the Class R-II Interest, respectively, in
each case that was evidenced by the Class R Certificate being exchanged and (ii)
with respect to each Class R-X Certificate, the holder thereof may exchange, in
the manner described above, such Class R-X Certificate for two separate
certificates, each representing such holder's respective Percentage Interest in
the Class R-III Interest and the Class R-IV Interest, respectively, in each case
that was evidenced by the Class R-X Certificate being exchanged.

                  (g) No service charge to the Certificateholders shall be made
for any transfer or exchange of Certificates, but the Trustee may require
payment of a sum sufficient to cover any tax or governmental charge that may be
imposed in connection with any transfer or exchange of Certificates.

                  (h) All Certificates surrendered for transfer and exchange
shall be canceled and destroyed by the Trustee in accordance with its customary
procedures.

                  SECTION 5.03. Mutilated, Destroyed, Lost or Stolen
Certificates.

                  If (i) any mutilated Certificate is surrendered to the
Trustee, or the Trustee receives evidence to its satisfaction of the
destruction, loss or theft of any Certificate, and (ii) there is delivered to
the Trustee and the NIMS Insurer such security or indemnity as may be required
by it to save it harmless, then, in the absence of actual knowledge by the
Trustee that such Certificate has been acquired by a bona fide purchaser or the
Trustee shall execute, authenticate and deliver, in exchange for or in lieu of
any such mutilated, destroyed, lost or stolen Certificate, a new Certificate of
the same Class and of like denomination and Percentage Interest. Upon the
issuance of any new Certificate under this Section, the Trustee may require the
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in relation thereto and any other expenses (including the fees
and expenses of the Trustee) connected therewith. Any replacement Certificate
issued pursuant to this Section shall constitute complete and indefeasible
evidence of ownership in the applicable REMIC created hereunder, as if
originally issued, whether or not the lost, stolen or destroyed Certificate
shall be found at any time.

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                  SECTION 5.04. Persons Deemed Owners.

                  The Depositor, the Servicer, the NIMS Insurer, the Trustee and
any agent of any of them may treat the Person in whose name any Certificate is
registered as the owner of such Certificate for the purpose of receiving
distributions pursuant to Section 4.01 and for all other purposes whatsoever,
and none of the Depositor, the Servicer, the NIMS Insurer, the Trustee or any
agent of any of them shall be affected by notice to the contrary.

                  SECTION 5.05. Certain Available Information.

                  On or prior to the date of the first sale of any Private
Certificate to an Independent third party, the Depositor shall provide to the
Trustee ten copies of any private placement memorandum or other disclosure
document used by the Depositor in connection with the offer and sale of such
Certificates. In addition, if any such private placement memorandum or
disclosure document is revised, amended or supplemented at any time following
the delivery thereof to the Trustee, the Depositor promptly shall inform the
Trustee of such event and shall deliver to the Trustee ten copies of the private
placement memorandum or disclosure document, as revised, amended or
supplemented. The Trustee shall maintain at its Corporate Trust Office and shall
make available free of charge during normal business hours for review by any
Holder of a Certificate or any Person identified to the Trustee as a prospective
transferee of a Certificate, originals or copies of the following items: (i) in
the case of a Holder or prospective transferee of a Private Certificate, the
related private placement memorandum or other disclosure document relating to
such Class of Certificates, in the form most recently provided to the Trustee;
and (ii) in all cases, (A) this Agreement and any amendments hereof entered into
pursuant to Section 11.01, (B) all monthly statements required to be delivered
to Certificateholders of the relevant Class pursuant to Section 4.02 since the
Closing Date, and all other notices, reports, statements and written
communications delivered to the Certificateholders of the relevant Class
pursuant to this Agreement since the Closing Date, (C) all certifications
delivered by a Responsible Officer of the Trustee since the Closing Date
pursuant to Section 10.01(h), (D) any and all Officers' Certificates delivered
to the Trustee by the Servicer since the Closing Date to evidence the Servicer's
determination that any Advance or Servicing Advance was, or if made, would be a
Nonrecoverable Advance or Nonrecoverable Servicing Advance, respectively, and
(E) any and all Officers' Certificates delivered to the Trustee by the Servicer
since the Closing Date pursuant to Section 4.04(a). Copies and mailing of any
and all of the foregoing items will be available from the Trustee upon request
at the expense of the Person requesting the same.

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                                   ARTICLE VI

                         THE DEPOSITOR AND THE SERVICER

                  SECTION 6.01. Liability of the Servicer and the Depositor.

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

                  SECTION 6.02. Merger or Consolidation of, or Assumption of the
Obligations of, the Servicer or the Depositor.

                  Any entity into which the Servicer or Depositor may be merged
or consolidated, or any entity resulting from any merger, conversion or
consolidation to which the Servicer or the Depositor shall be a party, or any
corporation succeeding to the business of the Servicer or the Depositor, shall
be the successor of the Servicer or the Depositor, as the case may be,
hereunder, without the execution or filing of any paper or any further act on
the part of any of the parties hereto, anything herein to the contrary
notwithstanding; provided, however, that the successor Servicer shall satisfy
all the requirements of Section 7.02 with respect to the qualifications of a
successor Servicer.

                  SECTION 6.03. Limitation on Liability of the Servicer and
Others.

                  (a) The Servicer (except the Trustee if it is required to
succeed the Servicer hereunder) indemnifies and holds the NIMS Insurer, the
Trustee and the Depositor harmless against any and all claims, losses,
penalties, fines, forfeitures, reasonable legal fees and related costs,
judgments, and any other costs, fees and expenses that the NIMS Insurer, the
Trustee and the Depositor may sustain in any way related to the failure of the
Servicer to perform its duties and service the Mortgage Loans in compliance with
the terms of this Agreement. The Servicer shall immediately notify the NIMS
Insurer, the Trustee and the Depositor if a claim is made that may result in
such claims, losses, penalties, fines, forfeitures, legal fees or related costs,
judgments, or any other costs, fees and expenses, and the Servicer shall assume
(with the consent of the Trustee) the defense of any such claim and pay all
expenses in connection therewith, including reasonable counsel fees, and
promptly pay, discharge and satisfy any judgment or decree which may be entered
against the NIMS Insurer, the Trustee and/or the Depositor in respect of such
claim. The provisions of this Section 6.03 shall survive the termination of this
Agreement and the payment of the outstanding Certificates. Any payment hereunder
made by the Servicer to the Trustee shall be from the Servicer's own funds,
without reimbursement from REMIC I therefor.

                  (b) None of the Servicer, the NIMS Insurer or the Depositor
nor any of the directors or officers or employees or agents of the Servicer, the
NIMS Insurer or the Depositor shall be under any liability to the Trust or the
Certificateholders for any action taken or for refraining from the taking of any
action by the Servicer or the Depositor in good faith pursuant to this
Agreement, or for errors in judgment; provided, however, that this provision
shall not protect

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the Servicer, the Depositor or any such Person against any liability which would
otherwise be imposed by reason of its willful misfeasance, bad faith or
negligence in the performance of duties of the Servicer or the Depositor, as the
case may be, or by reason of its reckless disregard of its obligations and
duties of the Servicer or the Depositor, as the case may be, hereunder. The NIMS
Insurer, the Servicer and any director or officer or employee or agent of the
NIMS Insurer or 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, the NIMS Insurer and the Depositor, and any
director or officer or employee or agent of the Servicer, the NIMS Insurer or
the Depositor, shall be indemnified by the Trust and held harmless against any
loss, liability or expense incurred in connection with (i) any legal action
relating to this Agreement or the Certificates, other than any loss, liability
or expense incurred by reason of its willful misfeasance, bad faith or
negligence or by reason of its reckless disregard of obligations and duties
hereunder or by reason of its failure to perform its obligations or duties
hereunder and (ii) any breach of a representation or warranty by such party
regarding the Mortgage Loans. The Servicer, the NIMS Insurer or the Depositor
may undertake any such action which it may deem necessary or desirable in
respect of this Agreement, and the rights and duties of the parties hereto and
the interests of the Certificateholders hereunder. In such event, unless the
Depositor or the Servicer acts without the consent of the Holders of
Certificates entitled to at least 51% of the Voting Rights, the reasonable legal
expenses and costs of such action and any liability resulting therefrom shall be
expenses, costs and liabilities of the Trust and the Servicer, and the NIMS
Insurer shall be entitled to be reimbursed therefor from the Collection Account
as and to the extent provided in Section 3.11, any such right of reimbursement
being prior to the rights of the Certificateholders to receive any amount in the
Collection Account. The Servicer's right to indemnity or reimbursement pursuant
to this Section 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). This paragraph
shall apply to the Servicer solely in its capacity as Servicer hereunder and in
no other capacities.

                  SECTION 6.04. Servicer Not to Resign.

                  The Servicer shall not resign from the obligations and duties
hereby imposed on it except upon determination that its duties hereunder are no
longer permissible under applicable law. Any such determination pursuant to the
preceding sentence permitting the resignation of the Servicer shall be evidenced
by an Opinion of Counsel to such effect obtained at the expense of the Servicer
and delivered to the Trustee and the NIMS Insurer. No resignation of the
Servicer shall become effective until the Trustee or a successor servicer
acceptable to the NIMS Insurer shall have assumed the Servicer's
responsibilities, duties, liabilities (other than those liabilities arising
prior to the appointment of such successor) and obligations under this
Agreement.

                  Except as expressly provided in this Agreement, the Servicer
shall not assign or transfer any of its rights, benefits or privileges hereunder
to any other Person, or delegate to or subcontract with, or authorize or appoint
any other Person to perform any of the duties, covenants or obligations to be
performed by the Servicer hereunder. The foregoing prohibition on assignment
shall not prohibit the Servicer from designating a Sub-Servicer as payee of any
indemnification amount payable to the Servicer hereunder; provided, however, no
Sub-Servicer

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shall be a third-party beneficiary hereunder and the parties hereto shall not be
required to recognize any Subservicer as an indemnitee under this Agreement.

                  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, who agrees to conduct such duties in accordance with standards
comparable to those set forth in 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.
Except as provided in Section 3.02, no such delegation is permitted that results
in the delegee subservicing any Mortgage Loans. The Servicer shall provide the
Trustee with 60 days prior written notice prior to the delegation of any of its
duties to any Person other than any of the Servicer's Affiliates or their
respective successors and assigns.

                  SECTION 6.06. Reserved.

                  SECTION 6.07. Inspection.

                  The Servicer, in its capacity as Servicer, shall afford the
Trustee, upon reasonable notice, during normal business hours, access to all
records maintained by the Servicer in respect of its rights and obligations
hereunder and access to officers of the Servicer responsible for such
obligations.

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                                  ARTICLE VII

                                     DEFAULT

                  SECTION 7.01. Servicer Events of Default.

                  (a) "Servicer Event of Default," wherever used herein, means
any one of the following events:

                  (i) any failure by the Servicer to remit to the Trustee for
         distribution to the Certificateholders any payment (other than an
         Advance required to be made from its own funds on any Servicer
         Remittance Date pursuant to Section 4.03) required to be made under the
         terms of the Certificates and this Agreement which continues unremedied
         for a period of one Business Day after the date upon which written
         notice of such failure, requiring the same to be remedied, shall have
         been given to the Servicer by the Depositor or the Trustee (in which
         case notice shall be provided by telecopy), or to the Servicer, the
         Depositor and the Trustee by the NIMS Insurer or the Holders of
         Certificates entitled to at least 25% of the Voting Rights; or

                  (ii) any failure on the part of the Servicer duly to observe
         or perform in any material respect any other of the covenants or
         agreements on the part of the Servicer contained in this Agreement, or
         the breach by the Servicer of any representation and warranty contained
         in Section 2.05, which continues unremedied for a period of 30 days (or
         if such failure or breach cannot be remedied within 30 days, then such
         remedy shall have been commenced within 30 days and diligently pursued
         thereafter; provided, however, that in no event shall such failure or
         breach be allowed to exist for a period of greater than 90 days) after
         the earlier of (i) the date on which written notice of such failure,
         requiring the same to be remedied, shall have been given to the
         Servicer by the Depositor, the Trustee or to the Servicer, the
         Depositor and the Trustee by the NIMS Insurer or the Holders of
         Certificates entitled to at least 25% of the Voting Rights and (ii)
         actual knowledge of such failure by a Servicing Officer of the
         Servicer; or

                  (iii) a decree or order of a court or agency or supervisory
         authority having jurisdiction in the premises in an involuntary case
         under any present or future federal or state bankruptcy, insolvency or
         similar law or the appointment of a conservator or receiver or
         liquidator in any insolvency, readjustment of debt, marshalling of
         assets and liabilities or similar proceeding, or for the winding-up or
         liquidation of its affairs, shall have been entered against the
         Servicer and such decree or order shall have remained in force
         undischarged or unstayed for a period of 90 days; or

                  (iv) the Servicer shall consent to the appointment of a
         conservator or receiver or liquidator in any insolvency, readjustment
         of debt, marshalling of assets and liabilities or similar proceedings
         of or relating to it or of or relating to all or substantially all of
         its property; or

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

                  (vi) [reserved]; or

                  (vii) any failure of the Servicer to make any Advance on any
         Servicer Remittance Date required to be made from its own funds
         pursuant to Section 4.03 which continues unremedied until 5:00 p.m. New
         York time on the Distribution Date.

                  If a Servicer Event of Default described in clauses (i)
through (vi) of this Section shall occur, then, and in each and every such case,
so long as such Servicer Event of Default shall not have been remedied, the
Depositor or the Trustee may, and at the written direction of the Holders of
Certificates entitled to at least 51% of Voting Rights or the NIMS Insurer, the
Trustee shall, by notice in writing to the Servicer (and to the Depositor if
given by the Trustee or to the Trustee if given by the Depositor), terminate,
subject to Section 7.02 hereof, all of the rights and obligations of the
Servicer in its capacity as Servicer under this Agreement, to the extent
permitted by law, and in and to the Mortgage Loans and the proceeds thereof. If
a Servicer Event of Default described in clause (vii) hereof, the Trustee shall
be obligated to make such Advance and, then so long as such Servicer Event of
Default shall not have been remedied during the applicable time period set forth
in clause (vii) above (including the reimbursement to the Trustee by the
Servicer, with interest thereon at the Prime Rate, for any Advance made), the
Trustee shall, by notice in writing to the Servicer, the Depositor and the NIMS
Insurer, terminate, subject to Section 7.02 hereof, all of the rights and
obligations of the Servicer in its capacity as Servicer under this Agreement and
in and to the Mortgage Loans and the proceeds thereof. On or after the receipt
by the Servicer of such written notice, all authority and power of the Servicer
under this Agreement, whether with respect to the Certificates (other than as a
Holder of any Certificate) or the Mortgage Loans or otherwise, shall pass to and
be vested in the Trustee pursuant to and under this Section, and, without
limitation, the Trustee is hereby authorized and empowered, as attorney-in-fact
or otherwise, to execute and deliver, on behalf of and at the expense of the
Servicer, any and all documents and other instruments and to do or accomplish
all other acts or things necessary or appropriate to effect the purposes of such
notice of termination, whether to complete the transfer and endorsement or
assignment of the Mortgage Loans and related documents, or otherwise. The
Servicer agrees to promptly (and in any event no later than ten Business Days
subsequent to such notice) provide the Trustee with all documents and records
requested by it to enable it to assume the Servicer's functions under this
Agreement, and to cooperate with the Trustee in effecting the termination of the
Servicer's responsibilities and rights under this Agreement, including, without
limitation, the transfer within one Business Day to the Trustee for
administration by it of all cash amounts which at the time shall be or should
have been credited by the Servicer to the Collection Account held by or on
behalf of the Servicer, the Distribution Account or any REO Account or Escrow
Account held by or on behalf of the Servicer or thereafter be received with
respect to the Mortgage Loans or any REO Property serviced by the Servicer
(provided, however, that the Servicer shall continue to be entitled to receive
all amounts accrued or owing to it under this Agreement on or prior to the date
of such termination, whether in respect of Advances or otherwise, and shall
continue to be entitled to the benefits of Section 6.03, notwithstanding any
such termination, with respect to

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events occurring prior to such termination). For purposes of this Section 7.01,
the Trustee shall not be deemed to have knowledge of a Servicer Event of Default
unless a Responsible Officer of the Trustee assigned to and working in the
Trustee's Corporate Trust Office has actual knowledge thereof or unless written
notice of any event which is in fact such a Servicer Event of Default is
received by the Trustee and such notice references the Certificates, the Trust
Fund or this Agreement.

                  SECTION 7.02. Trustee to Act; Appointment of Successor.

                  (a) (1) From the time the Servicer (and the Trustee, if notice
is sent by the Holders of Certificates entitled to at least 51% of Voting Rights
or the NIMS Insurer) receives a notice of termination, the Trustee (or such
other successor Servicer as is acceptable to the NIMS Insurer) shall be 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 all the
responsibilities, duties and liabilities relating thereto and arising thereafter
shall be assumed by the Trustee (except for any representations or warranties of
the Servicer under this Agreement, the responsibilities, duties and liabilities
contained in Section 2.05 (other than with respect to Section 2.05(x)) and the
obligation to deposit amounts in respect of losses pursuant to Section 3.12) by
the terms and provisions hereof; provided, however, the Trustee shall
immediately assume the Servicer's obligations to make Advances pursuant to
Section 4.03; provided, further, however, that if the Trustee is prohibited by
law or regulation from obligating itself to make advances regarding delinquent
mortgage loans, then the Trustee shall not be obligated to make Advances
pursuant to Section 4.03; and provided further, that any failure to perform such
duties or responsibilities caused by the Servicer's failure to provide
information required by Section 7.01 shall not be considered a default by the
Trustee as successor to the Servicer hereunder. As compensation therefor, the
Trustee shall be entitled to the Servicing Fee and all funds relating to the
Mortgage Loans to which the Servicer would have been entitled if it had
continued to act hereunder. Notwithstanding the above and subject to Section
7.02(a)(2) below, the Trustee if it shall be unwilling to so act, or shall, if
it is unable to so act or if it is prohibited by law from making advances
regarding delinquent mortgage loans or if the Holders of Certificates entitled
to at least 51% of the Voting Rights or the NIMS Insurer so request in writing
to the Trustee, promptly appoint or petition a court of competent jurisdiction
to appoint, an established mortgage loan servicing institution acceptable to
each Rating Agency and the NIMS Insurer and having a net worth of not less than
$15,000,000, as the successor to the Servicer under this Agreement in the
assumption of all or any part of the responsibilities, duties or liabilities of
the Servicer under this Agreement.

                  Pending appointment of a successor to the Servicer hereunder,
unless the Trustee is prohibited by law from so acting, the Trustee shall act in
such capacity as hereinabove provided. 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 which the
Servicer would otherwise have received pursuant to Section 3.18 (or such other
compensation as the Trustee and such successor shall agree, not to exceed the
Servicing Fee). The appointment of a successor Servicer shall not affect any
liability of the predecessor Servicer which may have arisen under this Agreement
prior to its termination as Servicer to pay any deductible under an insurance
policy pursuant to Section 3.14 or to indemnify the NIMS Insurer pursuant to
Section 6.03, nor shall any successor Servicer be liable

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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 Trustee and such successor shall take such
action, consistent with this Agreement, as shall be necessary to effectuate any
such succession. All reasonable Servicing Transfer Costs shall be paid by the
predecessor Servicer upon presentation of reasonable documentation of such
costs, and if such predecessor Servicer defaults in its obligation to pay such
costs, such costs shall be paid by the successor Servicer or the Trustee (in
which case the successor Servicer or the Trustee, as applicable, shall be
entitled to reimbursement therefor from the assets of the Trust Fund pursuant to
Section 3.11(b)).

                  (2) Notwithstanding Section 7.01 or any other provision of
this Section 7.02, it is understood, agreed and acknowledged by the parties
hereto that there will be a period of transition (not to exceed 90 days) before
the transition of servicing obligations to the Trustee or other successor
Servicer is fully effective. Until completion of such transition, the
predecessor Servicer shall continue to perform such duties and obligations under
this Agreement as shall be reasonably required by the Trustee or other successor
Servicer, for which the predecessor Servicer shall receive such reasonable
compensation (not to exceed the Servicing Fee) as shall be agreed to by the
predecessor Servicer and the Trustee or other successor Servicer. The
predecessor Servicer will continue to be liable under this Agreement for the
performance of such duties and obligations subject to the provisions of Section
6.01 and Section 6.03 hereof, and neither the Trustee or other successor
Servicer shall have any liability for the predecessor Servicer's performance of,
or failure to perform, such duties and obligations.

                  (3) No appointment of a successor to the Servicer under this
Agreement shall be effective until the assumption by the successor of all of the
Servicer's responsibilities, duties and liabilities hereunder. In connection
with such appointment and assumption described herein, the Trustee may make such
arrangements for the compensation of such successor out of payments on Mortgage
Loans as it and such successor shall agree; provided, however, that no such
compensation shall be in excess of that permitted the Servicer as such
hereunder. The Depositor, the Trustee and such successor shall take such action,
consistent with this Agreement, as shall be necessary to effectuate any such
succession. Pending appointment of a successor to the Servicer under this
Agreement or the Trustee shall act in such capacity as hereinabove provided.

                  Any successor to the Servicer, including the Trustee, shall
during the term of its service as servicer continue to service and administer
the Mortgage Loans for the benefit of Certificateholders, and 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 3.14.

                  (b) In connection with the termination or resignation of the
Servicer hereunder, either (i) the successor servicer, including the Trustee if
the Trustee is acting as successor Servicer, shall represent and warrant that it
is a member of MERS in good standing and shall agree to comply in all material
respects with the rules and procedures of MERS in connection with the servicing
of the Mortgage Loans that are registered with MERS, in which case the
predecessor Servicer shall cooperate with the successor Servicer in causing MERS
to

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revise its records to reflect the transfer of servicing to the successor
Servicer as necessary under MERS' rules and regulations, or (ii) the predecessor
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 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 Section 7.02(b).

                  SECTION 7.03. Notification to Certificateholders.

                  (a) Upon any termination of the Servicer pursuant to Section
7.01 above or any appointment of a successor to the Servicer pursuant to Section
7.02 above, the Trustee shall give prompt written notice thereof to
Certificateholders and the NIMS Insurer at their respective addresses appearing
in the Certificate Register.

                  (b) Not later than the later of 60 days after the occurrence
of any event, which constitutes or which, with notice or lapse of time or both,
would constitute a Servicer Event of Default or five days after a Responsible
Officer of the Trustee becomes aware of the occurrence of such an event, the
Trustee shall transmit by mail to the NIMS Insurer and to all Holders of
Certificates notice of each such occurrence, unless such default or Servicer
Event of Default shall have been cured or waived.

                  SECTION 7.04. Waiver of Servicer Events of Default.

                  The Holders representing at least 66% of the Voting Rights
(with the consent of the NIMS Insurer) evidenced by all Classes of Certificates
affected by any default or Servicer Event of Default hereunder may waive such
default or Servicer Event of Default; provided, however, that a default or
Servicer Event of Default under clause (i) or (vii) of Section 7.01 may be
waived only by all of the Holders of the Regular Certificates (with the consent
of the NIMS Insurer). Upon any such waiver of a default or Servicer Event of
Default, such default or Servicer Event of Default shall cease to exist and
shall be deemed to have been remedied for every purpose hereunder. No such
waiver shall extend to any subsequent or other default or Servicer Event of
Default or impair any right consequent thereon except to the extent expressly so
waived. Notice of any such waiver shall be given by the Trustee to the Rating
Agencies and the NIMS Insurer.

                  SECTION 7.05. Survivability of Servicer Liabilities.

                  Notwithstanding anything herein to the contrary, upon
termination of the Servicer hereunder, any liabilities of the Servicer which
accrued prior to such termination shall survive such termination.

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                                  ARTICLE VIII

                             CONCERNING THE TRUSTEE

                  SECTION 8.01. Duties of Trustee

                  The Trustee prior to the occurrence of a Servicer Event of
Default and after the curing of all Servicer Events of Default which may have
occurred, undertakes to perform such duties and only such duties as are
specifically set forth in this Agreement. During a Servicer Event of Default,
the Trustee shall exercise such of the rights and powers vested in it by this
Agreement, and use the same degree of care and skill in their exercise as a
prudent person would exercise or use under the circumstances in the conduct of
such person's own affairs. Any permissive right of the Trustee enumerated in
this Agreement shall not be construed as a duty.

                  The Trustee upon receipt of all resolutions, certificates,
statements, opinions, reports, documents, orders or other instruments furnished
to it, which are specifically required to be furnished pursuant to any provision
of this Agreement, shall examine them to determine whether they conform to the
requirements of this Agreement; provided, however, that the Trustee will not be
responsible for the accuracy or content of any such resolutions, certificates,
statements, opinions, reports, documents or other instruments. If any such
instrument is found not to conform to the requirements of this Agreement in a
material manner, it shall take such action as it deems appropriate to have the
instrument corrected, and if the instrument is not corrected to its
satisfaction, it will provide notice thereof to the Certificateholders and the
NIMS Insurer.

                  No provision of this Agreement shall be construed to relieve
the Trustee from liability for its own negligent action, its own negligent
failure to act or its own misconduct; provided, however, that:

                  (i) Prior to the occurrence of a Servicer Event of Default,
         and after the curing of all such Servicer Events of Default which may
         have occurred, the duties and obligations of the Trustee shall be
         determined solely by the express provisions of this Agreement, the
         Trustee shall be liable except for the performance of such duties and
         obligations as are specifically set forth in this Agreement, no implied
         covenants or obligations shall be read into this Agreement against the
         Trustee, and in the absence of bad faith on the part of the Trustee,
         the Trustee may conclusively rely, as to the truth of the statements
         and the correctness of the opinions expressed therein, upon any
         certificates or opinions furnished to the Trustee that conform to the
         requirements of this Agreement;

                  (ii) The Trustee shall not be personally liable for an error
         of judgment made in good faith by a Responsible Officer or Responsible
         Officers of it unless it shall be proved that it was negligent in
         ascertaining the pertinent facts;

                  (iii) The Trustee shall not be personally liable with respect
         to any action taken, suffered or omitted to be taken by it in good
         faith in accordance with the direction of the NIMS Insurer or the
         Holders of Certificates entitled to at least 25% of the Voting Rights
         relating to the time, method and place of conducting any proceeding for
         any remedy

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         available to it or exercising any trust or power conferred upon it
         under this Agreement; and

                  (iv) The Trustee shall not be required to take notice or be
         deemed to have notice or knowledge of any default or Master Servicer
         Event of Termination unless a Responsible Officer of the Trustee at the
         Corporate Trust Office obtains actual knowledge of such failure or the
         Trustee receives written notice of such failure from the Depositor, the
         Servicer or the Holders of Certificates evidencing not less than 51% of
         the Voting Rights.

         The Trustee shall not be required to expend or risk its own funds or
otherwise incur financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers, if there is
reasonable ground for believing that the repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it, and
none of the provisions contained in this Agreement shall in any event require
the Trustee to perform, or be responsible for the manner of performance of, any
of the obligations of the Servicer under this Agreement, except during such
time, if any, as the Trustee shall be the successor to, and be vested with the
rights, duties, powers and privileges of, the Master Servicer in accordance with
the terms of this Agreement

                  SECTION 8.02. Certain Matters Affecting the Trustee

                  (a) Except as otherwise provided in Section 8.01:

                  (i) The Trustee may request and rely upon and shall be
         protected in acting or refraining from acting upon any resolution,
         Officers'Certificate, certificate of auditors or any other certificate,
         statement, instrument, opinion, report, notice, request, consent,
         order, appraisal, bond or other paper or document reasonably believed
         by it to be genuine and to have been signed or presented by the proper
         party or parties;

                  (ii) The Trustee may consult with counsel and any Opinion of
         Counsel shall be full and complete authorization and protection in
         respect of any action taken or suffered or omitted by it hereunder in
         good faith and in accordance with such Opinion of Counsel;

                  (iii) The Trustee shall not be under any obligation to
         exercise any of the trusts or powers vested in it by this Agreement or
         to institute, conduct or defend any litigation hereunder or in relation
         hereto at the request, order or direction of any of the
         Certificateholders or the NIMS Insurer, pursuant to the provisions of
         this Agreement, unless such Certificateholders or the NIMS Insurer, as
         applicable, shall have offered to the Trustee reasonable security or
         indemnity against the costs, expenses and liabilities which may be
         incurred therein or thereby; nothing contained herein shall, however,
         relieve the Trustee of the obligation, upon the occurrence of a
         Servicer Event of Default (which has not been cured or waived), to
         exercise such of the rights and powers vested in it by this Agreement,
         and to use the same degree of care and skill in their exercise as a
         prudent person would exercise or use under the circumstances in the
         conduct of such person's own affairs;

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                  (iv) The Trustee shall not be personally liable for any action
         taken, suffered or omitted by it in good faith and believed by it to be
         authorized or within the discretion or rights or powers conferred upon
         it by this Agreement;

                  (v) Prior to the occurrence of a Servicer Event of Default
         hereunder and after the curing of all Servicer Events of Default which
         may have occurred, the Trustee shall not be bound to make any
         investigation into the facts or matters stated in any resolution,
         certificate, statement, instrument, opinion, report, notice, request,
         consent, order, approval, bond or other paper or document, unless
         requested in writing to do so by the NIMS Insurer or the Holders of
         Certificates entitled to at least 25% of the Voting Rights; provided,
         however, that if the payment within a reasonable time to the Trustee,
         of the costs, expenses or liabilities likely to be incurred by it in
         the making of such investigation is, in the opinion of the Trustee, not
         reasonably assured to the Trustee, by such Certificateholders, the
         Trustee may require reasonable indemnity against such expense, or
         liability from such Certificateholders or the NIMS Insurer, as
         applicable, as a condition to taking any such action;

                  (vi) The Trustee may execute any of the trusts or powers
         hereunder or perform any duties hereunder either directly or by or
         through agents or attorneys; provided, that the Trustee shall not be
         responsible for any negligence or willful misconduct on the part of the
         Custodian or any such agents or attorneys appointed by it with due
         care; and

                  (vii) The Trustee shall not be personally liable for any loss
         resulting from the investment of funds held in the Collection Account
         at the direction of the Servicer pursuant to Section 3.12.

                  (b) All rights of action under this Agreement or under any of
the Certificates, enforceable by the Trustee, may be enforced by it without the
possession of any of the Certificates, or the production thereof at the trial or
other proceeding relating thereto, and any such suit, action or proceeding
instituted by the Trustee shall be brought in its name for the benefit of all
the Holders of such Certificates, subject to the provisions of this Agreement.

                  (c) [Reserved].

                  SECTION 8.03. Trustee not Liable for Certificates or Mortgage
                                Loans.

                  The recitals contained herein and in the Certificates (other
than the signature of the Trustee, the authentication of the Trustee on the
Certificates, the acknowledgments of the Trustee contained in Article II and the
representations and warranties of the Trustee in Section 8.12) shall be taken as
the statements of the Depositor and the Trustee shall not assume any
responsibility for their correctness. The Trustee shall not make any
representations or warranties as to the validity or sufficiency of this
Agreement (other than as specifically set forth in Section 8.12) or of the
Certificates (other than the signature of the Trustee, and authentication of the
Trustee on the Certificates) or of any Mortgage Loan or related document or of
MERS or the MERS(R) System. The Trustee shall not be accountable for the use or
application by the Depositor of any of the Certificates or of the proceeds of
such Certificates, or for the use or application of any funds paid to the
Depositor or the Servicer in respect of the Mortgage Loans

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or deposited in or withdrawn from the Collection Account by the Servicer, other
than any funds held by or on behalf of the Trustee in accordance with Section
3.10.

                  SECTION 8.04. Trustee May Own Certificates.

                  The Trustee in its individual capacity or any other capacity
may become the owner or pledgee of Certificates with the same rights it would
have if it were not the Trustee.

                  SECTION 8.05. Trustee's Fees and Expenses.

                  The Trustee shall be entitled to withdraw from the
Distribution Account, pursuant to Section 3.11(b), on each Distribution Date and
pay to itself the Trustee Fee. The Trustee and any director, officer, employee
or agent of the Trustee, shall be indemnified by the Trust Fund and held
harmless against any loss, liability or expense (not including expenses,
disbursements and advances incurred or made by the Trustee including the
compensation and the expenses and disbursements of its agents and counsel, in
the ordinary course of the Trustee's performance in accordance with the
provisions of this Agreement) incurred by the Trustee arising out of or in
connection with the acceptance or administration of its obligations and duties
under this Agreement up to a limit of $600,000 per calender year, other than any
loss, liability or expense (i) resulting from any breach of the Servicer's
obligations in connection with this Agreement, (ii) that constitutes a specific
liability of the Trustee pursuant to Section 10.01(g) or (iii) any loss,
liability or expense incurred by reason of willful misfeasance, bad faith or
negligence in the performance of duties hereunder or by reason of reckless
disregard of obligations and duties hereunder as a result of a breach of the
Trustee's obligations under Article X hereof. It is understood by the parties
hereto that a "claim" as used in the preceding sentence includes any claim for
indemnification made by the Custodian under Section 11 of the Custodial
Agreement. Notwithstanding anything herein to the contrary, the Trustee shall be
reimbursed from the Trust Fund for all Servicing Transfer Costs without regard
to the annual limitation.

                  SECTION 8.06. Eligibility Requirements for Trustee

                  The Trustee hereunder shall at all times be a corporation or
an association (other than the Depositor, the Originator, the Seller, the
Servicer or any Affiliate of the foregoing) organized and doing business under
the laws of any state or the United States of America, authorized under such
laws to exercise corporate trust powers, having a combined capital and surplus
of at least $50,000,000 (or a member of a bank holding company whose capital and
surplus is at least $50,000,000) and subject to supervision or examination by
federal or state authority. If such corporation or association publishes reports
of conditions at least annually, pursuant to law or to the requirements of the
aforesaid supervising or examining authority, then for the purposes of this
Section the combined capital and surplus of such corporation or association
shall be deemed to be its combined capital and surplus as set forth in its most
recent report of conditions so published. In case at any time the Trustee shall
cease to be eligible in accordance with the provisions of this Section, the
Trustee shall resign immediately in the manner and with the effect specified in
Section 8.07.

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                  SECTION 8.07. Resignation and Removal of the Trustee

                  The Trustee may at any time resign and be discharged from the
trust hereby created by giving written notice thereof to the Depositor, the NIMS
Insurer, the Servicer and to the Certificateholders. Upon receiving such notice
of resignation, the Depositor shall promptly appoint a successor trustee
acceptable to the NIMS Insurer by written instrument, in duplicate, which
instrument shall be delivered to the resigning Trustee and to the successor
trustee. A copy of such instrument shall be delivered to the Certificateholders,
the Trustee and the Servicer by the Depositor. If no successor trustee shall
have been so appointed and have accepted appointment within 30 days after the
giving of such notice of resignation, the resigning Trustee may petition any
court of competent jurisdiction for the appointment of a successor trustee.

                  If at any time the Trustee shall cease to be eligible in
accordance with the provisions of Section 8.06 and shall fail to resign after
written request therefor by the Depositor or the NIMS Insurer, or if at any time
the Trustee shall become incapable of acting, or shall be adjudged bankrupt or
insolvent, or a receiver of the Trustee or of its property shall be appointed,
or any public officer shall take charge or control of the Trustee or of its
property or affairs for the purpose of rehabilitation, conservation or
liquidation, then the Depositor or the NIMS Insurer may remove the and appoint a
successor trustee acceptable to the NIMS Insurer by written instrument, in
duplicate, which instrument shall be delivered to the Trustee so removed and to
the successor trustee. A copy of such instrument shall be delivered to the
Certificateholders, the Trustee and the Servicer by the Depositor.

                  The Holders of Certificates entitled to at least 51% of the
Voting Rights (or the NIMS Insurer upon failure of the Trustee to perform its
obligations hereunder) may at any time remove the Trustee and appoint a
successor trustee acceptable to the NIMS Insurer by written instrument or
instruments, in triplicate, signed by such Holders or their attorneys-in-fact
duly authorized, one complete set of which instruments shall be delivered to the
Depositor, one complete set to the Trustee so removed and one complete set to
the successor so appointed. A copy of such instrument shall be delivered to the
Certificateholders and the Servicer by the Depositor.

                  Any resignation or removal of the Trustee and appointment of a
successor trustee, pursuant to any of the provisions of this Section shall not
become effective until acceptance of appointment by the successor trustee as
provided in Section 8.08. Notwithstanding the foregoing, in the event the
Trustee is unable to continue to perform its obligations pursuant to the terms
of this Agreement prior to the appointment of a successor, the Trustee shall be
obligated to perform such obligations until a new trustee is appointed. Such
performance shall be without prejudice to any claim by a party hereto or
beneficiary hereof resulting from the Trustee's breach of its obligations
hereunder.

                  SECTION 8.08. Successor Trustee

                  Any successor trustee appointed as provided in Section 8.07
shall execute, acknowledge and deliver to the Depositor, the NIMS Insurer and
its predecessor trustee an instrument accepting such appointment hereunder, and
thereupon the resignation or removal of the predecessor trustee shall become
effective and such successor trustee, without any further

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act, deed or conveyance, shall become fully vested with all the rights, powers,
duties and obligations of its predecessor hereunder, with the like effect as if
originally named as trustee herein. The predecessor trustee shall deliver to the
successor trustee all Mortgage Files and related documents and statements to the
extent held by it hereunder, as well as all moneys, held by it hereunder (other
than any Mortgage Files at the time held by the Custodian, which Custodian shall
become the agent of any successor trustee hereunder), and the Depositor and the
predecessor trustee shall execute and deliver such instruments and do such other
things as may reasonably be required for more fully and certainly vesting and
confirming in the successor trustee all such rights, powers, duties and
obligations.

                  No successor trustee shall accept appointment as provided in
this Section unless at the time of such acceptance such successor trustee shall
be eligible under the provisions of Section 8.06 and the appointment of such
successor trustee shall not result in a downgrading of any Class of Certificates
by any Rating Agency, as evidenced by a letter from each Rating Agency.

                  Upon acceptance of appointment by a successor trustee, as
provided in this Section, the Depositor shall mail notice of the succession of
such trustee hereunder to all Holders of Certificates at their addresses as
shown in the Certificate Register. If the Depositor fails to mail such notice
within 10 days after acceptance of appointment by the successor trustee, the
successor trustee shall cause such notice to be mailed at the expense of the
Depositor.

                  SECTION 8.09. Merger or Consolidation of Trustee.

                  Any corporation or association into which either the Trustee
may be merged or converted or with which it may be consolidated or any
corporation or association resulting from any merger, conversion or
consolidation to which the Trustee shall be a party, or any corporation or
association succeeding to the business of the Trustee shall be the successor of
the Trustee hereunder, provided such corporation or association shall be
eligible under the provisions of Section 8.06, without the execution or filing
of any paper or any further act on the part of any of the parties hereto,
anything herein to the contrary notwithstanding.

                  SECTION 8.10. Appointment of Co-Trustee or Separate Trustee.

                  Notwithstanding any other provisions hereof, at any time, for
the purpose of meeting any legal requirements of any jurisdiction in which any
part of REMIC I or property securing the same may at the time be located, the
Trustee shall have the power and shall execute and deliver all instruments to
appoint one or more Persons approved by the Trustee and the NIMS Insurer to act
as co-trustee or co-trustees, jointly with the Trustee, or separate trustee or
separate trustees, of all or any part of REMIC I, and to vest in such Person or
Persons, in such capacity, such title to REMIC I, or any part thereof, and,
subject to the other provisions of this Section 8.10, such powers, duties,
obligations, rights and trusts as the Trustee may consider necessary or
desirable. Any such co-trustee or separate trustee shall be subject to the
written approval of the NIMS Insurer. If the NIMS Insurer shall not have joined
in such appointment within 15 days after the receipt by it of a request to do
so, the Trustee alone shall have the power to make such appointment. No
co-trustee or separate trustee hereunder shall be required to meet the terms of
eligibility as a successor trustee under Section 8.06 hereunder and no notice to

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Holders of Certificates of the appointment of co-trustee(s) or separate
trustee(s) shall be required under Section 8.08 hereof.

                  In the case of any appointment of a co-trustee or separate
trustee pursuant to this Section 8.10 all rights, powers, duties and obligations
conferred or imposed upon the Trustee shall be conferred or imposed upon and
exercised or performed by the Trustee and such separate trustee or co-trustee
jointly, except to the extent that under any law of any jurisdiction in which
any particular act or acts are to be performed by the Trustee (whether as
Trustee hereunder or as successor to a defaulting Servicer hereunder), the
Trustee shall be incompetent or unqualified to perform such act or acts, in
which event such rights, powers, duties and obligations (including the holding
of title to REMIC I or any portion thereof in any such jurisdiction) shall be
exercised and performed by such separate trustee or co-trustee at the direction
of the Trustee.

                  Any notice, request or other writing given to the Trustee
shall be deemed to have been given to each of the then separate trustees and
co-trustees, as effectively as if given to each of them. Every instrument
appointing any separate trustee or co-trustee shall refer to this Agreement and
the conditions of this Article VIII. Each separate trustee and co-trustee, upon
its acceptance of the trust conferred, shall be vested with the estates or
property specified in its instrument of appointment, either jointly with the
Trustee, or separately, as may be provided therein, subject to all the
provisions of this Agreement, specifically including every provision of this
Agreement relating to the conduct of, affecting the liability of, or affording
protection to, the Trustee. Every such instrument shall be filed with the
Trustee and a copy thereof given to the NIMS Insurer.

                  Any separate trustee or co-trustee may, at any time,
constitute the Trustee, its agent or attorney-in-fact, with full power and
authority, to the extent not prohibited by law, to do any lawful act under or in
respect of this Agreement on its behalf and in its name. If any separate trustee
or co-trustee shall die, become incapable of acting, resign or be removed, all
of its estates, properties, rights, remedies and trusts shall vest in and be
exercised by the Trustee, to the extent permitted by law, without the
appointment of a new or successor trustee or co-trustee.

                  SECTION 8.11. Appointment of Office or Agency; Appointment of
                                Custodian.

                  The Trustee will appoint an office or agency in the City of
St. Paul, Minnesota where the Certificates may be surrendered for registration
of transfer or exchange, and presented for final distribution, and where notices
and demands to or upon the Trustee in respect of the Certificates and this
Agreement may be served.

                  The Trustee may, with the consent of the Depositor, the
Servicer and the NIMS Insurer, appoint the Custodian to hold all or a portion of
the Mortgage Files as agent for the Trustee, by entering into the Custodial
Agreement. The appointment of the Custodian may at any time be terminated and a
substitute Custodian appointed therefor upon the reasonable request of the
Servicer or the NIMS Insurer to the Trustee, the consent to which shall not be
unreasonably withheld. The Trustee initially appoints Wells Fargo Bank, N.A. as
Custodian, and the Depositor and the Servicer each consent to such appointment.
Subject to Article VIII hereof, the Trustee agrees to comply with the terms of
the Custodial Agreement and to enforce the terms

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and provisions thereof against the Custodian for the benefit of the
Certificateholders having an interest in any Mortgage File held by the
Custodian. The Custodian shall be a depository institution or trust company
subject to supervision by federal or state authority, shall have combined
capital and surplus of at least $10,000,000 and shall be qualified to do
business in the jurisdiction in which it holds any Mortgage File. Subject to
Section 8.02(a), in no event shall the appointment of the Custodian pursuant to
the Custodial Agreement diminish the obligations of the Trustee hereunder.

                  SECTION 8.12. Representations and Warranties.

                  The Trustee hereby represents and warrants to the Servicer and
the Depositor, as of the Closing Date, that:

                  (i) It is a national banking association duly organized,
         validly existing and in good standing under the laws of the United
         States of America.

                  (ii) The execution and delivery of this Agreement by it, and
         the performance and compliance with the terms of this Agreement by it,
         will not violate its articles of association or bylaws or constitute a
         default (or an event which, with notice or lapse of time, or both,
         would constitute a default) under, or result in the breach of, any
         material agreement or other instrument to which it is a party or which
         is applicable to it or any of its assets.

                  (iii) It has the full power and authority to enter into and
         consummate all transactions contemplated by this Agreement, has duly
         authorized the execution, delivery and performance of this Agreement,
         and has duly executed and delivered this Agreement.

                  (iv) This Agreement, assuming due authorization, execution and
         delivery by the other parties hereto, constitutes a valid, legal and
         binding obligation of it, enforceable against it in accordance with the
         terms hereof, subject to (A) applicable bankruptcy, insolvency,
         receivership, reorganization, moratorium and other laws affecting the
         enforcement of creditors'rights generally, and (B) general principles
         of equity, regardless of whether such enforcement is considered in a
         proceeding in equity or at law.

                  (v) It is not in violation of, and its execution and delivery
         of this Agreement and its performance and compliance with the terms of
         this Agreement will not constitute a violation of, any law, any order
         or decree of any court or arbiter, or any order, regulation or demand
         of any federal, state or local governmental or regulatory authority,
         which violation, in its good faith and reasonable judgment, is likely
         to affect materially and adversely either the ability of it to perform
         its obligations under this Agreement or its financial condition.

                  (vi) No litigation is pending or, to the best of its
         knowledge, threatened against it, which would prohibit it from entering
         into this Agreement or, in its good faith reasonable judgment, is
         likely to materially and adversely affect either the ability of it to
         perform its obligations under this Agreement or its financial
         condition.

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                                   ARTICLE IX

                                   TERMINATION

                  SECTION 9.01. Termination Upon Repurchase or Liquidation of
                                All Mortgage Loans.

                  (a) Subject to Section 9.02, the respective obligations and
responsibilities under this Agreement of the Depositor, the Servicer and the
Trustee (other than the indemnification obligations of the Servicer pursuant to
Section 6.03 and of the Servicer to make remittances to the Trustee and the
Trustee to make payments in respect of the REMIC I Regular Interests and the
Classes of Certificates as hereinafter set forth) shall terminate upon payment
to the Certificateholders and the deposit of all amounts held by or on behalf of
the Trustee and required hereunder to be so paid or deposited on the
Distribution Date coinciding with or following the earlier to occur of (i) the
purchase by the Terminator (as defined below) of all Mortgage Loans and each REO
Property remaining in REMIC I and (ii) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan or REO Property
remaining in REMIC I; provided, however, that in no event shall the trust
created hereby continue beyond the expiration of 21 years from the death of the
last survivor of the descendants of Joseph P. Kennedy, the late ambassador of
the United States to the Court of St. James, living on the date hereof. Subject
to Section 3.10 hereof, the purchase by the Terminator of all Mortgage Loans and
each REO Property remaining in REMIC I shall be at a price (the "Termination
Price") equal to the greater of (i) the Stated Principal Balance of the Mortgage
Loans and the appraised value of any REO Properties, such appraisal to be
conducted by an Independent appraiser mutually agreed upon by the Terminator and
the Trustee in their reasonable discretion and (ii) the fair market value of all
of the assets of REMIC I (as determined by the Terminator and the Trustee, as of
the close of business on the third Business Day next preceding the date upon
which notice of any such termination is furnished to Certificateholders pursuant
to the third paragraph of this Section 9.01) in each case, plus accrued and
unpaid interest thereon at the weighted average of the Mortgage Rates through
the end of the Due Period preceding the final Distribution Date, plus
unreimbursed Servicing Advances, Advances, any unpaid Servicing Fees and Trustee
Fees allocable to such Mortgage Loans and REO Properties, any accrued and unpaid
Net WAC Rate Carryover Amount; provided, however, such option may only be
exercised if (i) the Termination Price is sufficient to pay all interest accrued
on, as well as amounts necessary to retire the principal balance of, each class
of notes issued pursuant to the Indenture and any remaining amounts owed to the
trustee under the Indenture and the NIMS Insurer on the date such notes are
retired and (ii) the fair market value of the Mortgage Loans and REO Properties
determined as described above is at least equal to the Principal Balance of the
Mortgage Loans (after giving effect to scheduled payments of principal due
during the related Due Period, to the extent received or advanced, and
unscheduled collections of principal received during the related Prepayment
Period) and the appraised value of the REO Properties.

                  (b) The majority holder of the Class CE Certificates (so long
as such holder is not an affiliate of the Seller) or if such majority holder
fails to exercise such right, the Servicer (or if the Servicer fails to exercise
such right, the NIMS Insurer) shall have the right (the party exercising such
right, the "Terminator"), to purchase all of the Mortgage Loans and each REO
Property remaining in REMIC I pursuant to clause (i) of the preceding paragraph
no later than

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the Determination Date in the month immediately preceding the Distribution Date
on which the Certificates will be retired; provided, however, that the
Terminator may elect to purchase all of the Mortgage Loans and each REO Property
remaining in REMIC I pursuant to clause (i) above only if the aggregate Stated
Principal Balance of the Mortgage Loans and each REO Property remaining in the
Trust Fund at the time of such election is reduced to less than 10% of the
aggregate Stated Principal Balance of the Mortgage Loans as of the Cut-off Date.
By acceptance of the Residual Certificates, the Holder of the Residual
Certificates agrees for so long as any notes insured by the NIMS Insurer and
secured by all or a portion of the Class CE, Class P or Class R Certificates are
outstanding, in connection with any termination hereunder, to assign and
transfer any amounts in excess of par, and to the extent received in respect of
such termination, to pay any such amounts to the Holders of the Class CE
Certificates.

                  (c) Notice of the liquidation of the Certificates shall be
given promptly by the Trustee by letter to Certificateholders and the NIMS
Insurer mailed (a) in the event such notice is given in connection with the
purchase of the Mortgage Loans and each REO Property by the Terminator, not
earlier than the 10th day and not later than the 20th day of the month next
preceding the month of the final distribution on the Certificates or (b)
otherwise during the month of such final distribution on or before the
Determination Date in such month, in each case specifying (i) the Distribution
Date upon which the Trust Fund will terminate and the final payment in respect
of the REMIC I Regular Interests and the Certificates will be made upon
presentation and surrender of the related Certificates at the office of the
Trustee therein designated, (ii) the amount of any such final payment, (iii)
that no interest shall accrue in respect of the REMIC I Regular Interests or the
Certificates from and after the Accrual Period relating to the final
Distribution Date therefor and (iv) that the Record Date otherwise applicable to
such Distribution Date is not applicable, payments being made only upon
presentation and surrender of the Certificates at the office of the Trustee. In
the event such notice is given in connection with the purchase of all of the
Mortgage Loans and each REO Property remaining in REMIC I by the Terminator, the
Terminator shall deliver to the Trustee for deposit in the Distribution Account
not later than the last Business Day of the month next preceding the month of
the final distribution on the Certificates an amount in immediately available
funds equal to the Termination Price. The Trustee shall remit to the Servicer
from such funds deposited in the Distribution Account (i) any amounts which the
Servicer would be permitted to withdraw and retain from the Collection Account
pursuant to Section 3.11 and (ii) any other amounts otherwise payable by the
Trustee to the Servicer from amounts on deposit in the Distribution Account
pursuant to the terms of this Agreement, in each case prior to making any final
distributions pursuant to Section 10.01(d) below. Upon certification to the
Trustee by the Terminator of the making of such final deposit, the Trustee shall
promptly release to the Terminator the Mortgage Files for the remaining Mortgage
Loans, and the Trustee shall execute all assignments, endorsements and other
instruments necessary to effectuate such transfer.

                  (d) Upon presentation of the Certificates by the
Certificateholders on the final Distribution Date, the Trustee shall distribute
to each Certificateholder so presenting and surrendering its Certificates the
amount otherwise distributable on such Distribution Date in accordance with
Section 4.01 in respect of the Certificates so presented and surrendered. Any
funds not distributed to any Holder or Holders of Certificates being retired on
such Distribution Date because of the failure of such Holder or Holders to
tender their Certificates shall, on such date, be set aside and held in trust
and credited to the account of the appropriate non-tendering

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Holder or Holders. If any Certificates as to which notice has been given
pursuant to this Section 9.01 shall not have been surrendered for cancellation
within six months after the time specified in such notice, the Trustee shall
mail a second notice to the remaining non-tendering Certificateholders to
surrender their Certificates for cancellation in order to receive the final
distribution with respect thereto. If within one year after the second notice
all such Certificates shall not have been surrendered for cancellation, the
Trustee shall, directly or through an agent, mail a final notice to the
remaining non-tendering Certificateholders concerning surrender of their
Certificates. The costs and expenses of maintaining the funds in trust and of
contacting such Certificateholders shall be paid out of the assets remaining in
the Trust Fund. If within one year after the final notice any such Certificates
shall not have been surrendered for cancellation, the Trustee shall pay to UBS
Securities LLC all such amounts, and all rights of non-tendering
Certificateholders in or to such amounts shall thereupon cease. No interest
shall accrue or be payable to any Certificateholder on any amount held in trust
by the Trustee as a result of such Certificateholder's failure to surrender its
Certificate(s) for final payment thereof in accordance with this Section 9.01.
Any such amounts held in trust by the Trustee shall be held in an Eligible
Account and the Trustee may direct any depository institution maintaining such
account to invest the funds in one or more Permitted Investments. All income and
gain realized from the investment of funds deposited in such accounts held in
trust by the Trustee shall be for the benefit of the Trustee; provided, however,
that the Trustee shall deposit in such account the amount of any loss of
principal incurred in respect of any such Permitted Investment made with funds
in such accounts immediately upon the realization of such loss.

                  Immediately following the deposit of funds in trust hereunder
in respect of the Certificates, the Trust Fund shall terminate.

                  SECTION 9.02. Additional Termination Requirements.

                  (a) In the event that the Terminator purchases all the
Mortgage Loans and each REO Property or the final payment on or other
liquidation of the last Mortgage Loan or REO Property remaining in REMIC I
pursuant to Section 9.01, the Trust Fund shall be terminated in accordance with
the following additional requirements, unless the Trustee and the Servicer have
received an Opinion of Counsel, which Opinion of Counsel shall be at the expense
of the Terminator (or in connection with a termination resulting from the final
payment on or other liquidation of the last Mortgage Loan or REO Property
remaining in REMIC I, which Opinion of Counsel shall be at the expense of the
person seeking nonadherence to the following additional requirements but which
in no event shall be at the expense of the Trust Fund or, unless it is the
person seeking nonadherence to the following additional requirements, the
Servicer or the Trustee), to the effect that the failure of REMIC I to comply
with such additional requirements of this Section 9.02 will not (A) result in
the imposition on the Trust Fund of taxes on "prohibited transactions," as
described in Section 860F of the Code, or (B) cause REMIC I to fail to qualify
as a REMIC at any time that any Certificate is outstanding:

                  (i) The Trustee shall specify the first day in the 90-day
         liquidation period in a statement attached to each Trust REMIC's final
         Tax Return pursuant to Treasury regulation Section 1.860F-1 and shall
         satisfy all requirements of a qualified liquidation under Section 860F
         of the Code and any regulations thereunder, as evidenced by an Opinion
         of Counsel obtained at the expense of the Terminator;

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                  (ii) During such 90-day liquidation period and, at or prior to
         the time of making of the final payment on the Certificates, the
         Trustee shall sell all of the assets of REMIC I to the Terminator for
         cash; and

                  (iii) At the time of the making of the final payment on the
         Certificates, the Trustee shall distribute or credit, or cause to be
         distributed or credited, to the Holders of the Residual Certificates
         all cash on hand in the Trust Fund (other than cash retained to meet
         claims), and the Trust Fund shall terminate at that time.

                  (b) At the expense of the Terminator, the Depositor shall
prepare or cause to be prepared the documentation required in connection with
the adoption of a plan of liquidation of each Trust REMIC pursuant to this
Section 9.02.

                  (c) By their acceptance of Certificates, the Holders thereof
hereby agree to authorize the Trustee to specify the 90-day liquidation period
for each Trust REMIC, which authorization shall be binding upon all successor
Certificateholders.

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                                   ARTICLE X

                                REMIC PROVISIONS

                  SECTION 10.01. REMIC Administration.

                  (a) The Trustee shall elect to treat each Trust REMIC as a
REMIC under the Code and, if necessary, under applicable state law. Each such
election will be made by the Trustee on Form 1066 or other appropriate federal
tax or information return or any appropriate state return for the taxable year
ending on the last day of the calendar year in which the Certificates are
issued. For the purposes of the REMIC election in respect of REMIC I, the REMIC
I Regular Interests shall be designated as the Regular Interests in REMIC I and
the Class R-I Interest shall be designated as the Residual Interest in REMIC I.
The Class A Certificates, the Mezzanine Certificates, the Class CE Interest and
the Class P Interest shall be designated as the Regular Interests in REMIC II
and the Class R-II Interest shall be designated as the Residual Interest in
REMIC II. The CE Certificates shall be designated as the Regular Interests in
REMIC III and the Class R-III Interest shall be designated as the Residual
Interest in REMIC III. The P Certificates shall be designated as the Regular
Interests in REMIC IV and the Class R-IV Interest shall be designated as the
Residual Interest in REMIC IV. The Trustee shall not permit the creation of any
"interests" in any Trust REMIC (within the meaning of Section 860G of the Code)
other than the REMIC I Regular Interests, the Class CE Interest, the Class P
Interest and the interests represented by the Certificates.

                  (b) The Closing Date is hereby designated as the "Startup Day"
of each Trust REMIC within the meaning of Section 860G(a)(9) of the Code.

                  (c) The Trustee shall be reimbursed for any and all expenses
relating to any tax audit of the Trust Fund (including, but not limited to, any
professional fees or any administrative or judicial proceedings with respect to
any Trust REMIC that involve the Internal Revenue Service or state tax
authorities), including the expense of obtaining any tax related Opinion of
Counsel except as specified herein. The Trustee, as agent for each Trust REMIC's
tax matters person shall (i) act on behalf of the Trust Fund in relation to any
tax matter or controversy involving any Trust REMIC and (ii) represent the Trust
Fund in any administrative or judicial proceeding relating to an examination or
audit by any governmental taxing authority with respect thereto. The holder of
the largest Percentage Interest of the Residual Certificates shall be
designated, in the manner provided under Treasury regulations section
1.860F-4(d) and Treasury regulations section 301.6231(a)(7)-1, as the tax
matters person of the related REMIC created hereunder. By their acceptance
thereof, the holder of the largest Percentage Interest of the Residual
Certificates hereby agrees to irrevocably appoint the Trustee or an Affiliate as
its agent to perform all of the duties of the tax matters person for the Trust
Fund.

                  (d) The Trustee shall prepare, sign and file all of the Tax
Returns (including Form 8811, which must be filed within 30 days following the
Closing Date) in respect of each Trust REMIC. The expenses of preparing and
filing such returns shall be borne by the Trustee without any right of
reimbursement therefor.

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                  (e) The Trustee shall perform on behalf of each Trust REMIC
all reporting and other tax compliance duties that are the responsibility of
such REMIC under the Code, the REMIC Provisions or other compliance guidance
issued by the Internal Revenue Service or any state or local taxing authority.
Among its other duties, as required by the Code, the REMIC Provisions or other
such compliance guidance, the Trustee shall provide (i) to any Transferor of a
Residual Certificate such information as is necessary for the application of any
tax relating to the transfer of a Residual Certificate to any Person who is not
a Permitted Transferee, (ii) to the Certificateholders such information or
reports as are required by the Code or the REMIC Provisions including reports
relating to interest, original issue discount and market discount or premium
(using the Prepayment Assumption as required) and (iii) to the Internal Revenue
Service the name, title, address and telephone number of the person who will
serve as the representative of each Trust REMIC. The Depositor shall provide or
cause to be provided to the Trustee, within ten (10) days after the Closing
Date, all information or data that the Trustee reasonably determines to be
relevant for tax purposes as to the valuations and issue prices of the
Certificates, including, without limitation, the price, yield, prepayment
assumption and projected cash flow of the Certificates.

                  (f) The Trustee shall take such action and shall cause each
Trust REMIC to take such action as shall be necessary to create or maintain the
status thereof as a REMIC under the REMIC Provisions. The Trustee shall not take
any action or cause the Trust Fund to take any action or fail to take (or fail
to cause to be taken) any action that, under the REMIC Provisions, if taken or
not taken, as the case may be, could (i) endanger the status of any Trust REMIC
as a REMIC or (ii) result in the imposition of a tax upon the Trust Fund
(including but not limited to the tax on prohibited transactions as defined in
Section 860F(a)(2) of the Code and the tax on contributions to a REMIC set forth
in Section 860G(d) of the Code) (either such event, an "Adverse REMIC Event")
unless the Trustee and the NIMS Insurer has received an Opinion of Counsel,
addressed to the Trustee (at the expense of the party seeking to take such
action but in no event at the expense of the Trustee) to the effect that the
contemplated action will not, with respect to any Trust REMIC, endanger such
status or result in the imposition of such a tax, nor shall the Servicer take or
fail to take any action (whether or not authorized hereunder) as to which the
Trustee and the NIMS Insurer has advised it in writing that it has received an
Opinion of Counsel to the effect that an Adverse REMIC Event could occur with
respect to such action; provided that the Servicer may conclusively rely on such
Opinion of Counsel and shall incur no liability for its action or failure to act
in accordance with such Opinion of Counsel. In addition, prior to taking any
action with respect to any Trust REMIC or the respective assets of each, or
causing any Trust REMIC to take any action, which is not contemplated under the
terms of this Agreement, the Servicer will consult with the Trustee, the NIMS
Insurer or its designee, in writing, with respect to whether such action could
cause an Adverse REMIC Event to occur with respect to any Trust REMIC and the
Servicer shall not take any such action or cause any Trust REMIC to take any
such action as to which the Trustee or the NIMS Insurer has advised it in
writing that an Adverse REMIC Event could occur; provided that the Servicer may
conclusively rely on such writing and shall incur no liability for its action or
failure to act in accordance with such writing. The Trustee or the NIMS Insurer
may consult with counsel to make such written advice, and the cost of same shall
be borne by the party seeking to take the action not permitted by this
Agreement, but in no event shall such cost be an expense of the Trustee. At all
times as may be required by the Code, the Trustee will ensure that substantially
all of the assets of REMIC I will consist of "qualified mortgages" as defined in
Section 860G(a)(3) of the Code and

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"permitted investments" as defined in Section 860G(a)(5) of the Code, to the
extent such obligations are within the Trustee's control and not otherwise
inconsistent with the terms of this Agreement.

                  (g) In the event that any tax is imposed on "prohibited
transactions" of any REMIC created hereunder as defined in Section 860F(a)(2) of
the Code, on the "net income from foreclosure property" of such REMIC as defined
in Section 860G(c) of the Code, on any contributions to any such REMIC after the
Startup Day therefor pursuant to Section 860G(d) of the Code, or any other tax
is imposed by the Code or any applicable provisions of state or local tax laws,
such tax shall be charged (i) to the Trustee pursuant to Section 10.03 hereof,
if such tax arises out of or results from a breach by the Trustee of any of its
obligations under this Article X, (ii) to the Servicer pursuant to Section 10.03
hereof, if such tax arises out of or results from a breach by the Servicer of
any of its obligations under Article III or this Article X, or (iii) against
amounts on deposit in the Distribution Account and shall be paid by withdrawal
therefrom.

                  (h) On or before April 15th of each calendar year, commencing
April 15, 2005, the Trustee shall deliver to each Rating Agency and the NIMS
Insurer an Officer's Certificate of the Trustee stating the Trustee's compliance
with this Article X (without regard to any action taken by any party other than
the Trustee).

                  (i) The Trustee shall, for federal income tax purposes,
maintain books and records with respect to each Trust REMIC on a calendar year
and on an accrual basis.

                  (j) Following the Startup Day, neither the Servicer nor the
Trustee shall accept any contributions of assets to any Trust REMIC other than
in connection with any Qualified Substitute Mortgage Loan delivered in
accordance with Section 2.03 unless it shall have received an Opinion of Counsel
to the effect that the inclusion of such assets in the Trust Fund will not cause
the related REMIC to fail to qualify as a REMIC at any time that any
Certificates are outstanding or subject such REMIC to any tax under the REMIC
Provisions or other applicable provisions of federal, state and local law or
ordinances.

                  (k) Neither the Trustee nor the Servicer shall enter into any
arrangement by which any Trust REMIC will receive a fee or other compensation
for services nor permit either REMIC to receive any income from assets other
than "qualified mortgages" as defined in Section 860G(a)(3) of the Code or
"permitted investments" as defined in Section 860G(a)(5) of the Code.

                  SECTION 10.02. Prohibited Transactions and Activities.

                  None of the Depositor, the Servicer or the Trustee shall sell,
dispose of or substitute for any of the Mortgage Loans (except in connection
with (i) the foreclosure of a Mortgage Loan, including but not limited to, the
acquisition or sale of a Mortgaged Property acquired by deed in lieu of
foreclosure, (ii) the bankruptcy of REMIC I, (iii) the termination of REMIC I
pursuant to Article IX of this Agreement, (iv) a substitution pursuant to
Article II of this Agreement or (v) a purchase of Mortgage Loans pursuant to
Article II or III of this Agreement), nor acquire any assets for any Trust REMIC
(other than REO Property acquired in respect of a defaulted Mortgage Loan), nor
sell or dispose of any investments in the Collection

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Account or the Distribution Account for gain, nor accept any contributions to
any Trust REMIC after the Closing Date (other than a Qualified Substitute
Mortgage Loan delivered in accordance with Section 2.03), unless it has received
an Opinion of Counsel, addressed to the Trustee and the NIMS Insurer (at the
expense of the party seeking to cause such sale, disposition, substitution,
acquisition or contribution but in no event at the expense of the Trustee) that
such sale, disposition, substitution, acquisition or contribution will not (a)
affect adversely the status of any Trust REMIC as a REMIC or (b) cause any Trust
REMIC to be subject to a tax on "prohibited transactions" or "contributions"
pursuant to the REMIC Provisions.

                  SECTION 10.03. Servicer and Trustee Indemnification.

                  (a) In the event that any Trust REMIC fails to qualify as a
REMIC, loses its status as a REMIC, or incurs federal, state or local taxes as a
result of a prohibited transaction or prohibited contribution under the REMIC
Provisions due to (i) the negligent performance by the Trustee of its duties and
obligations set forth herein or (ii) any state, local or franchise taxes imposed
upon the Trust Fund as a result of the location of the Trustee or any
co-trustee, the Trustee shall indemnify the NIMS Insurer, the Servicer and the
Trust Fund against any and all Losses resulting from such negligence, including,
without limitation, any reasonable attorneys' fees imposed on or incurred as a
result of a breach of the Trustee's or any co-trustee's covenants; provided,
however, that the Trustee shall not be liable for any such Losses attributable
to the action or inaction of the Servicer, the Depositor or the Holder of such
Residual Certificate, as applicable, nor for any such Losses resulting from
misinformation provided by the Holder of such Residual Certificate on which the
Trustee has relied. The foregoing shall not be deemed to limit or restrict the
rights and remedies of the Holder of such Residual Certificate now or hereafter
existing at law or in equity. Notwithstanding the foregoing, however, in no
event shall the Trustee have any liability (1) for any action or omission that
is taken in accordance with and in compliance with the express terms of, or
which is expressly permitted by the terms of, this Agreement, (2) for any Losses
other than arising out of a negligent performance by the Trustee of its duties
and obligations set forth herein, and (3) for any special or consequential
damages to Certificateholders (in addition to payment of principal and interest
on the Certificates).

                  (b) In the event that any Trust REMIC fails to qualify as a
REMIC, loses its status as a REMIC, or incurs federal, state or local taxes as a
result of a prohibited transaction or prohibited contribution under the REMIC
Provisions due to (i) the negligent performance by the Servicer of its duties
and obligations set forth herein or (ii) any state, local or franchise taxes
imposed upon the Trust Fund as a result of the location of the Servicer or any
sub-servicer, the Servicer shall indemnify the NIMS Insurer, the Trustee and the
Trust Fund against any and all losses, claims, damages, liabilities or expenses
("Losses") resulting from such negligence, including, without limitation, any
reasonable attorneys' fees imposed on or incurred as a result of a breach of the
Servicer's or any sub-servicer's covenants; provided, however, that the Servicer
shall not be liable for any such Losses attributable to the action or inaction
of the Trustee, the Depositor or the Holder of such Residual Certificate, as
applicable, nor for any such Losses resulting from misinformation provided by
the Holder of such Residual Certificate on which the Servicer has relied. The
foregoing shall not be deemed to limit or restrict the rights and remedies of
the Holder of such Residual Certificate now or hereafter existing at law or in
equity. Notwithstanding the foregoing, however, in no event shall the Servicer
have any liability (1) for any action or omission that is taken in accordance
with and in compliance with the express terms

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of, or which is expressly permitted by the terms of, this Agreement, (2) for any
Losses other than arising out of a negligent performance by the Servicer of its
duties and obligations set forth herein, and (3) for any special or
consequential damages to Certificateholders (in addition to payment of principal
and interest on the Certificates).

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                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

                  SECTION 11.01. Amendment.

                  This Agreement may be amended from time to time by the
Depositor, the Servicer and the Trustee with the consent of the NIMS Insurer and
without the consent of any of the Certificateholders, (i) to cure any ambiguity
or defect, (ii) to correct, modify or supplement any provisions herein
(including to give effect to the expectations of Certificateholders), or (iii)
to make any other provisions with respect to matters or questions arising under
this Agreement which shall not be inconsistent with the provisions of this
Agreement, provided that such action shall not adversely affect in any material
respect the interests of any Certificateholder as evidenced by either (i) an
Opinion of Counsel delivered to the Servicer, the Trustee and the NIMS Insurer
or (ii) confirmation from the Rating Agencies, delivered to the Servicer, the
Trustee and the NIMS Insurer, that such amendment will not result in the
reduction or withdrawal of the rating of any outstanding Class of Certificates.
No amendment shall be deemed to adversely affect in any material respect the
interests of any Certificateholder who shall have consented thereto, and no
Opinion of Counsel shall be required to address the effect of any such amendment
on any such consenting Certificateholder.

                  This Agreement may also be amended from time to time by the
Depositor, the Servicer, the NIMS Insurer and the Trustee with the consent of
the NIMS Insurer and the Holders of Certificates entitled to at least 66% of the
Voting Rights for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of this Agreement or of modifying in
any manner the rights of the Holders of Certificates; provided, however, that no
such amendment shall (i) reduce in any manner the amount of, or delay the timing
of, payments received on Mortgage Loans which are required to be distributed on
any Certificate without the consent of the Holder of such Certificate, (ii)
adversely affect in any material respect the interests of the Holders of any
Class of Certificates (as evidenced by either (i) an Opinion of Counsel
delivered to the Trustee and the NIMS Insurer or (ii) confirmation from the
Rating Agencies, delivered to the Servicer, the Trustee and the NIMS Insurer,
that such action will not result in the reduction or withdrawal of the rating of
any outstanding Class of Certificates) in a manner, other than as described in
(i), or (iii) modify the consents required by the immediately preceding clauses
(i) and (ii) without the consent of the Holders of all Certificates then
outstanding. Notwithstanding any other provision of this Agreement, for purposes
of the giving or withholding of consents pursuant to this Section 11.01,
Certificates registered in the name of the Depositor or the Servicer or any
Affiliate thereof shall be entitled to Voting Rights with respect to matters
affecting such Certificates.

                  Notwithstanding any contrary provision of this Agreement,
neither the Trustee nor the NIMS Insurer shall consent to any amendment to this
Agreement unless it shall have first received an Opinion of Counsel satisfactory
to the NIMS Insurer to the effect that such amendment will not result in the
imposition of any tax on any Trust REMIC pursuant to the REMIC Provisions or
cause any Trust REMIC to fail to qualify as a REMIC at any time that any
Certificates are outstanding.

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                  Promptly after the execution of any such amendment the Trustee
shall furnish a copy of such amendment to each Certificateholder and make
available to each Certificateholder and the NIMS Insurer.

                  It shall not be necessary for the consent of
Certificateholders under this Section 11.01 to approve the particular form of
any proposed amendment, but it shall be sufficient if such consent shall approve
the substance thereof. The manner of obtaining such consents and of evidencing
the authorization of the execution thereof by Certificateholders shall be
subject to such reasonable regulations as the Trustee may prescribe.

                  The cost of any Opinion of Counsel to be delivered pursuant to
this Section 11.01 shall be borne by the Person seeking the related amendment,
but in no event shall such Opinion of Counsel be an expense of the Trustee.

                  The Trustee may, but shall not be obligated to enter into any
amendment pursuant to this Section that affects its rights, duties and
immunities under this Agreement or otherwise.

                  SECTION 11.02. Recordation of Agreement; Counterparts.

                  To the extent permitted by applicable law, this Agreement is
subject to recordation in all appropriate public offices for real property
records in all the counties or other comparable jurisdictions in which any or
all of the properties subject to the Mortgages are situated, and in any other
appropriate public recording office or elsewhere, such recordation to be
effected by the Servicer at the expense of the Certificateholders, but only upon
direction of the Trustee accompanied by an Opinion of Counsel to the effect that
such recordation materially and beneficially affects the interests of the
Certificateholders.

                  For the purpose of facilitating the recordation of this
Agreement as herein provided and for other purposes, this Agreement may be
executed simultaneously in any number of counterparts, each of which
counterparts shall be deemed to be an original, and such counterparts shall
constitute but one and the same instrument.

                  SECTION 11.03. Limitation on Rights of Certificateholders.

                  The death or incapacity of any Certificateholder shall not
operate to terminate this Agreement or the Trust, nor entitle such
Certificateholder's legal representatives or heirs to claim an accounting or to
take any action or proceeding in any court for a partition or winding up of the
Trust Fund, nor otherwise affect the rights, obligations and liabilities of the
parties hereto or any of them.

                  No Certificateholder shall have any right to vote (except as
expressly provided for herein) or in any manner otherwise control the operation
and management of the Trust, or the obligations of the parties hereto, nor shall
anything herein set forth, or contained in the terms of any of the Certificates,
be construed so as to constitute the Certificateholders from time to time as
partners or members of an association; nor shall any Certificateholder be under
any liability to any third person by reason of any action taken by the parties
to this Agreement pursuant to any provision hereof.

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                  No Certificateholder shall have any right by virtue of any
provision of this Agreement to institute any suit, action or proceeding in
equity or at law upon or under or with respect to this Agreement, unless such
Holder previously shall have given to the Trustee a written notice of default
and of the continuance thereof, as hereinbefore provided, and unless also the
Holders of Certificates entitled to at least 25% of the Voting Rights shall have
made written request upon the Trustee to institute such action, suit or
proceeding in its own name as Trustee hereunder and shall have offered to the
Trustee such reasonable indemnity as it may require against the costs, expenses
and liabilities to be incurred therein or thereby, and the Trustee, for 15 days
after its receipt of such notice, request and offer of indemnity, shall have
neglected or refused to institute any such action, suit or proceeding. It is
understood and intended, and expressly covenanted by each Certificateholder with
every other Certificateholder and the Trustee, that no one or more Holders of
Certificates shall have any right in any manner whatsoever by virtue of any
provision of this Agreement to affect, disturb or prejudice the rights of the
Holders of any other of such Certificates, or to obtain or seek to obtain
priority over or preference to any other such Holder, or to enforce any right
under this Agreement, except in the manner herein provided and for the equal,
ratable and common benefit of all Certificateholders. For the protection and
enforcement of the provisions of this Section, each and every Certificateholder
and the Trustee shall be entitled to such relief as can be given either at law
or in equity.

                  SECTION 11.04. Governing Law.

                  This Agreement shall be construed in accordance with the laws
of the State of New York and the obligations, rights and remedies of the parties
hereunder shall be determined in accordance with such laws.

                  SECTION 11.05. Notices.

                  All directions, demands and notices hereunder shall be in
writing and shall be deemed to have been duly given when received if personally
delivered at or mailed by first class mail, postage prepaid, or by express
delivery service or delivered in any other manner specified herein, to (a) in
the case of the Depositor, 1285 Avenue of the Americas, New York, New York
10019, Attention: Glenn McIntyre (telecopy number (212) 713-2080), or such other
address or telecopy number as may hereafter be furnished to the Servicer, the
NIMS Insurer and the Trustee in writing by the Depositor, (b) in the case of the
Servicer, HomEq Servicing Corporation, 4837 Watt Avenue, North Highlands,
California 95660-5101, Attention: Portfolio Management, Facsimile No. (919)
339-6995 with a copy to HomEq Servicing Corporation, 1620 East Roseville
Parkway, Suite 210, 2nd Floor, Roseville, California 95661, Attention: Legal
Department, Facsimile No. (919) 339-6995, or such other address or telecopy
number as may hereafter be furnished to the Depositor and the Trustee in writing
by the Servicer, (c) in the case of the Trustee, 60 Livingston Avenue, St. Paul,
Minnesota 55107, Attention: Structured Finance/MASTR 2004-WMC3 (telecopy number
(651) 495-8090), or such other address or telecopy number as may hereafter be
furnished to the Depositor, the NIMS Insurer, the Trustee and the Servicer in
writing by the Trustee, or such other address or telecopy number as may
hereafter be furnished to the Servicer, the NIMS Insurer and the Depositor in
writing by the Trustee and (d) in the case of the NIMS Insurer, if any, as
applicable, (i) Radian Insurance Inc., 1601 Market Street, Philadelphia,
Pennsylvania 19103, Attention: General Counsel and/or (ii)

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Financial Security Assurance Inc., 350 Park Avenue, New York, New York 10022,
Attn: Transaction Oversight, or such other address or telecopy number as may
hereafter be furnished to the Servicer, the Depositor and the Trustee in writing
by the NIMS Insurer. Any notice required or permitted to be given to a
Certificateholder shall be given by first class mail, postage prepaid, at the
address of such Holder as shown in the Certificate Register. Any notice so
mailed within the time prescribed in this Agreement shall be conclusively
presumed to have been duly given when mailed, whether or not the
Certificateholder receives such notice. A copy of any notice required to be
telecopied hereunder also shall be mailed to the appropriate party in the manner
set forth above.

                  SECTION 11.06. Severability of Provisions.

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

                  SECTION 11.07. Notice to Rating Agencies and the NIMS Insurer.

                  The Trustee shall use its best efforts promptly to provide
notice to the Rating Agencies and the NIMS Insurer with respect to each of the
following of which it has actual knowledge:

                  1. Any material change or amendment to this Agreement;

                  2. The occurrence of any Servicer Event of Default that has
         not been cured or waived;

                  3. The resignation or termination of the Servicer or the
         Trustee;

                  4. The repurchase or substitution of Mortgage Loans pursuant
         to or as contemplated by Section 2.03;

                  5. The final payment to the Holders of any Class of
         Certificates;

                  6. Any change in the location of the Collection Account or the
         Distribution Account;

                  7. Any event that would result in the inability of the Trustee
         to make advances regarding delinquent Mortgage Loans; and

                  8. The filing of any claim under any Servicer's blanket bond
         and errors and omissions insurance policy required by Section 3.14 or
         the cancellation or material modification of coverage under any such
         instrument.

                                      162
<PAGE>

                  In addition, the Trustee shall promptly make available to each
Rating Agency and the NIMS Insurer copies of each report to Certificateholders
described in Section 4.02 and copies of the following:

                  1. Each annual statement as to compliance described in Section
         3.20; and

                  2. Each annual independent public accountants' servicing
         report described in Section 3.21.

                  Any such notice pursuant to this Section 11.07 shall be in
writing and shall be deemed to have been duly given if personally delivered at
or mailed by first class mail, postage prepaid, or by express delivery service
to Moody's Investors Service Inc., 99 Church Street, New York, New York 10004,
Standard & Poor's Ratings Services, a division of the McGraw-Hill Companies,
Inc., 55 Water Street, New York, New York 10007, or such other addresses as the
Rating Agencies may designate in writing to the parties hereto.

                  SECTION 11.08. Article and Section References.

                  All article and section references used in this Agreement,
unless otherwise provided, are to articles and sections in this Agreement.

                  SECTION 11.09. Grant of Security Interest.

                  It is the express intent of the parties hereto that the
conveyance of the Mortgage Loans by the Depositor to the Trustee, be, and be
construed as, a sale of the Mortgage Loans by the Depositor and not a pledge of
the Mortgage Loans to secure a debt or other obligation of the Depositor.
However, in the event that, notwithstanding the aforementioned intent of the
parties, the Mortgage Loans are held to be property of the Depositor, then, (a)
it is the express intent of the parties that such conveyance be deemed a pledge
of the Mortgage Loans by the Depositor to the Trustee to secure a debt or other
obligation of the Depositor and (b)(1) this Agreement shall also be deemed to be
a security agreement within the meaning of Articles 8 and 9 of the Uniform
Commercial Code as in effect from time to time in the State of New York; (2) the
conveyance provided for in Section 2.01 hereof shall be deemed to be a grant by
the Depositor to the Trustee of a security interest in all of the Depositor's
right, title and interest in and to the Mortgage Loans and all amounts payable
to the holders of the Mortgage Loans in accordance with the terms thereof and
all proceeds of the conversion, voluntary or involuntary, of the foregoing into
cash, instruments, securities or other property, including without limitation
all amounts, other than investment earnings, from time to time held or invested
in the Collection Account and the Distribution Account, whether in the form of
cash, instruments, securities or other property; (3) the obligations secured by
such security agreement shall be deemed to be all of the Depositor's obligations
under this Agreement, including the obligation to provide to the
Certificateholders the benefits of this Agreement relating to the Mortgage Loans
and the Trust Fund; and (4) notifications to persons holding such property, and
acknowledgments, receipts or confirmations from persons holding such property,
shall be deemed notifications to, or acknowledgments, receipts or confirmations
from, financial intermediaries, bailees or agents (as applicable) of the Trustee
for the purpose of perfecting such security interest under applicable law.
Accordingly, the Depositor hereby grants to the Trustee a security interest in
the Mortgage Loans and all other

                                      163
<PAGE>

property described in clause (2) of the preceding sentence, for the purpose of
securing to the Trustee the performance by the Depositor of the obligations
described in clause (3) of the preceding sentence. Notwithstanding the
foregoing, the parties hereto intend the conveyance pursuant to Section 2.01 to
be a true, absolute and unconditional sale of the Mortgage Loans and assets
constituting the Trust Fund by the Depositor to the Trustee.

                  SECTION 11.10. Third Party Rights.

                  The NIMs Insurer shall be deemed a third-party beneficiary of
this Agreement to the same extent as if it were a party hereto, and shall have
the right to enforce the provisions of this Agreement.

                                      164
<PAGE>

                  IN WITNESS WHEREOF, the Depositor, the Servicer and the
Trustee have caused their names to be signed hereto by their respective officers
thereunto duly authorized, in each case as of the day and year first above
written.

                                   MORTGAGE ASSET SECURITIZATION
                                   TRANSACTIONS, INC.,
                                   as Depositor

                                   By:      /s/ Glenn McIntyre
                                      ------------------------------------------
                                   Name:    Glenn McIntyre
                                   Title:   Director

                                   By:      /s/ Jeffrey Lown
                                      -----------------------------------------
                                   Name:    Jeffrey Lown
                                   Title:   Executive Director

                                   HOMEQ SERVICING CORPORATION
                                   as Servicer

                                   By:      /s/ Arthur Lyon
                                      -----------------------------------------
                                   Name:    Arthur Lyon
                                   Title:   President

                                   U.S. BANK NATIONAL
                                   ASSOCIATION, as Trustee

                                   By:      /s/ Shannon Rantz
                                      -----------------------------------------
                                   Name:    Shannon Rantz
                                   Title:   Vice President

                                      165
<PAGE>

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

                  On the th day of December 2004, before me, a notary public in
and for said State, personally appeared ________________, known to me to be a
________________ of Mortgage Asset Securitization Transactions, Inc., one of the
corporations that executed the within instrument, and also known to me to be the
person who executed it on behalf of said corporation, and acknowledged to me
that such corporation executed the within instrument.

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

                                             ___________________________________
                                                        Notary Public

[Notarial Seal]

                                      166
<PAGE>

STATE OF _____________)
                      ) ss.:
COUNTY OF ____________)

                  On the ____ day of December 2004, before me, a notary public
in and for said State, personally appeared _____________________, known to me to
be __________________ of HomEq Servicing Corporation, one of the corporations
that executed the within instrument, and also known to me to be the person who
executed it on behalf of said corporation, and acknowledged to me that such
corporation executed the within instrument.

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

                                             ___________________________________
                                                        Notary Public

[Notarial Seal]

                                      167
<PAGE>

STATE OF MINNESOTA         )
                           )ss.:
COUNTY OF RAMSEY           )

                  On the ____ day of December 2004, before me, a notary public
in and for said State, personally appeared ______________, known to me to be a
____________ of U.S. Bank National Association, one of the corporations that
executed the within instrument, and also known to me to be the person who
executed it on behalf of said corporation, and acknowledged to me that such
corporation executed the within instrument.

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

                                             ___________________________________
                                                        Notary Public

[Notarial Seal]

                                      168

<PAGE>

                                   EXHIBIT A-1
                                   -----------

                          FORM OF CLASS A-1 CERTIFICATE

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
         TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
         PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
         CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
         OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
         ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
         TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE
         & CO., HAS AN INTEREST HEREIN.

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 AS AMENDED (THE "CODE").

Series: 2004-WMC3                              Aggregate Certificate Principal
                                               Balance of the Class A-1
                                               Certificates as of the Issue

Pass-Through Rate: Variable                    Date: $249,465,000.00

Cut-off Date and date of Pooling and           Denomination: $249,465,000.00
Servicing  Agreement: December 1, 2004

                                               Servicer: HomEq Servicing
                                               Corporation

First Distribution Date: January 25, 2005

                                               Trustee: U.S. Bank National
                                               Association
No. 1
                                               Issue Date: December 21, 2004

                                               CUSIP: 57643L FH 4

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
         CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
         OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE
         LESS THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS
         CERTIFICATE.

<PAGE>

                        MORTGAGE PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate and adjustable-rate, first and second lien mortgage
loans (the "Mortgage Loans") formed and sold by

                MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., THE SERVICER, THE
         TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
         NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class A-1 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class A-1 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Mortgage
Asset Securitization Transactions, Inc. (hereinafter called the "Depositor,"
which term includes any successor entity under the Agreement), the Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class A-1 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and is
the registered owner of Class A-1 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or (ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
A-1 Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and

<PAGE>

only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose as provided in the Agreement.

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
equal a rate per annum equal to the lesser of (i) the related Formula Rate for
such Distribution Date and (ii) the related Net WAC Rate for such Distribution
Date.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Distribution Account may be made from time to
time for purposes other than distributions to Certificateholders, such purposes
including reimbursement of advances made, or certain expenses incurred, with
respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but

<PAGE>

the Trustee may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any transfer or
exchange of Certificates.

                  The Depositor, the Servicer, the Trustee and any agent of the
Depositor, the Servicer and the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Servicer, the Trustee nor any such agent shall be affected by
notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
10% of the aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

<PAGE>

                  IN WITNESS WHEREOF, the Trustee has caused this Certificate to
be duly executed.

Dated: December__, 2004

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               not in its individual capacity,
                                               but solely as Trustee for the
                                               MASTR Asset Backed Securities
                                               Trust 2004-WMC3

                                               By:______________________________
                                                       Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               as Trustee

                                               By:______________________________
                                                     Authorized Signatory

<PAGE>

                                  ABBREVIATIONS
                                  -------------

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM - as tenants in common                  UNIF GIFT MIN ACT - Custodian
                                                                    ---------
TEN ENT - as tenants by the entireties                  (Cust) (Minor) under
                                                Uniform Gifts
JT TEN - as joint tenants with right                    to Minors Act
         if survivorship and not as                     _______________
         tenants in common                                  (State)

         Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s)____________________________________________________________ unto
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.

         I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
________________________________________________________________________________

Dated: _________________

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           _____________________________________
                                           Signature Guaranteed

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________________________________________________________
_____________________________________________________________ for the account of
_______________________________, account number _______________________________,
or, if mailed by check, to______________________________________________________
______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
__________________________________________________________________________. This
information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.

<PAGE>

                                   EXHIBIT A-2
                                   -----------

                          FORM OF CLASS A-2 CERTIFICATE

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
         TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
         PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
         CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
         OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
         ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
         TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE
         & CO., HAS AN INTEREST HEREIN.

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 AS AMENDED (THE "CODE").

Series:  2004-WMC3                             Aggregate Certificate Principal
                                               Balance of the Class A-2
                                               Certificates as of the Issue
                                               Date: $62,366,000.00
Pass-Through Rate: Variable

Cut-off Date and date of Pooling and           Denomination: $62,366,000.00
Servicing  Agreement: December 1, 2004
                                               Servicer: HomEq Servicing
                                               Corporation
First Distribution Date: January 25, 2005
                                               Trustee: U.S. Bank National
                                               Association
No. 1
                                               Issue Date: December 21, 2004

                                               CUSIP: 57643L FJ 0

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
         CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
         OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE
         LESS THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS
         CERTIFICATE.

<PAGE>

                        MORTGAGE PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate and adjustable-rate, first and second lien mortgage
loans (the "Mortgage Loans") formed and sold by

                MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., THE SERVICER, THE
         TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
         NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class A-2 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class A-2 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Mortgage
Asset Securitization Transactions, Inc. (hereinafter called the "Depositor,"
which term includes any successor entity under the Agreement), the Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class A-2 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and is
the registered owner of Class A-2 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or (ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
A-2 Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and

<PAGE>

only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose as provided in the Agreement.

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
equal a rate per annum equal to the lesser of (i) the related Formula Rate for
such Distribution Date and (ii) the related Net WAC Rate for such Distribution
Date.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Distribution Account may be made from time to
time for purposes other than distributions to Certificateholders, such purposes
including reimbursement of advances made, or certain expenses incurred, with
respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer and the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but

<PAGE>

the Trustee may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any transfer or
exchange of Certificates.

                  The Depositor, the Servicer, the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Servicer, the Trustee nor any such agent shall be affected by
notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
10% of the aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

<PAGE>

                  IN WITNESS WHEREOF, the Trustee has caused this Certificate to
be duly executed.

Dated: December__, 2004

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               not in its individual capacity,
                                               but solely as Trustee for the
                                               MASTR Asset Backed Securities
                                               Trust 2004-WMC3

                                               By:______________________________
                                                       Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               as Trustee

                                               By:______________________________
                                                     Authorized Signatory

<PAGE>

                                  ABBREVIATIONS
                                  -------------

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM - as tenants in common                  UNIF GIFT MIN ACT - Custodian
                                                                    ---------
TEN ENT - as tenants by the entireties                  (Cust) (Minor) under
                                                Uniform Gifts to Minors Act
JT TEN - as joint tenants with right
         if survivorship and not as                     _______________
         tenants in common                                  (State)

         Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s)____________________________________________________________ unto
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.

         I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
________________________________________________________________________________

Dated: _________________

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           _____________________________________
                                           Signature Guaranteed

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________________________________________________________
_____________________________________________________________ for the account of
_______________________________, account number _______________________________,
or, if mailed by check, to______________________________________________________
______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
__________________________________________________________________________. This
information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.

<PAGE>

                                   EXHIBIT A-3
                                   -----------

                          FORM OF CLASS A-3 CERTIFICATE

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
         TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
         PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
         CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
         OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
         ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
         TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE
         & CO., HAS AN INTEREST HEREIN.

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 AS AMENDED (THE "CODE").

Series: 2004-WMC3                              Aggregate Certificate Principal
                                               Balance of the Class A-3
                                               Certificates as of the Issue
Pass-Through Rate: Variable                    Date: $149,419,000.00

Cut-off Date and date of Pooling and           Denomination: $149,419,000.00
Servicing  Agreement: December 1, 2004
                                               Servicer: HomEq Servicing
                                               Corporation
First Distribution Date: January 25, 2005
                                               Trustee: U.S. Bank National
                                               Association

No. 1                                          Issue Date: December 21, 2004

                                               CUSIP: 57643L FK 7

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
         CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
         OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE
         LESS THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS
         CERTIFICATE.

<PAGE>

                        MORTGAGE PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate and adjustable-rate, first and second lien mortgage
loans (the "Mortgage Loans") formed and sold by

                MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., THE SERVICER, THE
         TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
         NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class A-3 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class A-3 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Mortgage
Asset Securitization Transactions, Inc. (hereinafter called the "Depositor,"
which term includes any successor entity under the Agreement), the Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class A-3 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and is
the registered owner of Class A-3 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or (ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class A
Certificates, or otherwise by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register. Notwithstanding the above, the final distribution on this
Certificate will be made after due notice by the Trustee of the pendency of such
distribution and

                                       16
<PAGE>

only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose as provided in the Agreement.

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
equal a rate per annum equal to the lesser of (i) the related Formula Rate for
such Distribution Date and (ii) the related Net WAC Rate for such Distribution
Date.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Distribution Account may be made from time to
time for purposes other than distributions to Certificateholders, such purposes
including reimbursement of advances made, or certain expenses incurred, with
respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No

                                       17
<PAGE>

service charge will be made for any such registration of transfer or exchange of
Certificates, but the Trustee may require payment of a sum sufficient to cover
any tax or other governmental charge that may be imposed in connection with any
transfer or exchange of Certificates.

                  The Depositor, the Servicer, the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Servicer, the Trustee nor any such agent shall be affected by
notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
10% of the aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                       18
<PAGE>

                  IN WITNESS WHEREOF, the Trustee has caused this Certificate to
be duly executed.

Dated: December__, 2004

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               not in its individual capacity,
                                               but solely as Trustee for the
                                               MASTR Asset Backed Securities
                                               Trust 2004-WMC3

                                               By:______________________________
                                                       Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               as Trustee

                                               By:______________________________
                                                     Authorized Signatory

                                       19
<PAGE>

                                  ABBREVIATIONS
                                  -------------

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM - as tenants in common                  UNIF GIFT MIN ACT - Custodian
                                                                    ---------
TEN ENT - as tenants by the entireties                  (Cust) (Minor) under
                                                Uniform Gifts
JT TEN - as joint tenants with right                    to Minors Act
         if survivorship and not as                     _______________
         tenants in common                                  (State)

         Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s)____________________________________________________________ unto
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.

         I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
________________________________________________________________________________

Dated: _________________

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           _____________________________________
                                           Signature Guaranteed

                                       20
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________________________________________________________
_____________________________________________________________ for the account of
_______________________________, account number _______________________________,
or, if mailed by check, to______________________________________________________
______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
__________________________________________________________________________. This
information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.

                                       21
<PAGE>

                                   EXHIBIT A-4
                                   -----------

                          FORM OF CLASS A-4 CERTIFICATE

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
         TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
         PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
         CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
         OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
         ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
         TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE
         & CO., HAS AN INTEREST HEREIN.

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 AS AMENDED (THE "CODE").

Series: 2004-WMC3                              Aggregate Certificate Principal
                                               Balance of the Class A-4
                                               Certificates as of the Issue
Pass-Through Rate: Variable                    Date: $119,575,00.00

Cut-off Date and date of Pooling               Denomination: $119,575,00.00
and Servicing Agreement: December 1, 2004
                                               Servicer: HomEq Servicing
                                               Corporation
First Distribution Date: January 25, 2005
                                               Trustee: U.S. Bank National
                                               Association
No. 1
                                               Issue Date: December 21, 2004

                                               CUSIP: 57643L FL 5

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
         CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
         OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE
         LESS THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS
         CERTIFICATE.

                                       22
<PAGE>

                        MORTGAGE PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate and adjustable-rate, first and second lien mortgage
loans (the "Mortgage Loans") formed and sold by

                MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., THE SERVICER, THE
         TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
         NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class A-4 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class A-4 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Mortgage
Asset Securitization Transactions, Inc. (hereinafter called the "Depositor,"
which term includes any successor entity under the Agreement), the Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class A-4 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and is
the registered owner of Class A-4 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or (ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class A
Certificates, or otherwise by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register. Notwithstanding the above, the final distribution on this
Certificate will be made after due notice by the Trustee of the pendency of such
distribution and

                                       23
<PAGE>

only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose as provided in the Agreement.

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
equal a rate per annum equal to the lesser of (i) the related Formula Rate for
such Distribution Date and (ii) the related Net WAC Rate for such Distribution
Date.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Distribution Account may be made from time to
time for purposes other than distributions to Certificateholders, such purposes
including reimbursement of advances made, or certain expenses incurred, with
respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No

                                       24
<PAGE>

service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.

                  The Depositor, the Servicer, the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Servicer, the Trustee nor any such agent shall be affected by
notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
10% of the aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                       25
<PAGE>

                  IN WITNESS WHEREOF, the Trustee has caused this Certificate to
be duly executed.

Dated: December__, 2004

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               not in its individual capacity,
                                               but solely as Trustee for the
                                               MASTR Asset Backed Securities
                                               Trust 2004-WMC3

                                               By:______________________________
                                                       Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               as Trustee

                                               By:______________________________
                                                     Authorized Signatory

                                       26
<PAGE>

                                  ABBREVIATIONS
                                  -------------

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
TEN COM - as tenants in common                  UNIF GIFT MIN ACT - Custodian
                                                                    ---------
TEN ENT - as tenants by the entireties                  (Cust) (Minor) under
                                                Uniform Gifts
JT TEN - as joint tenants with right                    to Minors Act
         if survivorship and not as                     _______________
         tenants in common                                  (State)
         Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s)____________________________________________________________ unto
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.

         I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
________________________________________________________________________________
Dated: _________________
                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           _____________________________________
                                           Signature Guaranteed

                                       27
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________________________________________________________
_____________________________________________________________ for the account of
_______________________________, account number _______________________________,
or, if mailed by check, to______________________________________________________
______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
__________________________________________________________________________. This
information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.

                                       28
<PAGE>

                                   EXHIBIT A-5
                                   -----------

                          FORM OF CLASS A-5 CERTIFICATE

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
         TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
         PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
         CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
         OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
         ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
         TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE
         & CO., HAS AN INTEREST HEREIN.

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 AS AMENDED (THE "CODE").

Series: 2004-WMC3                              Aggregate Certificate Principal
                                               Balance of the Class A-5
                                               Certificates as of the Issue
Pass-Through Rate: Variable                    Date: $22,601,000.00

Cut-off Date and date of Pooling and           Denomination: $22,601,000.00
Servicing  Agreement: December 1, 2004
                                               Servicer: HomEq Servicing
                                               Corporation
First Distribution Date: January 25, 2005
                                               Trustee: U.S. Bank National
                                               Association
No. 1
                                               Issue Date: December 21, 2004

                                               CUSIP: 57643L FM 3

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
         CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
         OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE
         LESS THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS
         CERTIFICATE.

                                       29
<PAGE>

                        MORTGAGE PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate and adjustable-rate, first and second lien mortgage
loans (the "Mortgage Loans") formed and sold by

                MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., THE SERVICER, THE
         TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
         NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class A-5 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class A-5 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Mortgage
Asset Securitization Transactions, Inc. (hereinafter called the "Depositor,"
which term includes any successor entity under the Agreement), the Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class A-5 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and is
the registered owner of Class A-5 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or (ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class A
Certificates, or otherwise by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register. Notwithstanding the above, the final distribution on this
Certificate will be made after due notice by the Trustee of the pendency of such
distribution and

                                       30
<PAGE>

only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose as provided in the Agreement.

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
equal a rate per annum equal to the lesser of (i) the related Formula Rate for
such Distribution Date and (ii) the related Net WAC Rate for such Distribution
Date.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Distribution Account may be made from time to
time for purposes other than distributions to Certificateholders, such purposes
including reimbursement of advances made, or certain expenses incurred, with
respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No

                                       31
<PAGE>

service charge will be made for any such registration of transfer or exchange of
Certificates, but the Trustee may require payment of a sum sufficient to cover
any tax or other governmental charge that may be imposed in connection with any
transfer or exchange of Certificates.

                  The Depositor, the Servicer, the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Servicer, the Trustee nor any such agent shall be affected by
notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
10% of the aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                       32
<PAGE>

                  IN WITNESS WHEREOF, the Trustee has caused this Certificate to
be duly executed.

Dated: December__, 2004

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               not in its individual capacity,
                                               but solely as Trustee for the
                                               MASTR Asset Backed Securities
                                               Trust 2004-WMC3

                                               By:______________________________
                                                       Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               as Trustee

                                               By:______________________________
                                                     Authorized Signatory

                                       33
<PAGE>

                                  ABBREVIATIONS
                                  -------------

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM - as tenants in common                  UNIF GIFT MIN ACT - Custodian
                                                                    ---------
TEN ENT - as tenants by the entireties                  (Cust) (Minor) under
                                                Uniform Gifts
JT TEN - as joint tenants with right                    to Minors Act
         if survivorship and not as                     _______________
         tenants in common                                  (State)

         Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s)____________________________________________________________ unto
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.

         I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
________________________________________________________________________________

Dated: _________________

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           _____________________________________
                                           Signature Guaranteed

                                       34
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________________________________________________________
_____________________________________________________________ for the account of
_______________________________, account number _______________________________,
or, if mailed by check, to______________________________________________________
______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
__________________________________________________________________________. This
information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.

                                       35
<PAGE>

                                   EXHIBIT A-6
                                   -----------

                          FORM OF CLASS M-1 CERTIFICATE

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
         TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
         PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
         CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
         OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
         ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
         TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE
         & CO., HAS AN INTEREST HEREIN.

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 AS AMENDED (THE "CODE").

         THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES TO THE
         EXTENT DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED TO
         HEREIN.

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
         SECURITY ACT OF 1974, AS AMENDED, OR THE CODE WILL BE REGISTERED EXCEPT
         IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

Series:  2004-WMC3                             Aggregate Certificate Principal
                                               Balance of the Class M-1
                                               Certificates as of the Issue
Pass-Through Rate: Variable                    Date: $23,839,000.00

Cut-off Date and date of Pooling and           Denomination: $23,839,000.00
Servicing  Agreement: December 1, 2004
                                               Servicer: HomEq Servicing
                                               Corporation
First Distribution Date: January 25, 2005
                                               Trustee: U.S. Bank National
                                               Association
No. 1
                                               Issue Date: December 21, 2004

                                               CUSIP: 57643L FN 1

                                       36
<PAGE>

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
         CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
         OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE
         LESS THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS
         CERTIFICATE.

                                       37
<PAGE>

                        MORTGAGE PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate and adjustable-rate, first and second lien mortgage
loans (the "Mortgage Loans") formed and sold by

                MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., THE SERVICER, THE
         TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
         NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class M-1 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class M-1 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Mortgage
Asset Securitization Transactions, Inc. (hereinafter called the "Depositor,"
which term includes any successor entity under the Agreement), the Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class M-1 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and is
the registered owner of Class M-1 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or (ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
M-1 Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and

                                       38
<PAGE>

only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose as provided in the Agreement.

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
equal a rate per annum equal to the lesser of (i) the related Formula Rate for
such Distribution Date and (ii) the related Net WAC Rate for such Distribution
Date.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Distribution Account may be made from time to
time for purposes other than distributions to Certificateholders, such purposes
including reimbursement of advances made, or certain expenses incurred, with
respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

                                       39
<PAGE>

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.

                  The Depositor, the Servicer, the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Servicer, the Trustee nor any such agent shall be affected by
notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
10% of the aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                       40
<PAGE>

                  IN WITNESS WHEREOF, the Trustee has caused this Certificate to
be duly executed.

Dated: December__, 2004

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               not in its individual capacity,
                                               but solely as Trustee for the
                                               MASTR Asset Backed Securities
                                               Trust 2004-WMC3

                                               By:______________________________
                                                       Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               as Trustee

                                               By:______________________________
                                                     Authorized Signatory

                                       41
<PAGE>

                                  ABBREVIATIONS
                                  -------------

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM - as tenants in common                  UNIF GIFT MIN ACT - Custodian
                                                                    ---------
TEN ENT - as tenants by the entireties                  (Cust) (Minor) under
                                                Uniform Gifts
JT TEN - as joint tenants with right                    to Minors Act
         if survivorship and not as                     _______________
         tenants in common                                  (State)

         Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s)____________________________________________________________ unto
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.

         I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
________________________________________________________________________________

Dated: _________________

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           _____________________________________
                                           Signature Guaranteed

                                       42
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________________________________________________________
_____________________________________________________________ for the account of
_______________________________, account number _______________________________,
or, if mailed by check, to______________________________________________________
______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
__________________________________________________________________________. This
information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.

                                       43
<PAGE>

                                   EXHIBIT A-7
                                   -----------

                          FORM OF CLASS M-2 CERTIFICATE

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
         TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
         PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
         CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
         OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
         ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
         TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE
         & CO., HAS AN INTEREST HEREIN.

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 AS AMENDED (THE "CODE").

         THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES AND THE
         CLASS M-1 CERTIFICATES TO THE EXTENT DESCRIBED IN THE POOLING AND
         SERVICING AGREEMENT REFERRED TO HEREIN.

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
         SECURITY ACT OF 1974, AS AMENDED, OR THE CODE WILL BE REGISTERED EXCEPT
         IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

Series:  2004-WMC3                             Aggregate Certificate Principal
                                               Balance of the Class M-2
                                               Certificates as of the Issue
Pass-Through Rate: Variable                    Date: $22,722,000.00

Cut-off Date and date of Pooling and           Denomination: $22,722,000.00
Servicing Agreement: December 1, 2004
                                               Servicer: HomEq Servicing
                                               Corporation
First Distribution Date: January 25, 2005
                                               Trustee: U.S. Bank National
                                               Association
No. 1
                                               Issue Date: December 21, 2004

                                               CUSIP: 57643L FP 6

                                       44
<PAGE>

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
         CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
         OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE
         LESS THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS
         CERTIFICATE.

                                       45
<PAGE>

                        MORTGAGE PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate and adjustable-rate, first and second lien mortgage
loans (the "Mortgage Loans") formed and sold by

                MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., THE SERVICER, THE
         TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
         NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class M-2 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class M-2 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Mortgage
Asset Securitization Transactions, Inc. (hereinafter called the "Depositor,"
which term includes any successor entity under the Agreement), the Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class M-2 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and is
the registered owner of Class M-2 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or (ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
M-2 Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and

                                       46
<PAGE>

                  only     upon presentation and surrender of this Certificate
                           at the office or agency appointed by the Trustee for
                           that purpose as provided in the Agreement.

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
equal a rate per annum equal to the lesser of (i) the related Formula Rate for
such Distribution Date and (ii) the related Net WAC Rate for such Distribution
Date.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Distribution Account may be made from time to
time for purposes other than distributions to Certificateholders, such purposes
including reimbursement of advances made, or certain expenses incurred, with
respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

                                       47
<PAGE>

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.

                  The Depositor, the Servicer, the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Servicer, the Trustee nor any such agent shall be affected by
notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
10% of the aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                       48
<PAGE>

                  IN WITNESS WHEREOF, the Trustee has caused this Certificate to
be duly executed.

Dated: December__, 2004

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               not in its individual capacity,
                                               but solely as Trustee for the
                                               MASTR Asset Backed Securities
                                               Trust 2004-WMC3

                                               By:______________________________
                                                       Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               as Trustee

                                               By:______________________________
                                                     Authorized Signatory

                                       49
<PAGE>

                                  ABBREVIATIONS
                                  -------------

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM - as tenants in common                  UNIF GIFT MIN ACT - Custodian
                                                                    ---------
TEN ENT - as tenants by the entireties                  (Cust) (Minor) under
                                                Uniform Gifts
JT TEN - as joint tenants with right                    to Minors Act
         if survivorship and not as                     _______________
         tenants in common                                  (State)

         Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s)____________________________________________________________ unto
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.

         I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
________________________________________________________________________________

Dated: _________________

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           _____________________________________
                                           Signature Guaranteed

                                       50
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________________________________________________________
_____________________________________________________________ for the account of
_______________________________, account number _______________________________,
or, if mailed by check, to______________________________________________________
______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
__________________________________________________________________________. This
information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.

                                       51
<PAGE>

                                   EXHIBIT A-8

                          FORM OF CLASS M-3 CERTIFICATE

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
         TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
         PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
         CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
         OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
         ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
         TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE
         & CO., HAS AN INTEREST HEREIN.

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 AS AMENDED (THE "CODE").

         THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, THE CLASS
         M-1 CERTIFICATES AND THE CLASS M-2 CERTIFICATES TO THE EXTENT DESCRIBED
         IN THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
         SECURITY ACT OF 1974, AS AMENDED, OR THE CODE WILL BE REGISTERED EXCEPT
         IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

Series:  2004-WMC3                             Aggregate Certificate Principal
                                               Balance of the Class M-3
                                               Certificates as of the Issue
Pass-Through Rate: Variable                    Date: $13,782,000.00

Cut-off Date and date of Pooling and           Denomination: $13,782,000.00
Servicing Agreement: December 1, 2004
                                               Servicer: HomEq Servicing
                                               Corporation
First Distribution Date: January 25, 2005
                                               Trustee: U.S. Bank National
                                               Association
No. 1
                                               Issue Date: December 21, 2004

                                               CUSIP: 57643L FQ 4

                                       52
<PAGE>

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
         CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
         OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE
         LESS THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS
         CERTIFICATE.

                                       53
<PAGE>

                        MORTGAGE PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate and adjustable-rate, first and second lien mortgage
loans (the "Mortgage Loans") formed and sold by

                MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., THE SERVICER, THE
         TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
         NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class M-3 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class M-3 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Mortgage
Asset Securitization Transactions, Inc. (hereinafter called the "Depositor,"
which term includes any successor entity under the Agreement), the Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class M-3 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and is
the registered owner of Class M-3 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or (ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
M-3 Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and

                                       54
<PAGE>

only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose as provided in the Agreement.

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
equal a rate per annum equal to the lesser of (i) the related Formula Rate for
such Distribution Date and (ii) the related Net WAC Rate for such Distribution
Date.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Distribution Account may be made from time to
time for purposes other than distributions to Certificateholders, such purposes
including reimbursement of advances made, or certain expenses incurred, with
respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

                                       55
<PAGE>

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.

                  The Depositor, the Servicer, the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Servicer, the Trustee nor any such agent shall be affected by
notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
10% of the aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                       56
<PAGE>

                  IN WITNESS WHEREOF, the Trustee has caused this Certificate to
be duly executed.

Dated: December__, 2004

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               not in its individual capacity,
                                               but solely as Trustee for the
                                               MASTR Asset Backed Securities
                                               Trust 2004-WMC3

                                               By:______________________________
                                                       Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               as Trustee

                                               By:______________________________
                                                     Authorized Signatory

                                       57
<PAGE>

                                  ABBREVIATIONS
                                  -------------

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM - as tenants in common                  UNIF GIFT MIN ACT - Custodian
                                                                    ---------
TEN ENT - as tenants by the entireties                  (Cust) (Minor) under
                                                Uniform Gifts
JT TEN - as joint tenants with right                    to Minors Act
         if survivorship and not as                     _______________
         tenants in common                                  (State)

         Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s)____________________________________________________________ unto
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.

         I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
________________________________________________________________________________

Dated: _________________

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           _____________________________________
                                           Signature Guaranteed

                                       58
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________________________________________________________
_____________________________________________________________ for the account of
_______________________________, account number _______________________________,
or, if mailed by check, to______________________________________________________
______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
__________________________________________________________________________. This
information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.

                                       59
<PAGE>

                                   EXHIBIT A-9
                                   -----------

                          FORM OF CLASS M-4 CERTIFICATE

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
         TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
         PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
         CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
         OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
         ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
         TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE
         & CO., HAS AN INTEREST HEREIN.

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 AS AMENDED (THE "CODE").

         THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, THE CLASS
         M-1 CERTIFICATES, THE CLASS M-2 CERTIFICATES AND THE CLASS M-3
         CERTIFICATES TO THE EXTENT DESCRIBED IN THE POOLING AND SERVICING
         AGREEMENT REFERRED TO HEREIN.

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
         SECURITY ACT OF 1974, AS AMENDED, OR THE CODE WILL BE REGISTERED EXCEPT
         IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

Series:  2004-WMC3                             Aggregate Certificate Principal
                                               Balance of the Class M-4
                                               Certificates as of the Issue
Pass-Through Rate: Variable                    Date: $13,037,000.00

Cut-off Date and date of Pooling and           Denomination: $13,037,000.00
Servicing Agreement: December 1, 2004
                                               Servicer: HomEq Servicing
                                               Corporation
First Distribution Date: January 25, 2005
                                               Trustee: U.S. Bank National
                                               Association
No. 1
                                               Issue Date: December 21, 2004

                                               CUSIP: 57643L FR 2

                                       60
<PAGE>

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
         CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
         OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE
         LESS THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS
         CERTIFICATE.

                                       61
<PAGE>

                        MORTGAGE PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate and adjustable-rate, first and second lien mortgage
loans (the "Mortgage Loans") formed and sold by

                MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., THE SERVICER, THE
         TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
         NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class M-4 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class M-4 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Mortgage
Asset Securitization Transactions, Inc. (hereinafter called the "Depositor,"
which term includes any successor entity under the Agreement), the Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class M-4 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and is
the registered owner of Class M-4 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or (ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
M-4 Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and

                                       62
<PAGE>

only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose as provided in the Agreement.

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
equal a rate per annum equal to the lesser of (i) the related Formula Rate for
such Distribution Date and (ii) the related Net WAC Rate for such Distribution
Date.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Distribution Account may be made from time to
time for purposes other than distributions to Certificateholders, such purposes
including reimbursement of advances made, or certain expenses incurred, with
respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

                                       63
<PAGE>

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.

                  The Depositor, the Servicer, the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Servicer, the Trustee nor any such agent shall be affected by
notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
10% of the aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                       64
<PAGE>

                  IN WITNESS WHEREOF, the Trustee has caused this Certificate to
be duly executed.

Dated: December__, 2004

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               not in its individual capacity,
                                               but solely as Trustee for the
                                               MASTR Asset Backed Securities
                                               Trust 2004-WMC3

                                               By:______________________________
                                                       Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               as Trustee

                                               By:______________________________
                                                     Authorized Signatory

                                       65
<PAGE>

                                  ABBREVIATIONS
                                  -------------

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM - as tenants in common                  UNIF GIFT MIN ACT - Custodian
                                                                    ---------
TEN ENT - as tenants by the entireties                  (Cust) (Minor) under
                                                Uniform Gifts
JT TEN - as joint tenants with right                    to Minors Act
         if survivorship and not as                     _______________
         tenants in common                                  (State)

         Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s)____________________________________________________________ unto
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.

         I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
________________________________________________________________________________

Dated: _________________

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           _____________________________________
                                           Signature Guaranteed

                                       66
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________________________________________________________
_____________________________________________________________ for the account of
_______________________________, account number _______________________________,
or, if mailed by check, to______________________________________________________
______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
__________________________________________________________________________. This
information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.

                                       67
<PAGE>

                                  EXHIBIT A-10
                                  ------------

                          FORM OF CLASS M-5 CERTIFICATE

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
         TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
         PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
         CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
         OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
         ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
         TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE
         & CO., HAS AN INTEREST HEREIN.

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 AS AMENDED (THE "CODE").

         THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A ERTIFICATES, THE CLASS
         M-1 CERTIFICATES, THE CLASS M-2 CERTIFICATES, THE CLASS M-3
         CERTIFICATES AND THE CLASS M-4 CERTIFICATES TO THE EXTENT DESCRIBED IN
         THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
         SECURITY ACT OF 1974, AS AMENDED, OR THE CODE WILL BE REGISTERED EXCEPT
         IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

Series:  2004-WMC3                             Aggregate Certificate Principal
                                               Balance of the Class M-5
                                               Certificates as of the Issue
Pass-Through Rate: Variable                    Date: $11,920,000.00

Cut-off Date and date of Pooling and           Denomination: $11,920,000.00
Servicing Agreement: December 1, 2004
                                               Servicer: HomEq Servicing
                                               Corporation
First Distribution Date: January 25, 2005
                                               Trustee: U.S. Bank National
                                               Association
No. 1
                                               Issue Date: December 21, 2004

                                               CUSIP: 57643L FS 0

                                       68
<PAGE>

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
         CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
         OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE
         LESS THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS
         CERTIFICATE.

                                       69
<PAGE>

                        MORTGAGE PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate and adjustable-rate, first and second lien mortgage
loans (the "Mortgage Loans") formed and sold by

                MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., THE SERVICER, THE
         TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
         NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class M-5 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class M-5 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Mortgage
Asset Securitization Transactions, Inc. (hereinafter called the "Depositor,"
which term includes any successor entity under the Agreement), the Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class M-5 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and is
the registered owner of Class M-5 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or (ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
M-5 Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and

                                       70
<PAGE>

only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose as provided in the Agreement.

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
equal a rate per annum equal to the lesser of (i) the related Formula Rate for
such Distribution Date and (ii) the related Net WAC Rate for such Distribution
Date.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Distribution Account may be made from time to
time for purposes other than distributions to Certificateholders, such purposes
including reimbursement of advances made, or certain expenses incurred, with
respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

                                       71
<PAGE>

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.

                  The Depositor, the Servicer, the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Servicer, the Trustee nor any such agent shall be affected by
notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
10% of the aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                       72
<PAGE>

                  IN WITNESS WHEREOF, the Trustee has caused this Certificate to
be duly executed.

Dated: December__, 2004

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               not in its individual capacity,
                                               but solely as Trustee for the
                                               MASTR Asset Backed Securities
                                               Trust 2004-WMC3

                                               By:______________________________
                                                       Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               as Trustee

                                               By:______________________________
                                                     Authorized Signatory

                                       73
<PAGE>

                                  ABBREVIATIONS
                                  -------------

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM - as tenants in common                  UNIF GIFT MIN ACT - Custodian
                                                                    ---------
TEN ENT - as tenants by the entireties                  (Cust) (Minor) under
                                                Uniform Gifts
JT TEN - as joint tenants with right                    to Minors Act
         if survivorship and not as                     _______________
         tenants in common                                  (State)

         Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s)____________________________________________________________ unto
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.

         I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
________________________________________________________________________________

Dated: _________________

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           _____________________________________
                                           Signature Guaranteed

                                       74
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________________________________________________________
_____________________________________________________________ for the account of
_______________________________, account number _______________________________,
or, if mailed by check, to______________________________________________________
______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
__________________________________________________________________________. This
information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.

                                       75
<PAGE>

                                  EXHIBIT A-11
                                  ------------

                          FORM OF CLASS M-6 CERTIFICATE

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
         TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
         PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
         CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
         OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
         ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
         TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE
         & CO., HAS AN INTEREST HEREIN.

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 AS AMENDED (THE "CODE").

         THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, THE CLASS
         M-1 CERTIFICATES, THE CLASS M-2 CERTIFICATES, THE CLASS M-3
         CERTIFICATES, THE CLASS M-4 CERTIFICATES AND THE CLASS M-5 CERTIFICATES
         TO THE EXTENT DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED
         TO HEREIN.

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
         SECURITY ACT OF 1974, AS AMENDED, OR THE CODE WILL BE REGISTERED EXCEPT
         IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

Series:  2004-WMC3                             Aggregate Certificate Principal
                                               Balance of the Class M-6
                                               Certificates as of the Issue
Pass-Through Rate: Variable                    Date: $10,430,000.00

Cut-off Date and date of Pooling and           Denomination: $10,430,000.00
Servicing Agreement: December 1, 2004
                                               Servicer: HomEq Servicing
                                               Corporation
First Distribution Date: January 25, 2005
                                               Trustee: U.S. Bank National
                                               Association
No. 1
                                               Issue Date: December 21, 2004

                                               CUSIP: 57643L FT 8

                                       76
<PAGE>

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
         CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
         OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE
         LESS THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS
         CERTIFICATE.

                                       77
<PAGE>

                        MORTGAGE PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate and adjustable-rate, first and second lien mortgage
loans (the "Mortgage Loans") formed and sold by

                MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., THE SERVICER, THE
         TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
         NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class M-6 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class M-6 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Mortgage
Asset Securitization Transactions, Inc. (hereinafter called the "Depositor,"
which term includes any successor entity under the Agreement), the Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class M-6 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and is
the registered owner of Class M-6 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or (ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
M-6 Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and

                                       78
<PAGE>

only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose as provided in the Agreement.

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
equal a rate per annum equal to the lesser of (i) the related Formula Rate for
such Distribution Date and (ii) the related Net WAC Rate for such Distribution
Date.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Distribution Account may be made from time to
time for purposes other than distributions to Certificateholders, such purposes
including reimbursement of advances made, or certain expenses incurred, with
respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

                                       79
<PAGE>

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.

                  The Depositor, the Servicer, the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Servicer, the Trustee nor any such agent shall be affected by
notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
10% of the aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                       80
<PAGE>

                  IN WITNESS WHEREOF, the Trustee has caused this Certificate to
be duly executed.

Dated: December__, 2004

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               not in its individual capacity,
                                               but solely as Trustee for the
                                               MASTR Asset Backed Securities
                                               Trust 2004-WMC3

                                               By:______________________________
                                                       Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               as Trustee

                                               By:______________________________
                                                     Authorized Signatory

                                       81
<PAGE>

                                  ABBREVIATIONS
                                  -------------

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM - as tenants in common                  UNIF GIFT MIN ACT - Custodian
                                                                    ---------
TEN ENT - as tenants by the entireties                  (Cust) (Minor) under
                                                Uniform Gifts
JT TEN - as joint tenants with right                    to Minors Act
         if survivorship and not as                     _______________
         tenants in common                                  (State)

         Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s)____________________________________________________________ unto
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.

         I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
________________________________________________________________________________

Dated: _________________

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           _____________________________________
                                           Signature Guaranteed

                                       82
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________________________________________________________
_____________________________________________________________ for the account of
_______________________________, account number _______________________________,
or, if mailed by check, to______________________________________________________
______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
__________________________________________________________________________. This
information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.

                                       83
<PAGE>

                                  EXHIBIT A-12
                                  ------------

                          FORM OF CLASS M-7 CERTIFICATE

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
         TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
         PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
         CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
         OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
         ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
         TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE
         & CO., HAS AN INTEREST HEREIN.

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 AS AMENDED (THE "CODE").

         THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, THE CLASS
         M-1 CERTIFICATES, THE CLASS M-2 CERTIFICATES, THE CLASS M-3
         CERTIFICATES, THE CLASS M-4 CERTIFICATES, THE CLASS M-5 CERTIFICATES
         AND THE CLASS M-6 CERTIFICATES TO THE EXTENT DESCRIBED IN THE POOLING
         AND SERVICING AGREEMENT REFERRED TO HEREIN.

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
         SECURITY ACT OF 1974, AS AMENDED, OR THE CODE WILL BE REGISTERED EXCEPT
         IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

Series:  2004-WMC3                             Aggregate Certificate Principal
                                               Balance of the Class M-7
                                               Certificates as of the Issue
Pass-Through Rate: Variable                    Date: $7,450,000.00

Cut-off Date and date of Pooling and           Denomination: $7,450,000.00
Servicing Agreement: December 1, 2004
                                               Servicer: HomEq Servicing
                                               Corporation
First Distribution Date: January 25, 2005
                                               Trustee: U.S. Bank National
                                               Association
No. 1
                                               Issue Date: December 21, 2004

                                               CUSIP: 57643L FU 5

                                       84
<PAGE>

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
         CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
         OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE
         LESS THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS
         CERTIFICATE.

                                       85
<PAGE>

                        MORTGAGE PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate and adjustable-rate, first and second lien mortgage
loans (the "Mortgage Loans") formed and sold by

                MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., THE SERVICER, THE
         TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
         NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class M-7 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class M-7 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Mortgage
Asset Securitization Transactions, Inc. (hereinafter called the "Depositor,"
which term includes any successor entity under the Agreement), the Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class M-7 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and is
the registered owner of Class M-7 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or (ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
M-7 Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and

                                       86
<PAGE>

only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose as provided in the Agreement.

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
equal a rate per annum equal to the lesser of (i) the related Formula Rate for
such Distribution Date and (ii) the related Net WAC Rate for such Distribution
Date.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Distribution Account may be made from time to
time for purposes other than distributions to Certificateholders, such purposes
including reimbursement of advances made, or certain expenses incurred, with
respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

                                       87
<PAGE>

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.

                  The Depositor, the Servicer, the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Servicer, the Trustee nor any such agent shall be affected by
notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
10% of the aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                       88
<PAGE>

                  IN WITNESS WHEREOF, the Trustee has caused this Certificate to
be duly executed.

Dated: December__, 2004

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               not in its individual capacity,
                                               but solely as Trustee for the
                                               MASTR Asset Backed Securities
                                               Trust 2004-WMC3

                                               By:______________________________
                                                       Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               as Trustee

                                               By:______________________________
                                                     Authorized Signatory

                                       89
<PAGE>

                                  ABBREVIATIONS
                                  -------------

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM - as tenants in common                  UNIF GIFT MIN ACT - Custodian
                                                                    ---------
TEN ENT - as tenants by the entireties                  (Cust) (Minor) under
                                                Uniform Gifts
JT TEN - as joint tenants with right                    to Minors Act
         if survivorship and not as                     _______________
         tenants in common                                  (State)

         Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s)____________________________________________________________ unto
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.

         I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
________________________________________________________________________________

Dated: _________________

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           _____________________________________
                                           Signature Guaranteed

                                       90
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________________________________________________________
_____________________________________________________________ for the account of
_______________________________, account number _______________________________,
or, if mailed by check, to______________________________________________________
______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
__________________________________________________________________________. This
information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.

                                       91
<PAGE>

                                  EXHIBIT A-13
                                  ------------

                          FORM OF CLASS M-8 CERTIFICATE

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
         TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
         PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
         CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
         OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
         ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
         TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE
         & CO., HAS AN INTEREST HEREIN.

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 AS AMENDED (THE "CODE").

         THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, THE CLASS
         M-1 CERTIFICATES, THE CLASS M-2 CERTIFICATES, THE CLASS M-3
         CERTIFICATES, THE CLASS M-4 CERTIFICATES, THE CLASS M-5 CERTIFICATES,
         THE CLASS M-6 CERTIFICATES AND THE CLASS M-7 CERTIFICATES TO THE EXTENT
         DESCRIBED IN THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
         SECURITY ACT OF 1974, AS AMENDED, OR THE CODE WILL BE REGISTERED EXCEPT
         IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

Series:  2004-WMC3                             Aggregate Certificate Principal
                                               Balance of the Class M-8
                                               Certificates as of the Issue
Pass-Through Rate: Variable                    Date: $7,450,000.00

Cut-off Date and date of Pooling and           Denomination: $7,450,000.00
Servicing Agreement: December 1, 2004
                                               Servicer: HomEq Servicing
                                               Corporation
First Distribution Date: January 25, 2005
                                               Trustee: U.S. Bank National
                                               Association
No. 1
                                               Issue Date: December 21, 2004

                                               CUSIP: 57643L FV 3

                                       92
<PAGE>

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
         CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
         OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE
         LESS THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS
         CERTIFICATE.

                                       93
<PAGE>

                        MORTGAGE PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate and adjustable-rate, first and second lien mortgage
loans (the "Mortgage Loans") formed and sold by

                MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., THE SERVICER, THE
         TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
         NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class M-8 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class M-8 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Mortgage
Asset Securitization Transactions, Inc. (hereinafter called the "Depositor,"
which term includes any successor entity under the Agreement), the Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class M-8 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and is
the registered owner of Class M-8 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or (ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
M-8 Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and

                                       94
<PAGE>

only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose as provided in the Agreement.

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
equal a rate per annum equal to the lesser of (i) the related Formula Rate for
such Distribution Date and (ii) the related Net WAC Rate for such Distribution
Date.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Distribution Account may be made from time to
time for purposes other than distributions to Certificateholders, such purposes
including reimbursement of advances made, or certain expenses incurred, with
respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

                                       95
<PAGE>

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.

                  The Depositor, the Servicer, the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Servicer, the Trustee nor any such agent shall be affected by
notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
10% of the aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                       96
<PAGE>

                  IN WITNESS WHEREOF, the Trustee has caused this Certificate to
be duly executed.

Dated: December__, 2004

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               not in its individual capacity,
                                               but solely as Trustee for the
                                               MASTR Asset Backed Securities
                                               Trust 2004-WMC3

                                               By:______________________________
                                                       Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               as Trustee

                                               By:______________________________
                                                     Authorized Signatory

                                       97
<PAGE>

                                  ABBREVIATIONS
                                  -------------

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM - as tenants in common                  UNIF GIFT MIN ACT - Custodian
                                                                    ---------
TEN ENT - as tenants by the entireties                  (Cust) (Minor) under
                                                Uniform Gifts
JT TEN - as joint tenants with right                    to Minors Act
         if survivorship and not as                     _______________
         tenants in common                                  (State)

         Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s)____________________________________________________________ unto
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.

         I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
________________________________________________________________________________

Dated: _________________

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           _____________________________________
                                           Signature Guaranteed

                                       98
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________________________________________________________
_____________________________________________________________ for the account of
_______________________________, account number _______________________________,
or, if mailed by check, to______________________________________________________
______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
__________________________________________________________________________. This
information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.

                                       99
<PAGE>

                                  EXHIBIT A-14
                                  ------------

                          FORM OF CLASS M-9 CERTIFICATE

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
         TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
         PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
         CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
         OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
         ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
         TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE
         & CO., HAS AN INTEREST HEREIN.

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 AS AMENDED (THE "CODE").

         THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, THE CLASS
         M-1 CERTIFICATES, THE CLASS M-2 CERTIFICATES, THE CLASS M-3
         CERTIFICATES, THE CLASS M-4 CERTIFICATES, THE CLASS M-5 CERTIFICATES,
         THE CLASS M-6 CERTIFICATES, THE CLASS M-7 CERTIFICATES AND THE CLASS
         M-8 CERTIFICATES TO THE EXTENT DESCRIBED IN THE POOLING AND SERVICING
         AGREEMENT REFERRED TO HEREIN.

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
         SECURITY ACT OF 1974, AS AMENDED, OR THE CODE WILL BE REGISTERED EXCEPT
         IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

Series:  2004-WMC3                             Aggregate Certificate Principal
                                               Balance of the Class M-9
                                               Certificates as of the Issue
Pass-Through Rate: Variable                    Date: $7,450,000.00

Cut-off Date and date of Pooling and           Denomination: $7,450,000.00
Servicing Agreement: December 1, 2004
                                               Servicer: HomEq Servicing
                                               Corporation
First Distribution Date: January 25, 2005
                                               Trustee: U.S. Bank National
                                               Association
No. 1
                                               Issue Date: December 21, 2004

                                               CUSIP: 57643L FW 1

                                      100
<PAGE>

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
         CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
         OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE
         LESS THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS
         CERTIFICATE.

                                      101
<PAGE>

                        MORTGAGE PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate and adjustable-rate, first and second lien mortgage
loans (the "Mortgage Loans") formed and sold by

                MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., THE SERVICER, THE
         TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
         NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class M-9 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class M-9 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Mortgage
Asset Securitization Transactions, Inc. (hereinafter called the "Depositor,"
which term includes any successor entity under the Agreement), the Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class M-9 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and is
the registered owner of Class M-9 Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or (ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
M-9 Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and

                                      102
<PAGE>

only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose as provided in the Agreement.

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
equal a rate per annum equal to the lesser of (i) the related Formula Rate for
such Distribution Date and (ii) the related Net WAC Rate for such Distribution
Date.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Distribution Account may be made from time to
time for purposes other than distributions to Certificateholders, such purposes
including reimbursement of advances made, or certain expenses incurred, with
respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

                                      103
<PAGE>

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.

                  The Depositor, the Servicer, the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Servicer, the Trustee nor any such agent shall be affected by
notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
10% of the aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      104
<PAGE>

                  IN WITNESS WHEREOF, the Trustee has caused this Certificate to
be duly executed.

Dated: December__, 2004

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               not in its individual capacity,
                                               but solely as Trustee for the
                                               MASTR Asset Backed Securities
                                               Trust 2004-WMC3

                                               By:______________________________
                                                       Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               as Trustee

                                               By:______________________________
                                                     Authorized Signatory

                                      105
<PAGE>

                                  ABBREVIATIONS
                                  -------------

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM - as tenants in common                  UNIF GIFT MIN ACT - Custodian
                                                                    ---------
TEN ENT - as tenants by the entireties                  (Cust) (Minor) under
                                                Uniform Gifts
JT TEN - as joint tenants with right                    to Minors Act
         if survivorship and not as                     _______________
         tenants in common                                  (State)

         Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s)____________________________________________________________ unto
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.

         I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
________________________________________________________________________________

Dated: _________________

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           _____________________________________
                                           Signature Guaranteed

                                      106
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________________________________________________________
_____________________________________________________________ for the account of
_______________________________, account number _______________________________,
or, if mailed by check, to______________________________________________________
______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
__________________________________________________________________________. This
information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.

                                      107
<PAGE>

                                  EXHIBIT A-15
                                  ------------

                         FORM OF CLASS M-10 CERTIFICATE

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
         TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
         PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
         CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
         OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
         ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
         TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE
         & CO., HAS AN INTEREST HEREIN.

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 AS AMENDED (THE "CODE").

         THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, THE CLASS
         M-1 CERTIFICATES, THE CLASS M-2 CERTIFICATES, THE CLASS M-3
         CERTIFICATES, THE CLASS M-4 CERTIFICATES, THE CLASS M-5 CERTIFICATES,
         THE CLASS M-6 CERTIFICATES, THE CLASS M-7 CERTIFICATES, THE CLASS M-8
         CERTIFICATES AND THE CLASS M-9 CERTIFICATES TO THE EXTENT DESCRIBED IN
         THE POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
         SECURITY ACT OF 1974, AS AMENDED, OR THE CODE WILL BE REGISTERED EXCEPT
         IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

Series:  2004-WMC3                             Aggregate Certificate Principal
                                               Balance of the Class M-10
                                               Certificates as of the Issue
Pass-Through Rate: Variable                    Date: $5,960,000.00

Cut-off Date and date of Pooling and           Denomination: $5,960,000.00
Servicing Agreement: December 1, 2004
                                               Servicer: HomEq Servicing
                                               Corporation
First Distribution Date: January 25, 2005
                                               Trustee: U.S. Bank National
                                               Association
No. 1
                                               Issue Date: December 21, 2004

                                               CUSIP: 57643L FX 9

                                      108
<PAGE>

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
         CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
         OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE
         LESS THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS
         CERTIFICATE.

                                      109
<PAGE>

                        MORTGAGE PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate and adjustable-rate, first and second lien mortgage
loans (the "Mortgage Loans") formed and sold by

                MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., THE SERVICER, THE
         TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
         NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class M-10 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class M-10 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Mortgage
Asset Securitization Transactions, Inc. (hereinafter called the "Depositor,"
which term includes any successor entity under the Agreement), the Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is issued
under and is subject to the terms, provisions and conditions of the Agreement,
to which Agreement the Holder of this Certificate by virtue of the acceptance
hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class M-10 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and is
the registered owner of Class M-10 Certificates the aggregate initial
Certificate Principal Balance of which is in excess of the lesser of (i)
$5,000,000 or (ii) two-thirds of the aggregate initial Certificate Principal
Balance of the Class M-10 Certificates, or otherwise by check mailed by first
class mail to the address of the Person entitled thereto, as such name and
address shall appear on the Certificate Register. Notwithstanding the above, the
final distribution on this Certificate will be made after due notice by the
Trustee of the pendency of such distribution and

                                      110
<PAGE>

only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose as provided in the Agreement.

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
equal a rate per annum equal to the lesser of (i) the related Formula Rate for
such Distribution Date and (ii) the related Net WAC Rate for such Distribution
Date.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Distribution Account may be made from time to
time for purposes other than distributions to Certificateholders, such purposes
including reimbursement of advances made, or certain expenses incurred, with
respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

                                      111
<PAGE>

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.

                  The Depositor, the Servicer, the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Servicer, the Trustee nor any such agent shall be affected by
notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
10% of the aggregate Stated Principal Balance of the Mortgage Loans as of the
Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      112
<PAGE>

                  IN WITNESS WHEREOF, the Trustee has caused this Certificate to
be duly executed.

Dated: December__, 2004

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               not in its individual capacity,
                                               but solely as Trustee for the
                                               MASTR Asset Backed Securities
                                               Trust 2004-WMC3

                                               By:______________________________
                                                       Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               as Trustee

                                               By:______________________________
                                                     Authorized Signatory

                                      113
<PAGE>

                                  ABBREVIATIONS
                                  -------------

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM - as tenants in common                  UNIF GIFT MIN ACT - Custodian
                                                                    ---------
TEN ENT - as tenants by the entireties                  (Cust) (Minor) under
                                                Uniform Gifts
JT TEN - as joint tenants with right                    to Minors Act
         if survivorship and not as                     _______________
         tenants in common                                  (State)

         Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s)____________________________________________________________ unto
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.

         I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
________________________________________________________________________________

Dated: _________________

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           _____________________________________
                                           Signature Guaranteed

                                      114
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________________________________________________________
_____________________________________________________________ for the account of
_______________________________, account number _______________________________,
or, if mailed by check, to______________________________________________________
______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
__________________________________________________________________________. This
information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.

                                      115
<PAGE>

                                  EXHIBIT A-16
                                  ------------

                         FORM OF CLASS M-11 CERTIFICATE

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
         TRUSTEE OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
         PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
         CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
         REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
         OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
         ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
         TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE
         & CO., HAS AN INTEREST HEREIN.

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 AS AMENDED (THE "CODE").

         THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES, THE CLASS
         M-1 CERTIFICATES, THE CLASS M-2 CERTIFICATES, THE CLASS M-3
         CERTIFICATES, THE CLASS M-4 CERTIFICATES, THE CLASS M-5 CERTIFICATES,
         THE CLASS M-6 CERTIFICATES, THE CLASS M-7 CERTIFICATES, THE CLASS M-8
         CERTIFICATES, THE CLASS M-9 CERTIFICATES AND THE CLASS M-10
         CERTIFICATES TO THE EXTENT DESCRIBED IN THE POOLING AND SERVICING
         AGREEMENT REFERRED TO HEREIN.

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
         SECURITY ACT OF 1974, AS AMENDED, OR THE CODE WILL BE REGISTERED EXCEPT
         IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

Series:  2004-WMC3                             Aggregate Certificate Principal
                                               Balance of the Class M-10
                                               Certificates as of the Issue
Pass-Through Rate: Variable                    Date: $7,822,000.00

Cut-off Date and date of Pooling and           Denomination: $7,822,000.00
 Servicing Agreement: December 1, 2004
                                               Servicer: HomEq Servicing
                                               Corporation
First Distribution Date: January 25, 2005
                                               Trustee: U.S. Bank National
                                               Association
No. 1
                                               Issue Date: December 21, 2004

                                               CUSIP: 57643L FY 7

                                      116
<PAGE>

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
         CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
         OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE
         LESS THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS
         CERTIFICATE.

         THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
         SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE
         AND MAY NOT BE RESOLD OR TRANSFERRED UNLESS IT IS REGISTERED PURSUANT
         TO SUCH ACT AND LAWS OR IS SOLD OR TRANSFERRED IN TRANSACTIONS THAT ARE
         EXEMPT FROM REGISTRATION UNDER SUCH ACT AND UNDER APPLICABLE STATE LAW
         AND IS TRANSFERRED IN ACCORDANCE

                        MORTGAGE PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate and adjustable-rate, first and second lien mortgage
loans (the "Mortgage Loans") formed and sold by

                MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., THE SERVICER, THE
         TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
         NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that Cede & Co. is the registered owner of a
Percentage Interest (obtained by dividing the denomination of this Certificate
by the aggregate Certificate Principal Balance of the Class M-11 Certificates as
of the Issue Date) in that certain beneficial ownership interest evidenced by
all the Class M-11 Certificates in a REMIC created pursuant to a Pooling and
Servicing Agreement, dated as specified above (the "Agreement"), among Mortgage
Asset Securitization Transactions, Inc. (hereinafter called the "Depositor,"
which term includes any successor entity under the Agreement), the Servicer and
the Trustee, a summary of certain of the pertinent provisions of which is set
forth hereafter. To the extent not defined herein, the capitalized terms used
herein have the meanings assigned in the Agreement. This Certificate is

                                      117
<PAGE>
issued under and is subject to the terms, provisions and conditions of the
Agreement, to which Agreement the Holder of this Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class M-11 Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and is
the registered owner of Class M-11 Certificates the aggregate initial
Certificate Principal Balance of which is in excess of the lesser of (i)
$5,000,000 or (ii) two-thirds of the aggregate initial Certificate Principal
Balance of the Class M-11 Certificates, or otherwise by check mailed by first
class mail to the address of the Person entitled thereto, as such name and
address shall appear on the Certificate Register. Notwithstanding the above, the
final distribution on this Certificate will be made after due notice by the
Trustee of the pendency of such distribution and only upon presentation and
surrender of this Certificate at the office or agency appointed by the Trustee
for that purpose as provided in the Agreement.

                  The Pass-Through Rate applicable to the calculation of
interest payable with respect to this Certificate on any Distribution Date shall
equal a rate per annum equal to the lesser of (i) the related Formula Rate for
such Distribution Date and (ii) the related Net WAC Rate for such Distribution
Date.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Distribution Account may be made from time to
time for purposes other than distributions to Certificateholders, such purposes
including reimbursement of advances made, or certain expenses incurred, with
respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the

                                      118
<PAGE>

Depositor, the Servicer and the Trustee with the consent of the Holders of
Certificates entitled to at least 66% of the Voting Rights. Any such consent by
the Holder of this Certificate shall be conclusive and binding on such Holder
and upon all future Holders of this Certificate and of any Certificate issued
upon the transfer hereof or in exchange herefor or in lieu hereof whether or not
notation of such consent is made upon this Certificate. The Agreement also
permits the amendment thereof, in certain limited circumstances, without the
consent of the Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.

                  The Depositor, the Servicer, the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Servicer, the Trustee nor any such agent shall be affected by
notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement

                                      119
<PAGE>

of the Certificates; however, such right to purchase is subject to the aggregate
Stated Principal Balance of the Mortgage Loans at the time of purchase being
less than 10% of the aggregate Stated Principal Balance of the Mortgage Loans as
of the Cut-off Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      120
<PAGE>

                  IN WITNESS WHEREOF, the Trustee has caused this Certificate to
be duly executed.

Dated: December__, 2004

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               not in its individual capacity,
                                               but solely as Trustee for the
                                               MASTR Asset Backed Securities
                                               Trust 2004-WMC3

                                               By:______________________________
                                                       Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               as Trustee

                                               By:______________________________
                                                     Authorized Signatory

                                      121
<PAGE>

                                  ABBREVIATIONS
                                  -------------

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM - as tenants in common                  UNIF GIFT MIN ACT - Custodian
                                                                    ---------
TEN ENT - as tenants by the entireties                  (Cust) (Minor) under
                                                Uniform Gifts
JT TEN - as joint tenants with right                    to Minors Act
         if survivorship and not as                     _______________
         tenants in common                                  (State)

         Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s)____________________________________________________________ unto
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.

         I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
________________________________________________________________________________

Dated: _________________

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           _____________________________________
                                           Signature Guaranteed

                                      122
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________________________________________________________
_____________________________________________________________ for the account of
_______________________________, account number _______________________________,
or, if mailed by check, to______________________________________________________
______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
__________________________________________________________________________. This
information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.

                                      123
<PAGE>

                                  EXHIBIT A-17
                                  ------------

                          FORM OF CLASS CE CERTIFICATE

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 AS AMENDED (THE "CODE").

         THIS CERTIFICATE IS SUBORDINATE TO THE CLASS A CERTIFICATES AND THE
         CLASS M CERTIFICATES TO THE EXTENT DESCRIBED IN THE POOLING AND
         SERVICING AGREEMENT REFERRED TO HEREIN.

         THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
         SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE
         AND MAY NOT BE RESOLD OR TRANSFERRED UNLESS IT IS REGISTERED PURSUANT
         TO SUCH ACT AND LAWS OR IS SOLD OR TRANSFERRED IN TRANSACTIONS THAT ARE
         EXEMPT FROM REGISTRATION UNDER SUCH ACT AND UNDER APPLICABLE STATE LAW
         AND IS TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02 OF
         THE AGREEMENT.

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
         SECURITY ACT OF 1974, AS AMENDED, OR THE CODE WILL BE REGISTERED EXCEPT
         IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

Series 2004-WMC3                               Aggregate Certificate Principal
                                               Balance of the Class CE
                                               Certificates as of the Issue
Pass-Through Rate: Variable                    Date: $ 9,682,780.44

Cut-off Date and date of Pooling and           Denomination: $9,682,780.44
Servicing Agreement: December 1, 2004
                                               Servicer: HomEq Servicing
                                               Corporation
First Distribution Date: January 25, 2005
                                               Trustee: U.S. Bank National
                                               Association
No. 1
                                               Issue Date: December 21, 2004
Aggregate Notional Amount of the Class
CE Certificates as of the Issue Date:
$744,970,780.44

Notional Amount: $744,970,780.44

                                      124
<PAGE>

         DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS
         CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
         OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE
         LESS THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS
         CERTIFICATE.

                                      125
<PAGE>

                        MORTGAGE PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate and adjustable-rate, first and second lien mortgage
loans (the "Mortgage Loans") formed and sold by

                MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., THE SERVICER, THE
         TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
         NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that UBS Securities LLC is the registered owner
of a Percentage Interest (obtained by dividing the denomination of this
Certificate by the aggregate Certificate Principal Balance of the Class CE
Certificates as of the Issue Date) in that certain beneficial ownership interest
evidenced by all the Class CE Certificates in a REMIC created pursuant to a
Pooling and Servicing Agreement, dated as specified above (the "Agreement"),
among Mortgage Asset Securitization Transactions, Inc. (hereinafter called the
"Depositor," which term includes any successor entity under the Agreement), the
Servicer and the Trustee, a summary of certain of the pertinent provisions of
which is set forth hereafter. To the extent not defined herein, the capitalized
terms used herein have the meanings assigned in the Agreement. This Certificate
is issued under and is subject to the terms, provisions and conditions of the
Agreement, to which Agreement the Holder of this Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class CE Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and is
the registered owner of Class CE Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or (ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
CE Certificates, or otherwise by check mailed by first class mail to the address
of the Person entitled thereto, as such name and address shall appear on the
Certificate Register. Notwithstanding the above, the final distribution on this
Certificate will be made after due notice by the Trustee of the pendency of such
distribution and

                                      126
<PAGE>

only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose as provided in the Agreement.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Distribution Account may be made from time to
time for purposes other than distributions to Certificateholders, such purposes
including reimbursement of advances made, or certain expenses incurred, with
respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

                  No transfer of this Certificate shall be made unless the
transfer is made pursuant to an effective registration statement under the
Securities Act of 1933, as amended (the "1933 Act"), and an effective
registration or qualification under applicable state securities laws, or is made
in a transaction that does not require such registration or qualification. In
the event that such a transfer of this Certificate is to be made without
registration or qualification, the Trustee shall require receipt of (i) if such
transfer is purportedly being made in reliance upon Rule 144A under the 1933
Act, written certifications from the Holder of the Certificate desiring to
effect the transfer, and from such Holder's prospective transferee,
substantially in the forms attached to the Agreement as Exhibit F-1, and (ii) in
all other cases, an Opinion of Counsel satisfactory to it that such transfer may
be made without such registration or qualification (which Opinion of Counsel

                                      127
<PAGE>

shall not be an expense of the Trust Fund or of the Depositor, the Trustee or
the Servicer in their respective capacities as such), together with copies of
the written certification(s) of the Holder of the Certificate desiring to effect
the transfer and/or such Holder's prospective transferee upon which such Opinion
of Counsel is based. None of the Depositor or the Trustee is obligated to
register or qualify the Class of Certificates specified on the face hereof under
the 1933 Act or any other securities law or to take any action not otherwise
required under the Agreement to permit the transfer of such Certificates without
registration or qualification. Any Holder desiring to effect a transfer of this
Certificate shall be required to indemnify the Trustee, the Depositor and the
Servicer against any liability that may result if the transfer is not so exempt
or is not made in accordance with such federal and state laws.

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.

                  The Depositor, the Servicer, the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Servicer, the Trustee nor any such agent shall be affected by
notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
10% of the aggregate principal balance of the Mortgage Loans as of the Cut-off
Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

                                      128
<PAGE>

                  Unless the certificate of authentication hereon has been
executed by the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      129
<PAGE>

                  IN WITNESS WHEREOF, the Trustee has caused this Certificate to
be duly executed.

Dated: December__, 2004

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               not in its individual capacity,
                                               but solely as Trustee for the
                                               MASTR Asset Backed Securities
                                               Trust 2004-WMC3

                                               By:______________________________
                                                       Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               as Trustee

                                               By:______________________________
                                                     Authorized Signatory

                                      130
<PAGE>

                                  ABBREVIATIONS
                                  -------------

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM - as tenants in common                  UNIF GIFT MIN ACT - Custodian
                                                                    ---------
TEN ENT - as tenants by the entireties                  (Cust) (Minor) under
                                                Uniform Gifts
JT TEN - as joint tenants with right                    to Minors Act
         if survivorship and not as                     _______________
         tenants in common                                  (State)

         Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s)____________________________________________________________ unto
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.

         I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
________________________________________________________________________________

Dated: _________________

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           _____________________________________
                                           Signature Guaranteed

                                      131
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________________________________________________________
_____________________________________________________________ for the account of
_______________________________, account number _______________________________,
or, if mailed by check, to______________________________________________________
______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
__________________________________________________________________________. This
information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.

                                      132
<PAGE>

                                  EXHIBIT A-18
                                  ------------

                           FORM OF CLASS P CERTIFICATE

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS
         THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
         INTERNAL REVENUE CODE OF 1986 AS AMENDED (THE "CODE").

         THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
         SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE
         AND MAY NOT BE RESOLD OR TRANSFERRED UNLESS IT IS REGISTERED PURSUANT
         TO SUCH ACT AND LAWS OR IS SOLD OR TRANSFERRED IN TRANSACTIONS THAT ARE
         EXEMPT FROM REGISTRATION UNDER SUCH ACT AND UNDER APPLICABLE STATE LAW
         AND IS TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02 OF
         THE AGREEMENT.

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
         SECURITY ACT OF 1974, AS AMENDED, OR THE CODE WILL BE REGISTERED EXCEPT
         IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

                                      133
<PAGE>

Series:  2004-WMC3                             Aggregate Certificate Principal
                                               Balance of the Class P
                                               Certificates as of the Issue
Cut-off Date and date of Pooling and           Date: $100.00
Servicing Agreement: December 1, 2004
                                               Denomination: $100.00
First Distribution Date: January 25, 2005
                                               Servicer: HomEq Servicing
                                               Corporation
No. 1
                                               Trustee: U.S. Bank National
                                               Association

                                               Issue Date: December 21, 2004

           DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL
           BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH
           HEREIN. ACCORDINGLY, THE OUTSTANDING CERTIFICATE PRINCIPAL
           BALANCE HEREOF AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN
           ABOVE AS THE DENOMINATION OF THIS CERTIFICATE.

                                      134
<PAGE>

                        MORTGAGE PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate and adjustable-rate, first and second lien mortgage
loans (the "Mortgage Loans") formed and sold by

                MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., THE SERVICER, THE
         TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
         NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that UBS Securities LLC is the registered owner
of a Percentage Interest (obtained by dividing the denomination of this
Certificate by the aggregate Certificate Principal Balance of the Class P
Certificates as of the Issue Date) in that certain beneficial ownership interest
evidenced by all the Class P Certificates in REMIC IV created pursuant to a
Pooling and Servicing Agreement, dated as specified above (the "Agreement"),
among Mortgage Asset Securitization Transactions, Inc. (hereinafter called the
"Depositor," which term includes any successor entity under the Agreement), the
Servicer and the Trustee, a summary of certain of the pertinent provisions of
which is set forth hereafter. To the extent not defined herein, the capitalized
terms used herein have the meanings assigned in the Agreement. This Certificate
is issued under and is subject to the terms, provisions and conditions of the
Agreement, to which Agreement the Holder of this Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class P Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and is
the registered owner of Class P Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or (ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class P
Certificates, or otherwise by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register. Notwithstanding the above, the final distribution on this
Certificate will be made after due notice by the Trustee of the pendency of such
distribution and

                                      135
<PAGE>

only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose as provided in the Agreement.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof
equal to the denomination specified on the face hereof divided by the aggregate
Certificate Principal Balance of the Class of Certificates specified on the face
hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Distribution Account may be made from time to
time for purposes other than distributions to Certificateholders, such purposes
including reimbursement of advances made, or certain expenses incurred, with
respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer, the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

                  No transfer of this Certificate shall be made unless the
transfer is made pursuant to an effective registration statement under the
Securities Act of 1933, as amended (the "1933 Act"), and an effective
registration or qualification under applicable state securities laws, or is made
in a transaction that does not require such registration or qualification. In
the event that such a transfer of this Certificate is to be made without
registration or qualification, the Trustee shall require receipt of (i) if such
transfer is purportedly being made in reliance upon Rule 144A under the 1933
Act, written certifications from the Holder of the Certificate desiring to
effect the transfer, and from such Holder's prospective transferee,
substantially in the forms attached to the Agreement as Exhibit F-1, and (ii) in
all other cases, an Opinion of Counsel satisfactory to it that such transfer may
be made without such registration or qualification (which Opinion of Counsel

                                      136
<PAGE>

shall not be an expense of the Trust Fund or of the Depositor, the Trustee or
the Servicer in their respective capacities as such), together with copies of
the written certification(s) of the Holder of the Certificate desiring to effect
the transfer and/or such Holder's prospective transferee upon which such Opinion
of Counsel is based. None of the Depositor or the Trustee is obligated to
register or qualify the Class of Certificates specified on the face hereof under
the 1933 Act or any other securities law or to take any action not otherwise
required under the Agreement to permit the transfer of such Certificates without
registration or qualification. Any Holder desiring to effect a transfer of this
Certificate shall be required to indemnify the Trustee, the Depositor and the
Servicer against any liability that may result if the transfer is not so exempt
or is not made in accordance with such federal and state laws.

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.

                  The Depositor, the Servicer, the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Servicer, the Trustee nor any such agent shall be affected by
notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
10% of the aggregate principal balance of the Mortgage Loans as of the Cut-off
Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

                                      137
<PAGE>

                  Unless the certificate of authentication hereon has been
executed by the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      138
<PAGE>

                  IN WITNESS WHEREOF, the Trustee has caused this Certificate to
be duly executed.

Dated: December__, 2004

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               not in its individual capacity,
                                               but solely as Trustee for the
                                               MASTR Asset Backed Securities
                                               Trust 2004-WMC3

                                               By:______________________________
                                                       Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               as Trustee

                                               By:______________________________
                                                     Authorized Signatory

                                      139
<PAGE>

                                  ABBREVIATIONS
                                  -------------

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM - as tenants in common                  UNIF GIFT MIN ACT - Custodian
                                                                    ---------
TEN ENT - as tenants by the entireties                  (Cust) (Minor) under
                                                Uniform Gifts
JT TEN - as joint tenants with right                    to Minors Act
         if survivorship and not as                     _______________
         tenants in common                                  (State)

         Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s)____________________________________________________________ unto
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.

         I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
________________________________________________________________________________

Dated: _________________

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           _____________________________________
                                           Signature Guaranteed

                                      140
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________________________________________________________
_____________________________________________________________ for the account of
_______________________________, account number _______________________________,
or, if mailed by check, to______________________________________________________
______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
__________________________________________________________________________. This
information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.

                                       141

<PAGE>

                                  EXHIBIT A-19
                                  ------------

                           FORM OF CLASS R CERTIFICATE

         THIS CERTIFICATE MAY NOT BE TRANSFERRED TO A NON-UNITED STATES PERSON.

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "RESIDUAL INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT"
         ("REMIC"), AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G
         AND 860D OF THE INTERNAL REVENUE CODE OF 1986 AS AMENDED (THE "CODE").

         ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE
         MADE ONLY IN ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02 OF THE
         POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

         THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
         SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE
         AND MAY NOT BE RESOLD OR TRANSFERRED UNLESS IT IS REGISTERED PURSUANT
         TO SUCH ACT AND LAWS OR IS SOLD OR TRANSFERRED IN TRANSACTIONS THAT ARE
         EXEMPT FROM REGISTRATION UNDER SUCH ACT AND UNDER APPLICABLE STATE LAW
         AND IS TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02 OF
         THE AGREEMENT.

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
         SECURITY ACT OF 1974, AS AMENDED, OR THE CODE WILL BE REGISTERED EXCEPT
         IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

         ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE
         MADE ONLY IF THE PROPOSED TRANSFEREE PROVIDES (I) AN AFFIDAVIT TO THE
         TRUSTEE THAT (A) SUCH TRANSFEREE IS NOT (1) THE UNITED STATES OR ANY
         POSSESSION THEREOF, ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY
         FOREIGN GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR
         INSTRUMENTALITY OF ANY OF THE FOREGOING, (2) ANY ORGANIZATION (OTHER
         THAN A COOPERATIVE DESCRIBED IN SECTION 521 OF THE CODE) THAT IS EXEMPT
         FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE UNLESS SUCH ORGANIZATION
         IS SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE CODE, (3) ANY
         ORGANIZATION DESCRIBED IN SECTION

                                      142
<PAGE>

         1381(A)(2)(C) OF THE CODE (ANY SUCH PERSON DESCRIBED IN THE FOREGOING
         CLAUSES (1), (2) OR (3) SHALL HEREINAFTER BE REFERRED TO AS A
         "DISQUALIFIED ORGANIZATION") OR (4) AN AGENT OF A DISQUALIFIED
         ORGANIZATION AND (B) NO PURPOSE OF SUCH TRANSFER IS TO IMPEDE THE
         ASSESSMENT OR COLLECTION OF TAX, AND (II) SUCH TRANSFEREE SATISFIES
         CERTAIN ADDITIONAL CONDITIONS RELATING TO THE FINANCIAL CONDITION OF
         THE PROPOSED TRANSFEREE. NOTWITHSTANDING THE REGISTRATION IN THE
         CERTIFICATE REGISTER OF ANY TRANSFER, SALE OR OTHER DISPOSITION OF THIS
         CERTIFICATE TO A DISQUALIFIED ORGANIZATION OR AN AGENT OF A
         DISQUALIFIED ORGANIZATION, SUCH REGISTRATION SHALL BE DEEMED TO BE OF
         NO LEGAL FORCE OR EFFECT WHATSOEVER AND SUCH PERSON SHALL NOT BE DEEMED
         TO BE A CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER, INCLUDING, BUT NOT
         LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS CERTIFICATE. EACH
         HOLDER OF THIS CERTIFICATE BY ACCEPTANCE HEREOF SHALL BE DEEMED TO HAVE
         CONSENTED TO THE PROVISIONS OF THIS PARAGRAPH AND THE PROVISIONS OF
         SECTION 5.02(D) OF THE POOLING AND SERVICING AGREEMENT REFERRED TO
         HEREIN. ANY PERSON THAT IS A DISQUALIFIED ORGANIZATION IS PROHIBITED
         FROM ACQUIRING BENEFICIAL OWNERSHIP OF THIS CERTIFICATE.

Series:  2004-WMC3                             Aggregate Percentage Interest of
                                               the Class R Certificates as of
                                               the Issue Date: 100.00%

Cut-off Date and date of Pooling and
Servicing Agreement: December 1, 2004          Servicer: HomEq Servicing
                                               Corporation

First Distribution Date: January 25, 2005      Trustee: U.S. Bank National
                                               Association

No. 1                                          Issue Date: December 21, 2004

                                      143
<PAGE>

                        MORTGAGE PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate and adjustable-rate, first and second lien mortgage
loans (the "Mortgage Loans") formed and sold by

                MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., THE SERVICER, THE
         TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
         NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that UBS Securities LLC is the registered owner
of a Percentage Interest (as specified above) in that certain beneficial
ownership interest evidenced by all the Certificates of the Class to which this
Certificate belongs created pursuant to a Pooling and Servicing Agreement, dated
as specified above (the "Agreement"), among Mortgage Asset Securitization
Transactions, Inc. (hereinafter called the "Depositor," which term includes any
successor entity under the Agreement), the Servicer and the Trustee, a summary
of certain of the pertinent provisions of which is set forth hereafter. To the
extent not defined herein, the capitalized terms used herein have the meanings
assigned in the Agreement. This Certificate is issued under and is subject to
the terms, provisions and conditions of the Agreement, to which Agreement the
Holder of this Certificate by virtue of the acceptance hereof assents and by
which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class R Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and is
the registered owner of Class R Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or (ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class R
Certificates, or otherwise by check mailed by first class mail to the address of
the Person entitled thereto, as such name and address shall appear on the
Certificate Register. Notwithstanding the above, the final distribution on this
Certificate will be made after due notice by the Trustee of the pendency of such
distribution and

                                      144
<PAGE>

only upon presentation and surrender of this Certificate at the
office or agency appointed by the Trustee for that purpose as provided in the
Agreement.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Distribution Account may be made from time to
time for purposes other than distributions to Certificateholders, such purposes
including reimbursement of advances made, or certain expenses incurred, with
respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer and the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

                  No transfer of this Certificate shall be made unless the
transfer is made pursuant to an effective registration statement under the
Securities Act of 1933, as amended (the "1933 Act"), and an effective
registration or qualification under applicable state securities laws, or is made
in a transaction that does not require such registration or qualification. In
the event that such a transfer of this Certificate is to be made without
registration or qualification, the Trustee shall require receipt of (i) if such
transfer is purportedly being made in reliance upon Rule 144A under the 1933
Act, written certifications from the Holder of the Certificate desiring to
effect the transfer, and from such Holder's prospective transferee,
substantially in the forms attached to the Agreement as Exhibit F-1, and (ii) in
all other cases, an Opinion of Counsel satisfactory to it that such transfer may
be made without such registration or qualification (which Opinion of Counsel
shall not be an expense of the Trust Fund or of the Depositor, the Trustee or
the Servicer in their

                                      145
<PAGE>

respective capacities as such), together with copies of
the written certification(s) of the Holder of the Certificate desiring to effect
the transfer and/or such Holder's prospective transferee upon which such Opinion
of Counsel is based. Neither the Depositor nor the Trustee is obligated to
register or qualify the Class of Certificates specified on the face hereof under
the 1933 Act or any other securities law or to take any action not otherwise
required under the Agreement to permit the transfer of such Certificates without
registration or qualification. Any Holder desiring to effect a transfer of this
Certificate shall be required to indemnify the Trustee, the Depositor and the
Servicer against any liability that may result if the transfer is not so exempt
or is not made in accordance with such federal and state laws.

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.

                  Prior to registration of any transfer, sale or other
disposition of this Certificate, the proposed transferee shall provide to the
Trustee (i) an affidavit to the effect that such transferee is any Person other
than a Disqualified Organization or the agent (including a broker, nominee or
middleman) of a Disqualified Organization, and (ii) a certificate that
acknowledges that (A) the Class R Certificates have been designated as a
residual interest in a REMIC, (B) it will include in its income a PRO RATA share
of the net income of the Trust Fund and that such income may be an "excess
inclusion," as defined in the Code, that, with certain exceptions, cannot be
offset by other losses or benefits from any tax exemption, and (C) it expects to
have the financial means to satisfy all of its tax obligations including those
relating to holding the Class R Certificates. Notwithstanding the registration
in the Certificate Register of any transfer, sale or other disposition of this
Certificate to a Disqualified Organization or an agent (including a broker,
nominee or middleman) of a Disqualified Organization, such registration shall be
deemed to be of no legal force or effect whatsoever and such Person shall not be
deemed to be a Certificateholder for any purpose, including, but not limited to,
the receipt of distributions in respect of this Certificate.

                  The Holder of this Certificate, by its acceptance hereof,
shall be deemed to have consented to the provisions of Section 5.02 of the
Agreement and to any amendment of the Agreement deemed necessary by counsel of
the Depositor to ensure that the transfer of this Certificate to any Person
other than a Permitted Transferee or any other Person will not cause the Trust
Fund to cease to qualify as a REMIC or cause the imposition of a tax upon the
REMIC.

                                      146
<PAGE>

                  The Depositor, the Servicer, the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Servicer, the Trustee nor any such agent shall be affected by
notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
10% of the aggregate principal balance of the Mortgage Loans as of the Cut-off
Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      147
<PAGE>

                  IN WITNESS WHEREOF, the Trustee has caused this Certificate to
be duly executed.

Dated: December__, 2004

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               not in its individual capacity,
                                               but solely as Trustee for the
                                               MASTR Asset Backed Securities
                                               Trust 2004-WMC3

                                               By:______________________________
                                                       Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               as Trustee

                                               By:______________________________
                                                     Authorized Signatory

                                      148
<PAGE>

                                  ABBREVIATIONS
                                  -------------

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM - as tenants in common                  UNIF GIFT MIN ACT - Custodian
                                                                    ---------
TEN ENT - as tenants by the entireties                  (Cust) (Minor) under
                                                Uniform Gifts
JT TEN - as joint tenants with right                    to Minors Act
         if survivorship and not as                     _______________
         tenants in common                                  (State)

         Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s)____________________________________________________________ unto
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.

         I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
________________________________________________________________________________

Dated: _________________

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           _____________________________________
                                           Signature Guaranteed

                                      149
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________________________________________________________
_____________________________________________________________ for the account of
_______________________________, account number _______________________________,
or, if mailed by check, to______________________________________________________
______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
__________________________________________________________________________. This
information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.

                                      150
<PAGE>

                                  EXHIBIT A-20
                                  ------------

                          FORM OF CLASS R-X CERTIFICATE

         THIS CERTIFICATE MAY NOT BE TRANSFERRED TO A NON-UNITED STATES PERSON.

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
         "RESIDUAL INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT"
         ("REMIC"), AS THOSE TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G
         AND 860D OF THE INTERNAL REVENUE CODE OF 1986 AS AMENDED (THE "CODE").

         ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE
         MADE ONLY IN ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02 OF THE
         POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

         THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
         SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE
         AND MAY NOT BE RESOLD OR TRANSFERRED UNLESS IT IS REGISTERED PURSUANT
         TO SUCH ACT AND LAWS OR IS SOLD OR TRANSFERRED IN TRANSACTIONS THAT ARE
         EXEMPT FROM REGISTRATION UNDER SUCH ACT AND UNDER APPLICABLE STATE LAW
         AND IS TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02 OF
         THE AGREEMENT.

         NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER
         RETIREMENT ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME
         SECURITY ACT OF 1974, AS AMENDED, OR THE CODE WILL BE REGISTERED EXCEPT
         IN COMPLIANCE WITH THE PROCEDURES DESCRIBED HEREIN.

         ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE
         MADE ONLY IF THE PROPOSED TRANSFEREE PROVIDES (I) AN AFFIDAVIT TO THE
         TRUSTEE THAT (A) SUCH TRANSFEREE IS NOT (1) THE UNITED STATES OR ANY
         POSSESSION THEREOF, ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY
         FOREIGN GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR
         INSTRUMENTALITY OF ANY OF THE FOREGOING, (2) ANY ORGANIZATION (OTHER
         THAN A COOPERATIVE DESCRIBED IN SECTION 521 OF THE CODE) THAT IS EXEMPT
         FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE UNLESS SUCH ORGANIZATION
         IS SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE CODE, (3) ANY
         ORGANIZATION DESCRIBED IN SECTION

                                      151
<PAGE>

         1381(A)(2)(C) OF THE CODE (ANY SUCH PERSON DESCRIBED IN THE FOREGOING
         CLAUSES (1), (2) OR (3) SHALL HEREINAFTER BE REFERRED TO AS A
         "DISQUALIFIED ORGANIZATION") OR (4) AN AGENT OF A DISQUALIFIED
         ORGANIZATION AND (B) NO PURPOSE OF SUCH TRANSFER IS TO IMPEDE THE
         ASSESSMENT OR COLLECTION OF TAX, AND (II) SUCH TRANSFEREE SATISFIES
         CERTAIN ADDITIONAL CONDITIONS RELATING TO THE FINANCIAL CONDITION OF
         THE PROPOSED TRANSFEREE. NOTWITHSTANDING THE REGISTRATION IN THE
         CERTIFICATE REGISTER OF ANY TRANSFER, SALE OR OTHER DISPOSITION OF THIS
         CERTIFICATE TO A DISQUALIFIED ORGANIZATION OR AN AGENT OF A
         DISQUALIFIED ORGANIZATION, SUCH REGISTRATION SHALL BE DEEMED TO BE OF
         NO LEGAL FORCE OR EFFECT WHATSOEVER AND SUCH PERSON SHALL NOT BE DEEMED
         TO BE A CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER, INCLUDING, BUT NOT
         LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS CERTIFICATE. EACH
         HOLDER OF THIS CERTIFICATE BY ACCEPTANCE HEREOF SHALL BE DEEMED TO HAVE
         CONSENTED TO THE PROVISIONS OF THIS PARAGRAPH AND THE PROVISIONS OF
         SECTION 5.02(D) OF THE POOLING AND SERVICING AGREEMENT REFERRED TO
         HEREIN. ANY PERSON THAT IS A DISQUALIFIED ORGANIZATION IS PROHIBITED
         FROM ACQUIRING BENEFICIAL OWNERSHIP OF THIS CERTIFICATE.

Series: 2004-WMC3                              Aggregate Percentage Interest of
                                               the Class R-X Certificates as of
                                               the Issue Date: 100.00%
Cut-off Date and date of Pooling and
Servicing Agreement: December 1, 2004          Servicer: HomEq Servicing
                                               Corporation
First Distribution Date: January 25, 2005      Trustee: U.S. Bank National
                                               Association
No. 1                                          Issue Date: December 21, 2004

                                      152
<PAGE>

                        MORTGAGE PASS-THROUGH CERTIFICATE

evidencing a beneficial ownership interest in a portion of a Trust Fund (the
"Trust Fund") consisting primarily of a pool of conventional one- to
four-family, fixed-rate and adjustable-rate, first and second lien mortgage
loans (the "Mortgage Loans") formed and sold by

                MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.

         THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
         MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC., THE SERVICER, THE
         TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE
         NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED BY ANY AGENCY OR
         INSTRUMENTALITY OF THE UNITED STATES.

                  This certifies that UBS Securities LLC is the registered owner
of a Percentage Interest (as specified above) in that certain beneficial
ownership interest evidenced by all the Certificates of the Class to which this
Certificate belongs created pursuant to a Pooling and Servicing Agreement, dated
as specified above (the "Agreement"), among Mortgage Asset Securitization
Transactions, Inc. (hereinafter called the "Depositor," which term includes any
successor entity under the Agreement), the Servicer and the Trustee, a summary
of certain of the pertinent provisions of which is set forth hereafter. To the
extent not defined herein, the capitalized terms used herein have the meanings
assigned in the Agreement. This Certificate is issued under and is subject to
the terms, provisions and conditions of the Agreement, to which Agreement the
Holder of this Certificate by virtue of the acceptance hereof assents and by
which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following (a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered on the Record Date, in an amount equal to the product
of the Percentage Interest evidenced by this Certificate and the amount required
to be distributed to the Holders of Class R-X Certificates on such Distribution
Date pursuant to the Agreement.

                  All distributions to the Holder of this Certificate under the
Agreement will be made or caused to be made by the Trustee by wire transfer in
immediately available funds to the account of the Person entitled thereto if
such Person shall have so notified the Trustee in writing at least five Business
Days prior to the Record Date immediately prior to such Distribution Date and is
the registered owner of Class R-X Certificates the aggregate initial Certificate
Principal Balance of which is in excess of the lesser of (i) $5,000,000 or (ii)
two-thirds of the aggregate initial Certificate Principal Balance of the Class
R-X Certificates, or otherwise by check mailed by first class mail to the
address of the Person entitled thereto, as such name and address shall appear on
the Certificate Register. Notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Trustee of the pendency of
such distribution and

                                      153
<PAGE>

only upon presentation and surrender of this Certificate at the office or agency
appointed by the Trustee for that purpose as provided in the Agreement.

                  This Certificate is one of a duly authorized issue of
Certificates designated as Mortgage Pass-Through Certificates of the Series
specified on the face hereof (herein called the "Certificates") and representing
a Percentage Interest in the Class of Certificates specified on the face hereof.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Distribution Account may be made from time to
time for purposes other than distributions to Certificateholders, such purposes
including reimbursement of advances made, or certain expenses incurred, with
respect to the Mortgage Loans.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor, the Servicer and the Trustee and the rights of the
Certificateholders under the Agreement at any time by the Depositor, the
Servicer and the Trustee with the consent of the Holders of Certificates
entitled to at least 66% of the Voting Rights. Any such consent by the Holder of
this Certificate shall be conclusive and binding on such Holder and upon all
future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in exchange herefor or in lieu hereof whether or not notation
of such consent is made upon this Certificate. The Agreement also permits the
amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies appointed by the Trustee as provided in
the Agreement, duly endorsed by, or accompanied by an assignment in the form
below or other written instrument of transfer in form satisfactory to the
Trustee duly executed by, the Holder hereof or such Holder's attorney duly
authorized in writing, and thereupon one or more new Certificates of the same
Class in authorized denominations evidencing the same aggregate Percentage
Interest will be issued to the designated transferee or transferees.

                  No transfer of this Certificate shall be made unless the
transfer is made pursuant to an effective registration statement under the
Securities Act of 1933, as amended (the "1933 Act"), and an effective
registration or qualification under applicable state securities laws, or is made
in a transaction that does not require such registration or qualification. In
the event that such a transfer of this Certificate is to be made without
registration or qualification, the Trustee shall require receipt of (i) if such
transfer is purportedly being made in reliance upon Rule 144A under the 1933
Act, written certifications from the Holder of the Certificate desiring to
effect the transfer, and from such Holder's prospective transferee,
substantially in the forms attached to the Agreement as Exhibit F-1, and (ii) in
all other cases, an Opinion of Counsel satisfactory to it that such transfer may
be made without such registration or qualification (which Opinion of Counsel
shall not be an expense of the Trust Fund or of the Depositor, the Trustee or
the Servicer in their

                                      154
<PAGE>

respective capacities as such), together with copies of the written
certification(s) of the Holder of the Certificate desiring to effect the
transfer and/or such Holder's prospective transferee upon which such Opinion of
Counsel is based. Neither the Depositor nor the Trustee is obligated to register
or qualify the Class of Certificates specified on the face hereof under the 1933
Act or any other securities law or to take any action not otherwise required
under the Agreement to permit the transfer of such Certificates without
registration or qualification. Any Holder desiring to effect a transfer of this
Certificate shall be required to indemnify the Trustee, the Depositor and the
Servicer against any liability that may result if the transfer is not so exempt
or is not made in accordance with such federal and state laws.

                  No transfer of this Certificate to a Plan subject to ERISA or
Section 4975 of the Code, any Person acting, directly or indirectly, on behalf
of any such Plan or any Person using "Plan Assets" to acquire this Certificate
shall be made except in accordance with Section 5.02(c) of the Agreement.

                  The Certificates are issuable in fully registered form only
without coupons in Classes and denominations representing Percentage Interests
specified in the Agreement. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of the same Class in authorized denominations evidencing the same
aggregate Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be made for any such registration of transfer or exchange
of Certificates, but the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Certificates.

                  Prior to registration of any transfer, sale or other
disposition of this Certificate, the proposed transferee shall provide to the
Trustee (i) an affidavit to the effect that such transferee is any Person other
than a Disqualified Organization or the agent (including a broker, nominee or
middleman) of a Disqualified Organization, and (ii) a certificate that
acknowledges that (A) the Class R-X Certificates have been designated as a
residual interest in a REMIC, (B) it will include in its income a PRO RATA share
of the net income of the Trust Fund and that such income may be an "excess
inclusion," as defined in the Code, that, with certain exceptions, cannot be
offset by other losses or benefits from any tax exemption, and (C) it expects to
have the financial means to satisfy all of its tax obligations including those
relating to holding the Class R-X Certificates. Notwithstanding the registration
in the Certificate Register of any transfer, sale or other disposition of this
Certificate to a Disqualified Organization or an agent (including a broker,
nominee or middleman) of a Disqualified Organization, such registration shall be
deemed to be of no legal force or effect whatsoever and such Person shall not be
deemed to be a Certificateholder for any purpose, including, but not limited to,
the receipt of distributions in respect of this Certificate.

                  The Holder of this Certificate, by its acceptance hereof,
shall be deemed to have consented to the provisions of Section 5.02 of the
Agreement and to any amendment of the Agreement deemed necessary by counsel of
the Depositor to ensure that the transfer of this Certificate to any Person
other than a Permitted Transferee or any other Person will not cause the Trust
Fund to cease to qualify as a REMIC or cause the imposition of a tax upon the
REMIC.

                                      155
<PAGE>

                  The Depositor, the Servicer, the Trustee and any agent of the
Depositor, the Servicer or the Trustee may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Servicer, the Trustee nor any such agent shall be affected by
notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby shall terminate upon payment to the Certificateholders of all
amounts held by the Trustee and required to be paid to them pursuant to the
Agreement following the earlier of (i) the final payment or other liquidation
(or any advance with respect thereto) of the last Mortgage Loan and REO Property
remaining in REMIC I and (ii) the purchase by the party designated in the
Agreement at a price determined as provided in the Agreement from REMIC I of all
the Mortgage Loans and all property acquired in respect of such Mortgage Loans.
The Agreement permits, but does not require, the party designated in the
Agreement to purchase from REMIC I all of the Mortgage Loans and all property
acquired in respect of any Mortgage Loan at a price determined as provided in
the Agreement. The exercise of such right will effect early retirement of the
Certificates; however, such right to purchase is subject to the aggregate Stated
Principal Balance of the Mortgage Loans at the time of purchase being less than
10% of the aggregate principal balance of the Mortgage Loans as of the Cut-off
Date.

                  The recitals contained herein shall be taken as statements of
the Depositor and the Trustee assumes no responsibility for their correctness.

                  Unless the certificate of authentication hereon has been
executed by the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

                                      156
<PAGE>

                  IN WITNESS WHEREOF, the Trustee has caused this Certificate to
be duly executed.

Dated: December__, 2004

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               not in its individual capacity,
                                               but solely as Trustee for the
                                               MASTR Asset Backed Securities
                                               Trust 2004-WMC3

                                               By:______________________________
                                                       Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

         This is one of the Certificates referred to in the within-mentioned
Agreement.

                                               U.S. BANK NATIONAL ASSOCIATION,
                                               as Trustee

                                               By:______________________________
                                                     Authorized Signatory

                                      157
<PAGE>

                                  ABBREVIATIONS
                                  -------------

The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:

TEN COM - as tenants in common                  UNIF GIFT MIN ACT - Custodian
                                                                    ---------
TEN ENT - as tenants by the entireties                  (Cust) (Minor) under
                                                Uniform Gifts
JT TEN - as joint tenants with right                    to Minors Act
         if survivorship and not as                     _______________
         tenants in common                                  (State)

         Additional abbreviations may also be used though not in the above list.

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s)____________________________________________________________ unto
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name, address including postal zip code, and Taxpayer
Identification Number of assignee) a Percentage Interest equal to ____%
evidenced by the within Mortgage Pass-Through Certificates and hereby
authorize(s) the registration of transfer of such interest to assignee on the
Certificate Register of the Trust Fund.

         I (we) further direct the Trustee to issue a new Certificate of a like
Percentage Interest and Class to the above named assignee and deliver such
Certificate to the following address:
________________________________________________________________________________
________________________________________________________________________________

Dated: _________________

                                           _____________________________________
                                           Signature by or on behalf of assignor

                                           _____________________________________
                                           Signature Guaranteed

                                      158
<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to__________________________________________________
________________________________________________________________________________
_____________________________________________________________ for the account of
_______________________________, account number _______________________________,
or, if mailed by check, to______________________________________________________
______________________________________________________________________________.
Applicable statements should be mailed to_______________________________________
__________________________________________________________________________. This
information is provided by ___________________________________________, the
assignee named above, or ________________________________________, as its agent.

                                      159
<PAGE>

                                    EXHIBIT B
                                    ---------

                                   [Reserved]

                                      160
<PAGE>

                                   EXHIBIT C-1
                                   -----------

                     FORM OF TRUSTEE'S INITIAL CERTIFICATION

                                                           [Date]

Mortgage Asset Securitization                   U.S. Bank National Association,
  Transactions, Inc.                            60 Livingston Street
1285 Avenue of the Americas                     St. Paul, Minnesota 55107
New York, New York 10019

HomEq Servicing Corporation
4837 Watt Avenue
North Highlands, California 95660

         Re:      Pooling and Servicing Agreement, dated as of December 1, 2004,
                  among Mortgage Asset Securitization Transactions, Inc., HomEq
                  Servicing Corporation and U.S. Bank National Association,
                  Mortgage Pass-Through Certificates, Series 2004-WMC3
                  --------------------------------------------------------------

Ladies and Gentlemen:

         Attached is the Trustee's preliminary exception report delivered in
accordance with Section 2.02 of the referenced Pooling and Servicing Agreement
(the "Pooling and Servicing Agreement"). Capitalized terms used but not
otherwise defined herein shall have the meanings set forth in the Pooling and
Servicing Agreement.

         The Trustee has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
Pooling and Servicing Agreement. The Trustee makes no representations as to (i)
the validity, legality, sufficiency, enforceability or genuineness of any of the
documents contained in the Mortgage File pertaining to the Mortgage Loans
identified on the Mortgage Loan Schedule, (ii) the collectability, insurability,
effectiveness or suitability of any such Mortgage Loan or (iii) whether any
Mortgage File included any of the documents specified in clause (vi) of Section
2.01 of the Pooling and Servicing Agreement.

                                      161
<PAGE>

         Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Pooling and Servicing Agreement. This
Certificate is qualified in all respects by the terms of said Pooling and
Servicing Agreement.

                                          U.S. BANK NATIONAL ASSOCIATION

                                          By:________________________________
                                          Name:
                                          Title:

                                      162
<PAGE>

                                   EXHIBIT C-2
                                   -----------

                      FORM OF TRUSTEE'S FINAL CERTIFICATION

                                                            [Date]

Mortgage Asset Securitization                   U.S. Bank National Association,
  Transactions, Inc.                            60 Livingston Street
1285 Avenue of the Americas                     St. Paul, Minnesota 55107
New York, New York 10019

HomEq Servicing Corporation
4837 Watt Avenue
North Highlands, California 95660

         Re:      Pooling and Servicing Agreement, dated as of December 1, 2004,
                  among Mortgage Asset Securitization Transactions, Inc., HomEq
                  Servicing Corporation and U.S. Bank National Association,
                  Mortgage Pass-Through Certificates, Series 2004-WMC3 Ladies
                  and Gentlemen:
                  --------------------------------------------------------------

         In accordance with Section 2.02 of the Pooling and Servicing Agreement,
the undersigned, as Trustee, hereby certifies that as to each Mortgage Loan
listed in the Mortgage Loan Schedule (other than any Mortgage loan paid in full
or listed on Schedule I hereto) it (or its custodian) has received the
applicable documents listed in Section 2.01 of the Pooling and Servicing
Agreement.

         The undersigned hereby certifies that as to each Mortgage Loan
identified on the Mortgage Loan Schedule, other than any Mortgage Loan listed on
Schedule I hereto, it has reviewed the documents listed above and has determined
that each such document appears to be complete and, based on an examination of
such documents, the information set forth in the Mortgage Loan Schedule is
correct.

         The Trustee has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
Pooling and Servicing Agreement. The Trustee makes no representations as to (i)
the validity, legality, sufficiency, enforceability or genuineness of any of the
documents contained in the Mortgage File pertaining to the Mortgage Loans
identified on the Mortgage Loan Schedule, (ii) the collectability, insurability,
effectiveness or suitability of any such Mortgage Loan or (iii) whether any
Mortgage File included any of the documents specified in clause (vi) of Section
2.01 of the Pooling and Servicing Agreement.

                                      163
<PAGE>

           Capitalized words and phrases used herein shall have the
respective meanings assigned to them in the Pooling and Servicing Agreement.
This Certificate is qualified in all respects by the terms of said Pooling and
Servicing Agreement.

                                           U.S. BANK NATIONAL ASSOCIATION

                                           By:________________________________
                                           Name:
                                           Title:

                                      164
<PAGE>

                                   EXHIBIT C-3

                        FORM OF RECEIPT OF MORTGAGE NOTE

Mortgage Asset Securitization                   U.S. Bank National Association,
  Transactions, Inc.                            60 Livingston Street
1285 Avenue of the Americas                     St. Paul, Minnesota 55107
New York, New York 10019

HomEq Servicing Corporation
4837 Watt Avenue
North Highlands, California 95660

         Re:      Pooling and Servicing Agreement, dated as of December 1, 2004,
                  among Mortgage Asset Securitization Transactions, Inc., HomEq
                  Servicing Corporation and U.S. Bank National Association,
                  Mortgage Pass-Through Certificates, Series 2004-WMC3
                  --------------------------------------------------------------

Ladies and Gentlemen:

         Pursuant to Section 2.01 of the Pooling and Servicing Agreement, dated
as of December 1, 2004, among Mortgage Asset Securitization Transactions, Inc.
as Depositor, HomEq Servicing Corporation as Servicer (the "Servicer") and U.S.
Bank National Association. as Trustee, we hereby acknowledge the receipt of the
original Mortgage Notes (a copy of which is attached hereto as Exhibit 1) with
any exceptions thereto listed on Exhibit 2.

                                              U.S. BANK NATIONAL ASSOCIATION,
                                              as Trustee

                                              By:_______________________________
                                              Name:
                                              Title:

                                      165
<PAGE>

                                    EXHIBIT D
                                    ---------

                    FORM OF MORTGAGE LOAN PURCHASE AGREEMENT

                                      166

<PAGE>

                        MORTGAGE LOAN PURCHASE AGREEMENT

                  This is a Mortgage Loan Purchase Agreement (this "Agreement"),
dated December 16, 2004, among UBS Real Estate Securities Inc., a Delaware
corporation (the "Seller"), Mortgage Asset Securitization Transactions, Inc., a
Delaware corporation (the "Purchaser") and WMC Mortgage Corp., a California
corporation (the "Originator").

                              PRELIMINARY STATEMENT

                  The Seller intends to sell the Mortgage Loans (as hereinafter
identified) and the Cap Contracts to the Purchaser on the terms and subject to
the conditions set forth in this Agreement. The Purchaser intends to deposit the
Mortgage Loans into a mortgage pool comprising the Trust Fund. The Trust Fund
will be evidenced by a single series of mortgage pass-through certificates
designated as Series 2004-WMC3 (the "Certificates"). The Certificates will
consist of twenty classes of certificates. The Certificates will be issued
pursuant to a Pooling and Servicing Agreement for Series 2004-WMC3, dated as of
December 1, 2004 (the "Pooling and Servicing Agreement"), among the Depositor as
depositor, HomEq Servicing Corporation servicer (the "Servicer") and U.S. Bank
National Association as trustee (the "Trustee"). Capitalized terms used but not
defined herein shall have the meanings set forth in the Pooling and Servicing
Agreement.

                  The parties hereto agree as follows:

                  Section 1. AGREEMENT TO PURCHASE. The Seller agrees to sell
and the Purchaser agrees to purchase, on or before December 21, 2004 (the
"Closing Date"), certain fixed-rate and adjustable-rate conventional, one- to
four-family, residential mortgage loans (the "Mortgage Loans"), having an
aggregate principal balance as of the close of business on December 1, 2004,
(the "Cut-off Date") of approximately $744,970,880.44 (the "Closing Balance"),
after giving effect to all payments due on the Mortgage Loans on or before the
Cut-off Date, whether or not received including the right to any Prepayment
Charges payable by the related Mortgagors in connection with any Principal
Prepayments on the Mortgage Loans. In addition to the sale of the Mortgage
Loans, the Seller will cause the Cap Contracts to be transferred to the
Purchaser.

                  Section 2. MORTGAGE LOAN SCHEDULE. The Purchaser and the
Seller have agreed upon which of the mortgage loans owned by the Seller are to
be purchased by the Purchaser pursuant to this Agreement and the Seller will
prepare or cause to be prepared on or prior to the Closing Date a final schedule
(the "Closing Schedule") that shall describe such Mortgage Loans and set forth
all of the Mortgage Loans to be purchased under this Agreement, including the
Prepayment Charges. The Closing Schedule will conform to the requirements set
forth in this Agreement and to the definitions of "Mortgage Loan Schedule" and
"Prepayment Charge Schedule" under the Pooling and Servicing Agreement, it being
understood that for purposes of this Agreement, "Mortgage Loan Schedule" shall
refer to the schedule delivered by the Originator to the Seller. The Closing
Schedule shall be used as the Mortgage Loan Schedule and Prepayment Charge
Schedule under the Pooling and Servicing Agreement.

                  Section 3. CONSIDERATION.

<PAGE>

                  (a)      In consideration for the Mortgage Loans to be
purchased hereunder, the Purchaser shall, as described in Section 8, pay to or
upon the order of the Seller in immediately available funds an amount (the
"Mortgage Loan Purchase Price") equal to the net sale proceeds of the
Certificates.

                  (b)      The Purchaser or any assignee, transferee or designee
of the Purchaser shall be entitled to all scheduled payments of principal due
after the Cut-off Date, all other payments of principal due and collected after
the Cut-off Date, and all payments of interest on the Mortgage Loans allocable
to the period after the Cut-off Date. All scheduled payments of principal and
interest due on or before the Cut-off Date and collected after the Cut-off Date
shall belong to the Seller.

                  (c)      Pursuant to the Pooling and Servicing Agreement, the
Purchaser will assign all of its right, title and interest in and to the
Mortgage Loans, together with its rights under this Agreement, to the Trustee
for the benefit of the Certificateholders.

                  Section 4. TRANSFER OF THE MORTGAGE LOANS.

                  (a)      POSSESSION OF MORTGAGE FILES. The Seller does hereby
sell, transfer, assign, set over and convey to the Purchaser, without recourse
but subject to the terms of this Agreement, all of its right, title and interest
in, to and under the Mortgage Loans, including the related Prepayment Charges.
The contents of each Mortgage File not delivered to the Purchaser or to any
assignee, transferee or designee of the Purchaser on or prior to the Closing
Date are and shall be held in trust by the Seller for the benefit of the
Purchaser or any assignee, transferee or designee of the Purchaser. Upon the
sale of the Mortgage Loans, the ownership of each Mortgage Note, the related
Mortgage and the other contents of the related Mortgage File is vested in the
Purchaser and the ownership of all records and documents with respect to the
related Mortgage Loan prepared by or that come into the possession of the Seller
on or after the Closing Date shall immediately vest in the Purchaser and shall
be delivered immediately to the Purchaser or as otherwise directed by the
Purchaser.

                  (b)      DELIVERY OF MORTGAGE LOAN DOCUMENTS. The Seller will,
on or prior to the Closing Date, deliver or cause to be delivered to the
Purchaser or any assignee, transferee or designee of the Purchaser each of the
following documents for each Mortgage Loan:

                           (i)      the original Mortgage Note, endorsed in
         blank or in the following form: "Pay to the order of U.S. Bank National
         Association, as Trustee under the applicable agreement, without
         recourse," with all prior and intervening endorsements showing a
         complete chain of endorsement from the Originator to the Person so
         endorsing to the Trustee;

                           (ii)     the original Mortgage, noting the presence
         of the MIN of the Mortgage Loan and language indicating that the
         Mortgage Loan is a MOM Loan if the Mortgage Loan is a MOM Loan, with
         evidence of recording thereon, and the original recorded power of
         attorney, if the Mortgage was executed pursuant to a power of attorney,
         with evidence of recording thereon;

                                      -2-
<PAGE>

                           (iii)    unless the Mortgage Loan is registered on
         the MERS(R) System, an original Assignment in blank;

                           (iv)     the original recorded Assignment or
         Assignments showing a complete chain of assignment from the originator
         to the Person assigning the Mortgage to the Trustee as contemplated by
         the immediately preceding clause (iii);

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

                           (vi)     the original lender's title insurance
         policy, together with all endorsements or riders that were issued with
         or subsequent to the issuance of such policy, insuring the priority of
         the Mortgage as a first lien on the Mortgaged Property represented
         therein as a fee interest vested in the Mortgagor, or in the event such
         original title policy is unavailable, a written commitment or uniform
         binder or preliminary report of title issued by the title insurance or
         escrow company.

                  With respect to a maximum of approximately 2.0% of the
Mortgage Loans, by outstanding principal balance of the Mortgage Loans as of the
Cut-off Date, if any original Mortgage Note referred to in Section 4(b)(i) above
cannot be located, the obligations of the Seller to deliver such documents shall
be deemed to be satisfied upon delivery to the Purchaser of a photocopy of such
Mortgage Note, if available, with a lost note affidavit substantially in the
form of Exhibit I to the Pooling and Servicing Agreement. If any of the original
Mortgage Notes for which a lost note affidavit was delivered to the Purchaser is
subsequently located, such original Mortgage Note shall be delivered to the
Purchaser within three Business Days.

                  Except with respect to any Mortgage Loan for which MERS is
identified on the Mortgage or on a properly recorded assignment of the Mortgage
as the mortgagee of record, the Originator promptly shall (within sixty Business
Days following the later of the Closing Date and the date of receipt by the
Originator of the recording information for a Mortgage, but in no event later
than ninety days following the Closing Date) submit or cause to be submitted for
recording, at no expense to the Purchaser, in the appropriate public office for
real property records, each Assignment referred to in Section 4(b)(iii) and (iv)
above and in connection therewith, the Originator shall execute each original
Assignment in the following form: "U.S. Bank National Association, as Trustee
under the applicable agreement." In the event that any such Assignment is lost
or returned unrecorded because of a defect therein, the Originator shall
promptly prepare or cause to be prepared a substitute Assignment or cure or
cause to be cured such defect, as the case may be, and thereafter cause each
such Assignment to be duly recorded. Notwithstanding the foregoing, to the
extent that the Originator has performed the duties with the respect to any
Mortgage Loan referenced in this paragraph in connection with the transfer of
such Mortgage Loan to the Seller, references to the Originator in this paragraph
shall be deemed to be references to the Seller.

                  In connection with the assignment of any Mortgage Loan
registered on the MERS(R) System, the Seller agrees that it will cause, within
30 Business Days after the Closing Date, the MERS(R) System to indicate that
such Mortgage Loans have been assigned by the Purchaser to the Trustee in
accordance with the Pooling and Servicing Agreement for the benefit

                                      -3-
<PAGE>

of the Certificateholders by including in such computer files (a) the code in
the field which identifies the specific Trustee and (b) the code in the field
"Pool Field" which identifies the series of the Certificates issued in
connection with such Mortgage Loans.

                  If any of the documents referred to in Sections 4(b)(ii),
(iii) or (iv) above has, as of the Closing Date, been submitted for recording
but either (x) has not been returned from the applicable public recording office
or (y) has been lost or such public recording office has retained the original
of such document, the obligations of the Seller to deliver such documents shall
be deemed to be satisfied upon (1) delivery to the Purchaser of a copy of each
such document certified by the Originator in the case of (x) above or the
applicable public recording office in the case of (y) above to be a true and
complete copy of the original that was submitted for recording and (2) if such
copy is certified by the Originator, delivery to the Purchaser promptly upon
receipt thereof of either the original or a copy of such document certified by
the applicable public recording office to be a true and complete copy of the
original. The Originator shall provide notice to the Seller and the Seller shall
provide such notice to the Trustee and the Rating Agencies if delivery pursuant
to clause (2) above will be made more than 180 days after the Closing Date.

                  If the original lender's title insurance policy was not
delivered pursuant to Section 4(b)(vi) above, the Seller shall deliver or cause
to be delivered to the Purchaser, promptly after receipt thereof, the original
lender's title insurance policy. The Seller shall deliver or cause to be
delivered to the Purchaser promptly upon receipt thereof any other original
documents constituting a part of a Mortgage File received with respect to any
Mortgage Loan, including, but not limited to, any original documents evidencing
an assumption or modification of any Mortgage Loan.

                  Each original document relating to a Mortgage Loan which is
not delivered to the Purchaser or its assignee, transferee or designee, if held
by the Seller, shall be so held for the benefit of the Purchaser, its assignee,
transferee or designee.

                  (c)      ACCEPTANCE OF MORTGAGE LOANS. The documents delivered
pursuant to Section 4(b) hereof shall be reviewed by the Purchaser or any
assignee, transferee or designee of the Purchaser at any time before or after
the Closing Date (and with respect to each document permitted to be delivered
after the Closing Date, within seven days of its delivery) to ascertain that all
required documents have been executed and received and that such documents
relate to the Mortgage Loans identified on the Mortgage Loan Schedule.

                  (d)      TRANSFER OF INTEREST IN AGREEMENTS. The Purchaser has
the right to assign its interest under this Agreement, in whole or in part, to
the Trustee, as may be required to effect the purposes of the Pooling and
Servicing Agreement, without the consent of the Seller, and the assignee shall
succeed to the rights and obligations hereunder of the Purchaser. Any expense
reasonably incurred by or on behalf of the Purchaser or the Trustee in
connection with enforcing any obligations of the Seller under this Agreement
will be promptly reimbursed by the Seller.

                  (e)      EXAMINATION OF MORTGAGE FILES. Prior to the Closing
Date, the Seller shall either (i) deliver in escrow to the Purchaser, or to any
assignee, transferee or designee of the Purchaser for examination, the Mortgage
File pertaining to each Mortgage Loan or (ii) make

                                      -4-
<PAGE>

such Mortgage Files available to the Purchaser or to any assignee, transferee or
designee of the Purchaser for examination. Such examination may be made by the
Purchaser or the Trustee, and their respective designees, upon reasonable notice
to the Seller during normal business hours before the Closing Date and within 60
days after the Closing Date. If any such person makes such examination prior to
the Closing Date and identifies any Mortgage Loans that do not conform to the
requirements of the Purchaser as described in this Agreement, such Mortgage
Loans shall be deleted from the Closing Schedule. The Purchaser may, at its
option and without notice to the Seller, purchase all or part of the Mortgage
Loans without conducting any partial or complete examination. The fact that the
Purchaser or any person has conducted or has failed to conduct any partial or
complete examination of the Mortgage Files shall not affect the rights of the
Purchaser or any assignee, transferee or designee of the Purchaser to demand
repurchase or other relief as provided herein or under the Pooling and Servicing
Agreement.

                  Section 5. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE
SELLER AND THE ORIGINATOR.

                  (a)      The Seller hereby represents and warrants to the
Originator and the Purchaser, as of the date hereof and as of the Closing Date,
and covenants, that:

                           (i)      The Seller is duly organized, validly
         existing and in good standing as a corporation under the laws of the
         State of Delaware with full corporate power and authority to conduct
         its business as presently conducted by it to the extent material to the
         consummation of the transactions contemplated herein. The Seller has
         the full corporate power and authority to own the Mortgage Loans and to
         transfer and convey the Mortgage Loans to the Purchaser and has the
         full corporate power and authority to execute and deliver, engage in
         the transactions contemplated by, and perform and observe the terms and
         conditions of this Agreement.

                           (ii)     The Seller has duly authorized the
         execution, delivery and performance of this Agreement, has duly
         executed and delivered this Agreement, and this Agreement, assuming due
         authorization, execution and delivery by the Originator and the
         Purchaser, constitutes a legal, valid and binding obligation of the
         Seller, enforceable against it in accordance with its terms except as
         the enforceability thereof may be limited by bankruptcy, insolvency or
         reorganization or by general principles of equity.

                           (iii)    The execution, delivery and performance of
         this Agreement by the Seller (x) does not conflict and will not
         conflict with, does not breach and will not result in a breach of and
         does not constitute and will not constitute a default (or an event,
         which with notice or lapse of time or both, would constitute a default)
         under (A) any terms or provisions of the articles of incorporation or
         by-laws of the Seller, (B) any term or provision of any material
         agreement, contract, instrument or indenture, to which the Seller is a
         party or by which the Seller or any of its property is bound or (C) any
         law, rule, regulation, order, judgment, writ, injunction or decree of
         any court or governmental authority having jurisdiction over the Seller
         or any of its property and (y) does not create or impose and will not
         result in the creation or imposition of any lien, charge or encumbrance
         which would have a material adverse effect upon the Mortgage Loans or
         any documents or instruments evidencing or securing the Mortgage Loans.

                                      -5-
<PAGE>

                           (iv)     No consent, approval, authorization or order
         of, registration or filing with, or notice on behalf of the Seller to
         any governmental authority or court is required, under federal laws or
         the laws of the State of Delaware, for the execution, delivery and
         performance by the Seller of, or compliance by the Seller with, this
         Agreement or the consummation by the Seller of any other transaction
         contemplated hereby and by the Pooling and Servicing Agreement;
         provided, however, that the Seller makes no representation or warranty
         regarding federal or state securities laws in connection with the sale
         or distribution of the Certificates.

                           (v)      This Agreement does not contain any untrue
         statement of material fact or omit to state a material fact necessary
         to make the statements contained herein not misleading. The written
         statements, reports and other documents prepared and furnished or to be
         prepared and furnished by the Seller pursuant to this Agreement or in
         connection with the transactions contemplated hereby taken in the
         aggregate do not contain any untrue statement of material fact or omit
         to state a material fact necessary to make the statements contained
         therein not misleading.

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

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

                           (viii)   Immediately prior to the sale of the
         Mortgage Loans to the Purchaser as herein contemplated, the Seller will
         be the owner of the related Mortgage and the indebtedness evidenced by
         the related Mortgage Note, and, upon the payment to the Seller of the
         Mortgage Loan Purchase Price, the Purchaser shall have good and
         marketable title to each Mortgage Loan, each related Mortgage Note and
         the related Mortgage Files with respect thereto free and clear of all
         liens, pledges, charges, claims security interests, participations and
         other encumbrances.

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

                           (x)      The consummation of the transactions
         contemplated by this Agreement are in the ordinary course of business
         of the Seller, and the transfer,

                                      -6-
<PAGE>

         assignment and conveyance of the Mortgage Notes and the Mortgages by
         the Seller are not subject to the bulk transfer or any similar
         statutory provisions.

                           (xi)     The Seller has not dealt with any broker,
         investment banker, agent or other person, except for the Purchaser or
         any of its affiliates, that may be entitled to any commission or
         compensation in connection with the sale of the Mortgage Loans (except
         that an entity that previously financed the Seller's ownership of the
         Mortgage Loans may be entitled to a fee to release its security
         interest in the Mortgage Loans, which fee shall have been paid and
         which security interest shall have been released on or prior to the
         Closing Date).

                           (xii)    There is no litigation currently pending or,
         to the best of the Seller's knowledge without independent
         investigation, threatened against the Seller that would reasonably be
         expected to adversely affect the transfer of the Mortgage Loans, the
         issuance of the Certificates or the execution, delivery, performance or
         enforceability of this Agreement, or that would result in a material
         adverse change in the financial condition of the Seller.

                           (xiii)   As of the Closing Date, the Seller has no
         knowledge of any circumstances or condition with respect to the
         Mortgaged Property, the Mortgagor, the Mortgagor's credit standing or
         the Mortgage that can reasonably be expected to cause the Mortgage Loan
         to be an unacceptable investment, cause the Mortgage Loan to become
         delinquent, or adversely affect the value of the Mortgage Loan.

                           (xiv)    As of the Closing Date, the Mortgaged
         Property is lawfully occupied under applicable law; all inspections,
         licenses and certificates required to be made or issued with respect to
         all occupied portions of the Mortgaged Property and, with respect to
         the use and occupancy of the same, including but not limited to
         certificates of occupancy, have been made or obtained from the
         appropriate authorities.

                           (xv)     As of the Closing Date, the Mortgaged
         Property is in compliance with all applicable environmental laws
         pertaining to environmental hazards including, without limitation,
         asbestos, and neither the Originator nor any related seller of the
         Mortgage Loan nor, to the Originator's knowledge and the knowledge of
         any related seller of the Mortgage Loan, the related Mortgagor, has
         received any notice of any violation or potential violation of such
         law.

                           (xvi)    As of the Closing Date, there are no
         delinquent taxes, ground rents, water charges, sewer rents,
         assessments, insurance premiums, leasehold payments, including
         assessments payable in future installments or other outstanding charges
         affecting the related Mortgaged Property.

                           (xvii)   Each Mortgage Loan at the time it was made
         complied in all material respects with applicable local, state, and
         federal laws, including, but not limited to, all applicable predatory
         and abusive lending laws.

                                      -7-
<PAGE>

                           (xviii)  None of the mortgage loans are (i) "High
         Cost" as such term is defined in HOEPA or (ii) a reasonably equivalent
         provision as defined by the applicable predatory and abusive lending
         laws.

                           (xix)    To the best of the Seller's knowledge, with
         respect to the Originator's representations and warranties set forth in
         Section 6 (d), (e), (f), (g), (i), (j), (n), (o), (r), (z), (aa), (ff)
         and (hh) nothing has occurred since the Servicing Transfer Date which
         would cause such representation and warranty to be untrue in any
         material respect as of the Closing Date.

                           (xx)     No Mortgage Loan is a high cost loan or a
         covered loan, as applicable (as such terms are defined in Standard &
         Poor's LEVELS Version 5.6 Glossary Revised, Appendix E);

                           (xxi)    No Mortgage Loan originated on or after
         October 1, 2002 and before March 7, 2003 is secured by a Mortgaged
         Property located in the State of Georgia; and no Mortgage Loan
         originated on or after March 7, 2003 is a "high cost home loan" as
         defined under the Georgia Fair Lending Act;

                  (b)      The Originator hereby represents and warrants to the
Seller and the Purchaser, as of the date hereof and as of the Closing Date, and
covenants, that:

                           (i)      The Originator is a corporation duly
         organized and validly existing under the laws of California. The
         Originator has all licenses necessary to carry out its business as now
         being conducted, and is licensed and qualified to transact business in
         and is in good standing under the laws of each state in which any
         Mortgaged Property is located or is otherwise exempt under applicable
         law from such licensing or qualification or is otherwise not required
         under applicable law to effect such licensing or qualification and no
         demand for such licensing or qualification has been made upon the
         Originator by any such state, and in any event the Originator is in
         compliance with the laws of any such state to the extent necessary to
         ensure the enforceability of each Mortgage Loan. No licenses or
         approvals obtained by the Originator have been suspended or revoked by
         any court, administrative agency, arbitrator or governmental body and
         no proceedings are pending which might result in such suspension or
         revocation, which is reasonably likely to have a material adverse
         effect on any Mortgage Loan (including the Seller's interest therein)
         or is reasonable likely to have a material adverse effect on the
         transactions contemplated by this Agreement;

                           (ii)     The Originator has the full power and
         authority and legal right to execute, deliver and perform, and to enter
         into and consummate all transactions contemplated by this Agreement and
         to conduct its business as presently conducted; the Originator has duly
         authorized the execution, delivery and performance of this Agreement
         and any agreements contemplated hereby, has duly executed and delivered
         this Agreement, and any agreements contemplated hereby, and this
         Agreement and each Assignment of Mortgage to the Seller and any
         agreements contemplated hereby, constitute the legal, valid and binding
         obligations of the Originator, enforceable against it in accordance
         with their respective terms, except as such enforceability may be
         limited by

                                      -8-
<PAGE>

         bankruptcy, insolvency, moratorium, reorganization and similar laws,
         and by equitable principles affecting the enforceability of the rights
         of creditors; and all requisite corporate action has been taken by the
         Originator to make this Agreement and all agreements contemplated
         hereby valid and binding upon the Originator in accordance with their
         terms;

                           (iii)    Neither the execution and delivery of this
         Agreement, the sale of the Mortgage Loans to the Seller, the
         consummation of the transactions contemplated hereby, nor the
         fulfillment of or compliance with the terms and conditions of this
         Agreement has conflicted with or will conflict with any of the terms,
         conditions or provisions of the Originator's charter or by laws or
         materially conflict with or result in a material breach of any of the
         terms, conditions or provisions of any legal restriction or any
         agreement or instrument to which the Originator is now a party or by
         which it is bound, or constitute a default or result in an acceleration
         under any of the foregoing, or result in the material violation of any
         law, rule, regulation, order, judgment or decree to which the
         Originator or its property is subject;

                           (iv)     There is no litigation, suit, proceeding or
         investigation pending or, to the Originator's knowledge threatened, or
         any order or decree outstanding, which is reasonably likely to have a
         material adverse effect on the sale of the Mortgage Loans, the
         execution, delivery, performance or enforceability of this Agreement,
         or which is reasonably likely to have a material adverse effect on the
         financial condition of the Originator;

                           (v)      No consent, approval, authorization or order
         of any court or governmental agency or body is required for the
         execution, delivery and performance by the Originator of or compliance
         by the Originator with this Agreement, except for consents, approvals,
         authorizations and orders which have been obtained;

                           (vi)     The consummation of the transactions
         contemplated by this Agreement are in the ordinary course of business
         of the Originator, and the transfer, assignment and conveyance of the
         Mortgage Notes and the Mortgages by the Originator pursuant to this
         Agreement are not subject to bulk transfer or any similar statutory
         provisions in effect in any applicable jurisdiction;

                           (vii)    The origination, servicing and collection
         practices with respect to each Mortgage Note and Mortgage have been
         legal and in accordance with applicable laws and regulations, and in
         all material respects in accordance with Accepted Servicing Practices.
         The Originator further represents and warrants that no escrow payments
         are required under the related Mortgage Loan and no such payments are
         in the possession of, or under the control of, the Originator or its
         delegate; no escrow deposits or other charges or payments due under the
         Mortgage Note have been capitalized under any Mortgage or the related
         Mortgage Note; all Mortgage Interest Rate adjustments have been made in
         strict compliance with state and federal law and the terms of the
         related Mortgage Note; and any interest required to be paid pursuant to
         state and local law has been properly paid and credited;

                                      -9-
<PAGE>

                           (viii)   The Originator has not used selection
         procedures that identified the Mortgage Loans as being less desirable
         or valuable than other comparable mortgage loans in the Originator's
         portfolio at the related Closing Date;

                           (ix)     [Reserved];

                           (x)      The Originator is an approved seller of
         residential mortgage loans for Fannie Mae or Freddie Mac and HUD. The
         Originator is duly qualified, licensed, registered and otherwise
         authorized under all applicable federal, state and local laws and
         regulations and is in good standing to sell mortgage loans for Fannie
         Mae or Freddie Mac and no event has occurred which would make the
         Originator unable to comply with eligibility requirements or which
         would require notification to either Fannie Mae or Freddie Mac;

                           (xi)     The Originator does not believe, nor does it
         have any cause or reason to believe, that it cannot perform each and
         every covenant contained in this Agreement applicable to it;

                           (xii)    [Reserved];

                           (xiii)   [Reserved];

                           (xiv)    [Reserved];

                           (xv)     The Originator has not dealt with any
         broker, investment banker, agent or other person that may be entitled
         to any commission or compensation in connection with the sale of the
         Mortgage Loans to the Seller; and

                           (xvi)    The Originator is a member of MERS in good
         standing, and will comply in all material respects with the rules and
         procedures of MERS in performing its obligations under the Agreement.

                  Section 6. REPRESENTATIONS AND WARRANTIES OF THE ORIGINATOR
RELATING TO THE MORTGAGE LOANS.

                  The Originator hereby represents and warrants to the Purchaser
that as to each Mortgage Loan as of the Closing Date or the date on which the
Originator transferred the servicing for such Mortgage Loan (the "Servicing
Transfer Date") as noted below:

                  (a)      The information set forth in the Mortgage Loan
Schedule, including any diskette or other related data tapes, is true and
correct in all material respects;

                  (b)      The Mortgage creates a (A) first lien and first
priority security interest with respect to each Mortgage Loan which is indicated
by the Originator to be a first lien (as reflected on the Mortgage Loan
Schedule) or (B) second lien and second priority security interest with respect
to each Mortgage Loan which is indicated by the Originator to be a second lien
(as reflected on the Mortgage Loan Schedule), in either case, in the related
Mortgaged Property securing the related Mortgage Note;

                                      -10-
<PAGE>

                  (c)      The Originator has not advanced funds, or induced,
solicited or knowingly received any advance of funds from a party other than the
owner of the Mortgaged Property subject to the Mortgage, directly or indirectly,
for the payment of any amount required by the Mortgage Loan; no payment with
respect to each Mortgage Loan has been 30 days or more delinquent during the
preceding twelve-month period;

                  (d)      As of the Servicing Transfer Date, all taxes,
governmental assessments, insurance premiums, water, sewer and municipal
charges, leasehold payments or ground rents which previously became due and
owing were paid;

                  (e)      As of the Servicing Transfer Date, the terms of the
Mortgage Note and the Mortgage were not impaired, waived, altered or modified in
any respect, except by written instruments which were recorded to the extent any
such recordation was required by law. As of the Servicing Transfer Date, no
instrument of waiver, alteration or modification was executed, and no Mortgagor
was released, in whole or in part, from the terms thereof except in connection
with an assumption agreement and which assumption agreement was part of the
Mortgage File and the terms of which are reflected in the related Mortgage Loan
Schedule; the substance of any such waiver, alteration or modification has been
approved by the issuer of the title insurance policy, to the extent required by
the related policy;

                  (f)      The Mortgage Note and the Mortgage are not subject to
any valid right of rescission, set off, counterclaim or defense, including,
without limitation, the defense of usury, nor will the operation of any of the
terms of the Mortgage Note or the Mortgage, or the exercise of any right
thereunder, render the Mortgage Note or Mortgage unenforceable, in whole or in
part, or subject to any valid right of rescission, set off, counterclaim or
defense, including the defense of usury, and no such right of rescission, set
off, counterclaim or defense has been asserted with respect thereto; and as of
the Servicing Transfer Date, the Mortgagor was not a debtor in any state or
federal bankruptcy or insolvency proceeding at the time the Mortgage Loan was
originated;

                  (g)      All buildings or other customarily insured
improvements upon the Mortgaged Property are insured by a Qualified Insurer
against loss by fire and hazards of extended coverage, in an amount representing
coverage not less than the lesser of (i) the maximum insurable value of the
improvements securing such Mortgage Loans, and (ii) the greater of (a) either
(1) the outstanding principal balance of the Mortgage Loan with respect to each
Mortgage Loan which is indicated by the Originator to be a first lien (as
reflected on the Mortgage Loan Schedule) or (2) with respect to each second lien
Mortgage Loan, the sum of the outstanding principal balance of the first lien on
such Mortgage Loan and the outstanding principal balance of such second lien
Mortgage Loan, and (b) an amount such that the proceeds thereof shall be
sufficient to prevent the Mortgagor and/or the mortgagee from becoming a
co-insurer, but in no event greater than the maximum amount permitted under
applicable law. As of the Servicing Transfer Date, all such standard hazard
policies were in full force and effect and on the date of origination contained
a standard mortgagee clause naming the Originator and its successors in interest
and assigns as loss payee and such clause is still in effect and all premiums
due thereon have been paid. If required by the Flood Disaster Protection Act of
1973, as amended, the Mortgage Loan is covered by a flood insurance policy
meeting the requirements of the current guidelines of the Federal Insurance
Administration, in an amount not less than the

                                      -11-
<PAGE>

amount required by the Flood Disaster Protection Act of 1973, as amended. Such
policy was issued by a Qualified Insurer. The Mortgage obligates the Mortgagor
thereunder to maintain all such insurance at the Mortgagor's cost and expense,
and upon the Mortgagor's failure to do so, authorizes the holder of the Mortgage
to maintain such insurance at the Mortgagor's cost and expense and to seek
reimbursement therefor from the Mortgagor;

                  (h)      Any and all requirements of any federal, state or
local law including, without limitation, usury, truth in lending, real estate
settlement procedures, consumer credit protection, equal credit opportunity,
fair housing, or disclosure laws applicable to the Mortgage Loan have been
complied with in all material respects;

                  (i)      As of the Servicing Transfer Date, the Mortgage was
not satisfied, canceled or subordinated (other than the subordination of any
second lien Mortgage Loan to the related first lien), in whole or in part, or
rescinded, and the Mortgaged Property was not released from the lien of the
Mortgage, in whole or in part nor was any instrument executed that would effect
any such release, cancellation, subordination or rescission. The Originator has
not waived the performance by the Mortgagor of any action, if the Mortgagor's
failure to perform such action would cause the Mortgage Loan to be in default,
nor has the Originator waived any default resulting from any action or inaction
by the Mortgagor;

                  (j)      As of the Servicing Transfer Date, the related
Mortgage was a valid, subsisting, enforceable and perfected (A) first lien and
first priority security interest with respect to each Mortgage Loan which was
indicated by the Originator to be a first lien (as reflected on the Mortgage
Loan Schedule), or (B) second lien and second priority security interest with
respect to each Mortgage Loan which was indicated by the Originator to be a
second lien Mortgage Loan (as reflected on the Mortgage Loan Schedule), in
either case, on the Mortgaged Property including all buildings on the Mortgaged
Property and all installations and mechanical, electrical, plumbing, heating and
air conditioning systems affixed to such buildings, and all additions,
alterations and replacements consisting of real property or fixtures made at any
time with respect to the foregoing securing the Mortgage Note's original
principal balance. Such lien is free and clear of all adverse claims, liens and
encumbrances having priority over the first lien of the Mortgage subject only to
(1) the lien of non delinquent current real property taxes and assessments not
yet due and payable, (2) covenants, conditions and restrictions, rights of way,
easements and other matters of the public record as of the date of recording
which are acceptable to mortgage lending institutions generally and either (A)
which are referred to or otherwise considered in the appraisal made for the
originator of the Mortgage Loan, or (B) which do not adversely affect the
appraised value of the Mortgaged Property as set forth in such appraisal, (3)
other matters which are disclosed in the applicable title commitment or policy,
or to which like properties are commonly subject which do not materially
interfere with the benefits of the security intended to be provided by the
Mortgage or the use, enjoyment, value or marketability of the related Mortgaged
Property and (4) with respect to each Mortgage Loan which is indicated by the
Originator to be a second lien Mortgage Loan (as reflected on the Mortgage Loan
Schedule) a first lien on the Mortgaged Property. Any security agreement,
chattel mortgage or equivalent document related to and delivered in connection
with the Mortgage Loan establishes and creates a valid, subsisting, enforceable
and perfected (A) first lien and first priority security interest with respect
to each Mortgage Loan which is indicated by the Originator to be a first lien
(as reflected on the Mortgage Loan Schedule), or (B) second lien and second
priority security

                                      -12-
<PAGE>

interest with respect to each Mortgage Loan which is indicated by the Originator
to be a second lien Mortgage Loan (as reflected on the Mortgage Loan Schedule),
in either case, on the property described therein;

                  (k)      The Mortgage Note and the related Mortgage are
original and genuine and each is the legal, valid and binding obligation of the
maker thereof, enforceable in all respects in accordance with its terms subject
to bankruptcy, insolvency, moratorium, reorganization and other laws of general
application affecting the rights of creditors and by general equitable
principles and the Originator has taken all action necessary to transfer such
rights of enforceability to the Seller. All parties to the Mortgage Note and the
Mortgage had the legal capacity to enter into the Mortgage Loan and to execute
and deliver the Mortgage Note and the Mortgage. The Mortgage Note and the
Mortgage have been duly and properly executed by such parties. No fraud, error,
misrepresentation, gross negligence or similar occurrence with respect to a
Mortgage Loan has taken place on the part of the Originator or the Mortgagor,
or, on the part of any other party involved in the origination of the Mortgage
Loan. The proceeds of the Mortgage Loan have been fully disbursed and there is
no requirement for future advances thereunder, and any and all requirements as
to completion of any on site or off site improvements and as to disbursements of
any escrow funds therefor have been complied with. All costs, fees and expenses
incurred in making or closing the Mortgage Loan and the recording of the
Mortgage were paid or are in the process of being paid, and the Mortgagor is not
entitled to any refund of any amounts paid or due under the Mortgage Note or
Mortgage;

                  (l)      Either the Mortgagor is a natural person or the
Mortgagor is an inter-vivos trust acceptable to Fannie Mae. With respect to each
inter-vivos trust, holding title to the Mortgaged Property in such trust will
not diminish any rights as a creditor including the right to full title to the
Mortgaged Property in the event foreclosure proceedings are initiated;

                  (m)      Each Mortgage Loan is covered by an ALTA lender's
title insurance policy issued by a title insurer acceptable to Fannie Mae or
Freddie Mac and qualified to do business in the jurisdiction where the Mortgaged
Property is located, insuring (subject to the exceptions contained in (j)(1),
(2) and (3) above and, with respect to each Mortgage Loan which is indicated by
the Originator to be a second lien Mortgage Loan (as reflected on the Mortgage
Loan Schedule) clause (4)) the Originator, its successors and assigns, as to the
first (or, where applicable, second) priority lien of the Mortgage in the
original principal amount of the Mortgage Loan and, with respect to each
Adjustable Rate Mortgage Loan, against any loss by reason of the invalidity or
unenforceability of the lien resulting from the provisions of the Mortgage
providing for adjustment in the Mortgage Rate and Monthly Payment. Additionally,
such policy affirmatively insures ingress and egress to and from the Mortgaged
Property. Where required by applicable state law or regulation, the Mortgagor
has been given the opportunity to choose the carrier of the required mortgage
title insurance. The Originator, its successors and assigns, are the sole
insureds of such lender's title insurance policy. No claims have been made under
such lender's title insurance policy, and no prior holder of the related
Mortgage, including the Originator, has done, by act or omission, anything which
would impair the coverage of such lender's title insurance policy;

                  (n)      As of the Servicing Transfer Date, there was no
default, breach, violation or event of acceleration existing under the Mortgage
or the related Mortgage Note and, to the

                                      -13-
<PAGE>

best of Originator's knowledge, no event which, with the passage of time or with
notice and the expiration of any grace or cure period, would constitute a
default, breach, violation or event permitting acceleration; and neither the
Originator nor any prior mortgagee has waived any default, breach, violation or
event permitting acceleration. With respect to each Mortgage Loan which is
indicated by the Originator to be a second lien Mortgage Loan (as reflected on
the Mortgage Loan Schedule) (i) the first lien is in full force and effect, (ii)
there is no default, breach, violation or event of acceleration existing under
such first lien mortgage or the related mortgage note, (iii) to the best of
Originator's knowledge, no event which, with the passage of time or with notice
and the expiration of any grace or cure period, would constitute a default,
breach, violation or event of acceleration thereunder, and either (A) the first
lien mortgage contains a provision which allows or (B) applicable law requires,
the mortgagee under the second lien Mortgage Loan to receive notice of, and
affords such mortgagee an opportunity to cure any default by payment in full or
otherwise under the first lien mortgage;

                  (o)      As of the Servicing Transfer Date, there were no
mechanics' or similar liens or claims which have been filed for work, labor or
material (and no rights are outstanding that under law could give rise to such
liens) affecting the related Mortgaged Property which were or may have been
liens prior to or equal to the lien of the related Mortgage, unless insured
against by the related title insurance policy;

                  (p)      All improvements subject to the Mortgage which were
considered in determining the Appraised Value of the Mortgaged Property lie
wholly within the boundaries and building restriction lines of the Mortgaged
Property (and wholly within the project with respect to a condominium unit) and
no improvements on adjoining properties encroach upon the Mortgaged Property
except those which are insured against by the title insurance policy referred to
in clause (m) above and all improvements on the property comply un all material
respects with all applicable zoning and subdivision laws and ordinances;

                  (q)      The Mortgage Loan was originated by the Originator or
a third-party originator and sold to the Originator. The Mortgage Loan complies
with all the terms, conditions and requirements of the Originator's Underwriting
Standards in effect at the time of origination of such Mortgage Loan, subject to
exceptions thereto made in the ordinary course of business. The Mortgage Notes
and Mortgages (exclusive of any riders) are on forms generally acceptable to
Fannie Mae or Freddie Mac. The Mortgage Loan bears interest at the Mortgage Rate
set forth in the related Mortgage Loan Schedule, and Monthly Payments under the
Mortgage Note are due and payable on the first day of each month (subject to any
grace period set forth in the Mortgage Note). The Mortgage contains the usual
and enforceable provisions of the Originator at the time of origination for the
acceleration of the payment of the unpaid principal amount of the Mortgage Loan
if the related Mortgaged Property is sold without the prior consent of the
mortgagee thereunder, subject to bankruptcy, insolvency, moratorium,
reorganization and other laws of general application affecting the rights of
creditors and by general equitable principles;

                  (r)      As of the Servicing Transfer Date, the Mortgaged
Property was not subject to any material damage by waste, fire, earthquake,
windstorm, flood or other casualty. At origination of the Mortgage Loan there
was no proceeding pending or scheduled for the total or partial condemnation of
the Mortgaged Property; and as of the Closing Date, the Originator has

                                      -14-
<PAGE>

not received any notice of such a proceeding pending or scheduled. for the total
or partial condemnation of the Mortgaged Property;

                  (s)      The related Mortgage contains customary and
enforceable provisions such as to render the rights and remedies of the holder
thereof adequate for the realization against the Mortgaged Property of the
benefits of the security provided thereby. There is no homestead or other
exemption available to the Mortgagor which would interfere with the right to
sell the Mortgaged Property at a trustee's sale or the right to foreclose the
Mortgage;

                  (t)      If the Mortgage constitutes a deed of trust, a
trustee, authorized and duly qualified if required under applicable law to act
as such, has been properly designated and currently so serves and is named in
the Mortgage, and no fees or expenses are or will become payable by the Seller
to the trustee under the deed of trust, except in connection with a trustee's
sale or attempted sale after default by the Mortgagor;

                  (u)      The Mortgage File contains an appraisal of the
related Mortgaged Property signed prior to the final approval of the mortgage
loan application by a Qualified Appraiser, who had no interest, direct or
indirect, in the Mortgaged Property or in any loan made on the security thereof,
and whose compensation is not affected by the approval or disapproval of the
Mortgage Loan, and the appraisal and appraiser both satisfy the requirements of
Fannie Mae or Freddie Mac and Title XI of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 and the regulations promulgated
thereunder, all as in effect on the date the Mortgage Loan was originated;

                  (v)      Each of the Originator, any third-party originator,
any servicer and any intervening mortgagee which have had any interest in the
Mortgage, whether as mortgagee, assignee or otherwise, are (or, during the
period in which they held and disposed of such interest, were) (A) in compliance
with any and all applicable licensing requirements of the laws of the state
wherein the Mortgaged Property is located, and (B) (1) organized under the laws
of such state, or (2) qualified to do business in such state, or (3) federal
savings and loan associations or national banks or a Federal Home Loan Bank or
savings bank having principal offices in such state, or (4) not doing business
in such state or (5) not required to be so qualified;

                  (w)      The related Mortgage Note is not and has not been
secured by any collateral except the lien of the corresponding Mortgage and the
security interest of any applicable security agreement or chattel mortgage
referred to in (j) above;

                  (x)      The Mortgagor has received all disclosure materials
required by applicable law with respect to the making of such mortgage loans;

                  (y)      The Mortgage Loan does not contain "graduated
payment" features and does not have a shared appreciation or other contingent
interest feature; no Mortgage Loan contains any buydown provisions;

                  (z)      As of the Servicing Transfer Date, the Mortgagor was
not in bankruptcy;

                  (aa)     Principal payments on the Mortgage Loan commenced no
more than sixty (60) days after the funds were disbursed in connection with the
Mortgage Loan. The Mortgage

                                      -15-
<PAGE>

Loans have an original term to maturity of not more than 30 years, with interest
payable in arrears on the first day of each month. Each Mortgage Note, other
than with respect to a Balloon Mortgage Loan, requires a monthly payment which
is sufficient to fully amortize the original principal balance over the original
term thereof and to pay interest at the related Mortgage Rate. With respect to
each Balloon Mortgage Loan and Interest-Only Mortgage Loan, the Mortgage Note
requires a monthly payment which is sufficient to fully amortize the original
principal balance over the original term thereof and to pay interest at the
related Mortgage Rate and requires a final Monthly Payment substantially greater
than the preceding monthly payment which is sufficient to repay the remained
unpaid principal balance of the Balloon Mortgage Loan or the Interest-Only
Mortgage Loan, as applicable, as the Due Date of such monthly payment. No
Mortgage Loan contains terms or provisions which would result in negative
amortization;

                  (bb)     No Mortgage Loan is subject to a lender-paid mortgage
insurance policy;

                  (cc)     As to any Mortgage Loan which is not a MERS Mortgage
Loan, the Assignment of Mortgage delivered by the Originator, is in recordable
form and is acceptable for recording under the laws of the jurisdiction in which
the Mortgaged Property is located;

                  (dd)     The Mortgaged Property is located in the state
identified in the related Mortgage Loan Schedule and consists of a single parcel
of real property with a detached single family residence erected thereon, or a
townhouse, or a two-to four-family dwelling, or an individual condominium unit
in a condominium project, or an individual unit in a planned unit development or
a de minimis planned unit development, provided, however, that no residence or
dwelling is a single parcel of real property with a cooperative housing
corporation erected thereon, or a mobile home. As of the date of origination, no
portion of the Mortgaged Property was used for commercial purposes (other than a
de minimis use), and since the date or origination no portion of the Mortgaged
Property has been used for commercial purposes (other than a de minimis use);

                  (ee)     Except as set forth on the Mortgage Loan Schedule,
none of the Mortgage Loans are subject to a Prepayment Penalty. For any Mortgage
Loan subject to a Prepayment Penalty, the Mortgage Loan Schedule accurately sets
forth the term and amount of such Prepayment Penalty;

                  (ff)     As of the Servicing Transfer Date, the Mortgaged
Property was lawfully occupied under applicable law, and all inspections,
licenses and certificates required to be made or issued with respect to all
occupied portions of the Mortgaged Property and, with respect to the use and
occupancy of the same, including but not limited to certificates of occupancy
and fire underwriting certificates, have been made or obtained from the
appropriate authorities;

                  (gg)     If the Mortgaged Property is a condominium unit or a
planned unit development (other than a de minimis planned unit development), or
stock in a cooperative housing corporation, such condominium, cooperative or
planned unit development project meets the eligibility requirements of Fannie
Mae and Freddie Mac;

                  (hh)     As of the Servicing Transfer Date, there was no
pending action or proceeding directly involving the Mortgaged Property in which
compliance with any

                                      -16-
<PAGE>

environmental law, rule or regulation was an issue; the Originator has received
no notice of any violation of any environmental law, rule or regulation with
respect to the Mortgaged Property;

                  (ii)     The Mortgagor has not notified the Originator
requesting relief under the Servicemembers Relief Act, and the Originator has no
knowledge of any relief requested or allowed to the Mortgagor under the
Servicemembers Relief Act;

                  (jj)     As of the related Closing Date, no Mortgage Loan was
in construction or rehabilitation status or has facilitated the trade-in or
exchange of a Mortgaged Property;

                  (kk)     No action has been taken or failed to be taken on or
prior to the related Closing Date which has resulted or will result in an
exclusion from, denial of, or defense to coverage under any insurance policy
related to a Mortgage Loan (including, without limitation, any exclusions,
denials or defenses which would limit or reduce the availability of the timely
payment of the full amount of the loss otherwise due thereunder to the insured)
whether arising out of actions, representations, errors, omissions, negligence,
or fraud, or for any other reason under such coverage;

                  (ll)     Except with respect to each Mortgage Loan identified
on the Mortgage Loan Schedule as a correspondent loan, the Mortgage Loan was
originated by a mortgagee approved by the Secretary of Housing and Urban
Development pursuant to sections 203 and 211 of the National Housing Act, a
savings and loan association, a savings bank, a commercial bank, credit union,
insurance Originator or similar institution which is supervised and examined by
a federal or state authority. With respect to each Mortgage Loan identified on
the Mortgage Loan Schedule as a correspondent loan, the Mortgage Loan was
re-underwritten by the Originator prior to Originator's purchase thereof;

                  (mm)     [reserved];

                  (nn)     With respect to any broker fees collected and paid on
any of the Mortgage Loans, all broker fees have been properly assessed to the
Mortgagor and no claims will arise as to broker fees that are double charged and
for which the Mortgagor would be entitled to reimbursement;

                  (oo)     With respect to any Mortgage Loan as to which an
affidavit has been delivered to the Seller certifying that the original Mortgage
Note has been lost or destroyed and not been replaced, if such Mortgage Loan is
subsequently in default, the enforcement of such Mortgage Loan will not be
materially adversely affected by the absence of the original Mortgage Note;

                  (pp)     Each Mortgage Loan constitutes a qualified mortgage
under Section 860G(a)(3)(A) of the Code and Treasury Regulations Section
1.860G-2(a)(1);

                  (qq)     [reserved];

                  (rr)     [reserved];

                  (ss)     [reserved];

                                      -17-
<PAGE>

                  (tt)     No Mortgage Loan had a Loan-to-Value Ratio at the
time of origination of more than 100%;

                  (uu)     None of the Mortgage Loans are subject to, covered
by, or in violation of, the Home Ownership and Equity Protection Act of 1994
("HOEPA") or any comparable state law;

                  (vv)     None of the proceeds of any Mortgage Loan were used
to finance single-premium credit insurance policies;

                  (ww)     Any principal advances made to the Mortgagor prior to
the related Closing Date have been consolidated with the outstanding principal
amount secured by the Mortgage, and the secured principal amount, as
consolidated, bears a single interest rate and single repayment term. The lien
of the Mortgage securing the consolidated principal amount is expressly insured
as having (A) first lien priority with respect to each Mortgage Loan which is
indicated by the Originator to be a first lien (as reflected on the Mortgage
Loan Schedule), or (B) second lien priority with respect to each Mortgage Loan
which is indicated by the Originator to be a second lien Mortgage Loan (as
reflected on the Mortgage Loan Schedule), in either case, by a title insurance
policy, an endorsement to the policy insuring the mortgagee's consolidated
interest or by other title evidence acceptable to Fannie Mae and Freddie Mac.
The consolidated principal amount does not exceed the original principal amount
of the Mortgage Loan;

                  (xx)     Interest on each Mortgage Loan is calculated on the
basis of a 360-day year consisting of twelve 30-day months;

                  (yy)     Except with respect to approximately 0.03% of the
Mortgage Loans by outstanding principal balance, no first lien Mortgage Loan is
a Balloon Mortgage Loan; Except with respect to approximately 98.70% of the
Mortgage Loans by outstanding principal balance, no second lien Mortgage Loan is
a Balloon Mortgage Loan;

                  (zz)     With respect to each MERS Mortgage Loan, a MIN has
been assigned by MERS and such MIN is accurately provided on the related
Mortgage Loan Schedule. The related assignment of Mortgage to MERS has been duly
and properly recorded;

                  (aaa)    With respect to each MERS Mortgage Loan, the
Originator has not received any notice of liens or legal actions with respect to
such Mortgage Loan and no such notices have been electronically posted by MERS;

                  (bbb)    Any Mortgaged Property that is considered
manufactured housing shall be legally classified as real property, is
permanently affixed to a foundation and must assume the characteristics of
site-built housing and must otherwise conform to the requirements (A) for
inclusion in residential mortgage backed securities transactions rated by
Standard & Poor's and (B) of Fannie Mae and Freddie Mac, including, but not
limited to, the requirements that (i) the related Mortgage Note or contract, as
applicable, be secured by a "single family residence" within the meaning of
Section 25(e)(10) of the Code, (ii) the fair market value of the manufactured
home securing each related Mortgage Note or contract, as applicable, was at
least equal to 80% of the original principal balance of such Mortgage Note or
contract, as applicable,

                                      -18-
<PAGE>

and (iii) each related Mortgage Note or contract, as applicable, is a "qualified
mortgage" under Section 860G(a)(3) of the Code;

                  (ccc)    [reserved];

                  (ddd)    The Originator has complied with all applicable
anti-money laundering laws and regulations, including without limitation the USA
Patriot Act of 2001 to the extent applicable to the Originator (collectively,
the "Anti-Money Laundering Laws");

                  (eee)    No Mortgage Loan originated on or after October 1,
2002 and before March 7, 2003 is secured by a Mortgaged Property located in the
State of Georgia; and no Mortgage Loan originated on or after March 7, 2003 is a
"high cost home loan" as defined under the Georgia Fair Lending Act;

                  (fff)    With respect to each Mortgage Loan which is a second
lien Mortgage Loan (i) if the related first lien provides for negative
amortization, the LTV was calculated at the maximum principal balance of such
first lien that could result upon application of such negative amortization
feature, and (ii) either no consent for the Mortgage Loan is required by the
holder of the first lien or such consent has been obtained and is contained in
the Mortgage File;

                  (ggg)    No Mortgage Loan originated before October 1, 2002
Mortgage Loans has a Prepayment Charge term longer than five years after its
origination and no Mortgage Loan originated on or after October 1, 2002 has a
Prepayment Charge term longer than three years after its origination;

                  (hhh)    Each Mortgage Loan is in compliance with the anti
predatory lending eligibility for purchase requirements of Fannie Mae's Selling
Guide (this representation and warranty shall be construed only to mean that
none of the representations and warranties specified in clauses (iii) through
(ppp) below have been breached);

                  (iii)    No borrower was encouraged or required to select a
Mortgage Loan product of the same documentation type offered by the Originator
which is a higher cost product designed for less creditworthy borrowers, unless
at the time of the Mortgage Loan's origination, such borrower did not qualify
taking into account credit history and debt to income ratios for a lower cost
credit product then offered by the Originator or any affiliate of the
Originator. If, at the time of loan application, the borrower may have qualified
for a lower cost credit product of the same documentation type then offered by
any mortgage lending affiliate of the Originator, the Originator referred the
borrower's application to such affiliate for underwriting consideration;

                  (jjj)    The methodology used in underwriting the extension of
credit for each Mortgage Loan employs objective mathematical principles which
relate the borrower's income, assets and liabilities to the proposed payment and
such underwriting methodology does not rely on the extent of the borrower's
equity in the collateral as the principal determining factor in approving such
credit extension. Such underwriting methodology is designed to determine, among
other things, that at the time of origination the borrower had a reasonable
ability to make timely payments on the Mortgage Loan;

                                      -19-
<PAGE>

                  (kkk)    With respect to any Mortgage Loan that contains a
provision permitting imposition of a premium upon a prepayment prior to
maturity: (i) prior to such Mortgage Loan's origination, the borrower agreed to
such premium in exchange for a monetary benefit (i.e., such Mortgage Loan would
have been more costly (including but not limited to a rate or fee increase) if
it did not contain such prepayment premium) (ii) prior to such Mortgage Loan's
origination, the borrower was offered the option of obtaining a Mortgage Loan
that did not require payment of such a premium; provided, that such offer may
have been evidenced by the Originator's rate sheet/pricing grid relating to such
Mortgage Loan, which provided that the Mortgage Loan had a full prepayment
premium buy out pricing adjustment available; and (iii) the prepayment premium
is disclosed to the borrower in the loan documents pursuant to applicable state
and federal law;

                  (lll)    No borrower was required to purchase any credit life,
disability, accident or health insurance product as a condition of obtaining the
extension of credit. No borrower obtained a prepaid single premium credit life,
disability, accident or health insurance policy in connection with the
origination of the Mortgage Loan;

                  (mmm)    No Mortgage Loan is a high cost loan or a covered
loan, as applicable (as such terms are defined in Standard & Poor's LEVELS
Version 5.6 Glossary Revised, Appendix E);

                  (nnn)    All fees and charges (including finance charges) and
whether or not financed, assessed, collected or to be collected in connection
with the origination and servicing of each Mortgage Loan has been disclosed in
writing to the borrower in accordance with applicable state and federal law and
regulation;

                  (ooo)    No Mortgage Loan (a) is secured by property located
in the State of New York; (b) had an original principal balance of $300,000 or
less, and (c) has an application date on or after April 1, 2003, the terms of
which loan equal or exceed either the APR or the points and fees threshold for
"high cost home loans," as defined in Section 6 L of the New York State Banking
Law;

                  (ppp)    The information set forth in the Prepayment Charge
Schedule (including the Prepayment Charge Summary attached thereto) is complete,
true and correct in all material respects on the date or dates when such
information is furnished and each Prepayment Charge is permissible, enforceable
and collectible in accordance with its terms (except to the extent that the
enforceability or collectibility thereof may be limited by bankruptcy,
insolvency, moratorium, receivership and other similar laws affecting creditor's
rights generally) under all applicable federal, state and local laws. Each
Prepayment Penalty was originated in compliance with all applicable federal,
state and local laws;

                  (qqq)    Each Mortgage Loan at the time it was made complied
in all material respects with applicable local, state, and federal laws,
including, but not limited to, all applicable predatory and abusive lending
laws;

                  (rrr)    None of the Mortgage Loans are classified as a (a)
"high cost" loan under the HOEPA, (b) "High Cost Home Loan" as defined in New
York Banking Law 6-1, (c)

                                      -20-
<PAGE>

"high-cost home loan" as defined in Kentucky HB 287 or (d) "high cost",
"predatory" or "threshold" loan under any other applicable federal, state or
local law, including any predatory or abusive lending laws, and no Mortgage Loan
is in violation of any state law or ordinance similar to HOEPA;

                  (sss)    (a) No Mortgage Loan underlying the Certificates is
classified as a high cost mortgage loan under HOEPA; and (b) no Mortgage Loan in
the trust is a "high cost home," "covered," (excluding home loans defined as
"covered home loans" pursuant to clause (1) of the definition of that term in
the New Jersey Home Ownership Security Act of 2002), "high risk home" or
"predatory" loan under any other applicable state, federal or local law (or a
similarly classified loan using different terminology under a law imposing
heightened regulatory scrutiny or additional legal liability for residential
mortgage loans having high interest rates, points and/or fees);

                  (ttt)    All points and fees related to each Mortgage Loan
were disclosed in writing to the borrower in accordance with applicable state
and federal law and regulation. Except in the case of a Mortgage Loan with an
original principal amount of less than $60,000 which would have resulted in an
unprofitable origination, no borrower was charged "points and fees" (whether or
not financed) in an amount greater than 5% of the principal amount of such loan,
such 5% limitation is calculated in accordance with Fannie Mae's anti-predatory
lending requirements as set forth in the Fannie Mae Selling Guide (i.e., for
this purpose, points and fees do not include bona fide discount points; fees
paid for actual services rendered in connection with the origination of the
mortgage, such as attorneys' fees, notary's fees and fees paid for property
appraisals, credit reports, surveys, title examinations and extracts, flood and
tax certifications, and home inspections; the cost of mortgage insurance or
credit-risk price adjustments; the cost of title, hazard and flood insurance
policies; state and local transfer taxes or fees; escrow deposits for the future
payment of taxes and insurance premiums; and other miscellaneous fees and
charges that, in total, do not exceed 0.25% of the loan amount).

                  Section 7. REPURCHASE OBLIGATION FOR DEFECTIVE DOCUMENTATION
AND FOR BREACH OF REPRESENTATION AND WARRANTY.

                  (a)      The representations and warranties contained in
Section 6 shall not be impaired by any review and examination of loan files or
other documents evidencing or relating to the Mortgage Loans or any failure on
the part of the Seller or the Purchaser to review or examine such documents and
shall inure to the benefit of any assignee, transferee or designee of the
Purchaser, including the Trustee for the benefit of holders of the Certificates.

                  With respect to the representations and warranties contained
herein that are made to the knowledge or the best knowledge of the Seller or as
to which the Seller has no knowledge, if it is discovered that the substance of
any such representation and warranty is inaccurate and the inaccuracy materially
and adversely affects the value of the related Mortgage Loan, or the interest
therein of the Purchaser or the Purchaser's assignee, designee or transferee,
then notwithstanding the Seller's lack of knowledge with respect to the
substance of such representation and warranty being inaccurate at the time the
representation and warranty was made, such inaccuracy shall be deemed a breach
of the applicable representation and warranty and the Seller shall take such
action described in the following paragraphs of this Section 3.03 in

                                      -21-
<PAGE>

respect of such Mortgage Loan. Upon discovery by the Seller, the Purchaser or
any assignee, transferee or designee of the Purchaser of any materially
defective document in, or that any material document was not transferred by the
Seller (as listed on the Trustee's Initial Certification) as part of any
Mortgage File, or of a breach of any of the representations and warranties
contained in Section 6 that materially and adversely affects the value of any
Mortgage Loan or the interest therein of the Purchaser or the Purchaser's
assignee, transferee or designee, the party discovering such breach shall give
prompt written notice to the Originator and the Seller; provided, that a breach
of the representations and warranties made in Section 6(uu), (vv), (bbb), (ccc),
(eee), (ggg) and (sss) shall be deemed to materially and adversely affects the
value of any Mortgage Loan or the interest therein of the Certificateholders.
Within sixty (60) days of its discovery or its receipt of notice of any such
missing documentation that was not transferred by the Seller as described above,
or of materially defective documentation, or of any such breach of a
representation and warranty, the Originator or the Seller, as applicable,
promptly shall deliver such missing document or cure such defect or breach in
all material respects or, in the event the Originator or the Seller, as
applicable, cannot deliver such missing document or cannot cure such defect or
breach, the Originator or the Seller, as applicable, shall, within ninety (90)
days of its discovery or receipt of notice, either (i) repurchase the affected
Mortgage Loan at the Purchase Price (as defined in the Pooling and Servicing
Agreement) or (ii) pursuant to the provisions of the Pooling and Servicing
Agreement, cause the removal of such Mortgage Loan from the Trust Fund and
substitute one or more Qualified Substitute Mortgage Loans. The Originator or
the Seller, as applicable, shall amend the Closing Schedule to reflect the
withdrawal of such Mortgage Loan from the terms of this Agreement and the
Pooling and Servicing Agreement. The Originator or the Seller, as applicable,
shall deliver to the Purchaser such amended Closing Schedule and shall deliver
such other documents as are required by this Agreement or the Pooling and
Servicing Agreement within five (5) days of any such amendment. Any repurchase
pursuant to this Section 7(a) shall be accomplished by transfer to an account
designated by the Purchaser of the amount of the Purchase Price in accordance
with Section 2.03 of the Pooling and Servicing Agreement. Any repurchase
required by this Section shall be made in a manner consistent with Section 2.03
of the Pooling and Servicing Agreement.

                  Notwithstanding the foregoing, to the extent a representation
or warranty of the Seller regarding the Mortgage Loans has been breached and the
circumstance constituting the breach also constitutes a breach of a like
representation or warranty given by the Originator as of an earlier date, the
Purchaser's remedy hereunder shall be solely against the Originator and not the
Seller.

                  Notwithstanding the foregoing, within 90 days of the earlier
of discovery by the Originator or receipt of notice by the Originator of the
breach of the representation of the Originator set forth in Section 6(ppp) above
which materially and adversely affects the interests of the Holders of the Class
P Certificates in any Prepayment Charge, the Originator shall pay the amount of
the scheduled Prepayment Charge, for the benefit of the Holders of the Class P
Certificates by remitting such amount to the Servicer for deposit into the
Collection Account, net of any amount previously collected by the Servicer or
paid by the Servicer, for the benefit of the Holders of the Class P Certificates
in respect of such Prepayment Charge.

                  (b)      The Originator hereby agrees that, in the event that
any Mortgage Loan prepays in full on or prior to the last day of the third full
month following the date on which the

                                      -22-
<PAGE>

related Mortgage Loan was purchased from the Originator by the Seller pursuant
to the Master Seller's Purchase and Warranties Agreement, dated February 1, 2003
(the "Master Agreement") between the Seller and the Originator, it will pay to
the Seller, with respect to each Mortgage Loan repurchased, an amount (such
amount, a "Repurchase Premium") equal to the product of (a) the excess of the
Purchase Price percentage paid by the Seller to the Purchaser pursuant to the
Master Agreement over 100% and (b) the Stated Principal Balance of such Mortgage
Loan as of the date of such prepayment in full; provided, that, the amount
reimbursed to the Seller shall be reduced by the amount of any Prepayment
Charges that are legally enforceable with respect to such Mortgage Loan.

                  (c)      It is understood and agreed that the obligations of
the Originator or the Seller, as applicable, set forth in this Section 7 to cure
or repurchase a defective Mortgage Loan constitute the sole remedies of the
Purchaser against the Originator or the Seller, as applicable, respecting a
missing document or a breach of the representations and warranties contained in
Section 6.

                  Section 8. CLOSING; PAYMENT FOR THE MORTGAGE LOANS. The
closing of the purchase and sale of the Mortgage Loans shall be held at the New
York City office of Thacher Proffitt & Wood LLP at 10:00 a.m. New York City time
on the Closing Date.

                  The closing shall be subject to each of the following
conditions:

                  (a)      All of the representations and warranties of the
Seller under this Agreement shall be true and correct in all material respects
as of the date as of which they are made and no event shall have occurred which,
with notice or the passage of time, would constitute a default under this
Agreement;

                  (b)      All of the representations and warranties of the
Originator under this Agreement shall be true and correct in all material
respects as of the date as of which they are made and no event shall have
occurred which, with notice or the passage of time, would constitute a default
under this Agreement;

                  (c)      The Purchaser shall have received, or the attorneys
of the Purchaser shall have received in escrow (to be released from escrow at
the time of closing), all Closing Documents as specified in Section 9 of this
Agreement, in such forms as are agreed upon and acceptable to the Purchaser,
duly executed by all signatories other than the Purchaser as required pursuant
to the respective terms thereof;

                  (d)      The Seller shall have delivered or caused to be
delivered and released to the Purchaser or to its designee, all documents
(including without limitation, the Mortgage Loans) required to be so delivered
by the Purchaser pursuant to Section 2.01 of the Pooling and Servicing
Agreement; and

                  (e)      All other terms and conditions of this Agreement and
the Pooling and Servicing Agreement shall have been complied with.

                  Subject to the foregoing conditions, the Purchaser shall
deliver or cause to be delivered to the Seller on the Closing Date, against
delivery and release by the Seller to the

                                      -23-
<PAGE>

Trustee of all documents required pursuant to the Pooling and Servicing
Agreement, the Mortgage Loan Purchase Price for the Mortgage Loans as specified
in Section 3 of this Agreement.

                  Section 9. CLOSING DOCUMENTS. Without limiting the generality
of Section 8 hereof, the closing shall be subject to delivery of each of the
following documents:

                  (a)      A Secretary's Certificate of the Seller, dated the
Closing Date, in form satisfactory to and upon which the Originator, the
Purchaser and UBS Securities LLC (the "Underwriter") may rely, and attached
thereto copies of the certificate of incorporation, by-laws and certificate of
good standing of the Seller under the laws of Delaware;

                  (b)      An Opinion of Counsel of the Seller, dated the
Closing Date, in form satisfactory to and addressed to the Underwriter;

                  (c)      An Officer's Certificate of the Originator, dated the
Closing Date, in form satisfactory to and upon which the Seller, the Purchaser
and the Underwriter may rely, and attached thereto copies of the certificate of
incorporation, by-laws and certificate of good standing of the Originator under
the laws of its state of incorporation;

                  (d)      An opinion of Counsel of the Originator, dated the
Closing Date, in form satisfactory to and addressed to the Underwriter;

                  (e)      Such opinions of counsel as the Rating Agencies,
Trustee may request in connection with the sale of the Mortgage Loans by the
Seller to the Purchaser or the Seller's execution and delivery of, or
performance under, this Agreement;

                  (f)      A letter from Deloitte & Touche, certified public
accountants, to the effect that they have performed certain specified procedures
as a result of which they determined that certain information of an accounting,
financial or statistical nature set forth in the Prospectus Supplement contained
under the captions "Summary--Mortgage Loans," "Risk Factors," (to the extent of
information concerning the Mortgage Loans contained therein) and "Description of
the Mortgage Loans" agrees with the records of the Originator;

                  (g)      Such further information, certificates, opinions and
documents as the Purchaser or the Underwriter may reasonably request.

                  Section 10. COSTS. The Seller shall pay (or shall reimburse
the Purchaser or any other Person to the extent that the Purchaser or such other
Person shall pay) the fees and expenses of the Seller's accountants and
attorneys and the costs and expenses incurred in connection with obtaining the
documents referred to in Sections 9(a), 9(b), 9(e) and 9(f), the costs and
expenses of printing (or otherwise reproducing) and delivering this Agreement,
the Pooling and Servicing Agreement, the Certificates, the prospectus and
Prospectus Supplement, and any private placement memorandum relating to the
Certificates and other related documents, the initial fees, costs and expenses
of the Trustee, the fees and expenses of the Purchaser's counsel in connection
with the preparation of all documents relating to the securitization of the
Mortgage Loans, the filing fee charged by the Securities and Exchange Commission
for registration of the Certificates and the fees charged by any rating agency
to rate the Certificates.

                                      -24-
<PAGE>

All other costs and expenses in connection with the transactions contemplated
hereunder shall be borne by the party incurring such expense.

                  Section 11. [RESERVED].

                  Section 12. INDEMNIFICATION. The Originator shall indemnify
and hold harmless each of (i) the Purchaser, (ii) the Underwriter, (iii) the
Person, if any, to which the Purchaser assigns its rights in and to a Mortgage
Loan and each of their respective successors and assigns and (iv) each person,
if any, who controls the Purchaser within the meaning of Section 15 of the
Securities Act of 1933, as amended (the "1933 Act") ((i) through (iv)
collectively, the "Indemnified Party") against any and all losses, claims,
expenses, damages or liabilities to which the Indemnified Party may become
subject, under the 1933 Act or otherwise, insofar as such losses, claims,
expenses, damages or liabilities (or actions in respect thereof) arise out of or
are based upon (a) any untrue statement or alleged untrue statement of any
material fact contained in the Prospectus Supplement under the caption "The
Originator--Underwriting Standards of the Originator" (such information, the
"WMC Information"), or the omission or the alleged omission by the Originator to
state therein the material fact necessary in order to make the statements
therein not misleading and, with respect to any private placement memorandum,
computational material, marketing material or any information provided by the
Underwriter to a purchaser of the Certificates, any information of a comparable
nature, or (ii) the data files containing information with respect to the
Mortgage Loans as transmitted by modem to the Purchaser by the Originator or any
of its affiliates (as such transmitted information may have been amended in
writing by the Originator or any of its affiliates with the written consent of
the Purchaser subsequent to such transmission) or any data that was correctly
and accurately derived therefrom (it being understood that the Originator shall
have no liability hereunder resulting from the aggregation or manipulation by
the Seller or any Affiliate thereof of information in the Prospectus Supplement
derived from information in the Mortgage Loan Schedule that is otherwise
accurate information) or (b) any representation, warranty or covenant made by
the Originator or any affiliate of the Originator herein, other than the
representations and warranties found in Section 6(hhh), (iii), (jjj), (kkk),
(lll), (mmm) and (nnn), on which the Purchaser has relied, being, or alleged to
be, untrue or incorrect; provided, however, that to the extent that any such
losses, claims, expenses, damages or liabilities to which the Indemnified Party
may become subject arise out of or are based upon both (1) statements,
omissions, representations, warranties or covenants of the Originator described
in clause (a) or (b) above and (2) any other factual basis, the Originator shall
indemnify and hold harmless the Indemnified Party only to the extent that the
losses, claims, expenses, damages, or liabilities of the person or persons
asserting the claim are determined to rise from or be based upon matters set
forth in clause (1) above and do not result from the gross negligence or willful
misconduct of such Indemnified Party. This indemnity shall be in addition to any
liability that the Originator may otherwise have.

                  Section 13. MANDATORY DELIVERY; GRANT OF SECURITY INTEREST.
The sale and delivery on the Closing Date of the Mortgage Loans described on the
Mortgage Loan Schedule in accordance with the terms and conditions of this
Agreement is mandatory. It is specifically understood and agreed that each
Mortgage Loan is unique and identifiable on the date hereof and that an award of
money damages would be insufficient to compensate the Purchaser for the losses
and damages incurred by the Purchaser in the event of the Seller's failure to
deliver the Mortgage Loans on or before the Closing Date. The Seller hereby
grants to the Purchaser a lien

                                      -25-
<PAGE>

on and a continuing security interest in the Seller's interest in each Mortgage
Loan and each document and instrument evidencing each such Mortgage Loan to
secure the performance by the Seller of its obligation hereunder, and the Seller
agrees that it holds such Mortgage Loans in custody for the Purchaser, subject
to the Purchaser's (i) right, prior to the Closing Date, to reject any Mortgage
Loan to the extent permitted by this Agreement, and (ii) obligation to deliver
or cause to be delivered the consideration for the Mortgage Loans pursuant to
Section 8 hereof. Any Mortgage Loans rejected by the Purchaser shall
concurrently therewith be released from the security interest created hereby.
All rights and remedies of the Purchaser under this Agreement are distinct from,
and cumulative with, any other rights or remedies under this Agreement or
afforded by law or equity and all such rights and remedies may be exercised
concurrently, independently or successively.

                  Notwithstanding the foregoing, if on the Closing Date, each of
the conditions set forth in Section 8 hereof shall have been satisfied and the
Purchaser shall not have paid or caused to be paid the Mortgage Loan Purchase
Price, or any such condition shall not have been waived or satisfied and the
Purchaser determines not to pay or cause to be paid the Mortgage Loan Purchase
Price, the Purchaser shall immediately effect the re-delivery of the Mortgage
Loans, if delivery to the Purchaser has occurred, and the security interest
created by this Section 12 shall be deemed to have been released.

                  Section 14. NOTICES. All demands, notices and communications
hereunder shall be in writing and shall be deemed to have been duly given if
personally delivered to or mailed by registered mail, postage prepaid, or
transmitted by fax and, receipt of which is confirmed by telephone, if to the
Purchaser, addressed to the Purchaser at 1285 Avenue of the Americas, New York,
New York 10019, facsimile number (212) 713-7999, Attention: Glenn McIntyre, or
such other address as may hereafter be furnished to the Seller and the
Originator in writing by the Purchaser; if to the Seller, addressed to the
Seller at 1285 Avenue of the Americas, New York, New York 10019, facsimile
number (212) 713-7999, Attention: Glenn McIntyre, or to such other address as
the Seller may designate in writing to the Purchaser and the Originator; and if
to the Originator, addressed to WMC Mortgage Corp. at 6320 Canoga Avenue,
Woodland Hills, California 91367, facsimile number (818) 592-2605, Attention:
George Eshaghian, or such other address as may hereafter be furnished to the
Seller and the Purchaser in writing by the Originator.

                  Section 15. SEVERABILITY OF PROVISIONS. Any part, provision,
representation or warranty of this Agreement that is prohibited or that is held
to be void or unenforceable shall be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions
hereof. Any part, provision, representation or warranty of this Agreement that
is prohibited or unenforceable or is held to be void or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction as to any Mortgage Loan shall not invalidate or render
unenforceable such provision in any other jurisdiction. To the extent permitted
by applicable law, the parties hereto waive any provision of law which prohibits
or renders void or unenforceable any provision hereof.

                  Section 16. AGREEMENT OF PARTIES. The Originator, the Seller
and the Purchaser each agree to execute and deliver such instruments and take
such actions as either of

                                      -26-
<PAGE>

the others may, from time to time, reasonably request in order to effectuate the
purpose and to carry out the terms of this Agreement and the Pooling and
Servicing Agreement.

                  Section 17. SURVIVAL. (a) The Seller agrees that the
representations, warranties and agreements made by it herein and in any
certificate or other instrument delivered pursuant hereto shall be deemed to be
relied upon by the Purchaser, notwithstanding any investigation heretofore or
hereafter made by the Purchaser or on its behalf, and that the representations,
warranties and agreements made by the Seller herein or in any such certificate
or other instrument shall survive the delivery of and payment for the Mortgage
Loans and shall continue in full force and effect, notwithstanding any
restrictive or qualified endorsement on the Mortgage Notes and notwithstanding
subsequent termination of this Agreement, the Pooling and Servicing Agreement or
the Trust Fund. (b) the Originator agrees that the representations, warranties
and agreements made by it herein and in any certificate or other instrument
delivered pursuant hereto shall be deemed to be relied upon by the Seller and
the Purchaser notwithstanding any investigation heretofore or hereafter made by
the Seller or the Purchaser or on the behalf of either of them, and that the
representations, warranties and agreements made by the Originator herein or in
any such certificate shall continue in full force and effect, notwithstanding
subsequent termination of this Agreement, the Pooling and Servicing Agreement or
the Trust Fund.

                  Section 18. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS,
DUTIES, OBLIGATIONS AND RESPONSIBILITIES OF THE PARTIES HERETO SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS (OTHER THAN THE CHOICE OF LAW
PROVISIONS THEREIN) AND DECISIONS OF THE STATE OF NEW YORK. THE PARTIES HERETO
INTEND THAT THE PROVISIONS OF SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS
LAW SHALL APPLY TO THIS AGREEMENT.

                  Section 19. MISCELLANEOUS. This Agreement may be executed in
two or more counterparts, each of which when so executed and delivered shall be
an original, but all of which together shall constitute one and the same
instrument. This Agreement shall inure to the benefit of and be binding upon the
parties hereto and their respective successors and assigns. This Agreement
supersedes all prior agreements and understandings relating to the subject
matter hereof. Neither this Agreement nor any term hereof may be changed,
waived, discharged or terminated orally, but only by an instrument in writing
signed by the party against whom enforcement of the change, waiver, discharge or
termination is sought. The headings in this Agreement are for purposes of
reference only and shall not limit or otherwise affect the meaning hereof.

                  It is the express intent of the parties hereto that the
conveyance of the Mortgage Loans by the Seller to the Purchaser as provided in
Section 4 hereof be, and be construed as, a sale of the Mortgage Loans by the
Seller to the Purchaser and not as a pledge of the Mortgage Loans by the Seller
to the Purchaser to secure a debt or other obligation of the Seller. However, in
the event that, notwithstanding the aforementioned intent of the parties, the
Mortgage Loans are held to be property of the Seller, then (a) it is the express
intent of the parties that such conveyance be deemed a pledge of the Mortgage
Loans by the Seller to the Purchaser to secure a debt or other obligation of the
Seller and (b) (1) this Agreement shall also be deemed to be a

                                      -27-
<PAGE>

security agreement within the meaning of Articles 8 and 9 of the New York
Uniform Commercial Code; (2) the conveyance provided for in Section 4 hereof
shall be deemed to be a grant by the Seller to the Purchaser of a security
interest in all of the Seller's right, title and interest in and to the Mortgage
Loans and all amounts payable to the holders of the Mortgage Loans in accordance
with the terms thereof and all proceeds of the conversion, voluntary or
involuntary, of the foregoing into cash, instruments, securities or other
property, including without limitation all amounts, other than investment
earnings, from time to time held or invested in the Collection Account whether
in the form of cash, instruments, securities or other property; (3) the
possession by the Purchaser or its agent of Mortgage Notes, the related
Mortgages and such other items of property that constitute instruments, money,
negotiable documents or chattel paper shall be deemed to be "possession" by the
secured party for purposes of perfecting the security interest pursuant to the
New York Uniform Commercial Code; and (4) notifications to persons holding such
property and acknowledgments, receipts or confirmations from persons holding
such property shall be deemed notifications to, or acknowledgments, receipts or
confirmations from, financial intermediaries, bailees or agents (as applicable)
of the Purchaser for the purpose of perfecting such security interest under
applicable law. Any assignment of the interest of the Purchaser pursuant to
Section 4(d) hereof shall also be deemed to be an assignment of any security
interest created hereby. The Seller and the Purchaser shall, to the extent
consistent with this Agreement, take such actions as may be necessary to ensure
that, if this Agreement were deemed to create a security interest in the
Mortgage Loans, such security interest would be deemed to be a perfected
security interest of first priority under applicable law and will be maintained
as such throughout the term of this Agreement and the Pooling and Servicing
Agreement.

                  The NIMS Insurer, if any, shall be a third party beneficiary
hereof and may enforce the terms hereof as if a party hereto.

                                      -28-
<PAGE>

                  IN WITNESS WHEREOF, the Originator, the Purchaser and the
Seller have caused their names to be signed by their respective officers
thereunto duly authorized as of the date first above written.

                                          MORTGAGE ASSET SECURITIZATION
                                          TRANSACTIONS, INC.

                                          By:  ________________________________
                                          Name:
                                          Title:

                                          By:  ________________________________
                                          Name:
                                          Title:

                                          UBS REAL ESTATE SECURITIES INC.

                                          By:  ________________________________
                                          Name:
                                          Title:

                                          By:  ________________________________
                                          Name:
                                          Title:

                                          WMC MORTGAGE CORP.

                                          By:  ________________________________
                                          Name:
                                          Title:

<PAGE>

                                    EXHIBIT E
                                    ---------

                               REQUEST FOR RELEASE
                                  OF DOCUMENTS

To:      U.S. Bank National Association,
         60 Livingston Street
         St. Paul, Minnesota 55107

         Re:      Pooling and Servicing Agreement, dated as of December 1, 2004,
                  among Mortgage Asset Securitization Transactions, Inc., HomEq
                  Servicing Corporation and U.S. Bank National Association,
                  Mortgage Pass-Through Certificates, Series 2004-WMC3
                  --------------------------------------------------------------

In connection with the administration of the Mortgage Loans held by you as
Trustee pursuant to the above-captioned Pooling and Servicing Agreement, we
request the release, and hereby acknowledge receipt of the Trustee's Mortgage
File Or the Mortgage Loan described below, for the reason indicated.

In addition, all amounts have been received in connection with such payment,
repurchase or liquidation and have been credited to the related Collection
Account.

Mortgage Loan Number:

Mortgagor Name. Address & Zip Code:

Reason for Requesting Documents (check one):

         1.       Mortgage Paid in Full ____

         2.       Foreclosure ____

         3.       Substitution ____

         4.       Other Liquidation (Repurchases, etc.) ____

         5.       Nonliquidation Reason: _______________________________________

Address to which Trustee should deliver
the Trustee's Mortgage File:

                                      167
<PAGE>

                                       By:__________________________________
                                                (authorized signer)

                                       Issuer:__________________________________

                                       Address:_________________________________

                                       Date:__________________________________
Trustee

U.S. Bank National Association
         Please acknowledge the execution of the above request by your signature
         and date below:

           _______________________________      __________________
           Signature                            Date

           Documents returned to Trustee:

           _______________________________      __________________
           Signature                            Date

                                      168
<PAGE>

                                   EXHIBIT F-1
                                   -----------

                    FORM OF TRANSFEROR REPRESENTATION LETTER

                                                            [Date]

U.S. Bank National Association,
60 Livingston Street
St. Paul, Minnesota 55107

         Re:      MASTR Asset Backed Securities Trust, Series 2004-WMC3,
                  Mortgage Pass-Through Certificates, Class ___, representing a
                  ___% Class ___ Percentage Interest
                  -------------------------------------------------------------

Ladies and Gentlemen:

           In connection with the transfer by ________________ (the
"Transferor") to ________________ (the "Transferee") of the captioned mortgage
pass-through certificates (the "Certificates"), the Transferor hereby certifies
as follows:

           Neither the Transferor nor anyone acting on its behalf has (a)
offered, pledged, sold, disposed of or otherwise transferred any Certificate,
any interest in any Certificate or any other similar security to any person in
any manner, (b) has solicited any offer to buy or to accept a pledge,
disposition or other transfer of any Certificate, any interest in any
Certificate or any other similar security from any person in any manner, (c) has
otherwise approached or negotiated with respect to any Certificate, any interest
in any Certificate or any other similar security with any person in any manner,
(d) has made any general solicitation by means of general advertising or in any
other manner, (e) has taken any other action, that (in the case of each of
subclauses (a) through (e) above) would constitute a distribution of the
Certificates under the Securities Act of 1933, as amended (the "1933 Act"), or
would render the disposition of any Certificate a violation of Section 5 of the
1933 Act or any state securities law or would require registration or
qualification pursuant thereto. The Transferor will not act, nor has it
authorized or will it authorize any person to act, in any manner set forth in
the foregoing sentence with respect to any Certificate. The Transferor will not
sell or otherwise transfer any of the Certificates, except in compliance with
the provisions of that certain Pooling and Servicing Agreement, dated as of
December 1, 2004, among Mortgage Asset Securitization Transactions, Inc. as
Depositor, HomEq Servicing Corporation as Servicer and U.S. Bank National
Association as Trustee (the "Pooling and Servicing Agreement"), pursuant to
which Pooling and Servicing Agreement the Certificates were issued.

                                      169
<PAGE>

           Capitalized terms used but not defined herein shall have the
meanings assigned thereto in the Pooling and Servicing Agreement.

                                             Very truly yours,

                                             [Transferor]

                                             By:___________________________
                                             Name:
                                             Title:

                                      170
<PAGE>

                    FORM OF TRANSFEREE REPRESENTATION LETTER

                                                                [Date]

U.S. Bank National Association,
60 Livingston Street
St. Paul, Minnesota 55107

         Re:      MASTR Asset Backed Securities Trust, Series 2004-WMC3,
                  Mortgage Pass-Through Certificates, Class ___, representing a
                  ___% Class ___ Percentage Interest
                  -------------------------------------------------------------

Ladies and Gentlemen:

           In connection with the purchase from ______________________
(the "Transferor") on the date hereof of the captioned trust certificates (the
"Certificates"), _______________ (the "Transferee") hereby certifies as follows:

           1. The Transferee is a "qualified institutional buyer" as that
term is defined in Rule 144A ("Rule 144A") under the Securities Act of 1933 (the
"1933 Act") and has completed either of the forms of certification to that
effect attached hereto as Annex 1 or Annex 2. The Transferee is aware that the
sale to it is being made in reliance on Rule 144A. The Transferee is acquiring
the Certificates for its own account or for the account of a qualified
institutional buyer, and understands that such Certificate may be resold,
pledged or transferred only (i) to a person reasonably believed to be a
qualified institutional buyer that purchases for its own account or for the
account of a qualified institutional buyer to whom notice is given that the
resale, pledge or transfer is being made in reliance on Rule 144A, or (ii)
pursuant to another exemption from registration under the 1933 Act.

           2. The Transferee has been furnished with all information
regarding (a) the Certificates and distributions thereon, (b) the nature,
performance and servicing of the Mortgage Loans, (c) the Pooling and Servicing
Agreement referred to below, and (d) any credit enhancement mechanism associated
with the Certificates, that it has requested.

           All capitalized terms used but not otherwise defined herein
have the respective meanings assigned thereto in the Pooling and Servicing
Agreement, dated as of December 1, 2004, among Mortgage Asset Securitization
Transactions, Inc. as Depositor, HomEq Servicing Corporation as Servicer and
U.S. Bank National Association as Trustee, pursuant to which the Certificates
were issued.

                                                [TRANSFEREE]

                                                By:__________________________
                                                Name:
                                                Title:

                                      171
<PAGE>

                             ANNEX 1 TO EXHIBIT F-1
                             ----------------------

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
            --------------------------------------------------------
          [For Transferees Other Than Registered Investment Companies]

                  The undersigned hereby certifies as follows to [name of
Transferor] (the "Transferor") and U.S. Bank National Association, as Trustee,
with respect to the mortgage pass-through certificates (the "Certificates")
described in the Transferee Certificate to which this certification relates and
to which this certification is an Annex:

                  1. As indicated below, the undersigned is the President, Chief
Financial Officer, Senior Vice President or other executive officer of the
entity purchasing the Certificates (the "Transferee").

                  2. In connection with purchases by the Transferee, the
Transferee is a "qualified institutional buyer" as that term is defined in Rule
144A under the Securities Act of 1933 ("Rule 144A") because (i) the Transferee
owned and/or invested on a discretionary basis $______________________1 in
securities (except for the excluded securities referred to below) as of the end
of the Transferee's most recent fiscal year (such amount being calculated in
accordance with Rule 144A) and (ii) the Transferee satisfies the criteria in the
category marked below.

         ___ CORPORATION, ETC. The Transferee is a corporation (other than a
bank, savings and loan association or similar institution), Massachusetts or
similar business trust, partnership, or any organization described in Section
501(c)(3) of the Internal Revenue Code of 1986.

         ___ BANK. The Transferee (a) is a national bank or banking institution
organized under the laws of any State, territory or the District of Columbia,
the business of which is substantially confined to banking and is supervised by
the State or territorial banking commission or similar official or is a foreign
bank or equivalent institution, and (b) has an audited net worth of at least
$25,000,000 as demonstrated in its latest annual financial statements, a copy of
which is attached hereto.

         ___ SAVINGS AND LOAN. The Transferee (a) is a savings and loan
association, building and loan association, cooperative bank, homestead
association or similar institution, which is supervised and examined by a State
or Federal authority having supervision over any such institutions or is a
foreign savings and loan association or equivalent institution and (b) has an
audited net worth of at least

------------------
1       Transferee must own and/or invest on a discretionary basis at least
$100,000,000 in securities unless Transferee is a dealer, and, in that case,
Transferee must own and/or invest on a discretionary basis at least $10,000,000
in securities. $25,000,000 as demonstrated in its latest annual financial
statements, A COPY OF WHICH IS ATTACHED HERETO.

                                      172
<PAGE>

         ___ BROKER-DEALER. The Transferee is a dealer registered pursuant to
Section 15 of the Securities Exchange Act of 1934.

         ___ INSURANCE COMPANY. The Transferee is an insurance company whose
primary and predominant business activity is the writing of insurance or the
reinsuring of risks underwritten by insurance companies and which is subject to
supervision by the insurance commissioner or a similar official or agency of a
State, territory or the District of Columbia.

         ___ STATE OR LOCAL PLAN. The Transferee is a plan established and
maintained by a State, its political subdivisions, or any agency or
instrumentality of the State or its political subdivisions, for the benefit of
its employees.

         ___ ERISA PLAN. The Transferee is an employee benefit plan within the
meaning of Title I of the Employee Retirement Income Security Act of 1974.

         ___ INVESTMENT ADVISOR. The Transferee is an investment advisor
registered under the Investment Advisers Act of 1940.

                  3. The term "SECURITIES" as used herein DOES NOT INCLUDE (i)
securities of issuers that are affiliated with the Transferee, (ii) securities
that are part of an unsold allotment to or subscription by the Transferee, if
the Transferee is a dealer, (iii) securities issued or guaranteed by the U.S. or
any instrumentality thereof, (iv) bank deposit notes and certificates of
deposit, (v) loan participations, (vi) repurchase agreements, (vii) securities
owned but subject to a repurchase agreement and (viii) currency, interest rate
and commodity swaps.

                  4. For purposes of determining the aggregate amount of
securities owned and/or invested on a discretionary basis by the Transferee, the
Transferee used the cost of such securities to the Transferee and did not
include any of the securities referred to in the preceding paragraph. Further,
in determining such aggregate amount, the Transferee may have included
securities owned by subsidiaries of the Transferee, but only if such
subsidiaries are consolidated with the Transferee in its financial statements
prepared in accordance with generally accepted accounting principles and if the
investments of such subsidiaries are managed under the Transferee's direction.
However, such securities were not included if the Transferee is a
majority-owned, consolidated subsidiary of another enterprise and the Transferee
is not itself a reporting company under the Securities Exchange Act of 1934.

                  5. The Transferee acknowledges that it is familiar with Rule
144A and understands that the Transferor and other parties related to the
Certificates are relying and will continue to rely on the statements made herein
because one or more sales to the Transferee may be in reliance on Rule 144A.

  ___      ___      Will the Transferee be purchasing the Certificates
  Yes      No       only for the Transferee's own account?

                  6. If the answer to the foregoing question is "no", the
Transferee agrees that, in connection with any purchase of securities sold to
the Transferee for the account of a third party (including any separate account)
in reliance on Rule 144A, the Transferee will only purchase for

                                      173
<PAGE>

the account of a third party that at the time is a "qualified institutional
buyer" within the meaning of Rule 144A. In addition, the Transferee agrees that
the Transferee will not purchase securities for a third party unless the
Transferee has obtained a current representation letter from such third party or
taken other appropriate steps contemplated by Rule 144A to conclude that such
third party independently meets the definition of "qualified institutional
buyer" set forth in Rule 144A.

                  7. The Transferee will notify each of the parties to which
this certification is made of any changes in the information and conclusions
herein. Until such notice is given, the Transferee's purchase of the
Certificates will constitute a reaffirmation of this certification as of the
date of such purchase. In addition, if the Transferee is a bank or savings and
loan as provided above, the Transferee agrees that it will furnish to such
parties updated annual financial statements promptly after they become
available.

Dated: ___________

                                     ------------------------------------
                                     Print Name of Transferee

                                     By:_________________________________
                                     Name:
                                     Title:

                                      174
<PAGE>

                             ANNEX 2 TO EXHIBIT F-1
                             ----------------------

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
            --------------------------------------------------------

           [FOR TRANSFEREES THAT ARE REGISTERED INVESTMENT COMPANIES]

                  The undersigned hereby certifies as follows to [name of
Transferor] (the "Transferor") and U.S. Bank National Association, as Trustee,
with respect to the mortgage pass- through certificates (the "Certificates")
described in the Transferee Certificate to which this certification relates and
to which this certification is an Annex:

                  1. As indicated below, the undersigned is the President, Chief
Financial Officer or Senior Vice President of the entity purchasing the
Certificates (the "Transferee") or, if the Transferee is a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act of 1933 ("Rule 144A") because the Transferee is part of a Family of
Investment Companies (as defined below), is such an officer of the investment
adviser (the "Adviser").

                  2. In connection with purchases by the Transferee, the
Transferee is a "qualified institutional buyer" as defined in Rule 144A because
(i) the Transferee is an investment company registered under the Investment
Company Act of 1940, and (ii) as marked below, the Transferee alone, or the
Transferee's Family of Investment Companies, owned at least $100,000,000 in
securities (other than the excluded securities referred to below) as of the end
of the Transferee's most recent fiscal year. For purposes of determining the
amount of securities owned by the Transferee or the Transferee's Family of
Investment Companies, the cost of such securities was used.

         ____     The Transferee owned $___________________ in securities (other
                  than the excluded securities referred to below) as of the end
                  of the Transferee's most recent fiscal year (such amount being
                  calculated in accordance with Rule 144A).

         ____     The Transferee is part of a Family of Investment Companies
                  which owned in the aggregate $______________ in securities
                  (other than the excluded securities referred to below) as of
                  the end of the Transferee's most recent fiscal year (such
                  amount being calculated in accordance with Rule 144A).

                  3. The term "FAMILY OF INVESTMENT COMPANIES" as used herein
means two or more registered investment companies (or series thereof) that have
the same investment adviser or investment advisers that are affiliated (by
virtue of being majority owned subsidiaries of the same parent or because one
investment adviser is a majority owned subsidiary of the other).

                  4. The term "SECURITIES" as used herein does not include (i)
securities of issuers that are affiliated with the Transferee or are part of the
Transferee's Family of Investment Companies, (ii) securities issued or
guaranteed by the U.S. or any instrumentality thereof, (iii) bank deposit notes
and certificates of deposit, (iv) loan participations, (v) repurchase
agreements,

                                      175
<PAGE>

(vi) securities owned but subject to a repurchase agreement and (vii) currency,
interest rate and commodity swaps.

                  5. The Transferee is familiar with Rule 144A and understands
that the parties to which this certification is being made are relying and will
continue to rely on the statements made herein because one or more sales to the
Transferee will be in reliance on Rule 144A. In addition, the Transferee will
only purchase for the Transferee's own account.

                  6. The undersigned will notify the parties to which this
certification is made of any changes in the information and conclusions herein.
Until such notice, the Transferee's purchase of the Certificates will constitute
a reaffirmation of this certification by the undersigned as of the date of such
purchase.

Dated: __________

                                            ___________________________________
                                            Print Name of Transferee or Advisor

                                            By:________________________________
                                            Name:
                                            Title:

                                            IF AN ADVISER:

                                            ___________________________________
                                            Print Name of Transferee

                                      176
<PAGE>

                    FORM OF TRANSFEREE REPRESENTATION LETTER
                    ----------------------------------------

                  The undersigned hereby certifies on behalf of the purchaser
named below (the "Purchaser") as follows:

                  1. I am an executive officer of the Purchaser.

                  2. The Purchaser is a "qualified institutional buyer", as
defined in Rule 144A, ("Rule 144A") under the Securities Act of 1933, as
amended.

                  3. As of the date specified below (which is not earlier than
the last day of the Purchaser's most recent fiscal year), the amount of
"securities", computed for purposes of Rule 144A, owned and invested on a
discretionary basis by the Purchaser was in excess of $100,000,000.

                                         Name of Purchaser

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

                                         By:____________________________
                                         Name:
                                         Title:

Date of this certificate: ______________

Date of information provided in paragraph 3: ______________

                                      177
<PAGE>

                            EXHIBIT F-2
                            -----------

             FORM OF TRANSFER AFFIDAVIT AND AGREEMENT

STATE OF NEW YORK           )

COUNTY OF NEW YORK          )

                  __________________________, being duly sworn, deposes,
represents and warrants as follows:

                  1. I am a ______________________ of _________________________
(the "Owner") a corporation duly organized and existing under the laws of
______________, the record owner of MASTR Asset Backed Securities Trust, Series
2004-WMC3, Mortgage Pass-Through Certificates, Class [R][R-X] Certificates, (the
"Residual Certificates"), on behalf of whom I make this affidavit and agreement.
Capitalized terms used but not defined herein have the respective meanings
assigned thereto in the Pooling and Servicing Agreement pursuant to which the
Residual Certificates were issued.

                  2. The Owner (i) is and will be a "Permitted Transferee" as of
____________, 20__ and (ii) is acquiring the Residual Certificates for its own
account or for the account of another Owner from which it has received an
affidavit in substantially the same form as this affidavit. A "Permitted
Transferee" is any person other than a "disqualified organization" or a
possession of the United States. For this purpose, a "disqualified organization"
means the United States, any state or political subdivision thereof, any agency
or instrumentality of any of the foregoing (other than an instrumentality all of
the activities of which are subject to tax and, except for the Federal Home Loan
Mortgage Corporation, a majority of whose board of directors is not selected by
any such governmental entity) or any foreign government, international
organization or any agency or instrumentality of such foreign government or
organization, any rural electric or telephone cooperative, or any organization
(other than certain farmers' cooperatives) that is generally exempt from federal
income tax unless such organization is subject to the tax on unrelated business
taxable income.

                  3. The Owner is aware (i) of the tax that would be imposed on
transfers of the Residual Certificates to disqualified organizations under the
Internal Revenue Code of 1986 that applies to all transfers of the Residual
Certificates after March 31, 1988; (ii) that such tax would be on the transferor
or, if such transfer is through an agent (which person includes a broker,
nominee or middleman) for a non-Permitted Transferee, on the agent; (iii) that
the person otherwise liable for the tax shall be relieved of liability for the
tax if the transferee furnishes to such person an affidavit that the transferee
is a Permitted Transferee and, at the time of transfer, such person does not
have actual knowledge that the affidavit is false; and (iv) that each of the
Residual Certificates may be a "noneconomic residual interest" within the
meaning of proposed Treasury regulations promulgated under the Code and that the
transferor of a "noneconomic residual interest" will remain liable for any taxes
due with respect to the income on such residual interest, unless no significant
purpose of the transfer is to impede the assessment or collection of tax.

                                      178
<PAGE>

                  4. The Owner is aware of the tax imposed on a "pass-through
entity" holding the Residual Certificates if, at any time during the taxable
year of the pass-through entity, a non-Permitted Transferee is the record holder
of an interest in such entity. (For this purpose, a "pass-through entity"
includes a regulated investment company, a real estate investment trust or
common trust fund, a partnership, trust or estate, and certain cooperatives.)

                  5. The Owner is aware that the Trustee will not register the
transfer of any Residual Certificate unless the transferee, or the transferee's
agent, delivers to the Trustee, among other things, an affidavit in
substantially the same form as this affidavit. The Owner expressly agrees that
it will not consummate any such transfer if it knows or believes that any of the
representations contained in such affidavit and agreement are false.

                  6. The Owner consents to any additional restrictions or
arrangements that shall be deemed necessary upon advice of counsel to constitute
a reasonable arrangement to ensure that the Residual Certificates will only be
owned, directly or indirectly, by an Owner that is a Permitted Transferee.

                  7. The Owner's taxpayer identification number is
_________________.

                  8. The Owner has reviewed the restrictions set forth on the
face of the Residual Certificates and the provisions of Section 5.02(d) of the
Pooling and Servicing Agreement under which the Residual Certificates were
issued (in particular, clauses (iii)(A) and (iii)(B) of Section 5.02(d) which
authorize the Trustee to deliver payments to a person other than the Owner and
negotiate a mandatory sale by the Trustee in the event that the Owner holds such
Certificate in violation of Section 5.02(d)); and that the Owner expressly
agrees to be bound by and to comply with such restrictions and provisions.

                  9. The Owner is not acquiring and will not transfer the
Residual Certificates in order to impede the assessment or collection of any
tax.

                  10. The Owner anticipates that it will, so long as it holds
the Residual Certificates, have sufficient assets to pay any taxes owed by the
holder of such Residual Certificates, and hereby represents to and for the
benefit of the person from whom it acquired the Residual Certificates that the
Owner intends to pay taxes associated with holding such Residual Certificates as
they become due, fully understanding that it may incur tax liabilities in excess
of any cash flows generated by the Residual Certificates.

                  11. The Owner has no present knowledge that it may become
insolvent or subject to a bankruptcy proceeding for so long as it holds the
Residual Certificates.

                  12. The Owner has no present knowledge or expectation that it
will be unable to pay any United States taxes owed by it so long as any of the
Certificates remain outstanding.

                  13. The Owner is not acquiring the Residual Certificates with
the intent to transfer the Residual Certificates to any person or entity that
will not have sufficient assets to pay any taxes owed by the holder of such
Residual Certificates, or that may become insolvent or subject to a bankruptcy
proceeding, for so long as the Residual Certificates remain outstanding.

                                      179
<PAGE>

                  14. The Owner will, in connection with any transfer that it
makes of the Residual Certificates, obtain from its transferee the
representations required by Section 5.02(d) of the Pooling and Servicing
Agreement under which the Residual Certificate were issued and will not
consummate any such transfer if it knows, or knows facts that should lead it to
believe, that any such representations are false.

                  15. The Owner will, in connection with any transfer that it
makes of the Residual Certificates, deliver to the Trustee an affidavit, which
represents and warrants that it is not transferring the Residual Certificates to
impede the assessment or collection of any tax and that it has no actual
knowledge that the proposed transferee: (i) has insufficient assets to pay any
taxes owed by such transferee as holder of the Residual Certificates; (ii) may
become insolvent or subject to a bankruptcy proceeding for so long as the
Residual Certificates remains outstanding; and (iii) is not a "Permitted
Transferee".

                  16. The Owner is a citizen or resident of the United States, a
corporation, partnership or other entity created or organized in, or under the
laws of, the United States or any political subdivision thereof, or an estate or
trust whose income from sources without the United States may be included in
gross income for United States federal income tax purposes regardless of its
connection with the conduct of a trade or business within the United States.

                  17. The Owner of the Residual Certificate, hereby agrees that
in the event that the Trust Fund created by the Pooling and Servicing Agreement
is terminated pursuant to Section 9.01 thereof, the undersigned shall assign and
transfer to the Holders of the Class CE Certificates (with respect to a
termination of REMIC I) any amounts in excess of par received in connection with
such termination. Accordingly, in the event of such termination, the Trustee is
hereby authorized to withhold any such amounts in excess of par and to pay such
amounts directly to the Holders of the Class CE Certificates. This agreement
shall bind and be enforceable against any successor, transferee or assignee of
the undersigned in the Residual Certificate. In connection with any transfer of
the Residual Certificate, the Owner shall obtain an agreement substantially
similar to this clause from any subsequent owner.

                                      180
<PAGE>

                  IN WITNESS WHEREOF, the Owner has caused this instrument to be
executed on its behalf, pursuant to the authority of its Board of Directors, by
its [Vice] President, attested by its [Assistant] Secretary, this ____ day of
__________, 20__.

                                               [OWNER]

                                               By:__________________________

                                                       Name:
                                               Title:  [Vice] President
ATTEST:
By:_________________________________
Name:
Title:            [Assistant] Secretary

                  Personally appeared before me the above-named , known or
proved to me to be the same person who executed the foregoing instrument and to
be a [Vice] President of the Owner, and acknowledged to me that [he/she]
executed the same as [his/her] free act and deed and the free act and deed of
the Owner.

                  Subscribed and sworn before me this ____ day of __________,
20___.

                                               ----------------------------
                                                       Notary Public

                                               County of __________________

                                               State of ___________________

                                               My Commission expires:

                                      181
<PAGE>

                          FORM OF TRANSFEROR AFFIDAVIT
                          ----------------------------
STATE OF NEW YORK      )
COUNTY OF NEW YORK     )

                  __________________________, being duly sworn, deposes,
represents and warrants as follows:

                  1. I am a ____________________ of ____________________________
(the "Owner"), a corporation duly organized and existing under the laws of
______________, on behalf of whom I make this affidavit.

                  2. The Owner is not transferring the Residual Certificates
(the "Residual Certificates") to impede the assessment or collection of any tax.

                  3. The Owner has no actual knowledge that the Person that is
the proposed transferee (the "Purchaser") of the Residual Certificates: (i) has
insufficient assets to pay any taxes owed by such proposed transferee as holder
of the Residual Certificates; (ii) may become insolvent or subject to a
bankruptcy proceeding for so long as the Residual Certificates remain
outstanding; and (iii) is not a Permitted Transferee.

                  4. The Owner understands that the Purchaser has delivered to
the Trustee a transfer affidavit and agreement in the form attached to the
Pooling and Servicing Agreement as Exhibit F-2. The Owner does not know or
believe that any representation contained therein is false.

                  5. At the time of transfer, the Owner has conducted a
reasonable investigation of the financial condition of the Purchaser as
contemplated by Treasury Regulations Section 1.860E-1(c)(4)(i) and, as a result
of that investigation, the Owner has determined that the Purchaser has
historically paid its debts as they became due and has found no significant
evidence to indicate that the Purchaser will not continue to pay its debts as
they become due in the future. The Owner understands that the transfer of a
Residual Certificate may not be respected for United States income tax purposes
(and the Owner may continue to be liable for United States income taxes
associated therewith) unless the Owner has conducted such an investigation.

                  6. Capitalized terms not otherwise defined herein shall have
the meanings ascribed to them in the Pooling and Servicing Agreement.

                                      182
<PAGE>

                  IN WITNESS WHEREOF, the Owner has caused this instrument to be
executed on its behalf, pursuant to the authority of its Board of Directors, by
its [Vice] President, attested by its [Assistant] Secretary, this ____ day of
___________, 20__.

                                              [OWNER]

                                              By:_______________________________
                                              Name:
                                              Title:            [Vice] President
ATTEST:
By:______________________________
Name:
Title:   [Assistant] Secretary

                  Personally appeared before me the above-named , known or
proved to me to be the same person who executed the foregoing instrument and to
be a [Vice] President of the Owner, and acknowledged to me that [he/she]
executed the same as [his/her] free act and deed and the free act and deed of
the Owner.

                  Subscribed and sworn before me this ____ day of __________,
20___.

                                               ----------------------------
                                                       Notary Public

                                               County of __________________

                                               State of ___________________

                                               My Commission expires:

                                      183
<PAGE>

                                    EXHIBIT G
                                    ---------

            FORM OF CERTIFICATION WITH RESPECT TO ERISA AND THE CODE

                                                       _____________, 2004
Mortgage Asset Securitization Transactions, Inc.
1285 Avenue of the Americas
New York, New York 10019

HomEq Servicing Corporation
4837 Watt Avenue
North Highlands, California 95660

U.S. Bank National Association
60 Livingston Street
St. Paul, Minnesota 55107

         Re:      MASTR Asset Backed Securities Trust, Series 2004-WMC3,
                  Mortgage Pass-Through Certificates, Class ___
                  ------------------------------------------------------

Dear Sirs:

         _______________________ (the "Transferee") intends to acquire from
_____________________ (the "Transferor") $____________ Initial Certificate
Principal Balance of MASTR Asset Backed Securities Trust, Series 2004-WMC3,
Mortgage Pass-Through Certificates, Class [CE] [P] [R](the "Certificates"),
issued pursuant to a Pooling and Servicing Agreement (the "Pooling and Servicing
Agreement") dated as of December 1, 2004, among Mortgage Asset Securitization
Transactions, Inc. as depositor (the "Depositor"), HomEq Servicing Corporation
as Servicer (the "Servicer") and U.S. Bank National Association as trustee (the
"Trustee"). Capitalized terms used herein and not otherwise defined shall have
the meanings assigned thereto in the Pooling and Servicing Agreement. The
Transferee hereby certifies, represents and warrants to, and covenants with the
Depositor, the Trustee and the Servicer that:

         The Certificates (i) are not being acquired by, and will not be
transferred to, any employee benefit plan within the meaning of section 3(3) of
the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), or
other retirement arrangement, including individual retirement accounts and
annuities, Keogh plans and bank collective investment funds and insurance
company general or separate accounts in which such plans, accounts or
arrangements are invested, that is subject to Section 406 of ERISA or Section
4975 of the Internal Revenue Code of 1986 (the "Code") (any of the foregoing, a
"Plan"), (ii) are not being acquired with "plan assets" of a Plan within the
meaning of the Department of Labor ("DOL") regulation, 29 C.F.R.ss.2510.3-101,
and (iii) will not be transferred to any entity that is deemed to be investing
in plan assets within the meaning of the DOL regulation at 29 C.F.R.ss.
2510.3-101.

                                      184
<PAGE>

                                               Very truly yours,

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

                                               By:__________________________
                                               Name:
                                               Title:

                                      185
<PAGE>

                                    EXHIBIT H
                                    ---------

                     FORM OF REPORT PURSUANT TO SECTION 4.06

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    Form 10-K

                                  Annual Report

                     Pursuant to Section 13 or 15(d) of the
                 Securities Exchange Act of 1934 (Fee Required)

                     For fiscal year ended ________________

                       Commission file number: 333-_______

                MORTGAGE ASSET SECURITIZATION TRANSACTIONS, INC.
            (as depositor under the Pooling and Servicing Agreement,
           dated as of December 1, 2004, providing for the issuance of
              Mortgage Pass-Through Certificates, Series 2004-WMC3)

                Mortgage Asset Securitization Transactions, Inc.
                ------------------------------------------------

             (Exact name of registrant as specified in its charter)

           Delaware                                        [__]
 ----------------------------------                 -------------------
(State or Other Jurisdiction                         (I.R.S. Employer
of Incorporation)                                  Identification Number)

1285 Avenue of the Americas
New York, New York 10019                                       10019
------------------------                                      -------
(Address of Principal Executive Offices)                      (Zip Code)

Registrant's telephone number, including area code: [___]

Securities registered pursuant to Section 12(b) of the Act:

None

Securities registered pursuant to Section 12(g) of the Act:

                                      186
<PAGE>

None

Indicate whether the Registrant: (1) has filed all reports required to be filed
by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days.

                                                                X YES      No
                                                              ----     ----
Item 1.  Business:

Not applicable

Item 2.  Properties:

Not applicable

Item 3.  Legal Proceedings:

None

Item 4.  Submission of Matters to a Vote of Security-Holders

None

Item 5.  Market for Registrant's Common Equity and Related Stockholder Matters

To the best knowledge of the registrant there is no established public trading
market for the certificates.

There are approximately _____ holders of record as of the end of the reporting
year.

Item 6.  Selected Financial Data.

Not applicable.

Item 7. Management's Discussion and Analysis of Financial Condition and Results
of Operations

Not applicable

Item 8.  Financial Statements and Supplementary Data.

Not applicable.

Item 9. Changes in and Disagreements With Accountants on Accounting and
Financial Disclosure

None

                                      187
<PAGE>

Item 10.

Not applicable

Item 11.  Executive Compensation

Not applicable

Item 12.  Security Ownership of Certain Beneficial Owners and Management

Not applicable

Item 13.  Certain Relationships and Related Transactions

Not applicable

Item 14.  Exhibits, Financial Statement Schedules, and Reports on Form 8-K

         a) The company filed on Form 8-K, separately for each distribution
         date, the distribution of funds related to the trust for each of the
         following distribution dates:

                    Distribution Date                  Form 8-K Filing Date
                    -----------------                  --------------------
                    -----------------                  --------------------
                    -----------------                  --------------------
                    -----------------                  --------------------

         b) 99.1 Annual Report of Independent Public Accountants' as to
servicing activities,

                    (a) HomEq Servicing Corporation, as Servicer

                  99.2 Annual Statement of Compliance with obligations under the
                  Pooling and Servicing Agreement or servicing agreement, as
                  applicable, of:

                    (a) HomEq Servicing Corporation, as Servicer

Such document (i) is not filed herewith since such document was not received by
the Reporting Person at least three business days prior to the due date of this
report; and (ii) will be included in an amendment to this report on Form 10-K/A
to be filed within 30 days of the Reporting Person's receipt of such document.

                                      188
<PAGE>

                                   Signatures

           Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned thereunto duly authorized.

Date: ___________

                                               Mortgage Asset Securitization
                                               Transactions, Inc., by U.S. Bank
                                               National Association, as Trustee
                                               for MASTR Asset Backed Securities
                                               Trust, Series 2004-WMC3, Mortgage
                                               Pass-Through Certificates.

                                               By:______________________________
                                               Name:
                                               Title:
                                               Company:

                                      189
<PAGE>

                                    EXHIBIT I

                           FORM OF LOST NOTE AFFIDAVIT

                              Loan #: ____________
                             Borrower: _____________

                               LOST NOTE AFFIDAVIT

                  I, as ____________________ of ______________________, a
_______________ corporation am authorized to make this Affidavit on behalf of
_____________________ (the "Seller"). In connection with the administration of
the Mortgage Loans held by ____________________, a _________________ corporation
as Seller on behalf of Mortgage Asset Securitization Transactions, Inc. (the
"Purchaser"), _____________________ (the "Deponent"), being duly sworn, deposes
and says that:

         1. The Seller's address is: _____________________
                                     _____________________
                                     _____________________

         2. The Seller previously delivered to the Purchaser a signed
            Initial Certification with respect to such Mortgage and/or
            Assignment of Mortgage;

         3. Such Mortgage Note and/or Assignment of Mortgage was assigned
            or sold to the Purchaser by ________________________, a
            ____________ corporation pursuant to the terms and provisions of a
            Mortgage Loan Purchase Agreement dated as of __________ __, _____;

         4. Such Mortgage Note and/or Assignment of Mortgage is not outstanding
            pursuant to a request for release of Documents;

         5. Aforesaid Mortgage Note and/or Assignment of Mortgage (the
            "Original") has been lost;

         6. Deponent has made or caused to be made a diligent search for
            the Original and has been unable to find or recover same;

         7. The Seller was the Seller of the Original at the time of the
            loss; and

         8. Deponent agrees that, if said Original should ever come into
            Seller's possession, custody or power, Seller will immediately
            and without consideration surrender the Original to the Purchaser.

         9. Attached hereto is a true and correct copy of (i) the Note,
            endorsed in blank by the Mortgagee and (ii) the Mortgage or
            Deed of Trust (strike one) which secures the Note, which
            Mortgage or Deed of Trust is recorded in the county where
            the property is located.

                                      190
<PAGE>

         10. Deponent hereby agrees that the Seller (a) shall indemnify and hold
harmless the Purchaser, its successors and assigns, against any loss, liability
or damage, including reasonable attorney's fees, resulting from the
unavailability of any Notes, including but not limited to any loss, liability or
damage arising from (i) any false statement contained in this Affidavit, (ii)
any claim of any party that has already purchased a mortgage loan evidenced by
the Lost Note or any interest in such mortgage loan, (iii) any claim of any
borrower with respect to the existence of terms of a mortgage loan evidenced by
the Lost Note on the related property to the fact that the mortgage loan is not
evidenced by an original note and (iv) the issuance of a new instrument in lieu
thereof (items (i) through (iv) above hereinafter referred to as the "Losses")
and (b) if required by any Rating Agency in connection with placing such Lost
Note into a Pass-Through Transfer, shall obtain a surety from an insurer
acceptable to the applicable Rating Agency to cover any Losses with respect to
such Lost Note.

         11. This Affidavit is intended to be relied upon by the Purchaser, its
successors and assigns. _____________________, a ______________ corporation
represents and warrants that is has the authority to perform its obligations
under this Affidavit of Lost Note.

Executed this ____ day, of ___________ ______.

                                             SELLER

                                             By:__________________________

                                             Name:

                                             Title:

           On this _____ day of ________, _____, before me appeared
_________________ to me personally known, who being duly sworn did say that he
is the _____________________ of ____________________ a ______________
corporation and that said Affidavit of Lost Note was signed and sealed on behalf
of such corporation and said acknowledged this instrument to be the free act and
deed of said corporation.

                                             Signature:

                                             [Seal]

                                      191
<PAGE>

                                   EXHIBIT J-1

                FORM CERTIFICATION TO BE PROVIDED BY THE TRUSTEE
                                 WITH FORM 10-K

           Certification

           I, [identify the certifying individual], certify that:

           1. I have reviewed this annual report on Form 10-K, and all
reports on Form 8-K containing distribution or servicing reports filed in
respect of periods included in the year covered by this annual report, of
[identify issuer (i.e., the name of the specific deal to which this
certification relates rather than just the name of the Depositor)];

           2. Based on my knowledge, the information in these reports,
taken as a whole, does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements made, in light of
the circumstances under which such statements were made, not misleading, as of
the last day of the period covered by this annual report;

           3. Based on my knowledge, the distribution or servicing
information required to be provided to the trustee by the servicer under the
pooling and servicing, or similar, agreement, for inclusion in these reports is
included in these reports;

           4. Based on my knowledge and upon the annual compliance
statement included in the report and required to be delivered to the Trustee in
accordance with the terms of the Pooling and Servicing Agreement, and except as
disclosed in the reports, the Servicer has fulfilled its obligations under the
servicing agreement; and

           5. The reports disclose all significant deficiencies relating
to the servicer's compliance with the minimum servicing standards based upon the
report provided by an independent public accountant, after conducting a review
in compliance with the Uniform Single Attestation Program for Mortgage Bankers
or similar procedure, as set forth in the pooling and servicing, or similar,
agreement, that is included in these reports.

           In giving the certifications above, I have reasonably relied
on information provided to me by the following unaffiliated parties: HomEq
Servicing Corporation.

                                      192
<PAGE>

                                              U.S. BANK NATIONAL ASSOCIATION

                                              By:_______________________________
                                              Name:
                                              Title:
                                              Date:

                                      193
<PAGE>

                                   EXHIBIT J-2

         FORM OF CERTIFICATION TO BE PROVIDED TO TRUSTEE BY THE SERVICER

U.S. Bank National Association,
60 Livingston Street
St. Paul, Minnesota 55107

         Re: MASTR Asset Backed Securities Trust 2004-WMC3

         HomEq Servicing Corporation, as Servicer hereby certifies to the
Trustee that:

         1. Based on my knowledge, the information in the Annual Statement of
Compliance, the Annual Independent Public Accountant's Servicing Report and all
servicing reports, officer's certificates and other information relating to the
servicing of the Mortgage Loans submitted to the Trustee taken as a whole, does
not contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements made, in light of the circumstances under
which such statements were made, not misleading, as of the date of this
certification;

         2. Based on my knowledge, the servicing information required to be
provided to the Trustee by the Servicer under the Pooling and Servicing
Agreement has been provided to the Trustee;

         3. I am responsible for reviewing the activities performed by the
Servicer under the Pooling and Servicing Agreement and based upon the review
required by such Pooling and Servicing Agreement, and except as disclosed in the
Annual Statement of Compliance and the Annual Independent Public Accountant's
Servicing Report submitted to the Trustee, the Servicer has, as of the date of
this certification fulfilled its obligations under such Pooling and Servicing
Agreement; and

         4. The servicer has disclosed to the Trustee all significant
deficiencies relating to the Servicer's compliance with the minimum servicing
standards in accordance with a review conducted in compliance with the Uniform
Single Attestation Program for Mortgage Bankers or similar standard as set forth
in the Pooling and Servicing Agreement.

         Capitalized terms used but not defined herein have the meanings
ascribed to them in the Pooling and Servicing Agreement, dated as of December 1,
2004, among Mortgage Asset Securitization Transactions, Inc. as depositor, HomEq
Servicing Corporation, as servicer and U.S. Bank National Association, as
trustee

                                        HomEq Servicing Corporation, as Servicer

                                        By:_________________________________
                                        Name:
                                        Title:
                                        Date:

                                      194
<PAGE>

                                    EXHIBIT K
                                    ---------

             ANNUAL STATEMENT OF COMPLIANCE PURSUANT TO SECTION 3.20

                  MASTR Asset Backed Securities Trust 2004-WMC3
              MORTGAGE PASS THROUGH CERTIFICATES, SERIES 2004-WMC3

         I, _____________________, hereby certify that I am a duly appointed
__________________________ of HomEq Servicing Corporation (the "Servicer"), and
further certify as follows:

         1. This certification is being made pursuant to Section 3.20 of the
Pooling and Servicing Agreement, dated as of December 1, 2004 (the "Agreement"),
among Mortgage Asset Securitization Transactions, Inc., as depositor, HomEq
Servicing Corporation, as servicer, and U.S. Bank National Association, as
trustee.

         2. I have reviewed the activities of the Servicer during the preceding
year and the Servicer's performance under the Agreement and to the best of my
knowledge, based on such review, the Servicer has fulfilled all of its
obligations under the Agreement throughout the year.

           Capitalized terms not otherwise defined herein have the
meanings set forth in the Agreement.

Dated: _____________, 2004

                                      195
<PAGE>

         IN WITNESS WHEREOF, the undersigned has executed this Certificate as of
_____________.

                                              By:  _____________________________
                                              Name:
                                              Title:

         I, _________________________, a (an) __________________ of the
Servicer, hereby certify that _________________ is a duly elected, qualified,
and acting _______________________ of the Servicer and that the signature
appearing above is his/her genuine signature.

         IN WITNESS WHEREOF, the undersigned has executed this Certificate as of
______________.

                                              By:  _____________________________
                                              Name:
                                              Title:

                                      196
<PAGE>

                                    EXHIBIT L
                                    ---------

                             FORMS OF CAP CONTRACTS

                             AVAILABLE UPON REQUEST

                                      197
<PAGE>

                                   SCHEDULE 1

                             MORTGAGE LOAN SCHEDULE

                                [FILED BY PAPER]

                                      198
<PAGE>

                                   SCHEDULE 2

                           PREPAYMENT CHARGE SCHEDULE

                             Available Upon Request

                                      199EXHIBIT 4.1

<PAGE>

                 AMERICAN HOME MORTGAGE INVESTMENT TRUST 2004-4

                                     Issuer

                                       and

                              THE BANK OF NEW YORK

                                Indenture Trustee

                                    INDENTURE

                          Dated as of December 21, 2004

                              MORTGAGE-BACKED NOTES

<PAGE>

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

<TABLE>
<CAPTION>
Section                                                                                           Page
-------                                                                                           ----

                                    ARTICLE I

                                   Definitions

<S><C>              <C>                                                                            <C>
   Section 1.01     Definitions......................................................................3
   Section 1.02     Incorporation by Reference of Trust Indenture Act................................3
   Section 1.03     Rules of Construction............................................................3

                                   ARTICLE II

                           Original Issuance of Notes

   Section 2.01     Form.............................................................................5
   Section 2.02     Execution, Authentication and Delivery...........................................5
   Section 2.03     Acceptance of Mortgage Loans by Indenture Trustee................................5
   Section 2.04     Acceptance of Derivative Contracts by Indenture Trustee..........................7
   Section 2.05     Conveyance of the Group I Subsequent Mortgage Loans..............................7
   Section 2.06     Conveyance of the Group II Subsequent Mortgage Loans............................10
   Section 2.07     Conveyance of the Group III Subsequent Mortgage Loans...........................13
   Section 2.08     Conveyance of the Group IV Subsequent Mortgage Loans............................16
   Section 2.09     Conveyance of the Group V Subsequent Mortgage Loans.............................19
   Section 2.10     Conveyance of the Group VI Subsequent Mortgage Loans............................21
   Section 2.11     Conveyance of the Group VII Subsequent HELOC Mortgage Loans.....................24

                                   ARTICLE III

                                    Covenants

   Section 3.01     Collection of Payments with respect to the Mortgage
                    Loans and HELOC Mortgage Loans..................................................28
   Section 3.02     Maintenance of Office or Agency.................................................28
   Section 3.03     Money for Payments To Be Held in Trust; Paying Agent............................28
   Section 3.04     Existence.......................................................................29
   Section 3.05     Payment of Available  Funds on the Group I, Group II,
                    Group III,  Group IV and Group V................................................30
   Section 3.06     Payment of Group VI Available Funds.............................................34
   Section 3.07     Payment of Principal and Interest on the Class VII-A Notes......................37
   Section 3.08     Rapid Amortization Events.......................................................38
   Section 3.09     Payments to the Class N Notes...................................................39
   Section 3.10     Other Matters With Respect to the Notes.........................................39
   Section 3.11     Protection of Trust Estate......................................................40
   Section 3.12     Opinions as to Trust Estate.....................................................41
</TABLE>

                                       i
<PAGE>

<TABLE>
<CAPTION>
<S><C>              <C>                                                                            <C>
   Section 3.13     Performance of Obligations......................................................42
   Section 3.14     Negative Covenants..............................................................42
   Section 3.15     Annual Statement as to Compliance...............................................43
   Section 3.16     Representations and Warranties Concerning the Mortgage Loans....................43
   Section 3.17     Amendments to Servicing Agreement...............................................43
   Section 3.18     Master Servicer as Agent and Bailee of the Indenture Trustee....................43
   Section 3.19     Investment Company Act..........................................................44
   Section 3.20     Issuer May Consolidate, etc.....................................................44
   Section 3.21     Successor or Transferee.........................................................46
   Section 3.22     No Other Business...............................................................47
   Section 3.23     No Borrowing....................................................................47
   Section 3.24     Guarantees, Loans, Monthly Advances and Other Liabilities.......................47
   Section 3.25     Capital Expenditures............................................................47
   Section 3.26     Determination of Note Interest Rate.............................................47
   Section 3.27     Restricted Payments.............................................................47
   Section 3.28     Notice of Events of Default.....................................................48
   Section 3.29     Further Instruments and Acts....................................................48
   Section 3.30     Statements to Noteholders.......................................................48
   Section 3.31     Interest Coverage Accounts......................................................48
   Section 3.32     The Pre-Funding Accounts........................................................49
   Section 3.33     Grant of the Subsequent Mortgage Loans and Subsequent
                    HELOC Mortgage Loans............................................................51
   Section 3.34     Replacement Swap Agreements.....................................................51
   Section 3.35     Payments Under the Insurance Policy.............................................52
   Section 3.36     Replacement Insurance Policy....................................................52
   Section 3.37     Certain Representations Regarding the Trust Estate..............................53
   Section 3.38     Allocation of Realized Losses...................................................54

                                   ARTICLE IV

               The Notes; Satisfaction and Discharge of Indenture

   Section 4.01     The Notes.......................................................................56
   Section 4.02     Registration  of and  Limitations  on Transfer
                    and Exchange of Notes;  Appointment of
                    Note Registrar and Certificate Registrar........................................57
   Section 4.03     Mutilated, Destroyed, Lost or Stolen Notes......................................57
   Section 4.04     Persons Deemed Owners...........................................................58
   Section 4.05     Cancellation....................................................................58
   Section 4.06     Book-Entry Notes................................................................59
   Section 4.07     Notices to Depository...........................................................60
   Section 4.08     Definitive Notes................................................................60
   Section 4.09     Tax Treatment...................................................................60
   Section 4.10     Satisfaction and Discharge of Indenture.........................................60
   Section 4.11     Application of Trust Money......................................................61
   Section 4.12     Subrogation and Cooperation.....................................................62
   Section 4.13     Repayment of Monies Held by Paying Agent........................................63
   Section 4.14     Temporary Notes.................................................................63
   Section 4.15     Representation Regarding ERISA..................................................63
</TABLE>

                                       ii
<PAGE>

<TABLE>
<CAPTION>
<S><C>              <C>                                                                            <C>
                                    ARTICLE V

                              Default and Remedies

   Section 5.01     Events of Default...............................................................64
   Section 5.02     Acceleration of Maturity; Rescission and Annulment..............................64
   Section 5.03     Collection of Indebtedness and Suits for Enforcement
                    by Indenture Trustee............................................................65
   Section 5.04     Remedies; Priorities............................................................67
   Section 5.05     Optional Preservation of the Trust Estate.......................................71
   Section 5.06     Limitation of Suits.............................................................71
   Section 5.07     Unconditional Rights of Noteholders To Receive
                    Principal and Interest..........................................................72
   Section 5.08     Restoration of Rights and Remedies..............................................72
   Section 5.09     Rights and Remedies Cumulative..................................................72
   Section 5.10     Delay or Omission Not a Waiver..................................................72
   Section 5.11     Control By Noteholders..........................................................73
   Section 5.12     Waiver of Past Defaults.........................................................73
   Section 5.13     Undertaking for Costs...........................................................74
   Section 5.14     Waiver of Stay or Extension Laws................................................74
   Section 5.15     Sale of Trust Estate............................................................74
   Section 5.16     Action on Notes.................................................................76
   Section 5.17     Performance and Enforcement of Certain Obligations..............................76

                                   ARTICLE VI

                              The Indenture Trustee

   Section 6.01     Duties of Indenture Trustee.....................................................77
   Section 6.02     Rights of Indenture Trustee.....................................................78
   Section 6.03     Individual Rights of Indenture Trustee..........................................80
   Section 6.04     Indenture Trustee's Disclaimer..................................................80
   Section 6.05     Notice of Event of Default......................................................80
   Section 6.06     Reports by Indenture Trustee to Holders and Tax Administration..................80
   Section 6.07     Compensation and Indemnity......................................................80
   Section 6.08     Replacement of Indenture Trustee................................................81
   Section 6.09     Successor Indenture Trustee by Merger...........................................82
   Section 6.10     Appointment of Co-Indenture Trustee or Separate Indenture Trustee...............82
   Section 6.11     Eligibility; Disqualification...................................................84
   Section 6.12     Preferential Collection of Claims Against Issuer................................84
   Section 6.13     Representations and Warranties..................................................84
   Section 6.14     Directions to Indenture Trustee.................................................84
   Section 6.15     The Agents......................................................................85
   Section 6.16     Administrative Duties...........................................................85
   Section 6.17     Records.........................................................................87
   Section 6.18     Additional Information to be Furnished..........................................87
   Section 6.19     Execution of Derivative Contracts and other Documents...........................87
   Section 6.20     Indenture Trustee's Application For Instructions From the Issuer................87
   Section 6.21     Limitation of Liability.........................................................88
   Section 6.22     Assignment of Rights, Not Assumption of Duties..................................88
</TABLE>

                                      iii
<PAGE>

<TABLE>
<CAPTION>
                                   ARTICLE VII

                         Noteholders' Lists and Reports
<S><C>              <C>                                                                            <C>
   Section 7.01     Issuer To Furnish Indenture Trustee Names and
                    Addresses of Noteholders........................................................89
   Section 7.02     Preservation of Information; Communications to Noteholders......................89
   Section 7.03     Reports of Issuer...............................................................89
   Section 7.04     Reports by Indenture Trustee....................................................90
   Section 7.05     Statements to Noteholders.......................................................90

                                  ARTICLE VIII

                      Accounts, Disbursements and Releases

   Section 8.01     Collection of Money.............................................................94
   Section 8.02     Trust Accounts..................................................................94
   Section 8.03     Officer's Certificate...........................................................95
   Section 8.04     Termination Upon Distribution to Noteholders....................................95
   Section 8.05     Release of Trust Estate.........................................................95
   Section 8.06     Surrender of Notes Upon Final Payment...........................................96
   Section 8.07     Optional Redemption of the Notes................................................96

                                   ARTICLE IX

                             Supplemental Indentures

   Section 9.01     Supplemental Indentures Without Consent of Noteholders..........................98
   Section 9.02     Supplemental Indentures With Consent of Noteholders.............................99
   Section 9.03     Execution of Supplemental Indentures...........................................101
   Section 9.04     Effect of Supplemental Indenture...............................................101
   Section 9.05     Conformity with Trust Indenture Act............................................101
   Section 9.06     Reference in Notes to Supplemental Indentures..................................101

                                    ARTICLE X

                                  Miscellaneous

   Section 10.01    Compliance Certificates and Opinions, etc......................................102
   Section 10.02    Form of Documents Delivered to Indenture Trustee...............................103
   Section 10.03    Acts of Noteholders............................................................104
   Section 10.04    Notices etc., to Indenture Trustee, Issuer,
                    Insurer and Rating Agencies....................................................104
   Section 10.05    Notices to Noteholders; Waiver.................................................105
   Section 10.06    Conflict with Trust Indenture Act..............................................106
   Section 10.07    Effect of Headings.............................................................106
   Section 10.08    Successors and Assigns.........................................................106
   Section 10.09    Separability...................................................................106
   Section 10.10    Benefits of Indenture..........................................................106
   Section 10.11    Legal Holidays.................................................................107
   Section 10.12    GOVERNING LAW..................................................................107
   Section 10.13    Counterparts...................................................................107
   Section 10.14    Recording of Indenture.........................................................107
</TABLE>

                                       iv
<PAGE>

<TABLE>
<CAPTION>
<S><C>              <C>                                                                            <C>
   Section 10.15    Issuer Obligation..............................................................107
   Section 10.16    No Petition....................................................................108
   Section 10.17    Inspection.....................................................................108
</TABLE>

                                    EXHIBITS

         Exhibit A-1       --        Form of Class [_-A-_] Notes
         Exhibit A-2       --        Form of Class [__]-M-[_] Notes
         Exhibit A-3       --        Form of Class [__]-B-[_] Notes
         Exhibit A-4       --        Form of Class N Notes
         Exhibit B         --        Mortgage Loan Schedule
         Exhibit C         --        Form of Cap Contract
         Exhibit D         --        Form of Corridor Contract
         Exhibit E         --        Form of Swap Agreement
         Exhibit F         --        Insurance Agreement
         Exhibit G         --        Form of Subsequent Transfer Instrument
         Exhibit H         --        Form of Addition Notice

         Appendix A        --        Definitions

                                       v
<PAGE>

                  This Indenture, dated as of December 21, 2004, is entered into
between American Home Mortgage Investment Trust 2004-4, a Delaware statutory
trust, as Issuer (the "Issuer"), and The Bank of New York, a New York banking
corporation, as Indenture Trustee (the "Indenture Trustee").

                                WITNESSETH THAT:

                  Each party hereto agrees as follows for the benefit of the
other party and for the equal and ratable benefit of the Holders of the Issuer's
Mortgage-Backed Notes, Series 2004-4 (the "Notes").

                                 GRANTING CLAUSE

                  The Issuer hereby Grants to the Indenture Trustee at the
Closing Date, as trustee for the benefit of the Holders of the Notes and the
Insurer, all of the Issuer's right, title and interest in and to, whether now
existing or hereafter created, (a) the Mortgage Loans, Eligible Substitute
Mortgage Loans and the proceeds thereof and all rights under the Related
Documents; (b) the HELOC Mortgage Loans, related Eligible Substitute Mortgage
Loans and the proceeds thereof and all rights under the Related Documents; (c)
with respect to the Holders of the Class VII-A Notes, the Insurance Policy; (d)
additional Draws under the HELOC Mortgage Loans conveyed to the Trust (e) the
rights of the Issuer under the Derivative Contracts and all payments received
under the Derivative Contracts; (f) all funds on deposit from time to time in
the Collection Account allocable to the Mortgage Loans and HELOC Mortgage Loans
excluding any investment income from such funds; (h) all funds on deposit from
time to time in the Payment Account and in all proceeds thereof; (i) all funds
on deposit from time to time in the Pre-Funding Accounts and the Interest
Coverage Accounts and in all proceeds thereof; (j) all rights under (i) the
Mortgage Loan Purchase Agreement as assigned to the Issuer, with respect to the
Initial Mortgage Loans, and each Group I, Group II, Group III, Group IV, Group
V, Group VI and Group VII Subsequent Mortgage Loan Purchase Agreements as
assigned to the Issuer, with respect to the related Group I, Group II, Group
III, Group IV, Group V, Group VI and Group VII Subsequent Mortgage Loans (ii)
the Servicing Agreements and any Subservicing Agreements, (iii) any title,
hazard and primary insurance policies with respect to the Mortgaged Properties;
and (iv) the Custodial Agreement; and (k) all present and future claims,
demands, causes and choses in action in respect of any or all of the foregoing
and all payments on or under, and all proceeds of every kind and nature
whatsoever in respect of, any or all of the foregoing and all payments on or
under, and all proceeds of every kind and nature whatsoever in the conversion
thereof, voluntary or involuntary, into cash or other liquid property, all cash
proceeds, accounts, accounts receivable, notes, drafts, acceptances, checks,
deposit accounts, rights to payment of any and every kind, and other forms of
obligations and receivables, instruments and other property which at any time
constitute all or part of or are included in the proceeds of any of the
foregoing (collectively, the "Trust Estate" or the "Collateral").

                  The foregoing Grant is made in trust to secure the payment of
principal of and interest on, and any other amounts owing in respect of, the
Notes, equally and ratably without

                                       1
<PAGE>

prejudice (except as otherwise provided herein), priority or distinction, and to
secure compliance with the provisions of this Indenture, all as provided in this
Indenture.

                  The Indenture Trustee, as trustee on behalf of the Holders of
the Notes and the Insurer, acknowledges such Grant, accepts the trust under this
Indenture in accordance with the provisions hereof and agrees to perform its
duties as Indenture Trustee as required herein.

                  The Indenture Trustee agrees that it will hold the Insurance
Policy in trust and that it will hold any proceeds of any claim made upon the
Insurance Policy solely for the use and benefit of the Holders of the ClassVII-A
Notes in accordance with the terms hereof and the terms of the Insurance Policy.

                                       2
<PAGE>

                                    ARTICLE I

                                   Definitions

         Section 1.01 Definitions. For all purposes of this Indenture, except as
otherwise expressly provided herein or unless the context otherwise requires,
capitalized terms used but not otherwise defined herein shall have the meanings
assigned to such terms in the Definitions attached hereto as Appendix A which is
incorporated by reference herein. All other capitalized terms used herein shall
have the meanings specified herein.

         Section 1.02 Incorporation by Reference of Trust Indenture Act.
Whenever this Indenture refers to a provision of the Trust Indenture Act (the
"TIA"), the provision is incorporated by reference in and made a part of this
Indenture. The following TIA terms used in this Indenture have the following
meanings:

                  "Commission" means the Securities and Exchange Commission.

                  "indenture securities" means the Notes.

                  "indenture security holder" means a Noteholder.

                  "indenture to be qualified" means this Indenture.

                  "indenture trustee" or "institutional trustee" means the
Indenture Trustee.

                  "obligor" on the indenture securities means the Issuer and any
other obligor on the indenture securities.

         All other TIA terms used in this Indenture that are defined by the TIA,
defined by TIA reference to another statute or defined by Commission rules have
the meanings assigned to them by such definitions.

         Section 1.03 Rules of Construction. Unless the context otherwise
requires:

                  (i)      a term has the meaning assigned to it;

                  (ii)     an accounting term not otherwise defined has the
         meaning assigned to it in accordance with generally accepted accounting
         principles as in effect from time to time;

                  (iii)    "or" is not exclusive;

                  (iv)     "including" means including without limitation;

                  (v)      words in the singular include the plural and words in
         the plural include the singular; and

                  (vi)     any agreement, instrument, statute, regulation or
         rule defined or referred to herein or in any instrument or certificate
         delivered in connection herewith means such

                                       3
<PAGE>

         agreement, instrument, statute, regulation or rule 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.

                                       4
<PAGE>

                                   ARTICLE II

                           Original Issuance of Notes

         Section 2.01 Form. The Class A, Class M, Class B and Class N Notes,
together with the Indenture Trustee's certificate of authentication, shall be in
substantially the form set forth in Exhibits A-1, A-2 and A-3 to this Indenture,
respectively, with such appropriate insertions, omissions, substitutions and
other variations as are required or permitted by this Indenture.

         The Notes shall be typewritten, printed, lithographed or engraved or
produced by any combination of these methods (with or without steel engraved
borders).

         The terms of the Notes set forth in Exhibits A-1, A-2, A-3 and A-4 to
this Indenture are part of the terms of this Indenture.

         Section 2.02 Execution, Authentication and Delivery. The Notes shall be
executed on behalf of the Issuer by any of its Authorized Officers. The
signature of any such Authorized Officer on the Notes may be manual or
facsimile.

         Notes bearing the manual or facsimile signature of individuals who were
at any time Authorized Officers of the Issuer shall bind the Issuer,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Notes or did not hold
such offices at the date of such Notes.

         The Indenture Trustee shall upon Issuer Request authenticate and
deliver each Class of Notes for original issue in an aggregate initial principal
amount equal to the Initial Note Principal Balance for such Class of Notes.

         Each of the Notes shall be dated the date of its authentication. The
Notes shall be issuable as registered Notes and shall be issuable in the minimum
initial Note Principal Balances of $25,000 and in integral multiples of $1 in
excess thereof, except with respect to the Class VII-A Notes. The Class VII-A
Notes shall be issuable in the minimum initial Note Principal Balances of
$25,000 and in integral multiples of $1,000 in excess thereof.

         No Note shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose, unless there appears on such Note a
certificate of authentication substantially in the form provided for herein
executed by the Indenture Trustee by the manual signature of one of its
authorized signatories, and such certificate upon any Note shall be conclusive
evidence, and the only evidence, that such Note has been duly authenticated and
delivered hereunder.

         Section 2.03 Acceptance of Mortgage Loans by Indenture Trustee.

         (a)      The Indenture Trustee shall cause the Custodian as agent for
the Indenture Trustee to acknowledge receipt of, subject to the exceptions the
Custodian notes pursuant to the procedures described below, the documents (or
certified copies thereof) referred to in Section 2.1(b) of the Mortgage Loan
Purchase Agreement and the Subsequent Mortgage Loan Purchase Agreements, and to
declare that it holds and will continue to hold those documents and any

                                       5
<PAGE>

amendments, replacements or supplements thereto and all other assets of the
Trust Estate, as agent for the Indenture Trustee in trust for the use and
benefit of all present and future Holders of the Notes and the Insurer. No later
than the Closing Date, with respect to the Initial Mortgage Loans and Initial
HELOC Mortgage Loans or the applicable Subsequent Transfer Date, with respect to
the related Group I, Group II, Group III, Group IV, Group V and Group VI
Subsequent Mortgage Loans and the Group VII Subsequent HELOC Mortgage Loans (or,
with respect to any Eligible Substitute Mortgage Loan, within 5 days after the
receipt by the Custodian as agent for the Indenture Trustee thereof and, with
respect to any documents received after the Closing Date, promptly thereafter),
the Indenture Trustee shall cause the Custodian, as agent for the Indenture
Trustee, to agree, for the benefit of the Noteholders and the Insurer, to review
each Mortgage File delivered to it and to execute and deliver, or to cause to be
executed and delivered, to the Seller, the Indenture Trustee, the Insurer and
the Master Servicer an Initial Certification in the form annexed to the
Custodial Agreement as Exhibit One. In conducting such review, the Indenture
Trustee shall cause the Custodian, as agent for the Indenture Trustee, to
ascertain whether all required documents described in Section 2.1(b)(i) to (v)
of (a) the Mortgage Loan Purchase Agreement, with respect to the Initial
Mortgage Loans and Initial HELOC Mortgage Loans, and (b) the applicable
Subsequent Mortgage Loan Purchase Agreement, with respect to the related Group
I, Group II, Group III, Group IV, Group V, Group VI Subsequent Mortgage Loans
and Group VII Subsequent HELOC Mortgage Loans, have been executed and received
and whether those documents relate, to the Mortgage Loans and HELOCs it has
received, as identified in Exhibit B to this Indenture, as supplemented
(provided, however, that with respect to those documents described in subclause
(b)(vi) of such section, the Custodian's obligations shall extend only to
documents actually delivered pursuant to such subclause). In performing any such
review, the Custodian as agent for the Indenture Trustee may conclusively rely
on the purported due execution and genuineness of any such document and on the
purported genuineness of any signature thereon. If the Custodian as agent for
the Indenture Trustee finds any document constituting part of the Mortgage File
not to have been executed or received, or to be unrelated to the Mortgage Loans
identified in Exhibit B to this Indenture or to appear to be defective on its
face, the Custodian as agent for the Indenture Trustee shall promptly notify the
Seller, the Insurer and the Indenture Trustee of such finding and the Seller's
obligation to cure such defect or repurchase or substitute for the related
Mortgage Loan. To the extent the Indenture Trustee has not received a Mortgage
File with respect to any of the Initial Mortgage Loans or Initial HELOC Mortgage
Loans by the Closing Date, or any of the related Group I, Group II, Group III,
Group IV, Group V, Group VI Subsequent Mortgage Loans or Group VII Subsequent
HELOC Mortgage Loans by the applicable Subsequent Transfer Date, the Indenture
Trustee shall not require the deposit of cash into the Payment Account or any
other account to cover the amount of that Mortgage Loan and shall solely treat
such Mortgage Loan as if it were in breach of a representation or warranty;
provided that the aggregate Stated Principal Balance of such Mortgage Loans does
not exceed 1% of the sum of the Cut-off Date Balance and the Group I, Group II,
Group III, Group IV, Group V, Group VI and Group VI Original Pre-Funded Amounts.

                  (i)      No later than 180 days after the Closing Date (with
         respect to the Initial Mortgage Loans and Initial HELOC Mortgage Loans)
         or the applicable Subsequent Transfer Date (with respect to the related
         Group I, Group II, Group II, Group III, Group IV, Group V, Group VI
         Subsequent Mortgage Loans and Group VII Subsequent HELOC Mortgage
         Loans), the Custodian as agent for the Indenture Trustee will review,
         for the

                                       6
<PAGE>

         benefit of the Noteholders and the Insurer, the Mortgage Files and will
         execute and deliver or cause to be executed and delivered to the
         Seller, the Insurer, the related Master Servicer and the Indenture
         Trustee, a Final Certification in the form annexed to the Custodial
         Agreement as Exhibit Two. In conducting such review, the Custodian as
         agent for the Indenture Trustee will ascertain whether an original of
         each document described in subclauses (b)(ii)-(iv) of Section 2.1 of
         the Mortgage Loan Purchase Agreement, with respect to the Initial
         Mortgage Loans and Initial HELOC Mortgage Loans, and (b) the applicable
         Subsequent Mortgage Loan Purchase Agreement, with respect to the
         related Group I, Group II, Group III, Group IV, Group V, Group VI
         Subsequent Mortgage Loans and Group VII Subsequent HELOC Mortgage
         Loans, required to be recorded has been returned from the applicable
         recording office with evidence of recording thereon or a certified copy
         has been obtained from such recording office. If the Custodian as agent
         for the Indenture Trustee finds any document constituting part of the
         Mortgage File has not been executed or received, or to be unrelated, to
         the Mortgage Loans and HELOC Mortgage Loans identified in Exhibit B to
         this Indenture or to appear defective on its face, the Custodian as
         agent for the Indenture Trustee shall promptly notify the Seller, the
         Insurer and the Indenture Trustee.

                  (ii)     Upon deposit by the Seller of the Repurchase Price in
         the Payment Account, the Indenture Trustee shall cause the Custodian to
         release to the Seller or the related Master Servicer, as applicable,
         the related Mortgage File and the Indenture Trustee shall execute and
         deliver all instruments of transfer or assignment, without recourse,
         furnished to it by the Seller or the related Master Servicer, as
         applicable, as are necessary to vest in the Seller or the related
         Master Servicer, as applicable, title to and rights under the related
         Mortgage Loan or HELOC Mortgage Loan. Such purchase shall be deemed to
         have occurred on the date on which the deposit of the Repurchase Price
         in the Payment Account was received by the Indenture Trustee. The
         Custodian as agent for the Indenture Trustee shall amend the applicable
         Mortgage Loan Schedule to reflect such repurchase and shall promptly
         notify the related Master Servicer, the Insurer and the Indenture
         Trustee of such amendment.

         Section 2.04 Acceptance of Derivative Contracts by Indenture Trustee.
The Indenture Trustee acknowledges receipt of the Swap Agreements, the Corridor
Contracts and the Cap Contracts and declares that it holds and will continue to
hold these documents and any amendments, replacements or supplements thereto and
all other assets of the Trust Estate as Indenture Trustee in trust for the use
and benefit of all present and future Holders of the Notes. The Indenture
Trustee shall enforce the Swap Agreements, the Corridor Contract and the Cap
Contracts in accordance with their terms.

         Section 2.05 Conveyance of the Group I Subsequent Mortgage Loans. (a)
Subject to the conditions set forth in paragraph (b) below and in consideration
of the Indenture Trustee's delivery on the applicable Subsequent Transfer Dates,
to or upon the written order of the Depositor, of all or a portion of the
balance of funds in the Group I Pre-Funding Account, the Depositor shall, on the
Subsequent Transfer Date, sell, transfer, assign, set over and convey without
recourse to the Trust Estate, but subject to the other terms and provisions of
this Agreement, all of the right, title and interest of the Depositor in and to
(i) the related Group I

                                       7
<PAGE>

Subsequent Mortgage Loans identified on the Mortgage Loan Schedule attached to
the related Group I Subsequent Transfer Instrument delivered by the Depositor on
the Subsequent Transfer Date, (ii) all interest accruing thereon on and after
the Subsequent Cut-off Date (with respect to the Group I Subsequent Mortgage
Loans) and all collections in respect of interest and principal due after the
Subsequent Cut-off Date and (iii) all items with respect to such Group I
Subsequent Mortgage Loans to be delivered pursuant to Section 2.03 and the other
items in the related Mortgage Files; provided, however, that the Depositor
reserves and retains all right, title and interest in and to principal received
and interest accruing on the Group I Subsequent Mortgage Loans prior to the
related Subsequent Cut-off Date. The transfer to the Indenture Trustee for
deposit in the Trust Estate by the Depositor of the Group I Subsequent Mortgage
Loans identified on the Mortgage Loan Schedule shall be absolute and is intended
by the Depositor, the RMBS Master Servicer, the Indenture Trustee and the
Noteholders to constitute and to be treated as a sale of the Group I Subsequent
Mortgage Loans by the Depositor to the Trust Estate. The related Mortgage File
for each Group I Subsequent Mortgage Loan shall be delivered to the Custodian at
least three (3) Business Days prior to the related Subsequent Transfer Date.

         The purchase price paid by the Indenture Trustee from amounts released
from the Group I Pre-Funding Account shall be one-hundred percent (100%) of the
aggregate Stated Principal Balance of the Group I Subsequent Mortgage Loans so
transferred (as identified on the Mortgage Loan Schedule provided by the
Depositor).

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

                  (i)      the Depositor shall have provided the Indenture
         Trustee and the Rating Agencies with a timely Addition Notice and shall
         have provided any information reasonably requested by the Indenture
         Trustee with respect to the Group I Subsequent Mortgage Loans;

                  (ii)     the Depositor shall have delivered to the Indenture
         Trustee a duly executed Group I Subsequent Transfer Instrument (which
         the Indenture Trustee is hereby authorized to execute), which shall
         include a Mortgage Loan Schedule listing the Group I Subsequent
         Mortgage Loans, and the RMBS Master Servicer, in its capacity as
         Originator, shall have delivered a computer file containing such
         Mortgage Loan Schedule to the Indenture Trustee at least three (3)
         Business Days prior to the related Group I Subsequent Transfer Date;

                  (iii)    as of each Group I Subsequent Transfer Date, as
         evidenced by delivery of the related Group I Subsequent Transfer
         Instrument, substantially in the form of Exhibit G, the Depositor shall
         not be insolvent nor shall it have been rendered insolvent by such
         transfer nor shall it be aware of any pending insolvency;

                                       8
<PAGE>

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

                  (v)      the Funding Period shall not have terminated;

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

                  (vii)    the Depositor shall have delivered to the Indenture
         Trustee the related Group I Subsequent Transfer Instrument confirming
         the satisfaction of all of the conditions specified in this Section
         2.05 and, pursuant to such Group I Subsequent Transfer Instrument,
         assigned to the Indenture Trustee without recourse for the benefit of
         the Noteholders all the right, title and interest of the Depositor, in,
         to and under the applicable Group I Subsequent Mortgage Loan Purchase
         Agreement, to the extent of the related Group I Subsequent Mortgage
         Loans; and

                  (viii)   the Depositor shall have delivered to the Indenture
         Trustee an Opinion of Counsel addressed to the Indenture Trustee and
         the Rating Agencies with respect to the transfer of the applicable
         Group I Subsequent Mortgage Loans substantially in the form of the
         Opinion of Counsel delivered to the Indenture Trustee on the Closing
         Date regarding the validity of the conveyance and the true sale of such
         Group I Subsequent Mortgage Loans.

         (c)      The obligation of the Trust Estate to purchase a Group I
Subsequent Mortgage Loan on any Subsequent Transfer Date is subject to the
satisfaction of the conditions set forth in the immediately following paragraph
and the accuracy of the following representations and warranties with respect to
each such Group I Subsequent Mortgage Loan determined as of the applicable
Subsequent Cut-off Date: (i) such Mortgage Loan may not be 30 or more days
delinquent as of the last day of the month preceding the Subsequent Cut-off
Date; (ii) the original term to stated maturity of such Mortgage Loan will be
480 months; (iii) each Group I Subsequent Mortgage Loan must be an
adjustable-rate Mortgage Loan with a first lien on the related mortgaged
property; (iv) no Group I Subsequent Mortgage Loan will have a first Payment
Date occurring after April 1, 2005; (v) the latest maturity date of any Group I
Subsequent Mortgage Loan will be no later than March 1, 2045; (vi) none of the
Group I Subsequent Mortgage Loans will be a buydown loan; (vii) such Mortgage
Loan will have a credit score of not less than 556; (viii) such Mortgage Loan
will have a Mortgage Rate as of the applicable Subsequent Cut-off Date ranging
from approximately 1.000% per annum to approximately 5.850% per annum; (ix) none
of the Group I Subsequent Mortgage loans will be a New York State "high cost"
loan; and (x) such Group I Subsequent Mortgage Loan shall have been underwritten
in accordance with the criteria set forth under "The Mortgage Pool--Underwriting
Standards" in the Prospectus Supplement.

         (d)      In addition, following the purchase of any Group I Subsequent
Mortgage Loan by the Trust, the applicable Group I Subsequent Mortgage Loans
will as of the related Subsequent Cut-off Date: (i) have a weighted average
Mortgage Rate ranging from 1.747% to 1.847% per

                                       9
<PAGE>

annum; (ii) consist of Mortgage Loans with prepayment charges representing no
less than approximately 38.67% of the Pool Balance; (iii) have a weighted
average credit score ranging from 695 to 701; (iv) have no more than 9.606% of
such Mortgage Loans concentrated in the state of California; (v) have no less
than 54.22% of the mortgaged properties securing Group I Loans be owner
occupied; (vi) have no less than 62.18% of the mortgaged properties securing
Group I Mortgage Loans be single family detached and de minimis planned unit
developments; (vii) have no more than 41.67% of the Group I Loans be cash-out
refinance; (viii) not have any of such group of Group I Subsequent Mortgage
Loans with a loan-to-value ratio greater than 80% not be covered by a Primary
Insurance Policy or the Radian Lender-Paid PMI Policy; (ix) have no more than
80% of the Group I Loans be Mortgage Loans with an interest only period; and (x)
together with the Group I Mortgage Loans already included in the trust, have no
more than 1.84% of such Mortgage Loans (by aggregate Stated Principal Balance as
of the Subsequent Cut-off Date) secured by mortgaged properties located in any
one zip code.

         Notwithstanding the foregoing, any Group I Subsequent Mortgage Loan may
be rejected by any Rating Agency if the inclusion of any such Group I Subsequent
Mortgage Loan would adversely affect the ratings of the Notes. In addition,
minor variances from the characteristics stated above will be permitted with the
consent of the Rating Agencies so long as there are compensating factors, and
the consent of the Rating Agencies to any group of Group I Subsequent Mortgage
Loans shall mean that the representations and warranties set forth in
subsections (c) and (d) above are accurate; provided, however, that the
information furnished to the Rating Agencies in respect of such Group I
Subsequent Mortgage Loans is true and correct in all material respects. At least
one (1) Business Day prior to the applicable Group I Subsequent Transfer Date,
each Rating Agency shall notify the Indenture Trustee as to which Group I
Subsequent Mortgage Loans, if any, shall not be included in the transfer on such
Group I Subsequent Transfer Date; provided, however, that the RMBS Master
Servicer, in its capacity as Originator, shall have delivered to each Rating
Agency at least three (3) Business Days prior to such Group I Subsequent
Transfer Date a computer file acceptable to each Rating Agency describing the
characteristics specified in subsections (c) and (d) above.

         Section 2.06 Conveyance of the Group II Subsequent Mortgage Loans. (a)
Subject to the conditions set forth in paragraph (b) below and in consideration
of the Indenture Trustee's delivery on the applicable Subsequent Transfer Dates,
to or upon the written order of the Depositor, of all or a portion of the
balance of funds in the Group II Pre-Funding Account, the Depositor shall, on
the Subsequent Transfer Date, sell, transfer, assign, set over and convey
without recourse to the Trust Estate, but subject to the other terms and
provisions of this Agreement, all of the right, title and interest of the
Depositor in and to (i) the related Group II Subsequent Mortgage Loans
identified on the Mortgage Loan Schedule attached to the related Group II
Subsequent Transfer Instrument delivered by the Depositor on the Subsequent
Transfer Date, (ii) all interest accruing thereon on and after the Subsequent
Cut-off Date (with respect to the Group II Subsequent Mortgage Loans) and all
collections in respect of interest and principal due after the Subsequent
Cut-off Date and (iii) all items with respect to such Group II Subsequent
Mortgage Loans to be delivered pursuant to Section 2.03 and the other items in
the related Mortgage Files; provided, however, that the Depositor reserves and
retains all right, title and interest in and to principal received and interest
accruing on the Group II Subsequent Mortgage Loans prior to the related
Subsequent Cut-off Date. The transfer to the Indenture

                                       10
<PAGE>

Trustee for deposit in the Trust Estate by the Depositor of the Group II
Subsequent Mortgage Loans identified on the Mortgage Loan Schedule shall be
absolute and is intended by the Depositor, the RMBS Master Servicer, the
Indenture Trustee and the Noteholders to constitute and to be treated as a sale
of the Group II Subsequent Mortgage Loans by the Depositor to the Trust Estate.
The related Mortgage File for each Group II Subsequent Mortgage Loan shall be
delivered to the Custodian at least three (3) Business Days prior to the related
Subsequent Transfer Date.

         The purchase price paid by the Indenture Trustee from amounts released
from the Group II Pre-Funding Account shall be one-hundred percent (100%) of the
aggregate Stated Principal Balance of the Group II Subsequent Mortgage Loans so
transferred (as identified on the Mortgage Loan Schedule provided by the
Depositor).

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

                  (i)      the Depositor shall have provided the Indenture
         Trustee and the Rating Agencies with a timely Addition Notice and shall
         have provided any information reasonably requested by the Indenture
         Trustee with respect to the Group II Subsequent Mortgage Loans;

                  (ii)     the Depositor shall have delivered to the Indenture
         Trustee a duly executed Group II Subsequent Transfer Instrument (which
         the Indenture Trustee is hereby authorized to execute), which shall
         include a Mortgage Loan Schedule listing the Group II Subsequent
         Mortgage Loans, and the RMBS Master Servicer, in its capacity as
         Originator, shall have delivered a computer file containing such
         Mortgage Loan Schedule to the Indenture Trustee at least three (3)
         Business Days prior to the related Group II Subsequent Transfer Date;

                  (iii)    as of each Group II Subsequent Transfer Date, as
         evidenced by delivery of the related Group II Subsequent Transfer
         Instrument, substantially in the form of Exhibit G, the Depositor shall
         not be insolvent nor shall it have been rendered insolvent by such
         transfer nor shall it be aware of any pending insolvency;

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

                  (v)      the Funding Period shall not have terminated;

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

                                       11
<PAGE>

                  (vii)    the Depositor shall have delivered to the Indenture
         Trustee the related Group II Subsequent Transfer Instrument confirming
         the satisfaction of all of the conditions specified in this Section
         2.06 and, pursuant to such Group II Subsequent Transfer Instrument,
         assigned to the Indenture Trustee without recourse for the benefit of
         the Noteholders all the right, title and interest of the Depositor, in,
         to and under the applicable Group II Subsequent Mortgage Loan Purchase
         Agreement, to the extent of the related Group II Subsequent Mortgage
         Loans; and

                  (viii)   the Depositor shall have delivered to the Indenture
         Trustee an Opinion of Counsel addressed to the Indenture Trustee and
         the Rating Agencies with respect to the transfer of the applicable
         Group II Subsequent Mortgage Loans substantially in the form of the
         Opinion of Counsel delivered to the Indenture Trustee on the Closing
         Date regarding the validity of the conveyance and the true sale of such
         Group II Subsequent Mortgage Loans.

         (c)      The obligation of the Trust Estate to purchase a Group II
Subsequent Mortgage Loan on any Subsequent Transfer Date is subject to the
satisfaction of the conditions set forth in the immediately following paragraph
and the accuracy of the following representations and warranties with respect to
each such Group II Subsequent Mortgage Loan determined as of the applicable
Subsequent Cut-off Date: (i) such Mortgage Loan may not be 30 or more days
delinquent as of the last day of the month preceding the Subsequent Cut-off
Date; (ii) the original term to stated maturity of such Mortgage Loan will be
360 months; (iii) each Group I Subsequent Mortgage Loan must be an
adjustable-rate Mortgage Loan with a first lien on the related mortgaged
property; (iv) no Group II Subsequent Mortgage Loan will have a first Payment
Date occurring after April 1, 2005; (v) the latest maturity date of any Group II
Subsequent Mortgage Loan will be no later than March 1, 2035; (vi) none of the
Group II Subsequent Mortgage Loans will be a buydown loan; (vii) such Mortgage
Loan will have a credit score of not less than 586; (viii) such Mortgage Loan
will have a Mortgage Rate as of the applicable Subsequent Cut-off Date ranging
from approximately 2.500% per annum to approximately 10.625% per annum; (ix)
none of the Group II Subsequent Mortgage loans will be a New York State "high
cost" loan; and (x) such Group II Subsequent Mortgage Loan shall have been
underwritten in accordance with the criteria set forth under "The Mortgage
Pool--Underwriting Standards" in the Prospectus Supplement.

         (d)      In addition, following the purchase of any Group II Subsequent
Mortgage Loan by the Trust, the applicable Group II Subsequent Mortgage Loans
will as of the related Subsequent Cut-off Date: (i) have a weighted average
Mortgage Rate ranging from 5.335% to 5.435% per annum; (ii) consist of Mortgage
Loans with prepayment charges representing no less than approximately 12.73% of
the Pool Balance; (iii) have a weighted average credit score ranging from 699 to
705; (iv) have no more than 16.17% of such Mortgage Loans concentrated in the
state of California; (v) have no less than 73.61% of the mortgaged properties
securing Group II Loans be owner occupied; (vi) have no less than 81.39% of the
mortgaged properties securing Group II Mortgage Loans be single family detached
and de minimis planned unit developments; (vii) have no more than 22.74% of the
Group II Loans be cash-out refinance; (viii) not have any of such group of Group
II Subsequent Mortgage Loans with a loan-to-value ratio greater than 80% not be
covered by a Primary Insurance Policy or the Radian Lender-Paid

                                       12
<PAGE>

PMI Policy; (ix) have no more than 75.20% of the Group II Loans be Mortgage
Loans with an interest only period; and (x) together with the Group II Mortgage
Loans already included in the trust, have no more than 0.58% of such Mortgage
Loans (by aggregate Stated Principal Balance as of the Subsequent Cut-off Date)
secured by mortgaged properties located in any one zip code.

         Notwithstanding the foregoing, any Group II Subsequent Mortgage Loan
may be rejected by any Rating Agency if the inclusion of any such Group II
Subsequent Mortgage Loan would adversely affect the ratings of the Notes. In
addition, minor variances from the characteristics stated above will be
permitted with the consent of the Rating Agencies so long as there are
compensating factors, and the consent of the Rating Agencies to any group of
Group II Subsequent Mortgage Loans shall mean that the representations and
warranties set forth in subsections (c) and (d) above are accurate; provided,
however, that the information furnished to the Rating Agencies in respect of
such Group II Subsequent Mortgage Loans is true and correct in all material
respects. At least one (1) Business Day prior to the applicable Group II
Subsequent Transfer Date, each Rating Agency shall notify the Indenture Trustee
as to which Group II Subsequent Mortgage Loans, if any, shall not be included in
the transfer on such Group II Subsequent Transfer Date; provided, however, that
the RMBS Master Servicer, in its capacity as Originator, shall have delivered to
each Rating Agency at least three (3) Business Days prior to such Group II
Subsequent Transfer Date a computer file acceptable to each Rating Agency
describing the characteristics specified in subsections (c) and (d) above.

         Section 2.07 Conveyance of the Group III Subsequent Mortgage Loans. (a)
Subject to the conditions set forth in paragraph (b) below and in consideration
of the Indenture Trustee's delivery on the applicable Subsequent Transfer Dates,
to or upon the written order of the Depositor, of all or a portion of the
balance of funds in the Group III Pre-Funding Account, the Depositor shall, on
the Subsequent Transfer Date, sell, transfer, assign, set over and convey
without recourse to the Trust Estate, but subject to the other terms and
provisions of this Agreement, all of the right, title and interest of the
Depositor in and to (i) the related Group III Subsequent Mortgage Loans
identified on the Mortgage Loan Schedule attached to the related Group III
Subsequent Transfer Instrument delivered by the Depositor on the Subsequent
Transfer Date, (ii) all interest accruing thereon on and after the Subsequent
Cut-off Date (with respect to the Group III Subsequent Mortgage Loans) and all
collections in respect of interest and principal due after the Subsequent
Cut-off Date and (iii) all items with respect to such Group III Subsequent
Mortgage Loans to be delivered pursuant to Section 2.03 and the other items in
the related Mortgage Files; provided, however, that the Depositor reserves and
retains all right, title and interest in and to principal received and interest
accruing on the Group III Subsequent Mortgage Loans prior to the related
Subsequent Cut-off Date. The transfer to the Indenture Trustee for deposit in
the Trust Estate by the Depositor of the Group III Subsequent Mortgage Loans
identified on the Mortgage Loan Schedule shall be absolute and is intended by
the Depositor, the RMBS Master Servicer, the Indenture Trustee and the
Noteholders to constitute and to be treated as a sale of the Group III
Subsequent Mortgage Loans by the Depositor to the Trust Estate. The related
Mortgage File for each Group III Subsequent Mortgage Loan shall be delivered to
the Custodian at least three (3) Business Days prior to the related Subsequent
Transfer Date.

                                       13
<PAGE>

         The purchase price paid by the Indenture Trustee from amounts released
from the Group III Pre-Funding Account shall be one-hundred percent (100%) of
the aggregate Stated Principal Balance of the Group III Subsequent Mortgage
Loans so transferred (as identified on the Mortgage Loan Schedule provided by
the Depositor).

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

                  (i) the Depositor shall have provided the Indenture Trustee
         and the Rating Agencies with a timely Addition Notice, substantially in
         the form of Exhibit H hereto, and shall have provided any information
         reasonably requested by the Indenture Trustee with respect to the Group
         III Subsequent Mortgage Loans;

                  (ii)     the Depositor shall have delivered to the Indenture
         Trustee a duly executed Group I Subsequent Transfer Instrument (which
         the Indenture Trustee is hereby authorized to execute), which shall
         include a Mortgage Loan Schedule listing the Group III Subsequent
         Mortgage Loans, and the RMBS Master Servicer, in its capacity as
         Originator, shall have delivered a computer file containing such
         Mortgage Loan Schedule to the Indenture Trustee at least three (3)
         Business Days prior to the related Group III Subsequent Transfer Date;

                  (iii)    as of each Group III Subsequent Transfer Date, as
         evidenced by delivery of the related Group III Subsequent Transfer
         Instrument, substantially in the form of Exhibit G, the Depositor shall
         not be insolvent nor shall it have been rendered insolvent by such
         transfer nor shall it be aware of any pending insolvency;

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

                  (v)      the Funding Period shall not have terminated;

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

                  (vii)    the Depositor shall have delivered to the Indenture
         Trustee the related Group III Subsequent Transfer Instrument confirming
         the satisfaction of all the conditions specified in this Section 2.07
         and, pursuant to such Group III Subsequent Transfer Instrument,
         assigned to the Indenture Trustee without recourse for the benefit of
         the Noteholders all the right, title and interest of the Depositor, in,
         to and under the applicable Group III Subsequent Mortgage Loan Purchase
         Agreement, to the extent of the related Group III Subsequent Mortgage
         Loans; and

                                       14
<PAGE>

                  (viii)   the Depositor shall have delivered to the Indenture
         Trustee an Opinion of Counsel addressed to the Indenture Trustee and
         the Rating Agencies with respect to the transfer of the applicable
         Group III Subsequent Mortgage Loans substantially in the form of the
         Opinion of Counsel delivered to the Indenture Trustee on the Closing
         Date regarding the validity of the conveyance and the true sale of such
         Group III Subsequent Mortgage Loans.

         (c)      The obligation of the Trust Estate to purchase a Group III
Subsequent Mortgage Loan on any Subsequent Transfer Date is subject to the
satisfaction of the conditions set forth in the immediately following paragraph
and the accuracy of the following representations and warranties with respect to
each such Group III Subsequent Mortgage Loan determined as of the applicable
Subsequent Cut-off Date: (i) such Mortgage Loan may not be 30 or more days
delinquent as of the last day of the month preceding the Subsequent Cut-off
Date; (ii) the original term to stated maturity of such Mortgage Loan will be
360 months; (iii) each Group III Subsequent Mortgage Loan must be an
adjustable-rate Mortgage Loan with a first lien on the related mortgaged
property; (iv) no Group III Subsequent Mortgage Loan will have a first Payment
Date occurring after April 1, 2005; (v) the latest maturity date of any Group
III Subsequent Mortgage Loan will be no later than March 1, 2035; (vi) none of
the Group III Subsequent Mortgage Loans will be a buydown loan; (vii) such
Mortgage Loan will have a credit score of not less than 613; (viii) such
Mortgage Loan will have a Mortgage Rate as of the applicable Subsequent Cut-off
Date ranging from approximately 2.375% per annum to approximately 8.250% per
annum; (ix) none of the Group III Subsequent Mortgage loans will be a New York
State "high cost" loan; and (x) such Group III Subsequent Mortgage Loan shall
have been underwritten in accordance with the criteria set forth under "The
Mortgage Pool--Underwriting Standards" in the Prospectus Supplement.

         (d)      In addition, following the purchase of any Group III
Subsequent Mortgage Loan by the Trust, the applicable Group III Subsequent
Mortgage Loans will as of the related Subsequent Cut-off Date: (i) have a
weighted average Mortgage Rate ranging from 3.484% to 3.584% per annum; (ii)
consist of Mortgage Loans with prepayment charges representing no less than
approximately 3.51% of the Pool Balance; (iii) have a weighted average credit
score ranging from 706 to 712; (iv) have no more than 40.12% of such Mortgage
Loans concentrated in the state of California; (v) have no less than 88.79% of
the mortgaged properties securing Group III Loans be owner occupied; (vi) have
no less than 88.90% of the mortgaged properties securing Group III Mortgage
Loans be single family detached and de minimis planned unit developments; (vii)
have no more than 29.60% of the Group III Loans be cash-out refinance; (viii)
not have any of such group of Group III Subsequent Mortgage Loans with a
loan-to-value ratio greater than 80% not be covered by a Primary Insurance
Policy or the Radian Lender-Paid PMI Policy; (ix) have no more than 89.60% of
the Group III Loans be Mortgage Loans with an interest only period; and (x)
together with the Group III Mortgage Loans already included in the trust, have
no more than 1.10% of such Mortgage Loans (by aggregate Stated Principal Balance
as of the Subsequent Cut-off Date) secured by mortgaged properties located in
any one zip code.

         Notwithstanding the foregoing, any Group III Subsequent Mortgage Loan
may be rejected by any Rating Agency if the inclusion of any such Group III
Subsequent Mortgage Loan would adversely affect the ratings of the Notes. In
addition, minor variances from the

                                       15
<PAGE>

characteristics stated above will be permitted with the consent of the Rating
Agencies so long as there are compensating factors, and the consent of the
Rating Agencies to any group of Group III Subsequent Mortgage Loans shall mean
that the representations and warranties set forth in subsections (c) and (d)
above are accurate; provided, however, that the information furnished to the
Rating Agencies in respect of such Group III Subsequent Mortgage Loans is true
and correct in all material respects. At least one (1) Business Day prior to the
applicable Group IV Subsequent Transfer Date, each Rating Agency shall notify
the Indenture Trustee as to which Group IV Subsequent Mortgage Loans, if any,
shall not be included in the transfer on such Group IV Subsequent Transfer Date;
provided, however, that the RMBS Master Servicer, in its capacity as Originator,
shall have delivered to each Rating Agency at least three (3) Business Days
prior to such Group IV Subsequent Transfer Date a computer file acceptable to
each Rating Agency describing the characteristics specified in subsections (c)
and (d) above.

         Section 2.08 Conveyance of the Group IV Subsequent Mortgage Loans. (a)
Subject to the conditions set forth in paragraph (b) below and in consideration
of the Indenture Trustee's delivery on the applicable Subsequent Transfer Dates,
to or upon the written order of the Depositor, of all or a portion of the
balance of funds in the Group IV Pre-Funding Account, the Depositor shall, on
the Subsequent Transfer Date, sell, transfer, assign, set over and convey
without recourse to the Trust Estate, but subject to the other terms and
provisions of this Agreement, all of the right, title and interest of the
Depositor in and to (i) the related Group IV Subsequent Mortgage Loans
identified on the Mortgage Loan Schedule attached to the related Group IV
Subsequent Transfer Instrument delivered by the Depositor on the Subsequent
Transfer Date, (ii) all interest accruing thereon on and after the Subsequent
Cut-off Date (with respect to the Group IV Subsequent Mortgage Loans) and all
collections in respect of interest and principal due after the Subsequent
Cut-off Date and (iii) all items with respect to such Group IV Subsequent
Mortgage Loans to be delivered pursuant to Section 2.03 and the other items in
the related Mortgage Files; provided, however, that the Depositor reserves and
retains all right, title and interest in and to principal received and interest
accruing on the Group IV Subsequent Mortgage Loans prior to the related
Subsequent Cut-off Date. The transfer to the Indenture Trustee for deposit in
the Trust Estate by the Depositor of the Group IV Subsequent Mortgage Loans
identified on the Mortgage Loan Schedule shall be absolute and is intended by
the Depositor, the RMBS Master Servicer, the Indenture Trustee and the
Noteholders to constitute and to be treated as a sale of the Group IV Subsequent
Mortgage Loans by the Depositor to the Trust Estate. The related Mortgage File
for each Group IV Subsequent Mortgage Loan shall be delivered to the Custodian
at least three (3) Business Days prior to the related Subsequent Transfer Date.

         The purchase price paid by the Indenture Trustee from amounts released
from the Group IV Pre-Funding Account shall be one-hundred percent (100%) of the
aggregate Stated Principal Balance of the Group IV Subsequent Mortgage Loans so
transferred (as identified on the Mortgage Loan Schedule provided by the
Depositor).

         (b)      The Depositor shall transfer to the Indenture Trustee for
deposit in the Trust Estate the applicable Group IV Subsequent Mortgage Loans
and the other property and rights related thereto as described in paragraph (a)
above, and the Indenture Trustee shall release such

                                       16
<PAGE>

applicable funds from the Group IV Pre-Funding Account, only upon the
satisfaction of each of the following conditions on or prior to the Subsequent
Transfer Date:

                  (i)      the Depositor shall have provided the Indenture
         Trustee and the Rating Agencies with a timely Addition Notice and shall
         have provided any information reasonably requested by the Indenture
         Trustee with respect to the Group IV Subsequent Mortgage Loans;

                  (ii)     the Depositor shall have delivered to the Indenture
         Trustee a duly executed Group I Subsequent Transfer Instrument (which
         the Indenture Trustee is hereby authorized to execute), which shall
         include a Mortgage Loan Schedule listing the Group IV Subsequent
         Mortgage Loans, and the RMBS Master Servicer, in its capacity as
         Originator, shall have delivered a computer file containing such
         Mortgage Loan Schedule to the Indenture Trustee at least three (3)
         Business Days prior to the related Group IV Subsequent Transfer Date;

                  (iii)    as of each Group IV Subsequent Transfer Date, as
         evidenced by delivery of the related Group IV Subsequent Transfer
         Instrument, substantially in the form of Exhibit G, the Depositor shall
         not be insolvent nor shall it have been rendered insolvent by such
         transfer nor shall it be aware of any pending insolvency;

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

                  (v)      the Funding Period shall not have terminated;

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

                  (vii)    the Depositor shall have delivered to the Indenture
         Trustee the related Group IV Subsequent Transfer Instrument confirming
         the satisfaction of all the conditions specified in this Section 2.08
         and, pursuant to such Group IV Subsequent Transfer Instrument, assigned
         to the Indenture Trustee without recourse for the benefit of the
         Noteholders all the right, title and interest of the Depositor, in, to
         and under the applicable Group IV Subsequent Mortgage Loan Purchase
         Agreement, to the extent of the related Group IV Subsequent Mortgage
         Loans; and

                  (viii)   the Depositor shall have delivered to the Indenture
         Trustee an Opinion of Counsel addressed to the Indenture Trustee and
         the Rating Agencies with respect to the transfer of the applicable
         Group IV Subsequent Mortgage Loans substantially in the form of the
         Opinion of Counsel delivered to the Indenture Trustee on the Closing
         Date regarding the validity of the conveyance and the true sale of such
         Group IV Subsequent Mortgage Loans.

         (c)      The obligation of the Trust Estate to purchase a Group IV
Subsequent Mortgage Loan on any Subsequent Transfer Date is subject to the
satisfaction of the conditions set forth in

                                       17
<PAGE>

the immediately following paragraph and the accuracy of the following
representations and warranties with respect to each such Group IV Subsequent
Mortgage Loan determined as of the applicable Subsequent Cut-off Date: (i) such
Mortgage Loan may not be 30 or more days delinquent as of the last day of the
month preceding the Subsequent Cut-off Date; (ii) the original term to stated
maturity of such Mortgage Loan will be 360 months; (iii) each Group IV
Subsequent Mortgage Loan must be an adjustable-rate Mortgage Loan with a first
lien on the related mortgaged property; (iv) no Group IV Subsequent Mortgage
Loan will have a first Payment Date occurring after April 1, 2035; (v) the
latest maturity date of any Group IV Subsequent Mortgage Loan will be no later
than March 1, 2035; (vi) none of the Group IV Subsequent Mortgage Loans will be
a buydown loan; (vii) such Mortgage Loan will have a credit score of not less
than 464; (viii) such Mortgage Loan will have a Mortgage Rate as of the
applicable Subsequent Cut-off Date ranging from approximately 3.500% per annum
to approximately 8.875% per annum; (ix) none of the Group IV Subsequent Mortgage
loans will be a New York State "high cost" loan; and (x) such Group IV
Subsequent Mortgage Loan shall have been underwritten in accordance with the
criteria set forth under "The Mortgage Pool--Underwriting Standards" in the
Prospectus Supplement.

         (d)      In addition, following the purchase of any Group IV Subsequent
Mortgage Loan by the Trust, the applicable Group IV Subsequent Mortgage Loans
will as of the related Subsequent Cut-off Date: (i) have a weighted average
Mortgage Rate ranging from 5.681% to 5.781% per annum; (ii) consist of Mortgage
Loans with prepayment charges representing no less than approximately 5.69% of
the Pool Balance; (iii) have a weighted average credit score ranging from 704 to
711; (iv) have no more than 14.39% of such Mortgage Loans concentrated in the
state of California; (v) have no less than 72.223% of the mortgaged properties
securing Group IV Loans be owner occupied; (vi) have no less than 80.17% of the
mortgaged properties securing Group IV Mortgage Loans be single family detached
and de minimis planned unit developments; (vii) have no more than 24.07% of the
Group IV Loans be cash-out refinance; (viii) not have any of such group of Group
IV Subsequent Mortgage Loans with a loan-to-value ratio greater than 80% not be
covered by a Primary Insurance Policy or the Radian Lender-Paid PMI Policy; (ix)
have no more than 81.02% of the Group IV Loans be Mortgage Loans with an
interest only period; and (x) together with the Group IV Mortgage Loans already
included in the trust, have no more than 0.53% of such Mortgage Loans (by
aggregate Stated Principal Balance as of the Subsequent Cut-off Date) secured by
mortgaged properties located in any one zip code.

         Notwithstanding the foregoing, any Group IV Subsequent Mortgage Loan
may be rejected by any Rating Agency if the inclusion of any such Group IV
Subsequent Mortgage Loan would adversely affect the ratings of the Notes. In
addition, minor variances from the characteristics stated above will be
permitted with the consent of the Rating Agencies so long as there are
compensating factors, and the consent of the Rating Agencies to any group of
Group IV Subsequent Mortgage Loans shall mean that the representations and
warranties set forth in subsections (c) and (d) above are accurate; provided,
however, that the information furnished to the Rating Agencies in respect of
such Group IV Subsequent Mortgage Loans is true and correct in all material
respects. At least one (1) Business Day prior to the applicable Group IV
Subsequent Transfer Date, each Rating Agency shall notify the Indenture Trustee
as to which Group IV Subsequent Mortgage Loans, if any, shall not be included in
the transfer on such Group IV Subsequent Transfer Date; provided, however, that
the RMBS Master Servicer, in its

                                       18
<PAGE>

capacity as Originator, shall have delivered to each Rating Agency at least
three (3) Business Days prior to such Group IV Subsequent Transfer Date a
computer file acceptable to each Rating Agency describing the characteristics
specified in subsections (c) and (d) above.

         Section 2.09 Conveyance of the Group V Subsequent Mortgage Loans. (a)
Subject to the conditions set forth in paragraph (b) below and in consideration
of the Indenture Trustee's delivery on the applicable Subsequent Transfer Dates,
to or upon the written order of the Depositor, of all or a portion of the
balance of funds in the Group V Pre-Funding Account, the Depositor shall, on the
Subsequent Transfer Date, sell, transfer, assign, set over and convey without
recourse to the Trust Estate, but subject to the other terms and provisions of
this Agreement, all of the right, title and interest of the Depositor in and to
(i) the related Group V Subsequent Mortgage Loans identified on the Mortgage
Loan Schedule attached to the related Group V Subsequent Transfer Instrument
delivered by the Depositor on the Subsequent Transfer Date, (ii) all interest
accruing thereon on and after the Subsequent Cut-off Date (with respect to the
Group V Subsequent Mortgage Loans) and all collections in respect of interest
and principal due after the Subsequent Cut-off Date and (iii) all items with
respect to such Group V Subsequent Mortgage Loans to be delivered pursuant to
Section 2.03 and the other items in the related Mortgage Files; provided,
however, that the Depositor reserves and retains all right, title and interest
in and to principal received and interest accruing on the Group V Subsequent
Mortgage Loans prior to the related Subsequent Cut-off Date. The transfer to the
Indenture Trustee for deposit in the Trust Estate by the Depositor of the Group
V Subsequent Mortgage Loans identified on the Mortgage Loan Schedule shall be
absolute and is intended by the Depositor, the RMBS Master Servicer, the
Indenture Trustee and the Noteholders to constitute and to be treated as a sale
of the Group V Subsequent Mortgage Loans by the Depositor to the Trust Estate.
The related Mortgage File for each Group V Subsequent Mortgage Loan shall be
delivered to the Custodian at least three (3) Business Days prior to the related
Subsequent Transfer Date.

         The purchase price paid by the Indenture Trustee from amounts released
from the Group V Pre-Funding Account shall be one-hundred percent (100%) of the
aggregate Stated Principal Balance of the Group V Subsequent Mortgage Loans so
transferred (as identified on the Mortgage Loan Schedule provided by the
Depositor).

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

                  (i)      the Depositor shall have provided the Indenture
         Trustee and the Rating Agencies with a timely Addition Notice and shall
         have provided any information reasonably requested by the Indenture
         Trustee with respect to the Group V Subsequent Mortgage Loans;

                  (ii)     the Depositor shall have delivered to the Indenture
         Trustee a duly executed Group I Subsequent Transfer Instrument (which
         the Indenture Trustee is hereby

                                       19
<PAGE>

         authorized to execute), which shall include a Mortgage Loan Schedule
         listing the Group V Subsequent Mortgage Loans, and the RMBS Master
         Servicer, in its capacity as Originator, shall have delivered a
         computer file containing such Mortgage Loan Schedule to the Indenture
         Trustee at least three (3) Business Days prior to the related Group V
         Subsequent Transfer Date; (iii) as of each Group V Subsequent Transfer
         Date, as evidenced by delivery of the related Group V Subsequent
         Transfer Instrument, substantially in the form of Exhibit G, the
         Depositor shall not be insolvent nor shall it have been rendered
         insolvent by such transfer nor shall it be aware of any pending
         insolvency;

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

                  (v)      the Funding Period shall not have terminated;

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

                  (vii)    the Depositor shall have delivered to the Indenture
         Trustee the related Group V Subsequent Transfer Instrument confirming
         the satisfaction of all the conditions specified in this Section 2.09
         and, pursuant to such Group V Subsequent Transfer Instrument, assigned
         to the Indenture Trustee without recourse for the benefit of the
         Noteholders all the right, title and interest of the Depositor, in, to
         and under the applicable Group V Subsequent Mortgage Loan Purchase
         Agreement, to the extent of the related Group V Subsequent Mortgage
         Loans; and

                  (viii)   the Depositor shall have delivered to the Indenture
         Trustee an Opinion of Counsel addressed to the Indenture Trustee and
         the Rating Agencies with respect to the transfer of the applicable
         Group V Subsequent Mortgage Loans substantially in the form of the
         Opinion of Counsel delivered to the Indenture Trustee on the Closing
         Date regarding the validity of the conveyance and the true sale of such
         Group V Subsequent Mortgage Loans.

         (c)      The obligation of the Trust Estate to purchase a Group V
Subsequent Mortgage Loan on any Subsequent Transfer Date is subject to the
satisfaction of the conditions set forth in the immediately following paragraph
and the accuracy of the following representations and warranties with respect to
each such Group V Subsequent Mortgage Loan determined as of the applicable
Subsequent Cut-off Date: (i) such Mortgage Loan may not be 30 or more days
delinquent as of the last day of the month preceding the Subsequent Cut-off
Date; (ii) the original term to stated maturity of such Mortgage Loan will be
360 months; (iii) each Group V Subsequent Mortgage Loan must be an
adjustable-rate Mortgage Loan with a first lien on the related mortgaged
property; (iv) no Group V Subsequent Mortgage Loan will have a first Payment
Date occurring after April 1, 2035; (v) the latest maturity date of any Group V
Subsequent Mortgage Loan will be no later than March 1, 2035; (vi) none of the
Group V

                                       20
<PAGE>

Subsequent Mortgage Loans will be a buydown loan; (vii) such Mortgage Loan will
have a credit score of not less than 556; (viii) such Mortgage Loan will have a
Mortgage Rate as of the applicable Subsequent Cut-off Date ranging from
approximately 4.000% per annum to approximately 7.875% per annum; (ix) none of
the Group V Subsequent Mortgage loans will be a New York State "high cost" loan;
and (x) such Group V Subsequent Mortgage Loan shall have been underwritten in
accordance with the criteria set forth under "The Mortgage Pool--Underwriting
Standards" in the Prospectus Supplement.

         (d)      In addition, following the purchase of any Group V Subsequent
Mortgage Loan by the Trust, the applicable Group V Subsequent Mortgage Loans
will as of the related Subsequent Cut-off Date: (i) have a weighted average
Mortgage Rate ranging from 5.451% to 5.551% per annum; (ii) consist of Mortgage
Loans with prepayment charges representing no less than approximately 4.38% of
the Pool Balance; (iii) have a weighted average credit score ranging from 710 to
716; (iv) have no more than 37.23% of such Mortgage Loans concentrated in the
state of California; (v) have no less than 90.69% of the mortgaged properties
securing Group V Loans be owner occupied; (vi) have no less than 87.34% of the
mortgaged properties securing Group V Mortgage Loans be single family detached
and de minimis planned unit developments; (vii) have no more than 32.14% of the
Group V Loans be cash-out refinance; (viii) not have any of such group of Group
V Subsequent Mortgage Loans with a loan-to-value ratio greater than 80% not be
covered by a Primary Insurance Policy or the Radian Lender-Paid PMI Policy; (ix)
have no more than 81.28% of the Group V Loans be Mortgage Loans with an interest
only period; and (x) together with the Group V Mortgage Loans already included
in the trust, have no more than 1.42% of such Mortgage Loans (by aggregate
Stated Principal Balance as of the Subsequent Cut-off Date) secured by mortgaged
properties located in any one zip code.

         Notwithstanding the foregoing, any Group V Subsequent Mortgage Loan may
be rejected by any Rating Agency if the inclusion of any such Group V Subsequent
Mortgage Loan would adversely affect the ratings of the Notes. In addition,
minor variances from the characteristics stated above will be permitted with the
consent of the Rating Agencies so long as there are compensating factors, and
the consent of the Rating Agencies to any group of Group V Subsequent Mortgage
Loans shall mean that the representations and warranties set forth in
subsections (c) and (d) above are accurate; provided, however, that the
information furnished to the Rating Agencies in respect of such Group V
Subsequent Mortgage Loans is true and correct in all material respects. At least
one (1) Business Day prior to the applicable Group V Subsequent Transfer Date,
each Rating Agency shall notify the Indenture Trustee as to which Group V
Subsequent Mortgage Loans, if any, shall not be included in the transfer on such
Group V Subsequent Transfer Date; provided, however, that the RMBS Master
Servicer, in its capacity as Originator, shall have delivered to each Rating
Agency at least three (3) Business Days prior to such Group V Subsequent
Transfer Date a computer file acceptable to each Rating Agency describing the
characteristics specified in subsections (c) and (d) above.

         Section 2.10 Conveyance of the Group VI Subsequent Mortgage Loans. (a)
Subject to the conditions set forth in paragraph (b) below and in consideration
of the Indenture Trustee's delivery on the applicable Subsequent Transfer Dates,
to or upon the written order of the Depositor, of all or a portion of the
balance of funds in the Group VI Pre-Funding Account, the Depositor shall, on
the Subsequent Transfer Date, sell, transfer, assign, set over and convey

                                       21
<PAGE>

without recourse to the Trust Estate, but subject to the other terms and
provisions of this Agreement, all of the right, title and interest of the
Depositor in and to (i) the related Group VI Subsequent Mortgage Loans
identified on the Mortgage Loan Schedule attached to the related Group VI
Subsequent Transfer Instrument delivered by the Depositor on the Subsequent
Transfer Date, (ii) all interest accruing thereon on and after the Subsequent
Cut-off Date (with respect to the Group VI Subsequent Mortgage Loans) and all
collections in respect of interest and principal due after the Subsequent
Cut-off Date and (iii) all items with respect to such Group VI Subsequent
Mortgage Loans to be delivered pursuant to Section 2.03 and the other items in
the related Mortgage Files; provided, however, that the Depositor reserves and
retains all right, title and interest in and to principal received and interest
accruing on the Group VI Subsequent Mortgage Loans prior to the related
Subsequent Cut-off Date. The transfer to the Indenture Trustee for deposit in
the Trust Estate by the Depositor of the Group VI Subsequent Mortgage Loans
identified on the Mortgage Loan Schedule shall be absolute and is intended by
the Depositor, the RMBS Master Servicer, the Indenture Trustee and the
Noteholders to constitute and to be treated as a sale of the Group VI Subsequent
Mortgage Loans by the Depositor to the Trust Estate. The related Mortgage File
for each Group VI Subsequent Mortgage Loan shall be delivered to the Custodian
at least three (3) Business Days prior to the related Subsequent Transfer Date.

         The purchase price paid by the Indenture Trustee from amounts released
from the Group V Pre-Funding Account shall be one-hundred percent (100%) of the
aggregate Stated Principal Balance of the Group VI Subsequent Mortgage Loans so
transferred (as identified on the Mortgage Loan Schedule provided by the
Depositor).

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

                  (i)      the Depositor shall have provided the Indenture
         Trustee and the Rating Agencies with a timely Addition Notice and shall
         have provided any information reasonably requested by the Indenture
         Trustee with respect to the Group VI Subsequent Mortgage Loans;

                  (ii)     the Depositor shall have delivered to the Indenture
         Trustee a duly executed Group I Subsequent Transfer Instrument (which
         the Indenture Trustee is hereby authorized to execute), which shall
         include a Mortgage Loan Schedule listing the Group VI Subsequent
         Mortgage Loans, and the RMBS Master Servicer, in its capacity as
         Originator, shall have delivered a computer file containing such
         Mortgage Loan Schedule to the Indenture Trustee at least three (3)
         Business Days prior to the related Group VI Subsequent Transfer Date;

                  (iii)    as of each Group VI Subsequent Transfer Date, as
         evidenced by delivery of the related Group VI Subsequent Transfer
         Instrument, substantially in the form of

                                       22
<PAGE>

         Exhibit G, the Depositor shall not be insolvent nor shall it have been
         rendered insolvent by such transfer nor shall it be aware of any
         pending insolvency;

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

                  (v)      the Funding Period shall not have terminated;

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

                  (vii)    the Depositor shall have delivered to the Indenture
         Trustee the related Group VI Subsequent Transfer Instrument confirming
         the satisfaction of all the conditions specified in this Section 2.10
         and, pursuant to such Group VI Subsequent Transfer Instrument, assigned
         to the Indenture Trustee without recourse for the benefit of the
         Noteholders all the right, title and interest of the Depositor, in, to
         and under the applicable Group VI Subsequent Mortgage Loan Purchase
         Agreement, to the extent of the related Group VI Subsequent Mortgage
         Loans; and

                  (viii)   the Depositor shall have delivered to the Indenture
         Trustee an Opinion of Counsel addressed to the Indenture Trustee and
         the Rating Agencies with respect to the transfer of the applicable
         Group VI Subsequent Mortgage Loans substantially in the form of the
         Opinion of Counsel delivered to the Indenture Trustee on the Closing
         Date regarding the validity of the conveyance and the true sale of such
         Group VI Subsequent Mortgage Loans.

         (c)      The obligation of the Trust Estate to purchase a Group VI
Subsequent Mortgage Loan on any Subsequent Transfer Date is subject to the
satisfaction of the conditions set forth in the immediately following paragraph
and the accuracy of the following representations and warranties with respect to
each such Group VI Subsequent Mortgage Loan determined as of the applicable
Subsequent Cut-off Date: (i) such Mortgage Loan may not be 30 or more days
delinquent as of the last day of the month preceding the Subsequent Cut-off
Date; (ii) the original term to stated maturity of such Mortgage Loan will be
346 months; (iii) each Group VI Subsequent Mortgage Loan must be fixed rate
Mortgage Loan with a first lien on the related mortgaged property; (iv) no Group
VI Subsequent Mortgage Loan will have a first Payment Date occurring after April
1, 2035; (v) the latest maturity date of any Group VI Subsequent Mortgage Loan
will be no later than March 1, 2035; (vi) none of the Group VI Subsequent
Mortgage Loans will be a buydown loan; (vii) such Mortgage Loan will have a
credit score of not less than 453; (viii) such Mortgage Loan will have a
Mortgage Rate as of the applicable Subsequent Cut-off Date ranging from
approximately 4.500% per annum to approximately 9.000% per annum; (ix) none of
the Group VI Subsequent Mortgage loans will be a New York State "high cost"
loan; and (x) such Group VI Subsequent Mortgage Loan shall have been
underwritten in accordance with the criteria set forth under "The Mortgage
Pool--Underwriting Standards" in the Prospectus Supplement.

                                       23
<PAGE>

         (d)      In addition, following the purchase of any Group VI Subsequent
Mortgage Loan by the Trust, the applicable Group VI Subsequent Mortgage Loans
will as of the related Subsequent Cut-off Date: (i) have a weighted average
Mortgage Rate ranging from 6.617% to 6.717% per annum; (ii) consist of Mortgage
Loans with prepayment charges representing no less than approximately 0.00% of
the Pool Balance; (iii) have a weighted average credit score ranging from 671 to
677; (iv) have no more than 6.61% of such Mortgage Loans concentrated in the
state of California; (v) have no less than 70.76% of the mortgaged properties
securing Group VI Loans be owner occupied; (vi) have no less than 78.44% of the
mortgaged properties securing Group VI Mortgage Loans be single family detached
and de minimis planned unit developments; (vii) have no more than 40.656% of the
Group VI Loans be cash-out refinance; (viii) not have any of such group of Group
VI Subsequent Mortgage Loans with a loan-to-value ratio greater than 80% not be
covered by a Primary Insurance Policy or the Radian Lender-Paid PMI Policy; (ix)
have no more than 12.79% of the Group VI Loans be Mortgage Loans with an
interest only period; and (x) together with the Group VI Mortgage Loans already
included in the trust, have no more than 0.41% of such Mortgage Loans (by
aggregate Stated Principal Balance as of the Subsequent Cut-off Date) secured by
mortgaged properties located in any one zip code.

         Notwithstanding the foregoing, any Group VI Subsequent Mortgage Loan
may be rejected by any Rating Agency if the inclusion of any such Group VI
Subsequent Mortgage Loan would adversely affect the ratings of the Notes. In
addition, minor variances from the characteristics stated above will be
permitted with the consent of the Rating Agencies so long as there are
compensating factors, and the consent of the Rating Agencies to any group of
Group VI Subsequent Mortgage Loans shall mean that the representations and
warranties set forth in subsections (c) and (d) above are accurate; provided,
however, that the information furnished to the Rating Agencies in respect of
such Group VI Subsequent Mortgage Loans is true and correct in all material
respects. At least one (1) Business Day prior to the applicable Group VI
Subsequent Transfer Date, each Rating Agency shall notify the Indenture Trustee
as to which Group VI Subsequent Mortgage Loans, if any, shall not be included in
the transfer on such Group VI Subsequent Transfer Date; provided, however, that
the RMBS Master Servicer, in its capacity as Originator, shall have delivered to
each Rating Agency at least three (3) Business Days prior to such Group VI
Subsequent Transfer Date a computer file acceptable to each Rating Agency
describing the characteristics specified in subsections (c) and (d) above.

         Section 2.11 Conveyance of the Group VII Subsequent HELOC Mortgage
Loans. (a) Subject to the conditions set forth in paragraph (b) below and in
consideration of the Indenture Trustee's delivery on the applicable Subsequent
Transfer Dates, to or upon the written order of the Depositor, of all or a
portion of the balance of funds in the Group VII Pre-Funding Account, the
Depositor shall, on the Subsequent Transfer Date, sell, transfer, assign, set
over and convey without recourse to the Trust Estate, but subject to the other
terms and provisions of this Agreement, all of the right, title and interest of
the Depositor in and to (i) the related Group VII Subsequent Mortgage Loans
(including all Additional Balances resulting from Draws made pursuant to the
related Subsequent HELOC Mortgage Loan prior to the termination of the Trust)
identified on the Mortgage Loan Schedule attached to the related Group VII
Subsequent Transfer Instrument delivered by the Depositor on the Subsequent
Transfer Date, (ii) all interest accruing thereon on and after the Subsequent
Cut-off Date (with respect to the Group VII Subsequent Mortgage Loans) and all
collections in respect of interest and principal due after the Subsequent

                                       24
<PAGE>

Cut-off Date and (iii) all items with respect to such Group VII Subsequent
Mortgage Loans to be delivered pursuant to Section 2.03 and the other items in
the related Mortgage Files; provided, however, that the Depositor reserves and
retains all right, title and interest in and to principal received and interest
accruing on the Group VII Subsequent Mortgage Loans prior to the related
Subsequent Cut-off Date. The transfer to the Indenture Trustee for deposit in
the Trust Estate by the Depositor of the Group VII Subsequent Mortgage Loans
identified on the Mortgage Loan Schedule shall be absolute and is intended by
the Depositor, the HELOC Master Servicer, the Indenture Trustee and the
Noteholders to constitute and to be treated as a sale of the Group VII
Subsequent Mortgage Loans by the Depositor to the Trust Estate. The related
Mortgage File for each Group VII Subsequent Mortgage Loan shall be delivered to
the Custodian at least three (3) Business Days prior to the related Subsequent
Transfer Date.

         The purchase price paid by the Indenture Trustee from amounts released
from the Group VII Pre-Funding Account shall be one-hundred percent (100%) of
the aggregate Stated Principal Balance of the Group VII Subsequent Mortgage
Loans so transferred (as identified on the Mortgage Loan Schedule provided by
the Depositor).

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

                  (i)      the Depositor shall have provided the Indenture
         Trustee, the Insurer and the Rating Agencies with a timely Addition
         Notice and shall have provided any information reasonably requested by
         the Indenture Trustee with respect to the Group VII Subsequent Mortgage
         Loans;

                  (ii)     the Depositor shall have delivered to the Indenture
         Trustee a duly executed Group VII Subsequent Transfer Instrument (which
         the Indenture Trustee is hereby authorized to execute), which shall
         include a Mortgage Loan Schedule listing the Group VII Subsequent
         Mortgage Loans and shall have delivered or cause to be delivered a
         computer file containing such Mortgage Loan Schedule to the Indenture
         Trustee at least three (3) Business Days prior to the related Group VII
         Subsequent Transfer Date;

                  (iii)    as of each Group VII Subsequent Transfer Date, as
         evidenced by delivery of the related Group VII Subsequent Transfer
         Instrument, substantially in the form of Exhibit G, the Depositor shall
         not be insolvent nor shall it have been rendered insolvent by such
         transfer nor shall it be aware of any pending insolvency;

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

                  (v)      the Funding Period shall not have terminated;

                                       25
<PAGE>

                  (vi)     the Depositor shall not have selected the applicable
         Group VII Subsequent Mortgage Loans in a manner that it believed to be
         adverse to the interests of the Noteholders or the Insurer;

                  (vii)    the Depositor shall have delivered to the Indenture
         Trustee the related Group VII Subsequent Transfer Instrument confirming
         the satisfaction of all the conditions specified in this Section 2.11
         and, pursuant to such Group VII Subsequent Transfer Instrument,
         assigned to the Indenture Trustee without recourse for the benefit of
         the Class VII-A Noteholders and the Insurer all the right, title and
         interest of the Depositor, in, to and under the applicable Group VII
         Subsequent Mortgage Loan Purchase Agreement, to the extent of the
         related Group VII Subsequent Mortgage Loans; and

                  (viii)   the Depositor shall have delivered to the Indenture
         Trustee an Opinion of Counsel addressed to the Indenture Trustee, the
         Insurer and the Rating Agencies with respect to the transfer of the
         applicable Group VII Subsequent Mortgage Loans substantially in the
         form of the Opinion of Counsel delivered to the Indenture Trustee on
         the Closing Date regarding the validity of the conveyance and the true
         sale of such Group VII Subsequent Mortgage Loans.

         (c)      The obligation of the Trust Estate to purchase a Group VII
Subsequent Mortgage Loan on any Subsequent Transfer Date is subject to the
satisfaction of the conditions set forth in the immediately following paragraph
and the accuracy of the following representations and warranties with respect to
each such Group VII Subsequent Mortgage Loan determined as of the applicable
Subsequent Cut-off Date: (i) such HELOC Mortgage Loan may not be 30 or more days
delinquent as of the Subsequent Transfer Date; (ii) the remaining term to stated
maturity of such HELOC Mortgage Loans will not exceed 300 months; (iii) such
HELOC Mortgage Loan will be secured by a mortgage in a first or second lien
position; (iv) such HELOC Mortgage Loan will have a fully-indexed margin between
0.000% and 7.000%; (v) each HELOC will have a credit limit less than $550,000;
(vi) each HELOC Mortgage Loan will have a combined loan-to-value ratio less than
or equal to 101%; (vii) each HELOC Mortgage Loan will have a credit limit
utilization rate less than or equal to 101%; (vii) each HELOC Mortgage Loan will
have a credit score greater than or equal to 590; (ix) no HELOC Mortgage Loan
will provide for negative amortization; and (x) such HELOC Mortgage Loan shall
have been underwritten substantially in accordance with the criteria set forth
under "Description of the Mortgage Pool--Underwriting Standards" in the
Prospectus.

         (d)      In addition, following the purchase of any Group VII
Subsequent Mortgage Loan by the Trust, the applicable Group VII Subsequent
Mortgage Loans will as of the related Subsequent Cut-off Date: (i) a weighted
average fully-indexed margin of at least 1.10%; (ii) a weighted average combined
loan-to-value ration of no more than 95%; (iii) a weighted average credit score
of 715 or greater; (iv) at least 55% of the HELOC Mortgage Loans in the pool
will be secured by a single family residence; (v) at least 95% of the HELOC
Mortgage Loans in the pool will be secured by an owner-occupied property; (vi)
no more than 25% of the pool will have a loan purpose of cash-out refinance;
(vii) cash-out refinance loans will have a maximum weighted average CLTV of 85%;
(viii) no more than 15% of the pool will have a FICO score

                                       26
<PAGE>

less than 660; (ix) no less than 80% of the pool will have "full documentation";
(x) no more than 37% of the pool will be in the state of California; and (xi) no
more than 15% of the pool will be in any state other than California.

         Notwithstanding the foregoing, any Group VII Subsequent Mortgage Loan
may be rejected by any Rating Agency or the Insurer if the inclusion of any such
Group VII Subsequent Mortgage Loan would adversely affect the ratings of the
Class VII-A Notes without taking the Insurance Policy into account. Also, the
Insurer must approve the Group VII Subsequent Mortgage Loans, which consent
shall not be unreasonably withheld. In addition, minor variances from the
characteristics stated above will be permitted with the consent of the Rating
Agencies and the Insurer so long as there are compensating factors, and the
consent of the Rating Agencies and the Insurer to any group of Group VII
Subsequent Mortgage Loans shall mean that the representations and warranties set
forth in subsections (c) and (d) above are accurate; provided, however, that the
information furnished to the Rating Agencies and the Insurer in respect of such
Group VII Subsequent Mortgage Loans is true and correct in all material
respects. At least one (1) Business Day prior to the applicable Group VII
Subsequent Transfer Date, each Rating Agency or the Insurer shall notify the
Indenture Trustee as to which Group VII Subsequent Mortgage Loans, if any, shall
not be included in the transfer on such Group VII Subsequent Transfer Date;
provided, however, that the Depositor shall have delivered or caused to be
delivered to each Rating Agency and the Insurer at least three (3) Business Days
prior to such Group VII Subsequent Transfer Date a computer file acceptable to
each Rating Agency describing the characteristics specified in subsections (c)
and (d) above.

                                       27
<PAGE>

                                   ARTICLE III

                                    Covenants

         Section 3.01 Collection of Payments with respect to the Mortgage Loans
and HELOC Mortgage Loans. The Indenture Trustee shall establish and maintain an
Eligible Account (the "Payment Account") in which the Indenture Trustee shall
deposit, on the same day as it is received from the related Master Servicer,
each remittance received by the Indenture Trustee with respect to the Mortgage
Loans and HELOC Mortgage Loans. The Indenture Trustee shall make all payments of
principal of and interest on the Notes, subject to Section 3.03, and as provided
in Section 3.05 herein, from monies on deposit in the Payment Account.

         Section 3.02 Maintenance of Office or Agency. The Issuer will maintain
an office or agency where, subject to satisfaction of conditions set forth
herein, Notes may be surrendered for registration of transfer or exchange, and
where notices and demands to or upon the Issuer in respect of the Notes and this
Indenture may be served. The Issuer hereby initially appoints the Indenture
Trustee to serve as its agent for the foregoing purposes. If at any time the
Issuer shall fail to maintain any such office or agency or shall fail to furnish
the Indenture Trustee with the address thereof, such surrenders may be made at
the office of the Indenture Trustee located at 101 Barclay Street, 1E, New York,
New York 10286, Attention: Corporate Trust Window, American Home Mortgage
Securities LLC, Series 2004-4, and notices and demands may be made or served at
the Corporate Trust Office, and the Issuer hereby appoints the Indenture Trustee
as its agent to receive all such surrenders, notices and demands.

         Section 3.03 Money for Payments To Be Held in Trust; Paying Agent. (a)
As provided in Section 3.01, all payments of amounts due and payable with
respect to any Notes that are to be made from amounts withdrawn from the Payment
Account pursuant to Section 3.01 shall be made on behalf of the Issuer by the
Indenture Trustee or by the Paying Agent, and no amounts so withdrawn from the
Payment Account for payments of Notes shall be paid over to the Issuer except as
provided in this Section 3.03. The Issuer hereby appoints the Indenture Trustee
as its Paying Agent.

         The Issuer will cause each Paying Agent other than the Indenture
Trustee to execute and deliver to the Indenture Trustee an instrument in which
such Paying Agent shall agree with the Indenture Trustee (and if the Indenture
Trustee acts as Paying Agent it hereby so agrees), subject to the provisions of
this Section 3.03, that such Paying Agent will:

         (a)      hold all sums held by it for the payment of amounts due with
respect to the Notes in trust for the benefit of the Persons entitled thereto
until such sums shall be paid to such Persons or otherwise disposed of as herein
provided and pay such sums to such Persons as herein provided;

         (b)      give the Indenture Trustee notice of any default by the Issuer
and the Insurer of which it has actual knowledge in the making of any payment
required to be made with respect to the Notes;

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<PAGE>

         (c)      at any time during the continuance of any such default, upon
the written request of the Indenture Trustee, forthwith pay to the Indenture
Trustee all sums so held in trust by such Paying Agent;

         (d)      immediately resign as Paying Agent and forthwith pay to the
Indenture Trustee all sums held by it in trust for the payment of Notes if at
any time it ceases to meet the standards required to be met by a Paying Agent at
the time of its appointment;

         (e)      comply with all requirements of the Code with respect to the
withholding from any payments made by it on any Notes of any applicable
withholding taxes imposed thereon and with respect to any applicable reporting
requirements in connection therewith; and

         (f)      not commence a bankruptcy proceeding against the Issuer in
connection with this Indenture.

         The Issuer may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, by Issuer
Request direct any Paying Agent to pay to the Indenture Trustee all sums held in
trust by such Paying Agent, such sums to be held by the Indenture Trustee upon
the same trusts as those upon which the sums were held by such Paying Agent; and
upon such payment by any Paying Agent to the Indenture Trustee, such Paying
Agent shall be released from all further liability with respect to such money.

         Subject to applicable laws with respect to escheat of funds, any money
held by the Indenture Trustee or any Paying Agent in trust for the payment of
any amount due with respect to any Note (other than amounts paid under the
Insurance Policy) and remaining unclaimed for one year after such amount has
become due and payable shall be discharged from such trust and be paid to the
Issuer on Issuer Request; and the Holder of such Note shall thereafter, as an
unsecured general creditor, look only to the Issuer for payment thereof (but
only to the extent of the amounts so paid to the Issuer), and all liability of
the Indenture Trustee or such Paying Agent with respect to such trust money
shall thereupon cease; provided, however, that the Indenture Trustee or such
Paying Agent, before being required to make any such repayment, shall at the
expense and direction of the Issuer cause to be published once, in an Authorized
Newspaper published in the English language, notice that such money remains
unclaimed and that, after a date specified therein which shall not be less than
30 days from the date of such publication, any unclaimed balance of such money
then remaining will be repaid to the Issuer. The Indenture Trustee, with the
written consent of the Insurer respecting the Class VII-A Notes, so long as the
Insurer is not in default under the Insurance Policy may also adopt and employ,
at the expense and direction of the Issuer, any other reasonable means of
notification of such repayment (including, but not limited to, mailing notice of
such repayment to Holders whose Notes have been called but have not been
surrendered for redemption or whose right to or interest in monies due and
payable but not claimed is determinable from the records of the Indenture
Trustee or of any Paying Agent, at the last address of record for each such
Holder).

         Section 3.04 Existence. The Issuer will keep in full effect its
existence, rights and franchises as a statutory trust under the laws of the
State of Delaware (unless it becomes, or any successor Issuer hereunder is or
becomes, organized under the laws of any other state or of the

                                       29
<PAGE>

United States of America, in which case the Issuer will keep in full effect its
existence, rights and franchises under the laws of such other jurisdiction) and
will obtain and preserve its qualification to do business in each jurisdiction
in which such qualification is or shall be necessary to protect the validity and
enforceability of this Indenture, the Notes, the Mortgage Loans and each other
instrument or agreement included in the Trust Estate.

         Section 3.05 Payment of Group I, Group II, Group III, Group IV and
Group V Available Funds.

         (a)      On each Payment Date from amounts on deposit in the Payment
Account in accordance with Section 8.02 hereof, the Indenture Trustee shall pay
to the Persons specified below, to the extent provided therein, the Available
Funds for such Payment Date.

         (b)      On each Payment Date, the Indenture Trustee shall withdraw
from the Payment Account the Group I, Group II, Group III, Group IV and Group V
Available Funds for such Payment Date and make the following payments in the
order of priority described below, in each case to the extent of the related
Group I, Group II, Group III, Group IV and Group V Available Funds remaining for
such Payment Date:

                  (i)      from the Group I, Group II, Group III, Group IV and
         Group V Available Funds, to the holders of the Class I-A, Class II-A,
         Class III-A, Class IV-A and Class V-A Notes, respectively, the related
         Accrued Note Interest for such Class for such Payment Date, plus any
         related Unpaid Interest Shortfall for such Payment Date;

                  (ii)     from the remaining Group I, Group II, Group III,
         Group IV and Group V Available Funds for such Payment Date, to the
         holders of the Class M-1 Notes, the related Accrued Note Interest for
         such class for such Payment Date;

                  (iii)    from the remaining Group I, Group II, Group III,
         Group IV and Group V Available Funds for such Payment Date, to the
         holders of the Class M-2 Notes, the related Accrued Note Interest for
         such Class for such Payment Date;

                  (iv)     from the remaining Group I, Group II, Group III,
         Group IV and Group V Available Funds for such Payment Date, to the
         holders of the Class M-3 Notes, the related Accrued Note Interest for
         such Class for such Payment Date; and;

                  (v)      any remainder as part of the related Net Monthly
         Excess Cashflow to be allocated as described in Section 3.05(e) below.

         (c)      On each Payment Date (a) prior to the related Stepdown Date or
(b) on which a related Trigger Event is in effect, the Holders of each Class of
I-A, Class II-A, Class III-A, Class IV-A, Class V-A and Class M Notes, shall be
entitled to receive payments in respect of principal to the extent of the
related Principal Distribution Amount in the following amounts and order of
priority:

                  (i)      concurrently, the Class A Principal Allocation
         Fraction of the related Principal Distribution Amount shall be
         allocated to the Class I-A, Class II-A, Class III-A,

                                       30
<PAGE>

         Class IV-A and Class V-A Notes, until the Note Principal Balances
         thereof have been reduced to zero, with any amounts payable to the
         Class I-A Notes payable to the Class I-A-1 Notes and Class I-A-2 Notes,
         pro rata, and with any amounts payable to the Class II-A Notes payable
         to the Class II-A-1 Notes and Class II-A-2 Notes, pro rata; provided,
         however, that if a Group II Sequential Trigger Event is in effect,
         amounts payable to the Class II-A Notes in respect of principal shall
         be paid first, to the Class II-A-1 Notes and second to the Class II-A-2
         Notes, in each case until the related Note Principal Balance has been
         reduced to zero;

                  (ii)     concurrently, any remaining Principal Distribution
         Amount shall be distributed to the Class I-A, Class II-A, Class III-A,
         Class IV-A and Class V-A Notes on a pro rata basis, based on the Note
         Principal Balances thereof, until the Note Principal Balances thereof
         have been reduced to zero, with any amounts payable to the Class I-A
         Notes payable to the Class I-A-1 Notes and Class I-A-2 Notes, pro rata,
         and with any amounts payable to the Class II-A Notes payable to the
         Class II-A-1 Notes and Class II-A-2 Notes, pro rata;

                  (iii)    any remaining related Principal Distribution Amount,
         to the Class M-1 Notes until the Note Principal Balance of such Class
         is reduced to zero;

                  (iv)     any remaining related Principal Distribution Amount,
         to the Class M-2 Notes until the Note Principal Balance of such Class
         is reduced to zero;

                  (v)      any remaining related Principal Distribution Amount,
         to the Class M-3 Notes until the Note Principal Balance of such Class
         is reduced to zero; and

                  (vi)     any remainder as part of the related Net Monthly
         Excess Cashflow to be allocated as described in Section 3.05(e) below.

         (d)      On each Payment Date (1) on or after the Stepdown Date and (2)
on which a Trigger Event is not in effect, the holders of each class of Notes,
other than the Class N Notes, shall be entitled to receive payments in respect
of principal to the extent of the Principal Distribution Amount in the following
amounts and order of priority:

                  (i)      concurrently, the related Class A Principal
         Allocation Fraction of the Class A Principal Distribution Amount shall
         be allocated to the Class I-A, Class II-A, Class III-A, Class IV-A and
         Class V-A Notes, until the Note Principal Balances thereof have been
         reduced to zero;

                  (ii)     to the Class M-1 Notes, the Class M-1 Principal
         Distribution Amount, until the Note Principal Balance thereof has been
         reduced to zero;

                  (iii)    to the Class M-2 Notes, the Class M-2 Principal
         Distribution Amount, until the Note Principal Balance thereof has been
         reduced to zero;

                  (iv)     to the Class M-3 Notes, the Class M-3 Principal
         Distribution Amount, until the Note Principal Balance thereof has been
         reduced to zero; and

                                       31
<PAGE>

                  (v)      any remainder as part of the related Net Monthly
         Excess Cashflow to be allocated as described in Section 3.05(e) below.

         (e)      On each Payment Date, any Net Monthly Excess Cashflow for the
Group I, Group II, Group III, Group IV and Group V Loans shall be paid, in each
case to the extent of remaining related Net Excess Monthly Cashflow, as follows:

                  (i)      to the holders of the Class I-A, Class II-A, Class
         III-A, Class IV-A, Class V-A and Class M Notes in an amount equal to
         the related Overcollateralization Increase Amount, payable to such
         holders as part of the related Principal Distribution Amount as
         provided in 3.05(c) and (d) above;

                  (ii)     to the holders of the Class I-A-2 Notes and Class
         II-A-2 Notes, on a pro rata basis, an amount equal to the Allocated
         Realized Loss Amount for such Notes, to the extent not previously
         reimbursed;

                  (iii)    to the holders of the Class M-1 Notes, first, an
         amount equal to any related Unpaid Interest Shortfalls for such Notes,
         and second, an amount equal to any related Allocated Realized Loss
         Amount for such Notes, in each case to the extent not previously
         reimbursed;

                  (iv)     to the holders of the Class M-2 Notes, first, an
         amount equal to any related Unpaid Interest Shortfalls for such Notes,
         and second, an amount equal to any related Allocated Realized Loss
         Amount for such Notes, in each case to the extent not previously
         reimbursed;

                  (v)      to the holders of the Class M-3 Notes, first, an
         amount equal to any related Unpaid Interest Shortfalls for such Notes,
         and second, an amount equal to any related Allocated Realized Loss
         Amount for such Notes, in each case to the extent not previously
         reimbursed;

                  (vi)     to the holders of the Class I-A, Class II-A, Class
         III-A, Class IV-A and Class V-A Notes, on a pro rata basis, any related
         Basis Risk Shortfall Carry-Forward Amount or Net WAC Shortfall
         Carry-Forward Amount for such Notes on such Payment Date;

                  (vii)    sequentially to the holders of the Class M-1, Class
         M-2 and Class M-3 Notes, any related Basis Risk Shortfall Carry-Forward
         Amount for such Notes on such Payment Date;

                  (viii)   to the Class VI-A, Class VI-M and Class VI-B Notes,
         to be included in the related Net Monthly Excess Cashflow as described
         below;

                  (ix)     20% of the amount remaining to be included as
         Crossable Excess as provided in section 3.07(c) below;

                                       32
<PAGE>

                  (x)      until the Note Principal Balance of the Class N Notes
         has been reduced to zero, to the holders of the Class N Notes as
         provided in Section 3.09; and

                  (xi)     any remaining amounts will be distributed to the
         Certificate Paying Agent, as designee of the Issuer, for the benefit of
         the holders of the Trust Certificates, as provided herein and in the
         Trust Agreement.

         (f)      On each Payment Date, any payments received from the
Derivative Contract Counterparty with respect to the Cap Contracts with respect
to such Payment Date will be allocated to the Class M Notes and the Trust
Certificates in the following order of priority, in each case to the extent of
amounts remaining:

                  (i)      the Cap Contract Allocation Amounts will be paid pro
         rata, to the Class M Notes in reduction of any related Basis Risk
         Shortfall Carry-Forward Amount for such classes for that Payment Date;

                  (ii)     from any amounts remaining from the Cap Contracts,
         pro rata to the Class M Notes in reduction of any remaining Basis Risk
         Shortfall Carry-Forward Amount for such class or classes for such
         Payment Date; and

                  (iii)    any remaining amounts from the Cap Contracts shall be
         distributed to the Certificate Paying Agent, as designee of the Issuer,
         for the benefit of the Holders of the Trust Certificates, as provided
         herein and in the Trust Agreement.

         (g)      On each Payment Date, any payments received from the
Derivitave Contract Counterparty with respect to the Corridor Contract with
respect to such Payment Date will be deposited into a reserve fund to be
allocated to the Class I-A Notes and the Trust Certificates in the following
order of priority, in each case to the extent of amounts remaining:

                  (i)      the Class I-A Corridor Contract Allocation Amount
         will be paid to the Class I-A Notes, pro rata, in reduction of any
         related Basis Risk Shortfall Carry-Forward Amount for such Class for
         that Payment Date;

                  (ii)     any remaining amounts from the Corridor Contract
         shall be distributed to the Certificate Paying Agent, as designee of
         the Issuer, for the benefit of the Holders of the Trust Certificates,
         as provided herein and in the Trust Agreement.

         (h)      On each Payment Date, any payments received from the
Derivative Contract Counterparty with respect to the Swap Agreements will be
included in the Net Monthly Excess Cashflow for the Group I, Group II, Group
III, Group IV and Group V Mortgage Loans.

         Section 3.06 Payment of Group VI Available Funds.

         (a)      On each Payment Date from amounts on deposit in the Payment
Account in accordance with Section 8.02 hereof, the Indenture Trustee shall pay
to the Persons specified below, to the extent provided therein, the Group VI
Available Funds for such Payment Date.

                                       33
<PAGE>

         (b)      On each Payment Date, the Indenture Trustee shall withdraw
from the Payment Account the Group VI Available Funds for such Payment Date and
make the following payments in the order of priority described below, in each
case to the extent of the related Available Funds remaining for such Payment
Date:

                  (i)      to the holders of the Class VI-A Notes, the related
         Accrued Note Interest for each such Class for such Payment Date, plus
         any related Unpaid Interest Shortfall for such Payment Date;

                  (ii)     from the remaining Group VI Available Funds for such
         Payment Date, to the holders of the Class VI-M-1 Notes, the related
         Accrued Note Interest for such Class for such Payment Date;

                  (iii)    from the remaining Group VI Available Funds for such
         Payment Date, to the holders of the Class VI-M-2 Notes, the related
         Accrued Note Interest for such Class for such Payment Date;

                  (iv)     from the remaining Group VI Available Funds for such
         Payment Date, to the holders of the Class VI-M-3 Notes, the related
         Accrued Note Interest for such Class for such Payment Date;

                  (v)      from the remaining Group VI Available Funds for such
         Payment Date, to the holders of the Class VI-B-1 Notes, the related
         Accrued Note Interest for such Class for such Payment Date;

                  (vi)     from the remaining Group VI Available Funds for such
         Payment Date, to the holders of the Class VI-B-2 Notes, the related
         Accrued Note Interest for such Class for such Payment Date;

                  (vii)    from the remaining Group VI Available Funds for such
         Payment Date, to the holders of the Class VI-B-3 Notes, the related
         Accrued Note Interest for such Class for such Payment Date; and

                  (viii)   any remainder as part of the related Net Monthly
         Excess Cashflow to be allocated as described in Section 3.06(d) below.

         (c)      On each Payment Date the holders of each class of Class VI-A,
Class VI-M and Class VI-B Notes shall be entitled to receive payments in respect
of principal to the extent of the Principal Distribution Amount in the following
amounts and order of priority:

                  (i)      first, the related Principal Distribution Amount
         shall be distributed to the Class VI-A, Class VI-M and Class VI-B Notes
         on a pro rata basis, based on the Note Principal Balances thereof,
         until the Note Principal Balances thereof have been reduced to zero;
         provided, however, that any amounts payable to the Class VI-A Notes
         shall be payable sequentially first to the Class VI-A-1 Notes, and
         second, to the Class VI-A-2 Notes, in each case until the Note
         Principal Balance thereof has been reduced to zero; and

                                       34
<PAGE>

                  (ii)     to any remainder as part of the related Net Monthly
         Excess Cashflow for the Group VI Loans to be allocated as described
         Section 3.06(d) below.

         (d)      On each Payment Date, any Net Monthly Excess Cashflow for the
Group VI Loans shall be paid, in each case to the extent of remaining Net Excess
Monthly Cashflow, as follows:

                  (i)      to the holders of the Class VI-A, Class VI-M and
         Class VI-B Notes in an amount equal to the related
         Overcollateralization Increase Amount, payable to such holders as part
         of the related Principal Distribution Amount as provided in 3.06(c)
         above;

                  (ii)     to the holders of the Class VI-M-1 Notes, first, an
         amount equal to any related Unpaid Interest Shortfalls for such Notes,
         and second, an amount equal to any related Allocated Realized Loss
         Amount for such Notes, in each case to the extent not previously
         reimbursed;

                  (iii)    to the holders of the Class VI-M-2 Notes, first, an
         amount equal to any related Unpaid Interest Shortfalls for such Notes,
         and second, an amount equal to any related Allocated Realized Loss
         Amount for such Notes, in each case to the extent not previously
         reimbursed;

                  (iv)     to the holders of the Class VI-M-3 Notes, first, an
         amount equal to any related Unpaid Interest Shortfalls for such Notes,
         and second, an amount equal to any related Allocated Realized Loss
         Amount for such Notes, in each case to the extent not previously
         reimbursed;

                  (v)      to the holders of the Class VI-B-1 Notes, first, an
         amount equal to any related Unpaid Interest Shortfalls for such Notes,
         and second, an amount equal to any related Allocated Realized Loss
         Amount for such Notes, in each case to the extent not previously
         reimbursed;

                  (vi)     to the holders of the Class VI-B-2 Notes, first, an
         amount equal to any related Unpaid Interest Shortfalls for such Notes,
         and second, an amount equal to any related Allocated Realized Loss
         Amount for such Notes, in each case to the extent not previously
         reimbursed

                  (vii)    to the holders of the Class VI-B-3 Notes, first, an
         amount equal to any related Unpaid Interest Shortfalls for such Notes,
         and second, an amount equal to any related Allocated Realized Loss
         Amount for such Notes, in each case to the extent not previously
         reimbursed;

                  (viii)   to the holders of the Class VI-A Notes, any related
         Net WAC Shortfall Carry-Forward Amount for such Notes on such Payment
         Date;

                  (ix)     sequentially to the holders of the Class VI-M-1,
         Class VI-M-2, Class VI-M-3, Class VI-B-1, Class VI-B-2 and Class VI-B-3
         Notes, any related Basis Risk Shortfall Carry-Forward Amount for such
         Notes on such Payment Date;

                                       35
<PAGE>

                  (x)      to the Class I-A, Class II-A, Class III-A, Class
         IV-A, Class V-A and Class M Notes to be included in the related Net
         Monthly Excess Cashflow as provided in Section 3.05(e) above;

                  (xi)     20% of the amount remaining to be included as
         Crossable Excess as provided in Section 3.07(c) below;

                  (xii)    until the Note Principal Balance of the Class N Notes
         has been reduced to zero, to the holders of the Class N Notes as
         provided in the Section 3.09 below; and

                  (xiii)   any remaining amounts will be distributed to the
         Certificate Paying Agent, as designee of the Issuer, for the benefit of
         the holders of the Trust Certificates, as provided herein and in the
         Trust Agreement.

         Section 3.07 Payment of Principal and Interest on the Class VII-A
Notes.

         (a)      On each Payment Date, the Investor Interest Collections,
reduced by the HELOC Master Servicing Fee, will be distributed in the following
priority:

                  (i)      to the Insurer, the Premium Amount;

                  (ii)     to the holders of the Class VII-A Notes, accrued
         interest and unpaid interest, in each case accrued at a rate equal to
         the related Note Interest Rate;

                  (iii)    to the holders of the Class VII-A Notes, as a payment
         of principal, Investor Charge-Off Amounts incurred during the preceding
         calendar month and the Investor Charge-Off Amounts incurred during
         previous periods that were not subsequently funded by Investor Interest
         Collections, overcollateralization or draws under the Insurance Policy;

                  (iv)     to the Insurer, as reimbursement for prior draws made
         under the Insurance Policy;

                  (v)      to the holders of the Class VII-A Notes, as a payment
         of principal, the amount necessary to build the overcollateralization
         to the Overcollateralization Target Amount;

                  (vi)     to the Insurer, any other amounts owed to the Insurer
         pursuant to the Insurance Agreement;

                  (vii)    to the holders of the Class VII-A Notes, Basis Risk
         Shortfall Carry-Forward Amounts on the Class VII-A Notes; and

                  (viii)   to the owner of the Transferor Interest, any
         remaining amounts.

         (b)      On each Payment Date, Principal Collections on the HELOC
Mortgage Loans, will be distributed in the following priority:

                                       36
<PAGE>

                  (i)      to Holders of the Class VII-A Notes, the lesser of
         the outstanding Note Principal Balance of the Class VII-A Notes and the
         Investor Principal Distribution Amount; and

                  (ii)     any remaining amounts will be distributed to the
         Certificate Paying Agent, as designee of the Issuer, for the benefit of
         the holders of the Trust Certificates in respect of the Transferor's
         Interest, as provided herein and in the Trust Agreement.

         (c)      On each Payment Date, Crossable Excess from the Net Monthly
Excess Cashflow from Loan Group I, Loan Group II, Loan Group III, Loan Group IV
and Loan Group V and from Loan Group VI shall be paid as follows:

                  (i)      to the holders of the Class VII-A Notes, as a payment
         of principal, Investor Charge-Off Amounts incurred during the preceding
         calendar month and the Investor Charge-Off Amounts incurred during
         previous periods that were not subsequently funded by Investor Interest
         Collections, overcollateralization or draws under the Insurance Policy,
         to the extent not paid from Investor Interest Collections above;

                  (ii)     to the Insurer, as reimbursement for prior draws made
         under the Insurance Policy, to the extent not paid from Investor
         Interest Collections above;

                  (iii)    to the holders of the Class VII-A Notes, as a payment
         of principal, the amount necessary to build the overcollateralization
         to the Overcollateralization Target Amount, to the extent not paid from
         Investor Interest Collections pursuant to Section 3.07(a) above; and

                  (iv)     any remaining amounts will be distributed to the
         Certificate Paying Agent, as designee of the Issuer, for the benefit of
         the holders of the Trust Certificates in respect of the Transferor's
         Interest, as provided herein and in the Trust Agreement.

         Section 3.08 Rapid Amortization Events.

         A Rapid Amortization Event is any of the following events:

         (a)      Investor Interest Collections or Principal Collections for any
Payment Date are not enough to make any payment of principal or interest in each
case that is due on the Class VII-A Notes, and such failure continues for a
period of five Business Days;

         (b)      a declaration of bankruptcy or insolvency by any of the Trust,
the Depositor, the HELOC Subservicer or the Servicer;

         (c)      the Trust becomes subject to the Investment Company Act of
1940;

         (d)      failure on the part of the Trust, the Depositor, the Seller,
the HELOC Subservicer or the HELOC Master Servicer to perform any of its other
material obligations under the HELOC

                                       37
<PAGE>

Servicing Agreement, the Trust Agreement, the HELOC Subservicing Agreement or
the Indenture;

         (e)      a draw on the Insurance Policy is unreimbursed for 90 days; or

         (f)      the occurrence of a Servicer Termination Event.

         If any event described in clause (a) or (d) occurs, a Rapid
Amortization Event will occur only if, after the applicable grace period, either
the Insurer or the Indenture Trustee acting at the
direction of the Noteholders holding notes evidencing more than 51% in principal
amount of the Class VII-A Notes then outstanding, by written notice to the
holder of the Transferor Interest, the Depositor and the HELOC Master Servicer
(and to the Indenture Trustee, if given by the Insurer, or the Noteholders)
declare that a Rapid Amortization Event has occurred. If any event described in
clauses (b), (c), (e) or (f) occurs, a Rapid Amortization Event will occur
without any notice or other action on the part of the Indenture Trustee, the
Insurer or the Noteholders immediately on the occurrence of such event.

         Notwithstanding the foregoing, if a conservator, receiver or
trustee-in-bankruptcy is appointed for the HELOC Master Servicer or the HELOC
Subservicer, as the case may be, and no Rapid Amortization Event exists other
than the conservatorship, receivership or insolvency of the HELOC Master
Servicer or the HELOC Subservicer, such conservator, receiver or
trustee-in-bankruptcy may have the power to prevent the commencement of a Rapid
Amortization Event.

         Section 3.09 Payments to the Class N Notes.

         (a)      On each Payment Date, the amounts payable to the Class N Notes
pursuant to Section 3.05(e)(x) and 3.06(d)(xii) will be distributed as follows:

                  (i)      to the Holders of the Class N Notes, the related
         Accrued Note Interest for such Class for such Payment Date;

                  (ii)     to the holders of the Class N Notes, in reduction of
         the Note Principal Balance thereof, until reduced to zero; and

                  (iii)    any remaining amounts will be distributed to the
         Certificate Paying Agent, as designee of the Issuer, for the benefit of
         the holders of the Trust Certificates, as provided herein and in the
         Trust Agreement.

         Section 3.10 Other Matters With Respect to the Notes.

         (a)      Each distribution with respect to a Book-Entry Note shall be
paid to the Depository, as Holder thereof, and the Depository shall be
responsible for crediting the amount of such distribution to the accounts of its
Depository Participants in accordance with its normal procedures. Each
Depository Participant shall be responsible for disbursing such distribution to
the Note Owners that it represents and to each indirect participating brokerage
firm (a "brokerage firm" or "indirect participating firm") for which it acts as
agent. Each brokerage firm shall be responsible for disbursing funds to the Note
Owners that it represents. None of the Indenture

                                       38
<PAGE>

Trustee, the Note Registrar, the Paying Agent, the Depositor or the related
Master Servicer shall have any responsibility therefor except as otherwise
provided by this Indenture or applicable law.

         (b)      On each Payment Date, the Certificate Paying Agent shall
deposit in the Certificate Distribution Account all amounts it received pursuant
to Sections 3.05, 3.06, 3.07 and 3.08 for the purpose of distributing such funds
to the Certificateholders.

         (c)      Any installment of interest or principal, if any, payable on
any Note that is punctually paid or duly provided for by the Issuer on the
applicable Payment Date shall, if such Holder shall have so requested at least
five Business Days prior to the related Record Date, be paid to each Holder of
record on the preceding Record Date, by wire transfer to an account specified in
writing by such Holder reasonably satisfactory to the Indenture Trustee as of
the preceding Record Date or in all other cases or if no such instructions have
been delivered to the Indenture Trustee, by check to such Noteholder mailed to
such Holder's address as it appears in the Note Register in the amount required
to be distributed to such Holder on such Payment Date pursuant to such Holder's
Notes; provided, however, that the Indenture Trustee shall not pay to such
Holders any amount required to be withheld from a payment to such Holder by the
Code.

         (d)      The principal of each Note shall be due and payable in full on
the Final Scheduled Payment Date for such Note as provided in the forms of Note
set forth in Exhibits A-1, A-2, A-3 and A-4 to this Indenture. All principal
payments on the Notes shall be made to the Noteholders entitled thereto in
accordance with the Percentage Interests represented by such Notes. Upon notice
to the Indenture Trustee by the Issuer, the Indenture Trustee shall notify the
Person in whose name a Note is registered at the close of business on the Record
Date preceding the Final Scheduled Payment Date or other final Payment Date
(including any final Payment Date resulting from any redemption pursuant to
Section 8.07 hereof). Such notice shall to the extent practicable be mailed no
later than five Business Days prior to such Final Scheduled Payment Date or
other final Payment Date and shall specify that payment of the principal amount
and any interest due with respect to such Note at the Final Scheduled Payment
Date or other final Payment Date will be payable only upon presentation and
surrender of such Note and shall specify the place where such Note may be
presented and surrendered for such final payment. No interest shall accrue on
the Notes on or after the Final Scheduled Payment Date or any such other final
Payment Date.

         Section 3.11 Protection of Trust Estate.

         (a)      The Issuer will from time to time prepare, execute and deliver
all such supplements and amendments hereto and all such financing statements,
continuation statements, instruments of further assurance and other instruments,
and will take such other action necessary or advisable to:

                  (i)      maintain or preserve the lien and security interest
         (and the priority thereof) of this Indenture or carry out more
         effectively the purposes hereof;

                  (ii)     perfect, publish notice of or protect the validity of
         any Grant made or to be made by this Indenture;

                                       39
<PAGE>

                  (iii)    cause the Issuer or related Master Servicer to
         enforce any of the rights to the Mortgage Loans or the HELOC Mortgage
         Loans, as applicable; or

                  (iv)     preserve and defend title to the Trust Estate and the
         rights of the Indenture Trustee, the Insurer and the Noteholders in
         such Trust Estate against the claims of all persons and parties.

         (b)      Except as otherwise provided in this Indenture, the Indenture
Trustee shall not remove any portion of the Trust Estate that consists of money
or is evidenced by an instrument, certificate or other writing from the
jurisdiction in which it was held at the date of the most recent Opinion of
Counsel delivered pursuant to Section 3.11 hereof (or from the jurisdiction in
which it was held as described in the Opinion of Counsel delivered on the
Closing Date pursuant to Section 3.11(a) hereof, if no Opinion of Counsel has
yet been delivered pursuant to Section 3.11(b) hereof), unless the Indenture
Trustee shall have first received an Opinion of Counsel to the effect that the
lien and security interest created by this Indenture with respect to such
property will continue to be maintained after giving effect to such action or
actions.

         The Issuer hereby designates the Indenture Trustee its agent and
attorney-in-fact to sign any financing statement, continuation statement or
other instrument required to be signed pursuant to this Section 3.11 upon the
Issuer's preparation thereof and delivery to the Indenture Trustee.

         Section 3.12 Opinions as to Trust Estate.

         (a)      On the Closing Date, the Issuer shall furnish to the Indenture
Trustee, the Insurer and the Owner Trustee an Opinion of Counsel either stating
that, in the opinion of such counsel, such action has been taken with respect to
the recording and filing of this Indenture, any indentures supplemental hereto,
and any other requisite documents, and with respect to the execution and filing
of any financing statements and continuation statements, as are necessary to
perfect and make effective the lien and first priority security interest in the
Collateral and reciting the details of such action, or stating that, in the
opinion of such counsel, no such action is necessary to make such lien and first
priority security interest effective.

         (b)      On or before April 15 in each calendar year, beginning in
2005, the Issuer shall furnish to the Indenture Trustee, the Insurer an Opinion
of Counsel at the expense of the Issuer either stating that, in the opinion of
such counsel, such action has been taken with respect to the recording, filing,
re-recording and refiling of this Indenture, any indentures supplemental hereto
and any other requisite documents and with respect to the execution and filing
of any financing statements and continuation statements as is necessary to
maintain the lien and first priority security interest in the Collateral and
reciting the details of such action or stating that in the opinion of such
counsel no such action is necessary to maintain such lien and security interest.
Such Opinion of Counsel shall also describe the recording, filing, re-recording
and refiling of this Indenture, any indentures supplemental hereto and any other
requisite documents and the execution and filing of any financing statements and
continuation statements that will, in the opinion of such counsel, be required
to maintain the lien and security interest in the Collateral until December 31
in the following calendar year.

                                       40
<PAGE>

         Section 3.13 Performance of Obligations.

         (a)      The Issuer will punctually perform and observe all of its
obligations and agreements contained in this Indenture, the Basic Documents and
in the instruments and agreements included in the Trust Estate.

         (b)      The Issuer, with the consent of the Insurer so long as no
Insurer Default exists, may contract with other Persons to assist it in
performing its duties under this Indenture, and any performance of such duties
by a Person identified to the Indenture Trustee in an Officer's Certificate of
the Issuer shall be deemed to be action taken by the Issuer.

         (c)      The Issuer will not take any action or permit any action to be
taken by others which would release any Person from any of such Person's
covenants or obligations under any of the documents relating to the Mortgage
Loans and HELOC Mortgage Loans or under any instrument included in the Trust
Estate, or which would result in the amendment, hypothecation, subordination,
termination or discharge of, or impair the validity or effectiveness of, any of
the documents relating to the Mortgage Loans and HELOC Mortgage Loans or any
such instrument, except such actions as the related Master Servicer is expressly
permitted to take in the related Servicing Agreement. The Indenture Trustee, as
pledgee of the Mortgage Loans and HELOC Mortgage Loans, may, with the consent
of, or at the direction of, the Insurer, so long as no Insurer Default exists,
exercise the rights of the Issuer to direct the actions of the RMBS Master
Servicer pursuant to the RMBS Servicing Agreement and the HELOC Master Servicer
pursuant to the HELOC Servicing Agreement.

         Section 3.14 Negative Covenants. So long as any Notes are Outstanding,
the Issuer shall not:

         (a)      except as expressly permitted by this Indenture, sell,
transfer, exchange or otherwise dispose of the Trust Estate, unless directed to
do so by the Insurer or the Indenture Trustee, with the consent of the Insurer,
so long as no Insurer Default exists;

         (b)      claim any credit on, or make any deduction from the principal
or interest payable in respect of, the Notes (other than amounts properly
withheld from such payments under the Code) or assert any claim against any
present or former Noteholder, by reason of the payment of the taxes levied or
assessed upon any part of the Trust Estate;

         (c)      (A) permit the validity or effectiveness of this Indenture to
be impaired, or permit the lien of this Indenture to be amended, hypothecated,
subordinated, terminated or discharged, or permit any Person to be released from
any covenants or obligations with respect to the Notes under this Indenture
except as may be expressly permitted hereby, (B) permit any lien, charge,
excise, claim, security interest, mortgage or other encumbrance (other than the
lien of this Indenture) to be created on or extend to or otherwise arise upon or
burden the Trust Estate or any part thereof or any interest therein or the
proceeds thereof or (C) permit the lien of this Indenture not to constitute a
valid first priority security interest in the Trust Estate; or

                                       41
<PAGE>

         (d)      waive or impair, or fail to assert rights under, the Mortgage
Loans and HELOC Mortgage Loans, or impair or cause to be impaired the Issuer's
interest in the Mortgage Loans and HELOC Mortgage Loans, the Mortgage Loan
Purchase Agreement or in any Basic Document, if any such action would materially
and adversely affect the interests of the Noteholders or the Insurer.

         Section 3.15 Annual Statement as to Compliance. The Issuer will deliver
to the Indenture Trustee and the Insurer, by March 1 of each year commencing
with the calendar year 2005, an Officer's Certificate stating, as to the
Authorized Officer signing such Officer's Certificate, that:

         (a)      a review of the activities of the Issuer during the previous
calendar year and of its performance under this Indenture has been made under
such Authorized Officer's supervision; and

         (b)      to the best of such Authorized Officer's knowledge, based on
such review, the Issuer has complied with all conditions and covenants under
this Indenture throughout such year, or, if there has been a default in its
compliance with any such condition or covenant, specifying each such default
known to such Authorized Officer and the nature and status thereof.

         Section 3.16 Representations and Warranties Concerning the Mortgage
Loans. The Indenture Trustee, as pledgee of the Mortgage Loans and HELOC
Mortgage Loans, shall have the benefit of the representations and warranties
made by the Seller in (i) the Mortgage Loan Purchase Agreement concerning the
Seller and the Initial Mortgage Loans and Initial HELOC Mortgage Loans and (ii)
any Group I, Group II, Group III, Group IV, Group V, Group VI and Group VI
Mortgage Loan Purchase Agreement concerning the Seller and the related Group I,
Group II, Group III, Group IV, Group V and Group VI Subsequent Mortgage Loans
and Group VII Subsequent HELOC Mortgage Loans to the same extent as though such
representations and warranties were made directly to the Indenture Trustee. If a
Responsible Officer of the Indenture Trustee has actual knowledge of any breach
of any representation or warranty made by the Seller in the Mortgage Loan
Purchase Agreement, or in the applicable Group I, Group II, Group III, Group IV,
Group V, Group VI or Group VII Subsequent Mortgage Loan Purchase Agreement, the
Indenture Trustee shall promptly notify the Seller and the Insurer, if
applicable, of such finding and of the Seller's obligation to cure such defect
or repurchase or substitute for the related Mortgage Loan or HELOC Mortgage
Loan.

         Section 3.17 Amendments to Servicing Agreement. The Issuer covenants
with the Indenture Trustee and the Insurer that it will not enter into any
amendment or supplement to any Servicing Agreement without the prior written
consent of the Indenture Trustee and the Insurer.

         Section 3.18 Master Servicer as Agent and Bailee of the Indenture
Trustee. Solely for purposes of perfection under Section 9-305 of the Uniform
Commercial Code or other similar applicable law, rule or regulation of the state
in which such property is held by the Master Servicer, the Issuer and the
Indenture Trustee hereby acknowledge that the related Master Servicer is acting
as bailee of the Indenture Trustee in holding amounts on deposit in the related
Collection Account, as well as its bailee in holding any Related Documents
released to the related Master

                                       42
<PAGE>

Servicer, and any other items constituting a part of the Trust Estate which from
time to time come into the possession of the related Master Servicer. It is
intended that, by the related Master Servicer's acceptance of such bailee
arrangement, the Indenture Trustee, as a secured party of the Mortgage Loans or
HELOC Mortgage Loans, as applicable, will be deemed to have possession of such
Related Documents, such monies and such other items for purposes of Section
9-305 of the Uniform Commercial Code of the state in which such property is held
by the related Master Servicer. The Indenture Trustee shall not be liable with
respect to such documents, monies or items while in possession of the related
Master Servicer.

         Section 3.19 Investment Company Act. The Issuer shall not become an
"investment company" or be under the "control" of an "investment company" as
such terms are defined in the Investment Company Act of 1940, as amended (or any
successor or amendatory statute), and the rules and regulations thereunder
(taking into account not only the general definition of the term "investment
company" but also any available exceptions to such general definition);
provided, however, that the Issuer shall be in compliance with this Section 3.19
if it shall have obtained an order exempting it from regulation as an
"investment company" so long as it is in compliance with the conditions imposed
in such order.

         Section 3.20 Issuer May Consolidate, etc.

         (a)      The Issuer shall not consolidate or merge with or into any
other Person, unless the Insurer consents thereto and:

                  (i)      the Person (if other than the Issuer) formed by or
         surviving such consolidation or merger shall be a Person organized and
         existing under the laws of the United States of America or any state or
         the District of Columbia and shall expressly assume, by an indenture
         supplemental hereto, executed and delivered to the Indenture Trustee,
         in form reasonably satisfactory to the Indenture Trustee and the
         Insurer, the due and punctual payment of the principal of and interest
         on all Notes, and the payment of the Insurance Premium and all amounts
         payable to the Indenture Trustee, the Derivative Contract Counterparty,
         the payment to the Certificate Paying Agent of all amounts due to the
         Certificateholders, and the performance or observance of every
         agreement and covenant of this Indenture on the part of the Issuer to
         be performed or observed, all as provided herein;

                  (ii)     immediately after giving effect to such transaction,
         no Default or Event of Default shall have occurred and be continuing;

                  (iii)    the Rating Agencies shall have notified the Issuer
         and the Insurer, with respect to the Class VII-A Notes, that such
         transaction shall not cause the rating of the Notes to be reduced,
         qualified, suspended or withdrawn or to be considered by either Rating
         Agency to be below investment grade without taking into account the
         Insurance Policy;

                  (iv)     the Issuer shall have received an Opinion of Counsel
         (and shall have delivered a copy thereof to the Indenture Trustee and
         the Insurer) to the effect that such

                                       43
<PAGE>

         transaction will not (A) result in a "substantial modification" of the
         Notes under Treasury Regulation section 1.1001-3, or adversely affect
         the status of the Notes as indebtedness for federal income tax
         purposes, or (B) if 100% of the Certificates are not owned by AHM SPV
         III, LLC, cause the Trust to be subject to an entity level tax for
         federal income tax purposes;

                  (v)      any action that is necessary to maintain the lien and
         security interest created by this Indenture shall have been taken;

                  (vi)     the Issuer shall have delivered to the Indenture
         Trustee and the Insurer an Officer's Certificate and an Opinion of
         Counsel each stating that such consolidation or merger and such
         supplemental indenture comply with this Article III and that all
         conditions precedent herein provided for or relating to such
         transaction have been complied with (including any filing required by
         the Exchange Act), and that such supplemental indenture is enforceable;
         and

                  (vii)    the Insurer, so long as no Insurer Default exists,
         shall have given its prior consent.

         (b)      The Issuer shall not convey or transfer any of its properties
or assets, including those included in the Trust Estate, to any Person, unless:

                  (i)      the Person that acquires by conveyance or transfer
         the properties and assets of the Issuer, the conveyance or transfer of
         which is hereby restricted, shall (A) be a United States citizen or a
         Person organized and existing under the laws of the United States of
         America or any state thereof, (B) expressly assume, by an indenture
         supplemental hereto, executed and delivered to the Indenture Trustee
         and the Insurer, in form satisfactory to the Indenture Trustee and, the
         due and punctual payment of the principal of and interest on all Notes
         and the payment of the Premium Amount and all other amounts payable to
         the Derivative Counterparty and the Insurer and the performance or
         observance of every agreement and covenant of this Indenture on the
         part of the Issuer to be performed or observed, all as provided herein,
         (C) expressly agree by means of such supplemental indenture that all
         right, title and interest so conveyed or transferred shall be subject
         and subordinate to the rights of the Holders of the Notes and the
         Insurer, (D) unless otherwise provided in such supplemental indenture,
         expressly agree to indemnify, defend and hold harmless the Issuer and
         the Indenture Trustee and the Insurer against and from any loss,
         liability or expense arising under or related to this Indenture and the
         Notes and (E) expressly agree by means of such supplemental indenture
         that such Person (or if a group of Persons, then one specified Person)
         shall make all filings with the Commission (and any other appropriate
         Person) required by the Exchange Act in connection with the Notes;

                  (ii)     immediately after giving effect to such transaction,
         no Default or Event of Default shall have occurred and be continuing;

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<PAGE>

                  (iii)    the Rating Agencies shall have notified the Issuer
         and the Insurer that such transaction shall not cause the rating of the
         Notes to be reduced, qualified, suspended or withdrawn;

                  (iv)     the Issuer and the Insurer shall have received an
         Opinion of Counsel (and shall have delivered a copy thereof to the
         Indenture Trustee and the Insurer) to the effect that such transaction
         will not (A) result in a "substantial modification" of the Notes under
         Treasury Regulation section 1.1001-3, or adversely affect the status of
         the Notes as indebtedness for federal income tax purposes, or (B) if
         100% of the Certificates are not owned by AHM SPV III, LLC, cause the
         Trust to be subject to an entity level tax for federal income tax
         purposes;

                  (v)      any action that is necessary to maintain the lien and
         security interest created by this Indenture shall have been taken;

                  (vi)     the Issuer shall have delivered to the Indenture
         Trustee and the Insurer an Officer's Certificate and an Opinion of
         Counsel each stating that such conveyance or transfer and such
         supplemental indenture comply with this Article III and that all
         conditions precedent herein provided for relating to such transaction
         have been complied with (including any filing required by the Exchange
         Act); and

                  (vii)    the Insurer, so long as no Insurer Default exists,
         shall have given its prior written consent.

         Section 3.21 Successor or Transferee.

         (a)      Upon any consolidation or merger of the Issuer in accordance
with Section 3.20(a), the Person formed by or surviving such consolidation or
merger (if other than the Issuer) shall, following the Issuer's satisfaction of
all of the conditions precedent set forth therein with respect thereto, succeed
to, and be substituted for, and may exercise every right and power of, the
Issuer under this Indenture with the same effect as if such Person had been
named as the Issuer herein.

         (b)      Upon a conveyance or transfer of all the assets and properties
of the Issuer pursuant to Section 3.20(b), the Issuer, following its
satisfaction of all of the conditions precedent set forth herein with respect
thereto, will be released from every covenant and agreement of this Indenture to
be observed or performed on the part of the Issuer with respect to the Notes
immediately upon the delivery of written notice to the Indenture Trustee and the
Insurer of such conveyance or transfer and approval of such transaction given by
the Insurer to the Indenture Trustee.

                                       45
<PAGE>

         Section 3.22 No Other Business. The Issuer shall not engage in any
business other than as set forth with respect thereto in the Trust Agreement and
other than financing, purchasing, owning and selling and managing the Mortgage
Loans and HELOC Mortgage Loans and the issuance of the Notes and Certificates in
the manner contemplated by this Indenture and the Basic Documents and all
activities incidental thereto.

         Section 3.23 No Borrowing. The Issuer shall not issue, incur, assume,
guarantee or otherwise become liable, directly or indirectly, for any
indebtedness except for the Notes under this Indenture.

         Section 3.24 Guarantees, Loans, Monthly Advances and Other Liabilities.
Except as contemplated by this Indenture or the Basic Documents, the Issuer
shall not make any loan or advance or credit to, or guarantee (directly or
indirectly or by an instrument having the effect of assuring another's payment
or performance on any obligation or capability of so doing or otherwise),
endorse or otherwise become contingently liable, directly or indirectly, in
connection with the obligations, stocks or dividends of, or own, purchase,
repurchase or acquire (or agree contingently to do so) any stock, obligations,
assets or securities of, or any other interest in, or make any capital
contribution to, any other Person.

         Section 3.25 Capital Expenditures. The Issuer shall not make any
expenditure (by long-term or operating lease or otherwise) for capital assets
(either realty or personalty).

         Section 3.26 Determination of Note Interest Rate. On each Interest
Determination Date the Indenture Trustee shall determine One-Month LIBOR and
Six-Month LIBOR and the related Note Interest Rate for each Class of Notes for
the following Accrual Period and shall make such information available to the
Issuer, the Master Servicer, the Insurer and the Depositor. The establishment of
One-Month LIBOR and Six-Month LIBOR on each Interest Determination Date by the
Indenture Trustee and the Indenture Trustee's calculation of the rate of
interest applicable to each Class of Notes for the related Accrual Period shall
(in the absence of manifest error) be final and binding.

         Section 3.27 Restricted Payments. The Issuer shall not, directly or
indirectly, (i) pay any dividend or make any distribution (by reduction of
capital or otherwise), whether in cash, property, securities or a combination
thereof, to the Owner Trustee or any owner of a beneficial interest in the
Issuer or otherwise with respect to any ownership or equity interest or security
in or of the Issuer, (ii) redeem, purchase, retire or otherwise acquire for
value any such ownership or equity interest or security or (iii) set aside or
otherwise segregate any amounts for any such purpose; provided, however, that
the Issuer may make, or cause to be made, (x) distributions and payments to the
Owner Trustee, the Indenture Trustee, the Certificate Registrar, the Certificate
Paying Agent, the Noteholders, the Certificateholders and the Insurer as
contemplated by, and to the extent funds are available for such purpose under
this Indenture and the Trust Agreement and (y) payments to the Master Servicers
and the Subservicers pursuant to the terms of the related Servicing Agreement or
Subservicing Agreement. The Issuer will not, directly or indirectly, make
payments to or distributions from the Collection Account except in accordance
with this Indenture and the Basic Documents.

                                       46
<PAGE>

         Section 3.28 Notice of Events of Default. The Issuer shall give the
Indenture Trustee, the Insurer and the Rating Agencies prompt written notice of
each Event of Default hereunder and under the Trust Agreement.

         Section 3.29 Further Instruments and Acts. Upon request of the
Indenture Trustee or the Insurer, the Issuer will execute and deliver such
further instruments and do such further acts as may be reasonably necessary or
proper to carry out more effectively the purpose of this Indenture.

         Section 3.30 Statements to Noteholders. On each Payment Date, the
Indenture Trustee shall make available on the Indenture Trustee's website,
www.bnyinvestorreporting.com (or deliver at the recipient's option), to each
Noteholder and Certificateholder the statement prepared by the Indenture Trustee
pursuant to and in the manner provided for in Section 7.05 hereof.

         Section 3.31 Interest Coverage Accounts.

         (a)      No later than the Closing Date, the Indenture Trustee shall
establish and maintain seven segregated trust accounts each of which is an
Eligible Account, shall be titled "Group I Interest Coverage Account, The Bank
of New York., as indenture trustee for the registered holders of American Home
Mortgage Investment Trust Series 2004-4" (the "Group I Interest Coverage
Account"), "Group II Interest Coverage Account, The Bank of New York., as
indenture trustee for the registered holders of American Home Mortgage
Investment Trust Series 2004-4" (the "Group II Interest Coverage Account"),
"Group III Interest Coverage Account, The Bank of New York., as indenture
trustee for the registered holders of American Home Mortgage Investment Trust
Series 2004-4" (the "Group III Interest Coverage Account"), "Group IV Interest
Coverage Account, The Bank of New York., as indenture trustee for the registered
holders of American Home Mortgage Investment Trust Series 2004-4" (the "Group IV
Interest Coverage Account"); "Group V Interest Coverage Account, The Bank of New
York., as indenture trustee for the registered holders of American Home Mortgage
Investment Trust Series 2004-4" (the "Group V Interest Coverage Account");
"Group VI Interest Coverage Account, The Bank of New York., as indenture trustee
for the registered holders of American Home Mortgage Investment Trust Series
2004-4" (the "Group VI Interest Coverage Account"); and "Group VII Interest
Coverage Account, The Bank of New York., as indenture trustee for the registered
holders of American Home Mortgage Investment Trust Series 2004-4" (the "Group
VII Interest Coverage Account"), respectively. The Indenture Trustee shall,
promptly upon receipt, deposit in the related Interest Coverage Account and
retain therein the related Interest Coverage Amount remitted on the Closing Date
to the Indenture Trustee by the Depositor. Funds deposited in the related
Interest Coverage Account shall be held in trust by the Indenture Trustee for
the benefit of the related Noteholders and the Insurer for the uses and purposes
set forth herein.

         (b)      For federal income tax purposes, the Seller shall be the owner
of the Interest Coverage Accounts and shall report all items of income,
deduction, gain or loss arising therefrom. All income and gain realized from
investment of funds deposited in the related Interest Coverage Account, which
investment shall be made solely upon the written direction of the Seller in
Permitted Investments, shall be for the sole and exclusive benefit of the
related Seller and shall be remitted by the Indenture Trustee to the Seller at
the end of the Funding Period. The Seller shall deposit in the related Interest
Coverage Account the amount of any net

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<PAGE>

loss incurred in respect of any such Permitted Investment immediately upon
realization of such loss.

         (c)      On each Payment Date during the Funding Period and on the
Payment Date immediately following the end of the Funding Period, the Indenture
Trustee shall withdraw from the Group I, Group II, Group III, Group IV, Group V,
Group VI and Group VII Interest Coverage Accounts and deposit in the Payment
Account an amount equal to 30 days' interest on the excess, if any, of the
related Group I, Group II, Group III, Group IV, Group V, Group VI and Group VII
Original Pre-Funded Amount over the aggregate Principal Balance of related Group
I, Group II, Group III, Group IV, Group V, Group VI Subsequent Mortgage Loans
and Group VII Subsequent HELOC Mortgage Loans that (in each case) both (i) had a
Due Date during the Due Period relating to such Payment Date and (ii) had a
Subsequent Cut-off Date prior to the first day of the month in which such
Payment Date occurs, at a per annum rate equal to the related weighted average
Net Mortgage Rate of the related Mortgage Loans. In addition, amounts shall be
withdrawn from the Group VII Interest Coverage Account in respect to shortfalls
as a result of the HELOC Mortgage Loans with Mortgage Rates that were supposed
to reset in November 2004 but did not as identified in the Mortgage Loan
Schedule. Such withdrawal and deposit shall be treated as a contribution of cash
by the Seller to the Trust Fund on the date thereof. Immediately following any
such withdrawal and deposit, and immediately following the conveyance of any
Group I, Group II, Group III, Group IV, Group V, Group VI Subsequent Mortgage
Loans or Group VII Subsequent HELOC Mortgage Loans to the Trust on any related
Subsequent Transfer Date, the Indenture Trustee shall withdraw from the related
Interest Coverage Account and remit to the Seller or its designee an amount
equal to the excess, if any, of the amount remaining in such Interest Coverage
Account over the amount that would be required to be withdrawn therefrom
(assuming sufficient funds therein) pursuant to the preceding sentence on each
subsequent Payment Date, if any, that will occur during the Funding Period or
that will be the Payment Date immediately following the end of the Funding
Period, if no related Group I, Group II, Group III, Group IV, Group V, Group VI
Subsequent Mortgage Loans or Group VII Subsequent HELOC Mortgage Loans were
acquired by the Trust Fund after the end of the Prepayment Period relating to
the current Payment Date.

         (d)      Upon the earliest of (i) the Payment Date immediately
following the end of the Funding Period, (ii) the reduction of the Note
Principal Balances of the Notes to zero or (iii) the termination of this
Agreement in accordance with Section 8.04, any amount remaining on deposit in
the related Interest Coverage Account after distributions pursuant to paragraph
(c) above shall be withdrawn by the Indenture Trustee and paid to the Seller or
its designee.

         Section 3.32 The Pre-Funding Accounts. (a) No later than the Closing
Date, the Indenture Trustee shall establish and maintain seven segregated trust
accounts each of which is an Eligible Account, which shall be titled "Group I
Pre-Funding Account, The Bank of New York, as indenture trustee for the
registered holders of American Home Mortgage Investment Trust Series 2004-4"
(the "Group I Pre-Funding Account"); "Group II Pre-Funding Account, The Bank of
New York, as indenture trustee for the registered holders of American Home
Mortgage Investment Trust Series 2004-4" (the "Group II Pre-Funding Account");
"Group III Pre-Funding Account, The Bank of New York, as indenture trustee for
the registered holders of American Home Mortgage Investment Trust Series 2004-4"
(the "Group III Pre-Funding Account"); "Group IV Pre-Funding Account, The Bank
of New York, as indenture trustee for the

                                       48
<PAGE>

registered holders of American Home Mortgage Investment Trust Series 2004-4"
(the "Group IV Pre-Funding Account"); "Group V Pre-Funding Account, The Bank of
New York, as indenture trustee for the registered holders of American Home
Mortgage Investment Trust Series 2004-4" (the "Group V Pre-Funding Account");
"Group VI Pre-Funding Account, The Bank of New York, as indenture trustee for
the registered holders of American Home Mortgage Investment Trust Series 2004-4"
(the "Group VI Pre-Funding Account") and "Group VII Pre-Funding Account, The
Bank of New York, as indenture trustee for the registered holders of American
Home Mortgage Investment Trust Series 2004-4" (the "Group VII Pre-Funding
Account"), respectively. The Indenture Trustee shall, promptly upon receipt,
deposit in the related Group I, Group II, Group III, Group IV, Group V, Group VI
and Group VII Pre-Funding Accounts and retain therein the related Group I, Group
II, Group III, Group IV, Group VI, Group VI and Group VII Original Pre-Funded
Amount remitted on the Closing Date to the Indenture Trustee by the Depositor.
Funds deposited in the related Group I, Group II, Group III, Group IV, Group V,
Group VI and Group VII Pre-Funding Account shall be held in trust by the
Indenture Trustee for the benefit of the related Noteholders and the Insurer,
with respect to the Class VII-A Notes, for the uses and purposes set forth
herein.

         (b)      The Indenture Trustee will invest at written direction of
funds deposited in the Group I, Group II, Group III, Group IV, Group V, Group VI
and Group VII Pre-Funding Account, as directed by the Seller in writing, in
Eligible Investments with a maturity date (i) no later than the Business Day
immediately preceding the date on which such funds are required to be withdrawn
from such account pursuant to this Indenture, if a Person other than the
Indenture Trustee or an Affiliate manages or advises such investment, (ii) no
later than the date on which such funds are required to be withdrawn from such
account pursuant to this Indenture, if the Indenture Trustee or an Affiliate
manages or advises such investment or (iii) within one (1) Business Day of the
Indenture Trustee's receipt thereof. For federal income tax purposes, the Seller
shall be the owner of the Group I, Group II, Group III, Group IV, Group V, Group
VI and Group VII Pre-Funding Account and shall report all items of income,
deduction, gain or loss arising therefrom. All income and gain realized from
investment of funds deposited in the related Group I, Group II, Group III, Group
IV, Group V, Group VI and Group VII Pre-Funding Account shall be included in the
related Available Funds at the following times: (i) on the Business Day
immediately preceding each Payment Date, if a Person other than the Indenture
Trustee or an Affiliate of the Indenture Trustee manages or advises such
investment, or on each Payment Date, if the Indenture Trustee or an Affiliate of
the Indenture Trustee manages or advises such investment, (ii) on the Business
Day immediately preceding the related Subsequent Transfer Date, if a Person
other than the Indenture Trustee or an Affiliate of the Indenture Trustee
manages or advises such investment, or on the related Subsequent Transfer Date,
if the Indenture Trustee or an Affiliate of the Indenture Trustee manages or
advises such investment or (iii) within one (1) Business Day of the Indenture
Trustee's receipt thereof. The Seller shall deposit in the related Group I,
Group II, Group III, Group IV, Group V, Group VI and Group VII Pre-Funding
Account the amount of any net loss incurred in respect of any such Eligible
Investment immediately upon realization of such loss without any right of
reimbursement therefor.

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<PAGE>

         (c)      Amounts on deposit in the Group I, Group II, Group III, Group
IV, Group V, Group VI and Group VII Pre-Funding Account shall be withdrawn by
the Indenture Trustee as follows:

                  (i)      On the related Group I, Group II, Group III, Group
         IV, Group V, Group VI or Group VII Subsequent Transfer Date, the
         Indenture Trustee shall withdraw from the related Group I, Group II,
         Group III, Group IV, Group V, Group VI or Group VII Pre-Funding Account
         an amount equal to 100% of the aggregate Stated Principal Balances of
         the related Group I, Group II, Group III, Group IV, Group V, Group VI
         or Group VII Subsequent HELOC Mortgage Loans transferred and assigned
         to the Indenture Trustee for deposit in the Mortgage Pool on the
         related Group I, Group II, Group III, Group IV, Group V, Group VI or
         Group VII Subsequent Transfer Date and pay such amount to or upon the
         order of the Issuer upon satisfaction of the conditions set forth in
         Sections 2.05, 2.06, 2.07, 2.08, 2.09, 2.10 or 2.11, as applicable,
         with respect to such transfer and assignment;

                  (ii)     If the amount on deposit in the related Group I,
         Group II, Group III, Group IV, Group V, Group VI or Group VII
         Pre-Funding Account has not been reduced to zero during the Funding
         Period, on the day immediately following the termination of the Funding
         Period, the Indenture Trustee shall deposit into the Payment Account
         any amounts remaining in the related Group I, Group II, Group III,
         Group IV, Group V, Group VI or Group VII Pre-Funding Account for
         distribution in accordance with the terms hereof;

                  (iii)    To withdraw any amount not required to be deposited
         in the related Group I, Group II, Group III, Group IV, Group V, Group
         VI or Group VII Pre-Funding Account or deposited therein in error; and

                  (iv)     To clear and terminate the Group I, Group II, Group
         III, Group IV, Group V, Group VI or Group VII Pre-Funding Account upon
         the earlier to occur of (A) the Payment Date immediately following the
         end of the Funding Period and (B) the termination of this Indenture,
         with any amounts remaining on deposit therein being paid to the Holders
         of the Notes then entitled to distributions in respect of principal.

         Section 3.33 Grant of the Subsequent Mortgage Loans and Subsequent
HELOC Mortgage Loans. In consideration of the delivery on the related Group I,
Group II, Group III, Group IV, Group V, Group VI or Group VII Subsequent
Transfer Date to or upon the order of the Issuer of all or a portion of the
amount on deposit in the related Group I, Group II, Group III, Group IV, Group
V, Group VI or Group VII Pre-Funding Account, the Depositor shall, to the extent
of the availability thereof, on the related Subsequent Transfer Date during the
Funding Period, grant to the Indenture Trustee all of its rights, title and
interest in the related Group I, Group II, Group III, Group IV, Group V, Group
VI Mortgage Loans or Group VII Subsequent HELOC Mortgage Loans and
simultaneously with the Grant of the related Group I, Group II, Group III, Group
IV, Group V, Group VI Subsequent Mortgage Loans or Group VII Subsequent HELOC
Mortgage Loans, the Depositor will cause the related Mortgage File to be
delivered to the Custodian.

                                       50
<PAGE>

         Section 3.34 Replacement Swap Agreements. In the event of an Event of
Default or Termination Event with respect to the Derivative Contract
Counterparty with respect to the related Swap Agreement (a "Swap Agreement
Default"), the Issuer, at its expense, may, but shall not be required to,
substitute a new derivative contract or any other form of similar coverage for
basis risk shortfalls for such Swap Agreement; provided, however, that the
timing and mechanism for receiving payments under such new swap agreement shall
be reasonably acceptable to the Indenture Trustee. It shall be a condition to
substitution of any new swap agreement that there be delivered to the Indenture
Trustee an Opinion of Counsel to the effect that such substitution would not (a)
result in a "substantial modification" of the Notes under Treasury Regulation
section 1.1001-3, or adversely affect the status of the Notes as indebtedness
for federal income tax purposes, or (b) if 100% of the Certificates are not
owned by AHM III SPV, cause the Trust to be subject to entity level tax for
federal income tax purposes.

         Section 3.35 Payments Under the Insurance Policy. (a) (1) By 12:00 noon
(New York Time) on the later of (i) the third Business Day following the
Business Day on which the Insurer shall have received Notice (as defined in the
Insurance Policy) that a Deficiency Amount is due in respect of the Class VII-A
Notes and (ii) the Payment Date on which the related Deficiency Amount is
payable to the Noteholders and (2) at such time as the Indenture Trustee shall
deliver an acceleration notice to the Noteholders pursuant to Section 5.02, the
Indenture Trustee on behalf of the Class VII-A Noteholders, shall make a draw on
the Insurance Policy in an amount, if any, equal to the Deficiency Amount.

         (b)      If the Indenture Trustee determines that a Deficiency Amount
will exist for the following Payment Date, then the Indenture Trustee shall
submit a Notice (as defined in the Insurance Policy) for payment in the amount
of the Deficiency Amount to the Insurer no later than 12:00 Noon, New York City
time, on the third Business Day prior to the applicable Payment Date. Upon
receipt of such Deficiency Amount in accordance with the terms of the Insurance
Policy, the Indenture Trustee shall deposit such Deficiency Amount in the
Payment Account for distribution to the Class VII-A Noteholders pursuant to
Section 3.07 hereof or with respect to an acceleration pursuant to Section 5.02
hereof.

         In addition, according to the terms of the Insurance Policy (in the
form attached hereto as Exhibit F), a draw may be made under the Insurance
Policy in respect of any Preference Amount applicable to any of the Class VII-A
Noteholders (as defined in and pursuant to the terms and conditions of the such
Insurance Policy) and the Indenture Trustee shall submit a Notice (as defined in
such Insurance Policy) for payment with respect thereto together with the other
documents required to be delivered to the Insurer pursuant to the Insurance
Policy in connection with a draw in respect of any Preference Amount.

         Section 3.36 Replacement Insurance Policy. In the event of a Insurer
Default (a "Replacement Event"), the Issuer, at its expense, in accordance with
and upon satisfaction of the conditions set forth in the Insurance Policy,
including, without limitation, payment in full of all amounts owed to the
Insurer, may, but shall not be required to, substitute a new surety bond or
surety bonds for the existing Insurance Policy or may arrange for any other form
of credit enhancement; provided, however, that in each case after giving effect
to such substitute or other form of credit enhancement the Class VII-A Notes
shall be rated no lower than the rating assigned

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<PAGE>

by each Rating Agency to the Class VII-A Notes, respectively, immediately prior
to such Replacement Event and the timing and mechanism for drawing on such new
credit enhancement shall be reasonably acceptable to the Indenture Trustee and
provided further that the premiums under the proposed credit enhancement shall
not exceed such premiums under the existing Insurance Policy. It shall be a
condition to substitution of any new credit enhancement that there be delivered
to the Indenture Trustee (i) an Opinion of Counsel, acceptable in form to the
Indenture Trustee and the Rating Agencies, from counsel to the provider of such
new credit enhancement with respect to the enforceability thereof and such other
matters as the Indenture Trustee and the Rating Agencies may require and (ii) an
Opinion of Counsel to the effect that such substitution would not (a) result in
a "substantial modification" of the Notes under Treasury Regulation section
1.1001-3, or adversely affect the status of the Notes as indebtedness for
federal income tax purposes, or (b) if 100% of the Certificates are not owned by
AHM SPV III LLC, cause the Trust to be subject to an entity level tax for
federal income tax purposes. Upon receipt of the items referred to above and
payment of all amounts owing to the Insurer and the taking of physical
possession of the new credit enhancement, the Indenture Trustee shall, within
five Business Days following receipt of such items and such taking of physical
possession, deliver the replaced Insurance Policy to the Insurer. In the event
of any such replacement the Issuer shall give written notice thereof to the
Rating Agencies.

         Section 3.37 Certain Representations Regarding the Trust Estate.

         (a)      With respect to that portion of the Collateral described in
clauses (a) through (j) of the Granting Clause, the Issuer represents to the
Indenture Trustee that:

                  (i)      This Indenture creates a valid and continuing
         security interest (as defined in the applicable UCC) in the Collateral
         in favor of the Indenture Trustee, which security interest is prior to
         all other liens, and is enforceable as such as against creditors of and
         purchasers from the Issuer.

                  (ii)     The Collateral constitutes "deposit accounts" or
         "instruments," as applicable, within the meaning of the applicable UCC.

                  (iii)    The Issuer owns and has good and marketable title to
         the Collateral, free and clear of any lien, claim or encumbrance of any
         Person.

                  (iv)     The Issuer has taken all steps necessary to cause the
         Indenture Trustee to become the account holder of the Collateral.

                  (v)      Other than the security interest granted to the
         Indenture Trustee pursuant to this Indenture, the Issuer has not
         pledged, assigned, sold, granted a security interest in, or otherwise
         conveyed any of the Collateral.

                  (vi)     The Collateral is not in the name of any Person other
         than the Issuer or the Indenture Trustee. The Issuer has not consented
         to the bank maintaining the Collateral to comply with instructions of
         any Person other than the Indenture Trustee.

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<PAGE>

         (b)      With respect to that portion of the Collateral described in
clauses (j) and (k) of the Granting Clause, the Issuer represents to the
Indenture Trustee that:

                  (i)      This Indenture creates a valid and continuing
         security interest (as defined in the applicable UCC) in the Collateral
         in favor of the Indenture Trustee, which security interest is prior to
         all other liens, and is enforceable as such as against creditors of and
         purchasers from the Issuer.

                  (ii)     The Collateral constitutes "general intangibles"
         within the meaning of the applicable UCC.

                  (iii)    The Issuer owns and has good and marketable title to
         the Collateral, free and clear of any lien, claim or encumbrance of any
         Person.

                  (iv)     Other than the security interest granted to the
         Indenture Trustee pursuant to this Indenture, the Issuer has not
         pledged, assigned, sold, granted a security interest in, or otherwise
         conveyed any of the Collateral.

         (c)      With respect to any Collateral in which a security interest
may be perfected by filing, the Issuer has not authorized the filing of, and is
not aware of any financing statements against, the Issuer, that include a
description of collateral covering such Collateral, other than any financing
statement relating to the security interest granted to the Indenture Trustee
hereunder or that has been terminated. The Issuer is not aware of any judgment
or tax lien filings against the Issuer.

         (d)      The Issuer has caused or will have caused, within ten days of
the Closing Date, the filing of all appropriate financing statements in the
proper filing office in the appropriate jurisdictions under applicable law in
order to perfect the security interest in all Collateral granted to the
Indenture Trustee hereunder in which a security interest may be perfected by
filing. Any financing statement that is filed in connection with this Section
3.37 shall contain a statement that a purchase or security interest in any
collateral described therein will violate the rights of the secured party named
in such financing statement.

         (e)      The foregoing representations may not be waived and shall
survive the issuance of the Notes.

         Section 3.38 Allocation of Realized Losses.

         (a)      Any Realized Losses on the Mortgage Loans in Loan Groups I,
II, III, IV and V will be allocated or covered on any Payment Date as follows:
first, to the related Net Monthly Excess Cashflow, by an increase in the related
Overcollateralization Increase Amount for that Payment Date as provided in
Section 3.05 of this Indenture; second, in reduction of the Overcollateralized
Amount until reduced to zero (meaning, no losses will be allocated to the Class
M Notes until the aggregate Note Principal Balance of the Class I-A, Class II-A,
Class III-A, Class IV-A, Class V-A, Class M-1, Class M-2 and Class M-3 Notes
equals the aggregate Stated Principal Balance of the Mortgage Loans in Loan
Groups I, II, III, IV and V; third, to the Class M-3 Notes, in reduction of the
Note Principal Balance thereof, until reduced to zero; fourth, to the

                                       53
<PAGE>

Class M-2 Notes, in reduction of the Note Principal Balance thereof, until
reduced to zero; fifth, to the Class M-1 Notes, in reduction of the Note
Principal Balance thereof, until reduced to zero; and sixth, to the extent such
Realized Losses is on the Mortgage Loans in Loan Group I and II, to the Class
I-A-2 Notes and Class II-A-2 Notes, respectively, in reduction of the Note
Principal Balance thereof, until reduced to zero.

         (b)      Any Realized Losses on the Mortgage Loans in Loan Group VI
will be allocated or covered on any Payment Date as follows: first, to the
related Net Monthly Excess Cashflow, by an increase in the related
Overcollateralization Increase Amount for that Payment Date as provided in
Section 3.06 of this Indenture; second, in reduction of the related
Overcollateralized Amount, until reduced to zero (meaning, no losses will be
allocated to the Class VI-M Notes or Class VI-B Notes until the aggregate Note
Principal Balance of Class VI-A, Class VI-M and Class VI-B Notes equals the
aggregate Stated Principal Balance of the Mortgage Loans in Loan Group VI);
third, to the Class VI-B-3 Notes, in reduction of the Note Principal Balance
thereof, until reduced to zero; fourth, to the Class VI-B-2 Notes, in reduction
of the Note Principal Balance thereof, until reduced to zero; fifth, to the
Class VI-B-1 Notes, in reduction of the Note Principal Balance thereof, until
reduced to zero; sixth, to the Class VI-M-3 Notes, in reduction of the Note
Principal Balance thereof, until reduced to zero; seventh, to the Class VI-M-2
Notes, in reduction of the Note Principal Balance thereof, until reduced to
zero; and eighth, to the Class VI-M-1 Notes, in reduction of the Note Principal
Balance thereof, until reduced to zero

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                                   ARTICLE IV

               The Notes; Satisfaction and Discharge of Indenture

         Section 4.01 The Notes. Each Class of Notes shall be registered in the
name of a nominee designated by the Depository. With respect to the Class I-A,
Class II-A, Class III-A, Class IV-A, Class V-A and Class VI-A Notes, Class
Beneficial Owners will hold interests in the Notes through the book-entry
facilities of the Depository in minimum initial Note Principal Balances of
$25,000 and integral multiples of $1 in excess thereof. With respect to the
Class VII-A Notes, Class Beneficial Owners will hold interests in the Notes
through the book-entry facilities of the Depository in minimum initial Note
Principal Balances of $25,000 and integral multiples of $1,000 in excess
thereof.

         The Indenture Trustee may for all purposes (including the making of
payments due on the Notes) deal with the Depository as the authorized
representative of the Beneficial Owners with respect to the Notes for the
purposes of exercising the rights of Holders of the Notes hereunder. Except as
provided in the next succeeding paragraph of this Section 4.01, the rights of
Beneficial Owners with respect to the Notes shall be limited to those
established by law and agreements between such Beneficial Owners and the
Depository and Depository Participants. Except as provided in Section 4.08
hereof, Beneficial Owners shall not be entitled to definitive certificates for
the Notes as to which they are the Beneficial Owners. Requests and directions
from, and votes of, the Depository as Holder of the Notes shall not be deemed
inconsistent if they are made with respect to different Beneficial Owners. The
Indenture Trustee may establish a reasonable record date in connection with
solicitations of consents from or voting by Noteholders and give notice to the
Depository of such record date. Without the consent of the Issuer and the
Indenture Trustee, no Note may be transferred by the Depository except to a
successor Depository that agrees to hold such Note for the account of the
Beneficial Owners.

         In the event the Depository Trust Company resigns or is removed as
Depository, the Indenture Trustee with the approval of the Issuer may appoint a
successor Depository. If no successor Depository has been appointed within 30
days of the effective date of the Depository's resignation or removal, each
Beneficial Owner shall be entitled to certificates representing the Notes it
beneficially owns in the manner prescribed in Section 4.08.

         The Notes shall, on original issue, be executed on behalf of the Issuer
by the Owner Trustee, not in its individual capacity but solely as Owner
Trustee, authenticated by the Indenture Trustee and delivered by the Indenture
Trustee to or upon an Issuer Request.

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<PAGE>

         Section 4.02 Registration of and Limitations on Transfer and Exchange
of Notes; Appointment of Note Registrar and Certificate Registrar. The Issuer
shall cause to be kept at the Corporate Trust Office of the Indenture Trustee a
Note Register in which, subject to such reasonable regulations as it may
prescribe, the Note Registrar shall provide for the registration of Notes and of
transfers and exchanges of Notes as herein provided.

         Subject to the restrictions and limitations set forth below, upon
surrender for registration of transfer of any Note at the Corporate Trust Office
of the Indenture Trustee, the Issuer shall execute and the Note Registrar shall
authenticate and deliver, in the name of the designated transferee or
transferees, one or more new Notes in authorized initial Note Principal Balances
evidencing the same Class and aggregate Percentage Interests.

         Subject to the foregoing, at the option of the Noteholders, Notes may
be exchanged for other Notes of like tenor and in authorized initial Note
Principal Balances evidencing the same Class and aggregate Percentage Interests
upon surrender of the Notes to be exchanged at the Corporate Trust Office of the
Note Registrar. Whenever any Notes are so surrendered for exchange, the Issuer
shall execute and the Indenture Trustee shall authenticate and deliver the Notes
which the Noteholder making the exchange is entitled to receive. Each Note
presented or surrendered for registration of transfer or exchange shall (if so
required by the Note Registrar) be duly endorsed by, or be accompanied by a
written instrument of transfer in form reasonably satisfactory to the Note
Registrar duly executed by the Holder thereof or his attorney duly authorized in
writing with such signature guaranteed by a commercial bank or trust company
located or having a correspondent located in the city of New York. Notes
delivered upon any such transfer or exchange will evidence the same obligations,
and will be entitled to the same rights and privileges, as the Notes
surrendered.

         No service charge shall be made for any registration of transfer or
exchange of Notes, but the Note Registrar shall require payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any registration of transfer or exchange of Notes.

         The Issuer hereby appoints the Indenture Trustee as (i) Certificate
Registrar to keep at its Corporate Trust Office a Certificate Register pursuant
to Section 3.09 of the Trust Agreement in which, subject to such reasonable
regulations as it may prescribe, the Certificate Registrar shall provide for the
registration of Certificates and of transfers and exchanges thereof pursuant to
Section 3.05 of the Trust Agreement and (ii) Note Registrar under this
Indenture. The Indenture Trustee hereby accepts such appointments.

         Section 4.03 Mutilated, Destroyed, Lost or Stolen Notes. If (i) any
mutilated Note is surrendered to the Indenture Trustee, or the Indenture Trustee
receives evidence to its satisfaction of the destruction, loss or theft of any
Note, and (ii) there is delivered to the Indenture Trustee such security or
indemnity as may be required by it to hold the Issuer and the Indenture Trustee
harmless, then, in the absence of notice to the Issuer, the Note Registrar or
the Indenture Trustee that such Note has been acquired by a bona fide purchaser,
and provided that the requirements of Section 8-405 of the UCC are met, the
Issuer shall execute, and upon Issuer Request the Indenture Trustee shall
authenticate and deliver, in exchange for or in lieu of any such mutilated,
destroyed, lost or stolen Note, a replacement Note; provided, however, that if
any such destroyed, lost or

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<PAGE>

stolen Note, but not a mutilated Note, shall have become or within seven days
shall be due and payable, instead of issuing a replacement Note, the Issuer may
pay such destroyed, lost or stolen Note when so due or payable without surrender
thereof. If, after the delivery of such replacement Note or payment of a
destroyed, lost or stolen Note pursuant to the proviso to the preceding
sentence, a bona fide purchaser of the original Note in lieu of which such
replacement Note was issued presents for payment such original Note, the Issuer
and the Indenture Trustee shall be entitled to recover such replacement Note (or
such payment) from the Person to whom it was delivered or any Person taking such
replacement Note from such Person to whom such replacement Note was delivered or
any assignee of such Person, except a bona fide purchaser, and shall be entitled
to recover upon the security or indemnity provided therefor to the extent of any
loss, damage, cost or expense incurred by the Issuer or the Indenture Trustee in
connection therewith.

         Upon the issuance of any replacement Note under this Section 4.03, the
Issuer may require the payment by the Holder of such Note of a sum sufficient to
cover any tax or other governmental charge that may be imposed in relation
thereto and any other reasonable expenses (including the fees and expenses of
the Indenture Trustee) connected therewith.

         Every replacement Note issued pursuant to this Section 4.03 in
replacement of any mutilated, destroyed, lost or stolen Note shall constitute an
original additional contractual obligation of the Issuer, whether or not the
mutilated, destroyed, lost or stolen Note shall be at any time enforceable by
anyone, and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Notes duly issued hereunder.

         The provisions of this Section 4.03 are exclusive and shall preclude
(to the extent lawful) all other rights and remedies with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Notes.

         Section 4.04 Persons Deemed Owners. Prior to due presentment for
registration of transfer of any Note, the Issuer, the Indenture Trustee, the
Paying Agent and any agent of the Issuer, the Insurer or the Indenture Trustee
or the Paying Agent may treat the Person in whose name any Note is registered
(as of the day of determination) as the owner of such Note for the purpose of
receiving payments of principal of and interest, if any, on such Note and for
all other purposes whatsoever, whether or not such Note be overdue, and neither
the Issuer, the Insurer, the Indenture Trustee, the Paying Agent nor any agent
of the Issuer, the Insurer or the Indenture Trustee or the Paying Agent shall be
affected by notice to the contrary.

         Section 4.05 Cancellation. All Notes surrendered for payment,
registration of transfer, exchange or redemption shall, if surrendered to any
Person other than the Indenture Trustee, be delivered to the Indenture Trustee
and shall be promptly cancelled by the Indenture Trustee. The Issuer may at any
time deliver to the Indenture Trustee for cancellation any Notes previously
authenticated and delivered hereunder which the Issuer may have acquired in any
manner whatsoever, and all Notes so delivered shall be promptly cancelled by the
Indenture Trustee. No Notes shall be authenticated in lieu of or in exchange for
any Notes cancelled as provided in this Section 4.05, except as expressly
permitted by this Indenture. All cancelled Notes may be held or disposed of by
the Indenture Trustee in accordance with its standard retention or disposal
policy as

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<PAGE>

in effect at the time unless the Issuer shall direct by an Issuer Request that
they be destroyed or returned to it; provided, however, that such Issuer Request
is timely and the Notes have not been previously disposed of by the Indenture
Trustee.

         Section 4.06 Book-Entry Notes. The Notes, upon original issuance, will
be issued in the form of typewritten Notes representing the Book-Entry Notes, to
be delivered to The Depository Trust Company, the initial Depository, or its
designated custodian, by, or on behalf of, the Issuer. The Notes shall initially
be registered on the Note Register in the name of Cede & Co., the nominee of the
initial Depository, and no Beneficial Owner will receive a Definitive Note
representing such Beneficial Owner's interest in such Note, except as provided
in Section 4.08. With respect to such Notes, unless and until definitive, fully
registered Notes (the "Definitive Notes") have been issued to Beneficial Owners
pursuant to Section 4.08:

                  (i)      the provisions of this Section 4.06 shall be in full
         force and effect;

                  (ii)     the Note Registrar, the Paying Agent and the
         Indenture Trustee shall be entitled to deal with the Depository for all
         purposes of this Indenture (including the payment of principal of and
         interest on the Notes and the giving of instructions or directions
         hereunder) as the sole holder of the Notes, and shall have no
         obligation to the Beneficial Owners of the Notes;

                  (iii)    to the extent that the provisions of this Section
         4.06 conflict with any other provisions of this Indenture, the
         provisions of this Section 4.06 shall control;

                  (iv)     the rights of Beneficial Owners shall be exercised
         only through the Depository and shall be limited to those established
         by law and agreements between such Owners of Notes and the Depository
         and/or the Depository Participants. Unless and until Definitive Notes
         are issued pursuant to Section 4.08, the initial Depository will make
         book-entry transfers among the Depository Participants and receive and
         transmit payments of principal of and interest on the Notes to such
         Depository Participants; and

                  (v)      whenever this Indenture requires or permits actions
         to be taken based upon instructions or directions of Holders of Notes
         evidencing a specified percentage of the Note Principal Balances of the
         Notes, the Depository shall be deemed to represent such percentage with
         respect to the Notes only to the extent that it has received
         instructions to such effect from Beneficial Owners and/or Depository
         Participants owning or representing, respectively, such required
         percentage of the beneficial interest in the Notes and has delivered
         such instructions to the Indenture Trustee.

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<PAGE>

         Section 4.07 Notices to Depository. Whenever a notice or other
communication to the Note Holders is required under this Indenture, unless and
until Definitive Notes shall have been issued to Beneficial Owners pursuant to
Section 4.08, the Indenture Trustee shall give all such notices and
communications specified herein to be given to Holders of the Notes to the
Depository, and shall have no obligation to the Beneficial Owners.

         Section 4.08 Definitive Notes. If (i) the Depositor advises the
Indenture Trustee or the Note Registrar in writing that the Depository is no
longer willing or able to properly discharge its responsibilities as clearing
agency with respect to the Notes and the Depositor is unable to locate a
qualified successor within 30 days, (ii) the Depositor, at its option (with the
consent of the Indenture Trustee, which consent shall not by unreasonably
withheld), elects to terminate the book-entry system through the Depository or
(iii) after the occurrence of an Event of Default, any Note Owner materially and
adversely affected thereby may, at its option, request and receive a Definitive
Note evidencing such Note Owner's Percentage Interest in the related Class of
Notes. Upon surrender to the Indenture Trustee of the global Note or definitive
typewritten Notes representing the Book-Entry Notes by the Depository,
accompanied by registration instructions, the Note Registrar will re-issue the
Book-Entry Notes as Definitive Notes issued in the respective Note Principal
Balances owned by individual Note Owners. None of the Issuer, the Note Registrar
or the Indenture Trustee shall be liable for any delay in delivery of such
instructions and may conclusively rely on, and shall be protected in relying on,
such instructions. Upon the issuance of Definitive Notes, the Indenture Trustee
shall recognize the Holders of the Definitive Notes as Noteholders.

         Section 4.09 Tax Treatment. The Issuer has entered into this Indenture,
and the Notes will be issued with the intention that, for federal, state and
local income, single business and franchise tax purposes, the Notes will qualify
as indebtedness. The Issuer and the Indenture Trustee (in accordance with
Section 6.06 hereof), by entering into this Indenture, and each Noteholder, by
its acceptance of its Note (and each Beneficial Owner by its acceptance of an
interest in the applicable Book-Entry Note), agree to treat the Notes for
federal, state and local income, single business and franchise tax purposes as
indebtedness.

         Section 4.10 Satisfaction and Discharge of Indenture. This Indenture
shall cease to be of further effect with respect to the Notes except as to (i)
rights of registration of transfer and exchange, (ii) substitution of mutilated,
destroyed, lost or stolen Notes, (iii) rights of Noteholders to receive payments
of principal thereof and interest thereon, (iv) Sections 3.03, 3.04, 3.06, 3.09,
3.17, 3.19 and 3.20, (v) the rights, obligations and immunities of the Indenture
Trustee hereunder (including the rights of the Indenture Trustee under Section
6.07 and the obligations of the Indenture Trustee under Section 4.11), (vi) the
right of the Derivative Contract Counterparty to receive any unpaid Net Swap Fee
[or Additional Derivative Contract Counterparty Payment] and (vii) the rights of
Noteholders and the Insurer as beneficiaries hereof with respect to the property
so deposited with the Indenture Trustee payable to all or any of them, and the
Indenture Trustee, on demand of and at the expense of the Issuer, shall execute
proper instruments acknowledging satisfaction and discharge of this Indenture
with respect to the Notes and shall release and deliver the Collateral to or
upon the Issuer Request, when

         (A)      either

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         (1)      all Notes theretofore authenticated and delivered (other than
(i) Notes that have been destroyed, lost or stolen and that have been replaced
or paid as provided in Section 4.03 hereof and (ii) Notes for whose payment
money has theretofore been deposited in trust or segregated and held in trust by
the Issuer and thereafter repaid to the Issuer or discharged from such trust, as
provided in Section 3.03) have been delivered to the Indenture Trustee for
cancellation; or

         (2)      all Notes not theretofore delivered to the Indenture Trustee
for cancellation

                  a.       have become due and payable,

                  b.       will become due and payable at the Final Scheduled
                           Payment Date within one year, or

                  c.       have been called for early redemption and the Trust
                           has been terminated pursuant to Section 8.07 hereof,

and the Issuer, in the case of a. or b. above, has irrevocably deposited or
caused to be irrevocably deposited with the Indenture Trustee cash or direct
obligations of or obligations guaranteed by the United States of America (which
will mature prior to the date such amounts are payable), in trust for such
purpose, in an amount sufficient to pay and discharge the entire indebtedness on
such Notes then outstanding not theretofore delivered to the Indenture Trustee
for cancellation when due on the Final Scheduled Payment Date or other final
Payment Date and has delivered to the Indenture Trustee and the Insurer a
verification report from a nationally recognized accounting firm certifying that
the amounts deposited with the Indenture Trustee are sufficient to pay and
discharge the entire indebtedness of such Notes, or, in the case of c. above,
the Issuer shall have complied with all requirements of Section 8.07 hereof,

         (B)      the Issuer has paid or caused to be paid all other sums
payable hereunder and under the Insurance Agreement by the Issuer as evidenced
by the written consent of the Insurer; and

         (C)      the Issuer has delivered to the Indenture Trustee and the
Insurer an Officer's Certificate and an Opinion of Counsel, each meeting the
applicable requirements of Section 10.01 hereof, each stating that all
conditions precedent herein provided for relating to the satisfaction and
discharge of this Indenture have been complied with and, if the Opinion of
Counsel relates to a deposit made in connection with Section 4.10(A)(2)b. above,
such opinion shall further be to the effect that such deposit will constitute an
"in-substance defeasance" within the meaning of Revenue Ruling 85-42, 1985-1
C.B. 36, and in accordance therewith, the Issuer will be the owner of the assets
deposited in trust for federal income tax purposes.

         Section 4.11 Application of Trust Money. All monies deposited with the
Indenture Trustee pursuant to Section 4.10 hereof shall be held in trust and
applied by it, in accordance with the provisions of the Notes and this
Indenture, to the payment, either directly or through any Paying Agent or the
Certificate Paying Agent as designee of the Issuer or the Insurer, as the

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Indenture Trustee may determine, to the Holders of Securities, of all sums due
and to become due thereon for principal and interest or otherwise; but such
monies need not be segregated from other funds except to the extent required
herein or required by law.

         Section 4.12 Subrogation and Cooperation. (a) The Issuer and the
Indenture Trustee acknowledge that (i) to the extent the Insurer makes payments
under the Insurance Policy on account of principal of or interest on the Class
VII-A Notes, the Insurer will be fully subrogated to the rights of such Holders
to receive such principal and interest from the Issuer, and (ii) the Insurer
shall be paid such principal and interest but only from the sources and in the
manner provided herein and in the Insurance Agreement for the payment of such
principal and interest.

         The Indenture Trustee shall, so long as it is indemnified to its
satisfaction, cooperate in all respects with any reasonable written request by
the Insurer (unless a Insurer Default exists) for action to preserve or enforce
the Insurer's rights or interest under this Indenture or the Insurance
Agreement, consistent with this Indenture and without limiting the rights of the
Noteholders as otherwise set forth in the Indenture, including, without
limitation, upon the occurrence and continuance of a default under the Insurance
Agreement, a request to take any one or more of the following actions:

                  (i)      institute Proceedings for the collection of all
         amounts then payable on the Class VII-A Notes, or under this Indenture
         in respect of the Class VII-A Notes and all amounts payable under the
         Insurance Agreement, enforce any judgment obtained and collect from the
         Issuer monies adjudged due;

                  (ii)     sell or cause to be sold the Trust Estate or any
         portion thereof or rights or interest therein, at one or more public or
         private Sales (as defined in Section 5.15 (a) hereof) called and
         conducted in any manner permitted by law;

                  (iii)    institute Proceedings from time to time for the
         complete or partial foreclosure of this Indenture; and

                  (iv)     exercise any remedies of a secured party under the
         UCC and take any other appropriate action to protect and enforce the
         rights and remedies of the Insurer hereunder;

provided, however, action shall be taken pursuant to this Section 4.12 by the
Indenture Trustee to preserve the Insurer's rights or interest under this
Agreement or the Insurance Agreement only to the extent such action is available
to the Class VII-A Noteholders or the Insurer under other provisions of this
Indenture.

         Notwithstanding any provision of this Indenture to the contrary, so
long as no Insurer Default exists, the Insurer shall at all times be treated as
if it were the exclusive owner of all Class VII-A Notes Outstanding for the
purposes of all approvals, consents, waivers and the institution of any action
and the written direction of all remedies, and the Indenture Trustee shall act
in accordance with the written directions of the Insurer so long as it is
indemnified therefor to its reasonable satisfaction.

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<PAGE>

         Section 4.13 Repayment of Monies Held by Paying Agent. In connection
with the satisfaction and discharge of this Indenture with respect to the Notes,
all monies then held by any Person other than the Indenture Trustee under the
provisions of this Indenture with respect to such Notes shall, upon demand of
the Issuer, be paid to the Indenture Trustee to be held and applied according to
Sections 3.05, 3.06 and 3.07 and thereupon such Person shall be released from
all further liability with respect to such monies.

         Section 4.14 Temporary Notes. Pending the preparation of any Definitive
Notes, the Issuer may execute and upon its written direction, the Indenture
Trustee may authenticate and make available for delivery, temporary Notes that
are printed, lithographed, typewritten, photocopied or otherwise produced, in
any denomination, substantially of the tenor of the Definitive Notes in lieu of
which they are issued and with such appropriate insertions, omissions,
substitutions and other variations as the officers executing such Notes may
determine, as evidenced by their execution of such Notes.

         If temporary Notes are issued, the Issuer will cause Definitive Notes
to be prepared without unreasonable delay. After the preparation of the
Definitive Notes, the temporary Notes shall be exchangeable for Definitive Notes
upon surrender of the temporary Notes at the office of the Indenture Trustee
located at 101 Barclay Street, 1E, New York, New York 10286, Attention:
Corporate Trust Window, American Home Mortgage Investment Trust, Series 2004-4,
without charge to the Holder. Upon surrender for cancellation of any one or more
temporary Notes, the Issuer shall execute and, upon Issuer Request, the
Indenture Trustee shall authenticate and make available for delivery, in
exchange therefor, Definitive Notes of authorized denominations and of like
tenor, class and aggregate principal amount. Until so exchanged, such temporary
Notes shall in all respects be entitled to the same benefits under this
Indenture as Definitive Notes.

         Section 4.15 Representation Regarding ERISA. By acquiring a Note or
interest therein, each Holder of such Note or Beneficial Owner of any such
interest will be deemed to represent that either (1) it is not acquiring the
Note with Plan Assets or (2) (A) the acquisition, holding and transfer of such
Note will not give rise to a nonexempt prohibited transaction under Section 406
of ERISA or Section 4975 of the Code and (B) the Notes are rated investment
grade or better and such person believes that the Notes are properly treated as
indebtedness without substantial equity features for purposes of the Department
of Labor regulation 29 C.F.R. ss. 2510.3-101, and agrees to so treat the Notes.
Alternatively, regardless of the rating of the Notes, such person may provide
the Indenture Trustee and the Owner Trustee with an opinion of counsel, which
opinion of counsel will not be at the expense of the Issuer, the Seller, any
Underwriter, the Owner Trustee, the Indenture Trustee, the related Master
Servicer or any successor servicer which opines that the acquisition, holding
and transfer of such Note or interest therein is permissible under applicable
law, will not constitute or result in a non-exempt prohibited transaction under
ERISA or Section 4975 of the Code and will not subject the Issuer, the Seller,
the Depositor, any Underwriter, the Owner Trustee, the Indenture Trustee, the
related Master Servicer or any successor servicer to any obligation in addition
to those undertaken in the Indenture.

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                                    ARTICLE V

                              Default and Remedies

         Section 5.01 Events of Default. The Issuer shall deliver to the
Indenture Trustee and the Insurer, within five days after learning of the
occurrence of an Event of Default, written notice in the form of an Officer's
Certificate of any event which with the giving of notice and the lapse of time
would become an Event of Default under clause (c) or (d) of the definition of
"Event of Default", its status and what action the Issuer is taking or proposes
to take with respect thereto. The Indenture Trustee shall not be deemed to have
knowledge of any Event of Default unless a Responsible Officer has actual
knowledge thereof or unless written notice of such Event of Default is received
by a Responsible Officer and such notice references the Notes, the Trust Estate
or this Indenture.

         Section 5.02 Acceleration of Maturity; Rescission and Annulment. If an
Event of Default should occur and be continuing, then and in every such case the
Indenture Trustee (i) with respect to the Notes, other than the Class VII-A
Notes, at the written direction of the Holders of Notes representing not less
than a majority of the aggregate Note Principal Balance of the Notes or (ii)
with respect to the Class VII-A Notes, so long as the Insurer is not in default
under the Insurance Policy, at the written direction of the Insurer or at the
written direction of the Holder of the majority of the aggregate Note Principal
Balance of the Class VII-A Notes with the consent of the Insurer, may declare
the Notes to be immediately due and payable, by a notice in writing to the
Issuer (and to the Indenture Trustee if such notice is given by Insurer or the
Noteholders), and upon any such declaration the unpaid Note Principal Balance of
the Notes, together with accrued and unpaid interest thereon through the date of
acceleration, shall become immediately due and payable.

         At any time after such declaration of acceleration of maturity with
respect to an Event of Default has been made and before a judgment or decree for
payment of the money due has been obtained by the Indenture Trustee as
hereinafter in this Article V provided, (i) with respect to the Notes, other
than the Class VII-A Notes, the Holders of the Notes representing not less than
a majority of the aggregate Note Principal Balance of each Class of Notes, other
than the Class VII-A Notes, by written notice to the Issuer and the Indenture
Trustee, or (ii) with respect to the Class VII-A Notes, the Insurer, so long as
the Insurer is not in default under the Insurance Policy, or the Holder of the
majority of the aggregate Note Principal Balance of the Class VII-A Notes with
the consent of the Insurer, by written notice to the Issuer and the Indenture
Trustee, may waive the related Event of Default and rescind and annul such
declaration and its consequences if:

         (a)      the Issuer has paid or deposited with the Indenture Trustee a
sum sufficient to pay:

                  (A)      all payments of principal of and interest on the
         Notes and all other amounts that would then be due hereunder or under
         the Notes if the Event of Default giving rise to such acceleration had
         not occurred;

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<PAGE>

                  (B)      all sums paid or advanced by the Indenture Trustee
         hereunder and the reasonable compensation, expenses, disbursements and
         advances of the Indenture Trustee and its agents and counsel; and

                  (C)      all amounts owed to the Insurer;

                  (D)      all amounts owed to the Derivative Contact
         Counterparty under the Cap Contract, Corridor Contract and Swap
         Agreements.

         (b)      All Events of Default, other than the nonpayment of the
principal of the Notes that has become due solely by such acceleration, have
been cured or waived as provided in Section 5.12.

No such rescission shall affect any subsequent default or impair any right
consequent thereto.

         Section 5.03 Collection of Indebtedness and Suits for Enforcement by
Indenture Trustee.

         (a)      The Issuer covenants that if (i) default is made in the
payment of any interest on any Note when the same becomes due and payable, and
such default continues for a period of five days, or (ii) default is made in the
payment of the principal of or any installment of the principal of any Note when
the same becomes due and payable, the Issuer shall, upon demand of the Indenture
Trustee, (i) with respect to the Notes other than the Class VII-A Notes, at the
written direction of the the Holders of a majority of the aggregate Note
Principal Balances of the Notes or (ii) with respect to the Class VII-A Notes,
so long as the Insurer is not in default under the Insurance Policy, at the
written direction of the Insurer or at the written direction of the Holder of
the majority of the aggregate Note Principal Balance of the Class VII-A Notes
with the consent of the Insurer, pay to the Indenture Trustee, for the benefit
of the Insurer, with respect to the Class VII-A Notes, or the Holders of Notes,
the whole amount then due and payable on the related Notes for principal and
interest, with interest at the applicable Note Interest Rate upon the overdue
principal, and in addition thereto such further amount as shall be sufficient to
cover the costs and expenses of collection, including the reasonable
compensation, expenses, disbursements and advances of the Indenture Trustee and
its agents and counsel.

         (b)      In case the Issuer shall fail forthwith to pay such amounts
upon such demand, the Indenture Trustee, in its own name and as trustee of an
express trust, subject to the provisions of Section 4.12 and Section 10.16
hereof, may institute a Proceeding for the collection of the sums so due and
unpaid, and may prosecute such Proceeding to judgment or final decree, and may
enforce the same against the Issuer or other obligor upon the Notes and collect
in the manner provided by law out of the property of the Issuer or other obligor
upon the Notes, wherever situated, the monies adjudged or decreed to be payable.

         (c)      If an Event of Default occurs and is continuing, the Indenture
Trustee, subject to the provisions of Section 4.12 and Section 10.16 hereof,
may, as more particularly provided in Section 5.04 hereof, in its discretion,
proceed to protect and enforce its rights and the rights of the Insurer and the
Noteholders by such appropriate Proceedings as directed in writing by the
Insurer

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or the Holders of a majority of the aggregate Note Principal Balances of each
Class of Notes, to protect and enforce any such rights, whether for the specific
enforcement of any covenant or agreement in this Indenture or in aid of the
exercise of any power granted herein, or to enforce any other proper remedy or
legal or equitable right vested in the Indenture Trustee by this Indenture or by
law.

         (d)      In case there shall be pending, relative to the Issuer or any
other obligor upon the Notes or any Person having or claiming an ownership
interest in the Trust Estate, Proceedings under Title 11 of the United States
Code or any other applicable federal or state bankruptcy, insolvency or other
similar law, or in case a receiver, assignee or trustee in bankruptcy or
reorganization, liquidator, sequestrator or similar official shall have been
appointed for or taken possession of the Issuer or its property or such other
obligor or Person, or in case of any other comparable judicial Proceedings
relative to the Issuer or other obligor upon the Notes, or to the creditors or
property of the Issuer or such other obligor, the Indenture Trustee, as directed
in writing by the Insurer or the Holders of a majority of the aggregate Note
Principal Balances of each Class of Notes, irrespective of whether the principal
of any Notes shall then be due and payable as therein expressed or by
declaration or otherwise and irrespective of whether the Indenture Trustee shall
have made any demand pursuant to the provisions of this Section, shall be
entitled and empowered, by intervention in such Proceedings or otherwise:

                  (i)      to file and prove a claim or claims for the whole
         amount of principal and interest owing and unpaid in respect of the
         Notes and to file such other papers or documents as may be necessary or
         advisable in order to have the claims of the Indenture Trustee
         (including any claim for reasonable compensation to the Indenture
         Trustee and each predecessor Indenture Trustee, and their respective
         agents, attorneys and counsel, and for reimbursement of all expenses
         and liabilities incurred, and all advances made, by the Indenture
         Trustee and each predecessor Indenture Trustee, except as a result of
         negligence, willful misconduct or bad faith) and of the Noteholders
         allowed in such Proceedings;

                  (ii)     unless prohibited by applicable law and regulations,
         to vote on behalf of the Holders of Notes in any election of a trustee,
         a standby trustee or Person performing similar functions in any such
         Proceedings;

                  (iii)    to collect and receive any monies or other property
         payable or deliverable on any such claims and to distribute all amounts
         received with respect to the claims of the Noteholders and of the
         Indenture Trustee on their behalf, and

                  (iv)     to file such proofs of claim and other papers or
         documents as may be necessary or advisable in order to have the claims
         of the Indenture Trustee or the Holders of Notes allowed in any
         judicial proceedings relative to the Issuer, its creditors and its
         property;

and any trustee, receiver, liquidator, custodian or other similar official in
any such Proceeding is hereby authorized by each of such Noteholders to make
payments to the Indenture Trustee, and, in the event that the Indenture Trustee
shall consent to the making of payments directly to such

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<PAGE>

Noteholders, to pay to the Indenture Trustee such amounts as shall be sufficient
to cover reasonable compensation to the Indenture Trustee, each predecessor
Indenture Trustee and their respective agents, attorneys and counsel, and all
other expenses and liabilities incurred, and all advances made, by the Indenture
Trustee and each predecessor Indenture Trustee.

         (e)      Nothing herein contained shall be deemed to authorize the
Indenture Trustee to authorize or consent to or vote for or accept or adopt on
behalf of any Noteholder any plan of reorganization, arrangement, adjustment or
composition affecting the Notes or the rights of any Holder thereof or to
authorize the Indenture Trustee to vote in respect of the claim of any
Noteholder in any such proceeding except, as aforesaid, to vote for the election
of a trustee in bankruptcy or similar Person.

         (f)      All rights of action and of asserting claims under this
Indenture, or under any of the Notes, may be enforced by the Indenture Trustee
without the possession of any of the Notes or the production thereof in any
trial or other Proceedings relative thereto, and any such action or proceedings
instituted by the Indenture Trustee shall be brought in its own name as trustee
of an express trust, and any recovery of judgment, subject to the payment of the
expenses, disbursements and compensation of the Indenture Trustee, each
predecessor Indenture Trustee and their respective agents and attorneys, shall
be for the ratable benefit of the Holders of the Notes, subject to Section 5.05
hereof.

         (g)      In any Proceedings brought by the Indenture Trustee (and also
any Proceedings involving the interpretation of any provision of this Indenture
to which the Indenture Trustee shall be a party), the Indenture Trustee shall be
held to represent all the Holders of the Notes, and it shall not be necessary to
make any Noteholder a party to any such Proceedings.

         (h)      When the Indenture Trustee incurs expenses or renders services
in connection with an Event of Default specified in clauses (iv) or (v) of the
definition thereof or any other related Proceedings the expenses (including the
reasonable charges and expenses of its counsel) and the compensation for the
services are intended to constitute expenses of administration under any
applicable Federal or state bankruptcy, insolvency or other similar law.

         Section 5.04 Remedies; Priorities.

         (a)      If an Event of Default shall have occurred and be continuing
and if an acceleration has been declared and not rescinded pursuant to Section
5.02 hereof, the Indenture Trustee, subject to the provisions of Section 10.16
hereof, may with the consent of the Insurer, and shall, (i) with respect to the
Notes other than the Class VII-A Notes, at the written direction of the Holders
of a majority of the aggregate Note Principal Balances of the Notes, or (ii)
with respect to the Class VII-A Notes, so long as the Insurer is not in default
under the Insurance Policy, at the written direction of the Insurer or the
Holders of the majority of the aggregate Note Principal Balance of the Class
VII-A Notes with the consent of the Insurer, do one or more of the following
(subject to Section 5.05 hereof):

                  (i)      institute Proceedings in its own name and as trustee
         of an express trust for the collection of all amounts then payable on
         the Notes or under this Indenture with

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<PAGE>

         respect thereto, whether by declaration or otherwise, enforce any
         judgment obtained, and collect from the Issuer and any other obligor
         upon such Notes monies adjudged due;

                  (ii)     institute Proceedings from time to time for the
         complete or partial foreclosure of this Indenture with respect to the
         Trust Estate;

                  (iii)    exercise any remedies of a secured party under the
         UCC and take any other appropriate action to protect and enforce the
         rights and remedies of the Indenture Trustee and the Holders of the
         Notes; and

                  (iv)     sell the Trust Estate or any portion thereof or
         rights or interest therein, at one or more public or private sales
         called and conducted in any manner permitted by law;

provided, however, that the Indenture Trustee may not sell or otherwise
liquidate the Trust Estate following an Event of Default, unless (A) the
Indenture Trustee obtains the consent of the Insurer or the Holders of 100% of
the aggregate Note Principal Balance of the Notes then outstanding, (B) the
proceeds of such sale or liquidation distributable to the Holders of the Notes
are sufficient to discharge in full all amounts then due and unpaid upon such
Notes for principal and interest or (C) the Indenture Trustee determines that
the Mortgage Loans will not continue to provide sufficient funds for the payment
of principal of and interest on the applicable Notes as they would have become
due if the Notes had not been declared due and payable, and the Indenture
Trustee, respecting the Class VII-A Notes, obtains the consent of the Insurer
or, respecting the Notes other than the Class VII-A Notes, the Holders of 66
2/3% of the aggregate Note Principal Balance of the Notes then outstanding. In
determining such sufficiency or insufficiency with respect to clause (B) and
(C), the Indenture Trustee may, but need not, obtain and rely upon an opinion
(obtained at the expense of the Trust) of an Independent investment banking or
accounting firm of national reputation as to the feasibility of such proposed
action and as to the sufficiency of the Trust Estate for such purpose.
Notwithstanding the foregoing, so long as an Event of Master Servicer
Termination has not occurred, any Sale of the Trust Estate shall be made subject
to the continued servicing of the Mortgage Loans by the related Master Servicer
as provided in the related Servicing Agreement.

         (b)      If the Indenture Trustee collects any money or property with
respect to the Group I Mortgage Loans, Group II Mortgage Loans, Group III
Mortgage Loans, Group IV Loans or Group V Mortgage Loans pursuant to this
Article V, it shall pay out the money or property in the following order as
determined for each Loan Group:

                  FIRST: to the Indenture Trustee and RMBS Master Servicer for
amounts due and not previously paid in respect of the Mortgage Loans in that
Loan Group;

                  SECOND: to the Derivative Contract Counterparty, the Net Swap
Fee for such Payment Date, other than any Additional Derivative Counterparty
Payment;

                  THIRD: to the related Noteholders (other than the Class N
Noteholders), the amount of interest then due and unpaid on the related Notes
(other than Basis Risk Shortfall Carry-Forward Amounts and Net WAC Shortfall
Carry-Forward Amounts), first, to the Class A

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Noteholders from related Available Funds, the related Accrued Note Interest for
such Class, plus any related Unpaid Interest Shortfalls, with any amounts
payable to the Class I-A Notes payable to the Class I-A-1 Notes and Class I-A-2
Notes, pro rata, and with any amounts payable to the Class II-A Notes payable to
the Class II-A-1 Notes and Class II-A-2 Notes, pro rata, and second, from any
remaining Available Funds for all Loan Groups, to the Class M Noteholders,
sequentially, according to the amounts due and payable on the Notes for
interest;

                  FOURTH: to the related Noteholders (other than the Class N
Noteholders) the amount of principal then due and unpaid on the related Notes,
and to each Noteholder (other than the Class N Noteholders), pro rata, without
preference or priority of any kind, until the Note Principal Balance of each
such Class is reduced to zero;

                  FIFTH: to the Class I-A-2, Class II-A-2 and Class M Notes, in
order of payment priority, the amount of any related Allocated Realized Loss
Amount not previously paid;

                  SIXTH: to the related Notes, in order of payment priority, the
amount of any related Basis Risk Shortfall Carry-Forward Amounts and Net WAC
Shortfall Carry-Forward Amounts, as applicable, not previously paid; and

                  SEVENTH: to the holders of the Class N Notes, any Accrued Note
Interest for such Notes on such Payment Date;

                  EIGHTH: to the holders of the Class N Notes, in reduction of
the Note Principal Balance thereof, until reduced to zero;

                  NINTH: to the Derivative Contract Counterparty, any Additional
Derivative Contract Counterparty Payment; and

                  TENTH: to the payment of the remainder, if any, to the holders
of the Trust Certificates on behalf of the Issuer.

         (c)      If the Indenture Trustee collects any money or property with
respect to the Group VI Mortgage Loans pursuant to this Article V, it shall pay
out the money or property in the following order as determined for each Loan
Group:

                  FIRST: to the Indenture Trustee and RMBS Master Servicer for
amounts due and not previously paid in respect of the Mortgage Loans in that
Loan Group;

                  SECOND: to the related Noteholders (other than the Class N
Noteholders), the amount of interest then due and unpaid on the related Notes
(other than Basis Risk Shortfall Carry-Forward Amounts and Net WAC Shortfall
Carry-Forward Amounts), to the Class VI-A, Class VI-M and Class VI-B Noteholders
pro rata from related Available Funds, the related Accrued Note Interest for
such Class, plus any related Unpaid Interest Shortfalls, with any amounts
payable to the Class VI-A Notes payable to the Class VI-A-1 Notes and Class
I-A-2 Notes, sequentially;

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<PAGE>

                  THIRD: to the related Noteholders (other than the Class N
Noteholders) the amount of principal then due and unpaid on the related Notes,
and to each Noteholder (other than the Class N Noteholders), pro rata, without
preference or priority of any kind, until the Note Principal Balance of each
such Class is reduced to zero;

                  FOURTH: to the related Class VI-M Notes and Class VI-B Notes,
in order of payment priority, the amount of any related Allocated Realized Loss
Amount not previously paid;

                  FIFTH: to the related Notes, in order of payment priority, the
amount of any related Basis Risk Shortfall Carry-Forward Amounts and Net WAC
Shortfall Carry-Forward Amounts, as applicable, not previously paid; and

                  SIXTH: to the holders of the Class N Notes, any Accrued Note
Interest for such Notes on such Payment Date;

                  SEVENTH: to the holders of the Class N Notes, in reduction of
the Note Principal Balance thereof, until reduced to zero; and

                  EIGHTH: to the payment of the remainder, if any, to the
holders of the Trust Certificates on behalf of the Issuer.

         (d)      If the Indenture Trustee collects any money or property with
respect to the Group VII Mortgage Loans pursuant to this Article V, it shall pay
out the money or property in the following order as determined for each Loan
Group:

                  FIRST: to the Indenture Trustee and HELOC Master Servicer for
amounts due and not previously paid in respect of the HELOC Mortgage Loans in
that Loan Group;

                  SECOND: to the Insurer, provided that no Insurer Default
exists, with respect to the reimbursement for prior draws made under the
Insurance Policy and the payment of all amounts due and owing to the Insurer
under the Insurance Agreement;

                  THIRD: to the Class VII-A Noteholders, accrued interest and
unpaid interest, in each case accrued at the rate equal to the related Note
Interest Rate;

                  FOURTH: to the Class VII-A Notes, the amount of principal then
due and unpaid on the Class VII-A Notes pro rata, without preference or priority
of any kind, until the Note Principal Balance of such Class is reduced to zero;

                  FIFTH: to the Class VII-A Noteholders, the amount of any
Investor Charge-Off Amounts not previously paid;

                  SIXTH: to the Class VII-A Noteholders, the amount of any
related Basis Risk Shortfall Carry-Forward Amounts not previously paid; and

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<PAGE>

                  SEVENTH: to the payment of the remainder, if any, to the
holders of the Trust Certificates on behalf of the Issuer.

         The Indenture Trustee may fix a record date and Payment Date for any
payment to Noteholders pursuant to this Section 5.04. With respect to any
acceleration at the direction of the Insurer, the first Payment Date after the
acceleration shall be the first Payment Date after the acceleration. At least 15
days before such record date, the Indenture Trustee shall mail to each
Noteholder a notice that states the record date, the Payment Date and the amount
to be paid.

         Section 5.05 Optional Preservation of the Trust Estate. If the Notes
have been declared to be due and payable under Section 5.02 following an Event
of Default and such declaration and its consequences have not been rescinded and
annulled, the Indenture Trustee may, with the consent of the Insurer (which
consent shall not be required if an Insurer Default exists), and shall, at the
written direction of the Insurer so long as no Insurer Default exists, elect to
take and maintain possession of the Trust Estate. It is the desire of the
parties hereto and the Noteholders that there be at all times sufficient funds
for the payment of principal of and interest on the Notes and other obligations
of the Issuer, and the Insurer and the Indenture Trustee, unless directed
otherwise by the Insurer, shall take such desire into account when determining
whether or not to take and maintain possession of the Trust Estate. In
determining whether to take and maintain possession of the Trust Estate, the
Indenture Trustee may, but need not, obtain and rely upon an opinion of an
Independent investment banking or accounting firm of national reputation as to
the feasibility of such proposed action and as to the sufficiency of the Trust
Estate for such purpose.

         Section 5.06 Limitation of Suits. No Holder of any Note, other than the
Insurer acting pursuant to Section 4.12 hereof, shall have any right to
institute any Proceeding, judicial or otherwise, with respect to this Indenture,
or for the appointment of a receiver or trustee, or for any other remedy
hereunder, unless and subject to the provisions of Section 10.16 hereof:

                  (i)      such Holder has previously given written notice to
         the Indenture Trustee of a continuing Event of Default;

                  (ii)     the Holders of not less than 25% of the aggregate
         Note Principal Balances of the Notes have made a written request to the
         Indenture Trustee to institute such Proceeding in respect of such Event
         of Default in its own name as Indenture Trustee hereunder;

                  (iii)    such Holder or Holders have offered to the Indenture
         Trustee reasonable indemnity against the costs, expenses and
         liabilities to be incurred in complying with such request;

                  (iv)     the Indenture Trustee, for 60 days after its receipt
         of such notice of request and offer of indemnity, has failed to
         institute such Proceedings;

                  (v)      no direction inconsistent with such written request
         has been given to the Indenture Trustee during such 60-day period by
         the Holders of a majority of the Note Principal Balances of the Notes;
         and

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<PAGE>

                  (vi)     such Holder or Holders have the written consent of
         the Insurer unless a Insurer Default exists

                  (vii)    It is understood and intended that no one or more
         Holders of Notes shall have any right in any manner whatever by virtue
         of, or by availing of, any provision of this Indenture to affect,
         disturb or prejudice the rights of any other Holders of Notes or to
         obtain or to seek to obtain priority or preference over any other
         Holders or to enforce any right under this Indenture, except in the
         manner herein provided.

         Subject to the last paragraph of Section 5.11 herein, in the event the
Indenture Trustee shall receive conflicting or inconsistent requests and
indemnity from two or more groups of Holders of Notes, each representing less
than a majority of the Note Principal Balances of the Notes, the Indenture
Trustee in its sole discretion may determine what action, if any, shall be
taken, notwithstanding any other provisions of this Indenture.

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<PAGE>

         Section 5.07 Unconditional Rights of Noteholders To Receive Principal
and Interest. Notwithstanding any other provisions in this Indenture, the Holder
of any Note shall have the right, which is absolute and unconditional, to
receive payment of the principal of and interest, if any, on such Note on or
after the respective due dates thereof expressed in such Note or in this
Indenture and to institute suit for the enforcement of any such payment, and
such right shall not be impaired without the consent of such Holder.

         Section 5.08 Restoration of Rights and Remedies. If the Indenture
Trustee or any Noteholder has instituted any Proceeding to enforce any right or
remedy under this Indenture and such Proceeding has been discontinued or
abandoned for any reason or has been determined adversely to the Indenture
Trustee, the Insurer or to such Noteholder, then and in every such case the
Issuer, the Indenture Trustee, the Insurer and the Noteholders shall, subject to
any determination in such Proceeding, be restored severally and respectively to
their former positions hereunder, and thereafter all rights and remedies of the
Indenture Trustee, the Insurer and the Noteholders shall continue as though no
such Proceeding had been instituted.

         Section 5.09 Rights and Remedies Cumulative. No right or remedy herein
conferred upon or reserved to the Indenture Trustee, the Insurer or to the
Noteholders is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

         Section 5.10 Delay or Omission Not a Waiver. No delay or omission of
the Indenture Trustee, the Insurer or any Holder of any Note to exercise any
right or remedy accruing upon any Event of Default shall impair any such right
or remedy or constitute a waiver of any such Event of Default or an acquiescence
therein. Every right and remedy given by this Article V or by law to the
Indenture Trustee, the Insurer or to the Noteholders may be exercised from time
to time, and as often as may be deemed expedient, by the Indenture Trustee, the
Insurer or by the Noteholders, as the case may be.

         Section 5.11 Control By Noteholders. (i) With respect to the Notes
other than the Class VII-A Notes, the Holders of a majority of the aggregate
Note Principal Balances of Notes or (ii) with respect to the Class VII-A Notes,
the Insurer, so long as the Insurer is not in default under the Insurance
Policy, or the holders of the majority of the aggregate Note Principal Balance
of the Class VII-A Notes with the consent of the Insurer, shall have the right
to direct the time, method and place of conducting any Proceeding for any remedy
available to the Indenture Trustee with respect to the related Notes or
exercising any trust or power conferred on the Indenture Trustee; provided that:

         (a)      such direction shall not be in conflict with any rule of law
or with this Indenture;

         (b)      any direction to the Indenture Trustee to sell or liquidate
the Trust Estate shall be by Holders of Notes representing not less than 100% of
the Note Principal Balances of the Notes; and

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<PAGE>

         (c)      the Indenture Trustee may take any other action deemed proper
by the Indenture Trustee that is not inconsistent with such direction of the
Holders of Notes representing a majority of the Note Principal Balances of the
Notes.

Notwithstanding the rights of Noteholders set forth in this Section 5.11 the
Indenture Trustee need not take any action that it determines might involve it
in liability.

         Section 5.12 Waiver of Past Defaults. Prior to the declaration of the
acceleration of the maturity of the Notes as provided in Section 5.02 hereof,
(i) with respect to the Notes other than Class VII-A Notes, the Holders of Notes
representing not less than a majority of the aggregate Note Principal Balance of
each Class of Notes or (ii) with respect to the Class VII-A Notes, so long as
the Insurer is not in default under the Insurance Policy, the Insurer or the
Holder of the majority of the aggregate Note Principal Balance of the Class
VII-A Notes with the consent of the Insurer may waive any past Event of Default
and its consequences except an Event of Default (a) with respect to payment of
principal of or interest on any of the Notes, or (b) in respect of a covenant or
provision hereof which cannot be modified or amended without the consent of the
Holder of each Note or (c) the waiver of which would materially and adversely
affect the interests of the Insurer or modify its obligations under the
Insurance Policy. In the case of any such waiver, the Issuer, the Indenture
Trustee and the Holders of the Notes shall be restored to their former positions
and rights hereunder, respectively, but no such waiver shall extend to any
subsequent or other Event of Default or impair any right consequent thereto.

         Upon any such waiver, any Event of Default arising therefrom shall be
deemed to have been cured and not to have occurred for every purpose of this
Indenture; but no such waiver shall extend to any subsequent or other Event of
Default or impair any right consequent thereto.

         Section 5.13 Undertaking for Costs. All parties to this Indenture
agree, and each Holder of any Note and each Beneficial Owner of any interest
therein by such Holder's or Beneficial Owner's acceptance thereof shall be
deemed to have agreed, that any court may in its discretion require, in any suit
for the enforcement of any right or remedy under this Indenture, or in any suit
against the Indenture Trustee for any action taken, suffered or omitted by it as
Indenture Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this Section 5.13 shall not apply to (a) any suit instituted by
the Indenture Trustee, (b) any suit instituted by any Noteholder, or group of
Noteholders, in each case holding in the aggregate more than 10% of the Note
Principal Balances of the Notes or (c) any suit instituted by any Noteholder for
the enforcement of the payment of principal of or interest on any Note on or
after the respective due dates expressed in such Note and in this Indenture.

         Section 5.14 Waiver of Stay or Extension Laws. The Issuer covenants (to
the extent that it may lawfully do so) that it will not at any time insist upon,
or plead or in any manner whatsoever, claim or take the benefit or advantage of,
any stay or extension law wherever enacted, now or at any time hereafter in
force, that may affect the covenants or the performance of this Indenture; and
the Issuer (to the extent that it may lawfully do so) hereby expressly waives
all

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<PAGE>

benefit or advantage of any such law, and covenants that it shall not hinder,
delay or impede the execution of any power herein granted to the Indenture
Trustee, but will suffer and permit the execution of every such power as though
no such law had been enacted.

         Section 5.15 Sale of Trust Estate.

         (a)      The power to effect any sale or other disposition (a "Sale")
of any portion of the Trust Estate pursuant to Section 5.04 hereof is expressly
subject to the provisions of Sections 5.05 and 5.11(b) hereof and this Section
5.15. The power to effect any such Sale shall not be exhausted by any one or
more Sales as to any portion of the Trust Estate remaining unsold, but shall
continue unimpaired until the entire Trust Estate shall have been sold or all
amounts payable on the Notes and under this Indenture shall have been paid. The
Indenture Trustee may from time to time postpone any public Sale by public
announcement made at the time and place of such Sale. The Indenture Trustee,
with the consent of the Insurer (which consent shall not be required if a
Insurer Default exists), hereby expressly waives its right to any amount fixed
by law as compensation for any Sale.

         (b)      The Indenture Trustee shall not in any private Sale sell the
Trust Estate, or any portion thereof, unless

         (1)      the Insurer, unless an Insurer Default exists, or the Holders
of all Notes, if no Insurer Default exists, consent to or direct the Indenture
Trustee to make, such Sale, or

         (2)      the proceeds of such Sale would be not less than the entire
amount which would be payable to the Noteholders under the Notes and the Insurer
in respect to amounts drawn under the Insurance Policy and any other amounts due
to the Insurer under the Insurance Agreement, in full payment thereof in
accordance with Section 5.02 hereof, on the Payment Date next succeeding the
date of such Sale, or

         (3)      the Indenture Trustee determines that the conditions for
retention of the Trust Estate set forth in Section 5.05 hereof cannot be
satisfied (in making any such determination, the Indenture Trustee may rely upon
an opinion of an Independent investment banking firm obtained and delivered as
provided in Section 5.05 hereof), and the Insurer consents to such Sale, or if a
Insurer Default exits, the Holders of Notes representing at least 100% of the
Note Principal Balances of the Notes consent to such Sale.

The purchase by the Indenture Trustee of all or any portion of the Trust Estate
at a private Sale shall not be deemed a Sale or other disposition thereof for
purposes of this Section 5.15(b).

         (c)      Unless the Insurer, or if a Insurer Default exists, the
Holders representing at least 66-2/3% of the Note Principal Balances of the
Notes have otherwise consented or directed the Indenture Trustee, at any public
Sale of all or any portion of the Trust Estate at which a minimum bid equal to
or greater than the amount described in paragraph (2) of subsection (b) of this
Section 5.15 has not been established by the Indenture Trustee and no Person
bids an amount equal to or greater than such amount, the Indenture Trustee, as
trustee for the benefit of the Holders of the Notes, shall bid an amount at
least $1.00 more than the highest other bid.

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<PAGE>

         (d)      In connection with a Sale of all or any portion of the Trust
Estate,

         (1)      any Holder or Holders of Notes may bid for and purchase the
property offered for sale, and upon compliance with the terms of sale may hold,
retain and possess and dispose of such property, without further accountability,
and may, in paying the purchase money therefor, deliver any Notes or claims for
interest thereon in lieu of cash up to the amount which shall, upon distribution
of the net proceeds of such sale, be payable thereon, and such Notes, in case
the amounts so payable thereon shall be less than the amount due thereon, shall
be returned to the Holders thereof after being appropriately stamped to show
such partial payment;

         (2)      the Indenture Trustee, with the consent of the Insurer so long
as no Insurer Default exists may bid for and acquire the property offered for
Sale in connection with any Sale thereof, and, subject to any requirements of,
and to the extent permitted by, applicable law in connection therewith, may
purchase all or any portion of the Trust Estate in a private sale, and, in lieu
of paying cash therefor, may make settlement for the purchase price by crediting
the gross Sale price against the sum of (A) the amount which would be
distributable to the Holders of the Notes and Holders of Certificates and
amounts distributable to the Insurer as a result of such Sale in accordance with
Section 5.04(b) hereof on the Payment Date next succeeding the date of such Sale
and (B) the expenses of the Sale and of any Proceedings in connection therewith
which are reimbursable to it, without being required to produce the Notes in
order to complete any such Sale or in order for the net Sale price to be
credited against such Notes, and any property so acquired by the Indenture
Trustee shall be held and dealt with by it in accordance with the provisions of
this Indenture;

         (3)      the Indenture Trustee shall execute and deliver an appropriate
instrument of conveyance, prepared by the Issuer and satisfactory to the
Indenture Trustee, transferring its interest in any portion of the Trust Estate
in connection with a Sale thereof;

         (4)      the Indenture Trustee is hereby irrevocably appointed the
agent and attorney-in-fact of the Issuer to transfer and convey its interest in
any portion of the Trust Estate in connection with a Sale thereof, and to take
all action necessary to effect such Sale; and

         (5)      no purchaser or transferee at such a Sale shall be bound to
ascertain the Indenture Trustee's authority, inquire into the satisfaction of
any conditions precedent or see to the application of any monies.

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         Section 5.16 Action on Notes. The Indenture Trustee's right to seek and
recover judgment on the Notes or under this Indenture shall not be affected by
the seeking, obtaining or application of any other relief under or with respect
to this Indenture. Neither the lien of this Indenture nor any rights or remedies
of the Indenture Trustee or the Noteholders shall be impaired by the recovery of
any judgment by the Indenture Trustee against the Issuer or by the levy of any
execution under such judgment upon any portion of the Trust Estate or upon any
of the assets of the Issuer. Any money or property collected by the Indenture
Trustee shall be applied in accordance with Section 5.04(b) hereof.

         Section 5.17 Performance and Enforcement of Certain Obligations.

         (a)      Promptly following a request from the Indenture Trustee to do
so, the Issuer in its capacity as holder of the Mortgage Loans and HELOC
Mortgage Loans, shall take all such lawful action as the Indenture Trustee or
the Insurer may request to cause the Issuer to compel or secure the performance
and observance by the Seller and the related Master Servicer, as applicable, of
each of their obligations to the Issuer under or in connection with the Mortgage
Loan Purchase Agreement, any Group I, Group II, Group III, Group IV, Group V,
Group VI, Group VII Subsequent Mortgage Purchase Agreement, the Servicing
Agreements, and to exercise any and all rights, remedies, powers and privileges
lawfully available to the Issuer under or in connection with the Mortgage Loan
Purchase Agreement, any Group I, Group II, Group III, Group IV, Group V, Group
VI, Group VII Subsequent Mortgage Purchase Agreement , the Servicing Agreements
to the extent and in the manner directed by the Indenture Trustee, as pledgee of
the Mortgage Loans, including the transmission of notices of default on the part
of the Seller or the related Master Servicer thereunder and the institution of
legal or administrative actions or proceedings to compel or secure performance
by the Seller or the related Master Servicer of each of their obligations under
the Mortgage Loan Purchase Agreement, any Group I, Group II, Group III, Group
IV, Group V, Group VI, Group VII Subsequent Mortgage Purchase Agreement and the
Servicing Agreements, as applicable.

         (b)      The Indenture Trustee, as pledgee of the Mortgage Loans,
subject to the rights of the Insurer under this Agreement and the HELOC
Servicing Agreement, may, and at the direction (which direction shall be in
writing) of the Insurer of if a Insurer Default exists, of the Holders of
66-2/3% of the Note Principal Balances of the Notes, shall exercise all rights,
remedies, powers, privileges and claims of the Issuer against the Seller or the
related Master Servicer under or in connection with the Mortgage Loan Purchase
Agreement, any Group I, Group II, Group III, Group IV, Group V, Group VI, Group
VII Subsequent Mortgage Purchase Agreement and the Servicing Agreements,
including the right or power to take any action to compel or secure performance
or observance by the Seller or the related Master Servicer, as the case may be,
of each of their obligations to the Issuer thereunder and to give any consent,
request, notice, direction, approval, extension or waiver under the Mortgage
Loan Purchase Agreement, any Group I, Group II, Group III, Group IV, Group V,
Group VI, Group VII Subsequent Mortgage Purchase Agreement and the Servicing
Agreements, as the case may be, and any right of the Issuer to take such action
shall not be suspended.

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                                   ARTICLE VI

                              The Indenture Trustee

         Section 6.01 Duties of Indenture Trustee.

         (a)      If an Event of Default has occurred and is continuing, the
Indenture Trustee shall exercise the rights and powers vested in it by this
Indenture and use the same degree of care and skill in their exercise as a
prudent Person would exercise or use under the circumstances in the conduct of
such Person's own affairs.

         (b)      Except during the continuance of an Event of Default:

                  (i)      the Indenture Trustee undertakes to perform such
         duties and only such duties as are specifically set forth in this
         Indenture and no implied covenants or obligations shall be read into
         this Indenture against the Indenture Trustee; and

                  (ii)     in the absence of bad faith on its part, the
         Indenture Trustee may conclusively rely, as to the truth of the
         statements and the correctness of the opinions expressed therein, upon
         certificates, reports, documents, Issuer Requests or other instruments
         or opinions furnished to the Indenture Trustee and conforming to the
         requirements of this Indenture; however, the Indenture Trustee shall
         examine the certificates, reports, documents, Issuer Requests or other
         instruments and opinions to determine whether or not they conform to
         the requirements of this Indenture (but need not confirm or investigate
         the accuracy of mathematical calculations or other facts stated
         therein).

         (c)      The Indenture Trustee may not be relieved from liability for
its own negligent action, its own negligent failure to act or its own willful
misconduct, except that:

                  (i)      this paragraph does not limit the effect of paragraph
         (b) of this Section 6.01;

                  (ii)     the Indenture Trustee shall not be liable for any
         error of judgment made in good faith by a Responsible Officer unless it
         is proved that the Indenture Trustee was negligent in ascertaining the
         pertinent facts; and

                  (iii)    the Indenture Trustee shall not be liable with
         respect to any action it takes or omits to take in good faith in
         accordance with a written direction received by it from Noteholders,
         the Certificateholders or from the Issuer, which they are entitled to
         give under the Basic Documents or (B) from the Insurer, which it is
         entitled to give under the Basic Documents.

                  (iv)     (d) The Indenture Trustee shall not be liable for
         interest on any money received by it except as set forth in the Basic
         Documents and as the Indenture Trustee may agree in writing with the
         Issuer.

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                  (v)      (e) Money held in trust by the Indenture Trustee need
         not be segregated from other trust funds except to the extent required
         by law or the terms of this Indenture or the Trust Agreement.

                  (vi)     (f) No provision of this Indenture or other Basic
         Document shall require the Indenture Trustee to expend or risk its own
         funds or otherwise incur financial liability in the performance of any
         of its duties hereunder or in the exercise of any of its rights or
         powers, if it shall have reasonable grounds to believe that repayment
         of such funds or adequate indemnity against such risk or liability is
         not reasonably assured to it.

                  (vii)    (g) Every provision of this Indenture or other Basic
         Document relating to the conduct or affecting the liability of or
         affording protection to the Indenture Trustee shall be subject to the
         provisions of this Section and to the provisions of the TIA.

                  (viii)   (h) The Indenture Trustee shall execute and act in
         accordance with Sections 6.03 and 6.04 of each Servicing Agreement and
         shall act as successor to the related Master Servicer or appoint a
         successor Master Servicer in accordance with Section 6.02 of the
         Servicing Agreement; in no event however, shall the Indenture Trustee
         have any liability for any act or omission of the any Master Servicer,
         any Subservicer, the Owner Trustee or the Custodian. (ix) (i) The
         Indenture Trustee shall not be deemed to have notice or knowledge of
         any Default or Event of Default, any Servicer Default, Insurer Default
         or other event unless a Responsible Officer of the Indenture Trustee
         has actual knowledge thereof or unless written notice of any such event
         that is in fact an Event of Default, Default, Servicer Default, Insurer
         Default or other event is received by the Indenture Trustee at its
         Corporate Trust Office and such notice references the Notes or
         Certificates generally, the Issuer, the Trust Estate or this Indenture.

         Section 6.02 Rights of Indenture Trustee.

         (a)      The Indenture Trustee may rely conclusively on and shall be
protected in acting or refraining from acting upon any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent,
order, bond, debenture, note, other evidence of indebtedness or other paper or
document believed by it to be genuine and to have been signed or presented by
the proper Person, party or parties. The Indenture Trustee need not investigate
any fact or matter stated in any such document.

         (b)      Before the Indenture Trustee acts or refrains from acting, it
may require an Officer's Certificate or an Opinion of Counsel. The Indenture
Trustee shall not be liable for any action it takes or omits to take in good
faith in reliance on and in accordance with an Officer's Certificate or Opinion
of Counsel.

         (c)      Subject to the provisions of Section 6.01(c), the Indenture
Trustee shall not be liable for any action it takes or omits to take in good
faith which it believes to be authorized or within its rights or powers.

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         (d)      The Indenture Trustee may consult with counsel of its
selection, and the written advice or Opinion of Counsel with respect to legal
matters relating to this Indenture and the Notes or any Basic Document shall be
full and complete authorization and protection from liability in respect to any
action taken, omitted or suffered by it hereunder in good faith and in
accordance with the written advice or Opinion of such counsel.

         (e)      For the limited purpose of effecting any action to be
undertaken by the Indenture Trustee, but not specifically as a duty of the
Indenture Trustee in the Indenture, the Indenture Trustee may execute any of the
trusts or powers hereunder or perform any duties hereunder, either directly or
by or through agents, attorneys, custodians or nominees appointed with due care,
and shall not be responsible for any willful misconduct or negligence on the
part of any agent, attorney, custodian or nominee so appointed.

         (f)      The Indenture Trustee or its Affiliates are permitted to
receive additional compensation that could be deemed to be in the Indenture
Trustee's economic self-interest for (i) serving as investment adviser,
administrator, shareholder servicing agent, custodian or sub-custodian with
respect to certain of the Eligible Investments, (ii) using Affiliates to effect
transactions in certain Eligible Investments and (iii) effecting transactions in
certain Eligible Investments. Such compensation shall not be considered an
amount, or effect a reduction in any amount, that is reimbursable or payable to
the Indenture Trustee (i) as part of the Indenture Trustee Fee, (ii) pursuant to
Sections 5.04(b), 6.07, 8.02(c), 8.05(a) or 8.07 hereunder or (iii) out of
Available Funds.

         (g)      In order to comply with its duties under the Uniting and
Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism Act of 2001 ("U.S.A. Patriot Act"), the Indenture Trustee
shall obtain and verify certain information and documentation from the other
party to this Indenture, including, but not limited to, such party's name,
address, and other identifying information.

         (h)      Whenever in the administration of this Indenture the Indenture
Trustee shall deem it desirable that a matter be proved or established prior to
taking, suffering or omitting any action hereunder, the Indenture Trustee
(unless other evidence be herein specifically prescribed) may, in the absence of
bad faith on its part, conclusively rely upon an Officer's Certificate of the
Issuer.

         (i)      The rights, privileges, protections, immunities and benefits
given to the Indenture Trustee, including, without limitation, its right to be
indemnified, are extended to, and shall be enforceable by, the Indenture Trustee
in each of its capacities hereunder, and to each custodian employed to act
hereunder.

         (j)      The Indenture Trustee may request that the Issuer deliver an
Officer's Certificate setting forth the names of individuals and/or titles of
officers authorized at such time to take specified actions pursuant to this
Indenture, which Officer's Certificate may be signed by any person authorized to
sign an Officer's Certificate, including any person specified as so authorized
in any such certificate previously delivered and not superseded.

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         Section 6.03 Individual Rights of Indenture Trustee. The Indenture
Trustee in its individual or any other capacity may become the owner or pledgee
of Notes and may otherwise deal with the Issuer or its Affiliates with the same
rights it would have if it were not Indenture Trustee, subject to the
requirements of the Trust Indenture Act. Any Note Registrar, co-registrar or
co-paying agent may do the same with like rights. However, the Indenture Trustee
must comply with Sections 6.11 and 6.12 hereof.

         Section 6.04 Indenture Trustee's Disclaimer. The Indenture Trustee
shall not be responsible for and makes no representation as to the validity or
adequacy of this Indenture, the Notes or any other Basic Document, it shall not
be accountable for the Issuer's use of the proceeds from the Notes, and it shall
not be responsible for any statement of the Issuer in the Indenture or in any
document issued in connection with the sale of the Notes or in the Notes other
than the Indenture Trustee's certificate of authentication.

         Section 6.05 Notice of Event of Default. Subject to Section 5.01, the
Indenture Trustee shall promptly mail to each Noteholder and the Insurer notice
of the Event of Default after it is known to a Responsible Officer of the
Indenture Trustee, unless such Event of Default shall have been waived or cured.
Except in the case of an Event of Default in payment of principal of or interest
on any Note, the Indenture Trustee may withhold the notice if and so long as a
committee of its Responsible Officers in good faith determines that withholding
the notice is in the best interests of Noteholders.

         Section 6.06 Reports by Indenture Trustee to Holders and Tax
Administration. The Indenture Trustee shall deliver to each Noteholder such
information as may be required to enable such holder to prepare its federal and
state income tax returns.

         The Indenture Trustee shall prepare and file (or cause to be prepared
and filed), on behalf of the Owner Trustee, all tax returns (if any) and
information reports, tax elections and such annual or other reports of the
Issuer as are necessary for preparation of tax returns and information reports
as provided in Section 5.03 of the Trust Agreement, including without limitation
Form 1099. All tax returns and information reports shall be signed by the Owner
Trustee as provided in Section 5.03 of the Trust Agreement.

         Section 6.07 Compensation and Indemnity. The Issuer shall pay to the
Indenture Trustee on each Payment Date reasonable compensation for its services.
On each Payment Date the Indenture Trustee shall be entitled to withdraw from
the Payment Account, the Indenture Trustee Fee for such Payment Date in
accordance with Section 3.07 of the related Servicing Agreement. The Indenture
Trustee's compensation shall not be limited by any law on compensation of a
trustee of an express trust. The Issuer shall reimburse the Indenture Trustee as
provided in Section 8.20(c) for all reasonable out-of-pocket expenses incurred
or made by it, including costs of collection, in addition to compensation for
its services. Such expenses shall include reasonable compensation and expenses,
disbursements and advances of the Indenture Trustee's agents, counsel,
accountants and experts. The Issuer shall indemnify the Indenture Trustee as
provided in Section 8.20(c) and the Insurer against any and all loss, liability,
claims, damage, costs or expense (including attorneys' fees) incurred by it in
connection with the administration of this Trust and the performance of its
duties hereunder and under the other Basic

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Documents. The Indenture Trustee shall notify the Issuer promptly of any claim
for which it may seek indemnity. Failure by the Indenture Trustee or the Insurer
to so notify the Issuer shall not relieve the Issuer of its obligations
hereunder. The Issuer shall defend any such claim, and the Indenture Trustee may
have separate counsel and the Issuer shall pay the fees and expenses of such
counsel. The Issuer is not obligated to reimburse any expense or indemnify
against any loss, liability or expense incurred by the Indenture Trustee or the
Insurer or any of its agents, counsel, accountants or experts through the
Indenture Trustee's or such agent's, counsel's, accountant's or expert's own
willful misconduct, negligence or bad faith.

         The Issuer's payment and indemnity obligations to the Indenture Trustee
pursuant to this Section 6.07 shall survive the discharge of this Indenture and
the termination or resignation of the Indenture Trustee. If the Indenture
Trustee incurs expenses after the occurrence of an Event of Default with respect
to the Issuer, the expenses are intended to constitute expenses of
administration under Title 11 of the United States Code or any other applicable
federal or state bankruptcy, insolvency or similar law.

         Section 6.08 Replacement of Indenture Trustee. No resignation or
removal of the Indenture Trustee and no appointment of a successor Indenture
Trustee shall become effective until the acceptance of appointment by the
successor Indenture Trustee pursuant to this Section 6.08. The Indenture Trustee
may resign at any time by so notifying the Issuer and the Insurer. The Insurer
or Holders of a majority of Note Principal Balances of each Class of Notes with
consent of the Insurer may remove the Indenture Trustee by so notifying the
Indenture Trustee and may appoint a successor Indenture Trustee. The Issuer,
with the consent of the Insurer, shall remove the Indenture Trustee if:

                  (i)      the Indenture Trustee fails to comply with or qualify
         pursuant to the provisions of Section 6.11 hereof;

                  (ii)     the Indenture Trustee is adjudged a bankrupt or
         insolvent;

                  (iii)    a receiver or other public officer takes charge of
         the Indenture Trustee or its property; or

                  (iv)     the Indenture Trustee otherwise becomes incapable of
         acting.

                  (v)      If the Indenture Trustee resigns or is removed or if
         a vacancy exists in the office of the Indenture Trustee for any reason
         (the Indenture Trustee in such event being referred to herein as the
         retiring Indenture Trustee), the Issuer shall promptly appoint a
         successor Indenture Trustee acceptable to the Insurer.

         A successor Indenture Trustee shall deliver a written acceptance of its
appointment to the retiring Indenture Trustee and to the Issuer. Thereupon, the
resignation or removal of the retiring Indenture Trustee shall become effective,
and the successor Indenture Trustee shall have all the rights, powers and duties
of the Indenture Trustee under this Indenture. The successor Indenture Trustee
shall mail a notice of its succession to Noteholders. The retiring Indenture
Trustee shall promptly transfer all property held by it as Indenture Trustee to
the successor Indenture Trustee.

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         If a successor Indenture Trustee does not take office within 60 days
after the retiring Indenture Trustee resigns or is removed, the retiring
Indenture Trustee, the Issuer or the Holders of a majority of Note Principal
Balances of the Notes may petition any court of competent jurisdiction for the
appointment of a successor Indenture Trustee.

         Notwithstanding the replacement of the Indenture Trustee pursuant to
this Section, the Issuer's obligations under Section 6.07 shall continue for the
benefit of the retiring Indenture Trustee.

         Section 6.09 Successor Indenture Trustee by Merger. If the Indenture
Trustee consolidates with, merges or converts into, or transfers all or
substantially all of its corporate trust business or assets to, another
corporation, company or banking association, the resulting, surviving or
transferee corporation, without any further act, shall be the successor
Indenture Trustee; provided, that such corporation, company or banking
association shall be otherwise qualified and eligible under Section 6.11 hereof.
The Indenture Trustee shall provide the Rating Agencies, the Insurer and the
Issuer with prior written notice, and the Noteholders with prompt written
notice, of any such transaction.

         If at the time such successor or successors by merger, conversion or
consolidation to the Indenture Trustee shall succeed to the trusts created by
this Indenture and any of the Notes shall have been authenticated but not
delivered, any such successor to the Indenture Trustee may adopt the certificate
of authentication of any predecessor trustee and deliver such Notes so
authenticated; and if at that time any of the Notes shall not have been
authenticated, any successor to the Indenture Trustee may authenticate such
Notes either in the name of any predecessor hereunder or in the name of the
successor to the Indenture Trustee; and in all such cases such certificates
shall have the full force which is in the Notes or in this Indenture provided
that the certificate of the Indenture Trustee shall have.

         Section 6.10 Appointment of Co-Indenture Trustee or Separate Indenture
Trustee.

         (a)      Notwithstanding any other provisions of this Indenture, at any
time, for the purpose of meeting any legal requirement of any jurisdiction in
which any part of the Trust Estate may at the time be located, the Indenture
Trustee, with the consent of the Insurer, shall have the power and may execute
and deliver all instruments to appoint one or more Persons to act as a
co-trustee or co-trustees, or separate trustee or separate trustees, of all or
any part of the Trust Estate, and to vest in such Person or Persons, in such
capacity and for the benefit of the Noteholders, such title to the Trust Estate,
or any part hereof, and, subject to the other provisions of this Section, such
powers, duties, obligations, rights and trusts as the Indenture Trustee may
consider necessary or desirable. No co-trustee or separate trustee hereunder
shall be required to meet the terms of eligibility as a successor trustee under
Section 6.11 hereof.

         (b)      Every separate trustee and co-trustee shall, to the extent
permitted by law, be appointed and act subject to the following provisions and
conditions

                  (i)      all rights, powers, duties and obligations conferred
         or imposed upon the Indenture Trustee shall be conferred or imposed
         upon and exercised or performed by the

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         Indenture Trustee and such separate trustee or co-trustee jointly (it
         being understood that such separate trustee or co-trustee is not
         authorized to act separately without the Indenture Trustee joining in
         such act), except to the extent that under any law of any jurisdiction
         in which any particular act or acts are to be performed the Indenture
         Trustee shall be incompetent or unqualified to perform such act or
         acts, in which event such rights, powers, duties and obligations
         (including the holding of title to the Trust Estate or any portion
         thereof in any such jurisdiction) shall be exercised and performed
         singly by such separate trustee or co-trustee, but solely at the
         direction of the Indenture Trustee;

                  (ii)     no trustee hereunder shall be personally liable by
         reason of any act or omission of any other trustee hereunder; and

                  (iii)    the Indenture Trustee may at any time accept the
         resignation of or remove any separate trustee or co-trustee.

                  (iv)     Any notice, request or other writing given to the
         Indenture Trustee shall be deemed to have been given to each of the
         then separate trustees and co-trustees, as effectively as if given to
         each of them. Every instrument appointing any separate trustee or
         co-trustee shall refer to this Indenture and the conditions of this
         Article VI. Each separate trustee and co-trustee, upon its acceptance
         of the trusts conferred, shall be vested with the estates or property
         specified in its instrument of appointment, either jointly with the
         Indenture Trustee or separately, as may be provided therein, subject to
         all the provisions of this Indenture, specifically including every
         provision of this Indenture relating to the conduct of, affecting the
         liability of, or affording protection to, the Indenture Trustee. Every
         such instrument shall be filed with the Indenture Trustee.

                  (v)      Any separate trustee or co-trustee may at any time
         constitute the Indenture Trustee, its agent or attorney-in-fact with
         full power and authority, to the extent not prohibited by law, to do
         any lawful act under or in respect of this Indenture on its behalf and
         in its name. If any separate trustee or co-trustee shall die, become
         incapable of acting, resign or be removed, all of its estates,
         properties, rights, remedies and trusts shall vest in and be exercised
         by the Indenture Trustee, to the extent permitted by law, without the
         appointment of a new or successor trustee.

         Section 6.11 Eligibility; Disqualification. The Indenture Trustee shall
at all times satisfy the requirements of TIA ss. 310(a). The Indenture Trustee
shall have a combined capital and surplus of at least $50,000,000 as set forth
in its most recent published annual report of condition and it or its parent
shall have a long-term debt rating of Baa3 or better by Moody's and BBB or
better by Standard & Poor's. The Indenture Trustee shall comply with TIA ss.
310(b), including the optional provision permitted by the second sentence of TIA
ss. 310(b)(9); provided, however, that there shall be excluded from the
operation of TIA ss. 310(b)(1) any indenture or indentures under which other
securities of the Issuer are outstanding if the requirements for such exclusion
set forth in TIA ss. 310(b)(1) are met.

         Section 6.12 Preferential Collection of Claims Against Issuer. The
Indenture Trustee shall comply with TIA ss. 311(a), excluding any creditor
relationship listed in TIA ss. 311(b). An

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Indenture Trustee who has resigned or been removed shall be subject to TIA ss.
311(a) to the extent indicated.

         Section 6.13 Representations and Warranties. The Indenture Trustee
hereby represents that:

         (a)      The Indenture Trustee is duly organized and validly existing
as a banking corporation in good standing under the laws of the State of New
York with power and authority to own its properties and to conduct its business
as such properties are currently owned and such business is presently conducted;

         (b)      The Indenture Trustee has the power and authority to execute
and deliver this Indenture and to carry out its terms; and the execution,
delivery and performance of this Indenture have been duly authorized by the
Indenture Trustee by all necessary corporate action;

         (c)      The consummation of the transactions contemplated by this
Indenture and the fulfillment of the terms hereof do not conflict with, result
in any breach of any of the terms and provisions of, or constitute (with or
without notice or lapse of time) a default under, the articles of incorporation
or bylaws of the Indenture Trustee or any agreement or other instrument to which
the Indenture Trustee is a party or by which it is bound; and

         (d)      To the Indenture Trustee's knowledge, there are no proceedings
or investigations pending or threatened before any court, regulatory body,
administrative agency or other governmental instrumentality having jurisdiction
over the Indenture Trustee or its properties: (A) asserting the invalidity of
this Indenture, (B) seeking to prevent the consummation of any of the
transactions contemplated by this Indenture or (C) seeking any determination or
ruling that might materially and adversely affect the performance by the
Indenture Trustee of its obligations under, or the validity or enforceability
of, this Indenture.

         Section 6.14 Directions to Indenture Trustee. The Indenture Trustee is
hereby directed:

         (a)      to accept the pledge of the Mortgage Loans and hold the assets
of the Trust Estate in trust for the Noteholders;

         (b)      to authenticate and deliver the Notes substantially in the
form prescribed by Exhibits A-1, A-2, A-3 and A-4 to this Indenture in
accordance with the terms of this Indenture; and

         (c)      to take all other actions as shall be required to be taken by
the terms of this Indenture.

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         Section 6.15 The Agents. The provisions of this Indenture relating to
the limitations of the Indenture Trustee's liability and to its indemnity,
rights and protections shall inure also to the Paying Agent and Note Registrar.

         Section 6.16 Administrative Duties.

         (a)      The Indenture Trustee agrees to perform all of the duties of
the Issuer under the Depository Agreement. In addition to its duties performed
under the Depository Agreement, the Indenture Trustee shall take all appropriate
action that is the duty of the Issuer to take with respect to the following
matters under the Trust Agreement, the Mortgage Loan Purchase Agreement and the
Indenture (references are to sections of the Indenture):

                  (i)      The Indenture Trustee shall notify the Owner Trustee
         if the Indenture Trustee obtains actual knowledge or written notice
         that any withholding tax is imposed on the Trust's payments (or
         allocations of income) to a Certificateholder;

                  (ii)     the duty to cause the Note Register to be kept if the
         Issuer assumes the duties of Note Registrar, and to give the Indenture
         Trustee notice of any appointment of a new Note Registrar and the
         location, or change in location, of the Note Register (Section 4.02);

                  (iii)    causing the preparation of the Notes for execution by
         the Owner Trustee upon the registration of any transfer or exchange of
         the Notes or execution of a supplemental indenture (Sections 4.02, 4.03
         and 9.06);

                  (iv)     if requested, causing the preparation of an Issuer
         Request and related documents for authentication of the Notes,
         executing such Issuer Request on behalf of the Issuer and causing
         delivery of the same to the Indenture Trustee (Sections 4.02, 4.03 and
         4.08);

                  (v)      causing the preparation of Definitive Notes in
         accordance with the instructions of any Clearing Agency (including the
         preparation of any temporary notes) (Section 4.14);

                  (vi)     the maintenance of an office for registration of
         transfer or exchange of Notes (Section 3.02);

                  (vii)    the preparation of an Issuer Request required to
         appoint a Paying Agent, the preparation of written notice to the
         Indenture Trustee and the duty to cause newly appointed Paying Agents,
         if any, to execute and deliver to the Indenture Trustee the instrument
         specified in the Indenture regarding funds held in trust (Section
         3.03);

                  (viii)   notifying the Paying Agent to pay to the Indenture
         Trustee all sums held in trust by the Paying Agent (Section 3.03);

                  (ix)     the execution of all supplements, amendments,
         financing statements, continuation statements, instruments of further
         assurance and other instruments necessary

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         to protect the Collateral prepared by the Issuer and delivered to the
         Indenture Trustee for execution (Section 3.06);

                  (x)      the notification to the Owner Trustee of the Issuer's
         non-compliance with its negative covenants or restricted payment
         covenants upon actual knowledge by the Indenture Trustee of such
         non-compliance (Sections 3.09 and 3.25);

                  (xi)     the furnishing of the Indenture Trustee with the
         names and addresses of Holders of Notes during any period when the
         Indenture Trustee is not the Note Registrar (Section 7.01); and

                  (xii)    if necessary, the mailing to the Noteholders of
         notices with respect to their consent to any supplemental indentures
         (Section 9.02).

         (b)      In carrying out the foregoing duties or any of its other
obligations under this Indenture, the Indenture Trustee may enter into
transactions with or otherwise deal with any of its Affiliates; provided,
however, that the terms of any such transactions or dealings shall be in
accordance with any directions received from the Issuer and shall be, in the
Indenture Trustee's opinion, no less favorable to the Issuer than would be
available from unaffiliated parties.

         (c)      The Indenture Trustee in its capacity as the Certificate
Registrar, and upon a request received from the Owner Trustee, shall promptly
notify the Certificateholders of (i) any change in the Corporate Trust Office of
the Owner Trustee, (ii) any amendment to the Trust Agreement requiring notice be
given to the Certificateholders and (iii) any other notice required to be given
to the Certificateholders by the Owner Trustee under the Trust Agreement.

         (d)      With respect to matters that in the reasonable judgment of the
Indenture Trustee are non-ministerial, the Indenture Trustee shall not take any
action pursuant to this Article VII unless within a reasonable time before the
taking of such action, the Indenture Trustee shall have notified the Owner
Trustee, the Insurer and the Rating Agencies of the proposed action and the
Rating Agencies shall have notified the Issuer in writing that such transaction
shall not cause their respective ratings of the Notes, to be reduced, qualified,
suspended or withdrawn and the Owner Trustee shall not have withheld consent or
provided an alternative direction. For the purpose of the preceding sentence,
"non-ministerial matters" shall include:

                  (i)      the amendment of or any supplement to the Indenture;

                  (ii)     the initiation of any claim or lawsuit by the Issuer
         and the compromise of any action, claim or lawsuit brought by or
         against the Issuer (other than in connection with the collection of the
         Mortgage Loans);

                  (iii)    the amendment, change or modification of this
         Indenture or any of the other Basic Documents;

                  (iv)     the appointment of successor Certificate Paying
         Agents and successor Indenture Trustees pursuant to the Indenture or
         the appointment of successor Master

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         Servicers or the consent to the assignment by the Certificate
         Registrar, Paying Agent or Indenture Trustee of its obligations under
         the Indenture; and

                  (v)      the removal of the Indenture Trustee.

         Section 6.17 Records. The Indenture Trustee shall maintain appropriate
books of account and records relating to services performed under this
Indenture, which books of account and records shall be accessible for inspection
by the Issuer at any time during normal business hours.

         Section 6.18 Additional Information to be Furnished. The Indenture
Trustee shall furnish to the Issuer or the Insurer from time to time such
additional information regarding the Mortgage Loans, the HELOC Mortgage Loans
and the Notes as the Issuer or the Insurer shall reasonably request.

         Section 6.19 Execution of Derivative Contracts and other Documents. The
Issuer hereby directs the Indenture Trustee to enter into and execute the Swap
Agreements, the Corridor Contracts and the Cap Contracts and make all
representations and warranties contained therein on behalf of the Trust. The
Issuer hereby directs the Indenture Trustee to enter into and execute the
Servicing Agreements and any related document. The Indenture Trustee hereby
acknowledges receipt by it of the Swap Agreements, the Corridor Contracts and
the Cap Contracts. Upon receipt thereof from the Derivative Contract
Counterparty under the Swap Agreements, the Corridor Contracts and the Cap
Contracts, the Indenture Trustee shall deposit into the Payment Account an
amount equal to all amounts actually received under the Swap Agreements, the
Corridor Contracts and the Cap Contracts and not previously deposited into the
Payment Account.

         Section 6.20 Indenture Trustee's Application For Instructions From the
Issuer.

         Any application by the Indenture Trustee for written instructions from
the Issuer may, at the option of the Indenture Trustee, set forth in writing any
action proposed to be taken or omitted by the Indenture Trustee under this
Indenture and the date on and/or after which such action shall be taken or such
omission shall be effective. The Indenture Trustee shall not be liable for any
action taken by, or omission of, the Indenture Trustee in accordance with a
proposal included in such application on or after the date specified in such
application (which date shall not be less than three Business Days after the
date any officer of the Issuer actually receives such application, unless any
such officer shall have consented in writing to any earlier date) unless prior
to taking any such action (or the effective date in the case of an omission),
the Indenture Trustee shall have received written instructions in response to
such application specifying the action to be taken or omitted.

         Section 6.21 Limitation of Liability.

         It is understood by the parties hereto other than the The Bank of New
York (the "Bank") that the sole recourse of the parties hereto other than the
Bank in respect of the obligations of the Trust hereunder and under the other
documents contemplated thereby and related thereto to

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which it is a party shall be to the parties hereto other than the Bank. In
addition, the Bank is entering into this Indenture and the other documents
contemplated thereby and related thereto to which it is a party solely in its
capacity as Indenture Trustee under the Indenture and not in its individual
capacity (except as expressly stated herein) and in no case shall the Bank (or
any Person acting as successor Indenture Trustee under the Indenture) be
personally liable for or on account of any of the statements, representations,
warranties, covenants or obligations stated to be those of the Issuer hereunder
or thereunder, all such liability, if any, being expressly waived by the parties
hereto and any person claiming by, through or under such party, provided,
however, that the Bank (or any such successor Indenture Trustee) shall be
personally liable hereunder and thereunder for its own negligence or willful
misconduct or for its material breach of its covenants, representations and
warranties contained herein or therein, to the extent expressly covenanted or
made in its individual capacity. In no event shall the Indenture Trustee, in its
capacity as Paying Agent, Note Registrar or in any other capacity hereunder, be
liable under or in connection with this Indenture for indirect, special,
incidental, punitive or consequential losses or damages of any kind whatsoever,
including but not limited to lost profits, whether or not foreseeable, even if
the Indenture Trustee has been advised of the possibility thereof and regardless
of the form of action in which such damages are sought. The provisions of this
section shall survive the termination of the Indenture and the resignation or
removal of the Indenture Trustee.

         Section 6.22 Assignment of Rights, Not Assumption of Duties.

         Anything herein contained to the contrary notwithstanding, (a) the
Issuer shall remain liable under this Indenture and each Basic Document to which
it is a party to the extent set forth therein to perform all of its duties and
obligations thereunder to the same extent as if this Indenture had not been
executed, (b) the exercise by the Indenture Trustee, the Insurer or any Holder
of any of their rights, remedies or powers hereunder shall not release the
Issuer from any of its duties or obligations under each of such documents to
which it is a party and (c) none of any Holder, the Insurer nor the Indenture
Trustee shall have any obligation or liability under any of such documents to
which the Issuer is a party by reason of or arising out of this Indenture, nor
shall any Holder, the Insurer or the Indenture Trustee be obligated to perform
any of the obligations or duties of the Issuer thereunder or, except as
expressly provided herein with respect to the Indenture Trustee, to take any
action to collect or enforce any claim for payment assigned hereunder or
otherwise.

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                                   ARTICLE VII

                         Noteholders' Lists and Reports

         Section 7.01 Issuer To Furnish Indenture Trustee Names and Addresses of
Noteholders. The Issuer will furnish or cause to be furnished to the Indenture
Trustee (a) not more than five days after each Record Date, a list, in such form
as the Indenture Trustee may reasonably require, of the names and addresses of
the Holders of Notes as of such Record Date, and (b) at such other times as the
Indenture Trustee may request in writing, within 30 days after receipt by the
Issuer of any such request, a list of similar form and content as of a date not
more than 10 days prior to the time such list is furnished; provided, however,
that so long as the Indenture Trustee is the Note Registrar, no such list shall
be required to be furnished to the Indenture Trustee.

         Section 7.02 Preservation of Information; Communications to
Noteholders.

         (a)      The Indenture Trustee shall preserve, in as current a form as
is reasonably practicable, the names and addresses of the Holders of Notes
contained in the most recent list furnished to the Indenture Trustee as provided
in Section 7.01 hereof and the names and addresses of Holders of Notes received
by the Indenture Trustee in its capacity as Note Registrar. The Indenture
Trustee may destroy any list furnished to it as provided in such Section 7.01
upon receipt of a new list so furnished.

         (b)      Noteholders may communicate pursuant to TIA ss. 312(b) with
other Noteholders with respect to their rights under this Indenture or under the
Notes.

         (c)      The Issuer, the Indenture Trustee and the Note Registrar shall
have the protection of TIA ss. 312(c).

         Section 7.03 Reports of Issuer. (a) Subject to Section 4.06 of the
Servicing Agreement,

         (a)      The Indenture Trustee shall file with the Commission on behalf
of the Issuer, with a copy to the Issuer and the Insurer within 15 days before
the Issuer is required to file the same with the Commission, the annual reports
and the information, documents and other reports (or such portions of any of the
foregoing as the Commission may from time to time by rules and regulations
prescribe) that the Issuer may be required to file with the Commission pursuant
to Sections 13 or 15(d) of the Exchange Act;

         (b)      The Indenture Trustee shall file with the Commission, on
behalf of the Issuer, in accordance with rules and regulations prescribed from
time to time by the Commission, such additional information, documents and
reports with respect to compliance by the Issuer with the conditions and
covenants of this Indenture as may be required from time to time by such rules
and regulations; and

         (c)      The Indenture Trustee shall supply (and the Indenture Trustee
shall transmit by mail to all Noteholders described in TIA ss. 313(c)) such
summaries of any information, documents

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and reports required to be filed by the Issuer pursuant to clauses (i) and (ii)
of this Section 7.03(a) and by rules and regulations prescribed from time to
time by the Commission.

         (d)      Unless the Issuer otherwise determines, the fiscal year of the
Issuer shall end on December 31 of each year.

         Section 7.04 Reports by Indenture Trustee. If required by TIA ss.
313(a), within 60 days after each January 30 beginning with March 31, 2005, the
Indenture Trustee shall mail to each Noteholder as required by TIA ss. 313(c) a
brief report dated as of such date that complies with TIA ss. 313(a). The
Indenture Trustee also shall comply with TIA ss. 313(b).

         A copy of each report at the time of its mailing to Noteholders shall
be filed by the Indenture Trustee with the Commission via EDGAR and each stock
exchange, if any, on which the Notes are listed. The Issuer shall notify the
Indenture Trustee if and when the Notes are listed on any stock exchange.

         Section 7.05 Statements to Noteholders. (a) With respect to each
Payment Date, the Indenture Trustee shall make available via the Indenture
Trustee's website, initially located at www.bnyinvestorreporting.com, to each
Noteholder and each Certificateholder, the Insurer, each Derivative Contract
Counterparty (or deliver at the recipient's option), the Depositor, the Owner
Trustee, the Certificate Paying Agent and each Rating Agency, a statement
setting forth the following information as to the Notes, to the extent
applicable:

                  (i)      the aggregate amount of collections with respect to
         the Mortgage Loans;

                  (ii)     the Group I Available Funds, Group II Available
         Funds, Group III Available Funds, Group IV Available Funds, Group V
         Available Funds, Group VI Available Funds, and Group VI Available Funds
         and Net Monthly Excess Cash Flow, with respect to the Group I, Group
         II, Group III, Group IV, Group V, Group VI and Group VII Loans, payable
         to each Class of Noteholders for such Payment Date, the Basis Risk
         Shortfall Carry-Forward Amount and Net WAC Shortfall Carry-Forward
         Amount on each Class of Notes for such Payment Date and the aggregate
         Unpaid Interest Shortfall on each Class of Notes for such Payment Date;

                  (iii)    (a) the amount of such distribution to each Class of
         Notes applied to reduce the Note Principal Balance thereof, and (b) the
         aggregate amount included therein representing Principal Prepayments;

                  (iv)     the Insured Payment, if any, paid by the Insurer
         under the Insurance Policy for such Payment Date and the aggregate
         Insured Payments for all prior Payment Dates paid by the Insurer under
         the Insurance Policy and not yet reimbursed;

                  (v)      the amount of such distribution to Holders of each
         Class of Notes allocable to interest;

                  (vi)     the amount of any distribution to the Certificates;

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                  (vii)    if the distribution to the Holders of any Class of
         Notes is less than the full amount that would be distributable to such
         Holders if there were sufficient funds available therefor, the amount
         of the shortfall;

                  (viii)   the number and the aggregate Stated Principal Balance
         of the Mortgage Loans as of the end of the related Due Period,
         determined in the aggregate and separately for Loan Group I, Loan Group
         II, Loan Group III, Loan Group IV, Group V, Group VI and Loan Group
         VII;

                  (ix)     the aggregate Note Principal Balance of each Class of
         Notes, after giving effect to the amounts distributed on such Payment
         Date, separately identifying any reduction thereof due to Realized
         Losses and the aggregate Note Principal Balance of all of the Notes
         after giving effect to the distribution of principal on such Payment
         Date;

                  (x)      the number and aggregate Stated Principal Balances of
         Mortgage Loans (a) as to which the Monthly Payment is delinquent for
         31-60 days, 61-90 days, 91 or more days, respectively, (b) in
         foreclosure and (c) that have become REO Property, in each case as of
         the end of the preceding calendar month, determined in the aggregate
         and separately for Loan Group I, Loan Group II, Loan Group III, Loan
         Group IV, Group V, Group VI and Loan Group VII;

                  (xi)     the amount of payments from the Cap Contracts, the
         Corridor Contracts, the Group II Net Swap Agreement Payment Amount and
         the Group III Swap Agreement Payment Amount;

                  (xii)    the Overcollateralization Increase Amount with
         respect to each Loan Group, Overcollateralization Target Amount and
         Overcollateralized Amount, if any, in each case as the end of the
         related Payment Date, in each case as determined separately for each
         Loan Group;

                  (xiii)   the amount of any Advances and Compensating Interest
         payments;

                  (xiv)    the aggregate Realized Losses with respect to the
         related Payment Date and cumulative Realized Losses since the Closing
         Date;

                  (xv)     the number and aggregate Stated Principal Balance of
         Mortgage Loans repurchased pursuant to the Mortgage Loan Purchase
         Agreement for the related Payment Date and cumulatively since the
         Closing Date determined in the aggregate and separately for Loan Group
         I, Loan Group II, Loan Group III, Loan Group IV and Loan Group V;

                  (xvi)    the book value of any REO Property;

                  (xvii)   the amount of any Prepayment Interest Shortfalls or
         Relief Act Shortfalls for such Payment Date;

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                  (xviii)  the aggregate Stated Principal Balance of Mortgage
         Loans purchased pursuant to Section 3.18 of the Servicing Agreement for
         the related Payment Date and cumulatively since the Closing Date;

                  (xix)    the amounts withdrawn from the related Group I, Group
         II, Group II, Group IV, Group V, Group VI and Group VII Pre-Funding
         Account and used to make payments to Noteholders on that Payment Date,
         the amount remaining on deposit following such Payment Date, and the
         amount withdrawn from the related Group I, Group II, Group III, Group
         IV, Group V, Group VI and Group VII Pre-Funding Account used to buy
         certain Group I, Group II, Group III, Group IV, Group V, Group VI and
         Group VII Subsequent Mortgage Loans prior to such Payment Date;

                  (xx)     the Floating Allocation Percentage of Loan Group VII;

                  (xxi)    the Investor Interest Collections of Loan Group VII
         for such Payment Date;

                  (xxii)   the HELOC Master Servicing Fee and RMBS Master
         Servicing Fee for such Payment Date;

                  (xxiii)  if a Stepdown Date has occurred on the related Loan
         Group;

                  (xxiv)   the Charged-Off Amount for the related Payment Date
         and the cumulative Charged-Off Amount since the Closing Date;

                  (xxv)    the Investor Charge-Off Amount for such Payment Date;

                  (xxvi)   the percentage of cumulative losses under a Servicer
         Termination Event;

                  (xxvii)  the Group VII Excess Spread Percentage for such
         Payment Date;

                  (xxviii) the Group VII Excess Spread Percentage on a rolling
         three-month average basis;

                  (xxix)   the number and aggregate Stated Principal Balances of
         HELOC Mortgage Loans (a) as to which the Monthly Payment are 100 days
         or more delinquent, (b) in foreclosure or (c) that have become REO
         Property;

                  (xxx)    the aggregated Stated Principal Balance of the three
         largest HELOC Mortgage Loans as of such Payment Date;

                  (xxxi)   the Overcollateralization Target Amount for the
         related Loan Group as of the preceding Payment Date;

                  (xxxii)  the Overcollateralization Target Amount for the
         related Loan Group for such Payment Date;

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                  (xxxiii) the Investor Principal Distribution Amount for such
         Payment Date;

                  (xxxiv)  the Invested Amount of Loan Group VII for such
         Payment Date;

                  (xxxv)   the Overcollateralization Reduction Amount for such
         Payment Date;

                  (xxxvi)  the Excess Overcollateralization Amount for such
         Payment Date; and

                  (xxxvii) the amount of Crossable Excess received as of such
         Payment Date.

         Items (iii) and (iv) above shall be presented on the basis of a Note
having a $1,000 denomination. In addition, by January 31 of each calendar year
following any year during which the Notes are outstanding, the Indenture Trustee
shall furnish a report to each Noteholder of record if so requested in writing
at any time during each calendar year as to the aggregate of amounts reported
pursuant to (iii) and (iv) with respect to the Notes for such calendar year.

         The Indenture Trustee may conclusively rely upon the Remittance Report
provided by the related Master Servicer to the Indenture Trustee pursuant to
Section 4.01 of the related Servicing Agreement and on the amount of the Group
II Net Swap Agreement Payment Amount and the Group III Net Swap Agreement
Payment Amount furnished to the Indenture pursuant to the Swap Agreements in its
preparation of its Statement to Noteholders.

         The Indenture Trustee will make the monthly statements provided for in
this Section (and, at its option, any additional files containing the same
information in an alternative format) available each month to Noteholders, other
parties to this Agreement and any other interested parties via the Indenture
Trustee's website. The Indenture Trustee's website shall initially be located at
www.bnyinvestorreporting.com. Parties that are unable to use the website are
entitled to have a paper copy mailed to them via first class mail by calling the
customer service desk and indicating such. With the consent of the Depositor,
the Indenture Trustee may have the right to change the way the monthly
statements 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.

         The Indenture Trustee shall be entitled to rely on but shall not be
responsible for the content or accuracy of any information provided by third
parties for purposes of preparing the monthly statement, and may affix thereto
any disclaimer it deems appropriate in its reasonable discretion (without
suggesting liability on the part of any other party hereto).

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                                  ARTICLE VIII

                      Accounts, Disbursements and Releases

         Section 8.01 Collection of Money. Except as otherwise expressly
provided herein, the Indenture Trustee may demand payment or delivery of, and
shall receive and collect, directly and without intervention or assistance of
any fiscal agent or other intermediary, all money and other property payable to
or receivable by the Indenture Trustee pursuant to this Indenture. The Indenture
Trustee shall apply all such money received by it as provided in this Indenture.
Except as otherwise expressly provided in this Indenture, if any default occurs
in the making of any payment or performance under any agreement or instrument
that is part of the Trust Estate, the Indenture Trustee may take such action as
may be appropriate to enforce such payment or performance, including the
institution and prosecution of appropriate Proceedings. Any such action shall be
without prejudice to any right to claim a Default or Event of Default under this
Indenture and any right to proceed thereafter as provided in Article V.

         Section 8.02 Trust Accounts.

         (a)      On or prior to the Closing Date, the Issuer shall cause the
Indenture Trustee to establish and maintain, in the name of the Indenture
Trustee, for the benefit of the Noteholders, the Insurer and the Derivative
Contract Counterparty, the Payment Account as provided in Section 3.01 hereof.

         (b)      All monies deposited from time to time in the Payment Account
and the Certificate Distribution Account and all deposits therein pursuant to
this Indenture (other than deposits of any gain or income on investments
thereof) are for the benefit of the Noteholders and the Certificateholders. Any
loss on any investment made by the Indenture Trustee with funds in the Payment
Account and the Certificate Distribution Account shall be reimbursed immediately
to the Trust Estate by the Seller. All investments made with monies in the
Payment Account and the Certificate Distribution Account including all income or
other gain from such investments shall be for the benefit of and the risk of the
Seller, except that the Indenture Trustee shall have the benefit of three
calendar days next preceding each Payment Date of income or other gain from such
investments. On each Payment Date, the Indenture Trustee shall remit all other
income or other gain from amounts in the Payment Account to the Seller.

         (c)      On each Payment Date, (A) the Indenture Trustee shall be
entitled to withdraw from the Payment Account the following amounts: (i) to pay
to the Indenture Trustee the Indenture Trustee Fee with respect to such Payment
Date, (ii) from funds other than the amounts received in respect of the HELOC
Mortgage Loans to pay the Derivative Contract Counterparty the applicable Net
Swap Fee, in each case excluding any Additional Derivative Contract Counterparty
Payment and (iii) all other amounts reimbursable by the Issuer or from the
Payment Account to the Indenture Trustee pursuant to any provision of any Basic
Document, and (B) the Indenture Trustee shall distribute all remaining amounts
on deposit in the Payment Account to the Noteholders in respect of the Notes and
to such other persons in the order of priority set forth in Section 3.05, 3.06
and 3.07 hereof (except as otherwise provided in Section 5.04(b) hereof). In
addition, the Indenture Trustee shall pay from its own funds, without any right
of reimbursement

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therefor from the Issuer or the Payment Account, all Owner Trustee Fees and the
fees payable to the Custodian pursuant to the Custodial Agreement.

         (d)      The Indenture Trustee shall invest any funds in the Payment
Account, but only in Eligible Investments, as directed by the Seller in writing,
maturing no later than the next Payment Date and such Eligible Investments shall
not be sold or disposed of prior to their maturity.

         Section 8.03 Officer's Certificate. The Indenture Trustee shall receive
at least seven Business Days' notice when requested by the Issuer to take any
action pursuant to Section 8.05(a) hereof, accompanied by copies of any
instruments to be executed, and the Indenture Trustee shall also require, as a
condition to such action, an Officer's Certificate, in form and substance
satisfactory to the Indenture Trustee, stating the legal effect of any such
action, outlining the steps required to complete the same, and concluding that
all conditions precedent to the taking of such action have been complied with.

         Section 8.04 Termination Upon Distribution to Noteholders. This
Indenture and the respective obligations and responsibilities of the Issuer and
the Indenture Trustee created hereby shall terminate upon the distribution to
Noteholders, the Insurer, the Certificate Paying Agent on behalf of the
Certificateholders and the Indenture Trustee of all amounts required to be
distributed pursuant to Article III; provided, however, that in no event shall
the trust created hereby continue beyond the expiration of 21 years from the
death of the survivor of the descendants of Joseph P. Kennedy, the late
ambassador of the United States to the Court of St. James, living on the date
hereof.

         Section 8.05 Release of Trust Estate.

         (a)      Subject to the payment of its fees and expenses, the Indenture
Trustee may, and when required by the provisions of this Indenture shall,
execute instruments to release property from the lien of this Indenture, or
convey the Indenture Trustee's interest in the same, in a manner and under
circumstances that are not inconsistent with the provisions of this Indenture,
including for the purposes of any repurchase by the Master Servicer of a
Mortgage Loan pursuant to Section 3.18 of the related Servicing Agreement. No
party relying upon an instrument executed by the Indenture Trustee as provided
in Article VIII hereunder shall be bound to ascertain the Indenture Trustee's
authority, inquire into the satisfaction of any conditions precedent, or see to
the application of any monies.

         (b)      The Indenture Trustee shall, at such time as (i) there are no
Notes Outstanding and (ii) all sums then due and unpaid to the Indenture Trustee
pursuant to this Indenture have been paid and (iii) all sums due to the Insurer
have been paid, release any remaining portion of the Trust Estate that secured
the Notes from the lien of this Indenture.

         (c)      The Indenture Trustee shall release property from the lien of
this Indenture pursuant to this Section 8.05 only upon receipt of a request from
the Issuer accompanied by an Officers' Certificate and an Opinion of Counsel
stating that all applicable requirements have been satisfied, and a letter from
the Insurer stating that the Insurer has no objection to such request from the
Issuer, except as otherwise provided in clause (a).

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         Section 8.06 Surrender of Notes Upon Final Payment. By acceptance of
any Note, the Holder thereof agrees to surrender such Note to the Indenture
Trustee promptly, prior to such Noteholder's receipt of the final payment
thereon.

         Section 8.07 Optional Redemption of the Notes.

         (a)      The Majority Certificateholder shall have the option to
purchase the assets of the Trust related to Loan Group I, Loan Group II, Loan
Group III, Loan Group IV, Loan Group V and Loan Group VI and thereby redeem the
Class I-A, Class II-A, Class III-A, Class IV-A, Class V-A, Class VI-A, Class M,
Class VI-M and Class VI-B Notes on or after the Payment Date on which the Stated
Principal Balance of the related Mortgage Loans, and properties acquired in
respect thereof has been reduced to less than 10% of the sum of the Group I,
Group II, Group III, Group IV, Group V and Group VI Cut-off Date Balance. The
Majority Certificateholder shall have the option to purchase the assets of the
Trust related to Loan Group I, Loan Group II, Loan Group III, Loan Group IV,
Loan Group V, Loan Group VI and Loan Group VII and thereby redeem the Notes on
or after the Payment Date on which the Stated Principal Balance of the Mortgage
Loans and HELOC Mortgage Loans, and properties acquired in respect thereof has
been reduced to less than 10% of the sum of the Group I, Group II, Group III,
Group IV, Group V, Group VI and Group VII Cut-off Date Balance. The Majority
Certificateholder shall have the option to purchase the assets of the Trust
related to Loan Group I, Loan Group II, Loan Group III, Loan Group IV and Loan
Group V and thereby redeem the Class I-A, Class II-A, Class III-A, Class IV-A,
Class V-A and Class M Notes on or after the Payment Date on which the Stated
Principal Balance of the related Mortgage Loans, and properties acquired in
respect thereof has been reduced to less than 10% of the sum of the Group I,
Group II, Group III, Group IV and Group V Cut-off Date Balance. The Majority
Certificateholder shall have the option to purchase the assets of the Trust
related to Loan Group VI and thereby redeem the Class VI-A, Class VI-M and Class
VI-B Notes on or after the Payment Date on which the Stated Principal Balance of
the related Mortgage Loans, and properties acquired in respect thereof has been
reduced to less than 10% of the Group VI Cut-off Date Balance.

         (b)      The Majority Certificateholder shall have the option to
purchase the HELOC Mortgage Loans and thereby redeem the Class VII-A Notes on
any Payment Date on or after the Payment Date on which the Note Principal
Balance of the Class VII-A Notes declines to 10% or less of the Note Principal
Balance of the Class VII-A Notes on the Closing Date. If the Majority
Certificateholder fails to exercise this right, the Insurer may purchase the
HELOC Mortgage Loans 60 days after the Payment Date on which the Note Principal
Balance of the Class VII-A Notes declines to 10% or less of the Note Principal
Balance of the Class VII-A Notes on the Closing Date.

         (c)      The aggregate redemption price (the "Redemption Price") for
the Notes will be equal to 100% of the aggregate outstanding Note Principal
Balance thereof and accrued and unpaid interest thereon (including any related
Unpaid Interest Shortfall, Net WAC Shortfall Carry-Forward Amount and Basis Risk
Shortfall Carry-Forward Amount) at the Note Interest Rate through the date on
which the Notes are redeemed in full together with all amounts due and owing to
the Indenture Trustee under this Indenture (which amounts shall be specified in
writing upon request of the Issuer by the Indenture Trustee) and the related
Master Servicer.

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         (d)      In order to exercise the foregoing option, the Majority
Certificateholder shall provide written notice of its exercise of such option to
the Indenture Trustee, the Issuer, the Owner Trustee and the applicable Master
Servicer at least 15 days prior to its exercise. Following receipt of the
notice, the Indenture Trustee shall provide written notice to the Noteholders of
the final payment on the Notes. In addition, the Majority Certificateholder
shall, not less than one Business Day prior to the proposed Payment Date on
which such redemption is to be made, deposit the Redemption Price specified in
(a) above with the Indenture Trustee, who shall deposit the Redemption Price
into the Payment Account and shall, on the Payment Date after receipt of the
funds, apply such funds to make final payments of principal and interest on the
Notes in accordance with Sections 3.05, 3.06 or 3.07, as applicable, hereof and
payment to the Indenture Trustee and the Master Servicer as set forth in (a)
above, and this Indenture shall be discharged subject to the provisions of
Section 4.10 hereof. If for any reason the amount deposited by the Majority
Certificateholder is not sufficient to make such redemption or such redemption
cannot be completed for any reason, (a) the amount so deposited by the Majority
Certificateholder with the Indenture Trustee shall be immediately returned to
the Majority Certificateholder in full and shall not be used for any other
purpose or be deemed to be part of the Trust Estate and (b) the Note Principal
Balance of the Notes shall continue to bear interest at the related Note
Interest Rate.

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                                   ARTICLE IX

                             Supplemental Indentures

         Section 9.01 Supplemental Indentures Without Consent of Noteholders.

         (a)      Without the consent of the Holders of any Notes but with prior
written consent of the Insurer and prior notice to the Rating Agencies and the
Insurer, the Issuer and the Indenture Trustee, when authorized by an Issuer
Request, at any time and from time to time, may enter into one or more
indentures supplemental hereto (which shall conform to the provisions of the TIA
as in force at the date of the execution thereof), in form satisfactory to the
Indenture Trustee, for any of the following purposes:

                  (i)      to correct or amplify the description of any property
         at any time subject to the lien of this Indenture, or better to assure,
         convey and confirm unto the Indenture Trustee any property subject or
         required to be subjected to the lien of this Indenture, or to subject
         to the lien of this Indenture additional property;

                  (ii)     to evidence the succession, in compliance with the
         applicable provisions hereof, of another person to the Issuer, and the
         assumption by any such successor of the covenants of the Issuer herein
         and in the Notes contained;

                  (iii)    to add to the covenants of the Issuer, for the
         benefit of the Holders of the Notes or the Insurer, or to surrender any
         right or power herein conferred upon the Issuer;

                  (iv)     to convey, transfer, assign, mortgage or pledge any
         property to or with the Indenture Trustee;

                  (v)      to cure any ambiguity, to correct or supplement any
         provision herein or in any supplemental indenture that may be
         inconsistent with any other provision herein or in any supplemental
         indenture;

                  (vi)     to make any other provisions with respect to matters
         or questions arising under this Indenture or in any supplemental
         indenture; provided, that such action shall not materially and
         adversely affect the interests of the of the Insurer Holders of the
         Notes;

                  (vii)    to evidence and provide for the acceptance of the
         appointment hereunder by a successor trustee with respect to the Notes
         and to add to or change any of the provisions of this Indenture as
         shall be necessary to facilitate the administration of the trusts
         hereunder by more than one trustee, pursuant to the requirements of
         Article VI hereof; or

                  (viii)   to modify, eliminate or add to the provisions of this
         Indenture to such extent as shall be necessary to effect the
         qualification of this Indenture under the TIA or under any similar
         federal statute hereafter enacted and to add to this Indenture such
         other provisions as may be expressly required by the TIA;

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provided, however, that no such indenture supplements shall be entered into
unless the Indenture Trustee shall have received an Opinion of Counsel as to the
enforceability of any such indenture supplement and to the effect that (i) such
indenture supplement is permitted hereunder and (ii) entering into such
indenture supplement will not result in a "substantial modification" of the
Notes under Treasury Regulation Section 1.1001-3 or adversely affect the status
of the Notes as indebtedness for federal income tax purposes.

         The Indenture Trustee is hereby authorized to join in the execution of
any such supplemental indenture and to make any further appropriate agreements
and stipulations that may be therein contained.

         (b)      The Issuer and the Indenture Trustee, when authorized by an
Issuer Request, may, also without the consent of any of the Holders of the Notes
but with the prior written consent of the Insurer and prior notice to the Rating
Agencies and the Insurer, enter into an indenture or indentures supplemental
hereto for the purpose of adding any provisions to, or changing in any manner or
eliminating any of the provisions of, this Indenture or of modifying in any
manner the rights of the Holders of the Notes under this Indenture; provided,
however, that such action as evidenced by an Opinion of Counsel, (i) is
permitted by this Indenture, (ii) shall not adversely affect in any material
respect the interests of any Noteholder and (iii) if 100% of the Certificates
are not owned by AHM SPV III, LLC, cause the Issuer to be subject to an entity
level tax for federal income tax purposes.

         Section 9.02 Supplemental Indentures With Consent of Noteholders. The
Issuer and the Indenture Trustee, when authorized by an Issuer Request, also
may, with prior notice to the Rating Agencies and, with the prior written
consent of the Insurer and with the consent of the Holders of not less than a
majority of the Note Principal Balance of each Class of Notes affected thereby,
by Act (as defined in Section 10.03 hereof) of such Holders, or the Insurer
pursuant to Section 4.12 hereof, delivered to the Issuer and the Indenture
Trustee, enter into an indenture or indentures supplemental hereto for the
purpose of adding any provisions to, or changing in any manner or eliminating
any of the provisions of, this Indenture or of modifying in any manner the
rights of the Holders of the Notes under this Indenture; provided, however, that
no such supplemental indenture shall, without the consent of the Holder of each
Note affected thereby:

                  (i)      change the date of payment of any installment of
         principal of or interest on any Note, or reduce the principal amount
         thereof or the interest rate thereon, change the provisions of this
         Indenture relating to the application of collections on, or the
         proceeds of the sale of, the Trust Estate and to payment of principal
         of or interest on the Notes, or change any place of payment where, or
         the coin or currency in which, any Note or the interest thereon is
         payable, or impair the right to institute suit for the enforcement of
         the provisions of this Indenture requiring the application of funds
         available therefor, as provided in Article V, to the payment of any
         such amount due on the Notes on or after the respective due dates
         thereof;

                  (ii)     reduce the percentage of the Note Principal Balances
         of the Notes, or any Class of Notes, the consent of the Holders of
         which is required for any such supplemental indenture, or the consent
         of the Holders of which is required for any waiver of

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         compliance with certain provisions of this Indenture or certain
         defaults hereunder and their consequences provided for in this
         Indenture;

                  (iii)    modify or alter the provisions of the proviso to the
         definition of the term "Outstanding" or modify or alter the exception
         in the definition of the term "Holder";

                  (iv)     reduce the percentage of the Note Principal Balances
         of the Notes, or any Class of Notes, required to direct the Indenture
         Trustee to direct the Issuer to sell or liquidate the Trust Estate
         pursuant to Section 5.04 hereof;

                  (v)      modify any provision of this Section 9.02 except to
         increase any percentage specified herein or to provide that certain
         additional provisions of this Indenture or the Basic Documents cannot
         be modified or waived without the consent of the Holder of each Note
         affected thereby;

                  (vi)     modify any of the provisions of this Indenture in
         such manner as to affect the calculation of the amount of any payment
         of interest or principal due on any Note on any Payment Date (including
         the calculation of any of the individual components of such
         calculation); or

                  (vii)    permit the creation of any lien ranking prior to or
         on a parity with the lien of this Indenture with respect to any part of
         the Trust Estate or, except as otherwise permitted or contemplated
         herein, terminate the lien of this Indenture on any property at any
         time subject hereto or deprive the Holder of any Note of the security
         provided by the lien of this Indenture;

and provided, further, that such action shall not, as evidenced by an Opinion of
Counsel, cause the Issuer (if 100% of the Certificates are not owned by AHM SPV
III, LLC) to be subject to an entity level tax for federal income tax purposes.

         Any such action shall not adversely affect in any material respect the
interest of any Holder (other than a Holder who shall consent to such
supplemental indenture) as evidenced by an Opinion of Counsel (provided by the
Person requesting such supplemental indenture) delivered to the Indenture
Trustee.

         It shall not be necessary for any Act of Noteholders under this Section
9.02 to approve the particular form of any proposed supplemental indenture, but
it shall be sufficient if such Act shall approve the substance thereof.

         Promptly after the execution by the Issuer and the Indenture Trustee of
any supplemental indenture pursuant to this Section 9.02, the Indenture Trustee
shall mail to the Holders of the Notes to which such amendment or supplemental
indenture relates a notice setting forth in general terms the substance of such
supplemental indenture. Any failure of the Indenture Trustee to mail such
notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any such supplemental indenture.

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         Section 9.03 Execution of Supplemental Indentures. In executing, or
permitting the additional trusts created by, any supplemental indenture
permitted by this Article IX or the modification thereby of the trusts created
by this Indenture, the Indenture Trustee shall be entitled to receive, and
subject to Sections 6.01 and 6.02 hereof, shall be fully protected in relying
upon, an Opinion of Counsel stating that the execution of such supplemental
indenture is authorized or permitted by this Indenture and that all conditions
precedent thereto have been complied with. The Indenture Trustee may, but shall
not be obligated to, enter into any such supplemental indenture that affects the
Indenture Trustee's own rights, duties, liabilities or immunities under this
Indenture or otherwise.

         Section 9.04 Effect of Supplemental Indenture. Upon the execution of
any supplemental indenture pursuant to the provisions hereof, this Indenture
shall be and shall be deemed to be modified and amended in accordance therewith
with respect to the Notes affected thereby, and the respective rights,
limitations of rights, obligations, duties, liabilities and immunities under
this Indenture of the Indenture Trustee, the Issuer and the Holders of the Notes
shall thereafter be determined, exercised and enforced hereunder subject in all
respects to such modifications and amendments, and all the terms and conditions
of any such supplemental indenture shall be and be deemed to be part of the
terms and conditions of this Indenture and the Notes for any and all purposes.

         Section 9.05 Conformity with Trust Indenture Act. Every amendment of
this Indenture and every supplemental indenture executed pursuant to this
Article IX shall conform to the requirements of the Trust Indenture Act as then
in effect so long as this Indenture shall then be qualified under the Trust
Indenture Act.

         Section 9.06 Reference in Notes to Supplemental Indentures. Notes
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article IX may, and if required by the Indenture Trustee shall,
bear a notation in form approved by the Indenture Trustee as to any matter
provided for in such supplemental indenture. If the Issuer or the Indenture
Trustee shall so determine, new Notes so modified as to conform, in the opinion
of the Indenture Trustee and the Issuer, to any such supplemental indenture may
be prepared and executed by the Issuer and authenticated and delivered by the
Indenture Trustee in exchange for Outstanding Notes.

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                                    ARTICLE X

                                  Miscellaneous

         Section 10.01 Compliance Certificates and Opinions, etc. (a) Upon any
application or request by the Issuer to the Indenture Trustee to take any action
under any provision of this Indenture and the Insurer, the Issuer shall furnish
to the Indenture Trustee (i) an Officer's Certificate stating that all
conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with and (ii) an Opinion of Counsel stating
that in the opinion of such counsel all such conditions precedent, if any, have
been complied with, except that, in the case of any such application or request
as to which the furnishing of such documents is specifically required by any
provision of this Indenture, no additional certificate or opinion need be
furnished.

         Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture shall include:

         (1)      a statement that each signatory of such certificate or opinion
has read or has caused to be read such covenant or condition and the definitions
herein relating thereto;

         (2)      a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions contained in
such certificate or opinion are based;

         (3)      a statement that, in the opinion of each such signatory, such
signatory has made such examination or investigation as is necessary to enable
such signatory to express an informed opinion as to whether or not such covenant
or condition has been complied with;

         (4)      a statement as to whether, in the opinion of each such
signatory, such condition or covenant has been complied with; and

         (5)      if the signatory of such certificate or opinion is required to
be Independent, the statement required by the definition of the term
"Independent".

         (a)      Prior to the deposit of any Collateral or other property or
securities with the Indenture Trustee that is to be made the basis for the
release of any property or securities subject to the lien of this Indenture, the
Issuer shall, in addition to any obligation imposed in Section 10.01 (a) or
elsewhere in this Indenture, furnish to the Indenture Trustee an Officer's
Certificate certifying or stating the opinion of each person signing such
certificate as to the fair value (within 90 days prior to such deposit) to the
Issuer of the Collateral or other property or securities to be so deposited and
a report from a nationally recognized accounting firm verifying such value.

         (b)      Whenever the Issuer is required to furnish to the Indenture
Trustee an Officer's Certificate certifying or stating the opinion of any signer
thereof as to the matters described in clause (i) above, the Issuer shall also
deliver to the Indenture Trustee an Independent Certificate from a nationally
recognized accounting firm as to the same matters, if the fair value of the
securities to be so deposited and of all other such securities made the basis of
any such withdrawal or release since the commencement of the then current fiscal
year of the Issuer, as set forth in the

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certificates delivered pursuant to clause (i) above and this clause (ii), is 10%
or more of the Note Principal Balances of the Notes, but such a certificate need
not be furnished with respect to any securities so deposited, if the fair value
thereof as set forth in the related Officer's Certificate is less than $25,000
or less than one percent of the then outstanding Note Principal Balances of the
Notes.

         (c)      Whenever any property or securities are to be released from
the lien of this Indenture, the Issuer shall also furnish to the Indenture
Trustee an Officer's Certificate certifying or stating the opinion of each
person signing such certificate as to the fair value (within 90 days prior to
such release) of the property or securities proposed to be released and stating
that in the opinion of such person the proposed release will not impair the
security under this Indenture in contravention of the provisions hereof.

         (d)      Whenever the Issuer is required to furnish to the Indenture
Trustee an Officer's Certificate certifying or stating the opinion of any signer
thereof as to the matters described in clause (iii) above, the Issuer shall also
furnish to the Indenture Trustee an Independent Certificate as to the same
matters if the fair value of the property or securities and of all other
property or securities released from the lien of this Indenture since the
commencement of the then-current calendar year, as set forth in the certificates
required by clause (iii) above and this clause (iv), equals 10% or more of the
Note Principal Balances of the Notes, but such certificate need not be furnished
in the case of any release of property or securities if the fair value thereof
as set forth in the related Officer's Certificate is less than $25,000 or less
than one percent of the then outstanding Note Principal Balances of the Notes.

         Section 10.02 Form of Documents Delivered to Indenture Trustee. In any
case where several matters are required to be certified by, or covered by an
opinion of, any specified Person, it is not necessary that all such matters be
certified by, or covered by the opinion of, only one such Person, or that they
be so certified or covered by only one document, but one such Person may certify
or give an opinion with respect to some matters and one or more other such
Persons as to other matters, and any such Person may certify or give an opinion
as to such matters in one or several documents.

         Any certificate or opinion of an Authorized Officer of the Issuer may
be based, insofar as it relates to legal matters, upon a certificate or opinion
of, or representations by, counsel, unless such officer knows, or in the
exercise of reasonable care should know, that the certificate or opinion or
representations with respect to the matters upon which his certificate or
opinion is based are erroneous. Any such certificate of an Authorized Officer or
Opinion of Counsel may be based, insofar as it relates to factual matters, upon
a certificate or opinion of, or representations by, an officer or officers of
the Seller or the Issuer, stating that the information with respect to such
factual matters is in the possession of the Seller or the Issuer, unless such
counsel knows, or in the exercise of reasonable care should know, that the
certificate or opinion or representations with respect to such matters are
erroneous.

         Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.

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         Whenever in this Indenture, in connection with any application or
certificate or report to the Indenture Trustee, it is provided that the Issuer
shall deliver any document as a condition of the granting of such application,
or as evidence of the Issuer's compliance with any term hereof, it is intended
that the truth and accuracy, at the time of the granting of such application or
at the effective date of such certificate or report (as the case may be), of the
facts and opinions stated in such document shall in such case be conditions
precedent to the right of the Issuer to have such application granted or to the
sufficiency of such certificate or report. The foregoing shall not, however, be
construed to affect the Indenture Trustee's right to rely upon the truth and
accuracy of any statement or opinion contained in any such document as provided
in Article VI.

         Section 10.03 Acts of Noteholders.

         (a)      Any request, demand, authorization, direction, notice,
consent, waiver or other action provided by this Indenture to be given or taken
by Noteholders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Noteholders in person or by agents
duly appointed in writing; and except as herein otherwise expressly provided,
such action shall become effective when such instrument or instruments are
delivered to the Indenture Trustee, and, where it is hereby expressly required,
to the Issuer. Such instrument or instruments (and the action embodied therein
and evidenced thereby) are herein sometimes referred to as the "Act" of the
Noteholders signing such instrument or instruments. Proof of execution of any
such instrument or of a writing appointing any such agent shall be sufficient
for any purpose of this Indenture and (subject to Section 6.01 hereof)
conclusive in favor of the Indenture Trustee and the Issuer, if made in the
manner provided in this Section 10.03 hereof.

         (b)      The fact and date of the execution by any person of any such
instrument or writing may be proved in any manner that the Indenture Trustee
deems sufficient.

         (c)      The ownership of Notes shall be proved by the Note Registrar.

         (d)      Any request, demand, authorization, direction, notice,
consent, waiver or other action by the Holder of any Notes shall bind the Holder
of every Note issued upon the registration thereof or in exchange therefor or in
lieu thereof, in respect of anything done, omitted or suffered to be done by the
Indenture Trustee or the Issuer in reliance thereon, whether or not notation of
such action is made upon such Note.

         Section 10.04 Notices etc., to Indenture Trustee, Issuer, Insurer and
Rating Agencies. Any request, demand, authorization, direction, notice, consent,
waiver or Act of Noteholders or other documents provided or permitted by this
Indenture shall be in writing and if such request, demand, authorization,
direction, notice, consent, waiver or act of Noteholders is to be made upon,
given or furnished to or filed with:

         (a)      the Indenture Trustee by any Noteholder or by the Issuer shall
be sufficient for every purpose hereunder if made, given, furnished or filed in
writing to or with the Indenture Trustee at the Corporate Trust Office. All
notices to the Indenture Trustee shall be deemed effective only upon actual
receipt. The Indenture Trustee shall promptly transmit any material notice
received by it from the Noteholders to the Issuer and the Insurer; or

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         (b)      the Issuer by the Indenture Trustee or by any Noteholder shall
be sufficient for every purpose hereunder if made, given, furnished or filed in
writing and mailed first-class, postage prepaid to the Issuer addressed to:
American Home Mortgage Investment Trust 2004-4, in care of Wilmington Trust
Company, Rodney Square North, 1100 North Market Street, Wilmington, Delaware
19990-0001, Attention: Corporate Trust Administration, or at any other address
previously furnished in writing to the Indenture Trustee by the Issuer. The
Issuer shall promptly transmit any notice received by it from the Noteholders to
the Indenture Trustee and the Insurer; or

         (c)      the Insurer by the Issuer, the Indenture Trustee or by any
Noteholders shall be sufficient for every purpose hereunder if in writing and
mailed first-class, postage prepaid, or personally delivered or telecopied to:
MBIA Insurance Corporation, Insured Portfolio Management - Structured Finance
(IPM-SF) (American Home Mortgage Investment Trust 2004-4) Facsmile: (914)
765-3810, Tel: (914) 273-4545. The Insurer shall promptly transmit any notice
received by it from the Issuer, the Indenture Trustee or the Noteholders to the
Issuer or Indenture Trustee as the case may be; or

         Notices required to be given to the Rating Agencies by the Issuer, the
Indenture Trustee or the Owner Trustee shall be in writing, mailed first-class
postage pre-paid, (i) to Standard & Poor's, at the following address: Standard &
Poor's, 55 Water Street, 41st Floor, New York, New York 10041, Attention of
Asset Backed Surveillance Department; and (ii) to Moody's, at the following
address: Moody's Investors Service, Inc., 99 Church Street, New York, New York
10007; or as to each of the foregoing, at such other address as shall be
designated by written notice to the other parties.

         Section 10.05 Notices to Noteholders; Waiver. Where this Indenture
provides for notice to Noteholders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if made, given,
furnished or filed in writing and mailed, first-class, postage prepaid to each
Noteholder affected by such event, at such Person's address as it appears on the
Note Register, not later than the latest date, and not earlier than the earliest
date, prescribed for the giving of such notice. In any case where notice to
Noteholders is given by mail, neither the failure to mail such notice nor any
defect in any notice so mailed to any particular Noteholder shall affect the
sufficiency of such notice with respect to other Noteholders, and any notice
that is mailed in the manner herein provided shall conclusively be presumed to
have been duly given regardless of whether such notice is in fact actually
received.

         Where this Indenture provides for notice in any manner, such notice may
be waived in writing by any Person entitled to receive such notice, either
before or after the event, and such waiver shall be the equivalent of such
notice. Waivers of notice by Noteholders shall be filed with the Indenture
Trustee but such filing shall not be a condition precedent to the validity of
any action taken in reliance upon such a waiver.

         In case, by reason of the suspension of regular mail service as a
result of a strike, work stoppage or similar activity, it shall be impractical
to mail notice of any event to Noteholders when such notice is required to be
given pursuant to any provision of this Indenture, then any

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manner of giving such notice as shall be satisfactory to the Indenture Trustee
shall be deemed to be a sufficient giving of such notice.

         Where this Indenture provides for notice to the Rating Agencies,
failure to give such notice shall not affect any other rights or obligations
created hereunder, and shall not under any circumstance constitute an Event of
Default.

         Section 10.06 Conflict with Trust Indenture Act. If any provision
hereof limits, qualifies or conflicts with another provision hereof that is
required to be included in this Indenture by any of the provisions of the Trust
Indenture Act, such required provision shall control.

         The provisions of TIA ss.ss. 310 through 317 that impose duties on any
Person (including the provisions automatically deemed included herein unless
expressly excluded by this Indenture) are a part of and govern this Indenture,
whether or not physically contained herein.

         Section 10.07 Effect of Headings. The Article and Section headings
herein are for convenience only and shall not affect the construction hereof.

         Section 10.08 Successors and Assigns. All covenants and agreements in
this Indenture and the Notes by the Issuer shall bind its successors and
assigns, whether so expressed or not. All agreements of the Indenture Trustee in
this Indenture shall bind its successors, co-trustees and agents.

         Section 10.09 Separability. In case any provision in this Indenture or
in the Notes shall be invalid, illegal or unenforceable, the validity, legality,
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

         Section 10.10 Benefits of Indenture. The Insurer and its successors and
assigns shall be a third-party beneficiary to the provisions of this Indenture.
To the extent that this Indenture confers upon or gives or grants to the Insurer
any right, remedy or claim under or by reason of this Indenture, the Insurer may
enforce any such right, remedy or claim conferred, given or granted hereunder.
Nothing in this Indenture or in the, express or implied, shall give to any
Person, other than the parties hereto and their successors hereunder, and the
Noteholders and the Insurer, any benefit or any legal or equitable right, remedy
or claim under this Indenture.

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         Section 10.11 Legal Holidays. In any case where the date on which any
payment is due shall not be a Business Day, then (notwithstanding any other
provision of the Notes or this Indenture) payment need not be made on such date,
but may be made on the next succeeding Business Day with the same force and
effect as if made on the date on which nominally due, and no interest shall
accrue for the period from and after any such nominal date.

         Section 10.12 GOVERNING LAW. THIS INDENTURE SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

         The parties to this Indenture each hereby irrevocably submits to the
non exclusive jurisdiction of any New York State or federal court sitting in the
Borough of Manhattan in The City of New York in any action or proceeding arising
out of or relating to the Notes, this Indenture or the transactions contemplated
hereby, and all such parties hereby irrevocably agree that all claims in respect
of such action or proceeding may be heard and determined in such New York State
or federal court and hereby irrevocably waive, to the fullest extent that they
may legally do so, the defense of an inconvenient forum to the maintenance of
such action or proceeding. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY
JURY IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE,
THE NOTES OR THE TRANSACTIONS CONTEMPLATED HEREBY.

         Section 10.13 Counterparts. This Indenture may be executed in any
number of counterparts, each of which when so executed shall be deemed to be an
original, but all such counterparts shall together constitute but one and the
same instrument.

         Section 10.14 Recording of Indenture. If this Indenture is subject to
recording in any appropriate public recording offices, such recording is to be
effected by the Issuer and at its expense accompanied by an Opinion of Counsel
at its expense (which may be counsel to the Indenture Trustee or any other
counsel reasonably acceptable to the Indenture Trustee) to the effect that such
recording is necessary either for the protection of the Noteholders or any other
Person secured hereunder or for the enforcement of any right or remedy granted
to the Indenture Trustee under this Indenture.

         Section 10.15 Issuer Obligation. No recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or
the Indenture Trustee on the Notes or under this Indenture or any certificate or
other writing delivered in connection herewith or therewith, against (i) the
Indenture Trustee or the Owner Trustee in its individual capacity, (ii) any
owner of a beneficial interest in the Issuer or (iii) any partner, owner,
beneficiary, agent, officer, director, employee or agent of the Indenture
Trustee or the Owner Trustee in its individual capacity, any holder of a
beneficial interest in the Issuer, the Owner Trustee or the Indenture Trustee or
of any successor or assign of the Indenture Trustee or the Owner Trustee in its
individual capacity, except as any such Person may have expressly agreed (it
being understood

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that the Indenture Trustee and the Owner Trustee have no such obligations in
their individual capacity) and except that any such partner, owner or
beneficiary shall be fully liable, to the extent provided by applicable law, for
any unpaid consideration for stock, unpaid capital contribution or failure to
pay any installment or call owing to such entity. For all purposes of this
Indenture, in the performance of any duties or obligations of the Issuer
hereunder, the Owner Trustee shall be subject to, and entitled to the benefits
of, the terms and provisions of Article VI, VII and VIII of the Trust Agreement.

         Section 10.16 No Petition. The Indenture Trustee, by entering into this
Indenture, and each Noteholder, by accepting a Note, hereby covenant and agree
that they will not at any time prior to one year from the date of termination
hereof, institute against the Depositor or the Issuer, or join in any
institution against the Depositor or the Issuer of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings under any United States federal or state bankruptcy or similar law
in connection with any obligations relating to the Notes, this Indenture or any
of the Basic Documents.

         Section 10.17 Inspection. The Issuer agrees that, at its expense, on
reasonable prior notice, it shall permit any representative of the Indenture
Trustee and the Insurer, during the Issuer's normal business hours, to examine
all the books of account, records, reports and other papers of the Issuer, to
make copies and extracts therefrom, to cause such books to be audited by
Independent certified public accountants, and to discuss the Issuer's affairs,
finances and accounts with the Issuer's officers, employees, and Independent
certified public accountants, all at such reasonable times and as often as may
be reasonably requested. The Indenture Trustee and the Insurer shall cause its
representatives to hold in confidence all such information except to the extent
disclosure may be required by law (and all reasonable applications for
confidential treatment are unavailing) and except to the extent that the
Indenture Trustee or the Insurer may reasonably determine that such disclosure
is consistent with its obligations hereunder.

                                      108
<PAGE>

         IN WITNESS WHEREOF, the Issuer and the Indenture Trustee have caused
their names to be signed hereto by their respective officers thereunto duly
authorized, all as of the day and year first above written.

                                             AMERICAN HOME MORTGAGE INVESTMENT
                                             TRUST 2004-4, as Issuer
                                             Wilmington Trust Company, not in
                                             its individual capacity but
                                             solely as Owner Trustee

                                             By:________________________________
                                             Name:
                                             Title:

                                             THE BANK OF NEW YORK,
                                             as Indenture Trustee

                                             By:________________________________
                                             Name:
                                             Title:

                                      109
<PAGE>

STATE OF   _____________   )
                           ) ss.:
COUNTY OF  _____________   )

         On this _____ day of December, 2004, before me personally appeared
_____________________ to me known, who being by me duly sworn, did depose and
say, that he is the ___________________ of the Indenture Trustee, one of the
corporations described in and which executed the above instrument; and that he
signed his name thereto by like order.

                                                    Notary Public

                                                    NOTARY PUBLIC

[NOTARIAL SEAL]

                                      110
<PAGE>

STATE OF DELAWARE          )
                           ) ss.:
COUNTY OF NEW CASTLE       )

         On this ____ day of December, 2004, before me personally appeared
____________________ to me known, who being by me duly sworn, did depose and
say, that she is a(n) ________________ of the Owner Trustee, one of the entities
described in and which executed the above instrument; and that she signed her
name thereto by like order.

                                                    Notary Public

                                                    NOTARY PUBLIC

[NOTARIAL SEAL]

                                      111
<PAGE>

                                   EXHIBIT A-1

                              CLASS [__-A-__] NOTES

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE INDENTURE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY NOTE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

THE HOLDER OF THIS NOTE OR BENEFICIAL OWNER OF ANY INTEREST HEREIN WILL BE
DEEMED TO REPRESENT TO ONE OF THE REPRESENTATIONS CONTAINED IN SECTION 4.15 OF
THE INDENTURE.

THIS NOTE IS A NON-RECOURSE OBLIGATION OF THE ISSUER, AND IS LIMITED IN RIGHT OF
PAYMENT TO AMOUNTS AVAILABLE FROM THE TRUST ESTATE AS PROVIDED IN THE INDENTURE
REFERRED TO BELOW. THE ISSUER IS NOT OTHERWISE PERSONALLY LIABLE FOR PAYMENTS ON
THIS NOTE.

PRINCIPAL OF THIS NOTE IS PAYABLE OVER TIME AS SET FORTH HEREIN. ACCORDINGLY,
THE OUTSTANDING PRINCIPAL OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT
SHOWN ON THE FACE HEREOF.

<PAGE>

                 AMERICAN HOME MORTGAGE INVESTMENT TRUST 2004-4
                      MORTGAGE-BACKED NOTES, SERIES 2004-4
                                 CLASS [__-A-__]

AGGREGATE NOTE PRINCIPAL                         NOTE INTEREST
BALANCE: $[________________]                     RATE: [Adjustable Rate][__%]
INITIAL NOTE PRINCIPAL                           NOTE NO.  1
BALANCE OF THIS NOTE: $[_____________]
PERCENTAGE INTEREST: 100%                        CUSIP NO: [_______________]

         American Home Mortgage Investment Trust 2004-4 (the "Issuer"), a
Delaware statutory trust, for value received, hereby promises to pay to
[____________]. or registered assigns, the principal sum of
$[____________________] in monthly installments on the twenty-fifth day of each
month or, if such day is not a Business Day, the next succeeding Business Day
(each a "Payment Date"), commencing in January 2005 and ending on or before the
Payment Date occurring in [February 2045] (the "Final Scheduled Payment Date")
and to pay interest on the Note Principal Balance of this Note (this "Note")
outstanding from time to time as provided below.

         This Note is one of a duly authorized issue of the Issuer's
Mortgage-Backed Notes, Series 2004-4 (the "Notes"), issued under an Indenture
dated as of December [21], 2004 (the "Indenture"), between the Issuer and The
Bank of New York as indenture trustee (the "Indenture Trustee") to which
Indenture and all indentures supplemental thereto reference is hereby made for a
statement of the respective rights thereunder of the Issuer, the Indenture
Trustee, and the Holders of the Notes and the terms upon which the Notes are to
be authenticated and delivered. All terms used in this Note which are defined in
the Indenture shall have the meanings assigned to them in the Indenture.

         Payments of principal and interest on this Note will be made on each
Payment Date to the Noteholder of record as of the related Record Date. The
"Note Principal Balance" of a Note as of any date of determination is equal to
the initial Note Principal Balance thereof, reduced by the aggregate of all
amounts previously paid with respect to such Note on account of principal.

         [MBIA Insurance Corporation (the "Insurer"), in consideration of the
payment of the premium and subject to the terms of the note guaranty insurance
policy (the "Insurance Policy") issued thereby, has unconditionally and
irrevocably guaranteed the payment of an amount equal to the Insured Payment
with respect to the Class VII-A Notes with respect to each Payment Date.]

         The principal of, and interest on, this Note are due and payable as
described in the Indenture, in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts. All payments made by the Issuer with respect to this Note shall
be equal to this Note's pro rata share of the aggregate payments on all

<PAGE>

Class [__-A-__] Notes as described above, and shall be applied as between
interest and principal as provided in the Indenture.

         All principal and interest accrued on the Notes, if not previously
paid, will become finally due and payable at the Final Scheduled Payment Date.

         [For Class I, Class II, Class III, Class IV and Class IV Notes] [The
Majority Certificateholder shall have the option to purchase the assets of the
Trust related to Loan Group I, Loan Group II, Loan Group III, Loan Group IV,
Loan Group V and Loan Group VI and thereby redeem the Class I-A, Class II-A,
Class III-A, Class IV-A, Class V-A, Class VI-A, Class M, Class VI-M and Class
VI-B Notes on or after the Payment Date on which the Stated Principal Balance of
the related Mortgage Loans, and properties acquired in respect thereof has been
reduced to less than 10% of the sum of the Group I, Group II, Group III, Group
IV, Group V and Group VI Cut-off Date Balance. The Majority Certificateholder
shall have the option to purchase the assets of the Trust related to Loan Group
I, Loan Group II, Loan Group III, Loan Group IV, Loan Group V, Loan Group VI and
Loan Group VII and thereby redeem the Notes on or after the Payment Date on
which the Stated Principal Balance of the Mortgage Loans and HELOC Mortgage
Loans, and properties acquired in respect thereof has been reduced to less than
10% of the sum of the Group I, Group II, Group III, Group IV, Group V, Group VI
and Group VII Cut-off Date Balance. The Majority Certificateholder shall have
the option to purchase the assets of the Trust related to Loan Group I, Loan
Group II, Loan Group III, Loan Group IV and Loan Group V and thereby redeem the
Class I-A, Class II-A, Class III-A, Class IV-A, Class V-A and Class M Notes on
or after the Payment Date on which the Stated Principal Balance of the related
Mortgage Loans, and properties acquired in respect thereof has been reduced to
less than 10% of the sum of the Group I, Group II, Group III, Group IV and Group
V Cut-off Date Balance.]

         [For Class VI Notes] [The Majority Certificateholder shall have the
option to purchase the assets of the Trust related to Loan Group I, Loan Group
II, Loan Group III, Loan Group IV, Loan Group V and Loan Group VI and thereby
redeem the Class I-A, Class II-A, Class III-A, Class IV-A, Class V-A, Class
VI-A, Class M, Class VI-M and Class VI-B Notes on or after the Payment Date on
which the Stated Principal Balance of the related Mortgage Loans, and properties
acquired in respect thereof has been reduced to less than 10% of the sum of the
Group I, Group II, Group III, Group IV, Group V and Group VI Cut-off Date
Balance. The Majority Certificateholder shall have the option to purchase the
assets of the Trust related to Loan Group I, Loan Group II, Loan Group III, Loan
Group IV, Loan Group V, Loan Group VI and Loan Group VII and thereby redeem the
Notes on or after the Payment Date on which the Stated Principal Balance of the
Mortgage Loans and HELOC Mortgage Loans, and properties acquired in respect
thereof has been reduced to less than 10% of the sum of the Group I, Group II,
Group III, Group IV, Group V, Group VI and Group VII Cut-off Date Balance. The
Majority Certificateholder shall have the option to purchase the assets of the
Trust related to Loan Group VI and thereby redeem the Class VI-A, Class VI-M and
Class VI-B Notes on or after the Payment Date on which the Stated Principal
Balance of the related Mortgage Loans, and properties acquired in respect
thereof has been reduced to less than 10% of the Group VI Cut-off Date Balance.]

         [For Class VII Notes] [The Majority Certificateholder shall have the
option to purchase the assets of the Trust related to Loan Group I, Loan Group
II, Loan Group III, Loan Group IV, Loan Group V, Loan Group VI and Loan Group
VII and thereby redeem the Notes on or after the

<PAGE>

Payment Date on which the Stated Principal Balance of the Mortgage Loans and
HELOC Mortgage Loans, and properties acquired in respect thereof has been
reduced to less than 10% of the sum of the Group I, Group II, Group III, Group
IV, Group V, Group VI and Group VII Cut-off Date Balance. The Majority
Certificateholder shall have the option to purchase the HELOC Mortgage Loans on
any Payment Date on or after the Payment Date on which the Note Principal
Balance of the Class VII-A Notes declines to 10% or less of the Note Principal
Balance of the Class VII-A Notes on the Closing Date. If the Majority
Certificateholder fails to exercise this right, the Insurer may purchase the
HELOC Mortgage Loans 60 days after the Payment Date on which the Note Principal
Balance of the Class VII-A Notes declines to 10% or less of the Note Principal
Balance of the Class VII-A Notes on the Closing Date.]

         The Issuer shall not be liable upon the indebtedness evidenced by the
Notes except to the extent of amounts available from the Trust Estate which
constitutes security for the payment of the Notes. The assets included in the
Trust Estate will be the sole source of payments on the Class [__-A-__] Notes,
and each Holder hereof, by its acceptance of this Note, agrees that (i) such
Note will be limited in right of payment to amounts available from the Trust
Estate as provided in the Indenture and (ii) such Holder shall have no recourse
to the Issuer, the Owner Trustee, the Indenture Trustee, the Depositor, the
Seller, the Master Servicers or any of their respective affiliates, or to the
assets of any of the foregoing entities, except the assets of the Issuer pledged
to secure the Class [__-A-__] Notes pursuant to the Indenture and the rights
conveyed to the Issuer under the Indenture.

         Any payment of principal or interest payable on this Note which is
punctually paid on the applicable Payment Date shall be paid to the Person in
whose name such Note is registered at the close of business on the Record Date
for such Payment Date by check mailed to such person's address as it appears in
the Note Register on such Record Date, except for the final installment of
principal and interest payable with respect to such Note, which shall be payable
as provided below. Notwithstanding the foregoing, upon written request with
appropriate instructions by the Holder of this Note delivered to the Indenture
Trustee at least five Business Days prior to the Record Date, any payment of
principal or interest, other than the final installment of principal or
interest, shall be made by wire transfer to an account in the United States
designated by such Holder. All reductions in the principal amount of a Note
effected by payments of principal made on any Payment Date shall be binding upon
all Holders of this Note and of any Note issued upon the registration of
transfer thereof or in exchange therefor or in lieu thereof, whether or not such
payment is noted on such Note. The final payment of this Note shall be payable
upon presentation and surrender thereof on or after the Payment Date thereof at
the Corporate Trust Office or the office or agency of the Issuer maintained by
it for such purpose pursuant to Section 3.02 of the Indenture.

         Subject to the foregoing provisions, each Note delivered under the
Indenture, upon registration of transfer of or in exchange for or in lieu of any
other Note, shall carry the right to unpaid principal and interest that were
carried by such other Note.

         If an Event of Default as defined in the Indenture shall occur and be
continuing with respect to the Notes, the Notes may become or be declared due
and payable in the manner and with the effect provided in the Indenture. If any
such acceleration of maturity occurs prior to the payment of the entire unpaid
Note Principal Balance of the Notes, the amount payable to the

<PAGE>

Holder of this Note will be equal to the sum of the unpaid Note Principal
Balance of this Note, together with accrued and unpaid interest thereon as
described in the Indenture. The Indenture provides that, notwithstanding the
acceleration of the maturity of the Notes, under certain circumstances specified
therein, all amounts collected as proceeds of the Trust Estate securing the
Notes or otherwise shall continue to be applied to payments of principal of and
interest on the Notes as if they had not been declared due and payable.

         The failure to pay any Unpaid Interest Shortfall at any time when funds
are not available to make such payment as provided in the Indenture shall not
constitute an Event of Default under the Indenture.

         The Holder of this Note or Beneficial Owner of any interest herein is
deemed to represent that either (1) it is not acquiring the Note with Plan
Assets or (2) (A) the acquisition, holding and transfer of a Note will not give
rise to a nonexempt prohibited transaction under Section 406 of ERISA or Section
4975 of the Code and (B) the Notes are rated investment grade or better and such
person believes that the Notes are properly treated as indebtedness without
substantial equity features for purposes of the DOL Regulations, and agrees to
so treat the Notes. Alternatively, regardless of the rating of the Notes, such
person may provide the Indenture Trustee and the Owner Trustee with an opinion
of counsel, which opinion of counsel will not be at the expense of the Issuer,
the Seller, any Underwriter, the Owner Trustee, the Indenture Trustee, the
Master Servicers or any successor servicer, which opines that the acquisition,
holding and transfer of such Note or interest therein is permissible under
applicable law, will not constitute or result in a non-exempt prohibited
transaction under ERISA or Section 4975 of the Code and will not subject the
Issuer, the Seller, the Depositor, any Underwriter, the Owner Trustee, the
Indenture Trustee, the Master Servicers or any successor servicer to any
obligation in addition to those undertaken in the Indenture.

         As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Note may be registered on the Note Register of
the Issuer. Upon surrender for registration of transfer of, or presentation of a
written instrument of transfer for, this Note at the office or agency designated
by the Issuer pursuant to the Indenture, accompanied by proper instruments of
assignment in form satisfactory to the Indenture Trustee, one or more new Notes
of any authorized denominations and of a like aggregate then outstanding Note
Principal Balance, will be issued to the designated transferee or transferees.

         Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture
Trustee may treat the Person in whose name this Note is registered as the owner
of such Note (i) on the applicable Record Date for the purpose of making
payments and interest of such Note, and (ii) on any other date for all other
purposes whatsoever, as the owner hereof, whether or not this Note be overdue,
and neither the Issuer, the Indenture Trustee nor any such agent of the Issuer
or the Indenture Trustee shall be affected by notice to the contrary.

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Notes under the Indenture at any
time by the Issuer and the Holders of a majority of each Class of Notes affected
thereby. The Indenture also contains provisions permitting the

<PAGE>

Holders of Notes representing not less than a majority of the aggregate Note
Principal Balance of the Notes, to waive any past Event of Default and its
consequences except an Event of Default (a) with respect to payment of principal
of or interest on any of the Notes, or (b) in respect of a covenant or provision
of the Indenture which cannot be modified or amended without the consent of the
Holder of each Note. Any such waiver by the Holder, at the time of the giving
thereof, of this Note (or any one or more predecessor Notes) shall bind the
Holder of every Note issued upon the registration of transfer hereof or in
exchange hereof or in lieu hereof, whether or not notation of such consent or
waiver is made upon such Note. The Indenture also permits the Issuer and the
Indenture Trustee, following prior notice to the Rating Agencies, to amend or
waive certain terms and conditions set forth in the Indenture without the
consent of the Holders of the Notes issued thereunder.

         Initially, the Notes will be registered in the name of Cede & Co. as
nominee of DTC, acting in its capacity as the Depository for the Notes. The
Notes will be delivered by the clearing agency in denominations as provided in
the Indenture and subject to certain limitations therein set forth. The Notes
are exchangeable for a like aggregate then outstanding Note Principal Balance of
Notes of different authorized denominations, as requested by the Holder
surrendering same.

         Unless the Certificate of Authentication hereon has been executed by
the Indenture Trustee by manual signature, this Note shall not be entitled to
any benefit under the Indenture, or be valid or obligatory for any purpose.

         Anything herein to the contrary notwithstanding, except as expressly
provided in the Basic Documents, neither the Owner Trustee in its individual
capacity, nor any of its respective partners, beneficiaries, agents, officers,
directors, employees, or successors or assigns, shall be personally liable for,
nor shall recourse be had to any of them for, the payment of principal of or
interest on, or performance of, or omission to perform, any of the covenants,
obligations or indemnifications contained in this Note, it being expressly
understood that said covenants, obligations and indemnifications have been made
solely by the Trust to the extent of the assets of the Trust. The holder of this
Note by the acceptance hereof agrees that, except as expressly provided in the
Basic Documents, the Holder shall have no claim against any of the foregoing for
any deficiency, loss or claim therefrom; provided, however, that nothing
contained herein shall be taken to prevent recourse to, and enforcement against,
the assets of the Trust Estate for any and all liabilities, obligations and
undertakings contained in this Note.

         AS PROVIDED IN THE INDENTURE, THIS NOTE AND THE INDENTURE CREATING THIS
NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.

<PAGE>

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly
executed by Wilmington Trust Company, not in its individual capacity but solely
as Owner Trustee.

Dated: December 21, 2004

                                             AMERICAN HOME MORTGAGE
                                             INVESTMENT TRUST 2004-4

                                             BY:  WILMINGTON TRUST COMPANY, not
                                                  in its individual capacity but
                                                  solely in itscapacity as Owner
                                                  Trustee

                                             By:  ______________________________
                                                  Authorized Signatory

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Class [__-A-__] Notes referred to in the within-mentioned
Indenture.

THE BANK OF NEW YORK, as Indenture Trustee

By:  ________________________
     Authorized Signatory

<PAGE>

                                  ABBREVIATIONS
                                  -------------

         The following abbreviations, when used in the inscription on the face
of the Note, shall be construed as though they were written out in full
according to applicable laws or regulations:

          TEN COM                       --      as tenants in common
          TEN ENT                       --      as tenants by the entireties
          JT TEN                        --      as  joint  tenants  with  right
                                                of  survivorship  and  not as
                                                tenants in common
      UNIF GIFT MIN ACT                 --      __________ Custodian
                                                ______________________________
                                                (Cust)                 (Minor)

                                                under Uniform Gifts to Minor Act
                                                _____________________
                                                                     (State)

     Additional abbreviations may also be used though not in the above list.

<PAGE>

                                   ASSIGNMENT
                                   ----------

  FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

     PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE:

  (Please print or typewrite name and address, including zip code, of assignee)

________________________________________________________________________________
the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints ________________________ attorney to transfer said Note on the
books kept for registration thereof, with full power of substitution in the
premises.

Dated:_____________________                  ___________________________________

Signature Guaranteed by_______________________________

         NOTICE: The signature(s) to this assignment must correspond with the
name as it appears upon the face of the within Note in every particular, without
alteration or enlargement or any change whatsoever. Signature(s) must be
guaranteed by a commercial bank or by a member firm of the New York Stock
Exchange or another national securities exchange. Notarized or witnessed
signatures are not acceptable.

<PAGE>

                                   EXHIBIT A-2
                              CLASS [__-M-__] NOTES

THIS NOTE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A, [CLASS M-1][ AND
CLASS M-2 NOTES] AS DESCRIBED IN THE INDENTURE.

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE INDENTURE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY NOTE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

THE HOLDER OF THIS NOTE OR BENEFICIAL OWNER OF ANY INTEREST HEREIN WILL BE
DEEMED TO REPRESENT TO ONE OF THE REPRESENTATIONS CONTAINED IN SECTION 4.15 OF
THE INDENTURE.

THIS NOTE IS A NON-RECOURSE OBLIGATION OF THE ISSUER, AND IS LIMITED IN RIGHT OF
PAYMENT TO AMOUNTS AVAILABLE FROM THE TRUST ESTATE AS PROVIDED IN THE INDENTURE
REFERRED TO BELOW. THE ISSUER IS NOT OTHERWISE PERSONALLY LIABLE FOR PAYMENTS ON
THIS NOTE.

PRINCIPAL OF THIS NOTE IS PAYABLE OVER TIME AS SET FORTH HEREIN. ACCORDINGLY,
THE OUTSTANDING PRINCIPAL OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT
SHOWN ON THE FACE HEREOF.

<PAGE>

                 AMERICAN HOME MORTGAGE INVESTMENT TRUST 2004-4
                      MORTGAGE-BACKED NOTES, SERIES 2004-4
                                 CLASS [__-M-__]

AGGREGATE NOTE PRINCIPAL                                NOTE INTEREST
BALANCE: $[______________]                              RATE: Adjustable Rate
INITIAL NOTE PRINCIPAL                                  NOTE NO.  1
BALANCE OF THIS NOTE: $[_____________]
PERCENTAGE INTEREST: 100%                               CUSIP NO:

         American Home Mortgage Investment Trust 2004-4 (the "Issuer"), a
Delaware statutory trust, for value received, hereby promises to pay to
[____________] or registered assigns, the principal sum of $[______________] in
monthly installments on the twenty-fifth day of each month or, if such day is
not a Business Day, the next succeeding Business Day (each a "Payment Date"),
commencing in January 2005 and ending on or before the Payment Date occurring in
[February 2045] (the "Final Scheduled Payment Date") and to pay interest on the
Note Principal Balance of this Note (this "Note") outstanding from time to time
as provided below.

         This Note is one of a duly authorized issue of the Issuer's
Mortgage-Backed Notes, Series 2004-4 (the "Notes"), issued under an Indenture
dated as of December [21], 2004 (the "Indenture"), between the Issuer and The
Bank of New York as indenture trustee (the "Indenture Trustee"), to which
Indenture and all indentures supplemental thereto reference is hereby made for a
statement of the respective rights thereunder of the Issuer, the Indenture
Trustee and the Holders of the Notes and the terms upon which the Notes are to
be authenticated and delivered. All terms used in this Note which are defined in
the Indenture shall have the meanings assigned to them in the Indenture.

         Payments of principal and interest on this Note will be made on each
Payment Date to the Noteholder of record as of the related Record Date. The
"Note Principal Balance" of a Note as of any date of determination is equal to
the initial Note Principal Balance thereof, reduced by the aggregate of all
amounts previously paid with respect to such Note on account of principal and
the aggregate amount of cumulative Realized Losses allocated to such Note on all
prior Payment Dates, and increased by any Subsequent Recoveries allocated to
such Note.

         The principal of, and interest on, this Note are due and payable as
described in the Indenture, in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts. All payments made by the Issuer with respect to this Note shall
be equal to this Note's pro rata share of the aggregate payments on all Class
[__-M-__] Notes as described above, and shall be applied as between interest and
principal as provided in the Indenture.

         All principal and interest accrued on the Notes, if not previously
paid, will become finally due and payable at the Final Scheduled Payment Date.

<PAGE>

         [For Class M Notes] [The Majority Certificateholder shall have the
option to purchase the assets of the Trust related to Loan Group I, Loan Group
II, Loan Group III, Loan Group IV, Loan Group V and Loan Group VI and thereby
redeem the Class I-A, Class II-A, Class III-A, Class IV-A, Class V-A, Class
VI-A, Class M, Class VI-M and Class VI-B Notes on or after the Payment Date on
which the Stated Principal Balance of the related Mortgage Loans, and properties
acquired in respect thereof has been reduced to less than 10% of the sum of the
Group I, Group II, Group III, Group IV, Group V and Group VI Cut-off Date
Balance. The Majority Certificateholder shall have the option to purchase the
assets of the Trust related to Loan Group I, Loan Group II, Loan Group III, Loan
Group IV, Loan Group V, Loan Group VI and Loan Group VII and thereby redeem the
Notes on or after the Payment Date on which the Stated Principal Balance of the
Mortgage Loans and HELOC Mortgage Loans, and properties acquired in respect
thereof has been reduced to less than 10% of the sum of the Group I, Group II,
Group III, Group IV, Group V, Group VI and Group VII Cut-off Date Balance. The
Majority Certificateholder shall have the option to purchase the assets of the
Trust related to Loan Group I, Loan Group II, Loan Group III, Loan Group IV and
Loan Group V and thereby redeem the Class I-A, Class II-A, Class III-A, Class
IV-A, Class V-A and Class M Notes on or after the Payment Date on which the
Stated Principal Balance of the related Mortgage Loans, and properties acquired
in respect thereof has been reduced to less than 10% of the sum of the Group I,
Group II, Group III, Group IV and Group V Cut-off Date Balance.]

         [For Class VI-M Notes] [The Majority Certificateholder shall have the
option to purchase the assets of the Trust related to Loan Group I, Loan Group
II, Loan Group III, Loan Group IV, Loan Group V and Loan Group VI and thereby
redeem the Class I-A, Class II-A, Class III-A, Class IV-A, Class V-A, Class
VI-A, Class M, Class VI-M and Class VI-B Notes on or after the Payment Date on
which the Stated Principal Balance of the related Mortgage Loans, and properties
acquired in respect thereof has been reduced to less than 10% of the sum of the
Group I, Group II, Group III, Group IV, Group V and Group VI Cut-off Date
Balance. The Majority Certificateholder shall have the option to purchase the
assets of the Trust related to Loan Group I, Loan Group II, Loan Group III, Loan
Group IV, Loan Group V, Loan Group VI and Loan Group VII and thereby redeem the
Notes on or after the Payment Date on which the Stated Principal Balance of the
Mortgage Loans and HELOC Mortgage Loans, and properties acquired in respect
thereof has been reduced to less than 10% of the sum of the Group I, Group II,
Group III, Group IV, Group V, Group VI and Group VII Cut-off Date Balance. The
Majority Certificateholder shall have the option to purchase the assets of the
Trust related to Loan Group VI and thereby redeem the Class VI-A, Class VI-M and
Class VI-B Notes on or after the Payment Date on which the Stated Principal
Balance of the related Mortgage Loans, and properties acquired in respect
thereof has been reduced to less than 10% of the Group VI Cut-off Date Balance.]

         The Issuer shall not be liable upon the indebtedness evidenced by the
Notes except to the extent of amounts available from the Trust Estate which
constitutes security for the payment of the Notes. The assets included in the
Trust Estate will be the sole source of payments on the Class [__-M-__] Notes,
and each Holder hereof, by its acceptance of this Note, agrees that (i) such
Note will be limited in right of payment to amounts available from the Trust
Estate as provided in the Indenture and (ii) such Holder shall have no recourse
to the Issuer, the Owner Trustee, the Indenture Trustee, the Depositor, the
Seller, the Master Servicer or any of their respective affiliates, or to the
assets of any of the foregoing entities, except the assets of the

<PAGE>

Issuer pledged to secure the Class [__-M-__] Notes pursuant to the Indenture and
the rights conveyed to the Issuer under the Indenture.

         Any payment of principal or interest payable on this Note which is
punctually paid on the applicable Payment Date shall be paid to the Person in
whose name such Note is registered at the close of business on the Record Date
for such Payment Date by check mailed to such person's address as it appears in
the Note Register on such Record Date, except for the final installment of
principal and interest payable with respect to such Note, which shall be payable
as provided below. Notwithstanding the foregoing, upon written request with
appropriate instructions by the Holder of this Note delivered to the Indenture
Trustee at least five Business Days prior to the Record Date, any payment of
principal or interest, other than the final installment of principal or
interest, shall be made by wire transfer to an account in the United States
designated by such Holder. All reductions in the principal amount of a Note
effected by payments of principal made on any Payment Date shall be binding upon
all Holders of this Note and of any note issued upon the registration of
transfer thereof or in exchange therefor or in lieu thereof, whether or not such
payment is noted on such Note. The final payment of this Note shall be payable
upon presentation and surrender thereof on or after the Payment Date thereof at
the Corporate Trust Office or the office or agency of the Issuer maintained by
it for such purpose pursuant to Section 3.02 of the Indenture.

         Subject to the foregoing provisions, each Note delivered under the
Indenture, upon registration of transfer of or in exchange for or in lieu of any
other Note, shall carry the right to unpaid principal and interest that were
carried by such other Note.

         If an Event of Default as defined in the Indenture shall occur and be
continuing with respect to the Notes, the Notes may become or be declared due
and payable in the manner and with the effect provided in the Indenture. If any
such acceleration of maturity occurs prior to the payment of the entire unpaid
Note Principal Balance of the Notes, the amount payable to the Holder of this
Note will be equal to the sum of the unpaid Note Principal Balance of this Note,
together with accrued and unpaid interest thereon as described in the Indenture.
The Indenture provides that, notwithstanding the acceleration of the maturity of
the Notes, under certain circumstances specified therein, all amounts collected
as proceeds of the Trust Estate securing the Notes or otherwise shall continue
to be applied to payments of principal of and interest on the Notes as if they
had not been declared due and payable.

         The failure to pay any Unpaid Interest Shortfall at any time when funds
are not available to make such payment as provided in the Indenture shall not
constitute an Event of Default under the Indenture.

         The Holder of this Note or Beneficial Owner of any interest herein is
deemed to represent that either (1) it is not acquiring the Note with Plan
Assets or (2) (A) the acquisition, holding and transfer of a Note will not give
rise to a nonexempt prohibited transaction under Section 406 of ERISA or Section
4975 of the Code and (B) the Notes are rated investment grade or better and such
person believes that the Notes are properly treated as indebtedness without
substantial equity features for purposes of the DOL Regulations, and agrees to
so treat the Notes. Alternatively, regardless of the rating of the Notes, such
person may provide the Indenture Trustee and the Owner Trustee with an opinion
of counsel, which opinion of counsel will not be

<PAGE>

at the expense of the Issuer, the Seller, any Underwriter, the Owner Trustee,
the Indenture Trustee, the Master Servicer or any successor servicer, which
opines that the acquisition, holding and transfer of such Note or interest
therein is permissible under applicable law, will not constitute or result in a
non-exempt prohibited transaction under ERISA or Section 4975 of the Code and
will not subject the Issuer, the Seller, the Depositor, any Underwriter, the
Owner Trustee, the Indenture Trustee, the Master Servicer or any successor
servicer to any obligation in addition to those undertaken in the Indenture.

         As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Note may be registered on the Note Register of
the Issuer. Upon surrender for registration of transfer of, or presentation of a
written instrument of transfer for, this Note at the office or agency designated
by the Issuer pursuant to the Indenture, accompanied by proper instruments of
assignment in form satisfactory to the Indenture Trustee, one or more new Notes
of any authorized denominations and of a like aggregate then outstanding Note
Principal Balance, will be issued to the designated transferee or transferees.

         Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture
Trustee may treat the Person in whose name this Note is registered as the owner
of such Note (i) on the applicable Record Date for the purpose of making
payments and interest of such Note, and (ii) on any other date for all other
purposes whatsoever, as the owner hereof, whether or not this Note be overdue,
and neither the Issuer, the Indenture Trustee nor any such agent of the Issuer
or the Indenture Trustee shall be affected by notice to the contrary.

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Notes under the Indenture at any
time by the Issuer and the Holders of a majority of each Class of Notes affected
thereby. The Indenture also contains provisions permitting the Holders of Notes
representing not less than a majority of the aggregate Note Principal Balance of
the Notes, to waive any past Event of Default and its consequences except an
Event of Default (a) with respect to payment of principal of or interest on any
of the Notes, or (b) in respect of a covenant or provision of the Indenture
which cannot be modified or amended without the consent of the Holder of each
Note. Any such waiver by the Holder, at the time of the giving thereof, of this
Note (or any one or more predecessor Notes) shall bind the Holder of every Note
issued upon the registration of transfer hereof or in exchange hereof or in lieu
hereof, whether or not notation of such consent or waiver is made upon such
Note. The Indenture also permits the Issuer and the Indenture Trustee, following
prior notice to the Rating Agencies, to amend or waive certain terms and
conditions set forth in the Indenture without the consent of the Holders of the
Notes issued thereunder.

         Initially, the Notes will be registered in the name of Cede & Co. as
nominee of DTC, acting in its capacity as the Depository for the Notes. The
Notes will be delivered by the clearing agency in denominations as provided in
the Indenture and subject to certain limitations therein set forth. The Notes
are exchangeable for a like aggregate then outstanding Note Principal Balance of
Notes of different authorized denominations, as requested by the Holder
surrendering same.

<PAGE>

         Unless the Certificate of Authentication hereon has been executed by
the Indenture Trustee by manual signature, this Note shall not be entitled to
any benefit under the Indenture, or be valid or obligatory for any purpose.

         Anything herein to the contrary notwithstanding, except as expressly
provided in the Basic Documents, neither the Owner Trustee in its individual
capacity, nor any of its respective partners, beneficiaries, agents, officers,
directors, employees, or successors or assigns, shall be personally liable for,
nor shall recourse be had to any of them for, the payment of principal of or
interest on, or performance of, or omission to perform, any of the covenants,
obligations or indemnifications contained in this Note, it being expressly
understood that said covenants, obligations and indemnifications have been made
solely by the Trust to the extent of the assets of the Trust. The holder of this
Note by the acceptance hereof agrees that, except as expressly provided in the
Basic Documents, the Holder shall have no claim against any of the foregoing for
any deficiency, loss or claim therefrom; provided, however, that nothing
contained herein shall be taken to prevent recourse to, and enforcement against,
the assets of the Trust Estate for any and all liabilities, obligations and
undertakings contained in this Note.

         AS PROVIDED IN THE INDENTURE, THIS NOTE AND THE INDENTURE CREATING THIS
NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.

<PAGE>

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly
executed by Wilmington Trust Company, not in its individual capacity but solely
as Owner Trustee.

Dated: December 21, 2004

                                             AMERICAN HOME MORTGAGE
                                             INVESTMENT TRUST 2004-4

                                             BY:  WILMINGTON TRUST COMPANY, not
                                                  in its individual capacity but
                                                  solely in itscapacity as Owner
                                                  Trustee

                                             By:  ______________________________
                                                  Authorized Signatory

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Class [__-M-__] Notes referred to in the within-mentioned
Indenture.

THE BANK OF NEW YORK, as Indenture Trustee

By:  ________________________
     Authorized Signatory

<PAGE>

                                  ABBREVIATIONS
                                  -------------

         The following abbreviations, when used in the inscription on the face
of the Note, shall be construed as though they were written out in full
according to applicable laws or regulations:

          TEN COM                       --      as tenants in common
          TEN ENT                       --      as tenants by the entireties
          JT TEN                        --      as  joint  tenants  with  right
                                                of  survivorship  and  not as
                                                tenants in common
      UNIF GIFT MIN ACT                 --      __________ Custodian
                                                ______________________________
                                                (Cust)                 (Minor)

                                                under Uniform Gifts to Minor Act
                                                _____________________
                                                                     (State)

     Additional abbreviations may also be used though not in the above list.

<PAGE>

                                   ASSIGNMENT
                                   ----------

  FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

     PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE:

  (Please print or typewrite name and address, including zip code, of assignee)

________________________________________________________________________________
the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints ________________________ attorney to transfer said Note on the
books kept for registration thereof, with full power of substitution in the
premises.

Dated:_____________________                  ___________________________________

Signature Guaranteed by_______________________________

         NOTICE: The signature(s) to this assignment must correspond with the
name as it appears upon the face of the within Note in every particular, without
alteration or enlargement or any change whatsoever. Signature(s) must be
guaranteed by a commercial bank or by a member firm of the New York Stock
Exchange or another national securities exchange. Notarized or witnessed
signatures are not acceptable.

<PAGE>

                                   EXHIBIT A-3
                              CLASS [VI-B-__] NOTES

THIS NOTE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS VI-A, CLASS VI-M [AND
CLASS VI-B-1 NOTES][AND CLASS VI-B-2 NOTES] AS DESCRIBED IN THE INDENTURE.

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE INDENTURE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY NOTE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

THE HOLDER OF THIS NOTE OR BENEFICIAL OWNER OF ANY INTEREST HEREIN WILL BE
DEEMED TO REPRESENT TO ONE OF THE REPRESENTATIONS CONTAINED IN SECTION 4.15 OF
THE INDENTURE.

THIS NOTE IS A NON-RECOURSE OBLIGATION OF THE ISSUER, AND IS LIMITED IN RIGHT OF
PAYMENT TO AMOUNTS AVAILABLE FROM THE TRUST ESTATE AS PROVIDED IN THE INDENTURE
REFERRED TO BELOW. THE ISSUER IS NOT OTHERWISE PERSONALLY LIABLE FOR PAYMENTS ON
THIS NOTE.

PRINCIPAL OF THIS NOTE IS PAYABLE OVER TIME AS SET FORTH HEREIN. ACCORDINGLY,
THE OUTSTANDING PRINCIPAL OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT
SHOWN ON THE FACE HEREOF.

<PAGE>

                 AMERICAN HOME MORTGAGE INVESTMENT TRUST 2004-4
                      MORTGAGE-BACKED NOTES, SERIES 2004-4
                                 CLASS [VI-B-__]

AGGREGATE NOTE PRINCIPAL                                 NOTE INTEREST
BALANCE: $[______________]                               RATE: Adjustable Rate
INITIAL NOTE PRINCIPAL                                   NOTE NO.  1
BALANCE OF THIS NOTE: $[_____________]
PERCENTAGE INTEREST: 100%                                CUSIP NO:

         American Home Mortgage Investment Trust 2004-4 (the "Issuer"), a
Delaware statutory trust, for value received, hereby promises to pay to
[____________] or registered assigns, the principal sum of $[______________] in
monthly installments on the twenty-fifth day of each month or, if such day is
not a Business Day, the next succeeding Business Day (each a "Payment Date"),
commencing in January 2005 and ending on or before the Payment Date occurring in
[February 2045] (the "Final Scheduled Payment Date") and to pay interest on the
Note Principal Balance of this Note (this "Note") outstanding from time to time
as provided below.

         This Note is one of a duly authorized issue of the Issuer's
Mortgage-Backed Notes, Series 2004-4 (the "Notes"), issued under an Indenture
dated as of December [21], 2004 (the "Indenture"), between the Issuer and The
Bank of New York as indenture trustee (the "Indenture Trustee"), to which
Indenture and all indentures supplemental thereto reference is hereby made for a
statement of the respective rights thereunder of the Issuer, the Indenture
Trustee and the Holders of the Notes and the terms upon which the Notes are to
be authenticated and delivered. All terms used in this Note which are defined in
the Indenture shall have the meanings assigned to them in the Indenture.

         Payments of principal and interest on this Note will be made on each
Payment Date to the Noteholder of record as of the related Record Date. The
"Note Principal Balance" of a Note as of any date of determination is equal to
the initial Note Principal Balance thereof, reduced by the aggregate of all
amounts previously paid with respect to such Note on account of principal and
the aggregate amount of cumulative Realized Losses allocated to such Note on all
prior Payment Dates, and increased by any Subsequent Recoveries allocated to
such Note.

         The principal of, and interest on, this Note are due and payable as
described in the Indenture, in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts. All payments made by the Issuer with respect to this Note shall
be equal to this Note's pro rata share of the aggregate payments on all Class
[__-M-__] Notes as described above, and shall be applied as between interest and
principal as provided in the Indenture.

         All principal and interest accrued on the Notes, if not previously
paid, will become finally due and payable at the Final Scheduled Payment Date.

<PAGE>

           The Majority Certificateholder shall have the option to purchase the
assets of the Trust related to Loan Group I, Loan Group II, Loan Group III, Loan
Group IV, Loan Group V and Loan Group VI and thereby redeem the Class I-A, Class
II-A, Class III-A, Class IV-A, Class V-A, Class VI-A, Class M, Class VI-M and
Class VI-B Notes on or after the Payment Date on which the Stated Principal
Balance of the related Mortgage Loans, and properties acquired in respect
thereof has been reduced to less than 10% of the sum of the Group I, Group II,
Group III, Group IV, Group V and Group VI Cut-off Date Balance. The Majority
Certificateholder shall have the option to purchase the assets of the Trust
related to Loan Group I, Loan Group II, Loan Group III, Loan Group IV, Loan
Group V, Loan Group VI and Loan Group VII and thereby redeem the Notes on or
after the Payment Date on which the Stated Principal Balance of the Mortgage
Loans and HELOC Mortgage Loans, and properties acquired in respect thereof has
been reduced to less than 10% of the sum of the Group I, Group II, Group III,
Group IV, Group V, Group VI and Group VII Cut-off Date Balance. The Majority
Certificateholder shall have the option to purchase the assets of the Trust
related to Loan Group VI and thereby redeem the Class VI-A, Class VI-M and Class
VI-B Notes on or after the Payment Date on which the Stated Principal Balance of
the related Mortgage Loans, and properties acquired in respect thereof has been
reduced to less than 10% of the Group VI Cut-off Date Balance.

         The Issuer shall not be liable upon the indebtedness evidenced by the
Notes except to the extent of amounts available from the Trust Estate which
constitutes security for the payment of the Notes. The assets included in the
Trust Estate will be the sole source of payments on the Class [__-M-__] Notes,
and each Holder hereof, by its acceptance of this Note, agrees that (i) such
Note will be limited in right of payment to amounts available from the Trust
Estate as provided in the Indenture and (ii) such Holder shall have no recourse
to the Issuer, the Owner Trustee, the Indenture Trustee, the Depositor, the
Seller, the Master Servicer or any of their respective affiliates, or to the
assets of any of the foregoing entities, except the assets of the Issuer pledged
to secure the Class [__-M-__] Notes pursuant to the Indenture and the rights
conveyed to the Issuer under the Indenture.

         Any payment of principal or interest payable on this Note which is
punctually paid on the applicable Payment Date shall be paid to the Person in
whose name such Note is registered at the close of business on the Record Date
for such Payment Date by check mailed to such person's address as it appears in
the Note Register on such Record Date, except for the final installment of
principal and interest payable with respect to such Note, which shall be payable
as provided below. Notwithstanding the foregoing, upon written request with
appropriate instructions by the Holder of this Note delivered to the Indenture
Trustee at least five Business Days prior to the Record Date, any payment of
principal or interest, other than the final installment of principal or
interest, shall be made by wire transfer to an account in the United States
designated by such Holder. All reductions in the principal amount of a Note
effected by payments of principal made on any Payment Date shall be binding upon
all Holders of this Note and of any note issued upon the registration of
transfer thereof or in exchange therefor or in lieu thereof, whether or not such
payment is noted on such Note. The final payment of this Note shall be payable
upon presentation and surrender thereof on or after the Payment Date thereof at
the Corporate Trust Office or the office or agency of the Issuer maintained by
it for such purpose pursuant to Section 3.02 of the Indenture.

<PAGE>

         Subject to the foregoing provisions, each Note delivered under the
Indenture, upon registration of transfer of or in exchange for or in lieu of any
other Note, shall carry the right to unpaid principal and interest that were
carried by such other Note.

         If an Event of Default as defined in the Indenture shall occur and be
continuing with respect to the Notes, the Notes may become or be declared due
and payable in the manner and with the effect provided in the Indenture. If any
such acceleration of maturity occurs prior to the payment of the entire unpaid
Note Principal Balance of the Notes, the amount payable to the Holder of this
Note will be equal to the sum of the unpaid Note Principal Balance of this Note,
together with accrued and unpaid interest thereon as described in the Indenture.
The Indenture provides that, notwithstanding the acceleration of the maturity of
the Notes, under certain circumstances specified therein, all amounts collected
as proceeds of the Trust Estate securing the Notes or otherwise shall continue
to be applied to payments of principal of and interest on the Notes as if they
had not been declared due and payable.

         The failure to pay any Unpaid Interest Shortfall at any time when funds
are not available to make such payment as provided in the Indenture shall not
constitute an Event of Default under the Indenture.

         The Holder of this Note or Beneficial Owner of any interest herein is
deemed to represent that either (1) it is not acquiring the Note with Plan
Assets or (2) (A) the acquisition, holding and transfer of a Note will not give
rise to a nonexempt prohibited transaction under Section 406 of ERISA or Section
4975 of the Code and (B) the Notes are rated investment grade or better and such
person believes that the Notes are properly treated as indebtedness without
substantial equity features for purposes of the DOL Regulations, and agrees to
so treat the Notes. Alternatively, regardless of the rating of the Notes, such
person may provide the Indenture Trustee and the Owner Trustee with an opinion
of counsel, which opinion of counsel will not be at the expense of the Issuer,
the Seller, any Underwriter, the Owner Trustee, the Indenture Trustee, the
Master Servicer or any successor servicer, which opines that the acquisition,
holding and transfer of such Note or interest therein is permissible under
applicable law, will not constitute or result in a non-exempt prohibited
transaction under ERISA or Section 4975 of the Code and will not subject the
Issuer, the Seller, the Depositor, any Underwriter, the Owner Trustee, the
Indenture Trustee, the Master Servicer or any successor servicer to any
obligation in addition to those undertaken in the Indenture.

         As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Note may be registered on the Note Register of
the Issuer. Upon surrender for registration of transfer of, or presentation of a
written instrument of transfer for, this Note at the office or agency designated
by the Issuer pursuant to the Indenture, accompanied by proper instruments of
assignment in form satisfactory to the Indenture Trustee, one or more new Notes
of any authorized denominations and of a like aggregate then outstanding Note
Principal Balance, will be issued to the designated transferee or transferees.

         Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture
Trustee may treat the Person in whose name this Note is registered as the owner
of such Note (i) on the applicable Record Date for the purpose of making
payments and interest of such Note, and (ii) on any other date for all

<PAGE>

other purposes whatsoever, as the owner hereof, whether or not this Note be
overdue, and neither the Issuer, the Indenture Trustee nor any such agent of the
Issuer or the Indenture Trustee shall be affected by notice to the contrary.

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Notes under the Indenture at any
time by the Issuer and the Holders of a majority of each Class of Notes affected
thereby. The Indenture also contains provisions permitting the Holders of Notes
representing not less than a majority of the aggregate Note Principal Balance of
the Notes, to waive any past Event of Default and its consequences except an
Event of Default (a) with respect to payment of principal of or interest on any
of the Notes, or (b) in respect of a covenant or provision of the Indenture
which cannot be modified or amended without the consent of the Holder of each
Note. Any such waiver by the Holder, at the time of the giving thereof, of this
Note (or any one or more predecessor Notes) shall bind the Holder of every Note
issued upon the registration of transfer hereof or in exchange hereof or in lieu
hereof, whether or not notation of such consent or waiver is made upon such
Note. The Indenture also permits the Issuer and the Indenture Trustee, following
prior notice to the Rating Agencies, to amend or waive certain terms and
conditions set forth in the Indenture without the consent of the Holders of the
Notes issued thereunder.

         Initially, the Notes will be registered in the name of Cede & Co. as
nominee of DTC, acting in its capacity as the Depository for the Notes. The
Notes will be delivered by the clearing agency in denominations as provided in
the Indenture and subject to certain limitations therein set forth. The Notes
are exchangeable for a like aggregate then outstanding Note Principal Balance of
Notes of different authorized denominations, as requested by the Holder
surrendering same.

         Unless the Certificate of Authentication hereon has been executed by
the Indenture Trustee by manual signature, this Note shall not be entitled to
any benefit under the Indenture, or be valid or obligatory for any purpose.

         Anything herein to the contrary notwithstanding, except as expressly
provided in the Basic Documents, neither the Owner Trustee in its individual
capacity, nor any of its respective partners, beneficiaries, agents, officers,
directors, employees, or successors or assigns, shall be personally liable for,
nor shall recourse be had to any of them for, the payment of principal of or
interest on, or performance of, or omission to perform, any of the covenants,
obligations or indemnifications contained in this Note, it being expressly
understood that said covenants, obligations and indemnifications have been made
solely by the Trust to the extent of the assets of the Trust. The holder of this
Note by the acceptance hereof agrees that, except as expressly provided in the
Basic Documents, the Holder shall have no claim against any of the foregoing for
any deficiency, loss or claim therefrom; provided, however, that nothing
contained herein shall be taken to prevent recourse to, and enforcement against,
the assets of the Trust Estate for any and all liabilities, obligations and
undertakings contained in this Note.

         AS PROVIDED IN THE INDENTURE, THIS NOTE AND THE INDENTURE CREATING THIS
NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH, AND

<PAGE>

GOVERNED BY, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND
TO BE PERFORMED THEREIN.

<PAGE>

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly
executed by Wilmington Trust Company, not in its individual capacity but solely
as Owner Trustee.

Dated: December [21], 2004

                                             AMERICAN HOME MORTGAGE
                                             INVESTMENT TRUST 2004-4

                                             BY:  WILMINGTON TRUST COMPANY, not
                                                  in its individual capacity but
                                                  solely in itscapacity as Owner
                                                  Trustee

                                             By:  ______________________________
                                                  Authorized Signatory

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Class [VI-B-__] Notes referred to in the within-mentioned
Indenture.

THE BANK OF NEW YORK , as Indenture Trustee

By:  __________________________
     Authorized Signatory

<PAGE>

                                  ABBREVIATIONS
                                  -------------

         The following abbreviations, when used in the inscription on the face
of the Note, shall be construed as though they were written out in full
according to applicable laws or regulations:

          TEN COM                       --      as tenants in common
          TEN ENT                       --      as tenants by the entireties
          JT TEN                        --      as  joint  tenants  with  right
                                                of  survivorship  and  not as
                                                tenants in common
      UNIF GIFT MIN ACT                 --      __________ Custodian
                                                ______________________________
                                                (Cust)                 (Minor)

                                                under Uniform Gifts to Minor Act
                                                _____________________
                                                                     (State)

     Additional abbreviations may also be used though not in the above list.

<PAGE>

                                   ASSIGNMENT
                                   ----------

  FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

     PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE:

  (Please print or typewrite name and address, including zip code, of assignee)

________________________________________________________________________________
the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints ________________________ attorney to transfer said Note on the
books kept for registration thereof, with full power of substitution in the
premises.

Dated:_____________________                  ___________________________________

Signature Guaranteed by_______________________________

         NOTICE: The signature(s) to this assignment must correspond with the
name as it appears upon the face of the within Note in every particular, without
alteration or enlargement or any change whatsoever. Signature(s) must be
guaranteed by a commercial bank or by a member firm of the New York Stock
Exchange or another national securities exchange. Notarized or witnessed
signatures are not acceptable.

<PAGE>

                                   EXHIBIT A-4

                               CLASS [__]-N NOTES

THIS NOTE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A AND CLASS M NOTES
AS DESCRIBED IN THE INDENTURE.

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE INDENTURE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY NOTE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

THE HOLDER OF THIS NOTE OR BENEFICIAL OWNER OF ANY INTEREST HEREIN WILL BE
DEEMED TO REPRESENT TO ONE OF THE REPRESENTATIONS CONTAINED IN SECTION 4.15 OF
THE INDENTURE.

THIS NOTE IS A NON-RECOURSE OBLIGATION OF THE ISSUER, AND IS LIMITED IN RIGHT OF
PAYMENT TO AMOUNTS AVAILABLE FROM THE TRUST ESTATE AS PROVIDED IN THE INDENTURE
REFERRED TO BELOW. THE ISSUER IS NOT OTHERWISE PERSONALLY LIABLE FOR PAYMENTS ON
THIS NOTE.

PRINCIPAL OF THIS NOTE IS PAYABLE OVER TIME AS SET FORTH HEREIN. ACCORDINGLY,
THE OUTSTANDING PRINCIPAL OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT
SHOWN ON THE FACE HEREOF.

<PAGE>

                 AMERICAN HOME MORTGAGE INVESTMENT TRUST 2004-4
                      MORTGAGE-BACKED NOTES, SERIES 2004-4
                                     CLASS N

AGGREGATE NOTE PRINCIPAL                             NOTE INTEREST
BALANCE: $[_______________]                          RATE: [5.500]%
INITIAL NOTE PRINCIPAL                               NOTE NO.  1
BALANCE OF THIS NOTE: $[_____________]
PERCENTAGE INTEREST: 100%                            CUSIP NO: [_____________]

         American Home Mortgage Investment Trust 2004-4 (the "Issuer"), a
Delaware statutory trust, for value received, hereby promises to pay to
[________] or registered assigns, the principal sum of $[_______________] in
monthly installments on the twenty-fifth day of each month or, if such day is
not a Business Day, the next succeeding Business Day (each a "Payment Date"),
commencing in January 2005 and ending on or before the Payment Date occurring in
[February 2045] (the "Final Scheduled Payment Date") and to pay interest on the
Note Principal Balance of this Note (this "Note") outstanding from time to time
as provided below.

         This Note is one of a duly authorized issue of the Issuer's
Mortgage-Backed Notes, Series 2004-4 (the "Notes"), issued under an Indenture
dated as of December [21],2004 (the "Indenture"), between the Issuer and The
Bank of New York, as indenture trustee (the "Indenture Trustee"), which term
includes any successor Indenture Trustee under the Indenture), to which
Indenture and all indentures supplemental thereto reference is hereby made for a
statement of the respective rights thereunder of the Issuer, the Indenture
Trustee and the Holders of the Notes and the terms upon which the Notes are to
be authenticated and delivered. All terms used in this Note which are defined in
the Indenture shall have the meanings assigned to them in the Indenture.

         To the extent of remaining related Net Monthly Excess Cashflow,
payments of principal and interest on this Note will be made on each Payment
Date to the Noteholder of record as of the related Record Date. The "Note
Principal Balance" of a Note as of any date of determination is equal to the
initial Note Principal Balance thereof, reduced by the aggregate of all amounts
previously paid with respect to such Note on account of principal.

         The principal of, and interest on, this Note are due and payable as
described in the Indenture, in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts. All payments made by the Issuer with respect to this Note shall
be equal to this Note's pro rata share of the aggregate payments on all Class N
Notes as described above, and shall be applied as between interest and principal
as provided in the Indenture.

         All principal and interest accrued on the Notes, if not previously
paid, will become finally due and payable at the Final Scheduled Payment Date.

<PAGE>

         The Notes are subject to redemption in whole, but not in part, by the
Holder of the Certificates, or, if there is no single Holder, the Majority
Certificateholder, on any Payment Date on or after the Payment Date on which the
aggregate Stated Principal Balance of the Mortgage Loans as of the end of the
prior Due Period is less than or equal to 10% of aggregate Stated Principal
Balance of the Mortgage Loans as of the Cut-off Date.

         The Issuer shall not be liable upon the indebtedness evidenced by the
Notes except to the extent of amounts available from the Trust Estate which
constitutes security for the payment of the Notes. The assets included in the
Trust Estate will be the sole source of payments on the Class N Notes, and each
Holder hereof, by its acceptance of this Note, agrees that (i) such Note will be
limited in right of payment to amounts available from the Trust Estate as
provided in the Indenture and (ii) such Holder shall have no recourse to the
Issuer, the Owner Trustee, the Indenture Trustee, the Depositor, the Seller, the
Master Servicers or any of their respective affiliates, or to the assets of any
of the foregoing entities, except the assets of the Issuer pledged to secure the
Class N Notes pursuant to the Indenture and the rights conveyed to the Issuer
under the Indenture.

         Any payment of principal or interest payable on this Note which is
punctually paid on the applicable Payment Date shall be paid to the Person in
whose name such Note is registered at the close of business on the Record Date
for such Payment Date by check mailed to such person's address as it appears in
the Note Register on such Record Date, except for the final installment of
principal and interest payable with respect to such Note, which shall be payable
as provided below. Notwithstanding the foregoing, upon written request with
appropriate instructions by the Holder of this Note delivered to the Indenture
Trustee at least five Business Days prior to the Record Date, any payment of
principal or interest, other than the final installment of principal or
interest, shall be made by wire transfer to an account in the United States
designated by such Holder. All reductions in the principal amount of a Note
effected by payments of principal made on any Payment Date shall be binding upon
all Holders of this Note and of any note issued upon the registration of
transfer thereof or in exchange therefor or in lieu thereof, whether or not such
payment is noted on such Note. The final payment of this Note shall be payable
upon presentation and surrender thereof on or after the Payment Date thereof at
the Corporate Trust Office or the office or agency of the Issuer maintained by
it for such purpose pursuant to Section 3.02 of the Indenture.

         Subject to the foregoing provisions, each Note delivered under the
Indenture, upon registration of transfer of or in exchange for or in lieu of any
other Note, shall carry the right to unpaid principal and interest that were
carried by such other Note.

         If an Event of Default as defined in the Indenture shall occur and be
continuing with respect to the Notes, the Notes may become or be declared due
and payable in the manner and with the effect provided in the Indenture. If any
such acceleration of maturity occurs prior to the payment of the entire unpaid
Note Principal Balance of the Notes, the amount payable to the Holder of this
Note will be equal to the sum of the unpaid Note Principal Balance of this Note,
together with accrued and unpaid interest thereon as described in the Indenture.
The Indenture provides that, notwithstanding the acceleration of the maturity of
the Notes, under certain circumstances specified therein, all amounts collected
as proceeds of the Trust Estate securing

<PAGE>

the Notes or otherwise shall continue to be applied to payments of principal of
and interest on the Notes as if they had not been declared due and payable.

         The failure to pay any Unpaid Interest Shortfall at any time when funds
are not available to make such payment as provided in the Indenture, and the
failure to pay Accrued Note Interest on the Class N Notes, shall not constitute
an Event of Default under the Indenture.

         The Holder of this Note or Beneficial Owner of any interest herein is
deemed to represent that either (1) it is not acquiring the Note with Plan
Assets or (2) (A) the acquisition, holding and transfer of a Note will not give
rise to a nonexempt prohibited transaction under Section 406 of ERISA or Section
4975 of the Code and (B) the Notes are rated investment grade or better and such
person believes that the Notes are properly treated as indebtedness without
substantial equity features for purposes of the DOL Regulations, and agrees to
so treat the Notes. Alternatively, regardless of the rating of the Notes, such
person may provide the Indenture Trustee and the Owner Trustee with an opinion
of counsel, which opinion of counsel will not be at the expense of the Issuer,
the Seller, any Underwriter, the Owner Trustee, the Indenture Trustee, the
Master Servicers or any successor servicer, which opines that the acquisition,
holding and transfer of such Note or interest therein is permissible under
applicable law, will not constitute or result in a non-exempt prohibited
transaction under ERISA or Section 4975 of the Code and will not subject the
Issuer, the Seller, the Depositor, any Underwriter, the Owner Trustee, the
Indenture Trustee, the Master Servicers or any successor servicer to any
obligation in addition to those undertaken in the Indenture.

         As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Note may be registered on the Note Register of
the Issuer. Upon surrender for registration of transfer of, or presentation of a
written instrument of transfer for, this Note at the office or agency designated
by the Issuer pursuant to the Indenture, accompanied by proper instruments of
assignment in form satisfactory to the Indenture Trustee, one or more new Notes
of any authorized denominations and of a like aggregate then outstanding Note
Principal Balance, will be issued to the designated transferee or transferees.

         Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture
Trustee may treat the Person in whose name this Note is registered as the owner
of such Note (i) on the applicable Record Date for the purpose of making
payments and interest of such Note, and (ii) on any other date for all other
purposes whatsoever, as the owner hereof, whether or not this Note be overdue,
and neither the Issuer, the Indenture Trustee nor any such agent of the Issuer
or the Indenture Trustee shall be affected by notice to the contrary.

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Notes under the Indenture at any
time by the Issuer and the Holders of a majority of each Class of Notes affected
thereby. The Indenture also contains provisions permitting the Holders of Notes
representing not less than a majority of the aggregate Note Principal Balance of
the Notes, to waive any past Event of Default and its consequences except an
Event of Default (a) with respect to payment of principal of or interest on any
of the Notes, or (b) in respect of a covenant or provision of the Indenture
which cannot be modified or amended without the

<PAGE>

consent of the Holder of each Note. Any such waiver by the Holder, at the time
of the giving thereof, of this Note (or any one or more predecessor Notes) shall
bind the Holder of every Note issued upon the registration of transfer hereof or
in exchange hereof or in lieu hereof, whether or not notation of such consent or
waiver is made upon such Note. The Indenture also permits the Issuer and the
Indenture Trustee, following prior notice to the Rating Agencies, to amend or
waive certain terms and conditions set forth in the Indenture without the
consent of the Holders of the Notes issued thereunder.

         Initially, the Notes will be registered in the name of Cede & Co. as
nominee of DTC, acting in its capacity as the Depository for the Notes. The
Notes will be delivered by the clearing agency in denominations as provided in
the Indenture and subject to certain limitations therein set forth. The Notes
are exchangeable for a like aggregate then outstanding Note Principal Balance of
Notes of different authorized denominations, as requested by the Holder
surrendering same.

         Unless the Certificate of Authentication hereon has been executed by
the Indenture Trustee by manual signature, this Note shall not be entitled to
any benefit under the Indenture, or be valid or obligatory for any purpose.

         Anything herein to the contrary notwithstanding, except as expressly
provided in the Basic Documents, neither the Owner Trustee in its individual
capacity, nor any of its respective partners, beneficiaries, agents, officers,
directors, employees, or successors or assigns, shall be personally liable for,
nor shall recourse be had to any of them for, the payment of principal of or
interest on, or performance of, or omission to perform, any of the covenants,
obligations or indemnifications contained in this Note, it being expressly
understood that said covenants, obligations and indemnifications have been made
solely by the Trust to the extent of the assets of the Trust. The holder of this
Note by the acceptance hereof agrees that, except as expressly provided in the
Basic Documents, the Holder shall have no claim against any of the foregoing for
any deficiency, loss or claim therefrom; provided, however, that nothing
contained herein shall be taken to prevent recourse to, and enforcement against,
the assets of the Trust Estate for any and all liabilities, obligations and
undertakings contained in this Note.

         AS PROVIDED IN THE INDENTURE, THIS NOTE AND THE INDENTURE CREATING THIS
NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.

<PAGE>

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly
executed by Wilmington Trust Company, not in its individual capacity but solely
as Owner Trustee.

Dated: December [21], 2004

                                             AMERICAN HOME MORTGAGE
                                             INVESTMENT TRUST 2004-4

                                             BY:  WILMINGTON TRUST COMPANY, not
                                                  in its individual capacity but
                                                  solely in itscapacity as Owner
                                                  Trustee

                                             By:  ______________________________
                                                  Authorized Signatory

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Class N Notes referred to in the within-mentioned Indenture.

THE BANK OF NEW YORK, as Indenture Trustee

By:  __________________________
     Authorized Signatory

<PAGE>

                                  ABBREVIATIONS
                                  -------------

         The following abbreviations, when used in the inscription on the face
of the Note, shall be construed as though they were written out in full
according to applicable laws or regulations:

          TEN COM                       --      as tenants in common
          TEN ENT                       --      as tenants by the entireties
          JT TEN                        --      as  joint  tenants  with  right
                                                of  survivorship  and  not as
                                                tenants in common
      UNIF GIFT MIN ACT                 --      __________ Custodian
                                                ______________________________
                                                (Cust)                 (Minor)

                                                under Uniform Gifts to Minor Act
                                                _____________________
                                                                     (State)

     Additional abbreviations may also be used though not in the above list.

<PAGE>

                                    EXHIBIT B

                             MORTGAGE LOAN SCHEDULE

                                (FILED MANUALLY)

<PAGE>

                                    EXHIBIT C

                              FORM OF CAP CONTRACT

                             (Provided Upon Request)

<PAGE>

                                    EXHIBIT D

                            FORM OF CORRIDOR CONTRACT

                             (Provided Upon Request)

<PAGE>

                                    EXHIBIT E

                             FORM OF SWAP AGREEMENT

                             (Provided Upon Request)

<PAGE>

                                    EXHIBIT F

                               INSURANCE AGREEMENT

                     FORM OF NOTE GUARANTY INSURANCE POLICY

OBLIGATIONS:  $221,112,000                                 POLICY NUMBER: 45527
              American Home Mortgage Investment
              Trust 2004-4
              Class VII-A HELOC-backed Notes,
              Series 2004-4

         MBIA Insurance Corporation (the "Insurer"), in consideration of the
payment of the premium and subject to the terms of this Note Guaranty Insurance
Policy (this "Policy"), hereby unconditionally and irrevocably guarantees to any
Owner that an amount equal to each full and complete Insured Payment will be
received from the Insurer by The Bank of New York, or its successors, as
indenture trustee for the Owners (the "Trustee"), on behalf of the Owners, for
distribution by the Trustee to each Owner of each Owner's proportionate share of
the Insured Payment. The Insurer's obligations hereunder with respect to a
particular Insured Payment shall be discharged to the extent funds equal to the
applicable Insured Payment are received by the Trustee, whether or not such
funds are properly applied by the Trustee. Insured Payments shall be made only
at the time set forth in this Policy, and no accelerated Insured Payments shall
be made regardless of any acceleration of the Obligations, unless such
acceleration is at the sole option of the Insurer.

         Notwithstanding the foregoing paragraph, this Policy does not cover
shortfalls, if any, attributable to the liability of the Trust or the Trustee
for withholding taxes, if any (including interest and penalties in respect of
any such liability).

         The Insurer will pay any Insured Payment that is a Preference Amount on
the Business Day following receipt on a Business Day by the Fiscal Agent (as
described below) of (a) a certified copy of the order requiring the return of a
preference payment, (b) an opinion of counsel satisfactory to the Insurer that
such order is final and not subject to appeal, (c) an assignment in such form as
is reasonably required by the Insurer, irrevocably assigning to the Insurer all
rights and claims of the Owner relating to or arising under the Obligations
against the debtor which made such preference payment or otherwise with respect
to such preference payment and (d) appropriate instruments to effect the
appointment of the Insurer as agent for such Owner in any legal proceeding
related to such preference payment, such instruments being in a form
satisfactory to the Insurer, provided that if such documents are received after
12:00 noon, New York City time, on such Business Day, they will be deemed to be
received on the following Business Day. Such payments shall be disbursed to the
receiver or trustee in bankruptcy named in the final order of the court
exercising jurisdiction on behalf of the Owner and not to any Owner directly
unless such Owner has returned principal or interest paid on the Obligations to
such receiver or trustee in bankruptcy, in which case such payment shall be
disbursed to such Owner.

         The Insurer will pay any other amount payable hereunder no later than
12:00 noon, New York City time, on the later of the Payment Date on which the
related Deficiency Amount is due or the third Business Day following receipt in
New York, New York on a Business Day by

<PAGE>

U. S. Bank Trust National Association, as Fiscal Agent for the Insurer, or any
successor fiscal agent appointed by the Insurer (the "Fiscal Agent"), of a
Notice (as described below), provided that if such Notice is received after
12:00 noon, New York City time, on such Business Day, it will be deemed to be
received on the following Business Day. If any such Notice received by the
Fiscal Agent is not in proper form or is otherwise insufficient for the purpose
of making claim hereunder, it shall be deemed not to have been received by the
Fiscal Agent for purposes of this paragraph, and the Insurer or the Fiscal
Agent, as the case may be, shall promptly so advise the Trustee and the Trustee
may submit an amended Notice.

         Insured Payments due hereunder, unless otherwise stated herein, will be
disbursed by the Fiscal Agent to the Trustee on behalf of the Owners by wire
transfer of immediately available funds in the amount of the Insured Payment
less, in respect of Insured Payments related to Preference Amounts, any amount
held by the Trustee for the payment of such Insured Payment and legally
available therefor.

         The Fiscal Agent is the agent of the Insurer only, and the Fiscal Agent
shall in no event be liable to Owners for any acts of the Fiscal Agent or any
failure of the Insurer to deposit, or cause to be deposited, sufficient funds to
make payments due under this Policy.

         Subject to the terms of the Agreement, the Insurer shall be subrogated
to the rights of each Owner to receive payments under the Obligations to the
extent of any payment by the Insurer hereunder.

         As used herein, the following terms shall have the following meanings:

         "Agreement" means the Indenture dated as of December 21 between
American Home Mortgage Investment Trust 2004-4, as Issuer, and the Trustee, as
trustee, without regard to any amendment or supplement thereto, unless such
amendment or supplement has been approved in writing by the Insurer.

         "Business Day" means any day other than (a) a Saturday or a Sunday (b)
a day on which the Insurer is closed or (c) a day on which banking institutions
in New York City or in the city in which the corporate trust office of the
Trustee under the Agreement is located are authorized or obligated by law or
executive order to close.

         "Deficiency Amount" means, with respect to any Payment Date, the sum of
(i) the Guaranteed Interest Payment on the Obligations, excluding any Relief Act
Shortfalls, Basis Risk Shortfall or Basis Risk Shortfall Carry-Forward Amount
for such Payment Date, and (ii) the Guaranteed Principal Payment Amount.

         "Guaranteed Interest Payment" means for any Payment Date, an amount
equal to the amount by which (a) accrued and unpaid interest for payment on the
Obligations, excluding any Relief Act Shortfalls at the Note Interest Rate
relating to the Obligations, exceeds (b) the amount available for interest
distributions on the Obligations on such Payment Date.

         "Guaranteed Principal Payment Amount" means with respect to any Payment
Date other than the Payment Date in September 2030, the excess, if any, by which
(a) the Note Principal Balance relating to the Obligations (after giving effect
to all payments of principal on the

<PAGE>

Obligations on such Payment Date, but without giving effect to payments under
the Policy to be made on such Payment Date) exceeds (b) the Invested Amount as
of the end of the related Due Period or, with respect to the Payment Date in
September 2030, the Note Principal Balance relating to the Obligations after
giving effect to all other distributions of principal of the Class VII-A Notes
on such Payment Date.

         "Insured Payment" means (a) as of any Payment Date, any Deficiency
Amount and (b) any Preference Amount.

         "Notice" means the telephonic or telegraphic notice, promptly confirmed
in writing by facsimile substantially in the form of Exhibit A attached hereto,
the original of which is subsequently delivered by registered or certified mail,
from the Trustee specifying the Insured Payment which shall be due and owing on
the applicable Payment Date.

         "Owner" means each Class VII-A Noteholder (as defined in the
Agreement), other than the Depositor or the Master Servicer, who, on the
applicable Payment Date, is entitled under the terms of the applicable Class
VII-A Notes to payment thereunder.

         "Preference Amount" means any amount previously distributed to an Owner
on the Obligations that is recoverable and sought to be recovered as a voidable
preference by a trustee in bankruptcy pursuant to the United States Bankruptcy
Code (11 U.S.C.), as amended from time to time in accordance with a final
nonappealable order of a court having competent jurisdiction.

         Capitalized terms used herein and not otherwise defined herein shall
have the respective meanings set forth in the Agreement as of the date of
execution of this Policy, without giving effect to any subsequent amendment to
or modification of the Agreement unless such amendment or modification has been
approved in writing by the Insurer.

         Any notice hereunder or service of process on the Fiscal Agent may be
made at the address listed below for the Fiscal Agent or such other address as
the Insurer shall specify in writing to the Trustee.

         The notice address of the Fiscal Agent is 15th Floor, 61 Broadway, New
York, New York 10006, Attention: Municipal Registrar and Paying Agency, or such
other address as the Fiscal Agent shall specify to the Trustee in writing.

         THIS POLICY IS BEING ISSUED UNDER AND PURSUANT TO, AND SHALL BE
CONSTRUED UNDER, THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE
CONFLICT OF LAWS PRINCIPLES THEREOF.

         The insurance provided by this Policy is not covered by the
Property/Casualty Insurance Security Fund specified in Article 76 of the New
York Insurance Law.

         This Policy is not cancelable for any reason. The premium on this
Policy is not refundable for any reason, including payment, or provision being
made for payment, prior to maturity of the Obligations.

<PAGE>

         IN WITNESS WHEREOF, the Insurer has caused this Policy to be executed
and attested this 21st day of December, 2004.

                                                   MBIA INSURANCE CORPORATION

                                                   By___________________________
                                                   Title________________________

Attest:

By _______________________________
   Secretary

<PAGE>

                                    EXHIBIT A

                           TO NOTE GUARANTY INSURANCE
                              POLICY NUMBER: 45527

                           NOTICE UNDER NOTE GUARANTY
                         INSURANCE POLICY NUMBER: 45527

U. S. Bank Trust National Association, as Fiscal Agent
   for MBIA Insurance Corporation
15th Floor
61 Broadway
New York, NY  10006
Attention:  Municipal Registrar and
   Paying Agency

MBIA Insurance Corporation
113 King Street
Armonk, NY  10504

         The undersigned, a duly authorized officer of The Bank of New York, as
indenture trustee (the "Trustee"), hereby certifies to U. S. Bank Trust National
Association (the "Fiscal Agent") and MBIA Insurance Corporation (the "Insurer"),
with reference to Note Guaranty Insurance Policy Number: 45527 (the "Policy")
issued by the Insurer in respect of the $221,112,000 American Home Mortgage
Investment Trust 2004-4, Class VII-A HELOC-backed Notes, Series 2004-4 (the
"Obligations"), that:

         (a)      Trustee is the indenture trustee under the Indenture dated as
of December 21, 2004 between American Home Mortgage Investment Trust 2004-4, as
Issuer, and the Trustee, as indenture trustee for the Owners;

         (b)      the amount due under clause (i) of the definition of
Deficiency Amount for the Payment Date occurring on [ ] (the "Applicable Payment
Date") is $[ ];

         (c)      the amount due under clause (ii) of the definition of
Deficiency Amount for the Applicable Payment Date is $[ ];

         (d)      the sum of the amounts listed in paragraphs (b) and (c) above
is $[ ] (the "Deficiency Amount");

         (e)      the amount of previously distributed payments on the
Obligations that is recoverable and sought to be recovered as a voidable
preference by a trustee in bankruptcy pursuant to the Bankruptcy Code in
accordance with a final nonappealable order of a court having competent
jurisdiction is $[ ] (the "Preference Amount");

         (f)      the total Insured Payment due is $[ ], which amount equals the
sum of the Deficiency Amount and the Preference Amount;

         (g)      the Trustee is making a claim under and pursuant to the terms
of the Policy for the dollar amount of the Insured Payment set forth in (d)
above to be applied to the payment of the Deficiency

<PAGE>

Amount for the Applicable Payment Date in accordance with the Agreement and for
the dollar amount of the Insured Payment set forth in (e) above to be applied to
the payment of any Preference Amount; and

         (h)      the Trustee directs that payment of the Insured Payment be
made to the following account by bank wire transfer of federal or other
immediately available funds in accordance with the terms of the Policy:
[TRUSTEE'S ACCOUNT NUMBER].

         Any capitalized term used in this Notice and not otherwise defined
herein shall have the meaning assigned thereto in the Policy.

         Any Person Who Knowingly And With Intent To Defraud Any Insurance
Company Or Other Person Files An Application For Insurance Or Statement Of Claim
Containing Any Materially False Information, Or Conceals For The Purpose Of
Misleading, Information Concerning Any Fact Material Thereto, Commits A
Fraudulent Insurance Act, Which Is A Crime, And Shall Also Be Subject To A Civil
Penalty Not To Exceed Five Thousand Dollars And The Stated Value Of The Claim
For Each Such Violation.

         IN WITNESS WHEREOF, the Trustee has executed and delivered this Notice
under the Policy as of the [ ] day of [ ], [ ].

                                              THE BANK OF NEW YORK, as Trustee

                                              By_______________________________
                                              Title____________________________

<PAGE>

                                    EXHIBIT G

                     FORM OF SUBSEQUENT TRANSFER INSTRUMENT

         Pursuant to this Subsequent Transfer Instrument, dated December [__],
2004 (the "Instrument"), between American Home Mortgage Securities LLC as seller
(the "Company"), and The Bank of New York, as indenture trustee of the American
Home Mortgage Investment Trust 2004-4, Mortgage-Backed Notes, Series 2004-4,
(the "Indenture Trustee"), on behalf of American Home Mortgage Investment Trust
2004-4 (the "Issuer"), as purchaser, and pursuant to the Indenture, dated as of
December 21, 2004 (the "Indenture"), between the Issuer and the Indenture
Trustee, as indenture trustee, the Company and the Indenture Trustee agree to
the sale by the Company and the purchase by the Indenture Trustee in trust, on
behalf of the Trust, of the Group [__] Subsequent Mortgage Loans on the attached
Schedule 1 of Mortgage Loans (the "Group [__] Subsequent Mortgage Loans").

         Capitalized terms used but not otherwise defined herein shall have the
meanings set forth in the Indenture.

         Section 1. Conveyance of Group [__] Subsequent Mortgage Loans;
Acceptance of Mortgage Loans by the Indenture Trustee.

         (a)      The Company does hereby sell, transfer, assign, set over and
convey to the Indenture Trustee in trust, on behalf of the Trust, without
recourse, all of its right, title and interest in and to the Group [__]
Subsequent Mortgage Loans, including all amounts due on the Group [__]
Subsequent Mortgage Loans after the related Subsequent Cut-off Date, and all
items with respect to the Group I Subsequent Mortgage Loans to be delivered
pursuant to Section 2. [__] of the Indenture; provided, however that the Company
reserves and retains all right, title and interest in and to amounts due on the
Group [__] Subsequent Mortgage Loans on or prior to the related Subsequent
Cut-off Date. The Company, contemporaneously with the delivery of this
Agreement, has delivered or caused to be delivered to the Indenture Trustee each
item set forth in Section 2.[__]of the Indenture. The transfer to the Indenture
Trustee by the Company of the Group [__] Subsequent Mortgage Loans identified on
the Mortgage Loan Schedule shall be absolute and is intended by the Company, the
[RMBS][HELOC] Master Servicer, the Indenture Trustee and the Noteholders to
constitute and to be treated as a sale by the Company to the Trust Fund.

         (b)      The Company, concurrently with the execution and delivery
hereof, does hereby transfer, assign, set over and otherwise convey to the
Indenture Trustee without recourse for the benefit of the Noteholders all the
right, title and interest of the Company, in, to and under the Subsequent
Mortgage Loan Purchase Agreement, dated December [__], 2004, between the
Company, as purchaser, and American Home Mortgage Acceptance Inc., as seller
(the "Purchase Agreement").

         (c)      The Indenture Trustee shall cause the Custodian as agent for
the Indenture Trustee to acknowledge receipt of, subject to the exceptions the
Custodian notes pursuant to the procedures described in Section 2.03 of the
Indenture, the documents (or certified copies thereof) referred to in Section
2.1(b) of the Subsequent Mortgage Loan Purchase Agreement, and

<PAGE>

declares that the Custodian hold and will continue to hold those documents and
any amendments, replacements or supplements thereto and all other assets of the
Trust Estate as agent for Indenture Trustee in trust for the use and benefit of
all present and future Holders of the Bonds.

         Additional terms of the sale are set forth on Attachment A hereto.

         Section 2. Representations and Warranties; Conditions Precedent.

         (a)      The Company hereby confirms that each of the conditions and
the representations and warranties set forth in Section 2.05 of the Indenture
are satisfied as of the date hereof.

         (b)      All terms and conditions of the Indenture are hereby ratified
and confirmed; provided, however, that in the event of any conflict, the
provisions of this Instrument shall control over the conflicting provisions of
the Indenture.

         Section 3. Recordation of Instrument.

         To the extent permitted by applicable law, this Instrument, or a
memorandum thereof if permitted under applicable law, is subject to recordation
in all appropriate public offices for real property records in all of the
counties or other comparable jurisdictions in which any or all of the properties
subject to the Mortgages are situated, and in any other appropriate public
recording office or elsewhere, such recordation to be effected by the
[RMBS][HELOC] Master Servicer at the Noteholders' expense on direction of the
related Noteholders, but only when accompanied by an Opinion of Counsel to the
effect that such recordation materially and beneficially affects the interests
of the Noteholders or is necessary for the administration or servicing of the
Group [__] Subsequent Mortgage Loans.

         Section 4. Governing Law.

         This Instrument shall be construed in accordance with the laws of the
State of New York and the obligations, rights and remedies of the parties
hereunder shall be determined in accordance with such laws, without giving
effect to principles of conflicts of law.

         Section 5. Counterparts.

         This Instrument may be executed in one or more counterparts and by the
different parties hereto on separate counterparts, each of which, when so
executed, shall be deemed to be an original; such counterparts, together, shall
constitute one and the same instrument.

         Section 6. Successors and Assigns.

         This Instrument shall inure to the benefit of and be binding upon the
Company and the Indenture Trustee and their respective successors and assigns.

<PAGE>

AMERICAN HOME MORTGAGE SECURITIES LLC,
as Seller

By:_______________________
Name:
Title:

THE BANK OF NEW YORK,
not in its individual capacity
but solely as Indenture Trustee for the Trust.

By:_______________________
Name:
Title:

<PAGE>

                                   EXHIBIT H

                                     FORM OF

                                 ADDITION NOTICE

                                                             [Date]
The Bank of New York
101 Barclay Street, 8E
New York, New York 10286

         RE:      Indenture, dated as of December 21, 2004, between American
                  Home Mortgage Investment Trust 2004-4, a Delaware business
                  trust, as Issuer (the "Issuer"), and The Bank of New York, as
                  Indenture Trustee (the "Indenture Trustee"), relating to
                  American Home Mortgage Investment Trust 2004-4,
                  Mortgage-Backed Notes, Series 2004-4, Group I, Group II, Group
                  III, Group IV, Group V, Group VI and Group VI Subsequent
                  Transfer

Ladies and Gentlemen:

                  Pursuant to Section 2.05 of the Indenture, Issuer has
designated the Group I Subsequent Mortgage Loans to be transferred to the
Indenture Trustee on [___________ , 20__], with an approximate aggregate
principal balance of $________________.

                  Pursuant to Section 2.06 of the Indenture, Issuer has
designated the Group II Subsequent Mortgage Loans to be transferred to the
Indenture Trustee on [___________ , 20__], with an approximate aggregate
principal balance of $________________.

                  Pursuant to Section 2.07 of the Indenture, Issuer has
designated the Group III Subsequent Mortgage Loans to be transferred to the
Indenture Trustee on [___________ , 20__], with an approximate aggregate
principal balance of $________________.

                  Pursuant to Section 2.08 of the Indenture, Issuer has
designated the Group IV Subsequent Mortgage Loans to be transferred to the
Indenture Trustee on [___________ , 20__], with an approximate aggregate
principal balance of $________________.

                  Pursuant to Section 2.09 of the Indenture, Issuer has
designated the Group V Subsequent Mortgage Loans to be transferred to the
Indenture Trustee on [___________ , 20__], with an approximate aggregate
principal balance of $________________.

                  Pursuant to Section 2.10 of the Indenture, Issuer has
designated the Group VI Subsequent Mortgage Loans to be transferred to the
Indenture Trustee on [___________ , 20__], with an approximate aggregate
principal balance of $________________.

                  Pursuant to Section 2.11 of the Indenture, Issuer has
designated the Group VII Subsequent Mortgage Loans to be transferred to the
Indenture Trustee on [___________ , 20__], with an approximate aggregate
principal balance of $________________.

<PAGE>

         Capitalized terms not otherwise defined herein have the meaning set
forth in the Indenture.

                  Please acknowledge your receipt of this notice by
countersigning the enclosed copy in the space indicated below and returning it
to the attention of the undersigned.

<PAGE>

                                                Very truly yours,

                                                AMERICAN HOME MORTGAGE
                                                INVESTMENT TRUST 2004-4,
                                                as Issuer Wilmington
                                                Trust Company, not in
                                                its individual capacity
                                                but solely as Owner
                                                Trustee

                                                By:_____________________________
                                                Name:
                                                Title:

<PAGE>

ACKNOWLEDGED AND AGREED:

THE BANK OF NEW YORK, not in its
individual capacity but solely as Indenture
Trustee for the Trust.

By:_______________
Name:
Title:

<PAGE>

                                   APPENDIX A
                                   DEFINITIONS

         ADDITION NOTICE: With respect to the transfer of Group I, Group II,
Group III, Group IV, Group V, Group VI and Group VII Subsequent Mortgage Loans
to the Trust Estate pursuant to Sections 2.05 through 2.11, respectively, a
notice of the Company's designation of the related Group I, Group II, Group III,
Group IV, Group V, Group VI and Group VII Subsequent Mortgage Loans to be sold
to the Trust Estate and the related aggregate Stated Principal Balance of such
Group I, Group II, Group III, Group IV, Group V, Group VI and Group VII
Subsequent Mortgage Loans as of the related Subsequent Cut-off Date. The
Addition Notice shall be given not later than three Business Days prior to the
related Subsequent Transfer Date and shall be substantially in the form of
Exhibit H.

         ACCEPTED SERVICING PRACTICES: The HELOC Master Servicer's or HELOC
Subservicer's normal servicing practices in servicing and administering
revolving home equity line of credit Mortgage Loans for its own account, which
in general will conform to the mortgage servicing practices of prudent mortgage
lending institutions which service for their own account, Mortgage Loans of the
same type as the HELOC Mortgage Loans in the jurisdictions in which the related
Mortgaged Properties are located.

         ACCRUAL PERIOD: With respect to any Payment Date and each Class of
Class A Notes, Class M and Class B Notes, except for the Class IV-A, Class V-A
and Class VI-A Notes, the period from the preceding Payment Date (or in the case
of the first Payment Date, from the Closing Date) through the day preceding such
Payment Date. With respect to any Payment Date and the Class IV-A, Class V-A and
Class VI-A Notes, the prior calendar month. Accrued Note Interest for the Class
I-A, Class II-A, Class III-A, Class M, Class VI-M and Class VI-B Notes shall be
calculated on the basis of the actual number of days in the Accrual Period and a
360-day year. Accrued Note Interest on the Class IV-A, Class V-A and Class VI-A
Notes shall be calculated on the basis of the 360-day year consisting of twelve
30-day months.

         ACCRUED NOTE INTEREST: With respect to any Payment Date and each class
of Notes, interest accrued during the related Accrual Period at the
then-applicable Note Interest Rate on the related Note Principal Balance thereof
immediately prior to such Payment Date, plus any Accrued Note Interest remaining
unpaid from any prior Payment Date with interest thereon at the related Note
Interest Rate.

         ADDITIONAL BALANCE: As to any HELOC Mortgage Loan and day, the
aggregate amount of all Draws conveyed to the Trust pursuant to the Mortgage
Loan Purchase Agreement.

         ADDITIONAL DERIVATIVE CONTRACT COUNTERPARTY PAYMENT: With respect to
any Payment Date, any termination payments to the Swap Agreement Counterparty in
connection with (i) an Event of Default under a Swap Agreement with respect to
which the Swap Agreement Counterparty is a Defaulting Party or (ii) a
Termination Event under a Swap Agreement with respect to which the Swap
Agreement Counterparty is the sole Affected Party.

         ADDITIONAL NEGATIVE AMORTIZATION PRINCIPAL AMOUNT: The amount of Net
Negative Amortization over the Principal Remittance Amount for the Class I-A
Notes.

<PAGE>

         ADJUSTMENT FRACTION: For any Payment Date on which the aggregate Note
Principal Balance of the Class I-A, Class II-A, Class III-A, Class IV-A and
Class V-A Notes immediately prior to that Payment Date exceeds the aggregate
Stated Principal Balance of the Group I, Group II, Group III, Group IV and Group
V Loans at the beginning of the related Due Period, a fraction, (x) the
numerator of which is the aggregate Note Principal Balance of the Class I-A,
Class II-A, Class III-A, Class IV-A and Class V-A Notes immediately prior to
that Payment Date, and (y) the denominator of which is the aggregate Stated
Principal Balance of the Group I, Group II, Group III, Group IV and Group V
Loans at the beginning of the related Due Period. For any Payment Date on which
the aggregate Stated Principal Balance of the Group I, Group II, Group III,
Group IV and Group V Loans at the beginning of the related Due Period exceeds
the aggregate Note Principal Balance of the Class I-A, Class II-A, Class III-A,
Class IV-A and Class V-A Notes immediately prior to that Payment Date, a
fraction, (x) the numerator of which is the aggregate Stated Principal Balance
of the Group I, Group II, Group III, Group IV and Group V Loans at the beginning
of the related Due Period, and (y) the denominator of which is the aggregate
Note Principal Balance of the Class I-A, Class II-A, Class III-A, Class IV-A and
Class V-A Notes immediately prior to that Payment Date.

         ADJUSTMENT DATE: As to each Mortgage Loan, each date set forth in the
related Mortgage Note on which an adjustment to the interest rate on such
Mortgage Loan becomes effective.

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

         ALLOCATED REALIZED LOSS AMOUNT: With respect to any class of Class
I-A-2, Class II-A-2, Class M, Class VI-M and Class VI-B Notes and any Payment
Date, an amount equal to the sum of any Realized Loss allocated to that Class of
Notes on that Payment Date and any Allocated Realized Loss Amount for that Class
remaining unpaid from the previous Payment Date, in each case, with interest
thereon at the applicable Note Interest Rate for such Payment Date for such
Class for the related Accrual Period.

         APPRAISED VALUE: The appraised value of a Mortgaged Property based upon
the appraisal made by or for the Seller, in compliance with the Seller's
underwriting criteria, of such Mortgaged Property at such time of origination.
With respect to a Mortgage Loan, the proceeds of which were used to refinance an
existing Mortgage Loan, the appraised value of the Mortgaged Property based upon
the appraisal obtained at the time of refinancing.

         ARM LOANS: At any time, collectively, all the Mortgage Loans, excluding
HELOC Mortgage Loans, which have adjustable Mortgage Rates.

         ASSIGNMENT OF MORTGAGE: An assignment of Mortgage, notice of transfer
or equivalent instrument, in recordable form, which is sufficient under the laws
of the jurisdiction wherein the related Mortgaged Property is located to reflect
of record the sale of the Mortgage, which assignment, notice of transfer or
equivalent instrument may be in the form of one or more

                                       2
<PAGE>

blanket assignments covering Mortgages secured by Mortgaged Properties located
in the same county, if permitted by law.

         AUTHORIZED NEWSPAPER: A newspaper of general circulation in the Borough
of Manhattan, The City of New York, printed in the English language and
customarily published on each Business Day, whether or not published on
Saturdays, Sundays or holidays.

         AUTHORIZED OFFICER: With respect to the Issuer, any officer of the
Owner Trustee who is authorized to act for the Owner Trustee in matters relating
to the Issuer and who is identified on the list of Authorized Officers delivered
by the Owner Trustee to the Indenture Trustee on the Closing Date (as such list
may be modified or supplemented from time to time thereafter).

         AVAILABLE FUNDS: The Group I, Group II, Group III, Group IV, Group V or
Group VI Available Funds, as applicable.

         AVAILABLE FUNDS RATE: On any Payment Date and any class of Class I-A,
Class II-A, Class III-A, Class IV-A, Class V-A or Class VI-A Notes, the per
annum rate equal to (1) the weighted average of the Net Mortgage Rates on the
related Mortgage Loans included in the trust as of the end of the prior Due
Period, weighted on the basis of the Stated Principal Balances thereof as of the
end of the prior Due Period, and (2) the amount of interest earned on amounts on
deposit in the related Pre-Funding Account from the prior Payment Date to the
current Payment Date, expressed as a percentage of the related Pre-Funded Amount
at the end of the prior Due Period and converted to a per annum rate, weighted
on the basis of the related Pre-Funded Amount as of the end of the related Due
Period, times, in the case of the Class I-A, Class II-A Notes, Class III-A,
Class IV-A and Class V-A Notes only, the related Adjustment Fraction.

On any Payment Date and the Class VII-A Notes, the per annum rate equal to (1)
the weighted average of the Net Mortgage Rates of the HELOC Mortgage Loans in
Loan Group VII included in the trust as of the end of the prior Due Period,
weighted on the basis of the Stated Principal Balances thereof as of the end of
the prior Due Period, and (2) the amount of interest earned on amounts on
deposit in the related Pre-Funding Account from the prior Payment Date to the
current Payment Date, expressed as a percentage of the related Pre-Funded Amount
at the end of the prior Due Period and converted to a per annum rate, weighted
on the basis of the related Pre-Funded Amount as of the end of the related Due
Period, times a fraction equal to (x) 30 divided by (y) the number of days in
the related Accrual Period.

On any Payment Date and any class of Class M Notes, the per annum rate equal to
(1) the weighted average of the Net Mortgage Rates of the Mortgage Loans in Loan
Group I, Loan Group II, Loan Group III, Loan Group IV and Loan Group V included
in the trust as of the end of the prior Due Period, weighted on the basis of the
Stated Principal Balances thereof as of the end of the prior Due Period,
weighted in proportion to the results of subtracting from the aggregate Stated
Principal Balance of the Mortgage Loans of Loan Group I, Loan Group II, Loan
Group III, Loan Group IV and Loan Group V, the aggregate Note Principal Balance
of the related Class I-A, Class II-A, Class III-A, Class IV-A and Class V-A
Notes, and (2) the amount of interest earned on amounts on deposit in the
related Pre-Funding Account from the prior Payment Date to the current Payment
Date, expressed as a percentage of the related Pre-Funded Amount at the end of
the prior Due Period and converted to a per annum rate, weighted on the

                                       3
<PAGE>

basis of the related Pre-Funded Amount as of the end of the related Due Period,
times a fraction equal to (x) 30 divided by (y) the number of days in the
related Accrual Period.

On any Payment Date and any class of Class VI-M Notes, the per annum rate equal
to (1) the weighted average of the Net Mortgage Rates of the Mortgage Loans in
Loan Group VI included in the trust as of the end of the prior Due Period, and
(2) the amount of interest earned on amounts on deposit in the related
Pre-Funding Account from the prior Payment Date to the current Payment Date,
expressed as a percentage of the related Pre-Funded Amount at the end of the
prior Due Period and converted to a per annum rate, weighted on the basis of the
related Pre-Funded Amount as of the end of the related Due Period, times a
fraction equal to (x) 30 divided by (y) the number of days in the related
Accrual Period.

         On any Payment Date and any class of Class VI-B Notes, the per annum
rate equal to (1) the weighted average of the Net Mortgage Rates of the Mortgage
Loans in Loan Group VI included in the trust as of the end of the prior Due
Period, and (2) the amount of interest earned on amounts on deposit in the
related Pre-Funding Account from the prior Payment Date to the current Payment
Date, expressed as a percentage of the related Pre-Funded Amount at the end of
the prior Due Period and converted to a per annum rate, weighted on the basis of
the related Pre-Funded Amount as of the end of the related Due Period, times a
fraction equal to (x) 30 divided by (y) the number of days in the related
Accrual Period.

         BANKRUPTCY CODE: The Bankruptcy Code of 1978, as amended.

         BASIC DOCUMENTS: The Trust Agreement, the Certificate of Trust, the
Indenture, the Custodial Agreement, the Notes, the Trust Certificates, the HELOC
Servicing Agreement, the RMBS Servicing Agreement, the Mortgage Loan Purchase
Agreement, the Swap Agreement, the Cap Contracts, the Corridor Contract, the
Insurance Agreement and the other documents and certificates delivered in
connection with any of the above.

         BASIC PRINCIPAL DISTRIBUTION AMOUNT: With respect to any Payment Date
and Loan Group I, Loan Group II, Loan Group III, Loan Group IV and Loan Group V,
the lesser of (a) the excess of (i) the sum of the related Available Funds for
such Payment Date over (ii) the aggregate amount of Accrued Note Interest for
the Class I-A, Class II-A, Class III-A, Class IV-A, Class V-A and Class M Notes
for such Payment Date and (b) the related Principal Remittance Amount for the
Group I, Group II, Group III, Group IV and Group V Loans for such Payment Date.
With respect to any Payment Date and Loan Group VI, the lesser of (a) the excess
of (i) the related Available Funds for such Payment Date over (ii) the aggregate
amount of Accrued Note Interest for the Class VI-A, Class VI-M and Class VI-B
Notes for such Payment Date and (b) the related Principal Remittance Amount for
the Group VI Loans for such Payment Date.

         BASIS RISK SHORTFALL: With respect to any class of LIBOR Notes, except
the Class VII-A Notes, on each Payment Date where clause (iii) of the definition
of "Note Interest Rate" is less than clauses (i) or (ii) of the definition of
"Note Interest Rate," the excess, if any, of (x) the aggregate Accrued Note
Interest thereon for such Payment Date calculated pursuant to the lesser of
clause (i) or (ii) of the definition of Note Interest Rate over (y) Accrued Note
Interest thereon for such Payment Date calculated at the related Available Funds
Rate. With respect to the Class VII-A Notes, on each Payment Date where clause
(y) of the definition of Note Interest Rate is

                                       4
<PAGE>

less than clause (x) of the definition of Note Interest Rate, the excess, if
any, of the aggregate Accrued Note Interest thereon for such Payment Date
calculated pursuant to clause (x) of the definition of Note Interest Rate over
Accrued Note Interest thereon for such Payment Date calculated at the related
Available Funds Rate.

         BASIS RISK SHORTFALL CARRY-FORWARD AMOUNT: With respect to each class
of LIBOR Notes and any Payment Date, as determined separately for each such
class of Notes, an amount equal to the aggregate amount of Basis Risk Shortfall
for such Notes on such Payment Date, plus any unpaid Basis Risk Shortfall for
such class of Notes from prior Payment Dates, plus interest thereon at the Note
Interest Rate for such Payment Date for such class for the related Accrual
Period, to the extent previously unreimbursed by the Net Monthly Excess Cashflow
or payments received by the Indenture Trustee under the Cap Contracts or
Corridor Contract.

         BENEFICIAL OWNER: With respect to any Book-Entry Note, the Person who
is the beneficial owner of such Note as reflected on the books of the Depository
or on the books of a Person maintaining an account with such Depository
(directly as a Depository Participant or indirectly through a Depository
Participant, in accordance with the rules of such Depository).

         BOOK-ENTRY NOTES: Beneficial interests in the Notes, ownership and
transfers of which shall be made through book entries by the Depository as
described in Section 4.06 of the Indenture.

         BUSINESS DAY: Any day other than (i) a Saturday or a Sunday or (ii) a
day on which banking institutions in the City of New York, Delaware or Maryland
or in the city in which a Corporate Trust Office is located, is required or
authorized by law to be closed.

         CALENDAR QUARTER: A Calendar Quarter shall consist of one of the
following time periods in any given year: January 1 through March 31, April 1
through June 30, July 1 though September 30, and October 1 through December 31.

         CAP CONTRACT ALLOCATION AMOUNT: With respect to any Payment Date and
each class of Class M Notes, the amount received with respect to the Cap
Contracts for the Class M Notes for that Payment Date times a fraction, the
numerator of which is the Note Principal Balance of such class of Notes
immediately prior to that Payment Date, and denominator of which is the
aggregate Note Principal Balance of the Class M Notes immediately prior to that
Payment Date.

         CAP CONTRACTS: The interest rate cap contracts between the Indenture
Trustee and the Cap Contract Counterparty for the benefit of the Class M Notes,
a form of which is set forth in Exhibit C of the Indenture.

         CAP CONTRACT COUNTERPARTY: Bear Stearns Financial Products, Inc.

         CAP RATE: With respect to each Cap Contract and each Payment Date, the
fixed rate set forth in the Cap Contract used to determine payments to the
Indenture Trustee. With respect to each Corridor Contract and each Payment Date,
the fixed rate set forth in the Corridor Contract used to determine payments to
the Indenture Trustee.

         CASH LIQUIDATION: As to any defaulted Mortgage Loan other than a
Mortgage Loan as to which an REO Acquisition occurred, a determination by the
RMBS Master Servicer evidenced in a certificate of a Servicing Officer that it
has received all Insurance Proceeds, Liquidation

                                       5
<PAGE>

Proceeds and other payments or cash recoveries which the RMBS Master Servicer
reasonably and in good faith expects to be finally recoverable with respect to
such Mortgage Loan.

         CEILING RATE: With respect to each Corridor Contract and each Payment
Date, the fixed rate set forth in the Corridor Contract used to determine
payments to the Indenture Trustee.

         CERTIFICATE DISTRIBUTION ACCOUNT: The account or accounts created and
maintained pursuant to Section 3.10(c) of the Trust Agreement. The Certificate
Distribution Account shall be an Eligible Account.

         CERTIFICATE PAYING AGENT: Initially, The Bank of New York, in its
capacity as Certificate Paying Agent, or any successor to the Indenture Trustee
in such capacity.

         CERTIFICATE PERCENTAGE INTEREST: With respect to each Certificate, the
Certificate Percentage Interest stated on the face thereof.

         CERTIFICATE REGISTER: The register maintained by the Certificate
Registrar in which the Certificate Registrar shall provide for the registration
of Certificates and of transfers and exchanges of Certificates.

         CERTIFICATE REGISTRAR: Initially, The Bank of New York, in its capacity
as Certificate Registrar, or any successor to the Indenture Trustee in such
capacity.

         CERTIFICATE OF TRUST: The Certificate of Trust filed for the Trust
pursuant to Section 3810(a) of the Statutory Trust Statute.

         CERTIFICATES OR TRUST CERTIFICATES: The American Home Mortgage
Investment Trust 2004-4 Trust Certificates, Series 2004-4, evidencing the
beneficial ownership interest in the Issuer and executed by the Owner Trustee in
substantially the form set forth in Exhibit A to the Trust Agreement.

         CERTIFICATEHOLDER OR HOLDER: The Person in whose name a Certificate is
registered in the Certificate Register. Owners of Certificates that have been
pledged in good faith may be regarded as Holders if the pledgee establishes to
the satisfaction of the Certificate Registrar or the Owner Trustee, as the case
may be, the pledgee's right so to act with respect to such Certificates and that
the pledgee is not the Issuer, any other obligor upon the Certificates or any
Affiliate of any of the foregoing Persons.

         CHARGE-OFF AMOUNT: For any Charged-Off HELOC Mortgage Loan, the amount
of the Stated Principal Balance that has been written down.

         CHARGED-OFF HELOC MORTGAGE LOAN: A HELOC Mortgage Loan with a Stated
Principal Balance that has been written down on the HELOC Subservicer's
servicing system in accordance with its policies and procedures and any HELOC
that is more than 180 days past due.

         CLASS: Any of the Class A, Class M, Class VI-M, Class VI-B or Class N
Notes.

                                       6
<PAGE>

         CLASS A NOTES: The Class I-A, Class II-A, Class III-A, Class IV-A,
Class V-A, Class VI-A and Class VII-A Notes in the form attached as Exhibit A-1
to the Indenture.

         CLASS A PRINCIPAL ALLOCATION FRACTION: For any Payment Date and each
class of Class I-A, Class II-A, Class III-A, Class IV-A and Class V-A Notes, a
fraction, (x) the numerator of which is the Principal Remittance Amount with
respect to the Mortgage Loans in the related Loan Group to be distributed on
that Payment Date, and (y) the denominator of which is the Principal Remittance
Amount for all of the Mortgage Loans in Loan Group I, Loan Group II, Loan Group
III, Loan Group IV and Loan Group V to be distributed on that Payment Date.

         CLASS A PRINCIPAL DISTRIBUTION AMOUNT: For any applicable Payment Date
on or after the related Stepdown Date as long as a related Trigger Event has not
occurred with respect to such Payment Date, an amount equal to the lesser of (A)
the related Principal Distribution Amount for such Payment Date and (B) the
excess (if any) of (x) the aggregate Note Principal Balance of the Class I-A,
Class II-A, Class III-A, Class IV-A and Class V-A Notes immediately prior to
such Payment Date over (y) the lesser of (a) the aggregate Stated Principal
Balance of the Group I, Group II, Group III, Group IV and Group V Loans as of
the last day of the related Due Period (after giving effect to scheduled
payments of principal due during the related Due Period, to the extent received
or advanced, and unscheduled collections of principal received during the
related Prepayment Period, and after reduction for Realized Losses incurred
during the related Prepayment Period) multiplied by approximately 86.00% and (b)
the amount, if any, by which (i) the aggregate Stated Principal Balance of the
Group I, Group II, Group III, Group IV and Group V Loans as of the last day of
the related Due Period (after giving effect to scheduled payments of principal
due during the related Due Period, to the extent received or advanced, and
unscheduled collections of principal received during the related Prepayment
Period, and after reduction for Realized Losses incurred during the related
Prepayment Period) exceeds (ii) 0.35% of the sum of the Group I, Group II, Group
III, Group IV and Group V Cut-off Date Balances.

         CLASS M NOTES: The Class M-1, Class M-2, Class M-3 Notes in the form
attached as Exhibit A-2 to the Indenture.

         CLASS M-1 PRINCIPAL DISTRIBUTION AMOUNT: For any applicable Payment
Date on or after the Stepdown Date as long as a Trigger Event has not occurred
with respect to such Payment Date, an amount equal to the excess (if any) of (x)
the sum of (i) the aggregate Note Principal Balance of the Class I-A, Class
II-A, Class III-A, Class IV-A and Class V-A Notes (after taking into account the
distribution of the Class A Principal Distribution Amounts on such Payment Date)
and (ii) the Note Principal Balance of the Class M-1 Notes immediately prior to
such Payment Date over (y) the lesser of (a) the aggregate Stated Principal
Balance of the Group I, Group II, Group III, Group IV and Group V Loans as of
the last day of the related Due Period (after giving effect to scheduled
payments of principal due during the related Due Period, to the extent received
or advanced, and unscheduled collections of principal received during the
related Prepayment Period, and after reduction for Realized Losses incurred
during the related Prepayment Period) multiplied by approximately 92.60% and (b)
the amount, if any, by which (i) the aggregate Stated Principal Balance of the
Group I, Group II, Group III, Group IV and Group V Loans as of the last day of
the related Due Period (after giving effect to scheduled payments of principal
due during the related Due Period, to the extent received or advanced, and
unscheduled collections of principal received during the related Prepayment
Period, and after reduction for

                                       7
<PAGE>

Realized Losses incurred during the related Prepayment Period) exceeds (ii)
0.35% of the sum of the Group I, Group II, Group III, Group IV and Group V
Cut-off Date Balances.

         CLASS M-2 PRINCIPAL DISTRIBUTION AMOUNT: For any applicable Payment
Date on or after the Stepdown Date as long as a Trigger Event has not occurred
with respect to such Payment Date, an amount equal to the excess (if any) of (x)
the sum of (i) the aggregate Note Principal Balance of the Class I-A, Class
II-A, Class III-A, Class IV-A, Class V-A and Class M-1 Notes (after taking into
account the distribution of the Class A and Class M-1 Principal Distribution
Amounts on such Payment Date) and (ii) the Note Principal Balance of the Class
M-2 Notes immediately prior to such Payment Date over (y) the lesser of (a) the
aggregate Stated Principal Balance of the Group I, Group II, Group III, Group IV
and Group V Loans as of the last day of the related Due Period (after giving
effect to scheduled payments of principal due during the related Due Period, to
the extent received or advanced, and unscheduled collections of principal
received during the related Prepayment Period, and after reduction for Realized
Losses incurred during the related Prepayment Period) multiplied by
approximately 97.50% and (b) the amount, if any, by which (i) the aggregate
Stated Principal Balance of the Group I, Group II, Group III, Group IV and Group
V Loans as of the last day of the related Due Period (after giving effect to
scheduled payments of principal due during the related Due Period, to the extent
received or advanced, and unscheduled collections of principal received during
the related Prepayment Period, and after reduction for Realized Losses incurred
during the related Prepayment Period) exceeds (ii) 0.35% of the sum of the Group
I, Group II, Group III, Group IV and Group V Cut-off Date Balances.

         CLASS M-3 PRINCIPAL DISTRIBUTION AMOUNT: For any applicable Payment
Date on or after the Stepdown Date as long as a Trigger Event has not occurred
with respect to such Payment Date, an amount equal to the excess (if any) of (x)
the sum of (i) the aggregate Note Principal Balance of the Class I-A, Class
II-A, Class III-A, Class IV-A, Class V-A, Class M-1 and Class M-2 Notes (after
taking into account the distribution of the Class A, Class M-1 and Class M-2
Principal Distribution Amounts on such Payment Date) and (ii) the Note Principal
Balance of the Class M-3 Notes immediately prior to such Payment Date over (y)
the lesser of (a) the aggregate Stated Principal Balance of the Group I, Group
II, Group III, Group IV and Group V Loans as of the last day of the related Due
Period (after giving effect to scheduled payments of principal due during the
related Due Period, to the extent received or advanced, and unscheduled
collections of principal received during the related Prepayment Period, and
after reduction for Realized Losses incurred during the related Prepayment
Period) multiplied by approximately 99.30% and (b) the amount, if any, by which
(i) the aggregate Stated Principal Balance of the Group I, Group II, Group III,
Group IV and Group V Loans as of the last day of the related Due Period (after
giving effect to scheduled payments of principal due during the related Due
Period, to the extent received or advanced, and unscheduled collections of
principal received during the related Prepayment Period, and after reduction for
Realized Losses incurred during the related Prepayment Period) exceeds (ii)
0.35% of the sum of the Group I, Group II, Group III, Group IV and Group V
Cut-off Date Balances.

         CLASS VI NOTES: The Class VI-A, Class VI-M and Class VI-B Notes.

         CLASS VI-A NOTES:  The Class VI-A-1 Notes and Class VI-A-2 Notes.

                                       8
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         CLASS VI-B NOTES: The Class VI-B-1, Class VI-B-2 and Class VI-B-3
Notes.

         CLASS VI-M NOTES: The Class VI-M-1, Class VI-M-2 and Class VI-M-3
Notes.

         CLASS N NOTES: The Class N Notes in the form attached as Exhibit A-3 to
the Indenture.

         CLEARING AGENCY: An organization registered as a "clearing agency"
pursuant to Section 17A of the Securities and Exchange Act of 1934, as amended,
which initially shall be the Depository.

         CLOSING DATE: December 21, 2004.

         CODE: The Internal Revenue Code of 1986, as amended, and the rules and
regulations promulgated thereunder.

         COLLATERAL: The meaning specified in the Granting Clause of the
Indenture.

         COLLECTION ACCOUNT: The account or accounts created and maintained by
the HELOC Master Servicer, RMBS Master Servicer and HELOC Subservicer, as
applicable, pursuant to Section 3.06(d) of each of the HELOC Servicing
Agreement, the RMBS Servicing Agreement and the HELOC Subservicing Agreement.
Each Collection Account shall be an Eligible Account.

         COMBINED LOAN-TO-VALUE RATIO OR CLTV: With respect to any HELOC
Mortgage Loan, the sum of the Credit Limit of such HELOC Mortgage Loan at the
time such HELOC Mortgage Loan was originated or at the time such HELOC Mortgage
Loan is modified pursuant to Section 3.01 of the HELOC Servicing Agreement or
the HELOC Subservicing Agreement, as applicable, and the outstanding principal
balance of the Senior Lien(s), if any, as of the date of origination of the
HELOC Mortgage Loan, divided by the Appraised Value.

         COMMISSION: The Securities and Exchange Commission.

         COMPENSATING INTEREST: With respect to any Payment Date as determined
separately for each Loan Group, the amount of any Prepayment Interest Shortfalls
resulting from prepayments in full or in part during the preceding calendar
month on the related Mortgage Loans, excluding HELOC Mortgage Loans, but only to
the extent such Prepayment Interest Shortfalls do not exceed the Master
Servicing Fee for such Payment Date. There shall be no obligation to pay
Compensating Interest with respect to any HELOC Mortgage Loan.

         CONFORMING BALANCE: A Mortgage Loan has a Conforming Balance if it is
secured by a single family property with a maximum original principal balance of
$359,650 or less for all Mortgage Loans other than those originated in Alaska
and Hawaii, for which the maximum balance is $539,475. For Mortgage Loans
secured by two-, three- and four-family properties the maximum balance is
$460,400, $556,500 or $691,600, respectively, or $690,600, $835,584 and
$1,037,400, respectively, if the property is located in Alaska or Hawaii.

         CORPORATE TRUST OFFICE: With respect to the Indenture Trustee,
Certificate Registrar, Certificate Paying Agent and Paying Agent, the principal
corporate trust office of the Indenture

                                       9
<PAGE>

Trustee and Note Registrar at which at any particular time its corporate trust
business shall be administered, which office at the date of the execution of
this instrument is located at 101 Barclay Street, New York, New York 10286
(Attention: Corporate Trust MBS Administration), telephone: (212) 815-3236,
facsimile: (212) 815-3883. With respect to the Owner Trustee, the principal
corporate trust office of the Owner Trustee at which at any particular time its
corporate trust business shall be administered, which office at the date of the
execution of this Trust Agreement is located at Wilmington Trust Company, Rodney
Square North, 1100 North Market Street, Wilmington, Delaware 19801, Attention:
American Home Mortgage Investment Trust 2004-4.

         CORRIDOR CONTRACT ALLOCATION AMOUNT: With respect to any Payment Date
and the Class I-A Notes, the amount received with respect to the Corridor
Contract for the Class I-A Notes for that Payment Date times a fraction, the
numerator of which is the Note Principal Balance of such class of Notes
immediately prior to that Payment Date, and denominator of which is the
aggregate Note Principal Balance of the Class A Notes immediately prior to that
Payment Date.

         CORRIDOR CONTRACT COUNTERPARTY: Bear Stearns Financial Products, Inc.

         CORRIDOR CONTRACT: The interest rate corridor contracts between the
Indenture Trustee and the Derivative Contract Counterparty for the benefit of
the Class I-A Notes, a form of which is attached as Exhibit D to the Indenture.

         CREDIT ENHANCEMENT PERCENTAGE: With respect to the Class I-A, Class
II-A, Class III-A, Class IV-A and Class V-A Notes and any Payment Date, the sum
of the aggregate Note Principal Balance of the Class M Notes and the related
Overcollateralized Amount.

         CREDIT LIMIT: With respect to any HELOC Mortgage Loan, the maximum
unpaid principal balance permitted under the terms of the related Mortgage Note.

         CREDIT LINE AGREEMENT: With respect to any Loan, the credit line
account agreement executed by the related Mortgagor and any amendment or
modification thereof.

         CROSSABLE EXCESS: On any Payment Date, the amount of Net Monthly Excess
Cashflow related to the Group I, Group II, Group III, Group IV and Group V Loans
and the Group VI Loans, which is distributable as provided Section 3.07(d) of
the Indenture.

         CUMULATIVE LOSSES: As to any Payment Date and the Mortgage Loans, the
cumulative aggregate amount of Realized Losses on the Mortgage Loans from the
Cut-off Date through the end of the calendar month immediately preceding such
Payment Date.

         CUSTODIAN: Deutsche Bank National Trust Company, or its successor in
interest.

         CUSTODIAL AGREEMENT: The Custodial Agreement, dated as of the Closing
Date, by and among the Indenture Trustee, the Depositor, the RMBS Master
Servicer, the HELOC Master Servicer and the Custodian.

         CUT-OFF DATE: With respect to the initial Mortgage Loans, December 1,
2004, and with respect to the initial HELOC Mortgage Loans, the close of
business on November 30, 2004, and with respect to the subsequent Mortgage Loans
or subsequent HELOC Mortgage Loans, the applicable Subsequent Cut-off Date.

                                       10
<PAGE>

         CUT-OFF DATE BALANCE: The aggregate Stated Principal Balance of the
Mortgage Loans as of the Cut-off Date.

         CUT-OFF DATE PRINCIPAL BALANCE: With respect to any Mortgage Loan that
is not a HELOC Mortgage Loan, the unpaid principal balance thereof as of the
Cut-off Date after applying the principal portion of Monthly Payments due on or
before such date, whether or not received, and without regard to any payments
due after such date. With respect to any HELOC Mortgage Loan, the unpaid
principal balance thereof as of the Cut-off Date.

         DEBT SERVICE REDUCTION: With respect to any Mortgage Loan other than a
HELOC Mortgage Loan, a reduction in the scheduled Monthly Payment for such
Mortgage Loan by a court of competent jurisdiction in a proceeding under the
Bankruptcy Code, except such a reduction constituting a Deficient Valuation or
any reduction that results in a permanent forgiveness of principal.

         DEFAULT: Any occurrence which with notice or the lapse of time or both
would become an Event of Default.

         DEFAULT PENALTY RATE BALANCE: The Stated Principal Balance of any HELOC
Mortgage Loan with respect to which the Default Penalty Rate Feature is in
effect.

         DEFAULT PENALTY RATE FEATURE: An feature that permits the HELOC Master
Servicer or HELOC Subservicer to increase the HELOC Loan Rate on a Delinquent
HELOC Mortgage Loan.

         DEFICIENCY AMOUNT: With respect to any Payment Date, the sum of (i) the
Guaranteed Interest Payment, excluding any Relief Act Shortfalls, Basis Risk
Shortfalls or Basis Risk Shortfall Carry-Forward Amount for such Payment Date,
and (ii) the Guaranteed Principal Payment Amount.

         DEFICIENT VALUATION: With respect to any Mortgage Loan that is not a
HELOC Mortgage Loan, a valuation by a court of competent jurisdiction of the
Mortgaged Property in an amount less than the then outstanding indebtedness
under the Mortgage Loan, or any reduction in the amount of principal to be paid
in connection with any scheduled Monthly Payment that constitutes a permanent
forgiveness of principal, which valuation or reduction results from a proceeding
under the Bankruptcy Code.

         DEFINITIVE NOTES: The meaning specified in Section 4.06 of the
Indenture.

         DELETED MORTGAGE LOAN: A Mortgage Loan replaced or to be replaced with
an Eligible Substitute Mortgage Loan.

         DELINQUENCY RATE: For any month, the fraction, expressed as a
percentage, the numerator of which is the aggregate outstanding principal
balance of all Mortgage Loans 60 or more days delinquent (including all
foreclosures, Mortgage Loans subject to bankruptcy proceedings and REO
Properties) as of the close of business on the last day of such month, and the
denominator of which is the aggregate Stated Principal Balance of the Mortgage
Loans as of the close of business on the last day of such month.

                                       11
<PAGE>

         DELINQUENT HELOC MORTGAGE LOAN AND DELINQUENT: A HELOC Mortgage Loan is
Delinquent or is a Delinquent HELOC Mortgage Loan if the Monthly Payment due
thereon is not received by the close of business on the day the related Monthly
Payment is scheduled to be made in accordance with the related Mortgage Note and
until such delinquency is subsequently cured.

         DEPOSITOR: American Home Mortgage Securities LLC., a Delaware
corporation, or its successor in interest.

         DEPOSITORY OR DEPOSITORY AGENCY: The Depository Trust Company or a
successor appointed by the Indenture Trustee. Any successor to the Depository
shall be an organization registered as a "clearing agency" pursuant to Section
17A of the Exchange Act and the regulations of the Securities and Exchange
Commission thereunder.

         DEPOSITORY AGREEMENT: With respect to the Class of Book-Entry Notes,
the agreement among the Issuer, the Indenture Trustee and the initial
Depository, dated as of the Closing Date.

         DEPOSITORY PARTICIPANT: A Person for whom, from time to time, the
Depository effects book-entry transfers and pledges of securities deposited with
the Depository.

         DERIVATIVE CONTRACTS: Any of the Cap Contracts, Corridor Contracts or
Swap Agreements.

         DERIVATIVE CONTRACT COUNTERPARTY: The Cap Contract Counterparty,
Corridor Contract Counterparty or Swap Agreement Counterparty

         DETERMINATION DATE: With respect to any Payment Date, the 15th of the
related month, or if the 15th day of such month is not a Business Day, the
immediately preceding Business Day.

         DRAW: With respect to any HELOC Mortgage Loan, an additional borrowing
by the related Mortgagor subsequent to the Cut-off Date in accordance with the
related Mortgage Note.

         DRAW PERIOD: With respect to any HELOC Mortgage Loan, the period during
which the related Mortgagor is permitted to make Draws.

         DUE DATE: With respect to each Mortgage Loan that is not a HELOC
Mortgage Loan, the date in each month on which its Monthly Payment is due,
exclusive of any days of grace, if such Due Date is the first day of a month and
otherwise is deemed to be the first day of the following month or such other
date specified in the RMBS Servicing Agreement. With respect to each HELOC
Mortgage Loan, the twentieth (20th) day of a month.

         DUE PERIOD: With respect to any Payment Date and the Mortgage Loans
which are not HELOC Mortgage Loans, the period commencing on the second day of
the month immediately preceding the month of such Payment Date (or, with respect
to the first Due Period, the day following the Cut-off Date) and ending on the
first day of the month of such Payment Date. With respect to any Payment Date
and the HELOC Mortgage Loans, the period commencing on the first day of the
month immediately preceding the month of such Payment Date and ending on the
last day of such month.

                                       12
<PAGE>

         ELIGIBLE ACCOUNT: An account that is any of the following: (i) a
segregated account maintained with a federal or state chartered depository
institution (A) the short-term obligations of which are rated A-1+ or better by
Standard & Poor's and P-1 by Moody's at the time of any deposit therein or (B)
fully insured to the limits established by the FDIC, PROVIDED that any deposits
not so insured shall, to the extent acceptable to the Rating Agencies, as
evidenced in writing, be maintained such that (as evidenced by an Opinion of
Counsel delivered to the Indenture Trustee and the Rating Agencies) the
Indenture Trustee has a claim with respect to the funds in such account or a
perfected first security interest against any collateral (which shall be limited
to Eligible Investments) securing such funds that is superior to claims of any
other depositors or creditors of the depository institution with which such
account is maintained, (ii) a segregated trust account or accounts maintained
with a federal or state chartered depository institution or trust company
subject to regulations regarding fiduciary funds on deposit similar to Title 12
of the Code of Federal Regulations Section 9.10(b), which, in either case, has
corporate trust powers, acting in its fiduciary capacity, or (iii) in the case
of the Collection Account or Servicing Account, either (A) a trust account or
accounts maintained at the corporate trust department of the Indenture Trustee
or (B) an account or accounts maintained at the corporate trust department of
the HELOC Master Servicer or RMBS Master Servicer, as applicable (or an
affiliate thereof), as long as their short term debt obligations are rated F-1
by Fitch Ratings, P-1 by Moody's and A-1 by Standard & Poor's or better and
their long term debt obligations are rated A by Fitch Ratings, A2 by Moody's and
A by Standard & Poor's or better, or (iv) an account or accounts of a depository
institution acceptable to the Rating Agencies as evidenced in writing by the
Rating Agencies that use of any such account as the Collection Account or the
Payment Account will not reduce the rating assigned to any of the Securities by
such Rating Agency below investment grade.

         ELIGIBLE INVESTMENTS: One or more of the following:

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

                  (ii)     repurchase agreements on obligations specified in
         clause (i) maturing not more than one month from the date of
         acquisition thereof, provided that the unsecured obligations of the
         party agreeing to repurchase such obligations are at the time rated by
         the Rating Agencies in their respective highest short-term rating
         available;

                  (iii)    federal funds, certificates of deposit, demand
         deposits, time deposits and bankers' acceptances (which shall each have
         an original maturity of not more than 90 days and, in the case of
         bankers' acceptances, shall in no event have an original maturity of
         more than 365 days or a remaining maturity of more than 30 days)
         denominated in United States dollars of any U.S. depository institution
         or trust company incorporated under the laws of the United States or
         any state thereof or of any domestic branch of a foreign depository
         institution or trust company; provided that the debt obligations of
         such depository institution or trust company (or, if the only Rating
         Agency is Standard & Poor's, in the case of the principal depository
         institution in a depository institution holding company, debt
         obligations of the depository institution holding company) at the date
         of acquisition thereof have been rated by the Rating Agencies in

                                       13
<PAGE>

         their respective highest short-term rating available; and provided
         further that, if the only Rating Agency is Standard & Poor's and if the
         depository or trust company is a principal subsidiary of a bank holding
         company and the debt obligations of such subsidiary are not separately
         rated, the applicable rating shall be that of the bank holding company;
         and, provided further that, if the original maturity of such short-term
         obligations of a domestic branch of a foreign depository institution or
         trust company shall exceed 30 days, the short-term rating of such
         institution shall be A-1+ in the case of Standard & Poor's if Standard
         & Poor's is the Rating Agency;

                  (iv)     commercial paper (having original maturities of not
         more than 365 days) of any corporation incorporated under the laws of
         the United States or any state thereof which on the date of acquisition
         has been rated by Moody's and Standard & Poor's in their highest
         short-term ratings available; provided that such commercial paper shall
         have a remaining maturity of not more than 30 days;

                  (v)      a money market fund or a qualified investment fund
         rated by Moody's in its highest long-term ratings available and rated
         AAAm or AAAm-G by Standard & Poor's, including any such funds for which
         The Bank of New York (or any successor Indenture Trustee) or any
         affiliate thereof serves as an investment advisor, manager,
         administrator, shareholder, servicing agent, and/or custodian or
         sub-custodian; and

                  (vi)     other obligations or securities that are acceptable
         to each Rating Agency as a Permitted Investment hereunder and will not
         reduce the rating assigned to any Class of Notes by such Rating Agency
         below the lower of the then-current rating or the rating assigned to
         such Notes as of the Closing Date by such Rating Agency, as evidenced
         in writing; and

                  (vii)    any investment approved in writing by each of the
         Rating Agencies.

The Indenture Trustee may purchase from or sell to itself or an affiliate, as
principal or agent, the Eligible Investments listed above.

PROVIDED, HOWEVER, that no instrument shall be an Eligible Investment if it
represents, either (1) the right to receive only interest payments with respect
to the underlying debt instrument or (2) the right to receive both principal and
interest payments derived from obligations underlying such instrument and the
principal and interest payments with respect to such instrument provide a yield
to maturity greater than 120% of the yield to maturity at par of such underlying
obligations.

         ELIGIBLE SUBSTITUTE MORTGAGE LOAN: A Mortgage Loan substituted by the
Seller for a Deleted Mortgage Loan which must, on the date of such substitution,
as confirmed in an Officer's Certificate delivered to the Indenture Trustee, (i)
have an outstanding principal balance, after deduction of the principal portion
of the monthly payment due in the month of substitution (or in the case of a
substitution of more than one Mortgage Loan for a Deleted Mortgage Loan, an
aggregate outstanding principal balance, after such deduction), not in excess of
the

                                       14
<PAGE>

outstanding principal balance of the Deleted Mortgage Loan (the amount of any
shortfall to be deposited by the Seller in the related Collection Account in the
month of substitution); (ii) comply with each non-statistical representation and
warranty set forth in Section 3.1(b) of the Mortgage Loan Purchase Agreement as
of the date of substitution; (iii) have a Mortgage Rate no lower than and not
more than 1% per annum higher than the Mortgage Rate of the Deleted Mortgage
Loan as of the date of substitution; (iv) have a Loan-to-Value Ratio, or
Combined-Loan-to-Value Ratio in the case of a HELOC Mortgage Loan, at the time
of substitution no higher than that of the Deleted Mortgage Loan at the time of
substitution; (v) have a remaining term to stated maturity not greater than (and
not more than one year less than) that of the Deleted Mortgage Loan; (vi) not be
30 days or more delinquent; (vii) be an adjustable-rate first lien Mortgage
Loan, if being substituted for an ARM Loan; (viii) be a fixed-rate first lien
Mortgage Loan, if being substituted for a Fixed Rate Loan; (ix) in the case of a
HELOC Mortgage Loan, have a Maximum Mortgage Rate based on the Index, determined
in accordance with then current underwriting standards; (x) in the case of a
HELOC Mortgage Loan, have a Margin that is not less than the Margin of the
Deleted Mortgage Loan and not more than 1% higher than the Margin for the
Deleted Mortgage Loan and (xi) in the case of a HELOC Mortgage Loan, have a
Mortgage of the same or higher level of priority as the Mortgage relating to the
Deleted Mortgage Loan as of the date of substitution.

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

         EVENT OF DEFAULT: Any one of the following: (a) the failure by the
Issuer to pay Accrued Note Interest on any Class of Notes, other than the Class
N Notes, with respect to a Payment Date on such Payment Date; (b) a default by
the Issuer in the observance of certain negative covenants in the Indenture; (c)
a default by the Issuer in the observance of any other covenant of the
Indenture, and the continuation of any such default for a period of thirty days
after notice to the Issuer by the Indenture Trustee or by the Holders of at
least 25% of the aggregate Note Principal Balance of the Notes, as applicable;
(d) any representation or warranty made by the Issuer in the Indenture or in any
Note or other writing delivered pursuant thereto having been incorrect in a
material respect as of the time made, and the circumstance in respect of which
such representation or warranty is incorrect not having been cured within thirty
days after notice thereof is given to the Issuer by the Indenture Trustee or by
the Holders of at least 25% of the aggregate Note Principal Balance of the
Notes, as applicable; (e) certain events of bankruptcy, insolvency, receivership
or reorganization of the Issuer; or (f) the failure by the Issuer on the final
scheduled Payment Date to pay all Accrued Note Interest, all remaining Basis
Risk Shortfall Carry-Forward Amounts and to reduce the Note Principal Balances
of all of the Notes to zero..

         EVENT OF MASTER SERVICER TERMINATION: With respect to the HELOC
Servicing Agreement and RMBS Servicing Agreement, a Servicing Default as defined
in Section 6.01 of the HELOC Servicing Agreement and RMBS Servicing Agreement,
as applicable.

         EXCESS OVERCOLLATERALIZATION AMOUNT: For any Payment Date and Loan
Group VII, the amount by which the related Overcollateralized Amount, assuming
the full Investor Principal Distribution Amount was paid on the Class VII-A
Notes for such Payment Date, exceeds the related Overcollateralization Target
Amount; provided, however, that following the occurrence of a Rapid Amortization
Event the Excess Overcollateralization Amount shall be zero.

                                       15
<PAGE>

         EXCHANGE ACT: The Securities Exchange Act of 1934, as amended, and the
rules and regulations promulgated thereunder.

         EXPENSES: The meaning specified in Section 7.02 of the Trust Agreement.

         FANNIE MAE: Fannie Mae (formerly, the Federal National Mortgage
Association), or any successor thereto.

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

         FINAL CERTIFICATION: The final certification delivered by the Custodian
pursuant to Section 2.03(b) of the Custodial Agreement and in the form attached
as Exhibit Two thereto.

         FINAL SCHEDULED PAYMENT DATE: With respect to each Class of Notes,
other than the Class VII-A Notes, the Payment Date in February 2045. With
respect to the Class VII-A Notes, the Trust shall terminate upon notice to the
Indenture Trustee of the later of (A) payment in full of all amounts owing on
the Class VII-A Notes and to the Insurer unless the Insurer shall otherwise
consent and (B) the earliest of (i) the final payment or other liquidation of
the last HELOC remaining in the Trust; (ii) the optional purchase by the
Servicer or by the Insurer of the HELOC Mortgage Loans as described below and
(iii) the Payment Date in September 2030.

         FIXED RATE LOANS: At any time, collectively, all the Mortgage Loans,
excluding HELOC Mortgage Loans, which have fixed Mortgage Rates.

         FIXED HELOC MORTGAGE LOAN RATE BALANCES: The aggregate Stated Principal
Balance of all Fixed Teaser Rate Balances and Locked Balances.

         FIXED TEASER RATE BALANCE: The Stated Principal Balance of any HELOC
Mortgage Loan with respect to which the Fixed Teaser Rate is in effect.

         FIXED TEASER RATE: With respect to any HELOC Mortgage Loan that permits
the Mortgagor to pay an initial fixed rate of interest on such HELOC Mortgage
Loan for three to five months prior to such HELOC Mortgage Loan converting to a
variable rate of interest, the fixed interest rate in effect for such three to
five month period.

         FLOATING ALLOCATION PERCENTAGE: For any Payment Date, the percentage
equivalent of a fraction with a numerator of the Invested Amount at the end of
the previous Due Period (in the case of the first Payment Date, the Invested
Amount as of the Closing Date) and a denominator equal to the sum of (i) the
Group VII Pool Balance and (ii) the Group VII Pre-Funded Amount, in each case at
the end of the previous Due Period (in the case of the first Payment Date, the
Group VII Cut-off Date Balance).

         FORECLOSURE PROFIT: With respect to a Liquidated Mortgage Loan that is
not a HELOC Mortgage Loan, the amount, if any, by which (i) the aggregate of its
Net Liquidation Proceeds exceeds (ii) the related Stated Principal Balance (plus
accrued and unpaid interest thereon at the applicable Mortgage Rate from the
date interest was last paid through the date of receipt of the final Liquidation
Proceeds) of such Liquidated Mortgage Loan immediately prior to the final
recovery of its Liquidation Proceeds. With respect to a Liquidated Mortgage Loan
that is a

                                       16
<PAGE>

HELOC Mortgage Loan, the amount, if any, by which (i) the related aggregate Net
Recoveries exceed (ii) the related Stated Principal Balance (without giving
effect to any reduction thereto in respect of any prior Charge-Off Amounts)
immediately prior to receipt of the final Recoveries plus accrued and unpaid
interest thereon at the applicable Mortgage Rate from the date interest was last
paid through the date of receipt of the final Recoveries.

         FREDDIE MAC: Freddie Mac (also known as the Federal Home Loan Mortgage
Corporation), or any successor thereto.

         FUNDING PERIOD: With respect to the Group I Loans, the period from the
Closing Date until the earlier of (i) the date on which the amount on deposit in
the Group I Pre-Funding Account is reduced to less than $50,000, (ii) a servicer
default or (iii) January 31, 2005. With respect to the Group II Loans, the
period from the Closing Date until the earlier of (i) the date on which the
amount on deposit in the Group II Pre-Funding Account is reduced to less than
$50,000, (ii) a servicer default or (iii) January 31, 2005. With respect to the
Group III Loans, the period from the Closing Date until the earlier of (i) the
date on which the amount on deposit in the Group III Pre-Funding Account is
reduced to less than $50,000, (ii) a servicer default or (iii) January 31, 2005.
With respect to the Group IV Loans, the period from the Closing Date until the
earlier of (i) the date on which the amount on deposit in the Group IV
Pre-Funding Account is reduced to less than $50,000, (ii) a servicer default or
(iii) January 31, 2005. With respect to the Group V Loans, the period from the
Closing Date until the earlier of (i) the date on which the amount on deposit in
the Group V Pre-Funding Account is reduced to less than $50,000, (ii) a servicer
default or (iii) January 31, 2005. With respect to the Group VI Loans, the
period from the Closing Date until the earlier of (i) the date on which the
amount on deposit in the Group VI Pre-Funding Account is reduced to less than
$50,000, (ii) a servicer default or (iii) January 31, 2005. With respect to the
Group VII HELOC Mortgage Loans, the period from the Closing Date until the
earlier of (i) the date on which the amount on deposit in the Group VII
Pre-Funding Account is reduced to less than $50,000, (ii) a Servicing Default or
(iii) January 31, 2005.

         GRANT: Pledge, bargain, sell, warrant, alienate, remise, release,
convey, assign, transfer, create, and grant a lien upon and a security interest
in and right of set-off against, deposit, set over and confirm pursuant to the
Indenture. A Grant of the Collateral or of any other agreement or instrument
shall include all rights, powers and options (but none of the obligations) of
the granting party thereunder, including the immediate and continuing right to
claim for, collect, receive and give receipt for principal and interest payments
in respect of such collateral or other agreement or instrument and all other
moneys payable thereunder, to give and receive notices and other communications,
to make waivers or other agreements, to exercise all rights and options, to
bring proceedings in the name of the granting party or otherwise, and generally
to do and receive anything that the granting party is or may be entitled to do
or receive thereunder or with respect thereto.

         GROSS MARGIN: With respect to any ARM Loan, the percentage set forth as
the "Gross Margin" for such Mortgage Loan on the Mortgage Loan Schedule, as
adjusted from time to time in accordance with the terms of the RMBS Servicing
Agreement.

         GROUP I AVAILABLE FUNDS: For any Payment Date, an amount equal to the
amount received by the Indenture Trustee and available in the Payment Account on
that Payment Date in respect

                                       17
<PAGE>

of the Group I Loans. The Group I Available Funds generally includes: (1) all
previously undistributed payments on account of principal (including the
principal portion of Monthly Payments, Principal Prepayments and the principal
amount of Net Liquidation Proceeds) and all previously undistributed payments on
account of interest received after the Cut-Off Date and on or prior to the
related Determination Date from the Group I Loans and (2) any Monthly Advances
and Compensating Interest Payments on the Group I Loans made by the Master
Servicer for such Payment Date and (3) any amounts reimbursed by the Master
Servicer or the Indenture Trustee in connection with losses on certain eligible
investments in the Master Servicer Collection Account or the Payment Account,
(4) amounts transferred from the Group I Interest Coverage Account and, at the
end of the Funding Period, any excess amounts transferred from the Group I
Pre-Funding Account, and (5) interest earned on amounts on deposit in the Group
I Pre-Funding Account, and is net of (6) fees payable to, and other amounts
reimbursable to, the Master Servicer, the Indenture Trustee and the Owner
Trustee and other amounts as provided in the Agreements allocable to the Group I
Loans.

         GROUP I CUT-OFF DATE BALANCE: The sum of (x) the aggregate Stated
Principal Balance of the Group I Loans as of the Cut-off Date and (y) the Group
I Original Pre-Funded Amount.

         GROUP I INTEREST COVERAGE ACCOUNT: A trust account that the Indenture
Trustee will establish pursuant to Section 3.30 of the Indenture for the benefit
of the Class I-A Notes and Class M Notes. The amount to be deposited in the
Group I Interest Coverage Account on the Closing date will be $69,103.16

         GROUP I LOAN: A Mortgage Loan in Loan Group I.

         GROUP I ORIGINAL PRE-FUNDED AMOUNT: The amount deposited in the Group I
Pre-Funding Account on the Closing Date by the Depositor, which will be
$47,620,587.62.

         GROUP I PRE-FUNDED AMOUNT: The amount on deposit in the Group I
Pre-Funding Account on any date of determination.

         GROUP I PRE-FUNDING ACCOUNT: An account established by the Indenture
Trustee for the benefit of the Class I-A Notes and Class M Notes and funded on
the Closing Date by the Depositor with the Group I Original Pre-Funded Amount.

         GROUP I SUBSEQUENT MORTGAGE LOAN: A Mortgage Loan sold by the Depositor
to the Trust Estate pursuant to Section 2.05 of the Indenture, such Mortgage
Loan being identified on the related Mortgage Loan Schedule attached to the
Group I Subsequent Transfer Instrument.

         GROUP I SUBSEQUENT MORTGAGE LOAN PURCHASE AGREEMENT: The Subsequent
Mortgage Loan Purchase Agreement, dated as of the applicable Subsequent Transfer
Date, between the Seller, as seller, and the Purchaser, as purchaser, relating
to the sale, transfer and assignment of the Group I Subsequent Mortgage Loans.

         GROUP I SUBSEQUENT TRANSFER INSTRUMENT: With respect to the Group I
Subsequent Mortgage Loans, the subsequent transfer instrument, dated as of the
applicable Subsequent Transfer Date, between American Home Mortgage Securities,
LLC., as depositor, and The Bank of New York, as indenture trustee.

                                       18
<PAGE>

         GROUP II 3/1 HYBRID LOAN: Any Group II Loan with an initial fixed rate
period of 3 years, followed by an adjustable rate period, as indicated in the
Mortgage Loan Schedule.

         GROUP II AVAILABLE FUNDS: For any Payment Date, an amount equal to the
amount received by the Indenture Trustee and available in the Payment Account on
that Payment Date in respect of the Group II Loans. The Group II Available Funds
generally includes: (1) all previously undistributed payments on account of
principal (including the principal portion of Monthly Payments, Principal
Prepayments and the principal amount of Net Liquidation Proceeds) and all
previously undistributed payments on account of interest received after the
Cut-Off Date and on or prior to the related Determination Date from the Group II
Loans and (2) any Monthly Advances and Compensating Interest Payments on the
Group II Loans made by the Master Servicer for such Payment Date and (3) any
amounts reimbursed by the Master Servicer or the Indenture Trustee in connection
with losses on certain eligible investments in the Master Servicer Collection
Account or the Payment Account, (4) amounts transferred from the Group II
Interest Coverage Account and, at the end of the Funding Period, any excess
amounts transferred from the Group II Pre-Funding Account, and (5) interest
earned on amounts on deposit in the Group II Pre-Funding Account, and is net of
(6) fees payable to, and other amounts reimbursable to, the Master Servicer, the
Indenture Trustee and the Owner Trustee and other amounts as provided in the
Agreements allocable to the Group II Loans.

         GROUP II CUT-OFF DATE BALANCE: The sum of (x) the aggregate Stated
Principal Balance of the Group II Loans as of the Cut-off Date and (y) the Group
II Original Pre-Funded Amount.

         GROUP II INTEREST COVERAGE ACCOUNT: A trust account that the Indenture
Trustee will establish pursuant to Section 3.30 of the Indenture for the benefit
of the Class I-A Notes and Class M Notes. The amount to be deposited in the
Group II Interest Coverage Account on the Closing date will be $440,121.08.

         GROUP II LOAN: A Mortgage Loan in Loan Group I.

         GROUP II NET SWAP AGREEMENT PAYMENT AMOUNT: With respect to any Payment
Date, the amount equal to the excess, if any, of (a) the aggregate amount
payable on that Payment Date to the Trust from the Swap Agreement Counterparty
pursuant to the Group II Swap Agreement, over (b) the aggregate amount payable
on that Payment Date to the Swap Agreement Counterparty under the Group II Swap
Agreement.

         GROUP II PRE-FUNDED ACCOUNT 3/1 BALANCE: $36,397,299.67, reduced by any
amounts from the Group II Pre-Funded Account used to purchase Group II 3/1
Hybrid Loans

         GROUP II ORIGINAL PRE-FUNDED AMOUNT: The amount deposited in the Group
II Pre-Funding Account on the Closing Date by the Depositor, which will be
$90,372,640.20.

         GROUP II PRE-FUNDED AMOUNT: The amount on deposit in the Group II
Pre-Funding Account on any date of determination.

                                       19
<PAGE>

         GROUP II PRE-FUNDING ACCOUNT: An account established by the Indenture
Trustee for the benefit of the Class I-A Notes and Class M Notes and funded on
the Closing Date by the Depositor with the Group II Original Pre-Funded Amount.

         GROUP II SEQUENTIAL TRIGGER EVENT: A Group II Sequential Trigger Event
is in effect on any Payment Date if, before the 37th Payment Date, the aggregate
amount of Realized Losses on the Group II Loans incurred since the Cut-off Date
through the last day of the related Prepayment Period divided by the aggregate
Stated Principal Balance of the Group II Loans as of the Cut-off Date exceeds
1.75% or if, on or after the 37th Payment Date, a Trigger Event is in effect
with respect to the Group I, Group II, Group III, Group IV and Group V Loans.

         GROUP II SUBSEQUENT MORTGAGE LOAN: A Mortgage Loan sold by the
Depositor to the Trust Estate pursuant to Section 2.06 of the Indenture, such
Mortgage Loan being identified on the related Mortgage Loan Schedule attached to
the Group II Subsequent Transfer Instrument. The aggregate amount of Subsequent
Mortgage Loans for this Loan Group is not less than the initial Group II
Pre-Funded Account 3/1 Balance.

         GROUP II SUBSEQUENT MORTGAGE LOAN PURCHASE AGREEMENT: The Subsequent
Mortgage Loan Purchase Agreement, dated as of the applicable Subsequent Transfer
Date, between the Seller, as seller, and the Purchaser, as purchaser, relating
to the sale, transfer and assignment of the Group II Subsequent Mortgage Loans.

         GROUP II SUBSEQUENT TRANSFER INSTRUMENT: With respect to the Group II
Subsequent Mortgage Loans, the subsequent transfer instrument, dated as of the
applicable Subsequent Transfer Date, between American Home Mortgage Securities,
LLC., as depositor, and The Bank of New York, as indenture trustee.

         GROUP II SWAP AGREEMENT: The Confirmation together with the associated
ISDA Master Agreement with respect to the Swap Agreement between the Indenture
Trustee and the Swap Agreement Counterparty for the benefit of the Class II-A
Notes, a form of which is set forth in Exhibit E of the Indenture.

         GROUP III 3/1 HYBRID LOAN: Any Group III Loan with an initial fixed
rate period of 3 years, followed by an adjustable rate period, as indicated in
the Mortgage Loan Schedule.

         GROUP III AVAILABLE FUNDS: For any Payment Date, an amount equal to the
amount received by the Indenture Trustee and available in the Payment Account on
that Payment Date in respect of the Group III Loans. The Group III Available
Funds generally includes: (1) all previously undistributed payments on account
of principal (including the principal portion of Monthly Payments, Principal
Prepayments and the principal amount of Net Liquidation Proceeds) and all
previously undistributed payments on account of interest received after the
Cut-Off Date and on or prior to the related Determination Date from the Group
III Loans and (2) any Monthly Advances and Compensating Interest Payments on the
Group III Loans made by the Master Servicer for such Payment Date and (3) any
amounts reimbursed by the Master Servicer or the Indenture Trustee in connection
with losses on certain eligible investments in the Master Servicer Collection
Account or the Payment Account, (4) amounts transferred from the Group III
Interest Coverage Account and, at the end of the Funding Period, any excess
amounts

                                       20
<PAGE>

transferred from the Group III Pre-Funding Account, and (5) interest earned on
amounts on deposit in the Group III Pre-Funding Account, and is net of (6) fees
payable to, and other amounts reimbursable to, the Master Servicer, the
Indenture Trustee and the Owner Trustee and other amounts as provided in the
Agreements allocable to the Group III Loans.

         GROUP III CUT-OFF DATE BALANCE: The sum of (x) the aggregate Stated
Principal Balance of the Group III Loans as of the Cut-off Date and (y) the
Group III Original Pre-Funded Amount.

         GROUP III INTEREST COVERAGE ACCOUNT: A trust account that the Indenture
Trustee will establish pursuant to Section 3.30 of the Indenture for the benefit
of the Class I-A Notes and Class M Notes. The amount to be deposited in the
Group III Interest Coverage Account on the Closing date will be $441,097.90.

         GROUP III LOAN: A Mortgage Loan in Loan Group I.

         GROUP III NET SWAP AGREEMENT PAYMENT AMOUNT: With respect to any
Payment Date, the amount equal to the excess, if any, of (a) the aggregate
amount payable on that Payment Date to the Trust from the Swap Agreement
Counterparty pursuant to the Group III Swap Agreement, over (b) the aggregate
amount payable on that Payment Date to the Swap Agreement Counterparty under the
Group III Swap Agreement.

         GROUP III PRE-FUNDED ACCOUNT 3/1 BALANCE: $28,002,962.89, reduced by
any amounts from the Group III Pre-Funded Account used to purchase Group III 3/1
Hybrid Loans

         GROUP III ORIGINAL PRE-FUNDED AMOUNT: The amount deposited in the Group
III Pre-Funding Account on the Closing Date by the Depositor, which will be
$96,474,588.97.

         GROUP III PRE-FUNDED AMOUNT: The amount on deposit
in the Group III Pre-Funding Account on any date of
determination.

         GROUP III PRE-FUNDING ACCOUNT: An account established by the Indenture
Trustee for the benefit of the Class I-A Notes and Class M Notes and funded on
the Closing Date by the Depositor with the Group III Original Pre-Funded Amount.

         GROUP III SUBSEQUENT MORTGAGE LOAN: A Mortgage Loan sold by the
Depositor to the Trust Estate pursuant to Section 2.07 of the Indenture, such
Mortgage Loan being identified on the related Mortgage Loan Schedule attached to
the Group III Subsequent Transfer Instrument. The aggregate amount of Subsequent
Mortgage Loans for this Loan Group is not less than the initial Group III
Pre-Funded Account 3/1 Balance.

         GROUP III SUBSEQUENT MORTGAGE LOAN PURCHASE AGREEMENT: The Subsequent
Mortgage Loan Purchase Agreement, dated as of the applicable Subsequent Transfer
Date, between the Seller, as seller, and the Purchaser, as purchaser, relating
to the sale, transfer and assignment of the Group III Subsequent Mortgage Loans.

         GROUP III SUBSEQUENT TRANSFER INSTRUMENT: With respect to the Group III
Subsequent Mortgage Loans, the subsequent transfer instrument, dated as of the
applicable Subsequent

                                       21
<PAGE>

Transfer Date, between American Home Mortgage Securities, LLC., as depositor,
and The Bank of New York, as indenture trustee.

         GROUP III SWAP AGREEMENT: The Confirmation together with the associated
ISDA Master Agreement with respect to the Swap Agreement between the Indenture
Trustee and the Swap Agreement Counterparty for the benefit of the Class III-A
Notes, a form of which is set forth in Exhibit E of the Indenture.

         GROUP IV AVAILABLE FUNDS: For any Payment Date, an amount equal to the
amount received by the Indenture Trustee and available in the Payment Account on
that Payment Date in respect of the Group IV Loans. The Group IV Available Funds
generally includes: (1) all previously undistributed payments on account of
principal (including the principal portion of Monthly Payments, Principal
Prepayments and the principal amount of Net Liquidation Proceeds) and all
previously undistributed payments on account of interest received after the
Cut-Off Date and on or prior to the related Determination Date from the Group IV
Loans and (2) any Monthly Advances and Compensating Interest Payments on the
Group IV Loans made by the Master Servicer for such Payment Date and (3) any
amounts reimbursed by the Master Servicer or the Indenture Trustee in connection
with losses on certain eligible investments in the Master Servicer Collection
Account or the Payment Account, (4) amounts transferred from the Group IV
Interest Coverage Account and, at the end of the Funding Period, any excess
amounts transferred from the Group IV Pre-Funding Account, and (5) interest
earned on amounts on deposit in the Group IV Pre-Funding Account, and is net of
(6) fees payable to, and other amounts reimbursable to, the Master Servicer, the
Indenture Trustee and the Owner Trustee and other amounts as provided in the
Agreements allocable to the Group IV Loans.

         GROUP IV CUT-OFF DATE BALANCE: The sum of (x) the aggregate Stated
Principal Balance of the Group IV Loans as of the Cut-off Date and (y) the Group
IV Original Pre-Funded Amount.

         GROUP IV INTEREST COVERAGE ACCOUNT: A trust account that the Indenture
Trustee will establish pursuant to Section 3.30 of the Indenture for the benefit
of the Class I-A Notes and Class M Notes. The amount to be deposited in the
Group IV Interest Coverage Account on the Closing date will be $831,578.64.

         GROUP IV LOAN: A Mortgage Loan in Loan Group I.

         GROUP IV ORIGINAL PRE-FUNDED AMOUNT: The amount deposited in the Group
IV Pre-Funding Account on the Closing Date by the Depositor, which will be
$159,760,105.43.

         GROUP IV PRE-FUNDED AMOUNT: The amount on deposit in the Group IV
Pre-Funding Account on any date of determination.

         GROUP IV PRE-FUNDING ACCOUNT: An account established by the Indenture
Trustee for the benefit of the Class I-A Notes and Class M Notes and funded on
the Closing Date by the Depositor with the Group IV Original Pre-Funded Amount.

         GROUP IV SUBSEQUENT MORTGAGE LOAN: A Mortgage Loan sold by the
Depositor to the Trust Estate pursuant to Section 2.08 of the Indenture, such
Mortgage Loan being identified on the related Mortgage Loan Schedule attached to
the Group IV Subsequent Transfer Instrument.

                                       22
<PAGE>

         GROUP IV SUBSEQUENT MORTGAGE LOAN PURCHASE AGREEMENT: The Subsequent
Mortgage Loan Purchase Agreement, dated as of the applicable Subsequent Transfer
Date, between the Seller, as seller, and the Purchaser, as purchaser, relating
to the sale, transfer and assignment of the Group IV Subsequent Mortgage Loans.

         GROUP IV SUBSEQUENT TRANSFER INSTRUMENT: With respect to the Group IV
Subsequent Mortgage Loans, the subsequent transfer instrument, dated as of the
applicable Subsequent Transfer Date, between American Home Mortgage Securities,
LLC., as depositor, and The Bank of New York, as indenture trustee.

         GROUP V AVAILABLE FUNDS: For any Payment Date, an amount equal to the
amount received by the Indenture Trustee and available in the Payment Account on
that Payment Date in respect of the Group V Loans. The Group V Available Funds
generally includes: (1) all previously undistributed payments on account of
principal (including the principal portion of Monthly Payments, Principal
Prepayments and the principal amount of Net Liquidation Proceeds) and all
previously undistributed payments on account of interest received after the
Cut-Off Date and on or prior to the related Determination Date from the Group V
Loans and (2) any Monthly Advances and Compensating Interest Payments on the
Group V Loans made by the Master Servicer for such Payment Date and (3) any
amounts reimbursed by the Master Servicer or the Indenture Trustee in connection
with losses on certain eligible investments in the Master Servicer Collection
Account or the Payment Account, (4) amounts transferred from the Group V
Interest Coverage Account and, at the end of the Funding Period, any excess
amounts transferred from the Group V Pre-Funding Account, and (5) interest
earned on amounts on deposit in the Group V Pre-Funding Account, and is net of
(6) fees payable to, and other amounts reimbursable to, the Master Servicer, the
Indenture Trustee and the Owner Trustee and other amounts as provided in the
Agreements allocable to the Group V Loans.

         GROUP V CUT-OFF DATE BALANCE: The sum of (x) the aggregate Stated
Principal Balance of the Group V Loans as of the Cut-off Date and (y) the Group
V Original Pre-Funded Amount.

         GROUP V INTEREST COVERAGE ACCOUNT: A trust account that the Indenture
Trustee will establish pursuant to Section 3.30 of the Indenture for the benefit
of the Class I-A Notes and Class M Notes. The amount to be deposited in the
Group V Interest Coverage Account on the Closing date will be $547,831.07.

         GROUP V LOAN: A Mortgage Loan in Loan Group I.

         GROUP V ORIGINAL PRE-FUNDED AMOUNT: The amount deposited in the Group V
Pre-Funding Account on the Closing Date by the Depositor, which will be
$107,272,956.23.

         GROUP V PRE-FUNDED AMOUNT: The amount on deposit in the Group V
Pre-Funding Account on any date of determination.

         GROUP V PRE-FUNDING ACCOUNT: An account established by the Indenture
Trustee for the benefit of the Class I-A Notes and Class M Notes and funded on
the Closing Date by the Depositor with the Group V Original Pre-Funded Amount.

                                       23
<PAGE>

         GROUP V SUBSEQUENT MORTGAGE LOAN: A Mortgage Loan sold by the Depositor
to the Trust Estate pursuant to Section 2.09 of the Indenture, such Mortgage
Loan being identified on the related Mortgage Loan Schedule attached to the
Group V Subsequent Transfer Instrument.

         GROUP V SUBSEQUENT MORTGAGE LOAN PURCHASE AGREEMENT: The Subsequent
Mortgage Loan Purchase Agreement, dated as of the applicable Subsequent Transfer
Date, between the Seller, as seller, and the Purchaser, as purchaser, relating
to the sale, transfer and assignment of the Group V Subsequent Mortgage Loans.

         GROUP V SUBSEQUENT TRANSFER INSTRUMENT: With respect to the Group V
Subsequent Mortgage Loans, the subsequent transfer instrument, dated as of the
applicable Subsequent Transfer Date, between American Home Mortgage Securities,
LLC., as depositor, and The Bank of New York, as indenture trustee.

         GROUP VI AVAILABLE FUNDS: For any Payment Date, an amount equal to the
amount received by the Indenture Trustee and available in the Payment Account on
that Payment Date in respect of the Group VI Loans. The Group VI Available Funds
generally includes: (1) all previously undistributed payments on account of
principal (including the principal portion of Monthly Payments, Principal
Prepayments and the principal amount of Net Liquidation Proceeds) and all
previously undistributed payments on account of interest received after the
Cut-Off Date and on or prior to the related Determination Date from the Group VI
Loans and (2) any Monthly Advances and Compensating Interest Payments on the
Group VI Loans made by the Master Servicer for such Payment Date and (3) any
amounts reimbursed by the Master Servicer or the Indenture Trustee in connection
with losses on certain eligible investments in the Master Servicer Collection
Account or the Payment Account, (4) amounts transferred from the Group VI
Interest Coverage Account and, at the end of the Funding Period, any excess
amounts transferred from the Group VI Pre-Funding Account, and (5) interest
earned on amounts on deposit in the Group VI Pre-Funding Account, and is net of
(6) fees payable to, and other amounts reimbursable to, the Master Servicer, the
Indenture Trustee and the Owner Trustee and other amounts as provided in the
Agreements allocable to the Group VI Loans.

         GROUP VI CUT-OFF DATE BALANCE: The sum of (x) the aggregate Stated
Principal Balance of the Group VI Loans as of the Cut-off Date and (y) the Group
VI Original Pre-Funded Amount.

         GROUP VI INTEREST COVERAGE ACCOUNT: A trust account that the Indenture
Trustee will establish pursuant to Section 3.30 of the Indenture for the benefit
of the Class I-A Notes and Class M Notes. The amount to be deposited in the
Group VI Interest Coverage Account on the Closing Date will be $383,812.57.

         GROUP VI LOAN: A Mortgage Loan in Loan Group I.

         GROUP VI ORIGINAL PRE-FUNDED AMOUNT: The amount deposited in the Group
VI Pre-Funding Account on the Closing Date by the Depositor, which will be
$62,546,325.61.

         GROUP VI PRE-FUNDED AMOUNT: The amount on deposit in the Group VI
Pre-Funding Account on any date of determination.

                                       24
<PAGE>

         GROUP VI PRE-FUNDING ACCOUNT: An account established by the Indenture
Trustee for the benefit of the Class I-A Notes and Class M Notes and funded on
the Closing Date by the Depositor with the Group VI Original Pre-Funded Amount.

         GROUP VI SUBSEQUENT MORTGAGE LOAN: A Mortgage Loan sold by the
Depositor to the Trust Estate pursuant to Section 2.10 of the Indenture, such
Mortgage Loan being identified on the related Mortgage Loan Schedule attached to
the Group VI Subsequent Transfer Instrument.

         GROUP VI SUBSEQUENT MORTGAGE LOAN PURCHASE AGREEMENT: The Subsequent
Mortgage Loan Purchase Agreement, dated as of the applicable Subsequent Transfer
Date, between the Seller, as seller, and the Purchaser, as purchaser, relating
to the sale, transfer and assignment of the Group VI Subsequent Mortgage Loans.

         GROUP VI SUBSEQUENT TRANSFER INSTRUMENT: With respect to the Group VI
Subsequent Mortgage Loans, the subsequent transfer instrument, dated as of the
applicable Subsequent Transfer Date, between the Depositor and the Indenture
Trustee.

         GROUP VII CUT-OFF DATE BALANCE: The sum of (x) the aggregate Stated
Principal Balance of the Group VII HELOC Mortgage Loans as of the Cut-off Date
and (y) the Group VII Original Pre-Funded Amount.

         GROUP VII DELINQUENT HELOC AMOUNT: With respect to any Payment Date,
the aggregate Stated Principal Balance of any Group VII Loans included in the
Trust which are 180 days or more delinquent, REO, in bankruptcy or in
foreclosure.

         GROUP VII EXCESS SPREAD PERCENTAGE: With respect to any Payment Date,
the percentage equivalent of a fraction, (A) the numerator of which is the
product of (i) the excess of (x) the Investor Interest Collections on the Group
VII Loans for that Payment Date over (y) the sum of the Accrued Note Interest on
the Group VII Loans, the premium due to the Insurer under the Insurance Policy,
any Investor Charge-Off Amounts, any reimbursement amounts and other amounts
payable to the Insurer pursuant to the Insurance Agreement, and the related
servicing fee for such Payment Date and (ii) twelve (12), and (B) the
denominator of which is the aggregate Stated Principal Balance of the Group VII
Loans as of the beginning of the related Due Period.

         GROUP VII INTEREST COVERAGE ACCOUNT: A trust account that the Indenture
Trustee will establish pursuant to Section 3.31 of the Indenture for the benefit
of the Group VII Noteholders and the Insurer. The amount to be deposited in the
Group VII Interest Coverage Account on the Closing Date will be $120,309.53.

         GROUP VII ORIGINAL PRE-FUNDED AMOUNT: The amount deposited in the Group
VII Pre-Funding Account on the Closing Date by the Depositor, which will be
approximately $35,600,000.

         GROUP VII POOL BALANCE: For any Payment Date, an amount equal to the
aggregate of the Principal Balances of the HELOC Mortgage Loans at the end of
the related Due Period.

         GROUP VII PRE-FUNDED AMOUNT: The amount on deposit in the Group VII
Pre-Funding Account on any date of determination.

                                       25
<PAGE>

         GROUP VII PRE-FUNDING ACCOUNT: An account established by the Indenture
Trustee pursuant to Section 3.30 of the Indenture for the benefit of the Group
VII Noteholders and the Insurer and funded on the Closing Date by the Depositor
with the Group VII Original Pre-Funded Amount.

         GROUP VII SUBSEQUENT MORTGAGE LOAN PURCHASE AGREEMENT: The Subsequent
Mortgage Loan Purchase Agreement, dated as of the applicable Subsequent Transfer
Date, between the Seller, as seller, and the Purchaser, as purchaser, relating
to the sale, transfer and assignment of the Group VII Subsequent Mortgage Loans.

         GROUP VII SUBSEQUENT TRANSFER INSTRUMENT: With respect to the Group VII
subsequent HELOC Mortgage Loans, the subsequent transfer instrument, dated as of
the applicable Subsequent Transfer Date, between the Depositor and the Indenture
Trustee.

         GUARANTEED INTEREST PAYMENT: For any Payment Date, an amount equal to
the amount by which (a) accrued and unpaid interest for payment on the Class
VII-A Notes, excluding any Relief Act Shortfalls at the Note Interest Rate
relating to the Class VII-A Notes, exceeds (b) the amount available for interest
distributions on the Class VII-A Notes on such Payment Date.

         GUARANTEED PRINCIPAL PAYMENT AMOUNT: With respect to any Payment Date,
other than the Payment Date in September 2030, the excess, if any, by which (a)
the Note Principal Balance relating to the Class VII-A Notes (after giving
effect to all payments of principal on the Class VII-A Notes on such Payment
Date, but without giving effect to payments under the Insurance Policy to be
made on such Payment Date) exceeds (b) the Invested Amount as of the end of the
related Due Period or, with respect to the Payment Date in September 2030, the
Note Principal Balance relating to the Class VII-A Notes after giving effect to
all other distributions of principal of the Class VII-A Notes on such Payment
Date.

         HAZARDOUS MATERIALS: Any dangerous, toxic or hazardous pollutants,
chemicals, wastes, or substances, including, without limitation, those so
identified pursuant to the Comprehensive Environmental Response, Compensation
and Liability Act, 42 U.S.C. Section 9601 et seq., or any other environmental
laws now existing, and specifically including, without limitation, asbestos and
asbestos-containing materials, polychlorinated biphenyls, radon gas, petroleum
and petroleum products, urea formaldehyde and any substances classified as being
"in inventory", "usable work in progress" or similar classification which would,
if classified unusable, be included in the foregoing definition.

         HELOC BALANCE: With respect to any HELOC Mortgage Loan, the portion, if
any, of the Stated Principal Balance thereof subject to a variable Mortgage
Rate.

         HELOC MASTER SERVICER: GMAC Mortgage Corporation, a Pennsylvania
corporation, and its successors and assigns.

         HELOC MASTER SERVICER REMITTANCE DATE: The eighteenth (18th) calendar
day of each month or, if such eighteenth (18th) day is not a Business Day, then
the Business Day immediately following such eighteenth (18th) day of the month.

                                       26
<PAGE>

         HELOC MASTER SERVICING FEE: With respect to each HELOC Mortgage Loan
and any Payment Date, the fee payable monthly to the HELOC Master Servicer by
the Indenture Trustee pursuant to the HELOC Master Servicing Agreement, or to
the HELOC Subservicer on behalf of the HELOC Master Servicer, in respect of
master servicing compensation. For the avoidance of doubt, the HELOC Master
Servicing Fee payable to the HELOC Master Servicer, or to the HELOC Subservicer
on behalf of the HELOC Master Servicer, shall not exceed in the aggregate the
HELOC Master Servicing Fee Rate.

         HELOC MASTER SERVICING FEE RATE: With respect to any HELOC Mortgage
Loan, 0.50% per annum.

         HELOC MORTGAGE LOANS:  The Group VII Mortgage Loans.

         HELOC MORTGAGE LOAN SCHEDULE: The schedule of HELOC Mortgage Loans
attached as Exhibit A to the HELOC Servicing Agreement.

         HELOC SERVICING AGREEMENT: The Servicing Agreement dated as of December
21, 2004, among the HELOC Master Servicer, the Issuer, the Seller and the
Indenture Trustee.

         HELOC SUBSERVICER: American Home Mortgage Servicing, Inc., a Maryland
corporation, and its successors and assigns.

         HELOC SUBSERVICER REMITTANCE DATE: The eighteenth (18th) calendar day
of each month or, if such eighteenth (18th) day is not a Business Day, then the
Business Day immediately following such eighteenth (18th) day of the month.

         HELOC SUBSERVICING AGREEMENT: The Subservicing Agreement, dated as of
December 21, 2004, between the HELOC Master Servicer and the HELOC Subservicer.

         HELOC SUBSERVICING FEE: With respect to each HELOC Mortgage Loan and
any Payment Date, the fee payable monthly to the HELOC Subservicer by the HELOC
Master Servicer in respect of subservicing compensation that accrues at an
annual rate equal to the HELOC Subservicing Fee Rate multiplied by the Stated
Principal Balance of such HELOC Mortgage Loan as of the related Due Date in the
related Due Period.

         HELOC SUBSERVICING FEE RATE: With respect to any HELOC Mortgage Loan
0.50% per annum.

         INDEMNIFIED PARTY: The meaning specified in Section 7.02 of the Trust
Agreement.

         INDEMNIFICATION AGREEMENT: The Indemnification Agreement dated as of
December 21, 2004 among the Seller, the Issuer, AHMIC, the Depositor, Lehman
Brothers, Inc. and the Insurer, including any amendments and supplements thereto
in accordance with the terms thereof.

         INDENTURE: The indenture dated as of December 21, 2004, between the
Issuer and the Indenture Trustee, relating to the American Home Mortgage
Investment Trust 2004-4 Notes.

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         INDENTURE TRUSTEE: The Bank of New York, and its successors and assigns
or any successor indenture trustee appointed pursuant to the terms of the
Indenture.

         INDENTURE TRUSTEE FEE: All investment income and earnings on the funds
from time to time in the Payment Account.

         INDEPENDENT: When used with respect to any specified Person, the Person
(i) is in fact independent of the Issuer, any other obligor on the Notes, the
Seller, the HELOC Master Servicer, the RMBS Master Servicer, the Depositor,
American Home Mortgage Investment Corp. and any Affiliate of any of the
foregoing Persons, (ii) does not have any direct financial interest or any
material indirect financial interest in the Issuer, any such other obligor, the
Seller, the HELOC Master Servicer, the RMBS Master Servicer, the Depositor,
American Home Mortgage Investment Corp. or any Affiliate of any of the foregoing
Persons and (iii) is not connected with the Issuer, any such other obligor, the
Seller, the HELOC Master Servicer, the RMBS Master Servicer, the Depositor,
American Home Mortgage Investment Corp. or any Affiliate of any of the foregoing
Persons as an officer, employee, promoter, underwriter, trustee, partner,
director or person performing similar functions.

         INDEPENDENT CERTIFICATE: A certificate or opinion to be delivered to
the Indenture Trustee under the circumstances described in, and otherwise
complying with, the applicable requirements of Section 10.01 of the Indenture,
made by an independent appraiser or other expert appointed by an Issuer Request
and approved by the Indenture Trustee in the exercise of reasonable care, and
such opinion or certificate shall state that the signer has read the definition
of "Independent" in this Indenture and that the signer is Independent within the
meaning thereof.

         INDEX: With respect to any Mortgage Loan that is not a HELOC Mortgage
Loan, the index for the adjustment of the Mortgage Rate set forth as such in the
related Mortgage Note. With respect to any HELOC Mortgage Loan and any
Adjustment Date (other than any Locked Balance, except for purposes of
calculating the Recalculated Weighted Average Margin), the highest "prime rate"
most recently published in the Wall Street Journal. If the "prime rate" is no
longer published, then the Index will be a comparable independent index selected
by the Seller. For any Locked Balance, the Index shall equal such "prime rate"
as of the date of that would have been the most recent Adjustment Date for such
Locked Balance had it remained a HELOC Balance.

         INITIAL NOTE PRINCIPAL BALANCE: With respect to the Class I-A-1 Notes,
$204,824,500. With respect to the Class I-A-2 Notes, $36,145,500. With respect
to the Class II-A-1 Notes, $497,673,900. With respect to the Class II-A-2 Notes,
$55,297,100.With respect to the Class III-A Notes, $521,774,000. With respect to
the Class IV-A Notes, $842,617,000. With respect to the Class V-A Notes,
$550,442,000. With respect to the Class VI-A-1 Notes, $281,677,000. With respect
to the Class VI-A-2 Notes, $15,000,000. With respect to the Class VII-A Notes,
$221,112,000. With respect to the Class M-1 Notes, $96,118,000. With respect to
the Class M-2 Notes, $71,360,000. With respect to the Class M-3 Notes,
$26,214,000. With respect to the Class VI-M-1 Notes, $39,099,000. With respect
to the Class VI-M-2 Notes, $14,146,000. With respect to the Class VI-M-3 Notes,
$9,824,000. With respect to the Class VI-B-1 Notes, $9,824,000. With respect to
the Class VI-B-2 Notes, $9,234,000. With respect to the Class VI-B-3 Notes,
$8,252,000. With respect to the Class N Notes, $21,200,000.

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         INITIAL CERTIFICATION: The initial certification delivered by the
Custodian pursuant to Section 2.03(a) of the Custodial Agreement and in the form
attached thereto as Exhibit One thereto.

         INSURANCE AGREEMENT: The Insurance Agreement dated as of December 21,
2004 among the Indenture Trustee, the Seller, the Issuer, AHMIC, the HELOC
Subservicer, the Depositor, the Owner Trustee and the Insurer, including any
amendments and supplements thereto in accordance with the terms thereof.

         INSURANCE POLICY: The note guaranty insurance policy (No. 45527) with
respect to the Class VII-A Notes and all endorsements thereto, if any, dated the
Closing Date, issued by the Insurer for the benefit of the Holders of the Class
VII-A Notes, a copy of which is attached as Exhibit F to the Indenture.

         INSURANCE PROCEEDS: Proceeds paid by any insurer pursuant to any
insurance policy covering a Mortgage Loan which are required to be remitted to
the HELOC Master Servicer, the HELOC Subservicer or the RMBS Master Servicer, as
applicable, net of any component thereof, released to the Mortgagor in
accordance with the HELOC Master Servicer's, the HELOC Subservicer's or the RMBS
Master Servicer's normal servicing procedures, as applicable.

         INSURED PAYMENT: With respect to the Class VII-A Notes, (a) as of any
Payment Date, any Deficiency Amount and (b) any Preference Amount.

         INSURER: MBIA Insurance Corporation, a corporation organized and
created under the laws of the State of New York, or any successor thereto.

         INSURER DEFAULT: The existence and continuance of any of the following:
(a) a failure by the Insurer to make a payment required under the Insurance
Policy in accordance with its terms; or (b)(i) the Insurer (A) files any
petition or commences any case or proceeding under any provision or chapter of
the Bankruptcy Code or any other similar federal or state law relating to
insolvency, bankruptcy, rehabilitation, liquidation or reorganization, (B) makes
a general assignment for the benefit of its creditors, or (C) has an order for
relief entered against it under the Bankruptcy Code or any other similar federal
or state law relating to insolvency, bankruptcy, rehabilitation, liquidation or
reorganization which is final and nonappealable; or (ii) a court of competent
jurisdiction, the New York Department of Insurance or other competent regulatory
authority enters a final and nonappealable order, judgment or decree (A)
appointing a custodian, trustee, agent or receiver for the Insurer or for all or
any material portion of its property or (B) authorizing the taking of possession
by a custodian, trustee, agent or receiver of the Insurer (or the taking of
possession of all or any material portion of the property of the Insurer).

         INTEREST COLLECTIONS: For each Payment Date, are amounts collected
during the related Due Period on the HELOC Mortgage Loans and allocated to
interest in accordance with the terms of the related Credit Line Agreements,
together with the interest portion of any Repurchase Price and substitution
adjustment amount paid during the related Due Period and any Net Recoveries on
HELOC Mortgage Loans that were previously Charged-Off HELOC Mortgage Loans.

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<PAGE>

         INTEREST DETERMINATION DATE: With respect each class of LIBOR Notes and
(i) the first Accrual Period, the second LIBOR Business Day preceding the
Closing Date, and (ii) with respect to each Accrual Period thereafter, the
second LIBOR Business Day preceding the related Payment Date on which such
Accrual Period commences.

         INTEREST RATE ADJUSTMENT DATE: With respect to each Mortgage Loan, the
date or dates on which the Mortgage Rate is adjusted in accordance with the
related Mortgage Note.

         INTERESTED PERSON: As of any date of determination, the Depositor, the
HELOC Master Servicer, the HELOC Subservicer, the RMBS Master Servicer, the
Indenture Trustee, American Home Mortgage Investment Corp., any Mortgagor, or
any Person actually known to a Responsible Officer of the Trustee to be an
Affiliate of any of them.

         INVESTED AMOUNT: For any Payment Date, the Invested Amount on the
Closing Date reduced by (i) the aggregate amount of Investor Principal
Distribution Amounts (before taking into account any Overcollateralization
Reduction Amount) up to and including the related Payment Date and (ii) the
aggregate of Investor Charge-Off Amounts up to and including such Payment Date.
The Invested Amount on the Closing Date is $222,000,000 (the Group VII Cut-Off
Date Balance).

         INVESTOR CHARGE-OFF AMOUNT: For any Payment Date, the Floating
Allocation Percentage of Charge-Off Amounts incurred during the related Due
Period.

         INVESTOR INTEREST COLLECTIONS: For any Payment Date, the Floating
Allocation Percentage of Interest Collections for the related Due Period.

         INTEREST COVERAGE ACCOUNT: Each of the Group I Interest Coverage
Account, Group II Interest Coverage Account, Group III Interest Coverage
Account, Group IV Interest Coverage Account, Group V Interest Coverage Account,
Group VI Interest Coverage Account and Group VII Interest Coverage Account. The
Group VII Interest Coverage Amount is $120,309.53.

         INTEREST COVERAGE AMOUNT: The Group I Interest Coverage Amount is
$69,103.16. The Group II Interest Coverage Amount is $440,121,.08. The Group III
Interest Coverage Amount is $441,097.90. The Group IV Interest Coverage Amount
is $831,578.64. The Group V Interest Coverage Amount is $547,831.07. The Group
VI Interest Coverage Amount is $383,812.57.

         INVESTOR PRINCIPAL DISTRIBUTION AMOUNT: On every Payment Date from the
first Payment Date through and including the Payment Date in December 2009,
unless a Rapid Amortization Event has occurred is equal to the excess, if any,
of all Principal Collections received during the related Due Period over the
amount of all Additional Balances resulting from Draws made pursuant to the
related HELOC Mortgage Loan during the related Due Period; and on every Payment
Date after the Payment Date in December 2009 or if a Rapid Amortization Event
has previously occurred, is equal to all Principal Collections received during
the related Due Period. In each case such amount will be reduced by the
Overcollateralization Reduction Amount.

         INVESTMENT COMPANY ACT: The Investment Company Act of 1940, as amended,
and any amendments thereto.

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<PAGE>

         IRS: The Internal Revenue Service.

         ISSUER: American Home Mortgage Investment Trust 2004-4, a Delaware
statutory trust, or its successor in interest.

         ISSUER REQUEST: A written order or request signed in the name of the
Issuer by any one of its Authorized Officers and delivered to the Indenture
Trustee.

         LIBOR BUSINESS DAY: A day on which banks are open for dealing in
foreign currency and exchange in London and New York City.

         LIBOR NOTE: A Class I-A Note, Class II-A, Class III-A, Class VII-A
Note, Class M, Class VI-M or Class VI-B Note, or any Class IV-A Note or Class
V-A Note after the related Note Rate Change Date.

         LIEN: Any mortgage, deed of trust, pledge, conveyance, hypothecation,
assignment, participation, deposit arrangement, encumbrance, lien (statutory or
other), preference, priority right or interest or other security agreement or
preferential arrangement of any kind or nature whatsoever, including, without
limitation, any conditional sale or other title retention agreement, any
financing lease having substantially the same economic effect as any of the
foregoing and the filing of any financing statement under the UCC (other than
any such financing statement filed for informational purposes only) or
comparable law of any jurisdiction to evidence any of the foregoing; PROVIDED,
HOWEVER, that any assignment pursuant to Section 6.02 of the HELOC Servicing
Agreement or RMBS Servicing Agreement, as applicable, shall not be deemed to
constitute a Lien.

         LIFETIME RATE CAP: With respect to each Mortgage Loan with respect to
which the related Mortgage Note provides for a lifetime rate cap, the maximum
Mortgage Rate permitted over the life of such Mortgage Loan under the terms of
such Mortgage Note, as set forth in the Mortgage Loan Schedule.

         LIQUIDATED HELOC: Any HELOC Mortgage Loan that has become a Liquidated
Mortgage Loan.

         LIQUIDATED MORTGAGE LOAN: With respect to any Payment Date, any
Mortgage Loan in respect of which the HELOC Master Servicer, HELOC Subservicer
or RMBS Master Servicer, as applicable, has determined, in accordance with the
servicing procedures specified in the HELOC Servicing Agreement, HELOC
Subservicing Agreement or RMBS Servicing Agreement, as applicable, as of the end
of the related Due Period that substantially all Liquidation Proceeds, and/or
Recoveries with respect to a Charged-Off HELOC Mortgage Loan, which it
reasonably expects to recover with respect to the disposition of the related
Mortgaged Property or REO Property have been recovered.

         LIQUIDATION EXPENSES: Out-of-pocket expenses (exclusive of overhead)
which are incurred by or on behalf of the HELOC Master Servicer, HELOC
Subservicer or RMBS Master Servicer, as applicable, in connection with the
liquidation of any Mortgage Loan and not recovered under any insurance policy,
such expenses including, without limitation, legal fees and expenses, any
unreimbursed amount expended respecting the related Mortgage Loan and any

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<PAGE>

related and unreimbursed expenditures for real estate property taxes or for
property restoration, preservation or insurance against casualty loss or damage.

         LIQUIDATION PROCEEDS: Proceeds (including Insurance Proceeds) received
in connection with the liquidation of any Mortgage Loan or HELOC Mortgage Loan
or related REO Property, whether through trustee's sale, foreclosure sale or
otherwise.

         LOAN GROUP: Any of Loan Group I, Loan Group II, Loan Group III, Loan
Group IV, Loan Group V, Loan Group VI or Loan Group VII.

         LOAN GROUP I: The Group I Loans.

         LOAN GROUP II: The Group II Loans.

         LOAN GROUP III: The Group III Loans.

         LOAN GROUP IV: The Group IV Loans.

         LOAN GROUP V: The Group V Loans.

         LOAN GROUP VI: The Group VI Loans.

         LOAN GROUP VII: The Group VII Loans.

         LOAN-TO-VALUE RATIO: With respect to any Mortgage Loan, as of any date
of determination, a fraction expressed as a percentage, the numerator of which
is the then current principal amount of the Mortgage Loan, and the denominator
of which is the Appraised Value of the related Mortgaged Property.

         LOAN YEAR: With respect to any Mortgage Loan, the one-year period
commencing on the day succeeding the origination of such Mortgage Loan and
ending on the anniversary date of such Mortgage Loan, and each annual period
thereafter.

         LOCK FEATURE: An option available to a Mortgagor under a HELOC Mortgage
Loan that permits the Mortgagor to convert either the entire outstanding balance
due or any portion thereof to a fixed rate closed-end loan.

         LOCKED BALANCE: With respect to any HELOC Mortgage Loan as to which the
Lock Feature has been exercised, the portion of the Stated Principal Balance
thereof subject to a fixed Mortgage Rate.

         LOST NOTE AFFIDAVIT: With respect to any Mortgage Loan as to which the
original Mortgage Note has been lost or destroyed and has not been replaced, an
affidavit from the Seller certifying that the original Mortgage Note has been
lost, misplaced or destroyed (together with a copy of the related Mortgage
Note).

         MAJORITY CERTIFICATEHOLDER: A Holder of a 50.01% or greater Certificate
Percentage Interest of the Certificates.

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<PAGE>

         MANAGED AMORTIZATION PERIOD: The period from the Cut-off Date to the
earlier of (a) the Payment Date in December 2009 and (b) the occurrence of a
Rapid Amortization Event.

         MARGIN: With respect to each HELOC Mortgage Loan (other than (i) any
HELOC Mortgage Loan with a Fixed Teaser Rate in effect or (ii) the Locked
Balance relating to any HELOC Mortgage Loan as to which the Lock Feature has
been exercised), the spread over the applicable Index, as specified in the
related Mortgage Note.

         MASTER SERVICER: Each of the RMBS Master Servicer and the HELOC Master
Servicer, as applicable.

         MASTER SERVICER COLLECTION ACCOUNT: The account or accounts created and
maintained by the related Master Servicer pursuant to a Servicing Agreement.

         MASTER SERVICING FEE: With respect to each Mortgage Loan and any
Payment Date, the fee payable monthly to the Master Servicer in respect of
master servicing compensation that accrues at an annual rate equal to the Master
Servicing Fee Rate multiplied by the Stated Principal Balance of such Mortgage
Loan as of the first day of the related Due Period.

         MASTER SERVICING FEE RATE: The RMBS Master Servicing Fee Rate or the
HELOC Master Servicing Fee Rate, as applicable.

         MAXIMUM NOTE INTEREST RATE: With respect to any Payment Date and each
class of the Class I-A, Class II-A, Class III-A, Class M, Class VI-M and Class
VI-B Notes, and with respect to the Class IV-A Notes and Class V-A Notes and any
Payment Date after the related Rate Change Date, 11.00% per annum.

         MAXIMUM MORTGAGE RATE: With respect to each ARM Loan and each HELOC
Mortgage Loan, the maximum Mortgage Rate.

         MERS: Mortgage Electronic Registration Systems, Inc., a corporation
organized and existing under the laws of the State of Delaware, or any successor
thereto.

         MERS(R) SYSTEM: The system of recording transfers of Mortgages
electronically maintained by MERS.

         MIN: The Mortgage Identification Number for Mortgage Loans registered
with MERS on the MERS(R) System.

         MINIMUM MORTGAGE RATE: With respect to each ARM Loan and each HELOC
Mortgage Loan, the minimum Mortgage Rate.

         MINIMUM MONTHLY PAYMENT: The minimum amount required to be paid by the
mortgagor pursuant to the terms of a Group I mortgage note.

         MINIMUM TRANSFEROR INTEREST:  Zero.

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<PAGE>

         MOM LOAN: With respect to any Mortgage Loan, MERS acting as the
mortgagee of such Mortgage Loan, solely as nominee for the originator of such
Mortgage Loan and its successors and assigns, at the origination thereof.
         MONTHLY ADVANCE: As to any Mortgage Loan, other than a HELOC Mortgage
Loan, any advance made by the RMBS Master Servicer pursuant to Section 4.04 of
the RMBS Servicing Agreement or by a Subservicer in respect of delinquent
Monthly Payments of principal and interest pursuant to the related Subservicing
Agreement.

         MONTHLY PAYMENT: With respect to any Mortgage Loan (including any REO
Property) that is not a HELOC Mortgage Loan and any Due Date, the payment of
principal and interest due thereon in accordance with the amortization schedule
at the time applicable thereto (after adjustment, if any, for partial Principal
Prepayments and for Deficient Valuations occurring prior to such Due Date but
before any adjustment to such amortization schedule by reason of any bankruptcy,
other than a Deficient Valuation, or similar proceeding or any moratorium or
similar waiver or grace period). With respect to any HELOC Mortgage Loan, the
scheduled monthly payment of principal and/or interest required to be made by a
Mortgagor on such HELOC Mortgage Loan.

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

         MORTGAGE: The mortgage, deed of trust or other instrument creating a
first, second or third lien on an estate in fee simple interest in real property
securing a Mortgage Loan.

         MORTGAGE FILE: The file containing the Related Documents pertaining to
a particular Mortgage Loan and any additional documents required to be added to
the Mortgage File pursuant to the Mortgage Loan Purchase Agreement or the HELOC
Servicing Agreement or RMBS Servicing Agreement, as applicable.

         MORTGAGE LOANS: The Mortgage Loans and HELOC Mortgage Loans that will
be transferred and assigned to the Trust pursuant to Section 2.03(a) of the
Indenture, each Mortgage Loan so held being identified in the Mortgage Loan
Schedule. The Mortgage Loans have been divided into seven groups, Loan Group I,
Loan Group II, Loan Group III, Loan Group IV, Loan Group V, Loan Group VI and
Loan Group VII.

         MORTGAGE LOAN PURCHASE AGREEMENT: The Mortgage Loan Purchase Agreement,
dated as of the Closing Date, between the Seller, as seller, and the Purchaser,
as purchaser, relating to the sale, transfer and assignment of the Mortgage
Loans.

         MORTGAGE LOAN SCHEDULE: With respect to any date, the schedule of
Mortgage Loans held by the Issuer on such date. The schedule of Mortgage Loans
as of the Cut-off Date is the schedule set forth in Exhibit B of the Indenture,
which schedule sets forth as to each Mortgage Loan:

         (i)      the loan number and name of the Mortgagor;

         (ii)     the street address, city, state and zip code of the Mortgaged
Property;

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<PAGE>

         (iii)    the original Mortgage Rate;

         (iv)     the maturity date;

         (v)      the original principal balance;

         (vi)     the first Payment Date;

         (vii)    the type of Mortgaged Property;

         (viii)   the Monthly Payment in effect as of the Cut-off Date;

         (ix)     the Cut-off Date Principal Balance and with respect to each
HELOC Mortgage Loan, separately indicating any Locked Balance and any HELOC
Balance;

         (x)      the Index and the Gross Margin, if applicable;

         (xi)     the Adjustment Date frequency and Payment Date frequency, if
applicable;

         (xii)    the occupancy status;

         (xiii)   the purpose of the Mortgage Loan;

         (xiv)    the Appraised Value of the Mortgaged Property;

         (xv)     the original term to maturity;

         (xvi)    the paid-through date of the Mortgage Loan;

         (xvii)   the Loan-to-Value Ratio;

         (xviii)  whether or not the Mortgage Loan was underwritten pursuant to
a limited documentation program;

         (xix)    the Loan Group;

         (xx)     whether the Mortgage Loan has a fixed interest rate or an
adjustable interest rate;

         (xxi)    with respect to each HELOC Mortgage Loan, the account number;

         (xxii)   with respect to each HELOC Mortgage Loan, the Credit Limit;

         (xxiii)  with respect to each HELOC Mortgage Loan, the CLTV as of the
date of origination of the related HELOC Mortgage Loan;

         (xxiv)   with respect to each HELOC Mortgage Loan, the Mortgage Rate as
of the Cut-off Date, separately indicating the Mortgage Rates applicable to any
Locked Balance and any HELOC Balance;

                                       35
<PAGE>

         (xxv)    with respect to each HELOC Mortgage Loan, the debt-to-income
ratio;

         (xxvi)   with respect to each HELOC Mortgage Loan, the FICO; and

         (xxvvii) with respect to each HELOC Mortgage Loan whether the related
Mortgage Rate was supposed to reset in November 2004 but did not.

         The Mortgage Loan Schedule shall also set forth the total of the
amounts described under (ix) above for all of the Mortgage Loans.

         MORTGAGE NOTE: The note or other evidence of the indebtedness of a
Mortgagor under a Mortgage Loan that is not a HELOC Mortgage Loan. With respect
to a HELOC Mortgage Loan, the related Credit Line Agreement executed by the
related Mortgager and any amendment or modification thereof.

         MORTGAGE RATE: With respect to any Mortgage Loan that is not a HELOC
Mortgage Loan, the annual rate at which interest accrues on such Mortgage Loan.
With respect to any HELOC Mortgage Loan as of any day, the variable interest
rate applicable under the related Mortgage Note, provided, that if the Lock
Feature has been exercised or the Fixed Teaser Rate is in effect with respect to
a HELOC Mortgage Loan or any portion thereof, the Mortgage Rate for such HELOC
Mortgage Loan or portion thereof shall be the resulting fixed interest rate.

         MORTGAGED PROPERTY: The underlying property, including real property
and improvements thereon, securing a Mortgage Loan.

         MORTGAGOR: The obligor or obligors under a Mortgage Note.

         NET LIQUIDATION PROCEEDS: With respect to any Liquidated Mortgage Loan,
Liquidation Proceeds and Subsequent Recoveries net of unreimbursed Servicing
Advances by the HELOC Master Servicer, HELOC Subservicer or RMBS Master
Servicer, as applicable, Monthly Advances and Liquidation Expenses.

         NET MONTHLY EXCESS CASHFLOW: With respect to Loan Group I, Loan Group
II, Loan Group III, Loan Group IV and Loan Group V, as determined in the
aggregate for any Payment Date, the sum of (1) the excess of (x) the Group I,
Group II, Group III, Group IV and Group V Available Funds for such Payment Date
over (y) the sum for such Payment Date of (A) the aggregate amount of Accrued
Note Interest for the Class I-A, Class II-A, Class III-A, Class IV-A, Class V-A
and Class M Notes and (B) the Principal Remittance Amount used to make payments
in respect of principal to these Notes, and (2) amounts payable from the Net
Monthly Excess Cashflow for the Group VI Loans as provided in Section 3.06(d) of
the Indenture. With respect to Loan Group VI, for any Payment Date and, the sum
of (1) the excess of (x) the related Available Funds for such Payment Date over
(y) the sum for such Payment Date of (A) the aggregate amount of Accrued Note
Interest for the Class VI-A, Class VI-M and Class VI-B Notes and (B) the
Principal Remittance Amount used to make payments in respect of principal to
these Notes and (2) amounts payable from the Net Monthly Excess Cashflow for the
Group I, Group II, Group III, Group IV and Group V Loans as provided in Section
3.05(c).

         NET MORTGAGE RATE: For any Mortgage Loan or HELOC Mortgage Loan, the
then applicable Mortgage Rate thereon minus the Master Servicing Fee Rate
expressed as a per annum rate.

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<PAGE>

         NET NEGATIVE AMORTIZATION: With respect to any Payment Date, the
excess, if any, of (i) the aggregate amount of negative amortization with
respect to all Group I Mortgage for the calendar month prior to that Payment
Date, over (ii) the Principal Remittance Amount with respect to the Group I
Loans for that Payment Date.

         NET RECOVERIES: With respect to any Charged-Off HELOC Mortgage Loan,
Recoveries net of unreimbursed HELOC Master Servicing Fees with respect thereto.

         NET SWAP FEE: With respect to any Payment Date, an amount equal to the
excess, if any, of (a) the aggregate amount payable on that Payment Date to the
Swap Agreement Counterparty in respect of the Swap Agreements, over (b) the
aggregate amount payable on that Payment Date to the Trust from the Swap
Agreement Counterparty pursuant to the Swap Agreements.

         NET SWAP FEE RATE: With respect to any Payment Date, the fraction,
expressed as a rate per annum, equal to (x) the Net Swap Fee on such Payment
Date related to Loan Group II and Loan Group III over (y) the aggregate Stated
Principal Balance of the related Mortgage Loans and the related Pre-funded
Amount.

         NET WAC SHORTFALL: With respect to the Class IV-A Notes and Class V-A
Notes, on or prior to the related Note Rate Change Date, and with respect to the
Class VI-A Notes on any Payment Date, as determined separately for each Class of
Notes, the excess, if any, of (x) the Accrued Note Interest thereon for such
Payment Date calculated pursuant to clause (i)(a) of the definition of Note
Interest Rate over (y) Accrued Note Interest thereon for such Payment Date
calculated at the related Available Funds Rate.

         NET WAC SHORTFALL CARRY-FORWARD AMOUNT: With respect to the Class IV-A
and Class V-A Notes, on or prior to the related Note Rate Change Date, and with
respect to the Class VI-A Notes and any Payment Date, as determined separately
for each such class of Notes an amount equal to the aggregate amount of Net WAC
Shortfall for such Notes on such Payment Date, plus any unpaid Net WAC Shortfall
for such Class of Notes from prior Payment Dates, plus interest thereon at the
Note Interest Rate for such Payment Date for such class for the related Accrual
Period, to the extent previously unreimbursed by the Net Monthly Excess
Cashflow.

         NET WORTH: With respect to any Person at any date, the excess of total
assets over total liabilities of such Person, and its consolidated subsidiaries,
on such date, each to be determined in accordance with generally accepted
accounting principles (GAAP) as in effect in the United States from time to
time.

         NONRECOVERABLE ADVANCE: Any advance or, respecting the HELOC Mortgage
Loans, any Servicing Advance (i) which was previously made or is proposed to be
made by the HELOC Master Servicer, HELOC Subservicer or RMBS Master Servicer, as
applicable; and (ii) which, in the good faith judgment of the HELOC Master
Servicer, HELOC Subservicer or RMBS Master Servicer, will not or, in the case of
a proposed advance, would not, be ultimately recoverable by the HELOC Master
Servicer, HELOC Subservicer or RMBS Master Servicer, as applicable, from
Liquidation Proceeds, Recoveries or future payments on any Mortgage Loan. The
Indenture Trustee may conclusively rely on any determination of
nonrecoverability made by the HELOC Master Servicer or RMBS Master Servicer, as
applicable.

         NOTE: A Class A Note, Class M Note or Class N Note.

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<PAGE>

         NOTE INTEREST RATE: With respect to each Payment Date and the Class
I-A, Class II-A, Class III-A, Class M, Class VI-M and Class VI-B Notes, a
floating rate equal to the least of (i) One-Month LIBOR plus the related Note
Margin, (ii) the related Maximum Note Interest Rate and (iii) the related
Available Funds Rate with respect to such Payment Date. With respect to each
Payment Date and the Class IV-A Notes and Class V-A Notes the least of (i)(a)
prior to the related Note Rate Change Date, 4.39% per annum and 4.44% per annum,
respectively and (b) on or after the related Note Rate Change Date, a rate equal
to Six-Month LIBOR plus the related Note Margin, (ii) the related Maximum Note
Interest Rate and (iii) the related Available Funds Rate. With respect to each
Payment Date and the Class VI-A Notes, the lesser of (i) (a) with respect to any
Payment Date prior to the related Step-Up Date, 5.50% per annum and (b) on any
Payment Date on or after the related Step-Up Date, 6.00% per annum and (ii) the
related Available Funds Rate. With respect to each Payment Date and the Class
VII-A Notes, a rate equal to the lesser of (x) One-Month LIBOR plus 0.20% per
annum and (y) the related Available Funds Rate.

         NOTE MARGIN: With respect to the Class I-A-1 Notes, on any Payment Date
prior to the Step-Up Date, 0.340% per annum, and on any Payment Date on and
after the Step-Up Date, 0.680% per annum. With respect to the Class I-A-2 Notes,
on any Payment Date prior to the Step-Up Date, 0.400% per annum, and on any
Payment Date on and after the Step-Up Date, 0.800% per annum. With respect to
the Class II-A-1 Notes, on any Payment Date prior to the Step-Up Date, 0.290%
per annum, and on any Payment Date on and after the Step-Up Date, 0.580% per
annum. With respect to the Class II-A-2 Notes, on any Payment Date prior to the
Step-Up Date, 0.360% per annum, and on any Payment Date on and after the Step-Up
Date, 0.720% per annum. With respect to the Class III-A Notes, on any Payment
Date prior to the Step-Up Date, 0.300% per annum, and on any Payment Date on and
after the Step-Up Date, 0.600% per annum. With respect to the Class M-1 Notes,
on any Payment Date prior to the Step-Up Date, 0.550% per annum, and on any
Payment Date on and after the Step-Up Date, 0.825% per annum. With respect to
the Class M-2 Notes, on any Payment Date prior to the Step-Up Date, 1.050% per
annum, and on any Payment Date on and after the Step-Up Date, 1.575% per annum.
With respect to the Class M-3 Notes, on any Payment Date prior to the Step-Up
Date, 1.750% per annum, and on any Payment Date on and after the Step-Up Date,
2.625% per annum. With respect to the Class VI-M-1 Notes, on any Payment Date
prior to the Step-Up Date, 0.550% per annum, and on any Payment Date on and
after the Step-Up Date, 0.825% per annum. With respect to the Class VI-M-2
Notes, on any Payment Date prior to the Step-Up Date, 0.980% per annum, and on
any Payment Date on and after the Step-Up Date, 1.470% per annum. With respect
to the Class VI-M-3 Notes, on any Payment Date prior to the Step-Up Date, 1.100%
per annum, and on any Payment Date on and after the Step-Up Date, 1.650% per
annum. With respect to the Class VI-B-1 Notes, on any Payment Date prior to the
Step-Up Date, 1.670% per annum, and on any Payment Date on and after the Step-Up
Date, 2.505% per annum. With respect to the Class VI-B-2 Notes, on any Payment
Date prior to the Step-Up Date, 1.800% per annum, and on any Payment Date on and
after the Step-Up Date, 2.700% per annum. With respect to the Class VI-B-3
Notes, on any Payment Date prior to the Step-Up Date, 2.750% per annum, and on
any Payment Date on and after the Step-Up Date, 4.125% per annum. With respect
to each of the Class IV-A Notes and Class V-A Notes after the applicable Note
Rate Change Date, 2.000% per annum.

         NOTE OWNER: The Beneficial Owner of a Note.

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<PAGE>

         NOTE PRINCIPAL BALANCE: With respect to any Note as of any date of
determination, the initial Note Principal Balance as stated on the face thereof,
minus all amounts distributed in respect of principal with respect to such Note
and (a) plus, in the case of the Class I-A-2, Class II-A-2, Class M, Class VI-M
and Class VI-B Notes, any Subsequent Recoveries allocated thereto and (b) minus,
in the case of the Class I-A-2, Class II-A-2, Class M, Class VI-M and Class VI-B
Notes, the aggregate amount of any reductions in the Note Principal Balance
thereof deemed to have occurred in connection with allocations of Realized
Losses on all prior Payment Dates in accordance with Section 3.38 of the
Indenture.

         NOTE RATE CHANGE DATE: With respect to the Class IV-A Notes, the
Payment Date in December 2009. With respect to the Class V-A Notes, the Payment
Date in December 2009.

         NOTE REGISTER: The register maintained by the Note Registrar in which
the Note Registrar shall provide for the registration of Notes and of transfers
and exchanges of Notes.

         NOTE REGISTRAR: The Indenture Trustee, in its capacity as Note
Registrar, or any successor to the Indenture Trustee in such capacity.

         NOTEHOLDER OR HOLDER: The Person in whose name a Note is registered in
the Note Register, except that, any Note registered in the name of the
Depositor, the Issuer, American Home Mortgage Investment Corp., the Indenture
Trustee, the Seller, the HELOC Master Servicer or the RMBS Master Servicer or
any Affiliate of any of them shall be deemed not to be a holder or holders, nor
shall any so owned be considered outstanding, for purposes of giving any
request, demand, authorization, direction, notice, consent or waiver under the
Indenture or the Trust Agreement; provided that, in determining whether the
Indenture Trustee shall be protected in relying upon any such request, demand,
authorization, direction, notice, consent or waiver, only Notes that a
Responsible Officer of the Indenture Trustee or the Owner Trustee actually knows
to be so owned shall be so disregarded. Owners of Notes that have been pledged
in good faith may be regarded as Holders if the pledgee establishes to the
satisfaction of the Indenture Trustee or the Owner Trustee the pledgee's right
so to act with respect to such Notes and that the pledgee is not the Issuer, any
other obligor upon the Notes or any Affiliate of any of the foregoing Persons.

         OFFICER'S CERTIFICATE: With respect to the HELOC Master Servicer, HELOC
Subservicer or RMBS Master Servicer, as applicable, a certificate signed by the
President, Managing Director, a Director, a Vice President or an Assistant Vice
President, of the HELOC Master Servicer, HELOC Subservicer or RMBS Master
Servicer, as applicable, and delivered to the Indenture Trustee or the HELOC
Master Servicer, as applicable. With respect to the Issuer, a certificate signed
by any Authorized Officer of the Issuer, under the circumstances described in,
and otherwise complying with, the applicable requirements of Section 10.01 of
the Indenture, and delivered to the Indenture Trustee. Unless otherwise
specified, any reference in the Indenture to an Officer's Certificate shall be
to an Officer's Certificate of any Authorized Officer of the Issuer.

         ONE-MONTH LIBOR: With respect to any Accrual Period, the rate
determined by the Indenture Trustee on the related Interest Determination Date
on the basis of the London

                                       39
<PAGE>

interbank offered rate for one-month United States dollar deposits, as such
rates appear on the Telerate Screen Page 3750, as of 11:00 a.m. (London time) on
such Interest Determination Date.

         In the event that on any Interest Determination Date, Telerate Screen
Page 3750 fails to indicate the London interbank offered rate for one-month
United States dollar deposits, then One-Month LIBOR for the related Accrual
Period will be established by the Indenture Trustee as follows:

         (i)      If on such Interest Determination Date two or more Reference
Banks provide such offered quotations, One-Month LIBOR for the related Accrual
Period shall be the arithmetic mean of such offered quotations (rounded upwards
if necessary to the nearest whole multiple of 1/16%).

         (ii)     If on such Interest Determination Date fewer than two
Reference Banks provide such offered quotations, One-Month LIBOR for the related
Accrual Period shall be the higher of (i) One-Month LIBOR as determined on the
previous Interest Determination Date and (ii) the Reserve Interest Rate.

         (iii)    If no such quotations can be obtained and no Reference Bank
rate is available, One-Month LIBOR will be the One-Month LIBOR rate applicable
to the preceding Accrual Period.

         The establishment of One-Month LIBOR on each Interest Determination
Date by the Indenture Trustee and the Indenture Trustee's calculation of the
applicable Note Interest Rate applicable for the related Accrual Period shall
(in the absence of manifest error) be final and binding.

         OPINION OF COUNSEL: A written opinion of counsel acceptable to the
Indenture Trustee, the Insurer or HELOC Master Servicer, as applicable, in its
reasonable discretion which counsel may be in-house counsel for the HELOC Master
Servicer, HELOC Subservicer or RMBS Master Servicer, as applicable, if
acceptable to the Indenture Trustee, the HELOC Master Servicer, the Insurer and
the Rating Agencies or counsel for the Depositor, as the case may be.

         ORIGINAL PRE-FUNDED AMOUNT: With respect to Loan Groups I, II, III, VI,
V, VI and VII, the amount deposited by the Depositor on the Closing Date in the
related Pre-Funding Account.

         ORIGINAL VALUE: Except in the case of a refinanced Mortgage Loan, the
lesser of the Appraised Value or sales price of Mortgaged Property at the time a
Mortgage Loan is closed, and for a refinanced Mortgage Loan, the Original Value
is the value of such property set forth in an appraisal acceptable to the HELOC
Master Servicer, HELOC Subservicer or RMBS Master Servicer, as applicable.

         OUTSTANDING: With respect to the Notes, as of the date of
determination, all Notes theretofore executed, authenticated and delivered under
this Indenture except:

         (i)      Notes theretofore canceled by the Note Registrar or delivered
to the Indenture Trustee for cancellation; and

                                       40
<PAGE>

         (ii)     Notes in exchange for or in lieu of which other Notes have
been executed, authenticated and delivered pursuant to the Indenture unless
proof satisfactory to the Indenture Trustee is presented that any such Notes are
held by a holder in due course.

         OUTSTANDING MORTGAGE LOAN: As to any Due Date, a Mortgage Loan
(including an REO Property but excluding a Charged-Off HELOC Mortgage Loan)
which was not the subject of a Principal Prepayment in Full, Cash Liquidation or
REO Disposition and which was not purchased, deleted or substituted for prior to
such Due Date pursuant to the HELOC Servicing Agreement, HELOC Subservicing
Agreement or RMBS Servicing Agreement, as applicable.

         OVERCOLLATERALIZATION INCREASE AMOUNT: With respect to the Group I,
Group II, Group III, Group IV and Group V Loans, with respect to any Payment
Date, the lesser of (i) the related Net Monthly Excess Cashflow for such Payment
Date and (ii) the excess, if any, of (a) the related Overcollateralization
Target Amount over (b) the related Overcollateralized Amount on such Payment
Date (after taking into account payments to the related Notes of the related
Basic Principal Distribution Amount on such Payment Date). With respect to the
Group VI Loans, with respect to any Payment Date on or prior to the earlier of
(x) the first possible optional termination date with respect to the Group VI
Loans and (y) the Payment Date in December 2014, the lesser of (i) the related
Net Monthly Excess Cashflow for such Payment Date and (ii) the excess, if any,
of (a) the related Overcollateralization Target Amount over (b) the related
Overcollateralized Amount on such Payment Date (after taking into account
payments to the related Notes of the related Basic Principal Distribution Amount
on such Payment Date), and thereafter, the related Net Monthly Excess Cashflow
for such Payment Date.

         OVERCOLLATERALIZATION REDUCTION AMOUNT: With respect to Loan Group VII
and any Payment Date, the lesser of (x) the related Excess Overcollateralization
Amount for such Payment Date and (y) the Investor Principal Distribution Amount
for such Payment Date (before taking into account the related
Overcollateralization Reduction Amount).

         OVERCOLLATERALIZATION TARGET AMOUNT: With respect to Loan Group I, Loan
Group II, Loan Group III, Loan Group IV and Loan Group V, 0.35% of the sum of
the Group I, Group II, Group III, Group IV and Group V Cut-off Date Balances
plus the amount of any Additional Negative Amortization Principal Amount. With
respect to Loan Group VI, 1.50% of the Group VI Cut-off Date Balance. With
respect to Loan Group VII, (1) on or prior to the related Stepdown Date, an
amount equal to the sum of (a) the Group VII Delinquent HELOC Amount and (b)
4.25% of the Group VII Cut-off Date Balance and (2) on or after the related
Stepdown Date, an amount equal to the sum of (a) the Group VII Delinquent HELOC
Amount and (b) the greatest of (x) 8.50% of the Invested Amount, (y) 0.90% of
the Group VII Cut-off Date Balance, and (z) the aggregate Stated Principal
Balance of the three Group VII Loans with the greatest Stated Principal
Balances; provided, however, that if a related Trigger Event is in effect for
the Group VII Loans, then the Overcollateralization Target Amount for the Group
VII Loans will be the same as on the prior Payment Date.

         OVERCOLLATERALIZED AMOUNT: For any Payment Date and Loan Group I, Loan
Group II, Loan Group III, Loan Group IV and Loan Group V, the amount, if any, by
which (i) the aggregate Stated Principal Balance of the related Mortgage Loans
(after giving effect to scheduled payments of principal due during the related
Due Period, to the extent received or

                                       41
<PAGE>

advanced, and unscheduled collections of principal received during the related
Prepayment Period, including Realized Losses on the Mortgage Loans incurred
during the related Prepayment Period) and the related Pre-Funded Amount, exceeds
(ii) the aggregate Note Principal Balance of the related Class I-A, Class II-A,
Class III-A, Class IV-A, Class V-A and Class M Notes as of such Payment Date
(assuming that 100% of the related Principal Remittance Amount is applied as a
principal payment on these Notes on such Payment Date). For any Payment Date and
Loan Group VI, the amount, if any, by which (i) the aggregate Stated Principal
Balance of the related Mortgage Loans (after giving effect to scheduled payments
of principal due during the related Due Period, to the extent received or
advanced, and unscheduled collections of principal received during the related
Prepayment Period, including Realized Losses on the Mortgage Loans incurred
during the related Prepayment Period) and the related Pre-Funded Amount, exceeds
(ii) the aggregate Note Principal Balance of the Class VI-A, Class VI-M and
Class VI-B Notes as of such Payment Date (assuming that 100% of the Principal
Remittance Amount is applied as a principal payment on these Notes on such
Payment Date). For any Payment Date and Loan Group VII, the amount, if any, by
which (i) the Invested Amount exceeds (ii) the Note Principal Balance of the
Class VII-A Notes as of such Payment Date (after giving effect to all other
distributions of principal on these Notes on such Payment Date).

         OWNER TRUST ESTATE: The corpus of the Issuer created by the Trust
Agreement which consists of items referred to in Section 3.01 of the Trust
Agreement.

         OWNER TRUSTEE: Wilmington Trust Company and its successors and assigns
or any successor owner trustee appointed pursuant to the terms of the Trust
Agreement.

         OWNER TRUSTEE'S FEE: A fee of $4,000 per annum payable to the Owner
Trustee in advance on the Closing Date and each anniversary thereof by the
Indenture Trustee; provided, however, that in the event of any removal or
resignation of the Owner Trustee, the Owner Trustee will promptly remit to the
Indenture Trustee the portion of the Owner Trustee Fee that would have been
earned by the Owner Trustee during the remainder of such year had it not been
removed or resigned or the Notes redeemed.

         PAYING AGENT: Any paying agent or co-paying agent appointed pursuant to
Section 3.03 of the Indenture, which initially shall be the Indenture Trustee.

         PAYMENT ACCOUNT: The account established by the Indenture Trustee
pursuant to Section 3.01 of the Indenture. The Payment Account shall be an
Eligible Account.

         PAYMENT DATE: The 25th day of each month, or if such day is not a
Business Day, then the next Business Day, commencing in January 2005.

         PERCENTAGE INTEREST: With respect to any Note, the percentage obtained
by dividing the Note Principal Balance of such Note by the aggregate Note
Principal Balances of all Notes of that Class. With respect to any Certificate,
the percentage as stated on the face thereof.

                                       42
<PAGE>

         PERIODIC RATE CAP: With respect to any ARM Loan, the maximum rate, if
any, by which the Mortgage Rate on such Mortgage Loan can adjust on any
Adjustment Date, as stated in the related Mortgage Note or Mortgage.

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

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

         PLAN ASSETS: Assets of a Plan within the meaning of
Department of Labor regulation 29 C.F.R. ss.
2510.3-101.

         POOL BALANCE: With respect to any date of determination, the aggregate
of the Stated Principal Balances of all Mortgage Loans as of such date.

         PREFERENCE AMOUNT: Any amount previously distributed to a Class VII-A
Noteholder on the Class VII-A Notes that is recoverable and sought to be
recovered as a voidable preference by a trustee in bankruptcy pursuant to the
United States Bankruptcy Code (11 U.S.C.), as amended from time to time, in
accordance with a final nonappealable order of a court having competent
jurisdiction.

         PREMIUM AMOUNT: The premium payable to the Insurer pursuant to the
Insurance Agreement.

         PREPAYMENT INTEREST SHORTFALL: As to any Payment Date and any Mortgage
Loan (other than a Mortgage Loan relating to an REO Property or a HELOC Mortgage
Loan) that was the subject of (a) a Principal Prepayment in Full during the
related Prepayment Period, an amount equal to the excess of interest accrued
during the related Prepayment Period at the Net Mortgage Rate on the Stated
Principal Balance of such Mortgage Loan over the sum of the amount of interest
paid by the Mortgagor for such Prepayment Period to the date of such Principal
Prepayment in Full and any Monthly Advances made by the RMBS Master Servicer
pursuant to Section 4.04 of the RMBS Servicing Agreement or (b) a partial
Principal Prepayment during the related Prepayment Period, an amount equal to
the interest at the Mortgage Rate (less the Master Servicing Fee Rate) during
the related Prepayment Period on the amount of such partial Principal
Prepayment.

         PREPAYMENT PERIOD: With respect to each Mortgage Loan and any Payment
Date, the calendar month immediately preceding the month in which such Payment
Date occurs.

         PRINCIPAL COLLECTIONS: Amounts collected during the related Due Period
on the HELOC Mortgage Loans and allocated to principal in accordance with the
terms of the related Credit Line Agreement together with the principal portion
of any Purchase Price or any Substitution Adjustment Amounts paid during the
preceding Due Period and any Group VII Pre-Funded

                                       43
<PAGE>

Amount to be distributed to the Class VII-A Noteholders pursuant to Section 3.32
of the Indenture.

         PRINCIPAL DISTRIBUTION AMOUNT: For any Payment Date, as determined
separately for the Group I, Group II, Group III, Group IV and Group V Loans
collectively and for the Group VI Loans, the sum of (a) the related Basic
Principal Distribution Amount, and (b) the related Overcollateralization
Increase Amount.

         PRINCIPAL PREPAYMENT: Any payment or other recovery of principal on a
Mortgage Loan which is received in advance of its scheduled Due Date to the
extent that it is not accompanied by an amount as to interest representing
scheduled interest due on any date or dates in any month or months subsequent to
the month of prepayment, including Insurance Proceeds and Repurchase Proceeds,
but excluding the principal portion of Net Liquidation Proceeds received at the
time a Mortgage Loan becomes a Liquidated Mortgage Loan.

         PRINCIPAL REMITTANCE AMOUNT: For any Payment Date and any Loan Group or
the Mortgage Loans in the aggregate, as applicable, the sum of

         1.       the principal portion of all scheduled monthly payments on the
                  related Mortgage Loans due on the related Due Date, to the
                  extent received or advanced;

         2.       the principal portion of all proceeds of the repurchase of a
                  Mortgage Loan in the related Loan Group (or, in the case of a
                  substitution, certain amounts representing a principal
                  adjustment) as required by the Mortgage Loan Purchase
                  Agreement during the preceding calendar month;

         3.       any amount remaining on deposit in the related Pre-Funding
                  Account at the end of the Funding Period; and

         4.       the principal portion of all other unscheduled collections
                  received during the preceding calendar month in respect of the
                  related Mortgage Loans, including full and partial
                  prepayments, the proceeds of any repurchase of such Mortgage
                  Loans by the Seller or holder of the Trust Certificates,
                  Liquidation Proceeds and Insurance Proceeds, in each case to
                  the extent applied as recoveries of principal.

In addition, with respect to the Class I-A Notes, the Principal Remittance
Amount shall be reduced by the amount of Net Negative Amortization on the Group
I Loans until the related Principal Remittance Amount has been reduced to zero.

         PRIMARY INSURANCE POLICY: Each primary policy of mortgage guaranty
insurance issued by a Qualified Insurer or any replacement policy therefor.

         PRINCIPAL PREPAYMENT IN FULL: Any Principal Prepayment made by a
Mortgagor of the entire principal balance of a Mortgage Loan.

         PROCEEDING: Any suit in equity, action at law or other judicial or
administrative proceeding.

                                       44
<PAGE>

         PROSPECTUS: The Prospectus Supplement, dated December 17, 2004,
together with the attached Prospectus, dated December 17, 2004.

         PURCHASE PRICE: The meaning specified in Section 2.2(a) of the Mortgage
Loan Purchase Agreement.

         PURCHASER: American Home Mortgage Securities LLC., a Delaware
corporation, and its successors and assigns.

         QUALIFIED INSURER: A mortgage guaranty insurance company duly qualified
as such under the laws of the state of its principal place of business and each
state having jurisdiction over such insurer in connection with the insurance
policy issued by such insurer, duly authorized and licensed in such states to
transact a mortgage guaranty insurance business in such states and to write the
insurance provided by the insurance policy issued by it, approved as an insurer
by the HELOC Master Servicer, HELOC Subservicer or RMBS Master Servicer, as
applicable, and as a Fannie Mae-approved mortgage insurer.

         RAPID AMORTIZATION EVENT:  As defined in Section 3.08 in the Indenture.

         RAPID AMORTIZATION PERIOD: Begins on the earlier of Payment Date in
January 2010 or the occurrence of a Rapid Amortization Event.

         RATING AGENCY: Any nationally recognized statistical rating
organization, or its successor, that rated the Notes at the request of the
Depositor at the time of the initial issuance of the Notes. Initially, Standard
& Poor's and Moody's. If such organization or a successor is no longer in
existence, "Rating Agency" with respect to the Class A, Class M and Class N
Notes shall be such nationally recognized statistical rating organization, or
other comparable Person, designated by the Depositor, notice of which
designation shall be given to the Indenture Trustee, the HELOC Master Servicer
and the RMBS Master Servicer. References herein to the highest short term
unsecured rating category of a Rating Agency shall mean A-1 or better in the
case of Standard & Poor's and P-1 or better in the case of Moody's and in the
case of any other Rating Agency shall mean such equivalent ratings. References
herein to the highest long-term rating category of a Rating Agency shall mean
"AAA" in the case of Standard & Poor's and "Aaa" in the case of Moody's and in
the case of any other Rating Agency, such equivalent rating.

         REALIZED LOSS: With respect to a Mortgage Loan, other than a HELOC
Mortgage Loan, is (i) a Deficient Valuation, or (ii) as to any Liquidated
Mortgage Loan, the unpaid principal balance thereof plus accrued and unpaid
interest thereon at the Mortgage Rate through the last day of the month of
liquidation less the Net Liquidation Proceeds with respect to such Mortgage Loan
and the related Mortgaged Property.

         RECORD DATE: For each class of Notes, other than the Class IV-A, Class
V-A and Class VI-A Notes, and each Payment Date, will be the close of business
on the business day immediately preceding such Payment Date; provided, however,
if any such Note is no longer a Book-Entry Note, the "Record Date" for such
class of Notes shall be the close of business on the last business day of the
calendar month preceding such Payment Date. For each class of the

                                       45
<PAGE>

Class IV-A, Class V-A and Class VI-A Notes and each Payment Date, the close of
business on the last Business Day of the calendar month preceding such Payment
Date.

         RECOVERIES: With respect to a Charged-Off HELOC Mortgage Loan, the
proceeds (including Released Mortgaged Property Proceeds but not including
amounts drawn under the Insurance Policy) received by the HELOC Master Servicer
or HELOC Subservicer in connection with such Charged-Off HELOC Mortgage Loan
minus related Servicing Advances.

         REFERENCE BANKS: Any leading banks selected by the Indenture Trustee
and engaged in transactions in Eurodollar deposits in the international
Eurocurrency market (i) with an established place of business in London, (ii)
whose quotations appear on the Telerate Screen Page 3750 on the Interest
Determination Date in question, (iii) which have been designated as such by the
Indenture Trustee, and (iv) which are not Affiliates of the Depositor, the
Seller, the HELOC Master Servicer or the RMBS Master Servicer.

         REGISTERED HOLDER: The Person in whose name a Note is registered in the
Note Register on the applicable Record Date.

         RELATED DOCUMENTS: With respect to each Mortgage Loan, the documents
specified in Section 2.1(b) of the Mortgage Loan Purchase Agreement, and the
related Subsequent Mortgage Loan Purchase Agreement, and any documents required
to be added to such documents pursuant to the Mortgage Loan Purchase Agreement,
the Trust Agreement, Indenture, the HELOC Servicing Agreement or the RMBS
Servicing Agreement.

         RELEASED MORTGAGED PROPERTY PROCEEDS: As to any HELOC Mortgage Loan,
proceeds received by the HELOC Master Servicer or HELOC Subservicer, as
applicable, in connection with (a) a taking of an entire Mortgaged Property by
exercise of the power of eminent domain or condemnation or (b) any release of
part of the Mortgaged Property from the lien of the related Mortgage, whether by
partial condemnation, sale or otherwise, which are not released to the Mortgagor
in accordance with (i) applicable law, (ii) Accepted Servicing Practices and
(iii) the HELOC Servicing Agreement or HELOC Subservicing Agreement, as
applicable.

         RELIEF ACT: The Servicemember's Civil Relief Act.

         RELIEF ACT SHORTFALL: As to any Payment Date and any Mortgage Loan
(other than a Mortgage Loan relating to an REO Property), any shortfalls
relating to the Relief Act or similar legislation or regulations.

         REMITTANCE REPORT: The report prepared by the HELOC Master Servicer,
HELOC Subservicer or RMBS Master Servicer, as applicable, pursuant to Section
4.01 of the HELOC Servicing Agreement, HELOC Subservicing Agreement or RMBS
Servicing Agreement.

         REO ACQUISITION: The acquisition by the HELOC Master Servicer, HELOC
Subservicer or RMBS Master Servicer, as applicable, on behalf of the Issuer for
the benefit of the Noteholders and the Insurer of any REO Property pursuant to
Section 3.13 of the HELOC Servicing Agreement, HELOC Subservicing Agreement or
RMBS Servicing Agreement.

                                       46
<PAGE>

         REO DISPOSITION: As to any REO Property, a determination by the HELOC
Master Servicer, HELOC Subservicer or RMBS Master Servicer, as applicable, that
it has received substantially all Insurance Proceeds, Liquidation Proceeds, REO
Proceeds and other payments and recoveries (including proceeds of a final sale)
which the HELOC Master Servicer, HELOC Subservicer or RMBS Master Servicer, as
applicable, expects to be finally recoverable from the sale or other disposition
of the REO Property.

         REO IMPUTED INTEREST: As to any REO Property, for any period, an amount
equivalent to interest (at the Net Mortgage Rate that would have been applicable
to the related Mortgage Loan had it been Outstanding) on the unpaid principal
balance of the Mortgage Loan as of the date of acquisition thereof for such
period as such balance is reduced pursuant to Section 3.13 of the HELOC
Servicing Agreement, HELOC Subservicing Agreement or RMBS Servicing Agreement,
as applicable, by any income from the REO Property treated as a recovery of
principal.

         REO PROCEEDS: Proceeds, net of expenses, received in respect of any REO
Property (including, without limitation, proceeds from the rental of the related
Mortgaged Property) which proceeds are required to be deposited into the related
Collection Account only upon the related REO Disposition.

         REO PROPERTY: A Mortgaged Property that is acquired by the Trust by
foreclosure or by deed in lieu of foreclosure.

         REPURCHASE PRICE: With respect to any Mortgage Loan required to be
repurchased by the Seller on any date pursuant to the Mortgage Loan Purchase
Agreement or the HELOC Servicing Agreement or purchased by the RMBS Master
Servicer pursuant to the RMBS Servicing Agreement, an amount equal to the sum,
without duplication, of (i) 100% of the Stated Principal Balance thereof
(without reduction for any amounts charged off) and (ii) unpaid accrued interest
at the Mortgage Rate on the outstanding principal balance thereof from the Due
Date to which interest was last paid by the Mortgagor to the first day of the
month following the month of purchase plus (iii) the amount of unreimbursed
Monthly Advances or unreimbursed Servicing Advances made with respect to such
Mortgage Loan plus (iv) any other amounts owed to the RMBS Master Servicer or
HELOC Master Servicer, as applicable, pursuant to Section 3.07 of the RMBS
Servicing Agreement or HELOC Servicing Agreement and not included in clause
(iii) of this definition plus (v) any costs and damages incurred by the trust in
connection with any violation by such loan of any predatory-lending law.

         REPURCHASE PROCEEDS: The Repurchase Price in connection with any
repurchase of a Mortgage Loan by the Seller and any cash deposit in connection
with the substitution of a Mortgage Loan.

         RESERVE INTEREST RATE: With respect to any Interest Determination Date,
the rate per annum that the Indenture Trustee determines to be either (i) the
arithmetic mean (rounded upwards if necessary to the nearest whole multiple of
0.0625%) of the one-month, six-month or one-year (as applicable) United States
dollar lending rates which New York City banks selected by the Indenture Trustee
are quoting on the relevant Interest Determination Date to the principal London
offices of leading banks in the London interbank market or (ii) in the event
that the

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<PAGE>

Indenture Trustee can determine no such arithmetic mean, the lowest one-month,
six-month or one-year (as applicable) United States dollar lending rate which
New York City banks selected by the Indenture Trustee are quoting on such
Interest Determination Date to leading European banks.

         RESPONSIBLE OFFICER: With respect to the Indenture Trustee, (a) any
officer within the corporate trust department of the Indenture Trustee including
any vice president, assistant vice president, treasurer, assistant treasurer,
trust officer or any other officer of the Indenture Trustee who customarily
performs functions similar to those performed by the persons who at the time
shall be such officers, respectively, or to whom any corporate trust matter is
referred because of such person's knowledge of and familiarity with the
particular subject and (b) who shall have direct responsibility for the
administration of the applicable Agreement.

         RMBS MASTER SERVICER: American Home Mortgage Servicing, Inc., a
Maryland corporation, and its successors and assigns.

         RMBS MASTER SERVICER REMITTANCE DATE: The eighteenth (18th) calendar
day of each month or, if such eighteenth (18th) day is not a Business Day, then
the Business Day immediately following such eighteenth (18th) day of the month.

         RMBS MASTER SERVICING FEE: With respect to each Mortgage Loan that is
not a HELOC Mortgage Loan and any Payment Date, the fee payable monthly to the
RMBS Master Servicer in respect of master servicing compensation that accrues at
an annual rate equal to the RMBS Master Servicing Fee Rate multiplied by the
Stated Principal Balance of such Mortgage Loan as of the related Due Date in the
related Due Period.

         RMBS MASTER SERVICING FEE RATE: With respect to any Mortgage Loan that
is not a HELOC Mortgage Loan with an original principal balance of less than or
equal to $333,700, 0.375% per annum, with respect to each other Mortgage Loan
that is not a HELOC Mortgage Loan 0.250% per annum.

         RMBS MORTGAGE LOAN SCHEDULE: The schedule of Mortgage Loans attached as
Exhibit A to the RMBS Servicing Agreement.

         RMBS SERVICING AGREEMENT: The Servicing Agreement dated as of December
21, 2004, among the RMBS Master Servicer, the Seller, the Issuer and the
Indenture Trustee.

         ROLLING THREE MONTH DELINQUENCY RATE: With respect to any Payment Date,
the average of the Delinquency Rates for each of the three (or one and two, in
the case of the first and second Payment Dates, respectively) immediately
preceding months.

         SECURITIES ACT: The Securities Act of 1933, as amended, and the rules
and regulations promulgated thereunder.

         SECURITIES INTERMEDIARY: The Bank of New York, or its successors and
assigns.

         SECURITY: Any of the Certificates or Notes.

                                       48
<PAGE>

         SECURITYHOLDER or HOLDER: Any Noteholder or a Certificateholder.

         SECURITY INSTRUMENT: A written instrument creating a valid first lien
on a Mortgaged Property securing a Mortgage Note, which may be any applicable
form of mortgage, deed of trust, deed to secure debt or security deed, including
any riders or addenda thereto.

         SELLER: American Home Mortgage Acceptance, Inc., a Maryland
corporation, and its successors and assigns.

         SENIOR LIEN: With respect to any HELOC Mortgage Loan that is a second
priority lien, the mortgage loan or mortgage loans relating to the corresponding
Mortgaged Property having priority senior to that of such HELOC Mortgage Loan.

         SERVICER TERMINATION EVENT:

         (a)      The occurrence of a draw on the Insurance Policy which remains
unreimbursed for a period of 90 days.

         (b)      Cumulative losses, as a percentage of the Group VII Cut-off
Date Balance, exceed the following:

         Months            Percentage

         0   - 24          1.00%

         25 - 36           2.00%

         37 - 48           3.00%

         49 - 60           4.00%

         61+               5.00%

         (c)      American Home Mortgage Investment Corp. fails to have a
Tangible Net Worth of at least $530 million.

         (d)      The occurrence of a Servicing Default as described in Section
6.01 of the HELOC Subservicing Agreement.

         SERVICING ACCOUNT: The separate trust account created and maintained by
the HELOC Master Servicer, RMBS Master Servicer and HELOC Subservicer, as
applicable, or each Subservicer with respect to the Mortgage Loans or REO
Property, which shall be an Eligible Account, for collection of taxes,
assessments, insurance premiums and comparable items as described in Section
3.08 of the HELOC Servicing Agreement, RMBS Servicing Agreement and HELOC
Subservicing Agreement.

         SERVICING ADVANCES: All customary, reasonable and necessary "out of
pocket" costs and expenses incurred in connection with a default, delinquency or
other unanticipated event in the performance by the HELOC Master Servicer, HELOC
Subservicer or RMBS Master Servicer, as

                                       49
<PAGE>

applicable, or any Subservicer of its servicing obligations, including, without
duplication, but not limited to, the cost of (i) the preservation, restoration
and protection of a Mortgaged Property, (ii) any enforcement or judicial
proceedings, including foreclosures and any expenses incurred in relation to any
such proceedings that result from the Mortgage Loan being registered on the
MERS(R) System, (iii) the management and liquidation of any REO Property, (iv)
compliance with the obligations under Sections 3.10, 3.11, 3.13 of the or RMBS
Servicing Agreement or Sections 3.11 and 3.13 of the HELOC Servicing Agreement
or of the HELOC Subservicing Agreement, as applicable, (v) covering any expenses
incurred by or on behalf of the HELOC Master Servicer, the HELOC Subservicer or
the RMBS Master Servicer, as applicable, in connection with obtaining Insurance
Proceeds and (vi) that is applied to the restoration or repair of the related
Mortgaged Property.

         SERVICING AGREEMENT: Each of the HELOC Servicing Agreement and RMBS
Servicing Agreement, as applicable.

         SERVICING CERTIFICATE: A certificate completed and executed by a
Servicing Officer on behalf of the HELOC Master Servicer, HELOC Subservicer or
RMBS Master Servicer, as applicable, in accordance with Section 4.01 of the
HELOC Servicing Agreement, HELOC Subservicing Agreement or RMBS Servicing
Agreement.

         SERVICING DEFAULT: The meaning assigned in Section 6.01 of the HELOC
Servicing Agreement, HELOC Subservicing Agreement or RMBS Servicing Agreement,
as applicable.

         SERVICING OFFICER: Any officer of the HELOC Master Servicer, HELOC
Subservicer or RMBS Master Servicer, as applicable, involved in, or responsible
for, the administration and servicing of the Mortgage Loans whose name and
specimen signature appear on a list of servicing officers furnished to the
Indenture Trustee or the HELOC Master Servicer, as applicable, by the HELOC
Master Servicer, HELOC Subservicer or RMBS Master Servicer, as applicable, on
the Closing Date, as such list may be amended from time to time.

         SIX-MONTH LIBOR: With respect to any Accrual Period, the rate
determined by the Indenture Trustee on the related Interest Determination Date
on the basis of the London interbank offered rate for six-month United States
dollar deposits, as such rates appear on the Telerate Screen Page 3750, as of
11:00 a.m. (London time) on such Interest Determination Date.

         In the event that on any Interest Determination Date, Telerate Screen
Page 3750 fails to indicate the London interbank offered rate for six-month
United States dollar deposits, then Six-Month LIBOR for the related Accrual
Period will be established by the Indenture Trustee as follows:

         (i)      If on such Interest Determination Date two or more Reference
Banks provide such offered quotations, Six-Month LIBOR for the related Accrual
Period shall be the arithmetic mean of such offered quotations (rounded upwards
if necessary to the nearest whole multiple of 1/16%).

         (ii)     If on such Interest Determination Date fewer than two
Reference Banks provide such offered quotations, Six-Month LIBOR for the related
Accrual Period shall be the higher of

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<PAGE>

(i)      Six-Month LIBOR as determined on the previous Interest Determination
Date and (ii) the Reserve Interest Rate.

         (iii)    If no such quotations can be obtained and no Reference Bank
rate is available, Six-Month LIBOR will be the Six-Month LIBOR rate applicable
to the preceding Accrual Period.

         The establishment of Six-Month LIBOR on each Interest Determination
Date by the Indenture Trustee and the Indenture Trustee's calculation of the
applicable Note Interest Rate applicable for the related Accrual Period shall
(in the absence of manifest error) be final and binding.

         STANDARD & POOR'S: Standard & Poor's, a division of The McGraw-Hill
Companies, Inc., or its successor in interest.

         STATED PRINCIPAL BALANCE: With respect to any Mortgage Loan that is not
a HELOC Mortgage Loan or related REO Property as of any date of determination,
(i) the principal balance of the Mortgage Loan outstanding as of the Cut-off
Date, after application of all scheduled Monthly Payments due on or before such
date, whether or not received, minus (ii) the sum of (a) the principal portion
of the Monthly Payments due with respect to such Mortgage Loan or REO Property
during each Due Period ending prior to the most recent Payment Date which were
received or with respect to which an Monthly Advance was made, (b) all Principal
Prepayments with respect to such Mortgage Loan or REO Property, and all
Insurance Proceeds, Liquidation Proceeds and REO Proceeds to the extent applied
by the RMBS Master Servicer as recoveries of principal in accordance with
Section 3.13 of the RMBS Servicing Agreement with respect to such Mortgage Loan
or REO Property, which were distributed pursuant to Section 3.05 of the
Indenture on any previous Payment Date, and (c) the principal portion of any
Realized Loss with respect thereto allocated pursuant to Section 3.31 of the
Indenture for any previous Payment Date; provided that the Stated Principal
Balance of any Liquidated Mortgage Loan is zero. With respect to any Mortgage
Loan that is a HELOC Mortgage Loan, the principal balance of the HELOC Mortgage
Loan as of the Cut-off Date, plus any Additional Balances in respect of such
HELOC Mortgage Loan minus all collections credited against the principal balance
of such HELOC Mortgage Loan in accordance with the related Mortgage Note and
minus all prior related Charge-Off Amounts. The Stated Principal Balance of any
Liquidated HELOC Mortgage Loan is zero.

         STATUTORY TRUST STATUTE: Chapter 38 of Title 12 of the Delaware Code,
12 DEL. Code ss.ss.3801 ET SEQ., as the same may be amended from time to time.

         STEPDOWN DATE: With respect to the Group I, Group II, Group III, Group
IV and Group V Loans, the later to occur of (x) the Payment Date occurring in
December 2007 and (y) the first Payment Date for which the Credit Enhancement
Percentage for the Class I-A, Class II-A, Class III-A, Class IV-A and Class V-A
Notes (calculated for this purposes only after taking into account distributions
of principal on the Group I, Group II, Group III, Group IV and Group V Loans,
but prior to any payment of the Class A Principal Distibution Amount for these
Notes then entitled to payments of principal on that Payment Date) is greater
than or equal to approximately 14.00%. With respect to the Class VII-A Notes and
Loan Group VII, the later to

                                       51
<PAGE>

occur of (x) the Payment Date occurring in July 2007 and (y) the Payment Date on
which the aggregate Investor Principal Distribution Amount actually distributed
to the holders of the Class VII-A Notes equals or exceeds one-half of the Group
VII Cut-off Date Balance.

         STEP-UP DATE: With respect to the Class I-A, Class II-A, Class III-A,
Class IV-A, Class V-A and Class M Notes, the Payment Date occurring after the
first Payment Date for which the aggregate Stated Principal Balance of the Group
I, Group II, Group III, Group IV and Group V Loans as of the end of the related
Due Period and the related Pre-Funded Amount has been reduced to 10% or less of
the sum of the Group I, Group II, Group III, Group IV and Group V Cut-off Date
Balances. With respect to the Class VI-A, Class VI-M and Class VI-B Notes, the
Payment Date occurring after the first Payment Date for which the aggregate
Stated Principal Balance of the Group VI Loans as of the end of the related Due
Period and the related Pre-Funded Amount has been reduced to 10% or less of the
Group VI Cut-off Date Balance.

         SUBSERVICER: Any Person with whom the HELOC Master Servicer, HELOC
Subservicer or RMBS Master Servicer, as applicable, has entered into a
Subservicing Agreement as a Subservicer.

         SUBSERVICING ACCOUNT: An Eligible Account established or maintained by
a Subservicer as provided for in Section 3.06(e) of the HELOC Servicing
Agreement, RMBS Servicing Agreement and HELOC Subservicing Agreement.

         SUBSERVICING AGREEMENT: The written contract between the HELOC Master
Servicer, HELOC Subservicer or RMBS Master Servicer, as applicable, and any
Subservicer relating to servicing and administration of certain Mortgage Loans
as provided in Section 3.02 of the HELOC Servicing Agreement, RMBS Servicing
Agreement and HELOC Subservicing Agreement.

         SUBSEQUENT RECOVERIES: Any Liquidation Proceeds received after the
final liquidation of a Mortgage Loan.

         SUBSEQUENT CUT-OFF DATE: With respect to any Subsequent Mortgage Loan
or Subsequent HELOC Mortgage Loans, the date, as designated by the Depositor,
that is the later of (i) the first day of the month in which the related
Subsequent Transfer Date occurs and (ii) the origination date of such Subsequent
Mortgage Loan or Subsequent HELOC Mortgage Loan, as the cut-off date with
respect to the related Subsequent Mortgage Loan or Subsequent HELOC Mortgage
Loan.

         SUBSTITUTION ADJUSTMENT AMOUNT: With respect to any Eligible Substitute
Mortgage Loan, the amount as defined in Section 2.03 of the HELOC Servicing
Agreement, HELOC Subservicing Agreement or RMBS Servicing Agreement, as
applicable.

         SUBSEQUENT MORTGAGE LOAN PURCHASE AGREEMENT: Any of the Group I
Subsequent Mortgage Loan Purchase Agreement, Group II Subsequent Mortgage Loan
Purchase Agreement, Group III Subsequent Mortgage Loan Purchase Agreement, Group
IV Subsequent Mortgage Loan Purchase Agreement, Group V Subsequent Mortgage Loan
Purchase Agreement, Group VI

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<PAGE>

Subsequent Mortgage Loan Purchase Agreement and Group VII Subsequent Mortgage
Loan Purchase Agreement.

         SUBSEQUENT TRANSFER DATE: With respect to any Group I, Group II, Group
III, Group IV, Group V, Group VI and Group VII Mortgage Loan, the applicable
date upon which such Mortgage Loan was purchased from the Seller with the
amounts on deposit in the related Pre-Funding Account.

         SWAP AGREEMENT: Each of the Group II Swap Agreement and Group III Swap
Agreement forms of which are attached as Exhibit E to the Indenture.

         SWAP AGREEMENT COUNTERPARTY: Bear Stearns Financial Products, Inc.

         TANGIBLE NET WORTH: Net Worth, less the sum of the following (without
duplication): (a) any other assets of American Home Mortgage Investment Corp.
and its consolidated subsidiaries that would be treated as intangibles under
GAAP including, without limitation, any write-up of assets (other than
adjustments to market value to the extent required under GAAP with respect to
excess servicing, residual interests in offerings of asset-backed securities and
asset-backed securities that are interest-only securities), good-will, research
and development costs, trade-marks, trade names, copyrights, patents and
unamortized debt discount and expenses and (b) loans or other extensions of
credit to officers of American Home Mortgage Investment Corp. or its
consolidated subsidiaries other than Mortgage Loans made to such Persons in the
ordinary course of business.

         TELERATE SCREEN PAGE 3750: The display designated as page 3750 on the
Telerate Service (or such other page as may replace page 3750 on that service
for the purpose of displaying London interbank offered rates of major banks).

         TRANSFER DATE: As defined in Section 3.20 of the HELOC Servicing
Agreement.

         TRANSFER NOTICE DATE: As defined in Section 3.20 of the HELOC Servicing
Agreement.

         TRANSFEROR: The owner of the Transferor Interest as shown on the
Transferor Interest Register.

         TRANSFEROR INTEREST: Represents the pari passu interest in the Group
VII HELOC Mortgage Loans equal to the cumulative amount of draws on the HELOC
Mortgage Loans beginning with the Rapid Amortization Period.

         TRANSFEROR INTEREST PRINCIPAL BALANCE: With respect to any Payment
Date, the amount by which the Pool Principal Balance exceeds the Invested
Amount, in each case at the end of the related Due Period.

         TRANSFEROR PERCENTAGE: For any Payment Date, 100% minus the Floating
Allocation Percentage for such Payment Date.

         TREASURY REGULATIONS: Regulations, including proposed or temporary
Regulations, promulgated under the Code. References herein to specific
provisions of proposed or temporary regulations shall include analogous
provisions of final Treasury Regulations or other successor Treasury
Regulations.

                                       53
<PAGE>

         TRIGGER EVENT: With respect to Loan Group I, Loan Group II, Loan Group
III, Loan Group IV and Loan Group V, a Trigger Event is in effect with respect
to any Payment Date on and after the related Stepdown Date if either

         1.       the Rolling Three Month Delinquency Rate for the Group I,
Group II, Group III, Group IV and Group V Loans as of the close of business on
the last day of the preceding calendar month exceeds 40% of the aggregate Note
Principal Balance of the Class M Notes plus the aggregate Overcollateralized
Amount for Loan Group I, Loan Group II, Loan Group III, Loan Group IV and Loan
Group V, divided by the aggregate Stated Principal Balance of the Group I, Group
II, Group III, Group IV and Group V Loans; or

         2.       the cumulative amount of Realized Losses incurred on the Group
I, Group II, Group III, Group IV and Group V Loans from the Cut-off Date through
the end of the calendar month immediately preceding such Payment Date exceeds
the applicable percentage set forth below of the aggregate Stated Principal
Balance of the Group I, Group II, Group III, Group IV and Group V Loans as of
the Cut-off Date:

                  January 2008 to December 2008                1.75%
                  January 2009 and thereafter............      2.00%

With respect to Loan Group VII, a Trigger Event is in effect with respect to any
Payment Date on and after the Stepdown Date if either

         1.       the average of the Group VII Excess Spread Percentage for that
Payment Date and the prior two Payment Dates is less than or equal to 1.75% per
annum; or

         2.       the cumulative amount of Charge-Off Amounts incurred on the
Group VII Loans from the Cut-off Date through the end of the calendar month
immediately preceding such Payment Date exceeds the applicable percentage set
forth below of the aggregate Stated Principal Balance of the Group VII Loans as
of the Cut-off Date:

                  July 2007 to December 2007.............      2.00%
                  January 2008 to December 2008                2.50%
                  January 2009 and thereafter............      3.00%

         TRUST: The American Home Mortgage Investment Trust 2004-4 to be created
pursuant to the Trust Agreement.

         TRUST AGREEMENT: The Amended and Restated Trust Agreement dated as of
December 21, 2004, among the Owner Trustee, the Depositor and The Bank of New
York, as Certificate Registrar and Certificate Paying Agent, relating to the
Trust.

         TRUST ESTATE: The meaning specified in the Granting Clause of the
Indenture.

         TRUST INDENTURE ACT OR TIA: The Trust Indenture Act of 1939, as amended
from time to time, as in effect on any relevant date.

                                       54
<PAGE>

         UCC: The Uniform Commercial Code, as amended from
time to time, as in effect in any specified jurisdiction.

         UNDERWRITERS: Bear, Stearns & Co. Inc., Lehman Brothers Inc., Citigroup
Global Markets, Inc., UBS Securities LLC or their successors.

         UNINSURED CAUSE: Any cause of damage to property subject to a Mortgage
that the complete restoration of such property is not fully reimbursable by the
hazard insurance policies.

         UNPAID INTEREST SHORTFALL: For each Class of Notes and any Payment
Date, such Notes' pro rata share, based on the amount of Accrued Note Interest
otherwise payable on such Note on such Payment Date, of (a) any Prepayment
Interest Shortfalls, to the extent not covered by Compensating Interest, and (b)
any Relief Act Shortfalls, in each case to the extent incurred with respect to
the related Mortgage Loans.

                                       55

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