ALBA 2007 – 1 plc - Irish Stock Exchange

elation to the origination of any Mortgage Loan, may have been negligent or fraudulent. However,
and notwithstanding the absence of any such direct rights, the Seller has, to the extent assignable,
assigned its causes and rights of actions against third parties to the Issuer pursuant to each Mortgage
Sale Agreement. To the extent that such causes and rights of actions against solicitors and valuers prove
to be unassignable or that the assignment is not binding on the relevant solicitors or valuers or that the
relevant solicitors or valuers do not owe a duty of care to the Issuer, the Seller has undertaken to both
indemnify the Issuer for any losses incurred by it as a result of any negligence or breach of contract by
a solicitor or valuer as well as to instigate action (including, if possible, legal proceedings by the
Originator) against such solicitor or valuer as the Issuer (through the Seller) instructs, provided that the
Issuer first indemnifies the Seller for the costs of taking such action. Notwithstanding this, the Seller is
not required to pay the Issuer any more than received by it from the Originator as a result of taking any
such action.
Collectability of Loans
The collectability of amounts due under the Mortgage Loans is subject to credit, liquidity and interest
rate risks and will generally vary in response to, among other things, market interest rates, general
economic conditions, the financial standing of Borrowers and other similar factors. Other factors
(including factors which may not affect real estate values) may have an impact on the ability of the
Borrowers to repay the Mortgage Loans. Loss of earnings, illness, divorce and other similar factors
may lead to an increase in delinquencies and bankruptcy filings by Borrowers and could ultimately have
an adverse impact on the ability of Borrowers to repay Mortgage Loans.
In addition, the ability of the Issuer to dispose of a Property, in the event of enforcement against a
Borrower at a price sufficient to repay the amounts outstanding under the relevant Mortgage Loan will
depend upon a number of factors including the availability of buyers for the Property.
Risks of Losses Associated with Declining Property Values
The Security for the Notes and the Instruments consists of the Charged Assets and may be affected by,
among other things, a decline in the value of the Properties. No assurance can be given that the values
of the Properties have remained or will remain at the level at which they were on the dates of
origination of the related Mortgage Loans. If the residential property market in the United Kingdom
should experience an overall decline in property values, such a decline could in certain circumstances
result in the value of the Related Security created by the Mortgages being significantly reduced and,
ultimately, may result in losses to the Noteholders and Instrumentholders if the Security is required to
be enforced.
Prospective investors should be aware that, other than the valuation of Properties undertaken as at
origination (as more fully described in "Mortgage Pool – Lending Criteria"), no revaluation of any
Property has been undertaken by the Seller, the Issuer, the Servicer, the Trustee or any other person in
respect of the transactions described in this document.
Lending Criteria
In respect of each Mortgage Loan, GMAC-RFC took reasonable steps prior to making the Mortgage
Loan to verify that the lending criteria of GMAC-RFC (the "GMAC-RFC Lending Criteria") were
satisfied (and that any discretions were exercised in accordance with GMAC-RFC's policies). The
lending criteria of the Seller (the "Oakwood Lending Criteria" and, together with the GMAC-RFC
Lending Criteria, the "Lending Criteria") will apply, together, where applicable, with product
specifications in respect of all Further Advances, Converted Mortgage Loans and Ported Mortgage
Loans. The Lending Criteria consider, among other things, a Borrower's credit history, employment