EXECUTION COPY

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                       MASTER INTERIM SERVICING AGREEMENT



                                     between



                          LEHMAN BROTHERS BANK, F.S.B,
                                    Purchaser



                                       and



                          First National Bank of Nevada
                                     Seller



                          Dated as of November 15, 2000



                             CONVENTIONAL FIXED RATE
                           RESIDENTIAL MORTGAGE LOANS



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                                                                  EXECUTION COPY


                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----


                                    ARTICLE I

                                   DEFINITIONS

Section 1.01  Definitions......................................................1


                                   ARTICLE II

                                    SERVICING

Section 2.01  Seller to Act as Servicer........................................8
Section 2.02  Liquidation of Mortgage Loans...................................10
Section 2.03  Collection of Mortgage Loan Payments............................10
Section 2.04  Establishment of and Deposits to Custodial Account..............10
Section 2.05  Permitted Withdrawals From Custodial Account....................11
Section 2.06  Establishment of and Deposits to Escrow Account.................12
Section 2.07  Permitted Withdrawals From Escrow Account.......................13
Section 2.08  Payment of Taxes, Insurance and Other Charges...................13
Section 2.09  PMI and LPMI Obligations........................................14
Section 2.10  Protection of Accounts..........................................14
Section 2.11  Maintenance of Hazard Insurance.................................14
Section 2.12  Maintenance of Mortgage Impairment Insurance....................16
Section 2.13  Maintenance of Fidelity Bond and Errors and
              Omissions Insurance.............................................16
Section 2.14  Inspections.....................................................17
Section 2.15  Restoration of Mortgaged Property...............................17
Section 2.16  Maintenance of PMI Policy and/or LPMI Policy; Claims............17
Section 2.17  Title, Management and Disposition of REO Property...............19
Section 2.18  Permitted Withdrawals with respect to REO Property..............20
Section 2.19  Real Estate Owned Reports.......................................20
Section 2.20  Liquidation Reports.............................................20
Section 2.21  Reports of Foreclosures and Abandonments of
              Mortgaged Property..............................................21


                                   ARTICLE III

                              PAYMENTS TO PURCHASER

Section 3.01  Remittances.....................................................21
Section 3.02  Statements to Purchaser.........................................21


                                       -i-


                                   ARTICLE IV

                          GENERAL SERVICING PROCEDURES

Section 4.01  Transfers of Mortgaged Property.................................22
Section 4.02  Satisfaction of Mortgages and Release of Mortgage Files.........22
Section 4.03  Servicing Compensation..........................................23
Section 4.04  Annual Statement as to Compliance...............................23
Section 4.05  Annual Independent Public Accountants' Servicing Report.........23
Section 4.06  Right to Examine Seller Records.................................24


                                    ARTICLE V

                               SELLER TO COOPERATE

Section 5.01  Provision of Information........................................24
Section 5.02  Financial Statements; Servicing Facilities......................24


                                   ARTICLE VI

                                   TERMINATION

Section 6.01  Agency Suspension...............................................24
Section 6.02  Damages.........................................................25
Section 6.03  Termination Upon Transfer of Servicing..........................25
Section 6.04  Servicing Transfer Provisions...................................25


                                   ARTICLE VII

                                BOOKS AND RECORDS

Section 7.01  Possession of Servicing Files Prior to the Transfer Date........26


                                  ARTICLE VIII

                         INDEMNIFICATION AND ASSIGNMENT

Section 8.01  Indemnification.................................................27
Section 8.02  Limitation on Liability of Seller and Others....................27
Section 8.03  Limitation on Resignation and Assignment by Seller..............28
Section 8.04  Assignment by Purchaser.........................................28

                                      -ii-


                                   ARTICLE IX

             REPRESENTATIONS, WARRANTIES AND COVENANTS OF PURCHASER

Section 9.01   Authority and Capacity.........................................29
Section 9.02   Assistance.....................................................29


                                    ARTICLE X

                    REPRESENTATIONS AND WARRANTIES OF SELLER

Section 10.01  Due Organization and Authority.................................29
Section 10.02  Ordinary Course of Business....................................29
Section 10.03  No Conflicts...................................................29
Section 10.04  Ability to Service.............................................30
Section 10.05  Ability to Perform.............................................30
Section 10.06  No Litigation Pending..........................................30
Section 10.07  No Consent Required............................................30
Section 10.08  No Untrue Information..........................................30


                                   ARTICLE XI

                                     DEFAULT

Section 11.01  Events of Default..............................................30
Section 11.02  Waiver of Defaults.............................................32


                                   ARTICLE XII

                            MISCELLANEOUS PROVISIONS

Section 12.01  Notices........................................................32
Section 12.02  Waivers........................................................32
Section 12.03  Entire Agreement; Amendment....................................33
Section 12.04  Execution; Binding Effect......................................33
Section 12.05  Headings.......................................................33
Section 12.06  Applicable Law.................................................33
Section 12.07  Relationship of Parties........................................33
Section 12.08  Severability of Provisions.....................................33
Section 12.09  Recordation of Assignments of Mortgage.........................33
Section 12.10  Appointment and Designation of Master Servicer.................34


                                      -iii-


EXHIBITS
--------

EXHIBIT 1    FORM OF MONTHLY REMITTANCE ADVICE

EXHIBIT 2    FORM OF CUSTODIAL ACCOUNT CERTIFICATION

EXHIBIT 3    FORM OF CUSTODIAL ACCOUNT LETTER AGREEMENT

EXHIBIT 4    FORM OF ESCROW ACCOUNT CERTIFICATION

EXHIBIT 5    FORM OF ESCROW ACCOUNT LETTER AGREEMENT

EXHIBIT 6    MORTGAGE LOAN SCHEDULE

EXHIBIT 7    CONTENTS OF EACH MORTGAGE FILE

EXHIBIT 8    FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT

EXHIBIT 9    FORM OF ACKNOWLEDGMENT AGREEMENT

EXHIBIT 10   FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT


                                      -iv-



                           INTERIM SERVICING AGREEMENT

          This Interim Servicing Agreement (the "Agreement") is entered into as
of the fifteenth day of November, 2000, by and between First National Bank of
Nevada (the "Seller"), a national banking association and Lehman Brothers Bank,
F.S.B., a federal savings bank (the "Purchaser").

          WHEREAS, the Purchaser and Seller entered into a Master Mortgage Loan
Purchase and Warranties Agreement dated as of the date hereof (the "Purchase
Agreement") pursuant to which from time to time the Purchaser shall purchase
from the Seller certain conventional, residential, adjustable rate first
mortgage loans (the "Mortgage Loans") delivered as whole loans servicing
released; and

          WHEREAS, the Purchaser desires to have the Seller service the Mortgage
Loans in each Mortgage Loan Package during the period between the related
Closing Date and the related Transfer Date (the "Interim Period"), the Seller
desires to service and administer such Mortgage Loans on behalf of the
Purchaser, or its designee or assignee, during the related Interim Period, and
the parties desire to provide the terms and conditions of such interim servicing
by the Seller.

          NOW, THEREFORE, in consideration of the mutual covenants made herein
and for other good and valuable consideration the sufficiency of which is hereby
acknowledged, the parties hereto hereby agree as follows:


                                    ARTICLE I

                                   DEFINITIONS

          Section 1.01 Definitions. The following terms are defined as follows
(except as otherwise agreed by the parties).

          Accepted Servicing Practices: With respect to any Mortgage Loan, those
mortgage servicing practices of prudent mortgage lending institutions which
service mortgage loans of the same type as such Mortgage Loan in the
jurisdiction where the related Mortgaged Property is located.

          Adequately Capitalized: Adequately Capitalized shall mean, with
respect to any Insured Depository Institution, the maintenance by such Insured
Depository Institution of capital ratios at or above the required minimum levels
for such capital category under the regulations promulgated pursuant to Section
1831(o) of the United States Code, as amended from time to time, by the
Appropriate Federal Banking Agency for such institution, as such regulation may
be amended from time to time.




          Agreement: This agreement between the Purchaser and the Seller for the
interim servicing and administration of the Mortgage Loans.

          Ancillary Income: All income (other than principal and interest)
derived from the Mortgage Loans, including but not limited to, late charges,
prepayment penalties, fees received with respect to checks or bank drafts
returned by the related bank for non-sufficient funds, assumption fees, optional
insurance administrative fees and all other incidental fees and charges. The
Seller shall retain all Ancillary Income as part of the Servicing Fee to the
extent not required to be deposited into the Custodial Account.

          Appraised Value: The value set forth in an appraisal made in
connection with the origination of the related Mortgage Loan as the value of the
Mortgaged Property.

          Appropriate Federal Banking Agency: Appropriate Federal Banking Agency
shall have the meaning ascribed to it by Section 1813(q) of Title 12 of the
United States Code, as amended from time to time.

          BIF: The Bank Insurance Fund, or any successor thereto.

          Business Day: Any day other than (i) a Saturday or Sunday, or (ii) a
federal holiday.

          Closing Date: The date or dates on which the Purchaser from time to
time shall purchase and the Seller from time to time shall sell, the Mortgage
Loans listed on the related Mortgage Loan Schedule.

          Condemnation Proceeds: All awards or settlements in respect of a
Mortgaged Property, whether permanent or temporary, partial or entire, by
exercise of the power of eminent domain or condemnation, to the extent not
required to be released to a Mortgagor in accordance with the terms of the
related Mortgage Loan Documents.

          Custodial Account: The separate account or accounts created and
maintained pursuant to Section 2.04.

          Cut-off Date: The first day of the month in which the related Closing
Date occurs.

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

          Due Date: The day of the month on which the Monthly Payment is due on
a Mortgage Loan, exclusive of any days of grace. With respect to the Mortgage
Loans for which payment from the Mortgagor is due on a day other than the first
day of the month, such Mortgage Loans will be treated as if the Monthly Payment
is due on the first day of the month following the actual Due Date.


                                      -2-


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

          Eligible Investments: Any one or more of the obligations and
securities listed below which investment provides for a date of maturity not
later than the Determination Date in each month:

          (i) direct obligations of, and obligations fully guaranteed by, the
     United States of America, or any agency or instrumentality of the United
     States of America the obligations of which are backed by the full faith and
     credit of the United States of America; and

          (ii) federal funds, demand and time deposits in, certificates of
     deposits of, or bankers' acceptances issued by, any depository institution
     or trust company incorporated or organized under the laws of the United
     States of America or any state thereof and subject to supervision and
     examination by federal and/or state banking authorities, so long as at the
     time of such investment or contractual commitment providing for such
     investment the commercial paper or other short-term debt obligations of
     such depository institution or trust company (or, in the case of a
     depository institution or trust company which is the principal subsidiary
     of a holding company, the commercial paper or other short-term debt
     obligations of such holding company) are rated "P-1" by Moody's Investors
     Service, Inc. and the long-term debt obligations of such holding company)
     are rated "P-1" by Moody's Investors Service, Inc. and the long-term debt
     obligations of such depository institution or trust company (or, in the
     case of a depository institution or trust company which is the principal
     subsidiary of a holding company, the long-term debt obligations of such
     holding company) are rated at least "Aa" by Moody's Investors Service, Inc.

provided, however, that no such instrument shall be an Eligible Investment if
such instrument evidences either (i) a right to receive only interest payments
with respect to the obligations underlying such instrument, or (ii) both
principal and interest payments derived from obligations underlying such
instrument and the principal and interest payments with respect to such
instrument provide a yield to maturity of 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 2.06.

          Escrow Payments: With respect to any Mortgage Loan, the amounts
constituting ground rents, taxes, assessments, water rates, sewer rents,
municipal charges, mortgage insurance premiums, fire and hazard insurance
premiums, condominium charges, and any other payments required to be escrowed by
the Mortgagor with the mortgagee pursuant to the Mortgage or any other document.

          Event of Default: Any one of the conditions or circumstances
enumerated in Section 11.01.



                                      -3-


          Fannie Mae: Fannie Mae, or any successor thereto.

          Fannie Mae Guides: The Fannie Mae Selling Guide and the Fannie Mae
Servicing Guide and all amendments or additions thereto.

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

          Freddie Mac: Freddie Mac, or any successor thereto.

          Fidelity Bond: A fidelity bond to be maintained by the Seller pursuant
to Section 2.13.

          Insurance Proceeds: With respect to each Mortgage Loan, proceeds of
insurance policies insuring the Mortgage Loan or the related Mortgaged Property.

          Insured Depository Institution: Insured Depository Institution shall
have the meaning ascribed to such term by Section 1813(c)(2) of Title 12 of the
United States Code, as amended from time to time.

          Interim Period: The period between the related Closing Date and the
related Transfer Date.

          Liquidation Proceeds: Cash received in connection with the liquidation
of a defaulted Mortgage Loan, whether through the sale or assignment of such
Mortgage Loan, trustee's sale, foreclosure sale or otherwise, or the sale of the
related Mortgaged Property if the Mortgaged Property is acquired in satisfaction
of the Mortgage Loan.

          Loan-to-Value Ratio or LTV: With respect to any Mortgage Loan, the
ratio of the outstanding principal amount of the Mortgage Loan as of the related
Cut-off Date (unless otherwise indicated) to the lesser of (a) the Appraised
Value of the Mortgaged Property and (b) if the Mortgage Loan was made to finance
the acquisition of the related Mortgaged Property, the purchase price of the
Mortgaged Property, expressed as a percentage.

          LPMI Loan: A Mortgage Loan with a LPMI Policy.

          LPMI Policy: A policy of primary mortgage guaranty insurance issued by
United Guaranty Corporation or another Qualified Insurer pursuant to which the
related premium is to be paid by the Servicer of the related Mortgage Loan from
payments of interest made by the Mortgagor in an amount as is set forth in the
related Terms Letter and Mortgage Loan Schedule.

          LPMI Fee: With respect to each LPMI Loan, the portion of the Mortgage
Interest Rate as set forth on the related Mortgage Loan Schedule (which shall be
payable solely from the interest portion of Monthly Payments, Insurance
Proceeds, Condemnation Proceeds or Liquidation Proceeds), which, during such
period prior to the required cancellation of the LPMI Policy, shall be used to
pay the premium due on the related LPMI Policy.

          Monthly Payment: The scheduled monthly payment of principal and
interest on a Mortgage Loan.



                                      -4-


          Mortgage: The mortgage, deed of trust or other instrument securing a
Mortgage Note, which creates a first lien on an unsubordinated estate in fee
simple in real property securing the Mortgage Note.

          Mortgage File: The items pertaining to a particular Mortgage Loan
referred to in Exhibit 7 annexed hereto, and any additional documents required
to be added to the Mortgage File pursuant to this Agreement.

          Mortgage Impairment Insurance Policy: A mortgage impairment or blanket
hazard insurance policy as described in Section 2.12.

          Mortgage Interest Rate: The annual rate of interest borne on a
Mortgage Note.

          Mortgage Loan: An individual Mortgage Loan which is the subject of
this Agreement, purchased by the Purchaser on a servicing released basis, each
Mortgage Loan being identified on the Mortgage Loan Schedule, which Mortgage
Loan includes without limitation the Mortgage File, the Monthly Payments,
Insurance Proceeds, Servicing Rights and all other rights, benefits, proceeds
and obligations arising from or in connection with such Mortgage Loan.

          Mortgage Loan Documents: The documents contained in the Mortgage File
pertaining to each Mortgage Loan.

          Mortgage Loan Package: A pool of Mortgage Loans sold to the Purchaser
on a Closing Date.

          Mortgage Loan Remittance Rate: With respect to each Mortgage Loan, the
annual rate of interest remitted to the Purchaser, which shall be equal to the
Mortgage Interest Rate minus (i) the Interim Servicing Fee Rate, and (ii) with
respect to LPMI Loans, the LPMI Fee.

          Mortgage Loan Schedule: A schedule of Mortgage Loans annexed hereto as
Exhibit 6, such schedule setting forth the following information with respect to
each Mortgage Loan: (1) The Seller's Mortgage Loan identifying number; (2) The
Mortgagor's and co-Mortgagor's (if applicable) names; (3) The street address of
the Mortgaged Property, including the city, state and the zip code; (4) The lot,
block and section numbers of the Mortgaged Property; (5) A code indicating
whether the Mortgage Loan was originated through a correspondent, retain or
wholesale channel; (6) The broker identification number; (7) A code indicating
whether the Mortgaged Property is a single family residence, a 2-4 family
residence, a unit in a condominium or a unit in a planned unit development; (8)
The year in which the Mortgaged Property was built; (9) The number of units for
each Mortgaged Property; (10) The number of bedrooms and rents by unit; (11) The
original months to maturity or the remaining months to maturity from the related
Cut-off Date, in any case base on the original amortization schedule, and if
different, the maturity expressed in the same manner but based on the actual
amortization schedule; (12) The Loan to Value Ratio at origination; (13) The
Mortgage Interest Rate as of the related Cut-off Date; (14) The Appraised Value
and purchase price, if applicable, of the Mortgaged Property; (15) The Mortgage
Interest Rate at the time of origination; (16) The application date of the
Mortgage Loan; (17) The Mortgage Loan approval/commitment date; (18) The
origination date of the Mortgage Loan; (19) The date on which the first payment
is due; (20)


                                      -5-


The stated maturity date; (21) The amount of the monthly payment; (22) The next
due date as of the related Cut-off Date; (23) The original principal amount of
the Mortgage Loan; (24) The principal balance of the Mortgage Loan as of the
close of business on the related Cut-off Date, after deduction of payments of
principal actually received on or before the related Cut-off Date as well as the
scheduled principal balance due as of the related Cut-off Date; (25) A code
indicating the Mortgage Loan purpose; (26) A code indicating the occupancy
status of the Mortgaged Property at the time of origination; (27) The Mortgagors
and co-Mortgagor's (if applicable) FICO Scores; (28) A code indicating the PMI
Policy provider and percentage of coverage, if applicable; (29) The Mortgage
Insurance Certificate number; (30) a code indicating the method of payment for
Mortgage Insurance Premiums and cost (LPMI), if applicable; (31) A code
indicating the loan documentation type; (32) The debt to income ratio; (33) The
number of borrowers; (34) The Mortgagor's and co-Mortgagor's (if applicable)
social security numbers; (35) The Mortgagor's and co-Mortgagor's (if applicable)
date of birth; (36) The Mortgagor's and co-Mortgagor's (if applicable) gender;
(37) The Mortgagor's and co-Mortgagor's (if applicable) race; (38) The Mortgagor
and co-Mortgagor's combined annual income; (39) A code indicating if the
Mortgagor is a first time buyer; (40) A code indicating whether the Mortgage
Loan has a prepayment penalty; (41) A code indicating the prepayment penalty
term and the prepayment penalty amount, if any; (42) The monthly servicing fee,
if provided; (43) The tax service contract provider; (44) The flood insurance
servicer contract provider; (45) The monthly tax and insurance payment; and (46)
The escrow balance as of the Cut-off Date; With respect to the Mortgage Loans in
the aggregate, the Mortgage Loan Schedule shall set forth the following
information, as of the related Cut-off Date: (1) the number of Mortgage Loans;
(2) the current aggregate outstanding principal balance of the Mortgage Loans;
(3) the weighted average Mortgage Interest Rate of the Mortgage Loans; and (4)
the weighted average maturity of the Mortgage Loans.

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

          Mortgaged Property: The real property securing repayment of the debt
evidenced by a Mortgage Note.

          Mortgagor: The obligor on a Mortgage Note.

          Officer's Certificate: A certificate signed by the Chairman of the
Board or the Vice Chairman of the Board or the President or a Vice President or
an assistant Vice President and by the Treasurer or the Secretary or one of the
Assistant Treasurers or Assistant Secretaries of the Purchaser or Seller, as
applicable, and delivered as required by this Agreement.

          PMI Policy: A policy of primary mortgage guaranty insurance issued by
a Qualified Insurer, as required by this Agreement with respect to certain
Mortgage Loans.

          Prime Rate: The prime rate announced to be in effect from time to
time, as published as the average rate in The Wall Street Journal.



                                      -6-


          Purchase Agreement: The Mortgage Loan Purchase and Warranties
Agreement between the Purchaser and the Seller related to the purchase of the
Mortgage Loans dated as of the Cut-off Date.

          Purchaser: Lehman Brothers Bank, F.S.B. and its assigns and or
successors in interest.

          Qualified Depository: ______________________ or such other depository
the accounts of which are insured by the FDIC through the BIF or the SAIF.

          Qualified Insurer: A mortgage guaranty insurance company 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.

          Remittance Date: The remittance date shall be the 18th day of each
calendar month (or if such 18th day is not a Business Day, the first Business
Day immediately following such 18th day).

          REO Disposition: The final sale by the Seller of any REO Property.

          REO Disposition Proceeds: All amounts received with respect to an REO
Disposition pursuant to Section 2.17.

          REO Property: A Mortgaged Property acquired by the Seller on behalf of
the Purchaser through foreclosure or by deed in lieu of foreclosure, as
described in Section 2.17.

          Repurchase Price: With respect to any Mortgage Loan, a price equal to
(i) the Stated Principal Balance of the Mortgage Loan plus (ii) interest on such
Stated Principal Balance at the Mortgage Interest Rate from the date on which
interest has last been paid and distributed to the Purchaser to the date of
repurchase, less amounts received, if any, plus amounts advanced, if any, by any
servicer, in respect of such repurchased Mortgage Loan.

          SAIF: The Savings Association Insurance Fund, or any successor
thereto.

          Servicing Advances: All customary, reasonable and necessary "out of
pocket" costs and expenses (including reasonable attorneys' fees and
disbursements) incurred in the performance by the Seller 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 the Mortgaged Property if the Mortgaged Property is acquired in satisfaction
of the Mortgage and (d) compliance with the obligations under Section 2.08.

          Servicing Fee: With respect to each Mortgage Loan, an amount equal to
$8.00 per month. Such fee shall be payable monthly and shall be pro rated for
any portion of a month during which the Mortgage Loans is serviced pursuant to
this Agreement. The obligation of the Purchaser 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


                                      -7-


extent permitted by Section 2.05) of such Monthly Payment collected by the
Seller, or as otherwise provided under Section 2.05.

          Servicing File: With respect to each Mortgage Loan, the file retained
by the Seller consisting of originals of all documents in the Mortgage File
which are not delivered to the Purchaser or the Purchaser's designee, and copies
of the Mortgage Loan Documents listed on Exhibit 7 attached hereto.

          Servicing Officer: Any officer of the Seller 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 Seller to the
Purchaser upon request, as such list may from time to time be amended.

          Servicing Rights: Any and all of the following: (a) any and all rights
to service the Mortgage Loans; (b) any payments to or monies received by the
Seller for servicing the Mortgage Loans; (c) any late fees, penalties or similar
payments with respect to the Mortgage Loans; (d) all agreements or documents
creating, defining or evidencing any such servicing rights to the extent they
relate to such servicing rights and all rights of the Seller thereunder; (e)
Escrow Payments or other similar payments with respect to the Mortgage Loans and
any amounts actually collected by the Seller with respect thereto; (f) all
accounts and other rights to payment related to any of the property described in
this paragraph; and (g) any and all documents, files, records, servicing files,
servicing documents, servicing records, data tapes, computer records, or other
information pertaining to the Mortgage Loans or pertaining to the past, present
or prospective servicing of the Mortgage Loans.

          Stated Principal Balance: As to each Mortgage Loan, (i) the principal
balance of the Mortgage Loan at the Cut-off Date after giving effect to payments
of principal received on or before such date, minus (ii) all amounts previously
distributed to the Purchaser with respect to the related Mortgage Loan
representing payments or recoveries of principal or advances in lieu thereof.

          Terms Letter: With respect to each purchase of a Mortgage Loan
Package, that certain Purchase Price and Terms Letter setting forth the general
terms and conditions of such transaction and identifying the Mortgage Loans to
be purchased thereunder, by and between the Seller, or its designee, and the
Purchaser.

          Transfer Date: The date on which the Purchaser, or its designee, shall
receive the transfer of servicing responsibilities and begin to perform the
servicing of the Mortgage Loans, and the related Seller shall cease all
servicing responsibilities. Such Transfer Date shall occur on the date set forth
in the related Terms Letter.

                                   ARTICLE II

                                    SERVICING

          Section 2.01 Seller to Act as Servicer. With respect to the Mortgage
Loans in each Mortgage Loan Package purchased by the Purchaser, from and after
the related Closing Date, the Seller, as an independent contractor, shall, from
time to time, service and administer


                                      -8-


the Mortgage Loans, during the related Interim Period, by execution and delivery
of (a) the related Acknowledgement Agreement, in the form attached hereto as
Exhibit 9, and (b) the related Assignment and Assumption Agreement, in the form
attached hereto as Exhibit 10, and shall have full power and authority, acting
alone, to do any and all things in connection with such servicing and
administration which the Seller may deem necessary or desirable, consistent with
the terms of this Agreement and with Accepted Servicing Practices.

          Consistent with the terms of this Agreement, the Seller 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 Seller's reasonable and prudent determination such waiver,
modification, postponement or indulgence is not materially adverse to the
Purchaser, provided, however, that unless the Seller has obtained the prior
written consent of the Purchaser, the Seller shall not permit any modification
with respect to any Mortgage Loan that would change the Mortgage Interest Rate,
defer or forgive the payment of principal or interest, reduce or increase the
outstanding principal balance (except for actual payments of principal) or
change the final maturity date on such Mortgage Loan. In the event of any such
modification which permits the deferral of interest or principal payments on any
Mortgage Loan, the Seller shall, on the Business Day immediately preceding the
Remittance Date in any month in which any such principal or interest payment has
been deferred, deposit in the Custodial Account from its own funds, in
accordance with Section 2.04, the difference between (a) such month's principal
and one month's interest at the Mortgage Loan Remittance Rate on the unpaid
principal balance of such Mortgage Loan and (b) the amount paid by the
Mortgagor. The Seller shall be entitled to reimbursement for such advances to
the same extent as for all other advances made pursuant to Section 2.05 or upon
the related Transfer Date. Without limiting the generality of the foregoing, the
Seller shall continue, and is hereby authorized and empowered, to execute and
deliver on behalf of itself and the Purchaser, 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 Properties. If reasonably required by the Seller, the Purchaser
shall furnish the Seller with any powers of attorney and other documents
necessary or appropriate to enable the Seller to carry out its servicing and
administrative duties under this Agreement.

          In servicing and administering the Mortgage Loans, the Seller 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
Servicing Practices where such practices do not conflict with the requirements
of this Agreement, and the Purchaser's reliance on the Seller.

          The Seller shall keep at its servicing office books and records in
which, subject to such reasonable regulations as it may prescribe, the Seller
shall note transfers of Mortgage Loans. No transfer of a Mortgage Loan may be
made unless such transfer is in compliance with the terms hereof. For the
purposes of this Agreement, the Seller shall be under no obligation to deal with
any Person with respect to this Agreement or the Mortgage Loans unless the
Seller has been notified of such transfers as provided in this Section 2.01. The
Purchaser may sell and transfer, in whole or in part, the Mortgage Loans,
provided that no such sale and transfer shall be binding upon Seller unless such
transferee shall agree in writing in the form of the Assignment and Assumption
Agreement attached hereto Exhibit 8, to be bound by the terms of this


                                      -9-


Agreement, and an executed copy of the same shall have been delivered to the
Seller. Upon receipt thereof, the Seller shall mark its books and records to
reflect the ownership of the Mortgage Loans by such assignee, and the previous
Purchaser shall be released from its obligations hereunder. This Agreement shall
be binding upon and inure to the benefit of the Purchaser and Seller and their
permitted successors, assignees and designees.

          Section 2.02 Liquidation of Mortgage Loans. In the event that any
payment due under any Mortgage Loan and not postponed pursuant to Section 2.01
is not paid when the same becomes due and payable, or in the event the Mortgagor
fails to perform any other covenant or obligation under the Mortgage Loan and
such failure continues beyond any applicable grace period, the Seller shall take
such action as (1) the Seller would take under similar circumstances with
respect to a similar mortgage loan held for its own account for investment, (2)
shall be consistent with Accepted Servicing Practices, (3) the Seller shall
determine prudently to be in the best interest of Purchaser, and (4) is
consistent with any related PMI Policy. In the event that any payment due under
any Mortgage Loan is not postponed pursuant to Section 2.01 and remains
delinquent for a period of 90 days or any other default continues for a period
of 90 days beyond the expiration of any grace or cure period, the Seller shall
commence foreclosure proceedings, provided that, prior to commencing foreclosure
proceedings, the Seller shall notify the Purchaser in writing of the Seller's
intention to do so, and the Seller shall not commence foreclosure proceedings if
the Purchaser objects to such action within 10 Business Days of receiving such
notice. In such connection, the Seller shall from its own funds make all
necessary and proper Servicing Advances, provided, however, that the Seller
shall not be required to expend its own funds in connection with any foreclosure
or towards the restoration or preservation of any Mortgaged Property, unless it
shall determine (a) that such preservation, restoration and/or foreclosure will
increase the proceeds of liquidation of the Mortgage Loan to Purchaser after
reimbursement to itself for such expenses and (b) that such expenses will be
recoverable by it either through Liquidation Proceeds (respecting which it shall
have priority for purposes of withdrawals from the Custodial Account pursuant to
Section 2.05) or through Insurance Proceeds (respecting which it shall have
similar priority).

          Section 2.03 Collection of Mortgage Loan Payments. Continuously from
the date hereof until the related Transfer Date, the Seller shall proceed
diligently to collect all payments due under each of the Mortgage Loans when the
same shall become due and payable and shall take special care in ascertaining
and estimating Escrow Payments and all other charges that will become due and
payable with respect to the Mortgage Loans and each related Mortgaged Property,
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.

          Section 2.04 Establishment of and Deposits to Custodial Account. The
Seller shall segregate and hold all funds collected and received pursuant to the
Mortgage Loans separate and apart from any of its own funds and general assets
and shall establish and maintain one or more Custodial Accounts, in the form of
time deposit or demand accounts, titled "First National Bank of Nevada in trust
for Purchasers of Residential Fixed Rate Mortgage Loans, Group No. 2000-1 and
various Mortgagors". The Custodial Account shall be established with a Qualified
Depository acceptable to the Purchaser. Any funds deposited in the Custodial
Account shall at all times be fully insured to the full extent permitted under
applicable law. Funds deposited in the Custodial Account may be drawn on by the
Seller in accordance with


                                      -10-


Section 2.05. The creation of any Custodial Account shall be evidenced by a
certification in the form of Exhibit 2 hereto, in the case of an account
established with the Seller, or by a letter agreement in the form of Exhibit 3
hereto, in the case of an account held by a depository other than the Seller. A
copy of such certification or letter agreement shall be furnished to the
Purchaser and, upon request, to any subsequent Purchaser.

          The Seller shall deposit in the Custodial Account on a daily basis,
and retain therein, the following collections received by the Seller after the
related Cut-off Date:

          (i) all payments on account of principal on the Mortgage Loans;

          (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 Section 2.11 (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 Section 2.15), Section 2.12
     and Section 2.16;

          (v) all Condemnation Proceeds which are not applied to the restoration
     or repair of the Mortgaged Property or released to the Mortgagor in
     accordance with Section 2.15;

          (vi) any amount required to be deposited in the Custodial Account
     pursuant to Section 2.01, 2.10, 2.17, 4.01 or 4.02;

          (vii) any amounts payable in connection with the repurchase of any
     Mortgage Loan pursuant to Section 8 of the Purchase Agreement; and

          (viii) any amounts required to be deposited by the Seller pursuant to
     Section 2.12 in connection with the deductible clause in any blanket hazard
     insurance policy.

          The foregoing requirements for deposit into the Custodial Account
shall be exclusive, it being understood and agreed that, without limiting the
generality of the foregoing, payments in the nature of assumption fees, to the
extent permitted by Section 4.01, need not be deposited by the Seller into the
Custodial Account. Any interest paid on funds deposited in the Custodial Account
by the depository institution shall accrue to the benefit of the Seller and the
Seller shall be entitled to retain and withdraw such interest from the Custodial
Account pursuant to Section 2.05.

          Section 2.05 Permitted Withdrawals From Custodial Account. The Seller
shall, from time to time, withdraw funds from the Custodial Account for the
following purposes:

          (i) to make payments to the Purchaser in the amounts and in the manner
     provided for in Section 3.01;

                                      -11-


          (ii) with respect to each LPMI Loan, in the amount of the LPMI Fee, to
     make payments with respect to premiums for LPMI Policies;

          (iii) to reimburse itself for unreimbursed Servicing Advances, any
     unpaid Servicing Fees and for unreimbursed advances of Seller funds made
     pursuant to Section 2.17, the Seller'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 and
     such other amounts as may be collected by the Seller from the Mortgagor or
     otherwise relating to the Mortgage Loan, it being understood that, in the
     case of any such reimbursement, the Seller's right thereto shall be prior
     to the rights of the Purchaser except that, where the Seller is required to
     repurchase a Mortgage Loan pursuant to Section 4.02 of this Agreement, the
     Seller's right to such reimbursement shall be subsequent to the payment to
     the Purchaser of the Repurchase Price pursuant to such sections and all
     other amounts required to be paid to the Purchaser with respect to such
     Mortgage Loan;

          (iv) to pay itself interest on funds deposited in the Custodial
     Account;

          (v) to reimburse itself for expenses incurred and reimbursable to it
     pursuant to Section 4.03;

          (vi) to clear and terminate the Custodial Account upon the termination
     of this Agreement; and

          (vii) to withdraw funds deposited in error.

          In the event that the Custodial Account is interest bearing, on each
Remittance Date, the Seller shall withdraw all funds from the Custodial Account
except for those amounts which, pursuant to Section 3.01, the Seller is not
obligated to remit on such Remittance Date. The Seller may use such withdrawn
funds only for the purposes described in this Section 2.05.

          Section 2.06 Establishment of and Deposits to Escrow Account. The
Seller shall segregate and hold all funds collected and received pursuant to a
Mortgage Loan constituting Escrow Payments separate and apart from any of its
own funds and general assets and shall establish and maintain one or more Escrow
Accounts, in the form of time deposit or demand accounts, titled, "First
National Bank of Nevada in trust for Purchasers of Residential Fixed Rate
Mortgage Loans, Group No. 2000-1 and various Mortgagors". The Escrow Accounts
shall be established with a Qualified Depository, in a manner which shall
provide maximum available insurance thereunder. Funds deposited in the Escrow
Account may be drawn on by the Seller in accordance with Section 2.07. The
creation of any Escrow Account shall be evidenced by a certification in the form
of Exhibit 4 hereto, in the case of an account established with the Seller, or
by a letter agreement in the form of Exhibit 5 hereto, in the case of an account
held by a depository other than the Seller. A copy of such certification shall
be furnished to the Purchaser and, upon request, to any subsequent Purchaser.

          The Seller shall deposit in the Escrow Account or Accounts on a daily
basis, and retain therein:

                                      -12-


          (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;

          (ii) all amounts representing Insurance Proceeds or Condemnation
     Proceeds which are to be applied to the restoration or repair of any
     Mortgaged Property.

          The Seller shall make withdrawals from the Escrow Account only to
effect such payments as are required under this Agreement, as set forth in
Section 2.07. The Seller shall be entitled to retain any interest paid on funds
deposited in the Escrow Account by the depository institution, other than
interest on escrowed funds required by law to be paid to the Mortgagor. To the
extent required by law, the Seller shall pay interest on escrowed funds to the
Mortgagor notwithstanding that the Escrow Account may be non-interest bearing or
that interest paid thereon is insufficient for such purposes.

          Section 2.07 Permitted Withdrawals From Escrow Account. Withdrawals
from the Escrow Account or Accounts may be made by the Seller only:

          (i) to effect timely payments of ground rents, taxes, assessments,
     water rates, mortgage insurance premiums, condominium charges, fire and
     hazard insurance premiums or other items constituting Escrow Payments for
     the related Mortgage;

          (ii) to reimburse the Seller for any Servicing Advance made by the
     Seller pursuant to Section 2.08 with respect to a related Mortgage Loan,
     but only from amounts received on the related Mortgage Loan which represent
     late collections of Escrow Payments thereunder;

          (iii) to refund to any Mortgagor any funds found to be in excess of
     the amounts required under the terms of the related Mortgage Loan;

          (iv) for transfer to the Custodial Account and application to reduce
     the principal balance of the Mortgage Loan in accordance with the terms of
     the related Mortgage and Mortgage Note;

          (v) for application to restoration or repair of the Mortgaged Property
     in accordance with the procedures outlined in Section 2.15;

          (vi) to pay to the Seller, or any Mortgagor to the extent required by
     law, any interest paid on the funds deposited in the Escrow Account;

          (vii) to clear and terminate the Escrow Account on the termination of
     this Agreement; and

          (viii) to withdraw funds deposited in error. Section

          2.08 Payment of Taxes, Insurance and Other Charges. With respect to
each Mortgage Loan, the Seller shall maintain accurate records reflecting the
status of ground rents, taxes, assessments, water rates, sewer rents, and other
charges which are or may become a


                                      -13-


lien upon the Mortgaged Property and the status of PMI 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, employing
for such purpose deposits of the Mortgagor in the Escrow Account which shall
have been estimated and accumulated by the Seller in amounts sufficient for such
purposes, as allowed under the terms of the Mortgage. To the extent that a
Mortgage does not provide for Escrow Payments, the Seller shall determine that
any such payments are made by the Mortgagor at the time they first become due.
The Seller assumes full responsibility for the timely payment of all such bills
and shall effect timely payment of all such charges irrespective of each
Mortgagor's faithful performance in the payment of same or the making of the
Escrow Payments, and the Seller shall make advances from its own funds to effect
such payments.

          Section 2.09 PMI and LPMI Obligations. The Seller shall comply with
all provisions of applicable state and federal law relating to the cancellation
of, or collection of premiums with respect to, PMI Policies and LPMI Policies,
including, but not limited to, the provisions of the Homeowners Protection Act
of 1998, and all regulations promulgated thereunder, as amended from time to
time. The Seller shall be obligated to make premium payments with respect to (a)
LPMI Policies, and (b) if the Mortgagor fails to pay any PMI Policy premium,
such PMI Policy.

          Section 2.10 Protection of Accounts. The Seller may transfer the
Custodial Account or the Escrow Account to a different Qualified Depository from
time to time. Such transfer shall be made only upon obtaining the consent of the
Purchaser, which consent shall not be withheld unreasonably.

          The Seller shall bear any expenses, losses or damages sustained by the
Purchaser because the Custodial Account and/or the Escrow Account are not demand
deposit accounts.

          Amounts on deposit in the Custodial Account and the Escrow Account may
at the option of the Seller be invested in Eligible Investments; provided that
in the event that amounts on deposit in the Custodial Account or the Escrow
Account exceed the amount fully insured by the FDIC (the "Insured Amount") the
Seller shall be obligated to invest the excess amount over the Insured Amount in
Eligible Investments on the same Business Day as such excess amount becomes
present in the Custodial Account or the Escrow Account. Any such Eligible
Investment shall mature no later than the Determination Date next following the
date of such Eligible Investment, provided, however, that if such Eligible
Investment is an obligation of a Qualified Depository (other than the Seller)
that maintains the Custodial Account or the Escrow Account, then such Eligible
Investment may mature on such Remittance Date. Any such Eligible Investment
shall be made in the name of the Seller in trust for the benefit of the
Purchaser. All income on or gain realized from any such Eligible Investment
shall be for the benefit of the Seller and may be withdrawn at any time by the
Seller. Any losses incurred in respect of any such investment shall be deposited
in the Custodial Account or the Escrow Account, by the Seller out of its own
funds immediately as realized.

          Section 2.11 Maintenance of Hazard Insurance. The Seller shall cause
to be maintained for each Mortgage Loan, hazard insurance such that all
buildings upon the Mortgaged Property are insured by a generally acceptable
insurer rated A:VI or better in the


                                      -14-


current Best's Key Rating Guide ("Best's") against loss by fire, hazards of
extended coverage and such other hazards as are customary in the area where the
Mortgaged Property is located, in an amount which is at least equal to the
lesser of (i) the maximum insurable value of the improvements securing such
Mortgage Loan and (ii) the greater of (a) the outstanding principal balance of
the Mortgage Loan and (b) an amount such that the proceeds thereof shall be
sufficient to prevent the Mortgagor or the loss payee from becoming a
co-insurer.

          If upon origination of the Mortgage Loan, the related Mortgaged
Property was located in an area identified in the Federal Register by the Flood
Emergency Management Agency as having special flood hazards (and such flood
insurance has been made available) a flood insurance policy meeting the
requirements of the current guidelines of the Federal Insurance Administration
is in effect with a generally acceptable insurance carrier rated A:VI or better
in Best's in an amount representing coverage equal to the lesser of (i) the
minimum amount required, under the terms of coverage, to compensate for any
damage or loss on a replacement cost basis (or the unpaid balance of the
mortgage if replacement cost coverage is not available for the type of building
insured) and (ii) the maximum amount of insurance which is available under the
Flood Disaster Protection Act of 1973, as amended. If at any time during the
term of the Mortgage Loan, the Seller determines in accordance with applicable
law and pursuant to the Fannie Mae Guides that a Mortgaged Property is located
in a special flood hazard area and is not covered by flood insurance or is
covered in an amount less than the amount required by the Flood Disaster
Protection Act of 1973, as amended, the Seller shall notify the related
Mortgagor that the Mortgagor must obtain such flood insurance coverage, and if
said Mortgagor fails to obtain the required flood insurance coverage within
forty-five (45) days after such notification, the Seller shall immediately force
place the required flood insurance on the Mortgagor's behalf.

          If a Mortgage is secured by a unit in a condominium project, the
Seller shall verify that the coverage required of the owner's association,
including hazard, flood, liability, and fidelity coverage, is being maintained
in accordance with then current Fannie Mae requirements, and secure from the
owner's association its agreement to notify the Seller promptly of any change in
the insurance coverage or of any condemnation or casualty loss that may have a
material effect on the value of the Mortgaged Property as security.

          The Seller shall cause to be maintained on each Mortgaged Property
earthquake or such other or additional insurance as may be required pursuant to
such applicable laws and regulations as shall at any time be in force and as
shall require such additional insurance, or pursuant to the requirements of any
private mortgage guaranty insurer, or as may be required to conform with
Accepted Servicing Practices.

          In the event that any Purchaser or the Seller shall determine that the
Mortgaged Property should be insured against loss or damage by hazards and risks
not covered by the insurance required to be maintained by the Mortgagor pursuant
to the terms of the Mortgage, the Seller shall, in accordance with Accepted
Servicing Practices, provide notice of such to the Mortgagor.

          All policies required hereunder shall name the Seller as loss payee
and shall be endorsed with standard or New York mortgagee clauses, without
contribution, which shall


                                      -15-


provide for at least 30 days prior written notice of any cancellation, reduction
in amount or material change in coverage.

          The Seller shall not interfere with the Mortgagor's freedom of choice
in selecting either his insurance carrier or agent, provided, however, that the
Seller shall not accept any such insurance policies from insurance companies
unless such companies are rated A:VI or better in Best's and are licensed to do
business in the jurisdiction in which the Mortgaged Property is located. The
Seller shall determine that such policies provide sufficient risk coverage and
amounts, that they insure the property owner, and that they properly describe
the property address. The Seller shall furnish to the Mortgagor a formal notice
of expiration of any such insurance in sufficient time for the Mortgagor to
arrange for renewal coverage by the expiration date.

          Pursuant to Section 2.04, any amounts collected by the Seller 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, or
property acquired in liquidation of the Mortgage Loan, or to be released to the
Mortgagor, in accordance with the Seller's normal servicing procedures as
specified in Section 2.15) shall be deposited in the Custodial Account subject
to withdrawal pursuant to Section 2.05.

          Section 2.12 Maintenance of Mortgage Impairment Insurance. In the
event that the Seller shall obtain and maintain a blanket policy insuring
against losses arising from fire and hazards covered under extended coverage on
all of the Mortgage Loans, then, to the extent such policy provides coverage in
an amount equal to the amount required pursuant to Section 2.11 and otherwise
complies with all other requirements of Section 2.11, it shall conclusively be
deemed to have satisfied its obligations as set forth in Section 2.11. Any
amounts collected by the Seller under any such policy relating to a Mortgage
Loan shall be deposited in the Custodial Account subject to withdrawal pursuant
to Section 2.05. Such policy may contain a deductible clause, in which case, in
the event that there shall not have been maintained on the related Mortgaged
Property a policy complying with Section 2.11, and there shall have been a loss
which would have been covered by such policy, the Seller shall deposit in the
Custodial Account at the time of such loss the amount not otherwise payable
under the blanket policy because of such deductible clause, such amount to be
deposited from the Seller's funds, without reimbursement therefor. Upon request
of the Purchaser, the Seller shall cause to be delivered to the Purchaser a
certified true copy of such policy and a statement from the insurer thereunder
that such policy shall in no event be terminated or materially modified without
30 days' prior written notice to the Purchaser.

          Section 2.13 Maintenance of Fidelity Bond and Errors and Omissions
Insurance. The Seller shall maintain with responsible companies, at its own
expense, a blanket Fidelity Bond and an Errors and Omissions Insurance Policy,
with broad coverage on all officers, employees or other persons acting in any
capacity requiring such persons to handle funds, money, documents or papers
relating to the Mortgage Loans ("Seller Employees"). Any such Fidelity Bond and
Errors and Omissions Insurance Policy shall be in the form of the Mortgage
Banker's Blanket Bond and shall protect and insure the Seller against losses,
including forgery, theft, embezzlement, fraud, errors and omissions and
negligent acts of such Seller Employees. Such Fidelity Bond and Errors and
Omissions Insurance Policy also shall protect and insure the


                                      -16-


Seller against losses in connection with the release or satisfaction of a
Mortgage Loan without having obtained payment in full of the indebtedness
secured thereby. No provision of this Section 2.13 requiring such Fidelity Bond
and Errors and Omissions Insurance Policy shall diminish or relieve the Seller
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 Guides or by
Freddie Mac in the Freddie Mac Sellers' & Servicers' Guide. Upon the request of
the Purchaser, the Seller shall cause to be delivered to the Purchaser a
certified true copy of such fidelity bond and insurance policy and a statement
from the surety and the insurer that such fidelity bond and insurance policy
shall in no event be terminated or materially modified without 30 days' prior
written notice to the Purchaser.

          Section 2.14 Inspections. The Seller shall inspect the Mortgaged
Property as often as deemed necessary by the Seller to assure itself that the
value of the Mortgaged Property is being preserved. In addition, if any Mortgage
Loan is more than 60 days delinquent, the Seller immediately shall inspect the
Mortgaged Property and shall conduct subsequent inspections in accordance with
Accepted Servicing Practices or as may be required by the primary mortgage
guaranty insurer. The Seller shall keep a written report of each such
inspection. Section

          2.15 Restoration of Mortgaged Property. The Seller need not obtain the
approval of the Purchaser 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 Accepted
Servicing Practices. At a minimum, the Seller shall comply with the following
conditions in connection with any such release of Insurance Proceeds or
Condemnation Proceeds:

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

          (ii) the Seller 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 Seller shall verify that the Mortgage Loan is not in
     default; and

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

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

          Section 2.16 Maintenance of PMI Policy and/or LPMI Policy; Claims.
With respect to each Mortgage Loan with a LTV in excess of 80%, the Seller
shall:

          (i) with respect to Mortgage Loans which are not LPMI Loans, without
     any cost to the Owner, maintain or cause the Mortgagor to maintain in full
     force and effect a PMI Policy insuring that portion of the Mortgage Loan in
     excess of 75% (or such other

                                      -17-


     percentage as stated in the related Acknowledgment Agreement) of value, and
     shall pay or shall cause the Mortgagor to pay the premium thereon on a
     timely basis, until the LTV of such Mortgage Loan is reduced to 80%. In the
     event that such PMI Policy shall be terminated, the Seller shall obtain
     from another Qualified Insurer a comparable replacement policy, with a
     total coverage equal to the remaining coverage of such terminated PMI
     Policy, at substantially the same fee level. If the insurer shall cease to
     be a Qualified Insurer, the Seller 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 Seller shall in no
     event have any responsibility or liability for any failure to recover under
     the PMI Policy for such reason. If the Seller determines that recoveries
     are so jeopardized, it shall notify the Purchaser and the Mortgagor, if
     required, and obtain from another Qualified Insurer a replacement insurance
     policy. The Seller 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 Seller would have been covered thereunder. In connection
     with any assumption or substitution agreement entered into or to be entered
     into pursuant to Section 4.01, the Seller 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
     Seller shall obtain a replacement PMI Policy as provided above.

          (ii) with respect to LPMI Loans, maintain in full force and effect an
     LPMI Policy insuring that portion of the Mortgage Loan in excess of 75% (or
     such other percentage as stated in the related Acknowledgment Agreement) of
     value, and from time to time, withdraw the LPMI Fee with respect to such
     LPMI Loan from the Custodial Account in order to pay the premium thereon on
     a timely basis, until the LTV of such Mortgage Loan is reduced to 80%. In
     the event that the interest payments made with respect to any LPMI Loan are
     less than the LPMI Fee, the Seller shall advance from its own funds the
     amount of any such shortfall in the LPMI Fee, in payment of the premium on
     the related LPMI Policy. Any such advance shall be a Servicing Advance
     subject to reimbursement pursuant to the provisions on Section 2.05. In the
     event that such LPMI Policy shall be terminated, the Seller shall obtain
     from another Qualified Insurer a comparable replacement policy, with a
     total coverage equal to the remaining coverage of such terminated LPMI
     Policy, at substantially the same fee level. If the insurer shall cease to
     be a Qualified Insurer, the Seller shall determine whether recoveries under
     the LPMI Policy are jeopardized for reasons related to the financial
     condition of such insurer, it being understood that the Seller shall in no
     event have any responsibility or liability for any failure to recover under
     the LPMI Policy for such reason. If the Seller determines that recoveries
     are so jeopardized, it shall notify the Purchaser and the Mortgagor, if
     required, and obtain from another Qualified Insurer a replacement insurance
     policy. The Seller shall not take any action which would result in
     noncoverage under any applicable LPMI Policy of any loss which, but for the
     actions of the Seller would have been covered thereunder. In connection
     with any assumption or substitution agreement entered into or to be entered
     into pursuant to Section 4.01, the Seller shall promptly notify the insurer
     under the related LPMI Policy, if any, of such assumption or substitution
     of liability in accordance with the terms of such LPMI Policy and shall
     take all actions which may be


                                      -18-


     required by such insurer as a condition to the continuation of coverage
     under such PMI Policy. If such LPMI Policy is terminated as a result of
     such assumption or substitution of liability, the Seller shall obtain a
     replacement LPMI Policy as provided above.

          In connection with its activities as servicer, the Seller agrees to
prepare and present, on behalf of itself and the Owner, claims to the insurer
under any PMI Policy or LPMI Policy in a timely fashion in accordance with the
terms of such PMI Policy or LPMI Policy and, in this regard, to take such action
as shall be necessary to permit recovery under any PMI Policy or LPMI Policy
respecting a defaulted Mortgage Loan. Pursuant to Section 3.04, any amounts
collected by the Seller under any PMI Policy or LPMI Policy shall be deposited
in the Custodial Account, subject to withdrawal pursuant to Section 2.05.

          Section 2.17 Title, Management and Disposition of REO Property. In the
event that title to any Mortgaged Property is acquired in foreclosure or by deed
in lieu of foreclosure, the deed or certificate of sale shall be taken in the
name of the Purchaser, or in the event the Purchaser 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 Seller from any 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 Purchaser shall acknowledge in writing
that such title is being held as nominee for the Purchaser.

          The Seller shall manage, conserve, protect and operate each REO
Property for the Purchaser solely for the purpose of its prompt disposition and
sale. The Seller, either itself or through an agent selected by the Seller,
shall manage, conserve, protect and operate the REO Property 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 Seller shall attempt to sell the
same (and may temporarily rent the same for a period not greater than one year,
except as otherwise provided below) on such terms and conditions as the Seller
deems to be in the best interest of the Purchaser.

          The Seller shall use its best efforts to dispose of the REO Property
as soon as possible and shall sell such REO Property in any event within one
year after title has been taken to such REO Property, unless the Seller
determines, and gives an appropriate notice to the Purchaser to such effect,
that a longer period is necessary for the orderly liquidation of such REO
Property. If a period longer than one year is permitted under the foregoing
sentence and is necessary to sell any REO Property, (i) the Seller shall report
monthly to the Purchaser as to the progress being made in selling such REO
Property and (ii) if, with the written consent of the Purchaser, a purchase
money mortgage is taken in connection with such sale, such purchase money
mortgage shall name the Seller as mortgagee, and such purchase money mortgage
shall not be held pursuant to this Agreement, but instead a separate
participation agreement among the Seller and Purchaser shall be entered into
with respect to such purchase money mortgage.

          The Seller shall also maintain on each 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


                                      -19-


required and available under the Flood Disaster Protection Act of 1973, as
amended, flood insurance in the amount required above.

          The disposition of REO Property shall be carried out by the Seller at
such price, and upon such terms and conditions, as the Seller deems to be in the
best interests of the Purchaser. The proceeds of sale of the REO Property shall
be promptly deposited in the Custodial Account. As soon as practical thereafter
the expenses of such sale shall be paid and the Seller shall reimburse itself
for any related unreimbursed Servicing Advances, unpaid Servicing Fees and
unreimbursed advances made pursuant to this Section, and on the Remittance Date
immediately following the Principal Prepayment Period in which such sale
proceeds are received the net cash proceeds of such sale remaining in the
Custodial Account shall be distributed to the Purchaser.

          With respect to each REO Property, the Seller shall hold all funds
collected and received in connection with the operation of the REO Property in
the Custodial Account. The Seller shall cause to be deposited on a daily basis
upon the receipt thereof in each Custodial Account all revenues received with
respect to the conservation and disposition of the related REO Property.

          Notwithstanding the foregoing, at any time and from time to time, the
Purchaser may at its election terminate this Agreement with respect to one or
more REO Properties as provided by Section 6.03(c).

          Section 2.18 Permitted Withdrawals with respect to REO Property. The
Seller shall withdraw REO funds on deposit in the Custodial Account with respect
to each related REO Property necessary for the proper operation, management and
maintenance of the REO Property, including the cost of maintaining any hazard
insurance pursuant to Section 2.11 and the fees of any managing agent acting on
behalf of the Seller. The Seller shall make monthly distributions on each
Remittance Date to the Purchaser of the net cash flow from the REO Property
(which shall equal the revenues from such REO Property net of the expenses
described in Section 2.17 and of any reserves reasonably required from time to
time to be maintained to satisfy anticipated liabilities for such expenses).

          Section 2.19 Real Estate Owned Reports. Together with the statement
furnished pursuant to Section 2.20, the Seller shall furnish to the Purchaser on
or before the 15th day of each month a statement with respect to any REO
Property covering the operation of such REO Property for the previous month and
the Seller's efforts in connection with the sale of such REO Property and any
rental of such REO Property incidental to the sale thereof for the previous
month. That statement shall be accompanied by such other information as the
Purchaser shall reasonably request.

          Section 2.20 Liquidation Reports. Upon the foreclosure sale of any
Mortgaged Property or the acquisition thereof by the Purchaser pursuant to a
deed in lieu of foreclosure, the Seller shall submit to the Purchaser a
liquidation report with respect to such Mortgaged Property.



                                      -20-


          Section 2.21 Reports of Foreclosures and Abandonments of Mortgaged
Property. Following the foreclosure sale or abandonment of any Mortgaged
Property, the Seller shall report such foreclosure or abandonment as required
pursuant to Section 6050J of the Code.


                                   ARTICLE III

                              PAYMENTS TO PURCHASER

          Section 3.01 Remittances. On each Remittance Date the Seller shall
remit by wire transfer of immediately available funds to the Purchaser (a) all
amounts deposited in the Custodial Account as of the close of business on the
Determination Date (net of charges against or withdrawals from the Custodial
Account pursuant to Section 2.05), plus (b) all amounts, if any, which the
Seller is obligated to distribute pursuant to Section 2.03.

          With respect to any remittance received by the Purchaser after the
second Business Day following the Business Day on which such payment was due,
the Seller shall pay to the Purchaser interest on any such late payment at an
annual rate equal to the Prime Rate, adjusted as of the date of each change,
plus three percentage points, but in no event greater than the maximum amount
permitted by applicable law. Such interest shall be deposited in the Custodial
Account by the Seller 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 the distribution payable on the next
succeeding Remittance Date. The payment by the Seller of any such interest shall
not be deemed an extension of time for payment or a waiver of any Event of
Default by the Seller.

          Section 3.02 Statements to Purchaser. Not later than the Determination
Date of each month, the Seller shall furnish to the Purchaser a Monthly
Remittance Advice, with a trial balance report attached thereto, in the form of
Exhibit 1 annexed hereto in hard copy and electronic medium mutually acceptable
to the parties as to the preceding remittance and the period ending on the
preceding Determination Date.

          In addition, not more than 60 days after the end of each calendar
year, the Seller shall furnish to each Person who was a Purchaser at any time
during such calendar year an annual statement in accordance with the
requirements of applicable federal income tax law as to the aggregate of
remittances for the applicable portion of such year.

          Such obligation of the Seller shall be deemed to have been satisfied
to the extent that substantially comparable information shall be provided by the
Seller pursuant to any requirements of the Internal Revenue Code as from time to
time are in force.

          The Seller shall prepare and file any and all tax returns, information
statements or other filings required to be delivered to any governmental taxing
authority or to the Purchaser pursuant to any applicable law with respect to the
Mortgage Loans and the transactions contemplated hereby. In addition, the Seller
shall provide the Purchaser with such information concerning the Mortgage Loans
as is necessary for the Purchaser to prepare its federal income tax return as
the Purchaser may reasonably request from time to time.


                                      -21-


                                   ARTICLE IV

                          GENERAL SERVICING PROCEDURES

          Section 4.01 Transfers of Mortgaged Property. The Seller shall use its
best efforts to enforce any "due-on-sale" provision contained in any Mortgage or
Mortgage Note and to deny assumption by the person to whom the Mortgaged
Property has been or is about to be sold whether by absolute conveyance or by
contract of sale, and whether or not the Mortgagor remains liable on the
Mortgage and the Mortgage Note. When the Mortgaged Property has been conveyed by
the Mortgagor, the Seller shall, to the extent it has knowledge of such
conveyance, exercise its rights to accelerate the maturity of such Mortgage Loan
under the "due-on-sale" clause applicable thereto, provided, however, that the
Seller shall not exercise such rights if prohibited by law from doing so or if
the exercise of such rights would impair or threaten to impair any recovery
under the related PMI Policy or LPMI Policy, if any.

          If the Seller reasonably believes it is unable under applicable law to
enforce such "due-on-sale" clause, the Seller shall enter into (i) an assumption
and modification agreement with the person to whom such property has been
conveyed, pursuant to which such person becomes liable under the Mortgage Note
and the original Mortgagor remains liable thereon or (ii) in the event the
Seller is unable under applicable law to require that the original Mortgagor
remain liable under the Mortgage Note and the Seller has the prior consent of
the primary mortgage guaranty insurer, a substitution of liability agreement
with the purchaser of the Mortgaged Property pursuant to which the original
Mortgagor is released from liability and the purchaser of the Mortgaged Property
is substituted as Mortgagor and becomes liable under the Mortgage Note. If an
assumption fee is collected by the Seller for entering into an assumption
agreement, a portion of such fee, up to an amount equal to one-half of one
percent (0.5%) of the outstanding principal balance of the related Mortgage
Loan, will be retained by the Seller as additional servicing compensation, and
any portion thereof in excess of one-half of one percent (0.5%) shall be
deposited in the Custodial Account for the benefit of the Purchaser. In
connection with any such assumption, neither the Mortgage Interest Rate borne by
the related Mortgage Note, the term of the Mortgage Loan nor the outstanding
principal amount of the Mortgage Loan shall be changed.

          To the extent that any Mortgage Loan is assumable, the Seller shall
inquire diligently into the creditworthiness of the proposed transferee, and
shall use the underwriting criteria for approving the credit of the proposed
transferee which are used by the Seller with respect to underwriting mortgage
loans of the same type as the Mortgage Loans. If the credit of the proposed
transferee does not meet such underwriting criteria, the Seller diligently
shall, to the extent permitted by the Mortgage or the Mortgage Note and by
applicable law, accelerate the maturity of the Mortgage Loan.

          Section 4.02 Satisfaction of Mortgages and Release of Mortgage Files.
Upon the payment in full of any Mortgage Loan, or the receipt by the Seller of a
notification that payment in full will be escrowed in a manner customary for
such purposes, the Seller shall notify the Purchaser in the Monthly Remittance
Advice as provided in Section 3.02, and may request the release of any Mortgage
Loan Documents from the Purchaser in accordance with this Section 4.02 hereof.



                                      -22-


          If the Seller satisfies or releases a Mortgage without first having
obtained payment in full of the indebtedness secured by the Mortgage or should
the Seller otherwise prejudice any rights the Purchaser may have under the
mortgage instruments, upon written demand of the Purchaser, the Seller shall
repurchase the related Mortgage Loan at the Repurchase Price by deposit thereof
in the Custodial Account within 2 Business Days of receipt of such demand by the
Purchaser. The Seller shall maintain the Fidelity Bond and Errors and Omissions
Insurance Policy as provided for in Section 2.13 insuring the Seller against any
loss it may sustain with respect to any Mortgage Loan not satisfied in
accordance with the procedures set forth herein.

          Section 4.03 Servicing Compensation. As consideration for servicing
the Mortgage Loans during the Interim Period, the Seller shall retain a
Servicing Fee with respect to each Mortgage Loan, which amount shall be prorated
for any portion of a month during which the Mortgage Loan is serviced by the
Seller pursuant to this Agreement. The obligation of the Purchaser 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 by Section 2.02) of such Monthly Payment
collected by the Seller, or as otherwise provided under Section 2.02.

          Additional servicing compensation in the form of assumption fees, to
the extent provided in Section 4.01 and Ancillary Income, shall be retained by
the Seller to the extent not required to be deposited in the Custodial Account.
The Seller shall be required to pay all expenses incurred by it in connection
with its servicing activities hereunder and shall not be entitled to
reimbursement thereof except as specifically provided for herein.

          Section 4.04 Annual Statement as to Compliance. The Seller shall
deliver to the Purchaser, on or before March 31 each year beginning March 31,
200_, and on the Transfer Date an Officer's Certificate, stating that (i) a
review of the activities of the Seller during the preceding calendar year and of
performance under this Agreement has been made under such officer's supervision,
and (ii) the Seller has complied fully with the provisions of Article II and
Article IV, and (iii) to the best of such officer's knowledge, based on such
review, the Seller has fulfilled all its obligations under this Agreement
throughout such year, or, if there has been a default in the fulfillment of any
such obligation, specifying each such default known to such officer and the
nature and status thereof and the action being taken by the Seller to cure such
default. Section

          4.05 Annual Independent Public Accountants' Servicing Report. On or
before March 31st of each year beginning March 31, 200_, the Seller, at its
expense, shall cause a firm of independent public accountants which is a member
of the American Institute of Certified Public Accountants to furnish a statement
to each Purchaser to the effect that such firm has examined certain documents
and records relating to the servicing of the Mortgage Loans and this Agreement
and that such firm is of the opinion that the provisions of Article II and
Article III have been complied with, and that, on the basis of such examination
conducted substantially in compliance with the Single Audit Program for Mortgage
Bankers, nothing has come to their attention which would indicate that such
servicing has not been conducted in compliance therewith, except for (i) such
exceptions as such firm shall believe to be immaterial, and (ii) such other
exceptions as shall be set forth in such statement.



                                      -23-


          Section 4.06 Right to Examine Seller Records. The Purchaser shall have
the right to examine and audit any and all of the books, records, or other
information of the Seller, whether held by the Seller or by another on its
behalf, with respect to or concerning this Agreement or the Mortgage Loans,
during business hours or at such other times as may be reasonable under
applicable circumstances, upon reasonable advance notice.


                                    ARTICLE V

                               SELLER TO COOPERATE

          Section 5.01 Provision of Information. During the term of this
Agreement, the Seller shall furnish to the Purchaser 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 Purchaser or the
purposes of this Agreement. All such reports or information shall be provided by
and in accordance with all reasonable instructions and directions which the
Purchaser may give.

          The Seller shall execute and deliver all such instruments and take all
such action as the Purchaser may reasonably request from time to time, in order
to effectuate the purposes and to carry out the terms of this Agreement.

          Section 5.02 Financial Statements; Servicing Facilities. In connection
with marketing the Mortgage Loans, the Purchaser may make available to a
prospective Purchaser a Consolidated Statement of Operations of the Seller for
the most recently completed three 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
Seller also shall make available any comparable interim statements to the extent
any such statements have been prepared by or on behalf of the Seller (and are
available upon request to members or stockholders of the Seller or to the public
at large). If it has not already done so, the Seller shall furnish promptly to
the Purchaser copies of the statement specified above.

          The Seller shall make available to the Purchaser or any prospective
Purchaser a knowledgeable financial or accounting officer for the purpose of
answering questions respecting recent developments affecting the Seller or the
financial statements of the Seller, and to permit any prospective Purchaser to
inspect the Seller's servicing facilities for the purpose of satisfying such
prospective Purchaser that the Seller have the ability to service the Mortgage
Loans as provided in this Agreement.


                                   ARTICLE VI

                                   TERMINATION

          Section 6.01 Agency Suspension. Should the Seller at any time during
the term of this Agreement have its right to service temporarily or permanently
suspended by Fannie Mae or Freddie Mac or otherwise cease to be an approved
seller/servicer of conventional residential mortgage loans for Fannie Mae or
Freddie Mac, then the Purchaser may immediately terminate


                                      -24-


this Agreement and accelerate performance of the provisions of the Purchase
Agreement to require immediate transfer of the Servicing Rights.

          Section 6.02 Damages. The Purchaser shall have the right at any time
to seek and recover from the Seller any damages or losses suffered by it as a
result of any failure by the Seller to observe or perform any duties,
obligations, covenants or agreements herein contained or contained in the
Purchase Agreement, or as a result of a party's failure to remain an approved
Fannie Mae mortgage servicer.

          Section 6.03 Termination Upon Transfer of Servicing.

          (a) Termination Procedures. This Agreement shall terminate with
respect to the Mortgage Loans or portion thereof transferred on the related
Transfer Date set forth in the related Terms Letter; provided that the Purchaser
shall have the option to extend the related Transfer Date for 2 months from the
original related Transfer Date upon written notice to the Seller at least 15
days prior to the related Transfer Date of its intent to extend the related
Transfer Date for 2 months.

          The Purchaser may elect to terminate this Agreement and transfer the
servicing from the Seller prior to the Transfer Date with respect to all or any
portion of the Mortgage Loans by providing written notice to the Seller of its
intent to transfer servicing at least 30 days prior to the date on which it
intends to transfer the servicing from the Seller. On or before the date
specified by the Purchaser in accordance with this paragraph (a) for the
transfer of servicing from the Seller, the Seller shall prepare, execute and
deliver to the successor entity designated by the Purchaser any and all
documents and other instruments, place in such successor's possession all
Mortgage Loan Documents necessary or appropriate to effect the purposes of such
notice of termination, including but not limited to the transfer and endorsement
or assignment of the Mortgage Loans and related documents, at the Seller's sole
expense. The Seller shall cooperate with the Purchaser and such successor in
effecting the termination of the Seller's responsibilities and rights hereunder.

          Section 6.04 Servicing Transfer Provisions. On or prior to the related
Transfer Date the Seller shall, at its sole cost and expense take such steps as
may be necessary or appropriate to effectuate and evidence the transfer of the
servicing of the Mortgage Loans to the Purchaser, or its designee, including but
not limited to the following:

          On the Transfer Date, the Seller shall comply with all of the
provisions of Section 5 of the Purchase Agreement to effect a complete transfer
of the Servicing Rights. On the related Transfer Date for each Mortgage Loan,
this Agreement, except for Articles VI, VIII, IX and X which shall survive the
Transfer Date, shall terminate.

          (a) Mortgage Loans in Foreclosure. The servicing with respect to
Mortgage Loans in foreclosure on or before the Transfer Date shall not be
transferred from the Seller to the Purchaser or the successor servicer, as the
case may be, and such Mortgage Loans shall continue to be serviced by the Seller
pursuant to the terms of this Agreement. However, if the Purchaser so elects,
the Purchaser may waive the provisions of this paragraph (a) and accept transfer
of servicing of such Mortgage Loans and all amounts received by the Seller
thereunder.


                                      -25-


          (b) Servicing Advances. Notwithstanding the fact that the Transfer
Date has occurred, the Seller shall not be reimbursed for any Servicing Advances
with respect to any Mortgage Loan until the Seller or the successor servicer
receives a Monthly Payment or Liquidation Proceeds with respect to such Mortgage
Loan. At such time, the Seller shall be entitled to be reimbursed for all
unreimbursed Servicing Advances with respect to such Mortgage Loan on a first
priority basis (but subject to any successor servicer's rights to reimbursement
with respect to Servicing Advances) from the Monthly Payment or Liquidation
Proceeds received with respect to such Mortgage Loan. This Section 6.03(b) shall
survive the Transfer Date.

          (c) Additional Termination Provisions. Notwithstanding and in addition
to the foregoing, in the event that (i) a Mortgage Loan becomes delinquent for a
period of 120 days or more (a "Delinquent Mortgage Loan") or (ii) a Mortgage
Loan becomes an REO Property, the Purchaser may at its election terminate this
Agreement with respect to such Delinquent Mortgage Loan or REO Property, upon 15
days' written notice to the Seller.


                                   ARTICLE VII

                                BOOKS AND RECORDS

          Section 7.01 Possession of Servicing Files Prior to the Transfer Date.
Prior to the Transfer Date, the contents of each Servicing File are and shall be
held in trust by the Seller for the benefit of the Purchaser as the owner
thereof. The Seller shall maintain in the Servicing File a copy of the contents
of each Mortgage File and the originals of the documents in each Mortgage File
not delivered to the Purchaser. The possession of the Servicing File by the
Seller is at the will of the Purchaser for the sole purpose of servicing the
related Mortgage Loan, pursuant to this Agreement, and such retention and
possession by the Seller is in its capacity as Seller only and at the election
of the Purchaser. The Seller shall release its custody of the contents of any
Servicing File only in accordance with written instructions from the Purchaser,
unless such release is required as incidental to the Seller's servicing of the
Mortgage Loans pursuant to this Agreement or is in connection with a repurchase
of any Mortgage Loan pursuant to Section 8 of the Purchase Agreement.

          The Seller shall be responsible for maintaining, and shall maintain, a
complete set of books and records for each Mortgage Loan which shall be marked
clearly to reflect the ownership of each Mortgage Loan by the Purchaser. In
particular, the Seller shall maintain in its possession, available for
inspection by the Purchaser or its designee, and shall deliver to the Purchaser
or its designee upon demand, evidence of compliance with all federal, state and
local laws, rules and regulations, and requirements of Fannie Mae or Freddie
Mac, including but not limited to documentation as to the method used in
determining the applicability of the provisions of the Flood Disaster Protection
Act of 1973, as amended, to the Mortgaged Property, documentation evidencing
insurance coverage and eligibility of any condominium project for approval by
Fannie Mae and periodic inspection reports as required by Section 2.14.


                                      -26-


          The Seller shall keep at its servicing office books and records in
which, subject to such reasonable regulations as it may prescribe, the Seller
shall note transfers of Mortgage Loans. No transfer of a Mortgage Loan may be
made unless such transfer is in compliance with the terms hereof. For the
purposes of this Agreement, the Seller shall be under no obligation to deal with
any person with respect to this Agreement or the Mortgage Loans unless the books
and records show such person as the owner of the Mortgage Loan. The Purchaser
may, subject to the terms of this Agreement, sell or transfer one or more of the
Mortgage Loans, provided, however, that the transferee will not be deemed to be
a Purchaser hereunder binding upon the Seller unless such transferee shall agree
in writing to be bound by the terms of this Agreement and an original
counterpart of the instrument of transfer and an assignment and assumption of
this Agreement executed by the transferee shall have been delivered to the
Seller. The Purchaser also shall advise the Seller of the transfer. Upon receipt
of notice of the transfer, the Seller shall mark its books and records to
reflect the ownership of the Mortgage Loans of such assignee, and shall release
the previous Purchaser from its obligations hereunder with respect to the
Mortgage Loans sold or transferred.


                                  ARTICLE VIII

                         INDEMNIFICATION AND ASSIGNMENT

          Section 8.01 Indemnification. The Seller shall indemnify the Purchaser
and hold it harmless against any and all claims, losses, damages, penalties,
fines, and forfeitures, including, but not limited to reasonable and necessary
legal fees and related costs, judgments, and any other costs, fees and expenses
that the Purchaser may sustain in any way related to the failure of the Seller
to (a) perform its duties and service the Mortgage Loans in strict compliance
with the terms of this Agreement, and/or (b) comply with applicable law. The
Seller immediately shall notify the Purchaser if a claim is made by a third
party with respect to this Agreement, assume (with the prior written consent of
the Purchaser) the defense of any such claim and pay all expenses in connection
therewith, including counsel fees, and promptly pay, discharge and satisfy any
judgment or decree which may be entered against it or the Purchaser in respect
of such claim. The Seller shall follow any written instructions received from
the Purchaser in connection with such claim. The Purchaser promptly shall
reimburse the Seller for all amounts advanced by it pursuant to the preceding
sentence except when the claim is in any way related to the Seller's
indemnification pursuant to Section 8 of the Purchase Agreement, or the failure
of the Seller to (a) service and administer the Mortgage Loans in strict
compliance with the terms of this Agreement and/or (b) comply with applicable
law.

          Section 8.02 Limitation on Liability of Seller and Others. Neither the
Seller nor any of the directors, officers, employees or agents of the Seller
shall be under any liability to the Purchaser 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 Seller or any such person against any breach of warranties
or representations made herein, or failure to perform its obligations in strict
compliance 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 Seller and any director, officer, employee
or agent of the Seller may rely in good faith on any document of any kind prima
facie properly executed and submitted by any Person respecting any matters
arising hereunder. The


                                      -27-


Seller 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
expense or liability, provided, however, that the Seller may, with the consent
of the Purchaser, 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 Seller shall be entitled to reimbursement from the
Purchaser of the reasonable legal expenses and costs of such action.

          Section 8.03 Limitation on Resignation and Assignment by Seller. The
Purchaser has entered into this Agreement with the Seller and subsequent
Purchasers will purchase the Mortgage Loans in reliance upon the independent
status of the Seller, and the representations as to the adequacy of its
servicing facilities, plant, personnel, records and procedures, its integrity,
reputation and financial standing, and the continuance thereof. Therefore, the
Seller shall neither assign this Agreement or the servicing hereunder or
delegate its rights or duties hereunder or any portion hereof or sell or
otherwise dispose of all or substantially all of its property or assets without
the prior written consent of the Purchaser, which consent shall be granted or
withheld in the sole discretion of the Purchaser.

          The Seller shall not resign from the obligations and duties hereby
imposed on it except by mutual consent of the Seller and the Purchaser or upon
the determination that its duties hereunder are no longer permissible under
applicable law and such incapacity cannot be cured by the Seller. Any such
determination permitting the resignation of the Seller shall be evidenced by an
Opinion of Counsel to such effect delivered to the Purchaser which Opinion of
Counsel shall be in form and substance acceptable to the Purchaser. No such
resignation shall become effective until a successor shall have assumed the
Seller's responsibilities and obligations hereunder in the manner provided in
Section 6.02.

          Without in any way limiting the generality of this Section 8.03, in
the event that the Seller either shall assign this Agreement or the servicing
responsibilities hereunder or delegate its duties hereunder or any portion
thereof or sell or otherwise dispose of all or substantially all of its property
or assets, without the prior written consent of the Purchaser, then the
Purchaser shall have the right to terminate this Agreement upon notice given as
set forth in Section 6.02, without any payment of any penalty or damages and
without any liability whatsoever to the Seller or any third party.

          Section 8.04 Assignment by Purchaser. The Purchaser shall have the
right, without the consent of the Seller, to assign, in whole or in part, its
interest under this Agreement with respect to some or all of the Mortgage Loans,
and designate any person to exercise any rights of the Purchaser hereunder, by
executing an Assignment and Assumption Agreement in the form of Exhibit 8
hereto. Upon such assignment of rights and assumption of obligations, the
assignee or designee shall accede to the rights and obligations hereunder of the
Purchaser with respect to such Mortgage Loans and the Purchaser as assignor
shall be released from all obligations hereunder with respect to such Mortgage
Loans from and after the date of such assignment and assumption. All references
to the Purchaser in this Agreement shall be deemed to include its assignee or
designee.


                                      -28-


                                   ARTICLE IX

             REPRESENTATIONS, WARRANTIES AND COVENANTS OF PURCHASER

          The Purchaser warrants and represents to, and covenants and agrees
with, the Seller as follows:

          Section 9.01 Authority and Capacity. The execution, delivery and
performance by the Purchaser of this Agreement has been and will remain duly and
validly authorized by all necessary corporate action. This Agreement constitutes
and will continue to constitute a legal, valid and enforceable obligation of the
Purchaser.

          Section 9.02 Assistance. To the extent possible, the Purchaser shall
cooperate with and assist the Seller as requested by the Seller, in carrying out
Seller's covenants, agreements duties and responsibilities under this Agreement
and in connection therewith shall execute and deliver all such papers, documents
and instruments as may be necessary and appropriate in furtherance thereof.


                                    ARTICLE X

                    REPRESENTATIONS AND WARRANTIES OF SELLER

          The Seller warrants and represents to, and covenants and agrees with,
the Purchaser as follows:

          Section 10.01 Due Organization and Authority. The Seller is a
corporation duly organized, validly existing and in good standing under the laws
of the state of its 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 the Seller, and in any event the Seller is in compliance with the
laws of any such state to the extent necessary to ensure the enforceability of
the related Mortgage Loan in accordance with the terms of this Agreement; the
Seller 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 (including all instruments or transfer to be
delivered pursuant to this Agreement) by the Seller and the consummation of the
transactions contemplated hereby have been duly and validly authorized; this
Agreement evidences the valid, binding and enforceable obligation of the Seller;
and all requisite corporate action has been taken by the Seller to make this
Agreement valid and binding upon the Seller in accordance with its terms;

          Section 10.02 Ordinary Course of Business. The consummation of the
transactions contemplated by this Agreement are in the ordinary course of
business of the Seller;

          Section 10.03 No Conflicts. Neither the execution and delivery of this
Agreement, 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 the terms,
conditions or provisions of the Seller's charter or by-laws or any legal
restriction or any agreement or instrument to which the Seller is now a party or
by which it is bound, or constitute a default or result in an


                                      -29-


acceleration under any of the foregoing, or result in the violation of any law,
rule, regulation, order, judgment or decree to which the Seller or its property
is subject, or impair the ability of the Purchaser to realize on the Mortgage
Loans, or impair the value of the Mortgage Loans;

          Section 10.04 Ability to Service. The Seller is an approved
Seller/servicer of conventional residential mortgage loans for Fannie Mae or
Freddie Mac, with the facilities, procedures, and experienced personnel
necessary for the sound servicing of mortgage loans of the same type as the
Mortgage Loans. The Seller is in good standing to sell mortgage loans to and
service mortgage loans for Fannie Mae or Freddie Mac, and no event has occurred,
including but not limited to a change in insurance coverage, which would make
the Seller unable to comply with Fannie Mae or Freddie Mac eligibility
requirements or which would require notification to either Fannie Mae or Freddie
Mac;

          Section 10.05 Ability to Perform. The Seller does not believe, nor
does it have any reason or cause to believe, that it cannot perform each and
every covenant contained in this Agreement;

          Section 10.06 No Litigation Pending. There is no action, suit,
proceeding or investigation pending or, to the Seller's knowledge, threatened
against the Seller 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 the Seller, or in any material impairment of
the right or ability of the Seller to carry on its business substantially as now
conducted, or in any material liability on the part of the Seller, or which
would draw into question the validity of this Agreement or the Mortgage Loans or
of any action taken or to be taken in connection with the obligations of the
Seller contemplated herein, or which would be likely to impair materially the
ability of the Seller to perform under the terms of this Agreement;

          Section 10.07 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 the Seller of or compliance by the Seller
with this Agreement or the Servicing of the Mortgage Loans as evidenced by the
consummation of the transactions contemplated by this Agreement, or if required,
such approval has been obtained prior to the related Closing Date;

          Section 10.08 No Untrue Information. Neither this Agreement nor any
statement, report or other document furnished or to be furnished pursuant to
this Agreement or in connection with the transactions contemplated hereby
contains any untrue statement of fact or omits to state a fact necessary to make
the statements contained therein not misleading.


                                   ARTICLE XI

                                     DEFAULT

          Section 11.01 Events of Default. The following shall constitute an
Event of Default under this Agreement on the part of the Seller:

          (a) any failure by the Seller to remit to the Purchaser any payment
required to be made under the terms of this Agreement which continues unremedied
for a period of five days



                                      -30-


after the date upon which written notice of such failure, requiring the same to
be remedied, shall have been given to the Seller by the Purchaser; or

          (b) the failure by the Seller duly to observe or perform in any
material respect any other of the covenants or agreements on the part of the
Seller set forth in this Agreement which 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 given to the Seller by the Purchaser; or

          (c) a decree or order of a court or agency or supervisory authority
having jurisdiction for the appointment of a conservator or 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 Seller and such decree or order
shall have remained in force undischarged or unstayed for a period of 60 days;
or

          (d) the Seller shall consent to the appointment of a conservator or
receiver or liquidator in any insolvency, readjustment of debt, marshaling of
assets and liabilities or similar proceedings of or relating to the Seller or of
or relating to all or substantially all of its property; or

          (e) the Seller 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

          (f) the Seller ceases to meet the qualifications of a Fannie Mae
servicer; or

          (g) the Seller and its Affiliates fail to maintain a minimum net worth
of $25,000,000; or

          (h) the Seller, if it is an Insured Depository Institution, shall
become the subject of a cease and desist order of the Appropriate Federal
Banking Agency or enters into a memorandum of understanding, consent agreement
or any similar agreement with the Appropriate Federal Banking Agency, any of
which, would have or is purportedly the result of, any condition which would
have a material adverse effect on the Mortgage Loans, or the Seller's ability to
service the Mortgage Loans as provided hereunder; or

          (i) the Seller shall fail to maintain its status as Adequately
Capitalized; or

          (j) the Seller attempts to assign its right to servicing compensation
hereunder or the Seller attempts, without the consent of the Purchaser, to sell
or otherwise dispose of all or substantially all of its property or assets or to
assign this Agreement or the servicing responsibilities hereunder or to delegate
its duties hereunder or any portion thereof.

          In each and every such case, so long as an Event of Default shall not
have been remedied, in addition to whatever rights the Purchaser may have at law
or equity to damages, including injunctive relief and specific performance, the
Purchaser, by notice in writing to



                                      -31-


the Seller, may terminate all the rights and obligations of the Seller under
this Agreement and in and to the Mortgage Loans and the proceeds thereof.

          Upon receipt by the Seller of such written notice, all authority and
power of the Seller 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 6.03.

          Section 11.02 Waiver of Defaults. By a written notice, the Purchaser
may waive any default by the Seller in the performance of its obligations
hereunder and its consequences. Upon any 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 XII

                            MISCELLANEOUS PROVISIONS

          Section 12.01 Notices. All notices, requests, demands and other
communications which are required or permitted to be given under this Agreement
shall be in writing and shall be deemed to have been duly given upon the
delivery or mailing thereof, as the case may be, sent by registered or certified
mail, return receipt requested:

          (a) If to Purchaser to:

                  Lehman Brothers Bank, F.S.B.
                  3 World Financial Center
                  8th Floor
                  New York, New York 10285
                  Attention:  Manager Contract Finance

          (b) If to Seller to:

                  First National Bank of Nevada
                  7373 North Scottsdale Road
                  Suite A-280
                  Scottsdale AZ  85253

          Section 12.02 Waivers. Either the Seller or Purchaser may upon consent
of all parties, by written notice to the others:

          (a) Waive compliance with any of the terms, conditions or covenants
required to be complied with by the others hereunder; and

          (b) Waive or modify performance of any of the obligations of the
others hereunder.


                                      -32-


          The waiver by any party hereto of a breach of any provision of this
Agreement shall not operate or be construed as a waiver of any other subsequent
breach.

          Section 12.03 Entire Agreement; Amendment. This Agreement and the
Purchase Agreement constitute the entire agreement between the parties with
respect to servicing of the Mortgage Loans during the Interim Period. This
Agreement may be amended and any provision hereof waived, but, only in writing
signed by the party against whom such enforcement is sought.

          Section 12.04 Execution; Binding Effect. This Agreement may be
executed in one or more counterparts and by the different parties hereto on
separate counterparts, each of which, when so executed, shall be deemed to be an
original; such counterparts, together, shall constitute one and the same
agreement. Subject to Section 8.03, this Agreement shall inure to the benefit of
and be binding upon the Seller and the Purchaser and their respective successors
and assigns.

          Section 12.05 Headings. Headings of the Articles and Sections in this
Agreement are for reference purposes only and shall not be deemed to have any
substantive effect.

          Section 12.06 Applicable Law. This Agreement shall be construed in
accordance with the laws of the State of New York.

          Section 12.07 Relationship of Parties. Nothing herein contained shall
be deemed or construed to create a partnership or joint venture between the
parties. The duties and responsibilities of the Seller shall be rendered by them
as independent contractors and not as an agent of Purchaser. The Seller shall
have full control of all of its acts, doings, proceedings, relating to or
requisite in connection with the discharge of its duties and responsibilities
under this Agreement.

          Section 12.08 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.

          Section 12.09 Recordation of Assignments of Mortgage. To the extent
permitted by applicable law, each of the Assignments of Mortgage is subject to
recordation in all appropriate public offices for real property records in all
the counties or other comparable jurisdictions in which any or all of the
Mortgaged Properties are situated, and in any other appropriate public recording
office or elsewhere, such recordation to be effected at the Seller's expense in
the event recordation is either necessary under applicable law or requested by
the Purchaser at its sole option.


                                      -33-


          Section 12.10 Appointment and Designation of Master Servicer. The
Purchaser hereby appoints and designates Aurora Loan Services, Inc. as its
master servicer (the "Master Servicer") for the Mortgage Loans subject to this
Agreement. The Seller is hereby authorized and instructed to take any and all
instructions with respect to servicing the Mortgage Loans hereunder as if the
Master Servicer were the Purchaser hereunder. The authorization and instruction
set forth herein shall remain in effect until such time as the Seller shall
receive written instruction from the Purchaser that such authorization and
instruction is terminated.



                                      -34-



          IN WITNESS WHEREOF, the parties have executed this Agreement under
seal as of the date and year first above written.


                                                   LEHMAN BROTHERS BANK, F.S.B.
                                                     (the Purchaser)



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


                                                   FIRST NATIONAL BANK OF NEVADA
                                                     (the Seller)



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





                                    EXHIBIT 1

                        FORM OF MONTHLY REMITTANCE ADVICE

  Electronic format to comply with Fannie Mae Form 2010 - MBS Style Servicing.



                                       1-1


                                    EXHIBIT 2

                     FORM OF CUSTODIAL ACCOUNT CERTIFICATION


                                                              _______ __, 200_

          _____________________________________________ hereby certifies that it
has established the account described below as a Custodial Account pursuant to
Section 2.04 of the Interim Servicing Agreement, dated as of November 15, 2000,
Fixed Rate Mortgage Loans, Group 2000-1.

          Title of Account:_"First National Bank of Nevada, in trust for the
registered Purchaser, Group 2000-1."

Account Number:______________________________________

Address of office or branch
of the Seller at
which Account is maintained:_________________________



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

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


                                                   FIRST NATIONAL BANK OF NEVADA
                                                   Seller



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


                                       2-1


                                    EXHIBIT 3

                   FORM OF CUSTODIAL ACCOUNT LETTER AGREEMENT

                                                                _______ __, 200_

To:  ___________________________

     ___________________________

     ___________________________
     (the "Depository")


          As Seller under the Interim Servicing Agreement, dated as of November
15, 2000, Fixed Rate Mortgage Loans, Group 2000-1 (the "Agreement"), we hereby
authorize and request you to establish an account, as a Custodial Account
pursuant to Section 2.04 of the Agreement, to be designated as "First National
Bank of Nevada, in trust for the Purchaser of the Fixed and Adjustable Rate
Mortgage Loans - Group 2000-1". All deposits in the account shall be subject to
withdrawal therefrom by order signed by the Seller. You may refuse any deposit
which would result in violation of the requirement that the account be fully
insured as described below. This letter is submitted to you in duplicate. Please
execute and return one original to us.


                                                   FIRST NATIONAL BANK OF NEVADA
                                                   Seller



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


          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 full amount deposited at any time in the
account will be insured by the Federal Deposit Insurance Corporation through the
Bank Insurance Fund ("BIF") or the Savings Association Insurance Fund ("SAIF").



                                                   -----------------------------
                                                            Depository



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



                                       3-1


                                    EXHIBIT 4

                      FORM OF ESCROW ACCOUNT CERTIFICATION

                                                             _________ ___, 200_

          __________________________________ hereby certifies that it has
established the account described below as an Escrow Account pursuant to Section
2.06 of the Interim Servicing Agreement, dated as of November 15, 2000, Fixed
Rate Mortgage Loans, Group 2000-1.

          Title of Account: "First National Bank of Nevada in trust for the
Purchaser of the Fixed and Adjustable Rate Mortgage Loans, Group 2000-1, and
various Mortgagors."


Account Number:__________________________

Address of office or branch
of the Seller at
which Account is maintained:_____________


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

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


                                                   FIRST NATIONAL BANK OF NEVADA
                                                   Seller



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


                                       4-1



                                    EXHIBIT 5

                     FORM OF ESCROW ACCOUNT LETTER AGREEMENT


                                                                _______ __, 200_

To:  ___________________________

     ___________________________

     ___________________________
     (the "Depository")

          As Seller under the Interim Servicing Agreement, dated as of November
15, 2000, Fixed Rate Mortgage Loans, Group 2000-1 (the "Agreement"), we hereby
authorize and request you to establish an account, as an Escrow Account pursuant
to Section 2.06 of the Agreement, to be designated as First National Bank of
Nevada in trust for the Purchasers of Fixed and Adjustable Rate Mortgage Loans -
Group 2000-1". All deposits in the account shall be subject to withdrawal
therefrom by order signed by the Seller. You may refuse any deposit which would
result in violation of the requirement that the account be fully insured as
described below. This letter is submitted to you in duplicate. Please execute
and return one original to us.


                                                   FIRST NATIONAL BANK OF NEVADA
                                                   Seller



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


                                       5-1



          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 full amount deposited at any time in the
account will be insured by the Federal Deposit Insurance Corporation through the
Bank Insurance Fund ("BIF") or the Savings Association Insurance Fund ("SAIF").



                                                   -----------------------------
                                                   Depository



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

                                       5-2


                                    EXHIBIT 6

                             MORTGAGE LOAN SCHEDULE
                             ----------------------





                                       6-1


                                    EXHIBIT 7

                         CONTENTS OF EACH MORTGAGE FILE
                         ------------------------------

          With respect to each Mortgage Loan, the Mortgage File shall include
each of the following items, which shall be available for inspection by the
Purchaser and any prospective Purchaser:

     1)   The original Mortgage Note bearing all intervening endorsements,
        endorsed "Pay to the order of _________ without recourse" and signed in
        the name of [Originator] by an authorized officer.

     2)   The original of any guarantee executed in connection with the Mortgage
        Note.

     3)   The original Mortgage, with evidence of recording thereon. If in
        connection with any Mortgage Loan, the Seller cannot deliver or cause to
        be delivered the original Mortgage with evidence of recording thereon on
        or prior to the related Closing Date because of a delay caused by the
        public recording office where such Mortgage has been delivered for
        recordation or because such Mortgage has been lost or because such
        public recording office retains the original recorded Mortgage, the
        Seller shall deliver or cause to be delivered to the Purchaser, a
        photocopy of such Mortgage, together with (i) in the case of a delay
        caused by the public recording office, an Officer's Certificate of the
        Seller stating that such Mortgage has been dispatched to the appropriate
        public recording office for recordation and that the original recorded
        Mortgage or a copy of such Mortgage certified by such public recording
        office to be a true and complete copy of the original recorded Mortgage
        will be promptly delivered to the Purchaser upon receipt thereof by the
        Seller; or (ii) in the case of a Mortgage where a public recording
        office retains the original recorded Mortgage or in the case where a
        Mortgage is lost after recordation in a public recording office, a copy
        of such Mortgage certified by such public recording office to be a true
        and complete copy of the original recorded Mortgage.

     4)   The originals of all assumption, modification, consolidation or
        extension agreements, with evidence of recording thereon.

     5)   The original Assignment of Mortgage for each Mortgage Loan, in blank,
        in form and substance acceptable for recording.

     6)   Originals of all intervening assignments of the Mortgage with evidence
        of recording thereon, or if any such intervening assignment has not been
        returned from the applicable recording office or has been lost or if
        such public recording office retains the original recorded assignments
        of mortgage, the Seller shall deliver or cause to be delivered to the
        Purchaser, a photocopy of such intervening assignment, together with (i)
        in the case of a delay caused by the public recording office, an
        Officer's Certificate of the Seller stating that such intervening
        assignment of mortgage has been dispatched to the appropriate public
        recording office for recordation and that such original recorded
        intervening assignment of mortgage or a copy of such intervening


                                       7-1


        assignment of mortgage certified by the appropriate public recording
        office to be a true and complete copy of the original recorded
        intervening assignment of mortgage will be promptly delivered to the
        Purchaser upon receipt thereof by the Seller; or (ii) in the case of an
        intervening assignment where a public recording office retains the
        original recorded intervening assignment or in the case where an
        intervening assignment is lost after recordation in a public recording
        office, a copy of such intervening assignment certified by such public
        recording office to be a true and complete copy of the original recorded
        intervening assignment.

     7)   The original mortgagee policy of title insurance.

     8)   Any security agreement, chattel mortgage or equivalent executed in
          connection with the Mortgage.

     9)   The original hazard insurance policy and, if required by law, flood
        insurance policy, in accordance with Section 2.11 of the Agreement.

     10)  The PMI Policy or certificate of insurance or an electronic notation
        of the existence of such policy and the LPMI Policy, if applicable.

     11)  Residential loan application.

     12)  Mortgage Loan closing statement.

     13)  Verification of employment and income except for Mortgage Loans
        originated under a Limited Documentation Program.

     14)  Verification of acceptable evidence of source and amount of
        downpayment except for Mortgage Loans originated under a Limited
        Documentation Program.

     15)  Credit report on the Mortgagor.

     16)  Residential appraisal report.

     17)  Photograph of the Mortgaged Property.

     18)  Survey of the Mortgaged Property, if any.

     19)  Copy of each instrument necessary to complete identification of any
        exception set forth in the exception schedule in the title policy, i.e.,
        map or plat, restrictions, easements, sewer agreements, home association
        declarations, etc.

     20)  All required disclosure statements.

     21)  If available, termite report, structural engineer's report, water
        potability and septic certification.

     22)  Sales contract, if applicable.

                                       7-2


     23)  Tax receipts, insurance premium receipts, ledger sheets, payment
        history from date of origination, insurance claim files, correspondence,
        current and historical computerized data files, and all other
        processing, underwriting and closing papers and records which are
        customarily contained in a mortgage loan file and which are required to
        document the Mortgage Loan or to service the Mortgage Loan.

     24)  Amortization schedule.

          In the event an Officer's Certificate of the Seller is delivered to
the Purchaser because of a delay caused by the public recording office in
returning any recorded document, the Seller shall deliver to the Purchaser,
within 120 days of the related Closing Date, an Officer's Certificate which
shall (i) identify the recorded document, (ii) state that the recorded document
has not been delivered to the Custodian due solely to a delay caused by the
public recording office, (iii) state the amount of time generally required by
the applicable recording office to record and return a document submitted for
recordation, and (iv) specify the date the applicable recorded document will be
delivered to Custodian. An extension of the date specified in (iv) above may be
requested from the Purchaser, which consent shall not be unreasonably withheld.


                                       7-3


                                    EXHIBIT 8

                   FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT
                   -------------------------------------------

          ASSIGNMENT AND ASSUMPTION AGREEMENT, dated __________ __, 200_,
between __________________________________, a ___________________ corporation
("Assignor") and ____________________., a _____________ corporation
("Assignee"):

          For and in consideration of the sum of TEN DOLLARS ($10.00) and other
valuable consideration the receipt and sufficiency of which hereby are
acknowledged, and of the mutual covenants herein contained, the parties hereto
hereby agree as follows:

               1. The Assignor hereby grants, transfers and assigns to Assignee,
          as Purchaser, all of the right, title and interest of Assignor under
          that certain Interim Servicing Agreement, Conventional Residential
          Adjustable Rate Mortgage Loans, Group 2000-1 (the "Interim Servicing
          Agreement"), dated as of November 15, 2000, by and between Lehman
          Brothers Bank, F.S.B (the "Purchaser"), and First National Bank of
          Nevada (the "Interim Servicer").

               2. The Assignor warrants and represents to, and covenants with,
          the Assignee that:

                    a. The Assignor has not received notice of, and has no
               knowledge of, any offsets, counterclaims or other defenses
               available to the Interim Servicer with respect to the Interim
               Servicing Agreement or the Mortgage Loans;

                    b. The Assignor has not waived or agreed to any waiver
               under, or agreed to any amendment or other modification of, the
               Interim Servicing Agreement, including without limitation, the
               transfer of the servicing obligations under the Interim Servicing
               Agreement. The Assignor has no knowledge of, and has not received
               notice of, any waivers under or amendments or other modifications
               of, or assignments of rights or obligations under, the Interim
               Servicing Agreement; and

               3. That Assignee warrants and represents to, and covenants with,
          the Assignor and the Interim Servicer pursuant to the Interim
          Servicing Agreement that the Assignee agrees to be bound, as
          Purchaser, by all of the terms, covenants and conditions of the
          Interim Servicing Agreement and from and after the date hereof, the
          Assignee assumes for the benefit of each of the Interim Servicer and
          the Assignor all of the Assignor's obligations as Purchaser
          thereunder;

          IN WITNESS WHEREOF, the parties have caused this Assignment and
Assumption Agreement to be executed by their duly authorized officers as of the
date first above written.


                                       8-1



----------------------------------           -----------------------------------
Assignor                                     Assignee

By:                                          By:
   -------------------------------              --------------------------------

Its:                                         Its:
    ------------------------------               -------------------------------

Taxpayer                                     Taxpayer
Identification No.                           Identification No.
                  ----------------                             -----------------



                                       8-2


                                    EXHIBIT 9

                            ACKNOWLEDGMENT AGREEMENT

          On this ____ day of ____________, 200_, Lehman Brothers Bank, F.S.B,
(the "Purchaser") as the Purchaser under that certain Interim Servicing
Agreement dated as of November 15, 2000, (the "Agreement"), does hereby contract
with the First National Bank of Nevada (the "Seller") as Seller under the
Agreement, for the servicing responsibilities related to the Mortgage Loans
listed on the Mortgage Loan Schedule attached hereto. The Seller hereby accepts
the servicing responsibilities transferred hereby and on the date hereof assumes
all servicing responsibilities related to the Mortgage Loans identified on the
attached Mortgage Loan Schedule all in accordance with the Agreement. The
contents of each Servicing File required to be delivered to service the Mortgage
Loans pursuant to the Agreement have been or shall be delivered to the Seller by
the Purchaser in accordance with the terms of the Agreement.

          With respect to the Mortgage Loans made subject to the Agreement
hereby, the Closing Date shall be ___________________.

          All other terms and conditions of this transaction shall be governed
by the Agreement.

          Capitalized terms used herein and not otherwise defined shall have the
meanings set forth in the Agreement.


                                       9-1



          This Acknowledgment Agreement may be executed simultaneously in any
number of counterparts. Each counterpart shall be deemed to be an original, and
all such counterparts shall constitute one and the same instrument.

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

                                                   PURCHASER:
                                                   LEHMAN BROTHERS BANK. F.S.B.


                                                   By:
                                                      --------------------------

                                                   Name:
                                                        ------------------------

                                                   Title:
                                                         -----------------------


                                                   SELLER:
                                                   FIRST NATIONAL BANK OF NEVADA


                                                   By:
                                                      --------------------------

                                                   Name:
                                                        ------------------------

                                                   Title:
                                                         -----------------------



                                       9-2


                                   EXHIBIT 10

                   FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT

          ASSIGNMENT AND ASSUMPTION, dated as of _______, 2000 between Lehman
Brothers Bank, F.S.B. having an office at 3 World Financial Center, New York,
New York 10285 ("Assignor") and First National Bank of Nevada, having an office
at 7373 North Scottsdale Road, Suite A-280, Scottsdale AZ 85253 ("Assignee"):

          For and in consideration of the sum of TEN DOLLARS ($10.00) and other
valuable consideration the receipt and sufficiency of which hereby are
acknowledged, and of the mutual covenants herein contained, the parties hereto
hereby agree as follows:

     1.   The Assignor hereby grants, transfers and assigns to Assignee, all
of the right, title and interest of Assignor, as "Servicer", with respect to the
mortgage loans identified on Exhibit A (the "Mortgage Loans"), under that
certain Custodial Agreement, dated as of July 13, 1999 (the "Agreement"), by and
between Assignor as owner and servicer, and LaSalle National Bank (the
"Custodian").

          The Assignor specifically reserves any and all right, title and
interest and all obligations of the Assignor with respect to any mortgage loans
subject to the Agreement which are not the Mortgage Loans set forth on Exhibit A
hereto and are not the subject of this Assignment and Assumption Agreement.

     2.   The Assignor warrants and represents to, and covenants with, the
Assignee that with respect to the Mortgage Loans:

          a. The Assignor is assigning its interest as Servicer under the
Agreement for the sole purpose of permitting the Assignee as Servicer of the
Mortgage Loans, to act as Servicer under the Agreement; and

          b. The Assignor has not waived or agreed to any waiver under, or
agreed to any amendment or other modification of, the Agreement. The Assignor
has no knowledge of, and has not received notice of, any waivers under or
amendments or other modifications of, or assignments of rights or obligations
under the Agreement.

     3.   The Assignee warrants and represents to, and covenants with, the
Assignor and the Custodian pursuant to the Agreement that the Assignee agrees to
be bound, as Servicer, by all of the terms, covenants and conditions of the
Agreement and from and after the date hereof, the Assignee assumes for the
benefit of the Assignor all of the Assignor's obligations as Servicer
thereunder.


                                      10-1



          IN WITNESS WHEREOF, the parties have caused this Assignment and
Assumption Agreement to be executed by their duly authorized officers as of the
date first above written.


FIRST NATIONAL BANK OF NEVADA               LEHMAN BROTHERS BANK, F.S.B.
                                            Assignor

Assignee


By:                                         By
   ---------------------------------           ---------------------------------



Its:                                        Its:
     -------------------------------             -------------------------------




                                      10-2


                                    EXHIBIT A

                             MORTGAGE LOAN SCHEDULE



                             [INTENTIONALLY OMITTED]





                                      10-3



                                 AMENDMENT NO. 1
                    TO THE MASTER INTERIM SERVICING AGREEMENT

          This is Amendment No. 1 (the "Amendment No. 1"), dated as of September
6, 2001 (the "Amendment Date"), by and between Lehman Brothers Bank, FSB (the
"Purchaser"), and First National Bank of Nevada (the "Servicer") to that certain
Master Interim Servicing Agreement dated as of November 15, 2000 by and between
the Servicer and the Purchaser (the "Existing Servicing Agreement", as amended
by this Amendment 1, the "Servicing Agreement").

                               W I T N E S S E T H

          WHEREAS, the Servicer and the Purchaser have agreed, subject to the
terms and conditions of this Amendment No. 1 that the Existing Servicing
Agreement be amended to reflect certain agreed upon revisions to the terms of
the Existing Servicing Agreement.

          Accordingly, the Servicer and the Purchaser hereby agree, in
consideration of the mutual premises and mutual obligations set forth herein,
that the Existing Servicing Agreement is hereby amended as follows:

(1)  The first recital to the Existing Servicing Agreement is hereby amended by
     deleting the existing section in its entirety and replacing it with the
     following language:

               "WHEREAS, the Purchaser and Seller entered into a Master Mortgage
          Loan Purchase and Warranties Agreement dated as of the date hereof
          (the "Purchase Agreement") pursuant to which from time to time the
          Purchaser shall purchase from the Seller certain conventional,
          residential, adjustable rate first and second lien mortgage loans (the
          "Mortgage Loans") delivered as whole loans servicing released; and."

(2)  Section 1.01 of the Existing Servicing Agreement is hereby amended by
     deleting the definition of "Mortgage" in its entirety and replacing it with
     the following language:

          "Mortgage: The mortgage, deed of trust or other instrument securing a
          Mortgage Note, which creates a first or second lien on an
          unsubordinated estate in fee simple in real property securing the
          Mortgage Note."

(3)  Effective Date. This Amendment shall become effective on the date (the
     "Amendment Effective Date") on which the following conditions precedent
     shall have been satisfied:

     (a)  On the Amendment Effective Date, the Purchaser shall have received the
          following, each of which shall be satisfactory to the Purchaser:

          (i)    this Amendment, executed and delivered by a duly authorized
                 officer of the Servicer and the Purchaser;




          (ii)   Amendment No. 1 to the Master Mortgage Loan Purchase and
                 Warranties Agreement, dated as of the date hereof, by and
                 between the Purchaser and the Servicer, executed and delivered
                 by a duly authorized officer of the Servicer and the Purchaser;

          (iii)  such other documents as the Purchaser or counsel to the
                 Purchaser may reasonably request.

     (b)  On the Amendment Effective Date, (i) the Servicer shall be in
          compliance with all the representations and warranties set forth in
          Article X of the Servicing Agreement, as amended by this Amendment No.
          1, on its part to be observed or performed, (ii) no default shall have
          occurred and be continuing on such date.

(4)  Except as expressly amended and modified by this Amendment, the Existing
     Servicing Agreement shall continue to be, and shall remain, in full force
     and effect in accordance with its terms.

(5)  This Amendment No. 1 shall be construed in accordance with the laws of the
     State of New York, and the obligations, rights and remedies of the parties
     hereunder shall be determined in accordance with such laws.

(6)  This Amendment No. 1 may be executed in one or more counterparts and by
     different parties hereto on separate counterparts, each of which, when so
     executed, shall constitute one and the same agreement.

(7)  This Amendment No. 1 shall inure to the benefit of and be binding upon the
     Purchaser and the Servicer under the Existing Servicing Agreement, and
     their respective successors and permitted assigns.


                     [Signatures Commence on Following Page]




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

                                                   LEHMAN BROTHERS BANK, FSB

                                                   Purchaser


                                                   By:
                                                      --------------------------

                                                   Name:
                                                        ------------------------

                                                   Title:
                                                         -----------------------



                                                   FIRST NATIONAL BANK OF NEVADA

                                                   Servicer


                                                   By:
                                                      --------------------------

                                                   Name:
                                                        ------------------------

                                                   Title:
                                                         -----------------------