EXHIBIT 10.34

Execution Copy

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PARTICIPATION INTEREST SALE AND CONTRIBUTION AGREEMENT
by and between

REVERSE MORTGAGE SOLUTIONS, INC.,
as Seller

and

RMS 2018-09, LLC,
as Purchaser

dated as of

October 1, 2018
Buyout Home Equity Conversion Mortgage Loans and REO Properties

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TABLE OF CONTENTS

Page

ARTICLE I
DEFINITIONS....................................................................................................1
ARTICLE II CLOSING; TERMS AND
CONDITIONS.....................................................7
Section 2.01 Agreement of Sale; Payment of Purchase Price and
Reconciliation.....7
Section 2.02 Servicing; Entitlement to Payments on the HECM
Loans....................7
Section 2.03 Payment of Costs and
Expenses...............................................................7
Section 2.04 Document
Delivery....................................................................................8
Section 2.05 Transfer of Legal Title Following Servicer
Termination........................8
ARTICLE III REPRESENTATIONS AND
WARRANTIES...............................................8
Section 3.01 Representations and Warranties Respecting
Seller...............................8
Section 3.02 Representations and Warranties Respecting the Mortgage
Assets.....10
Section 3.03 Disclaimer of Representations and Warranties Expressed
Herein.....17
Section 3.04 Remedies for Breach of Representations and
Warranties...................17
Section 3.05 Representations, Warranties and Covenants Respecting Purchaser..20
Section 3.06
Indemnification........................................................................................21
Section 3.07 Paying Agent
Account.............................................................................22
Section 3.08 HMDA
Reporting....................................................................................22
ARTICLE
IV..........................................................................................................................23
MISCELLANEOUS..............................................................................................................23
Section 4.01
Notices......................................................................................................23
Section 4.02 Sale
Treatment.........................................................................................24
Section 4.03
Exhibits....................................................................................................24
Section 4.04 General Interpretive
Principles.............................................................25
Section 4.05 Reproduction of
Documents...................................................................25
Section 4.06 Further
Assurances.................................................................................25
Section 4.07 Waiver;
Amendment...............................................................................26
Section 4.08 Governing Law;
Forum.........................................................................26
Section 4.09 Waiver of Jury
Trial...............................................................................27
Section 4.10 Severability
Clause.................................................................................27
Section 4.11 Successors; No Third Party
Beneficiaries..............................................27
Section 4.12
Confidentiality.........................................................................................28
Section 4.13 Entire
Agreement.....................................................................................29
Section 4.14 Execution in
Counterparts.....................................................................29

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Table of Contents
(continued)
Page

SCHEDULES

SCHEDULE I
CUT-OFF DATE STATED PRINCIPAL AND ADVANCE BALANCE

SCHEDULE II
FUNDING SCHEDULE

SCHEDULE 3.02(f)
NO DAMAGE

SCHEDULE 4.01
NOTICES

EXHIBITS

EXHIBIT A-1             MORTGAGE LOAN SCHEDULE
EXHIBIT A-2             REO PROPERTY SCHEDULE
EXHIBIT B            COLLATERAL DOCUMENTS
EXHIBIT C-1
REQUIRED FIELDS FOR MORTGAGE LOAN SCHEDULE FOR HECM LOANS (OTHER THAN REO
PROPERTIES)

EXHIBIT C-2
REQUIRED FIELDS FOR MORTGAGE LOAN SCHEDULE FOR REO PROPERTIES

EXHIBIT D             FORM OF PARTICIPATION CERTIFICATE

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PARTICIPATION INTEREST SALE AND CONTRIBUTION AGREEMENT
This Participation Interest Sale and Contribution Agreement (“Agreement”) is
made and entered into as of October 1, 2018 (“Effective Date”) by and between
RMS 2018-09, LLC, a Delaware limited liability company (“Purchaser”), and
Reverse Mortgage Solutions, Inc., a Delaware corporation (“Seller”).
RECITALS
WHEREAS, Purchaser has agreed to purchase and accept from Seller, and Seller has
agreed to sell and contribute to Purchaser, a Participation (as defined in this
Agreement) representing an undivided 100% interest in the Mortgage Assets and
related Advances as of the Closing Date, subject to the terms and conditions set
forth in this Agreement, such Participation being evidenced by the Participation
Certificate (as defined in this Agreement); and
WHEREAS, National Founders LP, a Delaware limited partnership (“Note Purchaser”)
and Purchaser entered into that certain Note Purchase Agreement, dated as of the
Effective Date, pursuant to which Note Purchaser will lend to Purchaser an
amount equal to the Note Principal Balance to allow Purchaser to acquire such
participation as contemplated by this Agreement, such loan being secured by,
among other things, all of the Purchaser’s right, title and interests in the
Participation Certificate;
NOW THEREFORE, in consideration of the mutual promises herein set forth and
other good and valuable consideration, the receipt of which is hereby
acknowledged, Seller and Purchaser agree as follows:

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ARTICLE I

DEFINITIONS
Unless the context requires otherwise, all capitalized terms used herein shall
have the meanings assigned to such terms in this Article I unless defined
elsewhere herein.
“Acceptable Servicing Practices”: With respect to any Mortgage Asset, those
mortgage servicing practices of prudent mortgage lending institutions servicing
similar mortgage loans in the jurisdictions where the related Mortgaged
Properties are located that are in compliance in all material respects with
Applicable Requirements.
“Advances”: All customary, reasonable and necessary “out of pocket” costs and
expenses advanced by Seller as servicer in respect of the Mortgage Assets in
accordance with Applicable Requirements or otherwise as consistent with prudent
mortgage servicing practices, including but not limited to, payments of property
taxes, homeowners association dues and other items that create a lien on a
Mortgaged Property, payment of insurance, payments for field visits, property
inspections, legal fees, appraisals, broker price opinions, curative title fees
and costs, bankruptcy expenses, and for the securing and maintenance of the
Mortgaged Property in the event of a foreclosure and subsequent sale, but
excluding all payments to a Mortgagor under the terms of the related Collateral
Documents, all to the extent that such amounts have not been recovered by Seller
from the applicable Agency.
“Agency”: FHA and HUD, as applicable.
“Applicable Requirements”: As of the time of reference and as applicable, (i)
the terms of the Collateral Documents, with respect to each Mortgage Asset,
(ii) all federal, state or local laws, rules, regulations, ordinances or
statutes of any governmental entity, in each case, applicable to sale, purchase,
ownership, foreclosure, servicing, insuring or guaranteeing of any HECM Loan or
Related Mortgage Loan at the relevant time, (iii) all Orders applicable to any
Mortgage Asset, and (iv) all legal and contractual obligations to or with any
Agency applicable to the servicing of any Mortgage Asset, including applicable
Guides.
“Business Day”: Any day other than (i) a Saturday or Sunday, (ii) a day that is
a statutory holiday under the laws of the United States or the State of New York
or (iii) a day on which banking and savings and loan institutions in New York or
any of the states where the parties are located, are authorized or obligated by
law or executive order to be closed.
“Closing Date”: the Effective Date.
“Closing Date Stated Advance Balance”: With respect to each Mortgage Asset, the
actual amount of unreimbursed Advances related thereto as of September 30, 2018
as set forth on the Closing Date Statement.

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“Closing Date Stated Principal Balance”: With respect to each Mortgage Asset,
the actual unpaid principal balance thereof as of September 30, 2018 as set
forth on the Closing Date Statement.
“Closing Date Statement”: As defined in Section 2.01(b) hereunder.
“Collateral Documents”: The collateral documents pertaining to each Mortgage
Asset as set forth in Exhibit B hereto.
“Collateral File”: With respect to each Mortgage Asset, a file containing the
Collateral Documents.
“Confidential Information”: As defined in Section 4.12(b) hereunder.
“Contribution”: A contribution by Seller to Purchaser of the value of the
Participation in excess of the Final Closing Payment.
“Credit File”: If and to the extent available on Seller’s Navigator servicing
system as to each Mortgage Asset, the electronic file containing the documents
relating to the origination and servicing of the HECM Loan or Related Mortgage
Loan, as applicable.
“Custodian”: Deutsche Bank National Trust Company.
“Cut-off Date”: August 31, 2018.
“Cut-off Date Stated Advance Balance”: With respect to each Mortgage Asset, the
actual amount of unreimbursed Advances related thereto as of the Cut-off Date,
as set forth on Schedule I.
“Cut-off Date Stated Principal Balance”: With respect to each Mortgage Asset,
the actual unpaid principal balance thereof as of the Cut-off Date, as set forth
on Schedule I.
“Defect Cure Period”: As defined in Section 2.04(b) hereunder.
“Document Defect”: Each materially defective or missing Collateral Document
required to be included in the applicable Collateral File identified on the
Document Exception Report.
“Document Exception Report”: The document exception report titled
“9.25.18_loan_sale_OH_Exception_Report.SLS” and delivered electronically by
Seller to Note Purchaser or its designee on or about September 25, 2018.
“Effective Date”: As defined in the preamble.
“Estimated Closing Payment”: An amount equal to 90% of the sum of (a) the
Cut-Off Date Stated Principal Balance plus (b) the Cut-Off Date Stated Advance
Balance.

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“Executive Order”: As defined in Section 3.02(u) hereunder.
“FHA”: The Federal Housing Administration or any successor thereto.
“FHA Insurance”: An insurance policy issued by the FHA with respect to a loan
under the applicable section of the National Housing Act.
“FHA Regulations”: With respect to each Mortgage Asset, the regulations, rules
and guidelines promulgated under the National Housing Act of 1934, as amended,
which is Title 12 of U.S.C., Section 1701 et seq., and any related HUD or FHA
issuances relating to such Mortgage Assets, including related handbooks,
circulars, notices and mortgagee letters, each of which as may be amended from
time to time.
“Final Closing Payment”: An amount equal to 90% of the sum of (a) the Closing
Date Stated Principal Balance plus (b) the Closing Date Stated Advance Balance.
“Funding Schedule” means the funding schedule set forth on Schedule II hereto.
“Guides” means any and all applicable rules, regulations, requirements and
guidelines of any Agency or Insurer, as the same may be amended from time to
time, including but not limited to any HUD HECM Guidelines, the HUD Handbook and
HUD HECM Mortgagee Letters.
“HECM Loan”: Any home equity conversion mortgage loan under FHA’s HECM Program
identified on the Mortgage Loan Schedule, which includes the related Collateral
File, Credit File, and all other rights, benefits, proceeds and obligations
arising from or in connection with such loan (other than the related Servicing
Rights, which are being retained by Seller).
“HECM Program”: The HUD Home Equity Conversion Mortgage Program.
“HUD”: The United States Department of Housing and Urban Development or any
successor thereto.
“HUD Handbook”: The HUD Home Equity Conversion Mortgage Handbook 4235.1 REV-1
and any subsequent revisions thereto.
“HUD HECM Guidelines”: Regulations promulgated by HUD under the National Housing
Act, codified in 24 Code of Federal Regulations, and other HUD guidance relating
to the HECM Loans, in each case, as may be amended from time to time, and
including, without limitation, the HUD HECM Mortgagee Letters.
“HUD HECM Mortgagee Letters”: The letters published by HUD from time to time
that, among other things, provide for the implementation and interpretation of,
and describe policy matters relating to, the HECM Program and the HUD Handbook.
“Loan Proceeds”: As defined in Section 2.02 hereunder.

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“Loss”: Any and all actual, out-of-pocket losses, damages, deficiencies, claims,
fines, forfeitures, costs, penalties or expenses, including reasonable
out-of-pocket attorneys’ fees and disbursements and excluding (i) any amounts
attributable to or arising from overhead allocations, general or administrative
costs and expenses, or any cost for the time of any party’s employees, (ii)
consequential losses or damages consisting of speculative lost profits, lost
investment or business opportunity, damage to reputation or operating losses,
(iii) punitive or treble damages, (iv) ordinary deductions from the calculation
of insurance or guaranty benefits by an Agency, including payment of interest by
FHA at the debenture rate rather than the Mortgage Interest Rate and deductions
for a portion of expenses and interest, and (v) appraisal based claim losses and
related property preservation expenses.
“Material Adverse Change” means any event, circumstance, change or effect that,
individually or in the aggregate, has had or is reasonably expected to have a
material adverse effect upon the business, assets, liabilities or financial
condition of Seller; provided, however, that none of the following shall be
deemed to constitute or shall be taken into account in determining whether there
has been a “Material Adverse Change”:  any event, circumstance, change or effect
to the extent attributable to:  (A) changes in the economy or financial or
banking markets, including prevailing interest rates and market conditions,
residential mortgage rates or the securities markets, including any disruption
thereof and any decline in the price of any security or any market index,
generally in the United States or any market as to which the pricing of
residential asset backed securities is tied or linked; (B) national or
international political or social conditions, including the engagement by the
United States in hostilities, whether or not pursuant to the declaration of a
national emergency or war, or the occurrence of any military or terrorist attack
upon the United States, or any of its territories, possessions, or diplomatic or
consular offices or upon any military installation, equipment or personnel of
the United States; (C) changes in accounting principles or practices or
Applicable Requirements (as defined in the Servicing Agreement); (D) general
regulatory changes; (E) a flood, hurricane, earthquake or other natural disaster
or act of God; (F) the negotiation, announcement, pendency or completion of the
transactions contemplated by this Agreement or the Note Purchase Agreement, or
public or industry knowledge thereof, including losses or threatened losses of
employees, customers, lenders or others having business relationships with
Seller and any of its Affiliates (as defined in the Servicing Agreement);
(G) taking or not taking any action as required by the Servicing Agreement or
with respect to which Seller sought consent of the Note Purchaser-appointed
Client Representative (as defined in the Servicing Agreement), or taking or not
taking any action at the request of, or with the consent of Note
Purchaser-appointed Client Representative; or (H) the failure, in and of itself,
of Seller or any of its Affiliates to meet any published, internally prepared or
other estimates of revenues, earnings or other financial projections,
performance measures or operating statistics; provided that, with respect to a
matter described in any of the foregoing clauses (A), (C) or (D), such matter
shall only be excluded to the extent such matter does not have a materially
disproportionate effect on Seller relative to other mortgage servicers in the
industry.
“Mortgage”: The mortgage, deed of trust or other instrument securing a Mortgage
Note, which creates a lien on an unsubordinated estate in fee simple in real
property

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securing the Mortgage Note or a lien upon a leasehold estate of the related
Mortgagor, as the case may be.
“Mortgage Assets” collectively, the HECM Loans and REO Assets.
“Mortgage Interest Rate”: The annual rate at which interest accrues on any HECM
Loan or Related Mortgage Loan, as adjusted from time to time in accordance with
the provisions of the related Mortgage Note, if applicable.
“Mortgage Loan Schedule”: The schedule of HECM Loans attached hereto as Exhibit
A-1 and the schedule of REO Assets attached hereto as Exhibit A-2, which shall
include the data fields set forth on Exhibit C-1 with respect to each HECM Loan
or Exhibit C-2 with respect to each REO Asset.
“Mortgage Note”: With respect to a HECM Loan or Related Mortgage Loan, the note
or other evidence of the indebtedness of a Mortgagor under a HECM Loan or
Related Mortgage Loan, together with all riders thereto and amendments thereof,
as the same may have been modified in accordance with any modification.
“Mortgaged Property”: The real property securing repayment of the debt evidenced
by a Mortgage Note, including all buildings and fixtures thereon and all
accessions thereto (including installations of mechanical, electrical, plumbing,
heating and air conditioning systems located in or affixed to such buildings).
“Mortgagor”: The obligor on a Mortgage Note.
“National Housing Act”: The National Housing Act, 12 U.S.C. § 1716 et seq.
“Note Principal Balance”: As defined in the Note Purchase Agreement.
“Note Purchase Agreement”: That certain Note Purchase Agreement, dated as of the
Effective Date, by and between Note Purchaser and Purchaser, as the same may be
amended, restated, supplemented or otherwise modified from time to time.
“Note Purchaser”: As defined in the preamble.
“Note Purchaser’s Designated Owner” As defined in Section 2.05 hereunder.
“OFAC Regulations”: As defined in Section 3.02(u) hereunder.
“Order”: Any preliminary or permanent order, injunction, judgment, decision,
verdict, mandate, directive, decree, ruling, writ, assessment or other similar
determination or finding by, before, or under the supervision of any
governmental entity or arbitrator, in each case so long as the same remains in
effect.
“Participation” shall mean the interest of Purchaser created pursuant to this
Agreement and evidenced by the Participation Certificate in Mortgage Assets
listed on

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Exhibits A-1 and A-2 attached hereto, and related Advances, as such Exhibits may
be amended from time to time.
“Participation Certificate”: As defined in Section 2.01(c) hereunder.
“Participation Interest”: As defined in Section 2.01(a) hereunder.
“Person”: Any individual, partnership, corporation, limited liability company,
business entity, banking entity, joint stock company, trust, unincorporated
organization, joint venture or other entity or a government or any political
subdivision thereof.
“Principal Advances”:  With respect to any HECM Loan and Related Mortgage Loan
and any date of determination, the sum of (i) all scheduled payments made to the
related Mortgagor under the terms of the HECM Loan or Related Mortgage Loan
documents and (ii) all unscheduled payments made to the related Mortgagor under
the terms of the related HECM Loan or Related Mortgage Loan documents, reduced
by all amounts subsequently received or collected in respect of principal on the
related HECM Loan or Related Mortgage Loan.
“Purchaser”: As defined in the preamble.
“Redemption Value”: An amount equal to 10% of the aggregate Closing Date Stated
Principal Balance and Closing Date Stated Advance Balance of the Mortgage
Assets.
“Related Mortgage Loan”: With respect to each REO Asset, the related foreclosed
reverse mortgage loan.
“REO Asset”: Any REO Property identified on the Mortgage Loan Schedule, which
includes the related Collateral File, Credit File, and all other rights,
benefits, proceeds and obligations arising from or in connection therewith.
“REO Property”: A Mortgaged Property acquired through foreclosure, deed in lieu
of foreclosure, or other realization procedure.
“Repurchase Price”: With respect to the Participation Interest related to any
Mortgage Asset, a price equal to the sum of the Closing Date Stated Principal
Balance and the Closing Date Stated Advance Balance related to the applicable
Mortgage Asset, minus the amount of Loan Proceeds received by Servicer following
the Closing Date with respect to such Mortgage Asset.
“Seller”: As defined in the preamble.
“Seller’s Actual Knowledge”: With respect to any representation or warranty, the
actual knowledge of an officer of Seller with the title of Vice President or
Director, as applicable, or above in the area of its organization relevant to
such representation or warranty and who has responsibility for the matter
addressed by such representation or warranty, it being understood that any
representation or warranty made to “Seller’s Actual

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Knowledge” is made solely to the extent that such person has actual knowledge of
the matter being represented and does not imply or suggest that the
representation is otherwise in fact correct.
“Servicer”: Reverse Mortgage Solutions, Inc., in its capacity as servicer of
each Mortgage Asset .
“Servicing Agreement”: The Reverse Mortgage Servicing Agreement, dated as of the
Effective Date, by and between the Seller, as servicer, Purchaser, as client,
and Note Purchaser, as the same may be amended, restated, supplemented or
otherwise modified from time to time.
“Servicing File”: With respect to each Mortgage Asset, the file retained by the
Servicer consisting of copies or originals of documents in the Collateral File
related to such Mortgage Asset and any documents and servicing records gathered
and retained in connection with the servicing of such Mortgage Asset.
“Servicing Rights”: With respect to each Mortgage Asset, any and all of the
following: (a) any and all rights to service the Mortgage Assets; (b) any
payments to or monies received for servicing the Mortgage Assets; (c) any late
fees, penalties or similar payments with respect to the Mortgage Assets; (d) all
agreements or documents creating, defining or evidencing any such servicing
rights to the extent they relate to such servicing rights and all rights of the
Servicer thereunder; (e) escrow payments or other similar payments with respect
to the Mortgage Assets and any amounts actually collected by the Servicer with
respect thereto; (f) all accounts and other rights to payment related to any of
the property described in this paragraph; and (g) any and all documents, files,
records, servicing files, servicing documents, servicing records, data tapes,
computer records, or other information pertaining to the Mortgage Assets or
pertaining to the past, present or prospective servicing of the Mortgage Assets.

ARTICLE II    

CLOSING; TERMS AND CONDITIONS

Section 2.01    Agreement of Sale; Payment of Purchase Price and Reconciliation.
(a)    Upon payment by Purchaser of the Estimated Closing Payment as of the
Closing Date in accordance with the Funding Schedule, Seller hereby sells,
assigns, transfers, delivers, and contributes, without recourse, except as set
forth in this Agreement, on a servicing retained basis (subject to the terms of
the Servicing Agreement), an undivided 100% Participation in Seller’s ownership
rights in and to the Mortgages, Mortgage Notes and Collateral Documents relating
to the Mortgage Assets and the proceeds (including but not limited to any REO
Properties acquired in connection with the foreclosure of the HECM Loans) and
all outstanding Advances as set forth on the Closing Date Statement delivered
pursuant to Section 2.01(b) (the “Participation Interest”). The Participation is
sold on a non­recourse basis except as set forth in this Agreement. Subject to
Section 2.05, Seller shall retain legal title to each Mortgage Asset, as agent
for Purchaser, as the holder of the Participation evidencing the beneficial
ownership in such Mortgage Asset, provided

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that Seller shall remain the mortgagee of record under each applicable FHA
Insurance contract. The Parties acknowledge and agree that the Final Closing
Payment and the Contribution collectively represent fair market value of the
Participation as of the Closing Date.
(b)    No later than ten (10) Business Days following the Closing Date, Seller
shall deliver to Purchaser a statement (the “Closing Date Statement”) setting
forth the Closing Date Stated Principal Balance and the Closing Date Stated
Advance Balance for the Mortgage Assets and the Final Closing Payment. In the
event that the Final Closing Payment is greater than the Estimated Closing
Payment, Purchaser shall pay the applicable shortfall amount to Seller. In the
event that the Final Closing Payment is less than the Estimated Closing Payment,
Seller shall refund the applicable overage to Purchaser.
(c)    On the Closing Date, Seller shall deliver to Purchaser a participation
certificate in the form of Exhibit D attached hereto (the “Participation
Certificate”) representing the ownership of the Participation.

Section 2.02    Servicing; Entitlement to Payments on the HECM Loans.
Seller shall service each Mortgage Asset in accordance with the Servicing
Agreement. Seller, in its capacity as Servicer, shall collect all payments of
principal and accrued interest, all insurance proceeds and all other monies
collected or received after the Closing Date with respect to the Mortgage Assets
(“Loan Proceeds”) and shall remit the Loan Proceeds to Purchaser in accordance
with the terms of Section 3.9 of the Servicing Agreement.

Section 2.03    Payment of Costs and Expenses.
Purchaser and Seller shall each bear their own costs and expenses in connection
with the purchase and sale of the Participation including, without limitation,
the legal fees and expenses of their respective attorneys and any due diligence
expenses.

Section 2.04    Document Delivery.
(a)    The parties acknowledge and agree that the Custodian will act as
custodian of the Collateral Files pertaining to each HECM Loan. Custodian and
the parties entered into a custodial agreement pursuant to which Custodian
agreed to hold the Collateral Files for the benefit of Seller, as owner of legal
title to the Mortgage Assets and as agent for Purchaser, as the holder of the
Participation evidencing the beneficial ownership in such Mortgage Assets, and
for the Note Purchaser, as collateral assignee. With respect to any Collateral
File that is being held by a bailee (in connection with a foreclosure proceeding
or otherwise), Seller covenants that the Collateral File is, on the Closing
Date, either in Seller’s possession or in the possession of the related bailee
and any breach of such covenant with respect to a document shall mean a Document
Defect (as defined below) exists with respect thereto.
(b)    For a period of ninety (90) days following the Closing Date, Seller shall
use its commercially reasonable efforts to cure any Document Defects in all
material respects; provided, however that if Seller is diligently pursuing cure
efforts with respect to any such breach upon

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expiration of such ninety (90) day period, but Seller is unable to cure such
breach solely due to a delay caused by any recorder’s office with respect to
trailing loan documents, such cure period shall be extended for an additional
thirty (30) days to allow Seller to continue to cure such breach in all material
respects (the “Defect Cure Period”). If any such Document Defect cannot be cured
by the expiration of the applicable Defect Cure Period and such Document Defect
results in (a) a material delay with respect to realization of the related
Mortgaged Property or REO Property or (b) the inability of Seller, as Servicer,
to foreclose upon the related Mortgaged Property, Seller shall repurchase the
related Participation Interest at the Repurchase Price.

Section 2.05    Transfer of Legal Title Following Servicer Termination.
Upon the termination of Servicer for cause following a Servicer Termination
Event (as defined in the Servicing Agreement) under Sections 7.1(a)(iii), (iv),
(v) or (vi) (solely with respect to an Event of Default pursuant to Sections
5.1(a) or 5.1(b) of the Note Purchase Agreement) of the Servicing Agreement or
following a Material Adverse Change, Purchaser shall, if directed in writing by
the Note Purchaser, take such actions as are necessary to cause Seller to
transfer legal title to each Mortgage Asset to Note Purchaser’s designee, who
shall be a mortgagee approved by FHA to own and service HECM Loans under the
Guides (the “Note Purchaser’s Designated Owner”), who shall hold legal title to
each Mortgage Asset, as agent for Purchaser, as the holder of the Participation
evidencing the beneficial ownership in such Mortgage Asset. Purchaser shall
cause the Note Purchaser’s Designated Owner to become the mortgagee of record
under each applicable FHA Insurance contract. Any such transfer of legal title
to the Mortgage Assets shall be effected in a manner consistent with Applicable
Requirements.

ARTICLE III    

REPRESENTATIONS AND WARRANTIES

Section 3.01    Representations and Warranties Respecting Seller.
Seller represents, warrants and covenants to Purchaser that as of the Closing
Date:
(a)    Seller is a corporation duly formed and validly existing under the laws
governing its creation and existence, is in material compliance with the laws of
each state in which any Mortgaged Property is located to the extent necessary to
enable it to perform its obligations hereunder and is in good standing in each
jurisdiction in which the nature of its business or the properties owned or
leased by it make such qualification necessary, except to the extent any such
failure would not be reasonably expected to have a material adverse effect on
the validity or enforceability of the HECM Loans or on Seller’s ability to
perform its obligations under this Agreement. Seller has all requisite corporate
power and corporate authority to own and operate its properties, to carry out
its business as presently conducted and to enter into and discharge its
obligations under this Agreement, except to the extent any such failure would
not be reasonably expected to have a material adverse effect on the validity or
enforceability of the HECM Loans or on Seller’s ability to perform its
obligations under this Agreement.

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(b)    The execution and delivery by Seller of this Agreement and its
performance and compliance with the terms hereof and the consummation by Seller
of the transactions contemplated hereby have been duly authorized by all
necessary corporate action on the part of Seller and will not result in the
breach or violate any term or provision of Seller’s articles of incorporation or
bylaws or constitute a default (or an event which, with notice or lapse of time,
or both, would constitute a default) under, or result in a breach or violation
of or acceleration of, any loan or credit agreement, including, without
limitation, any repurchase agreement or note purchase agreement, or any other
material agreement, indenture, contract or other instrument (including but not
limited to any plan of reorganization of any affiliate of Seller) to which
Seller or its property is subject or by which Seller or its property is bound or
which may be applicable to it or result in the creation or imposition of any
adverse claim upon any of the property or assets of Seller under the terms of
the foregoing or violate any statute, ordinance or law or any order, rule, writ,
injunction, judgment, decree or regulation of any court, governmental or
regulatory authority, agency or body or other tribunal having jurisdiction over
Seller or any of its properties.
(c)    This Agreement (assuming due authorization, execution and delivery by
Purchaser), constitutes a valid, legal and binding obligation of Seller,
enforceable against it in accordance with the terms hereof, except as the
enforcement hereof may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting creditors’ rights
generally and by general principles of equity (whether considered in a
proceeding or action in equity or at law).
(d)    Seller is not subject to or in default with respect to any order or
decree of any court or any order, regulation or demand of any federal, state,
municipal or governmental agency, which would reasonably be expected to
materially and adversely affect the validity or enforceability of the HECM Loans
or Seller’s ability to perform its obligations hereunder.
(e)    No litigation, proceeding or investigation is pending with respect to or,
to Seller’s Actual Knowledge, is threatened against Seller which litigation,
proceeding or investigation (i) would reasonably be expected to have
consequences that would prohibit its entering into this Agreement, (ii) asserts
the invalidity of this Agreement or seeks to prevent the consummation of the
transactions contemplated hereby or (iii) would reasonably be expected to
materially and adversely affect the validity or enforceability of the Mortgage
Assets or Seller’s performance hereunder.
(f)    All actions, approvals, consents, waivers, exemptions, variances,
franchises, orders, permits, authorizations, rights and licenses required to be
taken, given or obtained, as the case may be, by or from any federal, state or
other governmental authority or agency, that are necessary in connection with
the execution and delivery by Seller of this Agreement, have been duly taken,
given or obtained, as the case may be, are in full force and effect on the date
hereof, are not subject to any pending proceedings or appeals (administrative,
judicial or otherwise) and either the time within which any appeal therefrom may
be taken or review thereof may be obtained has expired or no review thereof may
be obtained or appeal therefrom taken, and are adequate to authorize the
consummation of the transactions contemplated by this Agreement on the part of
Seller and the performance by Seller of its obligations under this Agreement. No
licenses or approvals obtained

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by Seller required in connection with the performance of its material
obligations under this Agreement have been suspended or revoked by any court,
administrative agency, arbitrator or governmental body and no proceedings are
pending which might result in such suspension or revocation, except, in each
case, to the extent that any such suspension or revocation would not be
reasonably expected to have a material adverse effect on Purchaser or on the
operations or financial condition of Seller.
(g)    Seller does not believe, nor does it have any reason or cause to believe,
that it cannot perform each and every covenant and obligation contained in this
Agreement. There exists no law or judgment, award, order, writ, or decree of any
court that would prohibit Seller from selling the Participation pursuant to this
Agreement.
(h)    No broker, investment banker or other Person is entitled to any broker’s,
finder’s or other similar fee or commission in connection with the transactions
contemplated by this Agreement based upon arrangements made by or on behalf of
Seller that would become an obligation of Purchaser on or after the Closing
Date.
(i) Seller has not guaranteed any payments to Purchaser under any Participation
Interest.

Section 3.02    Representations and Warranties Respecting the Mortgage Assets.
Seller represents, warrants and covenants to Purchaser that, as of the Closing
Date or such other date set forth herein, with respect to each HECM Loan with
respect to representations (a) through (dd) below and with respect to each REO
Asset with respect to representations (ee) through (mm), in each case subject to
the limitations set forth in Section 3.03:
(a)    As of the Cut-off Date (or such other date identified therein) with
respect to the information pertaining to such HECM Loan set forth in the
Mortgage Loan Schedule, and as of the Closing Date (or such other date
identified therein) with respect to the information pertaining to such HECM Loan
set forth in the Closing Date Statement, is true, correct and complete in all
material respects (provided that such materiality qualifier shall not be
applicable to the data fields labeled “Current_loan_balance,” “Total Corp Adv,”
“max_claim_amt,” and “debenture_int_rate”) and accurately and correctly reflects
the terms of the related Mortgage and Mortgage Note and the terms of the
documents contained in the Collateral File in all material respects. With
respect to each HECM Loan, as of the Closing Date, there are no defective or
missing Collateral Documents required to be included in the applicable
Collateral File, except as identified on the Document Exception Report.
(b)    Seller is the sole and lawful owner and holder of such HECM Loan and has
good and marketable title thereto, free and clear of any encumbrance, security,
lien, equity, pledge, claim, charge or participation interest in such HECM Loan
in favor of any other Person, and has the full right and authority, subject to
no interest or participation in (except as expressly contemplated herein), or
agreement with any other Person to sell or otherwise transfer such HECM Loan to
such Person, to sell, assign and transfer the Participation Interest related to
such HECM Loan to Purchaser

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pursuant to this Agreement. Upon the conveyance of such Participation Interest
related to such HECM Loan by Seller to Purchaser, Purchaser will be the sole and
lawful owner and holder of such Participation Interest and will have good and
marketable title thereto, free and clear of any encumbrance, security, lien,
equity, pledge, claim or participation interest in such HECM Loan in favor of
any other Person.
(c)    Each HECM Loan was underwritten in accordance with all FHA Regulations
applicable to reverse mortgages and is insured by HUD/FHA. Each FHA Insurance
policy pertaining to a HECM Loan is in full force and effect and all prior
transfers, if any, of the HECM Loan has been, and the transactions herein
contemplated are, in compliance with all applicable FHA Regulations. No HECM
Loan is subject to any defect that could diminish or impair the FHA insurance
and no circumstances exist with respect to the HECM Loans that could permit the
FHA to deny coverage, in whole or in part, under the related FHA insurance. The
related FHA policy calls for the assignment of the HECM Loan to HUD as opposed
to the co-insurance option. The entire amount of the insurance premium due on or
before the Closing Date has been paid to the FHA and no portion is shared by
Seller or, if the monthly premium option has been chosen for such HECM Loan, all
such premiums due on or before the Closing Date have been duly and timely paid.
(d)    There is no valid offset, defense or counterclaim to any Mortgage Note,
nor will the operation of any of the terms of any Mortgage Note and the related
Mortgage, or the exercise of any right thereunder, render such Mortgage Note or
the related Mortgage unenforceable, in whole or in part, or subject to any right
of rescission, set-off, counterclaim or defense, including the defense of usury,
and no such right of rescission, set-off, counterclaim or defense has been
asserted with respect to any Mortgage or Mortgage Note.
(e)    Each Mortgage Note and the related Mortgage are genuine, and each is the
legal, valid and binding obligation of the related Mortgagor enforceable against
such Mortgagor by the mortgagee in accordance with its terms, except as such
enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium
or other similar laws affecting the enforcement of creditors’ rights generally.
Each Mortgage Note and Mortgage have been duly and validly executed by such
parties.
(f)    Except as set forth on Schedule 3.02(f), to Seller’s Actual Knowledge, no
HECM Loan is a mortgage loan with respect to which the related Mortgaged
Property is damaged by fire, flood, windstorm, earthquake, tornado, hurricane or
any other similar casualty (and which physical damage (A) is not covered in full
by a hazard or flood insurance policy (or other similar insurance policy) for
such Mortgaged Property as determined by Seller in good faith and (B) could
adversely affect (i) the value or marketability of such mortgage loan or
Mortgaged Property, (ii) the eligibility of the related HECM Loan for FHA
Insurance, or (iii) the full principal recovery of the insurance or guaranty
benefits under the applicable federal insurance or the conveyance of the related
Mortgaged Property in accordance with the Guides).
(g)    Except with respect to any Curtailment Event (as defined in the Servicing
Agreement) related to the HECM Loans identified by a “curtailment_total” flag on
the Mortgage Loan Schedule, the servicing and collection practices used by
Seller, and, to Seller’s Actual Knowledge, any prior

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originator or servicer since origination with respect to each Mortgage Note and
Mortgage, have complied with all Acceptable Servicing Practices in all material
respects.
(h)    There is no proceeding pending, or to Seller’s Actual Knowledge,
threatened, for the total or partial condemnation of, or eminent domain with
respect to, any Mortgaged Property.
(i)    Each Mortgage has not been satisfied, cancelled, rescinded or
subordinated, in whole or, except as permitted under the applicable Guides, in
part, and the related Mortgaged Property has not been released from the lien of
the related Mortgage, in whole or in part, nor has any instrument been executed
that would result in any such release, cancellation, subordination or
rescission.
(j)    The Mortgage contains customary and enforceable provisions such as to
render the rights and remedies of the holder thereof adequate for the
enforcement of the lien against the related Mortgaged Property. Upon default by
a Mortgagor on a HECM Loan and foreclosure on, or trustee’s sale of, the related
Mortgaged Property pursuant to the proper procedures, the holder of the HECM
Loan will be able to deliver good and marketable title to such Mortgaged
Property. There is no homestead or other exemption available to a Mortgagor that
would interfere with the right to sell the related Mortgaged Property at a
trustee’s sale or the right to foreclose on the Mortgage. The Mortgage contains
an enforceable provision, to the extent not prohibited by federal, state or
other law as of the date of such Mortgage, for the acceleration of the payment
of the outstanding principal balance of the HECM Loan upon the occurrence of a
maturity event thereunder.
(k)    All improvements subject to a Mortgage that were considered in
determining the appraised value of the related Mortgaged Property lie wholly
within the boundaries and building restriction lines of such Mortgaged Property
(and wholly within the related project, with respect to a condominium unit) and
no improvements on adjoining properties encroach upon the related Mortgaged
Property except those that are insured against by title insurance.
(l)    Each HECM Loan is covered by an ALTA mortgagee title insurance policy or
other generally acceptable form of policy or insurance acceptable to the FHA,
issued by a title insurer acceptable to the FHA and qualified to do business in
the jurisdiction where the related Mortgaged Property is located, insuring
Seller and its successors and assigns, as to the first priority lien of the
related Mortgage in the original principal amount of the related HECM Loan,
subject only to (i) the lien of current real property taxes and assessments not
yet due and payable, (ii) covenants, conditions and restrictions, rights of way,
easements and other matters of the public record as of the date of recording
acceptable to mortgage lending institutions generally and specifically referred
to in the lender’s title insurance policy delivered to the originator of the
related HECM Loan and (a) referred to or to otherwise considered in the
appraisal made for the originator of the related HECM Loan or (b) which do not
adversely affect the updated appraised value of the Mortgaged Property set forth
in such appraisal, and (iii) other matters to which like properties are commonly
subject which do not materially interfere with the benefits of the security
intended to be provided by the Mortgage. Such lender’s title insurance policy
affirmatively insures ingress and egress and insures against encroachment by or
upon the related Mortgaged Property or any interest therein. No claims have been
made under any such lender’s title insurance policy and no prior holder of the
related Mortgage, including Seller, has done, by act or omission, anything that
would impair the coverage of any such lender’s title insurance policy in any
material respect.

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(m)    All taxes, governmental assessments and insurance premiums that
previously became due and owing with respect to the related Mortgage, Mortgage
Note and Mortgaged Property have been paid.
(n)    The terms of the Mortgage Note and the Mortgage have not been impaired,
waived, altered, extended, deferred or modified in any respect from the date of
origination, except in accordance with the Guides and applicable law and as
included in the Collateral File, Credit File or Servicing File. The terms of any
waiver, alteration or modification are reflected in the Mortgage Loan Schedule
and have been approved by the FHA and the title insurer, to the extent required
thereby.
(o)    Each Mortgage is a valid, subsisting and enforceable first lien on the
related Mortgaged Property securing the related Mortgage Note’s original
principal balance, free and clear of all encumbrances and liens having priority
over the lien of the Mortgage except for (A) the lien of non-delinquent current
real property taxes and assessments not yet due and payable, (B) covenants,
conditions and restrictions, rights of way, easements and other matters of the
public record as of the date of recording that are acceptable to mortgage
lending institutions generally in the area in which the Mortgaged Property is
located and either (i) are referred to or otherwise considered in the appraisal
made for the originator of the related HECM Loan or (ii) do not adversely affect
the updated appraised value of the related Mortgaged Property as set forth in
such appraisal, and (C) other matters to which like properties are commonly
subject that, in each case, do not individually or in the aggregate materially
interfere with the benefits of the security intended to be provided by the
related Mortgage.
(p)    No violation of any environmental law, rule or regulation exists or
existed with respect to any Mortgaged Property, and Seller has no reasonable
grounds to suspect the presence of any toxic materials or other environmental
hazards on, in or that could affect any Mortgaged Property (other than those
substances commonly used in connection with home maintenance and repair and
which have not been misused) nor the presence of any material adverse
environmental condition with respect to any Mortgaged Property (including, but
not limited to, the condition of the soil, water, ground water, the presence of
hazardous substances, asbestos, mold, radon or underground storage tanks),
except that has been expressly disclosed to Purchaser in writing prior to the
Closing Date. Neither Seller nor, to Seller’s Actual Knowledge, the related
Mortgagor has received any notice of any violation or potential violation of any
such law, rule or regulation.
(q)    The Advances set forth on the Cut-Off Date Stated Principal and Advance
Balance pertaining to each HECM Loan (i) are valid and subsisting amounts owing
to Seller, (ii) are documented and supported on a loan level basis, (iii) are
carried on the books of Seller at values determined in accordance with generally
accepted accounting principles and (iv) are not subject to any set-offs or
claims of the Mortgagor arising from acts or omissions of Seller that could be
asserted against Purchaser.
(r)    Each HECM Loan (i) provides that any Principal Advance increases the
outstanding principal balance of related HECM Loan and is secured by an interest
in the same Mortgaged Property as the related HECM Loan, (ii) provides for a
principal limit in accordance with the Guides, (iii) contains provisions that do
not permit recourse against the Mortgagor, (iv) provides that all

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payments due under the HECM Loan are due only upon the final maturity date of
such HECM Loan, and (v) has a final maturity date based on events in accordance
with the Guides.
(s)    Each HECM Loan provides for a servicing fee within the limits prescribed
by the Guides.
(t)    No HECM Loan allows for the related Mortgagor to share in any
appreciation of the value of the related Mortgaged Property.
(u)    No HECM Loan is (A) subject to nullification pursuant to Executive Order
13224 (the “Executive Order”) or the regulations promulgated by the Office of
Foreign Assets Control of the United States Department of the Treasury (the
“OFAC Regulations”) or (B) in violation of the Executive Order or the OFAC
Regulations, and no Mortgagor is subject to the penalties provided for in such
Executive Order or the OFAC Regulations, is the subject of any sanctions
administered by OFAC, or listed as a “blocked person” for purposes of the OFAC
Regulations.
(v)    Other than any claim or counterclaim arising out of any foreclosure or
collection proceeding relating to such HECM Loan, there is no litigation,
proceeding or governmental investigation pending, or any order, injunction or
decree outstanding, existing or relating to, or to Seller’s Actual Knowledge,
threatened, relating to such HECM Loan or the related Mortgaged Property.
(w)    In the event the related Mortgage constitutes a deed of trust, a trustee,
duly qualified to serve as such, has been properly designated and currently so
serves. No fees or expenses are or will become payable by Seller to the trustee
under the deed of trust, except in connection with a trustee’s sale after
default by the related Mortgagor.
(x)    There are no defaults by Seller or the servicer of the Mortgage Assets or
any servicer in complying with the terms of the related Mortgage.
(y)    With respect to each Mortgage Asset, the related Mortgage Property or REO
Property is covered by a lender’s title insurance policy or other generally
acceptable form of policy or insurance acceptable under HUD HECM Guidelines. 
The Seller, its successor and assigns, are the sole insureds of such lender’s
title insurance policy, and such lender’s title insurance policy is valid and
remains in full force and effect and will be in force and effect upon the
consummation of the transactions contemplated by this Agreement.  No claims have
been made under such lender’s title insurance policy, and no prior holder of the
related Mortgage, including the Seller, has done, by act or omission, anything
which would impair, in any material respect, the coverage of such lender’s title
insurance policy, including without limitation, no unlawful fee, commission,
kickback or other unlawful compensation or value of any kind has been or will be
received, retained or realized by any attorney, firm or other person or entity,
and no such unlawful items have been received, retained or realized by the
Seller.
(z)    No fraud has taken place on the part of any Person in connection with the
origination of any HECM Loan, the determination of the value of any Mortgaged
Property related to a HECM

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Loan, or the sale or servicing of any HECM Loan where such fraud has affected
the enforceability of the FHA Insurance prior to the Closing Date.
(aa)    No HECM Loan is the subject of an indemnification agreement with HUD
with respect to any origination or other defect relating to any such HECM Loan.
(bb)    All Principal Advances and Advances made on or prior to the Closing Date
have been made in a timely fashion and in accordance with the terms of the
Mortgage Note and the provisions of the FHA Regulations. All costs, fees and
expenses incurred in the making, closing or recording of the HECM Loan have been
paid and the Mortgagor is not entitled to any refund of any amounts paid or due
under the Mortgage Note or Mortgage.
(cc)    The Servicing File, Credit File and Collateral File complies with all
Applicable Requirements in all material respects.
(dd)    No HECM Loan is a loan that, under the Home Ownership and Equity
Protection Act of 1994 or any other applicable state, federal or local law in
effect at the time of origination of such loan, is referred to as a “high cost,”
“covered” loan, “high risk home” or “predatory” loan.
(ee)    No violation of any environmental law, rule or regulation exists or
existed with respect to any REO Property, and Seller has no reasonable grounds
to suspect the presence of any toxic materials or other environmental hazards
on, in or that could affect any REO Property (other than those substances
commonly used in connection with home maintenance and repair and which have not
been misused) nor the presence of any material adverse environmental condition
with respect to any REO Property (including, but not limited to, the condition
of the soil, water, ground water, the presence of hazardous substances,
asbestos, mold, radon or underground storage tanks), except that has been
expressly disclosed to Purchaser in writing prior to the Closing Date. Neither
Seller nor, to Seller’s Actual Knowledge, the related Mortgagor has received any
notice of any violation or potential violation of any such law, rule or
regulation.
(ff)    As of the Cut-off Date (or such other date set forth therein) with
respect to the information pertaining to each REO Property set forth in the
Mortgage Loan Schedule, and as of the Closing Date (or such other date set forth
therein) with respect to the information pertaining to each REO Property set
forth in the Closing Date Statement, is true, correct and complete in all
material respects (provided that such materiality qualifier shall not be
applicable to the data fields labeled Current_loan_balance, Total Corp Adv,
max_claim_amt, and debenture_int_rate). With respect to each Related Mortgage
Loan, as of the Closing Date, there are no defective or missing Collateral
Documents required to be included in the applicable Collateral File, except as
identified on the Document Exception Report.
(gg)    Seller is the sole and lawful owner of each REO Property, has good and
marketable title thereto, free and clear of any lien and has the full right and
authority to sell, assign and transfer the Participation Interest related to
such REO Property to Purchaser, subject to no interest or participation in
(except as expressly contemplated herein), or agreement with any other Person to
sell or otherwise transfer such REO Property to such Person. Upon the conveyance
of each Participation Interest related to such REO Property by Seller to
Purchaser, Purchaser will be the

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sole and lawful owner and holder of such Participation Interest and will have
good and marketable title thereto, free and clear of any encumbrance, security,
lien, equity, pledge, claim or participation interest in such REO Property in
favor of any other Person.
(hh)    Each Related Mortgage Loan is fully insurable by the FHA, which
insurance is in full force and effect and, except to the extent such FHA
insurance is no longer valid because the Related Mortgage Loan is subject to an
appraisal based claim that has been paid in full by HUD prior to the Closing
Date, as of the Closing Date, and all prior transfers, if any, of such Related
Mortgage Loan have been, and the transactions herein contemplated are, in
compliance with all applicable Guides. No Related Mortgage Loan is subject to
any defect that could diminish or impair the FHA insurance and no circumstances
exist with respect to the Related Mortgage Loans that could permit the FHA to
deny coverage, in whole or in part, under the related FHA insurance. The related
FHA insurance policy calls for the assignment of the Related Mortgage Loan to
HUD as opposed to the co-insurance option. The entire amount of all insurance
premiums due on or before the Closing Date has been duly and timely paid to the
FHA and no portion is shared by Seller.
(ii)    To Seller’s Actual Knowledge, no REO Property has suffered damage due to
fire, flood, windstorm, earthquake, tornado, hurricane or any other similar
casualty (and which physical damage (A) is not covered in full by a hazard or
flood insurance (or other similar insurance policy) for such REO Property as
determined by Seller in good faith and (B) could adversely affect (i) the value
or marketability of such REO Property, (ii) the eligibility of the Related
Mortgage Loan for the FHA Insurance, or (iii) the full principal recovery of the
insurance or guaranty benefits under the applicable federal insurance or the
conveyance of the related REO Property in accordance with the applicable Guides.
(jj)    The servicing and collection practices used by Seller and each
subservicer, and any prior originator or servicer since origination with respect
to each Related Mortgage Loan have complied in all material respects with
applicable state and federal law, the Guides and the documents relating to the
Related Mortgage Loan.
(kk)    There is no proceeding pending or, to Seller’s Actual Knowledge,
threatened, for the total or partial condemnation of, or eminent domain with
respect to, any REO Property.
(ll)    All improvements that were considered in determining the appraised value
of the REO Property lie wholly within the boundaries and building restriction
lines of such REO Property (and wholly within the related project, with respect
to a condominium unit) and no improvements on adjoining properties encroach upon
the REO Property except those that are insured against by title insurance.
(mm)    All taxes, governmental assessments, insurance premiums and water, sewer
and municipal charges that previously became due and owing with respect to the
REO Property have been paid.
With respect to the representations and warranties contained above that are made
to Seller’s Actual Knowledge or as to which the Seller has no knowledge, if it
is discovered that the substance of any such representation and warranty is
inaccurate and the

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inaccuracy materially and adversely affects the interests of the Purchaser in
the related Participation Interest, then notwithstanding Seller’s lack of
knowledge with respect to the substance of such representation and warranty
being inaccurate at the time the representation and warranty was made, such
inaccuracy shall be deemed a breach of the applicable representation and
warranty.

Section 3.03    Disclaimer of Representations and Warranties Expressed Herein.
Except as expressly provided in Section 3.01 and in Section 3.02, no
representation or warranty, whether express or implied, is being made in this
Agreement or otherwise by Seller or its agents or representatives with respect
to the Participation Interests or HECM Loans. Purchaser acknowledges and agrees
that the acquisition of the Participation Interests is on an “as is, where is”
basis “with all faults.” Purchaser acknowledges that Seller is providing the
representations and warranties in Section 3.02 solely for purposes of
establishing the basis on which claims for repurchase may be brought under this
Agreement resulting from or arising out any breach of any such representations
and warranties by Seller with respect to particular HECM Loans, irrespective of
whether Seller knows or should know of such breach and without disclosure of any
knowledge. Purchaser and Seller further acknowledge that some or all of the
representations and warranties in Section 3.02 may be untrue with respect to
particular HECM Loans and that Purchaser and/or Seller may have knowledge of
facts rendering some of such representations and warranties untrue with respect
to particular HECM Loans. In no event shall a breach of any of Seller’s
representations and warranties under Section 3.02, or Seller’s knowledge or lack
of disclosure thereof, be used as evidence of or be deemed to constitute bad
faith, misconduct, misrepresentation or fraud by Seller, nor shall Purchaser’s
knowledge of any such breach or lack of disclosure by Seller limit in any way
Purchaser’s rights to seek repurchase or indemnification remedies under this
Agreement.

Section 3.04    Remedies for Breach of Representations and Warranties.
(a)    Survival Period. Except with respect to a breach of Section 3.02(g) for
which the claim is based on Curtailment Losses (which are addressed in the
Servicing Agreement), the representations and warranties set forth in Section
3.01 and Section 3.02 shall survive the sale of the HECM Loans to Purchaser for
a period of eighteen (18) months following the Closing Date (the “Survival
Period”). All such representations and warranties shall inure to the benefit of
Purchaser during the Survival Period.
(b)    Notice of Breach; Cure.
(i)    In the event that Purchaser discovers that a breach of any of the
representations and warranties set forth in Section 3.01 or Section 3.02 has
occurred and such breach materially and adversely affects the value of any
Participation Interest related to a HECM Loan or the interest of Purchaser
therein (a “Seller Breach”), Purchaser shall provide prompt written notice to
Seller accompanied by (i) the identity of the affected HECM Loan with respect to
which the Seller Breach is alleged to have occurred and (ii) sufficient
documentation to enable Seller to determine the validity of Purchaser’s request
of it to repurchase the applicable Participation Interest,

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including reasonably detailed information of the material adverse effect on the
value of the applicable Participation Interest. For the avoidance of doubt, any
breach of the representations and warranties in the first sentence of Section
3.02(bb) will not be deemed to materially and adversely affect the value of the
related Participation Interest if, and only if, Seller made such Advances in
accordance with accepted servicing practices applicable to home equity
conversion loans.
(ii)    Within ninety (90) days from receipt of written notice to Seller of a
Seller Breach (the “Cure Period”), Seller shall use its commercially reasonable
efforts to cure such breach in all material respects; provided, however that if
Seller is diligently pursuing cure efforts with respect to any such breach upon
expiration of such ninety (90) day period, but Seller is unable to cure such
breach solely due to a delay caused by any recorder’s office with respect to
trailing loan documents, the Cure Period shall be extended for an additional
thirty (30) days to allow Seller to continue to cure such breach in all material
respects. If any such Seller Breach cannot be cured by the expiration of the
applicable Cure Period, Seller shall repurchase the related Participation
Interest, at the Repurchase Price; provided, however that in no event shall
Seller have any obligation pursuant to this Section 3.04 to repurchase any
Participation Interest sold to Purchaser in respect of any breaches of
representations or warranties set forth in Section 3.01 and Section 3.02 if (A)
Seller does not receive written notice of the related Seller Breach during the
Survival Period, (B) the Seller Breach arises out of or results solely from any
act or omission of Purchaser (other than any act or omission of Servicer) from
and after the Closing Date or (C) the claim relates solely to Curtailment Events
(which are addressed in the Servicing Agreement).
(c)    Causes of Action. Any cause of action against Seller relating to or
arising out of the breach of any representations and warranties made in Section
3.01 shall accrue as to the Participation Interest related to any HECM Loan upon
the earlier of (i) discovery of such breach by Purchaser and Seller’s receipt of
notice thereof as required under Section 3.04(b) above, (ii) failure by Seller
to cure such breach or repurchase such Participation Interest as specified
above, and (iii) demand upon Seller by Purchaser for compliance with the
relevant provisions of this Agreement.
(d)    Repurchase Mechanics. Any repurchase of a Participation Interest pursuant
to Section 3.04(b) shall be accomplished by wire transfer in the amount of the
Repurchase Price of immediately available funds on the repurchase date to an
account designated by Purchaser. Upon a repurchase of a Participation Interest
pursuant to Section 3.04(b), (i) the Mortgage Loan Schedule shall be amended to
reflect the withdrawal of the applicable Participation Interest from this
Agreement, (ii) Purchaser shall promptly notify the Custodian that it has no
interest in the Collateral File pertaining to the applicable HECM Loan as of the
effective date of repurchase, (iii) Purchaser shall execute and deliver such
instruments of transfer or conveyance as shall be prepared by, and delivered to
it by, Seller and necessary to vest in Seller good and marketable title to such
repurchased Participation Interest as of the applicable repurchase date, and
(iv) the Participation Interest with respect to such HECM Loan shall be
terminated.
(e)    Sole Remedies. Purchaser acknowledges and agrees that the obligations of
Seller set forth in Sections 3.04(b) and 3.06(b)(i) to cure defects, repurchase
a Participation Interest or otherwise indemnify Purchaser, as applicable,
constitute the sole and exclusive remedies of Purchaser with respect to any
breach of any representation or warranty of Seller set forth in Section

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3.02, provided however, that the foregoing shall not diminish or impair the
remedies pertaining to Document Defects and Curtailment Losses set forth in
Sections 2.04(b) and the Servicing Agreement, respectively.
(f)    Conditions to Repurchase. Notwithstanding any other provision of this
Agreement, Seller shall not be required to repurchase any Participation Interest
in the event that, at the time of repurchase, Purchaser is not the sole owner of
the Participation Interest or Purchaser does not have the full right and
authority to sell or assign the same to Seller free and clear of all
encumbrances created by Purchaser.
(g)    [Reserved].
(h)    [Reserved].
(i)    Redemption Rights. If, at any time after the Closing Date, the actual
unpaid stated principal and advance balance of the Mortgage Assets is less than
or equal to the Redemption Value, Purchaser may, at its option and in its sole
discretion, redeem the Participation Interest at a price equal to the sum of (i)
the portion of the Note Principal Balance that has not been paid by Purchaser to
Note Purchaser in accordance with the Note Purchase Agreement through the date
of redemption, if any, minus (ii) any outstanding servicing fees and
unreimbursed Advances and Principal Advances due to Seller in accordance with
the Servicing Agreement with respect to the applicable HECM Loan as of the date
of redemption. Any redemption of such Participation Interest pursuant to this
Section 3.04(i) shall be accomplished by wire transfer in the amount of the
redemption payment described in the immediately preceding sentence of
immediately available funds on the redemption date to an account designated by
Purchaser. Upon a redemption of a Participation Interest pursuant to Section
3.04(i), (w) the Mortgage Loan Schedule shall be amended to reflect the
withdrawal of the applicable Participation Interest from this Agreement, (x)
Seller shall promptly notify the Custodian that Seller has no interest in the
Collateral File pertaining to the applicable HECM Loan as of the effective date
of redemption, (y) Purchaser shall execute and deliver such instruments of
transfer or conveyance as shall be prepared by, and delivered to it by Purchaser
and necessary to vest in Seller good and marketable title to such redeemed
Participation Interest as of the applicable redemption date, and (z) the
Participation Interest with respect to such HECM Loan shall be terminated.

Section 3.05    Representations, Warranties and Covenants Respecting Purchaser.
Purchaser represents, warrants and covenants to Seller that, as of the Closing
Date:
(a)    Organization and Standing. Purchaser is duly organized, validly existing
and in good standing under the laws of the jurisdiction in which it is organized
and has all licenses necessary to carry on its business as now being conducted
and is licensed, qualified and in good standing in each of the states where a
Mortgaged Property is located if the laws of such state require licensing or
qualification in order to conduct business of the type conducted by Purchaser
and to acquire and hold the Participation.

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(b)    Due Authority. Purchaser has the full corporate power and authority to
(i) perform, and to enter into and consummate, all transactions contemplated by
this Agreement and (ii) purchase and hold each Participation Interest; the
execution, delivery and performance of this Agreement by Purchaser and the
consummation of the transactions contemplated hereby have been duly and validly
authorized.
(c)    No Conflict. Neither the consummation of the transactions contemplated
hereby, nor the fulfillment of or compliance with the terms and conditions of
this Agreement, will conflict with or result in a breach of any of the terms,
conditions or provisions of its governing documents or result in a material
breach of any legal restriction by which Purchaser is bound, or constitute a
material default or result in an acceleration under any of the foregoing, or
result in the violation of any material law, rule, regulation, order, judgment
or decree to which Purchaser is subject.
(d)    No Consent Required. No consent, approval, authorization or order of any
court or governmental agency or body is required for the execution, delivery and
performance by Purchaser of this Agreement or the consummation of the
transactions contemplated by this Agreement, or if required, such consent,
approval, authorization or order has been obtained prior to the Closing Date.
Purchaser is an eligible purchaser and transferee of participation interests in
home equity conversion loans pursuant to FHA Regulations Section 206.101(f)(3)
(24 C.F.R. §206.101(f)(3)).
(e)    [Reserved]
(f)    Non-performing HECM Loans. Purchaser acknowledges that all or
substantially all of the HECM Loans are or have been non-performing on their
original and/or modified terms.
(g)    No Brokers. No broker, investment banker or other Person is entitled to
any broker’s, finder’s or other similar fee or commission in connection with the
transactions contemplated by this Agreement based upon arrangements made by or
on behalf of Purchaser that would become an obligation of Seller on or after the
Closing Date.
(h)    Ability to Perform. Purchaser does not believe, nor does it have any
reason or cause to believe, that it cannot perform each and every covenant and
obligation contained in this Agreement. There exists no law or judgment, award,
order, writ, or decree of any court that would prohibit Purchaser from acquiring
or holding the Participation pursuant to this Agreement.
(i)    [Reserved].
(j)    [Reserved].
(k)    No Reliance. In entering into this Agreement, Purchaser has not relied
upon any oral information from Seller or any of its employees, agents, attorneys
or representatives, other than the limited representations and warranties of
Seller contained herein. Purchaser acknowledges that no employee, agent,
attorney or representative of Seller has been authorized to make, and that
Purchaser has not relied upon, any statements, representations or warranties
other than those specifically contained in this Agreement.

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(l)    Use of Seller’s Name. Purchaser covenants and agrees that it shall not
(i) misrepresent, mislead, deceive, or otherwise fail to adequately disclose to
any particular Mortgagor or guarantor the identity of Seller as the owner of the
HECM Loan or (ii) use Seller’s name or hold itself out as an agent or
representative of Seller. Seller shall have the right to seek the entry of an
order by a court of competent jurisdiction enjoining any violation hereof.
(m)    Mortgagor Contact. Purchaser shall not initiate contact with any
Mortgagor related to any HECM Loan.

Section 3.06    Indemnification.
(a)    Purchaser shall indemnify and defend Seller and hold Seller harmless
against any Losses resulting from any claim, demand, defense or assertion
arising out of or resulting from a breach of Purchaser’s representations,
warranties and covenants contained in Section 3.05.
(b)    Subject to the limitations set forth in Section 3.06(c), Seller shall
indemnify and defend Purchaser and hold Purchaser harmless against any Losses
resulting from any claim, demand, defense or assertion arising out of or
resulting from (i) any claims arising out of or resulting from breach by Seller
of its representations and warranties set forth in Sections 3.01 and 3.02 and
(ii) a breach of Seller’s covenants set forth in this Agreement.
(c)    Limitations of Liability.
(i)    Purchaser shall be prohibited from bringing any loan-level claims for any
Losses (other than claims for Losses arising out of or related to any breach, or
alleged breach, of the representations and warranties set forth in Sections
3.02(a)-(e), (i), (j), (n), (o), (q), (u), (v), (w), (z), (aa), (ff), (gg),
(hh), (jj), (kk) and (mm)) with respect to which Purchaser reasonably expects
will be subsequently reimbursed by FHA Insurance claims proceeds pursuant to
Section 3.06(b)(i) with respect to a Mortgage Asset until such time as Servicer
receives the supplemental FHA Insurance claims proceeds related to such Mortgage
Asset.
(ii)    With respect to any loan-level claims for any Losses asserted by
Purchaser pursuant to Section 3.06(b)(i) pertaining to a Mortgage Asset, in no
event shall Seller have liability to Purchaser in excess of an amount equal to
90% of the sum of the related Closing Date Stated Principal Balance and Closing
Date Stated Advance Balance (other than with respect to any Third Party Claims
which may result in a Loss to Purchaser in excess of such capped amount, for
which Purchaser may seek indemnification for the amounts of such Losses).
(d)    Seller and Purchaser shall immediately notify the other if a claim is
made upon such party by a third party with respect to this Agreement (a “Third
Party Claim”). In the event of any such Third Party Claim made in respect of
which Purchaser or Seller may have contractual damage claims against the other
or be entitled to indemnification from the other, the party against whom such
damages may be sought or who owes such indemnification obligation shall have the
right, if it chooses, to control, assume the defense of, negotiate or settle any
such claim and pay all expenses in connection therewith, including reasonable
attorneys’ fees, and promptly pay, discharge and satisfy any judgment or decree
which may be entered against it or such other party in respect of

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such claim; provided, that the party provided such a defense for a Third Party
Claim may participate in any such proceeding with counsel of its choice and at
its expense. The parties hereto agree to cooperate fully with each other in
connection with the defense, negotiation or settlement of any such legal
proceeding.
(e)    The party that has control over any proceeding relating to a Third Party
Claim shall not settle such proceeding without the consent of any other
interested party hereto, which consent shall not be unreasonably withheld,
conditioned or delayed, unless the terms of any settlement or compromise provide
for (i) no relief other than the payment of monetary damages for which the other
interested party has received a written commitment for repayment of such
monetary damages from the party that has control of the Third Party Claim and
(ii) a full and unconditional release of the other interested party for all
liability in respect of such claim or litigation; provided, further, that if a
settlement is not consented to by such other interested party, that party shall
be liable in the event and to the extent that a subsequent settlement or other
resolution causes the party with the control of the proceeding to incur a
greater liability than that provided for in the proposed settlement that did not
receive the consent required hereunder.

Section 3.07    Paying Agent Account.
Seller shall make all indemnity, repurchase and redemption payments due to
Purchaser pursuant to Sections 3.04 and 3.06 into the Client Collection Account
(as defined in the Servicing Agreement) for distribution in accordance with the
Paying Agent Agreement (as defined in the Servicing Agreement).

Section 3.08    HMDA Reporting.
To the extent required by Applicable Law, within thirty (30) days of the Closing
Date, for each HECM Loan, Seller shall provide Purchaser with such data
reasonably requested by Purchaser and required to allow Purchaser to accurately
and timely record, perform quality control and report such data in compliance
with the federal Home Mortgage Disclosure Act of 1975, 12 USC § 2801 et. seq.
(HMDA), as implemented by Regulation C, 12 C.F.R. Part 1003 (Regulation C) and
further interpreted by the Consumer Financial Protection Bureau’s guidance, as
may be amended.

ARTICLE IV    

MISCELLANEOUS

Section 4.01    Notices.
All demands, notices and communications required to be provided hereunder shall
be in writing (including electronic mail) and shall be deemed to have been duly
given if mailed, by registered or certified mail, postage prepaid, and return
receipt requested, or, if by other means (including electronic mail), when
received by the other party at the address as set forth on Schedule 4.01 or such
other address as may hereafter be furnished to the other party by like notice.
Any such demand, notice or communication hereunder shall be

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deemed to have been received on the date delivered to or received at the
premises of the addressee (as evidenced, in the case of registered or certified
mail, by the date noted on the return receipt).

Section 4.02    Sale Treatment.
Except for U.S. federal income tax purposes, it is the express intention of the
parties that the transactions contemplated by this Agreement be, and be
construed as, a sale of the Participation by Seller and not a pledge of the
Participation by Seller to Purchaser to secure a debt or other obligation of
Seller. Further, the transactions contemplated by this Agreement are not
intended in any way to constitute the sale of a “security” or “securities”
within the meaning of any applicable securities laws, and none of the
representations, warranties or agreements of Seller or Purchaser shall create
any inference that the transactions involve any “security” or “securities.”
Consequently, the sale of the Participation shall be reflected as a sale on
Seller’s and a purchase on Purchaser’s business records and financial
statements, except for the Seller’s and Purchaser’s applicable tax returns.
If, notwithstanding the intended sale treatment referred to above, any transfer
characterized a court of competent jurisdiction as a transfer as security for a
loan rather than a sale, or any transfer shall or any reason be ineffective to
transfer to the transferee all of the transferor’s right, tile and interest in
any collections on the Mortgage Assets and the proceeds thereof, then the Seller
shall be deemed to have granted to the Purchaser, and the Seller hereby grants
to Purchaser, a security interest in and lien on all of Seller’s right title and
interest in and to the Mortgage Assets and the proceeds thereof, whether no
existing or hereafter acquired, in order to secure such loan and all other
obligations under this Agreement.

Section 4.03    Exhibits.
The Exhibits to this Agreement are hereby incorporated and made a part hereof
and are an integral part of this Agreement.

Section 4.04    General Interpretive Principles.
For purposes of this Agreement, except as otherwise expressly provided or unless
the context otherwise requires:
(a)    the terms defined in this Agreement have the meanings assigned to them in
this Agreement and include the plural as well as the singular, and the use of
any gender herein shall be deemed to include the other gender;
(b)    accounting terms not otherwise defined herein have the meanings assigned
to them in accordance with generally accepted accounting principles;

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(c)    references herein to “Articles,” “Sections,” “Subsections,” “Paragraphs,”
and other Subdivisions without reference to a document are to designated
Articles, Sections, Subsections, Paragraphs and other subdivisions of this
Agreement;
(d)    reference to a Subsection without further reference to a Section is a
reference to such Subsection as contained in the same Section in which the
reference appears, and this rule shall also apply to Paragraphs and other
subdivisions;
(e)    the words “herein,” “hereof,” “hereunder” and other words of similar
import refer to this Agreement as a whole and not to any particular provision;
(f)    the term “include” or “including” shall mean without limitation by reason
of enumeration; and
(g)    reference to this Agreement or any other document referenced herein shall
include all exhibits, schedules or other supplements thereto.

Section 4.05    Reproduction of Documents.
This Agreement and all documents relating thereto, including (a) consents,
waivers and modifications which may hereafter be executed, (b) documents
received by any party at the closing, and (c) certificates and other information
previously or hereafter furnished, may be reproduced by any photographic,
photostatic, microfilm, micro-card, miniature photographic or other similar
process. The parties agree that any such reproduction shall be admissible in
evidence as the original itself in any judicial or administrative proceeding,
whether or not the original is in existence and whether or not such reproduction
was made by a party in the regular course of business, and that any enlargement,
facsimile or further reproduction of such reproduction shall likewise be
admissible in evidence.

Section 4.06    Further Assurances.
The parties shall execute and deliver to each other such reasonable and
appropriate additional documents, instruments or agreements as may be necessary
or appropriate to effectuate the purposes of this Agreement. Seller and
Purchaser acknowledge that Purchaser intends to enter into the Note Purchase
Agreement with Note Purchaser, and that the Participation will constitute part
of the Note Purchaser’s collateral for the loan to Purchaser thereunder. Seller
and Purchaser shall cooperate with Note Purchaser by executing and delivering
such additional documents, instruments or agreements as may be necessary or
appropriate to effectuate the purposes of the Note Purchase Agreement, including
documents, instruments and agreements relating to the perfection and priority of
Note Purchaser’s security interests in the Participation and the collateral for
the loan. Purchaser and Seller shall not take any action that would contradict
the loan evidenced by the Note Purchase Agreement, and shall maintain tax,
accounting, bookkeeping and recordkeeping records consistent with the foregoing.

Section 4.07    Waiver; Amendment.

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Any term or provision of this Agreement may be waived, or the time for its
performance may be extended, by the party or parties entitled to the benefit
thereof. Any such waiver shall be validly and sufficiently authorized for the
purposes of this Agreement if, as to any party, it is authorized in writing by
an authorized representative of such party. The failure of any party hereto to
enforce at any time any provision of this Agreement shall not be construed to be
a waiver of such provision, nor in any way to affect the validity of this
Agreement or any part hereof or the right of any party thereafter to enforce
each and every such provision. No waiver of any breach of this Agreement shall
be held to constitute a waiver of any other or subsequent breach. This Agreement
shall not be amended, modified or supplemented except by a written instrument
signed by an authorized representative of each of the parties hereto.

Section 4.08    Governing Law; Forum.
(a)    THIS AGREEMENT SHALL BE DEEMED TO HAVE BEEN MADE IN THE STATE OF NEW
YORK. THIS AGREEMENT AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING OUT OF OR
RELATING TO THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK, EXCLUDING CONFLICT OF LAWS PROVISIONS (OTHER THAN SECTIONS 5-1401 AND
5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW, WHICH SHALL GOVERN).
(b)    EACH OF PURCHASER AND SELLER IRREVOCABLY (A) SUBMITS TO THE EXCLUSIVE
JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE FEDERAL COURTS OF
THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK FOR THE
PURPOSE OF ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT; (B) WAIVES, TO
THE FULLEST EXTENT PERMITTED BY LAW, THE DEFENSE OF AN INCONVENIENT FORUM IN ANY
ACTION OR PROCEEDING IN ANY SUCH COURT; (C) AGREES THAT A FINAL JUDGMENT IN ANY
ACTION OR PROCEEDING IN ANY SUCH COURT SHALL BE CONCLUSIVE AND MAY BE ENFORCED
IN ANY OTHER JURISDICTION BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER
PROVIDED BY LAW; AND (D) CONSENTS TO SERVICE OF PROCESS UPON IT BY MAILING A
COPY THEREOF BY CERTIFIED MAIL ADDRESSED TO IT AS PROVIDED FOR NOTICES
HEREUNDER.

Section 4.09    Waiver of Jury Trial.
THE PARTIES HERETO HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY AND
ALL RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED
ON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY, OR ANY OTHER DOCUMENTS OR INSTRUMENTS EXECUTED
IN CONNECTION HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS
(WHETHER ORAL OR WRITTEN), OR ACTION OF THE PARTIES HERETO.

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Section 4.10    Severability Clause.
Any part, provision, representation or warranty of this Agreement that is
prohibited or which is held to be void or unenforceable shall be ineffective to
the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof. Any part, provision, representation or warranty of
this Agreement which is prohibited or unenforceable or is held to be void or
unenforceable in any jurisdiction shall be ineffective, as to such jurisdiction,
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof. To the extent permitted by applicable law, the
parties hereto waive any provision of law that prohibits or renders void or
unenforceable any provision hereof.

Section 4.11    Successors; No Third Party Beneficiaries.
(a)    This Agreement shall bind and inure to the benefit of and be enforceable
by Seller and Purchaser and the respective permitted successors and assigns of
Seller and Purchaser. This Agreement does not and is not intended to confer any
rights or remedies upon any Person other than Seller and Purchaser and the
respective permitted successors and assigns of Seller and Purchaser, except as
otherwise explicitly required by law or as set forth in Section 4.11(b) below.
Any purported transfer of an interest in this Agreement (or any interest
therein) not in accordance with this Section 4.11 shall be null and void
ab initio and shall not be given effect for any purpose hereunder and will not
operate to transfer any rights to such Person. Seller and Purchaser shall not
sell, transfer or assign the Mortgage Assets for so long as this Agreement is in
effect, except as expressly permitted hereunder. Any purported transfer of the
Mortgage Assets (or any interest therein) not in accordance with this
Section 4.11 shall be null and void ab initio and shall not be given effect for
any purpose hereunder and will not operate to transfer any rights to such
Person.
(b)    Notwithstanding the foregoing, the parties acknowledge and agree that the
Note Purchaser is an express third-party beneficiary of this Agreement and shall
have the right to enforce Purchaser’s rights and remedies under this Agreement
until such time as the Note Principal Balance is paid in full in accordance with
the Note Purchase Agreement, and thereafter, solely with respect to
indemnification claims that may be brought by Purchaser pursuant to Section 3.06
with respect to Third Party Claims asserted against Note Purchaser.
(c)    The rights of the Note Purchaser under this Agreement (including as to
any power of attorney, authorization or agency granted herein) and any security
interests granted hereby shall terminate when all the obligations of Client to
Note Purchaser under the Note Purchase Agreement (the “Obligations”) have been
paid in full (other than inchoate claims in respect of indemnities for which no
claim has been made or is known to Client at the time all other Obligations have
been paid in full) and no Obligations remain outstanding (unless such
Obligations have been cash collateralized).

Section 4.12    Confidentiality.
(a)    Seller and Purchaser acknowledge and agree that the terms of this
Agreement and any information whether oral, written or otherwise provided by one
party to the other pursuant to

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this Agreement or the transactions contemplated herein, including the existence
and terms hereof shall be kept confidential, shall not be divulged to any Person
other than those that have a need to know such information in order to complete
the transaction contemplated herein without the other parties’ consent, and
shall be maintained according to applicable privacy laws except to the extent
that (i) it is necessary to disclose to its affiliates and its and their legal
counsel, accountants, auditors or advisors (collectively, “Representatives”),
(ii) it is necessary to do so in working with tax authorities or other
governmental agencies or regulatory, self-regulatory or supervisory bodies
having appropriate jurisdiction or in order to comply with any applicable
federal or state laws or regulations, or (iii) such information is in the public
domain other than due to a breach of this Section 4.12. Each party shall be
responsible for a breach of this Section 4.12 by its Representatives.
(b)    Each party shall hold and use all Confidential Information, as
hereinafter defined, in compliance with Subtitle A of Title V of the
Gramm-Leach-Bliley Act (codified at 15 U.S.C. § 6801 et seq.), as it may be
amended from time to time (the “GLB Act”), the regulations promulgated
thereunder, the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq. (the “FCRA”)
and all other applicable law. “Confidential Information” shall mean any data or
information that is proprietary to the disclosing party and not generally known
to the public, whether in tangible or intangible form, including the following
information: inventions, trade secrets, know-how, software, databases, customer
lists, all personal information about the Mortgagors that is supplied to Seller
or Purchaser by or on behalf of the Mortgagors, and other customer or consumer
specific data deemed to be “nonpublic personal information” under the GLB Act or
the FCRA. Each party shall take all reasonable measures to ensure that the
Confidential Information is not disclosed, published, released, transferred,
duplicated or otherwise made available to others in contravention of the
provisions of this Agreement or of the GLB Act, the regulations promulgated
thereunder, the FCRA or other applicable law. If the GLB Act, the regulations
promulgated thereunder, the FCRA or other applicable law now or hereafter in
effect impose a higher standard of confidentiality to the Confidential
Information, such standard shall prevail over the provisions of this Agreement.
(c)    Each party agrees that there is a likelihood that a disclosing party will
suffer irreparable harm if the other party fails to comply with the obligations
set forth in this Section 4.12 and that monetary damages may be inadequate to
compensate the disclosing party for such breach. Accordingly, each party agrees
that a disclosing party will, in addition to any other remedies available to it
at law or in equity, be entitled to seek injunctive relief to enforce the
provisions of this Section 4.12. The terms and provisions of this Section 4.12
shall survive the termination of this Agreement.
(d)    Notwithstanding anything to the contrary in this Agreement, each party
may disclose another party’s Confidential Information in connection with a
judicial or administrative proceeding when required to do so by applicable law,
when required by applicable law or regulation (including applicable securities
laws and regulations) or at the request of a regulatory authority in connection
with an examination of such party or its affiliates by a regulatory authority.
If any court, governmental agency, or regulatory body demands that a party
disclose any information contained in the Confidential Information to the public
or to a third party other than the court, governmental agency or regulatory
body, the recipient of such demand may, in the absence of a protective order,
disclose such information to the extent that it is advised in writing that it
must do so by its legal counsel; provided that the recipient of such demand
shall, unless restrained by applicable law or

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court order, provide written notice of such demand to the party that disclosed
the Confidential Information and copies of all notice papers, orders, requests
or other documents in order to allow such disclosing party to seek an
appropriate protective order. The recipient of a demand described in the
preceding sentence shall cooperate fully with a disclosing party seeking a
protective order, at the cost and expense of the party seeking a protective
order, should a disclosing party seek such an order.

Section 4.13    Entire Agreement.
This Agreement and any confidentiality agreements entered into by any of the
parties in connection with the Participation or HECM Loans, and the transactions
contemplated under this Agreement that explicitly survive the consummation of
the transactions contemplated hereunder constitute the entire understanding
between the parties hereto with respect to the subject matter hereof and
supersede all prior or contemporaneous oral or written communications regarding
same. The parties hereto understand and agree that no employee, agent or other
representative of a party has any authority to bind such party with respect to
any statement, representation, warranty or other expression unless said
statement, representation, warranty or other expression is specifically included
within the express terms of this Agreement. This Agreement shall not be
modified, amended or in any way altered except by an instrument in writing
signed by all parties.

Section 4.14    Execution in Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall
be considered an original instrument, but all of which shall be considered one
and the same agreement, and shall become binding when one or more counterparts
have been signed by each of the parties hereto and delivered to Seller and
Purchaser. Counterparts may be delivered electronically. Delivery of an executed
counterpart of this Agreement by facsimile or other electronic transmission
(i.e., “pdf” or “tif”) shall be effective as delivery of a manually executed
counterpart hereof and deemed an original.

[Signature Page Follows]

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IN WITNESS WHEREOF, the parties hereto have caused their names to be signed
hereto by their respective officers thereunto duly authorized as of the date
first above written.
REVERSE MORTGAGE SOLUTIONS, INC.,
Seller

By: /s/ Jeff Baker    
Name: Jeff Baker
Title: President

S-1

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RMS 2018-09, LLC,
Purchaser
By: /s/ Jeff Baker    
Name: Jeff Baker
Title: President

S-2

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SCHEDULE I
CUT-OFF DATE STATED PRINCIPAL AND ADVANCE BALANCE

[Exchanged via email sent by Seller to Note Purchaser on September 27, 2018]

Sch. I-1

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SCHEDULE II

FUNDING SCHEDULE

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RMS Credigy Participation 9/28/2018
Settlement Date 10/1/2018
8/31/18 Tape
UPB             250,338,873.69
Corporate Advances     4,955,539.39
    Total             255,294,413.08
Participation Purchase 90% 229,764,971.77
Wire Amounts
Credit Suisse (1) 157,945,579.23
Barclays (2) 22,046,487.81
RMS (3) 49,772,904.73
Total 229,764,971.77
Advance Funding Account (4) 600,000.00

Wire Instructions
Credit Suisse (1)
Bank: Citibank
ABA 021000089
Account #: 31018027
Account Name: CS Buyer/Reverse Mortgage Inbound

Barclays (2)
FED Box: HBQ
Bank: Bank of New York Mellon
ABA: 021000018
Account #: GLA 111569 BHQ
Account name: BBPLC LNBR Firm Cash W/H Gest USD
Reference: RMS Repurchase/Whole Loan Operations
Roger Billotto (212 320 7303)

RMS (3)
Bank: Wells Fargo
ABA: 121000248
Account #: 1854950415
Account Name: RMS Loan Settlement
Reference: RMS Loan Sale

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RMS (4)
Bank: Wells Fargo
ABA: 121000248
Account #: 4622960250
Account Name: RMS 2018-09 Advance Reserve
Reference: Participation Advances

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EXHIBIT A-1
MORTGAGE LOAN SCHEDULE
[To be delivered electronically on the Closing Date]

Ex. A-1-1

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EXHIBIT A-2
REO ASSETS SCHEDULE
[To be delivered electronically on the Closing Date]

Ex. A-2-1

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EXHIBIT B
COLLATERAL DOCUMENTS
Unless otherwise agreed to by Seller and Purchaser, with respect to each HECM
Loan, the Collateral Documents shall include each of the following items:
1.
Mortgage Note: The original Mortgage Note, endorsed “Pay to the order of
____________________, without recourse” and signed by an authorized officer (or
a copy of the Mortgage Note along with either an applicable lost note affidavit
or the related attorney bailee letter). Any such Mortgage Note must contain all
necessary intervening endorsements showing a complete chain of endorsement from
the originator (each such endorsement being sufficient to transfer all right,
title and interest of the party so endorsing, as noteholder or assignee thereof,
in and to that Mortgage Note);

2.
Mortgage: The original Mortgage or a copy of such Mortgage with evidence of
recording thereon;

3.
Intervening Assignments: The originals or copies of all intervening assignments
of Mortgage, if any, showing a complete chain of assignment from the originator
to Seller;

4.
Security Agreements: The original of any security agreement, chattel mortgage or
equivalent document executed in connection with the HECM Loan (if any), with
evidence of recording thereon;

5.
Power of Attorney: If the related Mortgage Note or Mortgage was executed
pursuant to a power of attorney or other instrument that authorized or empowered
such Person to sign, the original or copy of such power of attorney;

6.
Title Insurance Policy: The original or copy (which may be in electronic form)
of the mortgagee title insurance policy (and, with respect to REO Property, the
mortgage title insurance policy for the Related Mortgage Loan);

7.
The Home Equity Conversion Loan Agreement, with all exhibits and riders thereto;

8.
A copy of the trust agreement (if any) and amendments thereto (if applicable);
and

9.
A bailee letter (if any).

Ex. B-1

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EXHIBIT C-1
REQUIRED FIELDS FOR MORTGAGE LOAN SCHEDULE FOR HECM LOANS
loan_skey
fha_case_no
loan_sub_status
closing_signed_date
current_loan_balance (defined as “Stated Principal Balance” in the Agreement)
Total Corp Adv (defined as “Stated Advance Balance” in the Agreement)
loan_balance_dp
max_claim_amt
index_type
Margin
current_int_rate
prop_address1
prop_address2
prop_city
prop_state_code
prop_zip_code
debenture_int_rate
curtailment_total

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EXHIBIT C-2
REQUIRED FIELDS FOR MORTGAGE LOAN SCHEDULE FOR REO ASSETS
loan_skey
fha_case_no
loan_sub_status
closing_signed_date
current_loan_balance (defined as “Stated Principal Balance” in the Agreement)
Total Corp Adv (defined as “Stated Advance Balance” in the Agreement)
loan_balance_dp
max_claim_amt
index_type
Margin
current_int_rate
prop_address1
prop_address2
prop_city
prop_state_code
prop_zip_code
debenture_int_rate

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EXHIBIT D

FORM OF PARTICIPATION CERTIFICATE

From:
Reverse Mortgage Solutions, Inc.
(“Seller”)
To:
RMS 2018-09, LLC
(“Purchaser”)

In accordance with the Participation Interest Sale and Contribution Agreement
dated as of October 1, 2018 (the “Agreement”) by and between Seller and
Purchaser, Seller has delivered to Purchaser an undivided 100% participation in
the HECM Loans, REO Properties and related Advances identified on Annex I
attached hereto:

Number of Mortgage Assets                     [_________]

Cut-Off Date Stated Principal Balance            $

Cut-Off Date Stated Advance Balance            $

Participation Percentage                    100%

Terms used herein with initial capital letters and not defined herein have the
meanings given them in the Agreement. The rights and obligations of the parties
to this Participation Certificate are governed by the Agreement, which is
incorporated herein by reference.
SELLER:
PURCHASER:
Reverse Mortgage Solutions, Inc.
RMS 2018-09, LLC
 
 
By:_______________________
Name:______________________
Title: ______________________
By:_______________________
Name:______________________
Title: ______________________

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Annex I to Exhibit D

[Schedule of Mortgage Assets and related Advanced to be provided on Closing
Date]

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Schedule 3.02(f)

No Damage

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Schedule 4.01

Notices
(a)    If to Purchaser:
RMS 2018-09, LLC
c/o Reverse Mortgage Solutions, Inc.
14405 Walters Road, Suite 200
Houston, TX 77014
Attention: President
Email: Jeff.baker@rmsnav.com

With a copy to:
RMS 2018-09, LLC
c/o Reverse Mortgage Solutions, Inc.
14405 Walters Road, Suite 200
Houston, TX 77014
Attention: General Counsel
Email: Alan.clark@rmsnav.com
(b)    If to Note Purchaser:
National Founders LP
824 North Market Street, Suite 220
Wilmington, DE 19801
Attn: General Counsel
Email: general.counsel@credigy.net
Phone: 678-728-7310

With a copy to:
c/o Credigy Solutions Inc.
3715 Davinci Court, Suite 200
Norcross, GA 30092
Attn: General Counsel
Email: general.counsel@credigy.net
Phone: 678-728-7310
(c)    If to Seller:
Reverse Mortgage Solutions, Inc.
14405 Walters Road, Suite 200
Houston, TX 77014
Attention: President
Email: Jeff.baker@rmsnav.com

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With a copy to:
Reverse Mortgage Solutions, Inc.
14405 Walters Road, Suite 200
Houston, TX 77014
Attention: General Counsel
Email: Alan.clark@rmsnav.com

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