8-K 1 dal06af1_8k-20060601.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D. C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 June 1, 2006 Date of Report (Date of Earliest Event Reported) Deutsche Alt-A Securities, Inc., Mortgage Loan Trust, Series 2006-AF1 (Exact name of Issuing Entity as specified in its charter) DB Structured Products, Inc. (Exact name of Sponsor as specified in its charter) Deutsche Alt-A Securities, Inc. (Exact name of Depositor as specified in its charter) Deutsche Alt-A Securities, Inc. (Exact name of Registrant as specified in its charter) Delaware 333-127621-08 54-2196523 (State or Other (Commission 54-2196524 Jurisdiction of File Number) 54-2196525 Incorporation) 54-2196526 (IRS Employer Identification No.) c/o Wells Fargo Bank, N.A. 9062 Old Annapolis Road Columbia, MD 21045 (Address of Principal Executive Offices) (Zip Code) (410) 884-2000 (Registrant's Telephone Number, including Area Code) Not Applicable (Former Name or Former Address, if Changed Since Last Report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act(17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act(17 CFR 240.13e-4(c)) Section 1 - Registrant's Business and Operations Item 1.02 - Termination of a Material Definitive Agreement. GMAC Mortgage Corporation ("GMACM") agreed to service certain residential mortgage loans (the "Serviced Loans"), for the benefit of HSBC Bank USA, National Association, as trustee, pursuant to the provisions of those certain servicing agreements, dated as of April 1, 2004 and August 5, 2005, respectively, between DB Structured Products ("DBSP") and GMACM (collectively, the "GMAC Servicing Agreements") as modified in accordance with the terms of assignment, assumption and recognition agreements, each dated as of March 30, 2006, among DBSP, Deutsche Alt-A Securities Inc. and GMACM. Pursuant to termination agreements, each dated as of June 1, 2006, by and between DBSP and GMACM, DBSP and GMACM have agreed to terminate the GMAC Servicing Agreements, with respect to the Serviced Loans, effective as of June 1, 2006. Such termination agreements are attached hereto as Exhibit 99.1 and 99.2 below. Section 6 - Asset-Backed Securities Item 6.02 - Change in Servicer or Trustee Wells Fargo Bank, N.A. (the "Servicer"), has agreed to service certain residential mortgage loans, effective as of June 1, 2006, for the benefit of HSBC Bank USA, National Association, as trustee (the "Trustee") pursuant to the provisions of that certain servicing agreement, dated as of December 1, 2005, between DB Structured Products and the Servicer as modified in accordance with the terms of servicing agreement dated as of June 1, 2006 (attached hereto as Exhibit 99.3), between the Servicer and the Trustee. WELLS FARGO BANK, N.A. AS SERVICER Servicing Experience and Procedures of Wells Fargo Bank Servicing Experience Wells Fargo Bank, N.A. ("Wells Fargo Bank") is an indirect, wholly-owned subsidiary of Wells Fargo & Company. Wells Fargo Bank is a national banking association and is engaged in a wide range of activities typical of a national bank. Wells Fargo Bank, including its predecessors, has many years of experience in servicing residential mortgage loans, commercial mortgage loans, auto loans, home equity loans, credit card receivables and student loans. Wells Fargo Bank, including its predecessors, has been servicing residential mortgage loans since 1974. These servicing activities, which include collections, loss mitigation, default reporting, bankruptcy, foreclosure and REO Property management, are handled at various Wells Fargo Bank locations including Frederick, Maryland, Fort Mill, South Carolina and other mortgage loan servicing centers. As of the date hereof, Wells Fargo Bank has not failed to make any required advance with respect to any issuance of residential mortgage backed securities. Wells Fargo Bank's servicing portfolio of residential mortgage loans (which includes First Lien Non-Conforming, Non-Subprime Loans as well as other types of residential mortgage loans serviced by Wells Fargo Bank) has grown from approximately $450 billion as of the end of 2000 to approximately $1.005 trillion as of the end of 2005. The table below sets forth for each of the periods indicated the number and aggregate original principal balance of mortgage loans serviced by Wells Fargo Bank (other than any mortgage loans serviced for Fannie Mae, Freddie Mac and Federal Home Loan Banks; mortgage loans insured or guaranteed by the Government National Mortgage Association, Federal Housing Administration or Department of Veterans Affairs; or mortgage loans with respect to which Wells Fargo Bank has acquired the servicing rights, acts as subservicer, or acts as special servicer) for First Lien Non-Conforming, Non-Subprime Loans: As of As of As of December 31, 2003 December 31, 2004 December 31, 2005 Aggregate Aggregate Aggregate Original Original Original Principal Principal Principal Balance of Balance of Balance of No. of Loans No. of Loans No. of Loans Loans Loans Loans First Lien Non-Conforming, Non-Subprime Loans 472,694 $141,120,796,584 533,262 $171,086,652,776 635,091 $218,067,611,101

Servicing Procedures Shortly after the funding of a loan, various types of loan information are loaded into Wells Fargo Bank's automated loan servicing system. Wells Fargo Bank then makes reasonable efforts to collect all payments called for under the Mortgage Loan documents and will, consistent with the applicable servicing agreement and any pool insurance policy, primary mortgage insurance policy, bankruptcy bond or alternative arrangements, follow such collection procedures as are customary with respect to loans that are comparable to the Mortgage Loans. Wells Fargo Bank may, in its discretion, (i) waive any assumption fee, late payment or other charge in connection with a Mortgage Loan and (ii) to the extent not inconsistent with the coverage of such Mortgage Loan by a pool insurance policy, primary mortgage insurance policy, bankruptcy bond or alternative arrangements, if applicable, waive, vary or modify any term of any Mortgage Loan or consent to the postponement of strict compliance with any such term or in any matter grant indulgence to any borrower, subject to the limitations set forth in the applicable servicing agreement. Wells Fargo Bank's collections policy is designed to identify payment problems sufficiently early to permit Wells Fargo Bank to address such delinquency problems and, when necessary, to act to preserve equity in a pre- foreclosure Mortgaged Property. Borrowers are billed on a monthly basis in advance of the due date. If a borrower attempts to use Wells Fargo Bank's Voice Response Unit ("VRU") to obtain loan information on or after a date on which a late charge is due, the VRU automatically transfers the call to the collection area. Collection procedures commence upon identification of a past due account by Wells Fargo Bank's automated servicing system. If timely payment is not received, Wells Fargo Bank's automated loan servicing system automatically places the Mortgage Loan in the assigned collection queue and collection procedures are generally initiated on the 16th day of delinquency. The account remains in the queue unless and until a payment is received, at which point Wells Fargo Bank's automated loan servicing system automatically removes the Mortgage Loan from that collection queue. When a Mortgage Loan appears in a collection queue, a collector will telephone to remind the borrower that a payment is due. Follow-up telephone contacts with the borrower are attempted until the account is current or other payment arrangements have been made. When contact is made with a delinquent borrower, collectors present such borrower with alternative payment methods, such as Western Union, Phone Pay and Quick Collect, in order to expedite payments. Standard form letters are utilized when attempts to reach the borrower by telephone fail and/or in some circumstances, to supplement the phone contacts. Company collectors have computer access to telephone numbers, payment histories, loan information and all past collection notes. Wells Fargo Bank supplements the collectors' efforts with advanced technology such as predictive dialers and statistical behavioral software used to determine the optimal times to call a particular customer. Additionally, collectors may attempt to mitigate losses through the use of behavioral or other models that are designed to assist in identifying workout options in the early stages of delinquency. For those loans in which collection efforts have been exhausted without success, Wells Fargo Bank determines whether foreclosure proceedings are appropriate. The course of action elected with respect to a delinquent Mortgage Loan generally will be guided by a number of factors, including the related borrower's payment history, ability and willingness to pay, the condition and occupancy of the Mortgaged Property, the amount of borrower equity in the Mortgaged Property and whether there are any junior liens. Regulations and practices regarding the liquidation of properties (e.g., foreclosure) and the rights of a borrower in default vary greatly from state to state. As such, all foreclosures are assigned to outside counsel, licensed to practice in the same state as the Mortgaged Property. Bankruptcies filed by borrowers are similarly assigned to appropriate local counsel. Communication with foreclosure and bankruptcy attorneys is maintained through the use of a software program, thus reducing the need for phone calls and faxes and simultaneously creating a permanent record of communication. Attorney timeline performance is managed using quarterly report cards. The status of foreclosures and bankruptcies is monitored by Wells Fargo Bank through its use of such software system. Bankruptcy filing and release information is received electronically from a third-party notification vendor. Prior to a foreclosure sale, Wells Fargo Bank performs a market value analysis. This analysis includes: (i) a current valuation of the Mortgaged Property obtained through a drive-by appraisal or broker's price opinion conducted by an independent appraiser and/or a broker from a network of real estate brokers, complete with a description of the condition of the Mortgaged Property, as well as other information such as recent price lists of comparable properties, recent closed comparables, estimated marketing time and required or suggested repairs, and an estimate of the sales price; (ii) an evaluation of the amount owed, if any, for real estate taxes; and (iii) estimated carrying costs, brokers' fees, repair costs and other related costs associated with real estate owned properties. Wells Fargo Bank bases the amount it will bid at foreclosure sales on this analysis. If Wells Fargo Bank acquires title to a property at a foreclosure sale or otherwise, it obtains an estimate of the sale price of the property and then hires one or more real estate brokers to begin marketing the property. If the Mortgaged Property is not vacant when acquired, local eviction attorneys are hired to commence eviction proceedings and/or negotiations are held with occupants in an attempt to get them to vacate without incurring the additional time and cost of eviction. Repairs are performed if it is determined that they will increase the net liquidation proceeds, taking into consideration the cost of repairs, the carrying costs during the repair period and the marketability of the property both before and after the repairs. Wells Fargo Bank's loan servicing software also tracks and maintains tax and homeowners' insurance information and tax and insurance escrow information. Expiration reports are generated periodically listing all policies scheduled to expire. When policies lapse, a letter is automatically generated and issued advising the borrower of such lapse and notifying the borrower that Wells Fargo Bank will obtain lender-placed insurance at the borrower's expense. Section 9 - Financial Statements and Exhibits Item 9.01 - Financial Statements and Exhibits. Exhibits Exhibit Number Description EX-99.1 Termination Agreement, dated as of June 1, 2006, by and between DB Structured Products, Inc.("DBSP") and GMAC Mortgage Corporation as servicer. EX-99.2 Termination Agreement, dated as of June 1, 2006, by and between DB Structured Products, Inc.("DBSP") and GMAC Mortgage Corporation as servicer. EX-99.3 Servicing Agreement dated as of June 1, 2006, by and between Wells Fargo Bank, N.A. as Servicer, HSBC Bank USA, N.A. as Trustee and acknowledged and agreed to by Deutsche Alt-A Securities, Inc., as Depositor, DB Structured Products, Inc., as Seller and Wells Fargo Bank, N.A. as Master Servicer and Securities Administrator. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Deutsche Alt-A Securities, Inc., Mortgage Loan Trust, Series 2006-AF1 (Registrant) By: Wells Fargo Bank, N.A. as Master Servicer By: /s/ Kristen Cronin By: Kristen Cronin as Vice President Date: June 7, 2006 EXHIBIT INDEX Exhibit Number Description EX-99.1 Termination Agreement, dated as of June 1, 2006, by and between DB Structured Products, Inc.("DBSP") and GMAC Mortgage Corporation as servicer. EX-99.2 Termination Agreement, dated as of June 1, 2006, by and between DB Structured Products, Inc.("DBSP") and GMAC Mortgage Corporation as servicer. EX-99.3 Servicing Agreement dated as of June 1, 2006, by and between Wells Fargo Bank, N.A. as Servicer, HSBC Bank USA, N.A. as Trustee and acknowledged and agreed to by Deutsche Alt-A Securities, Inc., as Depositor, DB Structured Products, Inc., as Seller and Wells Fargo Bank, N.A. as Master Servicer and Securities Administrator. EX-99.1 EXECUTION COPY TERMINATION AGREEMENT This TERMINATION AGREEMENT (this "Agreement"), dated as of June 1, 2006, is by and between DB Structured Products, Inc. ("DBSP") and GMAC Mortgage Corporation (the "Servicer"). RECITALS WHEREAS, the Servicer is currently servicing the Subject Mortgage Loans for the benefit of Deutsche Alt-A Securities, Inc. Mortgage Loan Trust, Series 2006-AF1 pursuant to the servicing agreement dated as of August 5, 2005 (the "GMAC 2005 Servicing Agreement") by and between DBSP and the Servicer and modified in accordance with the terms of an assignment, assumption and recognition agreement dated as of March 30, 2006, among DBSP as assignor, Deutsche Alt-A Securities, Inc., as assignee, and the Servicer and acknowledged and agreed to by the Wells Fargo Bank, N.A., as master servicer; WHEREAS, Section 6.01 of the GMAC 2005 Servicing Agreement provides that the GMAC 2005 Servicing Agreement may be terminated by DBSP, at its sole option with respect to the Subject Mortgage Loans, without cause, in writing; WHEREAS, DBSP desires to terminate the GMAC 2005 Servicing Agreement with respect to the Subject Mortgage Loans; NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements herein contained, the parties hereto do hereby agree as follows: Section 1. Defined Terms. All capitalized terms used in this Agreement that are not defined herein are used with the meanings given to such terms in the GMAC 2005 Servicing Agreement. In addition, the following terms shall have the meanings specified below when used in this Agreement: "Termination Effective Date" shall mean June 1, 2006. "Subject Mortgage Loan" means a Mortgage Loan listed on Exhibit A to this Agreement. Section 2. Termination. DBSP and Servicer hereby agree, by mutual consent, to terminate the Servicing Agreement, with respect to the Subject Mortgage Loans, effective as of the Termination Effective Date. (page) Section 3. Costs. Each party will pay all costs and expenses incurred by it in connection with the negotiation and execution and delivery of this Agreement, including, without, limitation the fees, costs and expenses of its counsel. Section 4. Governing law. This instrument shall be governed by, and construed in accordance with, the laws of the State of New York, without reference to its conflict of laws provisions (other than Section 5-1401 of the New York General Obligations Law), and the obligations, rights and remedies of the parties hereunder shall be determined in accordance with such laws. Section 5. Counterparts. This Agreement may be executed in separate counterparts, each of which when so executed and delivered shall be an original for all purposes, but all such counterparts shall constitute but one and the same instrument. Section 6. Amendments. No term or provision of this Agreement may be waived or modified unless such waiver or modification is in writing and signed by the party against whom such waiver or modification is sought to be enforced. Section 7. Effectiveness. This Agreement shall become effective on the Termination Effective Date after it has been duly executed and delivered by the parties hereto. This Agreement shall bind and inure to the benefit of the successors and assigns of the parties hereto. [Signature Page Follows] (page) IN WITNESS WHEREOF, the parties hereto have each caused this Agreement to be duly executed as of the day and year first above written. DB STRUCTURED PRODUCTS, INC., Seller By: /s/ Susan Valenti Its: Director By: /s/ Hyung Peak Its: Managing Director GMAC MORTGAGE CORPORATION Servicer By: /s/ Wesley B. Howland Its: Vice President [Signature Page to Termination Agreement] (page) Exhibit A Subject Mortgage Loans EX-99.2 EXECUTION COPY TERMINATION AGREEMENT This TERMINATION AGREEMENT (this "Agreement"), dated as of June 1, 2006, is by and between DB Structured Products, Inc. ("DBSP") and GMAC Mortgage Corporation (the "Servicer"). RECITALS WHEREAS, the Servicer is currently servicing the Subject Mortgage Loans for the benefit of Deutsche Alt-A Securities, Inc. Mortgage Loan Trust, Series 2006-AF1 pursuant to the servicing agreement dated as of April 1, 2004 (the "GMAC 2004 Servicing Agreement") by and between DBSP and the Servicer and modified in accordance with the terms of an assignment, assumption and recognition agreement dated as of March 30, 2006, among DBSP as assignor, Deutsche Alt-A Securities, Inc., as assignee, and the Servicer and acknowledged and agreed to by Wells Fargo Bank, N.A., as master servicer; WHEREAS, Section 10.01 of the GMAC 2004 Servicing Agreement provides that the GMAC 2004 Servicing Agreement may be terminated by mutual consent of the Servicer and DBSP, with respect to the Subject Mortgage Loans, in writing; WHEREAS, DBSP and the Servicer mutually desire to terminate the GMAC 2004 Servicing Agreement with respect to the Subject Mortgage Loans; NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements herein contained, the parties hereto do hereby agree as follows: Section 1. Defined Terms. All capitalized terms used in this Agreement that are not defined herein are used with the meanings given to such terms in the GMAC 2004 Servicing Agreement. In addition, the following terms shall have the meanings specified below when used in this Agreement: "Termination Effective Date" shall mean June 1, 2006. "Subject Mortgage Loan" means a Mortgage Loan listed on Exhibit A to this Agreement. Section 2. Termination. DBSP and Servicer hereby agree, by mutual consent, to terminate the Servicing Agreement, with respect to the Subject Mortgage Loans, effective as of the Termination Effective Date. (page) Section 3. Costs. Each party will pay all costs and expenses incurred by it in connection with the negotiation and execution and delivery of this Agreement, including, without, limitation the fees, costs and expenses of its counsel. Section 4. Governing law. This instrument shall be governed by, and construed in accordance with, the laws of the State of New York, without reference to its conflict of laws provisions (other than Section 5-1401 of the New York General Obligations Law), and the obligations, rights and remedies of the parties hereunder shall be determined in accordance with such laws. Section 5. Counterparts. This Agreement may be executed in separate counterparts, each of which when so executed and delivered shall be an original for all purposes, but all such counterparts shall constitute but one and the same instrument. Section 6. Amendments. No term or provision of this Agreement may be waived or modified unless such waiver or modification is in writing and signed by the party against whom such waiver or modification is sought to be enforced. Section 7. Effectiveness. This Agreement shall become effective on the Termination Effective Date after it has been duly executed and delivered by the parties hereto. This Agreement shall bind and inure to the benefit of the successors and assigns of the parties hereto. [Signature Page Follows] (page) IN WITNESS WHEREOF, the parties hereto have each caused this Agreement to be duly executed as of the day and year first above written. DB STRUCTURED PRODUCTS, INC., Seller By: /s/ Susan Valenti Its: Director By: /s/ Hyung Peak Its: Managing Director GMAC MORTGAGE CORPORATION Servicer By: /s/ Wesley B. Howland Its: Vice President [Signature Page to Termination Agreement] (page) Exhibit A Subject Mortgage Loans EX-99.3 EXECUTION COPY SERVICING AGREEMENT This Servicing Agreement (this "Agreement") is made and entered into as of June 1, 2006 (the "Effective Date'), between Wells Fargo Bank, National Association, having an address at 1 Home Campus, Des Moines, Iowa 50328-0001 (the "Servicer" or the "Company") and HSBC Bank USA, National Association, as trustee for the holders of the certificates issued by Deutsche Alt-A Securities, Inc. Mortgage Loan Trust, Series 2006-AF1 (including its successors in interest and any successor trustee under the Pooling Agreement as defined below, the "Trustee") and acknowledged and agreed to by Deutsche Alt-A Securities, Inc. as depositor (the "Depositor"), DB Structured Products, Inc., as seller ("DBSP") and Wells Fargo Bank, National Association, as master servicer (the "Master Servicer") and as securities administrator (the "Securities Administrator"). W I T N E S S E T H WHEREAS, the Depositor, the Master Servicer, the Securities Administrator, Clayton Fixed Income Services, Inc. as credit risk manager and the Trustee entered into the Pooling and Servicing Agreement (the "Pooling and Servicing Agreement"), dated as of March 1, 2006, relating to Deutsche Alt-A Securities, Inc. Mortgage Loan Trust, Series 2006-AF1, Mortgage Pass-Through Certificates; WHEREAS, GMAC Mortgage Corporation ("GMACM") is currently servicing certain residential mortgage loans identified on the schedule annexed hereto as Attachment 1 (the "Serviced Loans"), until the Effective Date for the benefit of the Trustee pursuant to the provisions of that certain servicing agreement, dated as of April 1, 2004 between DBSP and the GMACM (the "GMAC 2004 Servicing Agreement") and that certain servicing agreement, dated as of August 5, 2005 between DBSP and the GMACM (the "GMAC 2005 Servicing Agreement" and together with the GMAC 2004 Servicing Agreement, the "GMAC Servicing Agreements") as modified in accordance with the terms of assignment, assumption and recognition agreements, each dated as of March 30, 2006, among DBSP as assignor, the Depositor as assignee and GMACM, and acknowledged and agreed to by the Master Servicer; WHEREAS, pursuant to Section 10.2 of the GMAC 2004 Servicing Agreement and Section 6.2 of the GMAC 2005 Servicing Agreement, DBSP has the right to transfer the servicing responsibilities of GMACM with respect to the Serviced Loans upon the satisfaction of certain conditions set forth in the GMAC Servicing Agreements; WHEREAS, pursuant to termination agreements, each dated as of June 1, 2006, by and between DBSP and GMACM, DBSP and GMACM agree, by mutual consent, to terminate the GMAC Servicing Agreements, with respect to the Serviced Loans, effective as of the Effective Date. WHEREAS, the Depositor and DBSP desire to effectuate the replacement of GMACM as the Servicer with respect to the Serviced Loans; Therefore, in consideration of the mutual promises contained herein, the parties hereto agree that the Servicer shall service the Serviced Loans, for the benefit of the Trustee pursuant to the provisions of that certain Servicing Agreement, dated as of December 1, 2005, between DBSP and the Company (the "Servicing Agreement") as modified in accordance with the terms of this Agreement; provided that to the extent any mortgage loan identified on Attachment 1 is repurchased by the Company, such mortgage loan shall no longer be a "Serviced Loan" and shall no longer be subject to this Agreement. Defined Terms 1. Capitalized terms used herein but not defined shall have the meanings ascribed to them in the Servicing Agreement or, with respect to such undefined terms in Section 6 herein, in the to the Pooling and Servicing Agreement. Appointment of Servicer 2. Each of the Depositor, DBSP, the Master Servicer and the Trustee consents to the appointment of the Servicer, and hereby designates Wells Fargo Bank, National Association, as Servicer of the Serviced Loans from and after the Effective Date. Any fees and expenses incurred by the Master Servicer in connection with the appointment of the Servicer shall be paid by DBSP. Representations, Warranties and Covenants 3. The Servicer warrants and represents to, and covenants with, the Trustee as of the Effective Date: (a) Attached hereto as Attachment 2 is a true and accurate copy of the Servicing Agreement, which Servicing Agreement is in full force and effect as of the Effective Date and the provisions of which, except as set forth herein, have not been waived, amended or modified in any respect, nor has any notice of termination been given thereunder; (b) The Servicer is a national banking association, duly organized, validly existing and in good standing under the laws of the United States of America, and has all requisite power and authority to service the Serviced Loans and otherwise to perform its obligations under the Servicing Agreement, as modified by this Agreement; (c) The Servicer has full power and authority to execute, deliver and perform its obligations under this Agreement, and to consummate the transactions set forth herein. The consummation of the transactions contemplated by this Agreement is in the ordinary course of the Servicer's business and will not conflict with, or result in a breach of, any of the terms, conditions or provisions of the Servicer's charter or by-laws or any legal restriction, or any material agreement or instrument to which the Servicer is now a party or by which it is bound, or result in the violation of any law, rule, regulation, order, judgment or decree to which the Servicer or its property is subject. The execution, delivery and performance by the Servicer of this Agreement and the consummation by it of the transactions contemplated hereby, have been duly authorized by all necessary action on the part of the Servicer. This Agreement has been duly executed and delivered by the Servicer, and, upon the due authorization, execution and delivery by Trustee and Master Servicer, will constitute the valid and legally binding obligation of the Servicer, enforceable against the Servicer in accordance with its terms except as enforceability may be limited by bankruptcy, eorganization, insolvency, moratorium or other similar laws administered by the FDIC affecting the contract obligations of insured banks now or hereafter in effect, and by general principles of equity regardless of whether enforceability is considered in a proceeding in equity or at law; (d) No consent, approval, order or authorization of, or declaration, filing or registration with, any governmental entity is required to be obtained or made by the Servicer in connection with the execution, delivery or performance by the Servicer of this Agreement, or the consummation by it of the transactions contemplated hereby; (e) From and after the Effective Date, the Servicer shall service the Serviced Loans in accordance with the terms and provisions of the Servicing Agreement, as modified by this Agreement. The Servicer shall establish a Custodial Account and an Escrow Account under the Servicing Agreement with respect to the Serviced Loans separate from the Custodial Account and Escrow Account previously established under the Servicing Agreement in favor of Trustee, and shall remit collections received on the Serviced Loans to the appropriate account as required by the Servicing Agreement. The Custodial Account and the Escrow Account each shall be entitled "Wells Fargo Bank, National Association, as servicer in trust for Deutsche Alt-A Securities, Inc. Mortgage Loan Trust, Series 2006-AF1" and shall be established and maintained with a Qualified Depository. Any funds held in the Custodial Account are and shall remain uninvested. (f) There are no legal proceedings pending or threatened against the Servicer or proceedings known to be contemplated by governmental authorities against the Servicer which in the judgment of the Servicer would result, in each case, in any material adverse change in the ability of the Servicer to perform its obligations under this Agreement or the Servicing Agreement. The Servicer is solvent; (g) Except as disclosed on Attachment 5 hereto, there are no affiliations with nor any relationships or transactions of a type described in Item 1119(b) of Regulation AB with respect to the Servicer and any of the following parties: (1) DB Structured Products, Inc.; (2) Deutsche Alt-A Securities, Inc.; (3) Deutsche Alt-A Securities, Inc. Mortgage Loan Trust, Series 2006-AF1; (4) the Master Servicer (as master servicer and securities administrator); (5) the Trustee; (6) The Bank of New York as a SWAP provider; and (7) Wells Fargo Bank, N.A. and Deutsche Bank National Trust Company as custodians; and (h) To make all the representations and warranties regarding the Servicer set forth in Section 3.01 of the Servicing Agreement as of the Effective Date. No other document need be prepared indicating that the Servicer is making such representations and warranties as to the applicable Serviced Loans as of such date. Recognition of Trustee. 4. The Servicer recognizes the Trustee as owner of the Serviced Loans, and acknowledges that the Serviced Loans are part of a REMIC, and from and after the Effective Date, will service the Serviced Loans in accordance with the Servicing Agreement, as modified by this Agreement, but in no event in a manner that would (i) cause any REMIC to fail to qualify as a REMIC or (ii) result in the imposition of a tax upon any REMIC (including but not limited to the tax on prohibited transactions as defined in Section 860F(a)(2) of the Internal Revenue Code of 1986 (the "Code") and the tax on contributions to a REMIC set forth in Section 860G(d) of the Code). It is the intention of the Servicer and the Trustee that this Agreement shall be binding upon and for the benefit of the respective successors and assigns of the parties hereto. The Servicer shall not amend or agree to amend, modify, waive, or otherwise alter any of the terms or provisions of the Servicing Agreement which amendment, modification, waiver or other alteration would in any way affect the Serviced Loans without the prior written consent of the Trustee. 5. The Servicer hereby acknowledges that the Trustee, acting pursuant to the terms of the Pooling and Servicing Agreement, has the right to enforce all obligations of the Servicer, as they relate to the Serviced Loans, under the Servicing Agreement. Such right will include, without limitation, the right to indemnification, the right to terminate the Servicer under the Servicing Agreement upon the occurrence of an Event of Default thereunder and the right to exercise certain rights of consent and approval relating to actions taken by the Servicer under the Servicing Agreement. In addition, any notice required to be given by the "Owner" pursuant to Section 10.01 of the Servicing Agreement shall be given by the Trustee. The Servicer further acknowledges that pursuant to the terms of the Pooling and Servicing Agreement, the Master Servicer is required to monitor the performance of the Servicer under the Servicing Agreement. The Master Servicer shall have the right to receive all remittances required to be made by the Servicer under the Servicing Agreement, the right to receive all monthly reports and other data required to be delivered by the Servicer under the Servicing Agreement, the right to examine the books and records of the Servicer under the Servicing Agreement and the right to indemnification under the Servicing Agreement. In addition, if the Servicer shall fail to remit any payment pursuant to the Servicing Agreement, the Master Servicer shall notify the Trustee and the Trustee shall notify the Servicer of such failure as set forth in Section 10.01 of the Servicing Agreement. The Servicer hereby agrees to make all remittances required under the Servicing Agreement to the Master Servicer for the benefit of the Certificateholders in accordance with the following wire instructions: Wells Fargo Bank, N.A. ABA Number: 121000248 Account Name: SAS Clearing Account Number: 3970771416 For further credit to: DBALT 2006-AF1 Account Number 50908200 The Servicer shall deliver all reports required to be delivered under the Servicing Agreement to the Master Servicer at its address set forth in Section 8 herein. 6. In the event that DBSP substitutes any Deleted Mortgage Loans with any Qualified Substitute Mortgage Loans in the manner set forth in the Pooling and Servicing Agreement, the Servicer shall determine the amount (the "Substitution Shortfall Amount"), if any, by which the aggregate purchase price of all such Deleted Mortgage Loans exceeds the aggregate of, as to each such Qualified Substitute Mortgage Loan, (x) the scheduled principal balance thereof as of the date of substitution, together with one month's interest on such scheduled principal balance at the applicable Mortgage Interest Rate (minus the Administration Fee Rate (as defined below)), plus (y) all outstanding Monthly Advances and Servicing Advances (including nonrecoverable Monthly Advances and nonrecoverable Servicing Advances) related thereto. On the date of such substitution, DBSP will deliver or cause to be delivered to the Servicer for deposit in the Custodial Account an amount equal to the Substitution Shortfall Amount, if any, and the Servicer shall certify in writing to the Trustee that it has received such Substitution Shortfall Amount from DBSP. The Servicer shall remit such Substitution Shortfall Amount to the securities administrator on the next succeeding Servicer Remittance Date. As used in this Section, the "Administration Fee Rate" means the sum of the rates used to calculate the fees payable to the Servicer and the Master Servicer under the Pooling and Servicing Agreement. Modification of the Servicing Agreement 7. Only insofar as it relates to the Serviced Loans, the parties hereto hereby amend the Servicing Agreement as follows: (a) The following definitions are added to Article I of the Servicing Agreement: "Determination Date": With respect to any Servicer Remittance Date, the Business Day immediately preceding such Servicer Remittance Date. "Distribution Date": The 25th day of any month, or if such 25th day is not a Business Day, the Business Day immediately following such 25th day, commencing in June 2006. "Due Period": With respect to each Remittance Date, the period commencing on the second day of the month preceding the month of the Remittance Date and ending on the first day of the month of the Remittance Date. "Monthly Advance": The portion of each Monthly Payment that is delinquent with respect to each Mortgage Loan at the close of business on the Determination Date required to be advanced by the Servicer pursuant to Section 5.03 on the Business Day immediately preceding the Remittance Date of the related month. "Rating Agencies": Fitch Ratings, Moody's Investors Services, Inc. and Standard & Poor's Ratings Services, or their successors. If such agencies or their successors are no longer in existence, "Rating Agencies" shall be such nationally recognized statistical rating agencies, or other comparable Persons, designated by the Depositor, notice of which designation shall be given to the Trustee. "Securities Administrator": Wells Fargo Bank, National Association or any successor thereto. "Third-Party Originator": Each Person, other than a Qualified Correspondent, that originated Mortgage Loans acquired by the Seller. "Trust": Deutsche Alt-A Securities, Inc. Mortgage Loan Trust, Series 2006-AF1. "Trustee": HSBC Bank USA, National Association a national banking association, or its successor in interest, or any successor trustee. (b) The definition of "Business Day" is modified by replacing clause (ii) with the following: "(ii) a day on which banking institutions in the State of New York, the State of Maryland, the State of Iowa, the State of California, the State of Minnesota, the State in which any Corporate Trust Office of the Trustee is located are authorized or obligated by law or executive order to be closed." (c) The definition of "Depositor" is hereby deleted in its entirety and replaced with the following: "Depositor": Deutsche Alt-A Securities, Inc. (d) The definition of "First Remittance Date" is deleted in its entirety. (e) The definition of "Master Servicer" is hereby deleted in its entirety and replaced with the following: "Master Servicer": Wells Fargo Bank, National Association or any successor thereto. (f) All references to "Monthly accounting Cut-Off Date" are hereby replaced with "Determination Date". (g) The definition of "Opinion of Counsel" is hereby deleted in its entirety and replaced with the following: "Opinion of Counsel": A written opinion of counsel, who may, without limitation, be salaried counsel for the Depositor, the Servicer, the Securities Administrator or the Master Servicer, acceptable to the Trustee, except that any opinion of counsel relating to (a) the qualification of any REMIC as a REMIC or (b) compliance with the REMIC Provisions must be an opinion of independent counsel; provided, however, any Opinion of Counsel provided by the Servicer pursuant to clause (b) above may be provided by internal counsel; provided that the delivery of such Opinion of Counsel shall not release the Servicer from any of its obligations hereunder and the Servicer shall be responsible for such contemplated actions or inaction, as the case may be, to the extent it conflicts with the terms of this Agreement. (h) The definition of "Qualified Depository" is hereby amended by deleting the word "or" following the words "Standard & Poor's Ratings Services" and replacing it with "and". (i) The following language is added to the end of the definition of "REMIC Provisions": "as well as provisions of applicable state laws". (j) The definition of "Remittance Date" is hereby deleted in its entirety and replaced with the following: "Servicer Remittance Date: With respect to any Distribution Date, the 18th day of the month in which such Distribution Date occurs; provided that if such 18th day of a given month is not a Business Day, the Servicer Remittance Date for such month shall be the Business Day immediately preceding such 18th day." All references to "Remittance Date" set forth in this Agreement are hereby replaced with "Servicer Remittance Date". (k) The definition of "Servicing Advances" is hereby amended by adding the following language after the phrase "including reasonable attorney's fees and disbursements": "but excluding any fees associated with the registration of any Mortgage Loan on the MERS System as required under Section 4.01". (l) The definition of "Servicing Fee Rate" is hereby deleted in its entirety and replaced with the following: "Servicing Fee Rate: With respect to each Mortgage Loan, the per annum rate specified per Mortgage Loan on the Mortgage Loan Schedule." (m) Section 4.01 is modified by adding the following to the first sentence in the second paragraph after the words "future advances": ", other than Servicing Advances," (n) Section 4.01 is modified by adding the following to the second sentence in the second paragraph before the parenthetical: "", reduce or increase the outstanding principal balance" (o) Section 4.01 is modified by adding the following to the second paragraph, after the third sentence: In the event of any such modification which permits the deferral of interest or principal payments on any Mortgage Loan, the Servicer shall, on the Business Day immediately preceding the Remittance Date in any month in which any such principal or interest payment has been deferred, deposit in the Custodial Account from its own funds, in accordance with Section 5.03, the difference between (a) such month's principal and one month's interest at the Mortgage Loan Remittance Rate on the unpaid principal balance of such Mortgage Loan and (b) the amount paid by the Mortgagor. (p) Section 4.01 is modified by deleting the last paragraph from such section and replacing it with the following: "Notwithstanding anything to the contrary contained herein, the Servicer shall not waive a Prepayment Penalty except under the following circumstances: (i) such waiver is standard and customary in servicing similar Mortgage Loans and such waiver is related to a default or reasonably foreseeable default and would, in the reasonable judgment of the Servicer, maximize recovery of total proceeds taking into account the value of such Prepayment Penalty and the related Mortgage Loan and, if such waiver is made in connection with a refinancing of the related Mortgage Loan, such refinancing is related to a default or a reasonably foreseeable default, (ii) such Prepayment Penalty is unenforceable in accordance with applicable law or the collection of such related Prepayment Penalty would otherwise violate applicable law or (iii) the collection of such Prepayment Penalty would be considered "predatory" pursuant to written guidance published or issued by any applicable federal, state or local regulatory authority acting in its official capacity and having jurisdiction over such matters. In the event the Servicer waives any Prepayment Penalty, other than as set forth in (i), (ii) and (iii) above, the Servicer shall deposit the amount of any such Prepayment Penalty in the Custodial Account for distribution to the Owner on the next Remittance Date." (q) Section 4.04 (vi) is modified by adding after the word "Sections", "4.01, 5.03". (r) Section 4.04 is also modified by deleting the "and" at the end of clause (viii), deleting the "." at the end of clause (ix) and adding a "," and adding the following clause: "(x) with respect to each Principal Prepayment an amount (to be paid by the Servicer out of its funds) which, when added to all amounts allocable to interest received in connection with the Principal Prepayment, equals one month's interest on the amount of principal so prepaid at the Mortgage Loan Remittance Rate; (s) Section 4.05 is modified by deleting the word "and" at the end of clause (ix), deleting the ".' at the end of clause (x) and adding ";" and adding the following clauses: "(xi) to reimburse itself for expenses incurred and reimbursable to it pursuant to the fees paid to MERS under Section 4.01; and (xii) to reimburse itself for any Monthly Advance or Servicing Advance previously made by it which the Servicer has determined to be a nonrecoverable Monthly Advance or a nonrecoverable Servicing Advance, as evidenced by the delivery to the Master Servicer of a certificate signed by two officers of the Servicer". (t) Section 4.16 is modified by deleting the "." from the first sentence in the second paragraph and adding the following: "in a manner which does not cause such REO Property to fail to qualify as "foreclosure property" within the meaning of Section 860G(a)(8) of the Code or result in the receipt by any Trust REMIC created hereunder of any "income from non-permitted assets" within the meaning of Section 860F(a)(2)(B) of the Code, or any "net income from foreclosure property" which is subject to taxation under the REMIC Provisions." (u) Section 4.16 is further modified by deleting the first sentence from the third paragraph and replacing it with thefollowing: "The Servicer, shall either sell any REO Property by the close of the third calendar year following the calendar year in which the Trust acquires ownership of such REO Property for purposes of Section 860(a)(8) of the Code or request from the Internal Revenue Service, no later than 60 days before the day on which the three-year grace period would otherwise expire an extension of the three-year grace period, unless the Servicer had delivered to the Trustee and the Master Servicer an Opinion of Counsel, addressed to the Trustee, the Master Servicer and the Depositor, to the effect that the holding by the Trust of such REO Property subsequent to three years after its acquisition will not result in the imposition on any Trust REMIC created hereunder of taxes on "prohibited transactions" thereof, as defined in Section 860F of the Code, or cause any Trust REMIC hereunder to fail to qualify as a REMIC under Federal law at any time that any Certificates issued by the Trust are outstanding." (v) Section 4.24(a) is modified by inserting ", 9.01(e)(vii)" after "9.01(e)(vi)". (w) The last paragraph of Section 4.24 is modified by inserting the words "and the other certifications" after the words "assessment of compliance and attestation". (x) The first paragraph of Section 5.01 is deleted in its entirety and replaced with the following: "On each Remittance Date the Servicer shall remit by wire transfer of immediately available funds to the Owner (a) all amounts deposited in the Custodial Account as of the close of business on the Determination Date (net of charges against or withdrawals from the Custodial Account pursuant to Section 4.05), plus (b) all amounts, if any, which the Servicer is obligated to distribute pursuant to Section 5.03, minus (c) any amounts attributable to Principal Prepayments received after the applicable Principal Prepayment Period which amounts shall be remitted on the following Remittance Date, together with any additional interest required to be deposited in the Custodial Account in connection with such Principal Prepayment in accordance with Section 4.04(viii); and minus (d) any amounts attributable to Monthly Payments collected but due on a Due Date or Dates subsequent to the first day of the month of the Remittance Date." (y) The second paragraph of Section 5.01 of the Servicing Agreement is modified by deleting from the first sentence therein the words "second Business Day following the" and by deleting the word "second" from the second sentence therein. (z) Section 5.02 is deleted in its entirety and replaced with the following: "No later than the tenth (10th) calendar day (or if such tenth (10th) day is not a Business Day, the first Business Day immediately preceding such tenth (10th) day) of each month, Servicer shall furnish to the Master Servicer a computer tape or data file containing the data specified in Exhibit D, which data shall reflect information from the Due Period immediately preceding the Servicer Remittance Date and such other information with respect to the Mortgage Loans as the Master Servicer may reasonably require to allocate remittances made pursuant to this Agreement and provide \ appropriate statements with respect to such remittances. No later than the tenth (10th) calendar day (or if such tenth (10th) day is not a Business Day, the first Business Day immediately preceding such tenth (10th) day) of each month, the Servicer shall deliver to the Master Servicer by electronic mail (or by such other means as the Servicer and the Master Servicer may agree from time to time) a prepayment report with respect to the related Servicer Remittance Date (which may be included as part of the computer tape or data file described in the immediately preceding paragraph). Such prepayment report shall include such information with respect to Prepayment Penalties as the Master Servicer may reasonable require in order for it to perform its prepayment verification duties and to issue its findings in a verification report (the "Verification Report"). The Master Servicer shall forward the Verification Report to the Servicer and shall notify the Servicer if the Master Servicer has determined that the Servicer did not deliver the appropriate Prepayment Penalties to the Securities Administrator in accordance with the this Agreement. If the Servicer agrees with the verified amounts, the Servicer shall adjust the immediately succeeding remittance report and the amount remitted to the Securities Administrator with respect to prepayments accordingly. If the Servicer disagrees with the determination of the Master Servicer, the Servicer shall, within five (5) Business Days of its receipt of the Verification Report, notify the Master Servicer of such disagreement and provide the Master Servicer with detailed information to support its position. The Servicer and the Master Servicer shall cooperate to resolve any discrepancy on or prior to the immediately succeeding Servicer Remittance Date, and the Servicer will indicate the effect of such resolution on the related remittance report and shall adjust the amount remitted with respect to prepayments on such Servicer Remittance Date accordingly. During such time as the Servicer and the Master Servicer are resolving discrepancies with respect to the Prepayment Penalties, no payments in respect of any disputed Prepayment Penalties will be remitted to the Securities Administrator for deposit in the related distribution account established under the Pooling and Servicing Agreement. In connection with its duties, the Master Servicer shall be able to rely solely on the information provided to it by the Servicer in accordance with this Agreement. The Master Servicer shall not be responsible for verifying the accuracy of any of the information provided to it by the Servicer." (aa) Section 5.03 "Reserved" is replaced with the following: Monthly Advances by Servicer. On the Business Day immediately preceding each Remittance Date, the Servicer shall deposit in the Custodial Account from its own funds or from amounts held for future distribution an amount equal to all Monthly Payments (with interest adjusted to the Mortgage Loan Remittance Rate) which were due on the Mortgage Loans during the applicable Due Period and which were delinquent at the close of business on the immediately preceding Determination Date or which were deferred pursuant to Section 4.01. Any amounts held for future distribution and so used shall be replaced by the Servicer by deposit in the Custodial Account on or before any future Remittance Date if funds in the Custodial Account on such Remittance Date shall be less than payments to the Owner required to be made on such Remittance Date. The Servicer's obligation to make such Monthly Advances as to any Mortgage Loan will continue through the last Monthly Payment due prior to the payment in full of the Mortgage Loan, or through the last Remittance Date prior to the Remittance Date for the distribution of all Liquidation Proceeds and other payments or recoveries (including REO Disposition Proceeds, Insurance Proceeds and Condemnation Proceeds) with respect to the Mortgage Loan; provided, however, that such obligation shall cease if the Servicer determines, in its sole reasonable opinion, that advances with respect to such Mortgage Loan are non-recoverable by the Servicer from Liquidation Proceeds, REO Disposition Proceeds, Insurance Proceeds, Condemnation Proceeds, or otherwise with respect to a particular Mortgage Loan. In the event that the Servicer determines that any such advances are non-recoverable, the Servicer shall provide the Owner with a certificate signed by two officers of the Servicer evidencing such determination. (bb) The first paragraph of Section 6.02 is modified by deleting the words "and may request the release of any Mortgage Loan Documents" and adding the words "and may request that the Owner or its designee release the related Mortgage Loan Documents" in the last line of such paragraph. (cc) The second paragraph of Section 6.02 is modified by deleting the first sentence in its entirety and replacing it with the following: "If the Servicer satisfies or releases the lien of the Mortgage without first having obtained payment in full of the indebtedness secured by the Mortgage (other than as a result of a modification of the Mortgage pursuant to this Agreement or a liquidation of the Mortgaged Property pursuant to the terms of this Agreement) or should the Servicer otherwise prejudice any rights the Owner may have under the mortgage instruments, upon written demand of the Owner, the Servicer shall indemnify the Owner for all related losses" (dd) Section 6.04(i) and the number "(ii)" are deleted in their entirety. (ee) Section 6.04 is modified by replacing each reference to (i) "Owner, any master Servicer and any Depositor" or (ii) "Owner, such master Servicer and such Depositor" therein with the words "Master Servicer". (ff) Section 6.05 is deleted in its entirety. (gg) Section 6.06 is modified by replacing each reference to (i) "Owner, any master Servicer and any Depositor" or (ii) "Owner,such master Servicer and such Depositor" therein with the words "Master Servicer". (hh) Section 6.06(i) is modified by inserting a quotation mark after the words "Applicable Servicing Criteria". (ii) Section 6.06(iv) is modified by inserting the words ", and cause each Subservicer and Subcontractor described in clause (iii) above to provide," after the word "deliver". (jj) Section 6.06(iv) is modified by inserting the words ", signed by the appropriate officer of the Servicer, the related Subservicer or the related Subcontractor, as applicable," after the words "a certification' (kk) Section 6.06 is modified by adding the following new paragraph after subpart (iv): "The Servicer acknowledges that the parties identified in clause (iv) above may rely on the certification provided by the Servicer pursuant to such clause in signing a Sarbanes Certification and filing such with the Commission." (ll) Section 6.07(i) is modified by inserting the words "(and if the Servicer is servicing any of the Mortgage Loans in a Securitization Transaction, appoint a successor servicer reasonably acceptable to any Master Servicer for such Securitization Transaction)" after the words "any compensation to the Servicer". (mm) The following paragraph is added to Section 6.09: "The Servicer shall not permit the creation of any "interests" (within the meaning of Section 860G of the Code) in any REMIC. The Servicer shall not enter into any arrangement by which a REMIC will receive a fee or other compensation for services nor permit a REMIC to receive any income from assets other than "qualified mortgages" as defined in Section 860G(a)(3) of the Code or "permitted investments" as defined in Section 860G(a)(5) of the Code." (nn) The first paragraph of 9.01(e) is modified by deleting the words "paragraphs (i), (iii) and (vii)" and replacing such words with "paragraphs (i), (iii) and (viii)". (oo) The first line of Section 9.01(e)(iv) is modified by deleting the word "its" and replacing such word with "the". (pp) Section 9.01(e)(iv) is modified by inserting the words "(or cause each Subservicer to)" after the words "the Servicer shall". (qq) Section 9.01(e)(vii) is modified by deleting such section in its entirety and replacing it with the following: "(vii) In addition to such information as the Servicer, as servicer, is obligated to provided pursuant to other provisions of this Agreement, not later than ten days prior to the deadline for the filing of any distribution report on Form 10-D in respect of any Securitization Transaction that includes any of the Mortgage Loans serviced by the Servicer or any Subservicer, the Servicer or such Subservicer, as applicable, shall, to the extent the Servicer or such Subservicer has knowledge, provided to the party responsible for filing such report (including, if applicable, the Master Servicer) notice of the occurrence of any of the following events along with all information, data, and materials related thereto as may be required to be included in the related distribution report on Form 10-D (as specified in the provisions of Regulation AB referenced below): (A) any material modifications, extensions or waivers of pool asset terms, fees, penalties or payments during the distribution period (Item 1121(a)(11) of Regulation AB); (B) material breaches of pool asset representations or warranties or transaction covenants (Item 1221(a)(12) of Regulation AB); and (C) information regarding new asset-backed securities issuances backed by the same pool assets, any pool asset changes (such as, additions, substitutions or repurchases), and any material changes in origination, underwriting or other criteria for acquisition or selection of pool assets (Item 1221(a)(14) of Regulation AB). (viii) The Servicer shall provide to the Owner, any Master Servicer and any Depositor, evidence of the authorization of the person signing any certification or statement, copies or other evidence of Fidelity Bond Insurance and Errors and Omission Insurance policy, financial information and reports, and such other information related to the Servicer or any Subservicer or the Servicer or such Subservicer or the Servicer or such Subservicer's performance hereunder." (rr) Section 10.01(ii) is modified by inserting the words "(other than as set forth in Section 6.07)" after the words "set forth in this Agreement". (ss) Section 10.01(ix) is modified by deleting such section in its entirety. (tt) Section 11.02 is modified by deleting such section in its entirety. (uu) Exhibit D is modified to include the information set forth on Attachment 3 hereto or in such other mutually agreeable format agreed upon between the Servicer and the Master Servicer. (vv) Exhibit H is modified by deleting such exhibit in its entirety and replacing it with Attachment 4 attached hereto. Miscellaneous 8. All demands, notices and communications related to the Serviced Loans, the Servicing Agreement and this Agreement shall be in writing and shall be deemed to have been duly given if personally delivered at or mailed by registered mail, postage prepaid, as follows: (a) In the case of the Servicer, Wells Fargo Bank, National Association 1 Home Campus Des Moines, Iowa 50328-0001 Attention: General Counsel (b) In the case of the Master Servicer, Wells Fargo Bank, N.A. 9062 Old Annapolis Road Columbia, Maryland 21045 Attention: Client Manager - DBALT 2006 - AF1 Telecopier: (410) 715-2380 (c) In the case of the Trustee, HSBC Bank USA, National Association 452 Fifth Avenue New York, New York 10018 Attention: Deutsche Alt-A Securities, Inc. Mortgage Loan Trust, Series 2006-AF1 9. Each party will pay any commissions, fees and expenses, including attorney's fees, it has incurred in connection with the negotiations for, documenting of and closing of the transactions contemplated by this Agreement. 10. This Agreement shall be construed in accordance with the laws of the State of New York, without regard to conflicts of law principles (other than Section 5-1401 of the General Obligations Law), and the obligations, rights and remedies of the parties hereunder shall be determined in accordance with such laws. 11. No term or provision of this Agreement may be waived or modified unless such waiver or modification is in writing and signed by the party against whom such waiver or modification is sought to be enforced. 12. This Agreement shall inure to the benefit of the successors and assigns of the parties hereto. Any entity into which Servicer or Trustee may be merged or consolidated shall, without the requirement for any further writing, be deemed Servicer or Trustee, respectively, hereunder. 13. This Agreement may be executed simultaneously in any number of counterparts. Each counterpart shall be deemed to be an original and all such counterparts shall constitute one and the same instrument. 14. In the event that any provision of this Agreement conflicts with any provision of the Servicing Agreement with respect to the Serviced Loans, the terms of this Agreement shall control. 15. For purposes of this Agreement, the Master Servicer shall be considered a third party beneficiary to this Agreement entitled to all the rights and benefits accruing to the Master Servicer, herein as if it were a direct party to this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. WELLS FARGO BANK, NATIONAL ASSOCIATION Servicer By: /s/ Laurie McGoogan Name: Laurie McGoogan Title: Vice President HSBC BANK USA, NATIONAL ASSOCIATION Trustee for the holders of the Deutsche Alt-A Securities, Inc., Mortgage Loan Trust, Series 2006-AF1 Mortgage Pass-Through Certificates By: /s/ Elena Zheng Name: Elena Zheng Title: Assistant Vice President HSBC Bank USA, N.A. ACKNOWLEDGED AND AGREED TO: DEUTSCHE ALT-A SECURITIES, INC. Depositor By: /s/ Susan Valenti Name: Susan Valenti Title: Director By: /s/ Hyung Peak Name: Hyung Peak Title: Managing Director DB STRUCTURED PRODUCTS, INC. Seller By: /s/ Susan Valenti Name: Susan Valenti Title: Director By: /s/ Hyung Peak Name: Hyung Peak Title: Managing Director WELLS FARGO BANK, NATIONAL ASSOCIATION Master Servicer and Securities Administrator By: /s/ Kristen Ann Cronin Name: Kristen Ann Cronin Title: Vice President (PAGE) ATTACHMENT 1 SERVICED LOANS (PAGE) ATTACHMENT 2 SERVICING AGREEMENT (PAGE) ATTACHMENT 3 NEW EXHIBIT D TO THE SERVICING AGREEMENT STANDARD FILE LAYOUT- MASTER SERVICING Exhibit D-1:Standard File Layout - Master Servicing ---------------------------------------------------------------------------------- --------- --------------------------------------- Column Name Description Decimal Format Comment ---------------------------------------------------------------------------------- --------- --------------------------------------- SER_INVESTOR_NBR A value assigned by the Servicer to define a group Text up to 10 digits of loans. ---------------------------------------------------------------------------------- --------- --------------------------------------- LOAN_NBR A unique identifier assigned to each loan by the Text up to 10 digits investor. ---------------------------------------------------------------------------------- --------- --------------------------------------- SERVICER_LOAN_NBR A unique number assigned to a loan by the Text up to 10 digits Servicer. This may be different than the LOAN_NBR. ---------------------------------------------------------------------------------- --------- --------------------------------------- BORROWER_NAME The borrower name as received in the file. It is Maximum length of 30 (Last, First) not separated by first and last name. ---------------------------------------------------------------------------------- --------- --------------------------------------- SCHED_PAY_AMT Scheduled monthly principal and scheduled interest 2 No commas(,) or dollar signs ($) payment that a borrower is expected to pay, P&I constant. ---------------------------------------------------------------------------------- --------- --------------------------------------- NOTE_INT_RATE The loan interest rate as reported by the Servicer. 4 Max length of 6 ---------------------------------------------------------------------------------- --------- --------------------------------------- NET_INT_RATE The loan gross interest rate less the service fee 4 Max length of 6 rate as reported by the Servicer. ---------------------------------------------------------------------------------- --------- --------------------------------------- SERV_FEE_RATE The servicer's fee rate for a loan as reported by 4 Max length of 6 the Servicer. ---------------------------------------------------------------------------------- --------- --------------------------------------- SERV_FEE_AMT The servicer's fee amount for a loan as reported 2 No commas(,) or dollar signs ($) by the Servicer. ---------------------------------------------------------------------------------- --------- --------------------------------------- NEW_PAY_AMT The new loan payment amount as reported by the 2 No commas(,) or dollar signs ($) Servicer. ---------------------------------------------------------------------------------- --------- --------------------------------------- NEW_LOAN_RATE The new loan rate as reported by the Servicer. 4 Max length of 6 ---------------------------------------------------------------------------------- --------- --------------------------------------- ARM_INDEX_RATE The index the Servicer is using to calculate a 4 Max length of 6 forecasted rate. ---------------------------------------------------------------------------------- --------- --------------------------------------- ACTL_BEG_PRIN_BAL The borrower's actual principal balance at the 2 No commas(,) or dollar signs ($) beginning of the processing cycle. ---------------------------------------------------------------------------------- --------- --------------------------------------- ACTL_END_PRIN_BAL The borrower's actual principal balance at the end 2 No commas(,) or dollar signs ($) of the processing cycle. ---------------------------------------------------------------------------------- --------- --------------------------------------- BORR_NEXT_PAY_DUE_DATE The date at the end of processing cycle that the MM/DD/YYYY borrower's next payment is due to the Servicer, as reported by Servicer. ---------------------------------------------------------------------------------- --------- --------------------------------------- SERV_CURT_AMT_1 The first curtailment amount to be applied. 2 No commas(,) or dollar signs ($) ---------------------------------------------------------------------------------- --------- --------------------------------------- SERV_CURT_DATE_1 The curtailment date associated with the first MM/DD/YYYY curtailment amount. ---------------------------------------------------------------------------------- --------- --------------------------------------- CURT_ADJ_ AMT_1 The curtailment interest on the first curtailment 2 No commas(,) or dollar signs ($) amount, if applicable. ---------------------------------------------------------------------------------- --------- --------------------------------------- SERV_CURT_AMT_2 The second curtailment amount to be applied. 2 No commas(,) or dollar signs ($) ---------------------------------------------------------------------------------- --------- --------------------------------------- SERV_CURT_DATE_2 The curtailment date associated with the second MM/DD/YYYY curtailment amount. ---------------------------------------------------------------------------------- --------- --------------------------------------- CURT_ADJ_ AMT_2 The curtailment interest on the second curtailment 2 No commas(,) or dollar signs ($) amount, if applicable. ---------------------------------------------------------------------------------- --------- --------------------------------------- SERV_CURT_AMT_3 The third curtailment amount to be applied. 2 No commas(,) or dollar signs ($) ---------------------------------------------------------------------------------- --------- --------------------------------------- SERV_CURT_DATE_3 The curtailment date associated with the third MM/DD/YYYY curtailment amount. ---------------------------------------------------------------------------------- --------- --------------------------------------- CURT_ADJ_AMT_3 The curtailment interest on the third curtailment 2 No commas(,) or dollar signs ($) amount, if applicable. ---------------------------------------------------------------------------------- --------- --------------------------------------- PIF_AMT The loan "paid in full" amount as reported by the 2 No commas(,) or dollar signs ($) Servicer. ---------------------------------------------------------------------------------- --------- --------------------------------------- PIF_DATE The paid in full date as reported by the Servicer. MM/DD/YYYY ---------------------------------------------------------------------------------- --------- --------------------------------------- Action Code Key: 15=Bankruptcy ACTION_CODE The standard FNMA numeric code used to indicate 30=Foreclosure, 60=PIF, the default/delinquent status of a particular loan. 63=Substitution, 65=Repurchase,70=REO ---------------------------------------------------------------------------------- --------- --------------------------------------- INT_ADJ_AMT The amount of the interest adjustment as reported 2 No commas(,) or dollar signs ($) by the Servicer. ---------------------------------------------------------------------------------- --------- --------------------------------------- SOLDIER_SAILOR_ADJ_AMT The Soldier and Sailor Adjustment amount, if 2 No commas(,) or dollar signs ($) applicable. ---------------------------------------------------------------------------------- --------- --------------------------------------- NON_ADV_LOAN_AMT The Non Recoverable Loan Amount, if applicable. 2 No commas(,) or dollar signs ($) ---------------------------------------------------------------------------------- --------- --------------------------------------- LOAN_LOSS_AMT The amount the Servicer is passing as a loss, if 2 No commas(,) or dollar signs ($) applicable. ---------------------------------------------------------------------------------- --------- --------------------------------------- SCHED_BEG_PRIN_BAL The scheduled outstanding principal amount due at 2 No commas(,) or dollar signs ($) the beginning of the cycle date to be passed through to investors. ---------------------------------------------------------------------------------- --------- --------------------------------------- SCHED_END_PRIN_BAL The scheduled principal balance due to investors 2 No commas(,) or dollar signs ($) at the end of a processing cycle. ---------------------------------------------------------------------------------- --------- --------------------------------------- SCHED_PRIN_AMT The scheduled principal amount as reported by the 2 No commas(,) or dollar signs ($) Servicer for the current cycle -- only applicable for Scheduled/Scheduled Loans. ---------------------------------------------------------------------------------- --------- --------------------------------------- SCHED_NET_INT The scheduled gross interest amount less the 2 No commas(,) or dollar signs ($) service fee amount for the current cycle as reported by the Servicer -- only applicable for Scheduled/Scheduled Loans. ---------------------------------------------------------------------------------- --------- --------------------------------------- ACTL_PRIN_AMT The actual principal amount collected by the 2 No commas(,) or dollar signs ($) Servicer for the current reporting cycle -- only applicable for Actual/Actual Loans. ---------------------------------------------------------------------------------- --------- --------------------------------------- ACTL_NET_INT The actual gross interest amount less the service 2 No commas(,) or dollar signs ($) fee amount for the current reporting cycle as reported by the Servicer -- only applicable for Actual/Actual Loans. ---------------------------------------------------------------------------------- --------- --------------------------------------- PREPAY_PENALTY_ AMT The penalty amount received when a borrower 2 No commas(,) or dollar signs ($) prepays on his loan as reported by the Servicer. ---------------------------------------------------------------------------------- --------- --------------------------------------- PREPAY_PENALTY_ WAIVED The prepayment penalty amount for the loan waived 2 No commas(,) or dollar signs ($) by the servicer. ---------------------------------------------------------------------------------- --------- --------------------------------------- ---------------------------------------------------------------------------------- --------- --------------------------------------- MOD_DATE The Effective Payment Date of the Modification for MM/DD/YYYY the loan. ---------------------------------------------------------------------------------- --------- --------------------------------------- MOD_TYPE The Modification Type. Varchar - value can be alpha or numeric ---------------------------------------------------------------------------------- --------- --------------------------------------- DELINQ_P&I_ADVANCE_AMT The current outstanding principal and interest 2 No commas(,) or dollar signs ($) advances made by Servicer. ---------------------------------------------------------------------------------- --------- ---------------------------------------

------------------------------ --------- Column Name Max Size ------------------------------ --------- SER_INVESTOR_NBR 20 ------------------------------ --------- LOAN_NBR 10 ------------------------------ --------- SERVICER_LOAN_NBR 10 ------------------------------ --------- BORROWER_NAME 30 ------------------------------ --------- SCHED_PAY_AMT 11 ------------------------------ --------- NOTE_INT_RATE 6 ------------------------------ --------- NET_INT_RATE 6 ------------------------------ --------- SERV_FEE_RATE 6 ------------------------------ --------- SERV_FEE_AMT 11 ------------------------------ --------- NEW_PAY_AMT 11 ------------------------------ --------- NEW_LOAN_RATE 6 ------------------------------ --------- ARM_INDEX_RATE 6 ------------------------------ --------- ACTL_BEG_PRIN_BAL 11 ------------------------------ --------- ACTL_END_PRIN_BAL 11 ------------------------------ --------- BORR_NEXT_PAY_DUE_DATE 10 ------------------------------ --------- SERV_CURT_AMT_1 11 ------------------------------ --------- SERV_CURT_DATE_1 10 ------------------------------ --------- CURT_ADJ_ AMT_1 11 ------------------------------ --------- SERV_CURT_AMT_2 11 ------------------------------ --------- SERV_CURT_DATE_2 10 ------------------------------ --------- CURT_ADJ_ AMT_2 11 ------------------------------ --------- SERV_CURT_AMT_3 11 ------------------------------ --------- SERV_CURT_DATE_3 10 ------------------------------ --------- CURT_ADJ_AMT_3 11 ------------------------------ --------- PIF_AMT 11 ------------------------------ --------- PIF_DATE 10 ------------------------------ --------- ACTION_CODE ------------------------------ --------- INT_ADJ_AMT 11 ------------------------------ --------- SOLDIER_SAILOR_ADJ_AMT 11 ------------------------------ --------- NON_ADV_LOAN_AMT 11 ------------------------------ --------- LOAN_LOSS_AMT 11 ------------------------------ --------- SCHED_BEG_PRIN_BAL 11 ------------------------------ --------- SCHED_END_PRIN_BAL 11 ------------------------------ --------- SCHED_PRIN_AMT 11 ------------------------------ --------- SCHED_NET_INT 11 ------------------------------ --------- ACTL_PRIN_AMT 11 ------------------------------ --------- ACTL_NET_INT 11 ------------------------------ --------- PREPAY_PENALTY_ AMT 11 ------------------------------ --------- PREPAY_PENALTY_ WAIVED 11 ------------------------------ --------- ------------------------------ --------- MOD_DATE 10 ------------------------------ --------- MOD_TYPE 30 ------------------------------ --------- DELINQ_P&I_ADVANCE_AMT 11 ------------------------------ ---------

(page) STANDARD FILE LAYOUT- DELINQUENCY REPORTING Exhibit D-2: Standard File Layout - Delinquency Reporting Column/Header Name Description Decimal Format Comment SERVICER_LOAN_NBR A unique number assigned to a loan by the Servicer. This may be different than the LOAN_NBR LOAN_NBR A unique identifier assigned to each loan by the originator. CLIENT_NBR Servicer Client Number SERV_INVESTOR_NBR Contains a unique number as assigned by an external servicer to identify a group of loans in their system. BORROWER_FIRST_NAME First Name of the Borrower. BORROWER_LAST_NAME Last name of the borrower. PROP_ADDRESS Street Name and Number of Property PROP_STATE The state where the property located. PROP_ZIP Zip code where the property is located. BORR_NEXT_PAY_DUE_DATE The date that the borrower's next payment is due to the MM/DD/YYYY servicer at the end of processing cycle, as reported by Servicer. LOAN_TYPE Loan Type (i.e. FHA, VA, Conv) BANKRUPTCY_FILED_DATE The date a particular bankruptcy claim was filed. MM/DD/YYYY BANKRUPTCY_CHAPTER_CODE The chapter under which the bankruptcy was filed. BANKRUPTCY_CASE_NBR The case number assigned by the court to the bankruptcy filing. POST_PETITION_DUE_DATE The payment due date once the bankruptcy has been approved MM/DD/YYYY by the courts BANKRUPTCY_DCHRG_DISM_DATE The Date The Loan Is Removed From Bankruptcy. Either by MM/DD/YYYY Dismissal, Discharged and/or a Motion For Relief Was Granted. LOSS_MIT_APPR_DATE The Date The Loss Mitigation Was Approved By The Servicer MM/DD/YYYY LOSS_MIT_TYPE The Type Of Loss Mitigation Approved For A Loan Such As; LOSS_MIT_EST_COMP_DATE The Date The Loss Mitigation /Plan Is Scheduled To End/Close MM/DD/YYYY LOSS_MIT_ACT_COMP_DATE The Date The Loss Mitigation Is Actually Completed MM/DD/YYYY FRCLSR_APPROVED_DATE The date DA Admin sends a letter to the servicer with MM/DD/YYYY instructions to begin foreclosure proceedings. ATTORNEY_REFERRAL_DATE Date File Was Referred To Attorney to Pursue Foreclosure MM/DD/YYYY FIRST_LEGAL_DATE Notice of 1st legal filed by an Attorney in a Foreclosure MM/DD/YYYY Action FRCLSR_SALE_EXPECTED_DATE The date by which a foreclosure sale is expected to occur. MM/DD/YYYY FRCLSR_SALE_DATE The actual date of the foreclosure sale. MM/DD/YYYY FRCLSR_SALE_AMT The amount a property sold for at the foreclosure sale. 2 No commas(,) or dollar signs ($) EVICTION_START_DATE The date the servicer initiates eviction of the borrower. MM/DD/YYYY EVICTION_COMPLETED_DATE The date the court revokes legal possession of the property MM/DD/YYYY from the borrower. LIST_PRICE The price at which an REO property is marketed. 2 No commas(,) or dollar signs ($) LIST_DATE The date an REO property is listed at a particular price. MM/DD/YYYY OFFER_AMT The dollar value of an offer for an REO property. 2 No commas(,) or dollar signs ($) OFFER_DATE_TIME The date an offer is received by DA Admin or by the Servicer. MM/DD/YYYY REO_CLOSING_DATE The date the REO sale of the property is scheduled to close. MM/DD/YYYY REO_ACTUAL_CLOSING_DATE Actual Date Of REO Sale MM/DD/YYYY OCCUPANT_CODE Classification of how the property is occupied. PROP_CONDITION_CODE A code that indicates the condition of the property. PROP_INSPECTION_DATE The date a property inspection is performed. MM/DD/YYYY APPRAISAL_DATE The date the appraisal was done. MM/DD/YYYY CURR_PROP_VAL The current "as is" value of the property based on brokers 2 price opinion or appraisal. REPAIRED_PROP_VAL The amount the property would be worth if repairs are 2 completed pursuant to a broker's price opinion or appraisal. If applicable: DELINQ_STATUS_CODE FNMA Code Describing Status of Loan DELINQ_REASON_CODE The circumstances which caused a borrower to stop paying on a loan. Code indicates the reason why the loan is in default for this cycle. MI_CLAIM_FILED_DATE Date Mortgage Insurance Claim Was Filed With Mortgage MM/DD/YYYY Insurance Company. MI_CLAIM_AMT Amount of Mortgage Insurance Claim Filed No commas(,) or dollar signs ($) MI_CLAIM_PAID_DATE Date Mortgage Insurance Company Disbursed Claim Payment MM/DD/YYYY MI_CLAIM_AMT_PAID Amount Mortgage Insurance Company Paid On Claim 2 No commas(,) or dollar signs ($) POOL_CLAIM_FILED_DATE Date Claim Was Filed With Pool Insurance Company MM/DD/YYYY POOL_CLAIM_AMT Amount of Claim Filed With Pool Insurance Company 2 No commas(,) or dollar signs ($) POOL_CLAIM_PAID_DATE Date Claim Was Settled and The Check Was Issued By The Pool MM/DD/YYYY Insurer POOL_CLAIM_AMT_PAID Amount Paid On Claim By Pool Insurance Company 2 No commas(,) or dollar signs ($) FHA_PART_A_CLAIM_FILED_DATE Date FHA Part A Claim Was Filed With HUD MM/DD/YYYY FHA_PART_A_CLAIM_AMT Amount of FHA Part A Claim Filed 2 No commas(,) or dollar signs ($) FHA_PART_A_CLAIM_PAID_DATE Date HUD Disbursed Part A Claim Payment MM/DD/YYYY FHA_PART_A_CLAIM_PAID_AMT Amount HUD Paid on Part A Claim 2 No commas(,) or dollar signs ($) FHA_PART_B_CLAIM_FILED_DATE Date FHA Part B Claim Was Filed With HUD MM/DD/YYYY FHA_PART_B_CLAIM_AMT Amount of FHA Part B Claim Filed 2 No commas(,) or dollar signs ($) FHA_PART_B_CLAIM_PAID_DATE Date HUD Disbursed Part B Claim Payment MM/DD/YYYY FHA_PART_B_CLAIM_PAID_AMT Amount HUD Paid on Part B Claim 2 No commas(,) or dollar signs ($) VA_CLAIM_FILED_DATE Date VA Claim Was Filed With the Veterans Admin MM/DD/YYYY VA_CLAIM_PAID_DATE Date Veterans Admin. Disbursed VA Claim Payment MM/DD/YYYY VA_CLAIM_PAID_AMT Amount Veterans Admin. Paid on VA Claim 2 No commas(,) or dollar signs ($)

(page) Exhibit D-3: Standard File Codes - Delinquency Reporting The Loss Mit Type field should show the approved Loss Mitigation Code as follows: [ ] ASUM- Approved Assumption [ ] BAP- Borrower Assistance Program [ ] CO- Charge Off [ ] DIL- Deed-in-Lieu [ ] FFA- Formal Forbearance Agreement [ ] MOD- Loan Modification [ ] PRE- Pre-Sale [ ] SS- Short Sale [ ] MISC- Anything else approved by the PMI or Pool Insurer NOTE: Wells Fargo Bank will accept alternative Loss Mitigation Types to those above, provided that they are consistent with industry standards. If Loss Mitigation Types other than those above are used, the Servicer must supply Wells Fargo Bank with a description of each of the Loss Mitigation Types prior to sending the file. The Occupant Code field should show the current status of the property code as follows: [ ] Mortgagor [ ] Tenant [ ] Unknown [ ] Vacant The Property Condition field should show the last reported condition of the property as follows: [ ] Damaged [ ] Excellent [ ] Fair [ ] Gone [ ] Good [ ] Poor [ ] Special Hazard [ ] Unknown (page) Exhibit D-3: Standard File Codes - Delinquency Reporting, Continued The FNMA Delinquent Reason Code field should show the Reason for Delinquency as follows: ------------------------ ------------------------------------------------ Delinquency Code Delinquency Description ------------------------ ------------------------------------------------ ------------------------ ------------------------------------------------ 001 FNMA-Death of principal mortgagor ------------------------ ------------------------------------------------ ------------------------ ------------------------------------------------ 002 FNMA-Illness of principal mortgagor ------------------------ ------------------------------------------------ ------------------------ ------------------------------------------------ 003 FNMA-Illness of mortgagor's family member ------------------------ ------------------------------------------------ ------------------------ ------------------------------------------------ 004 FNMA-Death of mortgagor's family member ------------------------ ------------------------------------------------ ------------------------ ------------------------------------------------ 005 FNMA-Marital difficulties ------------------------ ------------------------------------------------ ------------------------ ------------------------------------------------ 006 FNMA-Curtailment of income ------------------------ ------------------------------------------------ ------------------------ ------------------------------------------------ 007 FNMA-Excessive Obligation ------------------------ ------------------------------------------------ ------------------------ ------------------------------------------------ 008 FNMA-Abandonment of property ------------------------ ------------------------------------------------ ------------------------ ------------------------------------------------ 009 FNMA-Distant employee transfer ------------------------ ------------------------------------------------ ------------------------ ------------------------------------------------ 011 FNMA-Property problem ------------------------ ------------------------------------------------ ------------------------ ------------------------------------------------ 012 FNMA-Inability to sell property ------------------------ ------------------------------------------------ ------------------------ ------------------------------------------------ 013 FNMA-Inability to rent property ------------------------ ------------------------------------------------ ------------------------ ------------------------------------------------ 014 FNMA-Military Service ------------------------ ------------------------------------------------ ------------------------ ------------------------------------------------ 015 FNMA-Other ------------------------ ------------------------------------------------ ------------------------ ------------------------------------------------ 016 FNMA-Unemployment ------------------------ ------------------------------------------------ ------------------------ ------------------------------------------------ 017 FNMA-Business failure ------------------------ ------------------------------------------------ ------------------------ ------------------------------------------------ 019 FNMA-Casualty loss ------------------------ ------------------------------------------------ ------------------------ ------------------------------------------------ 022 FNMA-Energy environment costs ------------------------ ------------------------------------------------ ------------------------ ------------------------------------------------ 023 FNMA-Servicing problems ------------------------ ------------------------------------------------ ------------------------ ------------------------------------------------ 026 FNMA-Payment adjustment ------------------------ ------------------------------------------------ ------------------------ ------------------------------------------------ 027 FNMA-Payment dispute ------------------------ ------------------------------------------------ ------------------------ ------------------------------------------------ 029 FNMA-Transfer of ownership pending ------------------------ ------------------------------------------------ ------------------------ ------------------------------------------------ 030 FNMA-Fraud ------------------------ ------------------------------------------------ ------------------------ ------------------------------------------------ 031 FNMA-Unable to contact borrower ------------------------ ------------------------------------------------ ------------------------ ------------------------------------------------ INC FNMA-Incarceration ------------------------ ------------------------------------------------ (page) Exhibit D-3: Standard File Codes - Delinquency Reporting, Continued The FNMA Delinquent Status Code field should show the Status of Default as follows: ------------------------ ------------------------------------------------- Status Code Status Description ------------------------ ------------------------------------------------- ------------------------ ------------------------------------------------- 09 Forbearance ------------------------ ------------------------------------------------- ------------------------ ------------------------------------------------- 17 Pre-foreclosure Sale Closing Plan Accepted ------------------------ ------------------------------------------------- ------------------------ ------------------------------------------------- 24 Government Seizure ------------------------ ------------------------------------------------- ------------------------ ------------------------------------------------- 26 Refinance ------------------------ ------------------------------------------------- ------------------------ ------------------------------------------------- 27 Assumption ------------------------ ------------------------------------------------- ------------------------ ------------------------------------------------- 28 Modification ------------------------ ------------------------------------------------- ------------------------ ------------------------------------------------- 29 Charge-Off ------------------------ ------------------------------------------------- ------------------------ ------------------------------------------------- 30 Third Party Sale ------------------------ ------------------------------------------------- ------------------------ ------------------------------------------------- 31 Probate ------------------------ ------------------------------------------------- ------------------------ ------------------------------------------------- 32 Military Indulgence ------------------------ ------------------------------------------------- ------------------------ ------------------------------------------------- 43 Foreclosure Started ------------------------ ------------------------------------------------- ------------------------ ------------------------------------------------- 44 Deed-in-Lieu Started ------------------------ ------------------------------------------------- ------------------------ ------------------------------------------------- 49 Assignment Completed ------------------------ ------------------------------------------------- ------------------------ ------------------------------------------------- 61 Second Lien Considerations ------------------------ ------------------------------------------------- ------------------------ ------------------------------------------------- 62 Veteran's Affairs-No Bid ------------------------ ------------------------------------------------- ------------------------ ------------------------------------------------- 63 Veteran's Affairs-Refund ------------------------ ------------------------------------------------- ------------------------ ------------------------------------------------- 64 Veteran's Affairs-Buydown ------------------------ ------------------------------------------------- ------------------------ ------------------------------------------------- 65 Chapter 7 Bankruptcy ------------------------ ------------------------------------------------- ------------------------ ------------------------------------------------- 66 Chapter 11 Bankruptcy ------------------------ ------------------------------------------------- ------------------------ ------------------------------------------------- 67 Chapter 13 Bankruptcy ------------------------ ------------------------------------------------- (page) Exhibit D-4: Calculation of Realized Loss/Gain Form 332 - Instruction Sheet NOTE: Do not net or combine items. Show all expenses individually and all credits as separate line items. Claim packages are due on the remittance report date. Late submissions may result in claims not being passed until the following month. The Servicer is responsible to remit all funds pending loss approval and /or resolution of any disputed items. The numbers on the 332 form correspond with the numbers listed below. Liquidation and Acquisition Expenses: 1. The Actual Unpaid Principal Balance of the Mortgage Loan. For documentation, an Amortization Schedule from date of default through liquidation breaking out the net interest and servicing fees advanced is required. 2. The Total Interest Due less the aggregate amount of servicing fee that would have been earned if all delinquent payments had been made as agreed. For documentation, an Amortization Schedule from date of default through liquidation breaking out the net interest and servicing fees advanced is required. 3. Accrued Servicing Fees based upon the Scheduled Principal Balance of the Mortgage Loan as calculated on a monthly basis. For documentation, an Amortization Schedule from date of default through liquidation breaking out the net interest and servicing fees advanced is required. 4-12. Complete as applicable. Required documentation: * For taxes and insurance advances - see page 2 of 332 form - breakdown required showing period of coverage, base tax, interest, penalty. Advances prior to default require evidence of servicer efforts to recover advances. * For escrow advances - complete payment history (to calculate advances from last positive escrow balance forward) * Other expenses - copies of corporate advance history showing all payments * REO repairs > $1500 require explanation * REO repairs >$3000 require evidence of at least 2 bids. * Short Sale or Charge Off require P&L supporting the decision and WFB's approved Officer Certificate * Unusual or extraordinary items may require further documentation. 13. The total of lines 1 through 12. Credits: 14-21. Complete as applicable. Required documentation: * Copy of the HUD 1 from the REO sale. If a 3rd Party Sale, bid instructions and Escrow Agent / Attorney Letter of Proceeds Breakdown. * Copy of EOB for any MI or gov't guarantee * All other credits need to be clearly defined on the 332 form 22. The total of lines 14 through 21. Please Note: For HUD/VA loans, use line (18a) for Part A/Initial proceeds and line (18b) for Part B/Supplemental proceeds. Total Realized Loss (or Amount of Any Gain) 23. The total derived from subtracting line 22 from 13. If the amount represents a realized gain, show the amount in parenthesis ( ). (page) Exhibit D-4A: Calculation of Realized Loss/Gain Form 332 Prepared by: __________________ Date: ____________________________ Phone: ________________________ Email Address:_____________________ ---------------------------------- -------------------------------------- -------------------------------------------- Servicer Loan No. Servicer Name Servicer Address ---------------------------------- -------------------------------------- --------------------------------------------

WELLS FARGO BANK, N.A. Loan No._____________________________ Borrower's Name: _________________________________________________________ Property Address: _________________________________________________________ Liquidation Type: REO Sale 3rd Party Sale Short Sale Charge Off Was this loan granted a Bankruptcy deficiency or cramdown Yes No If "Yes", provide deficiency or cramdown amount ______________________________ Liquidation and Acquisition Expenses: (1) Actual Unpaid Principal Balance of Mortgage Loan $ ______________ (1) (2) Interest accrued at Net Rate ________________(2) (3) Accrued Servicing Fees ________________(3) (4) Attorney's Fees ________________(4) (5) Taxes (see page 2) ________________(5) (6) Property Maintenance _______________ (6) (7) MI/Hazard Insurance Premiums (see page 2) ________________(7) (8) Utility Expenses ________________(8) (9) Appraisal/BPO ________________(9) (10) Property Inspections ________________(10) (11) FC Costs/Other Legal Expenses ________________(11) (12) Other (itemize) ________________(12) Cash for Keys__________________________ ________________(12) HOA/Condo Fees________________________ ________________(12) _______________________________________ ________________(12) Total Expenses $ _______________(13) Credits: (14) Escrow Balance $ _______________(14) (15) HIP Refund ________________ (15) (16) Rental Receipts ________________ (16) (17) Hazard Loss Proceeds ________________ (17) (18) Primary Mortgage Insurance / Gov't Insurance ________________ (18a) HUD Part A _________________(18b) HUD Part B (19) Pool Insurance Proceeds ________________ (19) (20) Proceeds from Sale of Acquired Property ________________ (20) (21) Other (itemize) ________________ (21) _________________________________________ ________________ (21) Total Credits $________________(22) Total Realized Loss (or Amount of Gain) $________________(23) (page) Escrow Disbursement Detail ------------------ --------------- ---------------- --------------- ---------------- ---------------- ---------------- Type Date Paid Period of Total Paid Base Amount Penalties Interest Coverage (Tax /Ins.) ------------------ --------------- ---------------- --------------- ---------------- ---------------- ---------------- ------------------ --------------- ---------------- --------------- ---------------- ---------------- ----------------

(page) ATTACHMENT 4 NEW EXHIBIT H TO THE SERVICING AGREEMENT SERVICING CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE The assessment of compliance to be delivered by [the Company][Name of Subservicer] shall address, as a minimum, the criteria identified below as "Applicable Servicing Criteria" ------------------ ------------------------------------------------------------------------------ Reg AB Reference Servicing Criteria ------------------ ------------------------------------------------------------------------------ ------------------ ------------------------------------------------------------------------------ General Servicing Considerations ------------------ ------------------------------------------------------------------------------ ------------------ ------------------------------------------------------------------------------ 1122(d)(1)(i) Policies and procedures are instituted to monitor any performance or other triggers and events of default in accordance with the transaction agreements. ------------------ ------------------------------------------------------------------------------ ------------------ ------------------------------------------------------------------------------ 1122(d)(1)(ii) If any material servicing activities are outsourced to third parties, policies and procedures are instituted to monitor the third party's performance and compliance with such servicing activities. ------------------ ------------------------------------------------------------------------------ ------------------ ------------------------------------------------------------------------------ Any requirements in the transaction agreements to maintain a back-up 1122(d)(1)(iii) servicer for the mortgage loans are maintained. ------------------ ------------------------------------------------------------------------------ ------------------ ------------------------------------------------------------------------------ 1122(d)(1)(iv) A fidelity bond and errors and omissions policy is in effect on the party participating in the servicing function throughout the reporting period in the amount of coverage required by and otherwise in accordance with the terms of the transaction agreements. ------------------ ------------------------------------------------------------------------------ ------------------ ------------------------------------------------------------------------------ Cash Collection and Administration ------------------ ------------------------------------------------------------------------------ ------------------ ------------------------------------------------------------------------------ 1122(d)(2)(i) Payments on mortgage loans are deposited into the appropriate custodial bank accounts and related bank clearing accounts no more than two business days following receipt, or such other number of days specified in the transaction agreements. ------------------ ------------------------------------------------------------------------------ ------------------ ------------------------------------------------------------------------------ Disbursements made via wire transfer on behalf of an obligor or to an 1122(d)(2)(ii) investor are made only by authorized personnel. ------------------ ------------------------------------------------------------------------------ ------------------ ------------------------------------------------------------------------------ Advances of funds or guarantees regarding collections, cash flows or distributions, and any interest or other fees charged for such advances, are 1122(d)(2)(iii) made, reviewed and approved as specified in the transaction agreements. ------------------ ------------------------------------------------------------------------------ ------------------ ------------------------------------------------------------------------------ The related accounts for the transaction, such as cash reserve accounts or accounts established as a form of overcollateralization, are separately maintained (e.g., with respect to commingling of cash) as set forth in the 1122(d)(2)(iv) transaction agreements. ------------------ ------------------------------------------------------------------------------ ------------------ ------------------------------------------------------------------------------ Each custodial account is maintained at a federally insured depository institution as set forth in the transaction agreements. For purposes of this criterion, "federally insured depository institution" with respect to a foreign financial institution means a foreign financial institution that 1122(d)(2)(v) meets the requirements of Rule 13k-1(b)(1) of the Securities Exchange Act. ------------------ ------------------------------------------------------------------------------ ------------------ ------------------------------------------------------------------------------ 1122(d)(2)(vi) Unissued checks are safeguarded so as to prevent unauthorized access. ------------------ ------------------------------------------------------------------------------ ------------------ ------------------------------------------------------------------------------ 1122(d)(2)(vii) Reconciliations are prepared on a monthly basis for all asset-backed securities related bank accounts, including custodial accounts and related bank clearing accounts. These reconciliations are (A) mathematically accurate; (B) prepared within 30 calendar days after the bank statement cutoff date, or such other number of days specified in the transaction agreements; (C) reviewed and approved by someone other than the person who prepared the reconciliation; and (D) contain explanations for reconciling items. These reconciling items are resolved within 90 calendar days of their original identification, or such other number of days specified in the transaction agreements. ------------------ ------------------------------------------------------------------------------ ------------------ ------------------------------------------------------------------------------ Investor Remittances and Reporting ------------------ ------------------------------------------------------------------------------ ------------------ ------------------------------------------------------------------------------ 1122(d)(3)(i) Reports to investors, including those to be filed with the Commission, are maintained in accordance with the transaction agreements and applicable Commission requirements. Specifically, such reports (A) are prepared in accordance with timeframes and other terms set forth in the transaction agreements; (B) provide information calculated in accordance with the terms specified in the transaction agreements; (C) are filed with the Commission as required by its rules and regulations; and (D) agree with investors' or the trustee's records as to the total unpaid principal balance and number of mortgage loans serviced by the Servicer. ------------------ ------------------------------------------------------------------------------ ------------------ ------------------------------------------------------------------------------ Amounts due to investors are allocated and remitted in accordance with timeframes, distribution priority and other terms set forth in the 1122(d)(3)(ii) transaction agreements. ------------------ ------------------------------------------------------------------------------ ------------------ ------------------------------------------------------------------------------ Disbursements made to an investor are posted within two business days to the Servicer's investor records, or such other number of days specified in the 1122(d)(3)(iii) transaction agreements. ------------------ ------------------------------------------------------------------------------ ------------------ ------------------------------------------------------------------------------ Amounts remitted to investors per the investor reports agree with cancelled 1122(d)(3)(iv) checks, or other form of payment, or custodial bank statements. ------------------ ------------------------------------------------------------------------------ ------------------ ------------------------------------------------------------------------------ Reg AB Reference Servicing Criteria ------------------ ------------------------------------------------------------------------------ ------------------ ------------------------------------------------------------------------------ Pool Asset Administration ------------------ ------------------------------------------------------------------------------ ------------------ ------------------------------------------------------------------------------ 1122(d)(4)(i) Collateral or security on mortgage loans is maintained as required by the transaction agreements or related mortgage loan documents. ------------------ ------------------------------------------------------------------------------ ------------------ ------------------------------------------------------------------------------ Mortgage loan and related documents are safeguarded as required by the 1122(d)(4)(ii) transaction agreements ------------------ ------------------------------------------------------------------------------ ------------------ ------------------------------------------------------------------------------ Any additions, removals or substitutions to the asset pool are made, reviewed and approved in accordance with any conditions or requirements in 1122(d)(4)(iii) the transaction agreements. ------------------ ------------------------------------------------------------------------------ ------------------ ------------------------------------------------------------------------------ Payments on mortgage loans, including any payoffs, made in accordance with the related mortgage loan documents are posted to the Servicer's obligor records maintained no more than two business days after receipt, or such other number of days specified in the transaction agreements, and allocated to principal, interest or other items (e.g., escrow) in accordance with the 1122(d)(4)(iv) related mortgage loan documents. ------------------ ------------------------------------------------------------------------------ ------------------ ------------------------------------------------------------------------------ The Servicer's records regarding the mortgage loans agree with the 1122(d)(4)(v) Servicer's records with respect to an obligor's unpaid principal balance. ------------------ ------------------------------------------------------------------------------ ------------------ ------------------------------------------------------------------------------ Changes with respect to the terms or status of an obligor's mortgage loans (e.g., loan modifications or re-agings) are made, reviewed and approved by authorized personnel in accordance with the transaction agreements and 1122(d)(4)(vi) related pool asset documents. ------------------ ------------------------------------------------------------------------------ ------------------ ------------------------------------------------------------------------------ Loss mitigation or recovery actions (e.g., forbearance plans, modifications and deeds in lieu of foreclosure, foreclosures and repossessions, as applicable) are initiated, conducted and concluded in accordance with the 1122(d)(4)(vii) timeframes or other requirements established by the transaction agreements. ------------------ ------------------------------------------------------------------------------ ------------------ ------------------------------------------------------------------------------ Records documenting collection efforts are maintained during the period a mortgage loan is delinquent in accordance with the transaction agreements. Such records are maintained on at least a monthly basis, or such other period specified in the transaction agreements, and describe the entity's activities in monitoring delinquent mortgage loans including, for example, phone calls, letters and payment rescheduling plans in cases where 1122(d)(4)(viii) delinquency is deemed temporary (e.g., illness or unemployment). ------------------ ------------------------------------------------------------------------------ ------------------ ------------------------------------------------------------------------------ Adjustments to interest rates or rates of return for mortgage loans with 1122(d)(4)(ix) variable rates are computed based on the related mortgage loan documents. ------------------ ------------------------------------------------------------------------------ ------------------ ------------------------------------------------------------------------------ Regarding any funds held in trust for an obligor (such as escrow accounts): (A) such funds are analyzed, in accordance with the obligor's mortgage loan documents, on at least an annual basis, or such other period specified in the transaction agreements; (B) interest on such funds is paid, or credited, to obligors in accordance with applicable mortgage loan documents and state laws; and (C) such funds are returned to the obligor within 30 calendar days of full repayment of the related mortgage loans, or such other number of 1122(d)(4)(x) days specified in the transaction agreements. ------------------ ------------------------------------------------------------------------------ ------------------ ------------------------------------------------------------------------------ Payments made on behalf of an obligor (such as tax or insurance payments) are made on or before the related penalty or expiration dates, as indicated on the appropriate bills or notices for such payments, provided that such support has been received by the servicer at least 30 calendar days prior to these dates, or such other number of days specified in the transaction 1122(d)(4)(xi) agreements. ------------------ ------------------------------------------------------------------------------ ------------------ ------------------------------------------------------------------------------ Any late payment penalties in connection with any payment to be made on behalf of an obligor are paid from the Servicer's funds and not charged to the obligor, unless the late payment was due to the obligor's error or 1122(d)(4)(xii) omission. ------------------ ------------------------------------------------------------------------------ ------------------ ------------------------------------------------------------------------------ Disbursements made on behalf of an obligor are posted within two business days to the obligor's records maintained by the servicer, or such other 1122(d)(4)(xiii) number of days specified in the transaction agreements. ------------------ ------------------------------------------------------------------------------ ------------------ ------------------------------------------------------------------------------ Delinquencies, charge-offs and uncollectible accounts are recognized and 1122(d)(4)(xiv) recorded in accordance with the transaction agreements. ------------------ ------------------------------------------------------------------------------ ------------------ ------------------------------------------------------------------------------ Any external enhancement or other support, identified in Item 1114(a)(1) through (3) or Item 1115 of Regulation AB, is maintained as set forth in the 1122(d)(4)(xv) transaction agreements. ------------------ ------------------------------------------------------------------------------

------------------ ------------------- ------------------- Reg AB Reference Applicable Inapplicable Servicing Criteria Servicing Criteria ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- 1122(d)(1)(i) X ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- 1122(d)(1)(ii) X ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- 1122(d)(1)(iii) X ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- 1122(d)(1)(iv) X ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- 1122(d)(2)(i) X ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- 1122(d)(2)(ii) X ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- 1122(d)(2)(iii) X ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- 1122(d)(2)(iv) X ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- 1122(d)(2)(v) X ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- 1122(d)(2)(vi) X ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- 1122(d)(2)(vii) X ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- 1122(d)(3)(i) X ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- X 1122(d)(3)(ii) ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- 1122(d)(3)(iii) X ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- 1122(d)(3)(iv) X ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- Reg AB Reference Applicable Inapplicable Servicing Criteria Servicing Criteria ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- 1122(d)(4)(i) X ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- 1122(d)(4)(ii) X ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- 1122(d)(4)(iii) X ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- 1122(d)(4)(iv) X ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- 1122(d)(4)(v) X ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- 1122(d)(4)(vi) X ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- 1122(d)(4)(vii) X ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- 1122(d)(4)(viii) X ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- 1122(d)(4)(ix) X ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- 1122(d)(4)(x) X ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- 1122(d)(4)(xi) X ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- 1122(d)(4)(xii) X ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- 1122(d)(4)(xiii) X ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- 1122(d)(4)(xiv) X ------------------ ------------------- ------------------- ------------------ ------------------- ------------------- 1122(d)(4)(xv) X ------------------ ------------------- -------------------

(page) ATTACHMENT 5 AFFILIATIONS The Servicer is affiliated with the Master Servicer, Securities Administrator and a custodian for this transaction.

Deutsche Alt-A Securities Mortgage Loan Trust, Series 2006-AF1 8-K