1. Client GuideVersion 1-06-G03Effective September 11, 2006

2. 2006 Residential Funding Corporation. All rights reserved. 3. GMAC-RFC Page 109/11//06Client GuideTable of ContentsTable of ContentsChapter 1, Introduction100 GMAC-RFC Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1101 Client Contractual Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1102 Single Contract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1103 Relationship of GMAC-RFC and Client . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2104 Client ID Number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2105 GMAC-RFC Loan Number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2106 Servicer Contractual Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2107 Notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3108 Hours of Operation and Holidays . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3109 Client Guide Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3110 Headings, Use of Capitalization and Definitions . . . . . . . . . . . . . . . . . . . . . 1.5111 Form & Exhibit Numbering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5112 Client Guide Online . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5113 General Rules of Interpretation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5114 Use of Clients Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.6115 Use of GMAC-RFC Name and Service Marks . . . . . . . . . . . . . . . . . . . . . . . . . 1.7116 Assetinfo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.7Chapter 2, Client Eligibility200 Client Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1201 Eligibility Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2202 Client Contract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4203 Client Underwriting Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4204 Continuing Client Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4205 Disqualification, Suspension or Inactivation . . . . . . . . . . . . . . . . . . . . . . . . 2.4206 Reporting Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.6207 Audits and Inspections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.8208 Disclosure of Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.8209 Maintenance of Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.9210 Quality Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.9 4. GMAC-RFC Page 209/11/06Client GuideTable of ContentsChapter 2A, Representations, Warranties andCovenantsA200 Client Representations Warranties and Covenants . . . . . . . . . . . . . . . . . .2A.1A201 Specific Representations, Warranties and Covenants ConcerningClient . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2A.2A202 Specific Representations, Warranties and Covenants ConcerningIndividual Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2A.5A203 Additional Client Representations, Warranties and Covenants forthe Home Equity Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2A.15A204 Non-Standard Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2A.17A205 Proof of Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2A.18A206 Integrity of Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2A.19A207 Third-Party Originators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2A.19A208 Events of Default . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2A.20A209 Remedies of GMAC-RFC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2A.20A210 Repurchase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2A.21A211 Disqualification Suspension or Inactivation . . . . . . . . . . . . . . . . . . . . . .2A.26A212 Indemnification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2A.27A213 Right of Set-Off . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2A.28A214 Merger or Consolidation of Client . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2A.28A215 Notification of Changes in Client Status . . . . . . . . . . . . . . . . . . . . . . . . .2A.28A216 Premium Recapture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2A.29Chapter 3, Loan Eligibility300 Descriptions of Underlying Chapters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1301 Loan Seasoning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1302 Required Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2Chapter 3A, Occupancy, Borrower & OwnershipStatusA300 Occupancy Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3A.1A301 Borrower Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3A.2A302 Multiple Loans to One Borrower . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3A.4A303 Ownership Interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3A.5 5. GMAC-RFCPage 309/11/06Client GuideTable of ContentsChapter 3B, TransactionsB300 Arms Length and Non-Arms Length Transactions . . . . . . . . . . . . . . . . . .3B.1B301 Transaction Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3B.1Chapter 3C, FinancingC300 Determining Amount to Be Financed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3C.1C301 Calculating Loan-to-Value Ratios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3C.1C302 Secondary or Subordinate Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3C.4C303 Sales Concessions or Home-seller Subsidy . . . . . . . . . . . . . . . . . . . . . . . . 3C.5C304 Escrow Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3C.5C305 Temporary Buydowns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3C.7C306 West Virginia Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3C.8C307 Texas Equity Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3C.9C308 Current Payment History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3C.12Chapter 3D, Property Types & ConsiderationsD300 Property Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3D.1D301 Eligible Property Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3D.1D302 Ineligible Property Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3D.5D303 Project Requirements for Warrantable Condominiums and PUDs . . . . . . .3D.6Chapter 3E, Loan Documents & NotesE300 Note Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3E.1E301 Loan Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3E.3 6. GMAC-RFC Page 409/11/06Client GuideTable of ContentsChapter 3F, Insurance & Survey RequirementsF300 Insurance Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3F.1F301 Hazard Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3F.1F302 Mortgage Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3F.3F303 Earthquake Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3F.7F304 Flood Certification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3F.7F305 Flood Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3F.7F306 Condominium Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3F.8F307 PUD Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3F.11F308 Title Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3F.12F309 Title Search/Insurance for Second Mortgage Programs . . . . . . . . . . . . . 3F.16F310 Survey Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3F.16Chapter 3G, Prepayment PenaltiesG300 Prepayment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3G.1G301 Prepayment Penalty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3G.1G302 Program Prepayment Pricing Requirements . . . . . . . . . . . . . . . . . . . . . . .3G.3G303 Note Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3G.4G304 Compliance with Applicable Laws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3G.4Chapter 4, Underwriting400 Description of Underlying Chapters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.1401 Client Underwriting Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.1402 GMAC-RFC Underwriting Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.2403 Loan Application Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.2404 Electronic Documentation Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.2Chapter 4A, CreditA400 Credit Report Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4A.1A401 Credit Score Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4A.1A402 Selecting Credit Score . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4A.2A403 Minimum Credit History & Trade Line Requirements . . . . . . . . . . . . . . . .4A.2A404 Credit Evaluation Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4A.3A405 Credit Evaluation Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4A.4A406 Upgrading the Credit Grade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4A.11 7. GMAC-RFCPage 509/11/06Client GuideTable of ContentsChapter 4B, Liabilities & Debt RatiosB400 Qualifying RatiosPayment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4B.1B401 Borrowers Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4B.3B402 Debt Payoff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4B.4B403 Co-Signed Debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4B.4B404 Divorce Debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4B.4B405 Business Debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4B.4B406 Borrower Capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4B.4B407 Student Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4B.4Chapter 4C, Cash to CloseC400 Cash to Close . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4C.1Chapter 4D, Income TypesD400 Borrower Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4D.1D401 Employment and Income Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4D.1D402 Income Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4D.2D403 Wage Earners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4D.2D404 Self-Employed Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4D.3D405 Fixed Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4D.4D406 Rental Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4D.6D407 Other Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4D.7D408 Trailing or Relocating Co-Borrower . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4D.8Chapter 4E, Income DocumentationE400 Income Documentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4E.1E401 Full Income Documentation Requirements . . . . . . . . . . . . . . . . . . . . . . . . 4E.2E402 Lite Income Documentation Requirements . . . . . . . . . . . . . . . . . . . . . . . . 4E.5E403 One Paystub Income Documentation Requirements . . . . . . . . . . . . . . . . . 4E.6E404 Fast Income Documentation Requirements . . . . . . . . . . . . . . . . . . . . . . . 4E.6E405 Stated Income Documentation Requirements . . . . . . . . . . . . . . . . . . . . . 4E.10E406 No Ratio Documentation Requirements . . . . . . . . . . . . . . . . . . . . . . . . . 4E.10E407 Stated Income/Stated Asset Documentation Requirements . . . . . . . . . . 4E.12E408 No Income/No Asset Documentation Requirements . . . . . . . . . . . . . . . . 4E.13E409 No Doc Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4E.13 8. GMAC-RFC Page 609/11/06Client GuideTable of ContentsChapter 4F, Appraisal Requirements & PropertyUnderwritingF400 Collateral Property Underwriting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4F.1F401 Appraiser Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4F.2F402 Appraisal Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4F.2F403 Appraisal Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4F.6F404 Additional Review Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4F.15Chapter 4G, Electronic ServicesG400 Overview and Incorporation of Terms of Use . . . . . . . . . . . . . . . . . . . . . .4G.1G401 Assetwise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4G.2G402 Assetwise Compliance Engine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4G.5Chapter 5, Products500 Product Descriptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.1501 Fixed-Rate Mortgages (FRM) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.2502 Adjustable Rate Mortgages (ARM) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.8503 Balloon Mortgages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.71504 1st Lien Line of Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.73Chapter 6, Loan Programs600 Loan Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.1Chapter 6A, Jumbo A Loan ProgramA600 Jumbo A Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6A.1A601 Eligibility Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6A.1A602 Stated Income Documentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6A.10A603 EasyFi or Streamline Refinance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6A.10 9. GMAC-RFCPage 709/11/06Client GuideTable of ContentsChapter 6B, Expanded Criteria Loan ProgramB600 Expanded Criteria Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6B.1B601 Eligibility Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6B.1B602 Stated and No Ratio Income Documentation . . . . . . . . . . . . . . . . . . . . .6B.10B603 Stated Income/Stated Asset, No Income/No Asset, and No DocDocumentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6B.10B604 Uninsured LTV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6B.12Chapter 6C, Payment Option Loan ProgramC600 Payment Option Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6C.1C601 Eligibility Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6C.1C602 Stated Income Documentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6C.11C603 Stated Income/Stated Asset Documentation . . . . . . . . . . . . . . . . . . . . . 6C.12Chapter 6D, Home Solution Loan ProgramD600 Home Solution Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6D.1D601 Eligibility Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6D.1Chapter 6E, AlterNet Loan ProgramE600 AlterNet Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6E.1E601 Eligibility Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6E.1E602 Interest Only Feature Eligibility Standards . . . . . . . . . . . . . . . . . . . . . . . 6E.12E603 80/20 Eligibility Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6E.15Chapter 6F, Performance Loan ProgramF600 Performance Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6F.1F601 Eligibility Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6F.1 10. GMAC-RFC Page 809/11/06Client GuideTable of ContentsChapter 6G, 1st Lien Line of Credit Loan ProgramG600 1st Lien Line of Credit Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6G.1G601 Eligibility Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6G.1G602 Supplemental 1st Lien Line of Credit Information . . . . . . . . . . . . . . . . . .6G.9Chapter 6H, Home Equity Loan ProgramH600 Home Equity Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6H.1H601 Eligibility Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6H.1H602 Supplemental Home Equity Information . . . . . . . . . . . . . . . . . . . . . . . . .6H.13H603 Home Equity Program Goal Line Product Description . . . . . . . . . . . . . . .6H.14H604 Home Equity Program Goal Loan Description . . . . . . . . . . . . . . . . . . . . .6H.18Chapter 6J, Non-Standard Loan ProgramJ600 Non-Standard Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6J.1J601 Ineligible Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6J.1Chapter 6I, 125 CLTV Loan ProgramI600 125 CLTV Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6I.1I601 Eligibility Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6I.1I602 Supplemental 125 CLTV Program Information . . . . . . . . . . . . . . . . . . . . 6I.13Chapter 7, At-A-Glances700 Program At-A-Glances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.1 11. GMAC-RFCPage 909/11/06Client GuideTable of ContentsChapter 8, Servicing Released800 Servicing Released . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.1801 Program Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.1802 Designated Servicer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.2803 Contractual Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.2804 Program Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.2805 Disqualification Suspension or Inactivation . . . . . . . . . . . . . . . . . . . . . . . . 8.2806 Restrictions on Loan Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.3807 Record Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.3808 Final Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.3809 Disclosure of Information; Cooperation . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.3810 Client Representations and Warranties; Events of Servicer DefaultPrior to Transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.4811 Specific Warranties and Covenants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.4812 Notification of Change in Servicer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.8813 Escrow Account for Postponed Improvements/Repairs . . . . . . . . . . . . . . . 8.9814 Interest on Escrows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.9815 Termination of Automatic Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.9816 Purchase of Servicing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.9817 Servicing Released Submission of Purchase . . . . . . . . . . . . . . . . . . . . . . . . 8.9818 Required Servicing Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.10819 Sale Date and Effective Date of Transfer . . . . . . . . . . . . . . . . . . . . . . . . . . 8.11820 Reconciliation by GMAC-RFC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.12821 Notification of Purchase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.14822 Monies Paid for Servicing Released . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.14823 Monies Due Client . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.15824 Monies Due Designated Servicer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.16825 Loans Paid in Full . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.17826 Servicing Document Corrections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.17827 Bulk Servicing Acquisitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.18828 Subservicing Election . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.18Chapter 9, Commitment, Prior Approval, Delivery &Funding900 Descriptions of Underlying Chapters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.1901 Written Communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.1902 Assetinfo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.1 12. GMAC-RFC Page 1009/11/06Client GuideTable of ContentsChapter 9A, CommitmentsA900 Commitment Defined . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9A.1A901 Requesting a Commitment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9A.2A902 Commitment Confirmation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9A.3A903 Commitment Periods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9A.3A904 Failure to Deliver or Over-Deliver . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9A.4A905 Extension and Buyout Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9A.5Chapter 9B, Prior Underwriting ApprovalB900 Prior Underwriting SubmissionDelivery Requirements . . . . . . . . . . . . .9B.1B901 Required Documents for Prior Underwriting . . . . . . . . . . . . . . . . . . . . . . .9B.1B902 Notification of Prior Underwriting Loan File Status . . . . . . . . . . . . . . . . . .9B.3B903 Returning Loan Files . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9B.3B904 Equal Credit Opportunity Act (ECOA) and Home Mortgage DisclosureAct (HMDA) Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9B.3B905 Additional Delivery Documentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9B.3Chapter 9C, DeliveryC900 Delivery Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9C.1C901 Submission of Funding Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9C.1C902 Funding Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9C.2C903 Review and Acceptance of Funding Documents . . . . . . . . . . . . . . . . . . . . 9C.8C904 MERS Loan Registration, Transfer and Delivery Requirements . . . . . . . . . 9C.9C905 Alternative Delivery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9C.10Chapter 9D, Funding Requirements and WireInstructionsD900 Wire Transfer Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9D.1D901 Funding Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9D.1D902 Notification of Wire Transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9D.4D903 Payoff Prior to Funding Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9D.5D904 Loans Paid in Full . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9D.5D905 Failure to Comply with GMAC-RFC Remittance Requirements . . . . . . . . .9D.6 13. GMAC-RFCPage 1109/11/06Client GuideTable of ContentsChapter 9E, Final DocumentsE900 Submission of Final Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9E.1E901 Review and Acceptance of Final Documents . . . . . . . . . . . . . . . . . . . . . . . 9E.2E902 Further Assurance Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9E.2Chapter 10, DefinitionsChapter 11, Forms & Exhibits1100 GMAC-RFC Forms & Exhibits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.1 14. GMAC-RFC Page 1209/11/06Client GuideTable of ContentsThis page intentionally left blank. 15. GMAC-RFC1-06-G03 Effective: September 11, 2006Client Guideline MemoEnclosed is the Client Guideline. The purpose of the Client Guideline is to identify enhancements,clarifications and changes to the Client Guide and to give notice that the Client Guide has beenamended with either an update or a bulletin.All clarifications and changes included below are effective for Loans with Commitments taken andLines with Note dates on or after September 11, 2006, unless otherwise noted.The actual enhancements, clarifications and changes can be found in the pages of the Client Guideindicated below.Chapter 2A, Representations, Warranties and CovenantsSeptember 11, 2006Page 1 of 2 Clarified language for Discontinued Loan Policy (Section A201, Page 2A.7)Chapter 3A, Occupancy Borrower and Ownership Status Properties with rental agreements must comply with requirements for short term rentalincome as stated in Chapter 4D (Section A300, Page 3A.1)Chapter 3B, Property Types and Considerations Purchase mortgage Loans where the purchase agreement has been assigned are not eligible(Section B301, Page 3B.2)Chapter 3D, Property Types and Considerations Amended requirement for Party Wall agreements (Section D301, Page 3D.1) Clarified non-warrantable condominium guidelines (Section D301, Page 3D.3)Chapter 4A, Credit Clarified guidelines for consumer credit counseling for Grades 1-4 of 125% CLTV LoanProgram (Section A405, Page 4A.6)Chapter 4D, Income Types Clarified that Borrowers who rely on investments as a primary source of income will betreated as self-employed (Section D404, Page 4D.3) Added documentation requirements for short term rental income (Section D406, Page 4D.6,Page 4D.6, Page 4D.7) 16. GMAC-RFCChapter 4E, Income Documentation Added documentation requirements for short term rental income (Section E401, Page 4E.3) Stated Income and Stated Income/Stated Asset income documentation require that incomestated must be demonstrated as reasonable for the employment position stated (SectionE405, Page 4E.10; Section E407, Page 4E.12)Chapter 6E, AlterNet Loan Program Program changes are reflected on the AlterNet At-A-Glance, see Chapter 7 belowChapter 7, At-A-Glances AlterNet At-A-Glance Increased maximum Loan amounts for all LTVs and 80/20 Combo Loans for owneroccupied properties with Full, Fast and Lite Income Documentation Removed 100% financing and 80/20 Combo for Ax credit grade for owner occupied withStated income documentationModifications to the printed pages of the Client Guide are indicated with black bars on the left sideand dark red text and dark red text on the online pages where there is a clarification or change.The entire guide is being reprinted with this Client Guide update. Remove and replace old pages ofGMAC-RFC Client Guide with the new printed pages. You will need to print new tab dividers as well.See Section 109, Page 1.3 of Chapter 1, Introduction for updated list of Chapters.If you have any questions about the information contained in this Guideline, please contact yourGMAC-RFC Sales Director. You may also refer to the Online Client Guide for this information and touse the links to all of the changes.September 11, 2006Page 2 of 2 17. GMAC-RFC Page 1.1Client GuideIntroduction1Introduction100GMAC-RFC ObjectiveWelcome to GMAC-RFCs Client Guidethe reference book governing our businessrelationship. This Client Guide sets forth the terms and conditions for selling Loans to GMAC-RFC.It also describes our products and Loan Programs, and contains standard forms thatwill be useful in our dealings together.Please feel free to contact your GMAC-RFC sales director with any questions you may haveabout the contents of this Client Guide.Thank you for your business. We look forward to working with you.101Client Contractual ObligationsBy signing the Client Contract, the Client is bound by all provisions of this Client Guide,including but not limited to the Representations and Warranties of Client and Remedies ofGMAC-RFC Sections of this Client Guide. This Client Guide, the Client Contract, and theapplicable Negotiated Commitment Letter govern the purchase of Loans underCommitments.102Single ContractThis Client Guide sets forth the terms and conditions upon which a Client will sell mortgageLoans and servicing to GMAC-RFC. A similar Servicer Guide covers Servicers who contractwith GMAC-RFC. GMAC-RFC maintains a single contractual relationship with each entity withwhich it does business as a Client, a Servicer or both. GMAC-RFC has prepared two Guidesfor ease of reference only. Where GMAC-RFC contracts with an entity to be both a Client anda Servicer, it carefully evaluates all aspects of the proposed relationship before approving anentity as a Client. Failure of a Client to perform obligations under either this Client Guide orthe Servicer Guide constitutes a default under the Client relationship and permits GMAC-RFCto disqualify such Client as either a Client or a Servicer and permits GMAC-RFC toterminate its entire relationship with that entity.03/13/06 18. GMAC-RFC 1 Page 1.203/13/06Client GuideIntroduction103Relationship of GMAC-RFC and ClientThis Client Guide provides for terms related to the sale of Loans by Client and the purchaseof Loans by GMAC-RFC. The relationship between Client and GMAC-RFC is limited to that of aseller on the part of Client and that of a buyer on the part of GMAC-RFC. Nothing in thisClient Guide or any related marketing or other materials creates or may be construed aspermitting or obligating GMAC-RFC to act as a financial or business advisor or consultant toClient, as permitting or obliging GMAC-RFC to control Client or to conduct Clients operations,as creating any fiduciary obligation on the part of GMAC-RFC to Client, or as creating anyjoint venture, agency, partnership or other relationship between GMAC-RFC and Client otherthan as explicitly and specifically set out in a formal writing, signed by both parties, intendedto create such a relationship. Client acknowledges that it has had the opportunity to obtainthe advice of experienced counsel of its own choosing in connection with the negotiation andexecution of the Client Contract and this Client Guide. Client further acknowledges that it isexperienced with respect to the transactions contemplated by this Client Guide and has madeits own independent decisions with respect to the Client Contract, the Client Guide and anyrelated transactions.104Client ID NumberEach Client approved to participate in GMAC-RFCs Loan Programs is assigned an individualID number. This ID number must be used on all correspondence and on all transmittals sentto GMAC-RFC pertaining to Loans sold to GMAC-RFC under Commitments issued. Thisnumber is sometimes referred to as the Client/Servicer ID number.105GMAC-RFC Loan NumberEach Loan is assigned a GMAC-RFC Loan number. This Loan number must be used for allcorrespondence and transmittals sent to GMAC-RFC. The GMAC-RFC Loan number is locatedon the Purchase Advice.106Servicer Contractual ObligationsAll Loans purchased by GMAC-RFC under the terms of the Client Contract and this ClientGuide, as may be amended by a Negotiated Commitment Letter, must be serviced by aServicer under the terms of the Loan Documents, the Client Contract and the ServicerGuide. 19. GMAC-RFC 1Page 1.303/13/06Client GuideIntroduction107NoticeAll notices that are to be given under this Client Guide shall be in writing. Anything in theClient Contract to the contrary notwithstanding, if to the Client, notice must be sent by firstclass United States mail with postage prepaid, overnight courier or fax, to the appropriateaddress specified in the Client Contract or to any fax machine at that address, or by email. Ifto GMAC-RFC, notice must be sent by first class United States mail with postage prepaid,overnight courier or fax, to the appropriate address or fax number specified in this ClientGuide. Either the Client or GMAC-RFC may change the address or fax number to whichnotices must be sent by providing notice of such change to the other.108Hours of Operation and HolidaysGMAC-RFC business hours 8:00 a.m. to 5:00 p.m., Central time, 7:00 a.m. to 5:00 p.m.,Pacific time, and 8:30 a.m. to 5:30 p.m., Eastern time, Monday through Friday. In the year2006 the offices of GMAC-RFC are closed on the following holidays: Martin Luther King, Jr.Day, Presidents Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, theday after Thanksgiving and Christmas Day.109Client Guide OrganizationThe following describes the organization of Chapters in this Client Guide. Chapter 3, LoanEligibility, and its sub-chapters and Chapter 4, Underwriting, and its sub-chapters includegeneral Loan parameters. Program Criteria that is specific to a Loan Program, is found inthe individual Loan Program Chapter and in Chapter 7, At-A-Glance. 20. GMAC-RFC 1 Page 1.403/13/06Client GuideIntroductionThe Client Guide is divided into Chapters as follows: Chapter 1, Introduction Chapter 2, Client Eligibility Chapter 2A, Representations, Warranties and Covenants Chapter 3, Loan Eligibility Chapter 3A, Occupancy, Borrower and Ownership Status Chapter 3B, Transactions Chapter 3C, Financing Chapter 3D, Property Types and Considerations Chapter 3E, Loan Documents & Notes Chapter 3F, Insurance and Survey Requirements Chapter 3G, Prepayment Penalties Chapter 4, Underwriting Chapter 4A, Credit Chapter 4B, Liabilities & Debt Ratios Chapter 4C, Cash to Close Chapter 4D, Income Types Chapter 4E, Income Documentation Chapter 4F, Appraisal Requirements and Property Underwriting Chapter 4G, Electronic Services Chapter 5, Loan Products Chapter 6, Loan Programs Chapter 6A, Jumbo A Program Chapter 6B, Expanded Criteria Program Chapter 6C, Payment Option Program Chapter 6D, Home Solution Program Chapter 6E, AlterNet Program Chapter 6F, Performance Program Chapter 6G, First Lien Line of Credit Program Chapter 6H, Home Equity Program Chapter 6I, 125 CLTV Program Chapter 6J, Non-Standard Program Chapter 7, At-A-Glance Chapter 8, Servicing Released Chapter 9, Commitment, Prior Approval, Delivery and Funding Chapter 9A, Commitments Chapter 9B, Prior Underwriting Approval Chapter 9C, Delivery Chapter 9D, Funding Requirements and Wire Instructions Chapter 9E, Final Documents Chapter 10, Definitions Chapter 11, Forms & ExhibitsThe Chapters are made up of Sections. Each Section in a Chapter is designated by a 3-digitnumber or number and letter combination. 21. GMAC-RFC 1Page 1.503/13/06Client GuideIntroduction110Headings, Use of Capitalization and DefinitionsEach Chapter, Section and Feature title in this Client Guide appears with initial capitalization.References to a GMAC-RFC Loan Program appears with initial capitalization. All terms listedin Chapter 10, Definitions, have the special meaning given to them in Chapter 10 andappear with initial capitalization throughout this Client Guide.111Form & Exhibit NumberingAll GMAC-RFC Forms & Exhibits are referenced as (GMAC-RFC Form/Exhibit #) in the text.The date will be changed with each published revision. Each Client Guide Form & Exhibitnumber is four or five digits. The first digit will be the numeral 1. The next digit(s) correlateto the Chapter. The last two digits indicates the sequence.112Client Guide OnlineFor Clients convenience this Client Guide is available on the Internet atGMACResidentialFunding.com. Clients can request access online. All amendments orsupplements will also be available online. In the event of any inconsistency the online guideshall control.113General Rules of InterpretationAll words used in this Client Guide shall be construed to be of such gender or number as thecircumstances require. Nothing in this Client Guide shall be deemed to amend, or relieve theClient of its obligations under, any Program Document. Whenever GMAC-RFC is used in thisClient Guide, it refers to Residential Funding Corporation.(A) Knowledge StandardWhenever any representation, warranty, or other statement contained in this Client Guide isqualified by reference to a Clients knowledge or to the best of a partys knowledge,such knowledge shall be deemed to include knowledge of facts or conditions of whichClient, including (without limitation) any of its directors, officers, agents, or employees,either is actually aware or should have been aware under the circumstances with the exerciseof reasonable care, due diligence, and competence in discharging its duties under this ClientGuide and the Program Documents. All matters of public record shall be deemed to be knownby the Client. Any representation or warranty that is inaccurate or incomplete in any materialrespect is presumed to be made with the knowledge of Client, unless Client demonstratesotherwise. Due diligence means that care which Client would exercise in obtaining andverifying information for a Loan in which Client would be entirely dependent on theMortgaged Property or Mortgagors credit as security to protect its investment.(B) GMAC-RFCs Sole DiscretionWhenever any provision of this Client Guide contract requires GMAC-RFC to make adetermination of fact or a decision to act, or to permit, approve or deny another partysaction such determination or decision shall be made in GMAC-RFCs sole discretion. 22. GMAC-RFC 1 Page 1.603/13/06Client GuideIntroduction(C) Updates and AmendmentsGMAC-RFC will update this Client Guide from time to time to reflect changes in GMAC-RFCsrequirements and developments in GMAC-RFCs Loan Programs. Each update will be madeby means of a written notice to Client, and will constitute an amendment to this Client Guide.The written notice can be sent by email, mail, courier or fax. The written notice will explainthe amendment and specify the effective date of the change. Any amendment that modifiesany underwriting guidelines or this Client Guide will only be effective for Mortgage LoansRegistered after the effective date specified in the notice of amendment. GMAC-RFC willnotify Client of any unilateral change to the Underwriting Guidelines at least 30 days prior tothe effective date of such amendment; however, GMAC-RFC may give less than 30 daysnotice for new programs, products or enhancements. Notwithstanding the foregoing, GMAC-RFCmay amend this Client Guide, Underwriting Guidelines or the Program Documents at anytime if required by law or court order.(D) Power of AttorneyThe Client by entering into the Client Contract and delivering Loans to GMAC-RFC makes andappoints GMAC-RFC Clients true and lawful attorney-in-fact; and in the Clients name andstead to execute, by any authorized GMAC-RFC employee or agents signature, any and alldocuments for the purpose of assigning and transferring to GMAC-RFC any and allMortgages, deeds of trust, Security Instruments, and the related notes, including, but notlimited to the assignments of mortgages, deeds of trust, and Security Instruments; Noteendorsements, affidavits and agreements, for any Loan transaction closed and funded in theClients name and committed to GMAC-RFC under the Client Contract and gives and grantsGMAC-RFC full power and authority to do and perform all and every act and thing whatsoeverrequisite and necessary to be done, and to make, correct, supply information where GMAC-RFCcan supply the information, amend, endorse, accept, or deliver all agreements andinstruments; as fully, to all intents and purposes, as the Client might or could do if present atthe doing thereof through one of its authorized representatives, with full power ofsubstitution and revocation. The Client ratifies and confirms all that GMAC-RFC shall lawfullydo or cause to be done by virtue of this Power of Attorney. The Client may only revoke thisPower of Attorney in writing and only upon the expiration of 180 days from the effective dateof the Client Contracts termination in accordance with the Client Contract and this ClientGuides terms, and this Power of Attorney shall be deemed to be a power coupled with aninterest for such purpose.114Use of Clients NameGMAC-RFC reserves the right, at its option, to make the name of the Client generallyavailable, to publicly associate the name of the Client with GMAC-RFC Loan Programs andto refer business prospects to the Client. GMAC-RFC agrees to waive this right upon writtennotice from the Client requesting that GMAC-RFC do so. 23. GMAC-RFC 1Page 1.703/13/06Client GuideIntroduction115Use of GMAC-RFC Name and Service MarksThe Client is not authorized to use the corporate name Residential Funding Corporation,the trade name or initials GMAC-RFC, or any of the service marks of GMAC-RFC in any ofthe Clients promotional or other materials without the prior written consent of GMAC-RFC.As consideration for granting consent, the Client agrees to indemnify GMAC-RFC from andhold it harmless against any loss, damage or expense, including those incurred in defendingany action or proceeding, which results from its use of the corporate name, trade name orservice marks.At no time shall the Client advertise or represent in print, in verbal communications orotherwise, that it is acting on behalf, under the direction, as the agent or as therepresentative of, or otherwise through or for, GMAC-RFC.116AssetinfoAssetinfoSM is a Client reporting application designed to make Loan inquiries easy and fast.Clients have 24 hour, 7-day-a-week access to the status of their Loans in process,outstanding Commitments, funded Loan data, and other critical information online atGMACResidentialFunding.com. Clients can easily access this information by entering theirGMAC-RFC username and password. Please contact your Sales Director for additionalinformation. 24. GMAC-RFC 1 Page 1.803/13/06Client GuideIntroductionThis page intentionally left blank. 25. GMAC-RFC Page 2.103/13/06Client GuideClient Eligibility2Client Eligibility200Client EligibilityGMAC-RFC will approve Clients of GMAC-RFC as mortgage Loan lenders approved in goodstanding. Clients of GMAC-RFC will be eligible to participate in GMAC-RFCs Loan Programs.In order to become a Client, a mortgage Loan lender must: Satisfy the GMAC-RFC Client Eligibility Standards Have its completed Client Application approved by GMAC-RFC Enter into the Client Contract Deliver a certified Resolution of Board of Directors to GMAC-RFC and other documentsas required by GMAC-RFC Deliver 3 original Limited Power of Attorney documents to GMAC-RFC (GMAC-RFCForm 1204). The Limited POA grants GMAC-RFC the authority to execute and/orcorrect documents for the purpose of assigning and transferring mortgage assets toGMAC-RFC. The use of the Limited POA is restricted to those assets, which the Clienthas committed to GMAC-RFC.In order to remain eligible to participate in GMAC-RFCs Loan Programs, the Client mustcomply with all of the terms of the Client Contract, including this Client Guide. 26. 2 Page 2.2GMAC-RFC 03/13/06Client GuideClient Eligibility201Eligibility Standards(A) To Be eligible As a Client, the Client Must Be: In compliance with all capital requirements and other requirements specified by anyState or federal regulatory agency that are applicable to the Client A member of MERS, in good standing and current in payment of all fees andassessments by MERS (if any Loan is registered with MERS)(B) Net Worth Requirements:The Client must maintain GAAP tangible net worth requirements (defined as GAAP total networth minus any intangible assets). Contact your sales representative for current tangiblenet worth requirements.Example:Audited Book Net Worth at $3,000,000Intangible assets (from auditedfinancial statements) minus $250,000Tangible Net Worth $2,750,000(C) Independent Auditors Opinion: An independent auditor must review the Clients most recent annual financialstatements and render them acceptable. An independent auditors report on the Uniform Single Attestation Program formortgage bankers (USAP) indicates no significant exceptions.(D) The Client Must Demonstrate an Ability to Originate Mortgage Loans, Which CanBe Evidenced by: Two years of conventional mortgage Loan originations $25 million in conventional mortgage Loan originations in the 12 months immediatelypreceding application $100 million in conventional mortgage Loan portfolio currently serviced for Clients thatretain servicing A staff knowledgeable in originating, quality control and selling conventional mortgageLoans 27. GMAC-RFC 2Page 2.303/13/06Client GuideClient Eligibility(E) The Client must maintain adequate fidelity, errors and omissions insurancecoverage for its operations and the carrier of such insurance coverage must berated B/III, A/II or better in the current Bests Key Rating Guide.(F) The Clients Delinquency rates on all Loan production must be acceptable toGMAC-RFC.(G) The Client must adhere to prudent standards for written policies andprocedures for mortgage Loan origination, Loan Document deliveryrequirements and an internal audit program (including quality control).(H) The Clients mortgage insurance claim experience must be acceptable to GMAC-RFC.(I) The Client must comply with all State and federal laws and regulationsapplicable to its business and operations, including, without limitation, all fairlending laws. If the Client has been cited by any regulatory authority for havingviolated any fair lending laws or regulations, it must demonstrate to GMAC-RFCssatisfaction that it has taken corrective action to remedy such violation.(J) The Client, upon request, will provide GMAC-RFC with a corporate resolution forthe purpose of assigning and transferring to GMAC-RFC mortgages, deeds oftrust and Security Instruments.(K) The Client must comply with the rules and procedures of MERS in connectionwith all Loans registered with MERS. If the Client has been terminated,disqualified or suspended or threatened with termination, disqualification orsuspension by MERS, the Client must demonstrate to GMAC-RFCs satisfactionthat it has taken corrective action to remedy such termination, disqualificationor suspension. 28. 2 Page 2.4GMAC-RFC 03/13/06Client GuideClient Eligibility202Client ContractAs set forth in more detail in the Client Guide, to participate in GMAC-RFCs Loan Programs,a lender agrees to be bound and abide by the procedures, terms and conditions set forth inthis Client Guide, as it may be amended from time to time. The lender must also enter into aCommitment Letter that specifies, among other things, the maximum dollar volume ofMortgage Loans that may be offered for sale within a stated period of time.203Client Underwriting ResponsibilitiesThe Client must ensure that Loans sold to GMAC-RFC meet the eligibility and underwritingguidelines as outlined in this Client Guide. The Client represents and warrants suchcompliance.The Client is responsible for credit and property underwriting performed by it or by entitiesother than the Client which have been retained by the Client to perform such underwriting onClients behalf. This applies even if the credit information and appraisal were requested by orif any Loan processing functions were performed by an entity other than the Client or anentity related to the Client.204Continuing Client ObligationsIn order to remain eligible, the Client must be active with GMAC-RFC in the precedingcalendar year, maintain the initial eligibility standards or eligibility standards currently ineffect, and comply with the continuing obligations as defined in this Client Guide. In addition,GMAC-RFC reserves the right to amend any or all continuing eligibility standards for a Clientbased upon its current financial strength, volume and performance.205Disqualification, Suspension or InactivationGMAC-RFC may disqualify, suspend or inactivate the Client from selling Loans to GMAC-RFC,or may take any other action GMAC-RFC deems appropriate upon notice to Client. The Clientwill be ineligible to obtain new Commitments during any period of disqualification,suspension or inactivation. GMAC-RFC will determine the length of any disqualification,suspension, or inactivation period, and may prescribe the terms and conditions forreinstatement.(A) TerminationEither party may terminate the Program Documents and Clients right to participate in GMAC-RFCsLoan Programs at any time upon five days prior written notice of termination to theother party. GMAC-RFC may suspend or terminate the Program Documents and Clients rightto participate in GMAC-RFCs Loan Programs immediately if it has cause to believe anEvent of Default or a breach of a representation and warranty has occurred. 29. GMAC-RFC 2Page 2.503/13/06Client GuideClient Eligibility(B) Effect of TerminationAny termination of the Program Documents and Clients right to participate in GMAC-RFCsLoan Programs, for any cause, shall not affect the performance of Clients obligations withrespect to Mortgage Loans previously sold or delivered to GMAC-RFC prior to the effectivedate of such termination. Provided that no Event of Default on the part of Client hasoccurred, termination of the Program Documents by GMAC-RFC shall not apply to anyMortgage Loans that have been Registered with GMAC-RFC by Client before the effectivedate of such termination notice. If GMAC-RFC terminates the Program Documents due to anEvent of Default, GMAC-RFC may refuse to Register or Fund any or all Mortgage Loans afterthe effective date of termination.(C) Survival of Representations, Warranties, Covenants and RemediesClients representations, warranties and covenants with respect to each Loan, and GMAC-RFCsremedies for Clients breach of such representations, warranties and covenants withrespect to each Loan will continue in full force and effect until the latest of: (i) the date suchLoan has been irrevocably paid in full, (ii) the date the last limitations period for bringingclaims against GMAC-RFC or its successors or assigns concerning the subject matter ofClients representations and warranties with respect to such Loan expire under all applicablelaw, and (iii) the date any claim, suit or other proceeding against GMAC-RFC or its successorsor assigns concerning the subject matter of Clients representations, warranties andcovenants with respect to such Loan have been conclusively determined or settled and allapplicable appeals have been exhausted.Furthermore, Clients representations, warranties and covenants with respect to each Loanshall also survive: (a) the sale and delivery of such Loan and/or the related Servicing Rightsto GMAC-RFC; (b) the termination of the Client Contract, the Client Guide and the otherProgram Documents and/or Clients right to participate in GMAC-RFCs Loan Programs; (c)any restrictive or qualified endorsement appearing on any Mortgage, Note, or any otheragreement, document or instrument relating to such Loan; and (d) any examination, failureto examine, due diligence or failure to conduct due diligence with respect to such Loan or anyof the agreements, documents or instruments related to such Loan. 30. GMAC-RFC 2 Page 2.6Client GuideClient Eligibility206Reporting Requirements(A) Annual RequirementsWithin 90 days after the Clients fiscal year end, it must send the following documents toGMAC-RFC:(1) Annual financial statements that include: An independent auditors opinion on financial statements An independent auditors report on the Uniform Single Attestation Program (USAP)for mortgage bankers A copy of the 10-K if the Client is required to prepare an annual Form 10-K(2) A completed Freddie Mac Annual Eligibility Certification Report (Freddie Mac Form16SF). If the Client is not required to submit Freddie Mac Form 16SF, then theAnnual Client Certification (GMAC-RFC Form 1200) may be substituted.(B) Other Reporting Requirements(1) Interim Financial Statements; Other InformationThe Client shall, upon the reasonable request of GMAC-RFC, provide its quarterly un-auditedfinancial statements, Form 10-Qs, or any other financial informationpertaining to the Client.(2) Fidelity and Errors and Omissions Insurance The Client must notify GMAC-RFC if it receives notice from its insurer of intent tocancel, not renew, or otherwise modify the Clients coverage. This notification mustbe sent to GMAC-RFC by registered mail at least 10 days before it becomeseffective. The Client must report to GMAC-RFC all cases of material theft, embezzlement orfraud and all claims made against the insurer within 10 days after the occurrence. If requested by GMAC-RFC, the Client must provide current certificates ofinsurance outlining its fidelity and errors and omissions insurance.(C) Mailing AddressSubmit all information required under Annual Requirements and Other ReportingRequirements Sections above to:GMAC-RFCOne Meridian CrossingsSuite 100Minneapolis, MN 55423Attention: Risk ManagementFacsimile: 952-979-259203/13/06 31. GMAC-RFC 2Page 2.703/13/06Client GuideClient Eligibility(D) Regulation AB Disclosures(1) Originator DisclosureAs requested by GMAC-RFC in its sole discretion, within three (3) business days theClient will provide to GMAC-RFC either (a) the disclosures required under Item1110(b) of Regulation AB (Originator disclosure) or any successor regulation forinclusion in a prospectus or other disclosure document, or (b) a confirmation thatpreviously provided disclosure does not require updating. Originator disclosurerequired to be provided shall include (A) the Clients form of organization, (B) adescription of the Clients origination program and how long the Client has beenengaged in originating residential mortgage loans, (C) discussion of the Clientsexperience in originating residential mortgage loans, (D) information regarding thesize and composition of the Clients origination portfolio and (E) the Clientsunderwriting criteria (or other information material to an analysis of the performanceof the mortgage loans, as determined by GMAC-RFC). As requested by GMAC-RFC inits sole discretion, within three (3) business days, the Client shall provide in aspecified electronic format the name of the originator of each mortgage loan iforiginated by an entity other than the Client.(2) Legal Proceedings for Prospectus Disclosure or Update of Periodic ReportsAs requested by GMAC-RFC in its sole discretion, within three (3) business days ofGMAC-RFCs request, the Client will provide to GMAC-RFC (a) a complete writtendescription of any legal proceedings pending against the Client, or of which theClients property is the subject, that, if adversely determined, could have a materialadverse impact on the Clients financial condition or its continuing ability to sellmortgage loans to GMAC-RFC or would affect the enforceability of any mortgageloan (including any similar proceedings known by the Client to be contemplated bygovernmental authorities) for inclusion in a prospectus or other disclosure documentpursuant to Regulation AB or any successor regulation (Legal ProceedingsDescription), certified as to accuracy by an officer of the Client, or (b) a writtencertification of an officer of the Client stating that the previously provided LegalProceedings Description does not require updating and continues to be complete andaccurate as of such date.(3) Updates Regarding Legal ProceedingsIf at any time any previously provided Legal Proceedings Description is no longercurrent or requires updating, or if the Client is the subject of new legal proceedingsthat would require disclosure under Item 1117 of Regulation AB or any successorregulation, the Client will provide to GMAC-RFC a revised Legal ProceedingsDescription, certified as to accuracy by an officer of the Client.(4) Other Information Required under Regulation ABThe Client will provide to GMAC-RFC such other information, including historical loanperformance information, as GMAC-RFC shall reasonably request in order to enableGMAC-RFC to comply with any applicable requirements of Regulation AB or anysuccessor regulation. Such information shall be provided within fifteen (15) days of arequest from GMAC-RFC.(5) Mailing Address for Regulation AB DisclosuresAt the time GMAC-RFC requests any Regulation AB disclosure or information underthis Section 206(D), it will provide to the Client the address to which all suchdisclosure or information should be delivered. 32. 2 Page 2.8GMAC-RFC 03/13/06Client GuideClient Eligibility207Audits and InspectionsThe Client agrees to allow GMAC-RFC to conduct, from time to time, audits or inspections atone or more of the Clients offices during normal business hours. At that time, the Client shallprovide the assistance of a knowledgeable and responsible individual and will grant GMAC-RFCaccess to all books, records and files pertaining to: The Loans The Clients compliance with the terms and provisions of the Client Contract, includingthis Client GuideThe Client also agrees, upon the request of GMAC-RFC, to deliver the material described inthe Maintenance of Records Section of this Client Guide. GMAC-RFC may, from time totime, conduct audits at GMAC-RFC offices using information and documents provided by theClient. During these audits the Client should provide a person or persons to contact bytelephone for additional information.208Disclosure of InformationThe Client shall, upon the request of GMAC-RFC, disclose to GMAC-RFC information relatingto the Clients origination or Servicing experience. This information may include, but is notlimited to, information required under Regulation AB or any successor regulation, informationon losses, mortgage insurance claims, Delinquency, and declination experience onmortgage Loans originated or serviced by the Client, as well as related information. TheClient also consents to the disclosure by GMAC-RFC, of any such information to investors,rating agencies, credit enhancement providers, or any other entity that needs theinformation in connection with GMAC-RFCs secondary marketing operation. The Clientreleases and agrees to hold harmless GMAC-RFC, and any insurer or other entity whichdiscloses information as provided above, from and against any claims or liabilities connectedwith such disclosure. 33. GMAC-RFC 2Page 2.903/13/06Client GuideClient Eligibility209Maintenance of RecordsThe Client shall maintain adequate records of all Loans submitted to GMAC-RFC forunderwriting approval for such periods of time as may be necessary to comply with the EqualCredit Opportunity Act and other applicable laws and regulations. The Client shall maintain afile for each Loan purchased by GMAC-RFC, clearly marked with the GMAC-RFC Loan numberand, for Loans registered with MERS, the MIN. The Client shall maintain each file throughoutthe time GMAC-RFC owns the Loan and thereafter for a period of three years from the datethe Loan is fully paid or, if the Loan is accelerated, for at least six years from the date theLoan is fully paid. The file must contain: Copies of all documents delivered in their original form to GMAC-RFC Originals of all documents, copies of which were delivered to GMAC-RFC All other Loan and related documents not required to be sent to GMAC-RFCIn lieu of retaining copies and originals as stated above, the Client may retain microfiche,microfilm or magnetic media copies or acceptable Write Once Read Many (WORM)technology.210Quality Control(A) Recommended ProgramThe Client shall maintain an internal quality control program that ensures the accuracy oflegal and origination documents, as well as the soundness of underwriting decisions. Theprogram should be supported by a written plan outlining the objectives and scope of thereview and applicable policies and procedures and shall include, at a minimum, post- andpre-closing review procedures.(1) Pre-closing ReviewA pre-closing review should, at a minimum, consist of the following procedures on allor a representative sample of Loan production: Review legal documentation for accuracy and completeness Obtain duplicate credit reports (in-file or residential mortgage credit reports) Reverify (by telephone) Loan information (e.g., employment, deposits, sourceof funds, etc.) Obtain review appraisals Reverify other origination documentation as deemed appropriate by the ClientFor all B and C grade Loans, as defined in this Client Guide, a documentedtelephone verification of employment is required to be obtained within five days priorto closing. 34. GMAC-RFC 2 Page 2.10Client GuideClient Eligibility(2) Post-closing ReviewIn the interest of sound quality control measures, GMAC-RFC requires that the Clientaudits at least a 10% randomly selected sample of recently closed Loan inventorysold to GMAC-RFC and review the product within 90 days of its origination. TheClient may elect to replace the 10% randomly selected sample with a statisticallyvalid random sample provided the sample ensures a 95% confidence level and 2%level of precision in the results. The random sample should include both servicingretained and servicing released Loans and ensure that Loans from all underwriters,appraisers, Loan originators, third-party originators and branch offices are auditedwithin each calendar year. The quality control plan should also allow for discretionaryand targeted sampling where appropriate. GMAC-RFC recommends that the Clientincrease the scope or sample of Loans audited when new employees, appraisers orthird-party originators are added.Unless performed as an element of the pre-closing review, the post-closing auditshould, at a minimum, consist of the following: Complete underwriting of each Loan, including an evaluation of the appraisalreport by the quality control staff to evaluate the soundness of underwritingjudgment and compliance with Program Criteria and to determine theexistence of any irregularities. The presence of irregularities should lead to amore thorough investigation. Written re-verification of Loan documentation (e.g., employment and income,deposits, source of funds, etc.). In this process, a blanket authorization form isrequired. If the income used for qualification purposes can be verified throughtax returns, signed and dated IRS Forms 4506 or 4506-T or an equivalentdocument authorizing the Client and/or its assigns to obtain incomeinformation is required. The Client must obtain a new appraisal from a qualified source, independent ofthe original appraiser, on at least 10% of the audited sample [one out of tenLoans]. This appraisal may take the form of a new appraisal or a field review. Itshould include, at a minimum, an exterior inspection of the MortgagedPremises and comparables and a validation of the factual data on the originalappraisal report. The Client must obtain and review a new credit report (independent of theoriginal reporting agency) on each Loan. GMAC-RFC recommends that theClient order a new residential mortgage credit report or a source in-file creditreport on all sample Loans selected for the audit. These credit reports mustmeet the requirements set forth in the Credit Report Requirements Section ofthis Client Guide, including the requirement of a public records search. Review the remaining documentation, including the Loan application andclosing documents, for consistency, accuracy, validity, completeness, etc. Review the Loans included in the audit sample to determine compliance to thevarious GMAC-RFC representations and warranties set forth in this ClientGuide.03/13/06 35. GMAC-RFC 2Page 2.1103/13/06Client GuideClient EligibilityThe Client must also include in its quality control review all Loans in which a 30 dayDelinquency occurred within the first four months of the Loan. In addition, theClient should include any Loan in which foreclosure proceedings have been institutedwithin the first three years of the Loan if a Delinquency occurred during the first yearwith respect to that Loan. In this case, the Client should obtain a new credit reportand new appraisal.GMAC-RFC recommends that the Client expand the scope of its quality controlreview whenever irregularities or discrepancies are discovered. This supplementalaudit should include verifying the occupancy of the Mortgaged Premises,investigating the presence of undisclosed Secondary Financing and validating ordetermining possible self-employment income of the Borrower.The Client must maintain accurate records (log books, etc.) of all Loans audited, thework performed, results, and necessary follow-up and should make these recordsavailable to GMAC-RFC upon request. The Client must retain these records as long asGMAC-RFC owns the Loan. The quality control staff should report general results aswell as variances discovered during any phase of the audit to the Clients seniormanagement on at least a quarterly basis. These reports should correct and preventdeficiencies in the Clients ongoing origination, underwriting, appraisal and closingfunctions. If a quality control audit discovers that a breach of any representations orwarranty has occurred, the Client must give GMAC-RFC prompt written notification ofsuch breach, outlining the details of the discovery and any supporting documents.Send this notice to:GMAC-RFCOne Meridian CrossingsSuite 100Minneapolis, MN 55423Attention: Quality AuditGMAC-RFC may ask the Client to increase its quality control sampling requirementsor may take any action deemed necessary if the Client experiences a number ofvariances which significantly impact the investment quality of the Loans sold toGMAC-RFC.(B) Loan AuditThe Client agrees to conduct a Loan audit on any Loan upon the written request of GMAC-RFC.The Client must determine whether the Loan was prudently originated and if an Eventof Default has occurred.If an audit discovers an Event of Default, the Client must promptly notify GMAC-RFC inwriting as specified in this Client Guide.The Client shall complete the audit of any Loan in which foreclosure proceedings have beeninstituted in a thorough and timely manner. During this investigation, GMAC-RFC maymanage the foreclosure process, making decisions regarding short payoffs, deed-in-lieutransactions, and REO sales prices and dispositions. GMAC-RFC will make these decisionswithout regard to this investigation and as though it, or its investor, will incur the loss on theLoan.However, if the investigation shows that an Event of Default has occurred, GMAC-RFC mayask the Client to repurchase the Loan or the property, or to reimburse GMAC-RFC for its loss,if the property has been disposed of, depending on the stage of the foreclosure process atthe time of the determination. 36. 2 Page 2.12GMAC-RFC 03/13/06Client GuideClient EligibilityThis page intentionally left blank. 37. GMAC-RFC Page 2A.111/21/05Client GuideRepresentations,Warranties andCovenants 2ARepresentations, Warranties and CovenantsA200Client Representations Warranties and CovenantsThe Client acknowledges that GMAC-RFC purchases Loans in reliance upon the accuracy andtruth of the Clients warranties and representations and upon the Clients compliance with theagreements, requirements, terms and conditions set forth in the Client Contract and thisClient Guide.All such representations and warranties are absolute, and the Client is fully liable for anymisrepresentation or breach of warranty regardless of whether it or GMAC-RFC actually had,or reasonably could have been expected to obtain, knowledge of the facts giving rise to suchmisrepresentation or breach of warranty.The representations and warranties pertaining to each Loan purchased by GMAC-RFC survivethe Funding Date, any simultaneous or post-purchase sale of servicing with respect to theLoan and any termination of the Client Contract, and are not affected by any investigation orreview made by, or on behalf of, GMAC-RFC except when expressly waived in writing byGMAC-RFC.The representations and warranties contained herein are made as of each Funding Date(and each Substitution Date, if applicable), unless the specific representation or warrantyprovides to the contrary. Making these representations and warranties does not release theClient from its obligations under the representations and warranties contained in otherSections of this Client Guide.GMAC-RFC reserves the right to require the Client as a condition of GMAC-RFCs purchase ofa given Loan or group of Loans to make additional warranties in writing. 38. 2A Page 2A.2GMAC-RFC 11/21/05Client GuideRepresentations,Warranties andCovenantsA201Specific Representations, Warranties and Covenants Concerning Client(A) Due Organization; Good Standing; LicensingClient and, to Clients knowledge, Clients Guarantor, if applicable, is and shall continue to beduly organized, validly existing, and in good standing under the laws of the United States orunder the laws of the jurisdiction in which it was incorporated or organized, as applicable,and has and shall continue to maintain all licenses, registrations, and certifications necessaryto carry on its business as now being conducted, and is and will continue to be licensed,qualified, and in good standing in each State where a Mortgaged Property is located if thelaws of such State require licensing or qualification in order to conduct business of the typeconducted by Client1. Client is and will remain in compliance with the laws of any such State,and is and will remain in good standing with federal authorities, to the extent necessary toensure the enforceability of the related Loan. Client has disclosed the final written reports,actions and/or sanctions of any and all reviews, investigation, examinations, audits, actionsand/or sanctions that have been undertaken and/or imposed, within two years prior to thedate of the Client Contract, by any federal or State agency or instrumentality with respect toeither the lending or related financial operations of Client, or the ability of Client to performin accordance with the Program Documents terms. Each of the representations andwarranties made by Client in its Client Application is true, accurate, and complete, and isdeemed to be remade in its entirety, as of the date of the Client Contract, and as of eachFunding Date.1 In addition, if any Loan is secured by mortgaged property located in the State of West Virginia, Client and theoriginator of the Loan is licensed under the West Virginia Mortgage Loan Act and Client and the originator of theLoan held such license at the time the Loan was originated, unless otherwise exempt from licensing. Client andthe originator of the Loan must be licensed under the West Virginia Mortgage Loan Act even if Client and theoriginator of the Loan makes or offers to make or accepts or offers to accept or purchases or services in a calendaryear fewer than the number of de minimus primary or subordinate mortgage Loans specified in the definition oflender in W. Va. Code Section 31-17-1.(B) AuthorityClient has and will maintain the full corporate, partnership or limited liability company powerand authority to execute and deliver the Program Documents and to perform the terms ofthis Client Guide. The execution, delivery, and performance of the Program Documents andthe performance of the terms of this Client Guide by Client, and the consummation of thetransactions contemplated, have been duly and validly authorized. The Program Documentsand this Client Guide evidence Clients legal valid, binding, and enforceable obligations. Allrequisite corporate, partnership or limited liability company action has been taken by Clientto make the Program Documents and the terms of this Client Guide valid and binding uponClient and enforceable in accordance with their respective terms.(C) Ordinary Course of BusinessThe consummation of the transactions contemplated by the Program Documents and theClient Guide terms are in Clients ordinary course of business, and the transfer, assignment,and conveyance of the Mortgage Notes and the Mortgages by Client, pursuant to the ProgramDocuments and the Client Guide terms are not subject to the bulk transfer laws or anysimilar statutory provisions in effect in any applicable jurisdiction. 39. GMAC-RFC 2A Page 2A.311/21/05Client GuideRepresentations,Warranties andCovenants(D)No ConflictsNeither the execution and delivery of the Program Documents, the acquisition and/or makingof the Loans by Client, the sale of the Loans to GMAC-RFC or the transactions contemplatedthereby or pursuant to this Client Guide, nor the fulfillment of or compliance with theProgram Documents terms and conditions, will conflict with or result in a breach of any of theterms, conditions, or provisions of Client's articles of incorporation, charter, by-laws,partnership agreement, or other organizational document, or of any legal restriction orregulatory directive or any agreement or instrument to which Client is now a party or bywhich it is bound, or constitute a default or result in an acceleration under any of theforegoing, or result in the violation of any law, rule, regulation, order, judgment, or decree towhich Client, or any of its property is subject, or impair the ability of GMAC-RFC to realize onany of the Loans, or impair the Value of any of the Loans.(E) Ability to PerformClient has the ability to perform each and every obligation of and/or satisfy each and everyrequirement imposed on, Client pursuant to the Program Documents and this Client Guide,and no offset, counterclaim, or defense exists to the full performance by Client of therequirements of Program Documents and this Client Guide.(F) No Litigation PendingThere is no action, suit, proceeding, inquiry, review, audit, or investigation pending orthreatened against Client that, either in any one instance or in the aggregate, may result inany material adverse change in the business, operations, financial condition, properties, orassets of Client, or in any material liability on the part of Client, or which would draw intoquestion the validity or enforceability of any of the Program Documents, this Client Guide, orthe Loans or of any action taken or to be taken in connection with Clients obligationscontemplated in any of the Program Documents or this Client Guide, or which would be likelyto impair materially Clients ability to perform under the terms of the Program Documents orthis Client Guide.(G)No Consent RequiredNo consent, approval, authority, or order of any court or governmental agency or body isrequired for the execution and performance by Client of, or compliance by Client with, any ofthe Program Documents or this Client Guide, the sale of any of the Loans, or theconsummation of any of the transactions contemplated by any of the Purchase Documents,or, if required, such unconditional approval has been obtained prior to the related FundingDate.(H)No Untrue InformationNeither the Program Documents, the Client Application, this Client Guide, nor any statement,report, or other document furnished or to be furnished by Client pursuant to the ProgramDocuments or this Client Guide, contains any untrue statement of material fact or omits tostate a material fact necessary to make the statements contained therein not misleading.Client meets GMAC-RFCs Eligibility Standards, and shall take all steps necessary to continueto meet such Eligibility Standards. 40. 2A Page 2A.4GMAC-RFC 11/21/05Client GuideRepresentations,Warranties andCovenants(I) Securities LawThe Client represents that the Loans are not securities under any federal or State securitieslaws or any rules or regulations thereunder and that the transactions contemplated by thisClient Guide do not require registration under, and are not subject to, any federal or Statesecurities laws or any rules or regulations thereunder.(J) No Accrued LiabilitiesExcept as may be otherwise disclosed by Client to GMAC-RFC and acknowledged by GMAC-RFCin writing prior to the date of the Client Contract, there are no accrued liabilities ofClient, with respect to any of the Loans, or circumstances under which any such accruedliabilities will arise against GMAC-RFC, as successor to Clients interests in and to the Loans,with respect to any action or failure to act by Client occurring on or prior to the FundingDate.(K) Origination, ServicingClients origination and servicing of the Loans have been legal, proper, prudent, andcustomary and have conformed to the highest standards of the residential mortgageorigination and servicing business.(L) Compliance With LawsClient has complied with, and has not violated any law, ordinance, requirement, regulation,rule, or order applicable to its business or properties, the violation of which might adverselyaffect the operations or financial conditions of Client, or the ability of Client to consummatethe transactions contemplated by the Program Documents and this Client Guide.(M)Compliance With Program Documents and Client GuideClient will comply with all provisions of this Client Guide and the Program Documents, andwill promptly notify GMAC-RFC of any occurrence, act, or omission regarding Client, theLoan, the Mortgaged Property or the Mortgagor of which Client has knowledge, whichoccurrence, act, or omission may materially affect Client, the Loan, the Mortgaged Property,or the Mortgagor.(N)No Defenses Against GMAC-RFCThe Client has no judgment, court order, claim, counterclaim, defense, right of set-off orsimilar right against GMAC-RFC. 41. GMAC-RFC 2A Page 2A.511/21/05Client GuideRepresentations,Warranties andCovenantsA202Specific Representations, Warranties and Covenants Concerning Individual LoansFor all Loans, the Client represents, warrants and covenants to GMAC-RFC as follows:(A) Loans Are Eligible; Accuracy of InformationEach of the Loans delivered and sold to GMAC-RFC meets the applicable program terms andcriteria set forth in this Client Guide. All information relating to each Loan delivered and soldto GMAC-RFC is true, complete and accurate and there are no omissions of material facts. Alldata provided by the Client to GMAC-RFC relating to any Loan, whether in electronic format,or otherwise, is true and complete and accurately reflects the information in the related Loanfile.(B) Compliance With WarrantiesThe Client is in compliance with, and has taken all necessary action to ensure that each Loanis in compliance with all representations, warranties and requirements contained in thisClient Guide.(C) Loan ProvisionsThe provisions of the Loan have not been impaired, waived, altered or modified in anyrespect, unless approved in writing by GMAC-RFC. The issuer of any related PMI Policy andthe title insurer have approved the substance of any such waiver, alteration, or modificationto the extent required by the respective policies. No Mortgagor has been released, in wholeor in part.(D)DocumentsAll Loan Documents, Funding Documents and Final Documents are genuine, have beencompleted, duly and properly executed, are in recordable form and delivered in the form andmanner specified in this Client Guide, and each Loan is the Mortgagors legal, valid andbinding obligation enforceable in accordance with its terms. All originals and copies of suchdocuments and all other documents, materials, and other information required to besubmitted to GMAC-RFC have been so submitted, and are complete and accurate. All LoanDocuments, Funding Documents, Final Documents and all other documents describing orotherwise relating thereto are in compliance with all applicable local and State laws,regulations and orders. 42. 2A Page 2A.6GMAC-RFC 11/21/05Client GuideRepresentations,Warranties andCovenants(E) Ownership; TransferThe Client has good title to and is the sole owner of, each Loan delivered and sold to GMAC-RFC.Except for the security interest of a warehouse lender, which security interest Client hasdisclosed to GMAC-RFC in writing, the assignment of the Loan by the Client validly transferssuch Loan to GMAC-RFC free and clear of any pledge, lien or security interest or otherencumbrance.For each Loan registered with MERS, the Client represents that (a) if the SecurityInstrument relating to such Loan identifies MERS as the original mortgagee of record, suchSecurity Instrument provides that the Security Instrument is given to MERS solely asnominee for the Client and its successors and assigns and that such Security Instrument hasbeen properly executed, acknowledged, delivered and recorded in all places necessary toperfect the security interest on the Mortgaged Premises in favor of MERS, solely asnominee for the Client and its successors and assigns; or (b) if the Loan is registered withMERS, and MERS is not the original mortgagee of record, an assignment to MERS has beenprepared, duly executed and recorded and the chain of assignments is complete andrecorded from the original mortgagee to MERS. Client further represents that it has compliedwith all rules and procedures of MERS for its assignment of the Security Instrument to GMAC-RFC,including, among other things, that the Client has confirmed the transfer on MERS toGMAC-RFC.(F) Disbursements; No Payoffs or Future AdvancementsEach Loan has been closed and fully disbursed, except as permitted in the Escrow Accountfor Postponed Improvements/Repairs Section of this Client Guide. There are no payoffs,assumptions or insurance claims pending on any Loan or pertaining to the MortgagedPremises and the Borrower may not exercise any option under any of the Loan Documentsto borrow additional funds secured thereby from the Client or any other person or entitywithout the Noteholders consent.Additionally, the Client warrants that the Client has not made arrangements with anyBorrower for any payment forbearance or future refinancing with respect to any Loan.(G)No DefaultThere is no default, breach, violation or event of acceleration existing under any Note orSecurity Instrument transferred to GMAC-RFC, and no event exists which, with notice andthe expiration of any grace or cure period, would constitute a default, breach, violation orevent of acceleration, and no such default, breach, violation or event of acceleration hasbeen waived by the Client or by any other entity involved in originating or servicing the Loan.(H)No DefensesExcept as provided in a buydown or subsidy agreement, if any, meeting the requirements setforth in this Client Guide, the Borrower (including any party secondarily liable under theLoan Documents) has no right of set-off, defense, counterclaim or right of rescission to anyLoan Document. 43. GMAC-RFC 2A Page 2A.709/11/06Client GuideRepresentations,Warranties andCovenants(I) Compliance with LawThe sale and transfer of each Loan to GMAC-RFC does not violate any applicable State laws.To the extent that any applicable State law places any restrictions on the transfer of anyLoan, the Client has notified GMAC-RFC in writing of that restriction and any related Statelicensing or registration requirements.The Security Instrument has been properly executed, acknowledged, delivered andrecorded in all places necessary to perfect the security interest in the Mortgaged Premisesin favor of the Client and its successors and assigns. If a Loan is registered with MERS, andMERS is identified on the Security Instrument as the original mortgagee of record, Clientrepresents that such Security Instrument provides that the Security Instrument is given toMERS solely as nominee for the Client and its successors and assigns. If the Loan isregistered with MERS, and MERS is not the original mortgagee of record, Client representsthat an assignment to MERS has been prepared, duly executed and recorded and the chain ofassignments is complete and recorded from the original mortgagee to MERS and Clientfurther represents that it has complied with all rules and procedures of MERS for itsassignment of the Security Instrument to GMAC-RFC, including, among other things, thatClient has confirmed the transfer on MERS to GMAC-RFC.Each GMAC-RFC Loan Application (Fannie Mae 1003/Freddie Mac Form 65) was taken fromthe Borrower and processed for each Loan, and each Loan has been originated, closed, andtransferred in compliance with all applicable local, State and federal laws and regulationsincluding, but not limited to, the Real Estate Settlement Procedures Act, the Fair CreditReporting Act, the Equal Credit Opportunity Act, the Truth-in-Lending Act, the Fair HousingAct, and the National Flood Insurance Act. This warranty is made by the Client with respectto each GMAC-RFC Loan Application taken and processed for each Loan and with respect toeach Loan made by the Client or any other entity.(J) Responsible Lending Representations, Warranties and Covenants(1) No Discontinued LoansNo Loan is a Discontinued Loan. Discontinued Loan means any of the following,regardless of whether the originator is required by law to comply with the law or hasgrounds to claim preemption from all or part of the law.(a) HOEPA/Section 32A loan considered a mortgage under Section 152 of the Home Ownership andEquity Protection Act of 1994, 15 U.S.C. Section 1602 (aa) and the relatedregulations and commentary promulgated by the Federal Reserve Board,including Section 226.32 of Title 12 of the Code of Federal Regulations, and theofficial staff commentary to those regulations.(b) Purchase Money Loans with High Points or FeesA purchase money loan secured by the consumers principal dwelling thatexceeds the points and fees or APR triggers of the Home Ownership and EquityProtection Act of 1994 and the related regulations and commentary promulgatedby the Federal Reserve Board, including Section 226.32 of Title 12 of the Code ofFederal Regulations. A purchase money loan is a loan that is considered aresidential mortgage transaction under Section 226.2(24) of Title 12 of theCode of Federal Regulations. 44. GMAC-RFC 2A Page 2A.8Client GuideRepresentations,Warranties andCovenants(c) Home Equity Lines and 1st Lien Lines of Credit That Exceed the HOEPATriggersAn open-end line of credit secured by the consumers principal dwelling thatexceeds the points and fees or APR triggers of the Home Ownership and EquityProtection Act of 1994 and the related regulations and commentary promulgatedby the Federal Reserve Board, including Section 226.32 of Title 12 of the Code ofFederal Regulations. Points and fees must be calculated in accordance withSection 226.32 of Title 12 of the Code of Regulations and the relatedcommentary promulgated by the Federal Reserve Board. The APR is the fullyindexed rate or the initial rate, whichever is greater, at the time ofconsummation. The total loa