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                                                                   Exhibit 10.3

                               AMENDMENT NO. 1(a)
                                       TO
                           MASTER REPURCHASE AGREEMENT

         This Amendment No. 1(a) (this "Amendment No. 1") to that certain Master
Repurchase Agreement (the "Agreement"), dated as of March 24, 1998, by and
between NationsBanc Mortgage Capital Corporation ("Buyer"), Metropolitan
Mortgage & Securities Co., Inc. and its subsidiary, Metwest Mortgage Services,
Inc., (each, and jointly and severally, "Seller") is entered into as of this 8th
day of October, 1998.

         In consideration of the mutual covenants and agreements contained
herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree,
promise and covenant as follows:

                                    ARTICLE I
                                   DEFINITIONS

         SECTION 1.1. DEFINED TERMS. Defined terms used herein, unless otherwise
defined herein, have the same meaning ascribed to them in the Agreement.

                                   ARTICLE II
                             AMENDMENT OF SECTION 9

         Section 9 (b)(v) of the Agreement is hereby amended in its entirety to
read as follows:

                  "v) The then aggregate outstanding Purchase Price, when added
         to Purchase Price for the requested Transaction, shall not exceed TWO
         HUNDRED MILLION DOLLARS ($200,000,000). Seller agrees that the Market
         Value used in determining such portion of the outstanding aggregate
         Purchase Price is at Buyer's sole discretion."

                                   ARTICLE III
                             AMENDMENT OF SECTION 18

         Section 18 (s) of the Agreement is hereby amended in its entirety to
read as follows:

                  "s) Metropolitan Mortgage & Securities Co., Inc. shall fail to
         maintain (A) GAAP net worth (any calculation of which shall treat any
         outstanding trust preferred stock as equity) of at least $45,000,000,
         (B) a ratio of Indebtedness to GAAP net worth of 24:1 or less, or (C)
         at least $40,000,000 of liquid assets (cash, cash equivalents or market
         value of U.S. Treasury Securities)."

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                                   ARTICLE IV
                             AMENDMENT OF SECTION 29

         Section 29 of the Agreement is hereby amended in its entirety to read
as follows:

"29.     TERMINATION

         a) This Agreement shall remain in effect until the earlier of (i) the
Termination Date and (ii) the occurrence of a Default. However, no such
termination shall affect Seller's outstanding obligations to Buyer at the time
of such termination. Seller's obligations to indemnify Buyer and Agent pursuant
to this Agreement shall survive the termination hereof.

         b) Agent shall be entitled to a break-up fee equal to 0.3125% of the
highest aggregate principal balance of the Purchased Securities on any day
during the period from the last securitization ("Securitization") underwritten
by Buyer's affiliate to the date of such termination (the "Break-up Fee") that
are repurchased by Seller and neither immediately resold to Agent in a
Transaction nor sold to, or underwritten (as sole manager) by, such affiliate of
Agent (as mortgage-backed securities) in a Securitization; provided however that
such a Break-up Fee shall not apply to:

                  (i)      any Purchased Security which is not resold in a
                           Transaction because, as determined by Agent, it is
                           not an Eligible Mortgage Loan as that term is defined
                           in the Custody Agreement;

                  (ii)     any Purchased Security which is not resold in a
                           Transaction or sold to Agent in a Securitization
                           because it fails to meet, as determined by Agent, the
                           representations and warranties relating to a
                           Securitization or fails to meet, as determined by
                           Agent, the selection criteria for such
                           Securitization; or

                  (iii)    any Purchased Security (x) which has been paid in
                           full or (y) to the extent of the amounts of any
                           principal reductions relating to such Purchased
                           Security.

         The Break-up Fee is earned and payable on the earlier of (i) a sale or
Securitization of the Purchased Securities by Seller (other than a
Securitization sole managed by Buyer's affiliate) and (ii) June 30, 1999.

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                                    ARTICLE V
                                  MISCELLANEOUS

         SECTION 5.1 AGREEMENT. The other agreements, representations,
warranties, terms and conditions contained in the Agreement shall continue in
full force and effect.

         SECTION 5.2. TERMS OF THIS AGREEMENT. This Amendment No. 1 shall have
the same term of, and shall expire at the same time as, the Agreement.

         SECTION 5.3. AMENDMENTS AND WAIVERS. This Amendment No. 1 may not be
amended, modified, terminated or any provision thereof waived without the
written agreement of the parties hereto.

         SECTION 5.4. SEVERABILITY; APPLICABLE LAW. In case any provision in or
obligation under this Amendment No. 1 shall be invalid, illegal or unenforceable
in any jurisdiction, the validity, legality and enforceability of the remaining
provisions or obligation, or of such provision or obligation in any other
jurisdiction, shall not in any way be affected or impaired thereby.

         IN WITNESS WHEREOF, the parties hereto have executed this Amendment No.
1 as of the date first above written.

METROPOLITAN MORTGAGE & SECURITIES, CO., INC.

By:      /s/ C. Paul Sandifur, Jr.
    -------------------------------------------
         C. Paul Sandifur, Jr.
         President and Chief Executive Officer

METWEST MORTGAGE SERVICES, INC.

By:      /s/ Bruce J. Blohowiak
    -------------------------------------------
         Bruce J. Blohowiak
         Executive Vice President

NATIONSBANC MORTGAGE CAPITAL CORPORATION

By:      /s/ John T. McCarthy
    -------------------------------------------
         John T. McCarthy
         Senior Vice President<PAGE>

                                                                    Exhibit 10.4

                               AMENDMENT NUMBER 2
                             TO REPURCHASE AGREEMENT

         This Amendment Number 2 to the Repurchase Agreement (this "Amendment"),
dated as of March 8, 1999, is entered into between Metropolitan Mortgage &
Securities Co., Inc. ("Metropolitan" or "Seller") and NationsBanc Mortgage
Capital Corporation ("NationsBanc" or "Buyer").

                                 R E C I T A L S

         A. Metropolitan and NarionsBanc entered into that certain Master
Repurchase Agreement dated as of March 24, 1998 and amended such Master
Repurchase Agreement as of October 8, 1998 (as amended and as may be further
supplemented, modified and amended from time to time, the "Repurchase
Agreement").

         B. Buyer and Seller each desire to modify the terms of the Repurchase
Agreement as set forth in this Amendment.

         C. Buyer and Seller each have agreed to execute and deliver this
Amendment on the terms and conditions set forth herein.

                  NOW, THEREFORE, in consideration of the premises and the
         mutual covenants contained herein and in the Repurchase Agreement, the
         receipt and sufficiency of which are hereby acknowledged, the parties
         hereto agree to the following:

         l. MISCELLANEOUS. For all purposes of this Amendment, except as
otherwise expressly provided or unless the context otherwise requires, (a)
unless otherwise defined herein, all capitalized terms used herein shall have
the meanings attributed to them by the Repurchase Agreement, (b) the capitalized
terms expressly defined in this Amendment have the meanings assigned to them in
this Amendment and include (i) all genders and (ii) the plural as well as the
singular, (c) all references to words such as "herein", "hereof" and the like
shall refer to this Amendment as a whole and not to any particular article or
section within this Amendment, (d) the term "include" and all variations thereon
shall mean "include without limitation" and (e) the term "or" shall include
"and/or".

         2. MODIFICATIONS AND AMENDMENTS TO REPURCHASE AGREEMENT.

         A. Section 3 (b) is hereby amended so that the last clause of the first
         sentence reads as follows: ", provided that if the Repurchase Date so
         determined is later than the two-year anniversary of the initial
         Purchase Date (the "Termination Date"), the Repurchase Date for such
         transaction shall automatically reset to such anniversary date, and the
         provisions of this sentence as it might relate to a new Transaction
         shall expire on such date."

         B. Section 18(s) is hereby replaced in its entirety by the following:
         "Metropolitan Mortgage & Securities Co., Inc. shall fail to maintain
         (A) GAAP net worth of at least $50 million, (B) a ratio of indebtedness
         to GAAP net worth of 24:l or less, or (C) at least

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         $50,000,000 of liquid assets (cash equivalents and marker value of U.S.
         Treasury securities)."

         C. Section 29(b) is hereby amended so that the last sentence is amended
         to read in its entirety as follows: "The Break-up Fee is earned and
         payable on the earlier of (i) a sale or Securitization of the Purchased
         Securities by Seller (other than a Securitization sole managed by
         Buyer's affiliates) and (ii) the Termination Date."

         3. NO OTHER CHANGES. Except as expressly modified or amended in this
Amendment, all of the terms, covenants, provisions, agreements and conditions of
the Repurchase Agreement are hereby rarified and confirmed in every respect and
shall remain unmodified and unchanged and shall continue in full force and
effect.

         4. COUNTERPARTS. This Amendment may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed and delivered shall be deemed to be an original and all of
which taken together shall constitute one and the same instrument.

         5. GOVERNING LAW; WAIVER OF JURY TRIAL. This Amendment shall be
governed by, and 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 regard to conflicts of laws
principles. The parties hereto each hereby waive the right of trial by jury in
any litigation arising hereunder.

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         IN WITNESS WHEREOF, the parties hereto have caused their duly
authorized officers to execute this Amendment Number 2 to Repurchase Agreement
as of the date first above written.

                                              NATIONSBANC MORTGAGE CAPITAL
                                              CORPORATION, as Buyer

                                              By:      /s/ John T. McCarthy
                                                       -------------------------
                                              Name:    John T. McCarthy
                                              Title:   Senior Vice President

                                              METROPOLITAN MORTGAGE & SECURITIES
                                              CO, INC.,
                                              as Seller

                                              By:      /s/ C. Paul Sandifur, Jr.
                                                       -------------------------
                                              Name:    C. Paul Sandifur, Jr.
                                              Title:   President

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