Common use of Fraud Coverage Clause in Contracts

Fraud Coverage. During the period prior to the first anniversary of the Cut-Off Date and with respect to Loan Group I and Loan Group II, 2.00% of the aggregate principal balance of the Group I and Group II Loans as of the Cut-Off Date (the "Initial Group I and Group II Fraud Coverage"), reduced by Fraud Losses allocated to the Group I-L, Group II- L and Group D-B-L Regular Interests and the Class R-1 and Class R-2 Certificates since the Cut-Off Date; during the period from the first anniversary of the Cut-Off Date to (but not including) the fifth anniversary of the Cut-Off Date, the amount of the Fraud Coverage for Loan Group I and Loan Group II on the most recent previous anniversary of the Cut-Off Date (calculated in accordance with the second sentence of this paragraph) reduced by Fraud Losses allocated to the Group I-L, Group II-L and Group D-B-L Regular Interests and the Class R-1 and Class R-2 Certificates since such anniversary; and during the period on and after the fifth anniversary of the Cut-Off Date, zero. On each anniversary of the Cut-Off Date, the Fraud Coverage for Loan Group I and Loan Group II shall be reduced to the lesser of (i) on the first, second, third and fourth anniversaries of the Cut-Off Date, 1.00% of the aggregate principal balance of the Group I and Group II Loans as of the Due Date in the preceding month and (ii) the excess of the Initial Group I and Group II Fraud Coverage over cumulative Fraud Losses allocated to the Group I-L, Group II-L and Group D-B-L Regular Interests and the Class R-1 and Class R-2 Certificates since the Cut-Off Date. During the period prior to the first anniversary of the Cut-Off Date and with respect to Loan Group III and Loan Group IV, 2.00% of the aggregate principal balance of the Group III and Group IV Loans as of the Cut-Off Date (the "Initial Group III and Group IV Fraud Coverage"), reduced by Fraud Losses allocated to the Group III-L, Group IV-L and Group C-B-L Regular Interests since the Cut-Off Date; during the period from the first anniversary of the Cut-Off Date to (but not including) the fifth anniversary of the Cut-Off Date, the amount of the Fraud Coverage for Loan Group III and Loan Group IV on the most recent previous anniversary of the Cut-Off Date (calculated in accordance with the second sentence of this paragraph) reduced by Fraud Losses allocated to the Group III-L, Group IV-L and Group C-B-L Regular Interests since such anniversary; and during the period on and after the fifth anniversary of the Cut-Off Date, zero. On each anniversary of the Cut- Off Date, the Fraud Coverage for Loan Group III and Loan Group IV shall be reduced to the lesser of (i) on the first, second, third and fourth anniversaries of the Cut-Off Date, 1.00% of the aggregate principal balance of the Group III and Group IV Loans as of the Due Date in the preceding month and (ii) the excess of the Initial Group III and Group IV Fraud Coverage over cumulative Fraud Losses allocated to the Group III-L, Group IV-L and Group C-B-L Regular Interests to date. The Fraud Coverage for Loan Group I and Loan Group II and the Fraud Coverage for Loan Group III and Loan Group IV may be reduced upon written confirmation from the Rating Agencies that such reduction will not adversely affect the then current ratings assigned to the Certificates by the Rating Agencies.

Fraud Coverage. During the period prior to the first anniversary of the Cut-Off Date and with respect to Loan Group I and Loan Group II, 2.00% of the aggregate principal balance of the Group I and Group II Loans as of the Cut-Off Date (the "“Initial Group I and Group II Fraud Coverage"”), reduced by Fraud Losses allocated to the Group I-L, Group II- L II and Group DC-B-L Regular Interests and the Class R-1 and Class R-2 B Certificates since the Cut-Off Date; during the period from the first anniversary of the Cut-Off Date to (but not including) the fifth anniversary of the Cut-Off Date, the amount of the Fraud Coverage for Loan Group I and Loan Group II on the most recent previous anniversary of the Cut-Off Date (calculated in accordance with the second sentence of this paragraph) reduced by Fraud Losses allocated to the Group I-L, Group II-L II and Group DC-B-L Regular Interests and the Class R-1 and Class R-2 B Certificates since such anniversary; and during the period on and after the fifth anniversary of the Cut-Off Date, zero. On each anniversary of the Cut-Off Date, the Fraud Coverage for Loan Group I and Loan Group II shall be reduced to the lesser of (i) on the first, second, third and fourth anniversaries of the Cut-Off Date, 1.00% of the aggregate principal balance of the Group I and Group II Loans as of the Due Date in the preceding month and (ii) the excess of the Initial Group I and Group II Fraud Coverage over cumulative Fraud Losses allocated to the Group I-L, Group II-L II and Group DC-B-L Regular Interests and the Class R-1 and Class R-2 B Certificates since the Cut-Off Date. During the period prior to the first anniversary of the Cut-Off Date and with respect to Loan Group III and Loan Group IVIII, 2.00% of the aggregate principal balance of the Group III and Group IV Loans as of the Cut-Off Date (the "“Initial Group III and Group IV Fraud Coverage"”), reduced by Fraud Losses allocated to the Group III-L, Group IV-L and Group C-B-L Regular Interests III Certificates since the Cut-Off Date; during the period from the first anniversary of the Cut-Off Date to (but not including) the fifth anniversary of the Cut-Off Date, the amount of the Fraud Coverage for Loan Group III and Loan Group IV on the most recent previous anniversary of the Cut-Off Date (calculated in accordance with the second sentence of this paragraph) reduced by Fraud Losses allocated to the Group III-L, Group IV-L and Group C-B-L Regular Interests III Certificates since such anniversary; and during the period on and after the fifth anniversary of the Cut-Off Date, zero. On each anniversary of the Cut- Cut-Off Date, the Fraud Coverage for Loan Group III and Loan Group IV shall be reduced to the lesser of (i) on the first, second, third and fourth anniversaries of the Cut-Off Date, 1.00% of the aggregate principal balance of the Group III and Group IV Loans as of the Due Date in the preceding month and (ii) the excess of the Initial Group III and Group IV Fraud Coverage over cumulative Fraud Losses allocated to the Group IIIIII Certificates since the Cut-L, Group IV-L and Group C-B-L Regular Interests to dateOff Date. The Fraud Coverage for Loan Group I and Loan Group II and the Fraud Coverage for Loan Group III and Loan Group IV may be reduced upon written confirmation from the Rating Agencies that such reduction will not adversely affect the then current ratings assigned to the related Certificates by the Rating Agencies.

Fraud Coverage. During the period prior to the first anniversary of the Cut-Off Date and with respect to Loan Group I and Loan Group IIIII, 2.001.00% of the aggregate principal balance of the Group I and Group II III Loans as of the Cut-Off Date (the "“Initial Group I and Group II III Fraud Coverage"”), reduced by Fraud Losses allocated to the Group I-L, Group II- L III and Group DC-B-L Regular Interests and the Class R-1 and Class R-2 B Certificates since the Cut-Off Date; during the period from the first anniversary of the Cut-Off Date to (but not including) the fifth anniversary of the Cut-Off Date, the amount of the Fraud Coverage for Loan Group I and Loan Group II III on the most recent previous anniversary of the Cut-Off Date (calculated in accordance with the second sentence of this paragraph) reduced by Fraud Losses allocated to the Group I-L, Group II-L III and Group DC-B-L Regular Interests and the Class R-1 and Class R-2 B Certificates since such anniversary; and during the period on and after the fifth anniversary of the Cut-Off Date, zero. On each anniversary of the Cut-Off Date, the Fraud Coverage for Loan Group I and Loan Group II III shall be reduced to the lesser of (i) on the firstfirst and second anniversaries of the Cut-Off Date, second1.00%, and on the third and fourth anniversaries of the Cut-Off Date, 1.000.50% of the aggregate principal balance of the Group I and Group II III Loans as of the Due Date in the preceding month and (ii) the excess of the Initial Group I and Group II III Fraud Coverage over cumulative Fraud Losses allocated to the Group I-L, Group II-L III and Group DC-B-L Regular Interests and the Class R-1 and Class R-2 B Certificates since the Cut-Off Date. During the period prior to the first anniversary of the Cut-Off Date and with respect to Loan Group III and Loan Group IVII, 2.001.00% of the aggregate principal balance of the Group III and Group IV II Loans as of the Cut-Off Date (the "“Initial Group III and Group IV II Fraud Coverage"”), reduced by Fraud Losses allocated to the Group III-L, Group IV-L and Group C-B-L Regular Interests II Certificates since the Cut-Off Date; during the period from the first anniversary of the Cut-Off Date to (but not including) the fifth anniversary of the Cut-Off Date, the amount of the Fraud Coverage for Loan Group III and Loan Group IV II on the most recent previous anniversary of the Cut-Off Date (calculated in accordance with the second sentence of this paragraph) reduced by Fraud Losses allocated to the Group III-L, Group IV-L and Group C-B-L Regular Interests II Certificates since such anniversary; and during the period on and after the fifth anniversary of the Cut-Off Date, zero. On each anniversary of the Cut- Cut-Off Date, the Fraud Coverage for Loan Group III and Loan Group IV II shall be reduced to the lesser of (i) on the firstfirst and second anniversaries of the Cut-Off Date, second1.00%, and on the third and fourth anniversaries of the Cut-Off Date, 1.000.50% of the aggregate principal balance of the Group III and Group IV II Loans as of the Due Date in the preceding month and (ii) the excess of the Initial Group III and Group IV II Fraud Coverage over cumulative Fraud Losses allocated to the Group IIIII Certificates since the Cut-L, Group IV-L and Group C-B-L Regular Interests to dateOff Date. The Fraud Coverage for Loan Group I and Loan Group II III and the Fraud Coverage for Loan Group III and Loan Group IV II may be reduced upon written confirmation from the Rating Agencies that such reduction will not adversely affect the then current ratings assigned to the related Certificates by the Rating Agencies.

Fraud Coverage. During the period prior to the first anniversary of the Cut-Off Date and with respect to Loan Group I and Loan Group II, 2.001.00% of the aggregate principal balance of the Group I and Group II Loans as of the Cut-Off Date (the "Initial Group I and Group II Fraud Coverage"), reduced by Fraud Losses allocated to the Group I-L, Group II- L II and Group DC-B-L Regular Interests and the Class R-1 and Class R-2 B Certificates since the Cut-Off Date; during the period from the first anniversary of the Cut-Off Date to (but not including) the fifth anniversary of the Cut-Off Date, the amount of the Fraud Coverage for Loan Group I and Loan Group II on the most recent previous anniversary of the Cut-Off Date (calculated in accordance with the second sentence of this paragraph) reduced by Fraud Losses allocated to the Group I-L, Group II-L II and Group DC-B-L Regular Interests and the Class R-1 and Class R-2 B Certificates since such anniversary; and during the period on and after the fifth anniversary of the Cut-Off Date, zero. On each anniversary of the Cut-Off Date, the Fraud Coverage for Loan Group I and Loan Group II shall be reduced to the lesser of (i) on the firstfirst and second anniversaries of the Cut-Off Date, second1.00%, and on the third and fourth anniversaries of the Cut-Off Date, 1.000.50% of the aggregate principal balance of the Group I and Group II Loans as of the Due Date in the preceding month and (ii) the excess of the Initial Group I and Group II Fraud Coverage over cumulative Fraud Losses allocated to the Group I-L, Group II-L II and Group DC-B-L Regular Interests and the Class R-1 and Class R-2 B Certificates since the Cut-Off Date. During the period prior to the first anniversary of the Cut-Off Date and with respect to Loan Group III and Loan Group IVIII, 2.001.00% of the aggregate principal balance of the Group III and Group IV Loans as of the Cut-Off Date (the "Initial Group III and Group IV Fraud Coverage"), reduced by Fraud Losses allocated to the Group III-L, Group IV-L and Group C-B-L Regular Interests III Certificates since the Cut-Off Date; during the period from the first anniversary of the Cut-Off Date to (but not including) the fifth anniversary of the Cut-Off Date, the amount of the Fraud Coverage for Loan Group III and Loan Group IV on the most recent previous anniversary of the Cut-Off Date (calculated in accordance with the second sentence of this paragraph) reduced by Fraud Losses allocated to the Group III-L, Group IV-L and Group C-B-L Regular Interests III Certificates since such anniversary; and during the period on and after the fifth anniversary of the Cut-Off Date, zero. On each anniversary of the Cut- Cut-Off Date, the Fraud Coverage for Loan Group III and Loan Group IV shall be reduced to the lesser of (i) on the firstfirst and second anniversaries of the Cut-Off Date, second1.00%, and on the third and fourth anniversaries of the Cut-Off Date, 1.000.50% of the aggregate principal balance of the Group III and Group IV Loans as of the Due Date in the preceding month and (ii) the excess of the Initial Group III and Group IV Fraud Coverage over cumulative Fraud Losses allocated to the Group IIIIII Certificates since the Cut-L, Group IV-L and Group C-B-L Regular Interests to dateOff Date. The Fraud Coverage for Loan Group I and Loan Group II and the Fraud Coverage for Loan Group III and Loan Group IV may be reduced upon written confirmation from the Rating Agencies that such reduction will not adversely affect the then current ratings assigned to the related Certificates by the Rating Agencies.

Fraud Coverage. During the period prior to the first anniversary of the Cut-Off Date and with respect to Loan Group I and Loan Group III, 2.00% of the aggregate principal balance of the Group I and Group II Loans as of the Cut-Off Date (the "Initial Group I and Group II Fraud Coverage"), reduced by Fraud Losses allocated to the Group I-L, Group II- L and Group D-B-L Regular Interests and the Class R-1 and Class R-2 Certificates since the Cut-Off Date; during the period from the first anniversary of the Cut-Off Date to (but not including) the fifth anniversary of the Cut-Off Date, the amount of the Fraud Coverage for Loan Group I and Loan Group II on the most recent previous anniversary of the Cut-Off Date (calculated in accordance with the second sentence of this paragraph) reduced by Fraud Losses allocated to the Group I-L, Group II-L and Group D-B-L Regular Interests and the Class R-1 and Class R-2 Certificates since such anniversary; and during the period on and after the fifth anniversary of the Cut-Off Date, zero. On each anniversary of the Cut-Off Date, the Fraud Coverage for Loan Group I and Loan Group II shall be reduced to the lesser of (i) on the first, second, third and fourth anniversaries of the Cut-Off Date, 1.00% of the aggregate principal balance of the Group I and Group II Loans as of the Due Date in the preceding month and (ii) the excess of the Initial Group I and Group II Fraud Coverage over cumulative Fraud Losses allocated to the Group I-L, Group II-L and Group D-B-L Regular Interests and the Class R-1 and Class R-2 Certificates since the Cut-Off Date. During the period prior to the first anniversary of the Cut-Off Date and with respect to Loan Group III and Loan Group IV, 2.00% of the aggregate principal balance of the Group III and Group IV Loans as of the Cut-Off Date (the "Initial Group III and Group IV Fraud Coverage"), reduced by Fraud Losses allocated to the Group III-L, Group IV-L and Group C-B-L Regular Interests since the Cut-Off Date; during the period from the first anniversary of the Cut-Off Date to (but not including) the fifth anniversary of the Cut-Off Date, the amount of the Fraud Coverage for Loan Group III and Loan Group IV I on the most recent previous anniversary of the Cut-Off Date (calculated in accordance with the second sentence of this paragraph) reduced by Fraud Losses allocated to the Group III-L, Group IV-L and Group C-BI-L Regular Interests since such anniversary; and during the period on and after the fifth anniversary of the Cut-Off Date, zero. On each anniversary of the Cut- Cut-Off Date, the Fraud Coverage for Loan Group III and Loan Group IV I shall be reduced to the lesser of (i) on the first, second, third and fourth anniversaries of the Cut-Off Date, 1.00% of the aggregate principal balance of the Group III and Group IV I Loans as of the Due Date in the preceding month and (ii) the excess of the Initial Group III and Group IV I Fraud Coverage over cumulative Fraud Losses allocated to the Group III-L, Group IV-L and Group C-BI-L Regular Interests since the Cut-Off Date. During the period prior to datethe first anniversary of the Cut-Off Date and with respect to Loan Group II, 3.00% of the aggregate principal balance of the Group II Loans as of the Cut-Off Date (the "Initial Group II Fraud Coverage"), reduced by Fraud Losses allocated to the Group II-L Regular Interests since the Cut-Off Date; during the period from the first anniversary of the Cut-Off Date to (but not including) the fifth anniversary of the Cut-Off Date, the amount of the Fraud Coverage for Loan Group II on the most recent previous anniversary of the Cut-Off Date (calculated in accordance with the second sentence of this paragraph) reduced by Fraud Losses allocated to the Group II-L Regular Interests since such anniversary; and during the period on and after the fifth anniversary of the Cut-Off Date, zero. On each anniversary of the Cut-Off Date, the Fraud Coverage for Loan Group II shall be reduced to the lesser of (i) on the first anniversary of the Cut-Off Date, 2.00%, and on the second, third and fourth anniversaries of the Cut-Off Date, 1.00% of the aggregate principal balance of the Group II Loans as of the Due Date in the preceding month and (ii) the excess of the Initial Group II Fraud Coverage over cumulative Fraud Losses allocated to the Group II-L Regular Interests since the Cut-Off Date. The Fraud Coverage for Loan Group I and Loan Group II and the Fraud Coverage for Loan Group III and Loan Group IV II may be reduced upon written confirmation from the Rating Agencies that such reduction will not adversely affect the then current ratings assigned to the Certificates by the Rating AgenciesAgencies (determined in the case of the Insured Certificates, without giving effect to the Certificate Insurance Policy).

Fraud Coverage. During the period prior to the first anniversary of the Cut-Off Date and with respect to Loan Group I and Loan Group IIDate, 2.001.00% of the aggregate principal balance of the Group I and Group II Mortgage Loans as of the Cut-Off Date (the "Initial Group I and Group II Fraud Coverage"), reduced by Fraud Losses allocated to the Group I-L, Group II- L and Group D-B-L REMIC II Regular Interests and the Class R-1 and Class R-2 Certificates since the Cut-Off Date; during the period from the first anniversary of the Cut-Off Date to (but not including) the fifth anniversary of the Cut-Off Date, the amount of the Fraud Coverage for Loan Group I and Loan Group II on the most recent previous anniversary of the Cut-Off Date (calculated in accordance with the second sentence of this paragraph) reduced by Fraud Losses allocated to the Group I-L, Group II-L and Group D-B-L REMIC II Regular Interests and the Class R-1 and Class R-2 Certificates since such anniversary; and during the period on and after the fifth anniversary of the Cut-Off Date, zero. On each anniversary of the Cut-Off Date, the Fraud Coverage for Loan Group I and Loan Group II shall be reduced to the lesser of (i) on the firstfirst and second anniversaries of the Cut-Off Date, second1.00%, and on the third and fourth anniversaries of the Cut-Off Date, 1.00% 0.50%, of the aggregate principal balance of the Group I and Group II Mortgage Loans as of the Due Date in the preceding month and (ii) the excess of the Initial Group I and Group II Fraud Coverage over cumulative Fraud Losses allocated to the Group I-L, Group II-L and Group D-B-L REMIC II Regular Interests and the Class R-1 and Class R-2 Certificates since the Cut-Off Date. During the period prior to the first anniversary of the Cut-Off Date and with respect to Loan Group III and Loan Group IV, 2.00% of the aggregate principal balance of the Group III and Group IV Loans as of the Cut-Off Date (the "Initial Group III and Group IV Fraud Coverage"), reduced by Fraud Losses allocated to the Group III-L, Group IV-L and Group C-B-L Regular Interests since the Cut-Off Date; during the period from the first anniversary of the Cut-Off Date to (but not including) the fifth anniversary of the Cut-Off Date, the amount of the Fraud Coverage for Loan Group III and Loan Group IV on the most recent previous anniversary of the Cut-Off Date (calculated in accordance with the second sentence of this paragraph) reduced by Fraud Losses allocated to the Group III-L, Group IV-L and Group C-B-L Regular Interests since such anniversary; and during the period on and after the fifth anniversary of the Cut-Off Date, zero. On each anniversary of the Cut- Off Date, the Fraud Coverage for Loan Group III and Loan Group IV shall be reduced to the lesser of (i) on the first, second, third and fourth anniversaries of the Cut-Off Date, 1.00% of the aggregate principal balance of the Group III and Group IV Loans as of the Due Date in the preceding month and (ii) the excess of the Initial Group III and Group IV Fraud Coverage over cumulative Fraud Losses allocated to the Group III-L, Group IV-L and Group C-B-L Regular Interests to date. The Fraud Coverage for Loan Group I and Loan Group II and the Fraud Coverage for Loan Group III and Loan Group IV may be reduced upon written confirmation from the Rating Agencies that such reduction will not adversely affect the then current ratings assigned to the Certificates by the Rating AgenciesAgencies (determined in the case of the Insured Certificates, without giving effect to the Certificate Insurance Policy).

Fraud Coverage. During the period prior to the first anniversary of the Cut-Off Date and with respect to Loan Group I and Loan Group II, 2.001.00% of the aggregate principal balance of the Group I and Group II Loans as of the Cut-Off Date (the "Initial Group I and Group II Fraud Coverage"), reduced by Fraud Losses allocated to the Group I-L, Group II- II-L and Group DC- X-B-L X Regular Interests and the Class R-1 and Class R-2 Certificates since the Cut-Off Date; during the period from the first anniversary of the Cut-Cut- Off Date to (but not including) the fifth anniversary of the Cut-Off Date, the amount of the Fraud Coverage for Loan Group I and Loan Group II on the most recent previous anniversary of the Cut-Off Date (calculated in accordance with the second sentence of this paragraph) reduced by Fraud Losses allocated to the Group I-L, Group II-L and Group DC-B-L Regular Interests and the Class R-1 and Class R-2 Certificates since such anniversary; and during the period on and after the fifth anniversary of the Cut-Off Date, zero. On each anniversary of the Cut-Off Date, the Fraud Coverage for Loan Group I and Loan Group II shall be reduced to the lesser of (i) on the firstfirst and second anniversaries of the Cut-Off Date, second1.00%, and on the third and fourth anniversaries of the Cut-Off Date, 1.00% 0.50%, of the aggregate principal balance of the Group I and Group II Loans as of the Due Date in the preceding month and (ii) the excess of the Initial Group I and Group II Fraud Coverage over cumulative Fraud Losses allocated to the Group I-L, Group II-L and Group DC-B-L Regular Interests and the Class R-1 and Class R-2 Certificates since the Cut-Off Date. During the period prior to the first anniversary of the Cut-Off Date and with respect to Loan Group III and Loan Group IV, 2.00% of the aggregate principal balance of the Group III and Group IV Loans as of the Cut-Off Date (the "Initial Group III and Group IV Fraud Coverage"), reduced by Fraud Losses allocated to the Group III-L, Group IV-L and Group CD-B-L Regular Interests since the Cut-Off Date; during the period from the first anniversary of the Cut-Off Date to (but not including) the fifth anniversary of the Cut-Off Date, the amount of the Fraud Coverage for Loan Group III and Loan Group IV on the most recent previous anniversary of the Cut-Off Date (calculated in accordance with the second sentence of this paragraph) reduced by Fraud Losses allocated to the Group III-L, Group IV-L and Group CD-B-L Regular Interests since such anniversary; and during the period on and after the fifth anniversary of the Cut-Off Date, zero. On each anniversary of the Cut- Cut-Off Date, the Fraud Coverage for Loan Group III and Loan Group IV shall be reduced to the lesser of (i) on the first, second, third and fourth anniversaries of the Cut-Off Date, 1.00% of the aggregate principal balance of the Group III and Group IV Loans as of the Due Date in the preceding month and (ii) the excess of the Initial Group III and Group IV Fraud Coverage over cumulative Fraud Losses allocated to the Group III-L, Group IV-L and Group CD-B-L Regular Interests to date. The Fraud Coverage for Loan Group I and Loan Group II and the Fraud Coverage for Loan Group III and Loan Group IV may be reduced upon written confirmation from the Rating Agencies that such reduction will not adversely affect the then current ratings assigned to the Certificates by the Rating Agencies.

Fraud Coverage. During the period prior to the first anniversary of the Cut-Off Date and with respect to Loan Group I and Loan Group IIIII, 2.00% of the aggregate principal balance of the Group I and Group II III Loans as of the Cut-Off Date (the "Initial Group I and Group II III Fraud Coverage"), reduced by Fraud Losses allocated to the Group I-L, Group II- L and III, Group DC-B-L Regular Interests and the , Class R-1 and Class R-2 Certificates since the Cut-Off Date; during the period from the first anniversary of the Cut-Off Date to (but not including) the fifth anniversary of the Cut-Off Date, the amount of the Fraud Coverage for Loan Group I and Loan Group II III on the most recent previous anniversary of the Cut-Off Date (calculated in accordance with the second sentence of this paragraph) reduced by Fraud Losses allocated to the Group I-L, Group II-L and III, Group DC-B-L Regular Interests and the , Class R-1 and Class R-2 Certificates since such anniversary; and during the period on and after the fifth anniversary of the Cut-Off Date, zero. On each anniversary of the Cut-Off Date, the Fraud Coverage for Loan Group I and Loan Group II III shall be reduced to the lesser of (i) on the first, second, third and fourth anniversaries of the Cut-Off Date, 1.00% of the aggregate principal balance of the Group I and Group II III Loans as of the Due Date in the preceding month and (ii) the excess of the Initial Group I and Group II III Fraud Coverage over cumulative Fraud Losses allocated to the Group I-L, Group II-L and III, Group DC-B-L Regular Interests and the , Class R-1 and Class R-2 Certificates since the Cut-Off Date. During the period prior to the first anniversary of the Cut-Off Date and with respect to Loan Group III and Loan Group IVII, 2.00% of the aggregate principal balance of the Group III and Group IV II Loans as of the Cut-Off Date (the "Initial Group III and Group IV II Fraud Coverage"), reduced by Fraud Losses allocated to the Group III-L, Group IV-L II and Group C-B-L Regular Interests II- B Certificates since the Cut-Off Date; during the period from the first anniversary of the Cut-Off Date to (but not including) the fifth anniversary of the Cut-Off Date, the amount of the Fraud Coverage for Loan Group III and Loan Group IV II on the most recent previous anniversary of the Cut-Off Date (calculated in accordance with the second sentence of this paragraph) reduced by Fraud Losses allocated to the Group III-L, Group IV-L II and Group CII-B-L Regular Interests B Certificates since such anniversary; and during the period on and after the fifth anniversary of the Cut-Off Date, zero. On each anniversary of the Cut- Off Date, the Fraud Coverage for Loan Group III and Loan Group IV II shall be reduced to the lesser of (i) on the first, second, third and fourth anniversaries of the Cut-Off Date, 1.00% of the aggregate principal balance of the Group III and Group IV II Loans as of the Due Date in the preceding month and (ii) the excess of the Initial Group III and Group IV II Fraud Coverage over cumulative Fraud Losses allocated to the Group III-L, Group IV-L II and Group CII-B-L Regular Interests B Certificates to date. The Fraud Coverage for Loan Group I and Loan Group II III and the Fraud Coverage for Loan Group III and Loan Group IV II may be reduced upon written confirmation from the Rating Agencies that such reduction will not adversely affect the then current ratings assigned to the Certificates by the Rating Agencies.

Fraud Coverage. During the period prior to the first anniversary of the Cut-Off Date and with respect to Loan Group I I, Loan Group III and Loan Group IIIV, 2.001.00% of the aggregate principal balance of the Group I I, Group III and Loan Group II IV Loans as of the Cut-Off Date (the "Initial Group I I, Group III and Group II IV Fraud Coverage"), reduced by Fraud Losses allocated to the Group I-L, Group II- L and Group D-B-L Regular Interests and the Class R-1 and Class R-2 Certificates since the Cut-Off Date; during the period from the first anniversary of the Cut-Off Date to (but not including) the fifth anniversary of the Cut-Off Date, the amount of the Fraud Coverage for Loan Group I and Loan Group II on the most recent previous anniversary of the Cut-Off Date (calculated in accordance with the second sentence of this paragraph) reduced by Fraud Losses allocated to the Group I-L, Group II-L and Group D-B-L Regular Interests and the Class R-1 and Class R-2 Certificates since such anniversary; and during the period on and after the fifth anniversary of the Cut-Off Date, zero. On each anniversary of the Cut-Off Date, the Fraud Coverage for Loan Group I and Loan Group II shall be reduced to the lesser of (i) on the first, second, third and fourth anniversaries of the Cut-Off Date, 1.00% of the aggregate principal balance of the Group I and Group II Loans as of the Due Date in the preceding month and (ii) the excess of the Initial Group I and Group II Fraud Coverage over cumulative Fraud Losses allocated to the Group I-L, Group II-L and Group D-B-L Regular Interests and the Class R-1 and Class R-2 Certificates since the Cut-Off Date. During the period prior to the first anniversary of the Cut-Off Date and with respect to Loan Group III and Loan Group IV, 2.00% of the aggregate principal balance of the Group III and Group IV Loans as of the Cut-Off Date (the "Initial Group III and Group IV Fraud Coverage"), reduced by Fraud Losses allocated to the Group III-L, Group IV-L and L, Group C-B-L, Class A-P-L and Class A-X-L Regular Interests since the Cut-Off Date; during the period from the first anniversary of the Cut-Off Date to (but not including) the fifth anniversary of the Cut-Off Date, the amount of the Fraud Coverage for Loan Group I, Loan Group III and Loan Group IV on the most recent previous anniversary of the Cut-Off Date (calculated in accordance with the second sentence of this paragraph) reduced by Fraud Losses allocated to the Group I-L, Group III-L, Group IV-L and L, Group C-B-L, Class A-P-L and Class A-X-L Regular Interests since such anniversary; and during the period on and after the fifth anniversary of the Cut-Off Date, zero. On each anniversary of the Cut- Cut-Off Date, the Fraud Coverage for Loan Group I, Loan Group III and Loan Group IV shall be reduced to the lesser of (i) on the first and second anniversaries of the Cut-Off Date, 1.00%, and on the third and fourth anniversaries of the Cut-Off Date, 0.50% of the aggregate principal balance of the Group I, Group III and Group IV Loans as of the Due Date in the preceding month and (ii) the excess of the Initial Group I, Group III and Group IV Fraud Coverage over cumulative Fraud Losses allocated to the Group I-L, Group III-L, Group IV-L, Group C-B-L, Class A-P-L and Class A-X-L Regular Interests since the Cut-Off Date. During the period prior to the first anniversary of the Cut-Off Date and with respect to Loan Group II, 2.00% of the aggregate principal balance of the Group II Loans as of the Cut-Off Date (the "Initial Group II Fraud Coverage"), reduced by Fraud Losses allocated to the Group II-L Regular Interests since the Cut-Off Date; during the period from the first anniversary of the Cut-Off Date to (but not including) the fifth anniversary of the Cut-Off Date, the amount of the Fraud Coverage for Loan Group II on the most recent previous anniversary of the Cut-Off Date (calculated in accordance with the second sentence of this paragraph) reduced by Fraud Losses allocated to the Group II-L Regular Interests since such anniversary; and during the period on and after the fifth anniversary of the Cut-Off Date, zero. On each anniversary of the Cut-Off Date, the Fraud Coverage for Loan Group II shall be reduced to the lesser of (i) on the first, second, third and fourth anniversaries of the Cut-Off Date, 1.00% of the aggregate principal balance of the Group III and Group IV II Loans as of the Due Date in the preceding month and (ii) the excess of the Initial Group III and Group IV II Fraud Coverage over cumulative Fraud Losses allocated to the Group III-L, Group IV-L and Group C-BII-L Regular Interests to datesince the Cut-Off Date. The Fraud Coverage for Loan Group I I, Loan Group III and Loan Group II IV and the Fraud Coverage for Loan Group III and Loan Group IV II may be reduced upon written confirmation from the Rating Agencies that such reduction will not adversely affect the then current ratings assigned to the Certificates by the Rating Agencies.