SWISS RE FINANCIAL PRODUCTS CORPORATION New York, New York 10055 Fax: (917) 322-7201/Phone: (212) 407-7322

SWISS RE FINANCIAL PRODUCTS CORPORATION

00 Xxxx 00^xx Xxxxxx

Xxx Xxxx, Xxx Xxxx 00000

Fax: (000) 000-0000/Phone: (000) 000-0000

DATE:		August 31, 2007
TO:		Supplemental Interest Trust, Xxxxxx XS Trust Mortgage Pass-Through Certificates, Series 2007-16N c/o U.S. Bank, National Association Xxx Xxxxxxx Xxxxxx, 0xx Xxxxx Xxxxxx, XX 00000 ("Party B")
FROM:		Swiss Re Financial Products Corporation (“Party A”)
RE:		Interest Rate Cap Transaction

Dear Sir or Madam:

The purpose of this letter agreement (this “Confirmation”) is to confirm the terms and conditions of the transaction entered into between us on the Trade Date specified below (the “Transaction”).

The definitions and provisions contained in the 2000 ISDA Definitions as published by the International Swaps and Derivatives Association, Inc. are incorporated into this Confirmation. In the event of any inconsistency between those definitions and provisions and this Confirmation, this Confirmation will govern.

This Confirmation constitutes a “Confirmation” as referred to in, and supplements, forms part of and is subject to, the ISDA Master Agreement dated as of August 31, 2007, as amended and supplemented from time to time (the “Agreement”) between Party A and Party B. All provisions contained in the Agreement govern this Confirmation except as expressly modified below.

1. The Cap Transaction to which this Confirmation relates is a Rate Swap Transaction, the terms of which are as follow:

	General Terms
	Trade Date:		August 28, 2007
	Effective Date:		August 25, 2010
	Termination Date:		August 25, 2012, subject to adjustment in accordance with the Following Business Day Convention
	Notional Amount:		See Amortization Schedule, Schedule A
	Fixed Amounts:
	Fixed Rate Payer:		Party B
	Fixed Rate Payer Payment Dates:		August 31, 2007, subject to adjustment in accordance with the Following Business Day Convention.
	Fixed Amount:		USD 65,870; Xxxxxx Brothers Holdings Inc. (on behalf of Party B) shall pay to Party A the Fixed Amount on or prior to August 31, 2007. This Upfront Payment and the payment due on the same date under confirmation Ref. No. 1864746 (each between Party A and Party B) is reflected in the net amount of USD 1,499,130 payable to Xxxxxx Brothers Holdings Inc. (for the benefit of Party B) on the same date as reflected herein.
	Floating Amounts:
	Floating Rate Payer:		Party A
	Floating Rate Payer Period End Dates:		The 25th day of each month of each year, commencing on September 25, 2010 to and including the Termination Date, subject to adjustment in accordance with the Following Business Day Convention.
	Floating Rate Payer Payment Dates:		Early Payment, one (1) Business Day preceding each Floating Rate Payer Period End Date.
	Cap Rate:		With respect to each Calculation Period, as set out in Schedule A attached hereto.
	Floating Rate Option:		USD-LIBOR-BBA
	Designated Maturity:		One month
	Spread:		None
	Floating Rate Day Count Fraction:		Actual/360

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	Reset Dates:		The first day of each Calculation Period.
	Compounding:		Inapplicable
	Business Day:		Any day other than (i) a Saturday or a Sunday, or (ii) a day on which banking institutions in (1) the city in which the Corporate Trust Office of Party B is located or (2) the States of New York, Colorado or Illinois are closed.
2.	Procedural Terms:
	Calculation Agent:		Party A
	Offices:		The Office of Party A for the Swap Transaction is New York
	Account Details:
	Payments to Party A:		JPMorgan Chase Bank SWIFT: XXXXXX00 Account of: Swiss Re Financial Products Account No.: 066-911184 ABA# 000000000
	Payments to Party B:		U.S. Bank Corporate Trust Services ABA# 000-000-000 DDA# 000-000-000-000 Ref: LXS 2007-16N, Group 2 Interest Rate Cap Account Attn: X. Xxxxxx

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Please confirm that the foregoing correctly sets forth the terms and conditions of our agreement by executing this Confirmation and returning it to us by facsimile to:

Swiss Re Financial Products Corporation
Attention: Derivatives Documentation
Fax: (000) 000-0000 Phone: (000) 000-0000

SWISS RE FINANCIAL PRODUCTS CORPORATION

By:  

Authorized Signatory

Accepted and confirmed as of the Trade Date written above:

U.S. BANK NATIONAL ASSOCIATION, NOT IN ITS INDIVIDUAL CAPACITY BUT SOLELY AS TRUSTEE ON BEHALF OF THE TRUST, LEXHMAN XS TRUST MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2007-16N

By:

Name:

Title:

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SCHEDULE A to the Confirmation dated as of August 31, 2007,

Re: Reference Number 1864820

Amortization Schedule, subject to adjustment in accordance with the Following Business Day Convention

From and including		To but excluding			Notional Amount (USD)			Cap Rate
8/25/2010			9/25/2010			6,637,642.00			6.75	%
9/25/2010			10/25/2010			6,315,058.00			6.75	%
10/25/2010			11/25/2010			6,008,152.00			6.75	%
11/25/2010			12/25/2010			5,716,161.00			6.75	%
12/25/2010			1/25/2011			5,438,361.00			6.75	%
1/25/2011			2/25/2011			5,174,062.00			6.75	%
2/25/2011			3/25/2011			4,922,607.00			6.75	%
3/25/2011			4/25/2011			4,683,373.00			6.75	%
4/25/2011			5/25/2011			4,455,765.00			6.75	%
5/25/2011			6/25/2011			4,239,219.00			6.75	%
6/25/2011			7/25/2011			4,033,196.00			6.75	%
7/25/2011			8/25/2011			3,837,187.00			6.75	%
8/25/2011			9/25/2011			3,650,703.00			6.75	%
9/25/2011			10/25/2011			3,473,282.00			6.75	%
10/25/2011			11/25/2011			3,304,484.00			6.75	%
11/25/2011			12/25/2011			3,143,889.00			6.75	%
12/25/2011			1/25/2012			50,887,301.00			6.75	%
1/25/2012			2/25/2012			47,566,159.00			6.75	%
2/25/2012			3/25/2012			43,624,273.00			6.75	%
3/25/2012			4/25/2012			39,491,439.00			6.75	%
4/25/2012			5/25/2012			35,873,819.00			6.75	%
5/25/2012			6/25/2012			37,978,106.00			6.75	%
6/25/2012			7/25/2012			31,022,653.00			6.75	%
7/25/2012			8/25/2012			18,825,112.00			6.75	%

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