Document:

exv10w6

 

Exhibit 10.6

RWT HOLDINGS, INC.

Owner

MORGAN STANLEY CREDIT CORPORATION

Servicer

and

REDWOOD TRUST, INC.

Guarantor

 

MASTER SERVICING AGREEMENT

Dated as of November 1, 2006

Fixed, Adjustable Rate and Additional Collateral Mortgage Loans

Flow Delivery Program

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE I DEFINITIONS
	 	 	1	 
	Section 1.01 Defined Terms
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II BOOKS AND RECORDS; TRANSFER OF MORTGAGE LOANS
	 	 	6	 
	Section 2.01 Books and Records
	 	 	6	 
	Section 2.02 Transfer of Mortgage Loans
	 	 	6	 
	 
	 	 	 	 
	ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE SERVICER
	 	 	6	 
	Section 3.01 Representations and Warranties of the Servicer
	 	 	6	 
	 
	 	 	 	 
	ARTICLE IV ADMINISTRATION AND SERVICING OF MORTGAGE LOANS
	 	 	8	 
	Section 4.01 Role of the Servicer
	 	 	8	 
	Section 4.02 Collection of Mortgage Loan Payments
	 	 	9	 
	Section 4.03 Realization Upon Defaulted Mortgage Loans
	 	 	10	 
	Section 4.04 Establishment of Custodial Accounts; Deposits in Custodial Accounts
	 	 	10	 
	Section 4.05 Permitted Withdrawals From the Custodial Account
	 	 	11	 
	Section 4.06 Establishment of Escrow Accounts; Deposits in Escrow Accounts
	 	 	12	 
	Section 4.07 Permitted Withdrawals From Escrow Account
	 	 	13	 
	Section 4.08 Transfer of Accounts
	 	 	13	 
	Section 4.09 [INTENTIONALLY OMITTED]
	 	 	13	 
	Section 4.10 Errors and Omissions Insurance
	 	 	13	 
	Section 4.11 Title Management and Disposition of REO Property
	 	 	14	 
	Section 4.12 Adjustments to Mortgage Interest Rates
	 	 	15	 
	Section 4.13 Subservicing Agreements Between the Servicer and Subservicers
	 	 	15	 
	Section 4.14 Successor Subservicers
	 	 	16	 
	Section 4.15 Liability of the Servicer
	 	 	16	 
	Section 4.16 Assumption or Termination of Subservicing Agreements
	 	 	16	 
	Section 4.17 Servicing Accounts
	 	 	17	 
	Section 4.18 Permitted Investments
	 	 	17	 
	Section 4.19 Payment of Taxes, Insurance and Other Charges; Maintenance of Primary Mortgage
Insurance Policies; Collections Thereunder
	 	 	17	 
	Section 4.20 Maintenance of Hazard Insurance
	 	 	18	 
	 
	 	 	 	 
	ARTICLE V ADMINISTRATION AND SERVICING OF TRADING ACCOUNTS
	 	 	19	 
	Section 5.01 The Servicer to Service Trading Accounts
	 	 	19	 
	Section 5.02 Agreements with Respect to the Surety Bond
	 	 	20	 
	 
	 	 	 	 
	ARTICLE VI PAYMENTS TO OWNER
	 	 	21	 
	Section 6.01 Distributions
	 	 	21	 
	Section 6.02 Statements to Owner
	 	 	21	 
	Section 6.03 Monthly Advances by the Servicer
	 	 	21	 
	Section 6.04 Compensating Interest
	 	 	22	 

i

 

	 	 	 	 	 
	 	 	Page	 
	ARTICLE VII GENERAL SERVICING PROCEDURE
	 	 	23	 
	Section 7.01 Assumption Agreements
	 	 	23	 
	Section 7.02 Satisfaction of Mortgages and Release of Mortgage Files
	 	 	23	 
	Section 7.03 Servicing Compensation
	 	 	23	 
	Section 7.04 Annual Statement as to Compliance and Attestation
	 	 	24	 
	Section 7.05 Owner’s Right to Examine the Servicer Records 
	 	 	24	 
	 
	 	 	 	 
	ARTICLE VIII REPORTS TO BE PREPARED BY SERVICER
	 	 	25	 
	Section 8.01 The Servicer Shall Provide Information as Reasonably Required 
	 	 	25	 
	 
	 	 	 	 
	ARTICLE IX THE SERVICER
	 	 	25	 
	Section 9.01 Indemnification; Third Party Claims
	 	 	25	 
	Section 9.02 Merger or Consolidation of the Servicer 
	 	 	26	 
	Section 9.03 Limitation on Liability of the Servicer and Others
	 	 	26	 
	Section 9.04 The Servicer Not to Resign
	 	 	26	 
	 
	 	 	 	 
	ARTICLE X DEFAULT
	 	 	27	 
	Section 10.01 Events of Default 
	 	 	27	 
	Section 10.02 Waiver of Defaults 
	 	 	28	 
	 
	 	 	 	 
	ARTICLE XI TERMINATION; REPURCHASE
	 	 	28	 
	Section 11.01 Termination 
	 	 	28	 
	Section 11.02 Repurchase
	 	 	28	 
	 
	 	 	 	 
	ARTICLE XII MISCELLANEOUS PROVISIONS
	 	 	29	 
	Section 12.01 Successor to the Servicer
	 	 	29	 
	Section 12.02 Amendment
	 	 	30	 
	Section 12.03 Assignments
	 	 	30	 
	Section 12.04 Assignment of Servicing Rights 
	 	 	30	 
	Section 12.05 Governing Law
	 	 	30	 
	Section 12.06 Notices
	 	 	30	 
	Section 12.07 Severability Provisions
	 	 	31	 
	Section 12.08 Exhibits
	 	 	31	 
	Section 12.09 General Interpretive Principles
	 	 	31	 
	Section 12.10 Reproduction of Documents 
	 	 	32	 
	Section 12.11 Successors and Assigns
	 	 	32	 
	Section 12.12 Counterparts
	 	 	32	 
	Section 12.13 Non-Solicitation 
	 	 	32	 
	Section 12.14 Guaranty of Owner’s Obligations
	 	 	33	 
	 
	 	 	 	 
	ARTICLE XIII COMPLIANCE WITH REGULATION AB
	 	 	33	 
	Section 13.01 Intent of the Parties; Reasonableness
	 	 	33	 
	Section 13.02 Additional Representations and Warranties of the Servicer
	 	 	33	 
	Section 13.03 Information to Be Provided by the Servicer
	 	 	34	 
	Section 13.04 Annual Statements as to Compliance
	 	 	37	 
	Section 13.05 Report on Assessment of Compliance and Attestation
	 	 	38	 
	Section 13.06 Use of Subservicers and Subcontractors
	 	 	39	 

ii

 

	 	 	 	 	 
	 	 	Page	 
	Section 13.07 Indemnification; Remedies
	 	 	40	 
	Section 13.08 Third Party Beneficiary
	 	 	42	 

EXHIBIT A

     FORM OF LIMITED POWER OF ATTORNEY

EXHIBIT B

     FORM OF MONTHLY SERVICER REPORT

EXHIBIT C

     SERVICING CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

EXHIBIT D

     FORM OF ANNUAL CERTIFICATION

iii

 

MORTGAGE LOAN SERVICING AGREEMENT

          This is a MASTER SERVICING AGREEMENT (this “AGREEMENT”), dated and effective as of November 1,
2006 and is by and between RWT Holdings, Inc., a Delaware Corporation, as owner (“Owner”), Morgan
Stanley Credit Corporation, a Delaware corporation, as servicer (the “Servicer”), and Redwood
Trust, Inc., a Maryland corporation, as guarantor (“Guarantor”).

PRELIMINARY STATEMENTS

          Pursuant to a Master Mortgage Loan Purchase Agreement dated as of November 1, 2006 between
Owner, Morgan Stanley Credit Corporation, a Delaware corporation (“Seller”) and Guarantor (as
amended, modified restated or supplemented from time to time, the “Purchase Agreement”), Owner may
purchase from Seller from time to time certain residential, first mortgage loans. In order to
facilitate the servicing of such mortgage loans by the Servicer, the Servicer, Owner and Guarantor
have executed this agreement.

          In consideration of the premises and the mutual agreements hereinafter set forth, Owner and
the Servicer agree as follows:

ARTICLE I

DEFINITIONS

     Section 1.01 Defined Terms.

     Whenever used in this Agreement, the following words and phrases, unless the context otherwise
requires shall have the following meaning specified in this Section (capitalized terms used and not
otherwise defined herein shall have the respective meanings specified in the Purchase Agreement to
the extent the same are defined therein):

     “Agreement”: This Master Servicing Agreement and all exhibits hereto, as the same may from
time to time be amended, modified, restated or supplemented.

     “Applicable Law”: All applicable laws of any Governmental Authority, including, without
limitation, federal, state and foreign securities laws, tax laws, tariff and trade laws,
ordinances, judgments, decrees, injunctions, writs and orders or like actions of any Governmental
Authority and rules, regulations, orders, interpretations, licenses, and permits of any federal,
regional, state, county, municipal or other Governmental Authority.

     “Collateral Base”: With respect to any Mortgage Loan, the value of any Additional Collateral
related to such Mortgage Loan, plus the value of the Mortgaged Property related to such Mortgage
Loan.

     “Condemnation Proceeds”: All awards or settlements in respect of a taking of a partial or an
entire Mortgaged Property by exercise of the power of eminent domain or condemnation.

 

 

     “Custodial Account”: The separate trust account or accounts created and maintained pursuant to
Section 4.04 of this Agreement which shall be entitled “Morgan Stanley Credit Corporation,
in trust for RWT Holdings, Inc.,” or such other title as is requested by the Owner.

     “Eligible Account”: An account that is (i) maintained at a depository institution the
short-term debt obligations (or, in the case of a depository institution which is part of a holding
company structure, the short-term debt obligations of such parent holding company) of which have
been rated by each Rating Agency in one of its two highest short-term rating categories at the time
of the deposit therein, or (ii) a trust account maintained with a corporate trust department of a
federal or state chartered depository institution or trust company, which institution is acting in
its fiduciary capacity.

     “Escrow Account”: The separate trust account or accounts created and maintained pursuant to
Section 4.06 on which shall be entitled “Morgan Stanley Credit Corporation, as Servicer,
in trust for Owner and various Mortgagors,” or such other title as is requested by Owner.

     “Escrow Payments”: The amounts constituting ground rents, taxes, assessments, water charges,
sewer rents, mortgage insurance premiums, property insurance premiums and other payments required
to be escrowed by the Mortgagor with the mortgagee pursuant to any Mortgage Loan.

     “Event of Default”: Any one of the conditions or circumstances enumerated in Section
10.01.

     “Governmental Authority”: Any nation or government (including any state or other political
subdivision of either thereof) and any entity exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government.

     “Insurance Proceeds”: Proceeds of any Primary Mortgage Insurance Policy, title policy, hazard
policy or other insurance policy covering a Mortgage Loan, if any, 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.

     “Liquidation Proceeds”: Amounts, other than Insurance Proceeds and Condemnation Proceeds,
received by the Servicer in connection with the liquidation of a defaulted Mortgage Loan through a
trustee’s sale, foreclosure sale or otherwise (including, but not limited to, amounts received with
respect to an Additional Collateral Pledge Agreement), other than amounts received following the
acquisition of REO Property pursuant to Section 4.11.

     “Loan Amount”: With respect to any Mortgage Loan at any time, the outstanding principal
balance of such Mortgage Loan at such time.

     “Loan Documents”: With respect to any Mortgage Loan, the Mortgage Note, Mortgage, and/or any
other documents executed by Mortgagor and delivered to the Servicer evidencing or securing the
Mortgage Loan.

2

 

     “Master Servicer”: With respect to any Securitization Transaction, the “Master Servicer,” if
any, identified in the related transaction documents.

     “Monthly Advance”: The aggregate of the advances made by the Servicer on any Remittance Date
pursuant to Section 6.03.

     “Moody’s”: Moody’s Investors Service, Inc. or its successor in interest.

     “Mortgage Loan”: The “Mortgage Loans” (as defined in the Purchase Agreement) which are
subject to this Agreement from time to time.

     “MSA Mortgage Loan Schedule”: Collectively, a schedule comprised of all Mortgage Loans
subject to servicing under this Agreement, but excluding all Mortgage Loans assumed or transferred
by Owner, or otherwise no longer subject to servicing under this Agreement.

     “MSCC”: As defined in Section 4.16.

     “Officer’s Certificate”: A certificate signed by the Chairman of the Board, the Vice Chairman
of the Board, the President, a Senior Vice President, Vice President, or an Assistant Vice
President of the Servicer, and delivered to Owner as required by this Agreement.

     “Owner”: The owner of the Mortgage Loans.

     “Permitted Investment”: Any one or more of the following:

	 	(i)	 	direct obligations of, or obligations fully guaranteed as to 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)	 	repurchase obligations (the collateral for which is held by a third party) with
respect to any security described in clause (i) above, provided that the long-term
unsecured obligations of the party agreeing to repurchase such obligations are at the
time rated by each of the Rating Agencies in one of its two highest rating categories;
	 
	 	(iii)	 	certificates of deposit, time deposits, demand deposits and bankers’
acceptances of any bank or trust company incorporated under the laws of the United
States or any state thereof or the District of Columbia, provided that the short-term
commercial paper of such bank or trust company at the date of acquisition thereof has
been rated by each of the Rating Agencies in its highest rating;
	 
	 	(iv)	 	money market funds rated by each of the Rating Agencies in its highest
short-term debt rating category;
	 
	 	(v)	 	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 or
the District of Columbia which on the date of acquisition has been rated by each of the
Rating Agencies in its highest short-term rating category; and

3

 

	 	(vi)	 	any other obligation or security acceptable to each of the Rating Agencies (as
certified by a letter from each of the Rating Agencies to Owner) in respect of mortgage
pass through certificates rated in one of its two highest rating categories;

provided, that with the exception of U.S. Treasury Strips, no such instrument shall be a Permitted
Investment if such instrument evidences either (a) the right to receive interest only payments with
respect to the obligations underlying such instrument or (b) both principal and interest payments
derived from obligations underlying such instrument where the principal and interest payments with
respect to such instruments provide a yield to maturity exceeding 120% of the yield to maturity at
par of such underlying obligation.

     “Prepayment Interest Shortfall”: With respect to any Remittance Date and any Mortgage Loan
that was the subject of a principal prepayment during the related Principal Prepayment Period, an
amount equal to one month’s interest at the Mortgage Loan Remittance Rate on the amount of such
principal prepayment less the amount of interest (adjusted to the Mortgage Loan Remittance Rate)
paid by the Mortgagor in respect of such principal prepayment.

     “Principal Prepayment Period”: As to any Remittance Date, the calendar month preceding the
month of distribution.

     “Rating Agency”: Either of Standard & Poor’s and Moody’s.

     “Record Date”: The close of business of the last Business Day of the month preceding the
month of the related Remittance Date.

     “REMIC”: A real estate mortgage investment conduit, as such term is defined by the Internal
Revenue Code of 1986, as amended.

     “Remittance Date”: The 18th day of any month or, if such 18th day is not a Business Day, the
first Business Day immediately preceding such 18th day.

     “REO Disposition”: The final sale by the Owner of any REO Property.

     “REO Property”: A Mortgaged Property acquired by the Servicer on behalf of Owner as described
in Section 4.11.

     “Servicing Advances”: All customary, reasonable and necessary “out of pocket” costs and
expenses incurred in the performance by the Servicer of its servicing obligations, including, but
not limited to, the cost of (i) the preservation, restoration and protection of the Mortgaged
Property, (ii) paying taxes and insurance with respect to the Mortgaged Property, (iii) enforcement
of judicial proceedings, including foreclosures, bankruptcies and defense of claims relating to the
Mortgages and Mortgaged Property, and (iv) the management and liquidation of the REO Property.

     “Servicing Criteria”: The “servicing criteria” set forth in Item 1122(d) of Regulation AB, as
such may be amended from time to time.

4

 

     “Servicing Fee”: With respect to any Mortgage Loan and any Remittance Date, the fee payable
monthly to the Servicer pursuant to Section 7.03.

     “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 Owner upon request, as such list may from time to time be
amended.

     “Specially Serviced Mortgage Loan”: A Mortgage Loan as to which the following events have
occurred and is continuing (i) monthly mortgage payment being more that 60 days delinquent (ii) any
filing of insolvency proceeding on behalf of the related Mortgagor or (iii) any receipt by the
Servicer of notice of foreclosure of the related mortgage property.

     “Standard & Poor’s”: Standard & Poor’s Ratings Services, a division of the McGraw-Hill
Companies, Inc., or its successor in interest.

     “Subcontractor”: Any vendor, subcontractor or other Person that is not responsible for the
overall servicing (as “servicing” is commonly understood by participants in the mortgage-backed
securities market) of Mortgage Loans but performs one or more discrete functions identified in Item
1122(d) of Regulation AB with respect to Mortgage Loans under the direction or authority of the
Seller or a Subservicer.

     “Subservicer”: Any Person that services Mortgage Loans on behalf of the Seller or any
Subservicer and is responsible for the performance (whether directly or through Subservicers or
Subcontractors) of a substantial portion of the material servicing functions required to be
performed by the Seller under this Agreement or any Reconstitution Agreement that are identified in
Item 1122(d) of Regulation AB.

     “Subservicing Account”: An account established by a Subservicer which meets the requirements
set forth in Section 4.17 and is otherwise acceptable to the Servicer, and which must be an
Eligible Account.

     “Subservicing Agreement”: The written agreement between the Servicer and a Subservicer
relating to the servicing and administration of the Mortgage Loans as provided in Section
4.13.

     “Surety Agreement”: The Surety Bond Reimbursement Agreement dated March 17, 1999 between the
Surety Bond Issuer and the Servicer pursuant to which the Surety Bond Issuer has issued the Surety
Bond, as the same may be amended, modified, restated or supplemented from time to time.

     “Surety Bond”: The limited purpose Surety Bond, dated March 17, 1999, issued by the Surety
Bond Issuer in favor of the Sellers, as the same may be amended, modified, restated or supplemented
from time to time.

     “Surety Bond Issuer”: shall mean AMBAC Assurance Corp or its successors.

5

 

ARTICLE II

BOOKS AND RECORDS; TRANSFER OF MORTGAGE LOANS

     Section 2.01 Books and Records.

     The Servicer shall be responsible for maintaining, and shall maintain, a complete set of books
and records for the Mortgage Loans, which shall be appropriately identified in the Servicer’s books
and records to clearly reflect the ownership of the Mortgage Loans by Owner, and subsequent
assignments and transfers of the Mortgage Loans pursuant to Section 2.02 hereof. At the
request of Owner, the Servicer shall promptly deliver to Owner an MSA Mortgage Loan Schedule
setting forth all Mortgage Loans that the Servicer then services and administers for Owner under
this Agreement; provided, however, that the information contained on such MSA Mortgage Loan
Schedule may be as of the Closing Date for each respective Mortgage Loan and may consist of the
Mortgage Loan Schedule(s) attached to the Bill(s) of Sale for such Mortgage Loans, with manual
deletions or additions thereto or other revisions thereof.

     Section 2.02 Transfer of Mortgage Loans.

     Owner may, with the consent of the Servicer (which shall not be unreasonably withheld),
assign, sell or transfer (each, a “Transfer”) any of Owner’s interest in and to any of the Mortgage
Loans to any institutional investor that has a net worth of not less than $50,000,000 and owns not
less than $250,000,000 in residential mortgage loans (each, a “Permitted Transferee”), subject in
each case to the rights of the Servicer under the provisions of this Agreement (including, without
limitation, the right of the Servicer to continue servicing such Mortgage Loans on the terms set
forth herein), except that no such assignment, sale, transfer, pledge, hypothecation or encumbrance
shall increase the Servicer’s liabilities or obligations or decrease the Servicer’s rights under
this Agreement, and Owner shall remain fully liable for performance of all of its obligations as to
the transferred Mortgage Loans. As a condition precedent to any Transfer (in addition to the other
conditions set forth herein), the Permitted Transferee shall enter into a servicing agreement with
the Servicer in the form of this Agreement, but mutatis mutandis, and deliver such certificates and
opinions as the Servicer may reasonably require. Upon consummation of any Transfer, the MSA
Mortgage Loan Schedule shall be amended by the Servicer to reflect such transfer. Notwithstanding
the foregoing, Owner shall not make any Transfer of (i) less than forty (40) Mortgage Loans, (ii)
Mortgage Loans with an aggregate unpaid principal balance less than $5,000,000 to any Person or if
the remaining Mortgage Loans listed on the MSA Mortgage Loan Schedule after giving effect thereto
would have an aggregate unpaid principal balance less than $5,000,000 or (iii) any Mortgage Loans
other than to a Permitted Transferee in a transaction that complies with the terms of this
Agreement.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE SERVICER

     Section 3.01 Representations and Warranties of the Servicer.

6

 

     The Servicer represents, warrants and covenants to Owner, as of the date of this Agreement and
as of each Closing Date or as of such other date specified below, that:

     (i) The Servicer (a) is a corporation, duly incorporated, validly existing and in good
standing under the laws of the State of Delaware, (b) has all licenses necessary to carry on its
business as now being conducted, (c) has all material licenses and is qualified and in good
standing under the laws of each state where a Mortgaged Property is located to the extent required
under applicable law to effect such qualification, and (d) is in compliance with the laws of each
such state to the extent necessary to permit the enforcement of Owner’s rights (either directly or
through a Subservicer) under each Mortgage Loan and to permit the servicing of the Mortgage Loans
in accordance with the terms of this Agreement.

     (ii) The Servicer has full power and authority to hold each Mortgage Loan, to service each
Mortgage Loan, to execute and deliver this Agreement, and to enter into and consummate all
transactions contemplated by this Agreement. The Servicer 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 Owner and the enforceability
against Owner, constitutes a legal, valid and binding obligation of the Servicer, enforceable
against it in accordance with its terms, except as the enforceability thereof may be limited by
bankruptcy, insolvency, liquidation, moratorium, reorganization or other similar laws affecting the
rights of creditors generally or by general principles of equity, regardless of whether enforcement
is sought in a proceeding in equity or at law.

     (iii) The consummation of the transactions contemplated by this Agreement is in the ordinary
course of the Servicer’s business and will not conflict with or result in a breach of any of the
terms, conditions or provisions of the Servicer’s certificate of incorporation or by-laws or any
legal restriction or any material agreement or instrument to which the Servicer is now party or by
which it is bound, or constitute a material default or result in an acceleration under any of the
foregoing, or result in the violation of any law, rule, regulation, order, judgment or decree to
which the Servicer or its property is subject.

     (iv) The Servicer is an approved seller/servicer for Fannie Mae or Freddie Mac in good
standing and is a mortgagee approved by the Secretary of Housing and Urban Development pursuant to
Section 203 of the National Housing Act. No event has occurred that would render the
Servicer unable to comply with Fannie Mae or Freddie Mac eligibility requirements or that would
require notification to either Fannie Mae or Freddie Mac.

     (v) The Servicer has no reason or cause to believe that it cannot perform each covenant
contained in this Agreement.

     (vi) There is no action suit, proceeding or investigation pending or, to the Servicer’s
knowledge, threatened, against the Servicer that, in the Servicer’s judgment, if determined
adversely to the Servicer, would materially and adversely affect the validity or enforceability of
this Agreement or the ability of the Servicer to perform its obligations hereunder in accordance
with the terms hereof.

7

 

     (vii) No consent, approval, authorization or order of any court or governmental authority is
required for the execution and delivery of this Agreement by the Servicer or for the performance by
the Servicer of its obligations hereunder, other than any such consent, approval, authorization or
order as has been obtained prior to the Closing Date.

     The Servicer shall indemnify Owner and hold it harmless against any losses, damages,
penalties, fines, forfeitures, legal fees and related costs, judgments, and other costs and
expenses resulting from any claim, demand, defense or assertion based on or grounded upon, or
resulting from, a breach of the Servicer’s representations and warranties contained in this
Section 3.01. It is understood and agreed that the obligations of the Servicer set forth
in this Section 3.01 to indemnify Owner as provided above constitute the sole remedies of
Owner respecting a breach of the foregoing representations and warranties.

ARTICLE IV

ADMINISTRATION AND SERVICING OF MORTGAGE LOANS

     Section 4.01 Role of the Servicer.

     The Servicer, as independent contract servicer, shall service and administer the Mortgage
Loans in accordance with this Agreement and the normal and usual standards of practice of prudent
mortgage lenders, and shall have full power and authority, acting alone, to do or cause to be done
any and all things in connection with such servicing and administration that the Servicer may deem
necessary or desirable and consistent with the terms of this Agreement.

     Consistent with the terms of this Agreement, at the respective Mortgagor’s request or as
required by applicable law, the Servicer may waive, modify or vary any term of any Mortgage Loan or
consent to the postponement of strict compliance with any such term or in any manner grant
indulgence to any Mortgagor if, in the Servicer’s reasonable and prudent determination, such
waiver, modification, postponement or indulgence is consistent with industry practice and not
materially adverse to Owner, including actions intended to maximize collections on such Mortgage
Loan; provided, however, that, except as permitted by the following paragraph, the Servicer shall
not permit any modification with respect to any Mortgage Loan that would change the Mortgage
Interest Rate, forgive the payment of any principal or interest payments, make future advances or
extend the final maturity date on such Mortgage Loan. Without limiting the generality of the
foregoing, the Servicer shall continue, and is hereby authorized and empowered, to execute and
deliver on behalf of itself and Owner, all instruments of satisfaction or cancellation, or of
partial or full release, discharge and all other comparable instruments, with respect to the
Mortgage Loans and with respect to the Mortgaged Property. Owner has provided and shall, as
necessary, promptly furnish the Servicer with such powers of attorney (a form of which is attached
hereto as Exhibit A) as are necessary and appropriate and with such other documents as are
necessary or appropriate to enable the Servicer to carry out its servicing and administrative
duties under this Agreement.

     Notwithstanding any other provision in this Agreement or the Master Mortgage Loan Purchase
Agreement to the contrary:

8

 

     (i) In the case of any Mortgage Loan, the Servicer may waive any late payment charge, penalty,
interest or any assumption fees, or other fees which may be collected in the ordinary course of
servicing such Mortgage Loan;

     (ii) In the case of a Specially Serviced Mortgage Loan, the Servicer shall notify the Owner in
writing by either fax, email or other mutually acceptable means and obtain the Owner’s written
consent prior to the Servicer modifying, amending or waiving any of the financial terms of, or
making any other modifications to the Mortgage Loan. If Owner notifies the Servicer of its refusal
to consent thereto, then the Servicer shall, at its option, repurchase the related Specially
Serviced Mortgage Loan. Such repurchase shall be at a price equal to (a) the Assumed Principal
Balance of the Mortgage Loan plus (b) accrued interest on such Assumed Principal Balance at the
Mortgage Loan Remittance Rate has last been paid and distributed to Purchaser to the date of
repurchase. Further, if such Mortgage Loan is an Additional Collateral Mortgage Loan, Servicer may
release a portion of or all of the Additional Collateral related thereto provided that the release
of such Additional Collateral is in accordance with the Additional Collateral Pledge Agreement; and

     (iii) The Servicer shall specifically notify the Owner and obtain the Owner’s consent to the
Servicer taking any of the following actions: (a) selling any Specially Serviced Mortgage Loan or
REO Property, (b) forgiving principal or interest on, or permitting to be satisfied at a discount,
any Mortgage Loan; or (c) accepting substitute or additional collateral, or releasing any
collateral, for a Mortgage Loan.

     In servicing and administering the Mortgage Loans, the Servicer shall employ procedures
including collection procedures and exercise the same care that it customarily employs and
exercises in servicing and administering mortgage loans for its own account giving due
consideration to accepted mortgage servicing practices of prudent lending institutions and Owner’s
reliance on the Servicer. In servicing and administering the Mortgage Loans, the Servicer may
permit any Governmental Authority to have access to and review and copy the files of the Servicer
with respect to the Mortgage Loans, and Servicer is authorized to do whatever is necessary to
comply with all Applicable Laws and the requirements of such Governmental Authority, including
without limitation any required modifications of the Loan Documents.

     Section 4.02 Collection of Mortgage Loan Payments.

     Continuously from the date hereof until the principal and interest on all Mortgage Loans are
paid in full, the Servicer shall proceed diligently to collect all payments due under each Mortgage
Loan when the same shall become due and payable and shall, to the extent such procedures shall be
consistent with this Agreement and the terms and provisions of any related Primary Mortgage
Insurance Policy, follow such collection procedures as it follows with respect to mortgage loans
comparable to the Mortgage Loans held for its own account. Further, the Servicer will take special
care in ascertaining and estimating annual ground rents, taxes, assessments, water rates, property
insurance premiums, mortgage insurance premiums, and all other charges that, as provided in the
Mortgage, will become due and payable to the end that the installments payable by the Mortgagors
will be sufficient to pay such charges as and when they become due and payable.

9

 

     Section 4.03 Realization Upon Defaulted Mortgage Loans.

     The Servicer shall use reasonable efforts, consistent with the procedures that the Servicer
would use in servicing loans for its own account, to foreclose upon or otherwise comparably convert
the ownership of Mortgaged Properties which secure Mortgaged Loans which come into and continue in
default and as to which no satisfactory arrangements can be made for collection of delinquent
payments pursuant to Section 4.01. In addition, if an Additional Collateral Mortgage Loan becomes a
defaulted Mortgage Loan, the Servicer shall make all reasonable efforts available under the Loan
Documents to realize upon the Additional Collateral pertaining to such Mortgage Loan, and any
proceeds from the realization thereof (and not such Additional Collateral itself) shall be included
in the related Liquidation Proceeds and deposited in the Custodial Account, net of any related
Servicing Advances. The Servicer shall use reasonable efforts to realize upon defaulted Mortgage
Loans in such a manner as will maximize the receipt of principal and interest by Owner, taking into
account, among other things, the timing of foreclosure proceedings and any proceedings with respect
to Additional Collateral. The foregoing is subject to the provisions that, in any case in which
Mortgaged Property shall have suffered damage, the Servicer shall not be required to expend its own
funds toward the restoration of such property in excess of an aggregate of $2,000 during the life
of the Mortgage Loan, unless it shall determine in its discretion (i) that such restoration will
increase the proceeds of liquidation of the related Mortgage Loan to Owner after reimbursement to
itself for such expenses, and (ii) that such expenses will be recoverable by the Servicer through
Insurance Proceeds or Liquidation Proceeds from the related Mortgaged Property, as contemplated in
Section 4.05.

     In the event that any payment due under any Mortgage Loan becomes 90 days delinquent and, in
the judgment of the Servicer, the related Mortgagor is not likely to become current within a
reasonable period of time, the Servicer shall commence foreclosure or other proceedings to realize
upon the Mortgaged Property securing such Mortgage Loan.

     Section 4.04 Establishment of Custodial Accounts; Deposits in Custodial Accounts.

     The Servicer shall establish and maintain at all times appropriate custodial accounts for
principal and interest, and taxes and insurance with respect to the Mortgage Loans. The Servicer
shall segregate and hold all funds constituting Escrow Payments collected and received pursuant to
a Mortgage Loan to be so deposited, separate and apart from any of its own funds and general
assets.

     The Servicer shall deposit in the Custodial Account and retain therein the following payments
and collections received or made by it subsequent to the Cut-off Date, or received by it prior to
the Cut-off Date but allocable to a period subsequent thereto, other than in respect of principal
and interest on the Mortgage Loans due on or before the Cut-off Date:

     (i) All payments on account of principal, including principal prepayments, on the Mortgage
Loans;

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     (ii) All payments on account of interest on the Mortgage Loans adjusted to the Mortgage Loan
Remittance Rate;

     (iii) All Liquidation Proceeds;

     (iv) All Insurance Proceeds including amounts required to be deposited pursuant to
Sections 4.06, 4.11 and 4.18, other than proceeds to be held in the Escrow
Account and applied to the restoration or repair of the Mortgaged Property or released to the
Mortgagor in accordance with the Servicer’s normal servicing procedures the related loan documents
or applicable law;

     (v) All Condemnation Proceeds affecting any Mortgaged Property that are not released to the
Mortgagor in accordance with the Servicer’s normal servicing procedures, the loan documents or
applicable law;

     (vi) Any Monthly Advances;

     (vii) All proceeds of any Mortgage Loan repurchased in accordance with Section 5(c) or (d) of
the Purchase Agreement, and all amounts required to be deposited by the Servicer in connection with
shortfalls in principal amount of Qualified Substitute Mortgage Loans pursuant to Section 5(c) of
the Purchase Agreement;

     (viii) Any amounts required to be deposited by the Servicer pursuant to Section 6.04 for the
month of distribution;

     (ix) Any amounts in respect of Permitted Investments required to be deposited pursuant to
Section 4.18;

     (x) Any amounts required to be deposited by the Servicer in connection with any REO Property
pursuant to Section 4.11; and

     (xi) Any amounts required to be deposited into the Custodial Account pursuant to Section 7.01.

     The foregoing requirements for deposit in the Custodial Account shall be exclusive, it being
understood and agreed that, without limiting the generality of the foregoing, payments in the
nature of late payment charges and assumption fees, to the extent permitted by Section 7.01, need
not be deposited by the Servicer in the Custodial Account. Any interest paid on funds deposited
into the Custodial Account by the depository institution shall accrue to the benefit of the
Servicer and the Servicer shall be entitled to retain and withdraw such interest from the Custodial
Account pursuant to Section 4.05(iv). In addition, funds in the Custodial Account may be invested
in Permitted Investments in accordance with the provisions set forth in Section 4.18.

     Section 4.05 Permitted Withdrawals From the Custodial Account.

     The Servicer may, from time to time, make withdrawals from the Custodial Account for the
following purposes:

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     (i) To make payments to Owner in the amounts and in the manner provided for in Section 6.01;

     (ii) To reimburse itself for each unreimbursed Monthly Advance from the related Monthly
Payments collected from the Mortgagors or, to the extent an unreimbursed Monthly Advance is
determined by the Servicer to be unrecoverable, from any funds in the Custodial Account;

     (iii) To reimburse itself for unreimbursed Servicing Advances and for unreimbursed Servicing
Fees, provided that with respect to any Mortgage Loan the Servicer’s right to such reimbursement
shall be limited, subject to Section 4.13, to the related funds collected by the Servicer from the
Mortgagor or any other Person including, but not limited to, Liquidation Proceeds, Condemnation
Proceeds and Insurance Proceeds, and with respect to REO Property, funds received as rental or
similar income. The Servicer’s right to the reimbursement set forth in the preceding sentence
shall be prior to the rights of Owner to such proceeds and amounts, except that where the Servicer
is required to repurchase a Mortgage Loan pursuant to Section 5(c) or (d) of the Purchase
Agreement, the Servicer’s right to such reimbursement shall be subsequent to the rights of Owner to
receive payment from the Custodial Account representing the repurchase price set forth in Section
5(c) or (d) of the Purchase Agreement, as applicable, and representing all other amounts required
to be paid to Owner with respect to such repurchased Mortgage Loan;

     (iv) To pay itself as servicing compensation any interest earned on funds in the Custodial
Account;

     (v) To pay itself with respect to each Mortgage Loan that has been repurchased pursuant to
Section 5(c) or (d) of the Purchase Agreement all related Monthly Payments and such other amounts
as may be collected by the Servicer from the Mortgagor or otherwise relating to such Mortgage Loan,
provided that such Monthly Payments or other amounts have not been distributed as of the date on
which the related repurchase price is determined;

     (vi) To refund to the Servicer any amount deposited in the Custodial Account and not required
to be deposited therein; and

     (vii) To clear and terminate the Custodial Account upon the termination of this Agreement.

     Section 4.06 Establishment of Escrow Accounts; Deposits in Escrow Accounts.

     The Servicer shall segregate and hold all funds collected and received pursuant to each
Mortgage Loan which constitute Escrow Payments separate and apart from any of its own funds and
general assets. The Servicer will establish one or more Escrow Accounts for such purpose, each of
which shall be an Eligible Account.

     The Servicer shall deposit in the Escrow Account or Accounts on a daily basis, and retain
therein, (i) all Escrow Payments collected on account of the Mortgage Loans, for the purpose of
effecting timely payment of any such items as required under the terms of this Agreement, and (ii)
all Insurance Proceeds which are to be applied to the restoration or repair of any Mortgaged

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Property. The Servicer shall make withdrawals therefrom only to effect such payments as are
required or contemplated under this Agreement, and for such other purposes as set forth or in
accordance with Section 4.07. The Servicer shall be entitled to retain any interest paid on funds
deposited into the Escrow Account by the depository institution other than interest on escrowed
funds required by law to be paid to a Mortgagor.

     Section 4.07 Permitted Withdrawals From Escrow Account.

     Withdrawals from the Escrow Account may be made by the Servicer (i) to effect timely payments
of ground rents, taxes, assessments, water rates, property insurance premiums, Primary Mortgage
Insurance Policy premiums, if applicable, and comparable items, (ii) to reimburse the Servicer for
any Servicing Advance made by the Servicer with respect to an Escrow Payment, but only from amounts
received on the related Mortgage Loan which represent late payments or collections of Escrow
Payments thereunder, and only to the extent permitted by applicable law, (iii) to refund to the
Mortgagor any funds as may be determined to be overages, (iv) for transfer to the Custodial Account
in accordance with the terms of this Agreement, (v) for application to restoration or repair of the
Mortgaged Property, (vi) to pay to the Servicer, or to the Mortgagor to the extent required by law,
any interest paid on the funds deposited into the Escrow Account, (vii) to refund to the Servicer
any amount deposited in the Escrow Account and not required to be deposited therein or (viii) to
clear and terminate the Escrow Account on the termination of this Agreement. As part of its
servicing duties, the Servicer shall pay to the Mortgagors interest on funds in the Escrow Account,
to the extent required by law, and to the extent that interest earned on funds in the Escrow
Account is insufficient, shall pay such interest from its own funds, without any reimbursement
therefor.

     Section 4.08 Transfer of Accounts.

     The Servicer may transfer the Custodial Account or the Escrow Account to a different
depository institution from time to time. The Servicer shall promptly notify Owner upon making any
such transfer. In any case, the Custodial Account and Escrow Account shall be Eligible Accounts.

     Section 4.09  [INTENTIONALLY OMITTED]

     Section 4.10 Errors and Omissions Insurance.

     The Servicer shall maintain, at its own expense, a blanket fidelity bond and an errors and
omissions insurance policy, with broad coverage with responsible companies that would meet the
requirements of Fannie Mae or Freddie Mac on all officers, employees or other persons acting in any
capacity with regard to the Mortgage Loans to handle funds, money, documents and papers relating to
the Mortgage Loans. The errors and omissions insurance shall be in the form of the Mortgage
Banker’s Blanket Bond and shall protect and insure the Servicer against losses, including forgery,
theft, embezzlement and omissions and negligent acts of such Persons and shall also protect and
insure the Servicer against losses in connection with the failure to maintain any insurance
policies required pursuant to this Agreement and the release or satisfaction of a Mortgage Loan
without having obtained payment in full of the indebtedness secured thereby. No provision of this
Section 4.10 requiring the errors and omissions insurance

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shall diminish or relieve the Servicer from its duties and obligations as set forth in this
Agreement. The minimum coverage under any such bond and insurance policy shall be at least equal
to the corresponding amounts required by Fannie Mae in the Fannie Mae Sellers’ and Servicers’ Guide
or by Freddie Mac in the Freddie Mac Sellers’ and Servicer’s Guide. Upon request of any Owner, the
Servicer shall cause to be delivered to Owner a copy of the insurance policy and shall use
reasonable efforts to obtain a statement from the surety and the insurer that such insurance policy
shall in no event be terminated or materially modified without thirty (30) days prior written
notice to Owner.

     Section 4.11 Title Management and Disposition of REO Property.

     The Servicer shall either itself or through an agent selected by the Servicer, manage,
conserve, protect and operate each REO Property (and may temporarily rent the same) in the same
manner that it manages, conserves, protects and operates other foreclosed property for its own
account, and in the same manner that similar property in the same locality as the REO Property is
managed. The Servicer shall cause each REO Property to be inspected promptly upon the acquisition
of title thereto and shall cause each REO Property to be inspected at least annually thereafter.
The Servicer shall use reasonable efforts to dispose of the REO Property in a commercially
reasonable manner as soon as possible. If Owner has notified the Servicer in writing that an REO
Property is held as part of a REMIC, the Servicer will make reasonable efforts to sell such REO
Property within the time necessary to preserve such REMIC status as advised by Owner in the notice
thereof.

     If title to any Mortgaged Property is acquired in foreclosure or by deed in lieu of
foreclosure (each, an “REO Property”), the deed or certificate of sale shall be taken in the name
of the Owner or the Person (which may be the Servicer for the benefit of the Owner) designated by
the Owner, or in the event the Owner notifies the Servicer that the Owner or such Person is not
authorized or permitted to hold title to real property in the state where the REO Property is
located, or would be adversely affected under the “doing business” or tax laws of such state by so
holding title, the deed or certificate of sale shall be taken in the name of such Person or Persons
as shall be consistent with an opinion of counsel obtained by the Owner from an attorney duly
licensed to practice law in the state where the REO Property is located. The Servicer (acting
alone or through a subservicer), on behalf of the Owner, shall provide for the maintenance and
disposal of REO on behalf of the Owner as outlined under section 6 of the collection manual of
Servicer.

     The Servicer shall deposit and hold all revenues and funds collected and received in
connection with the operation of each REO Property in the Custodial Account, and the Servicer shall
account separately for revenues and funds received or expended with respect to each REO Property.

     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 servicing standards set forth in Section 4.01. In connection therewith,
the Servicer shall deposit or cause to be deposited on a daily basis in the Custodial Account all
revenues and collections received or collected by it with respect to each REO Property, including
all proceeds of any REO Disposition. The Servicer shall withdraw

14

 

(without duplication) from the Custodial Account, but solely from the revenues and collections
received or collected by it with respect to a specific REO Property, such funds necessary for the
proper operation, management and maintenance of such REO Property, including the following:

	 	(a)	 	all insurance premiums due and payable in respect of such REO Property;
	 
	 	(b)	 	all real estate taxes and assessments in respect of such REO Property that may
result in the imposition of a lien thereon;
	 
	 	(c)	 	all customary and reasonable costs and expenses necessary to maintain, repair,
appraise, evaluate, manage or operate such REO Property (including the customary and
reasonable costs incurred by any “managing agent” retained by the Servicer in
connection with the maintenance, management or operation of such REO Property);
	 
	 	(d)	 	all reasonable costs and expenses of restoration improvements, deferred
maintenance and tenant improvements; and
	 
	 	(e)	 	all other reasonable costs and expenses, including reasonable attorneys’ fees,
that the Servicer may suffer or incur in connection with its performance of its
obligations under this Section (other than costs and expenses that the Servicer is
expressly obligated to bear pursuant to this Agreement).

     To the extent that amounts on deposit in the Custodial Account are insufficient for the
purposes set forth in clauses (1) through (5) above, the Servicer shall, subject to Section 6.03,
advance the amount of funds required to cover the shortfall with respect thereto. The Servicer
shall promptly notify the Owner in writing of any failure by the Servicer to make a Servicing
Advance of the type specified in clauses (1) or (2) above (irrespective of whether such Servicing
Advance is claimed to be non-recoverable by the Servicer pursuant to Section 6.03).

     The Servicer shall notify Owner of its receipt of a bona fide offer for any REO Property.
Following the consummation of an REO Disposition, the Servicer shall remit to the Owner, in
accordance with Section 6.01, any proceeds from such REO Disposition in the Custodial Account
following the payment of all expenses and Servicing Advances relating to the subject REO Property.

     Section 4.12 Adjustments to Mortgage Interest Rates.

     The Servicer shall make interest rate adjustments and payment amount adjustments for each
Adjustable Rate Mortgage Loan in accordance with the terms of the related Mortgage Note and will
deliver to the related Mortgagor written notice of such adjustments in accordance with the terms of
such Mortgage Note and the requirements of applicable law.

     Section 4.13 Subservicing Agreements Between the Servicer and Subservicers.

     (a) Subject to Section 13.06, the Servicer may enter into Subservicing Agreements with
Subservicers for the servicing and administration of the Mortgage Loans. The terms of any
Subservicing Agreement shall not be inconsistent with any of the provisions of this Agreement.

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Each Subservicer shall be (i) authorized to transact business in the state or states in which
the Mortgaged Properties related to the Mortgage Loans such Subservicer is to service are situated,
if and to the extent required by applicable law to enable the Subservicer to perform its
obligations hereunder and under the Subservicing Agreement, and (ii) a Freddie Mac- or Fannie
Mae-approved mortgage servicer. Each Subservicing Agreement must impose on the Subservicer
requirements conforming to the provisions set forth in Section 4.17 and provide for servicing of
the Mortgage Loans consistent with the terms of this Agreement.

     (b) As part of its servicing activities hereunder, the Servicer, for the benefit of Owner,
shall enforce the obligations of each Subservicer under the related Subservicing Agreement,
including, without limitation, any obligation to make advances in respect of delinquent payments as
required by a Subservicing Agreement. Such enforcement, including without limitation, the legal
prosecution of claims, termination of Subservicing Agreements, and the pursuit of other appropriate
remedies, shall be in such form and carried out to such an extent and at such time as the Servicer,
in its good faith business judgment, would require were it the owner of the related Mortgage Loans.
The Servicer shall pay the costs of such enforcement, to the extent, if any, that such recovery
(i) exceeds all amounts due in respect of the related Mortgage Loans, or (ii) is from a specific
recovery of costs, expenses or attorneys’ fees against the party against whom such enforcement is
directed.

     Section 4.14 Successor Subservicers.

     The Servicer shall be entitled to terminate any Subservicing Agreement and the rights and
obligations of any Subservicer pursuant to any Subservicing Agreement in accordance with the terms
and conditions of such Subservicing Agreement. In the event of termination of any Subservicer, the
Servicer either shall directly service the related Mortgage Loans or shall enter into a
Subservicing Agreement with a successor Subservicer which qualifies under Section 4.13.

     Section 4.15 Liability of the Servicer.

     Notwithstanding any Subservicing Agreement, any of the provisions of this Agreement relating
to agreements or arrangements between the Servicer and a Subservicer or reference to actions taken
through a Subservicer or otherwise, the Servicer shall remain obligated and primarily liable to
Owner for the servicing and administering of the Mortgage Loans in accordance with the provisions
of Section 4.01 without diminution of such obligation or liability by virtue of such Subservicing
Agreements or arrangements or by virtue of indemnification from the Subservicer 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 Subservicer for indemnification of the Servicer by such Subservicer and nothing contained in this
Agreement shall be deemed to limit or modify such indemnification.

     Section 4.16 Assumption or Termination of Subservicing Agreements.

     In the event that Morgan Stanley Credit Corporation, or its successors (collectively, “MSCC”)
shall for any reason cease to be the servicer of the Mortgage Loans under this Agreement, Owner or
its designee may, if MSCC does not terminate any Subservicing

16

 

Agreement in accordance with its terms, thereupon assume all of the rights and obligations of
MSCC under such Subservicing Agreement. Upon such assumption, Owner or its designee shall be
deemed to have assumed all of MSCC’s interest therein and to have replaced MSCC as a party to each
Subservicing Agreement to the same extent as if the Subservicing Agreements had been assigned to
the assuming party, except that MSCC shall not thereby be relieved of any liability or obligations
under the Subservicing Agreements and MSCC shall continue to be entitled to any rights or benefits,
in each case, which arose prior to its termination as servicer.

     The Servicer at its expense shall, upon the request of Owner, deliver to the assuming party
all documents and records relating to each Subservicing Agreement and the Mortgage Loans then being
serviced and an accounting of amounts collected and held by it and otherwise use reasonable efforts
to effect the orderly and efficient transfer of the Subservicing Agreements to the assuming party.

     Section 4.17 Servicing Accounts.

     In those cases where a Subservicer is servicing a Mortgage Loan pursuant to a Subservicing
Agreement, the Subservicer shall be required to establish and maintain a Subservicing Account which
shall be an Eligible Account. The Subservicer shall be required to deposit into the Subservicing
Account not later than the first Business Day after receipt all proceeds of Mortgage Loans received
by the Subservicer, less its subservicing compensation to the extent permitted by the Subservicing
Agreement, and to remit such proceeds to the Servicer for deposit in the Custodial Account not
later than the tenth day of each month, or if such tenth day is not a Business Day, the immediately
succeeding Business Day. For purposes of this Agreement, the Servicer shall be deemed to have
received payments on the Mortgage Loans when the Subservicer has received such payments pursuant to
the Subservicing Agreement.

     Section 4.18 Permitted Investments.

     The Servicer may invest the funds in the Custodial Account in Permitted Investments, each of
which shall mature not later than the Business Day immediately preceding the Remittance Date next
following the date of such investment (except that if such Permitted Investment is an obligation of
the institution that maintains such account, then such Permitted Investment shall mature not later
than such Remittance Date) and shall not be sold or disposed of prior to its maturity. All such
Permitted Investments shall be registered in the name of the Servicer or its nominee, and held in
trust for Owner. All income and gain realized from any such investment as well as any interest
earned on deposit in the Custodial Account shall be for the benefit of the Servicer, and shall be
withdrawn by the Servicer on the related Remittance Date. The Servicer shall deposit in the
Custodial Account (with respect to investments made hereunder of funds held therein) an amount
equal to the amount of any loss incurred in respect of any such investment immediately upon
realization of such loss without right of reimbursement.

     Section 4.19 Payment of Taxes, Insurance and Other Charges; Maintenance of Primary
Mortgage Insurance Policies;

                           
Collections Thereunder.

     With respect to each Mortgage Loan, the Servicer shall maintain accurate records reflecting
the status of ground rents, taxes, assessments, water rates and other charges which are

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or may become a lien upon the Mortgaged Property and the status of Primary Mortgage Insurance
Policy premiums and fire and hazard insurance coverage and shall obtain, from time to time, all
bills for the payment of such charges, including renewal premiums, and shall effect payment thereof
prior to the applicable penalty or termination date and at a time appropriate for securing maximum
discounts allowable, employing for such purpose deposits of the Mortgagor in the Escrow Account
which shall have been estimated and accumulated by the Servicer in amounts sufficient for such
purposes, as allowed under the terms of the Mortgage and applicable law. If a Mortgage does not
provide for Escrow Payments, then the Servicer shall require that any such payments be made by the
Mortgagor at the time they first become due. The Servicer assumes full responsibility for the
timely payment of all such bills and shall effect timely payments of all such bills irrespective of
the Mortgagor’s faithful performance in the payment of same or the making of the Escrow Payments
and shall make advances from its own funds to effect such payments but shall be entitled to
reimbursement thereof in accordance with the terms of this Agreement.

     The Servicer shall maintain in full force and effect a Primary Mortgage Insurance Policy, with
respect to each Mortgage Loan for which such coverage is required. Such coverage will be
maintained until the Loan-to-Value Ratio of the related Mortgage Loan is reduced to 75% or less in
the case of a Mortgage Loan having a Loan-to-Value Ratio at origination in excess of 80% or until
such time, if any, as such insurance is required to be released in accordance with the provisions
of applicable law including, but not limited to, the Homeowners Protection Act of 1998. The
Servicer shall assure that all premiums due under any Primary Mortgage Insurance Policy are paid in
a timely manner, but, shall be entitled to reimbursement pursuant to the terms of this Agreement
for premiums paid by the Servicer on behalf of any Mortgagor who is obligated to pay such premiums
but fails to do so. The Servicer shall not cancel or refuse to renew any Primary Mortgage
Insurance Policy in effect on the Funding Date that is required to be kept in force under this
Agreement unless a replacement Primary Mortgage Insurance Policy for such canceled or nonrenewed
policy is obtained from and maintained with an insurer. The Servicer shall not take any action
which would result in noncoverage under any applicable Primary Mortgage Insurance Policy of any
loss which, but for the actions of the Servicer, would have been covered thereunder.

     In connection with its activities as servicer, the Servicer agrees to prepare and present, on
behalf of itself and the Owner, claims to the insurer under any Primary Mortgage Insurance Policy
in a timely fashion in accordance with the terms of such policies and, in this regard, to take such
action as shall be necessary to permit recovery under any Primary Mortgage Insurance Policy
respecting a defaulted Mortgage Loan. Pursuant to Section 4.04, any amounts collected by the
Servicer under any Primary Mortgage Insurance Policy shall be deposited in the Collection Account.

     Section 4.20 Maintenance of Hazard Insurance.

     The Servicer shall cause to be maintained for each Mortgage Loan fire and hazard insurance
with extended coverage as is customary in the area where the Mortgaged Property is located in an
amount that is at least equal to the lesser of (a) the maximum insurable value of the improvements
securing such Mortgage Loan and (b) the greater of (1) the Unpaid Principal

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Balance of such Mortgage Loan or (2) an amount such that the proceeds thereof shall be
sufficient to prevent the Mortgagor and/or the loss payee from becoming a co insurer.

     If any Mortgaged Property is in an area identified by the Federal Emergency Management Agency
as having special flood hazards and such flood insurance has been made available, then the Servicer
will cause to be maintained a flood insurance policy meeting the requirements of the current
guidelines of the Federal Insurance Administration with a generally acceptable insurance carrier,
in an amount representing coverage not less than the lesser of (a) the minimum amount required,
under the terms of coverage, to compensate for any damage or loss on a replacement cost basis (or
the outstanding principal balance of the related Mortgage Loan if replacement cost coverage is not
available for the type of building insured) or (b) the maximum amount of insurance which is
available under the Flood Disaster Protection Act of 1973, as amended (assuming that the area in
which such Mortgaged Property is located is participating in such program).

     The Servicer shall also maintain on each REO Property fire, hazard and liability insurance,
and to the extent required and available under the Flood Disaster Protection Act of 1973, as
amended, flood insurance with extended coverage in an amount which is at least equal to the lesser
of (a) the maximum insurable value of the improvements which are a part of such property and (b)
the outstanding principal balance of the related Mortgage Loan at the time it became an REO
Property plus accrued interest at the Mortgage Interest Rate and related Servicing Advances.

ARTICLE V

ADMINISTRATION AND SERVICING OF TRADING ACCOUNTS

     Section 5.01 The Servicer to Service Trading Accounts. 

     (a) The Servicer represents and warrants that it will service and administer the Trading
Accounts, in accordance with the terms of (i) the procedures it employs to administer Trading
Accounts for its own benefit (as the same may be amended from time to time) and (ii) the related
Additional Collateral Pledge Agreement.

     (b) The Servicer shall be released from its obligations to administer the Trading Accounts as
applicable upon termination of the related Additional Collateral Pledge Agreement.

     (c) The Servicer may, without consent of Owner, amend or modify a Additional Collateral Pledge
Agreement in any non-material respect to reflect administrative or account changes.

     (d) Notwithstanding anything to the contrary in this Agreement (including without limitation
the termination of the Servicing rights and/or obligations of the Servicer under Article XI of this
Agreement), the Servicer shall service and administer each Trading Account, each Additional
Collateral Pledge Agreement and each Additional Collateral Mortgage Loan, in accordance with the
terms of this Agreement and each Additional Collateral Pledge Agreement; it being understood and
agreed that only the Servicer shall service and administer the related

19

 

securities accounts, lines of credit, mortgages, and guarantors with respect to Additional
Collateral Pledge Agreement.

     (e) Notwithstanding Section 4.04, when the Collateral Base for any Additional Collateral
Mortgage Loan is less than the Loan Amount for such Additional Collateral Mortgage Loan, the
Servicer shall cause cash received upon exercise of foreclosure rights under the related Additional
Collateral Pledge Agreement, if it has not been previously applied to reduce the principal balance
of such Additional Collateral Mortgage Loan, to be deposited into the Custodial Account.

     (f) The Servicer shall use its reasonable efforts to realize upon any Additional Collateral
for such of the Additional Collateral Mortgage Loans as come into and continue in default and as to
which no satisfactory arrangements can be made for collection of delinquent payments; provided that
the Servicer shall not obtain title to any such Additional Collateral as a result of or in lieu of
the disposition thereof or otherwise; and provided further that (i) the Servicer shall not proceed
with respect to such Additional Collateral in any manner that would impair the ability to recover
against the related Mortgaged Property, and (ii) the Servicer shall proceed with any acquisition of
REO Property in a manner that preserves the ability to apply the proceeds of such Additional
Collateral against amounts owed under the defaulted Mortgage Loan. Any proceeds realized from such
Additional Collateral (other than amounts to be released to the Mortgagor or the related guarantor
in accordance with 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 and to the
terms and conditions of any security agreement, guarantee agreement, mortgage or other agreement
governing the disposition of the proceeds of such Additional Collateral) shall be deposited in the
Custodial Account, subject to withdrawal pursuant to Section 4.05 of this Agreement.

     Section 5.02 Agreements with Respect to the Surety Bond. 

     (a) The Servicer represents and warrants to Owner that the Additional Collateral Mortgage
Loans are insured under the terms and provisions of the Surety Bond, subject to the limitations set
forth therein. Owner acknowledges receipt from the Surety Bond Issuer of a certificate confirming
the insurance of the Additional Collateral Mortgage Loans pursuant to the terms and provisions of
the Surety Bond.

     (b) Owner and the Servicer agree that the Surety Bond Issuer is a third party beneficiary in
respect of the Servicer’s obligations under this Article V.

     (c) With respect to the sale or potential sale of the Additional Collateral Mortgage Loans,
Owner shall not use, circulate, quote or otherwise refer to the Surety Bond Issuer or the Surety
Bond for any purpose, including but not limited to, the registration, purchase and sale of
securities, nor file the Surety Bond with, or refer to it or to the Surety Bond Issuer, as part of
any registration statement or offering document, without the express prior written consent of the
Surety Bond Issuer as to both form and substance of such disclosure.

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ARTICLE VI

PAYMENTS TO OWNER

     Section 6.01 Distributions.

     On each Remittance Date with respect to each Mortgage Loan, subject to Section 6.03(c), the
Servicer shall distribute to Owner (i) all amounts due on the Due Date immediately preceding the
related Remittance Date (which shall include all scheduled interest and principal), net of charges
against or withdrawals from the Custodial Account pursuant to clauses (ii) through (vi) of Section
4.05, plus any principal prepayments received during the related Principal Prepayment Period, minus
(iii) any amounts attributable to Monthly Payments collected as to such Mortgage Loans but due on a
Due Date or Due Dates subsequent to the current Remittance Date.

     Subject to Section 6.03(c), all distributions made to Owner on each Remittance Date will be
made to Owner of record on the preceding Record Date, and shall be based on the Mortgage Loans
owned and held by Owner, and shall be made by wire transfer of immediately available funds to the
account of Owner at a bank or other entity having appropriate facilities therefor, or if Owner
shall have so notified the Servicer, by check mailed to the address of Owner as provided for in
Section 12.06.

     With respect to any remittance received by Owner on or after the second Business Day following
the Business Day on which such payment was due, the Servicer shall pay to Owner interest on any
such late payment at an annual rate equal to the rate of interest as is publicly announced from
time to time at its principal office by Chase Manhattan Bank, N. A., New York, New York, as its
“prime” lending rate (which is not necessarily its lowest rate) (or if Chase Manhattan Bank, N.A.
shall cease to exist or to announce such rate, then such rate shall be a reasonably comparable rate
determined by Servicer in its reasonable discretion), adjusted as of the date of each change, plus
one (1) percentage point, but in no event greater than the maximum amount permitted by applicable
law. Such interest shall be paid by the Servicer to Owner on the date such late payment is made
and shall cover the period commencing with the day following such second Business Day and ending
with the Business Day on which such payment is made, both inclusive. Such interest shall be
remitted along with such late payment. The payment by the Servicer of any such interest shall not
be deemed an extension of time for Payment or a waiver of any Event of Default by the Servicer.

     Section 6.02 Statements to Owner.

     Not later than the tenth (10th) day of each month, the Servicer will furnish to Owner a
monthly remittance report in a format substantially similar to Exhibit B hereto, which monthly
remittance report will be generated as of the expiration of the preceding month.

     The Servicer shall provide Owner with such information concerning the Mortgage Loans as is
necessary for Owner to prepare its federal income tax return as Owner may reasonably request from
time to time.

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     Section 6.03 Monthly Advances by the Servicer.

     (a) With respect to each Mortgage Loan and subject to Section 6.03(c), on each Remittance Date
the Servicer shall, pursuant to Section 6.01, remit to Owner the total of all scheduled Monthly
Payments due on the preceding Due Date whether or not such Monthly Payments were collected from the
Mortgagor. Any amounts which are due but uncollected shall, subject to subsection (c) below, be
funded only by using excess cash collections, if any, on deposit in the Custodial Account.

     (b) If the collections on deposit in the Custodial Account on the Remittance Date are less
than the amount of the required monthly remittance, the Servicer shall, subject to subsection (c)
below, make a Monthly Advance by depositing to the Custodial Account enough of its own funds to
make the total on deposit equal the full amount of the remittance due Owner. The Servicer may
reimburse itself for its advances from collections from Mortgagors that are subsequently deposited
into the Custodial Account to the extent provided in Section 4.05.

     (c) If the Servicer determines, in its reasonable judgment, that any uncollected payment due
from a Mortgagor that is due to be paid to Owner pursuant to Section 6.01 would not be recoverable
from Liquidation Proceeds or other payments or recoveries (including Insurance Proceeds or
Condemnation Proceeds) on the related Mortgage Loan, then the Servicer will ensure that the amount
considered to be non-recoverable will not be funded from excess collections or advanced by the
Servicer, and will therefore not be remitted to Owner until the earlier to occur of (a) the
purchase of the Mortgage Loan by the Servicer, if applicable, or (b) the acquisition or disposition
of title to the related Mortgaged Property through foreclosure or otherwise, and then in each case
shall only be paid to the extent of such repurchase price or recovery.

     (d) The Servicer’s obligations to make Monthly Advances as to any Mortgage Loan pursuant to
Section 6.03(a) and (b) will continue through the last Monthly Payment due prior to the payment in
full of the Mortgage Loan, or through the Remittance Date for the remittance of all Liquidation
Proceeds or other payments or recoveries (including Insurance Proceeds or Condemnation Proceeds)
with respect to the related Mortgage Loan or the related REO Property, subject to Section 6.03(c).
With respect to any Mortgage Loans determined to be unrecoverable and whose Monthly Payments are
omitted from the scheduled monthly remittance, the Servicer shall deliver an Officer’s Certificate
to Owner setting forth the basis of such determination.

     Section 6.04 Compensating Interest.

     Not later than the close of business on the Business Day preceding each Remittance Date, the
Servicer shall from its own funds deposit in the Custodial Account an amount equal to the lesser of
(i) the aggregate of the Prepayment Interest Shortfalls, if any, that exist in respect of the
related Principal Prepayment Period and (ii) the aggregate of the Servicing Fees for the most
recently ended calendar month.

     If for any reason the Servicer fails to process any principal prepayment on a timely basis in
accordance with Section 4.04(i), the Servicer shall from its own funds deposit in the Custodial
Account, interest at the Mortgage Interest Rate on the principal prepayment for the period the
deposit into the Custodial Account was delayed.

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ARTICLE VII

GENERAL SERVICING PROCEDURE

     Section 7.01 Assumption Agreements.

     If the Servicer acquires actual knowledge that a Mortgagor has transferred or proposes to
transfer the related Mortgaged Property, the Servicer shall enforce any related “due-on-sale”
clause consistent with its practices for mortgage loans it services for its own account. If the
Servicer elects not to enforce such due-on-sale clause, the Servicer may enter into an assumption
agreement with the party to whom such Mortgaged Property is to be or has been conveyed. If any
assumption fee is collected by the Servicer for entering into an assumption agreement, the Servicer
shall be entitled to retain a portion of such fee up to an amount equal to 1% of the outstanding
principal balance of the related Mortgage Loan as additional servicing compensation, and shall
deposit into the Custodial Account any portion thereof that exceeds 1% of such outstanding
principal balance.

     Section 7.02 Satisfaction of Mortgages and Release of Mortgage Files.

     Upon the payment in full of any Mortgage Loan and deposit of such payment by Servicer into the
Custodial Account pursuant to Section 4.04, the Servicer shall execute any document necessary to
satisfy the Mortgage Loan and request delivery to it of the portion of the Mortgage File held by
Owner or the Custodian. Upon receipt of such request, the related mortgage documents shall be
released to the Servicer within seventy-two (72) hours and the Servicer shall prepare and process
any satisfaction or release. No expense incurred in connection with any instrument of satisfaction
or deed of reconveyance shall be chargeable to the Custodial Account or Owner.

     To the extent that Owner acts as its own custodian, from time to time and as appropriate for
the servicing or foreclosure of the Mortgage Loan, including for this purpose collection under any
Primary Mortgage Insurance Policy, Owner shall, upon request of the Servicer and delivery to Owner
of a servicing receipt signed by a Servicing Officer, release the requested portion of the Mortgage
File held by Owner to the Servicer. Owner shall promptly deliver the request to return the related
Mortgage documents to the Custodian. The Servicer shall return the Mortgage documents to Owner 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 into the Custodial
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. Upon receipt of a certificate of a Servicing Officer stating that such Mortgage
Loan was liquidated, the servicing receipt shall be released by Owner to the Servicer.

     Section 7.03 Servicing Compensation.

     In addition to any other fees to which Servicer is entitled hereunder, as compensation for its
services hereunder, the Servicer shall be entitled to a Servicing Fee payable with respect to

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each Mortgage Loan. As to each Mortgage Loan, the Servicing Fee shall (i) be payable monthly
from payment of interest on such Mortgage Loan prior to the deposit of such payments into the
Custodial Account, (ii) accrue at the applicable Servicing Fee Rate, and (iii) be computed on the
basis of the same principal amount and for the same period respecting which such interest payment
was computed. The Servicer shall be entitled to recover accrued but unpaid Servicing Fees in
respect of any Mortgage Loan to the extent permitted by Section 4.05. The Servicer’s right to the
Servicing Fee shall not be transferred in whole or in part except in connection with the transfer
of all the Servicer’s obligations under this Agreement. Servicing compensation in addition to the
Servicing Fee, in the form of assumption fees as provided in Section 7.01, interest paid on funds
deposited in the Escrow Account to the extent permitted by Section 4.06, default interest in excess
of the Mortgage Interest Rate and late payment charges and other ancillary fees, in each case to
the extent collected, shall be retained by the Servicer and shall not be required to be deposited
into the Custodial Account. The Servicer shall be required to pay all expenses incurred by it in
connection with its servicing activities hereunder and shall not be entitled to reimbursement
therefor except as specifically provided for herein.

     Section 7.04 Annual Statement as to Compliance and Attestation. 

     (a) Unless an Annual Statement as to Compliance is delivered as provided in Section 13.04, the
Servicer will deliver to Owner on or before April 1 of each year, beginning with April 1 of the
calendar year after the year in which the first Closing Date occurs, an Officer’s Certificate
stating that (i) a review of the activities of the Servicer during the preceding calendar year and
of performance under this Agreement has been made under such officer’s supervision, and (ii) to
such officer’s knowledge, based on such review, the Servicer has fulfilled all of its material
obligations under this Agreement throughout such year in all material respects, 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.

     (b) Unless a Report on Assessment of Compliance and Attestation is delivered as provided in
Section 13.05, on or before April 1 of each year, beginning with April 1 of the calendar year after
the year in which the first Closing Date occurs, the Servicer at its expense shall cause a firm of
independent certified public accountants (which may also render other services to the Servicer) to
furnish a report to Owner to the effect that certain mortgage loans serviced by the Servicer were
included in the total population of Mortgage Loans subject to selection for testing in such firm’s
examination of certain documents and records, that such examination was conducted substantially in
compliance with the Uniform Single Attestation Program for Mortgage Bankers and that such
examination disclosed no items of material noncompliance with the provisions of the Uniform Single
Attestation Program for Mortgage Bankers, except for such items of noncompliance as shall be set
forth in such report.

     Section 7.05 Owner’s Right to Examine the Servicer Records .

     Owner shall have the right to examine and audit upon reasonable prior written notice, during
business hours or at such other times as might be reasonable under applicable circumstances, any
and all of the books, records, documentation or other information of the Servicer, or held by
another for the Servicer or on its behalf or otherwise, which may be relevant

24

 

to the performance or observance by the Servicer of the terms, covenants or conditions of this
Agreement.

     The Servicer shall provide to Owner and any supervisory agents or examiners which may relate
to Owner access to any documentation regarding the Mortgage Loans which may be required by all
applicable regulations. Such access shall be afforded without charge, upon reasonable request,
during normal business hours and at the offices of the Servicer.

     Neither Owner nor the Servicer shall, nor will they permit any of their respective affiliates,
employees, agents or representatives to, divulge or disclose, directly or indirectly, any
information concerning the Mortgage Loans in violation of any law. Neither party shall, nor shall
they permit any of their respective affiliates, employees, agents or representatives to, divulge or
disclose, directly or indirectly, any information concerning the business practices of the other
party to this Agreement. This paragraph does not apply to information which is not confidential or
which has been published or otherwise made available to the general public prior to the date of
this Agreement, or information required to be released under law or by or to any regulatory,
administrative or judicial body or agency or the furnishing by either party of information to their
respective affiliates, auditors, or attorneys.

ARTICLE VIII

REPORTS TO BE PREPARED BY SERVICER

     Section 8.01 The Servicer Shall Provide Information as Reasonably Required .

     During the term of this Agreement the Servicer shall furnish any reports, or documentation
that Owner may reasonably request. Reports requested may include reports not specified or otherwise
required by this Agreement, for example, reports with respect to REO Properties, or reports
required to comply with any regulations regarding any supervisory agents or examiners of Owner.
All reports will be delivered in accordance with Owner’s reasonable instructions and directions.
If the reports or other information requested will require the Servicer to incur additional costs
or expenses outside of its normal servicing procedures, Owner agrees to reimburse the Servicer for
those costs and expenses. The Servicer agrees to execute and deliver all such instruments and take
all such action as Owner, from time to time, may reasonably request in order to effectuate the
purpose and to carry out the terms of this Agreement.

ARTICLE IX

THE SERVICER

     Section 9.01 Indemnification; Third Party Claims.

     (a) Each party hereto agrees to indemnify the other party and hold it harmless against any and
all claims, losses, penalties, fines, forfeitures, legal fees and related costs, judgments, and any
other costs, fees and expenses that the other party may sustain in any way related to the breach of
such party in performing its duties and obligations under this Agreement.

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     (b) The Servicer shall (i) promptly notify Owner if a material claim is made by any party with
respect to this Agreement or the Mortgage Loans, (ii) assume the defense of any such claim and pay
all expenses in connection therewith, including attorneys’ fees, and (iii) promptly pay, discharge
and satisfy any judgment or decree which may be entered against it or Owner in respect of such
claim. The Servicer shall follow any written instructions received from Owner in connection with
such claim. Owner shall promptly reimburse the Servicer for all amounts paid or advanced by it
pursuant to the preceding sentence, except as to amounts as to which the Servicer is required to
indemnify Owner pursuant to Section 3.01.

     Section 9.02 Merger or Consolidation of the Servicer .

     The Servicer will keep in full effect its existence, rights and franchises as a corporation,
and will obtain and preserve its qualification to do business as a foreign corporation in each
jurisdiction in which such qualification is or shall be necessary to protect the validity and
enforceability of this Agreement, or any of the Mortgage Loans and to perform its duties under this
Agreement. Any Person into which the Servicer may be merged or consolidated, or any corporation
resulting from any merger, conversion or consolidation to which the Servicer shall be a party, or
any Person succeeding to the business of the Servicer, shall be the successor of the Servicer
hereunder, without the execution or filing of any paper or any further act on the part of any of
the parties hereto, anything herein to the contrary notwithstanding.

     Section 9.03 Limitation on Liability of the Servicer and Others.

     Neither the Servicer nor any of the officers, employees or agents of the Servicer shall be
under any liability to Owner for any action taken or for refraining from the taking of any action
in good faith pursuant to this Agreement, or for errors in judgment; provided, however, that this
provision shall not protect the Servicer or any such person against any breach of warranties or
representations made herein, or failure to perform its obligations substantially in accordance with
any standard of care set forth in this Agreement, or any liability which would otherwise be imposed
by reason of any breach of the terms and conditions of this Agreement. The Servicer and any
officer, employee or agent of the Servicer may rely in good faith on any document of any kind
appearing to be properly executed and submitted by any Person respecting any matters arising
hereunder. The Servicer shall not be under any obligation to appear in, prosecute or defend any
legal action which is not incidental to its duties to service the Mortgage Loans in accordance with
this Agreement and which in its opinion may involve it in any expenses or liability; provided,
however, that the Servicer may, with the consent of Owner, undertake any such action which it may
deem necessary or desirable in respect to this Agreement and the rights and duties of the parties
hereto. In such event, the legal expenses and costs of such action and any liability resulting
therefrom shall be expenses, costs and liabilities for which Owner will be liable. The Servicer
shall be entitled to be reimbursed therefor from Owner upon written demand.

     Section 9.04 The Servicer Not to Resign.

     Subject to Section 12.04, the Servicer shall not resign from the obligations and duties hereby
imposed on it except (i) by mutual consent of the Servicer and Owner, (ii) upon the determination
that its duties hereunder are no longer permissible under applicable law and such

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incapacity cannot be cured by the Servicer (any such determination permitting the resignation
of the Servicer shall be evidenced by an opinion of counsel to such effect delivered to Owner),
(iii) following any breach of this Agreement by Owner, or (iv) in connection with a sale of
substantially all of the assets of the Servicer. No such resignation shall become effective until
a successor shall have assumed the Servicer’s responsibilities and obligations hereunder in the
manner provided in Section 12.01.

ARTICLE X

DEFAULT

     Section 10.01 Events of Default .

     If one or more of the following “Events of Default” by the Servicer shall occur and be
continuing.

	 	(i)	 	any failure by the Servicer to remit to Owner any payment required to be made
under the terms of this Agreement which continues unremedied for a period (3) Business
Days after the date on which written notice of such failure, requiring the same to be
remedied, shall have been given to the Servicer by Owner; or
	 
	 	(ii)	 	failure on the part of the Servicer duly to observe or perform in any material
respect any other of the covenants or agreements on the part of the Servicer set forth
in this Agreement which continues unremedied for a period of thirty (30) days (except
that such number of days shall be fifteen (15) in the case of a failure to pay any
premium for any insurance policy required to be maintained under this Agreement) after
the date on which written notice of such failure, requiring the same to be remedied,
shall have been given to the Servicer by Owner; or
	 
	 	(iii)	 	a decree or order of a court or agency or supervisory authority having
jurisdiction for the appointment of a conservator receiver or liquidator in any
insolvency, readjustment of debt, marshaling of assets and liabilities or similar
proceedings, or for the winding-up or liquidation of its affairs, shall have been
entered against the Servicer and such decree or order shall have remained in force
undischarged or unstayed for a period of sixty (60) days; or
	 
	 	(iv)	 	the Servicer shall consent to the appointment of a conservator, receiver or
liquidator in any insolvency, readjustment of debt, marshaling of assets and
liabilities or similar proceedings of or relating to the Servicer or of or relating to
all or substantially all of its property; or
	 
	 	(v)	 	the Servicer shall admit in writing its inability to pay its debts generally as
they become due, file a petition to take advantage of any applicable insolvency or
reorganization statute, make an assignment for the benefit of its creditors, or
voluntarily suspend payment of its obligations; or
	 
	 	(vi)	 	the Servicer ceases to be eligible to sell Mortgage Loans to and service
Mortgage Loans for Fannie Mae and Freddie Mac, and continues to be ineligible to sell

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	 	 	 	Mortgage Loans to and service Mortgage Loans for Fannie Mae and Freddie Mac for a
period of sixty (60) days after the date on which written notice of such
ineligibility shall have been given to the Servicer by Fannie Mae and Freddie Mac;

then, and in each and every such case, so long as an Event of Default shall not have been remedied,
Owner, by notice in writing to the Servicer, in addition to whatever rights Owner may have at law
or in equity to damages, including injunctive relief and specific performance, may terminate all
the rights and obligations of the Servicer under this Agreement and in and to the Mortgage Loans
and the proceeds thereof other than, with respect to any Additional Collateral Mortgage Loan, the
obligation to administer the related Additional Collateral Pledge Agreement. On or after the
receipt by the Servicer of such written notice, (i) all authority and power of the Servicer under
this Agreement, whether with respect to the Mortgage Loans or otherwise, shall pass to and be
vested in the successor appointed pursuant to Section 12.01, except with respect to any related
Additional Collateral Pledge Agreement, and (ii) upon further written request from Owner, the
Servicer shall prepare, execute and deliver, any and all documents and other instruments, deliver
to the successor all Mortgage Files, and do or accomplish all other acts or things necessary or
appropriate to effect the purposes of such notice of termination, including the transfer and
endorsement or assignment of the Mortgage Loans and related documents, or otherwise, at the
Servicer’s sole expense. The Servicer agrees to cooperate with Owner and such successor in
effecting the termination of the Servicer’s responsibilities and rights hereunder as provided
above, including, without limitation, the transfer to such successor for administration by it of
all cash amounts which shall at the time be credited by the Servicer to the Custodial Account or
Escrow Account or thereafter received with respect to the Mortgage Loans.

     Section 10.02 Waiver of Defaults .

     Owner may waive any default by the Servicer in the performance of its obligations hereunder
and its consequences. Upon any such waiver of a past default, such default shall cease to exist,
and any Event of Default arising therefrom shall be deemed to have been remedied for every purpose
of this Agreement. No such waiver shall extend to any subsequent or other default or impair any
right consequent thereon except to the extent expressly so waived.

ARTICLE XI

TERMINATION; REPURCHASE

     Section 11.01 Termination .

     The respective obligations and responsibilities of the Servicer shall terminate upon the
latest to occur of: (i) the final payment or other liquidation (or any advance with respect
thereto) of the last Mortgage Loan or the disposition of all REO Property and the remittance of all
funds due hereunder, (ii) the date agreed upon by mutual consent of the Servicer and Owner in
writing, (iii) the repurchase by the Servicer of all of the Mortgage Loans subject to this
Agreement, pursuant to Section 11.02, or (iv) a resignation permitted by Section 9.04 hereof.

     Section 11.02 Repurchase.

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     At the sole option of the Servicer and upon thirty (30) days prior written notice to Owner, if
the aggregate outstanding principal balance of all Mortgage Loans subject to this Agreement which
have not been written off as non-performing assets shall be less than ten percent (10%) of the
aggregate Purchase Price paid for such Mortgage Loans, the Servicer may repurchase all such
outstanding Mortgage Loans; provided, however, that if such Mortgage Loans are included in a REMIC,
the Servicer agrees not to exercise its right to repurchase unless and until such right can be
exercised in conjunction with a “qualified liquidation” (as defined in Section 860F(a)(4) of the
Code) of such REMIC, as advised by Owner. Such repurchase by the Servicer of such Mortgage Loans
and all related REO Property shall be at a price equal to 100% of the outstanding principal balance
of each Mortgage Loan on the day of repurchase, plus accrued and unpaid interest thereon at the
Mortgage Loan Remittance Rate to the first day of the calendar month following repurchase, plus the
appraised value of any such REO Property determined at the expense of the Servicer by an appraiser
mutually agreed upon by the Servicer and Owner.

ARTICLE XII

MISCELLANEOUS PROVISIONS

     Section 12.01 Successor to the Servicer.

     Prior to termination of the Servicer’s responsibilities and duties under this Agreement
pursuant to Sections 9.04, 10.01, 11.01 or 12.04, Owner shall (i) succeed to and assume all of the
Servicer’s responsibilities, rights, duties and obligations under this Agreement, or (ii) appoint a
successor who is a Fannie Mae/Freddie Mac approved servicer having a net worth of not less than
$15,000,000 and which shall succeed to all rights and assume all of the responsibilities, duties
and liabilities of the Servicer under this Agreement prior to the termination of the Servicer’s
responsibilities, duties and liabilities under this Agreement.

     In connection with such appointment and assumption, Owner may make such arrangements for the
compensation of such successor out of payments on Mortgage Loans as it and such successor shall
agree. In the event that the Servicer’s duties, responsibilities and liabilities under this
Agreement should be terminated pursuant to one of the aforementioned Sections, the Servicer shall
discharge such duties and responsibilities during the period from the date it acquires knowledge of
such termination until the effective date thereof with the same degree of diligence and prudence
which it is obligated to exercise under this Agreement, and shall take no action whatsoever that
might materially impair or prejudice the rights or financial condition of its successor. The
resignation or removal of the Servicer pursuant to the aforementioned Sections shall not become
effective until a successor shall be appointed pursuant to this Section and shall in no event
relieve the Servicer of the representations and warranties previously made pursuant to Section 3.01
hereof or Section 5 of the Purchase Agreement and the remedies available to Owner with respect
thereto hereunder and thereunder.

     Any successor appointed as provided in this Section 12.01 shall execute, acknowledge and
deliver to the Servicer and to Owner an instrument accepting such appointment, whereupon such
successor shall become fully vested with all the rights, powers, duties, responsibilities,
obligations and liabilities of the Servicer, with like effect as if originally named as a party to
this Agreement. Any termination or resignation of the Servicer or termination of this Agreement

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pursuant to Section 9.04, 10.01, 11.01, or 12.04 shall not affect any claims that Owner may
have against the Servicer arising prior to any such termination or resignation.

     The Servicer shall in a timely and reasonable manner deliver to the successor the funds in the
Custodial Account and the Escrow Account and the Mortgage Files and related documents and
statements held by it hereunder and the Servicer shall account for all funds. The Servicer shall
execute and deliver such instruments and do such other things all as may reasonably be required to
more fully and definitely vest and confirm in the successor all such rights, powers, duties and
responsibilities of the Servicer. The successor shall make arrangements as it may deem appropriate
to reimburse the Servicer for amounts the Servicer actually expended pursuant to this Agreement
which the Servicer is entitled to retain hereunder and which would otherwise have been reimbursable
to the Servicer pursuant to this Agreement but for the appointment of the successor servicer.

     Section 12.02 Amendment.

     This Agreement may be amended from time to time by the Servicer and Owner only by written
agreement signed by the Servicer and Owner. 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.

     Section 12.03 Assignments.

     Except as required under the Purchase Agreement or by applicable law, the Assignments shall
not be recorded by Seller. The Owner may, at its option and expense (including all recordation
fees), prepare and record any Assignment of Mortgage.

     Section 12.04 Assignment of Servicing Rights .

     The Servicer may assign the servicing rights with respect to the Mortgage Loans upon the
written consent of Owner, which consent shall not be unreasonably withheld or delayed; provided,
however, the Servicer may, without the consent of Owner enter into one or more Subservicing
Agreements relating to the Mortgage Loans; further provided, however that notwithstanding any
subservicing arrangement, the Servicer shall remain liable to Owner for all obligations and
responsibilities set forth in this Agreement.

     Section 12.05 Governing Law.

     This Agreement is to be governed by, and construed in accordance with, the internal laws (as
compared to conflicts of law provisions) of the State of Illinois.

     Section 12.06 Notices.

     Any notices, consents or other communications permitted or required hereunder shall be in
writing and shall be deemed conclusively to have been duly given if personally delivered, sent by
overnight courier, or mailed by registered mail, postage prepaid, and return receipt requested, or
transmitted by telex or telegraph and confirmed by a similar mailed writing, or otherwise

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received, if to Owner, addressed to Owner at One Belvedere Place, Suite 310, Mill Valley,
California 94941, Attention: [ ], fax number [ ], or to such other address as Owner may designate
in writing to the Servicer; if to the Servicer, addressed to the Servicer at at 2500 Lake Cook
Road, Riverwoods, Illinois 60015, Attention: Senior Vice President, fax number [(                    )                     -                    ],
with a copy to Scott de la Vega, Vice President, Morgan Stanley-Law Division, 1585 Broadway, New
York, New York 10036, fax number (646) 290-2606, or to such other address as the Servicer may have
designated in writing to Owner and Guarantor; and, if to Guarantor, addressed to Guarantor at One
Belvedere Place, Suite 300, Mill Valley, California 94941, Attention: [ ], fax number [ ], or to
such other address as Guarantor may designate in writing to the Servicer.

     Section 12.07 Severability Provisions.

     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 be ineffective, in
such jurisdiction, 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.

     Section 12.08 Exhibits.

     The exhibits to this Agreement are hereby incorporated and made a part hereof and are an
integral part of this Agreement.

     Section 12.09 General Interpretive Principles.

     For purposes of this Agreement, except as otherwise expressly provided or unless the context
otherwise requires:

	 	(i)	 	the terms defined in this Agreement have the meanings assigned to them in this
Agreement and include the plural as well as the singular, and the use of any gender
herein shall be deemed to include the other gender;
	 
	 	(ii)	 	accounting terms not otherwise defined herein have the meanings assigned to
them in accordance with generally accepted accounting principles;
	 
	 	(iii)	 	references herein to “Articles,” “Sections,” “Subsections,” “Paragraphs,” and
other subdivisions without reference to a document are designated Articles, Sections,
Subsections, Paragraphs and other subdivisions of this Agreement;
	 
	 	(iv)	 	a reference to a Subsection without further reference to a Section is a
reference to such Subsection as contained in the same Section in which the reference
appears, and this rule shall also apply to Paragraphs and other subdivisions;
	 
	 	(v)	 	(he words “herein,” “hereof,” “hereunder” and other words of similar import
refer to this Agreement as a whole and not to any particular provision; and

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	 	(vi)	 	the terms “include” or “including” shall mean without limitation by reason of
enumeration.

     Section 12.10 Reproduction of Documents .

     This Agreement and all documents relating thereto, including, without limitation, (i)
consents, waivers and modifications which may hereafter be executed, (ii) documents received by any
party at the closing, and (iii) financial statements, certificates and other information previously
or hereafter furnished, may be reproduced by any photographic, photostatic, microfilm, microcard,
miniature photographic or other similar process. The parties agree that any such reproduction
shall be admissible in evidence as the original itself in any judicial or administrative
proceeding, whether or not the original is in existence and whether or not such reproduction was
made by a party in the regular course of business, and that any enlargement, facsimile or further
reproduction of such reproduction shall likewise be admissible in evidence.

     Section 12.11 Successors and Assigns.

     The provisions of this Agreement shall be binding upon and inure to the benefit of the
respective successors and permitted assigns of the parties hereto.

     Section 12.12 Counterparts.

     This Agreement may be executed in several counterparts, each of which shall constitute an
original, but all of which together, shall constitute one instrument notwithstanding that all
parties are not signatories to the same counterparts.

     Section 12.13 Non-Solicitation .

     (a) From and after the Closing Date, the Servicer agrees that it will not take any action or
cause any action to be taken by its agents to solicit the Mortgagor under any Mortgage Loan to
refinance a Mortgage Loan, in whole or in part, without the prior written consent of Owner. It is
understood and agreed that promotions for refinance undertaken by the Servicer or its agents that
are directed to segments of the general public, or to all or segments of the clients of Morgan
Stanley Inc. and its affiliates which may include Mortgagors under any Mortgage Loan, including,
without limitation, directed marketing solicitations, newspaper, radio and television
advertisements, shall not constitute a solicitation under the terms of this Agreement, provided
that no segment shall consist exclusively of such Mortgagors.

     (b) From and after the Closing Date, Owner agrees that it will not take any action or cause
any action to be taken by its agents to solicit the Mortgagor under any Mortgage Loan for any
purpose, or otherwise directly contact any such Mortgagor, without the prior written consent of the
Servicer. It is understood and agreed that promotions undertaken by Owner or its agents that are
directed to segments of the general public, or to all or segments of the clients of Owner or its
affiliates, which may include Mortgagors under any Mortgage Loan, including, without limitation,
directed marketing solicitations, newspaper, radio and television advertisements, shall not
constitute a solicitation under the terms of this Agreement, provided that no segment shall consist
primarily of such Mortgagors.

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     Section 12.14 Guaranty of Owner’s Obligations.

     Guarantor hereby agrees to cause RWT Holdings, Inc. to perform all of its duties and
obligations as Owner hereunder, guaranties the timely performance of such duties and obligations by
RWT Holdings, Inc. and agrees to be jointly and severally liable to Seller for all such duties and
obligations of RWT Holdings, Inc.

ARTICLE XIII

COMPLIANCE WITH REGULATION AB

     Section 13.01 Intent of the Parties; Reasonableness.

     The Owner and the Servicer acknowledge and agree that the purpose of Article XIII of this
Agreement is to facilitate compliance by the Owner and any Depositor with the provisions of
Regulation AB and related rules and regulations of the Commission. Although Regulation AB is
applicable by its terms only to offerings of asset-backed securities that are registered under the
Securities Act, the Servicer acknowledges that investors in privately offered securities may
require that the Owner or any Depositor provide comparable disclosure in unregistered offerings.
References in this Agreement to compliance with Regulation AB include provision of comparable
disclosure in private offerings.

     Neither the Owner nor any Depositor shall exercise its right to request delivery of
information or other performance under these provisions other than in good faith, or for purposes
other than compliance with the Securities Act, the Exchange Act and the rules and regulations of
the Commission thereunder (or the provision in a private offering of disclosure comparable to that
required under the Securities Act). The Servicer acknowledges that interpretations of the
requirements of Regulation AB may change over time, whether due to interpretive guidance provided
by the Commission or its staff, consensus among participants in the asset-backed securities
markets, advice of counsel, or otherwise, and agrees to comply with requests made by the Owner or
any Depositor in good faith for delivery of information under these provisions on the basis of
evolving interpretations of Regulation AB. In connection with any Securitization Transaction, the
Servicer shall cooperate fully with the Owner to deliver to the Owner (including any of its
assignees or designees), any Master Servicer and any Depositor, any and all statements, reports,
certifications, records and any other information necessary in the good faith determination of the
Owner, any Master Servicer or any Depositor to permit the Owner, such Master Servicer or such
Depositor to comply with the provisions of Regulation AB, together with such disclosures relating
to the Servicer, any Subservicer and the Mortgage Loans, or the servicing of the Mortgage Loans,
reasonably believed by the Owner or any Depositor to be necessary in order to effect such
compliance.

     The Owner (including any of its assignees or designees) shall cooperate with the Servicer by
providing timely notice of requests for information under these provisions and by reasonably
limiting such requests to information required, in the Owner’s reasonable judgment, to comply with
Regulation AB.

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     Section 13.02 Additional Representations and Warranties of the Servicer.

     (a) The Servicer hereby represents to the Owner, to any Master Servicer and to any Depositor,
as of the date on which information is first provided to the Owner, any Master Servicer or any
Depositor under Section 13.03 that, except as disclosed in writing to the Owner or such Depositor
prior to such date: (i) the Servicer is not aware and has not received notice that any default,
early amortization or other performance triggering event has occurred as to any other
securitization due to any act or failure to act of the Servicer; (ii) the Servicer has not been
terminated as servicer in a residential mortgage loan securitization, either due to a servicing
default or to application of a servicing performance test or trigger; (iii) no material
noncompliance with the applicable servicing criteria with respect to other securitizations of
residential mortgage loans involving the Servicer has been disclosed or reported by the Servicer;
(iv) no material changes to the Servicer’s policies or procedures with respect to the servicing
function it will perform under this Agreement and any Reconstitution Agreement for mortgage loans
of a type similar to the Mortgage Loans have occurred during the three-year period immediately
preceding the related Securitization Transaction; (v) there are no aspects of the Servicer’s
financial condition that could have a material adverse effect on the performance by the Servicer of
its servicing obligations under this Agreement or any Reconstitution Agreement; (vi) there are no
material legal or governmental proceedings pending (or known to be contemplated) against the
Servicer or any Subservicer; and (vii) there are no affiliations, relationships or transactions
relating to the Servicer or any Subservicer with respect to any Securitization Transaction and any
party thereto identified by the related Depositor of a type described in Item 1119 of Regulation
AB.

     (b) If so requested by the Owner, any Master Servicer or any Depositor on any date following
the date on which information is first provided to the Owner, any Master Servicer or any Depositor
under Section 13.03, the Servicer shall, within five Business Days following such request, confirm
in writing the accuracy of the representations and warranties set forth in paragraph (a) of this
Section or, if any such representation and warranty is not accurate as of the date of such request,
provide reasonably adequate disclosure of the pertinent facts, in writing, to the requesting party.

     Section 13.03 Information to Be Provided by the Servicer.

     In connection with any Securitization Transaction the Servicer shall (i) within five Business
Days following request by the Owner or any Depositor, provide to the Owner and such Depositor (or,
as applicable, cause each Subservicer to provide), in writing and in form and substance reasonably
satisfactory to the Owner and such Depositor, the information and materials specified in paragraphs
(a), (b) and (e) of this Section, and (ii) as promptly as practicable following notice to or
discovery by the Servicer, provide to the Owner and any Depositor (in writing and in form and
substance reasonably satisfactory to the Owner and such Depositor) the information specified in
paragraph (d) of this Section.

     (a) If so requested by the Owner or any Depositor, the Servicer shall provide such information
regarding the Servicer, as servicer of the Mortgage Loans, and each Subservicer (each of the
Servicer and each Subservicer, for purposes of this paragraph, a “Servicer”), as is requested for
the purpose of compliance with Items 1108, 1117 and 1119 of Regulation AB. Such information shall
include, at a minimum:

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          (A) the Servicer’s form of organization;

          (B) a description of how long the Servicer has been servicing residential mortgage loans; a
general discussion of the Servicer’s experience in servicing assets of any type as well as a more
detailed discussion of the Servicer’s experience in, and procedures for, the servicing function it
will perform under this Agreement and any Reconstitution Agreements; information regarding the
size, composition and growth of the Servicer’s portfolio of residential mortgage loans of a type
similar to the Mortgage Loans and information on factors related to the Servicer that may be
material, in the good faith judgment of the Owner or any Depositor, to any analysis of the
servicing of the Mortgage Loans or the related asset-backed securities, as applicable, including,
without limitation:

	 	(i)	 	whether any prior securitizations of mortgage
loans of a type similar to the Mortgage Loans involving the Servicer
have defaulted or experienced an early amortization or other
performance triggering event because of servicing during the three-year
period immediately preceding the related Securitization Transaction;
	 
	 	(ii)	 	the extent of outsourcing the Servicer
utilizes;
	 
	 	(iii)	 	whether there has been previous disclosure of
material noncompliance with the applicable servicing criteria with
respect to other securitizations of residential mortgage loans
involving the Servicer as a servicer during the three-year period
immediately preceding the related Securitization Transaction;
	 
	 	(iv)	 	whether the Servicer has been terminated as
servicer in a residential mortgage loan securitization, either due to a
servicing default or to application of a servicing performance test or
trigger; and
	 
	 	(v)	 	such other information as the Owner or any
Depositor may reasonably request for the purpose of compliance with
Item 1108(b)(2) of Regulation AB;

          (C) a description of any material changes during the three-year period immediately preceding
the related Securitization Transaction to the Servicer’s policies or procedures with respect to the
servicing function it will perform under this Agreement and any Reconstitution Agreements for
mortgage loans of a type similar to the Mortgage Loans;

          (D) information regarding the Servicer’s financial condition, to the extent that there is a
material risk that an adverse financial event or circumstance involving the Servicer could have a
material adverse effect on the performance by the Servicer of its servicing obligations under this
Agreement or any Reconstitution Agreement;

          (E) information regarding advances made by the Servicer on the Mortgage Loans and the
Servicer’s overall servicing portfolio of residential mortgage loans for the three-

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year period immediately preceding the related Securitization Transaction, which may be limited
to a statement by an authorized officer of the Servicer to the effect that the Servicer has made
all advances required to be made on residential mortgage loans serviced by it during such period,
or, if such statement would not be accurate, information regarding the percentage and type of
advances not made as required, and the reasons for such failure to advance;

          (F) a description of the Servicer’s processes and procedures designed to address any special
or unique factors involved in servicing loans of a similar type as the Mortgage Loans;

          (G) a description of the Servicer’s processes for handling delinquencies, losses, bankruptcies
and recoveries, such as through liquidation of mortgaged properties, sale of defaulted mortgage
loans or workouts; and

          (H) information as to how the Servicer defines or determines delinquencies and charge-offs,
including the effect of any grace period, re-aging, restructuring, partial payments considered
current or other practices with respect to delinquency and loss experience.

          (I) a description of any material legal or governmental proceedings pending (or known to be
contemplated) against the Servicer; and

          (J) a description of any affiliation or relationship between the Servicer and any of the
following parties to a Securitization Transaction, as such parties are identified to the Servicer
by the Owner or any Depositor in writing in advance of such Securitization Transaction:

(1) the Sponsor;

(2) the Depositor;

(3) the issuing entity;

(4) any servicer;

(5) any trustee;

(6) any originator;

(7) any significant obligor;

(8) any enhancement or support provider; and

(9) any other material transaction party.

     (b) For the purpose of satisfying the reporting obligations of an Owner, Master Servicer or
Depositor under the Exchange Act with respect to any class of asset-backed securities, the Servicer
shall (or shall cause each Subservicer to) (i) provide prompt notice to the Owner, any Master
Servicer and any Depositor in writing of (A) any material litigation or governmental proceedings
involving the Servicer, any Subservicer, (B) any affiliations or relationships that develop
following the closing date of a Securitization Transaction between the Servicer, any Subservicer
and any of the parties specified in clause (J) of paragraph (a) of this Section (and any other
parties identified in writing by the requesting party) with respect to such Securitization
Transaction, (C) any Event of Default under the terms of this Agreement or any Reconstitution
Agreement, (D) any merger, consolidation or sale of substantially all of the assets of the
Servicer, and (E) the Servicer’s entry into an agreement with a Subservicer to perform or assist in
the performance of any of the Servicer’s obligations under this Agreement or any

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Reconstitution Agreement, and (ii) provide to the Owner and any Depositor a description of
such proceedings, affiliations or relationships.

     (c) As a condition to the succession to the Servicer or any Subservicer as servicer or
subservicer under this Agreement or any Reconstitution Agreement by any Person (i) into which the
Servicer or such Subservicer may be merged or consolidated, or (ii) which may be appointed as a
successor to the Servicer or any Subservicer, the Servicer shall provide to the Owner, any Master
Servicer and any Depositor, at least 15 calendar days prior to the effective date of such
succession or appointment, (x) written notice to the Owner and any Depositor of such succession or
appointment and (y) in writing and in form and substance reasonably satisfactory to the Owner and
such Depositor, all information reasonably requested by the Owner or any Depositor in order to
comply with its reporting obligation under Item 6.02 of Form 8-K with respect to any class of
asset-backed securities.

     (d) In addition to such information as the Servicer, as servicer, is obligated to provide
pursuant to other provisions of this Agreement not later than ten days prior to the deadline for
the filing of any distribution report on Form 10-D in respect of any Securitization Transaction
that includes any of the Mortgage Loans serviced by the Servicer or any Subservicer, the Servicer
or such Subservicer, as applicable, shall, to the extent the Servicer or such Subservicer has
knowledge, provide to the party responsible for filing such report (including, if applicable, the
Master Servicer) notice of the occurrence of any of the following events along with all
information, data, and materials related thereto as may be required to be included in the related
distribution report on Form 10-D (as specified in the provisions of Regulation AB referenced
below):

     (i) any material modifications, extensions or waivers of pool asset terms, fees, penalties or
payments during the distribution period or that have cumulatively become material over time (Item
1121(a)(11) of Regulation AB;

     (ii) material breaches of pool asset representations or warranties or transaction covenants
(Item 1121(a)(12) of Regulation AB; and

     (e) The Servicer shall provide to the Owner, any Master Servicer and any Depositor, evidence
of the authorization of the person signing any certification or statement, copies or other evidence
of Fidelity Bond Insurance and Errors and Omission Insurance policy, financial information and
reports, and such other information related to the Servicer or any Subservicer or the Servicer’s or
such Subservicer’s performance hereunder.

     Section 13.04 Annual Statements as to Compliance.

          On or before March 1 of each calendar year, commencing in 2007, the Servicer shall deliver to
the Owner, any Master Servicer and any Depositor a statement of compliance addressed to the Owner,
such Master Servicer and such Depositor and signed by an authorized officer of the Servicer, to the
effect that (i) a review of the Servicer’s activities during the immediately preceding calendar
year (or applicable portion thereof) and of its performance under this Agreement and any applicable
Reconstitution Agreement during such period has been made under such officer’s supervision, and
(ii) to the best of such officers’ knowledge, based on such

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review, the Servicer has fulfilled all of its obligations under this Agreement and any
applicable Reconstitution Agreement in all material respects throughout such calendar year (or
applicable portion thereof) or, if there has been a failure to fulfill any such obligation in any
material respect, specifically identifying each such failure known to such officer and the nature
and the status thereof.

     Section 13.05 Report on Assessment of Compliance and Attestation.

          On or before March 1 of each calendar year, commencing in 2007, the Servicer shall:

	 	(i)	 	deliver to the Owner, any Master Servicer and
any Depositor a report (in form and substance reasonably satisfactory
to the Owner, such Master Servicer and such Depositor) regarding the
Servicer’s assessment of compliance with the Servicing Criteria during
the immediately preceding calendar year, as required under Rules 13a-18
and 15d-18 of the Exchange Act and Item 1122 of Regulation AB. Such
report shall be addressed to the Owner, such Master Servicer and such
Depositor and signed by an authorized officer of the Servicer, and
shall address each of the Servicing Criteria specified on Exhibit C;
	 
	 	(ii)	 	deliver to the Owner, any Master Servicer and
any Depositor a report of a registered public accounting firm
reasonably acceptable to the Owner, such Master Servicer and such
Depositor that attests to, and reports on, the assessment of compliance
made by the Servicer and delivered pursuant to the preceding paragraph.
Such attestation shall be in accordance with Rules 1-02(a)(3) and
2-02(g) of Regulation S-X under the Securities Act and the Exchange
Act;
	 
	 	(iii)	 	cause each Subservicer, and each Subcontractor
determined by the Servicer pursuant to Section 13.06(b) to be
“participating in the servicing function” within the meaning of Item
1122 of Regulation AB, to deliver to the Owner, any Master Servicer and
any Depositor an assessment of compliance and accountants’ attestation
as and when provided in paragraphs (a) and (b) of this Section; and
	 
	 	(iv)	 	if requested by the Owner, any Master Servicer
or any Depositor, deliver, and cause each Subservicer and Subcontractor
as described in clause (iii) to provide, to the Owner, such Master
Servicer and such Depositor and any other Person that will be
responsible for signing the certification (a “Sarbanes Certification”)
required by Rules 13a-14(d) and 15d-14(d) under the Exchange Act
(pursuant to Section 302 of the Sarbanes-Oxley Act of 2002) on behalf
of an asset-backed issuer with respect to a Securitization Transaction
a certification in the form attached hereto as Exhibit D.

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     The Servicer acknowledges that the parties identified in clause (a)(iv) above may rely on the
certification provided by the Servicer pursuant to such clause in signing a Sarbanes Certification
and filing such with the Commission. Neither the Owner nor any Master Servicer nor any Depositor
will request delivery of a certification under clause (a)(iv) above unless a Depositor is required
under the Exchange Act to file an annual report on Form 10-K with respect to an issuing entity
whose asset pool includes Mortgage Loans.

     Each assessment of compliance provided by a Subservicer pursuant to Section 13.05(a)(i) shall
address each of the Servicing Criteria specified on a certification substantially in the form of
Exhibit C hereto delivered to the Owner concurrently with the execution of this Agreement or, in
the case of a Subservicer subsequently appointed as such, on or prior to the date of such
appointment. An assessment of compliance provided by a Subcontractor pursuant to Section
13.05(a)(iii) need not address any elements of the Servicing Criteria other than those specified by
the Servicer pursuant to Section 13.06.

     Section 13.06 Use of Subservicers and Subcontractors.

     The Servicer shall not hire or otherwise utilize the services of any Subservicer to fulfill
any of the obligations of the Servicer as servicer under this Agreement or any Reconstitution
Agreement unless the Servicer complies with the provisions of paragraph (a) of this Section. The
Servicer shall not hire or otherwise utilize the services of any Subcontractor, and shall not
permit any Subservicer to hire or otherwise utilize the services of any Subcontractor, to fulfill
any of the obligations of the Servicer as servicer under this Agreement or any Reconstitution
Agreement unless the Servicer complies with the provisions of paragraph (b) of this Section.

     (a) It shall not be necessary for the Servicer to seek the consent of the Owner, any Master
Servicer or any Depositor to the utilization of any Subservicer. The Servicer shall cause any
Subservicer used by the Servicer (or by any Subservicer) for the benefit of the Owner and any
Depositor to comply with the provisions of this Section and with Sections 13.02, 13.03(a) and (c),
13.04, 13.05 and 13.07 of this Agreement to the same extent as if such Subservicer were the
Servicer, and to provide the information required with respect to such Subservicer under Section
13.03(d) of this Agreement. The Servicer shall be responsible for obtaining from each Subservicer
and delivering to the Owner and any Depositor any servicer compliance statement required to be
delivered by such Subservicer under Section 13.04, any assessment of compliance and attestation
required to be delivered by such Subservicer under Section 13.05 and any certification required to
be delivered to the Person that will be responsible for signing the Sarbanes Certification under
Section 13.05 as and when required to be delivered.

     (b) It shall not be necessary for the Servicer to seek the consent of the Owner, any Master
Servicer or any Depositor to the utilization of any Subcontractor. The Servicer shall promptly
upon request provide to the Owner and any Depositor (or any designee of the Depositor, such as a
master servicer or administrator) a written description (in form and substance satisfactory to the
Owner and such Depositor) of the role and function of each Subcontractor utilized by the Servicer
or any Subservicer, specifying (i) the identity of each such Subcontractor, (ii) which (if any) of
such Subcontractors are “participating in the servicing function” within the meaning of Item 1122
of Regulation AB, and (iii) which elements of the

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Servicing Criteria will be addressed in assessments of compliance provided by each
Subcontractor identified pursuant to clause (ii) of this paragraph.

     As a condition to the utilization of any Subcontractor determined to be “participating in the
servicing function” within the meaning of Item 1122 of Regulation AB, the Servicer shall cause any
such Subcontractor used by the Servicer (or by any Subservicer) for the benefit of the Owner and
any Depositor to comply with the provisions of Sections 13.05 and 13.07 of this Agreement to the
same extent as if such Subcontractor were the Servicer. The Servicer shall be responsible for
obtaining from each Subcontractor and delivering to the Owner and any Depositor any assessment of
compliance and attestation or other certifications required to be delivered by such Subcontractor
under Section 13.05, in each case as and when required to be delivered.

     Section 13.07 Indemnification; Remedies.

     (a) The Servicer shall indemnify the Owner, each affiliate of the Owner, and each of the
following parties participating in a Securitization Transaction: each Person (including, but not
limited to, any Master Servicer if applicable) responsible for the preparation, execution or filing
of any report required to be filed with Commission with respect to such Securitization Transaction,
or for execution of a certification pursuant to Rule 13a-14d or Rule 15d-14d under the Exchange Act
with respect to such Securitization Transaction, each sponsor and issuing entity; each broker
dealer acting as underwriter, placement agent or initial purchaser, each Person who controls any of
such parties or the Depositor (within the meaning of Section 15 of the Securities Act and Section
20 of the Exchange Act); and the respective present and former directors, officers, employees,
agents and affiliates of each of the foregoing and of the Depositor (each, an “Indemnified Party”),
and shall hold each of them harmless from and against any claims, losses, damages, penalties,
fines, forfeitures, legal fees and expenses and related costs, judgments, and any other costs, fees
and expenses that any of them may sustain arising out of or based upon:

	 	(i)	 	(A)      any untrue statement of a material fact contained or alleged to be
contained in any information, report, certification, data, accountants’ letter or other
material provided under this Article 13 by or on behalf of the Servicer, or provided
under this Article 13 by or on behalf of any Subservicer or Subcontractor
(collectively, the “Servicer Information”), or (B) the omission or alleged omission to
state in the Servicer Information a material fact required to be stated in the Servicer
Information or necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided, by way of
clarification, that clause (B) of this paragraph shall be construed solely by reference
to the Servicer Information and not to any other information communicated in connection
with a sale or purchase of securities, without regard to whether the Servicer
Information or any portion thereof is presented together with or separately from such
other information;
	 
	 	(ii)	 	any breach by the Servicer of its obligations under this Article XIII,
including any failure by the Servicer, any Subservicer or any Subcontractor to deliver
any information, report, certification, accountants’ letter or other material when and
as

40

 

	 	 	 	required under this Article 13, including any failure by the Servicer to identify
pursuant to Section 13.06(b) any Subcontractor “participating in the servicing
function” within the meaning of Item 1122 of Regulation AB;
	 
	 	(iii)	 	any breach by the Servicer of a representation or warranty set forth in
Section 13.02(a) or in a writing furnished pursuant to Section 13.02(b) and made as of
a date prior to the closing date of the related Securitization Transaction, to the
extent that such breach is not cured by such closing date, or any breach by the
Servicer of a representation or warranty in a writing furnished pursuant to Section
13.02(b) to the extent made as of a date subsequent to such closing date; or
	 
	 	(iv)	 	the negligence, bad faith or willful misconduct of the Servicer in connection
with its performance under this Article XIII.

     If the indemnification provided for in this Section is unavailable or insufficient to hold
harmless an Indemnified Party, then the Servicer agrees that it shall contribute to the amount paid
or payable by such Indemnified Party as a result of any claims, losses, damages or liabilities
incurred by such Indemnified Party in such proportion as is appropriate to reflect the relative
fault of such Indemnified Party on the one hand and the Servicer on the other.

     In the case of any failure of performance described in clause (a)(ii) of this Section, the
Servicer shall promptly reimburse the Owner, any Depositor, as applicable, and each Person
responsible for the preparation, execution or filing of any report required to be filed with the
Commission with respect to such Securitization Transaction, or for execution of a certification
pursuant to Rule 13a-14(d) or Rule 15d-14(d) under the Exchange Act with respect to such
Securitization Transaction, for all costs reasonably incurred by each such party in order to obtain
the information, report, certification, accountants’ letter or other material not delivered as
required by the Servicer, any Subservicer or any Subcontractor.

     This indemnification shall survive the termination of this Agreement or the termination of any
party to this Agreement.

     (b)      (i)      Any failure by the Servicer, any Subservicer or any Subcontractor to deliver any
information, report, certification, accountants’ letter or other material when and as required
under this Article 13, or any breach by the Servicer of a representation or warranty set forth in
Section 13.02(a) or in a writing furnished pursuant to Section 13.02(b) and made as of a date prior
to the closing date of the related Securitization Transaction, to the extent that such breach is
not cured by such closing date, or any breach by the Servicer of a representation or warranty in a
writing furnished pursuant to Section 13.02(b) to the extent made as of a date subsequent to such
closing date, shall, except as provided in clause (ii) of this paragraph, immediately and
automatically, without notice or grace period, constitute an Event of Default with respect to the
Servicer under this Agreement and any applicable Reconstitution Agreement, and shall entitle the
Owner or Depositor, as applicable, in its sole discretion to terminate the rights and obligations
of the Servicer as servicer under this Agreement and/or any applicable Reconstitution Agreement
without payment (notwithstanding anything in this Agreement or any applicable Reconstitution
Agreement to the contrary) of any compensation to the Servicer; provided that to the extent that
any provision of this Agreement and/or any applicable

41

 

Reconstitution Agreement expressly provides for the survival of certain rights or obligations
following termination of the Servicer as servicer, such provision shall be given effect.

     (ii) Any failure by the Servicer, any Subservicer or any Subcontractor to deliver any
information, report, certification or accountants’ letter when and as required under Section 13.04
or 13.05, including (except as provided below) any failure by the Servicer to identify pursuant to
Section 13.06(b) any Subcontractor “participating in the servicing function” within the meaning of
Item 1122 of Regulation AB, which continues unremedied for ten calendar days after the date on
which such information, report, certification or accountants’ letter was required to be delivered
shall constitute an Event of Default with respect to the Servicer under this Agreement and any
applicable Reconstitution Agreement, and shall entitle the Owner or Depositor, as applicable, in
its sole discretion to terminate the rights and obligations of the Servicer as servicer under this
Agreement and/or any applicable Reconstitution Agreement without payment (notwithstanding anything
in this Agreement to the contrary) of any compensation to the Servicer (and if the Servicer is
servicing any of the Mortgage Loans in a Securitization Transaction, appoint a successor servicer
reasonably acceptable to any Master Servicer for such Securitization Transactin); provided that to
the extent that any provision of this Agreement and/or any applicable Reconstitution Agreement
expressly provides for the survival of certain rights or obligations following termination of the
Servicer as servicer, such provision shall be given effect.

     Neither the Owner nor any Depositor shall be entitled to terminate the rights and obligations
of the Servicer pursuant to this subparagraph (b)(ii) if a failure of the Servicer to identify a
Subcontractor “participating in the servicing function” within the meaning of Item 1122 of
Regulation AB was attributable solely to the role or functions of such Subcontractor with respect
to mortgage loans other than the Mortgage Loans.

     (iii) The Servicer shall promptly reimburse the Owner (or any designee of the Owner, such as a
master servicer) and any Depositor, as applicable, for all reasonable expenses incurred by the
Owner (or such designee) or such Depositor, as such are incurred, in connection with the
termination of the Servicer as servicer and the transfer of servicing of the Mortgage Loans to a
successor servicer. The provisions of this paragraph shall not limit whatever rights the Owner or
any Depositor may have under other provisions of this Agreement and/or any applicable
Reconstitution Agreement or otherwise, whether in equity or at law, such as an action for damages,
specific performance or injunctive relief.

     Section 13.08 Third Party Beneficiary.

          For purposes of this Article XIII and any related provisions thereto, each Master Servicer
shall be considered a third party beneficiary of this Agreement, entitled to all the rights and
benefits hereof as if it were a party to this Agreement.

42

 

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their respective
officers thereunto duly authorized as of the day and year first set forth above.

	 	 	 	 	 
	 	 	RWT HOLDINGS, INC.
	 
	 	 	 	 
	 

	 	By::	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 	 	MORGAN STANLEY CREDIT CORPORATION
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 	 	REDWOOD TRUST, INC.
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

 

 

EXHIBIT A

FORM OF LIMITED POWER OF ATTORNEY

     KNOW ALL MEN BY THESE PRESENTS that RWT Holdings, Inc. (“Owner”) having its principal place of
business at 591 Redwood Highway, Suite 3140, Mill Valley, California 94941, hereby constitutes and
appoints Morgan Stanley Credit Corporation (“the Servicer”), a Delaware corporation having its
principal place of business at 2500 Lake Cook Road, Riverwoods, Illinois 60015, by and through any
of its Vice Presidents or more senior officers, its true and lawful Attorney-in-Fact, in its name,
place and stead and for its benefit, in connection with all residential mortgage loans serviced by
the Servicer for Owner for the purposes of performing all acts and executing all documents in the
name of Owner necessary and incidental to servicing said loans, including but not limited to:

     (1) Foreclosing delinquent loans or discontinuing such foreclosure proceedings, executing
claims for insurance benefits under private mortgage insurance policies and endorsing related
proceeds checks made payable to Owner;

     (2) Selling, transferring or otherwise disposing of real property acquired through foreclosure
or otherwise, including but not limited to executing all contracts, agreements, deeds, assignments
or other instruments reasonably necessary or advisable to effect such sale, transfer or
disposition, and receiving proceeds and endorsing checks made payable to the order of Owner from
such proceedings;

     (3) Preparing, executing and delivering satisfactions, cancellations, discharges, or full or
partial releases of lien, subordination agreements, modification agreements, assumption agreements,
and substitutions of trustees under deeds of trust;

     (4) Endorsing promissory notes and executing assignments of mortgages, deeds of trust, deeds
to secure debt and other security instruments securing said promissory notes in connection with
loans for which the Servicer has received full payment of all outstanding amounts due; and

     (5) Any and all such other acts of any kind and nature whatsoever that are necessary and
prudent to service the loans.

     Owner further grants to the Servicer full power and authority to do and perform all acts
necessary for the Servicer to carry into effect the power or powers granted by or under this
Limited Power of Attorney as fully as Owner might or could do with the same validity as if all and
every such act had been herein particularly stated, expressed and especially provided for, and
hereby ratifies and confirms all that the Servicer shall lawfully have done, do, or cause to be
done by virtue of the powers and authority and contemplated hereby. This Limited Power of Attorney
shall be effective as of November 1, 2006.

     Third parties without actual notice may rely upon the exercise of the power granted under this
Limited Power of Attorney, and may be satisfied that this Limited Power of Attorney shall continue
in full force and effect until revoked in writing by Owner. Third parties without actual

A-1

 

notice may rely upon a certificate to the effect set forth in the preceding sentence given by
the Servicer.

	 	 	 	 	 	 	 
	ATTEST	 	RWT HOLDINGS, INC.
	 
	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 
	 

	 	Name:
	 	 	 	Name:
	 

	 	Title:
	 	 	 	Title:

	 	 	 	 	 	 	 	 	 
	STATE OF

	 	 	 )	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 )	 	 	ss:	 	 
	COUNTY OF

	 	 	 )	 		 	 	 
	 

	 	 	 	 	 	 	 	 

     On the                     
day of                     ,                     , before me, the undersigne
d, a Notary Public in and for said county
and state, personally appeared                                          and                                        , personally known to
me to be the persons who executed the within instrument as                                          and
                                        , respectively, on behalf of the corporation therein named, and they duly
severally acknowledged that they reside at                                                              and that said
instrument is the act and deed of said corporation, and that they, being authorized to do so,
executed and delivered said instrument and affixed the corporate seal thereto for the purposes
therein contained.

     Witness my hand and official seal:

	 	 	 	 	 	 	 
	 

	 	Notary Public State of	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	My Commission Expires:	 	 	 	 
	 

	 	 	 	 	 	 

A-2

 

EXHIBIT B

FORM OF MONTHLY SERVICER REPORT

B-1

 

EXHIBIT C

SERVICING CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

     The assessment of compliance to be delivered by [Morgan Stanley Credit Corporation]
[Subservicer] shall address, at a minimum, the criteria identified as below as “Applicable
Servicing Criteria”:

	 	 	 	 	 
	 	 	 	 	Applicable
	 	 	Servicing Criteria	 	Servicing Criteria
	Reference 	 	Criteria	 	 
	 

	 	General Servicing Considerations	 	 
	 
	 	 	 	 
	1122(d)(1)(i)

	 	Policies and procedures are
instituted to monitor any
performance or other triggers and
events of default in accordance
with the transaction agreements.
	 	X
	 
	 	 	 	 
	1122(d)(1)(ii)

	 	If any material servicing
activities are outsourced to
third parties, policies and
procedures are instituted to
monitor the third party’s
performance and compliance with
such servicing activities.
	 	X
	 
	 	 	 	 
	1122(d)(1)(iii)

	 	Any requirements in the
transaction agreements to
maintain a back-up servicer for
the mortgage loans are
maintained.	 	 
	 
	 	 	 	 
	1122(d)(1)(iv)

	 	A fidelity bond and errors and
omissions policy is in effect on
the party participating in the
servicing function throughout the
reporting period in the amount of
coverage required by and
otherwise in accordance with the
terms of the transaction
agreements.
	 	X
	 
	 	 	 	 
	 

	 	Cash Collection and Administration	 	 
	 
	 	 	 	 
	1122(d)(2)(i)

	 	Payments on mortgage loans are
deposited into the appropriate
custodial bank accounts and
related bank clearing accounts no
more than two business days
following receipt, or such other
number of days specified in the
transaction agreements.
	 	X
	 
	 	 	 	 
	1122(d)(2)(ii)

	 	Disbursements made via wire
transfer on behalf of an obligor
or to an investor are made only
by authorized personnel.
	 	X

C-1

 

	 	 	 	 	 
	 	 	 	 	Applicable
	 	 	Servicing Criteria	 	Servicing Criteria
	Reference 	 	Criteria	 	 
	 
	 	 	 	 
	1122(d)(2)(iii)

	 	Advances of funds or guarantees
regarding collections, cash flows
or distributions, and any
interest or other fees charged
for such advances, are made,
reviewed and approved as
specified in the transaction
agreements.
	 	X
	 
	 	 	 	 
	1122(d)(2)(iv)

	 	The related accounts for the
transaction, such as cash reserve
accounts or accounts established
as a form of
overcollateralization, are
separately maintained (e.g., with
respect to commingling of cash)
as set forth in the transaction
agreements.
	 	X
	 
	 	 	 	 
	1122(d)(2)(v)

	 	Each custodial account is
maintained at a federally insured
depository institution as set
forth in the transaction
agreements. For purposes of this
criterion, “federally insured
depository institution” with
respect to a foreign financial
institution means a foreign
financial institution that meets
the requirements of Rule
13k-1(b)(1) of the Securities
Exchange Act.
	 	X
	 
	 	 	 	 
	1122(d)(2)(vi)

	 	Unissued checks are safeguarded
so as to prevent unauthorized
access.
	 	X
	 
	 	 	 	 
	1122(d)(2)(vii)

	 	Reconciliations are prepared on a
monthly basis for all
asset-backed securities related
bank accounts, including
custodial accounts and related
bank clearing accounts. These
reconciliations are (A)
mathematically accurate; (B)
prepared within 30 calendar days
after the bank statement cutoff
date, or such other number of
days specified in the transaction
agreements; (C) reviewed and
approved by someone other than
the person who prepared the
reconciliation; and (D) contain
explanations for reconciling
items. These reconciling items
are resolved within 90 calendar
days of their original
identification, or such other
number of days specified in the
transaction agreements.
	 	X
	 
	 	 	 	 
	 

	 	Investor Remittances and Reporting	 	 

C-2

 

	 	 	 	 	 
	 	 	 	 	Applicable
	 	 	Servicing Criteria	 	Servicing Criteria
	Reference 	 	Criteria	 	 
	 
	 	 	 	 
	1122(d)(3)(i)

	 	Reports to investors, including
those to be filed with the
Commission, are maintained in
accordance with the transaction
agreements and applicable
Commission requirements.
Specifically, such reports (A)
are prepared in accordance with
timeframes and other terms set
forth in the transaction
agreements; (B) provide
information calculated in
accordance with the terms
specified in the transaction
agreements; (C) are filed with
the Commission as required by its
rules and regulations; and (D)
agree with investors’ or the
trustee’s records as to the total
unpaid principal balance and
number of mortgage loans serviced
by the Servicer.
	 	X
	 
	 	 	 	 
	1122(d)(3)(ii)

	 	Amounts due to investors are
allocated and remitted in
accordance with timeframes,
distribution priority and other
terms set forth in the
transaction agreements.
	 	X
	 
	 	 	 	 
	1122(d)(3)(iii)

	 	Disbursements made to an investor
are posted within two business
days to the Servicer’s investor
records, or such other number of
days specified in the transaction
agreements.
	 	X
	 
	 	 	 	 
	1122(d)(3)(iv)

	 	Amounts remitted to investors per
the investor reports agree with
cancelled checks, or other form
of payment, or custodial bank
statements.
	 	X
	 
	 	 	 	 
	 

	 	Pool Asset Administration	 	 
	 
	 	 	 	 
	1122(d)(4)(i)

	 	Collateral or security on
mortgage loans is maintained as
required by the transaction
agreements or related mortgage
loan documents.
	 	X
	 
	 	 	 	 
	1122(d)(4)(ii)

	 	Mortgage loan and related
documents are safeguarded as
required by the transaction
agreements
	 	X
	 
	 	 	 	 
	1122(d)(4)(iii)

	 	Any additions, removals or
substitutions to the asset pool
are made, reviewed and approved
in accordance with any conditions
or requirements in the
transaction agreements.
	 	X

C-3

 

	 	 	 	 	 
	 	 	 	 	Applicable
	 	 	Servicing Criteria	 	Servicing Criteria
	Reference 	 	Criteria	 	 
	 
	 	 	 	 
	1122(d)(4)(iv)

	 	Payments on mortgage loans,
including any payoffs, made in
accordance with the related
mortgage loan documents are
posted to the Servicer’s obligor
records maintained no more than
two business days after receipt,
or such other number of days
specified in the transaction
agreements, and allocated to
principal, interest or other
items (e.g., escrow) in
accordance with the related
mortgage loan documents.
	 	X
	 
	 	 	 	 
	1122(d)(4)(v)

	 	The Servicer’s records regarding
the mortgage loans agree with the
Servicer’s records with respect
to an obligor’s unpaid principal
balance.
	 	X
	 
	 	 	 	 
	1122(d)(4)(vi)

	 	Changes with respect to the terms
or status of an obligor’s
mortgage loans (e.g., loan
modifications or re-agings) are
made, reviewed and approved by
authorized personnel in
accordance with the transaction
agreements and related pool asset
documents.
	 	X
	 
	 	 	 	 
	1122(d)(4)(vii)

	 	Loss mitigation or recovery
actions (e.g., forbearance plans,
modifications and deeds in lieu
of foreclosure, foreclosures and
repossessions, as applicable) are
initiated, conducted and
concluded in accordance with the
timeframes or other requirements
established by the transaction
agreements.
	 	X
	 
	 	 	 	 
	1122(d)(4)(viii)

	 	Records documenting collection
efforts are maintained during the
period a mortgage loan is
delinquent in accordance with the
transaction agreements. Such
records are maintained on at
least a monthly basis, or such
other period specified in the
transaction agreements, and
describe the entity’s activities
in monitoring delinquent mortgage
loans including, for example,
phone calls, letters and payment
rescheduling plans in cases where
delinquency is deemed temporary
(e.g., illness or unemployment).
	 	X
	 
	 	 	 	 
	1122(d)(4)(ix)

	 	Adjustments to interest rates or
rates of return for mortgage
loans with variable rates are
computed based on the related
mortgage loan documents.
	 	X

C-4

 

	 	 	 	 	 
	 	 	 	 	Applicable
	 	 	Servicing Criteria	 	Servicing Criteria
	Reference 	 	Criteria	 	 
	 
	 	 	 	 
	1122(d)(4)(x)

	 	Regarding any funds held in trust
for an obligor (such as escrow
accounts): (A) such funds are
analyzed, in accordance with the
obligor’s mortgage loan
documents, on at least an annual
basis, or such other period
specified in the transaction
agreements; (B) interest on such
funds is paid, or credited, to
obligors in accordance with
applicable mortgage loan
documents and state laws; and (C)
such funds are returned to the
obligor within 30 calendar days
of full repayment of the related
mortgage loans, or such other
number of days specified in the
transaction agreements.
	 	X
	 
	 	 	 	 
	1122(d)(4)(xi)

	 	Payments made on behalf of an
obligor (such as tax or insurance
payments) are made on or before
the related penalty or expiration
dates, as indicated on the
appropriate bills or notices for
such payments, provided that such
support has been received by the
servicer at least 30 calendar
days prior to these dates, or
such other number of days
specified in the transaction
agreements.
	 	X
	 
	 	 	 	 
	1122(d)(4)(xii)

	 	Any late payment penalties in
connection with any payment to be
made on behalf of an obligor are
paid from the servicer’s funds
and not charged to the obligor,
unless the late payment was due
to the obligor’s error or
omission.
	 	X
	 
	 	 	 	 
	1122(d)(4)(xiii)

	 	Disbursements made on behalf of
an obligor are posted within two
business days to the obligor’s
records maintained by the
servicer, or such other number of
days specified in the transaction
agreements.
	 	X
	 
	 	 	 	 
	1122(d)(4)(xiv)

	 	Delinquencies, charge-offs and
uncollectible accounts are
recognized and recorded in
accordance with the transaction
agreements.
	 	X
	 
	 	 	 	 
	1122(d)(4)(xv)

	 	Any external enhancement or other
support, identified in Item
1114(a)(1) through (3) or Item
1115 of Regulation AB, is
maintained as set forth in the
transaction agreements.	 	 

C-5

 

	 	 	 
	 

	 	[MORGAN STANLEY CREDIT CORPORATION]
	 

	 	           [SUBSERVICER]
	 

	 	Date:

C-6

 

EXHIBIT D

FORM OF ANNUAL CERTIFICATION

	 	 	Re: The [ ] agreement dated as of [    l, 200[ ] (the “Agreement”), among [IDENTIFY
PARTIES]

     I,                                                             , the      
                                    of [NAME OF SERVICER]
and, in such capacity, the officer in charge of the Servicer’s responsibility on Exhibit D to the
Agreement. I hereby certify to [the Purchaser], [the Depositor], and the [Master Servicer], and
their officers, with the knowledge and intent that they will rely upon this certification, that:

          (A) I have reviewed the servicer compliance statement of the Servicer provided in accordance
with Item 1123 of Regulation AB (the “Compliance Statement”), the report on assessment of the
Servicer’s compliance with the servicing criteria set forth in Item 1122(d) of Regulation AB (the
“Servicing Criteria”), provided in accordance with Rules 13a-18 and 15d-18 under Securities
Exchange Act of 1934, as amended (the “Exchange Act”) and Item 1122 of Regulation AB (the
“Servicing Assessment”), the registered public accounting firm’s attestation report provided in
accordance with Rules 13a-18 and 15d-18 under the Exchange Act and Section 1122(b) of Regulation AB
(the “Attestation Report”), and all other data, servicing reports, officer’s certificates and other
information relating to the performance of the Servicer under the terms of the Agreement and the
servicing of the Mortgage Loans by the Servicer during 200[ ] that were delivered to the
[Depositor] [Master Servicer] pursuant to the Agreement to the extent included in any Form 8-Ks,
Form 10-Ds, Form 10-Ks or similar forms required by the Commission from time to time for the period
covered by the Compliance Statement (collectively, the “Servicer Servicing Information”);

          (B) Based on my knowledge, the reports and information comprising the Servicer Servicing
Information, 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 the light of the circumstances
under which such statements were made, not misleading as of the period covered by, or the date of
such reports or information or the date of this certification;

          (C) Based on my knowledge, all of the Servicer Servicing Information required to be provided
by the Servicer under the Agreement has been provided to the [Depositor] [Master Servicer];

          (D) I am responsible for reviewing the activities performed by the Servicer as servicer under
the Agreement, and based on my knowledge and the compliance review conducted in preparing the
Compliance Statement and except as disclosed in the Compliance Statement, the Servicing Assessment
or the Attestation Report, the Servicer has fulfilled its obligations under the Agreement in all
material respects; and

          (E) The Compliance Statement required to be delivered by the Servicer pursuant to the
Agreement, and the Servicing Assessment and Attestation Report required to be provided by the
Servicer and by any Subservicer or Subcontractor pursuant to the Agreement, have been provided to
the [Depositor] [Master Servicer]. The Servicing Assessment and the

D-1

 

Attestation Report cover all items of the servicing criteria identified on Exhibit C to the
Agreement as applicable to the Servicer. Any material instances of noncompliance described in
such reports have been disclosed to the [Depositor] [Master Servicer]. Any material instance of
noncompliance with the Servicing Criteria has been disclosed in such reports. The following
material instances of noncompliance identified in the Servicing Assessment and the Attestation
Report relate to the performance or obligations of the Servicer under the Agreement:                     
(if none, state “None.”)

	 	 	 	 	 
	 
	 	Date:	 	 
	 
	 	 	 
	 
	 	 	 	 
	 
	 	By:	 	 
	 
	 	 	 
	 
	 	Name:	 	 
	 
	 	Title:	 	 

D-2

 

MORGAN — SEQUDIO TO TRUSTEE

ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT

For

Master Servicing Agreement

          THIS ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT, dated as of March 30, 2007 (“Assignment
No. II”), is entered into among Sequoia Residential Funding, Inc. (the “Assignor”), Morgan Stanley
Credit Corporation, as the servicer (the “Servicer”), and HSBC Bank USA, National Association
(“HSBC Bank”) as Trustee under a Pooling and Servicing Agreement dated as of March 1, 2007 (the
“Pooling and Servicing Agreement”), among the Assignor, as Depositor, HSBC Bank (in such Trustee
capacity, the “Assignee”) and Wells Fargo Bank, N. A., as Master Servicer and Securities
Administrator.

RECITALS

     WHEREAS, RWT Holdings, Inc. (“RWT”) and the Servicer have entered into a certain Master
Servicing Agreement, dated as of November 1, 2006 (as amended or modified to the date hereof, the
“Master Servicing Agreement”), and the Servicer is currently servicing certain mortgage loans (the
“Mortgage Loans”) under the Master Servicing Agreement; and

          WHEREAS, RWT has previously sold, assigned and transferred all of its right, title and
interest in certain of the Mortgage Loans (the “Specified Mortgage Loans”) which are listed on the
mortgage loan schedule attached as Exhibit I hereto (the “Specified Mortgage Loan
Schedule”) and its rights under the Master Servicing Agreement with respect to the Specified
Mortgage Loans to Assignor; and

          WHEREAS, the Assignor has agreed to sell, assign and transfer to Assignee all of its right,
title and interest in the Specified Mortgage Loans and its rights under the Master Servicing
Agreement with respect to the Specified Mortgage Loans; and

          WHEREAS, the parties hereto have agreed that the Specified Mortgage Loans shall be subject to
the terms of this Assignment No. II.

          NOW, THEREFORE, in consideration of the mutual promises contained herein and other good and
valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the parties
agree as follows:

          1. Assignment and Assumption.

          (a) Effective on and as of the date hereof, the Assignor hereby pledges, assigns and
transfers to the Assignee all of its right, title and interest in the Specified Mortgage Loans
and all of its rights (but none of the Owner’s obligations) provided under the Master Servicing
Agreement to the extent relating to the Specified Mortgage Loans, the Assignee hereby accepts
such assignment from the Assignor, and the Servicer hereby acknowledges such assignment and
assumption.

3

 

          (b) Effective on and as of the date hereof, the Assignor represents and warrants to the
Assignee that the Assignor has not taken any action that would serve to impair or encumber the
Assignee’s interest in the Specified Mortgage Loans since the date of the Assignor’s acquisition
of the Specified Mortgage Loans.

2. Recognition of the Assignee.

From and after the date hereof, the Servicer shall recognize the Assignee as the holder of the
rights and benefits of the Owner with respect to the Specified Mortgage Loans and the Servicer
will service the Specified Mortgage Loans for the Assignee as if the Assignee and the Servicer
had entered into a separate servicing agreement for the servicing of the Specified Mortgage
Loans in the form of the Master Servicing Agreement (as modified by Appendix A hereto) (the
“Successor MSA”) with the Assignee as the Owner thereunder, which Successor MSA is incorporated
in and made a part of this Assignment No. II. It is the intention of the parties hereto that
the Successor MSA will be treated as a separate and distinct servicing agreement between the
parties hereto to the extent of the Specified Mortgage Loans and shall be binding upon and for
the benefit of the respective successors and assigns of the parties hereto.

3. Assignor’s Continuing Rights and Responsibilities.

Notwithstanding Sections 1 and 2 above, the parties hereto agree that the Assignor rather than
the Assignee shall have the ongoing rights and responsibilities of the Owner under the following
sections of the Master Servicing Agreement:

	 	 	 
	Section	 	Matter
	 
	 	 
	4.01

	 	(a) Role of the Servicer.
	 
	 	 
	7.05, 1st ¶ and
2nd ¶

	 	(b) Owner’s Right to Examine the Servicer Records.
	 
	 	 
	8.01

	 	(c) The Servicer Shall Provide Information as Reasonably
	 
	 	 
	 

	 	Required.
	 
	 	 
	9.01(a) and (b)

	 	(d) Indemnification; Third-Party Claims.
	 
	 	 
	9.03

	 	(e) Limitation on Liability of Servicer and Others.
	 
	 	 
	12.03

	 	(f) Assignments.
	 
	 	 
	12.13(b)

	 	(g) Non-Solicitation.

4

 

In addition, the Servicer agrees to furnish to the Assignor as well as the Assignee and Master
Servicer copies of reports, notices, statements and other communications required to be
delivered by the Servicer pursuant to any of the sections of the Master Servicing Agreement
referred to above and under the following sections, at the times therein specified:

	 	 	 
	Section	 	 
	 
	 	 
	4.11, 5th and
6th ¶’s

	 	(a) Title Management and Disposition of REO
Property.
	 
	 	 
	6.02

	 	(b) Statements to Owner.
	 
	 	 
	6.03(d)

	 	(c) Monthly Advances by the Servicer.
	 
	 	 
	13.04

	 	(d) Annual Statement as to Compliance
	 
	 	 
	13.05

	 	(e) Report on Assessment of Compliance
and Attestation

4. Successor MSA.

The Successor MSA includes the Master Servicing Agreement as modified by Appendix A hereto and
is made a part of this Assignment No. II.

5. Representations and Warranties.

     (a) The Assignee represents and warrants that it is executing solely in its capacity as
Trustee and it is acquiring the interest at the direction of the Depositor and for the benefit
of the Certificateholders (as defined in the Pooling and Servicing Agreement), and that it has
not relied in connection therewith upon any statements or representations of the Servicer or the
Assignor other than those contained in the Successor MSA or this Assignment No. II.

     (b) Each of the parties hereto represents and warrants that it is duly and legally
authorized to enter into this Assignment No. II.

     (c) Each of the parties hereto represents and warrants that this Assignment No. II has been
duly authorized, executed and delivered by it and (assuming due authorization,

5

 

execution and delivery thereof by each of the other parties hereto) constitutes its legal, valid
and binding obligation, enforceable against it in accordance with its terms, except as such
enforcement may be limited by bankruptcy, insolvency, reorganization or other similar laws
affecting the enforcement of creditors’ rights generally and by general equitable principles
(regardless of whether such enforcement is considered in a proceeding in equity or at law).

6. Continuing Effect.

Except as contemplated hereby, the Master Servicing Agreement shall remain in full force and
effect in accordance with its terms.

7. Governing Law.

This Assignment No. II and the rights and obligations hereunder shall be governed by and
construed in accordance with the internal laws of the State of Illinois.

6

 

8. Notices.

Any notices or other communications permitted or required under the Master Servicing Agreement
to be made to the Assignor and Assignee shall be made in accordance with the terms of the Master
Servicing Agreement and shall be sent to the Assignor and Assignee as follows:

Sequoia Residential Funding, Inc.

One Belvedere Place, Suite 330

Mill Valley, CA 94941

HSBC Bank USA, National Association

452 Fifth Avenue

New York, NY 10018

or to such other address as may hereafter be furnished by the Assignor or Assignee to the other
parties in accordance with the provisions of the Master Servicing Agreement.

9. Counterparts.

This Assignment No. II may be executed in counterparts, each of which when so executed shall be
deemed to be an original and all of which when taken together shall constitute one and the same
instrument.

10. Definitions.

Any capitalized term used but not defined in this Assignment No. II has the same meaning as in
the Master Servicing Agreement or the Master Mortgage Loan Purchase Agreement referred to
therein.

11. Master Servicer.

          The Servicer hereby acknowledges that the Assignee has appointed Wells Fargo Bank, N. A. (the
“Master Servicer”) to act as master servicer and securities administrator under the Pooling and
Servicing Agreement and hereby agrees to treat all inquiries, instructions, authorizations and
other communications from the Master Servicer as if the same had been received from the Assignee.
The Master Servicer, acting on behalf of the Assignee, shall have the rights of the Assignee as the
Owner under the Successor MSA to enforce the obligations of the Servicer thereunder. Any notices
or other communications permitted or required under the Master Servicing Agreement to be made to
the Assignee shall be made in accordance with the terms of the Master Servicing Agreement and shall
be sent to the Master Servicer at the following address:

Wells Fargo Bank, N. A.

7

 

P.O. Box 98

Columbia, Maryland 21046

(or, for overnight deliveries, 9062 Old Annapolis Road, Columbia, Maryland 21045)

Attention: Sequoia Mortgage Trust 2007-1

or to such other address as may hereafter be furnished by the Master Servicer to Servicer. Any
such notices or other communications permitted or required under the Master Servicing Agreement
may be delivered in electronic format unless manual signature is required in which case a hard
copy of such report or communication shall be required.

          The Servicer further acknowledges that the Assignor has engaged the Master Servicer to provide
certain default administration and that the Master Servicer, acting as agent of the Assignor, may
exercise any of the rights of the Owner retained by the Assignor in Section 3 above.

          The Servicer shall make all distributions under the Successor MSA, as they relate to the
Specified Mortgage Loans, to the Master Servicer by wire transfer of immediately funds to:

Wells Fargo Bank, NA

San Francisco, CA

ABA# 121-000-248

Acct# 3970771416

Acct Name: SAS Clearing

FFC: 50996600

[remainder of page intentionally left blank]

8

 

     IN WITNESS WHEREOF, the parties hereto have executed this Assignment No. II the day and year
first above written.

	 	 	 	 	 
	 	 	ASSIGNOR:
	 
	 	 	 	 
	 	 	SEQUOIA RESIDENTIAL FUNDING, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	ASSIGNEE:
	 
	 	 	 	 
	 	 	HSBC BANK USA, NATIONAL

ASSOCIATION
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	SERVICER:
	 
	 	 	 	 
	 	 	MORGAN STANLEY CREDIT CORPORATION
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 

9

 

EXHIBIT I

 

 

APPENDIX A

MASTER SERVICING AGREEMENT

     1. The definition of Custodial Account is revised to read as follows:

          “ ‘Custodial Account’: The separate trust account or accounts created and maintained
pursuant to Section 4.04 of this Agreement which shall be entitled “Morgan Stanley
Credit Corporation, in trust for ‘HSBC Bank USA, National Association, as Trustee, under the
Pooling and Servicing Agreement dated as of March 1, 2007,’ or such other title as is
requested by the Owner.”

2. The definition of Escrow Account is revised to read as follows:

	 	 	“ ‘Escrow Account’: The separate trust account or accounts created and maintained
pursuant to Section 4.06 on which shall be entitled “Morgan Stanley Credit
Corporation, as Servicer, in trust for ‘HSBC Bank USA, National Association, as
Trustee, under the Pooling and Servicing Agreement dated as of March 1, 2007,’ or
such other title as is requested by Owner.”

3. Section 4.18, second sentence is revised to read as follows:

	 	 	“All such Permitted Investments shall be registered in the name of the Servicer or
its nominee, and held in trust for HSBC Bank USA, National Association, as Trustee,
under the Pooling and Servicing Agreement dated March 1, 2007.”

4. Notwithstanding any provision in the Agreement to the contrary, the Servicer agrees
that it will report to the Master Servicer on a monthly basis on the date specified
therein using the formats attached hereto as Exhibit 1.

5. The third full paragraph of Section 6.01 is hereby deleted in its entirety and
replaced by the following (second deleted in two places before Business Day):

     “With respect to any remittance received by Owner on or after the Business Day
following the Business Day on which such payment was due, the Servicer shall pay to Owner
interest on any such late payment at an annual rate equal to the rate of interest as is
publicly announced from time to time at its principal office by Chase Manhattan Bank, N. A.,
New York, New York, as its “prime” lending rate (which is not necessarily its lowest rate)
(or if Chase Manhattan Bank, N.A. shall cease to exist or to announce such rate, then such
rate shall be a reasonably comparable rate determined by Servicer in its reasonable
discretion), adjusted as of the date of each change, plus one (1) percentage point, but in
no event greater than the maximum amount permitted by applicable law. Such interest shall
be paid by the Servicer to Owner on the date such late payment is

 

 

made and shall cover the period commencing with the day following such Business Day and
ending with the Business Day on which such payment is made, both inclusive. Such interest
shall be remitted along with such late payment. The payment by the Servicer of any such
interest shall not be deemed an extension of time for Payment or a waiver of any Event of
Default by the Servicer.”

                    6. Section 10.01 is revised to add an “or” after 10.01(vi) and then to add the following:

          “failure on the part of the Servicer to comply with Article XIII after the cure periods
provided in Section 13.07.”

                    7. Section 13.03 is revised to add the following after 13.03(d)(ii):

    “(iii) information regarding any Mortgage Loan changes (such as additions,
substitutions, or repurchases), and any material changes in origination, underwriting or
other criteria for acquisitions or selection of the Mortgage Loans (Item 1121(a)(14) of
Regulation AB).”

                    8. Section 13.05 is revised to delete the first line of 13.05(iv), so that 13.05(iv) reads:

     “deliver, and cause each Subservicer and Subcontractor as described in clause (iii) to
provide, to the Owner, such Master Servicer and such Depositor and any other Person that
will be responsible for signing the certification (a “Sarbanes Certification”) required by
Rules 13a-14(d) and 15d-14(d) under the Exchange Act (pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002) on behalf of an asset-backed issuer with respect to a
Securitization Transaction a certification in the form attached hereto as Exhibit D.”

                    9. The first paragraph under Section 13.07(b)(ii) is revised to read as follows (addition is
in italics):

     “(ii) Any failure by the Servicer, any Subservicer or any Subcontractor to deliver any
information, report, certification or accountants’ letter when and as required under Section
13.04 or 13.05, including (except as provided below) any failure by the Servicer to identify
pursuant to Section 13.06(b) any Subcontractor “participating in the servicing function”
within the meaning of Item 1122 of Regulation AB, which continues unremedied for ten
calendar days after the date on which such information, report, certification or
accountants’ letter was required to be delivered shall constitute an Event of Default with
respect to the Servicer under this Agreement and any applicable Reconstitution Agreement,
and shall entitle the Owner, the Master Servicer or Depositor, as applicable, in its sole
discretion to terminate the rights and obligations of the Servicer as servicer under this
Agreement and/or any applicable Reconstitution Agreement without payment (notwithstanding
anything in this Agreement to the contrary) of any compensation to the Servicer (and if the
Servicer is servicing any of the Mortgage Loans in a Securitization Transaction, appoint a
successor servicer reasonably acceptable to any Master Servicer for such Securitization
Transaction); provided that to the extent that any provision of this Agreement and/or any
applicable Reconstitution Agreement expressly provides for the survival of certain rights or
obligations following termination of the Servicer as servicer, such provision shall be given
effect.”

 

 

EXHIBIT 1

12A. FORM OF MONTHLY REPORTS

Standard Loan Level File Layout – Master Servicing

Exhibit 1: Layout

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Max
	Column Name	 	Description	 	Decimal	 	Format Comment	 	Size
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Each file requires the following fields:	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SER_INVESTOR_NBR

	 	A value assigned by the Servicer to define a group
of loans.
	 	 	 	 	 	Text up to 20 digits
	 	 	20	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	LOAN_NBR

	 	A unique identifier assigned to each loan by the
investor.
	 	 	 	 	 	Text up to 10 digits
	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SERVICER_LOAN_NBR

	 	A unique number assigned to a loan by the
Servicer. This may be different than the
LOAN_NBR.
	 	 	 	 	 	Text up to 10 digits
	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SCHED_PAY_AMT

	 	Scheduled monthly principal and scheduled interest
payment that a borrower is expected to pay, P&I
constant.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	NOTE_INT_RATE

	 	The loan interest rate as reported by the Servicer.
	 	 	4	 	 	Max length of 6
	 	 	6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	NET_INT_RATE

	 	The loan gross interest rate less the service fee
rate as reported by the Servicer.
	 	 	4	 	 	Max length of 6
	 	 	6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SERV_FEE_RATE

	 	The servicer’s fee rate for a loan as reported by
the Servicer.
	 	 	4	 	 	Max length of 6
	 	 	6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SERV_FEE_AMT

	 	The servicer’s fee amount for a loan as reported
by the Servicer.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	NEW_PAY_AMT

	 	The new loan payment amount as reported by the
Servicer.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	NEW_LOAN_RATE

	 	The new loan rate as reported by the Servicer.
	 	 	4	 	 	Max length of 6
	 	 	6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ARM_INDEX_RATE

	 	The index the Servicer is using to calculate a
forecasted rate.
	 	 	4	 	 	Max length of 6
	 	 	6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ACTL_BEG_PRIN_BAL

	 	The borrower’s actual principal balance at the
beginning of the processing cycle.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ACTL_END_PRIN_BAL

	 	The borrower’s actual principal balance at the end
of the processing cycle.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	BORR_NEXT_PAY_DUE_DATE

	 	The date at the end of processing cycle that the
borrower’s next payment is due to the Servicer, as
reported by Servicer.
	 	 	 	 	 	MM/DD/YYYY
	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SERV_CURT_AMT_1

	 	The first curtailment amount to be applied.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SERV_CURT_DATE_1

	 	The curtailment date associated with the first
curtailment amount.
	 	 	 	 	 	MM/DD/YYYY
	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CURT_ADJ___AMT_1

	 	The curtailment interest on the first curtailment
amount, if applicable.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SERV_CURT_AMT_2

	 	The second curtailment amount to be applied.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SERV_CURT_DATE_2

	 	The curtailment date associated with the second
curtailment amount.
	 	 	 	 	 	MM/DD/YYYY
	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CURT_ADJ___AMT_2

	 	The curtailment interest on the second curtailment
amount, if applicable.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 

 

 

	 	 	 	 	 	 	 
	Exhibit 1: Continued

	 	Standard Loan Level File Layout	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Max
	Column Name	 	Description	 	Decimal	 	Format Comment	 	Size
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SERV_CURT_AMT_3

	 	The third curtailment amount to be applied.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SERV_CURT_DATE_3

	 	The curtailment date associated with the third
curtailment amount.
	 	 	 	 	 	MM/DD/YYYY
	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CURT_ADJ_AMT_3

	 	The curtailment interest on the third curtailment
amount, if applicable.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	PIF_AMT

	 	The loan “paid in full” amount as reported by the
Servicer.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	PIF_DATE

	 	The paid in full date as reported by the Servicer.
	 	 	 	 	 	MM/DD/YYYY
	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Action Code Key:	 	 	 	 
	ACTION_CODE

	 	The standard FNMA numeric code used to indicate
the default/delinquent status of a particular
loan.
	 	 	 	 	 	15=Bankruptcy,

30=Foreclosure, ,

60=PIF,

63=Substitution,

65=Repurchase, 70=REO
	 	 	2	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	INT_ADJ_AMT

	 	The amount of the interest adjustment as reported
by the Servicer.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SOLDIER_SAILOR_ADJ_AMT

	 	The Soldier and Sailor Adjustment amount, if
applicable.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	NON_ADV_LOAN_AMT

	 	The Non Recoverable Loan Amount, if applicable.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	LOAN_LOSS_AMT

	 	The amount the Servicer is passing as a loss, if applicable.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	plus the following applicable fields:

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SCHED_BEG_PRIN_BAL

	 	The scheduled outstanding principal amount due at the beginning of the cycle date to be passed through to investors.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SCHED_END_PRIN_BAL

	 	The scheduled principal balance due to investors at the end of a processing cycle.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SCHED_PRIN_AMT

	 	The scheduled principal amount as reported by the Servicer for the current
cycle -- only applicable for Scheduled/Scheduled Loans.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SCHED_NET_INT

	 	The scheduled gross intrest amount less the service fee amount for the current cycle as
reported by the Servicer -- only applicable for Scheduled/Scheduled Loans.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ACTL_PRIN_AMT

	 	The actual principal amount collected by the
Servicer for the current reporting cycle -- only applicable for Actual/Actual Loans.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ACTL_NET_INT

	 	The actual gross interest amount less the Service fee amount for
the current reporting cycle as reported by the Servicer -- only applicable for Actual/Actual Loans.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	PREPAY_PENALTY_AMT

	 	The penalty amount received when a borrower prepays on his loan as reported by the Servicer.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	PREPAY_PENALTY_WAIVED

	 	The prepayment penalty amount for the loan waived by the servicer.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 

 

 

Exhibit 1: Continued 

Standard Loan Level File Layout

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Max	 	 
	Column Name	 	Description	 	Decimal	 	Format Comment	 	Size	 	 
	MOD_DATE

	 	The Effective Payment Date of the Modification for the loan.
	 	 	 	 	 	MM/DD/YYYY
	 	 	10	 	 	 
	MOD_TYPE

	 	The Modification Type.
	 	 	 	 	 	Varchar — value can be alpha or numeric
	 	 	30	 	 	 
	DELINQ_P&I_ADVANCE_AMT

	 	The current outstanding principal and interest advances made by Servicer.
	 	 		 	 	2 No commas(,) or dollar signs ($)
	 	 	11	 	 	 
	BREACH_FLAG

	 	Flag to indicate if the repurchase of a loan is due to a breach of Representations and Warranties
	 	 	 	 	 	Y=Breach

N=NO Breach

Let blank if N/A
	 	 	1	 	 	 

 

 

Exhibit 2: Monthly Summary Report by Single Investor

MONTHLY SUMMARY REPORT

	 	 	 	 	 	 	 	 	 	 	 
	For Month Ended:

	 	mm/dd/yyyy
 

	 	 
	 	Servicer Name
	 	 
 

	 	 

	 	 	 	 	 	 	 	 	 
	Prepared by:

	 	 
 

	 	Investor Nbr
	 	 
 

	 	 

Section 1. Remittances and Ending Balances — Required Data

	 	 	 	 	 	 	 	 	 
	Beginning	 	Ending	 	Total Monthly	 	Total Ending Unpaid	 	Total Monthly Principal
	Loan Count	 	Loan Count	 	Remittance Amo	 	Principal Balance	 	Balance
	0
	 	0	 	$0.00	 	$0.00	 	$0.00

	 	 	 	 	 	 	 	 	 
	Principal Calculation
	 	 	 	 	 	 	 	 
	1. Monthly Principal Due
	 	 	 	 	+	 	$0.00	 
	 
	 	 	 	 	 	 	 
	2. Current Curtailments
	 	 	 	 	+	 	$0.00	 
	 
	 	 	 	 	 	 	 
	3. Liquidations
	 	 	 	 	+	 	$0.00	 
	 
	 	 	 	 	 	 	 
	4. Other (attach explanation)
	 	 	 	 	+	 	$0.00	 
	 
	 	 	 	 	 	 	 
	5. Principal Due
	 	 	 	 	 	 	$0.00	 
	 
	 	 	 	 	 	 	 
	6. Interest
(reported “gross”)
	 	 	 	 	+	 	$0.00	 
	 
	 	 	 	 	 	 	 
	7. Interest Adjustments on Curtailments
	 	 	 	 	+	 	$0.00	 
	 
	 	 	 	 	 	 	 
	8. Servicing Fees
	 	 	 	 	–	 	$0.00	 
	 
	 	 	 	 	 	 	 
	9. Other Interest (attach explanation)
	 	 	 	 	+	 	$0.00	 
	 
	 	 	 	 	 	 	 
	10. Interest Due (need to subtract ser fee)
	 	 	 	 	 	 	$0.00	 
	 
	 	 	 	 	 	 	 
	Remittance Calculation
	 	 	 	 	 	 	 	 
	11. Total Principal and Interest Due (lines 5+10)
	 	 	 	 	+	 	$0.00	 
	 
	 	 	 	 	 	 	 
	12. Reimbursement of Non-Recoverable Advances
	 	 	 	 	–	 	$0.00	 
	 
	 	 	 	 	 	 	 
	13. Total Realized gains
	 	 	 	 	+	 	$0.00	 
	 
	 	 	 	 	 	 	 
	14. Total Realized Losses
	 	 	 	 	–	 	$0.00	 
	 
	 	 	 	 	 	 	 
	15. Total Prepayment Penalties
	 	 	 	 	+	 	$0.00	 
	 
	 	 	 	 	 	 	 
	16. Total Non-Supported Compensating Interest
	 	 	 	 	–	 	$0.00	 
	 
	 	 	 	 	 	 	 
	17. Other (attach explanation)
	 	 	 	 	 	 	$0.00	 
	 
	 	 	 	 	 	 	 
	18. Net Funds Due on or before Remittance Date
	 	 	 	 	$	 	$0.00	 
	 
	 	 	 	 	 	 	 

Section 2. Delinquency Report — Optional Data for Loan Accounting

Installments Delinquent

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total No.	 	Total No.	 	 	 	 	 	 	 	In	 	Real Estate	 	Total Dollar
	of	 	of	 	30-	 	60-	 	90 or more	 	Foreclosure	 	Owned	 	Amount of
	Loans	 	Delinquencies	 	Days	 	Days	 	Days	 	(Optional)	 	(Optional)	 	Delinquencies
	0
	 	0	 	0	 	0	 	0	 	0	 	0	 	$0.00

 

 

Section 3. REG AB Summary Reporting — REPORT ALL APPLICABLE FIELDS

	 	 	 	 	 	 	 	 	 
	REG AB FIELDS	 	LOAN COUNT	 	BALANCE
	PREPAYMENT PENALTY AMT
	 	 	0	 	 	$	0.00	 
	PREPAYMENT PENALTY AMT WAIVED
	 	 	0	 	 	$	0.00	 
	DELINQUENCY P&I AMOUNT
	 	 	0	 	 	$	0.00	 

 

 

Exhibit 12B : Standard File Layout – Delinquency Reporting

*The column/header names in bold are the minimum fields Wells Fargo must receive from
every Servicer

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Format
	Column/Header Name	 	Description	 	Decimal	 	Comment
	SERVICER_LOAN_NBR

	 	A unique number assigned to a loan by the Servicer. This may be different than the LOAN_NBR	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	LOAN_NBR

	 	A unique identifier assigned to each loan by the originator.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	CLIENT_NBR

	 	Servicer Client Number	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SERV_INVESTOR_NBR

	 	Contains a unique number as assigned by an external servicer to identify a group of loans in their system.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	BORROWER_FIRST_NAME

	 	First Name of the Borrower.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	BORROWER_LAST_NAME

	 	Last name of the borrower.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	PROP_ADDRESS

	 	Street Name and Number of Property	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	PROP_STATE

	 	The state where the property located.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	PROP_ZIP

	 	Zip code where the property is located.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	BORR_NEXT_PAY_DUE_DATE

	 	The date that the borrower’s next payment is due to the servicer at the end of processing cycle, as reported by Servicer.
	 	 	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 	 	 
	LOAN_TYPE

	 	Loan Type (i.e. FHA, VA, Conv)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	BANKRUPTCY_FILED_DATE

	 	The date a particular bankruptcy claim was filed.
	 	 	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 	 	 
	BANKRUPTCY_CHAPTER_CODE

	 	The chapter under which the bankruptcy was filed.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	BANKRUPTCY_CASE_NBR

	 	The case number assigned by the court to the bankruptcy filing.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	POST_PETITION_DUE_DATE

	 	The payment due date once the bankruptcy has been approved by the courts
	 	 	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 	 	 
	BANKRUPTCY_DCHRG_DISM_DATE

	 	The Date The Loan Is Removed From Bankruptcy. Either by Dismissal, Discharged and/or a Motion For Relief Was Granted.
	 	 	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 	 	 
	LOSS_MIT_APPR_DATE

	 	The Date The Loss Mitigation Was Approved By The Servicer
	 	 	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 	 	 
	LOSS_MIT_TYPE

	 	The Type Of Loss Mitigation Approved For A Loan Such As;	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	LOSS_MIT_EST_COMP_DATE

	 	The Date The Loss Mitigation /Plan Is Scheduled To End/Close
	 	 	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 	 	 
	LOSS_MIT_ACT_COMP_DATE

	 	The Date The Loss Mitigation Is Actually Completed
	 	 	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 	 	 
	FRCLSR_APPROVED_DATE

	 	The date DA Admin sends a letter to the servicer with instructions to begin foreclosure proceedings.
	 	 	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 	 	 
	ATTORNEY_REFERRAL_DATE

	 	Date File Was Referred To Attorney to Pursue Foreclosure
	 	 	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 	 	 
	FIRST_LEGAL_DATE

	 	Notice of 1st legal filed by an Attorney in a Foreclosure Action
	 	 	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 	 	 
	FRCLSR_SALE_EXPECTED_DATE

	 	The date by which a foreclosure sale is expected to occur.
	 	 	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 	 	 
	FRCLSR_SALE_DATE

	 	The actual date of the foreclosure sale.
	 	 	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 	 	 
	FRCLSR_SALE_AMT

	 	The amount a property sold for at the foreclosure sale.
	 	 	2	 	 	No commas(,) or
 dollar signs ($)
	 
	 	 	 	 	 	 	 	 
	EVICTION_START_DATE

	 	The date the servicer initiates eviction of the borrower.
	 	 	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 	 	 
	EVICTION_COMPLETED_DATE

	 	The date the court revokes legal possession of the property from the borrower.
	 	 	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 	 	 
	LIST_PRICE

	 	The price at which an REO property is marketed.
	 	 	2	 	 	No commas(,) or
 dollar signs ($)
	 
	 	 	 	 	 	 	 	 
	LIST_DATE

	 	The date an REO property is listed at a particular price.
	 	 	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 	 	 
	OFFER_AMT

	 	The dollar value of an offer for an REO property.
	 	 	2	 	 	No commas(,) or
 dollar signs ($)
	 
	 	 	 	 	 	 	 	 
	OFFER_DATE_TIME

	 	The date an offer is received by DA Admin or by the Servicer.
	 	 	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 	 	 
	REO_CLOSING_DATE

	 	The date the REO sale of the property is scheduled to close.
	 	 	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 	 	 
	REO_ACTUAL_CLOSING_DATE

	 	Actual Date Of REO Sale
	 	 	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 	 	 
	OCCUPANT_CODE

	 	Classification of how the property is occupied.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	PROP_CONDITION_CODE

	 	A code that indicates the condition of the property.	 	 	 	 	 	 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Format
	Column/Header Name	 	Description	 	Decimal	 	Comment
	PROP_INSPECTION_DATE

	 	The date a property inspection is performed.
	 	 	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 	 	 
	APPRAISAL_DATE

	 	The date the appraisal was done.
	 	 	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 	 	 
	CURR_PROP_VAL

	 	The current “as is” value of the property based on brokers price opinion or appraisal.
	 	 	2	 	 	 
	 
	 	 	 	 	 	 	 	 
	REPAIRED_PROP_VAL

	 	The amount the property would be worth if repairs are completed pursuant to a broker’s price opinion or appraisal.
	 	 	2	 	 	 
	 
	 	 	 	 	 	 	 	 
	If applicable:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	DELINQ_STATUS_CODE

	 	FNMA Code Describing Status of Loan	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	DELINQ_REASON_CODE

	 	The circumstances which caused a borrower to stop paying on a loan. Code indicates the reason why the loan is in default for this
cycle.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	MI_CLAIM_FILED_DATE

	 	Date Mortgage Insurance Claim Was Filed With Mortgage Insurance Company.
	 	 	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 	 	 
	MI_CLAIM_AMT

	 	Amount of Mortgage Insurance Claim Filed
	 	 	 	 	 	No commas(,) or
 dollar signs ($)
	 
	 	 	 	 	 	 	 	 
	MI_CLAIM_PAID_DATE

	 	Date Mortgage Insurance Company Disbursed Claim Payment
	 	 	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 	 	 
	MI_CLAIM_AMT_PAID

	 	Amount Mortgage Insurance Company Paid On Claim
	 	 	2	 	 	No commas(,) or
 dollar signs ($)
	 
	 	 	 	 	 	 	 	 
	POOL_CLAIM_FILED_DATE

	 	Date Claim Was Filed With Pool Insurance Company
	 	 	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 	 	 
	POOL_CLAIM_AMT

	 	Amount of Claim Filed With Pool Insurance Company
	 	 	2	 	 	No commas(,) or
 dollar signs ($)
	 
	 	 	 	 	 	 	 	 
	POOL_CLAIM_PAID_DATE

	 	Date Claim Was Settled and The Check Was Issued By The Pool Insurer
	 	 	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 	 	 
	POOL_CLAIM_AMT_PAID

	 	Amount Paid On Claim By Pool Insurance Company
	 	 	2	 	 	No commas(,) or
 dollar signs ($)
	 
	 	 	 	 	 	 	 	 
	FHA_PART_A_CLAIM_FILED_DATE

	 	Date FHA Part A Claim Was Filed With HUD
	 	 	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 	 	 
	FHA_PART_A_CLAIM_AMT

	 	Amount of FHA Part A Claim Filed
	 	 	2	 	 	No commas(,) or
 dollar signs ($)
	 
	 	 	 	 	 	 	 	 
	FHA_PART_A_CLAIM_PAID_DATE

	 	Date HUD Disbursed Part A Claim Payment
	 	 	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 	 	 
	FHA_PART_A_CLAIM_PAID_AMT

	 	Amount HUD Paid on Part A Claim
	 	 	2	 	 	No commas(,) or
 dollar signs ($)
	 
	 	 	 	 	 	 	 	 
	FHA_PART_B_CLAIM_FILED_DATE

	 	Date FHA Part B Claim Was Filed With HUD
	 	 	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 	 	 
	FHA_PART_B_CLAIM_AMT

	 	Amount of FHA Part B Claim Filed
	 	 	2	 	 	No commas(,) or
 dollar signs ($)
	 
	 	 	 	 	 	 	 	 
	FHA_PART_B_CLAIM_PAID_DATE

	 	Date HUD Disbursed Part B Claim Payment
	 	 	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 	 	 
	FHA_PART_B_CLAIM_PAID_AMT

	 	Amount HUD Paid on Part B Claim
	 	 	2	 	 	No commas(,) or
 dollar signs ($)
	 
	 	 	 	 	 	 	 	 
	VA_CLAIM_FILED_DATE

	 	Date VA Claim Was Filed With the Veterans Admin
	 	 	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 	 	 
	VA_CLAIM_PAID_DATE

	 	Date Veterans Admin. Disbursed VA Claim Payment
	 	 	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 	 	 
	VA_CLAIM_PAID_AMT

	 	Amount Veterans Admin. Paid on VA Claim
	 	 	2	 	 	No commas(,) or 
dollar signs ($)
	MOTION_FOR_RELIEF_DATE

	 	The date the Motion for Relief was filed
	 	 	10	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 	 	 
	FRCLSR_BID_AMT

	 	The foreclosure sale bid amount
	 	 	11	 	 	No commas(,) or
 dollar signs ($)
	 
	 	 	 	 	 	 	 	 
	FRCLSR_SALE_TYPE

	 	The foreclosure sales results: REO, Third Party, Conveyance to HUD/VA	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	REO_PROCEEDS

	 	The net proceeds from the sale of the REO property.
	 	 	 	 	 	No commas(,) or
 dollar signs ($)
	 
	 	 	 	 	 	 	 	 
	BPO_DATE

	 	The date the BPO was done.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	CURRENT_FICO

	 	The current FICO score	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	HAZARD_CLAIM_FILED_DATE

	 	The date the Hazard Claim was filed with the Hazard Insurance Company.
	 	 	10	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 	 	 
	HAZARD_CLAIM_AMT

	 	The amount of the Hazard Insurance Claim filed.
	 	 	11	 	 	No commas(,) or
 dollar signs ($)

 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Format
	Column/Header Name	 	Description	 	Decimal	 	Comment
	HAZARD_CLAIM_PAID_DATE

	 	The date the Hazard Insurance Company disbursed the claim payment.
	 	 	10	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 	 	 
	HAZARD_CLAIM_PAID_AMT

	 	The amount the Hazard Insurance Company paid on the claim.
	 	 	11	 	 	No commas(,) or
 dollar signs ($)
	 
	 	 	 	 	 	 	 	 
	ACTION_CODE

	 	Indicates loan status
	 	 	 	 	 	Number
	 
	 	 	 	 	 	 	 	 
	NOD_DATE

	 	 	 	 	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 	 	 
	NOI_DATE

	 	 	 	 	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 	 	 
	ACTUAL_PAYMENT_PLAN_START_DATE

	 	 	 	 	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 	 	 
	ACTUAL_PAYMENT___PLAN_END_DATE
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	ACTUAL_REO_START_DATE

	 	 	 	 	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 	 	 
	REO_SALES_PRICE

	 	 	 	 	 	 	 	Number
	 
	 	 	 	 	 	 	 	 
	REALIZED_LOSS/GAIN

	 	As defined in the Servicing Agreement
	 	 	 	 	 	Number

Exhibit 2: Standard File Codes – Delinquency Reporting

The Loss Mit Type field should show the approved Loss Mitigation Code as follows:

	 	 	 	 	 
	•

	 	ASUM-
	 	Approved Assumption
	•

	 	BAP-
	 	Borrower Assistance Program
	•

	 	CO-
	 	Charge Off
	•

	 	DIL-
	 	Deed-in-Lieu
	•

	 	FFA-
	 	Formal Forbearance Agreement
	•

	 	MOD-
	 	Loan Modification
	•

	 	PRE-
	 	Pre-Sale
	•

	 	SS-
	 	Short Sale
	•

	 	MISC-
	 	Anything else approved by the PMI or Pool Insurer

NOTE: Wells Fargo Bank will accept alternative Loss Mitigation Types to those above,
provided that they are consistent with industry standards. If Loss Mitigation Types other than
those above are used, the Servicer must supply Wells Fargo Bank with a description of each of the
Loss Mitigation Types prior to sending the file.

The Occupant Code field should show the current status of the property code as follows:

	 	 	 
	•

	 	Mortgagor
	•

	 	Tenant
	•

	 	Unknown
	•

	 	Vacant

The Property Condition field should show the last reported condition of the property as follows:

	 	 	 
	•

	 	Damaged
	•

	 	Excellent
	•

	 	Fair
	•

	 	Gone
	•

	 	Good
	•

	 	Poor
	•

	 	Special Hazard
	•

	 	Unknown

 

 

Exhibit 2: Standard File Codes – Delinquency Reporting, Continued

The FNMA Delinquent Reason Code field should show the Reason for Delinquency as follows:

	 	 	 
	Delinquency 	 	
	Code	 	Delinquency Description
	001	 	FNMA-Death of principal mortgagor

	 	 	 

	002	 	FNMA-Illness of principal mortgagor

	 	 	 

	003	 	FNMA-Illness of mortgagor’s family member

	 	 	 

	004	 	FNMA-Death of mortgagor’s family member

	 	 	 

	005	 	FNMA-Marital difficulties

	 	 	 

	006	 	FNMA-Curtailment of income

	 	 	 

	007	 	FNMA-Excessive Obligation

	 	 	 

	008	 	FNMA-Abandonment of property

	 	 	 

	009	 	FNMA-Distant employee transfer

	 	 	 

	011	 	FNMA-Property problem

	 	 	 

	012	 	FNMA-Inability to sell property

	 	 	 

	013	 	FNMA-Inability to rent property

	 	 	 

	014	 	FNMA-Military Service

	 	 	 

	015	 	FNMA-Other

	 	 	 

	016	 	FNMA-Unemployment

	 	 	 

	017	 	FNMA-Business failure

	 	 	 

	019	 	FNMA-Casualty loss

	 	 	 

	022	 	FNMA-Energy environment costs

	 	 	 

	023	 	FNMA-Servicing problems

	 	 	 

	026	 	FNMA-Payment adjustment

	 	 	 

	027	 	FNMA-Payment dispute

	 	 	 

	029	 	FNMA-Transfer of ownership pending

	 	 	 

	030	 	FNMA-Fraud

	 	 	 

	031	 	FNMA-Unable to contact borrower

	 	 	 

	INC	 	FNMA-Incarceration

 

 

Exhibit 2: Standard File Codes – Delinquency Reporting, Continued

The FNMA Delinquent Status Code field should show the Status of Default as follows:

	 	 	 
	Status Code	 	Status Description
	09	 	Forbearance

	 	 	 

	17	 	Pre-foreclosure Sale Closing Plan Accepted

	 	 	 

	24	 	Government Seizure

	 	 	 

	26	 	Refinance

	 	 	 

	27	 	Assumption

	 	 	 

	28	 	Modification

	 	 	 

	29	 	Charge-Off

	 	 	 

	30	 	Third Party Sale

	 	 	 

	31	 	Probate

	 	 	 

	32	 	Military Indulgence

	 	 	 

	43	 	Foreclosure Started

	 	 	 

	44	 	Deed-in-Lieu Started

	 	 	 

	49	 	Assignment Completed

	 	 	 

	61	 	Second Lien Considerations

	 	 	 

	62	 	Veteran’s Affairs-No Bid

	 	 	 

	63	 	Veteran’s Affairs-Refund

	 	 	 

	64	 	Veteran’s Affairs-Buydown

	 	 	 

	65	 	Chapter 7 Bankruptcy

	 	 	 

	66	 	Chapter 11 Bankruptcy

	 	 	 

	67	 	Chapter 13 Bankruptcy

 

 

Exhibit 12C: Calculation of Realized Loss/Gain Form 332– Instruction Sheet

NOTE: Do not net or combine items. Show all expenses individually and all credits as
separate line items. Claim packages are due on the remittance report date. Late
submissions may result in claims not being passed until the following month. The Servicer
is responsible to remit all funds pending loss approval and /or resolution of any disputed
items.

     (i)

     (ii) The numbers on the 332 form correspond with the numbers listed below.

     Liquidation and Acquisition Expenses:

	 	1.	 	The Actual Unpaid Principal Balance of the Mortgage Loan. For documentation,
an Amortization Schedule from date of default through liquidation breaking out the net
interest and servicing fees advanced is required.
	 
	 	2.	 	The Total Interest Due less the aggregate amount of servicing fee that would
have been earned if all delinquent payments had been made as agreed. For documentation,
an Amortization Schedule from date of default through liquidation breaking out the net
interest and servicing fees advanced is required.
	 
	 	3.	 	Accrued Servicing Fees based upon the Scheduled Principal Balance of the
Mortgage Loan as calculated on a monthly basis. For documentation, an Amortization
Schedule from date of default through liquidation breaking out the net interest and
servicing fees advanced is required.
	 
	 	4-12.	 	 Complete as applicable. Required documentation:

	 	*	 	For taxes and insurance advances – see page 2 of 332 form — breakdown required
showing period
	 
	 	 	 	of coverage, base tax, interest, penalty. Advances prior to default require
evidence of servicer efforts to recover advances.
	 
	 	*	 	For escrow advances — complete payment history
	 
	 	 	 	(to calculate advances from last positive escrow balance forward)
	 
	 	*	 	Other expenses —  copies of corporate advance history showing all payments
	 
	 	*	 	REO repairs > $1500 require explanation
	 
	 	*	 	REO repairs >$3000 require evidence of at least 2 bids.
	 
	 	*	 	Short Sale or Charge Off require P&L supporting the decision and WFB’s approved
Officer Certificate
	 
	 	*	 	Unusual or extraordinary items may require further documentation.

	 	13.	 	The total of lines 1 through 12.
	 
	 	(iv)	 	Credits:
	 
	 	14-21.	 	Complete as applicable. Required documentation:

	 	*	 	Copy of the HUD 1 from the REO sale. If a 3rd Party Sale, bid
instructions and Escrow Agent / Attorney
	 
	 	 	 	Letter of Proceeds Breakdown.
	 
	 	*	 	Copy of EOB for any MI or gov’t guarantee
	 
	 	*	 	All other credits need to be clearly defined on the 332 form

	 	22.	 	The total of lines 14 through 21.

			
	     Please Note:   	 	For HUD/VA loans, use line (18a) for Part A/Initial proceeds and line
(18b) for Part B/Supplemental proceeds.

     Total Realized Loss (or Amount of Any Gain)

	 	23.	 	The total derived from subtracting line 22 from 13. If the amount represents a
realized gain, show the amount in parenthesis ( ).

 

 

Exhibit 3A: Calculation of Realized Loss/Gain Form 332

     Prepared by:      
                      
                       
       Date:                
                      
   

     Phone:       
                     
              Email Address:      
                      
            

					
	 	 	 	 	 
	Servicer Loan No.
	 	Servicer Name
	 	Servicer Address

     WELLS FARGO BANK, N.A. Loan No.    
                     
               

     Borrower’s Name:     
                      
                      
            

     Property Address:     
                      
                      
            

     Liquidation Type: REO Sale  
         3rd Party Sale  
          Short Sale       Charge Off

     Was this loan granted a Bankruptcy deficiency or cramdown   
         Yes       No

     If “Yes”, provide deficiency or cramdown amount    
                         
            

	 	 	 	 	 
	Liquidation and Acquisition Expenses:
	 	 	 	 
	(1) Actual Unpaid Principal Balance of Mortgage Loan

	 	$              
                  
   
	 	(1)
	(2) Interest accrued at Net Rate

	 	               
                   
    
	 	(2)
	(3) Accrued Servicing Fees

	 	               
                    
     
	 	(3)
	(4) Attorney’s Fees

	 	               
                    
     
	 	(4)
	(5) Taxes (see page 2)

	 	               
                    
     
	 	(5)
	(6) Property Maintenance

	 	                
                     
   
	 	(6)
	(7) MI/Hazard Insurance Premiums (see page 2)

	 	                
                     
   
	 	(7)
	(8) Utility Expenses

	 	                
                     
   
	 	(8)
	(9) Appraisal/BPO

	 	                
                     
   
	 	(9)
	(10) Property Inspections

	 	                 
                       
	 	(10)
	(11) FC Costs/Other Legal Expenses

	 	                  
                      
	 	(11)
	(12) Other (itemize)

	 	                
                     
   
	 	(12)
	Cash for Keys__________________________
	 	                
                     
   
	 	(12)
	 
	 	 	 	 	 
	HOA/Condo Fees_______________________
	 	                
                     
   
	 	(12)
	 
	 	
	 	 
	_____________________________________
	 	                
                     
   
	 	(12)
	 
	 	 	 	 
	 
	 	 	 	 	 
	          Total Expenses

	 	$                   
                  
	 	(13)
	 
	 	 	 	 
	Credits:
	 	 	 	 
	(14) Escrow Balance

	 	$                 
                    
	 	(14)
	(15) HIP Refund

	 	                
                        
	 	(15)
	(16) Rental Receipts

	 	                 
                       
	 	(16)
	(17) Hazard Loss Proceeds

	 	                 
                       
	 	(17)
	(18) Primary Mortgage Insurance / Gov’t Insurance

	 	                  
                      
	 	(18a) HUD Part A
	 

	 	                 
                       
	 	(18b) HUD Part B
	(19) Pool Insurance Proceeds

	 	                  
                      
	 	(19)
	(20) Proceeds from Sale of Acquired Property

	 	                 
                       
	 	(20)
	(21) Other (itemize)

	 	                                        
	 	(21)
	 	 
	 	 
	_____________________________________
	 	                
                        
	 	(21)
	 
	 	 	 	 
	          Total Credits

	 	$                    
                 
	 	(22)
	Total Realized Loss (or Amount of Gain)

	 	$                 
                    
	 	(23)

1

 

Escrow Disbursement Detail

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Type	 	 	 	 	 	Period of	 	 	 	 	 	 	 	 	 	 	 	 	 
	(Tax /Ins.)	 	Date Paid	 	 	Coverage	 	 	Total Paid	 	 	Base Amount	 	 	Penalties	 	 	Interest	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

2exv10w7

 

Exhibit 10.7

 

 

LOAN SERVICING AGREEMENT

Dated and effective as of February 1, 2004

RWT HOLDINGS, INC.

(Owner)

and

GMAC MORTGAGE CORPORATION

(Servicer)

  

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE I DEFINITIONS

	 	 	1	 
	 	 	 	 	 
	Section 1.01 Definitions

	 	 	1	 
	 	 	 	 	 
	ARTICLE II POSSESSION OF MORTGAGE LOAN SERVICING FILES

	 	 	9	 
	 	 	 	 	 
	Section 2.01 Servicing of Mortgage Loans

	 	 	10	 
	 	 	 	 	 
	Section 2.02 Conveyance of Mortgage Loan Servicing Files;
Possession of Mortgage Loan Servicing Files

	 	 	10	 
	 	 	 	 	 
	Section 2.03 Books and Records

	 	 	10	 
	 	 	 	 	 
	Section 2.04 Custodial Agreement: Delivery of Documents

	 	 	10	 
	 	 	 	 	 
	Section 2.05 Tax Service/Flood Service

	 	 	11	 
	 	 	 	 	 
	ARTICLE III REPRESENTATIONS AND WARRANTIES

	 	 	11	 
	 	 	 	 	 
	SECTION 3.01 GENERAL REPRESENTATIONS AND WARRANTIES OF THE
SERVICER AND OWNER

	 	 	11	 
	 	 	 	 	 
	Section 3.02 Representations, Warranties and Covenants of Owner

	 	 	12	 
	 	 	 	 	 
	Section 3.03 Survival

	 	 	13	 
	 	 	 	 	 
	ARTICLE IV ADMINISTRATION AND SERVICING OF MORTGAGE LOANS

	 	 	13	 
	 	 	 	 	 
	Section 4.01 Standards of Servicer

	 	 	13	 
	 	 	 	 	 
	Section 4.02 Liquidation of Mortgage Loans; Servicing Advances and Foreclosure

	 	 	15	 
	 	 	 	 	 
	Section 4.03 Collection of Mortgage Loan Payments

	 	 	16	 
	 	 	 	 	 
	Section 4.04 Establishment of Custodial Account; Deposits in Custodial Account

	 	 	16	 
	 	 	 	 	 
	Section 4.05 Withdrawals From the Custodial Account

	 	 	17	 
	 	 	 	 	 
	Section 4.06 Establishment of Escrow Account; Deposits in Escrow Account

	 	 	18	 
	 	 	 	 	 
	Section 4.07 Withdrawals From Escrow Account

	 	 	19	 
	 	 	 	 	 
	Section 4.08 Payment of Taxes, Insurance and Other Charges

	 	 	19	 

i

 

	 	 	 	 	 
	Section 4.09 Transfer of Accounts

	 	 	20	 
	 	 	 	 	 
	Section 4.10 Maintenance of Hazard Insurance

	 	 	20	 
	 	 	 	 	 
	Section 4.11 Maintenance of Blanket Insurance Policy

	 	 	21	 
	 	 	 	 	 
	Section 4.12 Maintenance of Mortgage Impairment Insurance Policy

	 	 	21	 
	 	 	 	 	 
	Section 4.13 Fidelity Bond; Errors and Omissions Insurance

	 	 	21	 
	 	 	 	 	 
	Section 4.14 Title, Management and Disposition of REO Property

	 	 	22	 
	 	 	 	 	 
	Section 4.15 Transfer Notices

	 	 	24	 
	 	 	 	 	 
	Section 4.16 Restoration of Mortgaged Property

	 	 	25	 
	 	 	 	 	 
	Section 4.17 Maintenance of PMI Policy; Claims

	 	 	25	 
	 	 	 	 	 
	Section 4.18 Privacy

	 	 	26	 
	 	 	 	 	 
	Section 4.19 Compliance with REMIC Provisions

	 	 	26	 
	 	 	 	 	 
	ARTICLE V PAYMENTS TO THE OWNER

	 	 	27	 
	 	 	 	 	 
	Section 5.01 Distributions

	 	 	27	 
	 	 	 	 	 
	Section 5.02 Statements to the Owner

	 	 	27	 
	 	 	 	 	 
	Section 5.03 P&I Advances by the Servicer

	 	 	28	 
	 	 	 	 	 
	ARTICLE VI GENERAL SERVICING PROCEDURE

	 	 	28	 
	 	 	 	 	 
	Section 6.01 Assumption Agreements

	 	 	28	 
	 	 	 	 	 
	Section 6.02 Release of Mortgage Files; Wrongful Satisfaction of Mortgages

	 	 	29	 
	 	 	 	 	 
	Section 6.03 Servicing Compensation

	 	 	29	 
	 	 	 	 	 
	Section 6.04 Annual Statement as to Compliance

	 	 	29	 
	 	 	 	 	 
	Section 6.05 Annual Independent Public Accountants’ Servicing Report

	 	 	30	 
	 	 	 	 	 
	Section 6.06 Owner’s Right to Examine Servicer Records

	 	 	30	 
	 	 	 	 	 
	Section 6.07 Rate Adjustment

	 	 	30	 
	 	 	 	 	 
	Section 6.08 Maintenance of Licenses and Ratings

	 	 	30	 

ii

 

	 	 	 	 	 
	Section 6.09 Quality Control

	 	 	31	 
	 
	Section 6.10 Compliance and Performance Reviews

	 	 	31	 
	 
	Section 6.11 Access to Documents and Employees

	 	 	31	 
	 
	Section 6.12 Notices

	 	 	31	 
	 
	Section 6.13 Contingency Plans

	 	 	32	 
	 
	ARTICLE VII REPORTS TO BE PREPARED BY SERVICER

	 	 	32	 
	 
	Section 7.01 Servicer Shall Provide Access and
Information as Reasonably Required

	 	 	32	 
	 
	Section 7.02 Financial Statements

	 	 	32	 
	 
	ARTICLE VIII THE SERVICER

	 	 	33	 
	 
	Section 8.01 Indemnification; Third Party Claims

	 	 	33	 
	 
	Section 8.02 Limitation on Liability

	 	 	34	 
	 
	Section 8.03 Merger or Consolidation of the Servicer

	 	 	35	 
	 
	ARTICLE IX DEFAULT

	 	 	36	 
	 
	Section 9.01 Events of Default

	 	 	36	 
	 
	ARTICLE X TERMINATION; RECONSTITUTION

	 	 	37	 
	 
	Section 10.01 ( Reserved )

	 	 	37	 
	 
	Section 10.02 Termination Without Cause

	 	 	37	 
	 
	Section 10.03 Removal of Mortgage Loans From Inclusion Under This Agreement

	 	 	38	 
	 
	ARTICLE XI MISCELLANEOUS PROVISIONS

	 	 	40	 
	 
	Section 11.01 Successor to the Servicer

	 	 	41	 
	 
	Section 11.02 No Waiver

	 	 	41	 
	 
	Section 11.03 Amendment

	 	 	42	 
	 
	Section 11.04 No Solicitations

	 	 	42	 
	 
	Section 11.05 Duration of Agreement

	 	 	42	 

iii

 

	 	 	 	 	 
	Section 11.06 Governing Law

	 	 	42	 
	 
	Section 11.07 Notices

	 	 	43	 
	 
	Section 11.08 Severability of Provisions

	 	 	43	 
	 
	Section 11.09 No Partnership

	 	 	43	 
	 
	Section 11.10 Counterparts

	 	 	43	 
	 
	Section 11.11 Successors and Assigns

	 	 	43	 
	 
	Section 11.12 Time of Payment

	 	 	44	 
	 
	Section 11.13 General Interpretive Principles

	 	 	44	 
	 
	Section 11.14 Entire Agreement

	 	 	44	 
	 
	Section 11.15 Force Majeure

	 	 	44	 

EXHIBITS

	 	 	 
	Exhibit A

	 	Eligibility Criteria for Residential Mortgage Loans
	 
	Exhibit B

	 	Reserved
	 
	Exhibit C

	 	Mortgage File and Mortgage Loan Servicing File Contents
	 
	Exhibit D

	 	Transfer Instructions
	 
	Exhibit E

	 	Form of Limited Corporate Resolution
	 
	Exhibit F

	 	Custodial Account Letter Agreement
	 
	Exhibit G

	 	Escrow Account Letter Agreement
	 
	Exhibit H

	 	Form of Remittance Schedule
	 
	Exhibit I

	 	Servicer’s Responsibilities Upon Transfer of Servicing
	 
	Exhibit J

	 	List of Reports
	 
	Exhibit K

	 	Form of Custodial Agreement
	 
	Exhibit L

	 	Reconstitution Form Opinion

iv

 

LOAN SERVICING AGREEMENT

     THIS LOAN SERVICING AGREEMENT dated as of February 1st, 2004 (the “Agreement”) by
and between RWT Holdings, Inc. and/or its assigns (“Owner”), a Delaware corporation with its
principal office located at One Belvedere Place, #310 Mill Valley, California, 94941, and GMAC
Mortgage Corporation, a Pennsylvania corporation with its principal office located at 100 Witmer
Road, Horsham, PA 19044-0963 (“Servicer”).

Recitals

     A. Owner desires to retain Servicer from time to time to service certain residential mortgage
loans that Owner may make or acquire; and

     B. Owner and Servicer desire to establish the terms and conditions on which Servicer shall
service mortgage loans on behalf of Owner.

     NOW, THEREFORE, in consideration of the mutual promises contained herein and for other good
and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the
parties hereto hereby agree as follows:

ARTICLE I

DEFINITIONS

Section 1.01 Definitions

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

     “Agreement”: This Loan Servicing Agreement, including all exhibits hereto, and all amendments
hereof and supplements hereto.

     “Ancillary Income”: All income derived from the Mortgage Loans other than servicing fees and
prepayment fees, including without limitation late charges and other incidental fees and fees,
commissions or expense reimbursements relating to the placement of insurance, and such other income
defined as Ancillary Income in this Agreement.

     “Applicable Requirements”: As of the time of reference, with respect to the Mortgage Loans,
REO Property and the servicing of the Mortgage Loans, all of the following: (i) all contractual
obligations of Owner under the Mortgage Loan, for which Owner or, by virtue of this Agreement,
Servicer is responsible for or at any time was or hereafter will be responsible; (ii) all
applicable federal, state and local legal and regulatory requirements (including, without
limitation, statutes, rules, regulations and ordinances and including the Privacy Requirements)
binding upon Owner or Servicer; (iii) all other applicable requirements and guidelines of each
governmental agency, board, commission, instrumentality and other governmental body or officer
having jurisdiction; (iv) all other applicable judicial and administrative judgments, orders,
stipulations, awards, writs and injunctions; (v), the applicable provisions of the Fannie Mae
Servicing Guide for

1

 

whole loan servicing that would apply if Fannie Mae were the Investor for such Mortgage Loans,
to the extent not otherwise inconsistent with this Agreement; and (vi) Customary Servicing
Procedures.

     “Assignment of Mortgage”: An assignment of the Mortgage, notice of transfer or equivalent
instrument in recordable form (but not recorded) that, when properly completed and recorded, is
sufficient under the laws of the jurisdiction wherein the related Mortgaged Property is located to
reflect of record the sale of the Mortgage Loan to the Owner.

     “Assumed Principal Balance”: As to each Mortgage Loan as of any date of determination, (i)
the principal balance of the Mortgage Loan outstanding as of the Determination Date after
application of payments due on or before the Determination Date, whether or not received, minus
(ii) all amounts previously distributed to the Owner with respect to the Mortgage Loan pursuant to
Section 5.01 and representing payments or other recoveries of principal.

     “Business Day”: Any day other than (i) a Saturday or Sunday, (ii) a day on which banking or
savings and loan institutions in the Commonwealth of Pennsylvania or the States of California, Iowa
or Connecticut are authorized or obligated by law or executive order to be closed, or (iii) a day
that is a company holiday at the location of the main offices of either Owner or Servicer.

     “Condemnation Proceeds”: All awards or settlements in respect of a taking of an entire
Mortgaged Property by exercise of the power of eminent domain or condemnation.

     “Custodial Account”: The separate account or accounts created and maintained pursuant to
Section 4.04.

     “Custodial Agreement”: The agreement governing the retention of the originals of each
Mortgage Note, Mortgage, Assignment of Mortgage and other Mortgage Loan Documents, a form of which
is annexed hereto as Exhibit K.

     “Custodian”: The custodian under the Custodial Agreement, or its successor in interest or
assigns, or any successor to the Custodian under the Custodial Agreement as provided therein.

     “Customer Information”: Any personally identifiable information in any form (written
electronic or otherwise) relating to a Mortgagor, including, but not limited to: a Mortgagor’s
name, address, telephone number, Mortgage Loan number, Mortgage Loan payment history, delinquency
status, insurance carrier or payment information, tax amount or payment information; the fact that
the Mortgagor has a relationship with the servicer of such Mortgagor’s Mortgage Loan; and any other
non-public personally identifiable information.

     “Customary Servicing Procedures”: Those mortgage servicing practices of mortgage lending
institutions that service mortgage loans of the same type as such Mortgage Loan in the jurisdiction
where the related Mortgage Property is located, exercising the same care in performing those
practices that the Servicer customarily employs and exercises in servicing and administering
mortgage loans for its own account (including compliance with all applicable federal, state and
local laws).

     “Cutoff Date”: The last Business Day of the month.

2

 

     “Determination Date”: The 15th day (or if such last day is not a Business Day, the
Business Day immediately preceding such 15th day) of the month immediately preceding the related
Remittance Date.

     “Due Date”: The day of the month on which each Monthly Payment is due on a Mortgage Loan,
exclusive of any days of grace.

     “Due Period”: With respect to each Remittance Date, the period beginning on the second day of
the month preceding the month of the Remittance Date, and ending on the first day of the month of
the Remittance Date.

     “Effective Date”: The date that Servicer physically assumes in accordance with the Transfer
Instructions.

     “Eligibility Criteria”: The eligibility criteria for residential mortgage loans to be
delivered by Owner after the initial Effective Date to be serviced by Servicer under this
Agreement, as specified in Exhibit A hereto, as the same may be amended from time to time with the
mutual consent of both parties.

     “Eligible Depository Institution”: An account or accounts maintained with a depository
institution which is acceptable to Fannie Mae for establishment of custodial accounts.

     “Eligible Investments”: Any one or more of the following obligations or securities:

     (i) obligations of or guaranteed as to principal and interest by the (a) United States,
Freddie Mac, Fannie Mae or any agency or instrumentality of the United States when such
obligations are backed by the full faith and credit of the United States; provided, that
such obligations of Freddie Mac or Fannie Mae shall be limited to senior debt obligations
and mortgage participation certificates except that investments in mortgage-backed or
mortgage participation securities with yields evidencing extreme sensitivity to the rate of
principal payments on the underlying mortgages shall not constitute Eligible Investments
hereunder;

     (ii) repurchase agreements (which must be fully collateralized) on obligations
specified in clause (i) maturing not more than one month from the date of acquisition
thereof;

     (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;

     (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

3

 

are rated at least A-1 or P-1 by S & P Corporation (“S & P”) and Moody’s Investor
Services, Inc. (“Moody’s”), respectively;

     (v) obligations of major foreign commercial banks, limited to Eurodollar deposits, time
deposits, certificate of deposits, bankers acceptances, Yankee Bankers acceptances and
Yankee certificate of deposits;

     (vi) obligations of major foreign corporations limited to commercial paper, auction
rate preferred stock, medium term notes, master notes and loan participations;

     (vii) money market funds comprised of securities described in the aforementioned
clauses (i-iv) and having a stated policy of maintaining a set net asset value per share (a
“Money Market Fund”). All Money Market Funds will conform to Rule 2a-7 of the Investment
Company Act of 1940;

     (viii) GMAC Variable Denomination Demand Note Program which constitutes unsecured,
senior debt obligations of General Motors Acceptance Corporation as outlined in the
Prospectus dated March 31, 1995 (the “Demand Note Program”). Investments in the Demand Note
Program are subject to:

     (a) GMAC’s short term unsecured debt must be rated (i) at least A-1 by S & P
and at least P-2 by Moody’s or (ii) at least A-2 by S & P and at least P-1 by
Moody’s; and

     (b) GMAC’s long term unsecured debt must be rated (i) not less than A- by S & P
and (ii) not less than A3 by Moody’s;

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 with respect to such instrument provide a yield to
maturity greater than 120% of the yield to maturity at par of such underlying obligations.

     “Escrow Account”: The separate account or accounts created and maintained pursuant to Section
4.06.

     “Escrow Payments”: The amounts constituting taxes, assessments, mortgage insurance premiums,
fire and hazard insurance premiums and other payments required to be escrowed by the Mortgagor with
the mortgagee pursuant to any Mortgage Loan.

     “Event of Default”: Any one of the conditions or circumstances enumerated in Section 9.01.

     “Fannie Mae”: The Federal National Mortgage Association or any successor organization.

     “FDIC”: The Federal Deposit Insurance Corporation or any successor organization.

     “Fidelity Bond”: A fidelity bond required to be maintained by the Servicer pursuant to
Section 4.13.

4

 

     “Freddie Mac”: The Federal Home Loan Mortgage Corporation or any successor organization.

     “GMAC”: GMAC Mortgage Corporation, a Pennsylvania corporation, its successors and assigns.

     “High Cost Loan”: A residential mortgage loan that is subject to the anti-predatory
prohibitions of state or local laws and regulations by virtue of the loan’s high interest rate or
total points and fees.

     “HOEPA”: The Home Ownership Equity Protection Act.

     “HUD”: The Department of Housing and Urban Development or any successor organization.

     “Index”: With respect to any Adjustable Rate Mortgage Loan, the index set forth in the
applicable Mortgage Note which is added to the gross margin to determine the Mortgage Interest Rate
on each interest adjustment date.

     “Insurance Proceeds”: Proceeds of any Primary Insurance Policy, title policy, hazard policy
or other insurance policy covering a Mortgage Loan, if any, 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 Customary Servicing Procedures or in accordance with the terms of the related
Mortgage Loan or applicable law.

     “Investor”: An assign (including any trustee) of RWT Holdings, Inc.’s legal interest in a
Mortgage Loan.

     “Liquidation Proceeds”: Cash, other than Insurance Proceeds, Condemnation Proceeds or REO
Disposition Proceeds, received in connection with the liquidation of a defaulted Mortgage Loan,
whether through the sale or assignment of the Mortgage Loan, trustee’s sale, foreclosure sale or
otherwise.

     “Loss Mitigation Activity”: To the extent not ordinary to the servicing function, an
initiative taken by the Servicer (sometimes on cooperation with the Mortgagor), with the prior
written consent of Owner if the Servicer reasonably expects the impact to the Owner to be greater
than $5,000 (which consent shall be deemed to have been provided if no response from Owner is
provided within ten (10) Business Days after written notice to Owner of Servicer’s intent to
undertake such initiative), that might result in a less costly alternative to the Owner than
foreclosure. Loss Mitigation Activity can include temporary forbearance, pre-sales, loan
modifications, loan repayments, accepting a deed-in-lieu and deficiency judgments.

     “Monthly Payment”: The scheduled monthly payment of principal and interest on a Mortgage Loan
which is payable by a Mortgagor under the related Mortgage Note.

5

 

     “Mortgage”: The mortgage, deed of trust or other instrument creating a first lien on or first
priority ownership interest in an estate in fee simple, or a leasehold estate, in real property
securing a Mortgage Note, including any rider incorporated by reference therein.

     “Mortgage File”: The items pertaining to a particular Mortgage Loan referred to in Exhibit C
annexed hereto, which are delivered to the Custodian and not otherwise contained in the Mortgage
Loan Servicing File, and any additional documents required to be added to the Mortgage File
pursuant to this agreement.

     “Mortgage Interest Rate”: The annual rate at which interest accrues on any Mortgage Loan in
accordance with the provisions of the related Mortgage Note.

     “Mortgage Loan”: An individual mortgage loan that is the subject of this Agreement, and those
that are made subject to this Agreement after the initial Effective Date pursuant to the provisions
specified herein.

     “Mortgage Loan Documents”: With respect to a Mortgage Loan, the original related Mortgage
Note with applicable addenda, riders allonges or modifications, the original related Mortgage and
the originals of any required addenda, riders allonges or modifications, the original related
Assignment and any original intervening related Assignments, the original related title insurance
policy, related PMI policy, if any, and the related appraisal report.

     “Mortgage Loan Remittance Rate”: With respect to each Mortgage Loan, the annual rate of
interest remitted to the Owner, which shall be equal to the related Mortgage Interest Rate minus
the Servicing Fee.

     “Mortgage Loan Servicing File”: With respect to each Mortgage Loan, the file retained by the
Servicer consisting of originals of all documents in the Mortgage File which are not delivered to
the Custodian and copies of the Mortgage Loan Documents listed in the Custodial Agreement the
originals of which are delivered to the Custodian pursuant to Section 2.04 as more fully set forth
in Exhibit C.

     “Mortgage Note”: The note or other evidence of the indebtedness of a Mortgagor secured by the
related Mortgage.

     “Mortgaged Property”: The real property and improvements subject to a Mortgage, constituting
security for repayment of the debt evidenced by the related Mortgage Note.

     “Mortgagor”: The obligor on a Mortgage Note.

     “New Loan Data File”: With respect to each Mortgage Loan delivered after the initial Effective
Date by Owner to be serviced by Servicer under this Agreement, the data file produced by Owner
pursuant to the Transfer Instructions that is used to enable Servicer to set up each Mortgage Loan
on its servicing system.

     “Officers’ Certificate”: A certificate signed by the President, a Senior Vice President or a
Vice President and by the Treasurer or the Secretary or one of the Assistant Secretaries of the

6

 

Servicer, or by other duly authorized officers or agents of the Servicer, and delivered to the
Owner as required by this Agreement.

     “Opinion of Counsel”: A written opinion of counsel, who may be salaried counsel employed by
the Servicer.

     “Owner”: RWT Holdings, Inc. and/or its assigns.

     “P&I Advance”: As to any Mortgage Loan, any advance made by the Servicer pursuant to Section
5.03

     “Pass-Through Transfer”: The sale or transfer of some or all of the Mortgage Loans by the
Owner to a trust to be formed as part of a publicly issued or privately placed mortgage-backed
securities transaction.

     “Person”: Any individual, corporation, partnership, joint venture, association, joint-stock
Servicer, trust, unincorporated organization or government or any agency or political subdivision
thereof.

     “Prepayment Interest Shortfall”: With respect to any Remittance Date, for each Mortgage Loan
that was the subject of a Principal Prepayment during the related Principal Prepayment Period, an
amount equal to the excess of one month’s interest at the applicable Mortgage Loan Remittance Rate
on the amount of such Principal Prepayment over the amount of interest (adjusted to the Mortgage
Loan Remittance Rate) actually paid by the related Mortgagor with respect to such Principal
Prepayment Period.

     “Primary Insurance Policy”: With respect to each Mortgage Loan, the primary policy of
mortgage insurance in effect, or any replacement policy therefore obtained by the Servicer pursuant
to Section 4.08.

     “Principal Prepayment”: Any payment or other recovery of principal on a Mortgage Loan, full
or partial, which is received in advance of its scheduled Due Date, and which is not accompanied by
an amount of interest representing scheduled interest due on any date or dates in any month or
months subsequent to the month of prepayment.

     “Principal Prepayment Period”: The calendar month preceding the month of the applicable
Remittance Date.

     “Privacy Requirements”: Means the obligations imposed by (i) Title V of the Gramm-Leach-Bliley
Act, 15 U.S.C. § 6801 et seq.; (ii) the applicable federal regulations implementing such act and
codified at 12 CFR Parts 40, 216, 332, 573, and/or 16 CFR Part 313; (iii) Interagency Guidelines
Establishing Standards For Safeguarding Borrower Information published in final form on February 1,
2001 (such final guidelines and/or rules the “Interagency Guidelines”) to establish and maintain an
information Security Program; and (iv) other applicable federal, state and local laws, rules,
regulations, and orders relating to the privacy and security of Customer Information, including the
federal Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq., and similar state laws.

7

 

     “Qualified Insurer”: A mortgage guaranty insurance Insurer duly authorized and licensed where
required by law to transact mortgage guaranty insurance business and approved as an insurer by
Fannie Mae or Freddie Mac.

     “Rating Agencies” or “Rating Agencies” means any nationally recognized statistical credit
agency that at the time of any determination thereof has outstanding a rating on one or more
classes of mortgage-backed securities or asset-backed securities at the request of any issuer of
mortgage-backed securities or asset-backed securities.

     “Reconstitution”: Either a Whole Loan Transfer or a Pass-Through Transfer.

     “Reconstitution Date”: The date on which any or all of the Mortgage Loans serviced under this
Agreement shall be removed from this Agreement and reconstituted as part of a Whole Loan Transfer
or Pass Through Transfer pursuant to Section 10.03 hereof. The Reconstitution Date shall be such
date designated by the Owner with thirty (30) days prior notice to Servicer.

     “Record Date”: The close of business of the last Business Day of the month preceding the
month of the related Remittance Date.

     “REMIC”: A real estate mortgage investment conduit, as such term is defined by the Internal
Revenue Code of 1986, as amended.

     “Remittance Date”: The 18th day of any month, beginning on the 18th day
of the month after the month of the applicable Transfer Date, or if such 18th day is not
a Business Day, the first Business Day immediately preceding.

     “REO Disposition”: The final sale by the Servicer of a Mortgaged Property acquired by the
Servicer in foreclosure or by deed in lieu of foreclosure.

     “REO Disposition Proceeds”: All amounts received with respect to an REO Disposition pursuant
to Section 4.14.

     “REO Property”: A Mortgaged Property acquired by the Servicer through foreclosure or deed in
lieu of foreclosure, as described in Section 4.14.

     “Servicer”: GMAC Mortgage Corporation, a Pennsylvania corporation, or its successor in
interest or any successor to the Servicer under this Agreement appointed as herein provided.

     “Servicing Advances”: All customary, reasonable and necessary “out of pocket” costs and
expenses incurred in the performance by the Servicer of its servicing obligations, including, but
not limited to, the cost of (a) the preservation, restoration and protection of the Mortgaged
Property, (b) any enforcement or judicial proceedings, including foreclosures, (c) the management
and liquidation of REO Property pursuant to Section 4.14, and (d) compliance with the Servicer’s
obligations described in Sections 4.08 and 4.10.

     “Servicing Compensation “: The amount of fees payable to the Servicer for the services
provided in this Agreement.

8

 

     “Servicing Fee”: With respect to each Mortgage Loan, the amount the Owner shall pay to the
Servicer, which shall, for a period of one full month, be equal to one-twelfth of the product of
(a) the Servicing Fee Rate and (b) the Assumed Principal Balance as of the first day of the related
Due Period. The obligation of the Owner to pay the Servicing Fee is limited to, and the Servicing
Fee is payable solely from, the interest portion (including recoveries with respect to interest
from Liquidation Proceeds, to the extent permitted hereunder) of Monthly Payments collected by the
Servicer, or as otherwise provided hereunder.

     “Servicing Fee Rate”: The Servicing Fee Rate shall be 0.375%.

     “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 Owner upon request, as such list may from time to time be
amended.

     “Servicing Rights”: With respect to each Mortgage Loan, any and all of the following: (a)
all rights to service the Mortgage Loan; (b) all rights to receive servicing fees, additional
servicing compensation (including without limitation any late fees, assumption fees, penalties or
similar payments with respect to the Mortgage Loan, and income on escrow accounts or other receipts
on or with respect to the Mortgage Loan, but excluding all prepayment penalties), reimbursements or
indemnification for servicing the Mortgage Loan, and any payments received in respect of the
foregoing and proceeds thereof; (c) the right to collect, hold and disburse escrow payments or
other similar payments with respect to the Mortgage Loans and any amounts actually collected with
respect thereto and to receive interest income on such amounts to the extent permitted by
applicable law; (d) all accounts and other rights to payment related to any of the property
described in this paragraph; (e) possession and use of any and all Mortgage Loan Servicing Files
pertaining to the Mortgage Loans or pertaining to the past, present or prospective servicing of the
Mortgage Loans; (f) all rights and benefits relating to the direct solicitation of the related
Mortgagors for products and services or modification of the Mortgage Loans and attendant right,
title and interest in and to the list of such Mortgagors and data relating to their respective
Mortgage Loans; (g) all rights, powers and privileges incident to any of the foregoing; and (h) all
agreements or documents creating, defining or evidencing any of the foregoing rights to the extent
they relate to such rights.

     “Transfer Instructions”: The instructions set forth on Exhibit D, detailing the procedures
pursuant to which Servicer and Owner shall effect the assumption of the servicing obligations by
Servicer, as the same may be amended or supplemented from time to time with respect to Mortgage
Loans delivered on or after the initial Effective Date to be serviced by Servicer under this
Agreement.

     “WILMA File”: A schedule annexed to each New Loan Data File as specified in the Transfer
Instructions.

     “Whole Loan Transfer”: Any sale or transfer of some or all of the Mortgage Loans by the Owner
to a third party, which transfer is not a Pass Through Transfer.

9

 

ARTICLE II

POSSESSION OF MORTGAGE LOAN SERVICING FILES

Section 2.01 Servicing of Mortgage Loans.

     From and after each related Effective Date, the Servicer does hereby agree to service the
Mortgage Loans on behalf of the Owner pursuant to the terms of this Agreement. The rights of the
Owner to receive payments with respect to the Mortgage Loans shall be as set forth in this
Agreement. Servicer shall be deemed to be the owner of the Servicing Rights.

			
	Section 2.02	 	Conveyance of Mortgage Loan Servicing Files; Possession of Mortgage Loan Servicing Files.

     The Owner shall deliver the Mortgage Loan Servicing Files to the Servicer in accordance with
the Transfer Instructions. The contents of each Mortgage Loan Servicing File are and shall be held
in trust by the Servicer for the benefit of the Owner as the owner thereof and the Servicer’s
possession of each Mortgage Loan Servicing File so retained is at the will of the Owner for the
sole purpose of servicing the related Mortgage Loan, and such retention and possession by the
Servicer is in a custodial capacity only. The Mortgage Loan Servicing File may be retained in
microfilm, microfiche, optical storage or magnetic media in lieu of hard copy. The Servicer shall
maintain records confirming the Owner’s ownership interest in the Mortgage Loan Servicing File.
The Servicer shall release from its custody the contents of any Mortgage Loan Servicing File only
in accordance with written instructions from the Owner, unless such release is required as
incidental to the Servicer’s servicing of the Mortgage Loans. Owner may request the release of the
contents of any Mortgage Loan Servicing File at any time; Servicer shall deliver the requested
contents within five (5) business days of its receipt of Owner’s written request, and Owner shall
reimburse Servicer for Servicer’s reasonable out of pocket expenses in connection with such
delivery.

Section 2.03 Books and Records.

     Record title to each Mortgage and the related Mortgage Note shall continue in the name of the
Owner, provided, however, that, subject to Customary Servicing Procedures, Servicer shall have no
responsibility or liability under this Agreement for acts, errors or omissions resulting from
Servicer’s lack of record title in each Mortgage and the related Mortgage Notes. All rights
arising out of the Mortgage Loans including, but not limited to, all funds received on or in
connection with a Mortgage Loan shall be held by the Servicer in trust for the benefit of the Owner
as the owner of the Mortgage Loans, subject to subsequent deduction of amounts to which the
Servicer is entitled pursuant to the terms of this Agreement.

Section 2.04 Custodial Agreement: Delivery of Documents.

     The Owner shall deliver to the Custodian those Mortgage Loan Documents as required by Exhibit
C to this Agreement with respect to each Mortgage Loan. The Custodian will certify its receipt of
all such Mortgage Loan Documents required to be delivered pursuant to the Custodial Agreement, as
evidenced by the Initial Certification of the Custodian in the form annexed to the Custodial
Agreement. The Owner will be responsible for the fees and expenses of the Custodian.

     The Servicer shall forward to the Custodian original documents evidencing an assumption,
modification, consolidation or extension of any Mortgage Loan entered into in accordance with
Section 4.01 within one (1) week of their execution, provided, however, that the Servicer shall

10

 

provide the Custodian with a certified true copy of any such document submitted for
recordation within ten (10) days of its execution, and shall provide the original of any document
submitted for recordation or a copy of such document certified by the appropriate public recording
office to be a true and complete copy of the original within sixty days of its submission for
recordation.

Section 2.05 Tax Service/Flood Service.

     The Servicer shall obtain, at Owner’s cost and expense, a valid fully paid, freely
transferable, life of loan, tax service contract and flood service contract for each Mortgage Loan
with a vendor selected by the Servicer as specified in the Transfer Instructions. If Owner
delivers, or causes to be delivered, existing tax service contracts or flood service contracts for
any Mortgage Loan, the Servicer may convert such contracts, at Owner’s cost and expense, to one
issued by the vendor selected by Servicer.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

Section 3.01 General Representations and Warranties of the Servicer and Owner.

     Each of the Servicer and Owner hereby represents and warrants to the other that, as of the
initial and each Effective Date:

     (a) Due Organization and Authority. With respect to Servicer, it is a corporation
duly organized, validly existing and in good standing under the laws of the state of incorporation
and has all licenses necessary to carry on its business as now being conducted and is licensed,
qualified and in good standing in each state where a Mortgaged Property is located if the laws of
such state require licensing or qualification in order to conduct business of the type conducted by
it, and in any event it is in compliance with the laws of any such state to the extent necessary to
ensure the enforceability of the related Mortgage Loan and the servicing of such Mortgage Loan in
accordance with the terms of this Agreement. With respect to Owner, it is a corporation,
organized, existing and in good standing under the laws of the State of Delaware. With respect to
each, it has the full corporate power and authority to execute and deliver this Agreement and to
perform in accordance herewith; the execution, delivery and performance of this Agreement by it and
the consummation of the transactions contemplated hereby have been duly and validly authorized;
With respect to each, this Agreement evidences the valid, binding and enforceable obligation of it;
and all requisite corporate action has been taken by it to make this Agreement valid and binding
upon it in accordance with its terms;

     (b) No Conflicts. Neither the execution and delivery of this Agreement, or the
transactions contemplated hereby, nor the fulfillment of or compliance with the terms and
conditions of this Agreement will conflict with or result in a breach of any of its terms, articles
of incorporation or by-laws or any legal restriction or any agreement or instrument to which it is
now a party or by which it is bound, or constitute a default or result in the violation of any law,
rule, regulation, order, judgment or decree to which it or its property is subject;

     (c) Ability to Service. With respect to the Servicer only, the Servicer is an
approved seller/servicer of conventional residential mortgage loans for Fannie Mae or Freddie Mac,
with the

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facilities, procedures, and experienced personnel necessary for the sound servicing of
mortgage loans of the same type as the Mortgage Loans. The Servicer is in good standing to service
mortgage loans for Fannie Mae or Freddie Mac and no event has occurred with respect to the Servicer
which would make the Servicer unable to comply with eligibility requirements or which would require
notification to either Fannie Mae or Freddie Mac;

     (d) No Litigation Pending. There is no action, suit, proceeding or investigation
pending or threatened against it which, either in any one instance or in the aggregate, may result
in any material adverse change in the business, operations, financial condition, properties or
assets of it, or in any material impairment of the right or ability of it to carry on its business
substantially as now conducted, or in any material liability on the part of it, or which would draw
into question the validity of this Agreement or the Mortgage Loans or of any action taken or to be
contemplated herein, or which would be likely to impair materially the ability of it to perform
under the terms of this Agreement; and

     (e) No Consent Required. No consent, approval, authorization or order of any court or
governmental agency or body is required for the execution, delivery and performance by it of or
compliance by it with this Agreement, or if required, such approval has been obtained prior to the
applicable Effective Date.

Section 3.02 Representations, Warranties and Covenants of Owner.

     The Owner hereby represents and warrants as of the applicable Effective Date with respect to
each Mortgage loan, and covenants to the Servicer that:

     (a) Mortgage Loans as Described. The information set forth in WILMA File attached to
each New Loan Data File is true and correct in all material respects.

     (b) Delivery of Books and Records. Owner will, on or before the applicable Effective
Date, deliver, or cause to be delivered, to the Servicer or any custodian, as applicable, all of
the books, records, data, files and Mortgage Loan Servicing Files, including records on microfiche
or its equivalent, reasonably required by the Servicer to document and service each Mortgage Loan;
such books, records, data, files and documents shall contain all of the items (including but not
limited to hazard insurance policies, flood insurance policies and private mortgage insurance
policies) which are required by applicable law and Customary Servicing Procedures to service the
Mortgage Loans, are true, accurate and complete in all material respects.

     (c) Flood Insurance. If any of the Mortgage Loans are secured by Mortgaged Properties
located in Federal Emergency Management Agency designated flood areas, then (to the extent required
by Applicable Requirements) flood insurance policies are or will be in full force and effect in the
amounts required by Owner under Applicable Requirements.

     (d) Hazard Insurance. All Mortgaged Properties are insured against fire and have
extended coverage insurance in the amounts required by [Fannie Mae]; all insurance premiums on such
insurance policies have been or will have been paid in a timely manner; and there have been no fire
losses on the Mortgaged Properties where Owner’s estimate of loss is materially greater than the

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net recovery from the fire insurance carrier. To Owner’s knowledge, there have been no fire
losses on the Mortgaged Properties as to which there is a pending coinsurance claim.

     (e) High Cost Loans. No Mortgage Loan is a High Cost Loan or subject to HOEPA.

     (f) Tax Contracts. All Mortgage Loans have a fully paid, freely transferable tax
service contract. If a tax service contract is not provided, Owner shall reimburse Servicer for
its cost to obtain such a contract. Owner shall reimburse Servicer for any expenses incurred for
transferring existing tax contracts.

Section 3.03 Survival.

     The representations and warranties of the Owner and the Servicer in this Article III shall
survive the applicable Effective Date.

ARTICLE IV

ADMINISTRATION AND SERVICING OF MORTGAGE LOANS

Section 4.01 Standards of Servicer.

     The Servicer, as independent contract servicer, shall service and administer the Mortgage
Loans for the benefit of the Owner in accordance with the terms of this Agreement, Applicable
Requirements and in conformity with Customary Servicing Procedures. In performing its obligations
hereunder, the Servicer shall exercise no less than the same care that it customarily employs and
exercises in servicing and administering mortgage loans for its own account, but shall perform such
obligations without regard to the Servicer’s obligation to make Servicing Advances, or to the
Servicer’s right to receive compensation for its services hereunder.

     From and after the initial Effective Date, the Servicer shall assume responsibility under this
Agreement to service and administer additional Mortgage Loans upon the delivery, in accordance with
the Transfer Instructions, of the related New Loan Data File and all related Mortgage Loan
documentation by the Owner, provided that any new Mortgage Loans that the Owner desires to make
subject to this Agreement meet the Eligibility Criteria then in effect. The Owner shall provide
the New Loan Data File for each Mortgage Loan to the Servicer promptly upon purchase or origination
of the Mortgage Loan by the Owner, as specified in the Transfer Instructions. The Owner shall
notify the Servicer of any changes in the information contained in the New Loan Data File as
specified in the Transfer Instructions. The Owner agrees to provide the Servicer, within two (2)
Business Days after the Servicer’s request, copies of the Mortgage Note, the Mortgage or any other
documents the Owner has with respect to a Mortgage Loan that the Servicer deems reasonably
necessary in connection with its performance of the servicing of said Mortgage Loan. The Servicer
shall cooperate with the Owner in connection with any transfer of the Servicing Rights with respect
to the Mortgage Loans.

     Subject to the above-described servicing standards, the specific requirements and prohibitions
of this Agreement and the respective Mortgage Loans, and the provisions of any Primary Insurance
Policy and applicable law, the Servicer shall have full power and authority, acting alone, to do
any and all things in connection with such servicing and administration which the

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Servicer may deem necessary or desirable. Without limiting the generality of the foregoing,
the Servicer shall, and is hereby authorized and empowered to (i) execute and deliver on behalf of
itself and the Owner, any and all instruments of satisfaction or cancellation, or of partial or
full release, discharge and all other comparable instruments, with respect to the Mortgage Loan and
with respect to the Mortgaged Property and (ii) waive, modify or vary any term of any Mortgage Loan
or consent to the postponement of strict compliance with any such term or in any manner grant
indulgence to the related Mortgagor if in the Servicer’s reasonable and prudent determination such
waiver, modification, postponement or indulgence is in the interests of the Owner and is not
prohibited by a Primary Insurance Policy; provided, however, that the Servicer may not, unless it
has obtained the consent of the Owner, permit any modification with respect to any Mortgage Loan
that would vary the Mortgage Interest Rate, defer or forgive the payment of interest or of any
principal, reduce the outstanding principal amount (other than as a result of its actual receipt of
payment of principal on), extend the final maturity date of such Mortgage Loan, or accept
substitute or additional collateral or release any collateral for a Mortgage Loan. Notwithstanding
anything to the contrary in the this Agreement, in the event of a Pass-Through Transfer for which
Servicer continues to service any Mortgage Loan, the Servicer shall not make or permit any
modification, waiver or amendment of any term of a Mortgage Loan that could cause any REMIC holding
such Mortgage Loan to fail to qualify as a REMIC or result in the imposition of any tax under
Section 860F(a) or 860G(d) of the Code on any REMIC holding such Mortgage Loan. The Owner shall
furnish the Servicer with a corporate resolution executed by the Board of Directors of Owner and
appointing certain employees of Servicer to be officers of Owner for the limited purpose of
executing certain documents in connection with Servicer’s performance of its obligations under this
Agreement, in the form of Exhibit E hereto, no later than the initial Effective Date and if
reasonably required by the Servicer, such other documents necessary or appropriate to enable the
Servicer to carry out its servicing and administrative duties under this Agreement.

     The Servicer shall perform all of its servicing responsibilities hereunder and may cause a
subservicer to perform any of its responsibilities on its behalf, but the use by the Servicer of a
subservicer shall not release the Servicer from any of its obligations hereunder and the Servicer
shall remain responsible hereunder for all acts and omissions of each subservicer as fully as if
such acts and omissions were those of the Servicer. The Servicer shall pay all fees and expenses
of each subservicer from its own funds.

     At the cost and expense of the Servicer, without any right of reimbursement from the Custodial
Account, the Servicer shall be entitled to terminate the rights and responsibilities of a
subservicer and arrange for any servicing responsibilities to be performed by a successor
subservicer, provided, however, that nothing contained herein shall be deemed to prevent or
prohibit the Servicer, at the Servicer’s option, from electing to service the related Mortgage
Loans itself. In the event that the Servicer’s responsibilities and duties as servicer under this
Agreement are terminated pursuant to Section 8.03, 9.01 or 10.01, and if requested to do so by the
Owner, the Servicer shall at its own cost and expense terminate the rights and responsibilities of
each subservicer effective as of the date of termination of the Servicer. The Servicer shall pay
all fees, expenses or penalties necessary in order to terminate the rights and responsibilities of
each subservicer from the Servicer’s own funds without reimbursement from the Owner.

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     Notwithstanding any of the provisions of this Agreement relating to agreements or arrangements
between the Servicer and a subservicer or any reference herein to actions taken through a
subservicer or otherwise, the Servicer shall not be relieved of its obligations to the Owner and
shall be obligated to the same extent and under the same terms and conditions as if it alone were
servicing and administering the Mortgage Loans. The Servicer shall be entitled to enter into an
agreement with a subservicer for indemnification of the Servicer by the subservicer and nothing
contained in this Agreement shall be deemed to limit or modify such indemnification.

     Any subservicing agreement, and any other transactions or services relating to the Mortgage
Loans involving a subservicer shall be deemed to be between such subservicer and Servicer alone,
and the Owner shall have no obligations, duties or liabilities with respect to such subservicer
including no obligation, duty or liability of Owner to pay such subservicer’s fees and expenses.
For purposes of distributions and advances by the Servicer pursuant to this Agreement, the Servicer
shall be deemed to have received a payment on a Mortgage Loan when a subservicer has received such
payment.

Section 4.02 Liquidation of Mortgage Loans; Servicing Advances and Foreclosure.

     If any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01 is not
paid when the same becomes due and payable, or if the Mortgagor fails to perform any other covenant
or obligation under the Mortgage Loan and such failure continues beyond any applicable grace
period, the Servicer shall take such action as it shall deem to be in the best interests of the
Owner. If any payment due under any Mortgage Loan and not postponed pursuant to Section 4.01
remains delinquent for a period of 90 days or more, the Servicer shall (a) act in the best
interests of the Owner, and such action may include the commencement of foreclosure proceedings or
the sale of such Mortgage Loan, (b) if the Servicer commences foreclosure proceedings, notify the
Owner thereof on the monthly remittance report delivered pursuant to Section 5.02 on the first
Remittance Date following such commencement and (c) respond to reasonable inquiries of the Owner
with respect to the Mortgage Loan or related REO Property. Notwithstanding the foregoing, the
Servicer may not sell a delinquent Mortgage Loan unless it has obtained the consent of the Owner.
The Owner may instruct the Servicer to commence foreclosure proceedings on any Mortgage Loan for
which any payment remains delinquent for a period of 120 days or more. If the Servicer has
commenced foreclosure proceedings, it shall notify the Owner as above provided and thereafter
periodically advise the Owner of the status of the foreclosure proceedings and follow the Owner’s
instructions in connection therewith.

     Whether in connection with the foreclosure of a Mortgage Loan or otherwise and prior to such
time as title to such Mortgaged Property is liquidated, the Servicer shall from its own funds make
all necessary and proper Servicing Advances; provided, however, that the Servicer is not required
to make a Servicing Advance unless the Servicer determines in the exercise of its good faith
reasonable judgment that such Servicing Advance would ultimately be recoverable from REO
Dispositions, Insurance Proceeds or Condemnation Proceeds (with respect to each of which the
Servicer shall have the priority described in Section 4.05 for purposes of withdrawals from the
Custodial Account). In the event that any Servicing Advance or any commitment to pay a Servicing
Advance in connection with any Mortgage Loan exceeds $5,000, the Servicer shall secure the written
approval of the Owner.

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     Notwithstanding anything to the contrary contained herein, in connection with a foreclosure or
acceptance of a deed in lieu of foreclosure, the Servicer shall have no obligation to commence
foreclosure proceedings or obtain title to Mortgage Property securing a Mortgage Loan as a result
of or in lieu of foreclosure or otherwise if (i) such Mortgage Loan is subject to the HOEPA or any
regulations related thereto, (ii) such Mortgage Loan qualifies as a High Cost Loan under a state
anti-predatory lending law or regulation, or (iii) a Mortgaged Property is contaminated by
hazardous or toxic substances or wastes. If the Owner requests an environmental inspection or
review of such Mortgaged Property, such an inspection or review is to be conducted by a qualified
inspector at the Owner’s expense. Upon completion of the inspection, the Servicer shall promptly
provide the Owner with a written report of the environmental inspection. In the event (a) the
environmental inspection report indicates that the Mortgaged Property is contaminated by hazardous
or toxic substances or wastes and (b) the Owner directs the Servicer to proceed with foreclosure or
acceptance of a deed in lieu of foreclosure, the Servicer shall be reimbursed for all reasonable
costs associated with such foreclosure or acceptance of a deed in lieu of foreclosure and any
related environmental clean up costs, as applicable, from the related Liquidation Proceeds, or if
the Liquidation Proceeds are insufficient to fully reimburse the Servicer, the Servicer shall be
entitled to be reimbursed from amounts in the Custodial Account pursuant to Section 4.05 hereof.
In the event the Owner directs the Servicer not to proceed with foreclosure or acceptance of a deed
in lieu of foreclosure, the Servicer shall be reimbursed for all Servicing Advances made with
respect to the related Mortgaged Property from the Custodial Account pursuant to Section 4.05
hereof.

Section 4.03 Collection of Mortgage Loan Payments.

     Continuously from the date hereof until the principal and interest on all Mortgage Loans are
paid in full, the Servicer will use reasonable efforts, in accordance with this Agreement, to
collect all payments due under each of the Mortgage Loans when the same shall become due and
payable, and will take reasonable care in ascertaining and estimating annual taxes, assessments,
fire and hazard insurance premiums, mortgage insurance premiums, and all other charges that, as
provided in any Mortgage, will become due and payable in order that the installments payable by
the Mortgagors will be sufficient to pay such charges as and when they become due and payable.

Section 4.04 Establishment of Custodial Account; Deposits in Custodial Account.

     The Servicer shall segregate and hold all funds collected and received pursuant to each
Mortgage Loan and REO Property separate and apart from any of its own funds and general assets and
shall establish and maintain one or more Custodial Accounts (collectively, the “Custodial
Account”), in the form of time deposit or demand accounts. The Custodial Account shall be
established with an Eligible Depository Institution. The creation of any Custodial Account shall
be evidenced by a letter agreement in the form of Exhibit F hereto. A copy of such certification
or letter agreement shall be furnished to the Owner upon request.

     The Servicer shall deposit in a mortgage clearing account on a daily basis and in the
Custodial Account no later than the second Business Day thereafter and retain therein:

     (i) all scheduled payments due and collected under the Mortgage Note after the
Effective Date on account of principal, including Principal Prepayments collected after the
Effective Date (and with respect to each full or partial Principal Prepayment, any

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Prepayment Interest Shortfall to the extent of the Servicer’s aggregate Servicing Fee
received with respect to the related Prepayment Period), on the Mortgage Loans;

     (ii) all payments collected on account of interest on the Mortgage Loans;

     (iii) all Liquidation Proceeds;

     (iv) all Insurance Proceeds, including amounts required to be deposited pursuant to
Section 4.10 and Section 4.11, other than proceeds to be held in the Escrow Account and
applied to the restoration or repair of the Mortgaged Property or released to the Mortgagor
in accordance with Customary Servicing Procedures, the Mortgage Loan documents or applicable
law;

     (v) all Condemnation Proceeds with respect to any Mortgaged Property which are not
released to the Mortgagor in accordance with Customary Servicing Procedures, the Mortgage
Loan documents or applicable law;

     (vi) any P&I Advances; and

     (vii) any amount required to be deposited in the Custodial Account pursuant to Sections
4.01, 4.11, 4.14, 4.17, 5.01 and 6.02.

The foregoing requirements for deposit in the Custodial Account shall be exclusive. Any interest
paid and investment income on funds deposited in the Custodial Account by the Eligible Depository
Institution shall accrue to the benefit of the Servicer and shall be considered Ancillary Income
(excluding prepayment penalties) payable in accordance with the terms of this Agreement. Payments
in the nature of late payment charges, fees for special services provided to a Mortgagor,
assumption fees and all other Ancillary Income may be retained by the Servicer and do not need to
be deposited in the Custodial Account..

     The Servicer may invest the funds in the Custodial Account in Eligible Investments designated
in the name of the Servicer for the benefit of the Owner, which shall mature not later than the
Business Day next preceding the Remittance Date next following the date of such investment (except
that (i) any investment in the institution with which the Custodial Account is maintained may
mature on such Remittance Date and (ii) any other investment may mature on such Remittance Date if
the Servicer shall advance funds on such Remittance Date, pending receipt thereof to the extent
necessary to make distributions to the Owner) and shall not be sold or disposed of prior to
maturity. Notwithstanding anything to the contrary herein and above, all income and gain realized
from any such investment shall be for the benefit of the Servicer and shall be considered Ancillary
Income payable in accordance with the terms of this Agreement. The amount of any losses incurred
in respect of any such investments shall be deposited in the Custodial Account by the Servicer out
of its own funds immediately as realized.

Section 4.05 Withdrawals From the Custodial Account.

     The Servicer shall, from time to time, withdraw funds from the Custodial Account for the
following purposes:

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     (i) to make payments to the Owner in the amounts and in the manner provided for in
Section 5.01;

     (ii) to reimburse itself for P&I Advances, the Servicer’s right to reimburse itself
pursuant to this subclause (ii) being limited to amounts received on the related Mortgage
Loan that represent payments of principal and/or interest respecting which any such P&I
Advance was made;

     (iii) to reimburse itself first for unreimbursed Servicing Advances and
second for unreimbursed P&I Advances, the Servicer’s right to reimburse itself
pursuant to this subclause (iii) with respect to any Mortgage Loan being limited to related
Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds, REO Disposition Proceeds
and such other amounts as may be collected by the Servicer from the Mortgagor or otherwise
relating to the Mortgage Loan, it being understood that, in the case of any such
reimbursement, the Servicer’s right thereto shall be prior to the rights of the Owner;

     (iv) to reimburse itself for unreimbursed Servicing Advances and advances of Servicer
funds made pursuant to Section 5.03 of this Agreement to the extent that such amounts are
nonrecoverable by the Servicer pursuant to subclause (iii) above

     (v) to reimburse itself for all expenses necessary for the proper operation, management
and maintenance of each REO Property, including the cost of maintaining any hazard insurance
pursuant to Section 4.10 and the fees of any managing agent of the Servicer or a
subservicer, it being understood that, in the case of any such expenditure or withdrawal
related to a particular REO Property, the amount of such expenditure or withdrawal from the
Custodial Account shall be limited to amounts on deposit in the Custodial Account with
respect to the related REO Property;

     (vi) to pay itself with respect to each Mortgage Loan the Servicing Compensation
pursuant to Section 6.03;

     (vii) to transfer funds to another Eligible Depository Institution in accordance with
Section 4.09 hereof;

     (viii) to remove funds inadvertently placed in the Custodial Account in error by the
Servicer; and

     (ix) to clear and terminate the Custodial Account upon the termination of this
Agreement.

     On each Remittance Date, the Servicer shall withdraw all funds from the Custodial Account.
The Servicer may use such withdrawn funds only for the purposes described in this Section 4.05.

Section 4.06 Establishment of Escrow Account; Deposits in Escrow Account.

     The Servicer shall segregate and hold all funds collected and received pursuant to each
Mortgage Loan which constitute Escrow Payments separate and apart from any of its own funds and

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general assets and shall establish and maintain one or more Escrow Accounts (collectively, the
“Escrow Account”), in the form of time deposit or demand accounts. The Escrow Account shall be
established with an Eligible Depository Institution. The creation of any Escrow Account shall be
evidenced by a letter agreement in the form of Exhibit G hereto. Upon request, the Servicer shall
provide the Owner with a copy of a letter agreement evidencing the establishment of each Escrow
Account.

     The Servicer shall deposit in a mortgage clearing account on a daily basis and no later than
the second Business Day thereafter in the Escrow Account and retain therein: (i) all Escrow
Payments held or collected on account of the Mortgage Loans, for the purpose of effecting timely
payment of any such items as required under the terms of this Agreement, (ii) all Insurance
Proceeds that are to be applied to the restoration or repair of any Mortgaged Property and (iii)
all revenues received with respect to the management, conservation, protection and operation of the
REO Properties pursuant to Section 4.14. The Servicer shall make withdrawals therefrom only to
effect such payments as are required under this Agreement, and for such other purposes as shall be
set forth in or in accordance with Section 4.07. Any interest paid on funds deposited in an Escrow
Account by the Eligible Depository Institution other than interest on escrowed funds required by
law to be paid to the Mortgagor shall accrue to the benefit of the Servicer and shall be considered
Ancillary Income payable in accordance with the terms of this Agreement. To the extent required by
law, the Servicer shall pay interest on escrowed funds to the Mortgagor notwithstanding that the
Escrow Account is non-interest bearing or that interest paid thereon is insufficient for such
purposes.

Section 4.07 Withdrawals From Escrow Account.

     Withdrawals from the Escrow Account may be made by the Servicer only (a) to effect timely
payments of taxes, assessments, Primary Insurance Policy premiums, fire and hazard insurance
premiums or other items constituting Escrow Payments for the related Mortgage, (b) to reimburse the
Servicer for any Servicing Advance made by Servicer pursuant to Sections 4.08 and 4.10 hereof with
respect to a related Mortgage Loan, but only from amounts received on the related Mortgage Loan
which represent late payments or collections of Escrow Payments thereunder, (c) to refund to any
Mortgagor any funds found to be in excess of the amounts required under the terms of the related
Mortgage Loan, (d) upon default of a Mortgagor or in accordance with the terms of the related
Mortgage Loan and if permitted by applicable law, for transfer to the Custodial Account of such
amounts as are to be applied to the indebtedness of a Mortgage Loan in accordance with the terms
thereof, (e) for application to restoration or repair of the Mortgaged Property, (f) to pay to the
Owner in accordance with the terms of this Agreement , or to the Mortgagor to the extent required
by law, any interest paid on the funds deposited in the Escrow Account, (g) to deposit into the
Custodial Account the funds required to be deposited therein pursuant to Section 4.14, (h) to pay
to itself amounts to which it is entitled pursuant to Section 4.14, (i) to remove funds
inadvertently placed in an Escrow Account in error by the Servicer, (j) to transfer funds to
another Eligible Depository Institution in accordance with Section 4.09 hereof or (k) to clear and
terminate the Escrow Account upon the termination of this Agreement.

Section 4.08 Payment of Taxes, Insurance and Other Charges.

     With respect to each Mortgage Loan, the Servicer shall maintain accurate records reflecting
the status of taxes, assessments, and other charges for which an escrow is maintained and the
status

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of Primary Insurance Policy premiums and fire and hazard insurance coverage and shall obtain,
from time to time, all bills for the payment of such charges (including renewal premiums) and shall
effect payment thereof employing for such purpose deposits of the Mortgagor in the Escrow Account
which shall have been estimated and accumulated by the Servicer in amounts sufficient for such
purposes, as allowed under the terms of the Mortgage or applicable law. To the extent that a
Mortgage does not provide for Escrow Payments, or the Servicer has waived the escrow of Escrow
Payments or the Servicer is prohibited by applicable state law from requiring the escrow of Escrow
Payments, the Servicer shall use commercially reasonable efforts to seek to determine that any such
payments are made by the Mortgagor. The Servicer assumes full responsibility for the timely
payment of all such bills and shall effect timely payments of all such bills irrespective of each
Mortgagor’s faithful performance in the payment of same or the making of the Escrow Payments and
shall make Servicing Advances from its own funds to effect such payments, subject to reimbursement
pursuant to Section 4.07 hereof.

Section 4.09 Transfer of Accounts.

     The Servicer may from time to time transfer the Custodial Account and the Escrow Account to an
Eligible Depository Institution, provided that the Servicer provides written notice of such
transfer within 14 Business Days thereafter.

Section 4.10 Maintenance of Hazard Insurance.

     The Servicer shall cause to be maintained for each Mortgage Loan, fire and hazard insurance
with extended coverage customary in the area where the Mortgaged Property is located, in an amount
which is, subject to applicable law, at least equal to the lesser of (i) the maximum insurable
value of the improvements securing the related Mortgage Loan and (ii) the greater of (a) the
outstanding principal balance of the Mortgage Loan and (b) the minimum amount necessary to prevent
the Mortgagor and/or the mortgagee from becoming a co-insurer. If the Mortgaged Property is in an
area identified in the Federal Register by the Federal Emergency Management Agency as having
special flood hazards, and that has federally-mandated flood insurance requirements (and such flood
insurance has been made available) the Servicer will cause to be maintained a flood insurance
policy meeting the requirements of the current guidelines of the Federal Insurance Administration
with a generally acceptable insurance carrier, in an amount representing coverage not less than the
least of (i) the outstanding principal balance of the Mortgage Loan, (ii) the full insurable value
of the Mortgaged Property, or (iii) the maximum amount of insurance available under the National
Flood Insurance Act of 1968 and the Flood Disaster Protection Act of 1973, each as amended. The
Servicer shall also maintain on any REO Property, fire and hazard insurance with extended coverage
in an amount which is at least equal to the maximum insurable value of the improvements which are a
part of such property, liability insurance and, to the extent required and available under the
National Flood Insurance Act of 1968 and the Flood Disaster Protection Act of 1973, each as
amended, flood insurance in an amount required above. Any amounts collected by the Servicer under
any such policies (other than amounts to be deposited in the Escrow Account and applied to the
restoration or repair of the related Mortgaged Property, REO Property, or released to the Mortgagor
in accordance with Customary Servicing Procedures or in accordance with the terms of the Mortgage
Loan or applicable law) shall be deposited in the Custodial Account, subject to withdrawal pursuant
to Section 4.05. It is understood and agreed that no earthquake or other

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additional insurance need
be required by the Servicer of any Mortgagor or maintained on property acquired in respect of a
Mortgage Loan, other than pursuant to such applicable laws and regulations as shall at any time be
in force and as shall require such additional insurance. All policies required hereunder shall be
endorsed with standard mortgagee clauses with loss payable to the Servicer, its successors and its
assigns, or, upon request of the Owner, to the Owner, and shall provide for at least 30 days prior
written notice to the Servicer of any cancellation thereof. The Servicer shall not accept or
obtain any such insurance policy from an insurance company that does not at that time maintain a
General Policy Rating of B-III or better in Best’s Key Rating Guide. Servicing Advances made under
this Section 4.10 shall be eligible for reimbursement pursuant to Section 4.10 hereof.

Section 4.11 Maintenance of Blanket Insurance Policy.

     If the Servicer obtains and maintains a blanket insurance policy that is issued by an insurer
generally acceptable to Fannie Mae and Freddie Mac and that insures against hazard losses on all of
the Mortgage Loans, then, to the extent such policy provides coverage in an amount equal to the
coverage required pursuant to Section 4.10 and otherwise complies with all other requirements of
Section 4.10, the Servicer shall be deemed to have satisfied its obligations as set forth in
Section 4.10. Such policy may contain a clause providing for a reasonable deductible, in which
case the Servicer shall, if there shall not have been maintained on the related Mortgaged Property
a policy complying with Section 4.10, and if there shall have been a loss that would have been
covered by such policy, deposit in the
Custodial Account the amount not otherwise payable under the blanket policy because of such
deductible clause.

Section 4.12 Maintenance of Mortgage Impairment Insurance Policy.

     The Servicer may satisfy its obligations under Section 4.10 and 4.11 pertaining to physical
storage of insurance policies and general policy rating requirements by maintaining a mortgage
impairment or other form of blanket policy that will protect the Servicer and/or Owner in the event
of uninsured loss, insolvency of an insurance carrier or any other loss normally to be covered by a
mortgage impairment policy. It is agreed that any expense incurred by the Servicer in maintaining
any such insurance shall be borne by the Servicer. This shall be deemed to include any loss or any
expense as a result of a deductible clause in such a policy.

Section 4.13 Fidelity Bond; Errors and Omissions Insurance.

     The Servicer at its own expense shall maintain with responsible companies throughout the term
of this Agreement a blanket fidelity bond and an errors and omissions insurance policy, with broad
coverage on all officers, employees and other individuals acting on behalf of the Servicer in
connection with its activities under this Agreement. The amount of coverage shall be at least
equal to the coverage that would be required of the Servicer by Fannie Mae or Freddie Mac, if the
Servicer were servicing the Mortgage Loans for Fannie Mae or Freddie Mac, and such policy shall be
issued by a company that is acceptable to Fannie Mae or Freddie Mac. The Fidelity Bond and errors
and omissions insurance shall be in the form of the Mortgage Banker’s Blanket Bond and shall
protect and insure the Servicer against losses caused by such individuals, including losses from
forgery, theft, embezzlement, fraud, errors and omissions and negligent acts of such individuals.
Such Fidelity Bond shall also protect and insure the Servicer against losses in connection with the
failure to maintain any insurance policies required pursuant to this Agreement and the release or
satisfaction

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of a Mortgage Loan without having obtained payment in full of the indebtedness secured
thereby. No provision of this Section 4.13 requiring such fidelity bond and errors and omissions
insurance shall diminish or relieve the Servicer from its duties and obligations as set forth in
this Agreement.

Section 4.14 Title, Management and Disposition of REO Property.

     Subject to Section 4.02, if title to a Mortgaged Property is acquired in foreclosure or by
deed in lieu of foreclosure, the deed or certificate of sale shall be taken in the name of the
Servicer or its nominee, in either case as nominee, for the benefit of the Owner on the date of
acquisition of title (the “REO Owner”); provided, however, that the Servicer shall not be required
to take title in its own name if it reasonably determines that such record ownership could harm the
interests of the Owner or the Servicer. In the event the Servicer is not authorized or permitted
or elects not to hold title to real property in the state in which the REO Property is located, or
would be adversely affected under the “doing business” or tax laws of such state by so holding
title, the deed or certificate of sale shall be taken in the name of such Person or Persons as
shall be consistent with an opinion of counsel obtained by the Servicer, at expense of the REO
Owner, from an attorney duly licensed to practice law in the state where the REO Property is
located. The Person or Persons holding such title other than the REO Owner shall acknowledge in
writing that such title is being held as nominee for the REO Owner.

     In the event of a Pass-Through Transfer for which Servicer continues to service any Mortgage
Loan, the REO Property must be sold within three years following the end of the calendar year of
the date of acquisition if a REMIC election has been made with respect to the arrangement under
which the Mortgage Loans and REO Property are held, unless (i) the Purchaser shall have been
supplied with an Opinion of Counsel (at the Owner’s expense) to the effect that the holding by the
related trust of such Mortgaged Property subsequent to such three-year period (and specifying the
period beyond such three-year period for which the Mortgaged Property may be held) will not result
in the imposition of taxes on “prohibited transactions” of the related trust as defined in Section
860F of the Code, or cause the related REMIC to fail to qualify as a REMIC, in which case the
related trust may continue to hold such Mortgaged Property (subject to any conditions contained in
such Opinion of Counsel), or (ii) the Purchaser (at the Owner’s expense) or the Servicer shall have
applied for, prior to the expiration of such three-year period, an extension of such three-year
period in the manner contemplated by Section 856(e)(3) of the Code, in which case the three-year
period shall be extended by the applicable period. If a period longer than three years is
permitted under the foregoing sentence and is necessary to sell any REO Property, the Servicer
shall report monthly to the Purchaser as to progress being made in selling such REO Property.

     Notwithstanding any other provision of this Agreement, if a REMIC election has been made, no
Mortgaged Property held by a REMIC shall be rented (or allowed to continue to be rented) or
otherwise used for the production of income by or on behalf of the related trust or sold in such a
manner or pursuant to any terms that would (i) cause such Mortgaged Property to fail to qualify at
any time as “foreclosure property” within a meaning of Section 860G(a)(8) of the Code, (ii) subject
to the related trust to the imposition of any federal or state income taxes on “net income from
foreclosure property” with respect to such Mortgaged Property within the meaning of Section 860G(c)
of the Code, or (iii) cause the sale of such Mortgaged Property to result in the receipt by the
related trust or any income from non-permitted assets as described in Section 860F(a) (2)(B) of the

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Code, unless the Servicer has agreed to indemnify and hold harmless the related trust with respect
to the imposition of any such taxes.

     The Servicer, either itself or through an agent selected by the Servicer, shall manage,
conserve, protect and operate each REO Property for the REO Owner solely for the purpose of its
prompt disposition and sale, and in same manner that it would be required to manage, conserve,
protect and operate foreclosed property for its own account (subject to the condition described in
the second paragraph of Section 4.02); provided, however, that the Servicer’s obligations with
respect to such REO Property shall in no way limit the right of the REO Owner to assume
responsibility for the maintenance and sale of properties obtained through foreclosure proceedings
or through other means in lieu of foreclosure proceedings. The Servicer shall attempt to sell the
same (and may temporarily rent the same) on such terms and conditions as the Servicer deems to be
in the reasonable interest of the REO Owner in accordance with Customary Servicing Procedures. If
Owner has notified the Servicer in writing that an REO Property is held as part of a REMIC, the
Servicer will make reasonable efforts to sell such REO Property within the time necessary to
preserve such REMIC status as advised by Owner in the notice thereof.

     The Servicer shall cause to be deposited in the Escrow Account, on a daily basis upon receipt
thereof, all revenues received with respect to the conservation and disposition of the related REO
Property and shall withdraw therefrom funds necessary for the proper operation, management and
maintenance of the related REO Property, including the cost of maintaining any hazard
insurance pursuant to Section 4.10 hereof and the fees of any managing agent acting on behalf of
the Servicer. Any disbursement in excess of $5,000 shall be made only with the written approval of
the REO Owner. For purposes of the preceding sentence, any approval given by the Owner shall
constitute approval by the REO Owner. On or before each Determination Date, the Servicer shall
withdraw from the Escrow Account and deposit into the Custodial Account the net income from the REO
Property on deposit in the Escrow Account less any reserves required to be maintained in the Escrow
Account from time to time to satisfy reasonably anticipated expenses. The Servicer shall furnish
to the Owner on each Remittance Date, an operating statement for each REO Property covering the
operation of each REO Property for the previous month and the Servicer’s efforts in connection with
the sale of that REO Property. Such statement shall be accompanied by such other information as
the Owner shall reasonably request.

     Each REO Disposition shall be carried out by the Servicer at such price, and upon such terms
and conditions, as the Servicer deems to be in the reasonable interests of the REO Owner consistent
with Customary Servicing Procedures; provided, however, that the Servicer, prior to any such
disposition, shall notify the REO Owner in writing of such price, terms and conditions and shall
proceed with such disposition only if the Servicer is not otherwise directed by the REO Owner in a
writing delivered to the Servicer not later than the tenth Business Day following the Servicer’s
delivery of such notice to the REO Owner. For purposes of the preceding sentence, any direction
given by the Owner shall constitute a direction by the REO Owner. If upon the acquisition of title
to the Mortgaged Property by foreclosure sale or deed in lieu of foreclosure or otherwise, there
remain outstanding unreimbursed P&I Advances pursuant to Section 5.03 with respect to the Mortgage
Loan or if, upon liquidation as provided in this Section 4.14, there remain outstanding any
unreimbursed Servicing Advances with respect to the Mortgaged Property or the Mortgage Loan, the
Servicer shall be entitled to reimbursement from the proceeds received in connection with the

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disposition of the Mortgaged Property, and from the Owner if such proceeds are insufficient, for
any related unreimbursed Servicing Advances or related unreimbursed P&I Advances pursuant to
Section 5.03. On the Remittance Date immediately following the Principal Prepayment Period in
which REO Disposition Proceeds are received, the net cash proceeds of such REO Disposition shall be
distributed to the REO Owner. In the event that the Servicer is billed for expenses related to an
REO Property subsequent to the date on which the net cash proceeds of such REO Disposition are
distributed to the REO Owner, the Servicer shall pay such expenses and shall thereupon be entitled
to reimburse itself therefore by withdrawing the amount of such expenses from the Custodial
Account.

Section 4.15 Transfer Notices.

     (a) Within fifteen (15) days before the applicable Effective Date with respect to the Mortgage
Loans, the Owner shall cause any required notices (“Goodbye Letters”) to the Mortgagors of the
transfer of the servicing function contemplated herein to be delivered to the Mortgagors. Such
Goodbye Letters shall be prepared and delivered by or on behalf of the Owner in accordance with
applicable law and the Transfer Instructions. Within fifteen (15) days before the applicable
Effective Date with respect to the Mortgage Loans, the Servicer shall cause any required notices
(“Hello Letters”) to the Mortgagors of the Servicer’s assumption of the servicing function
contemplated herein to be delivered to the Mortgagors. Such Hello Letters shall be prepared and
delivered by the Servicer in accordance with applicable law and the Transfer Instructions. The
parties shall cooperate to
accomplish such notification in a timely and efficient manner as will best facilitate the
assumption by the Servicer of the servicing responsibilities. The form of the Goodbye Letters and
Hello Letters to be sent to Mortgagors shall be approved by the Owner and the Servicer before
mailing.

     (b) The Owner shall notify, or cause to be notified, all Insurers, by overnight or registered
mail, that all insurance premium billings for the Mortgage Loans must be sent to the Servicer.
Additionally, the Owner shall, prior to the applicable Effective Date, obtain the written consent
of any Insurers that have the contractual right to approve the assumption of the servicing
responsibilities by the Servicer.

     (c) The Owner, with the reasonable assistance of the Servicer, shall notify the applicable
taxing authorities (except as such is handled through the tax service company on any tax service
contracts procured by the Servicer) of the assumption of the servicing responsibilities by the
Servicer and include instructions to deliver all notices and tax bills to the Servicer or the
applicable tax service provider, as the case may be, from and after the Effective Date.

     (d) The Owner shall notify all attorneys who, on the Effective Date, are providing legal
services to or on behalf of the Owner in connection with pending foreclosure or litigation
involving one or more of the Mortgage Loans, of the transfer of the servicing function with respect
to the Mortgage Loans to the Servicer.

     (e) The costs and expenses related to the notices required to be provided under Subsections
(b), (c) and (d) above shall be paid by the Owner. Each of Owner and Servicer shall be responsible
for their respective costs incurred in connection with subsection (a) above.

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Section 4.16 Restoration of Mortgaged Property.

     The Servicer need not obtain the approval of the Owner prior to releasing any Insurance
Proceeds or Condemnation Proceeds to the Mortgagor to be applied to the restoration or repair of
the Mortgaged Property if such release is in accordance with Customary Servicing Procedures. For
claims greater than $15,000, at a minimum the Servicer shall comply with the following conditions
in connection with any such release of Insurance Proceeds or Condemnation Proceeds:

     (i) The Servicer shall receive satisfactory independent verification of completion of
repairs and issuance of any required approvals with respect thereto;

     (ii) the Servicer shall take all steps necessary to preserve the priority of the lien
of the Mortgage, including, but not limited to requiring waivers with respect to mechanics’
and materialmen’s liens;

     (iii) the Servicer shall verify that the Mortgage Loan is not in default; and

     (iv) pending repairs or restoration, the Servicer shall place the Insurance Proceeds or
Condemnation Proceeds in the Escrow Account.

     If the Owner is named as an additional loss payee, the Servicer is hereby empowered to endorse
any loss draft issued in respect of such a claim in the name of the Owner.

Section 4.17 Maintenance of PMI Policy; Claims.

     With respect to each Mortgage Loan with an LTV in excess of 80%, the Servicer shall maintain
or cause the Mortgagor to maintain in full force and effect a PMI Policy insuring the portion over
78% until terminated pursuant to the Homeowners Protection Act of 1998, 12 UCS §4901, et seq. In
the event that such PMI Policy shall be terminated other than as required by law, the Servicer
shall obtain from another Qualified Insurer a comparable replacement policy, with a total coverage
equal to the remaining coverage of such terminated PMI Policy. If the insurer shall cease to be a
Qualified Insurer, the Servicer shall determine whether recoveries under the PMI Policy are
jeopardized for reasons related to the financial condition of such insurer, it being understood
that the Servicer shall in no event have any responsibility or liability for any failure to recover
under the PMI Policy for such reason. If the Servicer determines that recoveries are so
jeopardized, it shall notify the Owner and the Mortgagor, if required, and obtain from another
Qualified Insurer a replacement insurance policy. The Servicer shall not take any action which
would result in noncoverage under any applicable PMI Policy of any loss which, but for the actions
of the Servicer would have been covered thereunder. In connection with any assumption or
substitution agreement entered into or to be entered into pursuant to Section 6.01, the Servicer
shall promptly notify the insurer under the related PMI Policy, if any, of such assumption or
substitution of liability in accordance with the terms of such PMI Policy and shall take all
actions which may be required by such insurer as a condition to the continuation of coverage under
such PMI Policy. If such PMI Policy is terminated as a result of such assumption or substitution
of liability, the Servicer shall obtain a replacement PMI Policy as provided above.

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     In connection with its activities as servicer, the Servicer agrees to prepare and present, on
behalf of itself and the Owner, claims to the insurer under any PMI Policy in a timely fashion in
accordance with the terms of such PMI Policy and, in this regard, to take such action as shall be
necessary to permit recovery under any PMI Policy respecting a defaulted Mortgage Loan. Pursuant
to Section 4.04, any amounts collected by the Servicer under any PMI Policy shall be deposited in
the Custodial Account, subject to withdrawal pursuant to Section 4.05.

Section 4.18 Privacy.

     In connection with servicing of Mortgage Loans hereunder, the Servicer shall comply, and cause
its third party service providers to comply, with the Privacy Requirements, subject to the
applicability of such Privacy Requirements to the Servicer as the result of the Servicer’s
provision of the services under this Agreement. The foregoing obligation to comply with the
Privacy Requirements may include the following: (A) the Servicer shall not disclose any Customer
Information to any person or entity, other than to the extent necessary to carry out the Servicer’s
express obligations under the Agreement, and for no other purpose. The Servicer shall ensure that
each person or entity to whom or to which the Servicer intends to disclose Customer Information
shall, prior to any such disclosure of information, agree to: (i) keep confidential any such
Customer Information, (ii) use or disclose such Customer Information only to the extent necessary
to carry out the Servicer’s express obligations under this Agreement: (B) the Servicer shall not
use Customer Information for any purpose, including but not limited to the marketing of products or
services to, or the solicitation of business from the Mortgagors. The Servicer may use the
Customer Information to the extent necessary to carry out the Servicer’s express
obligations under the Agreement and as required by state or federal law or regulation. The
Servicer may also use the Customer Information as expressly permitted by the Owner in writing, to
the extent that such express permission is in accordance with the Privacy Requirements; (C) the
Servicer shall assess, manage, and control (and cause its service providers to assess, manage and
control) risks relating to the security and confidentiality of Customer Information, shall
implement the standards relating to such risks in the manner set forth in the FFIEC Interagency
Guidelines Establishing Standards for Safeguarding Customer Information set forth in 12 CFR Parts
30, 208, et al, and shall maintain at all times an Information Security Program; (D) without
limiting the scope of the above, the Servicer shall use at least the same physical and other
security measures to protect all Customer Information in the Servicer’s possession or control, as
the Servicer uses for its own confidential and proprietary information; and (E) the Servicer shall
deliver a privacy notice during the term of this Agreement if required of the Servicer by law or
regulation in compliance with Privacy Requirements.

Section 4.19 Compliance with REMIC Provisions.

     If a REMIC election has been made with respect to the arrangement under which the Mortgage
Loans and REO Property are held, the Servicer shall not take any action, cause the REMIC 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 the REMIC as
a REMIC or (ii) result in the imposition of a tax upon the REMIC (including but not limited to the
tax on “prohibited transactions” as defined in Section 860F(a)(2) of the Code and the tax on
“contribution” to a REMIC set forth in Section 860G(d) of the Code unless the Servicer has

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received
an Opinion of Counsel (at the expense of the party seeking to take such actions) to the effect that
the contemplated action will not endanger such REMIC status or result in the imposition of any such
tax.”

ARTICLE V

PAYMENTS TO THE OWNER

Section 5.01 Distributions.

     (a) On each Remittance Date, the Servicer shall remit to the Owner of record on the preceding
Record Date (i) all amounts credited to the Custodial Account as of the close of business on the
preceding Determination Date (net of the other charges against or withdrawals from the Custodial
Account pursuant to Section 4.05(ii)-(x)), plus (ii) the aggregate amount of P&I Advances, if any,
minus (iii) any amounts attributable to Principal Prepayments received after the expiration of
related Principal Prepayment Period (except to the extent that, pursuant to Section 5.03, any funds
described in this clause are remitted to Owner in lieu of advances by the Servicer of its own
funds), and minus (iv) any amounts that represent early receipts of Monthly Payments due on a Due
Date or Due Dates subsequent to the Due Date occurring in the month of such Remittance Date (except
to the extent that, pursuant to Section 5.03, any funds described in this clause are remitted to
Owner in lieu of advances by the Servicer of its own funds).

     (b) Each remittance pursuant to this Section 5.01 shall be made by wire transfer of
immediately available funds to, or by other means of transmission or transfer that causes funds to
be immediately available in, the account which shall have been designated by the Owner, for
distributions pursuant to Section 5.01(a).

     The Servicer shall ten days prior to the Remittance Date on which the final distribution of
funds to Owner is to be made hereunder, notify Owner of the pendency of such distribution and such
distribution shall be made to Owner.

Section 5.02 Statements to the Owner.

     Not later than the Business Day immediately following each Remittance Date, the Servicer shall
deliver to the Owner: (a)(i) a monthly remittance statement with respect to distributions to the
Owner under Section 5.01, and (ii) in the event of a Pass-Through Transfer for which Servicer
continues to service any Mortgage Loan, a monthly remittance statement with respect to
distributions to such Investor, each in a form set forth on Exhibit H hereto; and (b)(i) a monthly
default report with respect to Mortgage Loans owned by the Owner and (b)(ii) in the event of a
Pass-Through Transfer for which Servicer continues to service any Mortgage Loan, a monthly default
report with respect to Mortgage Loans owned by such Investor.

     In addition, not more than 60 days after the end of each calendar year, upon receipt of
written request by the Owner, the Servicer will furnish to each Person who was an Owner at any time
during such calendar year, a listing of the principal balances of the Mortgage Loans outstanding at
the end of such calendar year.

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     The Servicer shall prepare and file any and all tax returns, information statements or other
filings required to be delivered to any governmental taxing authority (other than those required to
be filed by the Owner) or to the Owner pursuant to any applicable law with respect to the Mortgage
Loans and the transactions contemplated hereby.

Section 5.03 P&I Advances by the Servicer.

     Not later than the close of business on the Business Day preceding each Remittance Date, the
Servicer shall from its own funds deposit in the Custodial Account an amount equal to all Monthly
Payments (adjusted to the Mortgage Loan Remittance Rate) that were due on the related Due Date and
that were delinquent at the close of business on the related Cutoff Date; provided, however, that
to the extent there are funds on deposit in the Custodial Account that are not otherwise required
to be distributed to the Owner on such Remittance Date, the Servicer may remit such funds in lieu
of making advances of its own funds; and further provided that any such funds held for future
distribution and so used shall be appropriately reflected in the Servicer’s records and replaced by
the Servicer by deposit into the Custodial Account on or before each successive Remittance Date to
the extent that funds on deposit in the Custodial Account for the related Remittance Date
(determined without regard to P&I Advances required to be made on such Remittance Date) shall be
less than the aggregate amount required to be distributed to the Owner pursuant to Section 5.01 on
such related Remittance Date. For purposes of this Section 5.03, any Monthly Payment or portion
thereof deferred pursuant to Section 4.01 shall be considered delinquent until paid. The
Servicer’s obligation to make P&I Advances as to any Mortgage Loan shall continue through the later
to occur of (a) the last Monthly Payment due prior to the payment in full of the Mortgage Loan or
(b) the Remittance Date following acquisition or
disposition of title to the related Mortgaged Property through foreclosure or by delivery of a
deed in lieu of foreclosure.

     Notwithstanding the provisions of this Section 5.03, the Servicer shall not be required to
make any advance of principal and interest if, in the good faith judgment of the Servicer, such
advance of principal and interest will not ultimately be recoverable from the related Mortgagor,
from Liquidation Proceeds or otherwise. In such event, the Servicer shall deliver to the Owner an
Officer’s Certificate of the Company to the effect that an officer of the Owner has reviewed the
related Mortgage File and has made the reasonable determination that any additional advances are
Nonrecoverable. In the event that Servicer ceases making P&I advances to the Owner pursuant to this
provision, Servicer shall (i) transfer the Mortgage Loan to an actual/actual remittance type for
the remaining life of the loan and (ii) remit actual collections on such Mortgage Loan on each
subsequent Remittance Date.

ARTICLE VI

GENERAL SERVICING PROCEDURE

Section 6.01 Assumption Agreements.

     The Servicer shall use its best efforts to enforce any “due-on-sale” provision contained in
each Mortgage or Mortgage Note to the extent permitted by law and provided that such enforcement
would not impair any recovery under any related Primary Insurance Policy. Any assumption fee
collected by the Servicer for entering into an assumption agreement shall be treated as Ancillary
Income under this Agreement.

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Section 6.02 Release of Mortgage Files; Wrongful Satisfaction of Mortgages.

     Upon the payment in full of any Mortgage Loan, the Servicer will prepare and process any
required satisfaction or release of the Mortgage and notify the Owner as provided in Section 5.02.

     If the Servicer satisfies or releases the lien of a Mortgage without having obtained payment
in full of the indebtedness secured by the Mortgage, the Servicer, upon written demand, shall remit
to the Owner the then Assumed Principal Balance of the related Mortgage Loan by deposit thereof in
the Custodial Account. The Servicer shall maintain the Fidelity Bond as provided for in Section
4.13 insuring the Servicer against any loss it may sustain with respect to any Mortgage Loan not
satisfied in accordance with the procedures set forth herein.

Section 6.03 Servicing Compensation.

     As consideration for Servicer’s performance of servicing obligations pursuant to this
Agreement and subject to the terms and conditions of this Agreement, Servicer shall, in accordance
with the terms of this Agreement, withdraw from the Custodial Account, pursuant to Section 4.05, or
otherwise retain the Servicing Compensation With respect to any calendar month and each Mortgage
Loan, an amount equal to one-twelfth of the product of the Servicing Fee Rate (.375 %) and the
Assumed Principal Balance as of the first day of the related Due Period.

     The Servicer shall be entitled to reimbursement for additional services, including

     (a) express and other delivery charges, recordation fees and any other reasonable
out-of-pocket expenses incurred by the Servicer with respect to a Mortgage Loan to the
extent not ordinary to the servicing function (but not including salaries, rent and other
general operating expenses of Servicer normally classified as overhead);

     (b) for preparation and delivery of any special reports, magnetic tapes, disks, or
transmission outside the normal monthly accounting reports; and

     (c) to the extent not ordinary to the servicing function, any action taken by the
Servicer which the Servicer reasonably determines to be necessary or appropriate in order to
protect the rights of the Owner (including property preservation) with respect to any
Mortgage Loan, and including Loss Mitigation Activity per Fannie Mae’s then current
compensation guidelines.

Section 6.04 Annual Statement as to Compliance.

     The Servicer shall deliver to the Owner, on or before March 31 of each year, beginning March
31, 2004, an Officers’ Certificate stating that (i) a review of the activities of the Servicer
during the preceding calendar year and of the Servicer’s performance under this Agreement has been
made under such officer’s supervision, and (ii) to the best of such officer’s knowledge, based on
such review, the Servicer has 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 Servicing Officer and the nature and status thereof and the action being
taken by the Servicer to cure such default.

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Section 6.05 Annual Independent Public Accountants’ Servicing Report.

     On or before March 31 of each year, beginning March 31, 2004, the Servicer, at its expense,
shall cause a firm of independent public accountants that is a member of the American Institute of
Certified Public Accountants to furnish a statement to the Owner to the effect that such firm has
examined certain documents and records relating to the servicing of mortgage loans in the
Servicer’s portfolio. On the basis of this examination, the CPA firm will disclose any exceptions
or errors relating to the servicing of mortgage loans, as required by paragraph four (4) of “The
Uniform Single Audit Program for Mortgage Bankers.”

Section 6.06 Owner’s Right to Examine Servicer Records.

     The Owner shall have the right, at its expense, upon reasonable notice to the Servicer, during
business hours or at such other times as might be reasonable under applicable circumstances and on
the Servicer’s premises, to examine and audit any and all of the books, records or other
information of the Servicer whether held by the Servicer or by another on behalf of the Servicer,
which relate to the performance or observance by the Servicer of the terms, covenants or conditions
of this Agreement, and to discuss such books, records or other information with an officer or
employee of the Servicer who is knowledgeable about the matters contained therein, upon Owner’s
reasonable request.

Section 6.07 Rate Adjustment.

     As to each Adjustable Rate Mortgage Loan, the Servicer shall make periodic Mortgage Interest
Rate and Monthly Payment adjustments, as applicable, in strict compliance with (i) the terms of the
Mortgage and Mortgage Note, (ii) all applicable law, and (iii) Customary Servicing Procedures.
Servicer shall establish procedures to monitor the Index in order to ensure that it uses the
appropriate value for the Index in determining an interest rate change. Servicer shall execute all
and deliver all appropriate notices required by (i) the terms of the Mortgage and Mortgage note,
(ii) all applicable law, and (iii) Customary Servicing Procedures regarding such Mortgage Interest
Rate adjustments and Monthly Payment adjustments. Upon request by the Owner, Servicer shall
deliver to the Owner copies of such adjustment notification, and shall describe the values and
methods used to calculate and implement such adjustments. If Servicer fails to make a timely and
correct Mortgage Interest Rate adjustment or Monthly Payment adjustment, Servicer shall deposit in
the Custodial Account out of its own funds any amounts necessary to satisfy any shortage in the
Mortgagor’s Monthly Payment for so long as such shortage continues. In the event the Index, as
specified in the related Mortgage Note, becomes unavailable for any reason, Servicer shall select
an alternative index, in accordance with the terms of the Mortgage Note provide written notice to
the Owner of such alternative index, and such alternative index shall thereafter be the Index for
such Mortgage Loan unless otherwise directed by the Owner to select a specified index in accordance
with the terms of the Mortgage Loan. The Servicer shall use any alternative index as specified by
the Owner so long as such index is in accordance with the terms of the Mortgage Note.

Section 6.08 Maintenance of Licenses and Ratings.

     The Servicer shall, at its own cost and expense, obtain and maintain in good standing without
impairment any and all permits, approvals, licenses and registrations, and cause any of its

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employees to obtain any and all permits, approvals, licenses and registrations, that are necessary
for the performance of the Servicing to be provided by the Servicer pursuant to the terms of this
Agreement.

Section 6.09 Quality Control.

     The Servicer shall perform quality control and internal audit procedures with respect to the
Servicing in accordance with Applicable Requirements. To the extent such procedures include any
Mortgage Loan serviced by Servicer hereunder, the Servicer shall share with Owner its quality
control, internal audit findings and any third party reports with respect to Mortgage Loans
serviced hereunder, including the Servicer’s plans for corrective actions should any be required.
Where required, the Servicer shall take prompt corrective action with respect to such findings,
including those undisputed and final written findings that Owner may identify through its own
internal/third party audit reviews which may involve third party contractors.

Section 6.10 Compliance and Performance Reviews.

     The Owner, its officers, employees and agents, including third-party attorneys and accountants
and auditors, and regulatory officials with regulatory authority over the Owner may, from time to
time, and at their sole cost and expense, perform reviews, including, but not limited to, onsite
visits to ensure that the Servicer is conducting its activities and performing its obligations
under this Agreement in accordance with all Applicable Requirements, including, without limitation,
the Privacy Requirements. The Servicer shall provide, during normal business hours and upon
reasonable advance written notice
from the Owner, access to such documents, books, reports, policies and procedures, personnel
and systems and other support and assistance as the Owner may reasonably request for the purpose of
carrying out such reviews.

Section 6.11 Access to Documents and Employees.

     The Servicer hereby agrees that it shall, at its sole cost and expense, make available, or
cause to be made available, to the Owner or any person designated by the Owner, in a timely manner,
all documents or materials in the possession of the Servicer that the Owner is required to supply
to any federal or state regulatory body with respect to the matters contemplated by this Agreement.
In furtherance of the foregoing, the Servicer shall, at its sole cost and expense, make available,
or cause to be made available, during normal business hours and upon reasonable advance written
notice from the Owner, to the Owner or any person designated by the Owner, resources, including,
but not limited to, access to employees, sufficient to respond adequately to any issue or concern
raised by such federal or state authorities.

Section 6.12 Notices.

     The Servicer shall give prompt written notice to the Owner of (a) any material action, suit or
proceeding instituted by or against the Servicer or any of its subsidiaries related to Mortgage
Loans in any federal or state court or before any commission or other regulatory body (federal,
state or local, domestic or foreign), or any such proceeding to the Servicer’s knowledge threatened
against the Servicer or any of its subsidiaries related to Mortgage Loans in a writing containing
the details thereof, including any putative class action complaint involving its servicing of
mortgage loans; (b)

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the occurrence of any fact or circumstance that would constitute an Event of
Default hereunder following the giving the notice or the expiration of any cure period or both; and
(c) any notice of facts or circumstances that reasonably could be anticipated to result in a
material adverse change in the Servicer’s ability to meet its obligations under this Agreement.

Section 6.13 Contingency Plans.

     The Servicer represents and warrants that it has in place a contingency plan that will enable
it to (i) materially perform its servicing obligations within 48 hours in the event its primary
location is rendered inoperative as a result of a natural or other disaster or emergency, and once
the Servicer relocates to its backup site, it shall make arrangements to provide continued service
as stated in this Agreement. The Servicer covenants and agrees to (i) test such contingency plan
at least once annually and, upon request of Owner, provide the results of such test to the Owner,
and (ii) upon request of Owner, provide the Owner with copies of its operating procedures in the
event that such contingency plan is put into effect. If Owner determines in its reasonable
discretion, that such contingency plan is inadequate, the Owner shall have the right to make
reasonable recommendations consistent with those required by its regulators, and the Servicer shall
take commercially reasonable efforts to implement such recommendations.

ARTICLE VII

REPORTS TO BE PREPARED BY SERVICER

Section 7.01 Servicer Shall Provide Access and Information as Reasonably Required.

     The Servicer shall furnish to the Owner the reports specified on Exhibit J and, upon written
request, during the term of this Agreement, such periodic, special or other reports or information,
whether or not provided for herein, as shall be necessary, reasonable or appropriate with respect
to the purposes of this Agreement. The Servicer may negotiate with the Owner for a reasonable fee
for providing such report or information, unless (i) the Servicer is required to supply such report
or information pursuant to any other section of this Agreement, or (ii) the report or information
has been requested in connection with Internal Revenue Service requirements. The Servicer agrees
to execute and deliver all such instruments as the Owner, from time to time, may reasonably request
in order to effectuate the purposes and to carry out the terms of this Agreement.

Section 7.02 Financial Statements.

     The Servicer understands that, in connection with marketing the Mortgage Loans and/or the
Servicing Rights, the Owner may make available to a prospective purchaser of the Mortgage Loans a
consolidated Statement of Operations of Servicer for the most recently completed five fiscal years
for which such a statement is available as well as a Consolidated Statement of Condition at the end
of the last two fiscal years covered by such Consolidated Statement of Operations. The Servicer,
if it has not already done so, agrees to promptly furnish to Owner copies of the statements
specified above.

     The Servicer also agrees to make available upon reasonable notice and during normal business
hours to any prospective Owner a knowledgeable financial or accounting officer for the purposes of
answering questions respecting recent developments affecting the Servicer or the

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financial
statements of the Servicer and to permit upon reasonable notice and during normal business hours
any prospective purchaser to inspect the Servicer’s servicing facilities for the purpose of
satisfying such prospective purchaser that the Servicer has the ability to service the Mortgage
Loans in accordance with this Agreement.

ARTICLE VIII

THE SERVICER

Section 8.01 Indemnification; Third Party Claims.

     The Servicer shall indemnify and hold harmless the Owner, its directors, officers, agents,
employees, and assignees (each, an “Owner Indemnified Party”) from and against any costs, damages,
expenses (including reasonable attorneys’ fees and costs, irrespective of whether or not incurred
in connection with the defense of any actual or threatened action, proceeding, or claim), fines,
forfeitures, injuries, liabilities or losses (“Losses”) suffered or sustained in any way by any
such Person, no matter how or when arising (including in connection with any judgment, award, or
settlement), in connection with or relating to (i) a breach by Servicer of any of its
representations and warranties contained in Article III or (ii) a breach by Servicer of any of its
covenants and other obligations contained herein (including any failure to service the Mortgage
Loans in compliance with the terms hereof); provided, however, that Servicer shall not indemnify
Owner for any and all Losses for which Owner is required to indemnify Servicer hereunder.

     The Owner shall indemnify and hold the Servicer, its directors, officers, agents, employees
and assignees (each, a “Servicer Indemnified Party”) harmless from and shall reimburse the Servicer
for any Losses suffered or sustained in any way by the Servicer, no matter how or when arising
(including in connection with any judgment, award, or settlement), in connection with or relating
to (directly or indirectly, in whole or in part):

     (i) a breach by the Owner of any of its representations, warranties and covenants under
this Agreement, included, without limitation, any representation, warranty and/or covenant
with respect to High Cost Loans or Mortgage Loans subject to HOEPA;

     (ii) any limitation on the liability of the Servicer pursuant to Section 8.02 hereof;

     (iii) Servicer’s compliance with the instructions of Owner or Servicer taking and
initiating any legal actions with respect to any Mortgage Loans and Mortgaged Properties on
behalf of the Owner in the name of Servicer or an affiliate thereof (in each case, unless
such action or omission is taken with a standard of care in contravention of any standard of
care required under the Agreement and such contravention is the proximate cause of the
Loss);

     (iv) any actions or omissions of any former servicer, owner, sub-servicer or originator
of a Mortgage Loan or Mortgaged Property (or acts or omissions of any other person or
entity) prior to the service transfer date, including without limitation, any data integrity
issue (and any related costs of correcting such issues; provided, however, should Servicer
have actual knowledge of any data integrity error which is likely to materially affect the
servicing of any Mortgage Loan in any of the loan portfolios being serviced under this
Agreement, Servicer will take reasonable efforts to correct the error;

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     (v) for a period of one year after the applicable Effective Date, the perpetuation by
Servicer of the acts or omissions of prior servicers; unless Servicer knew or reasonably
should have known consistent with Customary Servicing Procedures that such acts or omissions
violate Applicable Requirements or the requirements of Servicer under this Agreement;

     (vi) any outstanding Servicing Advance or P&I Advance as to which Servicer is not
reimbursed in accordance with Article IV hereof;

     (vii) Owner and/or any prior servicer’s failure to comply with Servicer’s Transfer
Instructions; or

     (viii) the refusal of Owner or any trustee or custodian in possession of an original
Mortgage loan Document to provide Servicer the originals of any Mortgage Loan Documents
within a reasonable amount of time after a request for such documents has been received in
order to allow Servicer sufficient time to process satisfaction, payoffs and releases.

Notwithstanding the foregoing, Owner shall not indemnify Servicer for any Losses for which Servicer
is required to indemnify Owner hereunder. The Owner or Servicer required to indemnify under this
Section 8.01 (the “Indemnitor”) shall immediately (i) notify the Owner or Servicer Indemnified
Party if a claim is made by a third party with respect to this Agreement, any Mortgage Loan and/or
any REO
Property, (ii) assume the defense of any such claim and pay all expenses in connection therewith,
including attorneys’ fees, and (iii) promptly pay, discharge and satisfy any judgment, award, or
decree that may be entered against it or the Indemnified Party in respect of such claim. Nothing
contained herein shall prohibit the Owner Indemnified Party or Servicer Indemnified Party, at its
expense, from retaining its own counsel to assist in any such proceedings or to observe such
proceedings; provided that neither party shall be obligated to pay or comply with any
settlement to which it has not consented. All amounts required to be paid or reimbursed by the
Indemnitor hereunder shall be paid or reimbursed as and when incurred by the Owner or Servicer
Indemnified Party, upon demand therefore by such Owner Indemnified Party or Servicer Indemnified
Party.

Section 8.02 Limitation on Liability

     Neither the Servicer nor any of the officers, employees or agents of the Servicer shall be
under any liability to the Owner for any action taken or for refraining from the taking of any
action in good faith pursuant to this Agreement or in accordance with applicable law, or for errors
in judgment made in good faith; provided, however, that this provision shall not protect the
Servicer or any such person against any breach of warranties or representations made herein, or
failure to perform the Servicer’s obligations in compliance with the provisions of this Agreement,
or any liability which would otherwise be imposed by reason of negligence or any breach of the
terms and conditions of this Agreement. The Servicer and any officer, employee or agent of the
Servicer may rely in good faith on any document of any kind prima facie properly executed and
submitted by the Owner respecting any matters arising hereunder. The Servicer shall not be under
any obligation to appear in, prosecute or defend any legal action which is not incidental to its
duties to service the

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Mortgage Loans in accordance with this Agreement and which in its opinion may
involve it in any expenses or liability.

Section 8.03 Merger or Consolidation of the Servicer.

     The Servicer shall keep in full effect its existence, rights and franchises as a corporation,
and shall preserve its qualification to do business as a foreign corporation in each jurisdiction
in which such qualification is or shall be necessary to protect the validity and enforceability of
this Agreement, or the ability of the Servicer to perform its duties under this Agreement.

     Any Person into which the Servicer may be merged or consolidated, or any corporation resulting
from any merger, conversion or consolidation to which the Servicer shall be a party, or any Person
succeeding to the business of the Servicer hereunder, shall be the successor of the Servicer
hereunder without the execution or filing of any paper or any further act on the part of either of
the parties hereto, anything herein to the contrary notwithstanding; provided, however, that the
successor or surviving Person shall be an institution (i) that is qualified to service mortgage
loans on behalf of Fannie Mae or Freddie Mac and (ii) that has a net worth of not less than
$15,000,000.

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ARTICLE IX

DEFAULT

Section 9.01 Events of Default.

     Event of Default, whenever used herein, means any one or more of the following events:

     (i) any failure by either Party to remit to the other Party any payment required to be
made under the terms of this Agreement that continues unremedied for a period of two days
after the date upon which written notice of such failure, requiring the same to be remedied,
shall have been received by the defaulting Party from the non-defaulting Party; or

     (ii) any failure on the part of either Party duly to observe or perform in any material
respect any other of the covenants or agreements on the part of such Party, or a breach of
the representations and warranties of such Party in any material respect, set forth in this
Agreement that continues unremedied for a period of 30 days after the date on which written
notice of such failure, requiring the same to be remedied, shall have been received by the
defaulting Party from the non-defaulting Party; or

     (iii) a decree or order of a court or agency or supervisory authority having
jurisdiction for the appointment of a trustee in bankruptcy, conservator, receiver or
liquidator in any bankruptcy, reorganization, insolvency, readjustment of debt, marshalling
of assets and liabilities or similar proceedings, or for the winding-up or liquidation of
its affairs, shall have been entered against a Party and such decree or order shall have
remained in force undischarged or unstayed for a period of 60 days; or

     (iv) with respect to Servicer only, the Servicer ceases to meet the qualifications of a
Fannie Mae/Freddie Mac servicer and such approvals are not reinstated within thirty (30)
days; or

     (v) failure by a Party to maintain the material licenses to do business in any
jurisdiction where the Mortgaged Property is located, but only to the extent such
non-qualification materially and adversely affects such Party’s ability to perform its
obligations hereunder.

     If an Event of Default shall occur, then so long as such Event of Default shall not have been
remedied, the non-defaulting Party may, by notice in writing to the defaulting Party, in addition
to whatever rights the non-defaulting Party may have at law or equity to damages, including
injunctive relief and specific performance, terminate all the rights and obligations of the
defaulting Party under this Agreement; provided, however, if the defaulting Party is the Owner, the
effective date of termination shall be the earlier of ninety (90) days and the effective date that
a successor shall have assumed the Servicer’s responsibilities and obligations hereunder in the
manner provided in Section 11.01, but not less than thirty (30) days after notice of termination is
delivered to the Owner. Termination of this Agreement by the Servicer shall not impair the Owner’s
right, title and interest in and to the Mortgage Loans. Further, if the defaulting party is the
Owner, Owner shall be required to pay all reasonable costs and expenses associated with the
transfer of the servicing function upon termination by Servicer. If the Event of Default involves the
Servicer, on or after the receipt by the

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Servicer of such
written notice subject to any effective date specified therein, but subject to any applicable right
to be reimbursed for undisputed outstanding Servicing Advances, P&I Advances, Servicing Fees, and
amounts otherwise due to Servicer under this Agreement, all authority and power of the Servicer
under this Agreement, whether with respect to the Mortgage Loans or otherwise, shall pass to and be
vested in the successor appointed pursuant to Section 11.01, it being specifically understood and
agreed that an element of damages to the Owner in the event of termination and transfer shall
include the difference between the Servicing Compensation and the negotiated fee for servicing
charged by the successor servicer, which negotiated fee with the successor servicer shall be
reasonable and customary fee to secure quality servicing of the portfolio in full compliance with
this Agreement. Any transfer of the servicing obligations pursuant to this paragraph shall not
release or otherwise reduce, waive, modify or diminish the liabilities of the defaulting Party to
the non-defaulting Party hereunder. Upon written request from the Owner, the Servicer shall
prepare, execute and deliver, any and all documents and other instruments, place in such
successor’s possession all Mortgage Files, and 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,
at the sole expense of the defaulting Party; provided, however, that the Servicer shall not have to
pay the cost to complete the transfer and endorsement or assignment of the Mortgage Loans if it
does not have record title thereto. The Servicer shall cooperate with the Owner and such successor
in effecting the termination of the Servicer’s responsibilities and rights hereunder, including,
without limitation, the transfer to such successor for administration by it of all cash amounts
(less any amounts due the Servicer pursuant to the terms of this Agreement) which shall at the time
be credited by the Servicer to the Custodial Account or Escrow Account or thereafter received with
respect to the Mortgage Loans.

ARTICLE X

TERMINATION; RECONSTITUTION

Section 10.01  ( Reserved )

Section 10.02  Termination Without Cause

     (a) The Owner may, at its sole option, terminate with respect to some or all of the Mortgage
Loans, any rights the Servicer may have hereunder, without cause, upon sixty (60) days prior
written notice and the payment to the Servicer of the purchase price paid by Servicer for the
Servicing Rights with respect to each of the affected Mortgage Loans.

     It is understood and agreed that the foregoing termination fee, and the “deboarding fee”
included within the definition of Servicing Compensation, are intended to cover all of Servicer’s
costs and expenses associated with the transfer of the servicing function upon termination pursuant
to this Section 10.02(a) for the transfer responsibilities set forth on Exhibit I hereto, including
without limitation, the forwarding by Servicer to any successor servicer, by overnight mail for the
thirty (30) day period immediately following the transfer and thereafter by respect to the Mortgage
Loan or the Mortgaged Property. The termination fee shall not cover the costs of (1) any MERS
transfer fee, necessitated by or payable in connection with the transfer of the servicing function,
or (2) retrieval and physical delivery of the Mortgage Loan Servicing Files to the successor
servicer by a vendor selected
by the Owner. Such costs shall be payable by the Owner. Notwithstanding

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anything contained
herein to the contrary, in the event that there are costs and expenses associated with such
transfer of the servicing function in addition to those costs and expenses associated with the
Servicer responsibilities set forth in Exhibit I and with the Owner responsibilities set forth in
this Section 10.02, the parties agree to negotiate in good faith to allocate responsibility for
such costs and expenses in a fair and reasonable manner.

     Upon such termination, any right of the Servicer to the Servicing Compensation with respect to
the affected Mortgage Loans shall terminate on the Effective Termination Date (as defined below),
except as otherwise provided herein. Any such notice of termination shall be in writing and
delivered to the Servicer by Owner as provided in Section 11.07 of this Agreement. Owner shall not
adversely select the Mortgage Loans with respect to which this Agreement is terminated such that
the costs and burdens of servicing pursuant to this Agreement are materially increased.

     Termination pursuant to this Section 10.02(a) shall be effective on the date on which the
Servicer transfers all responsibilities, rights, duties and obligations under this Agreement to the
successor appointed pursuant to Section 11.01 and sixty (60) days from the date of notice of
termination (for purposes of this Section 10.02(a) only, the “Effective Termination Date.”).

     (b) Following twelve (12) months after the applicable Effective Date, Servicer may terminate,
at its sole option, the Agreement with respect to some or all of the Mortgage Loans or REO
Property, without cause. Such termination shall not become effective until the earlier of: (i) one
hundred twenty (120) days after the date on which notice of termination is provided by the Servicer
in writing and delivered to the Owner by registered mail, or (ii) a successor shall have assumed
the Servicer’s responsibilities and obligations hereunder in the manner provided in Section 11.01.
In the event the Servicer terminates the Agreement without cause with respect to some or all of the
Mortgage Loans, the Owner shall not be required to pay to the Servicer the applicable deboarding
fee included within the definition of Servicing Compensation and Servicer shall pay all its costs
and expenses of transfer; provided, however, that the Servicer shall be entitled to reimbursement
of the Servicing Advances in the same timeframe as if Servicer had not terminated this Agreement.

     (c) If Owner or its employees appear on or are members of any organization that appears on any
government list, including, but not limited to, the Control List prepared by the Office of Foreign
Assets Control (“OFAC”) of the Department of the Treasury, then Servicer may take all measures
authorized under applicable law and may, by giving written notice thereof to Consultant, terminate
this Agreement upon the date specified in the notice, which date may be the date of the notice.

Section 10.03 Removal of Mortgage Loans From Inclusion Under This Agreement

     The Servicer and the Owner agree that with respect to some or all of the Mortgage Loans, the
Owner may effect either:

          (1) one or more Whole Loan Transfers;

          (2) one or more Pass-Through Transfers;

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provided, however, that no Mortgage Loan shall be reconstituted more than four (4) times.

     The Servicer and the Owner acknowledge and agree that the Servicer is not obligated hereunder
to act as servicer in any Reconstitution that is inconsistent with the provisions of this Section
10.03 . The Owner is not obligated hereunder to offer the Servicer the opportunity to act as
servicer in any Reconstitution; provided however that in the event the Owner does not offer such
opportunity to the Servicer the Owner will pay to the Servicer an amount equal to the purchase
price paid by the Servicer for the Servicing Rights with respect to each of the affected Mortgage
Loans.

     The Servicer shall reasonably cooperate with the Owner in connection with any Whole Loan
Transfer or Pass-Through Transfer contemplated by the Owner pursuant to this Section 10.03,
provided, however, that under no circumstances and in no event shall such cooperation include any
act of the Servicer or any event affecting the Servicer that would materially increase the
Servicer’s liabilities or obligations beyond those liabilities and obligations contained in this
Agreement (except as otherwise set forth in this Section 10.03).

     In connection with any Reconstitution in which the Owner and the Servicer have agreed that the
Servicer shall act as the servicer in the Reconstitution, the Owner shall deliver any agreement
(the “Reconstitution Agreement”) or other document related to the Whole Loan Transfer or Pass
Through Transfer to the Servicer at least 10 Business Days prior to such transfer; the Servicer’s
refusal to cooperate with Owner based on late delivery of such documents shall result in no
liability to the Servicer. Such Reconstitution Agreement may, in the Owner’s discretion, contain
contractual provisions not set forth in this Agreement, including, but not limited to, (i)
customary certificate payment delays, (ii) servicer advance requirements for the advancing of
delinquent scheduled payments of principal and interest through liquidation (unless deemed
non-recoverable), (iii) servicer obligations to pay compensating interest for prepayment interest
shortfalls (to the extent of the monthly servicing fee payable to the servicer), (iv)
representations and warranties (dated as of the Reconstitution Date) of the Servicer conforming in
all material respects to the representations and warranties in this Agreement, and (v) such
provisions with regard to servicing responsibilities, investor reporting, segregation and deposit
of principal and interest payments, custody of the Mortgage Loans, and other provisions that
conform to secondary market standards for mortgage-backed securities backed by mortgage loans
similar to the Mortgage Loans or as may be required by one or more Rating Agencies. The Servicer
shall promptly review such Reconstitution Agreement and/or related documents, and provided that
such Reconstitution Agreement contains servicing provisions substantially similar to those herein
or otherwise acceptable to the Servicer in its sole discretion, shall execute such Reconstitution
Agreement and/or related documents. The Servicer’s refusal to execute any Reconstitution Agreement
or related documents may be based on any provision that materially (a) increases the liability of
the Servicer and/or (b) affects Servicer’s profitability from that contemplated herein. The Owner
hereby agrees to reimburse the Servicer for reasonable out-of-pocket expenses incurred by the
Servicer that relate to reviewing and commenting on the Reconstitution Agreement for such Whole
Loan Transfer or Pass-Through Transfer. Any cooperation from the Servicer in connection with any
Whole Loan Transfer or Pass-Through Transfer contemplated by this Section shall include, upon
request by the Owner, delivery of a legal opinion relating to the Servicer substantially similar to
that attached hereto as Exhibit L

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and the furnishing of customary information for use in an
offering document for such Pass-Through Transfer, for Pass-Through Transfers of this type, relating
to the Servicer and its servicing
practices and portfolio, which in form and substance is reasonably acceptable to the Servicer
(the “Servicer Information”). The Servicer shall indemnify the Owner, each Affiliate of the Owner
participating in any such Reconstitution and each Person who controls the Owner or such Affiliate,
and their respective officers and directors, and hold each of them harmless from and against any
losses, damages, penalties, fines, forfeitures, reasonable and necessary legal fees and related
costs, judgments, and any other costs, fees and expenses that each of them may sustain arising
directly from Servicer Information; provided, however, that any numerical information regarding
Servicer, including delinquency statistics, appearing in table format or otherwise, is confirmed by
an independent accounting firm selected by Servicer at the Owner’s expense. The Owner shall
indemnify the Servicer and each Person who controls the Servicer or such Affiliate and hold each of
them harmless from and against any losses, damages, penalties, fines, forfeitures, reasonable and
necessary legal fees and related costs, judgments, and any other costs, fees and expenses that each
of them may sustain in any way related to any Reconstitution other than any losses, damages,
penalties, fines, forfeitures, reasonable and necessary legal fees and related costs, judgments,
and any other costs, fees and expenses that each of them may sustain as a result of the Servicer
Information.

     If requested by the Owner in connection with any Reconstitution, the Servicer and the Owner
shall execute a letter agreement setting forth the indemnification obligations set forth in this
Section 10.03. In the event that the Servicer is not the master servicer, servicer or sub-servicer
with respect to a Reconstitution, any and all reasonable costs, fees and expenses incurred by
Servicer in connection with the foregoing shall be reimbursed by Owner after receipt of an invoice
therefor. Any execution of a subservicing agreement or pooling and servicing agreement by the
Servicer shall be conditioned on the Servicer receiving servicing compensation that is reasonably
acceptable to Servicer based on providing reasonably equivalent economic value to the total
Servicing Compensation under this Agreement. Notwithstanding any provision to the contrary in this
Agreement, in the event that the Servicer is the master servicer, servicer or sub-servicer with
respect to a Reconstitution, the Owner agrees that in such Reconstitution any servicing performance
termination triggers shall be approved by the Servicer in its reasonable discretion; provided, that
in the event that the Servicer does not approve any servicing performance termination triggers, the
Owner shall, with respect to the Reconstitution, have the right to terminate the Servicer hereunder
(a “Servicing Performance Trigger Termination”) and designate a successor servicer to act as master
servicer, servicer or sub-servicer upon payment to the Servicer of the purchase price paid by the
Servicer for the Servicing Rights with respect to each of the affected Mortgage Loans .

     All Mortgage Loans not sold or transferred pursuant to a Whole Loan Transfer or Pass-Through
Transfer shall be subject to this Agreement and shall continue to be serviced in accordance with
the terms of this Agreement and with respect thereto this Agreement shall remain in full force and
effect.

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ARTICLE XI

MISCELLANEOUS PROVISIONS

Section 11.01 Successor to the Servicer.

     Prior to termination of the Servicer’s responsibilities and duties under this Agreement
pursuant to Section 8.03, 9.01, or 10.02, the Owner shall (i) succeed to and assume all of the
Servicer’s responsibilities, rights, duties and obligations under this Agreement, or (ii) appoint a
successor which shall succeed to all rights and assume all of the responsibilities, duties and
liabilities of the Servicer under this Agreement prior to the termination of Servicer’s
responsibilities, duties and liabilities under this Agreement. In connection with such appointment
and assumption, the Owner may make such arrangements for the compensation of such successor out of
payments on Mortgage Loans as it and such successor shall agree. The Servicer shall discharge its
duties and responsibilities during the period from the date it acquires knowledge of such
termination until the effective date thereof with the same degree of diligence and prudence that it
is obligated to exercise under this Agreement.

     Any successor appointed as provided herein shall execute, acknowledge and deliver to the
Servicer and to the Owner an instrument accepting such appointment, whereupon such successor shall
become fully vested with all the rights, powers, duties, responsibilities, obligations and
liabilities of the Servicer, with like effect as if originally named as a party to this Agreement.
No termination of the Servicer or this Agreement shall affect any claims that the Owner may have
against the Servicer or that Servicer may have against Owner arising prior to any such termination
or resignation.

     The Servicer shall timely deliver to its successor the funds in the Custodial Account and the
Escrow Account (less any amounts to which the Servicer is entitled pursuant to the terms of this
Agreement) and all Mortgage Loan Servicing Files and related documents and statements held by it
hereunder and the Servicer shall account for all funds. The Servicer shall execute and deliver
such instruments and do such other things all as may reasonably be required to more fully and
definitely vest and confirm in the successor all such rights, powers, duties, responsibilities,
obligations and liabilities of the Servicer, including without limitation, the requirements set
forth in Exhibit I hereto. Servicer and Owner shall be liable for the costs and expenses
associated with the transfer of the servicing function as set forth throughout this Agreement.

     Upon a successor’s acceptance of appointment as such, the Servicer shall notify by mail the
Owner of such appointment.

Section 11.02 No Waiver.

     No delay or omission by either party in exercising any right or remedy hereunder shall operate
as a waiver or estoppel thereof or of any other right or remedy, and no single or partial exercise
thereof shall preclude any other or further exercise thereof or the exercise of any other right or
remedy. The failure at any time or times hereafter to require strict performance by either party
of any of the provisions, terms and conditions contained in this Agreement, or any other agreement,
document or instrument now or hereafter executed by the parties, shall not waive, affect, or
diminish any right of the other party hereafter to demand strict compliance or performance
therewith and with respect to any provisions, terms and conditions contained in such agreements,
documents and instruments at any other time, and waiver of any default shall not waive or affect
any other default, whether prior or subsequent thereto, and whether of the same or a different
type. None of the

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warranties, conditions, provisions, and terms contained in this Agreement or any
other agreement, document or instrument now or hereafter executed by the parties shall be deemed to
have been waived by any act or knowledge
of a party, its agents, officers or employees, unless the other party is so advised by written
instrument signed by an elected officer of said party and is directed to the other party specifying
each waiver.

Section 11.03 Amendment.

     This Agreement may be amended only by written agreement signed by the Servicer and Owner
hereunder.

Section 11.04 No Solicitations.

     Servicer agrees that it will not take any action or permit or cause any action to be taken by
Servicer, any of its agents or affiliates, or by any independent contractors on Servicer’s behalf,
personally, by telephone, the internet, mail, or otherwise, to solicit any Mortgagor either to
refinance such Mortgagor’s Mortgage Loan, in whole or in part, or for any other product or service
without the prior written consent of the Owner. It is understood and agreed that all rights and
benefits relating to the solicitation of any Mortgagor to refinance such Mortgagor’s Mortgage Loan
and the attendant rights, title and interest in and to the list of such Mortgagor and data relating
to such Mortgagor’s Mortgage Loans shall be retained by Owner pursuant hereto and Servicer shall
take no action to undermine these rights and benefits. Notwithstanding the foregoing, it is
understood and agreed that promotions undertaken by or on behalf of the Servicer or any affiliate
of the Servicer which are directed to the general public at large, or segments thereof, provided
that no segment shall consist primarily of the Mortgage Loans, including, without limitation, mass
mailing, newspaper, radio and television advertisements, website ads, monthly account statements or
“VRU” recorded communications or from serving the refinancing needs of a Mortgagor who, without
solicitation, contacts the Servicer in connection with the refinance of such Mortgage or Mortgage
Loan shall not constitute solicitation under this section. Servicer shall use its best efforts to
prevent the sale of the name of any Mortgagor to any person.

Section 11.05 Duration of Agreement.

     This Agreement shall continue in existence and effect until terminated as herein provided.

Section 11.06 Governing Law.

     This Agreement shall be construed in accordance with the laws of the Commonwealth of
Pennsylvania, except to the extent preempted by Federal law but without regard to principles of
conflicts of laws, and the obligations, rights and remedies of the parties hereunder shall be
determined in accordance with such laws.

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Section 11.07 Notices.

     Any communications provided for or permitted hereunder shall be in writing and, unless
otherwise expressly provided herein, shall be deemed to have been duly given if (a) personally
delivered, (b) mailed by registered mail, postage prepaid, return receipt requested, and received
by the addressee, (c) sent by express courier delivery service and received by the addressee, or
(d) transmitted by telex, telecopy or telegraph and confirmed by a writing delivered by means of
(a), (b) or (c), to: (i) in the case of the Servicer, 100 Witmer Road, Horsham, PA 19044, ATTN:
Executive Vice President of National Loan Administration or such other address as may hereafter be
furnished to the Owner in writing by the Servicer, with a copy to the Servicer General Counsel at
the same address and (ii) in the case of the Owner, One Belvedere Place, #310, Mill Valley,
California, 94941.

Section 11.08 Severability of Provisions.

     If any one or more of the covenants, agreements, provisions or terms of this Agreement shall
be held invalid for any reason whatsoever, 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. Any part, provision, representation or warranty of this Agreement which is prohibited
or unenforceable or is held to be void or unenforceable in any jurisdiction shall be ineffective,
as to such jurisdiction, 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.

Section 11.09 No Partnership.

     Nothing herein contained shall be deemed or construed to create a co-partnership or joint
venture between the parties hereto and the services of the Servicer shall be rendered as an
independent contractor and not as agent for the Owner.

Section 11.10 Counterparts.

     This Agreement may be executed in any number of counterparts and by different parties hereto
on separate counterparts, each of which shall be deemed to be an original. Such counterparts shall
constitute one and the same agreement.

Section 11.11 Successors and Assigns.

     The Servicer may not assign this Agreement or delegate a material portion of its duties
hereunder (except to any affiliate or subsidiary of the Servicer) to any transferee servicer
without the written consent of Owner, which consent shall not be unreasonably withheld or delayed.
Any transferee servicer (including any affiliate or subsidiary of the Servicer) must meet the
eligibility requirements for a successor servicer pursuant to Section 8.03 hereof. This Agreement
shall inure to the benefit of and be binding upon the Servicer and the Owner and their respective
successors and assigns.

43

 

Section 11.12 Time of Payment.

     Unless otherwise specifically set forth in this Agreement, any amount due to Owner or Servicer
under this Agreement will be due and payable thirty (30) days following receipt by the paying Party
of the invoice from the other Party. All amounts will be payable by wire transfer, in accordance
with payment instructions provided from time to time.

     Any amount not paid when due as set forth in this Agreement will bear interest until paid at a
rate of interest equal to the prime rate established from time to time by The Wall Street Journal,
“Money Rates.” If any portion of an amount due to a Party under this Agreement is subject to a
bona fide dispute between the Parties, the other Party will pay to that Party on the date such
amount is due all amounts not disputed in good faith.

Section 11.13 General Interpretive Principles.

     For purposes of this Agreement, except as otherwise expressly provided or unless the context
otherwise requires:

     (a) the terms defined in this Agreement have the meanings assigned to them in this
Agreement and include the plural as well as the singular, and the use of any gender herein
shall be deemed to include the other gender;

     (b) accounting terms not otherwise defined herein have the meanings assigned to them in
accordance with generally accepted accounting principles;

     (c) references herein to “Articles”, “Sections”, “Subsections”, “Paragraphs”, and other
subdivisions without reference to a document are to designated Articles, Sections,
Subsections, Paragraphs, Clauses and other subdivisions of this Agreement;

     (d) a reference to a Subsection without further reference to a Section is a reference
to such Subsection as contained in the same Section in which the reference appears, and this
rule shall also apply to Paragraphs, Clauses, and other subdivisions;

     (e) the words “herein”, “hereof”, “hereunder” and other words of similar import refer
to this Agreement as a whole and not to any particular provision; and

     (f) the term “include” or “including” shall mean without limitation by reason of
enumeration.

Section 11.14 Entire Agreement.

     Each of the Servicer and the Owner acknowledge that no representations, agreements or promises
were made to it by the other party or any of its employees other than those representations,
agreements or promises specifically contained herein. This Agreement between the Servicer and the
Owner set forth the entire understanding between the parties hereto with respect to the matters set
forth herein and shall be binding upon all successors of both parties.

 

44

 

Section 11.15 Force Majeure.

     The Servicer and the Owner shall be excused for the period of any delay in the performance of
any obligations under this Agreement when prevented from performing such obligations by cause or
causes beyond their reasonable control, including, without limitation, civil commotion, war
invasions, rebellion, hostilities, military or usurped power, sabotage, pestilence, riots fire or
other casualty or acts of God.

[SIGNATURES CONTAINED ON THE FOLLOWING PAGE]

45

 

     IN WITNESS WHEREOF, the Servicer and the Owner have caused their names to be signed hereto by
their respective officers thereunto duly authorized as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	GMAC MORTGAGE CORPORATION,	 	 
	 	 	Servicer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	RWT HOLDINGS, INC.,	 	 
	 	 	Owner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

46

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	COMMONWEALTH OF	 	 	 	 	)	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	)	 SS.	 	 	 	 
	COUNTY OF

	 	 	 	 	 	 	)	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

     On the                     day of                      before me, a Notary Public in and for said State, personally
appeared                      known to me to be                      of GMAC Mortgage
Corporation, that executed the within instrument and also known to me to be the person who executed
it on behalf of said association, and acknowledged to me that such association executed the within
instrument.

     IN WITNESS WHEREOF, I have hereunto set my hand affixed my official seal the day and year in
this certificate first above written.

	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Notary Public	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	My Commission expires	 	 	 	 
	 

	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	STATE OF

	 	 	 	 	)	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	)	 SS.	 	 
	COUNTY OF

	 	 	 	 	)	 	 	 
	 

	 	 	 	 	 	 	 	 

     On the                      day of                      before me, a Notary Public in and for said State, personally
appeared                      known to me to be a                      of RWT Holdings, Inc.,
that executed the within instrument and also known to me to be the person who executed it on behalf
of RWT Holdings, Inc., and acknowledged to me that RWT Holdings, Inc. executed the within
instrument.

     IN WITNESS WHEREOF, I have hereunto set my hand affixed my official seal the day and year in
this certificate first above written.

	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Notary Public	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	My Commission expires	 	 	 	 
	 

	 	 	 	 	 	 

47

 

 

EXHIBIT A

ELIGIBILITY CRITERIA FOR RESIDENTIAL MORTGAGE LOANS

 

 

EXHIBIT B

[RESERVED]

 

 

EXHIBIT C

MORTGAGE FILE AND MORTGAGE LOAN SERVICING FILE CONTENTS

 

 

EXHIBIT D

TRANSFER INSTRUCTIONS

 

 

EXHIBIT E

FORM OF LIMITED CORPORATE RESOLUTION

RESOLUTION OF THE BOARD OF DIRECTORS OF RWT HOLDINGS, INC.

APPOINTMENT OF CERTAIN OFFICERS

FOR PURPOSES OF EXECUTING CERTAIN DOCUMENTS

     WHEREAS, RWT Holdings, Inc. (the “Company”) desires to execute documents necessary to perfect
the release of mortgage loans and the initiation of foreclosure actions (the “Releases” and
“Foreclosures”) regarding certain Mortgage Loans serviced by GMAC Mortgage Corporation on behalf of
RWT Holdings, Inc., and that these Releases and Foreclosures may be best and most efficiently
accomplished by the appointment of certain officers of the Company with special power to execute
the individual documents to be recorded on behalf of the Company.

     NOW, THEREFORE, BE IT RESOLVED, that the persons named on Exhibit A attached hereto be, and
each of them hereby are appointed as officers of the Company to be effective as of the first day of
                    , 2003 and terminating upon GMAC Mortgage Corporation’s receipt of the last recorded
assignment, as indicated below with full power to execute on behalf of the Company, by actual or
facsimile signature, all documents in connection with the Releases and Foreclosures; and

     FURTHER RESOLVED, that the Board is informed and aware that the persons named on Exhibit A
attached hereto are employees of GMAC Mortgage Corporation, and that they may from time to time be
named as officers by other corporations for purposes similar to that set forth in these
resolutions; and

     FURTHER RESOLVED, that the foregoing appointments and grants of power and authority are
revocable upon completion of the project related to the Releases and Foreclosures; and the
authority of the persons so appointed is specifically and strictly limited to the execution of the
specific documents referred to above for the purposes herein authorized; and

     FURTHER RESOLVED, that the foregoing appointments and grants of power and authority shall not
be deemed to (i) entitle any of the persons so appointed to receive any compensation or other
benefits from the Company or any of its affiliates or (ii) create any employer-employee
relationship between the Company or any of its affiliates any such persons; and

     FURTHER RESOLVED, that the Secretary and each Assistant Secretary (other than any Assistant
Secretary appointed by these resolutions) of the Company are hereby authorized and directed from
time to time to certify copies of these resolutions, the incumbency of the officers appointed
pursuant to these resolutions, and the actual facsimile signatures of said officers.

1

 

CERTIFICATE OF RESOLUTION

     I, THE UNDERSIGNED, Secretary of RWT Holdings, Inc., a                     , having its principal
place of business at One Belvedere Place, #300, Mill Valley, California, 94941, hereby certify that
the attached is a true copy of a certain resolution duly adopted by the Board of Directors of RWT
Holdings, Inc. in accordance with its Bylaws at, and recorded in the minutes of, a meeting of the
Board duly held on                     , 2003 as taken from the minutes of the meeting and compared by me
with the original of the resolution recorded in the minutes. I further certify that the resolution
is in full force and effect and has not been revoked.

     IN WITNESS WHEREOF, I set my hand and caused the seal of                      to be affixed hereto on
this            day of                                         , 2003.

	 	 	 
	 
	 	 
	 

	 	 
	 

	 	Name, title

     Subscribed and sworn to before me this            day of                                         , 2003

	 	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 

	 	Notary Public	 	 
	 
	 	 	 	 
	 

	 	My commission expires:	 	 
	 

	 	 	 	 

2

 

Exhibit A

	 	 	 	 	 	 	 
	Name	 	 	 	Title to Which Appointed	 	 
	Kenneth R. Perkins

	 	 	 	Vice President	 	 
	Wesley B. Howland

	 	 	 	Vice President	 	 
	Susan Meier

	 	 	 	Vice President	 	 
	Lionel Antunes

	 	 	 	Vice President	 	 
	Daniel Katella

	 	 	 	Vice President	 	 
	Kathy Fitzgerald

	 	 	 	Vice President	 	 
	Liz Yeranosian

	 	 	 	Vice President	 	 
	Dianna Sandoval

	 	 	 	Vice President	 	 
	Joyce Petty

	 	 	 	Vice President	 	 
	Rosalie Solano

	 	 	 	Vice President	 	 
	Linda Walton

	 	 	 	Vice President	 	 
	Laura Siess

	 	 	 	Vice President	 	 
	Christine Foresmann

	 	 	 	Assistant Vice President	 	 
	Debi Pond

	 	 	 	Assistant Vice President	 	 
	Hilari Spring

	 	 	 	Assistant Vice President	 	 
	Margie Kwaitanowski

	 	 	 	Assistant Vice President	 	 
	Sheryl McNally

	 	 	 	Assistant Vice President	 	 
	Jody Henson

	 	 	 	Assistant Vice President	 	 
	Ryan Carnes

	 	 	 	Assistant Vice President	 	 
	Roberta Pettengill

	 	 	 	Assistant Vice President	 	 
	Vickie Ingamells

	 	 	 	Assistant Vice President	 	 
	Kim Farrell

	 	 	 	Assistant Secretary	 	 
	Lynne Malara

	 	 	 	Assistant Secretary	 	 
	Jenny Brouwer

	 	 	 	Assistant Secretary	 	 

3

 

EXHIBIT F

CUSTODIAL ACCOUNT LETTER AGREEMENT

	 	 	 	 	 
	To:
	 	 	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

(the “Depository”)
	 	 

     As “Servicer” under the Loan Servicing Agreement, dated as of                     ,                     
(the “Agreement”), we hereby authorize and request you to establish an account, as a Custodial
Account pursuant to Section 4.04 of the Agreement, to be designated as “GMAC Mortgage Corporation,
in trust for the Owner -                     Mortgage Loans — Group No.            and various Mortgagors.”
All deposits in the account shall be subject to withdrawal there from by order signed by the
Servicer. This letter is submitted to you in duplicate. Please execute and return one original to
us.

	 	 	 	 	 	 	 
	 	 	GMAC Mortgage Corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

	 	 

     The undersigned, as “Depository”, hereby certifies that the above described account has been
established under Account Number                                         , at the office of the Depository indicated
above, and agrees to honor withdrawals on such account as provided above. The amount deposited at
any time in the account will be insured by the Federal Deposit Insurance Corporation to the extent
available under applicable law.

	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	(name of Depository)	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

	 	 

 

 

EXHIBIT G

ESCROW ACCOUNT LETTER AGREEMENT

	 	 	 	 	 
	To:
	 	 	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

(the “Depository”)
	 	 

     As “Servicer” under the Loan Servicing Agreement, dated as of                     ,                     Mortgage Loans (the “Agreement”), we hereby authorize and request you to certify that
 an account
exists titled “GMAC Mortgage Corporation, in trust for the Owner as indicated on GMAC Mortgage
Corporation’s records and various mortgagors.” All deposits in the account shall be subject to
withdrawal there from by order signed by the Servicer. This letter is submitted to you in
duplicate. Please execute and return one original to us.

	 	 	 	 	 	 	 
	 	 	GMAC Mortgage Corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

	 	 

     The undersigned, as “Depository”, hereby certifies that the above described account has been
established under Account Number                                         , at the office of the Depository indicated
above, and agrees to honor withdrawals on such account as provided above. The amount deposited at
any time in the account will be insured by the Federal Deposit Insurance Corporation to the extent
available under applicable law.

	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	(name of Depository)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 

 

 

EXHIBIT H

FORM OF MONTHLY REMITTANCE STATEMENT

 

 

EXHIBIT I

SERVICER’S RESPONSIBILITIES UPON TRANSFER OF SERVICING

     With respect to a transfer of servicing responsibilities to a successor servicer, the
obligations of the Servicer under Section 11.01 shall consist of the following:

	 	•	 	furnishing to the successor electronic records in an industry standard format
reasonably acceptable to the successor reflecting the status of payments, balances and
other pertinent information with respect to the Mortgage Loans as of such date mutually
agreed upon by Owner and Servicer, including, but not limited to: (i) master file; (ii)
escrow file; (iii) payee file, which includes comprehensive tax and insurance
information identifying payee, payee address, next payment due date, next amount
payable and policy number/parcel number; (iv) automatic payment draft file, which
includes loan identifying information; (v) Adjustable Rate Mortgage Loan master file;
(vi) Adjustable Rate Mortgage Loan history; and (vii) any other information reasonably
requested by Owner to be furnished to the successor. 
	 
	 	•	 	delivering written notice to: (1) all hazard, flood and earthquake insurance
companies and/or their agents, all taxing authorities, flood determination companies
and tax servicers and/or their agents, of the transfer of servicing, and (2) any and
all mortgage insurance companies providing any Primary Mortgage Insurance Policy of the
change in insured’s name on each such policy to Owner’s name in care of the successor.

     With respect to Mortgage Loans secured by Mortgaged Properties located in Federal Emergency
Management Agency designated flood areas, as of the date of transfer flood insurance policies will
be in full force and effect in the amounts required by Owner under Applicable Requirements.

     As of the date of transfer all Mortgaged Properties will be insured against fire and have
extended coverage insurance in the amounts required by Fannie Mae all insurance premiums on such
insurance policies will have been paid in a timely manner. Servicer will notify Owner of any fire
losses on the Mortgaged Properties where Servicer’s estimate of loss is materially greater than the
net recovery from the fire insurance carrier and fire losses on the Mortgaged Properties as to
which there is a pending coinsurance claim.

	 	•	 	transferring all tax service contracts to the successor and providing the successor
with an electronic file identifying (i) tax type, payment frequency, payee code, tax
amount last paid, next due date, parcel number, and (ii) each such tax contract, if
any, by contract number subject to Owner’s payment obligations under Section 2.04
hereof.
	 
	 	•	 	delivering the “Goodbye Letter” in accordance with applicable law to each related
Mortgagor.
	 
	 	•	 	providing the successor with (a) copies of all assumption agreements generated by or
on

1

 

	 	 	 	behalf of the Owner within the sixty (60) days preceding such Servicing Transfer
Date and (b) a list of all assumptions in process.
	 
	 	•	 	furnishing electronic copies of all accounting reports relating to the Mortgage Loan
as of the related Servicing Transfer Date including, but not limited to, a trial
balance and reports of collections, delinquencies, prepayments in full, curtailments,
escrow payments, escrow balances, partial payments, partial payment balances and other
like information with respect to each Mortgage Loan.

2

 

EXHIBIT J

LIST OF REPORTS

 

 

EXHIBIT K

FORM OF CUSTODIAL AGREEMENT

 

 

EXHIBIT L

RECONSTITUTION FORM OPINION

 [Date]

To the Addresses identified on Schedule A attached hereto

Re:

Ladies and Gentlemen:

     I am associate counsel of GMAC Mortgage Corporation, a Pennsylvania corporation (the
“Company”), and have represented the Company in connection with the preparation, execution
and delivery of the following documents:

     In this connection, I have examined, or caused to be examined, originals, or copies certified
to my satisfaction, of the [                                        ] (collectively, the “Agreements”), and such
other documents, certificates and instruments which I have deemed necessary or appropriate in
connection with this opinion. As to matters of fact, I have examined and relied upon
representations, warranties and covenants of parties to the above documents contained therein and,
where I have deemed appropriate, representations or certifications of officers of parties to the
Agreements or public officials. In rendering this opinion letter, I have assumed (i) the
authenticity of all documents submitted to me as originals, the genuineness of all signatures, the
legal capacity of natural persons and the conformity to the originals of all documents submitted to
me as copies, (ii) with respect to parties other than the Company, the due authorization, execution
and delivery of such documents, and the necessary entity power with respect thereto, and the
enforceability of such documents, (iii) the conformity of the Mortgage Loans and the documents set
forth in Section [                    ] of the Pooling and Servicing Agreement to the requirements of the
Agreements and (iv) that there is not and will not be any other agreement that modifies or
supplements the agreements expressed in the Agreements.

     In rendering this opinion letter, I do not express any opinion concerning any law other than
the law of the Commonwealth of Pennsylvania and the federal law of the United States, and I do not
express any opinion concerning the application of the “doing business” laws. To the extent that
any of the matters upon which I am opining herein are governed by laws (“Other Laws”) other
than the laws identified in the preceding sentence, I have assumed with your permission and without
independent verification or investigation as to the reasonableness of such assumption, that such
Other Laws and judicial interpretation thereof do not vary in any respect material to this opinion
from the corresponding laws of the Commonwealth of Pennsylvania and judicial interpretations
thereof. I do not express any opinion on any issue not expressly addressed below.

1

 

     My opinions set forth below are subject to the qualification that enforceability of each of
the respective obligations of the parties under the Agreements is subject to (i) general principles
of equity, regardless of whether such enforceability is considered in a proceeding in equity or at
law, (ii) the availability of equitable remedies, (iii) bankruptcy, insolvency, liquidation,
receivership, moratorium, reorganization or other similar laws affecting the rights of creditors,
(iv) implied or express covenants of good faith, and (v) limitations of public policy under
applicable securities laws as to rights of indemnity and contribution thereunder. My opinions are
subject to the further qualification that enforceability of each of the parties’ respective
obligations under the Agreements is subject to the effect of certain laws, regulations and judicial
or other decisions upon the availability and enforceability of the remedies of specific performance
and self help. Capitalized terms used herein, but not defined herein, shall have the meanings
assigned to them in the Agreements.

     Based upon the foregoing, but subject to the assumptions, exceptions, qualifications and
limitations herein expressed, I am of the opinion that:

     1. The Company is duly incorporated and validly existing as a corporation in good standing
under the laws of the Commonwealth of Pennsylvania and has the requisite power to own its
properties, to conduct its business as presently conducted by it and to enter into and perform its
obligations under the respective Agreements to which it is a party.

     2. Each of the Agreements to which it is a party has been duly authorized, executed and
delivered by the Company, and, assuming the authorization, execution and delivery by the other
parties thereto (other than the Company), is the legal, valid and binding agreement of the Company,
enforceable against it in accordance with its terms.

     The opinions set forth herein are intended solely for the benefit of the addressees hereof in
connection with the transactions contemplated herein and shall not be relied upon by any other
person or for any other purpose without my prior written consent. Except for reproductions for
inclusion in transcripts of the documentation relating to the transactions contemplated herein,
this opinion may not be copied or otherwise reproduced or quoted from, in whole or in part, without
my prior written consent.

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 Corporate Counsel,	 	 
	 

	 	 	 	GMAC Mortgage Corporation	 	 

2

 

EXECUTION

REGULATION AB COMPLIANCE ADDENDUM

Dated as of January 1, 2006

between

GMAC MORTGAGE, LLC (successor in interest to GMAC MORTGAGE

CORPORATION)

and

RWT HOLDINGS, INC.

to the

LOAN

SERVICING AGREEMENT,

Dated as of February 1, 2004

 

 

     REGULATION AB COMPLIANCE ADDENDUM (the “Reg AB Addendum”), dated as of January 1, 2006, by and
between RWT Holdings, Inc. (the “Owner”) and GMAC Mortgage, LLC, a Delaware limited liability
company, successor in interest to GMAC Mortgage Corporation, (the “Servicer”), to that certain Loan
Servicing Agreement, dated as of February 1, 2004, by and between the Owner and GMAC Mortgage
Corporation (the “Existing Agreement”). The Servicer agrees to be bound by the Existing Agreement
as if it was a party thereto on the date the same was executed. The Owner accepts the conversion
of the Servicer from a Pennsylvania corporation to a Delaware limited liability company.

WITNESSETH

     WHEREAS, the Owner and the Servicer have agreed to, subject to the terms and conditions of
this Reg AB Addendum, adopt an addendum to the Existing Agreement to reflect the intention of the
parties to comply with Regulation AB. The Existing Agreement shall be referred to herein as “the
Agreement”.

     NOW, THEREFORE, in consideration of the mutual promises and mutual obligations set forth here,
the Owner and the Servicer hereby agree as follows:

ARTICLE I

DEFINED TERMS

     Capitalized terms used but not otherwise defined herein shall have the meanings assigned to
them in the Existing Agreement. The Existing Agreement is hereby amended by adding the following
definitions in their proper alphabetical order:

     Commission: The United States Securities and Exchange Commission.

     Servicer Information: As defined in Section 2.07(a).

     Depositor: The depositor, as such term is defined in Regulation AB, with respect to any
Securitization Transaction.

     Exchange Act: The Securities Exchange Act of 1934, as amended.

     Master Servicer: With respect to a Securitization Transaction, the “master servicer”, if any,
identified by the Owner and identified in related transaction documents.

     Reconstitution: Any Securitization Transaction or Whole Loan Transfer.

     Reconstitution Agreement: An agreement or agreements entered into by the Servicer and the
Owner and/or certain third parties in connection with a Reconstitution with respect to any or all
of the Mortgage Loans serviced under the Agreement.

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

 1 of 14

 

and interpretation as have been provided by the Commission in the adopting release (Asset-Backed
Securities, Securities Act Release No. 33-8518, 70 Fed. Reg. 1,506, 1,531 (Jan. 7, 2005)) or by the
staff of the Commission, or as may be provided by the Commission or its staff from time to time.

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

     Securitization Transaction: Any transaction involving either (1) a sale or other transfer of
some or all of the Mortgage Loans directly or indirectly to an issuing entity in connection with an
issuance of publicly offered or privately placed, rated or unrated mortgage-backed securities or
(2) an issuance of publicly offered or privately placed, rated or unrated securities, the payments
on which are determined primarily by reference to one or more portfolios of residential mortgage
loans consisting, in whole or in part, of some or all of the Mortgage Loans.

     Servicer: As defined in Section 2.03(c).

     Servicing Criteria: The “servicing criteria” set forth in Item 1122(d) of Regulation AB, as
such may be amended from time to time.

     Subcontractor: Any vendor, subcontractor or other Person that is not responsible for the
overall servicing (as “servicing” is commonly understood by participants in the mortgage-backed
securities market) of Mortgage Loans but performs one or more discrete functions identified in Item
1122(d) of Regulation AB with respect to Mortgage Loans under the direction or authority of the
Servicer or a Subservicer.

     Subservicer: Any Person that services Mortgage Loans on behalf of the Servicer or any
Subservicer and is responsible for the performance (whether directly or through Subservicers or
Subcontractors) of a substantial portion of the material servicing functions required to be
performed by the Servicer under the Agreement or any Reconstitution Agreement that are identified
in Item 1122(d) of Regulation AB.

     Whole Loan Transfer: Any sale or transfer of some or all of the Mortgage Loans, other than a
Securitization Transaction.

ARTICLE II

COMPLIANCE WITH REGULATION AB

     Section 2.01. Intent of the Parties; Reasonableness.

     The Owner and the Servicer acknowledge and agree that the purpose of Article II of this Addendum is
to facilitate compliance by the Owner and any Depositor with the provisions of Regulation AB and
related rules and regulations of the Commission.

     Neither the Owner nor any Depositor shall exercise its right to request delivery of
information or other performance under these provisions other than in good faith, or for purposes
other than compliance with the Securities Act, the Exchange Act and the rules and regulations of the
Commission thereunder (or the provision in a private offering of disclosure comparable to that

 2 of 14

 

required under the Securities Act). The Servicer acknowledges that interpretations of the
requirements of Regulation AB may change over time, whether due to interpretive guidance provided
by the Commission or its staff, consensus among participants in the asset-backed securities
markets, advice of counsel, or otherwise, and agrees to comply with requests made by the Owner, any
Master Servicer or any Depositor in good faith for delivery of information under these provisions
on the basis of evolving interpretations of Regulation AB. In connection with any Securitization
Transaction, the Servicer shall cooperate fully with the Owner and any Master Servicer to deliver
to the Owner (including any of its assignees or designees), any Master Servicer and any Depositor,
any and all statements, reports, certifications, records and any other information necessary in the
good faith determination of the Owner, any Master Servicer or any Depositor to permit the Owner,
such Master Servicer or such Depositor to comply with the provisions of Regulation AB, together
with such disclosures relating to the Servicer or any Subservicer and the Mortgage Loans, or the
servicing of the Mortgage Loans, reasonably believed by the Owner or any Depositor to be necessary
in order to effect such compliance.

     The Owner (including any of its assignees or designees) shall cooperate with the Servicer by
providing timely notice of requests for information under these provisions and by reasonably
limiting such requests to information required, in the Owner’s reasonable judgment, to comply with
Regulation AB.

     The Owner and the Servicer agree that the provisions set forth in Article II shall only apply
to Securitization Transactions that close on or after January 1, 2006. However, delivery by the
Servicer of an Attestation under Section 2.05 of this Reg AB Addendum shall be deemed to comply
with the requirement under Section 6.05 of the Existing Agreement to deliver an Annual Independent
Public Accountants’ Servicing Report.

     In the event that (i) the Servicer does not reasonably believe that certain information
requested under this Article II is required to be disclosed pursuant to Regulation AB, and (ii) the
Servicer has not provided such information for any of its own securitizations, the Owner shall pay
all reasonable documented costs incurred by the Servicer in connection with the preparation and
delivery of such information and the Servicer shall promptly deliver such information after
expiration of a reasonable period of time for establishing the necessary systems and procedures to
produce such information.

     Section 2.02. Additional Representations and Warranties of the Servicer.

     (a) The Servicer hereby represents to the Owner, any Master Servicer and any Depositor, as of
the date on which information is first provided to the Owner, any Master Servicer or any Depositor
under Section 2.03 that, except as disclosed in writing to the Owner, such Master Servicer or such
Depositor prior to such date: (i) the Servicer is not aware and has not received notice that any
default, early amortization or other performance triggering event has occurred as to any other
securitization due to any act or failure to act of the Servicer; (ii) the Servicer has not been
terminated as servicer in a residential mortgage loan securitization, either due to a servicing
default or to application of a servicing performance test or trigger; (iii) no material
noncompliance with the applicable servicing criteria with respect to other securitizations of
residential mortgage loans involving the Servicer as
servicer has been disclosed or reported by the Servicer; (iv) no material

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changes to the Servicer’s
policies or procedures with respect to the servicing function it will perform under the Agreement
and any Reconstitution Agreement for mortgage loans of a type similar to the Mortgage Loans have
occurred during the three-year period immediately preceding the related Securitization Transaction;
(v) there are no aspects of the Servicer’s financial condition that could have a material adverse
effect on the performance by the Servicer of its servicing obligations under the Agreement or any
Reconstitution Agreement; (vi) there are no material legal or governmental proceedings pending (or
known to be contemplated) against the Servicer or any Subservicer ; and (vii) there are no
affiliations, relationships or transactions relating to the Servicer or any Subservicer with
respect to any Securitization Transaction and any party thereto identified by the related Depositor
of a type described in Item 1119 of Regulation AB.

     (b) If so requested by the Owner, any Master Servicer or any Depositor on any date following
the date on which information is first provided to the Owner or any Depositor under Section 2.03,
the Servicer shall, within five Business Days following such request, confirm in writing the
accuracy of the representations and warranties set forth in paragraph (a) of this Section or, if
any such representation and warranty is not accurate as of the date of such request, provide
reasonably adequate disclosure of the pertinent facts, in writing, to the requesting party.

     Section 2.03. Information to Be Provided by the Servicer.

     In connection with any Securitization Transaction the Servicer shall (i) make best efforts
within five Business Days, but no less than ten Business Days, following request by the Owner or
any Depositor, provide to the Owner and such Depositor, to the extent not previously provided, (or
cause each Subservicer to provide), in writing and in form and substance reasonably satisfactory to
the Owner and such Depositor, the information and materials specified in paragraphs (a), (b), (c)
and (f) of this Section, and (ii) as promptly as practicable following notice to or discovery by
the Servicer, provide to the Owner and any Depositor (in writing and in form and substance
reasonably satisfactory to the Owner and such Depositor) the information specified in paragraph (d)
of this Section.

     (a) If so requested by the Owner or any Depositor, the Servicer shall provide such information
regarding the Servicer, as servicer of the Mortgage Loans, and each Subservicer (each of the
Servicer and each Subservicer, for purposes of this paragraph, a “Servicer”), as is requested for
the purpose of compliance with Item 1108, 1117 and 1119 of Regulation AB. Such information shall
include, at a minimum:

     (A) the Servicer’s form of organization;

     (B) a description of how long the Servicer has been servicing residential mortgage
loans; a general discussion of the Servicer’s experience in servicing assets of any type as
well as a more detailed discussion of the Servicer’s experience in, and procedures for, the
servicing function it will perform under the Agreement and any Reconstitution Agreements;
information regarding the size, composition and growth of the Servicer’s portfolio of
residential mortgage loans of a type similar to the Mortgage Loans and information on
factors related to the Servicer that may be material, in the good faith
judgment of the Owner or any Depositor, to any analysis of the servicing of the

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Mortgage Loans or the related asset-backed securities, as applicable, including, without
limitation:

     (1) whether any prior securitizations of mortgage loans of a type similar to
the Mortgage Loans involving the Servicer have defaulted or experienced an early
amortization or other performance triggering event because of servicing during the
three-year period immediately preceding the related Securitization Transaction;

     (2) the extent of outsourcing the Servicer utilizes;

     (3) whether there has been previous disclosure of material noncompliance with
the applicable servicing criteria with respect to other securitizations of
residential mortgage loans involving the Servicer as a servicer during the
three-year period immediately preceding the related Securitization Transaction;

     (4) whether the Servicer has been terminated as servicer in a residential
mortgage loan securitization, either due to a servicing default or to application of
a servicing performance test or trigger; and

     (5) such other information as the Owner or any Depositor may reasonably request
for the purpose of compliance with Item 1108(b)(2) of Regulation AB;

     (C) a description of any material changes during the three-year period immediately
preceding the related Securitization Transaction to the Servicer’s policies or procedures
with respect to the servicing function it will perform under the Agreement and any
Reconstitution Agreements for mortgage loans of a type similar to the Mortgage Loans;

     (D) information regarding the Servicer’s financial condition, to the extent that there
is a material risk that an adverse financial event or circumstance involving the Servicer
could have a material adverse effect on the performance by the Servicer of its servicing
obligations under the Agreement or any Reconstitution Agreement;

     (E) information regarding advances made by the Servicer on the Mortgage Loans and the
Servicer’s overall servicing portfolio of residential mortgage loans for the three-year
period immediately preceding the related Securitization Transaction, which may be limited to
a statement by an authorized officer of the Servicer to the effect that the Servicer has
made all advances required to be made on residential mortgage loans serviced by it during
such period, or, if such statement would not be accurate, information regarding the
percentage and type of advances not made as required, and the reasons for such failure to
advance;

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     (F) a description of the Servicer’s processes and procedures designed to address any
special or unique factors involved in servicing loans of a similar type as the Mortgage
Loans;

     (G) a description of the Servicer’s processes for handling delinquencies, losses,
bankruptcies and recoveries, such as through liquidation of mortgaged properties, sale of
defaulted mortgage loans or workouts;

     (H) information as to how the Servicer defines or determines delinquencies and
charge-offs, including the effect of any grace period, re-aging, restructuring, partial
payments considered current or other practices with respect to delinquency and loss
experience;

     (I) a description of any material legal or governmental proceedings pending (or known
to be contemplated) against the Servicer;

     (J) a description of any affiliation or relationship between the Servicer and any of
the following parties to a Securitization Transaction, as such parties are identified to the
Servicer by the Purchaser or any Depositor in writing in advance of such Securitization
Transaction:

	 	 	 	 	 	 	 
	 

	 	 	(1	)	 	the sponsor
	 

	 	 	(2	)	 	the Depositor
	 

	 	 	(3	)	 	the issuing entity;
	 

	 	 	(4	)	 	any servicer;
	 

	 	 	(5	)	 	any trustee;
	 

	 	 	(6	)	 	any originator;
	 

	 	 	(7	)	 	any significant obligor;
	 

	 	 	(8	)	 	any enhancement or support provider; and
	 

	 	 	(9	)	 	any other material transaction party.

     (b) for the purpose of satisfying reporting obligations under the Exchange Act with respect to
any class of asset-backed securities, the Servicer shall (or shall cause each Subservicer to) (i)
provide prompt notice to the Owner, any Master Servicer and any Depositor in writing of (A) any
material litigation or governmental proceedings pending against the Servicer or any Subservicer,
(B) any affiliations or relationships that develop following the closing date of a Securitization
Transaction between the Servicer or any Subservicer and any of the parties specified in clause (D)
of paragraph (a) of this Section (and any other parties identified in writing by the requesting
party) with respect to any Securitization Transaction, (C) any Event of Default under the terms of
the Agreement or any Reconstitution Agreement, (D) any merger, consolidation or sale of
substantially all of the assets of the Servicer, and (E) the Servicer’s entry into an agreement
with a Subservicer to perform or assist in the performance of any of the Servicer’s obligations
under the Agreement or any Reconstitution Agreement and (ii) provide to the Owner and any Depositor
a description of such proceedings, affiliations or relationships.

     (c) As a condition to the succession to the Servicer or any Subservicer as servicer or

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subservicer under the Agreement or any Reconstitution Agreement by any Person (i) into which the
Servicer or such Subservicer may be merged or consolidated, or (ii) which may be appointed as a
successor to the Servicer or any Subservicer, the Servicer shall provide to the Owner, any Master
Servicer and any Depositor, at least 15 calendar days prior to the effective date of such
succession or appointment, (x) written notice to the Owner and any Depositor of such succession or
appointment and (y) in writing and in form and substance reasonably satisfactory to the Owner and
such Depositor, all information reasonably requested by the Owner or any Depositor in order to
comply with reporting obligations under Item 6.02 of Form 8-K with respect to any class of
asset-backed securities.

     (d) In addition to such information as the Servicer, as servicer, is obligated to provide
pursuant to other provisions of the Agreement or this Addendum not later than ten days prior to the
deadline for the filing of any distribution report on Form 10-D in respect of any Securitization
Transaction that includes any of the Mortgage Loans serviced by the Servicer or any Subservicer,
the Servicer or such Subservicer, as applicable, shall (but only to the extent the Servicer or such
Subservicer has knowledge), provide to the party responsible for filing such report (including, if
applicable, the Master Servicer) notice of the occurrence of any of the following events along with
all information, data and materials related thereto as may be required to be included in the
related distribution report on Form 10-D (as specified in the provisions of Regulation AB
referenced below):

     (i) any material modifications, extensions or waivers of pool asset terms, fees,
penalties or payments during the distribution period or that have cumulatively become
material over time (Item 1121(a) (11) of Regulation AB); and

     (ii) information regarding any material pool asset changes (such as, additions
substitutions or repurchases (Item 1121 (a) (14) of Regulation AB).

     (e) The Servicer shall provide to the Owner, any Master Servicer and any Depositor, evidence
of the authorization of the person signing any certification or statement, copies or other evidence
of Fidelity Bond Insurance and Errors and Omission Insurance policy, financial information and
reports, and such other information related to the Owner or any Subservicer or the Owner or the
Owner’s or such Subservicer’s performance hereunder.

     Section 2.04. Servicer Compliance Statement.

     On or before March 15 of each calendar year, commencing in 2007, the Servicer shall deliver to
the Owner, any Depositor and any Master Servicer a statement of
compliance addressed to the Owner, such Depositor and such Master Servicer and signed by an authorized officer of the Servicer, to
the effect that (i) a review of the Servicer’s activities during the immediately preceding calendar
year (or applicable portion thereof) and of its performance under the Agreement and any applicable
Reconstitution Agreement during such period has been made under such officer’s supervision, and
(ii) to the best of such officers’ knowledge, based on such review, the Servicer has fulfilled all
of its obligations under the Agreement and any applicable Reconstitution Agreement in all material
respects throughout such calendar year (or applicable portion thereof) or, if there has been a
failure to fulfill any such obligation in any material respect, specifically identifying each such

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failure known to such officer and the nature and the status thereof.

     Section 2.05. Report on Assessment of Compliance and Attestation.

     (a) On or before March 15 of each calendar year, commencing in 2007, the Servicer shall:

     (i) deliver to the Owner ,any Depositor and any Master Servicer a report (in
form and substance reasonably satisfactory to the Owner, such Depositor and such
Master Servicer) regarding the Servicer’s assessment of compliance with the
Servicing Criteria during the immediately preceding calendar year, as required under
Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation AB. Such
report shall be addressed to the Owner, such Depositor, and such Master Servicer and
signed by an authorized officer of the Servicer, and shall address each of the
applicable Servicing Criteria specified on of Exhibit B hereto (wherein “Investor”
shall mean the Master Servicer on behalf of the trust);

     (ii) deliver to the Owner, any Depositor and any Master Servicer a report of a
registered public accounting firm reasonably acceptable to the Owner, such Depositor
and such Master Servicer that attests to, and reports on, the assessment of
compliance made by the Servicer and delivered pursuant to the preceding paragraph.
Such attestation shall be in accordance with Rules 1-02(a)(3) and 2-02(g) of
Regulation S-X under the Securities Act and the Exchange Act;

     (iii) cause each Subservicer, and each Subcontractor determined by the Servicer
pursuant to Section 2.06(b) to be “participating in the servicing function” within
the meaning of Item 1122 of Regulation AB, to deliver to the Owner, any Depositor
and any Master Servicer an assessment of compliance and accountants’ attestation as
and when provided in paragraphs (a) and (b) of this Section; and

     (iv) deliver, and cause each Subservicer and Subcontractor described in Clause
(iii) to deliver, to the Owner, any Depositor, any Master Servicer and any other
Person that will be responsible for signing the certification (a “Sarbanes
Certification”) required by Rules 13a-14(d) and 15d-14(d) under the Exchange Act
(pursuant to Section 302 of the Sarbanes-Oxley Act of 2002) on behalf of an
asset-backed issuer with respect to a Securitization Transaction a certification in
the form attached hereto as Exhibit A.

     The Servicer acknowledges that the parties identified in clause (a)(iv) above may rely on the
certification provided by the Servicer pursuant to such clause in signing a Sarbanes Certification
and filing such with the Commission.

     (b) Each assessment of compliance provided by a Subservicer pursuant to Section 2.05(a)(iii)
shall address each of the applicable Servicing Criteria specified on Exhibit B hereto or, in the
case of a Subservicer subsequently appointed as such, on or prior to the date of such appointment.
An assessment of compliance provided by a Subcontractor pursuant to Section

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2.05(a)(iii) need not
address any elements of the Servicing Criteria other than those specified by the Servicer pursuant
to Section 2.06.

     Section 2.06. Use of Subservicers and Subcontractors.

     The Servicer shall not hire or otherwise utilize the services of any Subservicer to fulfill
any of the obligations of the Servicer as servicer under the Agreement or any Reconstitution
Agreement unless the Servicer complies with the provisions of paragraph (a) of this Section. The
Servicer shall not hire or otherwise utilize the services of any Subcontractor, and shall not
permit any Subservicer to hire or otherwise utilize the services of any Subcontractor, to fulfill
any of the obligations of the Servicer as servicer under the Agreement or any Reconstitution
Agreement unless the Servicer complies with the provisions of paragraph (b) of this Section.

     (a) It shall not be necessary for the Servicer to seek the consent of the Owner, any Depositor
or any Master Servicer to the utilization of any Subservicer. The Servicer shall cause any
Subservicer used by the Servicer (or by any Subservicer) for the benefit of the Owner and any
Depositor to comply with the provisions of this Section and with Sections 2.02, 2.03(c) and (e),
(f) and (g), 2.04, 2.05 and 2.07 of this Addendum to the same extent as if such Subservicer were
the Servicer, and to provide the information required with respect to such Subservicer under
Section 2.03(d) of this Addendum. The Servicer shall be responsible for obtaining from each
Subservicer and delivering to the Owner and any Depositor any servicer compliance statement
required to be delivered by such Subservicer under Section 2.04, any assessment of compliance and
attestation and other certification required to be delivered by such Subservicer under Section 2.05
and any certification required to be delivered to the Person that will be responsible for signing
the Sarbanes Certification under Section 2.05 as and when required to be delivered.

     (b) It shall not be necessary for the Servicer to seek the consent of the Owner, any Depositor
or any Master Servicer to the utilization of any Subcontractor. The Servicer shall promptly upon
request provide to the Owner, any Depositor (or any designee of the Depositor, such as a Master
Servicer or administrator) a written description (in form and substance satisfactory to the Owner
and such Depositor) of the role and function of each Subcontractor utilized by the Servicer or any
Subservicer, specifying (i) the identity of each such Subcontractor, (ii) which (if any) of such
Subcontractors are “participating in the servicing function” within the meaning of Item 1122 of
Regulation AB, and (iii) which elements of the Servicing Criteria will be addressed in assessments
of compliance provided by each Subcontractor identified pursuant to clause (ii) of this paragraph.

     As a condition to the utilization of any Subcontractor determined to be “participating in the
servicing function” within the meaning of Item 1122 of Regulation AB, the Servicer shall cause any
such Subcontractor used by the Servicer (or by any Subservicer) for the benefit of the Owner and
any Depositor to comply with the provisions of Sections 2.05 and 2.07 of this Addendum to the same
extent as if such Subcontractor were the Servicer. The Servicer shall be responsible for obtaining
from each Subcontractor and delivering to the Owner and any Depositor any assessment of compliance
and attestation and the other certifications required to be delivered by such Subcontractor under
Section 2.05, in each case as and when required to be delivered.

     Section 2.07. Indemnification; Remedies.

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     (a) The Servicer shall indemnify the Owner, each affiliate of the Owner, and each of the
following parties participating in a Securitization Transaction (and each shall be an “Owner
Indemnified Party”): each sponsor and issuing entity; each Person (including, but not limited to,
any Master Servicer if applicable) responsible for the preparation, execution or filing of any
report required to be filed with the Commission with respect to such Securitization Transaction, or
for execution of a certification pursuant to Rule 13a-14(d) or Rule 15d-14(d) under the Exchange
Act with respect to such Securitization Transaction; each broker dealer acting as underwriter,
placement agent or initial Owner, each Person who controls any of such parties or the Depositor
(within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act); and
the respective present and former directors, officers, employees, agents and affiliates of each of
the foregoing and of the Depositor, and shall hold each of them harmless from and against any
claims, losses, damages, penalties, fines, forfeitures, legal fees and expenses and related costs,
judgments, and any other costs, fees and expenses that any of them may sustain arising out of or
based upon:

     (i)(A) any untrue statement of a material fact contained or alleged to be
contained in any information, report, certification, data, accountants’ letter or
other material provided under this Article II by or on behalf of the Servicer, or
provided under this Article II by or on behalf of any Subservicer or Subcontractor
(collectively, the “Servicer Information”), or (B) the omission or alleged omission
to state in the Servicer Information a material fact required to be stated in the
Servicer Information or necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading; provided, by
way of clarification, that clause (B) of this paragraph shall be construed solely by
reference to the Servicer Information and not to any other information communicated
in connection with a sale or purchase of securities, without regard to whether the
Servicer Information or any portion thereof is presented together with or separately
from such other information;

     (ii) any breach by the Servicer of its obligations under this Article II,
including particularly any failure by the Servicer, any Subservicer or any
Subcontractor to deliver any information, report, certification, accountants’ letter
or other material when and as required under this Article II, including any failure
by the Servicer to identify pursuant to Section 2.06(b) any Subcontractor
“participating in the servicing function” within the meaning of Item 1122 of
Regulation AB;

     (iii) any breach by the Servicer of a representation or warranty set forth in
Section 2.02(a) or in a writing furnished pursuant to Section 2.02(b) and made as of
a date prior to the closing date of the related Securitization Transaction, to the
extent that such breach is not cured by such closing date, or any breach by the
Servicer of a representation or warranty in a writing furnished pursuant to Section
2.02(b) to the extent made as of a date subsequent to such closing date;

provided, however, that in no event shall the Servicer be liable for any consequential, indirect or
punitive damages, whatsoever, whether in contract, tort (including negligence and strict liability)
or

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an other legal or equitable principle; provided, however, that such limitation shall not be applicable
with respect to third party claims made against the Owner.

     (b) The Owner shall indemnify the Servicer, each Person who controls the Servicer (within the
meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the respective
present and former directors, officers, employees, agents and affiliates of each of the foregoing
(each, a “Servicer Indemnified Party), and shall hold each of them harmless from and against any
losses, damages, penalties, fines, forfeitures, reasonable legal fees and expenses and related
costs, judgments, and any other costs, fees and expenses that nay of them may sustain arising out
of or based upon any untrue statement contained or alleged to be contained in any filing with the
Commission or the omission or alleged omission to state in any filing with the Commission a
material fact required to be stated or necessary to be stated in order to make the statement
therein, in the light of the circumstances under which they were made, not misleading, in each case
to the extent, but only to the extent, that such untrue statement, alleged untrue statement,
omission, or alleged omission arose out of or was based upon any information or statement, other
than the Servicer Information, in a filing with the Commission.

     (c) (i) The indemnification provided for in Sections 2.07(a) and (b) shall survive the
termination of this Reg AB Addendum or any party to this Reg AB Addendum.

          (ii) If the indemnification provided for in Section 2.07(a) is unavailable or insufficient to
hold harmless an Owner Indemnified Party, then the Servicer agrees that is shall contribute to the
amount paid or payable by such Owner Indemnified Party as a result of any claims, losses, damages
or liabilities incurred by such Indemnified Party in such proportion as is appropriate to reflect
the relative fault of such Owner Indemnified Party on the one hand and the Servicer on the other.

          (iii) In the case of any failure of performance described in clause (a)(ii) of this Section,
the Servicer shall promptly reimburse the Owner, any Depositor, as applicable, and each Person
responsible for the preparation, execution or filing of any report required to be filed with the
Commission with respect to such Securitization Transaction, or for execution of a certification
pursuant to Rule 13a-14(d) or Rule 15d-14(d) under the Exchange Act with respect to such
Securitization Transaction, for all costs reasonably incurred by each such party in order to obtain
the information, report, certification, accountants’ letter or other material not delivered as
required by the Servicer, any Subservicer or any Subcontractor.

	 	(d)	 	     (i) Any failure by the Servicer, any Subservicer or any Subcontractor to
deliver any information, report, certification, accountants’ letter or other material
when and as required under this Article II, including any failure to identify pursuant
to Section 2.06(b) any Subcontractor “participating in the servicing function” within
the meaning of Item 1122 of Regulation AB, or any breach by the Servicer of a
representation or warranty set forth in Section 2.02(a) or in a writing furnished
pursuant to Section 2.02(b) and made as of a date prior to the closing date of the
related Securitization Transaction, to the extent that such breach is not cured by such
closing date, or any breach by the Servicer of a representation or warranty in a

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	 	 	 	writing furnished pursuant to Section 2.02(b) to the extent made as of a date subsequent to
such closing date, shall immediately and automatically, without notice or grace
period, constitute an Event of Default with respect to the Servicer under the
Agreement and any applicable Reconstitution Agreement, and shall entitle the Owner,
or any Depositor, as applicable, in its sole discretion to terminate the rights and
obligations of the Servicer as servicer under the Agreement and/or any applicable
Reconstitution Agreement without payment (notwithstanding anything in the Agreement
or any applicable Reconstitution Agreement to the contrary) of any compensation to
the Servicer (and if the Servicer is servicing any of the Mortgage Loans in a
Securitization Transaction, appoint a successor servicer reasonably acceptable to
any Master Servicer for such Securitization Transaction); provided that to the
extent that any provision of the Agreement and/or any applicable Reconstitution
Agreement expressly provides for the survival of certain rights or obligations
following termination of the Servicer as servicer, such provision shall be given
effect. Neither the Owner, any Master Servicer nor any Depositor shall be entitled
to terminate the rights and obligations of the Servicer pursuant to this
subparagraph (d)(i) if a failure of the Servicer to identify a Subcontractor
“participating in the servicing function” within the meaning of Item 1122 of
Regulation AB was attributable solely to the role or functions of such Subcontractor
with respect to mortgage loans other than the Mortgage Loans.

     (ii) The Servicer shall promptly reimburse the Owner (or any designee of the
Owner, such as a Master Servicer) and any Depositor, as applicable, for all
reasonable expenses incurred by the Owner (or such designee) or such Depositor, as
such are incurred, in connection with the termination of the Servicer as servicer
and the transfer of servicing of the Mortgage Loans to a successor servicer. The
provisions of this paragraph shall not limit whatever rights the Owner or any
Depositor may have under other provisions of the Agreement and/or any applicable
Reconstitution Agreement or otherwise, whether in equity or at law, such as an
action for damages, specific performance or injunctive relief.

     2.08. Interpretation.

     To the extent any provision or requirement of this Reg AB Addendum conflicts with a provision
or requirement of the Agreement, the terms of this Addendum shall govern and shall be deemed to
supercede the conflicting provision or requirement of the Agreement.

     2.09 Third Party Beneficiary

     For purposes of this Article II, the Master Servicer shall be considered a third-party
beneficiary of the Reg AB Addendum, entitled to all the rights and benefits hereof as if it were a
direct party to this Reg AB Addendum.

     2.10 Counterparts.

     This Reg AB may be executed in one or more counterparts and by different parties hereto on

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separate counterparts, and each of which, when so executed shall constitute one and the same
agreement.

     IN WITNESS WHEREOF, the parties hereto have caused their names to be signed hereto by their
respective officers thereunto duly authorized as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	RWT HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	GMAC MORTGAGE , LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 

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EXHIBIT A

FORM OF ANNUAL CERTIFICATION

Re: The [       ] agreement dated as of [       ], 200[ ] (the
“Agreement”), among [IDENTIFY PARTIES]

     I,                                         , the                          
                of [NAME OF SERVICER],
certify to [the Owner], [the Depositor], and the [Master Servicer] [Securities Administrator]
[Trustee], and their officers, with the knowledge and intent that they will rely upon this
certification, that:

     (1) I have reviewed the servicer compliance statement of the Servicer provided in accordance
with Item 1123 of Regulation AB (the “Compliance Statement”), the report on assessment of the
Servicer’s compliance with the servicing criteria set forth in Item 1122(d) of Regulation AB (the
“Servicing Criteria”), provided in accordance with Rules 13a-18 and 15d-18 under Securities
Exchange Act of 1934, as amended (the “Exchange Act”) and Item 1122 of Regulation AB (the
“Servicing Assessment”), the registered public accounting firm’s attestation report provided in
accordance with Rules 13a-18 and 15d-18 under the Exchange Act and Section 1122(b) of Regulation AB
(the “Attestation Report”), and all servicing reports, officer’s certificates and other information
relating to the servicing of the Mortgage Loans by the Servicer during 200[ ] that were delivered
by the Servicer to the [Depositor] [Master Servicer] [Securities Administrator] [Trustee] pursuant
to the Agreement (collectively, the “Servicer Servicing Information”);

     (2) Based on my knowledge, the Servicer Servicing Information, 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 the light of the circumstances under which such statements were made, not
misleading with respect to the period of time covered by the Servicer Servicing Information;

     (3) Based on my knowledge, all of the Servicer Servicing Information required to be provided
by the Servicer under the Agreement has been provided to the [Depositor] [Master Servicer]
[Securities Administrator] [Trustee];

     (4) I am responsible for reviewing the activities performed by the Servicer as servicer under
the Agreement, and based on my knowledge and the compliance review conducted in preparing the
Compliance Statement and except as disclosed in the Compliance Statement, the Servicing Assessment
or the Attestation Report, the Servicer has fulfilled its obligations under the Agreement in all
material respects; and

     (5) The Compliance Statement required to be delivered by the Servicer pursuant to the
Agreement, and the Servicing Assessment and Attestation Report required to be provided by the
Servicer and by any Subservicer and Subcontractor pursuant to the Agreement, have been provided to
the [Depositor] [Master Servicer]. Any material instances of noncompliance

-1

 

described in such reports have been disclosed to the [Depositor] [Master Servicer]. Any material
instance of noncompliance with the Servicing Criteria has been disclosed in such reports.

Date:                                            

	 	 	 	 	 
	By:
	 	 	 	 
	 
	 	 	 	 
	Name:

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Title:

	 	 	 	 
	 

	 	 	 	 

A-2

 

EXHIBIT B

SERVICING CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

The assessment of compliance to be delivered by [the Servicer] [Name of Subservicer] shall address,
at a minimum, the criteria identified as below as “Applicable Servicing Criteria”:

	 	 	 	 	 
	 	 	 	 	APPLICABLE
	 	 	 	 	SERVICING
	SERVICING CRITERIA	 	CRITERIA
	Reference	 	Criteria	 	 
	 
	 	 	 	 
	 

	 	General Servicing Considerations	 	 
	1122(d)(1)(i)

	 	Policies and procedures are instituted to monitor any performance or
other triggers and events of default in accordance with the transaction
agreements.
	 	ü
	 
	 	 	 	 
	1122(d)(1)(ii)

	 	If any material servicing activities are outsourced to third
parties, policies and procedures are instituted to monitor the third
party’s performance and compliance with such servicing activities.
	 	ü
	 
	 	 	 	 
	1122(d)(1)(iii)

	 	Any requirements in the transaction agreements to maintain a back-up
servicer for the mortgage loans are maintained.	 	 
	 
	 	 	 	 
	1122(d)(1)(iv)

	 	A fidelity bond and errors and omissions policy is in effect on the
party participating in the servicing function throughout the reporting
period in the amount of coverage required by and otherwise in accordance
with the terms of the transaction agreements.
	 	ü
	 
	 	 	 	 
	 

	 	Cash Collection and Administration	 	 
	 
	 	 	 	 
	1122(d)(2)(i)

	 	Payments on mortgage loans are deposited into the appropriate
custodial bank accounts and related bank clearing accounts no more than
two business days following receipt, or such other number of days
specified in the transaction agreements.
	 	ü
	 
	 	 	 	 
	1122(d)(2)(ii)

	 	Disbursements made via wire transfer on behalf of an obligor or to
an investor are made only by authorized personnel.
	 	ü
	 
	 	 	 	 
	1122(d)(2)(iii)

	 	Advances of funds or guarantees regarding collections, cash flows or
distributions, and any interest or other fees charged for such advances,
are made, reviewed and approved as specified in the transaction
agreements.
	 	ü
	 
	 	 	 	 
	1122(d)(2)(iv)

	 	The related accounts for the transaction, such as cash reserve
accounts or accounts established as a form of overcollateralization, are
separately maintained (e.g., with respect to commingling of cash) as set
forth in the transaction agreements.
	 	ü
	 
	 	 	 	 
	1122(d)(2)(v)

	 	Each custodial account is maintained at a federally insured
depository institution as set forth in the transaction agreements. For
purposes of this criterion, “federally insured depository institution”
with respect to a foreign financial institution means a foreign
financial institution that meets the requirements of Rule 13k-1(b)(1) of
the Securities Exchange Act.
	 	ü
	 
	 	 	 	 
	1122(d)(2)(vi)

	 	Unissued checks are safeguarded so as to prevent unauthorized access.
	 	ü
	 
	 	 	 	 
	1122(d)(2)(vii)

	 	Reconciliations are prepared on a monthly basis for all
asset-backed securities related bank accounts, including custodial
accounts and related bank clearing accounts. These reconciliations are
(A) mathematically accurate; (B) prepared within 30 calendar days after
the bank statement cutoff date, or such other number of days specified
in the transaction agreements; (C) reviewed and approved by someone
other than the person who prepared the reconciliation; and (D) contain
explanations for reconciling items. These reconciling items are resolved
within 90 calendar days of their original identification, or such other
number of days specified in the transaction agreements.
	 	ü

-1

 

	 	 	 	 	 
	 	 	 	 	APPLICABLE
	 	 	 	 	SERVICING
	SERVICING CRITERIA	 	CRITERIA
	Reference	 	Criteria	 	 
	 
	 	 	 	 
	 

	 	Investor Remittances and Reporting	 	 
	 
	 	 	 	 
	1122(d)(3)(i)

	 	Reports to investors, including those to be filed with the
Commission, are maintained in accordance with the transaction agreements
and applicable Commission requirements. Specifically, such reports (A)
are prepared in accordance with timeframes and other terms set forth in
the transaction agreements; (B) provide information calculated in
accordance with the terms specified in the transaction agreements; (C)
are filed with the Commission as required by its rules and regulations;
and (D) agree with investors’ or the trustee’s records as to the total
unpaid principal balance and number of mortgage loans serviced by the
Servicer.
	 	ü
	 
	 	 	 	 
	1122(d)(3)(ii)

	 	Amounts due to investors are allocated and remitted in accordance
with timeframes, distribution priority and other terms set forth in the
transaction agreements.
	 	ü
	 
	 	 	 	 
	1122(d)(3)(iii)

	 	Disbursements made to an investor are posted within two business
days to the Servicer’s investor records, or such other number of days
specified in the transaction agreements.
	 	ü
	 
	 	 	 	 
	1122(d)(3)(iv)

	 	Amounts remitted to investors per the investor reports agree with
cancelled checks, or other form of payment, or custodial bank
statements.
	 	ü
	 
	 	 	 	 
	 

	 	Pool Asset Administration	 	 
	 
	 	 	 	 
	1122(d)(4)(i)

	 	Collateral or security on mortgage loans is maintained as required
by the transaction agreements or related mortgage loan documents.
	 	ü
	 
	 	 	 	 
	1122(d)(4)(ii)

	 	Mortgage loan and related documents are safeguarded as required by
the transaction agreements
	 	ü
	 
	 	 	 	 
	1122(d)(4)(iii)

	 	Any additions, removals or substitutions to the asset pool are made,
reviewed and approved in accordance with any conditions or requirements
in the transaction agreements.
	 	ü
	 
	 	 	 	 
	1122(d)(4)(iv)

	 	Payments on mortgage loans, including any payoffs, made in
accordance with the related mortgage loan documents are posted to the
Servicer’s obligor records maintained no more than two business days
after receipt, or such other number of days specified in the transaction
agreements, and allocated to principal, interest or other items (e.g.,
escrow) in accordance with the related mortgage loan documents.
	 	ü
	 
	 	 	 	 
	1122(d)(4)(v)

	 	The Servicer’s records regarding the mortgage loans agree with the
Servicer’s records with respect to an obligor’s unpaid principal
balance.
	 	ü
	 
	 	 	 	 
	1122(d)(4)(vi)

	 	Changes with respect to the terms or status of an obligor’s mortgage
loans (e.g., loan modifications or re-agings) are made, reviewed and
approved by authorized personnel in accordance with the transaction
agreements and related pool asset documents.
	 	ü
	 
	 	 	 	 
	1122(d)(4)(vii)

	 	Loss mitigation or recovery actions (e.g., forbearance plans,
modifications and deeds in lieu of foreclosure, foreclosures and
repossessions, as applicable) are initiated, conducted and concluded in
accordance with the timeframes or other requirements established by the
transaction agreements.
	 	ü
	 
	 	 	 	 
	1122(d)(4)(viii)

	 	Records documenting collection efforts are maintained during the
period a mortgage loan is delinquent in accordance with the transaction
agreements. Such records are maintained on at least a monthly basis, or
such other period specified in the transaction agreements, and describe
the entity’s activities in monitoring delinquent mortgage loans
including, for example, phone calls, letters and payment rescheduling
plans in cases where delinquency is deemed temporary (e.g., illness or
unemployment).
	 	ü
	 
	 	 	 	 
	1122(d)(4)(ix)

	 	Adjustments to interest rates or rates of return for mortgage loans
with variable rates are computed based on the related mortgage loan
documents.
	 	ü

B-2

 

	 	 	 	 	 
	 	 	 	 	APPLICABLE
	 	 	 	 	SERVICING
	SERVICING CRITERIA	 	CRITERIA
	Reference	 	Criteria	 	 
	 
	 	 	 	 
	1122(d)(4)(x)

	 	Regarding any funds held in trust for an obligor (such as escrow
accounts): (A) such funds are analyzed, in accordance with the obligor’s
mortgage loan documents, on at least an annual basis, or such other
period specified in the transaction agreements; (B) interest on such
funds is paid, or credited, to obligors in accordance with applicable
mortgage loan documents and state laws; and (C) such funds are returned
to the obligor within 30 calendar days of full repayment of the related
mortgage loans, or such other number of days specified in the
transaction agreements.
	 	ü
	 
	 	 	 	 
	1122(d)(4)(xi)

	 	Payments made on behalf of an obligor (such as tax or insurance
payments) are made on or before the related penalty or expiration dates,
as indicated on the appropriate bills or notices for such payments,
provided that such support has been received by the servicer at least 30
calendar days prior to these dates, or such other number of days
specified in the transaction agreements.
	 	ü
	 
	 	 	 	 
	1122(d)(4)(xii)

	 	Any late payment penalties in connection with any payment to be made
on behalf of an obligor are paid from the servicer’s funds and not
charged to the obligor, unless the late payment was due to the obligor’s
error or omission.
	 	ü
	 
	 	 	 	 
	1122(d)(4)(xiii)

	 	Disbursements made on behalf of an obligor are posted within two
business days to the obligor’s records maintained by the servicer, or
such other number of days specified in the transaction agreements.
	 	ü
	 
	 	 	 	 
	1122(d)(4)(xiv)

	 	Delinquencies, charge-offs and uncollectible accounts are
recognized and recorded in accordance with the transaction agreements.
	 	ü
	 
	 	 	 	 
	1122(d)(4)(xv)

	 	Any external enhancement or other support, identified in Item
1114(a)(1) through (3) or Item 1115 of Regulation AB, is maintained as
set forth in the transaction agreements.	 	 

B-3

 

GMAC — SEQUOIA TO TRUSTEE

ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT

For

Loan Servicing Agreement

     THIS ASSIGNMENT, ASSUMPTION AND RECOGNITION AGREEMENT, dated as of March 30, 2007, is entered
into among Sequoia Residential Funding, Inc. (the “Assignor”), GMAC Mortgage, LLC (successor in
interest to GMAC Mortgage Corporation), as the servicer (the “Servicer”), and HSBC Bank USA,
National Association (“HSBC Bank”) as Trustee under a Pooling and Servicing Agreement dated as of
March 1, 2007 (the “Pooling and Servicing Agreement”), among the Assignor, as Depositor, HSBC Bank
(in such Trustee capacity, the “Assignee”) and Wells Fargo Bank, N. A., as Master Servicer and
Securities Administrator.

RECITALS

     WHEREAS, RWT Holdings, Inc. (“RWT Holdings”) and the Servicer have entered into a certain Loan
Servicing Agreement, dated as of February 1, 2004 (the “Loan Servicing Agreement”), as modified by
the Regulation AB Compliance Addendum dated as of January 1, 2006 (the “Reg AB Compliance
Addendum,” and together with the Loan Servicing Agreement, the “Loan Servicing Agreement”), and the
Servicer is currently servicing certain mortgage loans (the “Mortgage Loans”) under the Loan
Servicing Agreement; and

     WHEREAS, RWT has previously sold, assigned and transferred all of its right, title and
interest in certain of the Mortgage Loans (the “Specified Mortgage Loans”) which are listed on the
mortgage loan schedule attached as Exhibit I hereto (the “Specified Mortgage Loan
Schedule”) and its rights under the Loan Servicing Agreement with respect to the Specified Mortgage
Loans to Assignor; and

     WHEREAS, the Assignor has agreed to sell, assign and transfer to Assignee all of its right,
title and interest in the Specified Mortgage Loans and its right under the Loan Servicing Agreement
with respect to the Specified Mortgage Loans; and

     WHEREAS, the parties hereto have agreed that the Specified Mortgage Loans shall be subject to
the terms of this Assignment.

     NOW, THEREFORE, in consideration of the mutual promises contained herein and other good and
valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the parties
agree as follows:

     1. Assignment and Assumption.

     (a) Effective on and as of the date hereof, the Assignor hereby pledges, assigns and
transfers to Assignee all of its right, title and interest in the Specified Mortgage Loans
as to servicing and all of its rights (but none of the Owner’s obligations) provided under
the Loan Servicing Agreement to the extent relating to the Specified Mortgage Loans, the
Assignee hereby accepts such assignment from the Assignor, and the Servicer hereby
acknowledges such assignment and assumption.

4

 

     (b) Effective on and as of the date hereof, the Assignor represents and warrants to the
Assignee that the Assignor has not taken any action that would serve to impair or encumber
the Assignee’s interest in the Specified Mortgage Loans since the date of the Assignor’s
acquisition of the Specified Mortgage Loans.

          2. Recognition of the Assignee.

     From and after the date hereof, the Servicer shall recognize the Assignee as the holder of the
rights and benefits of the Owner with respect to the Specified Mortgage Loans and the Servicer will
service the Specified Mortgage Loans for the Assignee as if the Assignee and the Servicer had
entered into a separate servicing agreement for the servicing of the Specified Mortgage Loans in
the form of the Loan Servicing Agreement (as modified by Appendix A hereto) (the “Successor LSA”)
with the Assignee as the Owner thereunder, which Successor LSA is incorporated in and made a part
of this Assignment. It is the intention of the parties hereto that the Successor LSA will be
treated as a separate and distinct servicing agreement between the parties hereto to the extent of
the Specified Mortgage Loans and shall be binding upon and for the benefit of the respective
successors and assigns of the parties hereto.

3. Assignor’s Continuing Rights and Responsibilities.

Notwithstanding Sections 1 and 2 above, the parties hereto agree that Assignor rather than Assignee
shall have the ongoing rights and responsibilities of the Owner under the following sections
of the Loan Servicing Agreement:

	 	 	 
	Section	 	Matter
	4.01,
3rd
¶

	 	(a)      Standards of Servicer.
	 
	 	 
	4.02

	 	(b)       Liquidation of Mortgage Loans; Servicing
Advances and Foreclosure.
	 
	 	 
	4.14, 1st,
2nd  and
6th ¶’s

	 	(c)       Title, Management and Disposition of REO
Property.
	 
	 	 
	6.06

	 	(d)      Owner’s Right to Examine Servicer Records.
	 
	 	 
	7.01

	 	(e)      The Servicer Shall Provide Access and
Information as Reasonably Required.
	 
	 	 
	7.02, 2nd ¶

	 	(f)       Financial Statements.
	 
	 	 
	8.01

	 	(g)      Indemnification; Third-Party Claims.
	 
	 	 
	2.07 of Reg AB
Compliance Addendum

	 	(h)       Indemnification; Remedies.

5

 

	 	 	 
	Section	 	Matter
	8.02

	 	(i)      Limitation on Liability.
	 
	 	 
	11.04

	 	(j)      No Solicitations.
	 
	 	 
	11.11

	 	(k)      Successor and Assigns.

In addition, the Servicer agrees to furnish to Assignor as well as to the Assignee and the
Master Servicer copies of reports, notices, statements and other communications required to be
delivered by the Servicer pursuant to any of the sections of the Loan Servicing Agreement
referred to above and under the following sections, at the times therein specified:

	 	 	 
	Section	 	 
	4.09

	 	(a)       Transfer of Accounts.
	 
	 	 
	4.14,
5th
and
6th ¶’s

	 	(b)      Title, Management and Disposition of REO
Property.
	 
	 	 
	5.02

	 	(c)      Statements to Owner.
	 
	 	 
	5.03

	 	(d)      P&I Advances by the Servicer.
	 
	 	 
	2.03 of Reg AB
Compliance
Addendum

	 	(e)       Information to Be Provided by the Servicer.
	 
	 	 
	2.04 of Reg AB
Compliance
Addendum

	 	(f)       Servicer Compliance Statement
	 
	 	 
	2.05 of Reg AB
Compliance
Addendum

	 	(g)      Report on Assessment of Compliance and
Attestation

     4. Successor LSA.

6

 

          The Successor LSA includes the Loan Servicing Agreement as modified by Appendix A
hereto and is made a part of this Assignment.

	5.	 	Representations and Warranties.
	 
		 	(a) The Assignee represents and warrants that it is executing solely in its capacity as
Trustee and it is acquiring the interest at the direction of the Depositor and for the
benefit of the Certificateholders (as defined in the Pooling and Servicing Agreement), and
that it has not relied in connection therewith upon any statements or representations of the
Servicer or the Assignor other than those contained in the Successor LSA or this Assignment.
	 
		 	(b) Each of the parties hereto represents and warrants that it is duly and legally
authorized to enter into this Assignment.
	 
		 	(c) Each of the parties hereto represents and warrants that this Assignment has been duly
authorized, executed and delivered by it and (assuming due authorization, execution and
delivery thereof by each of the other parties hereto) constitutes its legal, valid and
binding obligation, enforceable against it in accordance with its terms, except as such
enforcement may be limited by bankruptcy, insolvency, reorganization or other similar laws
affecting the enforcement of creditors’ rights generally and by general equitable principles
(regardless of whether such enforcement is considered in a proceeding in equity or at law).
	 
	6.	 	Continuing Effect.

Except as contemplated hereby, the Loan Servicing Agreement shall remain in full force and effect
in accordance with its terms.

	7.	 	Governing Law.

This Assignment and the rights and obligations hereunder shall be governed by and construed in
accordance with the internal laws of the Commonwealth of Pennsylvania.

	8.	 	Notices.

Any notices or other communications permitted or required under the Loan Servicing Agreement to
be made to the Assignor and the Assignee shall be made in accordance with the terms of the
Loan Servicing Agreement and shall be sent to the Assignor and the Assignee as follows:

Sequoia Residential Funding, Inc.

One Belvedere Place, Suite 330

Mill Valley, CA 94941

HSBC Bank USA, National Association

452 Fifth Avenue

New York, NY 10018

		 	or to such other address as may hereafter be furnished by the Assignor or the Assignee to
the other parties in accordance with the provisions of the Loan Servicing Agreement.
	 
	9.	 	Counterparts.

7

 

This Assignment may be executed in counterparts, each of which when so executed shall be deemed to
be an original and all of which when taken together shall constitute one and the same
instrument.

8

 

	10.	 	Definitions.

Any capitalized term used but not defined in this Assignment has the same meaning as in the Loan
Servicing Agreement.

	11.	 	Master Servicer.

     The Servicer hereby acknowledges that the Assignee has appointed Wells Fargo Bank, N. A. (the
“Master Servicer”) to act as master servicer and securities administrator under the Pooling and
Servicing Agreement and hereby agrees to treat all inquiries, instructions, authorizations and
other communications from the Master Servicer as if the same had been received from the Trustee.
The Master Servicer, acting on behalf of the Assignee, shall have the rights of the Assignee as the
Owner under the Successor LSA to enforce the obligations of the Servicer thereunder. Any notices
or other communications permitted or required under the Loan Servicing Agreement to be made to the
Assignee shall be made in accordance with the terms of the Loan Servicing Agreement and shall be
sent to the Master Servicer at the following address:

Wells Fargo Bank, N. A.

P.O. Box 98

Columbia, Maryland 21046

(or, for overnight deliveries, 9062 Old Annapolis Road, Columbia, Maryland 21045)

Attention: Sequoia Mortgage Trust 2007-1

or to such other address as may hereafter be furnished by the Master Servicer to Servicer.
Any such notices or other communications permitted or required under the Loan Servicing
Agreement may be delivered in electronic format unless manual signature is required in which
case a hard copy of such report or communication shall be required.

     The Servicer further acknowledges that the Assignor has engaged the Master Servicer to provide
certain default administration and that the Master Servicer, acting as agent of the Assignor, may
exercise any of the rights of the Owner retained by the Assignor in Section 3 above.

     The Servicer shall make all distributions under the Successor LSA, as they relate to the
Specified Mortgage Loans, to the Master Servicer by wire transfer of immediately funds to:

Wells Fargo Bank, NA

San Francisco, CA

ABA# 121-000-248

Acct# 3970771416

Acct Name: SAS Clearing

FFC: 50996600

[remainder of page intentionally left blank]

9

 

IN WITNESS WHEREOF, the parties hereto have executed this Assignment the day and year first
above written.

	 	 	 	 	 	 	 	 	 
	 	 	SEQUOIA RESIDENTIAL FUNDING, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	Name:	 	 	 
	 	 	Title:	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	HSBC BANK USA, NATIONAL
ASSOCIATION	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	Name:	 	 	 
	 	 	Title:	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	SERVICER:	 	 
	 	 	GMAC MORTGAGE, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	Name:	 	 	 
	 	 	Title:	 	 	 

10

 

EXHIBIT I

 

APPENDIX A

LOAN SERVICING AGREEMENT

	1.	 	Section 4.04, first sentence of the last paragraph is revised to read as follows:

“The Servicer may invest the funds in the Custodial Account in Eligible Investments
designated in the name of the Servicer or its nominee, and held in trust for HSBC Bank
USA, National Association, as Trustee, under the Pooling and Servicing Agreement dated
March 1, 2007, which shall mature not later than the Business Day next preceding the
Remittance Date next following the date of such investment (except that (i) any
investment in the institution with which the Custodial Account is maintained may
mature on such Remittance Date and (ii) any other investment may mature on such
Remittance Date if the Servicer shall advance funds on such Remittance Date, pending
receipt thereof to the extent necessary to make distributions to the Owner) and shall
not be sold or disposed of prior to maturity.”

	2.	 	Section 5.02 of the Loan Servicing Agreement is hereby revised by replacing the first
paragraph thereof with the following:

“Not later than the tenth (10th) calendar day of each month, the Servicer
shall deliver to the Owner a monthly remittance statement in the current reporting
format mutually agreed to by the Servicer and the Master Servicer and containing the
data in Exhibit 1 attached hereto or other mutually agreeable data. In addition, and
if readily available, the Servicer agrees to provide to the Master Servicer any other
data with respect to the Mortgage Loans as may reasonably be required to enable the
Master Servicer to perform its obligations under the Pooling and Servicing Agreement.
The Servicer may negotiate with the Owner for a reasonable fee, payable to the
Servicer by the Owner, for providing such other data, unless (i) the Servicer is
required to supply such report or information pursuant to any other section of this
Agreement, or (ii) the report or information has been requested in connection with
Internal Revenue Service requirements.”

	3.	 	Section 9.01 of the Loan Servicing Agreement is hereby revised by adding a sentence at the
end to read as follows:

“Notwithstanding anything to the contrary in this Section or any other Section of this
Agreement, in the event the defaulting party is the Owner, the Servicer shall not be
entitled to terminate the rights of the Owner hereunder or to terminate the
Servicer’s obligation to service the Mortgage Loans in accordance with this
Agreement.”

	4.	 	Section 10.02(b) of the Loan Servicing Agreement is hereby deleted in its entirety.
	 
	5.	 	Notwithstanding anything to the contrary in the Loan Servicing Agreement, any Custodial
Account established by the Servicer pursuant to Section 4.04 of the Loan Servicing Agreement
shall qualify as an Eligible Account as defined in the Pooling and Servicing Agreement.
	 
	6.	 	Notwithstanding anything to the contrary in the Loan Servicing Agreement, the definition of

 

	 	 	Eligible Investments is hereby deleted in its entirety and replaced by the definition of
Permitted Investments from the Pooling and Servicing Agreement.
	 
	7.	 	Section 2.03(b) of the Reg AB Compliance Addendum is hereby deleted in its entirety and
replaced with the following (changes are in italics):
	 
	 	 	“ (b) for the purpose of satisfying reporting obligations under the Exchange Act with
respect to any class of asset-backed securities, the Servicer shall (or shall cause each
Subservicer to) (i) provide prompt notice to the Owner, any Master Servicer and any
Depositor in writing of (A) any material litigation or governmental proceedings involving
the Servicer or any Subservicer, (B) any affiliations or relationships that develop
following the closing date of a Securitization Transaction between the Servicer or any
Subservicer and any of the parties specified in clause (J) of paragraph (a) of this Section
(and any other parties identified in writing by the requesting party) with respect to any
Securitization Transaction, (C) any Event of Default under the terms of the Agreement or any
Reconstitution Agreement, (D) any merger, consolidation or sale of substantially all of the
assets of the Servicer, and (E) the Servicer’s entry into an agreement with a Subservicer to
perform or assist in the performance of any of the Servicer’s obligations under the
Agreement or any Reconstitution Agreement and (ii) provide to the Owner and any Depositor a
description of such proceedings, affiliations or relationships.”

     8. The second sentence of Section 2.06(b) of the Reg AB Compliance Addendum is deleted and
replaced in its entirety by the following (changes in italics):

     “The Servicer shall promptly upon request provide to the Owner, any Depositor (or any
designee of the Depositor, such as a Master Servicer or administrator) a written description
(in form and substance satisfactory to the Owner, the Master Servicer and such Depositor) of
the role and function of each Subcontractor utilized by the Servicer or any Subservicer,
specifying (i) the identity of each such Subcontractor, (ii) which (if any) of such
Subcontractors are “participating in the servicing function” within the meaning of Item 1122
of Regulation AB, and (iii) which elements of the Servicing Criteria will be addressed in
assessments of compliance provided by each Subcontractor identified pursuant to clause (ii)
of this paragraph.”

 

EXHIBIT 1

	 	 	 
	FORM OF MONTHLY

	 	Standard Loan Level File Layout –
	REPORTS

	 	Master Servicing

Exhibit 12A: Layout

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Column Name	 	Description	 	Decimal	 	Format Comment	 	Max Size
	Each file requires the following fields:	 	 	 	 	 	 	 	 	 	 
	SER_INVESTOR_NBR

	 	A value assigned by the Servicer to define a group
of loans.
	 	 	 	 	 	Text up to 20 digits
	 	 	20	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	LOAN_NBR

	 	A unique identifier assigned to each loan by the
investor.
	 	 	 	 	 	Text up to 10 digits
	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SERVICER_LOAN_NBR

	 	A unique number assigned to a loan by the
Servicer. This may be different than the
LOAN_NBR.
	 	 	 	 	 	Text up to 10 digits
	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SCHED_PAY_AMT

	 	Scheduled monthly principal and scheduled interest
payment that a borrower is expected to pay, P&I
constant.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	NOTE_INT_RATE

	 	The loan interest rate as reported by the Servicer.
	 	 	4	 	 	Max length of 6
	 	 	6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	NET_INT_RATE

	 	The loan gross interest rate less the service fee
rate as reported by the Servicer.
	 	 	4	 	 	Max length of 6
	 	 	6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SERV_FEE_RATE

	 	The servicer’s fee rate for a loan as reported by
the Servicer.
	 	 	4	 	 	Max length of 6
	 	 	6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SERV_FEE_AMT

	 	The servicer’s fee amount for a loan as reported
by the Servicer.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	NEW_PAY_AMT

	 	The new loan payment amount as reported by the
Servicer.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	NEW_LOAN_RATE

	 	The new loan rate as reported by the Servicer.
	 	 	4	 	 	Max length of 6
	 	 	6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ARM_INDEX_RATE

	 	The index the Servicer is using to calculate a
forecasted rate.
	 	 	4	 	 	Max length of 6
	 	 	6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ACTL_BEG_PRIN_BAL

	 	The borrower’s actual principal balance at the
beginning of the processing cycle.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ACTL_END_PRIN_BAL

	 	The borrower’s actual principal balance at the end
of the processing cycle.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	BORR_NEXT_PAY_DUE_DATE

	 	The date at the end of processing cycle that the
borrower’s next payment is due to the Servicer, as
reported by Servicer.
	 	 	 	 	 	MM/DD/YYYY
	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SERV_CURT_AMT_1

	 	The first curtailment amount to be applied.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SERV_CURT_DATE_1

	 	The curtailment date associated with the first
curtailment amount.
	 	 	 	 	 	MM/DD/YYYY
	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CURT_ADJ_AMT_1

	 	The curtailment interest on the first curtailment
amount, if applicable.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SERV_CURT_AMT_2

	 	The second curtailment amount to be applied.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SERV_CURT_DATE_2

	 	The curtailment date associated with the second
curtailment amount.
	 	 	 	 	 	MM/DD/YYYY
	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CURT_ADJ_AMT_2

	 	The curtailment interest on the second curtailment
amount, if applicable.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 

 

	 	 	 
	Exhibit 1: Continued

	 	Standard Loan Level File Layout

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Column Name	 	Description	 	Decimal	 	Format Comment	 	Max Size
	SERV_CURT_AMT_3

	 	The third curtailment amount to be applied.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SERV_CURT_DATE_3

	 	The curtailment date associated with the third
curtailment amount.
	 	 	 	 	 	MM/DD/YYYY
	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	CURT_ADJ_AMT_3

	 	The curtailment interest on the third curtailment
amount, if applicable.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	PIF_AMT

	 	The loan “paid in full” amount as reported by the
Servicer.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	PIF_DATE

	 	The paid in full date as reported by the Servicer.
	 	 	 	 	 	MM/DD/YYYY

Action Code Key:
	 	 	10	 
	 

	 	 	 	 	 	 	 	15=Bankruptcy,

30=Foreclosure, , 60=PIF,	 	 	 	 
	ACTION_CODE

	 	The standard FNMA numeric code used to indicate
the default/delinquent status of a particular
loan.
	 	 	 	 	 	
63=Substitution,

65=Repurchase,70=REO
	 	 	2	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	INT_ADJ_AMT

	 	The amount of the interest adjustment as reported
by the Servicer.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SOLDIER_SAILOR_ADJ_AMT

	 	The Soldier and Sailor Adjustment amount, if
applicable.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	NON_ADV_LOAN_AMT

	 	The Non Recoverable Loan Amount, if applicable.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	LOAN_LOSS_AMT

	 	The amount the Servicer is passing as a loss, if
applicable.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Plus the following applicable fields:	 	 	 	 	 	 	 	 	 	 
	SCHED_BEG_PRIN_BAL

	 	The scheduled outstanding principal amount due at
the beginning of the cycle date to be passed
through to investors.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SCHED_END_PRIN_BAL

	 	The scheduled principal balance due to investors
at the end of a processing cycle.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SCHED_PRIN_AMT

	 	The scheduled principal amount as reported by the
Servicer for the current cycle — only applicable
for Scheduled/Scheduled Loans.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SCHED_NET_INT

	 	The scheduled gross interest amount less the
service fee amount for the current cycle as
reported by the Servicer — only applicable for
Scheduled/Scheduled Loans.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ACTL_PRIN_AMT

	 	The actual principal amount collected by the
Servicer for the current reporting cycle — only
applicable for Actual/Actual Loans.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ACTL_NET_INT

	 	The actual gross interest amount less the service
fee amount for the current reporting cycle as
reported by the Servicer — only applicable for
Actual/Actual Loans.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	PREPAY_PENALTY_AMT

	 	The penalty amount received when a borrower
prepays on his loan as reported by the Servicer.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	PREPAY_PENALTY_WAIVED

	 	The prepayment penalty amount for the loan waived
by the servicer.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 

 

	 	 	 
	Exhibit 1: Continued

	 	Standard Loan Level File Layout

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Column Name	 	Description	 	Decimal	 	Format Comment	 	Max Size
	MOD_DATE

	 	The Effective Payment Date of
the Modification for the loan.
	 	 	 	 	 	MM/DD/YYYY
	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	MOD_TYPE

	 	The Modification Type.
	 	 	 	 	 	Varchar — value can
be alpha or numeric
	 	 	30	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	DELINQ_P&I_ADVANCE_AMT

	 	The current outstanding
principal and interest
advances made by Servicer.
	 	 	2	 	 	No commas(,) or

dollar signs ($)
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	BREACH_FLAG

	 	Flag to indicate if the
repurchase of a loan is due to
a breach of Representations
and Warranties
	 	 	 	 	 	Y=Breach

N=NO Breach

Let blank if N/A
	 	 	1	 

 

Exhibit 2: Monthly Summary Report by Single Investor

MONTHLY SUMMARY REPORT

	 	 	 	 	 	 	 
	For Month Ended:

	 	mm/dd/yyyy
 

	 	Servicer Name 
	 	 

	 	 	 	 	 	 	 
	Prepared by:

	 	 
 

	 	Investor Nbr 
	 	 

Section 1. Remittances and Ending Balances — Required Data

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Beginning	 	Ending	 	Total Monthly	 	Total Ending Unpaid	 	Total Monthly Principal
	Loan Count	 	Loan Count	 	Remittance Amo	 	Principal Balance	 	Balance
	0
	 	 	0	 	 	$	0.00	 	 	$	0.00	 	 	$	0.00	 

	 	 	 	 	 	 	 	 	 
	Principal Calculation
	 	 	 	 	 	 	 	 
	1. Monthly Principal Due
	 	 	+	 	 	$	0.00	 
	 
	 	 	 	 	 	 	 
	2. Current Curtailments
	 	 	+	 	 	$	0.00	 
	 
	 	 	 	 	 	 	 
	3. Liquidations
	 	 	+	 	 	$	0.00	 
	 
	 	 	 	 	 	 	 
	4. Other (attach explanation)
	 	 	+	 	 	$	0.00	 
	 
	 	 	 	 	 	 	 
	5. Principal Due
	 	 	 	 	 	$	0.00	 
	 
	 	 	 	 	 	 	 
	6. Interest (reported “gross”)
	 	 	+	 	 	$	0.00	 
	 
	 	 	 	 	 	 	 
	7. Interest Adjustments on Curtailments
	 	 	+	 	 	$	0.00	 
	 
	 	 	 	 	 	 	 
	8. Servicing Fees
	 	 	–	 	 	$	0.00	 
	 
	 	 	 	 	 	 	 
	9. Other Interest (attach explanation)
	 	 	+	 	 	$	0.00	 
	 
	 	 	 	 	 	 	 
	10. Interest Due (need to subtract ser fee)
	 	 	 	 	 	$	0.00	 
	 
	 	 	 	 	 	 	 
	Remittance Calculation
	 	 	 	 	 	 	 	 
	11. Total Principal and Interest Due (lines 5+10)
	 	 	+	 	 	$	0.00	 
	 
	 	 	 	 	 	 	 
	12. Reimbursement of Non-Recoverable Advances
	 	 	–	 	 	$	0.00	 
	 
	 	 	 	 	 	 	 
	13. Total Realized gains
	 	 	+	 	 	$	0.00	 
	 
	 	 	 	 	 	 	 
	14. Total Realized Losses
	 	 	–	 	 	$	0.00	 
	 
	 	 	 	 	 	 	 
	15. Total Prepayment Penalties
	 	 	+	 	 	$	0.00	 
	 
	 	 	 	 	 	 	 
	16. Total Non-Supported Compensating Interest
	 	 	–	 	 	$	0.00	 
	 
	 	 	 	 	 	 	 
	17. Other (attach explanation)
	 	 	 	 	 	$	0.00	 
	 
	 	 	 	 	 	 	 
	18. Net Funds Due on or before Remittance Date
	 	 	$	 	 	$	0.00	 
	 
	 	 	 	 	 	 	 

Section 2. Delinquency Report — Optional Data for Loan Accounting

Installments Delinquent

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total No.	 	Total No.	 	 	 	 	 	 	 	 	 	 	 	 	 	In	 	Real Estate	 	Total Dollar
	of	 	of	 	30-	 	60-	 	90 or more	 	Foreclosure	 	Owned	 	Amount of
	Loans	 	Delinquencies	 	Days	 	Days	 	Days	 	(Optional)	 	(Optional)	 	Delinquencies
	0
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	$	0.00	 

 

Section 3. REG AB Summary Reporting — REPORT ALL APPLICABLE FIELDS

	 	 	 	 	 	 	 	 	 
	REG AB FIELDS	 	LOAN COUNT	 	BALANCE
	PREPAYMENT PENALTY AMT
	 	 	0	 	 	$	0.00	 
	PREPAYMENT PENALTY AMT WAIVED
	 	 	0	 	 	$	0.00	 
	DELINQUENCY P&I AMOUNT
	 	 	0	 	 	$	0.00	 

 

Exhibit 12B: Standard File Layout – Delinquency Reporting

*The
column/header names in bold are the minimum fields Wells Fargo must receive from every Servicer

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Format
	Column/Header Name	 	Description	 	Decimal	 	Comment
	SERVICER_LOAN_NBR
	 	A unique number assigned to a loan by the Servicer.  This may be different than the LOAN_NBR	 	 	 	 
	 
	 	 	 	 	 	 
	LOAN_NBR
	 	A unique identifier assigned to each loan by the originator.	 	 	 	 
	 
	 	 	 	 	 	 
	CLIENT_NBR
	 	Servicer Client Number	 	 	 	 
	 
	 	 	 	 	 	 
	SERV_INVESTOR_NBR
	 	Contains a unique number as
assigned by an external servicer to identify a group of loans in their system.	 	 	 	 
	 
	 	 	 	 	 	 
	BORROWER_FIRST_NAME
	 	First Name of the Borrower.	 	 	 	 
	 
	 	 	 	 	 	 
	BORROWER_LAST_NAME
	 	Last name of the borrower.	 	 	 	 
	 
	 	 	 	 	 	 
	PROP_ADDRESS
	 	Street Name and Number of Property	 	 	 	 
	 
	 	 	 	 	 	 
	PROP_STATE
	 	The state where the  property located.	 	 	 	 
	 
	 	 	 	 	 	 
	PROP_ZIP
	 	Zip code where the property is located.	 	 	 	 
	 
	 	 	 	 	 	 
	BORR_NEXT_PAY_DUE_DATE
	 	The date that the borrower’s next
payment is due to the servicer at the end of processing cycle, as reported by Servicer.	 	 	 	MM/DD/YYYY
	 
	 		 	 	 	 
	 
	 	 	 	 	 	 
	LOAN_TYPE
	 	Loan Type (i.e. FHA, VA, Conv)	 	 	 	 
	 
	 	 	 	 	 	 
	BANKRUPTCY_FILED_DATE
	 	The date a particular bankruptcy claim was filed.	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 
	BANKRUPTCY_CHAPTER_CODE
	 	The chapter under which the bankruptcy was filed.	 	 	 	 
	 
	 	 	 	 	 	 
	BANKRUPTCY_CASE_NBR
	 	The case number assigned by the court to the bankruptcy filing.	 	 	 	 
	 
	 	 	 	 	 	 
	POST_PETITION_DUE_DATE
	 	The payment due date once the bankruptcy has been approved by the courts	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 
	BANKRUPTCY_DCHRG_DISM_DATE
	 	The Date The Loan Is Removed From Bankruptcy. Either by Dismissal, Discharged and/or a Motion	 	 	 	MM/DD/YYYY
	 
	 	For Relief Was Granted.	 	 	 	 
	 
	 	 	 	 	 	 
	LOSS_MIT_APPR_DATE
	 	The Date The Loss Mitigation Was Approved By The Servicer	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 
	LOSS_MIT_TYPE
	 	The Type Of Loss Mitigation Approved For A Loan Such As;	 	 	 	 
	 
	 	 	 	 	 	 
	LOSS_MIT_EST_COMP_DATE
	 	The Date The Loss Mitigation /Plan Is Scheduled To End/Close	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 
	LOSS_MIT_ACT_COMP_DATE
	 	The Date The Loss Mitigation Is Actually Completed	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 
	FRCLSR_APPROVED_DATE
	 	The date DA Admin sends a letter to
the servicer with instructions to begin foreclosure proceedings.	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 
	ATTORNEY_REFERRAL_DATE
	 	Date File Was Referred To Attorney to Pursue Foreclosure	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 
	FIRST_LEGAL_DATE
	 	Notice of 1st legal filed by an Attorney in a Foreclosure Action	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 
	FRCLSR_SALE_EXPECTED_DATE
	 	The date by which a foreclosure sale is expected to occur.	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 
	FRCLSR_SALE_DATE
	 	The actual date of the foreclosure sale.	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 
	FRCLSR_SALE_AMT
	 	The amount a property sold for at the foreclosure sale.	 	2	 	No commas(,) or
	 
	 	 	 	 	 	dollar signs ($)
	 
	 	 	 	 	 	 
	EVICTION_START_DATE
	 	The date the servicer initiates eviction of the borrower.	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 
	EVICTION_COMPLETED_DATE
	 	The date the court revokes legal possession of the property from the borrower.	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 
	LIST_PRICE
	 	The price at which an REO property is marketed.	 	2	 	No commas(,) or
	 
	 	 	 	 	 	dollar signs ($)
	 
	 	 	 	 	 	 
	LIST_DATE
	 	The date an REO property is listed at a particular price.	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 
	OFFER_AMT
	 	The dollar value of an offer for an REO property.	 	2	 	No commas(,) or
	 
	 	 	 	 	 	dollar signs ($)
	 
	 	 	 	 	 	 
	OFFER_DATE_TIME
	 	The date an offer is received by DA Admin or by the Servicer.	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 
	REO_CLOSING_DATE
	 	The date the REO sale of the property is scheduled to close.	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 
	REO_ACTUAL_CLOSING_DATE
	 	Actual Date Of REO Sale	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 
	OCCUPANT_CODE
	 	Classification of how the property is occupied.	 	 	 	 
	 
	 	 	 	 	 	 
	PROP_CONDITION_CODE
	 	A code that indicates the condition of the property.	 	 	 	 
	 
	 	 	 	 	 	 
	PROP_INSPECTION_DATE
	 	The date a  property inspection is performed.	 	 	 	MM/DD/YYYY

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Format
	Column/Header Name	 	Description	 	Decimal	 	Comment
	APPRAISAL_DATE
	 	The date the appraisal was done.	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 
	CURR_PROP_VAL
	 	The current "as is" value of the property based on brokers price opinion or appraisal.	 	2	 	 
	 
	 	 	 	 	 	 
	REPAIRED_PROP_VAL
	 	The amount the property would be worth if repairs are
completed pursuant to a broker’s price opinion or appraisal.	 	2	 	 
	 
	 	 	 	 	 	 
	If applicable:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	DELINQ_STATUS_CODE
	 	FNMA Code Describing Status of Loan	 	 	 	 
	 
	 	 	 	 	 	 
	DELINQ_REASON_CODE
	 	The circumstances which caused a borrower to
stop paying on a loan. Code indicates the reason why the loan is in default for this cycle.	 	 	 	 
	 
	 	 	 	 	 	 
	MI_CLAIM_FILED_DATE
	 	Date Mortgage Insurance Claim Was Filed With Mortgage Insurance Company.	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 
	MI_CLAIM_AMT
	 	Amount of Mortgage Insurance Claim Filed	 	 	 	No commas(,) or
	 
	 	 	 	 	 	dollar signs ($)
	 
	 	 	 	 	 	 
	MI_CLAIM_PAID_DATE
	 	Date Mortgage Insurance Company Disbursed Claim Payment	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 
	MI_CLAIM_AMT_PAID
	 	Amount Mortgage Insurance Company Paid On Claim	 	2	 	No commas(,) or
	 
	 	 	 	 	 	dollar signs ($)
	 
	 	 	 	 	 	 
	POOL_CLAIM_FILED_DATE
	 	Date Claim Was Filed With Pool Insurance Company	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 
	POOL_CLAIM_AMT
	 	Amount of Claim Filed With Pool Insurance Company	 	2	 	No commas(,) or
	 
	 	 	 	 	 	dollar signs ($)
	 
	 	 	 	 	 	 
	POOL_CLAIM_PAID_DATE
	 	Date Claim Was Settled and The Check Was Issued By The Pool Insurer	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 
	POOL_CLAIM_AMT_PAID
	 	Amount Paid On Claim By Pool Insurance Company	 	2	 	No commas(,) or
	 
	 	 	 	 	 	dollar signs ($)
	 
	 	 	 	 	 	 
	FHA_PART_A_CLAIM_FILED_DATE
	 	Date FHA Part A Claim Was Filed With HUD	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 
	FHA_PART_A_CLAIM_AMT
	 	Amount of FHA Part A Claim Filed	 	2	 	No commas(,) or
	 
	 	 	 	 	 	dollar signs ($)
	 
	 	 	 	 	 	 
	FHA_PART_A_CLAIM_PAID_DATE
	 	Date HUD Disbursed Part A Claim Payment	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 
	FHA_PART_A_CLAIM_PAID_AMT
	 	Amount HUD Paid on Part A Claim	 	2	 	No commas(,) or
	 
	 	 	 	 	 	dollar signs ($)
	 
	 	 	 	 	 	 
	FHA_PART_B_CLAIM_FILED_DATE
	 	Date FHA Part B Claim Was Filed With HUD	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 
	FHA_PART_B_CLAIM_AMT
	 	Amount of FHA Part B Claim Filed	 	2	 	No commas(,) or
	 
	 	 	 	 	 	dollar signs ($)
	 
	 	 	 	 	 	 
	FHA_PART_B_CLAIM_PAID_DATE
	 	Date HUD Disbursed Part B Claim Payment	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 
	FHA_PART_B_CLAIM_PAID_AMT
	 	Amount HUD Paid on Part B Claim	 	2	 	No commas(,) or
	 
	 	 	 	 	 	dollar signs ($)
	 
	 	 	 	 	 	 
	VA_CLAIM_FILED_DATE
	 	Date VA Claim Was Filed With the Veterans Admin	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 
	VA_CLAIM_PAID_DATE
	 	Date Veterans Admin. Disbursed VA Claim Payment	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 
	VA_CLAIM_PAID_AMT
	 	Amount Veterans Admin. Paid on VA Claim	 	2	 	No commas(,) or
	 
	 	 	 	 	 	dollar signs ($)
	 
	 	 	 	 	 	 
	MOTION_FOR_RELIEF_DATE
	 	The date the Motion for Relief was filed	 	10	 	MM/DD/YYYY
	 
	 	 	 	 	 	 
	FRCLSR_BID_AMT
	 	The foreclosure sale bid amount	 	11	 	No commas(,) or
	 
	 	 	 	 	 	dollar signs ($)
	 
	 	 	 	 	 	 
	FRCLSR_SALE_TYPE
	 	The foreclosure sales results: REO,
Third Party, Conveyance to HUD/VA	 	 	 	 
	 
	 	 	 	 	 	 
	REO_PROCEEDS
	 	The net proceeds from the sale of the REO property.	 	 	 	No commas(,) or
	 
	 	 	 	 	 	dollar signs ($)
	 
	 	 	 	 	 	 
	BPO_DATE
	 	The date the BPO was done.	 	 	 	 
	 
	 	 	 	 	 	 
	CURRENT_FICO
	 	The current FICO score	 	 	 	 
	 
	 	 	 	 	 	 
	HAZARD_CLAIM_FILED_DATE
	 	The date the Hazard Claim was filed with the Hazard	 	10	 	MM/DD/YYYY
	 
	 	Insurance Company.	 	 	 	 
	 
	 	 	 	 	 	 
	HAZARD_CLAIM_AMT
	 	The amount of the Hazard Insurance Claim filed.	 	11	 	No commas(,) or
	 
	 	 	 	 	 	dollar signs ($)
	 
	 	 	 	 	 	 
	HAZARD_CLAIM_PAID_DATE
	 	The date the Hazard Insurance Company disbursed the claim	 	10	 	MM/DD/YYYY
	 
	 	payment.	 	 	 	 

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Format
	Column/Header Name	 	Description	 	Decimal	 	Comment
	HAZARD_CLAIM_PAID_AMT
	 	The amount the Hazard Insurance Company paid on the claim.	 	11	 	No commas(,) or
	 
	 	 	 	 	 	dollar signs ($)
	 
	 	 	 	 	 	 
	ACTION_CODE
	 	Indicates loan status	 	 	 	Number
	 
	 	 	 	 	 	 
	NOD_DATE
	 	 	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 
	NOI_DATE
	 	 	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 
	ACTUAL_PAYMENT_PLAN_START_DATE
	 	 	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 
	ACTUAL_PAYMENT_ PLAN_END_DATE
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	ACTUAL_REO_START_DATE
	 	 	 	 	 	MM/DD/YYYY
	 
	 	 	 	 	 	 
	REO_SALES_PRICE
	 	 	 	 	 	Number
	 
	 	 	 	 	 	 
	REALIZED_LOSS/GAIN
	 	As defined in the Servicing Agreement	 	 	 	Number

Exhibit 2: Standard File Codes – Delinquency Reporting

The Loss Mit Type field should show the approved Loss Mitigation Code as follows:

	 	•	 	ASUM-Approved Assumption
	 
	 	•	 	BAP- Borrower Assistance Program
	 
	 	•	 	CO- Charge Off
	 
	 	•	 	DIL- Deed-in-Lieu
	 
	 	•	 	FFA- Formal Forbearance Agreement
	 
	 	•	 	MOD- Loan Modification
	 
	 	•	 	PRE- Pre-Sale
	 
	 	•	 	SS- Short Sale
	 
	 	•	 	MISC- Anything else approved by the PMI or Pool Insurer

NOTE: Wells Fargo Bank will accept alternative Loss Mitigation Types to those above,
provided that they are consistent with industry standards. If Loss Mitigation Types other than
those above are used, the Servicer must supply Wells Fargo Bank with a description of each of the
Loss Mitigation Types prior to sending the file.

The Occupant Code field should show the current status of the property code as follows:

	 	•	 	Mortgagor
	 
	 	•	 	Tenant
	 
	 	•	 	Unknown
	 
	 	•	 	Vacant

	The Property Condition field should show the last reported condition of the property as follows:

	 	•	 	Damaged
	 
	 	•	 	Excellent
	 
	 	•	 	Fair
	 
	 	•	 	Gone
	 
	 	•	 	Good
	 
	 	•	 	Poor
	 
	 	•	 	Special Hazard
	 
	 	•	 	Unknown

 

Exhibit 2: Standard File Codes – Delinquency Reporting, Continued

The FNMA Delinquent Reason Code field should show the Reason for Delinquency as
follows:

	 	 	 
	Delinquency Code	 	Delinquency Description
	001

	 	FNMA-Death of principal mortgagor
	002

	 	FNMA-Illness of principal mortgagor
	003

	 	FNMA-Illness of mortgagor’s family member
	004

	 	FNMA-Death of mortgagor’s family member
	005

	 	FNMA-Marital difficulties
	006

	 	FNMA-Curtailment of income
	007

	 	FNMA-Excessive Obligation
	008

	 	FNMA-Abandonment of property
	009

	 	FNMA-Distant employee transfer
	011

	 	FNMA-Property problem
	012

	 	FNMA-Inability to sell property
	013

	 	FNMA-Inability to rent property
	014

	 	FNMA-Military Service
	015

	 	FNMA-Other
	016

	 	FNMA-Unemployment
	017

	 	FNMA-Business failure
	019

	 	FNMA-Casualty loss
	022

	 	FNMA-Energy environment costs
	023

	 	FNMA-Servicing problems
	026

	 	FNMA-Payment adjustment
	027

	 	FNMA-Payment dispute
	029

	 	FNMA-Transfer of ownership pending
	030

	 	FNMA-Fraud
	031

	 	FNMA-Unable to contact borrower
	INC

	 	FNMA-Incarceration

 

Exhibit 2: Standard File Codes – Delinquency Reporting, Continued

The FNMA Delinquent Status Code field should show the Status of Default as follows:

	 	 	 
	Status Code	 	Status Description
	09

	 	Forbearance
	17

	 	Pre-foreclosure Sale Closing Plan Accepted
	24

	 	Government Seizure
	26

	 	Refinance
	27

	 	Assumption
	28

	 	Modification
	29

	 	Charge-Off
	30

	 	Third Party Sale
	31

	 	Probate
	32

	 	Military Indulgence
	43

	 	Foreclosure Started
	44

	 	Deed-in-Lieu Started
	49

	 	Assignment Completed
	61

	 	Second Lien Considerations
	62

	 	Veteran’s Affairs-No Bid
	63

	 	Veteran’s Affairs-Refund
	64

	 	Veteran’s Affairs-Buydown
	65

	 	Chapter 7 Bankruptcy
	66

	 	Chapter 11 Bankruptcy
	67

	 	Chapter 13 Bankruptcy

 

Exhibit 12C: Calculation of Realized Loss/Gain Form 332– Instruction Sheet

NOTE: Do not net or combine items. Show all expenses individually and all credits as
separate line items. Claim packages are due on the remittance report date. Late submissions
may result in claims not being passed until the following month. The Servicer is responsible
to remit all funds pending loss approval and /or resolution of any disputed items.

The numbers on the 332 form correspond with the numbers listed below.

Liquidation and Acquisition Expenses:

	 	1.	 	The Actual Unpaid Principal Balance of the Mortgage Loan. For documentation, an
Amortization Schedule from date of default through liquidation breaking out the net
interest and servicing fees advanced is required.
	 
	 	2.	 	The Total Interest Due less the aggregate amount of servicing fee that would have
been earned if all delinquent payments had been made as agreed. For documentation, an
Amortization Schedule from date of default through liquidation breaking out the net
interest and servicing fees advanced is required.
	 
	 	3.	 	Accrued Servicing Fees based upon the Scheduled Principal Balance of the Mortgage
Loan as calculated on a monthly basis. For documentation, an Amortization Schedule from
date of default through liquidation breaking out the net interest and servicing fees
advanced is required.
	 
	 	4-12. 	 	 Complete as applicable. Required documentation:
	 
	 	*	 	For taxes and insurance advances – see page 2 of 332 form — breakdown required
showing period of coverage, base tax, interest, penalty. Advances prior to default require
evidence of servicer efforts to recover advances.
	 
	 	*	 	For escrow advances — complete payment history
(to calculate advances from last positive escrow balance forward)
	 
	 	*	 	Other expenses —  copies of corporate advance history showing all payments
	 
	 	*	 	REO repairs > $1500 require explanation
	 
	 	*	 	REO repairs >$3000 require evidence of at least 2 bids.
	 
	 	*	 	Short Sale or Charge Off require P&L supporting the decision and WFB’s approved
Officer Certificate
	 
	 	*	 	Unusual or extraordinary items may require further documentation.
	 
	 	13.	 	The total of lines 1 through 12.

  Credits:

	 	14-21. 	 	 Complete as applicable. Required documentation:
	 
	 	*	 	Copy of the HUD 1 from the REO sale. If a 3rd Party Sale, bid
instructions and Escrow Agent / Attorney
	 
	 	 	 	Letter of Proceeds Breakdown.
	 
	 	*	 	Copy of EOB for any MI or gov’t guarantee

	 
	 	*	 	 All other credits need to be clearly defined on the 332 form
	 
	 	22.	 	The total of lines 14 through 21.

 Please Note: For HUD/VA loans, use line (18a) for Part A/Initial proceeds and line
(18b) for Part B/Supplemental proceeds.

 Total Realized Loss (or Amount of Any Gain)

	 	 23.	 	The total derived from subtracting line 22 from 13. If the amount represents a
realized gain, show the amount in parenthesis ( ).

 

Exhibit 3A: Calculation of Realized Loss/Gain Form 332

	 	 	 	 	 
	Prepared by:                                                            

	 	 	Date:                                                           
	 

	 	 	 	 	 
	Phone:                                                           

	 	 	 	Email Address:                                                           

Servicer Loan No.

Servicer Name

Servicer Address

WELLS FARGO BANK, N.A. Loan No.                                        

Borrower’s Name:                                                             

Property Address:                                                            

Liquidation Type:            REO Sale            3rd Party Sale            Short Sale            Charge Off

Was this loan granted a Bankruptcy deficiency or cramdown           Yes            No

If “Yes”, provide deficiency or cramdown amount                                         

	 	 	 	 	 	 	 	 	 
	Liquidation and Acquisition Expenses:
	 	 	 	 	 	 	 	 
	(1) Actual Unpaid Principal Balance of Mortgage Loan
	 	$	 	 	 	 	(1	)
	(2) Interest accrued at Net Rate
	 	 	 	 	 	 	(2	)
	(3) Accrued Servicing Fees
	 	 	 	 	 	 	(3	)
	(4) Attorney’s Fees
	 	 	 	 	 	 	(4	)
	(5) Taxes (see page 2)
	 	 	 	 	 	 	(5	)
	(6) Property Maintenance
	 	 	 	 	 	 	(6	)
	(7) MI/Hazard Insurance Premiums (see page 2)
	 	 	 	 	 	 	(7	)
	(8) Utility Expenses
	 	 	 	 	 	 	(8	)
	(9) Appraisal/BPO
	 	 	 	 	 	 	(9	)
	(10) Property Inspections
	 	 	 	 	 	 	(10	)
	(11) FC Costs/Other Legal Expenses
	 	 	 	 	 	 	(11	)
	(12) Other (itemize)
	 	 	 	 	 	 	(12	)
	Cash for Keys__________________________
	 	 	 	 	 	 	(12	)
	HOA/Condo Fees_______________________
	 	 	 	 	 	 	(12	)
	______________________________________
	 	 	 	 	 	 	(12	)
	 
	 	 	 	 	 	 	 	 
	Total Expenses
	 	$	 	 	 	 	(13	)
	 
	 	 	 	 	 	 	 	 
	Credits:
	 	 	 	 	 	 	 	 
	(14) Escrow Balance
	 	$	 	 	 	 	(14	)
	(15) HIP Refund
	 	 	 	 	 	 	(15	)
	(16) Rental Receipts
	 	 	 	 	 	 	(16	)
	(17) Hazard Loss Proceeds
	 	 	 	 	 	 	(17	)
	(18) Primary Mortgage Insurance / Gov’t Insurance
	 	 	 	 	 	(18a) HUD Part A
	 
	 	 	 	 	 	(18b) HUD Part B
	(19) Pool Insurance Proceeds
	 	 	 	 	 	 	(19	)
	(20) Proceeds from Sale of Acquired Property
	 	 	 	 	 	 	(20	)
	(21) Other (itemize)
	 	 	 	 	 	 	(21	)
	_________________________________________
	 	 	 	 	 	 	(21	)

 

	 	 	 	 	 	 	 	 	 
	Total Credits
	 	$	 	 	 	 	(22	)
	Total Realized Loss (or Amount of Gain)
	 	$	 	 	 	 	(23	)

 

Escrow Disbursement Detail

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Type	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(Tax /Ins.)	 	Date Paid	 	 	Period of Coverage	 	 	Total Paid	 	 	Base Amount	 	 	Penalties	 	 	Interest

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00121-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00121-of-00352.parquet"}]]