Unassociated Document

EXHIBIT D

DEUTSCHE BANK NATIONAL TRUST COMPANY

as Custodian

and

AAMES MORTGAGE INVESTMENT TRUST 2006-1

as Issuer

and

DEUTSCHE BANK NATIONAL TRUST COMPANY

as Indenture Trustee

_____________________________

CUSTODIAL AGREEMENT

Dated as of April 1, 2006

_____________________________

Aames Mortgage Investment Trust 2006-1

Mortgage Backed Notes

TABLE OF CONTENTS

Section 1.	Definitions
Section 2.	Delivery of this Agreement; Delivery of the Custodial Files
Section 3.	Acceptance of Mortgage Loans by Custodian; Review of Documentation.
Section 4.	Obligations of the Custodian; Ownership of Mortgage Loan Documents
Section 5.	Release of Custodial Files.
Section 6.	Fees of Custodian
Section 7.	Removal of Custodian With Respect to Some or All of the Mortgage Loans
Section 8.	Transfer of Custodial Files Upon Termination
Section 9.	Examination of Custodial Files
Section 10.	Insurance of Custodian
Section 11.	Counterparts
Section 12.	Periodic Statements
Section 13.	GOVERNING LAW
Section 14.	Copies of Mortgage Documents
Section 15.	No Adverse Interest of Custodian
Section 16.	Resignation by Custodian
Section 17.	Term of Agreement
Section 18.	Notices
Section 19.	Successors and Assigns
Section 20.	Limitation on Liability.
Section 21.	Custodian Obligations Regarding Genuineness of Documents
Section 22.	Shipment of Documents
Section 23.	Authorized Representatives
Section 24.	Amendments
Section 25.	Limited Role of Owner Trustee; Successor Owner Trustee.
Section 26.	Eligibility Requirements for the Custodian

EXHIBITS

EXHIBIT A	MORTGAGE LOAN SCHEDULE
EXHIBIT B-1	FORM OF INITIAL CERTIFICATION
EXHIBIT B-2	FORM OF INTERIM CERTIFICATION
EXHIBIT B-3	FORM OF FINAL CERTIFICATION
EXHIBIT B-4	FORM OF REQUEST FOR RELEASE OF DOCUMENTS AND RECEIPT
EXHIBIT B-5	FORM OF LOST NOTE AFFIDAVIT
EXHIBIT B-6	FORM OF ENDORSEMENT
EXHIBIT C	AUTHORIZED REPRESENTATIVES OF THE CUSTODIAN
EXHIBIT D	AUTHORIZED REPRESENTATIVES OF THE INDENTURE TRUSTEE
EXHIBIT E	AUTHORIZED REPRESENTATIVES OF THE MASTER SERVICER
EXHIBIT F	AUTHORIZED REPRESENTATIVES OF THE SERVICER (AAMES FUNDING CORPORATION)

This is a Custodial Agreement (the “Agreement”), dated and effective as of April 1, 2006, by and among Deutsche Bank National Trust Company, as custodian (in such capacity, the “Custodian”), Aames Mortgage Investment Trust 2006-1, as issuer (the “Issuer”), and Deutsche Bank National Trust Company, as indenture trustee (in such capacity, the “Indenture Trustee”);

W I T N E S S E T H:

WHEREAS, the Indenture Trustee has entered into a transfer and servicing agreement, dated as of April 1, 2006 (the “Transfer and Servicing Agreement”), by and among the Issuer, the Indenture Trustee, Financial Asset Securities Corp., as depositor (the “Depositor”), Wells Fargo Bank, N.A., as master servicer (in such capacity, the “Master Servicer”) and as trust administrator (in such capacity, the “Trust Administrator”), Aames Funding Corporation, as servicer (the “Servicer”), and Aames Investment Corporation, as seller, pursuant to which the Depositor has conveyed certain Mortgage Loans identified on Exhibit A hereto (the “Mortgage Loan Schedule”) to the Issuer;

WHEREAS, the Issuer has entered into an indenture dated as of April 1, 2006 (the “Indenture”), among the Indenture Trustee, the Issuer and the Trust Administrator, pursuant to which the Issuer has pledged such Mortgage Loans to the Indenture Trustee to secure the Issuer’s 2006-1 Mortgage Backed Notes (the “Notes”);

WHEREAS, the Indenture Trustee and the Custodian desire that the Custodian shall hold the Mortgage Loan Documents (as defined herein) on behalf of the Indenture Trustee in accordance with the terms hereof, and that the Custodian shall cooperate with the Master Servicer in the performance of the Master Servicer’s duties under the Transfer and Servicing Agreement;

NOW, THEREFORE, in consideration of the mutual agreements hereinafter set forth, and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the Indenture Trustee and the Custodian agree as follows:

Section 1. Definitions. All capitalized terms not defined herein shall have the meanings assigned to such terms in the Transfer and Servicing Agreement. The Indenture Trustee shall notify the Custodian, in advance, of any material changes to such Transfer and Servicing Agreement that may affect the rights and obligations of the Custodian set forth herein and shall not agree to any amendment that affects the rights or obligations of the Custodian without the Custodian’s prior written consent. Whenever used herein, the following words and phrases, unless the context otherwise requires, shall have the following meanings:

Agreement: This Custodial Agreement and all amendments and attachments hereto and supplements hereof.

Custodian: Deutsche Bank National Trust Company or any of its successors in interest or assigns, or any successor to the Custodian under this Agreement as herein provided.

Custodial File: As to each Mortgage Loan, any Mortgage Loan Documents that are delivered to the Custodian or which at any time come into the possession of the Custodian pursuant to this Agreement.

Final Certification: A final certification as to each Mortgage Loan, which Final Certification is delivered to the Depositor, the Master Servicer, the Servicer and the Indenture Trustee by the Custodian in accordance with Section 3(d) hereof and in the form annexed hereto as Exhibit B-3.

Initial Certification: An initial certification as to each Mortgage Loan, which Initial Certification is delivered to the Depositor, the Master Servicer, the Servicer and the Indenture Trustee by the Custodian in accordance with Section 3(a) hereof and in the form annexed hereto as Exhibit B-1.

Interim Certification: An interim certification as to each Mortgage Loan, which Interim Certification is delivered to the Depositor, the Master Servicer, the Servicer and the Indenture Trustee by the Custodian in accordance with Section 3(b) hereof and in the form annexed hereto as Exhibit B-2.

Master Servicer: Wells Fargo Bank, N.A. or its successors in interest.

Mortgage Loan: An individual Mortgage Loan which is the subject of this Agreement, each Mortgage Loan originally subject to this Agreement being identified on the Mortgage Loan Schedule, which Mortgage Loan includes, without limitation, the Custodial File which shall include the Mortgage Loan Documents set forth or described in Section 2 hereof.

Mortgage Loan Documents: The original documents as to each Mortgage Loan, as set forth or described in Section 2 hereof.

Mortgage Loan Schedule: The schedule attached hereto as Exhibit A, which shall identify each Mortgage Loan, as such schedule may be amended from time to time to reflect the addition of Mortgage Loans to, or the deletion of Mortgage Loans from, the Trust. Such schedule shall set forth, among other things, the following information with respect to each Mortgage Loan: (i) the Mortgage Loan identifying number; (ii) city, state and zip code of the Mortgaged Property; (iii) the original principal amount of the Mortgage Loan; (iv) the Mortgage Rate at origination; (v) the monthly payment of principal and interest at origination; and (vi) the Mortgage Pool in which such Mortgage Loan is included. The Servicer shall be responsible for providing the Indenture Trustee, the Custodian and the Master Servicer with all amendments to the Mortgage Loan Schedule.

Seller: Aames Investment Corporation under the Mortgage Loan Purchase and Assignment Agreement dated as of April 1, 2006, by and between Aames Investment Corporation, as Seller, and Financial Asset Securities Corp., as Purchaser.

Servicer: Aames Funding Corporation and any of its respective successors in interest and assigns.

Servicing Officer: Any officer of the Servicer involved in, or responsible for, the administration and servicing of Mortgage Loans, whose name and specimen signature appear on a list of Authorized Representatives annexed hereto as Exhibit F, furnished by the Servicer to the Indenture Trustee, the Master Servicer, the Custodian and the Depositor on the Closing Date, as such list may from time to time be amended.

Transfer and Servicing Agreement: As defined in the first RECITAL of this Agreement.

Trust: The Issuer, a Delaware statutory trust formed under the Trust Agreement.

Trust Agreement: The trust agreement dated as of May 1, 2006, between the Depositor and the Owner Trustee, as amended and restated on May 2, 2006, among the Depositor, the Trust Administrator and the Owner Trustee, as such may be amended or supplemented from time to time.

Section 2. Delivery of this Agreement; Delivery of the Custodial Files. On or prior to the Closing Date, the Seller shall deliver the Mortgage Loan Schedule to the Custodian. On the Closing Date, the Indenture Trustee, the Depositor and the Custodian shall, if necessary, amend the Mortgage Loan Schedule attached as Exhibit A hereto. Subsequent to the Closing Date, in the event of any repurchase or substitution of any Mortgage Loan, the Indenture Trustee shall instruct the Custodian in writing to amend the Mortgage Loan Schedule to reflect such withdrawals or substitutions of a Deleted Mortgage Loan from this Agreement and provide a copy of the applicable certificate from the Depositor or Master Servicer regarding such withdrawal of a Deleted Mortgage Loan from this Agreement; and in the case of any substitution of a Mortgage Loan, to reflect the addition of any Qualifying Substitute Mortgage Loan to this Agreement. The Mortgage Loans set forth in the Mortgage Loan Schedule from time to time shall be subject to this Agreement.

On or prior to the Closing Date, the Depositor shall deliver or cause to be delivered to and deposited with the Custodian the following original documents (as to each Mortgage Loan, the “Mortgage Loan Documents”) pertaining to each of the Mortgage Loans identified on the Mortgage Loan Schedule annexed hereto:

(a) the original Mortgage Note, endorsed without recourse either (A) in blank or (B) in the form of the Form of Endorsement set forth in Exhibit B-6 hereto (in each case, with all necessary intervening endorsements, as applicable), or with respect to any lost Mortgage Note, an original Lost Note Affidavit, in the form set forth in Exhibit B-5 hereto, stating that the original Mortgage Note was lost, misplaced or destroyed, together with a copy of the related Mortgage Note;

(b) the original of any guarantee executed in connection with the Mortgage Note assigned to the Indenture Trustee;

(c) the original Mortgage with evidence of recording thereon, and the original recorded power of attorney, if the Mortgage was executed pursuant to a power of attorney, with evidence of recording thereon or, if such Mortgage or power of attorney has been submitted for recording but has not been returned from the applicable public recording office, has been lost or is not otherwise available, a copy of such Mortgage or power of attorney, as the case may be, certified by an Officer’s Certificate of the Depositor to be a true and complete copy of the original submitted for recording, together with a written Opinion of Counsel acceptable to the Indenture Trustee and the Depositor that an original recorded Mortgage is not required to enforce the Indenture Trustee’s interest in the Mortgage Loan;

(d) an original Assignment of Mortgage, in form and substance acceptable for recording. The Mortgage shall be assigned either (A) in blank, without recourse, or (B) to “Deutsche Bank National Trust Company, as Indenture Trustee of the Aames Mortgage Investment Trust 2006-1,” without recourse or (C) to the order of the Indenture Trustee;

(e) if applicable, such original intervening assignments of Mortgage, notices of transfer or equivalent instruments (each, an “Intervening Assignment”), as may be necessary to show a complete chain of assignment from the originator or, in the case of an Intervening Assignment that has been lost, a written Opinion of Counsel to be delivered to the Depositor stating that such original Intervening Assignment is not required to enforce the Indenture Trustee’s interest in the Mortgage Loan;

(f) the original or a certified copy of lender’s title insurance policy (or, in lieu thereof, a commitment to issue such title insurance policy, with an original or a certified copy of such title insurance policy to follow as soon after the Closing Date as reasonably practicable) or attorney’s opinion of title and abstract of title;

(g) the original or copies of each assumption, modification, written assurance or substitution agreement, if any, or as to any such agreement which cannot be delivered prior to the Closing Date because of a delay caused by the public recording office where such assumption, modification or substitution agreement has been delivered for recordation, a photocopy of such assumption, modification or substitution agreement, pending delivery of the original thereof, together with an Officer’s Certificate of the Depositor certifying that the copy of such assumption, modification or substitution agreement delivered to the Custodian is a true copy and that the original of such agreement has been forwarded to the public recording office;

(h) the original Primary Mortgage Insurance Policy or certificate, or an electronic certification evidencing the existence of the Primary Mortgage Insurance Policy or certificate, if private mortgage guaranty insurance is required; and

(i) the original of any security agreement, chattel mortgage or equivalent instrument executed in connection with the Mortgage or as to any security agreement or equivalent instrument that cannot be delivered on or prior to the Closing Date because of a delay caused by the public recording office where such document has been delivered for recordation, a photocopy of such document, pending delivery of the original thereof, together with an Officer’s Certificate of the Depositor certifying that the copy of such security agreement, chattel mortgage or their equivalent delivered to the Custodian is a true copy and that the original of such document has been forwarded to the public recording office.

Any Opinion of Counsel delivered by the Depositor pursuant to this Section shall be accompanied by an Officer’s Certificate of the Depositor, upon which the Custodian shall be entitled to conclusively rely, to the effect that the Depositor has delivered such Opinion of Counsel to the Indenture Trustee. From time to time, the Indenture Trustee, the Master Servicer or the Servicer will forward to the Custodian additional documents pursuant to the Transfer and Servicing Agreement or additional documents evidencing an assumption, modification or extension of a Mortgage Loan approved by the Master Servicer or the Servicer in accordance with the Transfer and Servicing Agreement.

All such Mortgage Loan Documents held by the Custodian as to each Mortgage Loan shall constitute the related Custodial File.

For Mortgage Loans (if any) that have been prepaid in full after the Cut-off Date and prior to the Closing Date, the Depositor, in lieu of delivering the above documents, herewith delivers to the Custodian an Officer’s Certificate which shall include a statement to the effect that all amounts received in connection with such prepayment that are required to be deposited in the Collection Account pursuant to Section 4.02(d) of the Transfer and Servicing Agreement have been so deposited.

Section 3. Acceptance of Mortgage Loans by Custodian; Review of Documentation.

(a) The Custodian, by execution and delivery hereof, acknowledges receipt of the Custodial Files pertaining to the Mortgage Loans listed on the Mortgage Loan Schedule, subject to review thereof by the Custodian, on behalf of the Indenture Trustee, under this Section 3. The Custodian, on behalf of the Indenture Trustee, shall execute and deliver on the Closing Date an Initial Certification in the form annexed hereto as Exhibit B-1.

(b) Within 45 days after the Closing Date, the Custodian shall, on behalf of the Indenture Trustee and for the benefit of Holders of the Notes, review each Custodial File to ascertain whether all required documents set forth in Section 2 have been received and appear on their face to contain the requisite signatures by or on behalf of the respective parties thereto, and shall deliver to the Depositor, the Master Servicer, the Servicer and the Indenture Trustee an Interim Certification in the form annexed hereto as Exhibit B-2 to the effect that, as to each Mortgage Loan listed on the Mortgage Loan Schedule (other than any Mortgage Loan prepaid in full or any Mortgage Loan specifically identified in such certification as not covered by such certification), (i) all of the applicable documents specified in Section 2 of this Agreement are in its possession and (ii) such documents have been reviewed by it and appear on their face to relate to such Mortgage Loan. The Custodian shall review the documents to see that they are executed and are endorsed as specified in Section 2 hereof, but shall be under no duty or obligation to inspect, review or examine any such documents, instruments, certificates or other papers to determine that the same are valid, binding, legally effective, properly endorsed, genuine, enforceable or appropriate for the represented purpose or that they have actually been recorded or are in recordable form or that they are other than what they purport to be on their face. The Custodian shall have no responsibility for verifying the genuineness or the legal effectiveness of or authority for any signatures of or on behalf of any party or endorser or for the perfection or priority of any document. Such Interim Certification shall supersede all Initial Certifications relating to the same Custodial File.

(c) If in the course of the review described in paragraph (b) above the Custodian discovers any document or documents constituting a part of a Custodial File that is missing, does not appear regular on its face (i.e., is mutilated, damaged, defaced, torn or otherwise physically altered except to alterations which the related borrower purportedly has given its written consent, as evidenced in writing) or appears to be unrelated to a Mortgage Loan identified on the Mortgage Loan Schedule (each, a “Material Defect”), the Custodian shall promptly identify the Mortgage Loan to which such Material Defect relates in the Interim Certificate delivered to the Depositor, the Master Servicer, the Servicer and the Indenture Trustee.

(d) Within 180 days following the Closing Date, the Custodian shall deliver to the Depositor, the Master Servicer, the Servicer and the Indenture Trustee a Final Certification substantially in the form annexed hereto as Exhibit B-3 evidencing the completeness of the Custodial Files in its possession or control. Such Final Certification shall supersede all Initial and Interim Certifications relating to the same Custodial File.

(e) For purposes of the determinations required to be made by the Custodian pursuant to paragraphs (a) through (d) of this Section 3, the Custodian shall be entitled to conclusively rely upon the diskette, tape or other electronic media (the “Data File”) provided by or on behalf of the Depositor with respect to the Mortgage Loans as to whether (i) any guarantee was executed in connection with any Mortgage Loan, (ii) any assumption, modification or substitution agreement was executed in connection with any Mortgage Loan, (iii) primary mortgage guaranty insurance is required with respect to any Mortgage Loan or (iv) any security agreement or equivalent instrument was executed in connection with any Mortgage Loan.

(f) If, during the term of this Agreement, the Custodian discovers any Material Defect with respect to any Custodial File, the Custodian shall give written specifications of such Material Defect to the Indenture Trustee.

(g) In order to comply with laws, rules, regulations and executive orders in effect from time to time applicable to banking institutions, including those relating to the funding of terrorist activities and money laundering (“Applicable Law”), the Indenture Trustee is required to obtain, verify and record certain information relating to individuals and entities which maintain a business relationship with the Indenture Trustee. Accordingly, each of the parties agrees to provide to the Indenture Trustee upon its request from time to time such identifying information and documentation as may be available for such party in order to enable the Indenture Trustee to comply with Applicable Law.

Section 4. Obligations of the Custodian; Ownership of Mortgage Loan Documents. With respect to each Custodial File that is delivered to the Custodian or that comes into the possession of the Custodian pursuant to this Agreement, the Custodian acknowledges and agrees that the Custodian is the custodian for the Indenture Trustee exclusively and that the Indenture Trustee of the Mortgage Loans has the legal right to, at any time and in its absolute discretion, direct, in writing, the Custodian to release any Custodial File or all Custodial Files to the Indenture Trustee or the Indenture Trustee’s designee, as the case may be, at such place or places as the Indenture Trustee may designate. The Custodian shall hold each Custodial File received by it for the exclusive use and benefit of the Indenture Trustee, and shall make disposition thereof only in accordance with this Agreement and upon written instructions or certifications of a Servicing Officer or the written instructions furnished by the Indenture Trustee. The Custodian shall segregate and maintain continuous custody of all mortgage documents constituting the Custodial File in secure and fire resistant facilities in accordance with customary standards (two-hour fire rated) for such custody. The Custodian shall conduct, or cause to be conducted, periodic audits of the Custodial Files held by it under this Agreement in accordance with this Agreement and of the related accounts, records and computer systems in such a manner as shall allow the Indenture Trustee to verify the accuracy of the Custodian’s record keeping. The Custodian shall not be responsible to verify (i) the validity, legality, enforceability, recordability, perfection, priority, sufficiency, due authorization or genuineness of any document in the Custodial File or of any Mortgage Loans or (ii) the collectability, insurability, effectiveness (including the authority or capacity of any Person to execute or issue any document in the Custodial File), or suitability of any Mortgage Loan unless specified otherwise in this Agreement. The Custodian shall promptly report to the Indenture Trustee any failure on its part to hold the Custodial Files and maintain its accounts, records and computer systems as herein provided and promptly take appropriate action to remedy such failure.

Section 5. Release of Custodial Files.

(a) Upon (i) becoming aware of the payment in full of any Mortgage Loan, or (ii) the receipt by the Servicer of a notification that payment in full has been escrowed in a manner customary for such purposes, the Servicer promptly shall notify the Custodian by a certification (which certification will include a statement to the effect that all amounts received in connection with such payment that are required to be deposited in the custodial account maintained by the Servicer pursuant to the Transfer and Servicing Agreement have been so deposited) of a Servicing Officer and shall request the Custodian, on the request for release and receipt substantially in the form of Exhibit B-4, to deliver to the Servicer the related Custodial File. Upon receipt of such certification and request, the Custodian shall promptly release within three (3) Business Days the related Custodial File to the Servicer and the Custodian shall have no further responsibility with regard to such Custodial File.

(b) The Custodian shall, upon request of the Master Servicer or the Servicer and delivery to the Custodian of a request for release and receipt signed by a Servicing Officer substantially in the form of Exhibit B-4, promptly release within three (3) Business Days of receipt of such request the related Custodial File held in its possession or control to the Master Servicer or the Servicer. Such request for release and receipt shall obligate the Master Servicer or the Servicer to return the Custodial File to the Custodian when the need therefor by the Master Servicer or the Servicer no longer exists (but no later than the time specified in Exhibit B-4) unless the Mortgage Loan shall be liquidated, in which case, upon receipt of a certificate of a Servicing Officer similar to that hereinabove specified, the Custodial File shall be released by the Custodian to the Master Servicer or the Servicer.

Section 6. Fees of Custodian. All fees of the Custodian for its services under this Agreement, and any expenses incurred but not paid by the Custodian (including but not limited to counsel fees), will be paid by the Seller on behalf of the Depositor (and by its acknowledgement hereof, the Seller agrees to pay). The Custodian agrees that it will continue to act as Custodian hereunder and perform its duties hereunder, and if after a 60-day period the Seller has failed to pay the Custodian’s fees, the Custodian may seek repayment of such fees from the Trust Administrator who will pay such fees from amounts on deposit in the Collection Account prior to any distributions to Noteholders pursuant to Section 5.08 of the Transfer and Servicing Agreement.

Section 7. Removal of Custodian With Respect to Some or All of the Mortgage Loans. With or without cause, the Indenture Trustee may, upon 60 days’ notice, remove and discharge the Custodian from the performance of its duties under this Agreement with respect to any or all of the Mortgage Loans by written notice from the Indenture Trustee to the Custodian, with a copy to the Depositor, the Master Servicer and the Servicer and delivery of all outstanding Final Certifications. Having given notice of such removal, the Indenture Trustee promptly shall, by written instrument, with a copy to the Depositor and an original to the successor custodian or document custodian, (i) appoint a successor custodian to act on behalf of the Indenture Trustee to replace the Custodian under this Agreement, (ii) designate a document custodian to receive the Custodial Files with respect to the Mortgage Loans removed from this Agreement, or (iii) take delivery of the Custodial Files. The Indenture Trustee’s appointment of a successor custodian or document custodian shall be subject to the consent of the Depositor and the Seller, which consent shall not be unreasonably withheld. In the event of any such removal, the Custodian shall promptly transfer to the successor custodian, as directed, all affected Custodial Files. In the event of removal of the Custodian for cause and the appointment of a successor custodian under this Agreement, the expenses of transferring the Custodial Files to the successor custodian shall be at the expense of the Custodian. In the event of removal of the Custodian without cause by the Indenture Trustee and the appointment of a successor custodian under this Agreement, the Trust Estate shall be responsible for the expenses of transferring the Custodial Files to the successor custodian. In all cases, the fees of the successor custodian hereunder shall be paid by the Seller on behalf of the Depositor (and subject to the consent of the Seller if such fees exceed the fees payable to the previous Custodian) or, if the Seller fails to pay such fees, then as provided in Section 6 above. Notwithstanding the foregoing, this Agreement shall remain in full force and effect with respect to any Mortgage Loans for which this Agreement is not terminated hereunder.

Section 8. Transfer of Custodial Files Upon Termination. If the Custodian is notified by the Indenture Trustee that the Transfer and Servicing Agreement has been terminated, upon written request of the Indenture Trustee, the Custodian shall release to such Persons as the Indenture Trustee shall designate, in writing, the Custodial Files relating to such Mortgage Loans as the Indenture Trustee shall request.

Section 9. Examination of Custodial Files. Upon reasonable (but in no event less than 48 hours) prior notice to the Custodian, the Servicer, the Master Servicer and the Indenture Trustee and their respective agents, accountants, attorneys, auditors and prospective purchasers will be permitted during the Custodian’s normal business hours to examine the Custodial Files, documents, records and other papers in the possession of or under the control of the Custodian relating to any or all of the Mortgage Loans at the expense of the requesting party.

Section 10. Insurance of Custodian. At its own expense, the Custodian shall maintain at all times during the existence of this Agreement and keep in full force and effect fidelity insurance, theft of documents insurance, and errors and omissions insurance (which includes forgery insurance). All such insurance shall be in amounts, with standard coverage and subject to deductibles, as is customary for insurance typically maintained by banks which act as custodian and in amounts and with insurance companies reasonably acceptable to the Indenture Trustee. A certificate of the respective insurer as to each such policy, with a copy of such policy attached, shall be furnished to the Indenture Trustee, upon request, containing the statement of the insurer or endorsement evidencing that such insurance shall not terminate prior to receipt by the Indenture Trustee, by registered mail, of 30 days’ prior written notice thereof.

Section 11. Counterparts. For the purpose of facilitating the execution of this Agreement as herein provided and for other purposes, this Agreement may be executed simultaneously in any number of counterparts, each of which counterparts shall be deemed to be an original, and such counterparts shall constitute one and the same instrument.

Section 12. Periodic Statements. On or before December 31 of each year, or upon the request of the Indenture Trustee at any other time, the Custodian shall provide to the Indenture Trustee a list of all the Mortgage Loans for which the Custodian holds a Custodial File pursuant to this Agreement. Such list may be in the form of a copy of the Mortgage Loan Schedule with manual additions and deletions to specifically denote any Mortgage Loans substituted, paid off or repurchased since the date of this Agreement.

Section 13. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS, AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

Section 14. Copies of Mortgage Documents. Upon the request of the Master Servicer, the Servicer or the Indenture Trustee and at the reasonable expense of the Seller, the Custodian shall provide the requestor with copies of the Mortgage Notes, Mortgages, Assignments of Mortgages and other documents relating to any or all of the Mortgage Loans held by the Custodian.

Section 15. No Adverse Interest of Custodian. By execution of this Agreement, the Custodian represents and warrants that it currently holds, and during the existence of this Agreement shall hold, no adverse interest, by way of security or otherwise, in any Mortgage Loan, and hereby waives and releases any such interest which it may have in any Mortgage Loan as of the date hereof.

Section 16. Resignation by Custodian. The Custodian may resign as custodian under this Agreement upon at least 60 days’ notice to the Depositor, the Seller, the Master Servicer, the Servicer and the Indenture Trustee. If the Custodian resigns without reasonable cause, the costs associated with the resignation of the Custodian, including all costs associated with the transfer of the Custodial Files, shall be borne by the Custodian. In the event of such resignation, the Indenture Trustee shall promptly appoint a successor custodian to serve as Custodian hereunder. Upon such appointment the Custodian shall promptly transfer to the successor custodian, as directed, all Custodial Files being administered under this Agreement. If no successor is so appointed by the end of such 60-day period, the Custodian shall deliver all Custodial Files to the Indenture Trustee or as the Indenture Trustee directs. The Seller shall be responsible for the payment or reimbursement of such successor custodian’s reasonable fees and expenses in connection with the performance of such successor custodian’s obligations under this Agreement; provided that such fees will be subject to the consent of the Seller if such fees exceed the fees paid to the resigning servicer.

Section 17. Term of Agreement. Unless terminated pursuant to Section 7, Section 8 or Section 16 hereof, this Agreement shall terminate upon the final payment or other liquidation (or advance with respect thereto) of the last Mortgage Loan or the disposition of all property acquired upon foreclosure or deed in lieu of foreclosure of any Mortgage Loan, and the final remittance of all funds due the Indenture Trustee under the Transfer and Servicing Agreement. In such event, all documents remaining in the Custodial Files shall be released in accordance with the written instructions of the Indenture Trustee.

Section 18. Notices. Any demand, notice, consent, report, statement or any other communication hereunder shall be deemed to have been received on the date delivered to or received by the addressee (as evidenced, in the case of registered or certified mail, by the date noted on the return receipt). All demands, notices, consents, reports, statements and any other communications hereunder shall be in writing and shall be deemed to have been duly given if mailed, by registered or certified mail, return receipt requested, or, if by other means, when received by the recipient party at the address shown below, or at such other addresses as may hereafter be furnished to the other parties by like notice:

(i)	if to the Custodian:

Deutsche Bank National Trust Company

1761 East St. Andrew Place

Santa Ana, CA, 92705

Attention: Mortgage Custody - AA0601

or such other address as may hereafter be furnished to the Indenture Trustee in writing by the Custodian;

(ii)	if to the Master Servicer:

Wells Fargo Bank, N.A.

9062 Old Annapolis Road

Columbia, Maryland 21045

Attention: Aames 2006-1

Telephone: (410) 884-2000

Facsimile: (410) 715-2380

(iii)

if to the Trust Administrator:

Wells Fargo Bank, N.A.

9062 Old Annapolis Road

Columbia, Maryland 21045

Attention: Aames 2006-1

Telephone: (410) 884-2000

Facsimile: (410) 715-2380

(iv)	if to the Indenture Trustee:

Deutsche Bank National Trust Company

1761 East St. Andrew Place

Santa Ana, CA 92705

Attention: Trust Administration - AA0601

with a copy to the Depositor and the Seller:

Financial Asset Securities Corp.

600 Steamboat Road

Greenwich, Connecticut 06830

Aames Investment Corporation

350 South Grand Avenue, 43^rd Floor

Los Angeles, CA 90071

Attention: Executive Vice President - Capital Markets

Telephone: (323) 210-5335

Facsimile: (323) 210-5066

with a copy to:

General Counsel

Telephone: (323) 210-4871

Facsimile: (323) 210-5026

(v)	if to the Servicer:

Aames Funding Corporation

350 South Grand Avenue, 43^rd Floor

Los Angeles, CA 90071

Attention: Executive Vice President - Capital Markets

Telephone: (323) 210-5335

Facsimile: (323) 210-5066

with a copy to:

General Counsel

Telephone: (323) 210-4871

Facsimile: (323) 210-5026

Section 19. Successors and Assigns. This Agreement shall inure to the benefit of the successors and assigns of the parties hereto, subject to the limitations herein provided. The Indenture Trustee shall have the right, subject to the terms of the Transfer and Servicing Agreement, without the consent of the Custodian or the Depositor (but with notice in writing to the Custodian), to assign, in whole or in part, its interest under this Agreement with respect to the Mortgage Loans to one or more parties including the Depositor and affiliates thereof, each of which in turn may assign its interest under this Agreement with respect to the Mortgage Loans to one or more parties, and such parties shall succeed to the rights of the Indenture Trustee under this Agreement with respect to the applicable Mortgage Loans. All references to the Indenture Trustee in this Agreement shall be deemed to include its assignee or successor and any subsequent assignee, specifically including the Depositor and the Indenture Trustee. The Custodian shall have the right to assign, in whole or in part, its interest under this Agreement only with the prior written consent of the Indenture Trustee, the Seller and the Depositor or in accordance with Section 16 hereof.

Section 20. Limitation on Liability.

(a) Neither the Custodian nor any of its directors, officers, agents or employees, shall be liable for any action taken or omitted to be taken by it or them hereunder or in connection herewith in good faith and believed (which belief may be based upon the opinion or advice of counsel selected by it in the exercise of reasonable care) by it or them to be within the purview of this Agreement, except for its or their own negligence, lack of good faith or willful misconduct. The Custodian and any director, officer, employee or agent of the Custodian 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. In no event shall the Custodian or its directors, officers, agents and employees be held liable for any special, indirect, incidental, punitive or consequential damages resulting from any action taken or omitted to be taken by it or them hereunder or in connection herewith even if advised of the possibility of such damages.

(b) Notwithstanding anything herein to the contrary, the Custodian agrees to indemnify the Trust, the Depositor, the Seller, the Master Servicer, the Servicer, the Indenture Trustee and each of their respective officers, directors and agents for any and all liabilities, obligations, losses, damages, payments, costs or expenses of any kind whatsoever that may be imposed on, incurred by or asserted against the Trust, the Depositor, the Seller, the Indenture Trustee, the Master Servicer or the Servicer, due to any act or omission by the Custodian with respect to the Custodial Files which constitutes negligence, lack of good faith or willful misconduct on the part of the Custodian; provided, however, that the Custodian shall not be liable to any of the foregoing Persons for any amount and any portion of any such amount resulting from the willful misconduct, lack of good faith or negligence of such Person. The provisions of this Subsection 20(b) shall survive the termination of this Custodial Agreement.

(c) The Issuer hereby agrees to indemnify and defend the Custodian and its directors, officers, employees and agents for any loss, liability or expense incurred without negligence, willful misconduct, or bad faith on their part, arising out of, or in connection with, the acceptance or administration of the custodial arrangement created hereunder, including the costs and expenses of defending themselves against any claim or liability in connection with the exercise or performance of any of their powers or duties hereunder.

Section 21. Custodian Obligations Regarding Genuineness of Documents. In the absence of bad faith on the part of the Custodian, the Custodian may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any request, instructions, certificate, opinion or other document furnished to the Custodian, reasonably believed by the Custodian to be genuine and to have been signed or presented by the proper party or parties and conforming to the requirements of this Agreement; provided that the provisions of this Section shall not in any manner limit or reduce the responsibilities of the Custodian under Section 3 hereof.

Section 22. Shipment of Documents. Written instructions as to the method of shipment and the shipper(s) that the Custodian is directed to utilize in connection with transmission of Mortgage Loan Documents in the performance of the Custodian’s duties hereunder shall be delivered by the Seller to the Custodian prior to any shipment of any Mortgage Loan Documents hereunder. The Seller will arrange for the provision of such services at its sole cost and expense (or, at the Custodian’s option, reimburse the Custodian for all costs and expenses incurred by the Custodian consistent with such instructions) and will maintain such insurance against loss or damage to Custodial Files and Mortgage Loan Documents as the Servicer deems appropriate. Without limiting the generality of the provisions of Section 20 above, it is expressly agreed that in no event shall the Custodian have any liability for any losses or damages to any person or property, arising out of actions of the Custodian properly taken pursuant to instructions of the Indenture Trustee or the Seller. In the event the Custodian does not receive written instructions as to the method of shipment and shippers from the Seller, the Custodian is hereby authorized to utilize a nationally recognized courier service and be reimbursed therefor.

Section 23. Authorized Representatives. Each individual designated as an authorized representative of the Custodian, the Indenture Trustee, the Master Servicer or the Servicer (an “Authorized Representative”) is authorized to give and receive notices, requests and instructions and to deliver certificates and documents in connection with this Custodial Agreement on behalf of the Custodian, the Indenture Trustee, the Master Servicer and the Servicer, respectively, and the specimen signature for each such Authorized Representative of the Custodian, the Indenture Trustee, the Master Servicer and the Servicer initially authorized hereunder is set forth on Exhibits C, D, E and F, respectively. From time to time, the Custodian, the Indenture Trustee, the Master Servicer or the Servicer may, by delivering to the others a revised exhibit, change the information previously given pursuant to this Section 23, but each of the parties hereto shall be entitled to rely conclusively on the then current exhibit until receipt of a superseding exhibit.

Section 24. Amendments. This Agreement may be amended or modified from time to time by the Issuer, the Indenture Trustee and the Custodian in writing, with prior notice by the Indenture Trustee to the Master Servicer, the Servicer, the Seller and the Depositor. In the event of an amendment to the Transfer and Servicing Agreement, the Depositor shall provide a copy of such amendment to the Custodian. No amendments or modifications to the Transfer and Servicing Agreement that have an impact on this Agreement shall be effective unless agreed to in writing by the Custodian.

Section 25. Limited Role of Owner Trustee; Successor Owner Trustee.

(a) The execution and delivery of this Agreement by the undersigned Owner Trustee on behalf of the Issuer is solely and strictly in its capacity as Owner Trustee under the Trust Agreement, and not individually, and has been undertaken at the direction of the Depositor. It is hereby expressly acknowledged that any obligations, liabilities, covenants, duties, representations and warranties hereunder are those of the Issuer only, and not those of the Owner Trustee and Wilmington Trust Company in its individual capacity. There shall be no individual or corporate liability against or on the part of the Owner Trustee (or any of its officers, directors or employees) under this Agreement, and there shall be no recourse against the Owner Trustee in its individual or corporate capacity (or any of its directors, officers or employees), or against any of its properties or assets, for recovery of or as a result of any claim, debt, liability or obligation (whether of payment or performance) of or against the Issuer or the Owner Trustee under or pursuant to this Agreement (whether arising out of or relating to any covenant, agreement, representation or warranty, or otherwise). Recourse against the Owner Trustee for any claims, liabilities, debts or obligations under this Agreement is limited to the assets and properties of the trust established by the Trust Agreement.

(b) It is hereby acknowledged that the rights and remedies of the Owner Trustee under or pursuant to this Agreement shall automatically be transferred to and vest in any successor trustee under the Trust Agreement, in the event of the resignation or removal of the Owner Trustee as owner trustee thereunder.

Section 26. Eligibility Requirements for the Custodian. The Custodian and any successor custodian shall at all times (i) be a depository institution subject to supervision or examination by a federal or state authority, (ii) have a combined capital and surplus of at least $15,000,000 and (iii) be qualified to do business in all applicable jurisdictions in which it engages in business. In case at any time the Custodian shall cease to be eligible in accordance with the provisions of this Section, the Custodian shall resign immediately in the manner and with the effect specified in Section 16.

Section 27. Compliance with Regulation AB.

(a) Intent of the Parties; Reasonableness. The Custodian acknowledges and agrees that the purpose of this Section 27 is to facilitate compliance by the Depositor with the provisions of Regulation AB and related rules and regulations of the Commission. The Depositor shall not exercise its right to request delivery of information or other performance under these provisions other than in good faith, or for purposes other than compliance with the 1933 Act, the Exchange Act and the rules and regulations of the Commission under the 1933 Act and the Exchange Act. The Custodian acknowledges that interpretations of the requirements of Regulation AB may change over time, due to interpretive guidance provided by the Commission or its staff and agrees to comply with reasonable requests made by the Depositor in good faith for delivery of information under these provisions on the basis of evolving interpretations of Regulation AB. The Custodian shall cooperate reasonably with the Depositor to deliver to the Depositor (including any of its assignees or designees), any and all disclosure, statements, reports, certifications, records and any other information necessary in the reasonable, good faith determination of the Depositor to permit the Depositor to comply with the provisions of Regulation AB.

(b) Additional Representations and Warranties of the Custodian.

(i) The Custodian hereby represents and warrants that the information set forth in the Free Writing Prospectus and the Prospectus Supplement under the caption “The Indenture Trustee and Custodian” (the “Custodian Disclosure”) does not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.

(ii) The Custodian shall be deemed to represent to the Depositor as of the date hereof and on each date on which information is provided to the Depositor under Section 27(c) that, except as disclosed in writing to the Depositor prior to such date: (i) there are no material legal or governmental proceedings pending (or known to be contemplated) against it; and (ii) there are no affiliations of a type described in Item 1119(a) of Regulation AB relating to the Custodian with respect to the Depositor or any of the following and their affiliates: Aames Mortgage Investment Trust 2006-1, the Seller, the Master Servicer, the Servicer, the Trust Administrator, Bear Stearns Financial Products Inc., in its capacity as Swap Provider, or any successor thereto or other material party as identified in writing to the Custodian by the Seller (each a “Transaction Party”).

(iii) If so requested by the Depositor on any date following the Closing Date, the Custodian shall, within five Business Days following such request, confirm in writing the accuracy of the representations and warranties set forth in paragraph (ii) of this Section 27(b) or, if any such representation and warranty is not accurate as of the date of such confirmation, provide reasonably adequate disclosure of the pertinent facts, in writing, to the requesting party. Any such request from the Depositor shall not be given more than once each calendar quarter, unless the Depositor shall have a reasonable basis for a determination that any of the representations and warranties may not be accurate.

(c) Additional Information to Be Provided by the Custodian. For so long as the Notes are outstanding, for the purpose of satisfying the Depositor’s reporting obligation under the Exchange Act with respect to any class of Notes, the Custodian shall (a) notify the Depositor and the Trust Administrator in writing of any material litigation or governmental proceedings pending against the Custodian that would be material to Noteholders, and provide to the Depositor and the Trust Administrator a written description of such proceedings and (b) notify the Depositor and the Trust Administrator of any affiliations of a type described in Item 1119(a) of Regulation AB relating to the Custodian with respect to the Depositor or any Transaction Party and provide to the Depositor and the Trust Administrator a written description of such affiliations. Any notices and descriptions required under this Section 27(c) shall be given no later than five Business Days prior to the Determination Date following the month in which the Custodian has knowledge of the occurrence of the relevant event. As of the date the Depositor or Trust Administrator files each Report on Form 10-D or Form 10-K with respect to the Notes, the Custodian will be deemed to represent that any information previously provided under this Section 27(c), if any, is materially correct and does not have any material omissions unless the Custodian has provided an update to such information.

(d) Report on Assessment of Compliance and Attestation. On or before March 15^th of each calendar year, beginning in 2007 until and unless a Form 15 suspension notification has been filed with respect to the Trust, the Custodian shall, at its own expense:

(i) deliver to the Trust Administrator a report (in form and substance reasonably satisfactory to the Trust Administrator) regarding the Custodian’s assessment of compliance with the Servicing Criteria (set forth in Exhibit G) applicable to it during the immediately preceding calendar year, as required under Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation AB. Each such report shall include (a) a statement of the Custodian’s responsibility for assessing compliance with the Servicing Criteria applicable to it, (b) a statement that the Custodian used the criteria applicable to it identified in Exhibit G to assess compliance with the applicable Servicing Criteria, (c) disclosure of any material instance of noncompliance identified by the Custodian, and (d) a statement that a registered public accounting firm has issued an attestation report on the Custodian’s assessment of compliance with the applicable Servicing Criteria, which report shall be delivered by the Custodian as provided in this Section 27(d). Such report shall be addressed to the Depositor and signed by an authorized officer of the Custodian, and shall address each of the applicable Servicing Criteria; and

(ii) deliver to the Trust Administrator a report of a registered public accounting firm (who may also render other services to the Custodian), which is a member of the American Institute of Certified Public Accountants, that attests to, and reports on, the assessment of compliance made by the Custodian and delivered pursuant to the preceding paragraph. Such attestation shall be in accordance with Rules 1-02(a)(3) and 2-02(g) of Regulation S-X under the 1933 Act and the Exchange Act.

(iii) The Custodian has not and shall not engage any subcontractor which is “participating in the servicing function” within the meaning of Item 1122 of Regulation AB.

(e) Indemnification; Remedies.

The Custodian shall indemnify the Depositor and the Trust Administrator, each affiliate of the Depositor and the Trust Administrator or each Person who controls any of such parties (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act)(each, an “Indemnified Party”); and the respective present and former directors, officers, employees and agents of each of the foregoing, and shall hold each of them harmless from and against any losses, damages, penalties, fines, forfeitures, legal fees and expenses and related costs, judgments, and any other costs, fees and expenses that any of them may sustain arising out of or based upon (i) any untrue statement of a material fact contained or alleged to be contained in the Custodian Disclosure and any information, report or certification provided under this Section 27(c) and (d)(i) by or on behalf of the Custodian (collectively, the “Custodian Information”), or the omission or alleged omission to state in the Custodian Information a material fact required to be stated in the Custodian Information or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; or (ii) any failure by the Custodian to deliver any information, report, certification or accountants’ attestation when and as required to be delivered under this Section 27. This indemnification shall survive the termination of this Agreement or the termination, resignation or removal of the Custodian.

In the case of any failure of performance described in clause (ii) of the immediately preceding paragraph, the Custodian shall promptly reimburse the Depositor for all costs reasonably incurred by the Depositor in order to obtain the information, report, certification, accountants’ letter or other material not delivered as required by the Custodian.

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

[SIGNATURE PAGE IMMEDIATELY FOLLOWS]

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

DEUTSCHE BANK NATIONAL TRUST COMPANY, as Custodian

By:
Name:
Title:


By:
Name:
Title:


DEUTSCHE BANK NATIONAL TRUST COMPANY, not in its individual capacity but solely as Indenture Trustee


By:
Name:
Title:


AAMES MORTGAGE INVESTMENT TRUST 2006-1, as Issuer
By:	WILMINGTON TRUST COMPANY, not in its individual capacity but solely as Owner Trustee

By:
Name:
Title:

Acknowledged: AAMES INVESTMENT CORPORATION, as Seller

By:
Name:
Title:


FINANCIAL ASSET SECURITIES CORP., as Depositor


By:
Name:
Title:


AAMES FUNDING CORPORATION, as Servicer


By:
Name:
Title:


WELLS FARGO BANK, N.A., as Master Servicer


By:
Name:
Title:

WELLS FARGO BANK, N.A., as Trust Administrator


By:
Name:
Title:

EXHIBIT A

MORTGAGE LOAN SCHEDULE

EXHIBIT B-1

FORM OF INITIAL CERTIFICATION

	__________________________________ [Date]

Deutsche Bank National Trust Company 1761 East St. Andrew Place Santa Ana, CA, 92705 Attention: Trust Administration AA0601	Wells Fargo Bank, N.A. 9062 Old Annapolis Road Columbia, MD 21045 Attention: Aames Mortgage Investment Trust 2006-1

Financial Asset Securities Corp. 600 Steamboat Road Greenwich, Connecticut 06830 Attention: Legal	Aames Funding Corporation 350 South Grand Avenue, 43^rd Floor Los Angeles, CA 90071 Attention: Aames Mortgage Investment Trust 2006-1

Re:

Custodial Agreement dated as of April 1, 2006 (the “Custodial Agreement”), among Deutsche Bank National Trust Company, as Indenture Trustee, Aames Mortgage Investment Trust 2006-1, as Issuer, and Deutsche Bank National Trust Company, as Custodian, with respect to Aames Mortgage Investment Trust 2006-1 Mortgage Backed Notes

Ladies and Gentlemen:

In accordance with Section 3 of the Custodial Agreement, subject to review of the contents thereof, the undersigned, as Custodian, hereby certifies that it has received a Custodial File pertaining to each Mortgage Loan listed on the Mortgage Loan Schedule attached as Exhibit A to the Custodial Agreement, subject to any exceptions noted on Schedule I hereto.

Capitalized words and phrases used but not otherwise defined herein shall have the respective meanings assigned to them in the Custodial Agreement. This Certification is subject in all respects to the terms of Section 3 of the Custodial Agreement and the Custodial Agreement sections cross-referenced therein.

DEUTSCHE BANK NATIONAL TRUST COMPANY, as Custodian

By:
Name:
Title:

EXHIBIT B-2

FORM OF INTERIM CERTIFICATION

	___________________________________ [Date]

Deutsche Bank National Trust Company 1761 East St. Andrew Place Santa Ana, CA, 92705 Attention: Trust Administration AA0601	Wells Fargo Bank, N.A. 9062 Old Annapolis Road Columbia, MD 21045 Attention: Aames Mortgage Investment Trust 2006-1

Financial Asset Securities Corp. 600 Steamboat Road Greenwich, Connecticut 06830 Attention: Legal	Aames Funding Corporation 350 South Grand Avenue, 43^rd Floor Los Angeles, CA 90071 Attention: Aames Mortgage Investment Trust 2006-1

Re:

Ladies and Gentlemen:

In accordance with Section 3 of the Custodial Agreement, the undersigned, as Custodian, hereby certifies that as to each Mortgage Loan listed on the Mortgage Loan Schedule attached as Exhibit A thereto (other than any Mortgage Loan paid in full or listed on Schedule I hereto) it received the applicable documents listed in Section 2 of the Custodial Agreement as provided therein.

The undersigned hereby certifies that as to each Mortgage Loan listed on the Mortgage Loan Schedule attached as Exhibit A thereto (other than any Mortgage Loan paid in full or listed on Schedule I hereto), it has reviewed the documents listed in Section 2 of the Custodial Agreement and, subject to Section 3 of the Custodial Agreement, has determined that each such document appears regular on its face, appears to contain the required signatures by or on behalf of the mortgagor and the mortgagee, and appears to relate to the Mortgage Loan identified in such documents. Such interim certification shall supersede the initial certification relating to the same custodial file.

Capitalized words and phrases used but not otherwise defined herein shall have the respective meanings assigned to them in the Custodial Agreement. This Certification is qualified in all respects by the terms of the Custodial Agreement including, but not limited to, Section 3 thereof.

DEUTSCHE BANK NATIONAL TRUST COMPANY, as Custodian

By:
Name:
Title:

EXHIBIT B-3

FORM OF FINAL CERTIFICATION

	________________________________ [Date]

Deutsche Bank National Trust Company 1761 East St. Andrew Place Santa Ana, CA, 92705 Attention: Trust Administration AA0601	Wells Fargo Bank, N.A. 9062 Old Annapolis Road Columbia, MD 21045 Attention: Aames Mortgage Investment Trust 2006-1

Financial Asset Securities Corp. 600 Steamboat Road Greenwich, Connecticut 06830 Attention: Legal	Aames Funding Corporation 350 South Grand Avenue, 43^rd Floor Los Angeles, CA 90071 Attention: Aames Mortgage Investment Trust 2006-1

Re:

Ladies and Gentlemen:

In accordance with Section 3 of the Custodial Agreement, the undersigned, as Custodian, hereby certifies that as to each Mortgage Loan listed on the Mortgage Loan Schedule attached as Exhibit A thereto (other than any Mortgage Loan paid in full or listed on Schedule I hereto) it has received the applicable documents listed in Section 2 of the Custodial Agreement.

The undersigned hereby certifies that as to each Mortgage Loan listed on the Mortgage Loan Schedule attached as Exhibit A to the Custodial Agreement (other than any Mortgage Loan paid in full or listed on Schedule I hereto), it has reviewed the documents listed in Section 2 of the Custodial Agreement and, subject to Section 3 of the Custodial Agreement, has determined that each such document appears to be complete and, based on an examination of such documents, the information set forth in items (i) through (v) of the definition of Mortgage Loan Schedule is correct. This final certification shall supersede all initial and interim certifications relating to the same custodial file.

DEUTSCHE BANK NATIONAL TRUST COMPANY, as Custodian

By:
Name:
Title:

EXHIBIT B-4

REQUEST FOR RELEASE OF DOCUMENTS AND RECEIPT

________________________________

[Date]

Deutsche Bank National Trust Company

1761 East St. Andrew Place

Santa Ana, California 92705

Attention: Mortgage Custody - Aames 2006-1

In connection with the administration of the mortgages held by you as Custodian under a certain custodial agreement dated as of April 1, 2006 among Deutsche Bank National Trust Company, as Indenture Trustee, Aames Mortgage Investment Trust 2006-1, and you, as Custodian (the “Custodial Agreement”), the undersigned Master Servicer (or Servicer) hereby requests a release of the Custodial File held by you as Custodian with respect to the following described Mortgage Loan for the reason indicated below.

Mortgagor’s Name:

Address:

Loan No.:

Reason for requesting file:

1. Mortgage Loan paid in full. The Master Servicer (or Servicer) hereby certifies that all amounts received in connection with the loan have been or will be credited to the Collection Account (or the Custodial Account) and remitted to (as applicable) the Trust Administrator for deposit into the Note Account pursuant to the Transfer and Servicing Agreement.

2. The Mortgage Loan is being foreclosed.

3. Mortgage Loan substituted. The Master Servicer (or Servicer) hereby certifies that a Qualifying Substitute Mortgage Loan has been assigned and delivered to you along with the related Custodial File pursuant to the Transfer and Servicing Agreement.

4. Mortgage Loan repurchased. The Master Servicer (or Servicer) hereby certifies that the Purchase Price has been credited to the Collection Account (or the Custodial Account) and remitted to the Trust Administrator for deposit into the Note Account pursuant to the Transfer and Servicing Agreement.

5. Other. (Describe)

The undersigned acknowledges that the above Custodial File will be held by the undersigned in accordance with the provisions of the Transfer and Servicing Agreement and will be returned to you within ten (10) days of our receipt of the Custodial File, except if the Mortgage Loan has been paid in full, or repurchased or substituted for a Qualifying Substitute Mortgage Loan (in which case the Custodial File will be retained by us permanently) and except if the Mortgage Loan is being foreclosed (in which case the Custodial File will be returned when no longer required by us for such purpose).

Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the Custodial Agreement.


[Name of Master Servicer (or Servicer)]

By:
Name:
Title:	Servicing Officer

EXHIBIT B-5

FORM OF LOST NOTE AFFIDAVIT AND AGREEMENT

I, _________________________________________, being duly sworn, do hereby state under oath that:

1. I am a duly elected ______________________ of Aames Investment Corporation (the “Company”) and am duly authorized to make this affidavit.

2. This affidavit is being delivered in connection with the transfer of the Mortgage Loan described in Paragraph 3 hereof by the Company pursuant to the Transfer and Servicing Agreement, dated as of April 1, 2006, among Aames Mortgage Investment Trust 2006-1, as Issuer, Financial Asset Securities Corp., as Depositor, Wells Fargo Bank, N.A., as Master Servicer and as Trust Administrator, Aames Funding Corporation, as Servicer, Aames Investment Corporation, as Seller, and Deutsche Bank National Trust Company, as Indenture Trustee, relating to the Aames Mortgage Investment Trust 2006-1 Mortgage Backed Notes (the “Agreement”).

3. The ______________ is the payee under the following described Mortgage Note (“Mortgage Note”) which evidences the obligation of the borrower(s) to repay the Mortgage Loan:

Loan Number: __________________________________

Mortgage Note Date:_____________________________

Borrower(s): ___________________________________

Original Payee (if not the Company): _________________

Original Amount:________________________________

Mortgage Rate: _________________________________

Address of Mortgaged Property: ____________________

_____________________________________________

4. The Company is the lawful owner of the Mortgage Note and has not cancelled, altered, assigned or hypothecated the Mortgage Note.

5. A thorough and diligent search for the executed original Mortgage Note was undertaken and was unsuccessful.

6. Attached hereto is a true and correct copy of the Mortgage Note.

7. The Mortgage Note has not been endorsed by the Company in any manner inconsistent with its transfer of the Mortgage Loan under the Mortgage Loan Purchase and Assignment Agreement.

8. Without limiting the generality of the rights and remedies of the Indenture Trustee contained in the Agreement, the Company hereby confirms and agrees that in the event the inability to produce the executed original Mortgage Note results in a breach of the representations, warranties and covenants appearing in Section 1.04 of the Mortgage Loan Purchase and Assignment Agreement and Section 3.03 of the Agreement, the Company shall repurchase the Mortgage Loan at the Purchase Price and otherwise in accordance with Section 3.04 of the Agreement. In addition, the Company covenants and agrees to indemnify the Indenture Trustee and the Trust from and hold them harmless against any and all losses, liabilities, damages, claims or expenses (other than those resulting from negligence or bad faith of the Indenture Trustee) arising from the Company’s failure to have delivered the Mortgage Note to the Indenture Trustee, including without limitation any such losses, liabilities, damages, claims or expenses arising from any action to enforce the indebtedness evidenced by the Mortgage Note or any claim by any third party who is the holder of such indebtedness by virtue of possession of the Mortgage Note.

9. In the event that the Company locates the executed original Mortgage Note, it shall promptly provide the Mortgage Note to the Indenture Trustee.

10. Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Agreement.

Date: _______________________

_______________________________________

(signature)

_______________________________________

(print name)

_______________________________________

(print title)

EXHIBIT B-6

FORM OF ENDORSEMENT

Pay to the order of Deutsche Bank National Trust Company, as indenture trustee (the “Indenture Trustee”) under the Indenture dated as of April 1, 2006, relating to Aames Mortgage Investment Trust 2006-1 Mortgage Backed Notes, without recourse.


[current signatory on note]

By:
Name:
Title:

EXHIBIT C

AUTHORIZED REPRESENTATIVES OF THE CUSTODIAN

Name	Signature	Title

EXHIBIT D

AUTHORIZED REPRESENTATIVES OF THE INDENTURE TRUSTEE

Name	Signature	Title

EXHIBIT E

AUTHORIZED REPRESENTATIVES OF THE MASTER SERVICER

Name	Signature	Title

EXHIBIT F

AUTHORIZED REPRESENTATIVES OF THE SERVICER

(AAMES FUNDING CORPORATION)

Name	Signature	Title

EXHIBIT G

SERVICING CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

The assessment of compliance to be delivered by the Custodian shall address, at a minimum, the criteria identified below as “Applicable Servicing Criteria”:

Servicing Criteria		Applicable Servicing Criteria
Reference	Criteria
	General Servicing Considerations
1122(d)(1)(i)	Policies and procedures are instituted to monitor any performance or other triggers and events of default in accordance with the transaction agreements
1122(d)(1)(ii)	If any material servicing activities are outsourced to third parties, policies and procedures are instituted to monitor the third party’s performance and compliance with such servicing activities
1122(d)(1)(iii)	Any requirements in the transaction agreements to maintain a back-up servicer for the pool assets are maintained.
1122(d)(1)(iv)	A fidelity bond and errors and omissions policy is in effect on the party participating in the servicing function throughout the reporting period in the amount of coverage required by and otherwise in accordance with the terms of the transaction agreements.
	Cash Collection and Administration
1122(d)(2)(i)	Payments on pool assets are deposited into the appropriate custodial bank accounts and related bank clearing accounts no more than two business days following receipt, or such other number of days specified in the transaction agreements.
1122(d)(2)(ii)	Disbursements made via wire transfer on behalf of an obligor or to an investor are made only by authorized personnel.
1122(d)(2)(iii)	Advances of funds or guarantees regarding collections, cash flows or distributions, and any interest or other fees charged for such advances are made, reviewed and approved as specified in the transaction agreements.
1122(d)(2)(iv)	The related accounts for the transaction, such as cash reserve accounts or accounts established as a form of overcollateralization, are separately maintained (e.g., with respect to commingling of cash) as set forth in the transaction agreements.
1122(d)(2)(v)	Each custodial account is maintained at a federally insured depository institution as set forth in the transaction agreements. For purposes of this criterion, “federally insured depository institutions” with respect to a foreign financial institution means a foreign financial institution that meets the requirements of Rule 13k-1(b)(1) of the Securities Exchange Act.
1122(d)(2)(vi)	Unissued checks are safeguarded so as to prevent unauthorized access.
1122(d)(2)(vii)	Reconciliations are prepared on a monthly basis for all asset-backed securities related bank accounts, including custodial accounts and related bank clearing accounts. These reconciliations are (A) mathematically accurate; (B) prepared within 30 calendar days after the bank statement cutoff date, or such other number of days specified in the transaction agreements; (C) reviewed and approved by someone other than ther person who prepared the reconciliations; and (D) contain explanations for reconciling items, These reconciling items are resolved within 90 calendar days of their original identification, or such other number of days specified in the transaction agreements.
	Investor Remittances and Reporting
1122(d)(3)(i)	Reports to investors, including those to be filed with the Commission, are maintained in accordance with the transaction agreements and applicable Commission requirements. Specifically, such reports (A) are prepared in accordance with timeframes and other terms set forth in the transaction agreements, (B) provide information calculated in accordance with the terms specified in the transaction agreements; (C) are filed with the Commission as required by its rules and regulations; and (D) agree with investors; or the trustee’s records as to the total unpaid principal balance and number of pool assets serviced by the servicer.
1122(d)(3)(ii)	Amounts due to investors are allocated and remitted in accordance with timeframes, distribution priority and other terms set forth in the transaction agreements.
1122(d)(3)(iii)	Disbursements made to an investor are posted within two business days to the servicer’s investor records, or such other number of days specified in the transaction agreements.
1122(d)(3)(iv)	Amounts remitted to investors per the investor reports agree with cancelled checks, or other form of payment, or custodial bank statements.
	Pool Asset Administration
1122(d)(4)(i)	Collateral or security on pool assets is maintained as required by the transaction agreements or related asset pool documents.	√
1122(d)(4)(ii)	Pool assets and related documents are safeguarded as required by the transaction agreements.	√
1122(d)(4)(iii)	Any additions, removals or substitutions to the asset pool are made, reviewed and approved in accordance with any conditions or requirements in the transaction agreements
1122(d)(4)(iv)	Payments on pool assets, including any payoffs, made in accordance with the related pool asset documents are posted to the servicer’s obligor records maintained no more than two business days after receipt, or such other number of days specified in the transaction agreements, and allocated to principal, interest or other items (e.g., escrow) in accordance with the related pool asset documents.
1122(d)(4)(v)	The servicer’s records regarding the pool assets agree with the servicer’s records with respect to an obligor’s unpaid principal balance.
1122(d)(4)(vi)	Changes with respect to the terms or status of an obligor’s pool asset (e.g., loan modifications or re-agings) are made, reviewed and approved by authorized personnel in accordance with the transaction agreements and related pool asset documents.
1122(d)(4)(vii)	Loss mitigation of recovery actions (e.g., forbearance plans, modifications and deed in lieu of foreclosure, foreclosures and repossessions, as applicable) are initiated, conducted and concluded in accordance with the timeframes or other requirements established by the transaction documents.
1122(d)(4)(viii)	Records documenting collection efforts are maintained during the period a pool asset is delinquent in accordance with the transaction agreements., Such records are maintained in at least a monthly basis, or such other period specified in the transaction agreements, and describe the entity’s activities in monitoring delinquent pool assets including, for example, phone calls, letters and payment rescheduling plans in cases where delinquency is deemed temporary (e.g., illness or unemployment).
1122(d)(4)(ix)	Adjustments to interest rates or rates of return for pool assets with variable rates are computed based on the related pool asset documents.
1122(d)(4)(x)	Regarding any funds held in trust for an obligor (such as escrow accounts); (A) such funds are analyzed, in accordance with the obligor’s pool asset documents, on at least an annual basis, or such other period specified in the transaction agreements; (B) interest on such funds is paid, or credited, to obligors in accordance with applicable pool asset documents and state laws; and (C) such funds are returned to the obligor within 3- calendar days of full repayment of the related pool asset, or such other number of days specified in the transaction agreements.
1122(d)(4)(xi)	Payments made on behalf of an obligor (such as tax or insurance payments) are made on or before the related penalty or expiration dates, as indicated on the appropriate bills or notices for such payments, provided that such support has been received by the service at least 30 calendar days prior to these dates, or such other number of days specified in the transaction agreements.
1122(d)(4)(xii)	Any late payment penalties in connection with any payment to be made on behalf of an obligor are paid from the servicer’s funds and not charged to the obligor, unless the late payment was due to the obligor’s error or omission.
1122(d)(4)(xiii)	Disbursements made on behalf of an obligor are posted within two business days to the obligor’s records maintained by the servicer, or such other number of days specified in the transaction agreements.
1122(d)(4)(xiv)	Delinquencies, charge-offs and uncollectible funds are recognized and recorded in accordance with the transaction agreements.
1122(d)(4)(xv)	Any external enhancement or other support, identified in item 1114(a)(1) through (3) or item 1115 of Regulation AB, is maintained as set forth in the transaction agreements.

BEAR STEARNS FINANCIAL PRODUCTS INC.

383 MADISON AVENUE

NEW YORK, NEW YORK 10179

212-272-4009

DATE:	May 2, 2006

TO:	Aames Mortgage Investment Trust 2006-1 c/o Wilmington Trust Company Rodney Square North 1100 North Market Street Wilmington, DE 19801
ATTENTION:	Corporate Trust Administration
TELEPHONE:	302-636-6000
FACSIMILE:	302-636-4140

FROM:	Derivatives Documentation
TELEPHONE:	212-272-2711
FACSIMILE:	212-272-9857

SUBJECT:	Fixed Income Derivatives Confirmation and Agreement

REFERENCE NUMBER:

The purpose of this letter agreement (“Agreement”) is to confirm the terms and conditions of the Transaction entered into on the Trade Date specified below (the “ Transaction”) between Bear Steams Financial Products Inc. (“BSFP”) and Aames Mortgage Investment Trust 2006-1 (the “Counterparty”), pursuant to the Transfer and Servicing Agreement (the “TSA”), dated as of April 1, 2006, among Aames Mortgage Investment Trust 2006-1, as issuer (the “Issuer”), Financial Asset Securities Corp., as depositor (the “Depositor”), Deutsche Bank National Trust Company, as indenture trustee (the “Indenture Trustee”), Wells Fargo Bank, N.A., as trust administrator (the “Trust Administrator”) and master servicer (the `Master Servicer”), Aames Funding Corporation, as servicer (the “Servicer”), and Aames Investment Corporation, as sponsor (the “Sponsor”). This Agreement, which evidences a complete and binding agreement between you and us to enter into the Transaction on the terms set forth below, constitutes a “Confirmation” as referred to in the “ISDA Form Master Agreement” (as defined below), as well as a “Schedule” as referred to in the ISDA Form Master Agreement.

1. This Agreement is subject to the 2000 ISDA Definitions, as supplemented by the Annex thereto (June 2000 Version) (the “Definitions”), as published by the International Swaps and Derivatives Association, Inc. (“ISDA”). You and we have agreed to enter into this Agreement in lieu of negotiating an agreement in the form of the 1992 ISDA Master Agreement (Multicurrency-Cross Border) and, accordingly, an agreement in such form but without any Schedule attached thereto and with all elections, modifications and amendments to such form contained herein (the “ISDA Form Master Agreement”) shall be deemed to have been executed by you and us on the date we entered into the Transaction. In the event of any inconsistency between the provisions of this Agreement and the Definitions or the ISDA

Form Master Agreement, this Agreement shall prevail for purposes of the Transaction. Terms capitalized but not defined herein except in the Definitions shall have the respective meanings attributed to them in the TSA.

2. The terms of the particular Transaction to which this Confirmation relates are as follows:

	Notional Amount:				With respect to any Calculation Period, the amount set forth for such period in the Schedule I attached hereto.

	Trade Date:				April 28, 2006

	Effective Date:				May 25, 2006

	Termination Date:				October 25, 2011; provided, however, for the purposes of determining the Floating Amount to be paid in respect of the final Calculation Period, such date shall be subject to adjustment in accordance with the Business Day Convention.

	Fixed Amount:

			Fixed Rate Payer:		Counterparty

			Floating Rate Payer
			Period End Dates:		The 25th calendar day of each month during the Term of this Transaction, commencing June 25, 2006 and ending on the Termination Date, with No Adjustment.

			Floating Rate Payer
			Payment Date:		Early Payment shall be applicable. The Fixed Rate Payer Payment Dates shall be one Business Days prior to each Fixed Rate Payer Period End Date.

			Fixed Rate:		5.36000%

			Fixed Rate Day
			Count Fraction:		30/360

	Floating Amounts:

			Floating Rate Payer:		BSFP

			Floating Rate Payer
			Period End Dates:		The 25th calendar day of each month during the Term of this Transaction, commencing June 25, 2006 and ending on the Termination Date, subject to adjustment in accordance with the Business Day Convention.

			Floating Rate Payer
			Payment Dates:		Early Payment shall be applicable. The Floating Rate Payer Payment Dates shall be one Business Days prior to each Floating Rate Payer Period End Date.

			Floating Rate Option:		USD-LIBOR BBA

			Designated Maturity:		One month

			Floating Rate Day
			Count Fraction:		Actual/360

			Reset Dates:		The first day of each Calculation Period

			Compounding:		Inapplicable

	Business Days:				New York

	Business Day Convention:				Following

	Additional Amount:				In connection with entering into this Transaction USD 535,000 is payable by BSFP to Counterparty May 2, 2006.

3.	Additional Provisions:				(1) Each party hereto is hereby advised and acknowledges that the other party has engaged in (or refrained from engaging in) substantial financial transactions and has taken (or refrained from taking) other material actions in reliance upon the entry by the parties into the Transaction being entered into on the terms and conditions set forth herein and in the Confirmation relating to such Transaction, as applicable. This paragraph (1) shall be deemed repeated on the trade date of each Transaction.

4.	Provisions Deemed Incorporated in a Schedule to the ISDA Form Master Agreement:
1)	The parties agree that subparagraph (ii) of Section 2(c) of the ISDA Form Master Agreement will apply to any Transaction.

2)	Termination Provisions. For purposes of the ISDA Form Master Agreement:

(a) “Specified Entity” is not applicable to BSFP or Counterparty for any purpose.

(b) “Specified Transaction” is not applicable to BSFP or Counterparty for any purpose, and, accordingly, Section 5(a)(v) shall not apply to BSFP or Counterparty.

(c) Section 5(a)(i) of the ISDA Form Master Agreement is hereby amended by deleting the word “third’ therein and replacing it with the word “second.”

(d) “Breach of Agreement” provision of Section 5(a)(ii) will not apply to BSFP and will not apply to Counterparty.

(e) “Credit Support Default” provisions of Section 5(a)(iii) will not apply to BSFP and will not apply to Counterparty.

(f) “Misrepresentation” provisions of Section 5(a)(iv) will not apply to BSFP and will not apply to Counterparty.

(g) The “Merger Without Assumption” provision of Section 5(a)(viii) will not apply to BSFP and will not apply to Counterparty.

(h) The “Credit Event Upon Merger” provisions of Section 5(b)(iv) will not apply to BSFP or Counterparty.

(i) The “Bankruptcy” provision of Section 5(a)(vii)(2) will apply to BSFP and will not apply to Counterparty.

(j) The “Automatic Early Termination” provision of Section 6(a) will not apply to BSFP or to Counterparty.

(k) Payments on Early Termination. For the purpose of Section 6(e) of the ISDA Form Master Agreement:

		(i) Market Quotation will apply.
		(ii) The Second Method will apply.

(l) “Termination Currency” means United States Dollars.

3)	Tax Representations.

(a)	Payer Representations. For the purpose of Section 3(e) of the ISDA Form Master Agreement, each of BSFP and the Counterparty will make the following representations:


	It is not required by any applicable law, as modified by the practice of any relevant governmental revenue authority, of any Relevant Jurisdiction to make any deduction or withholding for or on account of any Tax from any payment (other than interest under Section 2(e), 6(d)(ii) or 6(e) of the ISDA Form Master Agreement) to be made by it to the other party under this Agreement. In making this representation, it may rely on:

	(i) the accuracy of any representations made by the other party pursuant to Section 3(f) of the ISDA Form Master Agreement;

	(ii) the satisfaction of the agreement contained in Sections 4(a)(i) and 4(a)(iii) of the ISDA Form Master Agreement and the accuracy and effectiveness of any document provided by the other party pursuant to Sections 4(a)(i) and 4(a)(iii) of the ISDA Form Master Agreement; and

	(iii) the satisfaction of the agreement of the other party contained in Section 4(d) of the ISDA Form Master Agreement, provided that it shall not be a breach of this representation where reliance is placed on clause (ii) and the other party does not deliver a form or document under Sections 4(a)(i) and 4(a)(iii) of the ISDA Form Master Agreement by reason of material prejudice to its legal or commercial position.

(b)	Payee Representations. For the purpose of Section 3(f) of the ISDA Form Master Agreement, each of BSFP and the Counterparty make the following representations.

The following representation will apply to BSFP:

	BSFP is a corporation organized under the laws of the State of Delaware and its U.S. taxpayer identification number is 13-3866307.

The following representation will apply to the Counterparty:

	The beneficial owner of the payments made to it under this Agreement is either (i) a “U.S. person” (as that term is used in section 1.1441-4(a)(3)(ii) of United States Treasury Regulations) for United States federal income tax purposes and an “Exempt recipient” within the meaning of section 1.6049-4(c)(1)(ii) of United States Treasury Regulations, or (ii) a “non U.S. branch of a foreign person” as that term is used in section 1.1441-4(a)(3)(ii) of the United States Treasury Regulations (the “Regulations”) for United States federal income tax purposes, and it is a “foreign person” as that term is used in section 1.6041-4(a)(4) of the Regulations for United States federal income tax purposes.

4)	[Reserved]

5)	Documents to be Delivered. For the purpose of Section 4(a) of the ISDA Form Master Agreement:

(1)	Tax forms, documents, or certificates to be delivered are:

Party required to deliver document				Form/Document/ Certificate		Date by which to be delivered

BSFP and the Counterparty				Any document required or reasonably requested to allow the other party to make payments under this Agreement without any deduction or withholding for or on the account of any Tax or with such deduction or withholding at a reduced rate		Promptly after the earlier of (i) reasonable demand by either party or (ii) learning that such form or document is required
(2)	Other documents to be delivered are:

Party required to deliver document	Form/Document/ Certificate	Date by which to be delivered	Covered by Section 3(d) Representation

BSFP and the Counterparty	Any documents required by the receiving party to evidence the authority of the delivering party (which, in the case of the Owner Trustee, shall be the TSA and Indenture or its Credit Support Provider, if any, for it to execute and deliver this Agreement, any Confirmation, and any Credit Support Documents to which it is a party, and to evidence the authority of the delivering party or its Credit Support Provider to perform its obligations under this Agreement, such Confirmation and/or Credit Support Document, as the case may be	Upon the execution and delivery of this Agreement and such Confirmation	Yes

BSFP and the Counterparty	A certificate of an authorized officer of the party, as to the incumbency and authority of the respective officers of the party signing this Agreement, any relevant Credit Support Document, or any Confirmation, as the case may be	Upon the execution and delivery of this Agreement and such Confirmation	Yes

BSFP	A copy of its most recent audited consolidated financial statements	Promptly after the request of by other Party

Counterparty	An executed copy of the TSA	Within 30 days after the date of this Agreement.	No

BSFP	Legal opinion(s) with respect to such party and its Credit Support Provider, if any, for it reasonably satisfactory in form and substance to the other party relating to the enforceability of the party’s obligations under this Agreement.	Upon the execution and delivery of this Agreement and any Confirmation	No

6)	Miscellaneous. Miscellaneous

(a)	Address for Notices: For the purposes of Section 12(a) of the ISDA Form Master Agreement:

	Address for notices or communications to BSFP:

		Address:	383 Madison Avenue, New York, New York 10179
		Attention:	DPC Manager
		Facsimile:	(212) 272-5823

	with a copy to:

		Address:	One Metrotech Center North, Brooklyn, New York 11201
		Attention:	Derivative Operations - 7th Floor
		Facsimile:	(212) 272-1634

		(For all purposes)

	Address for notices or communications to the Counterparty:

		Address:	Aames Mortgage Investment Trust 2006-1 c/o Wilmington Trust Company Rodney Square North 1100 North Market Street Wilmington, DE 19890
		Attention:	Corporate Trust Administration
		Facsimile:	302-636-4140
		Phone:	302-636-6000

	with a copy to:

		Address:	Wells Fargo Bank, N.A. 9062 Old Annapolis Road Columbia, Maryland 21045
		Attention:	Aames Mortgage Investment Trust 2006-1
		Facsimile:	410-715-2380
		Telephone:	410-884-2000

		Address:	Aames Investment Corporation 350 South Grand Avenue, 43rd Floor Los Angeles, CA 90071 Attention: Chief Financial Officer Facsimile No.: 323-210-5036 Telephone No.: 323-210-4964

			Aames Investment Corporation 350 South Grand Avenue, 43rd Floor Los Angeles, CA 90071 Attention: General Counsel Facsimile No.: 323-210-5066 Telephone No.: 323-210-5335

		(For all purposes)

(b)	Process Agent. For the purpose of Section 13(c):

		BSFP appoints as its Process Agent:			Not Applicable

		The Counterparty appoints as its Process Agent:			Not Applicable

(c)	Offices. The provisions of Section 10(a) will not apply to this Agreement; neither BSFP nor the Counterparty have any Offices other than as set forth in the Notices Section and BSFP agrees that, for purposes of Section 6(b) of the ISDA Form Master Agreement, it shall not in future have any Office other than one in the United States.

(d)	Multibranch Party. For the purpose of Section 10(c) of the ISDA Form Master Agreement:

	BSFP is not a Multibranch Party.

	The Counterparty is not a Multibranch Party.

(e)	Calculation Agent. The Calculation Agent is BSFP.

(f)	Credit Support Document. Not applicable for either BSFP or the Counterparty.

(g)	Credit Support Provider.

	BSFP: Not Applicable

	The Counterparty: Not Applicable

(h)	Governing Law. The parties to this Agreement hereby agree that the law of the State of New York shall govern their rights and duties in whole, without regard to the conflict of law provisions thereof other than New York General Obligations Law Sections 5-1401 and 1402.

(i) Severability. If any term, provision, covenant, or condition of this Agreement, or the application thereof to any party or circumstance, shall be held to be invalid or unenforceable (in whole or in part) for any reason, the remaining terms, provisions, covenants, and conditions hereof shall continue in full force and effect as if this Agreement had been executed with the invalid or unenforceable portion eliminated, so long as this Agreement as so modified continues to express, without material change, the original intentions of the parties as to the subject matter of this Agreement and the deletion of such portion of this Agreement will not substantially impair the respective benefits or expectations of the parties.

The parties shall endeavor to engage in good faith negotiations to replace any invalid or unenforceable term, provision, covenant or condition with a valid or enforceable term, provision, covenant or condition, the economic effect of which comes as close as possible to that of the invalid or unenforceable term, provision, covenant or condition.

(j) Consent to Recording. Each party hereto consents to the monitoring or recording, at any time and from time to time, by the other party of any and all communications between officers or employees of the parties, waives any further notice of such monitoring or recording, and agrees to notify its officers and employees of such monitoring or recording.

(k) Waiver of Jury Trial. Each party waives any right it may have to a trial by jury in respect of any Proceedings relating to this Agreement or any Credit Support Document.

7) “Affiliate” will have the meaning specified in Section 14 of the ISDA Form Master Agreement, provided that neither BSFP nor Counterparty shall be deemed to have any Affiliates for purposes of this Agreement, including for purposes of Section 6(b)(ii).

8) Section 3 of the ISDA Form Master Agreement is hereby amended by adding at the end thereof the following subsection (g):

“(g) Relationship Between Parties.

Each party represents to the other party on each date when it enters into a Transaction that: --

(1) Nonreliance. It is not relying on any statement or representation of the other party regarding the Transaction (whether written or oral), other than the representations expressly made in this Agreement or the Confirmation in respect of that Transaction.

(2) Evaluation and Understanding.

(i) It has the capacity to evaluate (internally or through independent professional advice) the Transaction and has made its own decision to enter into the Transaction; and

(ii) It understands the terms, conditions and risks of the Transaction and is willing and able to accept those terms and conditions and to assume those risks, financially and otherwise.

(3) Purpose. It is entering into the Transaction for the purposes of managing its borrowings or investments, hedging its underlying assets or liabilities or in connection with a line of business.

(4) Principal. It is entering into the Transaction as principal, and not as agent or in any other capacity, fiduciary or otherwise and the other party is not acting as a fiduciary for or an adviser to it in respect of the Transaction.”

9) Limitation of Liability. It is expressly understood and agreed by the parties hereto that (i) this Agreement is executed and delivered by Wilmington Trust Company (“Wilmington”), not individually or personally but solely as the Owner Trustee of the Counterparty, in the exercise of the powers and authority conferred and vested in it under the Amended and Restated Trust Agreement dated May 2, 2006, by and among Financial Asset Securities Corp., as Depositor (the “Depositor”), Wilmington Trust Company, as Owner Trustee (the “Owner Trustee”), and Wells Fargo Bank, N.A., as Trust Administrator (the “Trust Administrator”), (ii) each of the representations, undertakings and agreements herein made on the part of the Counterparty is made and intended not as personal representations, undertakings and agreements by Wilmington but is made and intended for the purpose of binding only the Counterparty, (iii) under no circumstances shall Wilmington in its individual capacity be personally liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Counterparty under this Agreement or any other related documents and (iv) nothing herein contained shall be construed as creating any liability on Wilmington, individually or personally, to perform any covenant either expressed or implied contained herein, all such liability, if any, being expressly waived by the parties hereto and by any person claiming by, through or under parties hereto.

10) Proceedings. BSFP shall not institute against or cause any other person to institute against, or join any other person in instituting against Counterparty any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any federal or state bankruptcy or similar law for a period of one year and one day following payment in full of the Notes.

11) Set-off. The provisions for Set-off set forth in Section 6(e) of the ISDA Form Master Agreement shall not apply for purposes of this Transaction. Notwithstanding any provision of this Agreement or any other existing or future agreement, each party irrevocably waives any and all rights it may have to set off, net, recoup or otherwise withhold or suspend or condition payment or performance of any obligation between it and the other party hereunder against any obligation between it and the other party under any other agreements.

12) Additional Termination Events. Additional Termination Events will apply:

(i) If a Rating Agency Downgrade has occurred and BSFP has not complied with Section 13 below, then an Additional Termination Event shall have occurred with respect to BSFP and BSFP shall be the sole Affected Party with respect to such an Additional Termination Event.

(ii) Amendments to TSA. Without the prior written consent of BSFP, Counterparty shall not consent to any amendment or supplemental agreement to the TSA if such amendment or supplemental agreement could reasonably be expected to have a material adverse effect on the interests of BSFP. Counterparty will furnish to BSFP a copy of each proposed and each executed amendment or supplemental agreement and copies of any related Rating Agency confirmation therewith, if any. The failure by Counterparty to comply with the above shall constitute an Additional Termination Event hereunder, upon which Counterparty shall be the sole Affected Party and all Transactions hereunder shall be Affected Transactions.

(iii) Swap Disclosure Event. If, upon the occurrence of a Swap Disclosure Event (as defined in Section 16 of this Agreement), BSFP has not, within 10 days after such Swap Disclosure Event complied with any of the provisions set forth in Section 16 (iii) below, then an Additional Termination Event shall have occurred with respect to BSFP and BSFP shall be the sole Affected Party with respect to such Additional Termination Event.

13) Rating Agency Downgrade. In the event that BSFP’s long-term unsecured and unsubordinated debt rating is withdrawn or reduced below “AA-” by S&P or its long-term unsecured and unsubordinated debt rating is withdrawn or reduced below “Aa3” by Moody’s (and together with S&P, the “Swap Rating Agencies”, and such rating thresholds, “Approved Rating Thresholds”), then within 30 days after such rating withdrawal or downgrade (unless, within 30 days after such withdrawal or downgrade, each such Swap Rating Agency has reconfirmed the rating of the Notes, which was in effect immediately prior to such withdrawal or downgrade), BSFP shall, subject to the Rating Agency Condition and at its own expense, either (i) cause another entity to replace BSFP as party to this Agreement that meets or exceeds the Approved Rating Thresholds on terms substantially similar to this Agreement, (ii) obtain a guaranty of, or a contingent agreement of another person with the Approved Rating Thresholds to honor, BSFP’s obligations under this Agreement, (iii) post collateral under a Credit Support Annex which will be sufficient to restore the immediately prior ratings of the Notes; or (iv) establish any other arrangement satisfactory to the applicable Swap Rating Agency, which will be sufficient to restore the immediately prior ratings of the Notes. In the event that BSFP’s long-term unsecured and unsubordinated debt rating is withdrawn or reduced below “BBB-” by S&P, then within 10 business days after such rating withdrawal or downgrade, BSFP shall, subject to the Rating Agency Condition and at its own expense, either (i) secure another entity to replace BSFP as party to this Agreement that meets or exceeds the Approved Rating Thresholds on terms substantially similar to this Agreement or (ii) obtain a guaranty of, or a contingent agreement of another person with the Approved Rating Thresholds, to honor, BSFP’s obligations under this Agreement. BSFP’s failure to do any of the foregoing shall, at the Counterparty’s option, constitute an Additional Termination Event with BSFP as the Affected Party. For purposes of this provision, “Rating Agency Condition” means, with aspect to any particular proposed act or omission to act hereunder that the party acting or failing to act must consult with each of the Swap Rating Agencies then providing a rating of the Notes and receive from each of the Swap Rating Agencies a prior written confirmation that the proposed action or inaction would not cause a downgrade or withdrawal of the then current rating of the Notes.

14) Transfer, Amendment and Assignment. No transfer, amendment, waiver, supplement, assignment or other modification of this Transaction shall be permitted by either party unless the Swap Rating Agencies, have been provided notice of the same and confirms in writing (including by facsimile transmission) after such notice is given that it will not downgrade, qualify, withdraw or otherwise modify its then-current rating of the Notes.

15) Limited Recourse Non petition. The liability of the Counterparty in relation to this Agreement and any Confirmation hereunder is limited in recourse to the Trust Estate (as defined in the TSA) and distributions of interest proceeds and principal proceeds thereon applied in accordance with the terms of the TSA BSFP shall have no right to institute any proceedings for the enforcement of the lien of the Trust Estate unless the Indenture Trustee shall have commenced proceedings pursuant to the TSA for the enforcement of the lien of the Indenture Trustee for the benefit of the secured parties (as defined in the TSA) and BSFP shall only enforce such a lien in conjunction with the enforcement of the rights of such Secured Parties in the manner set forth in the TSA. Upon application of the Trust Estate (and proceeds thereon) in accordance with the TSA, BSFP shall not be entitled to take any further steps against the Counterparty to recover any sums due but still unpaid hereunder or thereunder, all claims in respect of which shall be extinguished.

16) Compliance with Regulation AB.

(i) BSFP agrees and acknowledges that Aames Mortgage Investment Trust 2006-1 (“Aames”) is required under Regulation AB under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (“Regulation AB”), to disclose certain financial information regarding BSFP or its group of affiliated entities, if applicable, depending on the aggregate “significance percentage” of this Agreement and any other derivative contracts between BSFP or its group of affiliated entities, if applicable, and Aames, as calculated from time to time in accordance with Item 1115 of Regulation AB.

(ii) It shall be a swap disclosure event (“Swap Disclosure Event”) if, on any Business Day after the date hereof, Aames requests from Party A the applicable financial information described in Item 1115 of Regulation AB (such request to be based on a reasonable determination by Aames, in good faith, that such information is required under Regulation AB) (the “Swap Financial Disclosure”).

(iii) Upon the occurrence of a Swap Disclosure Event, BSFP, at its own expense, shall (a) provide to Aames the Swap Financial Disclosure, (b) secure another entity to replace BSFP as party to this Agreement on terms substantially similar to this Agreement and subject to prior notification to the Swap Rating Agencies, which entity (or a guarantor therefor) meets or exceeds the Approved Rating Thresholds ando which satisfies the Rating Agency Condition and which entity is able to comply with the requirements of Item 1115 of Regulation AB or (c) obtain a guaranty of the BSFP’s obligations under this Agreement from an affiliate of the BSFP that is able to comply with the financial information disclosure requirements of Item 1115 of Regulation AB, such that disclosure provided in respect of the affiliate will satisfy any disclosure requirements applicable to the Swap Provider, and cause such affiliate to provide Swap Financial Disclosure. If permitted by Regulation AB, any required Swap Financial Disclosure may be provided by incorporation by reference from reports filed pursuant to the Exchange Act.

(iv) BSFP agrees that, in the event that BSFP provides Swap Financial Disclosure to Aames in accordance with Section 16(iii)(a) or causes its affiliate to provide Swap Financial Disclosure to Aames in accordance with Section 16(iii)(c), it will indemnify and hold harmless Aames, its respective directors or officers and any person controlling Aames, from and against any and all losses, claims, damages and liabilities caused by any untrue statement or alleged untrue statement of a material fact contained in such Swap Financial Disclosure or caused by any omission or alleged omission to state in such Swap Financial Disclosure a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.

(17) Third Party Beneficiary. Aames shall be a third party beneficiary of this Agreement.

NEITHER THE BEAR STEARNS COMPANIES INC. NOR ANY SUBSIDIARY OR AFFILIATE OF THE BEAR STEARNS COMPANIES INC. OTHER THAN BSFP IS AN OBLIGOR OR A CREDIT SUPPORT PROVIDER ON THIS AGREEMENT.
5. Account Details and Settlement Information:				Payments to BSFP: Citibank, N.A., New York ABA Number: 021-0000-89, for the account of Bear, Steams Securities Corp. Account Number: 0925-3186, for further credit to Bear Steams Financial Products Inc. Sub-account Number: 102-04654-1-3 Attention: Derivatives Department

Acknowledgment of Charge. Provider hereby acknowledges that Counterparty has granted a first priority security interest in its rights under this Agreement and has assigned this Agreement to the Indenture Trustee pursuant to the Indenture, and consents thereto, and BSFP hereby consents to any transfer of such rights pursuant to an exercise of creditor’s remedies in respect of such security interest or assignment. BSFP hereby agrees that, unless notified in writing by the Indenture Trustee of other payment instructions, any and all amounts payable by BSFP to Counterparty under this Agreement shall be paid to the Indenture Trustee at the following account:

Payments to Counterparty: Wells Fargo Bank, N.A. ABA #: 121-000-248 For credit to: SAS Clearing Acct#: 3970771416 FC to: Aames 2006-1, Interest Rate Swap Acct # 50916200

This Agreement may be executed in several counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

Counterparty hereby agrees to check this Confirmation and to confirm that the foregoing correctly sets forth the terms of the Transaction by signing in the space provided below and returning to BSFP a facsimile of the fully-executed Confirmation to 212-272-9857. For inquiries regarding U.S. Transactions, please contact Susan Donlon by telephone at 212-272-2364. For all other inquiries please contact Derivatives Documentation by telephone at 353-1-402-6233. Originals will be provided for your execution upon your request.

We are very pleased to have executed this Transaction with you and we look forward to completing other transactions with you in the near future.

Very truly yours,

BEAR STEARNS FINANCIAL PRODUCTS INC.


By: _____________________________
Name:
Title:

Counterparty, acting through its duly authorized signatory, hereby agrees to, accepts and confirms the terms of the foregoing as of the Trade Date.

AAMES MORTGAGE INVESTMENT TRUST 2006-1 By: Wilmington Trust Company, not in its individual capacity but solely as Owner Trustee of Aames Mortgage Investment Trust 2006-1

By: _____________________________
Name:
Title:
am

SCHEDULE I

(all such dates subject to adjustment in accordance with the Business Day Convention)

From and including	To but excluding	Notional Amount (USD)
Effective Date	06/25/06	602,186,073.68
06/25/06	07/25/06	591,785,982.21
07/25/06	08/25/06	580,366,114.67
08/25/06	09/25/06	567,964,846.04
09/25/06	10/25/06	554,628,014.07
10/25/06	11/25/06	540,450,032.53
11/25/06	12/25/06	525,655,656.61
12/25/06	01/25/07	510,572,469.53
01/25/07	02/25/07	495,917,871.49
02/25/07	03/25/07	481,683,668.20
03/25/07	04/25/07	467,858,222.28
04/25/07	05/25/07	454,429,777.11
05/25/07	06/25/07	441,386,914.88
06/25/07	07/25/07	428,718,546.83
07/25/07	08/25/07	416,413,903.75
08/25/07	09/25/07	404,462,526.72
09/25/07	10/25/07	392,778,024.45
10/25/07	11/25/07	381,227,088.38
11/25/07	12/25/07	330,886,781.06
12/25/07	01/25/08	133,734,035.28
01/25/08	02/25/08	126,567,214.04
02/25/08	03/25/08	120,758,572.00
03/25/08	04/25/08	115,456,477.70
04/25/08	05/25/08	110,703,390.54
05/25/08	06/25/08	106,484,604.43
06/25/08	07/25/08	102,706,290.24
07/25/08	08/25/08	99,296,797.35
08/25/08	09/25/08	96,200,494.33
09/25/08	10/25/08	93,359,314.93
10/25/08	11/25/08	90,610,752.19
11/25/08	12/25/08	83,642,805.81
12/25/08	01/25/09	79,054,751.55
01/25/09	02/25/09	76,800,609.77
02/25/09	03/25/09	74,642,647.38
03/25/09	04/25/09	72,547,598.96
04/25/09	05/25/09	70,513,540.43
05/25/09	06/25/09	68,538,609.66
06/25/09	07/25/09	66,621,004.37
07/25/09	08/25/09	64,758,980.15
08/25/09	09/25/09	62,950,848.46
09/25/09	10/25/09	61,194,974.79
10/25/09	11/25/09	59,489,776.82
11/25/09	12/25/09	57,833,722.68
12/25/09	01/25/10	56,225,329.27
01/25/10	02/25/10	54,663,160.61
02/25/10	03/25/10	53,145,826.25
03/25/10	04/25/10	51,671,979.82
04/25/10	05/25/10	50,240,317.49
05/25/10	06/25/10	48,849,576.58
06/25/10	07/25/10	47,498,534.20
07/25/10	08/25/10	46,186,005.96
08/25/10	09/25/10	44,910,844.61
09/25/10	10/25/10	43,646,991.36
10/25/10	11/25/10	41,420,965.36
11/25/10	12/25/10	35,460,573.47
12/25/10	01/25/11	32,952,670.31
01/25/11	02/25/11	32,130,418.45
02/25/11	03/25/11	31,328,362.35
03/25/11	04/25/11	30,546,011.19
04/25/11	05/25/11	29,782,885.97
05/25/11	06/25/11	29,038,519.27
06/25/11	07/25/11	28,312,454.92
07/25/11	08/25/11	27,604,247.80
08/25/11	09/25/11	26,913,463.50
09/25/11	Termination Date	26,239,678.13

Form	Item	Description	Responsible Party
10-D	Must be filed within 15 days of the Payment Date.
	1	Distribution and Pool Performance Information
		Item 1121(a) - Distribution and Pool Performance Information
		(1) Any applicable record dates, accrual dates, determination dates for calculating distributions and actual distribution dates for the distribution period.	5.09 statement
		(2) Cash flows received and the sources thereof for distributions, fees and expenses.	5.09 statement
		(3) Calculated amounts and distribution of the flow of funds for the period itemized by type and priority of payment, including:	5.09 statement
		(i) Fees or expenses accrued and paid, with an identification of the general purpose of such fees and the party receiving such fees or expenses.	5.09 statement
		(ii) Payments accrued or paid with respect to enhancement or other support identified in Item 1114 of Regulation AB (such as insurance premiums or other enhancement maintenance fees), with an identification of the general purpose of such payments and the party receiving such payments.	5.09 statement
		(iii) Principal, interest and other distributions accrued and paid on the asset-backed securities by type and by class or series and any principal or interest shortfalls or carryovers.	5.09 statement
		(iv) The amount of excess cash flow or excess spread and the disposition of excess cash flow.	5.09 statement
		(4) Beginning and ending principal balances of the asset-backed securities.	5.09 statement
		(5) Interest rates applicable to the pool assets and the asset-backed securities, as applicable. Consider providing interest rate information for pool assets in appropriate distributional groups or incremental ranges.	5.09 statement
		(6) Beginning and ending balances of transaction accounts, such as reserve accounts, and material account activity during the period.	5.09 statement
		(7) Any amounts drawn on any credit enhancement or other support identified in Item 1114 of Regulation AB, as applicable, and the amount of coverage remaining under any such enhancement, if known and applicable.	5.09 statement
		(8) Number and amount of pool assets at the beginning and ending of each period, and updated pool composition information, such as weighted average coupon, weighted average remaining term, pool factors and prepayment amounts.	5.09 statement Updated pool composition information fields to be as specified by Depositor from time to time
		(9) Delinquency and loss information for the period. In addition, describe any material changes to the information specified in Item 1100(b)(5) of Regulation AB regarding the pool assets.	5.09 statement: Servicer and Master Servicer. Form 10-D report: Depositor
		(10) Information on the amount, terms and general purpose of any advances made or reimbursed during the period, including the general use of funds advanced and the general source of funds for reimbursements.	5.09 statement: Master Servicer and Servicer
		(11) Any material modifications, extensions or waivers to pool asset terms, fees, penalties or payments during the distribution period or that have cumulatively become material over time.	Form 10-D report; Servicer
		(12) Material breaches of pool asset representations or warranties or transaction covenants.	Form 10-D report: Servicer
		(13) Information on ratio, coverage or other tests used for determining any early amortization, liquidation or other performance trigger and whether the trigger was met.	5.09 statement
		(14) Information regarding any new issuance of asset-backed securities backed by the same asset pool, [information regarding] any pool asset changes (other than in connection with a pool asset converting into cash in accordance with its terms), such as additions or removals in connection with a prefunding or revolving period and pool asset substitutions and repurchases (and purchase rates, if applicable), and cash flows available for future purchases, such as the balances of any prefunding or revolving accounts, if applicable. Disclose any material changes in the solicitation, credit-granting, underwriting, origination, acquisition or pool selection criteria or procedures, as applicable, used to originate, acquire or select the new pool assets.	Form 10-D report: Depositor Form 10-D report: Depositor and Servicer Form 10-D report: Depositor, Master Servicer and Servicer
		Item 1121(b) - Pre-Funding or Revolving Period Information Updated pool information as required under Item 1121(b).	Depositor / N/A
	2	Legal Proceedings
	2	Item 1117 - Legal proceedings pending against the following entities, or their respective property, that is material to Noteholders, including proceedings known to be contemplated by governmental authorities: Sponsor Depositor Indenture Trustee Trust Administrator Issuing entity Master Servicer Servicer Custodian	Sponsor Depositor Indenture Trustee Trust Administrator Depositor Master Servicer Servicer Custodian
	3	Sales of Securities and Use of Proceeds
	3	Information from Item 2(a) of Part II of Form 10-Q: With respect to any sale of securities by the sponsor, depositor or issuing entity, that are backed by the same asset pool or are otherwise issued by the issuing entity, whether or not registered, provide the sales and use of proceeds information in Item 701 of Regulation S-K. Pricing information can be omitted if securities were not registered.	Depositor
	4	Defaults Upon Senior Securities
	4	Information from Item 3 of Part II of Form 10-Q: Report the occurrence of any Event of Default (after expiration of any grace period and provision of any required notice)	Trust Administrator
	5	Submission of Matters to a Vote of Security Holders
	5	Information from Item 4 of Part II of Form 10-Q	Trust Administrator
	6	Significant Obligors of Pool Assets
		Item 1112(b) - Significant Obligor Financial Information*	N/A
		*This information need only be reported on the Form 10-D for the distribution period in which updated information is required pursuant to the Item.
	7	Significant Enhancement Provider Information
		Item 1114(b)(2) - Credit Enhancement Provider Financial Information* Determining applicable disclosure threshold Obtaining required financial information or effecting incorporation by reference	N/A N/A
		Item 1115(b) - Derivative Counterparty Financial Information* Determining current maximum probable exposure Determining current significance percentage Obtaining required financial information or effecting incorporation by reference	Depositor Depositor Depositor
		*This information need only be reported on the Form 10-D for the distribution period in which updated information is required pursuant to the Items.
	8	Other Information
	8	Disclose any information required to be reported on Form 8-K during the period covered by the Form 10-D but not reported	The party responsible for the applicable Form 8-K item as indicated below
	9	Exhibits
		Distribution report	Trust Administrator
		Exhibits required by Item 601 of Regulation S-K, such as material agreements	Depositor
8-K	Must be filed within four business days of an event reportable on Form 8-K.
	1.01	Entry into a Material Definitive Agreement
	1.01	Disclosure is required regarding entry into or amendment of any definitive agreement that is material to the securitization, even if depositor is not a party. Examples: servicing agreement, custodial agreement. Note: disclosure not required as to definitive agreements that are fully disclosed in the prospectus	All parties to this Agreement, to the extent such party is a party to such agreement or amendment
	1.02	Termination of a Material Definitive Agreement
	1.02	Disclosure is required regarding termination of any definitive agreement that is material to the securitization (other than expiration in accordance with its terms), even if depositor is not a party. Examples: servicing agreement, custodial agreement.	All parties to this Agreement to the extent such party is a party to such agreement
	1.03	Bankruptcy or Receivership
	1.03	Disclosure is required regarding the bankruptcy or receivership, if known to the Depositor, Master Servicer or Indenture Trustee, with respect to any of the following: Sponsor (Seller), Depositor, Servicer, Indenture Trustee, Swap Provider, Cap Provider, Custodian	Depositor/Servicer (as to itself)/Indenture Trustee (as to itself and Custodian)/Trust Administrator
	2.04	Triggering Events that Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
	2.04	Includes an early amortization, performance trigger or other event, including event of default, that would materially alter the payment priority/distribution of cash flows/amortization schedule. Disclosure will be made of events other than waterfall triggers which are disclosed in the 5.09 statement	Depositor/Trust Administrator
	3.03	Material Modification to Rights of Security Holders
	3.03	Disclosure is required of any material modification to documents defining the rights of Noteholders, including the Transfer and Servicing Agreement	Party requesting material modification
	5.03	Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year
	5.03	Disclosure is required of any amendment “to the governing documents of the issuing entity”	Depositor
	5.06	Change in Shell Company Status
	5.06	[Not applicable to ABS issuers]	Depositor
	6.01	ABS Informational and Computational Material
	6.01	[Not included in reports to be filed under Section 4.07]	Depositor
	6.02	Change of Master Servicer or Indenture Trustee
	6.02	Requires disclosure of any removal, replacement, substitution or addition of any master servicer, affiliated servicer, other servicer servicing 10% or more of pool assets at time of report, other material servicers, certificate administrator or indenture trustee. Reg AB disclosure about any new servicer or indenture trustee is also required.	Servicer (with respect to itself or any Subservicer used by it) or Master Servicer Depositor
	6.03	Change in Credit Enhancement or Other External Support
	6.03	Covers termination of any enhancement in manner other than by its terms, the addition of an enhancement, or a material change in the enhancement provided. Applies to external credit enhancements as well as derivatives. Reg AB disclosure about any new enhancement provider is also required.	Depositor
	6.04	Failure to Make a Required Distribution	Trust Administrator
	6.05	Securities Act Updating Disclosure
		If any material pool characteristic differs by 5% or more at the time of issuance of the securities from the description in the final prospectus, provide updated Reg AB disclosure about the actual asset pool.	Depositor
		If there are any new servicers or originators required to be disclosed under Regulation AB as a result of the foregoing, provide the information called for in Items 1108 and 1110 respectively.	Depositor
	7.01	Regulation FD Disclosure	All parties to this Agreement
	8.01	Other Events
	8.01	Any event, with respect to which information is not otherwise called for in Form 8-K, that the registrant deems of importance to security holders.	Depositor
	9.01	Financial Statements and Exhibits	Depositor
10-K	Must be filed within 90 days of the fiscal year end for the registrant.
	9B	Other Information
	9B	Disclose any information required to be reported on Form 8-K during the fourth quarter covered by the Form 10-K but not reported	The party responsible for the applicable Form 8-K item as indicated above
	15	Exhibits and Financial Statement Schedules
		Item 1112(b) - Significant Obligor Financial Information	N/A
		Item 1114(b)(2) - Credit Enhancement Provider Financial Information Determining applicable disclosure threshold Obtaining required financial information or effecting incorporation by reference	N/A N/A
		Item 1115(b) - Derivative Counterparty Financial Information Determining current maximum probable exposure Determining current significance percentage Obtaining required financial information or effecting incorporation by reference	Depositor Depositor Depositor
		Item 1117 - Sponsor Depositor Indenture Trustee Issuing entity Master Servicer Servicer Custodian	Sponsor Depositor Indenture Trustee Issuing entity Master Servicer Servicer Custodian
		Item 1119 - Affiliations and relationships between the following entities, or their respective affiliates, that are material to Noteholders: Sponsor Depositor Indenture Trustee Issuing entity Master Servicer Originator Custodian Credit Enhancer/Support Provider, if any Significant Obligor, if any	Sponsor (only with respect to the Servicer, the Originator, the Indenture Trustee, the Custodian, the Master Servicer, the Trust Administrator and the Swap Provider) Depositor Indenture Trustee (only with respect to affiliations and relationships with the sponsor, depositor or issuing entity) Issuing entity Master Servicer Depositor Custodian (only with respect to affiliations and relationships with the sponsor, depositor or issuing entity) Depositor Depositor
		Item 1122 - Assessment of Compliance with Servicing Criteria	Each Party participating in the servicing function
		Item 1123 -Servicer Compliance Statement	Master Servicer, Servicer and Trust Administrator

Exhibit A-1	Form of Initial Certification
Exhibit A-2	Form of Interim Certification
Exhibit A-3	Form of Final Certification
Exhibit A-4	Form of Endorsement
Exhibit B	[Reserved]
Exhibit C	Form of Lost Note Affidavit
Exhibit D	Custodial Agreement
Exhibit E	Custodial Account Letter Agreement
Exhibit F	Escrow Account Letter Agreement
Exhibit G-1	Form of Monthly Remittance Advice
Exhibit G-1A	Form of Monthly Remittance Advice
Exhibit G-2	Standard Layout For Monthly Defaulted Loan Report
Exhibit G-3	Form 332 Realized Loss Report
Exhibit H	Form of Back-Up Certification
Exhibit I	Interest Rate Swap Agreement
Exhibit J	Relevant Servicing Criteria
Exhibit K	Form 10-D, Form 8-K and Form 10-K Reporting Responsibility
Exhibit L	Additional Disclosure Notification

Schedule A	Mortgage Loan Schedule

Class Designation	Note Interest Rate		Initial Class Principal Amount		Minimum Denominations
Class A-1		Variable (1)	$	244,348,000	$	25,000
Class A-2		Variable (1)	$	62,902,000	$	25,000
Class A-3		Variable (1)	$	127,232,000	$	25,000
Class A-4		Variable (1)	$	22,641,000	$	25,000
Class M-1		Variable (1)	$	44,948,000	$	25,000
Class M-2		Variable (1)	$	13,148,000	$	25,000
Class M-3		Variable (1)	$	11,619,000	$	25,000
Class M-4		Variable (1)	$	11,313,000	$	25,000
Class M-5		Variable (1)	$	9,785,000	$	25,000
Class M-6		Variable (1)	$	12,231,000	$	25,000
Class M-7		Variable (1)	$	15,594,000	$	25,000
Class M-8		Variable (1)	$	6,115,000	$	25,000
Class M-9		Variable (1)	$	5,504,000	$	25,000
Class M-10		Variable (1)	$	3,058,000	$	25,000
Class M-11		Variable (1)	$	6,115,000	$	25,000

Payment Date	Required Loss Percentage
May 2008 through April 2009	2.40% for the first month, plus an additional 1/12^th of 1.35% for each month thereafter
May 2009 through April 2010	3.75% for the first month, plus an additional 1/12^th of 1.25% for each month thereafter
May 2010 through April 2011	5.00% for the first month, plus an additional 1/12^th of 1.00% for each month thereafter
May 2011 through April 2012	6.00% for the first month, plus an additional 1/12^th of 0.50% for each month thereafter
May 2012 and thereafter	6.50%

Class	Interest Margin (1)		Interest Margin (2)
A-1		0.060%	0.120%
A-2		0.120%	0.240%
A-3		0.160%	0.320%
A-4		0.280%	0.560%
M-1		0.320%	0.480%
M-2		0.340%	0.510%
M-3		0.400%	0.600%
M-4		0.430%	0.645%
M-5		0.540%	0.810%
M-6		1.100%	1.650%
M-7		1.400%	2.100%
M-8		2.150%	3.225%
M-9		2.500%	3.750%
M-10		2.500%	3.750%
M-11		2.500%	3.750%

Payment Date	Required Loss Percentage
May 2009 through April 2010	1.75% with respect to May 2009, plus an additional 1/12th of 1.00% for each month thereafter
May 2010 through April 2011	2.75% with respect to May 2010, plus an additional 1/12th of 0.80% for each month thereafter
May 2011 through April 2012	3.55% with respect to May 2011, plus an additional 1/12th of 0.85% for each month thereafter
May 2012 and thereafter	4.40%

Class		Target Percentage
M-3		72.30%
M-4		76.00%
M-5		79.20%
M-6		83.20%
M-7		88.30%
M-8		90.30%
M-9		92.10%
M-10		93.10%
M-11		95.10%

Deutsche Bank National Trust Company 1761 East Saint Andrew Place Santa Ana, California 92705 Attention: Trust Administration, AA0601	Wells Fargo Bank, N.A. 9062 Old Annapolis Road Columbia, Maryland 21045 Attn: Aames Mortgage Investment Trust 2006-1
Financial Asset Securities Corp. 1585 Broadway New York, New York 10036	Aames Funding Corporation 350 South Grand Avenue, 43rd Floor Los Angeles, California 90071

Column Name	Description	Decimal	Format Comment	Max Size
SER_INVESTOR_NBR	A value assigned by the Servicer to define a group of loans.		Text up to 10 digits	20
LOAN_NBR	A unique identifier assigned to each loan by the investor.		Text up to 10 digits	10
SERVICER_LOAN_NBR	A unique number assigned to a loan by the Servicer. This may be different than the LOAN_NBR.		Text up to 10 digits	10
BORROWER_NAME	The borrower name as received in the file. It is not separated by first and last name.		Maximum length of 30 (Last, First)	30
SCHED_PAY_AMT	Scheduled monthly principal and scheduled interest payment that a borrower is expected to pay, P&I constant.	2	No commas(,) or dollar signs ($)	11
NOTE_INT_RATE	The loan interest rate as reported by the Servicer.	4	Max length of 6	6
NET_INT_RATE	The loan gross interest rate less the service fee rate as reported by the Servicer.	4	Max length of 6	6
SERV_FEE_RATE	The servicer's fee rate for a loan as reported by the Servicer.	4	Max length of 6	6
SERV_FEE_AMT	The servicer's fee amount for a loan as reported by the Servicer.	2	No commas(,) or dollar signs ($)	11
NEW_PAY_AMT	The new loan payment amount as reported by the Servicer.	2	No commas(,) or dollar signs ($)	11
NEW_LOAN_RATE	The new loan rate as reported by the Servicer.	4	Max length of 6	6
ARM_INDEX_RATE	The index the Servicer is using to calculate a forecasted rate.	4	Max length of 6	6
ACTL_BEG_PRIN_BAL	The borrower's actual principal balance at the beginning of the processing cycle.	2	No commas(,) or dollar signs ($)	11
ACTL_END_PRIN_BAL	The borrower's actual principal balance at the end of the processing cycle.	2	No commas(,) or dollar signs ($)	11
BORR_NEXT_PAY_DUE_DATE	The date at the end of processing cycle that the borrower's next payment is due to the Servicer, as reported by Servicer.		MM/DD/YYYY	10
SERV_CURT_AMT_1	The first curtailment amount to be applied.	2	No commas(,) or dollar signs ($)	11
SERV_CURT_DATE_1	The curtailment date associated with the first curtailment amount.		MM/DD/YYYY	10
CURT_ADJ_ AMT_1	The curtailment interest on the first curtailment amount, if applicable.	2	No commas(,) or dollar signs ($)	11
SERV_CURT_AMT_2	The second curtailment amount to be applied.	2	No commas(,) or dollar signs ($)	11
SERV_CURT_DATE_2	The curtailment date associated with the second curtailment amount.		MM/DD/YYYY	10
CURT_ADJ_ AMT_2	The curtailment interest on the second curtailment amount, if applicable.	2	No commas(,) or dollar signs ($)	11
SERV_CURT_AMT_3	The third curtailment amount to be applied.	2	No commas(,) or dollar signs ($)	11
SERV_CURT_DATE_3	The curtailment date associated with the third curtailment amount.		MM/DD/YYYY	10
CURT_ADJ_AMT_3	The curtailment interest on the third curtailment amount, if applicable.	2	No commas(,) or dollar signs ($)	11
PIF_AMT	The loan "paid in full" amount as reported by the Servicer.	2	No commas(,) or dollar signs ($)	11
PIF_DATE	The paid in full date as reported by the Servicer.		MM/DD/YYYY	10
			Action Code Key: 15=Bankruptcy, 30=Foreclosure, , 60=PIF, 63=Substitution, 65=Repurchase,70=REO	2
ACTION_CODE	The standard FNMA numeric code used to indicate the default/delinquent status of a particular loan.			2
INT_ADJ_AMT	The amount of the interest adjustment as reported by the Servicer.	2	No commas(,) or dollar signs ($)	11
SOLDIER_SAILOR_ADJ_AMT	The Soldier and Sailor Adjustment amount, if applicable.	2	No commas(,) or dollar signs ($)	11
NON_ADV_LOAN_AMT	The Non Recoverable Loan Amount, if applicable.	2	No commas(,) or dollar signs ($)	11
LOAN_LOSS_AMT	The amount the Servicer is passing as a loss, if applicable.	2	No commas(,) or dollar signs ($)	11
SCHED_BEG_PRIN_BAL	The scheduled outstanding principal amount due at the beginning of the cycle date to be passed through to investors.	2	No commas(,) or dollar signs ($)	11
SCHED_END_PRIN_BAL	The scheduled principal balance due to investors at the end of a processing cycle.	2	No commas(,) or dollar signs ($)	11
SCHED_PRIN_AMT	The scheduled principal amount as reported by the Servicer for the current cycle -- only applicable for Scheduled/Scheduled Loans.	2	No commas(,) or dollar signs ($)	11
SCHED_NET_INT	The scheduled gross interest amount less the service fee amount for the current cycle as reported by the Servicer -- only applicable for Scheduled/Scheduled Loans.	2	No commas(,) or dollar signs ($)	11
ACTL_PRIN_AMT	The actual principal amount collected by the Servicer for the current reporting cycle -- only applicable for Actual/Actual Loans.	2	No commas(,) or dollar signs ($)	11
ACTL_NET_INT	The actual gross interest amount less the service fee amount for the current reporting cycle as reported by the Servicer -- only applicable for Actual/Actual Loans.	2	No commas(,) or dollar signs ($)	11
PREPAY_PENALTY_ AMT	The penalty amount received when a borrower prepays on his loan as reported by the Servicer.	2	No commas(,) or dollar signs ($)	11
PREPAY_PENALTY_ WAIVED	The prepayment penalty amount for the loan waived by the servicer.	2	No commas(,) or dollar signs ($)	11

MOD_DATE	The Effective Payment Date of the Modification for the loan.		MM/DD/YYYY	10
MOD_TYPE	The Modification Type.		Varchar - value can be alpha or numeric	30
DELINQ_P&I_ADVANCE_AMT	The current outstanding principal and interest advances made by Servicer.	2	No commas(,) or dollar signs ($)	11

Column/Header Name	Description	Decimal	Format Comment
SERVICER_LOAN_NBR	A unique number assigned to a loan by the Servicer. This may be different than the LOAN_NBR
LOAN_NBR	A unique identifier assigned to each loan by the originator.
CLIENT_NBR	Servicer Client Number
SERV_INVESTOR_NBR	Contains a unique number as assigned by an external servicer to identify a group of loans in their system.
BORROWER_FIRST_NAME	First Name of the Borrower.
BORROWER_LAST_NAME	Last name of the borrower.
PROP_ADDRESS	Street Name and Number of Property
PROP_STATE	The state where the property located.
PROP_ZIP	Zip code where the property is located.
BORR_NEXT_PAY_DUE_DATE	The date that the borrower's next payment is due to the servicer at the end of processing cycle, as reported by Servicer.		MM/DD/YYYY
LOAN_TYPE	Loan Type (i.e. FHA, VA, Conv)
BANKRUPTCY_FILED_DATE	The date a particular bankruptcy claim was filed.		MM/DD/YYYY
BANKRUPTCY_CHAPTER_CODE	The chapter under which the bankruptcy was filed.
BANKRUPTCY_CASE_NBR	The case number assigned by the court to the bankruptcy filing.
POST_PETITION_DUE_DATE	The payment due date once the bankruptcy has been approved by the courts		MM/DD/YYYY
BANKRUPTCY_DCHRG_DISM_DATE	The Date The Loan Is Removed From Bankruptcy. Either by Dismissal, Discharged and/or a Motion For Relief Was Granted.		MM/DD/YYYY
LOSS_MIT_APPR_DATE	The Date The Loss Mitigation Was Approved By The Servicer		MM/DD/YYYY
LOSS_MIT_TYPE	The Type Of Loss Mitigation Approved For A Loan Such As;
LOSS_MIT_EST_COMP_DATE	The Date The Loss Mitigation /Plan Is Scheduled To End/Close		MM/DD/YYYY
LOSS_MIT_ACT_COMP_DATE	The Date The Loss Mitigation Is Actually Completed		MM/DD/YYYY
FRCLSR_APPROVED_DATE	The date DA Admin sends a letter to the servicer with instructions to begin foreclosure proceedings.		MM/DD/YYYY
ATTORNEY_REFERRAL_DATE	Date File Was Referred To Attorney to Pursue Foreclosure		MM/DD/YYYY
FIRST_LEGAL_DATE	Notice of 1st legal filed by an Attorney in a Foreclosure Action		MM/DD/YYYY
FRCLSR_SALE_EXPECTED_DATE	The date by which a foreclosure sale is expected to occur.		MM/DD/YYYY
FRCLSR_SALE_DATE	The actual date of the foreclosure sale.		MM/DD/YYYY
FRCLSR_SALE_AMT	The amount a property sold for at the foreclosure sale.	2	No commas(,) or dollar signs ($)
EVICTION_START_DATE	The date the servicer initiates eviction of the borrower.		MM/DD/YYYY
EVICTION_COMPLETED_DATE	The date the court revokes legal possession of the property from the borrower.		MM/DD/YYYY
LIST_PRICE	The price at which an REO property is marketed.	2	No commas(,) or dollar signs ($)
LIST_DATE	The date an REO property is listed at a particular price.		MM/DD/YYYY
OFFER_AMT	The dollar value of an offer for an REO property.	2	No commas(,) or dollar signs ($)
OFFER_DATE_TIME	The date an offer is received by DA Admin or by the Servicer.		MM/DD/YYYY
REO_CLOSING_DATE	The date the REO sale of the property is scheduled to close.		MM/DD/YYYY
REO_ACTUAL_CLOSING_DATE	Actual Date Of REO Sale		MM/DD/YYYY
OCCUPANT_CODE	Classification of how the property is occupied.
PROP_CONDITION_CODE	A code that indicates the condition of the property.
PROP_INSPECTION_DATE	The date a property inspection is performed.		MM/DD/YYYY
APPRAISAL_DATE	The date the appraisal was done.		MM/DD/YYYY
CURR_PROP_VAL	The current "as is" value of the property based on brokers price opinion or appraisal.	2
REPAIRED_PROP_VAL	The amount the property would be worth if repairs are completed pursuant to a broker's price opinion or appraisal.	2
If applicable:
DELINQ_STATUS_CODE	FNMA Code Describing Status of Loan
DELINQ_REASON_CODE	The circumstances which caused a borrower to stop paying on a loan. Code indicates the reason why the loan is in default for this cycle.
MI_CLAIM_FILED_DATE	Date Mortgage Insurance Claim Was Filed With Mortgage Insurance Company.		MM/DD/YYYY
MI_CLAIM_AMT	Amount of Mortgage Insurance Claim Filed		No commas(,) or dollar signs ($)
MI_CLAIM_PAID_DATE	Date Mortgage Insurance Company Disbursed Claim Payment		MM/DD/YYYY
MI_CLAIM_AMT_PAID	Amount Mortgage Insurance Company Paid On Claim	2	No commas(,) or dollar signs ($)
POOL_CLAIM_FILED_DATE	Date Claim Was Filed With Pool Insurance Company		MM/DD/YYYY
POOL_CLAIM_AMT	Amount of Claim Filed With Pool Insurance Company	2	No commas(,) or dollar signs ($)
POOL_CLAIM_PAID_DATE	Date Claim Was Settled and The Check Was Issued By The Pool Insurer		MM/DD/YYYY
POOL_CLAIM_AMT_PAID	Amount Paid On Claim By Pool Insurance Company	2	No commas(,) or dollar signs ($)
FHA_PART_A_CLAIM_FILED_DATE	Date FHA Part A Claim Was Filed With HUD		MM/DD/YYYY
FHA_PART_A_CLAIM_AMT	Amount of FHA Part A Claim Filed	2	No commas(,) or dollar signs ($)
FHA_PART_A_CLAIM_PAID_DATE	Date HUD Disbursed Part A Claim Payment		MM/DD/YYYY
FHA_PART_A_CLAIM_PAID_AMT	Amount HUD Paid on Part A Claim	2	No commas(,) or dollar signs ($)
FHA_PART_B_CLAIM_FILED_DATE	Date FHA Part B Claim Was Filed With HUD		MM/DD/YYYY
FHA_PART_B_CLAIM_AMT	Amount of FHA Part B Claim Filed	2	No commas(,) or dollar signs ($)
FHA_PART_B_CLAIM_PAID_DATE	Date HUD Disbursed Part B Claim Payment		MM/DD/YYYY
FHA_PART_B_CLAIM_PAID_AMT	Amount HUD Paid on Part B Claim	2	No commas(,) or dollar signs ($)
VA_CLAIM_FILED_DATE	Date VA Claim Was Filed With the Veterans Admin		MM/DD/YYYY
VA_CLAIM_PAID_DATE	Date Veterans Admin. Disbursed VA Claim Payment		MM/DD/YYYY
VA_CLAIM_PAID_AMT	Amount Veterans Admin. Paid on VA Claim	2	No commas(,) or dollar signs ($)

Delinquency Code	Delinquency Description
001	FNMA-Death of principal mortgagor
002	FNMA-Illness of principal mortgagor
003	FNMA-Illness of mortgagor’s family member
004	FNMA-Death of mortgagor’s family member
005	FNMA-Marital difficulties
006	FNMA-Curtailment of income
007	FNMA-Excessive Obligation
008	FNMA-Abandonment of property
009	FNMA-Distant employee transfer
011	FNMA-Property problem
012	FNMA-Inability to sell property
013	FNMA-Inability to rent property
014	FNMA-Military Service
015	FNMA-Other
016	FNMA-Unemployment
017	FNMA-Business failure
019	FNMA-Casualty loss
022	FNMA-Energy environment costs
023	FNMA-Servicing problems
026	FNMA-Payment adjustment
027	FNMA-Payment dispute
029	FNMA-Transfer of ownership pending
030	FNMA-Fraud
031	FNMA-Unable to contact borrower
INC	FNMA-Incarceration

Status Code	Status Description
09	Forbearance
17	Pre-foreclosure Sale Closing Plan Accepted
24	Government Seizure
26	Refinance
27	Assumption
28	Modification
29	Charge-Off
30	Third Party Sale
31	Probate
32	Military Indulgence
43	Foreclosure Started
44	Deed-in-Lieu Started
49	Assignment Completed
61	Second Lien Considerations
62	Veteran’s Affairs-No Bid
63	Veteran’s Affairs-Refund
64	Veteran’s Affairs-Buydown
65	Chapter 7 Bankruptcy
66	Chapter 11 Bankruptcy
67	Chapter 13 Bankruptcy

(1)		Actual Unpaid Principal Balance of Mortgage Loan		$ ______________	(1)
(2)		Interest accrued at Net Rate		________________	(2)
(3)		Accrued Servicing Fees		________________	(3)
(4)		Attorney's Fees		________________	(4)
(5)		Taxes (see page 2)		________________	(5)
(6)		Property Maintenance		________________	(6)
(7)		MI/Hazard Insurance Premiums (see page 2)		________________	(7)
(8)		Utility Expenses		________________	(8)
(9)		Appraisal/BPO		________________	(9)
(10)		Property Inspections		________________	(10)
(11)		FC Costs/Other Legal Expenses		________________	(11)
(12)		Other (itemize)		$________________	(12)
Cash for Keys__________________________				________________
HOA/Condo Fees_______________________				________________
______________________________________				________________
______________________________________				________________
Total Expenses				$ _______________	(13)
Credits:
(14)	Escrow Balance			$ _______________	(14)
(15)	HIP Refund			________________	(15)
(16)	Rental Receipts			________________	(16)
(17)	Hazard Loss Proceeds			________________	(17)
(18)	Primary Mortgage Insurance / Gov’t Insurance			________________	(18a)
	HUD Part A
	HUD Part B			________________	(18b)
(19)	Pool Insurance Proceeds			________________	(19)
(20)	Proceeds from Sale of Acquired Property			________________	(20)
(21)	Other (itemize)			________________	(21)
_________________________________________				_________________
_________________________________________				_________________
Total Credits			$________________		(22)
Total Realized Loss (or Amount of Gain)			$________________		(23)

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

Reg AB Reference	Servicing Criteria	Primary Servicer	Master Servicer	Trust Admin.	Trustee/ Custodian
	General Servicing Considerations
1122(d)(1)(i)	Policies and procedures are instituted to monitor any performance or other triggers and events of default in accordance with the transaction agreements.	X	X	X
1122(d)(1)(ii)	If any material servicing activities are outsourced to third parties, policies and procedures are instituted to monitor the third party’s performance and compliance with such servicing activities.	X	X	X
1122(d)(1)(iii)	Any requirements in the transaction agreements to maintain a back-up servicer for the Pool Assets are maintained.
1122(d)(1)(iv)	A fidelity bond and errors and omissions policy is in effect on the party participating in the servicing function throughout the reporting period in the amount of coverage required by and otherwise in accordance with the terms of the transaction agreements.	X	X
	Cash Collection and Administration
1122(d)(2)(i)	Payments on pool assets are deposited into the appropriate custodial bank accounts and related bank clearing accounts no more than two business days following receipt, or such other number of days specified in the transaction agreements.	X	X	X
1122(d)(2)(ii)	Disbursements made via wire transfer on behalf of an obligor or to an investor are made only by authorized personnel.	X	X	X
1122(d)(2)(iii)	Advances of funds or guarantees regarding collections, cash flows or distributions, and any interest or other fees charged for such advances, are made, reviewed and approved as specified in the transaction agreements.	X	X
1122(d)(2)(iv)	The related accounts for the transaction, such as cash reserve accounts or accounts established as a form of over collateralization, are separately maintained (e.g., with respect to commingling of cash) as set forth in the transaction agreements.	X	X	X
1122(d)(2)(v)	Each custodial account is maintained at a federally insured depository institution as set forth in the transaction agreements. For purposes of this criterion, “federally insured depository institution” with respect to a foreign financial institution means a foreign financial institution that meets the requirements of Rule 13k-1(b)(1) of the Securities Exchange Act.	X	X	X
1122(d)(2)(vi)	Unissued checks are safeguarded so as to prevent unauthorized access.	X
1122(d)(2)(vii)	Reconciliations are prepared on a monthly basis for all asset-backed securities related bank accounts, including custodial accounts and related bank clearing accounts. These reconciliations are (A) mathematically accurate; (B) prepared within 30 calendar days after the bank statement cutoff date, or such other number of days specified in the transaction agreements; (C) reviewed and approved by someone other than the person who prepared the reconciliation; and (D) contain explanations for reconciling items. These reconciling items are resolved within 90 calendar days of their original identification, or such other number of days specified in the transaction agreements.	X	X	X
	Investor Remittances and Reporting
1122(d)(3)(i)	Reports to investors, including those to be filed with the Commission, are maintained in accordance with the transaction agreements and applicable Commission requirements. Specifically, such reports (A) are prepared in accordance with timeframes and other terms set forth in the transaction agreements; (B) provide information calculated in accordance with the terms specified in the transaction agreements; (C) are filed with the Commission as required by its rules and regulations; and (D) agree with investors’ or the trustee’s records as to the total unpaid principal balance and number of Pool Assets serviced by the Servicer.	X (with respect to (B) and (D) only)	X	X
1122(d)(3)(ii)	Amounts due to investors are allocated and remitted in accordance with timeframes, distribution priority and other terms set forth in the transaction agreements.	N/A	X	X
1122(d)(3)(iii)	Disbursements made to an investor are posted within two business days to the Servicer’s investor records, or such other number of days specified in the transaction agreements.	N/A	X	X
1122(d)(3)(iv)	Amounts remitted to investors per the investor reports agree with cancelled checks, or other form of payment, or custodial bank statements.	X	X	X
	Pool Asset Administration
1122(d)(4)(i)	Collateral or security on pool assets is maintained as required by the transaction agreements or related pool asset documents.	X			X
1122(d)(4)(ii)	Pool assets and related documents are safeguarded as required by the transaction agreements	X			X
1122(d)(4)(iii)	Any additions, removals or substitutions to the asset pool are made, reviewed and approved in accordance with any conditions or requirements in the transaction agreements.	X
1122(d)(4)(iv)	Payments on pool assets, including any payoffs, made in accordance with the related pool asset documents are posted to the Servicer’s obligor records maintained no more than two business days after receipt, or such other number of days specified in the transaction agreements, and allocated to principal, interest or other items (e.g., escrow) in accordance with the related pool asset documents.	X
1122(d)(4)(v)	The Servicer’s records regarding the pool assets agree with the Servicer’s records with respect to an obligor’s unpaid principal balance.	X
1122(d)(4)(vi)	Changes with respect to the terms or status of an obligor's pool assets (e.g., loan modifications or re-agings) are made, reviewed and approved by authorized personnel in accordance with the transaction agreements and related pool asset documents.	X
1122(d)(4)(vii)	Loss mitigation or recovery actions (e.g., forbearance plans, modifications and deeds in lieu of foreclosure, foreclosures and repossessions, as applicable) are initiated, conducted and concluded in accordance with the timeframes or other requirements established by the transaction agreements.	X
1122(d)(4)(viii)	Records documenting collection efforts are maintained during the period a pool asset is delinquent in accordance with the transaction agreements. Such records are maintained on at least a monthly basis, or such other period specified in the transaction agreements, and describe the entity’s activities in monitoring delinquent pool assets including, for example, phone calls, letters and payment rescheduling plans in cases where delinquency is deemed temporary (e.g., illness or unemployment).	X
1122(d)(4)(ix)	Adjustments to interest rates or rates of return for pool assets with variable rates are computed based on the related pool asset documents.	X
1122(d)(4)(x)	Regarding any funds held in trust for an obligor (such as escrow accounts): (A) such funds are analyzed, in accordance with the obligor’s pool asset documents, on at least an annual basis, or such other period specified in the transaction agreements; (B) interest on such funds is paid, or credited, to obligors in accordance with applicable pool asset documents and state laws; and (C) such funds are returned to the obligor within 30 calendar days of full repayment of the related pool assets, or such other number of days specified in the transaction agreements.	X
1122(d)(4)(xi)	Payments made on behalf of an obligor (such as tax or insurance payments) are made on or before the related penalty or expiration dates, as indicated on the appropriate bills or notices for such payments, provided that such support has been received by the servicer at least 30 calendar days prior to these dates, or such other number of days specified in the transaction agreements.	X
1122(d)(4)(xii)	Any late payment penalties in connection with any payment to be made on behalf of an obligor are paid from the Servicer’s funds and not charged to the obligor, unless the late payment was due to the obligor’s error or omission.	X
1122(d)(4)(xiii)	Disbursements made on behalf of an obligor are posted within two business days to the obligor’s records maintained by the servicer, or such other number of days specified in the transaction agreements.	X
1122(d)(4)(xiv)	Delinquencies, charge-offs and uncollectible accounts are recognized and recorded in accordance with the transaction agreements.	X	X
1122(d)(4)(xv)	Any external enhancement or other support, identified in Item 1114(a)(1) through (3) or Item 1115 of Regulation AB, is maintained as set forth in the transaction agreements.			X