AMERIQUEST MORTGAGE SECURITIES INC.,
Depositor
AMERIQUEST MORTGAGE COMPANY,
Seller and Master Servicer
FEDERAL HOME LOAN MORTGAGE CORPORATION,
Guarantor of the Class A Certificates and Class S Certificates
and
DEUTSCHE BANK NATIONAL TRUST COMPANY
Trustee
POOLING AND SERVICING AGREEMENT
Dated as of December 1, 2002
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Ameriquest Mortgage Securities Inc., Series 2002-D
Asset-Backed Certificates
TABLE OF CONTENTS
ARTICLE I
DEFINITIONS
SECTION 1.01. Defined Terms...................................................................................1
SECTION 1.02. Accounting.....................................................................................38
SECTION 1.03. Allocation of Certain Shortfalls...............................................................38
SECTION 1.04. Rights of the NIMS Insurer.....................................................................39
ARTICLE II
CONVEYANCE OF MORTGAGE LOANS;
ORIGINAL ISSUANCE OF CERTIFICATES
SECTION 2.01. Conveyance of Mortgage Loans...................................................................40
SECTION 2.02. Acceptance of REMIC 1 by the Trustee...........................................................42
SECTION 2.03. Repurchase or Substitution of Mortgage Loans by the Seller; Payment of Master Servicer
Prepayment Charge Payment Amounts..............................................................43
SECTION 2.04. Representations, Warranties and Covenants of the Seller........................................46
SECTION 2.05. Representations, Warranties and Covenants of the Master Servicer...............................47
SECTION 2.06. Representations and Warranties of the Depositor................................................50
SECTION 2.07. Conveyance of Uncertificated REMIC Regular Interests and Acceptance of REMIC 1, REMIC 2,
REMIC 3 and REMIC 4 by the Trustee; Issuance of Certificates...................................51
SECTION 2.08. Conveyance of Subsequent Mortgage Loans........................................................52
ARTICLE III
ADMINISTRATION AND SERVICING OF THE TRUST FUND
SECTION 3.01. Master Servicer to Act as Master Servicer......................................................56
SECTION 3.02. Collection of Mortgage Loan Payments...........................................................57
SECTION 3.03. Notification of Adjustments....................................................................58
SECTION 3.04. Collection Account, Escrow Account and Distribution Account....................................58
SECTION 3.05. Permitted Withdrawals From the Collection Account, Escrow Account and Distribution
Account........................................................................................61
SECTION 3.06. Investment of Funds in the Collection Account, the Escrow Account, the REO Account and the
Distribution Account...........................................................................63
SECTION 3.07. Payment of Taxes, Insurance and Other Charges..................................................64
SECTION 3.08. Maintenance of Hazard Insurance................................................................64
SECTION 3.09. Maintenance of Mortgage Blanket Insurance Policy...............................................65
SECTION 3.10. Fidelity Bond, Errors and Omissions Insurance..................................................65
SECTION 3.11. Due-on-Sale Clauses; Assumption and Substitution Agreements....................................66
SECTION 3.12. Realization Upon Defaulted Mortgage Loans......................................................66
SECTION 3.13. Title, Management and Disposition of REO Property..............................................68
SECTION 3.14. REO Property Inspections.......................................................................70
SECTION 3.15. Reports of Foreclosure and Abandonment of Mortgaged Properties.................................70
SECTION 3.16. Optional Purchase of Defaulted Mortgage Loans by the NIMS Insurer or the Master Servicer.......71
SECTION 3.17. Trustee to Cooperate; Release of Files.........................................................71
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SECTION 3.18. Servicing Compensation.........................................................................72
SECTION 3.19. Annual Statement as to Compliance..............................................................73
SECTION 3.20. Annual Independent Certified Public Accountants' Reports.......................................73
SECTION 3.21. Access to Certain Documentation and Information Regarding the Mortgage Loans...................73
SECTION 3.22. Solicitations..................................................................................74
SECTION 3.23. Advance Facility...............................................................................75
SECTION 3.24. PMI Policy; Claims Under the PMI Policy........................................................75
ARTICLE IV
FLOW OF FUNDS
SECTION 4.01. Distributions..................................................................................77
SECTION 4.02. The Guarantee..................................................................................79
SECTION 4.03. Statements.....................................................................................79
SECTION 4.04. Master Servicer Remittance Reports; Advances and Prepayment Interest Shortfalls................83
SECTION 4.05. The Trustee Remittance Report..................................................................84
SECTION 4.06. Loan Data Remittance Report....................................................................85
SECTION 4.07. Compliance with Withholding....................................................................85
SECTION 4.08. Distributions on the Uncertificated REMIC Regular Interests....................................85
SECTION 4.09. Allocation of Principal Losses.................................................................88
SECTION 4.10. Pre-Funding Account............................................................................89
SECTION 4.11. Interest Coverage Accounts.....................................................................90
SECTION 4.12. Net WAC Rate Carryover Reserve Account.........................................................91
SECTION 4.13. Excess Net WAC Rate Reserve Account............................................................92
SECTION 4.14. Commission Reporting...........................................................................93
ARTICLE V
THE CERTIFICATES
SECTION 5.01. The Certificates...............................................................................95
SECTION 5.02. Registration of Transfer and Exchange of Certificates..........................................96
SECTION 5.03. Mutilated, Destroyed, Lost or Stolen Certificates..............................................99
SECTION 5.04. Persons Deemed Owners..........................................................................99
SECTION 5.05. Appointment of Paying Agent....................................................................99
ARTICLE VI
THE SELLER, THE MASTER SERVICER AND THE DEPOSITOR
SECTION 6.01. Liability of the Seller, the Master Servicer and the Depositor................................101
SECTION 6.02. Merger or Consolidation of, or Assumption of the Obligations of, the Seller, the Master
Servicer or the Depositor.....................................................................101
SECTION 6.03. Limitation on Liability of the Master Servicer and Others; Indemnification....................101
SECTION 6.04. Master Servicer Not to Resign.................................................................102
SECTION 6.05. Delegation of Duties..........................................................................102
SECTION 6.06. Subservicing Agreements and Successor Subservicer.............................................102
SECTION 6.07. Liability of the Master Servicer..............................................................103
SECTION 6.08. Inspection....................................................................................103
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ARTICLE VII
DEFAULT
SECTION 7.01. Master Servicer Events of Termination.........................................................104
SECTION 7.02. Trustee to Act; Appointment of Successor......................................................106
SECTION 7.03. Waiver of Defaults............................................................................107
SECTION 7.04. Notification to Certificateholders............................................................107
SECTION 7.05. Survivability of Master Servicer Liabilities..................................................107
SECTION 7.06. Rights of the Guarantor to Exercise Rights of Class A Certificateholders......................107
SECTION 7.07. Trustee to Act Solely with Consent of the Guarantor...........................................108
SECTION 7.08. Mortgage Loans, Trust Fund and Accounts Held for Benefit of the Guarantor.....................108
ARTICLE VIII
THE TRUSTEE
SECTION 8.01. Duties of Trustee.............................................................................109
SECTION 8.02. Certain Matters Affecting the Trustee.........................................................110
SECTION 8.03. Trustee Not Liable for Certificates or Mortgage Loans.........................................111
SECTION 8.04. Trustee May Own Certificates..................................................................112
SECTION 8.05. Trustee Fees and Expenses.....................................................................112
SECTION 8.06. Eligibility Requirements for Trustee..........................................................112
SECTION 8.07. Resignation or Removal of Trustee.............................................................112
SECTION 8.08. Successor Trustee.............................................................................113
SECTION 8.09. Merger or Consolidation of Trustee............................................................114
SECTION 8.10. Appointment of Co-Trustee or Separate Trustee.................................................114
SECTION 8.11. Limitation of Liability.......................................................................115
SECTION 8.12. Trustee May Enforce Claims Without Possession of Certificates.................................115
SECTION 8.13. Suits for Enforcement.........................................................................115
SECTION 8.14. Waiver of Bond Requirement....................................................................116
SECTION 8.15. Waiver of Inventory, Accounting and Appraisal Requirement.....................................116
ARTICLE IX
REMIC ADMINISTRATION
SECTION 9.01. REMIC Administration..........................................................................117
SECTION 9.02. Prohibited Transactions and Activities........................................................118
SECTION 9.03. Indemnification with Respect to Certain Taxes and Loss of REMIC Status........................119
ARTICLE X
TERMINATION
SECTION 10.01. Termination..........................................................................120
SECTION 10.02. Additional Termination Requirements..................................................121
ARTICLE XI
MISCELLANEOUS PROVISIONS
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SECTION 11.01. Amendment............................................................................123
SECTION 11.02. Recordation of Agreement; Counterparts...............................................124
SECTION 11.03. Limitation on Rights of Certificateholders...........................................124
SECTION 11.04. Governing Law; Jurisdiction..........................................................124
SECTION 11.05. Notices..............................................................................125
SECTION 11.06. Severability of Provisions...........................................................125
SECTION 11.07. Article and Section References.......................................................125
SECTION 11.08. Reserved.............................................................................125
SECTION 11.09. Further Assurances...................................................................125
SECTION 11.10. Benefits of Agreement................................................................125
SECTION 11.11. Acts of Certificateholders...........................................................126
SECTION 11.12. Third Party Rights...................................................................126
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EXHIBITS:
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Exhibit A-1 Form of Class AF Certificates
Exhibit A-2 Form of Class AV Certificates
Exhibit A-3 Form of Class S Certificates
Exhibit A-4 Form of Class M-1 Certificates
Exhibit A-5 Form of Class M-2 Certificates
Exhibit A-6 Form of Class CE Certificates
Exhibit A-7 Form of Class P Certificates
Exhibit A-8 Form of Class R Certificates
Exhibit B [Reserved]
Exhibit C Request for Release
Exhibit D-1 Form of Trustee's Initial Certification
Exhibit D-2 Form of Trustee's Final Certification
Exhibit D-3 Form of Receipt of Mortgage Note
Exhibit E Form of Mortgage Loan Purchase Agreement
Exhibit F Form of Lost Note Affidavit
Exhibit G Loss Mitigation Action Plan
Exhibit H Form of Investment Letter
Exhibit I Form of Class R Certificate Transfer Affidavit
Exhibit J Form of Transferor Certificate
Exhibit K Form of Liquidation Report
Exhibit L Ameriquest Mortgage Company Underwriting Guidelines
Exhibit M Form of Loan Data Remittance Report
Exhibit N Form of Trustee's Remittance Report
Exhibit O Form of Addition Notice
Exhibit P Form of Subsequent Transfer Instrument
Exhibit Q Form of ERISA Representation Letter
Exhibit R-1 Form of Certification to Be Provided by the Depositor with Form 10-K
Exhibit R-2 Form of Certification to Be Provided to Depositor by the Trustee
Exhibit S Form of Notice for Location of Accounts
SCHEDULE 1 Mortgage Loan Schedule
SCHEDULE 2 Prepayment Charge Schedule
SCHEDULE 3 PMI Mortgage Loans
This Pooling and Servicing Agreement is dated as of December
1, 2002 (the "Agreement"), among AMERIQUEST MORTGAGE SECURITIES INC., as
depositor (the "Depositor"), AMERIQUEST MORTGAGE COMPANY, as seller (in such
capacity, the "Seller") and Master Servicer (in such capacity, the "Master
Servicer"), FEDERAL HOME LOAN MORTGAGE CORPORATION, as guarantor of the Class A
Certificates and the Class S Certificates (the "Guarantor"), and DEUTSCHE BANK
NATIONAL TRUST COMPANY, as trustee (the "Trustee").
PRELIMINARY STATEMENT:
The Depositor intends to sell pass-through certificates
(collectively, the "Certificates"), to be issued hereunder in multiple classes,
which in the aggregate will evidence the entire beneficial ownership interest in
the Trust Fund created hereunder. The Certificates will consist of thirteen
classes of certificates, designated as (i) the Class AF Certificates, (ii) the
Class AV Certificates, (iii) the Class S Certificates, (iv) the Class M-1
Certificates, (v) the Class M-2 Certificates, (vi) the Class CE Certificates,
(vii) the Class P Certificates and (viii) the Class R Certificates.
REMIC 1
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As provided herein, the Trustee will make an election to treat
the segregated pool of assets consisting of the Group I Mortgage Loans, the
Group II Mortgage Loans, the PMI Policy and certain other related assets subject
to this Agreement (but exclusive of the Pre-Funding Accounts, the Interest
Coverage Accounts, the Net WAC Rate Carryover Reserve Account, the Master
Servicer Prepayment Charge Payment Amounts, the Excess Net WAC Rate Reserve
Account and any Subsequent Mortgage Loan Interest) as a real estate investment
conduit (a "REMIC") for federal income tax purposes, and such segregated pool of
assets will be designated as "REMIC 1." The Class R-1 Interest will represent
the sole class of "residual interests" in REMIC 1 for purposes of the REMIC
Provisions under federal income tax law. The following table irrevocably sets
forth the designation, the Uncertificated REMIC 1 Pass- Through Rate, the
initial Uncertificated Principal Balance, and solely for purposes of satisfying
Treasury regulation Section 1.860G-1(a)(4)(iii), the "latest possible maturity
date" for each of the REMIC 1 Regular Interests. None of the REMIC 1 Regular