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					Chotin Asset Management Corporation
Overview
   ●   Chotin Asset Management Corporation (“CAMCO") is an affiliate of The Chotin Group Corporation ("TCG")
       and encompasses all of the asset management functions of the firm.

   ●   TCG, a privately held company, has been in business for 20 years and has been actively involved in
       structured debt financings and asset securitization primarily for its own account. TCG has been a key player
       in the more credit sensitive subordinate and residual real estate security markets.

   ●   TCG and affiliated companies have extensive experience analyzing, acquiring, and managing significant
       portfolios of structured product assets including CMO, MBS, and various other credit-sensitive ABS in all
       market environments, generally with a "hold-to-maturity" strategy.

   ●   CAMCO’s investment process is a bottom-up team approach with a commitment to quantitative analysis,
       risk management and pre/post acquisition surveillance.

   ●   Through National Mortgage Corporation ("NMC") (an affiliated company) TCG originated over $1 billion of
       nonconforming mortgage loans from 1991 to 1999.

   ●   Through its FAIC and FAIC II shelves, TCG securitized and structured in excess of $4 billion of NMC-
       originated and third party loans.

   ●   CAMCO’s subsidiary Chotin Fund Management Corporation (“CFMC”) is the collateral manager of ten ABS
       CDOs.




                                                                 1               Chotin Asset Management Corporation
History of The Chotin Group
Prior to 1984 Mr. Chotin founded American Southwest Financial Services, the f irst-mortgage conduit comprised of eighty-eight
              homebuilders across the country.

              Founded and became President of Home American Mortgage Corporation, a captive mortgage origination company
              which f acilitated activities between MDC Holdings and American Southwest Financial Services.

              Aided in the successf ul congressional approval of SMMEA (“Secondary Mortgage Market Enhancement Act”), which
              allowed the private sector to issue mortgage-backed securities using government guarantees.
1984          Founder The Chotin Group Corporation

              With the formation of The Chotin Group, Mr. Chotin f acilitated the securitization of a variety of structured f inance
              products for clients such as savings and loans, homebuilders and pension f unds.
1989          In the late 1980s, Mr. Chotin identif ied the need f or new securitization structures to f acilitate the placement of residual
              interests, which were previously held by savings and loans.

              Mr. Chotin created Fund America Ventures Corporation (FAVC) to purchase those residual interests. FAVC ultimately
              was expanded to include substantial holdings in all classes of RMBS with particular f ocus on subordinate securities.
1991          Mr. Chotin acquired National Mortgage Corporation (NMC), which was a prime residential mortgage servicer. He
              developed NMC into a nationwide sub-prime lending and servicing platform. NMC securitized a portion of the loans it
              originated through the Fund America Investor shelves. NMC also sold assets when economics warranted doing so.
              NMC was closed in 1999.
1996          FAVC issued a re-securitization of subordinate securities.
2002          Mr. Chotin decided to focus the f irm’s business activities on third party asset management through Chotin Asset
              Management Corporation (CAMCO).
2004          CFMC issued its f irst two CDOs, Saturn Ventures 2004 – Fund America Investors III, Ltd., and Mercury CDO 2004-1
2005          CFMC issued three CDOs, Neptune CDO 2004-1, Neptune CDO II, and Mercury CDO II, bringing the notional asset
              issuance up to $2.85 billion.
2006          CFMC issued two CDOs, Neptune CDO III, and Mercury CDO III, bringing the notional asset issuance up to $4.25
              billion.
2007          As of June, CFMC is the manager of three new CDOs, Neptune CDO IV, Neptune CDO V and Mars CDO I, it’s f irst
              CDO of CDO’s, bringing its total CDO issuance up to $6.2 billion across ten CDOs.



                                                                            2                  Chotin Asset Management Corporation
  CDO Issuance


In 2003, TCG through CFMC extended its core competencies of credit analysis and financial
structuring to establish itself as a value added investor and asset manager of multi -sector CDOs of
ABS


 CFMC cash-flow CDOs under management

Issuer                                              Type                  Notional $(mm) Closing Date
Saturn Ventures 2004-Fund America Investors III   Mezzanine ABS CDO                      400.0    April 2004

Mercury CDO 2004-1                                High Grade ABS CDO                     750.0    November 2004

Neptune CDO 2004-1                                Mezzanine ABS CDO                      400.0    January 2005

Neptune CDO II                                    Mezzanine ABS CDO                      300.0    July 2005

Mercury CDO II                                    High Grade ABS CDO                   1,000.0    December 2005

Neptune CDO III                                   Mezzanine ABS CDO                      400.0    March 2006

Mercury CDO III                                   High Grade ABS CDO                   1,000.0    May 2006

Neptune CDO IV                                    Mezzanine ABS CDO                    1,000.0    March 2007

Mars CDO I                                        Synthetic CDO of CDOs                  600.0    April 2007

Neptune CDO V                                     Mezzanine ABS CDO                      350.0    June 2007

Total                                                                                  6,200.0




                                                                3           Chotin Asset Management Corporation
Organizational Chart




                       4   Chotin Asset Management Corporation
Investment Philosophy



 CAMCO’s Investment Objectives:

       ●   Create products backed by a well-diversified pool of quality assets, with the assets selected for their
           long-term potential to generate superior risk-adjusted returns

       ●   Focus on real estate ABS, primarily residential MBS and ABS CDOs

       ●   Bottom-up approach to asset selection

                Rigorous analytical approach applied by team

                Collateral and deal structure paramount

                Macro economic overview helps identify troubled sectors
                Investment Committee approves all purchases




                                                                  5                Chotin Asset Management Corporation
Structured Finance Process

    ●   Asset Selection
             Bottom-up credit focus
             Pool and loan level data used to estimate default and loss probabilities
                    Indices database monitored for relative performance comparison
             Cash flow modeling under multiple interest rate and prepayment scenarios
             Mortgage originator and servicer due diligence and review
             Constant monitoring of performance against initial expectations
    ●   Surveillance & Monitoring
             Assets are monitored for collateral performance, structural features performance and relative
              performance against appropriate cohorts:
                    OC growth, stagnation or deterioration
                    Losses exceeding excess interest
                    “DPIPE”, a classic delinquency analysis
                    Step-Down trigger analysis
                    Assets ranked monthly based on relative performance versus proprietary indices
                    Rating agency action monitored
             Monthly and quarterly trustee reports are reconciled against asset-level cash flows and
              performance levels.




                                                              6                 Chotin Asset Management Corporation
Structured Finance Process




                             •Cash Flow Structure
                             •Performance Stress Runs
           Deal Structure       • Defaults
                                • Loss Severity
                                • Prepayments
                                • Interest Rates




                            Originator,                 •Evaluate Underwriting Guidelines
                             Servicer,                  •Historical Performance
                             Manager                    •Diligence Call and/or Visit
                                                        •Ratings




                                          7             Chotin Asset Management Corporation
 Structured Finance Process Cont’d

Structure and collateral complexion drives asset selection from the bottom-up




   Collateral
 Characteristics                                                           Proactive Loss Mitigation
                                                                                                                CDO Surveillance
                                                                                                                  & Monitoring
                                                                                                                Ratings Tests
                                                                                                                Compliance Tests
                                                                                                                Quality Tests

  Deal Structure                                                         CDO
                                     Analytics        Purchase
                                                                        Portfolio                                Asset & Collateral
                                                                                                                      Review
                                                                                                                 Delinquency
                                                                                                                  Performance
                                                                                                                 Ratings Migration
   Originator,                                                                                                   Pricing
    Servicer,                                                                                                     Surveillance
    Manager                                           Information used to enhance analytics




                                                               8                Chotin Asset Management Corporation
     A Tale of Two Mortgage Pools, Same Dealer Shelf

      •       Bond #1 - Issued July 2004                                                        •       Bond #2 - Issued June 2004
      •       New Century originated collateral                                                 •       Argent collateral, Ameriquest wholesale
      •       Avg. FICO 616                                                                     •       Avg. FICO 620
      •       Baa3/BBB-                                                                         •       Baa3/No S&P Rating
      •       Initial Total Support: 3.40%                                                      •       Initial Total Support: 3.55%

          Positive Attributes                                                                       Positive Attributes

               FICO < 550: 16.6%                                                                        Avg. FICO: 620 (FICO < 550: 11%)
               Avg. LTV: 79%                                                                            100% 1st Lien
               98% 1st Lien                                                                             63% Full Documentation
               10% IOs                                                                                  No IOs
               6.5% Investor Loans
               Avg. Loan Size: $167k
                                                                                                    Negative Attributes
               3% IL; 3% MI; <2% OH; <2% IN
                                                                                                         Avg. LTV: 87% (LTVs > 90%: 30%)
                                                                                                         27% Investor Loans
          Negative Attributes
                                                                                                         8% IL; 7% MI; 7% OH; 6% IN
               64% Cash Out Refinance
               42% Reduced Documentation                                                                Avg. Loan Size: $78k (55% < $100k )
               Small Servicer (Saxon)




Note: The information above is historical and represents the attributes of a particular investment we made. It should not be considered to be indicative of our possible future
investments, nor should it be extrapolated to be indicative of our possible future performance, each of which could differ significantly.

 ____________________
 Source: The Chotin Group Corporation. As of July, 2004.




                                                                                            9                      Chotin Asset Management Corporation
CAMCO invested in Bond #1 and rejected Bond #2
Bond #1
Scenario Name                        BASE                 FAST CASE      SLOW CASE         STRESS              STRESS               STRESS              STRESS

Forward Rate Shock                   0                    0              0                 -50                 50                   -100                100
(bps)
Prepay Rate                          Pricing              125% Pricing   75% Pricing       Pricing             Pricing              Pricing             Pricing

Def ault Severity                    50%                  50%            50%               50%                 50%                  50%                 50%

Breakeven Loss                       8.75                 5.46           10.42             9.17                7.02                 9.56                6.83

Expected Loss (%)                    4.50                 4.50           4.50              4.50                4.50                 4.50                4.50

Coverage Ratio                       1.94                 1.21           2.32              2.04                1.56                 2.12                1.52


Bond #2
Scenario Name                            BASE             FAST CASE      SLOW CASE          STRESS              STRESS               STRESS               STRESS

Forward Rate Shock (bps)                 0                0              0                  -50                 50                   -100                 100

Prepay Rate                              Pricing          125% Pricing   75% Pricing        Pricing             Pricing              Pricing              Pricing

Def ault Severity                        80%              80%            80%                80%                 80%                  80%                  80%

Breakeven Loss                           11.27            8.73           13.58              11.68               10.86                12.09                10.4

Expected Loss (%)                        9.00             9.00           9.00               9.00                9.00                 9.00                 9.00

Coverage Ratio                           1.25             0.97           1.51               1.30                1.21                 1.34                 1.16


Note: The information above is historical and represents the attributes of a particular investment we made. It should not be considered to be indicative of our possible future
investments, nor should it be extrapolated to be indicative of our possible future performance, each of which could differ significantly.
____________________
Source: The Chotin Group Corporation. As of July, 2004.

                                                                                         10                    Chotin Asset Management Corporation
Was CAMCO right?

  Performance to Date:



   Bond #1                                                                               Bond #2



              Cumulative losses:                       .71%                                        Cumulative losses:                    6.50%

              REO:                                     3.79%                                       REO:                                  6.40%

              60+ Delinquency:                         1.96%                                       60+ Delinquency:                      5.30%

              No Change in Ratings (Baa3/BBB-)                                                     Moody’s Downgrade from (Baa3/BBB-) to (B3/B-)




  Through both a quantitative and qualitative analysis,
  we steered clear of the sub-performing asset.




   Note: The information above is historical and represents the attributes of a particular investment we made. It should not be considered to be
   indicative of our possible future investments, nor should it be extrapolated to be indicative of our possible future performance, each of which could
   differ significantly.
   ____________________
   Source: The Chotin Group Corporation. As of May 25, 2007, Remittance Report.




                                                                                   11                     Chotin Asset Management Corporation
Biographies




       12     Chotin Asset Management Corporation
Biographies

  Steven B. Chotin                           Mr. Chotin f ounded The Chotin Group Corporation in 1984 as a f irm specializing in asset securitization
  Founder and Chairman                        and structured f inancings. In subsequent years Mr. Chotin created a group of af filiates to invest in a
                                              variety of asset classes and to provide securitization services to the investment banking community.
                                              He served as Senior Vice President of MDC Corporation (NYSE: "MDC"), where he played a primary
                                              role in the f ormation of American Southwest Financial Corporation, one of the f irst mortgage banking
                                              conduits serving participants nationwide. Mr. Chotin also created Home American Mortgage
                                              Corporation, a f ull-service mortgage banking operation f or MDC.




  Helen M. Dickens                           Ms. Dickens is responsible f or strategic planning and implementation of all structured f inance and
  President and Chief Operating Officer       operational activities. She joined Chotin in 1989 as manager of accounting and was promoted to Chief
                                              Operating Of f icer in 1995, and to President in 2002. She has managed all phases of the asset
                                              securitization process as well as securities trading and operations. Prior to joining Chotin, Ms. Dickens
                                              was Corporate Secretary of Uniwest Financial Corporation, a savings and loan holding company with
                                              13 branches. She was responsible f or accounting, human resources and shareholder relations. Ms.
                                              Dickens holds a Bachelor of Science degree in Accounting f rom Metropolitan State College.




  Zachary H Pashel                           Mr. Pashel is responsible f or structuring and implementation of structured f inance and new business
  Executive Vice President and Head of        products. Mr. Pashel has been involved in all aspects of Chotin’s CDO platf orm f rom asset
  Structured Finance                          acquisition, structuring, marketing and ongoing asset surveillance. Prior to joining Chotin in 2004, Mr.
                                              Pashel’s employment included Deson Ventures and Greyrock Capital Partners, both groups
                                              specializing in middle market private equity and M&A advisory services. Mr. Pashel also owned and
                                              operated numerous companies in the real estate and aviation industries. Mr. Pashel was educated at
                                              Brandeis University.




                                                                        13                 Chotin Asset Management Corporation
Biographies

  Jeffrey Stemmermann, CFA              Mr. Stemmermann is responsible for fixed income trading and portfolio management. His primary responsibilities
  Vice President/Portfolio Manager       include credit analysis and the acquisition of assets for our CDOs. Prior to joining Chotin, Mr. Stemmermann
                                         worked at ING Investment Management as an analyst and junior portfolio manager from 2001 through 2004.
                                         The Georgia Institute of Technology awarded Mr. Stemmermann both a Bachelor of Science degree in Industrial
                                         and Systems Engineering and a Master of Science degree in Quantitative and Computational Finance. In
                                         addition, he has earned the right to use the Chartered Financial Analyst designation.




  Jim Peaslee, CFA                      Mr. Peaslee is responsible f or f ixed income trading and portf olio management. He joined Chotin in
  Vice President/Portfolio Manager       2005 af ter twelve years in structured f inance at Great-West Lif e & Annuity Insurance Co. where he
                                         managed portf olios consisting of Home Equity ABS, Franchise Loans and Af f ordable Housing Tax
                                         Credits. From 1988-1991, Mr. Peaslee was a Staf f Auditor with Ernst & Young. Mr. Peaslee holds a
                                         Bachelor of Arts f rom the University of Oregon and a Master of Business Administration and a Master
                                         of Public Health f rom the A.B. Freeman School of Business, Tulane University. In addition, he has
                                         earned the right to use the Chartered Financial Analyst designation.




  Ross S. Chotin                        Mr. Chotin is a member of the Structured Finance Group and is involved with all aspects of business
  Associate                              development and investor relations. Previously, he was responsible f or trading operations, which
                                         included trade settlement, asset pricing, and warehouse reconciliation. Prior to joining Chotin in 2003,
                                         Mr. Chotin worked in hotel management f or Sage hospitality, a nationally recognized hotel
                                         management company, based in Denver.




                                                                    14                  Chotin Asset Management Corporation
Biographies

  Hilary U. Snyder                     Ms. Snyder is a member of the f ixed income trading and analytics team. She is responsible f or
  Investment/Surveillance Analyst       maintaining Chotin’s transaction database and supervises the surveillance and monitoring process.
                                        Ms. Snyder holds a Bachelor of Science degree in Applied Mathematics with an emphasis in
                                        Computer Science f rom the University of Colorado at Boulder.




  Andy Wolf                            Mr. Wolf is a member of the f ixed income trading and analytics team. He supports the portf olio
  Investment/Surveillance Analyst       managers with credit analysis across all asset types and is actively involved in the surveillance and
                                        monitoring process. Prior to joining Chotin, Mr. Wolf was an investment analyst concentrating on
                                        commercial loans at Merchants Mortgage and Trust and was a f ield coordinator f or the Joe Lieberman
                                        f or President Campaign. He holds a Bachelor of Science degree in Business Management f rom the
                                        University of Colorado, Boulder.




  Matthew R. Krump                     Matthew R. Krump is a member of the f ixed income trading and analytics team. He assists with the
  Investment/Surveillance Analyst       trading and analysis of asset-backed securities with a f ocus on residential mortgage ABS. Prior to
                                        joining Chotin Group, he worked in the ABS/CDO group at Smith Breeden Associates and the portf olio
                                        analytics group at BlackRock; he was also previously an investment banking analyst in the leveraged
                                        f inance group at Lehman Brothers. Mr. Krump earned a Master of Science in Accounting and Bachelor
                                        of Science in Business f rom the Leeds School of Business at the University of Colorado and is
                                        currently a Level 3 Chartered Financial Analyst candidate.




                                                                 15                Chotin Asset Management Corporation
Biographies

  Nathan B. Callard                       Nathan B. Callard is a member if the f ixed income trading and analytics team. He assists with the
  Investment/Surveillance Analyst          trading and analysis of asset-backed securities with a f ocus on residential mortgage ABS. Prior to
                                           joining Chotin, he was at Clayton Fixed Income Services and responsible f or valuing ABS and RMBS
                                           portf olios and an analyst in their Credit Risk Management group, perf orming loan level surveillance on
                                           home equity ABS deals. Mr. Callard also worked as an analyst f or Manning & Napier Advisors, a
                                           privately held money manager. He holds a BA in Economics f rom St. Lawrence University. He is
                                           currently a Level 2 Chartered Financial Analyst candidate.



  Isaia M. Carucci, CFA                   Isaia M. Carucci is a member of the f ixed income trading and analytics team. He is involved with
  Investment/Surveillance Analyst          credit and surveillance analysis f or the Structured Finance Group. Prior to joining Chotin, Mr. Carucci
                                           worked as an independent market maker in f ixed income derivatives. Mr. Carucci also has experience
                                           as a stock market analyst at Charles Schwab and a f loor trader f or Societe Generale in the Eurodollar
                                           options pit at the Chicago Mercantile Exchange. He holds a Bachelor of Science degree in Industrial
                                           Engineering f rom Purdue University and an MBA f rom the Marshall School of Business at the
                                           University of Southern Calif ornia. Mr. Carucci has earned the right to use the Chartered Financial
                                           Analyst designation.



  Eric Westerhausen                       Mr. Westerhausen joined Chotin in 2005 and is responsible f or the f irm's servicer and originator
  Originator / Servicer Surveillance       oversight. He brings more than 18 years of mortgage banking and f inancial services experience to
  Analyst                                  Chotin, having previously held the position of Vice President, Correspondent Operations at National
                                           Mortgage Corporation, a f ormer Chotin subsidiary where he managed whole loan purchasing,
                                           warehousing, custodial relationships and pool certif ication activities. Other past experience includes
                                           production management positions with Wells Fargo Home Mortgage and Huntington Mortgage
                                           Company. He is a past member of the Document Custody Committee and E-commerce Sub-
                                           committee of the Mortgage Bankers Association. He holds a Bachelor of Arts degree in Economics
                                           f rom Ohio State University.




                                                                     16                 Chotin Asset Management Corporation
Biographies

  Eric Knab                                 Mr. Knab is a member of the structured f inance trading and analytics team primarily responsible f or
  Quantitative Analyst                       portf olio analytics and research. Prior to joining Chotin, Mr. Knab was a Senior Financial Analyst f or
                                             CollegeInvest, where he managed the Financial Planning and Analysis f unction of the organization,
                                             including developing analytic and reporting systems, pricing and f orecasting models, and investment
                                             strategies. Prior to CollegeInvest, Mr. Knab spent three years with the MurrayHill Company as the
                                             Manager of Analytics and Research. Mr. Knab holds a Master of Arts degree in Economics f rom the
                                             University of Colorado and a Bachelor of Science degree in Economics f rom the University of
                                             Minnesota.



  Peter Reynolds                            Mr. Reynolds manages operations f or the f ixed income trading team, including all settlement and
  Trading Assistant                          transaction oriented duties. Bef ore joining Chotin, Mr. Reynolds was a senior analyst at Clayton Fixed
                                             Income Services, an inf ormation and analytics company that provides loan-level credit risk
                                             management f or investors, servicers and lenders. Mr. Reynolds has also been involved in the
                                             mortgage industry as a mortgage banker. He holds a Bachelor of Arts degree f rom Vanderbilt
                                             University.




  Jennifer M. Land                          Ms. Land oversees of f ice administration f or Chotin and its af f iliates, including the Chotin Foundation
  Executive Assistant to the Chairman/       where she serves as a director. She also heads all aspects of the f irm’s human resources f unction,
  HR Director                                including recruiting and benef it implementation. Ms. Land also serves as Mr. Steven Chotin’s
                                             Executive Assistant, a role she has held since 1996. She joined Chotin in 1993 as a part of the
                                             company’s administrative staf f and has held increasing roles of responsibility since that time, including
                                             serving as project manager on a number of Chotin initiatives that f all outside the scope of her job
                                             responsibilities. Prior to joining Chotin, Ms. Land held administrative positions in the graphics and
                                             medical sof tware development industries.




                                                                         17                 Chotin Asset Management Corporation
Biographies

  Richard R. Reisman                      Mr. Reisman is responsible f or managing all of the legal aspects of the work of Chotin and its
  Vice President and General Counsel       af f iliates. Prior to joining Chotin, Mr. Reisman was a senior associate with Skadden, Arps, Slate,
                                           Meagher & Flom in London, England. Mr. Reisman’s work there was of a general corporate
                                           nature. Bef ore joining Skadden, Mr. Reisman was an associate with Cahill Gordon & Reindel in New
                                           York, specializing in corporate f inance. Mr. Reisman received his J.D. f rom the University of Chicago
                                           Law School and his B.A. f rom Dartmouth College.




  Michael B. Piel                         Mr. Piel is the Director of Inf ormation Technology responsible f or the management of The Chotin
  Director of Information Technology       Group’s inf ormation technology. Prior to joining Chotin, Mr. Piel was a Senior Developer f or Great -
                                           West Lif e & Annuity Insurance Company, where he developed internet trading and reporting systems
                                           f or the Bank Owned Lif e Insurance (BOLI) and Corporate Owned Lif e Insurance (COLI) variable
                                           products. Mr. Piel also has experience in wealth management consulting and corporate accounting.
                                           Mr. Piel holds a Master of Science degree in Inf ormation Systems f rom the University of Colorado and
                                           a Bachelor of Science degree in Business Administration f rom the University of Wyoming.




  David Frederick                         Mr. Frederick is responsible f or managing all accounting f unctions at Chotin. Prior to joining Chotin in
  Chief Financial Officer                  2005, David served as SVP and CFO of Duke Energy Field Services, the nations largest natural gas
                                           processor headquartered in Denver, CO. David moved to Denver in 1998 f rom Houston, Texas, where
                                           he held various positions with Duke Energy and its predecessor company, Pan Energy Corp. David
                                           started his career with Deloitte and Touche where he spent seven years in the audit department.
                                           David graduated f rom the University of Houston in 1981 with a BBA in accounting and is a Certif ied
                                           Public Accountant.




                                                                     18                 Chotin Asset Management Corporation

				
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