POOLING AND SERVICING AGREEMENT

                              ACE SECURITIES CORP.
                                    Depositor

                          SAXON MORTGAGE SERVICES, INC.
                                    Servicer

                             WELLS FARGO BANK, N.A.
                   Master Servicer and Securities Administrator

                       HSBC BANK USA, NATIONAL ASSOCIATION
                                     Trustee

                         POOLING AND SERVICING AGREEMENT
                          Dated as of February 1, 2005

          ACE Securities Corp. Home Equity Loan Trust, Series 2005-RM1
                     Asset Backed Pass-Through Certificates


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                                TABLE OF CONTENTS

ARTICLE I DEFINITIONS                                                            4

   SECTION 1.01.      Defined Terms.............................................4
      Accepted Master Servicing Practices......................................4
      Accepted Servicing Practices.............................................4
      Account..................................................................4
      Accrued Certificate Interest.............................................4
      Adjustable Rate Mortgage Loan............................................4
      Adjustment Date..........................................................5
      Administration Fees......................................................5
      Administration Fee Rate..................................................5
      Advance Facility.........................................................5
      Advance Financing Person.................................................5
      Advance Reimbursement Amounts............................................5
      Affiliate................................................................5
      Aggregate Loss Severity Percentage.......................................5
      Agreement................................................................5
      Allocated Realized Loss Amount...........................................5
      Amounts Held for Future Distribution.....................................5
      Assignment...............................................................5
      Assignment Agreements....................................................6
      Available Distribution Amount............................................6
      Balloon Mortgage Loan....................................................6
      Balloon Payment..........................................................6
      Bankruptcy Code..........................................................6
      Book-Entry Certificates..................................................6
      Book-Entry Custodian.....................................................7
      Business Day.............................................................7
      Cap Contracts............................................................7
      Cash-Out Refinancing.....................................................7
      Certificate..............................................................7
      Certificate Factor.......................................................7
      Certificate Margin.......................................................7
      Certificateholde.........................................................9
      Certificate Owner........................................................9
      Certificate Principal Balance............................................9
      Certificate Register....................................................10
      Class...................................................................10
      Class A Certificate.....................................................10
      Class A Principal Distribution Amount...................................10
      Class A-1 Allocation Percentage.........................................10
      Class A-1 Certificate...................................................10
      Class A-1 Principal Distribution Amount.................................10
      Class A-1A Certificate..................................................10
      Class A-1B Certificate..................................................10
      Class A-2 Allocation Percentage.........................................11


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      Class A-2 Certificate...................................................11
      Class A-2 Principal Distribution Amount.................................11
      Class A-2A Certificate..................................................11
      Class A-2B Certificate..................................................11
      Class A-2C Certificate..................................................11
      Class B Certificate.....................................................11
      Class B-1 Certificate...................................................11
      Class B-1 Principal Distribution Amount.................................11
      Class B-2 Certificate...................................................12
      Class B-2 Principal Distribution Amount.................................12
      Class B-3 Certificate...................................................13
      Class B-3 Principal Distribution Amount.................................13
      Class CE Certificate....................................................14
      Class M Certificates....................................................14
      Class M-1 Certificate...................................................14
      Class M-1 Principal Distribution Amount.................................14
      Class M-2 Certificate...................................................14
      Class M-2 Principal Distribution Amount.................................15
      Class M-3 Certificate...................................................15
      Class M-3 Principal Distribution Amount.................................15
      Class M-4 Certificate...................................................15
      Class M-4 Principal Distribution Amount.................................16
      Class M-5 Certificate...................................................16
      Class M-5 Principal Distribution Amount.................................16
      Class M-6 Certificate...................................................17
      Class M-6 Principal Distribution Amount.................................17
      Class M-7 Certificate...................................................17
      Class M-7 Principal Distribution Amount.................................17
       Class M-8 Certificate...................................................18
      Class M-8 Principal Distribution Amount.................................18
      Class M-9 Certificate...................................................19
      Class M-9 Principal Distribution Amount.................................19
      Class P Certificate.....................................................19
      Class R Certificates....................................................20
      Class R-I Interest......................................................20
      Class R-II Interest.....................................................20
      Closing Date............................................................20
      Code....................................................................20
      Collection Account......................................................20
      Commission..............................................................20
      Corporate Trust Office..................................................20
      Corresponding Certificate...............................................20
      Credit Enhancement Percentage...........................................21
      Credit Risk Management Agreements.......................................21
      Credit Risk Management Fee..............................................21
      Credit Risk Management Fee Rate.........................................21
      Credit Risk Manager.....................................................21
      Custodial Account.......................................................21


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      Custodial Agreement.....................................................21
      Custodian...............................................................21
      Cut-off Date............................................................21
      DBRS....................................................................21
      Debt Service Reduction..................................................22
      Deficient Valuation.....................................................22
      Definitive Certificates.................................................22
      Deleted Mortgage Loan...................................................22
      Delinquency Percentage..................................................22
      Depositor...............................................................22
      Depository..............................................................22
      Depository Institution..................................................22
      Depository Participant..................................................22
      Determination Date......................................................22
      Directly Operate........................................................23
      Disqualified Organization...............................................23
      Distribution Account....................................................23
      Distribution Date.......................................................23
      Due Date................................................................23
      Due Period..............................................................23
      Eligible Account........................................................24
      ERISA...................................................................24
      Estate in Real Property.................................................24
      Excess Liquidation Proceeds.............................................24
      Expense Adjusted Mortgage Rate..........................................24
      Extraordinary Trust Fund Expense........................................24
      Extra Principal Distribution Amount.....................................24
      Fannie Mae..............................................................24
      FDIC....................................................................24
      Final Maturity Date.....................................................24
      Final Recovery Determination............................................24
      Freddie Mac.............................................................25
      Gross Margin............................................................25
      Group I Interest Remittance Amount......................................25
      Group I Mortgage Loans..................................................25
      Group I Principal Distribution Amount...................................25
      Group I Principal Remittance Amount.....................................25
      Group II Interest Remittance Amount.....................................25
      Group II Mortgage Loans.................................................26
      Group II Principal Distribution Amount..................................26
      Group II Principal Remittance Amount....................................26
      Independent.............................................................26
      Independent Contractor..................................................26
      Index...................................................................27
      Institutional Accredited Investor.......................................27
      Insurance Proceeds......................................................27
      Interest Accrual Period.................................................27
      Interest Carry Forward Amount...........................................27


                                      iii
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      Interest Determination Date.............................................27
      Interest Distribution Amount............................................28
      Interim Servicer........................................................28
      Interest Remittance Amount..............................................28
      Last Scheduled Distribution Date........................................28
      Late Collections........................................................28
      Liquidation Event.......................................................28
      Liquidation Proceeds....................................................28
      Litton..................................................................28
      Litton Assignment Agreement.............................................29
      Litton Mortgage Loans...................................................29
      Litton Servicing Agreement..............................................29
      Loan-to-Value Ratio.....................................................29
      London Business Day.....................................................29
      Loss Severity Percentage................................................29
      Marker Rate.............................................................29
       Master Servicer.........................................................29
      Master Servicer Certification...........................................29
      Master Servicer Event of Default........................................30
      Master Servicer Fee Rate................................................30
      Master Servicing Fee....................................................30
      Maximum I-LTZZ Uncertificated Interest Deferral Amount..................30
      Maximum Mortgage Rate...................................................30
      MERS....................................................................30
      MERS(R) System..........................................................31
      Mezzanine Certificate...................................................31
      MIN.....................................................................31
      Minimum Mortgage Rate...................................................31
      MOM Loan................................................................31
      Monthly Payment.........................................................31
      Moody's.................................................................31
      Mortgage................................................................31
      Mortgage File...........................................................31
      Mortgage Loan...........................................................31
      Mortgage Loan Documents.................................................31
       Mortgage Loan Purchase Agreement........................................31
      Mortgage Loan Schedule..................................................32
      Mortgage Note...........................................................34
      Mortgage Rate...........................................................34
      Mortgaged Property......................................................34
      Mortgagor...............................................................34
      Net Monthly Excess Cashflow.............................................34
      Net Mortgage Rate.......................................................35
      Net WAC Pass-Through Rate...............................................35
      Net WAC Rate Carryover Amount...........................................36
      New Lease...............................................................36
      Nonrecoverable P&I Advance..............................................36
      Nonrecoverable Servicing Advance........................................36


                                       iv
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      Non-United States Person................................................36
      Notional Amount.........................................................36
      Offered Certificates....................................................36
      Officer's Certificate...................................................37
      One-Month LIBOR.........................................................37
      One-Month LIBOR Pass-Through Rate.......................................37
      Opinion of Counsel......................................................39
      Optional Termination Date...............................................39
      Originators.............................................................39
      Overcollateralization Amount............................................39
      Overcollateralization Increase Amount...................................39
      Overcollateralization Reduction Amount..................................39
      Ownership Interest......................................................39
      P&I Advance.............................................................39
      Pass-Through Rate.......................................................40
      Percentage Interest.....................................................42
      Periodic Rate...........................................................42
      Permitted Investments...................................................42
      Permitted Transferee....................................................43
      Person..................................................................44
      Plan....................................................................44
      Prepayment Assumption...................................................44
      Prepayment Charge.......................................................44
      Prepayment Charge Schedule..............................................44
      Prepayment Interest Excess..............................................45
      Prepayment Interest Shortfall...........................................45
      Prepayment Period.......................................................45
      Principal Prepayment....................................................45
      Principal Distribution Amount...........................................45
      Principal Remittance Amount.............................................45
      Purchase Price..........................................................45
      QIB.....................................................................46
      Qualified Substitute Mortgage Loan......................................46
      Rate/Term Refinancing...................................................47
      Rating Agency or Rating Agencies........................................47
      Realized Loss...........................................................47
      Record Date.............................................................48
      Reference Banks.........................................................49
      Refinanced Mortgage Loan................................................49
      Regular Certificate.....................................................49
      Regular Interest........................................................49
      Regulation S Temporary Global Certificate...............................49
      Regulation S Permanent Global...........................................49
      Release Date............................................................49
      Relief Act..............................................................49
      Relief Act Interest Shortfall...........................................49
      REMIC...................................................................49
      REMIC I.................................................................49


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      REMIC I Interest Loss Allocation Amount.................................50
      REMIC I Marker Allocation Percentage....................................50
      REMIC I Overcollateralization...........................................50
      REMIC I Principal Loss Allocation Amount................................50
      REMIC I Regular Interest................................................51
      REMIC I Regular Interest I-LTAA.........................................51
      REMIC I Regular Interest I-LTA1A........................................51
      REMIC I Regular Interest I-LTA1B........................................51
      REMIC I Regular Interest I-LTA2A........................................51
      REMIC I Regular Interest I-LTA2B........................................51
      REMIC I Regular Interest I-LTA2C........................................51
      REMIC I Regular Interest I-LTB1.........................................52
      REMIC I Regular Interest I-LTB2.........................................52
      REMIC I Regular Interest I-LTB3.........................................52
      REMIC I Regular Interest I-LTM1.........................................52
      REMIC I Regular Interest I-LTM2.........................................52
      REMIC I Regular Interest I-LTM3.........................................52
      REMIC I Regular Interest I-LTM4.........................................52
      REMIC I Regular Interest I-LTM5.........................................53
      REMIC I Regular Interest I-LTM6.........................................53
      REMIC I Regular Interest I-LTM7.........................................53
      REMIC I Regular Interest I-LTM8.........................................53
      REMIC I Regular Interest I-LTM9.........................................53
       REMIC I Regular Interest I-LTP..........................................53
      REMIC I Regular Interest I-LTXX.........................................53
      REMIC I Regular Interest I-LTZZ.........................................54
      REMIC I Regular Interest I-LT1SUB.......................................54
      REMIC I Regular Interest I-LT1GRP.......................................54
      REMIC I Regular Interest I-LT2SUB.......................................54
      REMIC I Regular Interest I-LT2GRP.......................................54
      REMIC I Remittance Rate.................................................54
      REMIC I Sub WAC Allocation Percentage...................................55
      REMIC I Subordinated Balance Ratio......................................55
      REMIC I Required Overcollateralization..................................55
      REMIC II................................................................55
      REMIC II Certificate....................................................55
      REMIC II Certificateholder..............................................55
      REMIC Provisions........................................................55
      REMIC Regular Interest..................................................55
      REMIC Remittance Rate...................................................55
      Remittance Report.......................................................55
      Rents from Real Property................................................55
       REO Account.............................................................55
      REO Disposition.........................................................56
      REO Imputed Interest....................................................56
      REO Principal Amortization..............................................56
      REO Property............................................................56
      Required Overcollateralization..........................................56


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      Reserve Fund............................................................56
      Reserve Interest Rate...................................................56
      Residential Dwelling....................................................57
      Residual Certificate....................................................57
      Residual Interest.......................................................57
      ResMae Assignment Agreement.............................................57
       ResMae Mortgage Loans...................................................57
      Responsible Officer.....................................................57
      RMAE....................................................................57
      RMC.....................................................................57
      Rule....................................................................57
      Saxon...................................................................57
      Saxon Mortgage Loans....................................................57
      S&P.....................................................................57
      Scheduled Principal Balance.............................................57
      Securities..............................................................58
      Securities Administrator................................................58
      Seller..................................................................58
      Senior Interest Distribution Amount.....................................58
      Sequential Trigger Event................................................58
      Servicer................................................................58
      Servicer Event of Default...............................................58
      Servicer Remittance Date................................................59
      Servicer Report.........................................................59
      Servicing Advance.......................................................59
      Servicing Agreement.....................................................59
      Servicing Fee...........................................................59
      Servicing Fee Rate......................................................59
      Servicing Officer.......................................................59
      Servicing Transfer Date.................................................60
      Single Certificate......................................................60
      Startup Day.............................................................60
      Stated Principal Balance................................................60
      Stepdown Date...........................................................61
      Subordinate Certificates................................................61
      Subsequent Recoveries...................................................61
      Sub-Servicer............................................................61
      Sub-Servicing Agreement.................................................61
      Substitution Shortfall Amount...........................................61
      Tax Returns.............................................................61
      Telerate Page...........................................................61
      Termination Price.......................................................61
      Transfer................................................................61
      Transferee..............................................................61
      Transferor..............................................................62
      Trigger Event...........................................................62
      Trust...................................................................62
      Trust Fund..............................................................62


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      Trust REMIC.............................................................62
      Trustee.................................................................62
      Uncertificated Balance..................................................62
      Uncertificated Interest.................................................62
      Uninsured Cause.........................................................63
      United States Person....................................................63
      Value...................................................................63
      Verification Report.....................................................64
      Voting Rights...........................................................64
      Wells Fargo.............................................................64
   SECTION 1.02.      Allocation of Certain Interest Shortfalls................64

ARTICLE II CONVEYANCE OF MORTGAGE LOANS; ORIGINAL ISSUANCE OF CERTIFICATES     66

   SECTION 2.01.      Conveyance of the Mortgage Loans.........................66
   SECTION 2.02.      Acceptance of REMIC I by Trustee.........................67
   SECTION 2.03.       Repurchase or Substitution of Mortgage Loans.............67
   SECTION 2.04.      Representations and Warranties of the
                     Master Servicer..........................................70
   SECTION 2.05.      Representations, Warranties and Covenants
                     of the Servicer..........................................71
   SECTION 2.06.      Issuance of the REMIC I Regular Interests and
                     the Class R-I Interest...................................73
   SECTION 2.07.      Conveyance of the REMIC I Regular Interests;
                     Acceptance of REMIC I by the Trustee.....................74
   SECTION 2.08.      Issuance of Residual Certificates........................74
   SECTION 2.09.      Establishment of the Trust...............................74

ARTICLE III ADMINISTRATION AND SERVICING OF THE MORTGAGE LOANS; ACCOUNTS       75

   SECTION 3.01.      Servicer to Act as Servicer..............................75
   SECTION 3.02.      Sub-Servicing Agreements Between the Servicer
                     and Sub-Servicers........................................77
   SECTION 3.03.      Successor Sub-Servicers..................................78
   SECTION 3.04.      No Contractual Relationship Between Sub-Servicer,
                      Trustee or the Certificateholders........................78
   SECTION 3.05.      Assumption or Termination of Sub-Servicing Agreement
                     by Successor Servicer....................................78
   SECTION 3.06.      Collection of Certain Mortgage Loan Payments.............79
   SECTION 3.07.      Collection of Taxes, Assessments and Similar Items;
                     Servicing Accounts.......................................79
   SECTION 3.08.      Collection Account and Distribution Account..............80
   SECTION 3.09.      Withdrawals from the Collection Accounts and
                     Distribution Account.....................................83
   SECTION 3.10.      Investment of Funds in the Investment Accounts...........84
   SECTION 3.11.      Maintenance of Hazard Insurance, Errors and Omissions
                     and Fidelity Coverage and Primary Mortgage Insurance.....86
   SECTION 3.12.      Enforcement of Due-on-Sale Clauses;
                     Assumption Agreements....................................88
   SECTION 3.13.      Realization Upon Defaulted Mortgage Loans................89
   SECTION 3.14.      Trustee to Cooperate; Release of Mortgage Files..........90
   SECTION 3.15.      Servicing Compensation...................................92
   SECTION 3.16.      Collection Account Statements............................92


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   SECTION 3.17.      Statement as to Compliance...............................92
   SECTION 3.18.      Independent Public Accountants' Servicing Report.........93
   SECTION 3.19.      Annual Certification.....................................93
   SECTION 3.20.      Access to Certain Documentation..........................94
   SECTION 3.21.      Title, Management and Disposition of REO Property........94
   SECTION 3.22.      Obligations of the Servicer in Respect of Prepayment
                     Interest Shortfalls; Relief Act Interest Shortfalls......97
   SECTION 3.23.      Obligations of the Servicer in Respect of Mortgage Rates
                     and Monthly Payments.....................................98
   SECTION 3.24.      Reserve Fund.............................................98
   SECTION 3.25.      Advance Facility.........................................99
   SECTION 3.26.      Servicer Indemnification................................101

ARTICLE IV ADMINISTRATION AND MASTER SERVICING OF THE MORTGAGE LOANS
           BY THE MASTER SERVICER                                             102

   SECTION 4.01.      Master Servicer.........................................102
   SECTION 4.02.      REMIC-Related Covenants.................................103
   SECTION 4.03.      Monitoring of Servicer..................................103
   SECTION 4.04.      Fidelity Bond...........................................104
   SECTION 4.05.      Power to Act; Procedures................................105
   SECTION 4.06.      Due-on-Sale Clauses; Assumption Agreements..............106
   SECTION 4.07.      Documents, Records and Funds in Possession of Master
                     Servicer To Be Held for Trustee.........................106
   SECTION 4.08.      Standard Hazard Insurance and Flood Insurance Policies..106
   SECTION 4.09.      Presentment of Claims and Collection of Proceeds........107
   SECTION 4.10.      Maintenance of Primary Mortgage Insurance Policies......107
   SECTION 4.11.      Trustee to Retain Possession of Certain Insurance
                     Policies and Documents..................................107
   SECTION 4.12.      Realization Upon Defaulted Mortgage Loans...............108
   SECTION 4.13.      Compensation for the Master Servicer....................108
   SECTION 4.14.      REO Property............................................108
   SECTION 4.15.      Annual Officer's Certificate as to Compliance...........109
   SECTION 4.16.      Annual Independent Accountant's Servicing Report........109
   SECTION 4.17.      UCC.....................................................110
   SECTION 4.18.       Obligation of the Master Servicer in Respect of
                     Prepayment Interest Shortfalls..........................110
   SECTION 4.19.      Prepayment Penalty Verification.........................110

ARTICLE V PAYMENTS TO CERTIFICATEHOLDERS                                       112

   SECTION 5.01.      Distributions...........................................112
   SECTION 5.02.      Statements to Certificateholders........................127
   SECTION 5.03.      Servicer Reports; P&I Advances..........................131
   SECTION 5.04.      Allocation of Realized Losses...........................132
   SECTION 5.05.      Compliance with Withholding Requirements................135
   SECTION 5.06.      Reports Filed with Securities and Exchange Commission...135


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ARTICLE VI THE CERTIFICATES                                                   137

   SECTION 6.01.      The Certificates........................................137
   SECTION 6.02.      Registration of Transfer and Exchange of Certificates...139
   SECTION 6.03.      Mutilated, Destroyed, Lost or Stolen Certificates.......144
   SECTION 6.04.      Persons Deemed Owners...................................145
   SECTION 6.05.      Certain Available Information...........................145

ARTICLE VII THE DEPOSITOR, THE SERVICER AND THE MASTER SERVICER               146

   SECTION 7.01.      Liability of the Depositor, the Servicer and the
                     Master Servicer.........................................146
   SECTION 7.02.      Merger or Consolidation of the Depositor, the
                     Servicer or the Master Servicer.........................146
   SECTION 7.03.      Limitation on Liability of the Depositor,
                     the Servicer, the Master Servicer and Others............146
   SECTION 7.04.      Limitation on Resignation of the Servicer...............147
   SECTION 7.05.      Limitation on Resignation of the Master Servicer........148
   SECTION 7.06.      Assignment of Master Servicing..........................149
   SECTION 7.07.      Rights of the Depositor in Respect of the Servicer
                     and the Master Servicer.................................149
   SECTION 7.08.      Duties of the Credit Risk Manager.......................150
   SECTION 7.09.      Limitation Upon Liability of the Credit Risk Manager....150
   SECTION 7.10.      Removal of the Credit Risk Manager......................151

ARTICLE VIII DEFAULT                                                           152

   SECTION 8.01.      Servicer Events of Default..............................152
   SECTION 8.02.      Master Servicer to Act; Appointment of Successor........156
   SECTION 8.03.      Notification to Certificateholders......................157
   SECTION 8.04.      Waiver of Servicer Events of Default....................157

ARTICLE IX CONCERNING THE TRUSTEE AND THE SECURITIES ADMINISTRATOR            158

   SECTION 9.01.      Duties of Trustee and Securities Administrator..........158
   SECTION 9.02.      Certain Matters Affecting Trustee and
                     Securities Administrator................................159
   SECTION 9.03.      Trustee and Securities Administrator not Liable
                     for Certificates or Mortgage Loans......................161
   SECTION 9.04.      Trustee and Securities Administrator May
                     Own Certificates........................................161
   SECTION 9.05.      Fees and Expenses of Trustee and
                     Securities Administrator................................161
   SECTION 9.06.      Eligibility Requirements for Trustee and
                     Securities Administrator................................162
   SECTION 9.07.      Resignation and Removal of Trustee and
                      Securities Administrator................................163
   SECTION 9.08.      Successor Trustee or Securities Administrator...........164
   SECTION 9.09.      Merger or Consolidation of Trustee or
                     Securities Administrator................................164
   SECTION 9.10.      Appointment of Co-Trustee or Separate Trustee...........165
   SECTION 9.11.      Appointment of Office or Agency.........................165
   SECTION 9.12.      Representations and Warranties..........................166

ARTICLE X TERMINATION                                                         167

   SECTION 10.01.     Termination Upon Repurchase or Liquidation of
                     All Mortgage Loans......................................167


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   SECTION 10.02.     Additional Termination Requirements.....................169

ARTICLE XI REMIC PROVISIONS                                                   170

   SECTION 11.01.     REMIC Administration....................................170
   SECTION 11.02.     Prohibited Transactions and Activities..................172
   SECTION 11.03.     Indemnification.........................................173

ARTICLE XII MISCELLANEOUS PROVISIONS                                           174

   SECTION 12.01.     Amendment...............................................174
   SECTION 12.02.     Recordation of Agreement; Counterparts..................175
   SECTION 12.03.     Limitation on Rights of Certificateholders..............175
   SECTION 12.04.     Governing Law...........................................176
   SECTION 12.05.     Notices.................................................176
   SECTION 12.06.     Severability of Provisions..............................177
   SECTION 12.07.     Notice to Rating Agencies...............................177
   SECTION 12.08.     Article and Section References..........................178
   SECTION 12.09.     Grant of Security Interest..............................178
   SECTION 12.10.     Survival of Indemnification.............................179
   SECTION 12.11.     Servicing Agreements....................................179

EXHIBITS

Exhibit A-1        Form of Class A Certificate
Exhibit A-2        Form of Class M Certificate
Exhibit A-3        Form of Class B Certificate
Exhibit A-4        Form of Class CE Certificate
Exhibit A-5        Form of Class P Certificate
Exhibit A-6        Form of Class R Certificate
Exhibit B-1        Form of Transferor Representation Letter and Form of
                  Transferee Representation Letter in Connection with Transfer
                  of the Class B Certificates, Class P Certificates, Class CE
                  Certificates and Residual Certificates Pursuant to Rule 144A
                  Under the 1933 Act
Exhibit B-2        Form of Transferor Representation Letter and Form of
                  Transferee Representation Letter in Connection with Transfer
                  of the Class B Certificates, Class P Certificates, Class CE
                   Certificates and Residual Certificates Pursuant to Rule 501(a)
                  Under the 1933 Act
Exhibit B-3        Form of Transfer Affidavit and Agreement and Form of
                  Transferor Affidavit in Connection with Transfer of Residual
                  Certificates
Exhibit C          Form of Servicer Certification
Exhibit D          Form of Power of   Attorney
Schedule 1         Mortgage Loan Schedule
Schedule 2         Prepayment Charge Schedule
Schedule 3         Reserved.
Schedule 4          Standard File Layout - Delinquency Reporting
Schedule 5         Standard File Layout - Scheduled/Scheduled


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Schedule 6         Servicing Advances Incurred Prior to Cut-off Date


                                        xii
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       This   Pooling   and   Servicing   Agreement,   is dated and   effective   as of
February 1, 2005,   among ACE   SECURITIES   CORP.,   as Depositor,   SAXON   MORTGAGE
SERVICES,   INC., as Servicer,   WELLS FARGO BANK,   N.A.,   as Master   Servicer and
Securities Administrator and HSBC BANK USA, NATIONAL ASSOCIATION, as Trustee.

                             PRELIMINARY STATEMENT:

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

                                     REMIC I

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


<PAGE>




                    REMIC I
                   REMITTANCE               INITIAL            LATEST POSSIBLE
   DESIGNATION         RATE           UNCERTIFICATED BALANCE   MATURITY DATE (1)
---------------   ---------------   ------------------------ -------------------
I-LTAA              Variable(2)     $   307,403,452.14           March 25, 2035
I-LTA1A             Variable(2)     $   1,518,770.00             March 25, 2035
I-LTA1B             Variable(2)     $   379,695.00               March 25, 2035
I-LTA2A             Variable(2)     $   338,040.00               March 25, 2035
I-LTA2B             Variable(2)     $   107,485.00               March 25, 2035
I-LTA2C             Variable(2)     $   80,735.00                March 25, 2035
I-LTM1              Variable(2)     $   125,470.00               March 25, 2035
I-LTM2              Variable(2)     $   103,515.00               March 25, 2035
I-LTM3              Variable(2)     $   62,735.00                March 25, 2035
I-LTM4              Variable(2)     $   58,030.00                March 25, 2035
I-LTM5              Variable(2)     $   50,190.00                March 25, 2035
I-LTM6              Variable(2)     $   50,190.00                March 25, 2035
I-LTM7              Variable(2)     $   45,485.00                March 25, 2035
I-LTM8              Variable(2)     $   34,505.00                March 25, 2035
I-LTM9              Variable(2)     $   31,370.00                March 25, 2035
I-LTB1              Variable(2)     $   31,370.00                March 25, 2035
I-LTB2              Variable(2)     $   48,620.00                March 25, 2035
I-LTB3              Variable(2)     $   34,505.00                 March 25, 2035
I-LTZZ              Variable(2)     $   3,172,829.00             March 25, 2035
I-LTP               Variable(2)     $               100.00       March 25, 2035
I-LT1SUB            Variable(2)     $   11,150.00                March 25, 2035
I-LT1GRP            Variable(2)     $   49,119.35                March 25, 2035
I-LT2SUB            Variable(2)     $   3,090.86                 March 25, 2035
I-LT2GRP            Variable(2)     $   13,616.00                March 25, 2035
I-LTXX              Variable(2)     $   313,600,015.67           March 25, 2035

-------------
(1)     For purposes of Section   1.860G-1(a)(4)(iii) of the Treasury regulations,
       the   Distribution   Date   immediately   following the maturity date for the
       Mortgage Loan with the latest   maturity   date has been   designated as the
       "latest possible maturity date" for each REMIC I Regular Interest.

(2)     Calculated in accordance with the definition of "REMIC I Remittance Rate"
       herein.

                                    REMIC II

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


                                       2
<PAGE>


                                        INITIAL AGGREGATE  
                                     CERTIFICATE PRINCIPAL     LATEST POSSIBLE
  DESIGNATION      PASS-THROUGH RATE           BALANCE           MATURITY DATE (1)
-------------   -------------------- ----------------------- --------------------
Class A-1A          Variable(2)        $   303,754,000.00         March 25, 2035
Class A-1B          Variable(2)        $   75,939,000.00          March 25, 2035
Class A-2A          Variable(2)        $   67,608,000.00          March 25, 2035
Class A-2B          Variable(2)        $   21,497,000.00          March 25, 2035
Class A-2C          Variable(2)        $   16,147,000.00          March 25, 2035
Class M-1           Variable(2)        $   25,094,000.00          March 25, 2035
Class M-2           Variable(2)         $   20,703,000.00          March 25, 2035
Class M-3           Variable(2)        $   12,547,000.00          March 25, 2035
Class M-4           Variable(2)        $   11,606,000.00          March 25, 2035
Class M-5           Variable(2)        $   10,038,000.00           March 25, 2035
Class M-6           Variable(2)        $   10,038,000.00          March 25, 2035
Class M-7           Variable(2)        $   9,097,000.00           March 25, 2035
Class M-8           Variable(2)        $   6,901,000.00           March 25, 2035
Class M-9           Variable(2)        $   6,274,000.00           March 25, 2035
Class B-1           Variable(2)        $   6,274,000.00           March 25, 2035
Class B-2           Variable(2)        $   9,724,000.00           March 25, 2035
Class B-3           Variable(2)         $   6,901,000.00           March 25, 2035
Class P               N/A(3)           $   100.00                 March 25, 2035
Class CE              N/A(4)           $   7,211,983.96           March 25, 2035

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

(1)     For purposes of Section   1.860G-1(a)(4)(iii) of the Treasury regulations,
       the   Distribution   Date   immediately   following the maturity date for the
       Mortgage Loan with the latest   maturity   date has been   designated as the
       "latest possible maturity date" for each Class of Certificates.

(2)     Calculated   in accordance   with the   definition   of   "Pass-Through   Rate"
       herein.

(3)     The Class P Certificates will not accrue interest.

(4)     The   Class   CE   Certificates   will   accrue   interest   at   their   variable
       Pass-Through   Rate on the   Notional   Amount of the Class CE   Certificates
       outstanding   from   time to time   which   shall   equal   the   Uncertificated
       Balance   of the REMIC I Regular   Interests   (other   than   REMIC I Regular
       Interest   I-LTP).   The Class CE Certificates   will not accrue interest on
       their Certificate Principal Balance.

       As of the   Cut-off   Date,   the Group I   Mortgage   Loans had an   aggregate
Scheduled Principal Balance equal to approximately $491,193,454 and the Group II
Mortgage   Loans   had   an   aggregate    Scheduled    Principal    Balance   equal   to
approximately $136,160,629.

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


                                       3
<PAGE>


                                   ARTICLE I

                                   DEFINITIONS

       SECTION 1.01.     Defined Terms.

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

       "Accepted Master Servicing Practices": With respect to any Mortgage Loan,
as applicable, either (x) those customary mortgage master servicing practices of
prudent mortgage   servicing   institutions   that master service mortgage loans of
the same type and quality as such   Mortgage Loan in the   jurisdiction   where the
related   Mortgaged   Property is located,   to the extent applicable to the Master
Servicer   (except in its   capacity   as   successor   to the   Servicer),   or (y) as
provided in Section 3.01 hereof, but in no event below the standard set forth in
clause (x).

       "Accepted Servicing Practices": As defined in Section 3.01.

       "Account":   The Collection   Account and the   Distribution   Account as the
context may require.

       "Accrued Certificate Interest":   With respect to any Class A Certificate,
Mezzanine   Certificate,   Class B Certificate   or Class CE   Certificate   and each
Distribution   Date,   interest accrued during the related Interest Accrual Period
at the Pass-Through   Rate for such Certificate for such Distribution Date on the
Certificate   Principal   Balance,   in the case of the Class A   Certificates,   the
Mezzanine   Certificates and the Class B Certificates,   or on the Notional Amount
in the case of the Class CE Certificates,   of such Certificate immediately prior
to such   Distribution   Date.   The   Class P   Certificates   are   not   entitled   to
distributions in respect of interest and, accordingly, will not accrue interest.
All   distributions   of   interest   on the   Class A   Certificates,   the   Mezzanine
Certificates   and the Class B Certificates   will be calculated on the basis of a
360-day year and the actual number of days in the   applicable   Interest   Accrual
Period. All distributions of interest on the Class CE Certificates will be based
on a 360-day   year   consisting   of twelve   30-day   months.   Accrued   Certificate
Interest with respect to each Distribution   Date, as to any Class A Certificate,
Mezzanine   Certificate,   Class B Certificate   or Class CE   Certificate   shall be
reduced by an amount equal to the portion allocable to such Certificate pursuant
to Section   1.02   hereof,   if any,   of the sum of (a) the   aggregate   Prepayment
Interest Shortfall, if any, for such Distribution Date to the extent not covered
by   payments   pursuant   to Section   3.22 or Section   4.18 of this   Agreement   or
pursuant to the Servicing   Agreements and (b) the aggregate amount of any Relief
Act Interest Shortfall, if any, for such Distribution Date. In addition, Accrued
Certificate   Interest with respect to each Distribution Date, as to any Class CE
Certificate,   shall be reduced by an amount   equal to the portion   allocable   to
such Class CE Certificate of Realized Losses,   if any,   pursuant to Section 1.02
and Section 5.04 hereof.

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


                                       4
<PAGE>


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

       "Administration   Fees": The sum of (i) the Servicing Fee, (ii) the Master
Servicing Fee and (iii) the Credit Risk Management Fee.

       "Administration   Fee Rate":   The sum of (i) the Servicing Fee Rate,   (ii)
the Master Servicer Fee Rate and (iii) the Credit Risk Management Fee Rate.

       "Advance Facility": As defined in Section 3.25(a).

       "Advance Financing Person": As defined in Section 3.25(a).

       "Advance Reimbursement Amounts": As defined in Section 3.25(b).

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

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

       "Agreement": This Pooling and Servicing Agreement, including all exhibits
and schedules hereto and all amendments hereof and supplements hereto.

       "Allocated Realized Loss Amount":   With respect to any Class of Mezzanine
Certificates or Class B Certificates and any Distribution   Date, an amount equal
to the sum of any Realized Loss allocated to that Class of   Certificates   on the
Distribution   Date   and any   Allocated   Realized   Loss   Amount   for   that   Class
remaining unpaid from the previous Distribution Date.

       "Amounts Held for Future Distribution":   As to any Distribution Date, the
aggregate amount held in the Custodial   Accounts and the Collection   Accounts at
the close of business on the immediately preceding Determination Date on account
of (i) all   Monthly   Payments   or   portions   thereof   received in respect of the
Mortgage Loans due after the related Due Period and (ii)   Principal   Prepayments
and   Liquidation   Proceeds   received in respect of such Mortgage Loans after the
last day of the related Prepayment Period.

       "Assignment": An assignment of Mortgage, notice of transfer or equivalent
instrument,   in   recordable   form,   which is   sufficient   under   the laws of the
jurisdiction   wherein   the related   Mortgaged   Property is located to reflect of
record   the sale of the   Mortgage,   which   assignment,   notice   of   transfer   or
equivalent   instrument   may be in the   form of one or more


                                       5
<PAGE>


blanket assignments   covering Mortgages secured by Mortgaged   Properties located
in the same county, if permitted by law.

       "Assignment   Agreements":   The ResMae Assignment Agreement and the Litton
Assignment Agreement.

       "Available   Distribution   Amount": With respect to any Distribution Date,
an amount equal to (1) the sum of (a) the aggregate of the amounts on deposit in
the Custodial   Accounts,   Collection Account and Distribution   Account as of the
close of business on the related Servicer   Remittance Date, (b) the aggregate of
any amounts deposited in the Distribution   Account by the Servicer or the Master
Servicer in respect of Prepayment Interest Shortfalls for such Distribution Date
pursuant to Section   3.22 or Section   4.18 of this   Agreement   or by the related
Interim Servicer pursuant to the related Servicing Agreement,   (c) the aggregate
of any P&I Advances for such   Distribution Date made by the Servicer pursuant to
Section 5.03 of this Agreement or by the related   Interim   Servicer   pursuant to
the related   Servicing   Agreement and (d) the aggregate of any P&I Advances made
by a successor   Servicer   (including the Master Servicer) for such   Distribution
Date   pursuant to Section 8.02 of this   Agreement   or pursuant to the   Servicing
Agreements   reduced   (to not less than   zero) by (2) the   portion   of the amount
described   in clause   (1)(a) above that   represents   (i) Amounts Held for Future
Distribution,   (ii)   Principal   Prepayments on the Mortgage Loans received after
the related Prepayment Period (together with any interest payments received with
such Principal   Prepayments to the extent they represent the payment of interest
accrued   on the   Mortgage   Loans   during   a   period   subsequent   to the   related
Prepayment Period),   (iii) Liquidation   Proceeds and Insurance Proceeds received
in respect of the   Mortgage   Loans after the   related   Prepayment   Period,   (iv)
amounts reimbursable or payable to the Depositor, the Servicer, the Trustee, the
Master   Servicer,   the   Securities   Administrator   or the Custodian   pursuant to
Section   3.09 or 9.05 of this   Agreement   or   otherwise   payable   in   respect of
Extraordinary   Trust Fund   Expenses   or   reimbursable   or payable to the related
Interim   Servicer   under the related   Servicing   Agreement,   (v) the Credit Risk
Management   Fee,   (vi) amounts   deposited in a Custodial   Account,   a Collection
Account or the Distribution Account in error, (vii) the amount of any Prepayment
Charges   collected by the Servicer or an Interim Servicer in connection with the
Principal    Prepayment   of   any   of   the   Mortgage    Loans   and   (viii)   amounts
reimbursable to a successor Servicer (including the Master Servicer) pursuant to
Section 8.02 of this Agreement or pursuant to the related Servicing Agreement.

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

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

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

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


                                       6
<PAGE>


       "Book-Entry Custodian": The custodian appointed pursuant to Section 6.01.

       "Business Day": Any day other than a Saturday, a Sunday or a day on which
banking or savings   and loan   institutions   in the States of New York,   Florida,
Maryland, Texas, Minnesota or in the city in which the Corporate Trust Office of
the Trustee is located, are authorized or obligated by law or executive order to
be closed.

       "Cap Contracts":   Shall mean (i) the Cap Contract between the Trustee and
the counterparty   named thereunder,   for the benefit of the Holders of the Class
A-1 Certificates,   the Mezzanine   Certificates and the Class B Certificates (the
"Group I Cap   Contract")   and (ii) the Cap Contract   between the Trustee and the
counterparty   thereunder,   for the   benefit of the Class A-2   Certificates,   the
Mezzanine   Certificates   and   the   Class   B   Certificates   (the   "Group   II   Cap
Contract").

       "Cash-Out Refinancing":   A Refinanced Mortgage Loan the proceeds of which
are more   than a   nominal   amount in   excess   of the   principal   balance   of any
existing first mortgage plus any subordinate   mortgage on the related   Mortgaged
Property and related closing costs.

       "Certificate": Any one of ACE Securities Corp., Asset Backed Pass-Through
Certificates,   Series 2005-RM1,   Class A-1A, Class A-1B, Class A-2A, Class A-2B,
Class A-2C,   Class M-1,   Class M-2,   Class M-3, Class M-4, Class M-5, Class M-6,
Class M-7, Class M-8, Class M-9, Class B-1, Class B-2, Class B-3, Class P, Class
CE and Class R issued under this Agreement.

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

       "Certificate   Margin":   With respect to the Class A-1A   Certificates and,
for   purposes   of the   definition   of "Marker   Rate",   REMIC I Regular   Interest
I-LTA1A,   0.24% in the case of each   Distribution Date through and including the
Optional   Termination   Date   and   0.48% in the   case of each   Distribution   Date
thereafter.

       With   respect to the Class A-1B   Certificates   and,   for   purposes of the
definition of "Marker Rate", REMIC I Regular Interest I-LTA1B, 0.30% in the case
of each   Distribution   Date through and including the Optional   Termination Date
and 0.60% in the case of each Distribution Date thereafter.

       With   respect to the Class A-2A   Certificates   and,   for   purposes of the
definition of "Marker Rate", REMIC I Regular Interest I-LTA2A, 0.13% in the case
of each   Distribution   Date through and including the Optional   Termination Date
and 0.26% in the case of each Distribution Date thereafter.


                                       7
<PAGE>


       With   respect to the Class A-2B   Certificates   and,   for   purposes of the
definition of "Marker Rate", REMIC I Regular Interest I-LTA2B, 0.27% in the case
of each   Distribution   Date through and including the Optional   Termination Date
and 0.54% in the case of each Distribution Date thereafter.

       With   respect to the Class A-2C   Certificates   and,   for   purposes of the
definition of "Marker Rate", REMIC I Regular Interest I-LTA2C, 0.37% in the case
of each   Distribution   Date through and including the Optional   Termination Date
and 0.74% in the case of each Distribution Date thereafter.

       With   respect to the Class M-1   Certificates   and,   for   purposes   of the
definition of "Marker Rate", REMIC I Regular Interest I-LTM1,   0.46% in the case
of each   Distribution   Date through and including the Optional   Termination Date
and 0.69% in the case of each Distribution Date thereafter.

        With   respect to the Class M-2   Certificates   and,   for   purposes   of the
definition of "Marker Rate", REMIC I Regular Interest I-LTM2,   0.50% in the case
of each   Distribution   Date through and including the Optional   Termination Date
and 0.75% in the case of each Distribution Date thereafter.

       With   respect to the Class M-3   Certificates   and,   for   purposes   of the
definition of "Marker Rate", REMIC I Regular Interest I-LTM3,   0.53% in the case
of each   Distribution   Date through and including the Optional   Termination Date
and 0.795% in the case of each Distribution Date thereafter.

       With   respect to the Class M-4   Certificates   and,   for   purposes   of the
definition of "Marker Rate", REMIC I Regular Interest I-LTM4,   0.68% in the case
of each   Distribution   Date through and including the Optional   Termination Date
and 1.02% in the case of each Distribution Date thereafter.

       With   respect to the Class M-5   Certificates   and,   for   purposes   of the
definition of "Marker Rate", REMIC I Regular Interest I-LTM5,   0.73% in the case
of each   Distribution   Date through and including the Optional   Termination Date
and 1.095% in the case of each Distribution Date thereafter.

       With   respect to the Class M-6   Certificates   and,   for   purposes   of the
definition of "Marker Rate", REMIC I Regular Interest I-LTM6,   0.80% in the case
of each   Distribution   Date through and including the Optional   Termination Date
and 1.20% in the case of each Distribution Date thereafter.

       With   respect to the Class M-7   Certificates   and,   for   purposes   of the
definition of "Marker Rate", REMIC I Regular Interest I-LTM7,   1.35% in the case
of each   Distribution   Date through and including the Optional   Termination Date
and 2.025% in the case of each Distribution Date thereafter.

       With   respect to the Class M-8   Certificates   and,   for   purposes   of the
definition of "Marker Rate", REMIC I Regular Interest I-LTM8,   1.40% in the case
of each   Distribution   Date through and including the Optional   Termination Date
and 2.10% in the case of each Distribution Date thereafter.


                                       8
<PAGE>


       With   respect to the Class M-9   Certificates   and,   for   purposes   of the
definition of "Marker Rate", REMIC I Regular Interest I-LTM9,   2.00% in the case
of each   Distribution   Date through and including the Optional   Termination Date
and 3.00% in the case of each Distribution Date thereafter.

       With   respect to the Class B-1   Certificates   and,   for   purposes   of the
definition of "Marker Rate", REMIC I Regular Interest I-LTB1,   3.25% in the case
of each   Distribution   Date through and including the Optional   Termination Date
and 4.875% in the case of each Distribution Date thereafter.

       With   respect   to the Class B2   Certificates   and,   for   purposes   of the
definition of "Marker Rate", REMIC I Regular Interest I-LTB2,   3.25% in the case
of each   Distribution   Date through and including the Optional   Termination Date
and 4.875% in the case of each Distribution Date thereafter.

       With   respect   to the Class B3   Certificates   and,   for   purposes   of the
definition of "Marker Rate", REMIC I Regular Interest I-LTB3,   3.25% in the case
of each   Distribution   Date through and including the Optional   Termination Date
and 4.825% in the case of each Distribution Date thereafter.

       "Certificateholder"   or "Holder":   The Person in whose name a Certificate
is   registered   in   the   Certificate    Register,    except   that   a   Disqualified
Organization   or a Non-United   States Person shall not be a Holder of a Residual
Certificate for any purposes   hereof,   and solely for the purposes of giving any
consent pursuant to this Agreement, any Certificate registered in the name of or
beneficially   owned by the   Depositor,   the   Seller,   the   Servicer,   the Master
Servicer,   the Securities   Administrator,   the Trustee or any Affiliate   thereof
shall be   deemed   not to be   outstanding   and the   Voting   Rights to which it is
entitled   shall not be taken into account in   determining   whether the requisite
percentage   of Voting   Rights   necessary   to effect   any such   consent   has been
obtained,   except as otherwise   provided in Section   12.01.   The Trustee and the
Securities   Administrator   may   conclusively   rely   upon   a   certificate   of the
Depositor,   the Seller, the Master Servicer, the Securities Administrator or the
Servicer in determining   whether a Certificate is held by an Affiliate   thereof.
All   references   herein to "Holders" or   "Certificateholders"   shall reflect the
rights of Certificate Owners as they may indirectly exercise such rights through
the Depository and participating members thereof,   except as otherwise specified
herein;   provided,   however,   that the Trustee and the Securities   Administrator
shall be required to   recognize   as a "Holder" or   "Certificateholder"   only the
Person in whose name a Certificate is registered in the Certificate Register.

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

       "Certificate    Principal    Balance":    With    respect   to   each   Class   A
Certificate,   Mezzanine Certificate,   Class B Certificate or Class P Certificate
as of any date of   determination,   the   Certificate   Principal   Balance   of such
Certificate   on   the   Distribution   Date   immediately   prior   to   such   date   of
determination plus any Subsequent   Recoveries added to the Certificate Principal
Balance of such Certificate   pursuant to Section 5.04,   minus all   distributions
allocable to principal made thereon and Realized Losses   allocated   thereto,   if
any, on such immediately prior


                                       9
<PAGE>


Distribution   Date   (or,   in the   case of any   date of   determination   up to and
including the first Distribution Date, the initial Certificate Principal Balance
of such Certificate,   as stated on the face thereof). With respect to each Class
CE   Certificate   as of   any   date   of   determination,   an   amount   equal   to the
Percentage   Interest   evidenced by such Certificate times the excess, if any, of
(A) the then aggregate   Uncertificated Balances of the REMIC I Regular Interests
over   (B) the then   aggregate   Certificate   Principal   Balances   of the   Class A
Certificates, the Mezzanine Certificates, the Class B Certificates and the Class
P Certificates then outstanding.   The aggregate   initial   Certificate   Principal
Balance of each Class of Regular   Certificates   is set forth in the   Preliminary
Statement hereto.

       "Certificate Register": The register maintained pursuant to Section 6.02.

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

       "Class A Certificate": Any Class A-1A, Class A-1B, Class A-2A, Class A-2B
or Class A-2C Certificate.

       "Class   A   Principal    Distribution    Amount":    The   Class   A   Principal
Distribution   Amount   is an   amount   equal   to the sum of:   (i)   the   Class   A-1
Principal   Distribution   Amount   and (ii) the Class A-2   Principal   Distribution
Amount.

       "Class A-1 Allocation Percentage":   With respect to any Distribution Date
is the   percentage   equivalent of a fraction,   the numerator of which is (x) the
Group   I   Principal   Remittance   Amount   for   such   Distribution   Date   and   the
denominator   of   which   is   (y)   the   Principal    Remittance    Amount   for   such
Distribution Date.

       "Class   A-1   Certificate":   Any   Class   A-1A   Certificate   or Class   A-1B
Certificate.

       "Class   A-1   Principal    Distribution    Amount":    With   respect   to   any
Distribution   Date on or after the Stepdown Date and on which a Trigger Event is
not in effect,   the excess of (x) the sum of the Certificate   Principal Balances
of the Class A-1A Certificates and Class A-1B Certificates   immediately prior to
such   Distribution Date over (y) the lesser of (A) the product of (i) 54.60% and
(ii) the aggregate Stated Principal   Balance of the Group I Mortgage Loans as of
the last day of the   related   Due   Period   (after   giving   effect   to   scheduled
payments of principal due during the related Due Period,   to the extent received
or advanced and unscheduled collections of principal received during the related
Prepayment Period) and (B) the aggregate Stated Principal Balance of the Group I
Mortgage Loans as of the last day of the related Due Period (after giving effect
to   scheduled   payments of principal   due during the related Due Period,   to the
extent   received or advanced and unscheduled   collections of principal   received
during the related   Prepayment   Period)   minus the product of (i) 0.50% and (ii)
the aggregate   principal balance of the Group I Mortgage Loans as of the Cut-off
Date.

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

       "Class A-1B Certificate": Any one of the Class A-1B Certificates executed
and authenticated by the Securities   Administrator and delivered by the Trustee,
substantially in the


                                       10
<PAGE>


form annexed hereto as Exhibit A-1 and evidencing a Regular Interest in REMIC II
for purposes of the REMIC Provisions.

       "Class A-2 Allocation Percentage":   With respect to any Distribution Date
is the   percentage   equivalent of a fraction,   the numerator of which is (x) the
Group   II   Principal   Remittance   Amount   for   such   Distribution   Date   and the
denominator   of   which   is   (y)   the   Principal    Remittance    Amount   for   such
Distribution Date.

       "Class   A-2   Certificate":   Any   Class   A-2A,   Class   A-2B or Class   A-2C
Certificate.

       "Class   A-2   Principal    Distribution    Amount":    With   respect   to   any
Distribution   Date on or after the Stepdown Date and on which a Trigger Event is
not in effect,   the excess of (x) the sum of the Certificate   Principal Balances
of the Class A-2A, Class A-2B and Class A-2C   Certificates   immediately prior to
such   Distribution Date over (y) the lesser of (A) the product of (i) 54.60% and
(ii) the aggregate Stated Principal Balance of the Group II Mortgage Loans as of
the last day of the   related   Due   Period   (after   giving   effect   to   scheduled
payments of principal due during the related Due Period,   to the extent received
or advanced and unscheduled collections of principal received during the related
Prepayment   Period) and (B) the aggregate Stated Principal   Balance of the Group
II Mortgage   Loans as of the last day of the related   Due Period   (after   giving
effect to scheduled   payments of principal due during the related Due Period, to
the extent   received   or   advanced   and   unscheduled   collections   of   principal
received   during the related   Prepayment   Period) minus the product of (i) 0.50%
and (ii) the aggregate   principal   balance of the Group II Mortgage   Loans as of
the Cut-off Date.

       "Class A-2A Certificate": Any one of the Class A-2A Certificates executed
and authenticated by the Securities   Administrator and delivered by the Trustee,
substantially in the form annexed hereto as Exhibit A-1 and evidencing a Regular
Interest in REMIC II for purposes of the REMIC Provisions.

       "Class A-2B Certificate": Any one of the Class A-2B Certificates executed
and authenticated by the Securities   Administrator and delivered by the Trustee,
substantially in the form annexed hereto as Exhibit A-1 and evidencing a Regular
Interest in REMIC II for purposes of the REMIC Provisions.

       "Class A-2C Certificate": Any one of the Class A-2C Certificates executed
and authenticated by the Securities   Administrator and delivered by the Trustee,
substantially in the form annexed hereto as Exhibit A-1 and evidencing a Regular
Interest in REMIC II for purposes of the REMIC Provisions.

       "Class B Certificate": Any Class B-1, Class B-2 or Class B-3 Certificate.

       "Class B-1 Certificate":   Any one of the Class B-1 Certificates   executed
and authenticated by the Securities   Administrator and delivered by the Trustee,
substantially in the form annexed hereto as Exhibit A-3 and evidencing a Regular
Interest in REMIC II for purposes of the REMIC Provisions.

       "Class   B-1   Principal    Distribution    Amount":    With   respect   to   any
Distribution   Date on or after the Stepdown Date and on which a Trigger Event is
not in   effect,   the   excess   of (x) the sum of (i)   the   aggregate   Certificate
Principal   Balance of the Class A   Certificates   (after   taking


                                       11
<PAGE>


into   account the payment of the Class A Principal   Distribution   Amount on such
Distribution   Date),   (ii) the   Certificate   Principal   Balance of the Class M-1
Certificates   (after   taking into account the payment of the Class M-1 Principal
Distribution Amount on such Distribution Date), (iii) the Certificate   Principal
Balance of the Class M-2 Certificates   (after taking into account the payment of
the Class M-2 Principal Distribution Amount on such Distribution Date), (iv) the
Certificate   Principal Balance of the Class M-3 Certificates   (after taking into
account   the   payment   of the Class M-3   Principal   Distribution   Amount on such
Distribution   Date),   (v) the   Certificate   Principal   Balance   of the Class M-4
Certificates   (after   taking into account the payment of the Class M-4 Principal
Distribution Amount on such Distribution   Date), (vi) the Certificate   Principal
Balance of the Class M-5 Certificates   (after taking into account the payment of
the Class M-5 Principal   Distribution   Amount on such Distribution   Date), (vii)
the Certificate   Principal   Balance of the Class M-6 Certificates   (after taking
into account the payment of the Class M-6 Principal   Distribution Amount on such
Distribution   Date),   (viii) the Certificate   Principal Balance of the Class M-7
Certificates   (after   taking into account the payment of the Class M-7 Principal
Distribution Amount on such Distribution   Date), (ix) the Certificate   Principal
Balance of the Class M-8 Certificates   (after taking into account the payment of
the Class M-8 Principal   Distribution Amount on such Distribution Date), (x) the
Certificate   Principal Balance of the Class M-9 Certificates   (after taking into
account   the   payment   of the Class M-9   Principal   Distribution   Amount on such
Distribution   Date) and (xi) the Certificate   Principal Balance of the Class B-1
Certificates   immediately prior to such Distribution Date over (y) the lesser of
(A) the product of (i) 92.40% and (ii) the aggregate Stated Principal Balance of
the Mortgage   Loans as of the last day of the related Due Period   (after   giving
effect to scheduled   payments of principal due during the related Due Period, to
the extent   received   or   advanced   and   unscheduled   collections   of   principal
received   during the related   Prepayment   Period) and (B) the   aggregate   Stated
Principal   Balance of the   Mortgage   Loans as of the last day of the related Due
Period (after   giving   effect to scheduled   payments of principal due during the
related   Due   Period,   to   the   extent   received   or   advanced   and   unscheduled
collections of principal   received during the related   Prepayment   Period) minus
the   product   of (i)   0.50%   and (ii) the   aggregate   principal   balance   of the
Mortgage Loans as of the Cut-off Date.

       "Class B-2 Certificate":   Any one of the Class B-2 Certificates   executed
and authenticated by the Securities   Administrator and delivered by the Trustee,
substantially in the form annexed hereto as Exhibit A-3 and evidencing a Regular
Interest in REMIC II for purposes of the REMIC Provisions.

       "Class   B-2   Principal    Distribution    Amount":    With   respect   to   any
Distribution   Date on or after the Stepdown Date and on which a Trigger Event is
not in   effect,   the   excess   of (x) the sum of (i)   the   aggregate   Certificate
Principal   Balance of the Class A   Certificates   (after   taking into account the
payment of the Class A Principal Distribution Amount on such Distribution Date),
(ii) the   Certificate   Principal   Balance of the Class M-1   Certificates   (after
taking into account the payment of the Class M-1 Principal   Distribution   Amount
on such Distribution Date), (iii) the Certificate Principal Balance of the Class
M-2   Certificates   (after   taking   into   account   the   payment   of the Class M-2
Principal   Distribution   Amount on such Distribution Date), (iv) the Certificate
Principal   Balance of the Class M-3 Certificates   (after taking into account the
payment   of the Class M-3   Principal   Distribution   Amount on such   Distribution
Date),   (v) the   Certificate   Principal   Balance   of the Class M-4   Certificates
(after taking into account the payment of the Class M-4   Principal   Distribution
Amount on such Distribution Date), (vi) the Certificate Principal Balance of the
Class M-5   Certificates   (after taking into account the payment of the


                                        12
<PAGE>


Class M-5 Principal   Distribution   Amount on such Distribution   Date), (vii) the
Certificate   Principal Balance of the Class M-6 Certificates   (after taking into
account   the   payment   of the Class M-6   Principal   Distribution   Amount on such
Distribution   Date),   (viii) the Certificate   Principal Balance of the Class M-7
Certificates   (after   taking into account the payment of the Class M-7 Principal
Distribution Amount on such Distribution   Date), (ix) the Certificate   Principal
Balance of the Class M-8 Certificates   (after taking into account the payment of
the Class M-8 Principal   Distribution Amount on such Distribution Date), (x) the
Certificate   Principal Balance of the Class M-9 Certificates   (after taking into
account   the   payment   of the Class M-9   Principal   Distribution   Amount on such
Distribution   Date),   (xi) the   Certificate   Principal   Balance of the Class B-1
Certificates   (after   taking into account the payment of the Class B-1 Principal
Distribution   Amount   on such   Distribution   Date)   and   (xii)   the   Certificate
Principal   Balance   of the   Class   B-2   Certificates   immediately   prior to such
Distribution   Date over (y) the lesser of (A) the product of (i) 95.50% and (ii)
the aggregate Stated Principal   Balance of the Mortgage Loans as of the last day
of the   related   Due   Period   (after   giving   effect to   scheduled   payments   of
principal due during the related Due Period,   to the extent received or advanced
and unscheduled   collections of principal received during the related Prepayment
Period) and (B) the aggregate Stated Principal   Balance of the Mortgage Loans as
of the last day of the   related Due Period   (after   giving   effect to   scheduled
payments of principal due during the related Due Period,   to the extent received
or advanced and unscheduled collections of principal received during the related
Prepayment   Period)   minus   the   product   of (i)   0.50%   and (ii) the   aggregate
principal balance of the Mortgage Loans as of the Cut-off Date.

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

       "Class   B-3   Principal    Distribution    Amount":    With   respect   to   any
Distribution   Date on or after the Stepdown Date and on which a Trigger Event is
not in   effect,   the   excess   of (x) the sum of (i)   the   aggregate   Certificate
Principal   Balance of the Class A   Certificates   (after   taking into account the
payment of the Class A Principal Distribution Amount on such Distribution Date),
(ii) the   Certificate   Principal   Balance of the Class M-1   Certificates   (after
taking into account the payment of the Class M-1 Principal   Distribution   Amount
on such Distribution Date), (iii) the Certificate Principal Balance of the Class
M-2   Certificates   (after   taking   into   account   the   payment   of the Class M-2
Principal   Distribution   Amount on such Distribution Date), (iv) the Certificate
Principal   Balance of the Class M-3 Certificates   (after taking into account the
payment   of the Class M-3   Principal   Distribution   Amount on such   Distribution
Date),   (v) the   Certificate   Principal   Balance   of the Class M-4   Certificates
(after taking into account the payment of the Class M-4   Principal   Distribution
Amount on such Distribution Date), (vi) the Certificate Principal Balance of the
Class M-5   Certificates   (after taking into account the payment of the Class M-5
Principal   Distribution Amount on such Distribution Date), (vii) the Certificate
Principal   Balance of the Class M-6 Certificates   (after taking into account the
payment   of the Class M-6   Principal   Distribution   Amount on such   Distribution
Date),   (viii) the Certificate   Principal   Balance of the Class M-7 Certificates
(after taking into account the payment of the Class M-7   Principal   Distribution
Amount on such Distribution Date), (ix) the Certificate Principal Balance of the
Class M-8   Certificates   (after taking into account the payment of the Class M-8
Principal   Distribution   Amount on such Distribution   Date), (x) the Certificate
Principal   Balance of the Class M-9 Certificates   (after taking into account the
payment   of the Class M-9


                                       13
<PAGE>


Principal   Distribution   Amount on such Distribution Date), (xi) the Certificate
Principal   Balance of the Class B-1 Certificates   (after taking into account the
payment   of the Class B-1   Principal   Distribution   Amount on such   Distribution
Date),   (xii) the Certificate   Principal   Balance of the Class B-2   Certificates
(after taking into account the payment of the Class B-2   Principal   Distribution
Amount on such Distribution   Date) and (xiii) the Certificate   Principal Balance
of the Class B-3 Certificates   immediately   prior to such Distribution Date over
(y) the lesser of (A) the   product of (i) 97.70% and (ii) the   aggregate   Stated
Principal   Balance of the   Mortgage   Loans as of the last day of the related Due
Period (after   giving   effect to scheduled   payments of principal due during the
related   Due   Period,   to   the   extent   received   or   advanced   and   unscheduled
collections of principal   received during the related Prepayment Period) and (B)
the aggregate Stated Principal   Balance of the Mortgage Loans as of the last day
of the   related   Due   Period   (after   giving   effect to   scheduled   payments   of
principal due during the related Due Period,   to the extent received or advanced
and unscheduled   collections of principal received during the related Prepayment
Period) minus the product of (i) 0.50% and (ii) the aggregate   principal balance
of the Mortgage Loans as of the Cut-off Date.

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

       "Class M   Certificates":   The Class M-1, Class M-2, Class M-3, Class M-4,
Class M-5, Class M-6, Class M-7, Class M-8 and Class M-9 Certificates.

       "Class M-1 Certificate":   Any one of the Class M-1 Certificates   executed
and authenticated by the Securities   Administrator and delivered by the Trustee,
substantially in the form annexed hereto as Exhibit A-2 and evidencing a Regular
Interest in REMIC II for purposes of the REMIC Provisions.

       "Class   M-1   Principal    Distribution    Amount":    With   respect   to   any
Distribution   Date on or after the Stepdown Date and on which a Trigger Event is
not in   effect,   the   excess   of (x) the sum of (i)   the   aggregate   Certificate
Principal   Balance of the Class A   Certificates   (after   taking into account the
payment of the Class A Principal   Distribution Amount on such Distribution Date)
and (ii)   the   Certificate   Principal   Balance   of the   Class   M-1   Certificates
immediately   prior to such   Distribution   Date   over (y) the   lesser   of (A) the
product of (i) 62.60% and (ii) the   aggregate   Stated   Principal   Balance of the
Mortgage Loans as of the last day of the related Due Period (after giving effect
to   scheduled   payments of principal   due during the related Due Period,   to the
extent   received or advanced and unscheduled   collections of principal   received
during the related   Prepayment   Period) and (B) the aggregate   Stated   Principal
Balance   of the   Mortgage   Loans as of the last day of the   related   Due   Period
(after giving   effect to scheduled   payments of principal due during the related
Due Period,   to the extent received or advanced and   unscheduled   collections of
principal   received during the related   Prepayment   Period) minus the product of
(i) 0.50% and (ii) the aggregate   principal   balance of the Mortgage Loans as of
the Cut-off Date.

       "Class M-2 Certificate":   Any one of the Class M-2 Certificates   executed
and authenticated by the Securities   Administrator and delivered by the Trustee,
substantially in the


                                       14
<PAGE>


form annexed hereto as Exhibit A-2 and evidencing a Regular Interest in REMIC II
for purposes of the REMIC Provisions.

       "Class   M-2   Principal    Distribution    Amount":    With   respect   to   any
Distribution   Date on or after the Stepdown Date and on which a Trigger Event is
not in   effect,   the   excess   of (x) the sum of (i)   the   aggregate   Certificate
Principal   Balance of the Class A   Certificates   (after   taking into account the
payment of the Class A Principal Distribution Amount on such Distribution Date),
(ii) the   Certificate   Principal   Balance of the Class M-1   Certificates   (after
taking into account the payment of the Class M-1 Principal   Distribution   Amount
on such   Distribution   Date) and (iii) the Certificate   Principal Balance of the
Class M-2 Certificates   immediately prior to such Distribution Date over (y) the
lesser of (A) the product of (i) 69.20% and (ii) the aggregate   Stated Principal
Balance   of the   Mortgage   Loans as of the last day of the   related   Due   Period
(after giving   effect to scheduled   payments of principal due during the related
Due Period,   to the extent received or advanced and   unscheduled   collections of
principal   received during the related   Prepayment Period) and (B) the aggregate
Stated Principal Balance of the Mortgage Loans as of the last day of the related
Due Period (after   giving   effect to scheduled   payments of principal due during
the related   Due Period,   to the extent   received   or advanced   and   unscheduled
collections of principal   received during the related   Prepayment   Period) minus
the   product   of (i)   0.50%   and (ii) the   aggregate   principal   balance   of the
Mortgage Loans as of the Cut-off Date.

       "Class M-3 Certificate":   Any one of the Class M-3 Certificates   executed
and authenticated by the Securities   Administrator and delivered by the Trustee,
substantially in the form annexed hereto as Exhibit A-2 and evidencing a Regular
Interest in REMIC II for purposes of the REMIC Provisions.

       "Class   M-3   Principal    Distribution    Amount":    With   respect   to   any
Distribution   Date on or after the Stepdown Date and on which a Trigger Event is
not in   effect,   the   excess   of (x) the sum of (i)   the   aggregate   Certificate
Principal   Balance of the Class A   Certificates   (after   taking into account the
payment of the Class A Principal Distribution Amount on such Distribution Date),
(ii) the   Certificate   Principal   Balance of the Class M-1   Certificates   (after
taking into account the payment of the Class M-1 Principal   Distribution   Amount
on such Distribution Date), (iii) the Certificate Principal Balance of the Class
M-2   Certificates   (after   taking   into   account   the   payment   of the Class M-2
Principal    Distribution    Amount   on   such   Distribution   Date)   and   (iv)   the
Certificate Principal Balance of the Class M-3 Certificates immediately prior to
such   Distribution Date over (y) the lesser of (A) the product of (i) 73.20% and
(ii) the aggregate Stated Principal Balance of the Mortgage Loans as of the last
day of the related Due Period   (after   giving   effect to   scheduled   payments of
principal due during the related Due Period,   to the extent received or advanced
and unscheduled   collections of principal received during the related Prepayment
Period) and (B) the aggregate Stated Principal   Balance of the Mortgage Loans as
of the last day of the   related Due Period   (after   giving   effect to   scheduled
payments of principal due during the related Due Period,   to the extent received
or advanced and unscheduled collections of principal received during the related
Prepayment   Period)   minus   the   product   of (i)   0.50%   and (ii) the   aggregate
principal balance of the Mortgage Loans as of the Cut-off Date.

       "Class M-4 Certificate":   Any one of the Class M-4 Certificates   executed
and authenticated by the Securities   Administrator and delivered by the Trustee,
substantially in the


                                       15
<PAGE>


form annexed hereto as Exhibit A-2 and evidencing a Regular Interest in REMIC II
for purposes of the REMIC Provisions.

       "Class   M-4   Principal    Distribution    Amount":    With   respect   to   any
Distribution   Date on or after the Stepdown Date and on which a Trigger Event is
not in   effect,   the   excess   of (x) the sum of (i)   the   aggregate   Certificate
Principal   Balance of the Class A   Certificates   (after   taking into account the
payment of the Class A Principal Distribution Amount on such Distribution Date),
(ii) the   Certificate   Principal   Balance of the Class M-1   Certificates   (after
taking into account the payment of the Class M-1 Principal   Distribution   Amount
on such Distribution Date), (iii) the Certificate Principal Balance of the Class
M-2   Certificates   (after   taking   into   account   the   payment   of the Class M-2
Principal   Distribution   Amount on such Distribution Date), (iv) the Certificate
Principal   Balance of the Class M-3 Certificates   (after taking into account the
payment   of the Class M-3   Principal   Distribution   Amount on such   Distribution
Date) and (v) the Certificate   Principal   Balance of the Class M-4   Certificates
immediately   prior to such   Distribution   Date   over (y) the   lesser   of (A) the
product of (i) 76.90% and (ii) the   aggregate   Stated   Principal   Balance of the
Mortgage Loans as of the last day of the related Due Period (after giving effect
to   scheduled   payments of principal   due during the related Due Period,   to the
extent   received or advanced and unscheduled   collections of principal   received
during the related   Prepayment   Period) and (B) the aggregate   Stated   Principal
Balance   of the   Mortgage   Loans as of the last day of the   related   Due   Period
(after giving   effect to scheduled   payments of principal due during the related
Due Period,   to the extent received or advanced and   unscheduled   collections of
principal   received during the related   Prepayment   Period) minus the product of
(i) 0.50% and (ii) the aggregate   principal   balance of the Mortgage Loans as of
the Cut-off Date.

       "Class M-5 Certificate":   Any one of the Class M-5 Certificates   executed
and authenticated by the Securities   Administrator and delivered by the Trustee,
substantially in the form annexed hereto as Exhibit A-2 and evidencing a Regular
Interest in REMIC II for purposes of the REMIC Provisions.

       "Class   M-5   Principal    Distribution    Amount":    With   respect   to   any
Distribution   Date on or after the Stepdown Date and on which a Trigger Event is
not in   effect,   the   excess   of (x) the sum of (i)   the   aggregate   Certificate
Principal   Balance of the Class A   Certificates   (after   taking into account the
payment of the Class A Principal Distribution Amount on such Distribution Date),
(ii) the   Certificate   Principal   Balance of the Class M-1   Certificates   (after
taking into account the payment of the Class M-1 Principal   Distribution   Amount
on such Distribution Date), (iii) the Certificate Principal Balance of the Class
M-2   Certificates   (after   taking   into   account   the   payment   of the Class M-2
Principal   Distribution   Amount on such Distribution Date), (iv) the Certificate
Principal   Balance of the Class M-3 Certificates   (after taking into account the
payment   of the Class M-3   Principal   Distribution   Amount on such   Distribution
Date),   (v) the   Certificate   Principal   Balance   of the Class M-4   Certificates
(after taking into account the payment of the Class M-4   Principal   Distribution
Amount on such Distribution Date) and (vi) the Certificate   Principal Balance of
the Class M-5 Certificates   immediately prior to such Distribution Date over (y)
the   lesser of (A) the   product   of (i)   80.10%   and (ii) the   aggregate   Stated
Principal   Balance of the   Mortgage   Loans as of the last day of the related Due
Period (after   giving   effect to scheduled   payments of principal due during the
related   Due   Period,   to   the   extent   received   or   advanced   and   unscheduled
collections of principal   received during the related Prepayment Period) and (B)
the aggregate Stated Principal   Balance of the


                                       16
<PAGE>


Mortgage Loans as of the last day of the related Due Period (after giving effect
to   scheduled   payments of principal   due during the related Due Period,   to the
extent   received or advanced and unscheduled   collections of principal   received
during the related   Prepayment   Period)   minus the product of (i) 0.50% and (ii)
the aggregate principal balance of the Mortgage Loans as of the Cut-off Date.

       "Class M-6 Certificate":   Any one of the Class M-6 Certificates   executed
and authenticated by the Securities   Administrator and delivered by the Trustee,
substantially in the form annexed hereto as Exhibit A-2 and evidencing a Regular
Interest in REMIC II for purposes of the REMIC Provisions.

       "Class   M-6   Principal    Distribution    Amount":    With   respect   to   any
Distribution   Date on or after the Stepdown Date and on which a Trigger Event is
not in   effect,   the   excess   of (x) the sum of (i)   the   aggregate   Certificate
Principal   Balance of the Class A   Certificates   (after   taking into account the
payment of the Class A Principal Distribution Amount on such Distribution Date),
(ii) the   Certificate   Principal   Balance of the Class M-1   Certificates   (after
taking into account the payment of the Class M-1 Principal   Distribution   Amount
on such Distribution Date), (iii) the Certificate Principal Balance of the Class
M-2   Certificates   (after   taking   into   account   the   payment   of the Class M-2
Principal   Distribution   Amount on such Distribution Date), (iv) the Certificate
Principal   Balance of the Class M-3 Certificates   (after taking into account the
payment   of the Class M-3   Principal   Distribution   Amount on such   Distribution
Date),   (v) the   Certificate   Principal   Balance   of the Class M-4   Certificates
(after taking into account the payment of the Class M-4   Principal   Distribution
Amount on such Distribution Date), (vi) the Certificate Principal Balance of the
Class M-5   Certificates   (after taking into account the payment of the Class M-5
Principal    Distribution   Amount   on   such   Distribution   Date)   and   (vii)   the
Certificate Principal Balance of the Class M-6 Certificates immediately prior to
such   Distribution Date over (y) the lesser of (A) the product of (i) 83.30% and
(ii) the aggregate Stated Principal Balance of the Mortgage Loans as of the last
day of the related Due Period   (after   giving   effect to   scheduled   payments of
principal due during the related Due Period,   to the extent received or advanced
and unscheduled   collections of principal received during the related Prepayment
Period) and (B) the aggregate Stated Principal   Balance of the Mortgage Loans as
of the last day of the   related Due Period   (after   giving   effect to   scheduled
payments of principal due during the related Due Period,   to the extent received
or advanced and unscheduled collections of principal received during the related
Prepayment   Period)   minus   the   product   of (i)   0.50%   and (ii) the   aggregate
principal balance of the Mortgage Loans as of the Cut-off Date.

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

       "Class   M-7   Principal    Distribution    Amount":    With   respect   to   any
Distribution   Date on or after the Stepdown Date and on which a Trigger Event is
not in   effect,   the   excess   of (x) the sum of (i)   the   aggregate   Certificate
Principal   Balance of the Class A   Certificates   (after   taking into account the
payment of the Class A Principal Distribution Amount on such Distribution Date),
(ii) the   Certificate   Principal   Balance of the Class M-1   Certificates   (after
taking into account the payment of the Class M-1 Principal   Distribution   Amount
on such


                                       17
<PAGE>


Distribution   Date),   (iii) the Certificate   Principal   Balance of the Class M-2
Certificates   (after   taking into account the payment of the Class M-2 Principal
Distribution Amount on such Distribution   Date), (iv) the Certificate   Principal
Balance of the Class M-3 Certificates   (after taking into account the payment of
the Class M-3 Principal   Distribution Amount on such Distribution Date), (v) the
Certificate   Principal Balance of the Class M-4 Certificates   (after taking into
account   the   payment   of the Class M-4   Principal   Distribution   Amount on such
Distribution   Date),   (vi) the   Certificate   Principal   Balance of the Class M-5
Certificates   (after   taking into account the payment of the Class M-5 Principal
Distribution Amount on such Distribution Date), (vii) the Certificate   Principal
Balance of the Class M-6 Certificates   (after taking into account the payment of
the Class M-6   Principal   Distribution   Amount   on such   Distribution   Date) and
(viii)   the   Certificate    Principal   Balance   of   the   Class   M-7   Certificates
immediately   prior to such   Distribution   Date   over (y) the   lesser   of (A) the
product of (i) 86.20% and (ii) the   aggregate   Stated   Principal   Balance of the
Mortgage Loans as of the last day of the related Due Period (after giving effect
to   scheduled   payments of principal   due during the related Due Period,   to the
extent   received or advanced and unscheduled   collections of principal   received
during the related   Prepayment   Period) and (B) the aggregate   Stated   Principal
Balance   of the   Mortgage   Loans as of the last day of the   related   Due   Period
(after giving   effect to scheduled   payments of principal due during the related
Due Period,   to the extent received or advanced and   unscheduled   collections of
principal   received during the related   Prepayment   Period) minus the product of
(i) 0.50% and (ii) the aggregate   principal   balance of the Mortgage Loans as of
the Cut-off Date.

       "Class M-8 Certificate":   Any one of the Class M-8 Certificates   executed
and authenticated by the Securities   Administrator and delivered by the Trustee,
substantially in the form annexed hereto as Exhibit A-2 and evidencing a Regular
Interest in REMIC II for purposes of the REMIC Provisions.

       "Class   M-8   Principal    Distribution    Amount":    With   respect   to   any
Distribution   Date on or after the Stepdown Date and on which a Trigger Event is
not in   effect,   the   excess   of (x) the sum of (i)   the   aggregate   Certificate
Principal   Balance of the Class A   Certificates   (after   taking into account the
payment of the Class A Principal Distribution Amount on such Distribution Date),
(ii) the   Certificate   Principal   Balance of the Class M-1   Certificates   (after
taking into account the payment of the Class M-1 Principal   Distribution   Amount
on such Distribution Date), (iii) the Certificate Principal Balance of the Class
M-2   Certificates   (after   taking   into   account   the   payment   of the Class M-2
Principal   Distribution   Amount on such Distribution Date), (iv) the Certificate
Principal   Balance of the Class M-3 Certificates   (after taking into account the
payment   of the Class M-3   Principal   Distribution   Amount on such   Distribution
Date),   (v) the   Certificate   Principal   Balance   of the Class M-4   Certificates
(after taking into account the payment of the Class M-4   Principal   Distribution
Amount on such Distribution Date), (vi) the Certificate Principal Balance of the
Class M-5   Certificates   (after taking into account the payment of the Class M-5
Principal   Distribution Amount on such Distribution Date), (vii) the Certificate
Principal   Balance of the Class M-6 Certificates   (after taking into account the
payment   of the Class M-6   Principal   Distribution   Amount on such   Distribution
Date),   (viii) the Certificate   Principal   Balance of the Class M-7 Certificates
(after taking into account the payment of the Class M-7   Principal   Distribution
Amount on such Distribution Date) and (ix) the Certificate   Principal Balance of
the Class M-8 Certificates   immediately prior to such Distribution Date over (y)
the   lesser of (A) the   product   of (i)   88.40%   and (ii) the   aggregate   Stated
Principal   Balance of the   Mortgage   Loans as of the last day of the


                                       18
<PAGE>


related Due Period (after   giving effect to scheduled   payments of principal due
during   the   related   Due   Period,   to   the   extent   received   or   advanced   and
unscheduled   collections   of principal   received   during the related   Prepayment
Period) and (B) the aggregate Stated Principal   Balance of the Mortgage Loans as
of the last day of the   related Due Period   (after   giving   effect to   scheduled
payments of principal due during the related Due Period,   to the extent received
or advanced and unscheduled collections of principal received during the related
Prepayment   Period)   minus   the   product   of (i)   0.50%   and (ii) the   aggregate
principal balance of the Mortgage Loans as of the Cut-off Date.

       "Class M-9 Certificate":   Any one of the Class M-9 Certificates   executed
and authenticated by the Securities   Administrator and delivered by the Trustee,
substantially in the form annexed hereto as Exhibit A-2 and evidencing a Regular
Interest in REMIC II for purposes of the REMIC Provisions.

       "Class   M-9   Principal    Distribution    Amount":    With   respect   to   any
Distribution   Date on or after the Stepdown Date and on which a Trigger Event is
not in   effect,   the   excess   of (x) the sum of (i)   the   aggregate   Certificate
Principal   Balance of the Class A   Certificates   (after   taking into account the
payment of the Class A Principal Distribution Amount on such Distribution Date),
(ii) the   Certificate   Principal   Balance of the Class M-1   Certificates   (after
taking into account the payment of the Class M-1 Principal   Distribution   Amount
on such Distribution Date), (iii) the Certificate Principal Balance of the Class
M-2   Certificates   (after   taking   into   account   the   payment   of the Class M-2
Principal   Distribution   Amount on such Distribution Date), (iv) the Certificate
Principal   Balance of the Class M-3 Certificates   (after taking into account the
payment   of the Class M-3   Principal   Distribution   Amount on such   Distribution
Date),   (v) the   Certificate   Principal   Balance   of the Class M-4   Certificates
(after taking into account the payment of the Class M-4   Principal   Distribution
Amount on such Distribution Date), (vi) the Certificate Principal Balance of the
Class M-5   Certificates   (after taking into account the payment of the Class M-5
Principal   Distribution Amount on such Distribution Date), (vii) the Certificate
Principal   Balance of the Class M-6 Certificates   (after taking into account the
payment   of the Class M-6   Principal   Distribution   Amount on such   Distribution
Date).   (viii) the Certificate   Principal   Balance of the Class M-7 Certificates
(after taking into account the payment of the Class M-7   Principal   Distribution
Amount on such Distribution Date), (ix) the Certificate Principal Balance of the
Class M-8   Certificates   (after taking into account the payment of the Class M-8
Principal    Distribution   Amount   on   such   Distribution   Date)   and   (vii)   the
Certificate Principal Balance of the Class M-9 Certificates immediately prior to
such   Distribution Date over (y) the lesser of (A) the product of (i) 90.40% and
(ii) the aggregate Stated Principal Balance of the Mortgage Loans as of the last
day of the related Due Period   (after   giving   effect to   scheduled   payments of
principal due during the related Due Period,   to the extent received or advanced
and unscheduled   collections of principal received during the related Prepayment
Period) and (B) the aggregate Stated Principal   Balance of the Mortgage Loans as
of the last day of the   related Due Period   (after   giving   effect to   scheduled
payments of principal due during the related Due Period,   to the extent received
or advanced and unscheduled collections of principal received during the related
Prepayment   Period)   minus   the   product   of (i)   0.50%   and (ii) the   aggregate
principal balance of the Mortgage Loans as of the Cut-off Date.

       "Class P Certificate":   Any one of the Class P Certificates   executed and
authenticated   by the   Securities   Administrator   and   delivered by the Trustee,
substantially in the


                                       19
<PAGE>


form annexed hereto as Exhibit A-5 and evidencing a Regular Interest in REMIC II
for purposes of the REMIC Provisions.

       "Class R Certificates":   Any one of the Class R Certificates executed and
authenticated   by the   Securities   Administrator   and   delivered by the Trustee,
substantially   in the form annexed   hereto as Exhibit A-6,   and   evidencing   the
Class R-I Interest and the Class R-II Interest.

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

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

       "Closing Date": February 28, 2005

       "Code": The Internal Revenue Code of 1986 as amended from time to time.

       "Collection Account": The account or accounts created and maintained,   or
caused to be created and maintained, by the Servicer pursuant to Section 3.08(a)
of this Agreement,   which shall be entitled "Saxon Mortgage   Services,   Inc., as
Servicer for HSBC Bank USA,   National   Association as Trustee,   in trust for the
registered   holders of ACE   Securities   Corp.,   Home Equity   Loan Trust,   Series
2005-RM1, Asset Backed Pass-Through Certificates".   The Collection Accounts must
be Eligible Accounts.

       "Commission": The Securities and Exchange Commission.

       "Corporate   Trust Office":   The principal   corporate   trust office of the
Trustee which office at the date of the execution of this   instrument is located
at 452 Fifth Avenue, New York, New York 10018, Attention:   ACE Securities Corp.,
2005-RM1,   or at such other   address as the Trustee may   designate   from time to
time by notice to the   Certificateholders,   the Depositor,   the Master Servicer,
the   Securities   Administrator   and the Servicer.   The office of the   Securities
Administrator,   which for purposes of   Certificate   transfers   and   surrender is
located   at   Wells   Fargo   Bank,   N.A.,   Sixth   Street   and   Marquette    Avenue,
Minneapolis, Minnesota 55479, Attention: Corporate Trust (ACE 2005-RM1), and for
all other purposes is located at Wells Fargo Bank,   N.A., P.O. Box 98, Columbia,
Maryland   21046,   Attention:   Corporate   Trust (ACE   2005-RM1) (or for overnight
deliveries,   at 9062 Old Annapolis Road,   Columbia,   Maryland 21045,   Attention:
Corporate Trust (ACE 2005-RM1)).

       "Corresponding   Certificate":   With   respect   to   each   REMIC   I   Regular
Interest, as follows:

                            REMIC I Regular Interest            Class
                     --------------------------------          --------
                     REMIC I Regular Interest I-LTA1A            A-1A
                     REMIC I Regular Interest I-LTA1B           A-1B
                     REMIC I Regular Interest I-LTA2A           A-2A
                     REMIC I Regular Interest I-LTA2B           A-2B
                     REMIC I Regular Interest I-LTA2C           A-2C
                     REMIC I Regular Interest I-LTM1             M-1
                     REMIC I Regular Interest I-LTM2             M-2
                     REMIC I Regular Interest I-LTM3             M-3
                     REMIC I Regular Interest I-LTM4             M-4
                     REMIC I Regular Interest I-LTM5             M-5
                     REMIC I Regular Interest I-LTM6             M-6


                                       20
<PAGE>


                     REMIC I Regular Interest I-LTM7             M-7
                     REMIC I Regular Interest I-LTM8             M-8
                     REMIC I Regular Interest I-LTM9             M-9
                     REMIC I Regular Interest I-LTB1             B-1
                      REMIC I Regular Interest I-LTB2             B-2
                     REMIC I Regular Interest I-LTB3             B-3
                     REMIC I Regular Interest I-LTP               P

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

       "Credit Risk Management   Agreements":   The agreements   between the Credit
Risk   Manager   and the   Servicer   and/or   Master   Servicer,   regarding   the loss
mitigation and advisory services to be provided by the Credit Risk Manager.

       "Credit   Risk   Management   Fee":   The amount   payable to the Credit   Risk
Manager on each   Distribution   Date as compensation for all services rendered by
it in the   exercise   and   performance   of any and all   powers   and duties of the
Credit Risk Manager under the Credit Risk   Management   Agreements,   which amount
shall equal one twelfth of the   product of (i) the Credit   Risk   Management   Fee
Rate multiplied by (ii) the Stated   Principal   Balance of the Mortgage Loans and
any related REO Properties as of the first day of the related Due Period.

       "Credit Risk Management Fee Rate": 0.015% per annum.

       "Credit Risk Manager":   The Murrayhill   Company, a Colorado   corporation,
and its successors and assigns.

       "Custodial   Account":   Shall mean each account   maintained   by an Interim
Servicer under the related Servicing Agreement.

       "Custodial   Agreement":   The Custodial   Agreement dated as of February 1,
2005, among the Trustee, the Custodian and the Servicer as such agreement may be
amended or   supplemented   from time to time,   or any other   custodial   agreement
entered into after the date hereof with respect to any Mortgage   Loan subject to
this Agreement.

       "Custodian":   Wells   Fargo or any   other   custodian   appointed   under any
custodial agreement entered into after the date of this Agreement.

       "Cut-off   Date":   With respect to each Mortgage   Loan,   February 1, 2005.
With respect to all Qualified   Substitute Mortgage Loans, their respective dates
of substitution. References herein to the "Cut-off Date," when used with respect
to more than one Mortgage   Loan,   shall be to the   respective   Cut-off Dates for
such Mortgage Loans.

       "DBRS": Dominion Bond Rating Service, or any successor in interest.


                                       21
<PAGE>


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

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

       "Definitive Certificates": As defined in Section 6.01(b).

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

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

       "Depositor":   ACE   Securities   Corp.,   a   Delaware   corporation,   or   its
successor in interest.

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

       "Depository   Institution":   Any depository   institution or trust company,
including   the Trustee,   that (a) is   incorporated   under the laws of the United
States of   America or any State   thereof,   (b) is   subject   to   supervision   and
examination   by federal or state   banking   authorities   and (c) has   outstanding
unsecured   commercial paper or other short-term   unsecured debt obligations (or,
in the case of a depository   institution   that is the principal   subsidiary of a
holding   company,   such holding company has unsecured   commercial paper or other
short-term unsecured debt obligations) that are rated at least A-1+ by S&P, F-1+
by Fitch and P-1 by Moody's (or, if such Rating   Agencies   are no longer   rating
the Offered Certificates,   comparable ratings by any other nationally recognized
statistical rating agency then rating the Offered Certificates).

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

       "Determination   Date": With respect to each Distribution Date and (i) the
Servicer,   the 15th day of the calendar   month in which such   Distribution   Date
occurs,   or if such 15th day is


                                       22
<PAGE>


not a Business Day, the Business Day   immediately   preceding   such 15th day (ii)
each Interim Servicer, as set forth in the related Servicing Agreement.

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

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

       "Distribution   Account":   The   trust   account   or   accounts   created   and
maintained by the Securities   Administrator   pursuant to Section   3.08(b) in the
name of the Securities   Administrator for the benefit of the   Certificateholders
and designated   "Wells Fargo Bank, N.A., in trust for registered   holders of ACE
Securities   Corp.   Home   Equity   Loan   Trust,   Series   2005-RM1".   Funds   in the
Distribution Account shall be held in trust for the   Certificateholders   for the
uses and purposes set forth in this Agreement.   The Distribution Account must be
an Eligible Account.

        "Distribution   Date":   The 25th day of any month,   or if such 25th day is
not a Business   Day,   the   Business   Day   immediately   following   such 25th day,
commencing in March 2005.

       "Due Date": With respect to each Distribution   Date, the day of the month
on which the   Monthly   Payment is due on a Mortgage   Loan during the related Due
Period, exclusive of any days of grace.

       "Due   Period":   With   respect   to any   Distribution   Date   and the   Saxon
Mortgage Loans, the period commencing on the second day of the month immediately
preceding   the month


                                       23
<PAGE>


in which such   Distribution Date occurs and ending on the first day of the month
in which such   Distribution   Date occurs.   With respect to any Distribution Date
and each   Interim   Servicer,   the period as set forth in the   related   Servicing
Agreement.

       "Eligible   Account":   Any of (i) an account or accounts maintained with a
Depository   Institution,   (ii) an account or accounts   the deposits in which are
fully insured by the FDIC or (iii) a trust account or accounts maintained with a
federal depository   institution or state chartered depository institution acting
in its fiduciary capacity. Eligible Accounts may bear interest.

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

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

       "Excess   Liquidation   Proceeds":   To the extent   that such   amount is not
required by law to be paid to the   related   mortgagor,   the   amount,   if any, by
which Liquidation Proceeds with respect to a liquidated Mortgage Loan exceed the
sum of (i) the outstanding   principal   balance of such Mortgage Loan and accrued
but unpaid interest at the related Net Mortgage Rate through the last day of the
month   in   which   the   related   Liquidation   Event   occurs,   plus   (ii)   related
liquidation   expenses   or other   amounts to which the   Servicer   or the   related
Interim   Servicer is entitled to be reimbursed   from   Liquidation   Proceeds with
respect to such   liquidated   Mortgage   Loan   pursuant   to   Section   3.09 of this
Agreement or pursuant to the related Servicing Agreement.

       "Expense   Adjusted   Mortgage Rate":   With respect to any Mortgage Loan or
REO Property, the then applicable Mortgage Rate thereon minus the Administration
Fee Rate.

       "Extraordinary   Trust Fund Expense":   Any amounts payable or reimbursable
to the Trustee, the Master Servicer, the Securities Administrator, the Custodian
or any   director,   officer,   employee or agent of any such Person from the Trust
Fund pursuant to the terms of this   Agreement   and any amounts   payable from the
Distribution Account in respect of taxes pursuant to Section 11.01(g)(v).

       "Extra Principal   Distribution   Amount": With respect to any Distribution
Date,   the lesser of (i) the Net Monthly Excess   Cashflow for such   Distribution
Date and (ii) the   Overcollateralization   Increase Amount for such   Distribution
Date.

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

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

       "Final Maturity Date": The Distribution Date occurring in March 2035.

       "Final Recovery   Determination":   With respect to any defaulted   Mortgage
Loan or any REO Property   (other than a Mortgage Loan or REO Property   purchased
by   an   Originator,   the   Seller   or   the   Master   Servicer   pursuant   to   or as
contemplated by Section 2.03, 3.13(c) or Section 10.01), a determination made by
the   Servicer or the   related   Interim   Servicer   that all   Insurance   Proceeds,
Liquidation   Proceeds   and other   payments or   recoveries   which the Servicer


                                        24
<PAGE>


or related Interim Servicer,   in its reasonable good faith judgment,   expects to
be   finally   recoverable   in   respect   thereof   have   been so   recovered,   which
determination   shall   be   evidenced   by a   certificate   of a   Servicing   Officer
delivered to the Master Servicer and maintained in its records.

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

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

       "Group I Interest   Remittance   Amount":   With respect to any Distribution
Date is that portion of the Available   Distribution Amount for such Distribution
Date that represents interest received or advanced on the Group I Mortgage Loans
(net of the Administration Fees and any Prepayment Charges and after taking into
account   amounts   payable or   reimbursable   to the Trustee,   the Custodian,   the
Securities   Administrator,   the Master Servicer or the Servicer pursuant to this
Agreement or the Custodial   Agreement or the Interim   Servicers   pursuant to the
Servicing Agreements.

       "Group I Mortgage Loans": Those Mortgage Loans identified on the Mortgage
Loan Schedule as Group I Mortgage Loans.

       "Group I Principal Distribution Amount": With respect to any Distribution
Date will be the sum of (i) the principal portion of all Monthly Payments on the
Group I   Mortgage   Loans due   during   the   related   Due   Period,   whether or not
received   on or prior to the   related   Determination   Date;   (ii) the   principal
portion of all   proceeds   received   in respect   of the   repurchase   of a Group I
Mortgage Loan or, in the case of a substitution,   certain amounts representing a
principal   adjustment,   during the related   Prepayment   Period pursuant to or as
contemplated   by   Section   2.03,   Section   3.13(c)   and   Section   10.01   of this
Agreement or the Servicing   Agreements (iii) the principal   portion of all other
unscheduled collections,   including Insurance Proceeds, Liquidation Proceeds and
all   Principal   Prepayments   in full and in part,   received   during the   related
Prepayment Period, to the extent applied as recoveries of principal on the Group
I Mortgage Loans, net in each case of payments or reimbursements to the Trustee,
the Custodian, the Master Servicer, the Securities   Administrator,   the Servicer
or the Interim   Servicers   and (iv) the Class A-1   Allocation   Percentage of the
amount of any   Overcollateralization   Increase Amount for such Distribution Date
MINUS   (v)   the   Class   A-1    Allocation    Percentage    of   the   amount   of   any
Overcollateralization Reduction Amount for such Distribution Date.

       "Group I Principal   Remittance Amount":   With respect to any Distribution
Date will be the sum of the amounts   described   in clauses (i) through   (iii) of
the definition of Group I Principal Distribution Amount.

       "Group II Interest Remittance   Amount":   With respect to any Distribution
Date is that portion of the Available   Distribution Amount for such Distribution
Date that   represents   interest   received   or   advanced on the Group II Mortgage
Loans   (net of the   Administration   Fees and any   Prepayment   Charges   and after
taking   into   account   amounts   payable   or   reimbursable   to


                                        25
<PAGE>


the Trustee, the Custodian, the Securities Administrator, the Master Servicer or
the Servicer pursuant to this Agreement or the Custodial Agreement or payable or
reimbursable to the Interim Servicers pursuant to the Servicing Agreements.

       "Group   II   Mortgage   Loans":   Those   Mortgage   Loans   identified   on the
Mortgage Loan Schedule as Group II Mortgage Loans.

       "Group   II    Principal    Distribution    Amount":    With   respect   to   any
Distribution   Date will be the sum of (i) the   principal   portion of all Monthly
Payments   on the Group II   Mortgage   Loans due during the   related   Due   Period,
whether or not received on or prior to the related   Determination Date; (ii) the
principal   portion of all proceeds   received in respect of the   repurchase   of a
Group II   Mortgage   Loan   or,   in the case of a   substitution,   certain   amounts
representing   a   principal   adjustment,   during the   related   Prepayment   Period
pursuant to or as   contemplated   by Section   2.03,   Section   3.13(c) and Section
10.01;   (iii)   the   principal   portion   of all   other   unscheduled   collections,
including Insurance Proceeds, Liquidation Proceeds and all Principal Prepayments
in full and in part,   received   during the   related   Prepayment   Period,   to the
extent applied as recoveries of principal on the Group II Mortgage Loans, net in
each case of payments or   reimbursements   to the   Trustee,   the   Custodian,   the
Master   Servicer,   the   Securities   Administrator,   the   Servicer or the Interim
Servicers   and (iv) the Class A-2   Allocation   Percentage   of the   amount of any
Overcollateralization   Increase Amount for such   Distribution Date MINUS (v) the
Class A-2   Allocation   Percentage   of the   amount   of any   Overcollateralization
Reduction Amount for such Distribution Date.

       "Group II Principal Remittance Amount":   With respect to any Distribution
Date will be the sum of the amounts   described   in clauses (i) through   (iii) of
the definition of Group II Principal Distribution Amount.

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

       "Independent Contractor": Either (i) any Person (other than the Servicer)
that would be an   "independent   contractor"   with   respect to REMIC I within the
meaning   of   Section   856(d)(3)   of the   Code   if   REMIC   I   were a real   estate
investment   trust   (except   that the   ownership   tests set forth in that section
shall be considered to be met by any Person that owns,   directly or   indirectly,
35% or more of any Class of   Certificates),   so long as REMIC I does not receive
or derive any income from such Person and provided that the relationship between
such Person and REMIC I is at arm's   length,   all within the meaning of Treasury
Regulation   Section   1.856-


                                       26
<PAGE>


4(b)(5),   or (ii) any other Person   (including   the Servicer) if the Trustee has
received   an Opinion   of Counsel to the effect   that the taking of any action in
respect of any REO Property by such Person,   subject to any   conditions   therein
specified,   that is otherwise herein   contemplated to be taken by an Independent
Contractor   will not cause such REO Property to cease to qualify as "foreclosure
property"   within   the   meaning of Section   860G(a)(8)   of the Code   (determined
without regard to the exception   applicable   for purposes of Section   860D(a) of
the Code),   or cause any income realized in respect of such REO Property to fail
to qualify as Rents from Real Property.

       "Index":   As   of   any   Adjustment   Date,   the   index   applicable   to   the
determination   of the Mortgage Rate on each   Adjustable   Rate Mortgage Loan will
generally be the average of the interbank   offered   rates for   six-month   United
States   dollar   deposits in the London   market as   published   in THE WALL STREET
JOURNAL and as most recently   available   either (a) as of the first Business Day
45 days prior to such Adjustment Date or (b) as of the first Business Day of the
month preceding the month of such   Adjustment   Date, as specified in the related
Mortgage Note.

       "Institutional Accredited Investor": As defined in Section 6.01(c).

       "Insurance   Proceeds":   Proceeds of any title   policy,   hazard   policy or
other   insurance   policy,   covering a   Mortgage   Loan or the   related   Mortgaged
Property,   to the extent such proceeds are not to be applied to the   restoration
of the related   Mortgaged   Property or   released   to the   Mortgagor   or a senior
lienholder in accordance with Accepted Servicing Practices, subject to the terms
and conditions of the related Mortgage Note and Mortgage.

       "Interest Accrual Period":   With respect to any Distribution Date and the
Class A   Certificates,   the Mezzanine   Certificate and the Class B Certificates,
the   period   commencing   on   the   Distribution   Date   of the   month   immediately
preceding the month in which such   Distribution   Date occurs (or, in the case of
the first Distribution   Date,   commencing on the Closing Date) and ending on the
day preceding such Distribution   Date. With respect to any Distribution Date and
the   Class CE   Certificates   and the REMIC I Regular   Interests,   the   one-month
period ending on the last day of the calendar   month   immediately   preceding the
month in which such Distribution Date occurs.

       "Interest Carry Forward Amount":   With respect to any   Distribution   Date
and any Class A Certificate,   Mezzanine Certificate or Class B Certificate,   the
sum of (i) the amount, if any, by which (a) the Interest Distribution Amount for
such Class as of the immediately   preceding   Distribution   Date exceeded (b) the
actual   amount   distributed   on   such   Class   in   respect   of   interest   on such
immediately   preceding   Distribution   Date and (ii) the   amount of any   Interest
Carry   Forward   Amount   for   such   Class   remaining   unpaid   from   the   previous
Distribution   Date, plus accrued   interest on such sum calculated at the related
Pass-Through Rate for the most recently ended Interest Accrual Period.

       "Interest   Determination Date": With respect to the Class A Certificates,
the Mezzanine Certificates,   the Class B Certificates,   REMIC I Regular Interest
I-LTA1 A, REMIC I Regular Interest   I-LTA1B,   REMIC I Regular Interest   I-LTA2A,
REMIC I Regular   Interest   I-LTA2B,   REMIC I Regular Interest   I-LTA2C,   REMIC I
Regular   Interest   I-LTM1,   REMIC I   Regular   Interest   I-LTM2,   REMIC I Regular
Interest   I-LTM3,   REMIC I Regular   Interest   I-LTM4,   REMIC I Regular   Interest
I-LTM5,   REMIC I Regular Interest I-LTM6, REMIC I Regular Interest I-LTM7, REMIC
I Regular   Interest I-LTM8,   REMIC I Regular   Interest   I-


                                        27
<PAGE>


LTM9, REMIC I Regular Interest I-LTB1,   REMIC I Regular Interest I-LTB2, REMIC I
Regular   Interest I-LTB3,   and any Interest Accrual Period therefor,   the second
London Business Day preceding the commencement of such Interest Accrual Period.

       "Interest Distribution Amount": With respect to any Distribution Date and
any Class A Certificates,   any Mezzanine Certificates,   any Class B Certificates
and any Class CE Certificates, the aggregate Accrued Certificate Interest on the
Certificates of such Class for such Distribution Date.

       "Interim Servicer" Any of RMC, RMAE or Litton.

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

       "Last Scheduled   Distribution   Date":   The   Distribution   Date in [March]
2035, which is the Distribution Date immediately following the maturity date for
the Mortgage Loan with the latest maturity date.

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

       "Liquidation   Event":   With   respect   to any   Mortgage   Loan,   any of the
following events:   (i) such Mortgage Loan is paid in full; (ii) a Final Recovery
Determination   is made as to such   Mortgage   Loan or (iii) such Mortgage Loan is
removed from REMIC I by reason of its being purchased, sold or replaced pursuant
to or as   contemplated by Section 2.03,   Section 3.13(c) or Section 10.01.   With
respect   to any   REO   Property,   either   of the   following   events:   (i) a Final
Recovery Determination is made as to such REO Property or (ii) such REO Property
is removed   from REMIC I by reason of its being   purchased   pursuant   to Section
10.01.

       "Liquidation   Proceeds":   The   amount   (other   than   Insurance   Proceeds,
amounts   received   in   respect of the   rental of any REO   Property   prior to REO
Disposition, or required to be released to a Mortgagor or a senior lienholder in
accordance   with   applicable   law or the   terms   of the   related   Mortgage   Loan
Documents)   received   by   the   Servicer   or   the   related   Interim   Servicer   in
connection   with (i) the   taking   of all or a part of a   Mortgaged   Property   by
exercise of the power of eminent   domain or   condemnation   (other   than   amounts
required to be   released   to the   Mortgagor   or a senior   lienholder),   (ii) the
liquidation of a defaulted   Mortgage Loan through a trustee's sale,   foreclosure
sale or otherwise, (iii) the repurchase, substitution or sale of a Mortgage Loan
or an REO   Property   pursuant to or as   contemplated   by Section   2.03,   Section
3.13(c),   Section 3.21 or Section 10.01 of this Agreement or (iv) any Subsequent
Recoveries.

       "Litton": Litton Loan Servicing LP.


                                       28
<PAGE>


       "Litton Assignment Agreement": The Assignment, Assumption and Recognition
Agreement, dated as of February 28, 2005, by and among the Seller, the Depositor
and Litton   evidencing the assignment of the Litton   Servicing   Agreement to the
Depositor.

       "Litton Mortgage   Loans":   The Mortgage Loans being serviced by Litton as
of the Closing Date.

       "Litton Servicing   Agreement:   The Sub-Servicing   Agreement,   dated as of
December 1, 2004 by and between DB Structured Products Inc. and Litton.

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

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

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

       "Marker   Rate":   With   respect   to the   Class   CE   Certificates   and   any
Distribution   Date, a per annum rate equal to two (2) times the weighted average
of the REMIC I   Remittance   Rate for each of REMIC I Regular   Interest   I-LTA1A,
REMIC I Regular   Interest   I-LTA1B,   REMIC I Regular Interest   I-LTA2A,   REMIC I
Regular   Interest   I-LTA2B,   REMIC I Regular Interest   I-LTA2C,   REMIC I Regular
Interest   I-LTM1,   REMIC I Regular   Interest   I-LTM2,   REMIC I Regular   Interest
I-LTM3,   REMIC I Regular Interest I-LTM4, REMIC I Regular Interest I-LTM5, REMIC
I Regular   Interest I-LTM6,   REMIC I Regular   Interest   I-LTM7,   REMIC I Regular
Interest   I-LTM8,   REMIC I Regular   Interest   I-LTM9,   REMIC I Regular   Interest
I-LTB1,REMIC I Regular   Interest   I-LTB2,   REMIC I Regular   Interest   I-LTB3 and
REMIC I Regular   Interest   I-LTZZ,   with the rate on each   such   REMIC I Regular
Interest (other than REMIC I Regular   Interest I-LTZZ) subject to a cap equal to
the lesser of (i) the related   One-Month   LIBOR   Pass-Through   Rate and (ii) the
related Net WAC   Pass-Through   Rate for the   Corresponding   Certificate   for the
purpose   of this   calculation   for such   Distribution   Date and with the rate on
REMIC I Regular Interest I-LTZZ subject to a cap of zero for the purpose of this
calculation;   provided however,   each such cap for each REMIC I Regular Interest
shall be multiplied by a fraction the numerator of which is the actual number of
days in the related Interest Accrual Period and the denominator of which is 30.

       "Master   Servicer":   As of the Closing Date,   Wells Fargo Bank,   N.A. and
thereafter, its respective successors in interest who meet the qualifications of
this Agreement.   The Master Servicer and the Securities   Administrator   shall at
all times be the same Person.

       "Master   Servicer    Certification":    A   written   certification   covering
servicing of the Mortgage   Loans by the Servicer and signed by an officer of the
Master   Servicer   that   complies   with (i) the   Sarbanes-Oxley   Act of 2002,   as
amended from time to time, and (ii) the February 21, 2003 Statement by the Staff
of the Division of Corporation Finance of the Securities and Exchange Commission
Regarding   Compliance by Asset-Backed Issuers with Exchange Act


                                        29
<PAGE>


Rules 13a-14 and 15d-14, as in effect from time to time; provided that if, after
the   Closing   Date   (a)   the   Sarbanes-Oxley   Act of 2002   is   amended,   (b) the
Statement referred to in clause (ii) is modified or superseded by any subsequent
statement,   rule or regulation of the Securities and Exchange   Commission or any
statement   of a   division   thereof,   or   (c)   any   future   releases,   rules   and
regulations are published by the Securities and Exchange Commission from time to
time pursuant to the   Sarbanes-Oxley Act of 2002, which in any such case affects
the form or substance of the required   certification and results in the required
certification   being,   in   the   reasonable   judgment   of   the   Master   Servicer,
materially   more onerous than the form of the required   certification   as of the
Closing Date,   the Master   Servicer   Certification   shall be as agreed to by the
Master   Servicer,   the Depositor and the Seller   following a negotiation in good
faith to determine how to comply with any such new requirements.

       "Master   Servicer Event of Default":   One or more of the events described
in Section 8.01(b).

       "Master Servicer Fee Rate": 0.0075% per annum.

       "Master   Servicing   Fee":   With respect to each Mortgage Loan and for any
calendar   month,   an amount   equal to one   twelfth of the   product of the Master
Servicer Fee Rate multiplied by the Scheduled   Principal Balance of the Mortgage
Loans as of the Due Date in the preceding calendar month.

       "Maximum I-LTZZ Uncertificated Interest Deferral Amount": With respect to
any   Distribution   Date,   the   excess   of (i)   accrued   interest   at the REMIC I
Remittance   Rate   applicable   to   REMIC   I   Regular   Interest   I-LTZZ   for   such
Distribution   Date on a balance equal to the   Uncertificated   Balance of REMIC I
Regular Interest I-LTZZ minus the REMIC I Overcollateralization   Amount, in each
case for such Distribution   Date, over (ii)   Uncertificated   Interest on REMIC I
Regular   Interest   I-LTA1A,   REMIC I Regular Interest   I-LTA1B,   REMIC I Regular
Interest   I-LTA2A,   REMIC I Regular Interest   I-LTA2B,   REMIC I Regular Interest
I-LTA2C, REMIC I Regular Interest I-LTM1, REMIC I Regular Interest I-LTM2, REMIC
I Regular   Interest I-LTM3,   REMIC I Regular   Interest   I-LTM4,   REMIC I Regular
Interest   I-LTM5,   REMIC I Regular   Interest   I-LTM6,   REMIC I Regular   Interest
I-LTM7,   REMIC I Regular Interest I-LTM8, REMIC I Regular Interest I-LTM9, REMIC
I Regular Interest   I-LTB1,   REMIC I Regular Interest I-LTB2 and REMIC I Regular
Interest I-LTB3 for such   Distribution   Date, with the rate on each such REMIC I
Regular   Interest   subject   to a cap   equal   to the   lesser   of (i) the   related
One-Month LIBOR Pass-Through Rate and (ii) the related Net WAC Pass-Through Rate
for the   corresponding   Certificate for the purpose of this calculation for such
Distribution   Date;   provided   however,   each such cap for each   REMIC I Regular
Interest   shall be multiplied by a fraction the numerator of which is the actual
number of days in the related   Interest   Accrual   Period and the   denominator of
which is 30.

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

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


                                       30
<PAGE>


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

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

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

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

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

       "Monthly   Payment":   With respect to any   Mortgage   Loan,   the   scheduled
monthly payment of principal and interest on such Mortgage Loan which is payable
by the   related   Mortgagor   from time to time under the related   Mortgage   Note,
determined:   (a) after giving effect to (i) any Deficient   Valuation and/or Debt
Service   Reduction   with respect to such Mortgage Loan and (ii) any reduction in
the amount of interest   collectible from the related   Mortgagor   pursuant to the
Relief Act or similar   state laws;   (b) without   giving   effect to any extension
granted or agreed to by the Servicer   pursuant to Section 3.01 of this Agreement
or by the related Interim Servicer pursuant to the related Servicing   Agreement;
and (c) on the   assumption   that all   other   amounts,   if any,   due   under   such
Mortgage Loan are paid when due.

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

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

       "Mortgage File":   The Mortgage Loan Documents   pertaining to a particular
Mortgage Loan.

        "Mortgage   Loan":   Each   mortgage   loan   transferred   and assigned to the
Trustee and the Mortgage   Loan   Documents   for which have been   delivered to the
Custodian   pursuant   to   Section   2.01 of this   Agreement   and   pursuant   to the
Custodial Agreement,   as held from time to time as a part of the Trust Fund, the
Mortgage Loans so held being identified in the Mortgage Loan Schedule.

       "Mortgage Loan Documents":   The documents   evidencing or relating to each
Mortgage Loan delivered to the Custodian under the Custodial Agreement on behalf
of the Trustee.

       "Mortgage Loan Purchase Agreement": Shall mean the Mortgage Loan Purchase
Agreement dated as of Febraury 28, 2005, between the Depositor and the Seller.


                                        31
<PAGE>


       "Mortgage   Loan   Schedule":   As of any date,   the list of Mortgage   Loans
included in REMIC I on such date,   separately   identifying   the Group I Mortgage
Loans and the Group II   Mortgage   Loans,   attached   hereto   as   Schedule   1. The
Depositor   shall   deliver or cause the   delivery   of the initial   Mortgage   Loan
Schedule to the Servicer,   the Master Servicer, the Custodian and the Trustee on
the Closing   Date.   The Mortgage   Loan   Schedule   shall set forth the   following
information with respect to each Mortgage Loan:

         (i)       the Mortgage Loan identifying number;

         (ii)      the Mortgagor's first and last name;

         (iii)     the street   address of the   Mortgaged   Property   including the
                  state and zip code;

         (iv)      a   code    indicating    whether   the    Mortgaged    Property   is
                  owner-occupied;

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

         (vi)       the original months to maturity;

         (vii)     the   original   date of the   Mortgage   Loan   and the   remaining
                  months   to   maturity   from   the   Cut-off   Date,   based   on the
                  original amortization schedule;

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

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

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

         (xi)      the stated maturity date;

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

         (xiii)    the amount of the Monthly Payment as of the Cut-off Date;

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

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

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

         (xvii)    with respect to each   Adjustable Rate Mortgage Loan, the first
                  Adjustment Date;


                                       32
<PAGE>


         (xviii)   with respect to each   Adjustable Rate Mortgage Loan, the Gross
                  Margin;

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

         (xx)      with   respect   to each   Adjustable   Rate   Mortgage   Loan,   the
                  Maximum Mortgage Rate under the terms of the Mortgage Note;

         (xxi)     with   respect   to each   Adjustable   Rate   Mortgage   Loan,   the
                  Minimum Mortgage Rate under the terms of the Mortgage Note;

         (xxii)    the Mortgage Rate at origination;

         (xxiii)   with   respect   to each   Adjustable   Rate   Mortgage   Loan,   the
                  Periodic Rate Cap;

         (xxiv)    with respect to each   Adjustable Rate Mortgage Loan, the first
                  Adjustment Date immediately following the Cut-off Date;

         (xxv)     with respect to each Adjustable Rate Mortgage Loan, the Index;

         (xxvi)    the date on which the   first   Monthly   Payment   was due on the
                  Mortgage Loan and, if such date is not consistent with the Due
                  Date currently in effect, such Due Date;

         (xxvii)   a code   indicating   whether the Mortgage Loan is an Adjustable
                   Rate Mortgage Loan or a fixed rate Mortgage Loan;

         (xxviii) a code indicating the documentation   style (i.e., full, stated
                  or limited);

         (xxix)    a code indicating if the Mortgage Loan is subject to a primary
                   insurance policy or lender paid mortgage   insurance policy and
                  the name of the insurer;

         (xxx)     the Appraised Value of the Mortgaged Property;

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

         (xxxii)   a code   indicating   whether the Mortgage   Loan is subject to a
                  Prepayment   Charge, the term of such Prepayment Charge and the
                  amount of such Prepayment Charge;

         (xxxiii) the product type (e.g.,   2/28,   15 year fixed,   30 year fixed,
                  15/30 balloon, etc.);

         (xxxiv)   the Mortgagor's debt to income ratio;

         (xxxv)    the FICO score at origination; and


                                       33
<PAGE>


         (xxxvi)   the Interim Servicer, if applicable.

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

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

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

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

       "Mortgagor": The obligor on a Mortgage Note.

       "Net Monthly Excess Cashflow": With respect to any Distribution Date, the
sum of (i) any Overcollateralization Reduction Amount for such Distribution Date
and   (ii)   the   excess   of   (x)   the   Available   Distribution   Amount   for   such
Distribution   Date   over   (y)   the   sum for   such   Distribution   Date of (A) the
aggregate   Senior   Interest   Distribution   Amounts payable to the Holders of the
Class A Certificates, (B) the aggregate Interest Distribution Amounts payable to
the holders of the Mezzanine   Certificates   and the Class B Certificates and (C)
the Principal Remittance Amount.


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<PAGE>


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

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

       With respect to the Class A-2 Certificates   and any Distribution   Date, a
rate per annum equal to the product of (x) the   weighted   average of the Expense
Adjusted   Mortgage   Rates   on the then   outstanding   Group   II   Mortgage   Loans,
weighted   based on their   Stated   Principal   Balances as of the first day of the
calendar month preceding the month in which the Distribution Date occurs and (y)
a fraction,   the   numerator of which is 30 and the   denominator   of which is the
actual   number of days   elapsed in the   related   Interest   Accrual   Period.   For
federal   income tax   purposes,   the   economic   equivalent   of such rate shall be
expressed as the weighted   average of   (adjusted   for the actual   number of days
elapsed in the related   Interest   Accrual Period) the REMIC I Remittance Rate on
REMIC I Regular Interest   I-LT2GRP,   weighted on the basis of the Uncertificated
Balance of such REMIC I Regular Interest.

       With respect to the Mezzanine   Certificates and any Distribution   Date, a
rate per annum equal to the product of (x) the   weighted   average of the Expense
Adjusted   Mortgage Rates on the then   outstanding   Mortgage   Loans,   weighted in
proporation to the results of subtracting   from the aggregate   Stated   Principal
Balance of each of the Group I Mortgage   Loans and the Group II Mortgage   Loans,
as of the   first   day of the   calendar   month   preceding   the month in which the
Distribution Date occurs, the Certificate Principal Balance of the related Class
A   Certificates   and   (y) a   fraction,   the   numerator   of   which   is 30 and the
denominator   of   which is the   actual   number   of days   elapsed   in the   related
Interest   Accrual   Period.   For   federal   income   tax   purposes,    the   economic
equivalent of such rate shall be expressed as the weighted   average of (adjusted
for the actual number of days elapsed in the related   Interest   Accrual   Period)
the REMIC I Remittance Rates on (a) REMIC I Regular Interest   I-LT1SUB,   subject
to a cap and a floor   equal to the   REMIC I   Remittance   Rate on REMIC I Regular
Interest I-LT1GRP,   and (b) REMIC I Regular Interest I-LT2SUB,   subject to a cap
and a floor   equal to the REMIC I   Remittance   Rate on REMIC I Regular   Interest
I-LT2GRP, weighted on the basis of the Uncertificated Balance of each such REMIC
I Regular Interest.

       With respect to the Class B   Certificates   and any   Distribution   Date, a
rate per annum equal to the product of (x) the   weighted   average of the Expense
Adjusted   Mortgage Rates on the then   outstanding   Mortgage   Loans,   weighted in
proporation to the results of subtracting   from the aggregate   Stated   Principal
Balance of the Group I Mortgage Loans and the Group II Mortgage Loans, as of the
first day of the calendar   month   preceding the month in which the   Distribution
Date   occurs,   the   Certificate    Principal   Balance   of   the   related   Class   A
Certificates   and


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<PAGE>


(y) a fraction, the numerator of which is 30 and the denominator of which is the
actual   number of days   elapsed in the   related   Interest   Accrual   Period.   For
federal   income tax   purposes,   the   economic   equivalent   of such rate shall be
expressed as the weighted   average of   (adjusted   for the actual   number of days
elapsed in the related   Interest Accrual Period) the REMIC I Remittance Rates on
(a) REMIC I Regular Interest I-LT1SUB, subject to a cap and a floor equal to the
REMIC I Remittance Rate on REMIC I Regular   Interest   I-LT1GRP,   and (b) REMIC I
Regular   Interest   I-LT2SUB,   subject to a cap and a floor   equal to the REMIC I
Remittance Rate on REMIC I Regular Interest   I-LT2GRP,   weighted on the basis of
the Uncertificated Balance of each such REMIC I Regular Interest.

       "Net WAC Rate Carryover Amount": With respect to any Class A Certificate,
Mezzanine   Certificate or Class B Certificate and any Distribution Date on which
the Pass-Through Rate is limited to the applicable Net WAC Pass-Through Rate, an
amount   equal to the sum of (i) the   excess of (x) the amount of   interest   such
Class   would have been   entitled   to receive   on such   Distribution   Date if the
applicable   Net WAC   Pass-Through   Rate would not have been   applicable   to such
Class on such   Distribution   Date over (y) the amount of   interest   paid to such
Class on such Distribution Date at the applicable Net WAC Pass-Through Rate plus
(ii) the related Net WAC Rate   Carryover   Amount for the   previous   Distribution
Date not previously   distributed to such Class together with interest thereon at
a rate equal to the Pass-Through Rate for such Class for the most recently ended
Interest   Accrual   Period   without   taking into account the   applicable   Net WAC
Pass-Through Rate.

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

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

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

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

       "Notional   Amount":   With   respect to the Class CE   Certificates   and any
Distribution Date, the   Uncertificated   Balance of the REMIC I Regular Interests
(other than REMIC I Regular   Interest I-LTP) for such   Distribution   Date. As of
the Closing Date, the Notional   Amount of the Class CE   Certificates is equal to
$627,354,083.96.

       "Offered   Certificates":   The   Class A   Certificates   and   the   Mezzanine
Certificates, collectively.


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<PAGE>


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

       "One-Month   LIBOR"   :   With   respect   to the   Class A   Certificates,   the
Mezzanine   Certificates,   the Class B   Certificates,   REMIC I   Regular   Interest
I-LTA1A,   REMIC I Regular Interest   I-LTA1B,   REMIC I Regular Interest   I-LTA2A,
REMIC I Regular   Interest   I-LTA2B,   REMIC I Regular Interest   I-LTA2C,   REMIC I
Regular   Interest   I-LTM1,   REMIC I   Regular   Interest   I-LTM2,   REMIC I Regular
Interest   I-LTM3,   REMIC I Regular   Interest   I-LTM4,   REMIC I Regular   Interest
I-LTM5,   REMIC I Regular Interest I-LTM6, REMIC I Regular Interest I-LTM7, REMIC
I Regular   Interest I-LTM8,   REMIC I Regular   Interest   I-LTM9,   REMIC I Regular
Interest   I-LTB1,   REMIC I Regular   Interest I-LTB2 and REMIC I Regular Interest
I-LTB3 and any Interest   Accrual   Period   therefor,   the rate   determined by the
Securities Administrator on the related Interest Determination Date on the basis
of the offered rate for one-month U.S. dollar deposits,   as such rate appears on
Telerate Page 3750 as of 11:00 a.m. (London time) on such Interest Determination
Date; provided that if such rate does not appear on Telerate Page 3750, the rate
for such   date   will be   determined   on the   basis of the   offered   rates of the
Reference Banks for one-month U.S.   dollar   deposits,   as of 11:00 a.m.   (London
time)   on such   Interest   Determination   Date.   In such   event,   the   Securities
Administrator   will request the principal London office of each of the Reference
Banks to provide a   quotation   of its rate.   If on such   Interest   Determination
Date, two or more   Reference   Banks provide such offered   quotations,   One-Month
LIBOR for the related   Interest   Accrual Period shall be the arithmetic   mean of
such offered   quotations   (rounded   upwards if   necessary   to the nearest   whole
multiple   of 1/16).   If on such   Interest   Determination   Date,   fewer   than two
Reference Banks provide such offered quotations, One-Month LIBOR for the related
Interest   Accrual   Period shall be the higher of (i) LIBOR as   determined on the
previous   Interest   Determination   Date   and   (ii) the   Reserve   Interest   Rate.
Notwithstanding the foregoing,   if, under the priorities   described above, LIBOR
for an   Interest   Determination   Date   would be based on LIBOR for the   previous
Interest   Determination   Date for the third consecutive   Interest   Determination
Date, the Securities   Administrator shall select an alternative comparable index
(over which the Securities   Administrator has no control),   used for determining
one-month   Eurodollar   lending   rates   that   is   calculated   and   published   (or
otherwise   made   available)   by   an   independent   party.   The   establishment   of
One-Month    LIBOR    by   the    Securities    Administrator    and   the    Securities
Administrator's subsequent calculation of the One-Month LIBOR Pass-Through Rates
for the relevant   Interest   Accrual   Period,   shall,   in the absence of manifest
error, be final and binding.

       "One-Month   LIBOR   Pass-Through   Rate":   With   respect   to the Class A-1A
Certificates   and,   for purposes of the   definition   of "Marker   Rate",   REMIC I
Regular   Interest   I-LTA1A,   a per annum rate equal to One-Month   LIBOR plus the
related Certificate Margin.

       With   respect to the Class A-1B   Certificates   and,   for   purposes of the
definition of "Marker Rate",   REMIC I Regular Interest I-LTA1B, a per annum rate
equal to One-Month LIBOR plus the related Certificate Margin.

       With   respect to the Class A-2A   Certificates   and,   for   purposes of the
definition of "Marker Rate",   REMIC I Regular Interest I-LTA2A, a per annum rate
equal to One-Month LIBOR plus the related Certificate Margin.


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<PAGE>


       With   respect to the Class A-2B   Certificates   and,   for   purposes of the
definition of "Marker Rate",   REMIC I Regular Interest I-LTA2B, a per annum rate
equal to One-Month LIBOR plus the related Certificate Margin.

       With   respect to the Class A-2C   Certificates   and,   for   purposes of the
definition of "Marker Rate",   REMIC I Regular Interest I-LTA2C, a per annum rate
equal to One-Month LIBOR plus the related Certificate Margin.

       With   respect to the Class M-1   Certificates   and,   for   purposes   of the
definition of "Marker Rate",   REMIC I Regular   Interest I-LTM1, a per annum rate
equal to One-Month LIBOR plus the related Certificate Margin.

       With   respect to the Class M-2   Certificates   and,   for   purposes   of the
definition of "Marker Rate",   REMIC I Regular   Interest I-LTM2, a per annum rate
equal to One-Month LIBOR plus the related Certificate Margin.

       With   respect to the Class M-3   Certificates   and,   for   purposes   of the
definition of "Marker Rate",   REMIC I Regular   Interest I-LTM3, a per annum rate
equal to One-Month LIBOR plus the related Certificate Margin.

       With   respect to the Class M-4   Certificates   and,   for   purposes   of the
definition of "Marker Rate",   REMIC I Regular   Interest I-LTM4, a per annum rate
equal to One-Month LIBOR plus the related Certificate Margin.

       With   respect to the Class M-5   Certificates   and,   for   purposes   of the
definition of "Marker Rate",   REMIC I Regular   Interest I-LTM5, a per annum rate
equal to One-Month LIBOR plus the related Certificate Margin.

       With   respect to the Class M-6   Certificates   and,   for   purposes   of the
definition of "Marker Rate",   REMIC I Regular   Interest I-LTM6, a per annum rate
equal to One-Month LIBOR plus the related Certificate Margin.

        With   respect to the Class M-7   Certificates   and,   for   purposes   of the
definition of "Marker Rate",   REMIC I Regular   Interest I-LTM7, a per annum rate
equal to One-Month LIBOR plus the related Certificate Margin.

       With   respect to the Class M-8   Certificates   and,   for   purposes   of the
definition of "Marker Rate",   REMIC I Regular   Interest I-LTM8, a per annum rate
equal to One-Month LIBOR plus the related Certificate Margin.

       With   respect to the Class M-9   Certificates   and,   for   purposes   of the
definition of "Marker Rate",   REMIC I Regular   Interest I-LTM9, a per annum rate
equal to One-Month LIBOR plus the related Certificate Margin.

       With   respect to the Class B-1   Certificates   and,   for   purposes   of the
definition of "Marker Rate",   REMIC I Regular   Interest I-LTB1, a per annum rate
equal to One-Month LIBOR plus the related Certificate Margin.


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<PAGE>


       With   respect to the Class B-2   Certificates   and,   for   purposes   of the
definition of "Marker Rate",   REMIC I Regular   Interest I-LTB2, a per annum rate
equal to One-Month LIBOR plus the related Certificate Margin.

       With   respect to the Class B-3   Certificates   and,   for   purposes   of the
definition of "Marker Rate",   REMIC I Regular   Interest I-LTB3, a per annum rate
equal to One-Month LIBOR plus the related Certificate Margin.

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

       "Optional Termination Date": The Distribution Date on which the aggregate
principal   balance of the   Mortgage   Loans (and   properties   acquired in respect
thereof)   remaining in the Trust Fund is reduced to less than or equal to 10% of
the aggregate principal balance of the Mortgage Loans as of the Cut-off Date.

       "Originators": RMC and RMAE (each, an "Originator").

       "Overcollateralization   Amount":   With respect to any Distribution   Date,
the   excess,   if any,   of (a) the   aggregate   Stated   Principal   Balances of the
Mortgage Loans and REO Properties   immediately   following such Distribution Date
over (b) the sum of the aggregate   Certificate Principal Balances of the Class A
Certificates, the Mezzanine Certificates, the Class B Certificates and the Class
P   Certificates   as of such   Distribution   Date (after   taking into   account the
payment of the Principal Remittance Amount on such Distribution Date).

       "Overcollateralization   Increase   Amount":   With   respect   to the Class A
Certificates,   the Mezzanine   Certificates   and the Class B Certificates and any
Distribution   Date is any amount of Net Monthly Excess Cashflow actually applied
as   an    accelerated    payment   of    principal    to   the   extent   the    Required
Overcollateralization Amount exceeds the Overcollateralization Amount.

       "Overcollateralization    Reduction    Amount":    With    respect    to    any
Distribution    Date,    is   the    lesser    of   (i)   the    amount    by   which   the
Overcollateralization   Amount exceeds the Required   Overcollateralization Amount
and   (ii)   the   Principal   Remittance   Amount;   provided   however   that   on   any
Distribution    Date    on    which    a    Trigger    Event    is    in