EX-10.27



 [***] - Confidential portions of this document have been redacted and filed separately with the
Commission. 
 Exhibit 10.27 
  





 
 MASTER REPURCHASE AGREEMENT 

(the “Agreement”) 

between 
 BANK OF AMERICA, N.A.

 (“Buyer”) 
 and

 LOANDEPOT.COM, LLC 

(“Seller”) 
 dated as of

 December 23, 2009 







 TABLE OF CONTENTS 

 

							
	ARTICLE 1	  
	DEFINITIONS AND PRINCIPLES OF CONSTRUCTION	  
			
	 Section 1.1
	 	 Defined Terms
	  	 	1	  
	 Section 1.2
	 	 Principles of Constructions
	  	 	1	  
	
	ARTICLE 2	  
	AMOUNTS AND TERMS OF TRANSACTIONS	  
			
	 Section 2.1
	 	 Agreement to Enter into Transactions
	  	 	1	  
	 Section 2.2
	 	 Transaction Limits
	  	 	2	  
	 Section 2.3
	 	 Description of Purchased Assets
	  	 	2	  
	 Section 2.4
	 	 Maximum Transaction Amounts
	  	 	2	  
	 Section 2.5
	 	 Use of Proceeds
	  	 	2	  
	 Section 2.6
	 	 Price Differential
	  	 	2	  
	 Section 2.7
	 	 Transactions are “Servicing Released”
	  	 	3	  
	 Section 2.8
	 	 Terms and Conditions of Transactions
	  	 	3	  
	 Section 2.9
	 	 Guarantee
	  	 	3	  
	
	ARTICLE 3	  
	PROCEDURES FOR REQUESTING AND ENTERING INTO TRANSACTIONS	  
			
	 Section 3.1
	 	 Policies and Procedures
	  	 	3	  
	 Section 3.2
	 	 Request for Transaction; Asset Data Record
	  	 	3	  
	 Section 3.3
	 	 Delivery of Mortgage Loan Documents
	  	 	4	  
	 Section 3.4
	 	 Haircut
	  	 	4	  
	 Section 3.5
	 	 Over/Under Account
	  	 	4	  
	 Section 3.6
	 	 Payment of Purchase Price
	  	 	6	  
	 Section 3.7
	 	 Approved Payees
	  	 	8	  
	 Section 3.8
	 	 Funding Drafts
	  	 	9	  
	
	ARTICLE 4	  
	REPURCHASE	  
			
	 Section 4.1
	 	 Repurchase Price
	  	 	10	  
	 Section 4.2
	 	 Repurchase Acceleration Events
	  	 	10	  
	 Section 4.3
	 	 Reduction of Asset Value as Alternative Remedy
	  	 	11	  
	 Section 4.4
	 	 Designation as Noncompliant Mortgage Loan as Alternative Remedy
	  	 	11	  
	 Section 4.5
	 	 Illegality or Impracticability
	  	 	11	  
	 Section 4.6
	 	 Payments Pursuant to Sale to Approved Investors
	  	 	11	  
	 Section 4.7
	 	 Application of Payments from Seller or Approved Investors
	  	 	12	  
	 Section 4.8
	 	 Method of Payment
	  	 	12	  
	 Section 4.9
	 	 Notification of Payment
	  	 	12	  
	 Section 4.10
	 	 Authorization to Debit
	  	 	13	  
	 Section 4.11
	 	 Book Account
	  	 	13	  
	 Section 4.12
	 	 Full Recourse
	  	 	13	  
	
	ARTICLE 5	  
	FEES	  
			
	 Section 5.1
	 	 Payment of Fees
	  	 	13	  


  
 i 









							
	ARTICLE 6	  
	SECURITY; SERVICING; MARGIN ACCOUNT MAINTENANCE; CUSTODY OF MORTGAGE LOAN	  
	DOCUMENTS AND REPURCHASE TRANSACTIONS	  
			
	 Section 6.1
	 	 Precautionary Grant of Security Interest
	  	 	13	  
	 Section 6.2
	 	 Servicing
	  	 	14	  
	 Section 6.3
	 	 Margin Account Maintenance
	  	 	18	  
	 Section 6.4
	 	 Custody of Mortgage Loan Documents
	  	 	19	  
	 Section 6.5
	 	 Release of Mortgage Loan Documents
	  	 	20	  
	 Section 6.6
	 	 Repurchase Transactions
	  	 	20	  
	
	ARTICLE 7	  
	CONDITIONS PRECEDENT	  
			
	 Section 7.1
	 	 Initial Transaction
	  	 	21	  
	 Section 7.2
	 	 All Transactions
	  	 	22	  
	 Section 7.3
	 	 lntercreditor Agreements
	  	 	23	  
	 Section 7.4
	 	 Satisfaction of Conditions
	  	 	23	  
	
	ARTICLE 8	  
	REPRESENTATIONS AND WARRANTIES	  
			
	 Section 8.1
	 	 Representations and Warranties Concerning Seller
	  	 	24	  
	 Section 8.2
	 	 Representations and Warranties Concerning Purchased Assets
	  	 	24	  
	 Section 8.3
	 	 Continuing Representations and Warranties
	  	 	24	  
	 Section 8.4
	 	 Amendment of Representations and Warranties
	  	 	24	  
	
	ARTICLE 9	  
	AFFIRMATIVE COVENANTS	  
			
	 Section 9.1
	 	 Financial Statements and Other Reports
	  	 	24	  
	 Section 9.2
	 	 Inspection of Properties and Books
	  	 	25	  
	 Section 9.3
	 	 Notice
	  	 	25	  
	 Section 9.4
	 	 Additional Financing
	  	 	26	  
	 Section 9.5
	 	 Servicing of Mortgage Loans
	  	 	27	  
	 Section 9.6
	 	 Evidence of Purchased Assets
	  	 	27	  
	 Section 9.7
	 	 Protection of Purchased Mortgage Loans
	  	 	27	  
	 Section 9.8
	 	 Further Assurances
	  	 	27	  
	 Section 9.9
	 	 Fidelity Bonds and Insurance
	  	 	27	  
	 Section 9.10
	 	 Wet Mortgage Loans
	  	 	27	  
	
	ARTICLE 10	  
	NEGATIVE COVENANTS	  
			
	 Section 10.1
	 	 Liabilities and Advances
	  	 	28	  
	 Section 10.2
	 	 Debt and Subordinated Debt
	  	 	28	  
	 Section 10.3
	 	 Loss of Eligibility
	  	 	28	  
	 Section 10.4
	 	 Financial Covenants and Ratios
	  	 	28	  
	 Section 10.5
	 	 Loans to Officers, Employees and Shareholders
	  	 	28	  
	 Section 10.6
	 	 Liens on Purchased Mortgage Loans and Purchased Assets; Liens on Other Assets
	  	 	29	  
	 Section 10.7
	 	 Transactions with Affiliates
	  	 	29	  
	 Section 10.8
	 	 Consolidation, Merger, Sale of Assets and Change of Control
	  	 	29	  
	 Section 10.9
	 	 Payment of Dividends and Retirement of Stock
	  	 	29	  
	 Section 10.10
	 	 Purchased Assets
	  	 	29	  
	 Section 10.11
	 	 Secondary Marketing, Underwriting, Third Party Origination and Interest Rate Risk Management Practices
	  	 	30	  


  
 ii 









							
	ARTICLE 11	  
	DEFAULTS AND REMEDIES	  
			
	 Section 11.1
	 	 Events of Default
	  	 	30	  
	 Section 11.2
	 	 Remedies
	  	 	32	  
	 Section 11.3
	 	 Treatment of Custodial Account
	  	 	32	  
	 Section 11.4
	 	 Sale of Purchased Assets
	  	 	33	  
	 Section 11.5
	 	 No Obligation to Pursue Remedy
	  	 	33	  
	 Section 11.6
	 	 Reimbursement of Costs and Expenses
	  	 	33	  
	 Section 11.7
	 	 Application of Proceeds
	  	 	33	  
	 Section 11.8
	 	 Rights of Set-Off
	  	 	34	  
	 Section 11.9
	 	 Reasonable Assurances
	  	 	34	  
	
	ARTICLE 12	  
	INDEMNIFICATION	  
			
	 Section 12.1
	 	 Indemnification
	  	 	35	  
	 Section 12.2
	 	 Payment of Taxes
	  	 	35	  
	
	ARTICLE 13	  
	TERM AND TERMINATION	  
			
	 Section 13.1
	 	 Term
	  	 	35	  
	 Section 13.2
	 	 Termination
	  	 	35	  
	 Section 13.3
	 	 Extension of Term
	  	 	36	  
	
	ARTICLE 14	  
	GENERAL	  
			
	 Section 14.1
	 	 Integration; Servicing Provisions Integral and Non-Severable
	  	 	36	  
	 Section 14.2
	 	 Amendments
	  	 	36	  
	 Section 14.3
	 	 No Waiver
	  	 	36	  
	 Section 14.4
	 	 Remedies Cumulative
	  	 	36	  
	 Section 14.5
	 	 Assignment
	  	 	37	  
	 Section 14.6
	 	 Successors and Assigns
	  	 	37	  
	 Section 14.7
	 	 Participations
	  	 	37	  
	 Section 14.8
	 	 Invalidity
	  	 	37	  
	 Section 14.9
	 	 Additional Instruments
	  	 	37	  
	 Section 14.10
	 	 Survival
	  	 	37	  
	 Section 14.11
	 	 Notices
	  	 	37	  
	 Section 14.12
	 	 Personal Identification Number
	  	 	38	  
	 Section 14.13
	 	 Governing Law
	  	 	38	  
	 Section 14.14
	 	 Counterparts
	  	 	38	  
	 Section 14.15
	 	 Headings
	  	 	38	  
	 Section 14.16
	 	 Joint and Several Liability of Each Seller
	  	 	39	  
	 Section 14.17
	 	 Confidential Information
	  	 	39	  
	 Section 14.18
	 	 Intent
	  	 	39	  
	 Section 14.19
	 	 Right to Liquidate
	  	 	40	  
	 Section 14.20
	 	 Insured Depository Institution
	  	 	40	  
	 Section 14.21
	 	 Netting Contract
	  	 	40	  
	 Section 14.22
	 	 Reimbursement of Expenses
	  	 	40	  


  
 iii 









			
	EXHIBITS
		
	Exhibit A:	  	Glossary of Defined Terms
	Exhibit B:	  	Irrevocable Closing Instructions
	Exhibit C:	  	Secretary’s Certificate
	Exhibit D:	  	Corporate Resolutions
	Exhibit E:	  	Officer’s Certificate
	Exhibit F:	  	Assignment of Closing Protection Letter
	Exhibit G:	  	Assignment of Fidelity Bond and Errors and Omission Policy
	Exhibit H:	  	Form of Power of Attorney
	Exhibit 1:	  	Acknowledgement of Password Confidentiality Agreement
	Exhibit J:	  	Wiring Instructions
	Exhibit K:	  	Form of Servicer Notice
	Exhibit L:	  	Representations and Warrranties
	
	SCHEDULES
		
	Schedule 1:	  	Filing Jurisdictions and Offices


  
 iv 








 



 
 MASTER REPURCHASE AGREEMENT 

THIS MASTER REPURCHASE AGREEMENT (the “Agreement”) is made and entered into as of December 23, 2009 by and between Bank of America, N.A., a
national banking association (“Buyer”), and LoanDepot.com, LLC, a Delaware limited liability company (“Seller”). 

RECITALS 
  

	 	A.	Seller has requested Buyer to enter into transactions with Seller whereby Seller may, from time to time, sell to Buyer certain residential mortgage loans (including the servicing rights related thereto) and/or other
mortgage related assets and interests, against the transfer of funds by Buyer, with a simultaneous agreement by Buyer to sell to Seller such purchased assets at a date certain or on demand after the Purchase Date, against the transfer of funds by
Seller (each such transaction, a “Transaction”). 

  

	 	B.	Buyer has agreed to consider entering into such Transactions, subject to the terms and conditions set forth in this Agreement. 


NOW, THEREFORE, in consideration of the mutual rights and obligations provided herein and for other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, Seller and Buyer agree as follows: 
 ARTICLE 1 

DEFINITIONS AND PRINCIPLES OF CONSTRUCTION 
  

	1.1	Defined Terms. As used in this Agreement, capitalized terms shall have the meanings set forth in Exhibit A hereto, unless the context otherwise requires. All such defined terms shall, unless
specifically provided to the contrary, have the defined meanings set forth herein when used in any other agreement, certificate or document made or delivered pursuant hereto. 


 

	1.2	Principles of Constructions. 

  

	 	(a)	Accounting Terms. Accounting terms not otherwise defined herein shall have the meanings given under GAAP. 

  

	 	(b)	Number. All terms defined in this Agreement may be used in the singular or the plural, as the context requires. 

  

	 	(c)	Successors and Assigns. Reference to any party shall mean that party and its successors and assigns permitted by the terms of this Agreement. 


ARTICLE 2 
 AMOUNT AND TERMS OF
TRANSACTIONS 
  

	2.1	Agreement to Enter into Transactions. Subject to the terms and conditions of this Agreement and provided that no Event of Default or Potential Default has occurred and is continuing, Buyer agrees,
from time to time during the term of this Agreement, to consider entering into Transactions with Seller; provided, however, that the Buyer shall be under no obligation to enter into Transactions with Seller and the total aggregate Transactions
outstanding at any one time shall not exceed the Aggregate Transaction Limit and the aggregate type of Transactions outstanding at any one time shall not exceed the applicable Type Sublimit. 


  
 1 









	2.2	Transaction Limits. The Aggregate Transaction Limit and each Type Sublimit shall be as set forth in the Transactions Terms Letter. Buyer shall have the right, in its sole and good faith discretion,
to reduce, whether permanently or temporarily, and without refund of any fee or other amount previously paid by Seller, the Aggregate Transaction Limit and/or each Type Sublimit. In the event of any reduction pursuant to this
Section 2.2, Buyer shall give Seller prior notice thereof, which notice shall designate (a) the effective date of any such reduction, (b) the amount of the reduction and (c) the Transaction and/or Type Sublimit limit(s) to
which such reduction amount shall apply. Buyer shall not be liable to Seller for any costs, losses or damages arising from or relating to a reduction by Buyer in the Aggregate Transaction Limit or any Type Sublimit. 


 

	2.3	Description of Purchased Assets. With respect to each Transaction, Seller shall cause to be maintained with Buyer Purchased Assets consisting of a Purchased Mortgage Loan(s) with an Asset Value not
less than, at any date, the related Purchase Price for such Transaction. With respect to each Transaction, the type of Purchased Mortgage Loan shall be the type of Mortgage Loan as specified in the Transactions Terms Letter as the Type, and in each
case shall consist of the type of mortgage loans, mortgage related securities, or interests therein as described in Bankruptcy Code section 101 (47)(A). If there is uncertainty as to the Type of a Purchased Mortgage Loan, Buyer, in its sole and good
faith discretion, shall determine the correct Type for such Purchased Mortgage Loan. 

  

	2.4	Maximum Transaction Amounts. Each Transaction shall not exceed the lesser of: 

  

	 	(a)	the applicable Type Sublimit, as determined by the type of Purchased Mortgage Loan; 

  

	 	(b)	the Aggregate Transaction Limit, minus the aggregate amount of all other Transactions outstanding, if any; and 

  

	 	(c)	the Asset Value of the related Purchased Mortgage Loan(s). 

  

	2.5	Use of Proceeds. Seller shall use the Purchase Price of each Transaction solely for the purpose of originating and/or acquiring the related Purchased Mortgage Loan(s). 


 

	2.6	Price Differential. 

  

	 	(a)	Pricing Rate. Notwithstanding that Buyer and Seller intend that the Transactions hereunder be sales by Seller to Buyer of the Purchased Mortgage Loans for all purposes except accounting and tax purposes, Seller
shall pay Buyer a price differential on the Purchase Price for each Purchased Mortgage Loan from the Date of Disbursement until, but not including, the date of repurchase, at an annual rate equal to the sum of the Applicable Pricing Rate plus the
applicable Margin; provided, however, that if a Purchased Mortgage Loan is deemed to be a Noncompliant Mortgage Loan, thereafter, such Purchase Price shall bear a price differential at an annual rate equal to the sum of the Applicable Pricing Rate
plus the Type Margin for a Noncompliant Mortgage Loan. Notwithstanding the foregoing, if the Repurchase Price for a Transaction is not paid by Seller when due (whether at the Repurchase Date, upon acceleration or otherwise), the Purchase Price shall
bear a price differential from the date due until paid in full at an annual rate equal to the Default Rate. 

  

	 	(b)	Time for Payment. Accrued interest for each Purchase Price shall be due and payable on each Payment Date which occurs prior to the date on which the Repurchase Price is paid. On the date that the Repurchase Price
is paid, all accrued interest not otherwise paid by Seller shall be due and payable. 

  

	 	(c)	Computations. All computations of price differentials and fees payable hereunder shall be based upon a year of three-hundred sixty (360) days. 


  
 2 









	2.7	All Transactions are “Servicing Released”. The sale of Mortgage Loans by Seller to Buyer pursuant to Transactions under this Agreement includes the servicing rights related to the Mortgage
Loans and all Transactions under this Agreement are “servicing released” purchase and sale transactions for all intents and purposes, it being understood that the Purchase Price paid by Buyer to Seller for each Mortgage Loan includes a
premium that compensates Seller for the servicing rights related to the Mortgage Loan and upon payment of the Purchase Price by Buyer to Seller, Buyer becomes the owner of the Mortgage Loan, including the servicing rights related to the Mortgage
Loan. 

  

	2.8	Terms and Conditions of Transactions. The terms and conditions of the Transactions as set forth in the Transactions Terms Letter, this Agreement or otherwise may be changed from time to time by
Buyer at its sole and good faith discretion by providing prior notice to Seller. 

  

	2.9	Guarantee. As may be determined necessary by Buyer from time to time in its sole and good faith discretion, Seller agrees to cause to be executed and delivered to Buyer such Guarantees and/or
additional security agreements as additional support for Seller’s obligations hereunder, which Guarantees and/or additional security agreements shall be considered “margin payments” as such term is defined in Bankruptcy Code
Section 741(5). 

 ARTICLE 3 

PROCEDURES FOR REQUESTING AND ENTERING INTO TRANSACTIONS 
  

	3.1	Policies and Procedures. In connection with the Transactions contemplated hereunder, Seller shall comply with all applicable policies and procedures of Buyer as may currently exist or as hereafter
created. Such policies and procedures may be in writing, published on Buyer’s website(s) or otherwise contained in the Handbook. Buyer shall have the right to change, revise, amend or supplement its policies and procedures and the Handbook from
time to time to conform to current legal requirements or Buyer practices by giving advance notice thereof to Seller. 

  

	3.2	Request for Transaction; Asset Data Record. 

  

	 	(a)	Request for Transaction. Seller shall request a Transaction by delivering to Buyer, electronically or in writing, an Asset Data Record for each Mortgage Loan intended to be the subject of the Transaction no later
than the Transaction Request Deadline; provided, however, that (i) if Seller intends to request a Transaction or series of Transactions equal to or greater than ten million ($10,000,000) dollars or (ii) Seller is approved to receive the
Purchase Price for Transactions via cashiers check and would like the Purchase Price for a Transaction to be paid by cashiers check, in either case, Seller shall provide Buyer not fewer than one (1) Business Day prior written notice thereof. Buyer
shall be under no obligation to enter into any Transaction or Transactions requested by Seller. If Buyer decides to enter into a Transaction, Buyer shall confirm to Seller the terms of Transactions electronically or in writing. Buyer reserves the
right to reject any Transaction request that Buyer determines, in its sole and good faith discretion, fails to comply with the terms and conditions of this Agreement or Buyer’s then current policies and procedures. 


 

	 	(b)	 Failure to Enter into Transaction; Cancellation of Transaction. If Seller fails five (5) times or more to enter into a Transaction after
Seller has requested a Transaction and submitted an Asset Data Record in connection with such request, for each Transaction requested by Seller thereafter for which Seller fails to enter into such Transaction, Seller shall pay Buyer the Breakage Fee
and reimburse Buyer for any reasonable out-of-pocket losses, costs and expenses incurred by Buyer in connection with such failure to enter into the Transaction, including, without limitation, costs relating to re-employment of funds obtained by
Buyer and fees payable to terminate the arrangements through which such funds were obtained. In addition, if following disbursement by Buyer of the Purchase 



  
 3 









	 	
Price relating to any Transaction, Seller cancels such Transaction, regardless of the number of Transactions Seller has previously cancelled, Seller shall pay Buyer a price differential on such
Purchase Price from the Date of Disbursement until, but not including, the date the Purchase Price is returned to Buyer. 

  

	 	(c)	Form of Asset Data Record. Buyer shall have the right to revise or supplement the form of the Asset Data Record from time to time by giving prior notice thereof to Seller. 


 

	3.3	Delivery of Mortgage Loan Documents. 

  

	 	(a)	Dry Mortgage Loans. Prior to any Transaction related to a Dry Mortgage Loan, Seller shall deliver to Buyer or its Custodian, or authorize and direct the Closing Agent to deliver to Buyer or its Custodian, the
related Mortgage Loan Documents. 

  

	 	(b)	Wet Mortgage Loans. With respect to a Transaction the subject of which is a Wet Mortgage Loan, Seller shall deliver to Buyer or its Custodian, or authorize and direct the Closing Agent to deliver to Buyer or its
Custodian, the related Mortgage Loan Documents within the Wet Mortgage Loans Maximum Dwell Time. 

  

	 	(c)	Government Mortgage Loans. If a Government Mortgage Loan is the subject of a Transaction, Seller shall, at the request of Buyer, deliver to Buyer or its Custodian, within forty five (45) calendar days
following the date of such Transaction, a mortgage insurance policy issued under an FHA insurance program or a guaranty for the full and timely payment of principal and interest issued by the VA, as applicable, or evidence of such insurance or
guaranty, as applicable, including proof of payment of the premium and the case number so Buyer can access the information on the computer system maintained by FHA or the VA. 


 

	 	(d)	Mortgage Loan Documents in Seller’s Possession. At all times during which the Mortgage Loan Documents related to any Purchased Mortgage Loan are in the possession of Seller, and until such Purchased Mortgage
Loan is repurchased by Seller, Seller shall hold such Mortgage Loan Documents in trust separate and apart from Seller’s own documents and assets and for the exclusive benefit of Buyer and shall act only in accordance with Buyer’s written
instructions thereto. Such Mortgage Loan Documents should be clearly marked as subject to delivery to Buyer. 

  

	 	(e)	Other Mortgage Loan Documents in Seller’s Possession. With respect to each Purchased Mortgage Loan, until such Purchased Mortgage Loan is repurchased by Seller, Seller shall hold in trust separate and apart
from Seller’s own documents and assets and for the exclusive benefit of Buyer all mortgage loan documents related to such Purchased Mortgage Loan and not delivered to Buyer, including, without limitation, the Other Mortgage Loan Documents, as
applicable. All such mortgage loan documents shall be clearly marked as subject to delivery to Buyer. 

  

	3.4	Haircut. With respect to each Transaction, Seller shall ensure that there are sufficient funds on deposit in the Over/Under Account such that following the withdrawal of the Haircut by Buyer, the
balance of the Over/Under Account is equal to or greater than the minimum required balance, as set forth in the Transactions Terms Letter. 

  

	3.5	Over/Under Account. 

  

	 	(a)	 Minimum Balance. Seller shall at all times maintain a margin balance in the Over/Under Account of not less than that amount set forth in the
Transactions Terms Letter, which account shall be used to assist in settling the Transactions and any other obligations under this Agreement. Buyer shall not be required to segregate and hold funds deposited by or on behalf of Seller in the
Over/Under Account separate and apart from 



  
 4 









	 	
Buyer’s own funds or funds deposited by or held for others. Upon the occurrence of a Potential Default or an Event of Default, Buyer shall have the right, in its sole and good faith
discretion, to increase the minimum margin balance Seller is required to maintain in the Over/Under Account by giving notice to Seller thereof. If Seller fails to deposit funds in the Over/Under Account to comply with any such required increase
within the time frame required by Buyer, Buyer shall have the right, in its sole and good faith discretion, to retain in the Over/Under Account any amounts received by Buyer on behalf of Seller or otherwise credited to the Over/Under Account to
comply with any such required increases, including, without limitation, any purchase proceeds received by Buyer from any Approved Investor pursuant to Section 4.6. Buyer shall not be liable to Seller for any costs, losses or damages
arising from or relating to the increase of the minimum margin balance that Seller is required to maintain in the Over/Under Account or retention of excess funds by Buyer to comply with any such increase. 


 

	(b)	Deposits. 

  

	 	(i)	Seller. Seller shall deposit margin in the form of funds in the Over/Under Account in accordance with the terms of this Agreement, including, without limitation, Section 3.4 and
Section 3.5(a). 

  

	 	(ii)	Buyer. Buyer shall credit to the Over/Under Account all amounts in excess of those amounts due to Buyer in accordance with the Principal Agreements on the date Buyer receives or has received both (1) a
payment by Seller or an Approved Investor pursuant to a Purchase Commitment and (2) a Purchase Advice relating to such payment without discrepancy; provided, however, that funds and Purchase Advices received by Buyer after that time set forth
in the Transactions Terms Letter, shall be deemed to have been received on the next Business Day. Buyer shall use reasonable efforts to notify Seller if there is a discrepancy between a wire transfer and the related Purchase Advice, and thereafter,
Seller shall notify Buyer as to whether Buyer should accept such settlement payment despite the discrepancy between the amount received and the related Purchase Advice; provided, however, that if an Event of Default or Potential Default has occurred
and is continuing, Buyer is not obligated to receive approval from Seller prior to accepting any amounts received and releasing the related Purchased Assets. 

  

	 	(iii)	Settlement Statement. Buyer shall deliver to Seller via facsimile or make available to Seller via the Internet within one (1) Business Day following settlement of a Transaction, or as soon thereafter as is
reasonably possible, a settlement statement, which includes an explanation of all amounts credited by Buyer to the Over/Under Account to settle the Transaction. 

  

	(c)	Withdrawals. 

  

	 	(i)	Seller. If the amount credited to the Over/Under Account creates a balance in excess of the minimum margin balance required pursuant to Section 3.5(a) above, provided that no Potential Default or
Event of Default has occurred and is continuing, Seller may submit a written request to Buyer for return or payment of such excess funds. If any such request is received by Buyer prior to 10:00 a.m. (Pacific time) on a Business Day, Buyer shall use
commercially reasonable efforts to wire such requested excess funds to Seller by the end of such Business Day and in no event no later than two (2) Business Days after Buyer’s receipt of such request. Notwithstanding anything contained in
this Section 3.5(c)(i) to the contrary, Buyer reserves the right to reject any request for excess funds from the Over/Under Account if Buyer determines, in its sole and good faith discretion, that such excess funds shall be used to
satisfy Seller’s outstanding obligations under this Agreement or are subject to other rights as provided in this Agreement. 


  
 5 









	 	(ii)	Buyer. Buyer may, from time to time and without separate authorization by Seller or notice to Seller, withdraw funds from the Over/Under Account to settle amounts owed in accordance with the terms of this
Agreement or to otherwise satisfy Seller’s obligations under this Agreement, including, without limitation: 

  

	 	(1)	with respect to any Transaction, to deliver the Haircut to the Closing Agent; 

  

	 	(2)	to reimburse itself for any reasonable costs and expenses incurred by Buyer in connection with this Agreement, as permitted herein; 

  


	 	(3)	to pay itself any price differential on a Purchase Price that is due and owing; 

  

	 	(4)	to Seller as provided in Section 3.5(c)(i); 

  

	 	(5)	as security for the performance of Seller’s obligations hereunder; 

  

	 	(6)	without limiting the generality of Section 3.5(c)(ii)(5), as security for a Transaction as provided in Section 6.3(a) or as repayment of a Repurchase Price as provided in
Section 6.3(b); and 

  

	 	(7)	in the exercise of Buyer’s or its Affiliates rights under Section 6.3(d) or Section 11.8. 

  

	 	(d)	Failure to Maintain Balance. If, at any time, Seller fails to maintain in the Over/Under Account the minimum margin balance as required hereunder, in addition to any other rights and remedies that Buyer may have
against Seller, Buyer shall have the right, at its sole and good faith discretion, to immediately stop entering into Transactions with Seller and/or to charge Seller accrued interest on that portion of the minimum margin balance that Seller has
failed to maintain, at the Default Rate, from the time that such balance failed to be maintained until the time that funds are deposited into or held in the Over/Under Account to comply with such minimum margin balance requirements hereunder.
Without limiting the generality of the foregoing, it is understood and agreed that should the balance in the Over/Under Account become negative, Seller will continue to owe Buyer accrued interest as provided herein. 


 

	 	(e)	Security Interest. Any funds of Seller at any time deposited or held in the Over/Under Account, whether such funds are required to be deposited and held in the Over/Under Account pursuant to this
Section 3.5 or otherwise, are hereby pledged by Seller as security for its obligations under this Agreement, and Seller hereby grants a security interest in such funds to Buyer. 


 

	3.6	Payment of Purchase Price. 

  

	 	(a)	Payment of Purchase Price. On the Purchase Date for each Transaction, ownership of the Purchased Mortgage Loans, including the servicing rights related thereto, shall be transferred to Buyer against the
simultaneous transfer of the Purchase Price to Seller simultaneously with the delivery to Buyer of the Purchased Mortgage Loans relating to each Transaction. With respect to the Purchased Mortgage Loans being sold by Seller on the Purchase Date,
Seller hereby sells, transfers, conveys and assigns to Buyer or its designee without recourse, but subject to the terms of this Agreement, all the right, title and interest of Seller in and to the Purchased Mortgage Loans, including the servicing
rights related thereto, together with all right, title and interest in and to the proceeds of any related Purchased Assets. 


  
 6 









	 	(b)	Methods of Payment. On the Purchase Date for each Transaction: 

  

	 	(i)	Buyer may pay the Purchase Price (A) by wire transfer in accordance with Seller’s wire instructions in Exhibit J, (B) if Seller is approved to receive the Purchase Price via cashiers check and has
requested to receive the Purchase Price via cashiers check, by cashiers check or (C) if Seller is approved to present funding drafts to Buyer and Seller has requested to receive the Purchase Price via funding draft, by funding draft, subject to
the requirements of Section 3.8. Unless Seller is approved to receive the Purchase Price via cashiers check or funding draft and Seller has requested that payment be made using one of these methods for a particular Transaction, Buyer
shall pay the Purchase Price for all Transactions by wire transfer. Buyer shall have no obligation to pay the Purchase Price by cashiers check or funding draft unless and until Seller has requested to receive payment in such manner and Seller has
otherwise complied with all applicable policies and procedures regarding such methods of payment. Notwithstanding the foregoing, Buyer shall not be obligated to pay the Purchase Price under any method of payment to any Closing Agent or warehouse
lender that is not an Approved Payee. Further, the payment of the Purchase Price by Buyer to any Closing Agent or warehouse lender that is not an Approved Payee shall not make such Closing Agent or warehouse lender an Approved Payee. Any funds
disbursed by Buyer to Seller or its Approved Payee shall be subject to all applicable federal, state and local laws, including, without limitation, regulations and policies of the Board of Governors of the Federal Reserve System on Reduction of
Payments System Risk. Seller acknowledges that as a result of such applicable laws, regulations and policies, equipment malfunction, Buyer’s approval procedures or circumstances beyond the reasonable control of Buyer, the payment of a Purchase
Price using one or more of the methods described above may be delayed. Further, Seller acknowledges that a funding draft may not constitute “good funds” under certain state laws and funds will not be released to the payee until Buyer, in
its sole and good faith discretion, has reviewed and accepted the funding draft following presentment of the draft to the payor bank. Buyer shall not be liable to Seller for any costs, losses or damages arising from or relating to any such delays,
or 

  

	 	(ii)	Notwithstanding the foregoing, where a Purchased Mortgage Loan is the subject of third party financing, Buyer may pay all or any portion of the Purchase Price directly to the warehouse or other lender that has a
security interest in the Purchased Mortgage Loan to satisfy the related indebtedness and obtain a release of such security interest. 

  

	 	(c)	Transaction Limitations and Other Restrictions Relating to Closing Agents. Notwithstanding that a particular Transaction request will not exceed the Aggregate Transaction Limit or applicable Type Sublimit, if the
payment of the Purchase Price for such Transaction to the related Closing Agent will violate Buyer’s applicable policies and procedures (as contained in the Handbook or otherwise) regarding payments to Closing Agents, Buyer may refuse to pay
the Purchase Price to such Closing Agent. 

  

	 	(d)	 Return of Purchase Price. If a Wet Mortgage Loan subject to a Transaction is not closed within forty-eight (48) hours following the
payment of the Purchase Price, Seller shall immediately return, or cause to be immediately returned, the Purchase Price to Buyer. If the Purchase Price was paid by cashiers check or funding draft, Seller shall immediately void, or cause to be
immediately voided (i.e. direct the Closing Agent to immediately void) the cashiers check or funding draft, as applicable. Further, Seller shall pay Buyer all fees 



  
 7 









	 	
and any price differential thereon immediately upon notification from Buyer; provided, however, that price differential shall continue to accrue until the Purchase Price is returned to Buyer or
the voided cashiers check is received and cancelled by Buyer, as applicable. If a cashier’s check has been issued with respect to any Transaction, Buyer shall not be obligated to wire funds or issue another cashiers check to fund such
Transaction until the original voided cashiers check has been received and cancelled by Buyer. 

  

	3.7	Approved Payees. 

  

	 	(a)	Closing Agents. In order for a Closing Agent to be designated an Approved Payee with respect to any Purchase Price, Seller shall submit to Buyer the following documents: 


 

	 	(i)	if the title company issuing the title policy that covers the applicable Purchased Mortgage Loan has not issued to Buyer a blanket Closing Protection Letter, which covers closings conducted by this Closing Agent in the
jurisdiction where this closing will take place: 

  

	 	(1)	a valid blanket Closing Protection Letter, in a form acceptable to Buyer, issued to Seller or Buyer by the title company, which is issuing the title insurance policy that covers the related Purchased Mortgage Loan, that
covers closings conducted by the Closing Agent in the jurisdiction where this closing will take place and if applicable, an assignment to Buyer of such Closing Protection Letter, substantially in the form of Exhibit F hereto; or


  

	 	(2)	a valid Closing Protection Letter, in a form acceptable to Buyer, issued to Seller or Buyer by the title company, which is issuing the title insurance policy that covers the related Purchased Mortgage Loans, that covers
the closing of this specific Purchased Mortgage Loan and if applicable, an assignment to Buyer of such Closing Protection Letter, substantially in the form of Exhibit F hereto; or 


 

	 	(3)	if Closing Protection Letters are not available or are limited in their applicability in the jurisdiction where the closing takes place, any other documents Buyer may reasonably require, including without limitation an
assignment to Buyer of Seller’s rights under its fidelity bond and errors and omissions policy, substantially in the form of Exhibit F hereto; and 

  

	 	(ii)	evidence that the Irrevocable Closing Instructions, in the applicable form and signed by Seller and Buyer, have been delivered to such Closing Agent. 


 

	 	(b)	Warehouse Lenders. In order for a warehouse lender to be designated an Approved Payee with respect to any Purchase Price, Seller shall submit to Buyer a written request, including the name and address of the
warehouse lender, demonstrating a need for such designation. Notwithstanding the foregoing, Buyer reserves the right to refuse to designate any warehouse lender as an Approved Payee, or, alternatively, to require additional terms and conditions in
order for Buyer to pay a Purchase Price to the warehouse lender. 

  

	 	(c)	 Approval Process. Buyer shall review the applicable documents and notify Seller within two (2) Business Days as to whether such Closing
Agent or warehouse lender has been designated by Buyer, in its sole and good faith discretion, to be an Approved Payee with respect to such Purchase Price. Buyer may withdraw its approval of any Closing Agent or warehouse lender as an Approved Payee
if Buyer becomes aware of any facts or circumstances at any time related to such Closing Agent or warehouse lender which 



  
 8 









	 	
Buyer determines, in its sole and good faith discretion, materially and adversely affects the Closing Agent or warehouse lender or otherwise makes the Closing Agent or warehouse lender
unacceptable as an Approved Payee. 

  

	3.8	Funding Drafts. 

  

	 	(a)	Blank Funding Drafts. If Seller is approved by Buyer to receive Purchase Prices by funding draft, Buyer, at its discretion, shall provide Seller with a limited number of blank drafts. Seller shall store such
blank drafts in a secure location and employ sufficient security procedures to ensure that each funding draft issued by Seller is authorized, authentic and complete. As requested by Buyer, Seller shall submit to Buyer an accounting of all blank
drafts provided to Seller, certified by Seller’s president or chief financial officer. Seller shall notify Buyer immediately if it discovers that any blank drafts are missing or otherwise not accounted for. 


 

	 	(b)	Completion of Funding Drafts. With respect to any Purchase Price to be paid by funding draft, Seller shall not complete a funding draft until after it has submitted an Asset Data Record for the related
Transaction to Buyer that includes the number of the draft that is to be used for the Purchase Price. Seller is responsible for completing each funding draft clearly and accurately. Buyer shall not be obligated to accept any funding draft that
contains incorrect information, is illegible or is not signed by at least two (2) authorized officers of Seller. If Seller makes an error in completing a funding draft, Seller shall void the draft and return the voided draft to Buyer with its
accounting of blank drafts. Further, Seller shall notify Buyer immediately in order to confirm a new draft number with respect to the Purchase Price. Buyer shall not have an obligation to accept any funding draft if the draft number does not match
that approved by Buyer in connection with a specific Transaction. 

  

	 	(c)	Acceptance of Funding Drafts. The payment of the Purchase Price by funding draft is subject to Buyer’s acceptance of the funding draft following presentment to the payor bank. Buyer will accept a funding
draft upon confirmation of Seller’s compliance with the terms of this Agreement, including, without limitation, receipt by Buyer of the Asset Data Record prior to the date the funding draft was written, information contained on the funding
draft is consistent with that previously provided to Buyer and the payee is an Approved Payee, as applicable. If Buyer rejects a funding draft for any reason, the Purchase Price for such Transaction may be paid by a new funding draft, provided all
applicable procedures are followed, or by an alternate payment method. 

  

	 	(d)	Condition Precedent. As a condition precedent to Seller issuing a funding draft, Seller shall have delivered to Buyer: 

  

	 	(i)	a completed signature card, in form and substance satisfactory to the bank on which the funding drafts are drawn; and 

  

	 	(ii)	a certificate of Seller’s corporate secretary, dated as of the current date, as to the incumbency and authenticity of the signatures of the officers of Seller authorized to sign funding drafts and the resolutions
of the board of directors authorizing such officers to sign funding drafts on behalf of Seller. 


  
 9 








 ARTICLE 4 

REPURCHASE 
  

	4.1	Repurchase Price. 

  

	 	(a)	Payment of Repurchase Price. The Repurchase Price for each Purchased Mortgage Loan shall be payable in full and by wire transfer in accordance with Buyer’s wire instructions in Exhibit J upon the
earliest to occur of (i) the Repurchase Date of the Purchased Mortgage Loan, (ii) the occurrence of any Repurchase Acceleration Event with respect to such Transaction or (iii) the expiration or termination of this Agreement. Such
obligation to repurchase exists without regard to any prior or intervening liquidation or foreclosure with respect to any Purchased Mortgage Loan. While it is anticipated that Seller will repurchase each Purchased Mortgage Loan on its related
Repurchase Date, Seller may repurchase any Purchased Mortgage Loan hereunder on demand without any pre-payment penalty or premium. 

  

	 	(b)	Effect of Payment of Repurchase Price. On the Repurchase Date (or such other date on which the Repurchase Price is paid by Seller), termination of the related Transaction will be effected by the repurchase by
Seller or its designee of the Purchased Mortgage Loans and the simultaneous transfer of the Repurchase Price to an account of Buyer, or transfer of additional Mortgage Loan(s) (in each case as further described at Section 6.5), and all
of Buyer’s rights, title and interests therein shall then be conveyed to Seller or its designee. Seller is obligated to obtain the Mortgage Loan Documents from Custodian at Seller’s expense on the Repurchase Date. 


 

	4.2	Repurchase Acceleration Events. The occurrence of any of the following events shall be a Repurchase Acceleration Event with respect to a Transaction: 


 

	 	(a)	Buyer in its sole and good faith discretion has determined that the Purchased Mortgage Loan is a Defective Mortgage Loan; 

  

	 	(b)	thirty (30) calendar days elapse from the date the Mortgage Loan Documents relating to the Purchased Mortgage Loan were delivered to an Approved Investor and such Approved Investor has not returned the Mortgage
Loan Documents or purchased the Purchased Mortgage Loan, unless an extension is granted by Buyer, in its sole and good faith discretion; 

  

	 	(c)	ten (10) Business Days elapse from the date a Mortgage Loan Document relating to the Purchased Mortgage Loan was delivered to Seller for correction or completion, without being returned to Buyer or its designee;


  

	 	(d)	Seller fails to deliver to Buyer the related Mortgage Loan Documents within the Wet Mortgage Loans Maximum Dwell Time or any Mortgage Loan Document delivered to Buyer, upon examination by Buyer, is found not to be in
compliance with the requirements of this Agreement or the related Purchase Commitment and is not corrected within the Wet Mortgage Loans Maximum Dwell Time; 

  

	 	(e)	Regardless of whether a Purchased Mortgage Loan is a Defective Mortgage Loan, a foreclosure or similar type of proceeding is initiated with respect to the Purchased Mortgage Loan; or 


 

	 	(f)	the further sale of the Purchased Mortgage Loan by Seller. 


  
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	4.3	Reduction of Asset Value as Alternative Remedy. In Buyer’s sole and good faith discretion, in lieu of requiring full repayment of the Repurchase Price upon the occurrence of a Repurchase Acceleration
Event, Buyer may elect to reduce the Asset Value of the related Purchased Mortgage Loan (to as low as zero) and accordingly require a full or partial repayment of such Repurchase Price or the delivery of other funds or collateral, which additional
assets shall be “margin payments” or “settlement payments” as such terms are defined in Bankruptcy Code Section 741(5) and (8), respectively. 


 

	4.4	Designation as Noncompliant Mortgage Loan as Alternative Remedy. In Buyer’s sole and good faith discretion, in lieu of requiring full repayment of the Repurchase Price upon the occurrence of a
Repurchase Acceleration Event, Buyer may elect to deem the related Purchased Mortgage Loan a Noncompliant Mortgage Loan, provided that (a) after such Purchased Mortgage Loan is deemed to be a Noncompliant Mortgage Loan, the aggregate original
Asset Value of all Noncompliant Mortgage Loans does not exceed the Type Sublimit for Noncompliant Mortgage Loans; (b) the Asset Value of the Noncompliant Mortgage Loan is greater than the Repurchase Price or Seller provides additional Purchased
Assets or repays part of the Repurchase Price as provided in Section 6.3 in each case as a “margin payment” as such term is defined in Bankruptcy Code Section 741(5); and (c) Seller delivers to Buyer all documentation
relating to the Purchased Mortgage Loan reasonably requested by Buyer. 

  

	4.5	Illegality or Impracticability. Notwithstanding anything to the contrary in this Agreement, if Buyer determines in its sole and good faith discretion that any law, regulation, treaty or directive or
any change therein or in the interpretation or application thereof, or any circumstance materially and adversely affecting the London interbank market, the repurchase market for mortgage loans or mortgage-backed securities or the source or cost of
Buyer’s funds, shall make it unlawful, impractical or commercially unreasonable for Buyer to enter into or maintain Transactions as contemplated by this Agreement (a) the commitment of Buyer hereunder to enter into or to continue to
maintain Transactions shall be cancelled and (b) the Repurchase Price for each Transaction then outstanding shall be due and payable upon the earlier to occur of (i) the date required by any financial institution providing funds to Buyer,
(ii) sale of the Purchased Mortgage Loan in accordance with the terms of this Agreement, and (iii) the date as of which Buyer determines that such Transactions are unlawful or impractical. Buyer shall not be liable to Seller for any costs,
losses or damages arising from or relating from any actions taken by Buyer pursuant to this Section 4.5. 

  

	4.6	Payments Pursuant to Sale to Approved Investors. Seller shall direct each Approved Investor purchasing a Purchased Mortgage Loan to pay directly to Buyer, by wire transfer of immediately available
funds, the full purchase price, without set-off, as set forth in the applicable Purchase Commitment. In addition, Seller shall provide Buyer with a Purchase Advice relating to such payment. Seller shall not direct the Approved Investor to pay to
Buyer an amount less than the full purchase price set forth in the applicable Purchase Commitment or modify or otherwise change the wire instructions for payment of the purchase price provided to Approved Investor by Buyer. Buyer shall apply all
amounts received for the account of Seller in accordance with Section 4.7 below and credit all amounts due Seller to the Over/Under Account in accordance with Section 3.5(b)(ii) above. Buyer may reject any amount received
from an Approved Investor and not release the related Purchased Mortgage Loan if (a) Buyer does not receive a Purchase Advice in respect of any wire transfer, (b) Buyer does not receive the full purchase price, without set-off, as set
forth in the applicable Purchase Commitment or (c) the amount received is not sufficient to pay the Repurchase Price. Alternatively, in lieu of rejecting an amount received by Buyer from an Approved Investor, at Buyer’s sole option and
discretion, if the amount received from the Approved Investor does not equal or exceed the Repurchase Price, Buyer may accept the amount received from the Approved Investor and deduct the remaining amounts owed by Seller from the Over/Under Account
or demand payment of such remaining amount from Seller. If Seller receives any funds intended for Buyer, Seller shall segregate and hold such funds in trust for Buyer and immediately pay to Buyer all such amounts by wire transfer of immediately
available funds together with providing Buyer with a settlement statement for the transaction. 


  
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	4.7	Application of Payments from Seller or Approved Investors. Unless Buyer determines otherwise in its sole and good faith discretion, payments made directly by Seller or an Approved Investor to Buyer
shall be applied in the following order of priority: 

  

	 	(a)	first, in the exercise of Buyer’s rights under Section 6.3(d) or Buyer’ or its Affiliates’ rights under Section 11.8. 


 

	 	(b)	second, to all costs, expenses and fees incurred or charged by Buyer under this Agreement that are not related to a specific Transaction; 


 

	 	(c)	third, to any amounts due and owing to Buyer pursuant to Section 6.3; 

  

	 	(d)	fourth, to all costs, expenses and fees incurred or charged by Buyer under this Agreement that are related to the Transaction in connection with which the payment is made; 


 

	 	(e)	fifth, to the price differential due and owing on the Purchase Price in connection with which the payment is made; 

  

	 	(f)	sixth, to the price differentials on any Purchase Prices related to any other Transactions that are outstanding, due and owing, applied first to the Transaction with the earliest date; 


 

	 	(g)	seventh, to the amount of the Repurchase Price for the Transaction in connection with which the payment is made; and 

  

	 	(h)	eighth, to the amount of any Repurchase Prices related to any other Transactions that are outstanding, due and owing, applied first to the Transaction with the earliest date. 


Buyer and Seller intend and agree that all such payments shall be “settlement payments” as such term is defined in Bankruptcy Code
Section 741(8). After the settlement payments have been applied as set forth above, Buyer shall deposit in the Over/Under Account any amounts that remain. 
  

	4.8	Method of Payment. Except as otherwise specifically provided herein, all payments hereunder must be received by Buyer on the date when due and shall be made in United States dollars by wire transfer
of immediately available funds to such account designated by Buyer from time to time. Whenever any payment to be made hereunder shall be stated to be due on a day that is not a Business Day, the due date thereof shall be extended to the next
succeeding Business Day, and with respect to payments of the Purchase Price, the price differential thereon shall be payable at the Applicable Pricing Rate during such extension. All payments made by or on behalf of Seller with respect to any
Transaction shall be applied to Seller’s account in accordance with Section 3.5(b)(ii) and Section 4.7 above and shall be made in such amounts as may be necessary in order that all such payments after withholding for or
on account of any present or future taxes, levies, imports, duties or other similar charges of whatsoever nature imposed by any government or any political subdivision or taxing authority hereof, other than any taxes on or measured by the net income
of Buyer pursuant to the state, federal and local tax laws of the jurisdiction where Buyer’s principal office or offices or lending office or offices are located, compensate Buyer for any additional cost or reduced amount receivable of making
or maintaining Transactions as a result of such taxes, imports, duties or other charges. All payments to be made by or on behalf of Seller with respect to any Transaction shall be made without set-off, counterclaim or other defense.


  

	4.9	Notification of Payment. Seller shall provide Buyer not fewer than one (1) Business Day prior written notice if Seller or an Approved Investor intends to remit a payment to Buyer equal to or
greater than ten million ($10,000,000) dollars. 


  
 12 









	4.10	Authorization to Debit. In addition to any other authorizations to and rights of Buyer hereunder, Seller hereby expressly authorizes Buyer to debit any account maintained by Seller with any
depository institution into which any funds related to the Purchased Mortgage Loans or related Purchased Assets have been deposited, including without limitation, any operating, settlement or custodial account, for any and all amounts due Buyer
hereunder. For the avoidance of doubt, the foregoing debit rights of Buyer shall not apply to Purchased Mortgage Loans which have been repurchased by Seller pursuant to Section 6.5. 


 

	4.11	Book Account. Buyer and Seller shall maintain an account on their respective books of all Transactions entered into between Buyer and Seller and for which the Repurchase Price has not yet been paid.
As a courtesy to Seller, Buyer shall provide such information to Seller via the Internet or by telephone or facsimile, if Seller is unable to access the information via the Internet. Notwithstanding the foregoing, Seller shall be responsible for
maintaining its own book account and records of Transactions entered into with Buyer, amounts due to Buyer in connection with such Transactions and for paying such amounts when due. Failure of Buyer to provide Seller with information regarding any
Transaction shall not excuse Seller’s timely performance of all obligations under this Agreement, including, without limitation, payment obligations under this Agreement. 


 

	4.12	Full Recourse. The obligations of Seller from time to time to pay the Repurchase Price, Margin Deficit payments, settlement payments and all other amounts due under this Agreement shall be full
recourse obligations of Seller. 

 ARTICLE 5 

FEES 
  

	5.1	Payment of Fees. Seller shall pay to Buyer those fees set forth in this Agreement or the Transactions Terms Letter when they become due and owing. Without limiting the generality of the foregoing,
the initial Facility Fee shall be paid on or before the Effective Date and if this Agreement is renewed, thereafter on or before the anniversary of the Effective Date. Further, the Unused Facility Fee shall be paid quarterly in arrears, on the first
day of the months of January, April, July and October, for each preceding calendar quarter. Buyer shall be entitled to withdraw from the Over/Under Account or retain from payments made by Seller or an Approved Investor, subject to
Section 4.6, any fees permitted under this Agreement that are due and owing. If such amounts on deposit in the Over/Under Account or payments received in connection with a Transaction are not sufficient to pay Buyer all fees owed, Buyer
shall notify Seller and Seller shall pay to Buyer, within one (1) Business Day, all unpaid fees. 

 ARTICLE 6 

SECURITY; SERVICING; MARGIN ACCOUNT MAINTENANCE; CUSTODY OF 

MORTGAGE LOAN DOCUMENTS AND REPURCHASE TRANSACTIONS 
  

	6.1	Grant of Security Interest in Purchased Assets; Precautionary Grant of Security Interest in Purchased Mortgage Loans. As security for the performance of all of Seller’s obligations hereunder,
Seller hereby pledges, assigns and grants to Buyer a continuing first priority security interest in and lien upon the Purchased Assets and Buyer shall have all the rights and remedies of a “secured party” under the Uniform Commercial Code
with respect to the Purchased Assets. Further, with respect to the Purchased Mortgage Loans, although the parties intend that all Transactions hereunder be sales and purchases (other than for accounting and tax purposes) and not loans, and without
prejudice to the provisions of Section 6.6 and the expressed intent of the parties, if any Transactions are deemed to be loans, as security for the performance of all of Seller’s obligations hereunder, or if any determination is
made that the servicing rights related to the Purchased Mortgage Loans were not sold by Seller to Buyer or that the servicing rights are not an interest in a Purchased Mortgage Loan and are severable from the Purchased Mortgage Loan despite
Buyer’s and Seller’s express intent herein to treat them as included in the purchase 


  
 13 









	 	
and sale transaction, Seller hereby pledges, assigns and grants to Buyer a continuing first priority security interest in and lien upon the Purchased Mortgage Loans, including, without
limitation, the servicing rights related to the Purchased Mortgage Loans, and Buyer shall have all the rights and remedies of a “secured party” under the Uniform Commercial Code with respect to the Purchased Mortgage Loans. Possession of
any promissory notes, instruments or documents by the Custodian shall constitute possession on behalf of Buyer. At any time and from time to time, upon the written request of Buyer, and at the sole expense of Seller, Seller will promptly and duly
execute and deliver, or will promptly cause to be executed and delivered, such further instruments and documents and take such further action as Buyer may request for the purpose of obtaining or preserving the full benefits of this Agreement and of
the rights and powers herein granted, including, without limitation, the filing of any financing or continuation statements under the Uniform Commercial Code in effect in any jurisdiction with respect to the Purchased Assets, the Purchased Mortgage
Loans and the liens created hereby. Seller also hereby authorizes Buyer to file any such financing or continuation statement in a manner consistent with this Agreement to the extent permitted by applicable law. For purposes of the Uniform Commercial
Code and all other relevant purposes, this Agreement shall constitute a security agreement. 

  

	6.2	Servicing. 

  

	 	(a)	Servicing Rights Owned by Buyer: Buyer’s Right to Appoint Servicer. In recognition that each Purchased Mortgage Loan is sold by Seller to Buyer on a servicing released basis and Buyer is the owner of the
servicing rights related to each Purchased Mortgage Loan, Buyer shall have the sole right to appoint the Servicer for each Purchased Mortgage Loan. 

  

	 	(b)	Appointment of Servicer. Subject to Buyer’s right to appoint a successor Servicer at its sole discretion, Buyer hereby appoints Seller or the Servicer, as applicable, to subservice the Purchased Mortgage
Loans on behalf of Buyer as agent for Buyer for the period between the Purchase Date and the Repurchase Date of the Purchased Mortgage Loans. The right of Seller or the Servicer, as applicable, to service the Purchased Mortgage Loans is on an
interim basis only and does not provide or confer a contractual, ownership or other right for Seller or the Servicer, as applicable, to service the Purchased Mortgage Loans, it being understood that upon payment of the Purchase Price, Buyer owns the
servicing rights and may assume servicing or appoint a Successor Servicer at any time. Further, the fact that Seller or the Servicer may be entitled to a servicing fee for interim servicing of the Purchased Mortgage Loans or that Buyer may provide a
separate notice of default to Seller or the Servicer regarding the servicing of the Purchased Mortgage Loans shall not affect or otherwise change Buyer’s ownership of the servicing rights related to the Purchased Mortgage Loans.


  

	 	(c)	 Interim Servicing Period; No Servicing Fee or Income. Seller’s or the Servicer’s, as applicable, right to interim service a Purchased
Mortgage Loan shall commence on the related Purchase Date and shall automatically terminate without notice on the earlier of (i) sixty (60) days after the related Purchase Date or (ii) the actual date Seller repurchases the Purchased
Mortgage Loan. If the interim servicing period expires with respect to any Purchased Mortgage Loan for any reason other than Seller repurchasing the Mortgage Loan, then upon mutual written agreement of Buyer and Seller or the Servicer, as
applicable, Seller or the Servicer, as applicable, shall continue to interim service the Purchased Mortgage Loan for a thirty (30) day extension period. Such extension period shall automatically expire without notice unless Buyer and Seller
mutually agree in writing to one or more additional thirty (30) day extension period(s), provided, however, that absent mutual written agreement to extend, or continue to extend, the interim servicing period, Seller or the Servicer, as
applicable, shall transfer servicing of the Mortgage Loan to Buyer or its designee in accordance with the instructions of Buyer and any other applicable requirements of this Agreement. For the avoidance of doubt, upon expiration of the interim
servicing period (including the expiration of any extension period) with 



  
 14 









	 	
respect to any Purchased Mortgage Loan, Seller shall have no right to service the related Purchased Mortgage Loan nor shall Buyer have any obligation to extend the interim servicing period (or
continue to extend the interim servicing period), it being understood that upon such expiration, Seller shall promptly transfer the servicing of the related Purchased Mortgage Loan to Buyer or its designee in accordance with the instructions of
Buyer and any other applicable requirements of this Agreement. Buyer shall have no obligation to pay Seller or the Servicer, as applicable, nor shall Seller or the Servicer, as applicable, has any right to deduct or retain, any servicing fee or
similar compensation in connection with the interim servicing of a Purchased Mortgage Loan. 

  

	(d)	Servicing Agreement. If there is a Servicer of the Purchased Mortgage Loans, Seller shall enter into a Servicing Agreement with the Servicer on behalf of Buyer, which such Servicing Agreement shall be on terms
agreed to by Buyer, and which shall include, at a minimum, (i) a recognition by the Servicer of Buyer’s interests and rights to the Purchased Mortgage Loans as provided under this Agreement, including, without limitation, Buyer’s
ownership of the servicing rights related to the Purchased Mortgage Loans; (ii) an obligation for the Servicer to subservice the Purchased Mortgage Loans consistent with the degree of skill and care that the Servicer customarily requires with
respect to similar Mortgage Loans owned or managed by it but in no event no less than in accordance with Accepted Servicing Practices; (iii) an obligation to comply with all applicable federal, state and local laws and regulations; (iv) an
obligation to maintain all state and federal licenses necessary for it to perform its subservicing responsibilities; (v) an obligation not to impair the rights of Buyer in any Purchased Mortgage Loans or any payment thereto and (vi) an
obligation to collect all sums payable in respect of the Purchased Mortgage Loans on behalf of Buyer, in trust, in segregated custodial accounts. Further, such Servicing Agreement shall contain express reporting requirements and other rights to
allow Buyer to inspect the records of the Servicer with respect to the Purchased Mortgage Loans. Buyer may terminate the subservicing of any Purchased Mortgage Loan with the then existing Servicer in accordance with either Section 6.2(f)
or Section 6.2(m). 

  

	(e)	Servicing Obligations of Seller. To the extent Seller shall subservice any Purchased Mortgage Loan on behalf of Buyer, Seller shall: 


 

	 	(i)	Subservice and administer the Purchased Mortgage Loans on behalf of Buyer in accordance with prudent mortgage loan servicing standards and procedures generally accepted in the mortgage banking industry and in accordance
with the degree of care and servicing standards generally prevailing in the industry, including all applicable requirements of any Agency, and the requirements of any applicable Purchase Commitment and the Approved Investor, so that the eligibility
of the Purchased Mortgage Loan for purchase under such Purchase Commitment is not voided or reduced by such servicing and administration; 

  

	 	(ii)	Subject to Subsection 6.2(f), and to the extent not otherwise held by the Custodian, Seller shall at all times maintain and safeguard the Mortgage Loan File for the Purchased Mortgage Loan, and in any event shall
maintain and safeguard photocopies of the documents delivered to Buyer pursuant to Section 3.3, and accurate and complete records of its servicing of the Purchased Mortgage Loan; Seller’s possession of such Mortgage Loan File is for
the sole purpose of subservicing such Purchased Mortgage Loan and such retention and possession by Seller is in a custodial capacity only; 

  

	 	(iii)	Buyer may, at any time during Seller’s business hours on reasonable notice, examine and make copies of such documents and records, or require delivery of the originals of such documents and records to Buyer or its
designee; 


  
 15 









	 	(iv)	At Buyer’s request, Seller shall promptly deliver to Buyer reports regarding the status of any Purchased Mortgage Loan being subserviced by it, which reports shall include, but shall not be limited to, a
description of any default thereunder for more than thirty (30) days or such other circumstances that could cause a Material Adverse Change on such Purchased Mortgage Loan, Buyer’s title to such Purchased Mortgage Loan or the collateral
securing such Purchased Mortgage Loan; Seller is required to deliver such reports until the repurchase of the Purchased Mortgage Loan by Seller; and 

  

	 	(v)	Seller shall immediately notify Buyer if Seller becomes aware of any payment default that occurs under a Purchased Mortgage Loan. 

  

	 	(f)	Sale or Transfer of Servicing Rights by Buyer. Buyer may sell or transfer any rights to service a Purchased Mortgage Loan without the prior written consent of Seller or any Servicer. 


 

	 	(g)	Release of Mortgage Loan Files. Seller shall release its custody of the contents of any Mortgage Loan File only in accordance with the written instructions of Buyer, except when such release is required as
incidental to Seller’s subservicing of the Purchased Mortgage Loan, is required to complete the Purchase Commitment, or as required by law. 

  

	 	(h)	Right to Appoint Successor Servicer. Buyer reserves the right, in its sole discretion, to appoint a successor servicer to subservice any Purchased Mortgage Loan (each a “Successor Servicer”).
In the event of such an appointment, Seller or the Servicer, as applicable, shall perform all acts and take all action so that any part of the Mortgage Loan File and related servicing records held by Seller or the Servicer, together with all
funds in the Custodial Account and other receipts relating to such Purchased Mortgage Loan, are promptly delivered to the Successor Servicer. Seller shall have no claim for servicing Fees, lost profits or other damages if Buyer appoints a Successor
Servicer hereunder. 

  

	 	(i)	Custodial Account. 

  

	 	(i)	Seller shall establish and maintain a segregated time or demand deposit account for the benefit of Buyer (each, a “Custodial Account”) with an Eligible Bank and shall promptly deposit into the
Custodial Account all interest and/or principal payments received with respect to each Purchased Mortgage Loan sold hereunder (but not any interest accrued on such Mortgage Loan up to but not including the Purchase Date for such Purchased Mortgage
Loan), and all other receipts in respect of each Purchased Mortgage Loan sold hereunder that are payable for the benefit of the owner of such loan (including, without limitation, all escrow withholds and escrow payments for Property Charges). Seller
may not use a deposit account at an Eligible Bank established to serve as a custodial account for mortgage loans that Seller services for other parties. Under no circumstances shall Seller deposit any of its own funds into a Custodial Account or
otherwise commingle its own funds with funds belonging to Buyer as owner of any Purchased Mortgage Loan. If Seller fails to segregate any funds and commingles them with any source in breach of this Agreement, Seller agrees that its share of the
commingled funds are assumed to have been spent first with any remaining balance to be deemed to belong to Buyer. 

  

	 	(ii)	 Seller hereby grants to Buyer a continuing first-priority security interest in all right, title, and interest in and to the Custodial Account. Seller
shall, upon Buyer’s request, take such steps requested by Buyer to perfect Buyer’s security interest in the Custodial Account, and either (A) cause the Eligible Bank to agree to comply at any time with instructions from Buyer to such
Eligible Bank directing 



  
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the disposition of funds from time to time credited to such Custodial Account, without further consent of Seller or any other Person, pursuant to an agreement in form and substance satisfactory
to Buyer or (B) arrange for Buyer to become the customer of the Eligible Bank with respect to the Custodial Account, with Seller being permitted, only with the consent of Buyer, to exercise rights to withdraw funds from such Custodial Account
(together, the “Control Agreement”). 

  

	 	(iii)	Any interest and/or principal payments, and other amounts received with respect to a Purchased Mortgage Loan purchased hereunder (but not any interest accrued on such Purchased Mortgage Loan up to but not including the
Purchase Date for such Purchased Mortgage Loan), shall be segregated as described above and held in trust for the exclusive benefit of Buyer as the owner of such Purchased Mortgage Loan and shall be released only as follows: 


 

	 	(1)	after the Repurchase Price for such Mortgage Loan has been paid in full to Buyer, all amounts previously deposited in the Custodial Account with respect to such Purchased Mortgage Loan and then in the Custodial Account
shall be released by Buyer to Seller or transferred to the Approved Investor or its designee if authorized by Seller; 

  

	 	(2)	if a Successor Servicer is appointed by Buyer, all amounts deposited in the Custodial Account with respect to Purchased Mortgage Loans to be so subserviced shall be transferred into an account established by the
Successor Servicer pursuant to its agreement with Buyer; and 

  

	 	(3)	upon the occurrence of an Event of Default hereunder, Seller shall forever remit all funds then held in the Custodial Account with respect to Purchased Mortgage Loans to or at the direction of Buyer. 


 

	 	(j)	Location of Custodial Account. Seller shall not change the identity or location of a Custodial Account without thirty (30) days prior notice to Buyer. Seller shall from time to time, at its own cost and
expense, execute such directions to the depository Eligible Bank, and other papers, documents or instruments as may be reasonably requested by Buyer to reflect Buyer’s ownership interest in each Custodial Account. 


 

	 	(k)	Accounting of Custodial Account. If Buyer so requests, Seller shall promptly notify Buyer of each deposit in the Custodial Account, and each withdrawal from the Custodial Account, made by it with respect to the
Purchased Mortgage Loans. Seller shall promptly deliver to Buyer photocopies of all periodic bank statements and other records relating to the Custodial Account as Buyer may from time to time request. 


 

	 	(l)	Servicer Notice. Seller shall provide promptly to Buyer (i) a Servicer Notice addressed to and agreed to by the Servicer, advising the Servicer of such matters as Buyer may reasonably request, including,
without limitation, recognition by the Servicer of Buyer’s interest in such Purchased Mortgage Loans and ownership of the servicing rights related thereto and the Servicer’s agreement that upon receipt of notice of an Event of Default from
Buyer, it will follow the instructions of Buyer with respect to the subservicing of the Purchased Mortgage Loans. 

  

	 	(m)	Notification of Servicer Defaults. If Seller should discover that, for any reason whatsoever, any entity responsible to Seller by contract for managing or servicing any such Purchased Mortgage Loan has failed to
perform fully Seller’s obligations under this Agreement or any of the obligations of such entities with respect to the Purchased Mortgage Loans, Seller shall promptly notify Buyer. 


  
 17 









	 	(n)	Termination. Buyer shall have the right at any time and for any reason to immediately terminate the Seller’s or the Servicer’s right, as applicable, to subservice the Purchased Mortgage Loans without
payment of any penalty or termination fee. Seller shall cooperate, or cause the Servicer to cooperate, in transferring the servicing of the Purchased Mortgage Loans to a successor subservicer appointed by Buyer in its sole and good faith discretion.


  

	 	(o)	Buyer’s Right to Service. Buyer or its designee, at the Buyer’s sole discretion, shall be entitled to service some or all of the Purchased Mortgage Loans, including, without limitation, receiving and
collecting all sums payable in respect of same. Upon Buyer’s determination and written notice to Seller or the Servicer, as applicable, that Buyer desires to service some or all of the Purchased Mortgage Loans, Seller shall promptly cooperate,
or shall cause the Servicer to promptly cooperate, with all instructions of Buyer and do or accomplish all acts or things necessary to effect the transfer of the servicing to Buyer or its designee, at Seller’s sole expense. Upon Buyer’s or
its designee’s servicing of the Purchased Mortgage Loans, (i) Buyer may, in its own name or in the name of Seller or otherwise, demand, sue for, collect or receive any money or property at any time payable or receivable on account of or in
exchange for the Purchased Mortgage Loan(s), but shall be under no obligation to do so; (ii) Seller shall, if Buyer so requests, pay to Buyer all amounts received by Seller upon or in respect of the Purchased Mortgage Loan(s) or other Purchased
Assets, advising Buyer as to the source of such funds; and (iii) all amounts so received and collected by Buyer shall be held by it as part of the Purchased Assets or applied against any outstanding Repurchase Price owed Buyer.


  

	6.3	Margin Account Maintenance. 

  

	 	(a)	Asset Value. Buyer shall have the right to determine the Asset Value of each Purchased Mortgage Loan on a daily basis. 

  

	 	(b)	Margin Deficit and Margin Call. If Buyer shall determine at any time that (A) the Asset Value of a Purchased Mortgage Loan subject to a Transaction is less than the related Repurchase Price or (B) the
aggregate Asset Value of all Purchased Mortgage Loans for all such Transactions is less than the aggregate Repurchase Price (in either case, a “Margin Deficit”), then Buyer may, at its sole option and by notice to
Seller (as such notice is more particularly set forth below, a “Margin Call”), require Seller to either: 

  

	 	(i)	transfer to Buyer or its designee cash or eligible Mortgage Loans approved by Buyer in its sole and good faith discretion (“Additional Purchased Mortgage Loans”) so that the individual
Asset Value of the Purchased Mortgage Loan or the aggregate Asset Value of the Purchased Mortgage Loans, including any such cash or Additional Purchased Mortgage Loans, will thereupon equal or exceed the individual Repurchase Price for the
Transaction or the aggregate Repurchase Price for all Transactions; or 

  

	 	(ii)	pay one or more Repurchase Prices in an amount sufficient to reduce the outstanding Repurchase Prices in an amount equal to or below the Asset Value of the Purchased Mortgage Loan(s). 


If Buyer delivers a Margin Call to Seller on or prior to 9:30 a.m. (Pacific time) on any Business Day, then Seller shall transfer cash or
Additional Purchased Mortgage Loans to Buyer no later than 5:00 p.m. (Pacific time) that same day. If Buyer delivers a Margin Call to Seller after 9:30 a.m. (Pacific time) on any Business Day, Seller shall be required to transfer cash or Additional
Purchased Mortgage Loans no later than 5:00 p.m. (Pacific time) on the next subsequent Business Day. Notice of a Margin Call may be provided by Buyer to Seller electronically or in writing, such as via electronic mail or posting such notice on
Buyer’s customer website(s). 

  
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	 	(c)	Buyer’s Discretion. Buyer’s election not to make a Margin Call at any time there is a Margin Deficit shall not in any way limit or impair its right to make a Margin Call at any time a Margin Deficit
exists. 

  

	 	(d)	Over/Under Account. Buyer may, in its sole and good faith discretion, withdraw from the Over/Under Account amounts equal to any Margin Deficit which is not otherwise satisfied by Seller within the time frames
provided in this Section 6.3. 

  

	 	(e)	Credit to Repurchase Price. Any cash transferred to Buyer pursuant to this Section 6.3 shall be credited to the Repurchase Price of the related Transaction(s). 


 

	6.4	Custody of Mortgage Loan Documents. 

  

	 	(a)	Custodial Arrangements. Buyer may appoint any Person to act as the Custodian to hold possession of the Mortgage Loan Documents (or a portion thereof) and to take actions at the direction of Buyer. Seller hereby
consents to any and all such appointments and agrees to deliver the Mortgage Loan Documents to the Custodian upon the direction of Buyer. Seller further agrees that (i) the Custodian shall be exclusively the agent, bailee and/or custodian of
Buyer; (ii) receipt of the Mortgage Loan Documents by the Custodian shall be constructive receipt by Buyer of the Mortgage Loan Documents; (iii) Seller shall not have and shall not attempt to exercise any degree of control over the
Custodian or any Mortgage Loan Document held by the Custodian; and (iv) Buyer shall not be liable for any act or omission by the Custodian selected by Buyer with reasonable care. 


 

	 	(b)	Temporary Withdrawal of Mortgage Loan Documents for Correction. Buyer may, in its sole and good faith discretion, permit Seller to withdraw, for a period not to exceed ten (10) Business Days, specified Mortgage
Loan Documents for the purpose of correcting or completing such documents; provided, however, that unless otherwise agreed to by Buyer in writing, in no event shall the outstanding balance of the Transactions related to such Mortgage Loan Documents
exceed five percent (5%) of the Aggregate Transaction Limit. Notwithstanding the foregoing, Buyer shall be deemed to be in possession of any Mortgage Loan Documents released pursuant to this Section 6.4(b), and the interest of Buyer
in the related Purchased Mortgage Loan shall continued unimpaired until the Mortgage Loan Documents are returned to, or the proceeds thereof are received by, Buyer. 


 

	 	(c)	Delivery of Mortgage Loan Documents to Approved Investors. Provided that no Potential Default or Event of Default has occurred and is continuing, upon the written request of Seller, Buyer may, at its option and
in its sole and good faith discretion, deliver to an Approved Investor set forth in the related Purchase Commitment, or its custodian, the Mortgage Loan Documents relating to a specified Purchased Mortgage Loan. All such Purchased Mortgage Loans and
the related Mortgage Loan Documents shall at all times be covered by one or more Bailee Agreements, and Buyer or its designee will not release Mortgage Loan Documents to an Approved Investor unless Buyer or its Custodian has received a signed Bailee
Agreement from the Approved Investor. Notwithstanding the foregoing, Buyer shall be deemed to be in possession of any Mortgage Loan Documents released pursuant to this Section 6.4(c), and the interest of Buyer in the related Purchased
Mortgage Loan shall continue unimpaired until the Mortgage Loan Documents are returned to, or proceeds thereof are received by, Buyer. If the Approved Investor does not purchase a Purchased Mortgage Loan as contemplated by the related Purchase
Commitment, Seller shall, upon the request of Buyer, assist Buyer in the recovery of any Mortgage Loan Documents not returned by the Approved Investor to Buyer. 


  
 19 









	 	(d)	Delivery of Mortgage Loan Documents Relating to Mortgage-Backed Securities. Upon the written request of Seller, Buyer may, at its option and in its sole and good faith discretion, deliver to the certifying
custodian the Mortgage Loan Documents relating to those Purchased Mortgage Loans that will be pooled to support a Mortgage-Backed Security. All such Purchased Mortgage Loans and the related Mortgage Loan Documents shall at all times be covered by a
Bailee Agreement, and Buyer or its designee will not release Mortgage Loan Documents to a certifying custodian unless Buyer or its designee has received a signed tri-party custodial agreement from such custodian, in a form acceptable to Buyer. Buyer
shall have no obligation to release any Mortgage Loan Documents to any certifying custodian that will not sign a custodial agreement acceptable to Buyer. Notwithstanding the foregoing, Buyer shall be deemed to be in possession of any Mortgage Loan
Documents released pursuant to this Section 6.4(d), and the interest of Buyer in the related Purchased Mortgage Loan shall continue unimpaired until the Mortgage Loan Documents are returned to, or proceeds thereof are received by, Buyer.
Seller shall pay for all costs of the certifying custodian and use its best efforts to ensure that the issuer delivers the Mortgage-Backed Securities to the certifying custodian. 


 

	6.5	Release of Mortgage Loan Documents. Provided that no Event of Default or Potential Default has occurred and is continuing, Seller may repurchase a Purchased Mortgage Loan by either: 


 

	 	(a)	paying, or causing an Approved Investor to pay, to Buyer, subject to Sections 4.6 and 4.7 above, the Repurchase Price; or 

  

	 	(b)	transferring to Buyer additional Mortgage Loan(s) satisfactory to Buyer and/or cash, in aggregate amounts sufficient to cover the amount by which the aggregate amount of Transactions then outstanding hereunder (plus
accrued interest and accrued fees with respect thereto) exceeds the Asset Value of the existing Purchased Mortgage Loan(s), excluding the Purchased Mortgage Loan(s) to be released. 


Upon receipt of the applicable amount, as set forth above, Buyer shall deliver or shall cause the Custodian to deliver the related Mortgage
Loan Documents to Seller or Seller’s designee, if such documents have not already been delivered pursuant to a Bailee Agreement. If such release gives rise to or perpetuates a Margin Deficit, Buyer shall notify Seller of the amount thereof and
Seller shall thereupon satisfy the Margin Call in the manner specified in Section 6.3(b). Buyer shall have no obligation to release a repurchased Purchased Mortgage Loan or terminate its security interest in such Purchased Mortgage Loan
until such Margin Call is satisfied. 
  

	6.6	True Sales; Repurchase Transactions. For the avoidance of doubt, Buyer and Seller confirm that the Transactions contemplated by this Agreement are intended to be true sales and absolute assignments of the
Purchased Mortgage Loans by Seller to Buyer, and not borrowings secured by the Purchased Mortgage Loans. Title to all Purchased Mortgage Loans and related Purchased Assets shall pass to Buyer upon payment of the Purchase Price. Accordingly,
beginning on the Purchase Date and prior to the Repurchase Date, Buyer may in its sole discretion and without notice to Seller engage in repurchase transactions with respect to any or all of the Purchased Mortgage Loans or otherwise pledge,
hypothecate, assign, transfer or convey any or all of the Purchased Mortgage Loans (such transactions, “Repurchase Transactions”), provided, however, that to the extent Buyer engages in any Repurchase Transactions, it
shall have reacquired title to the Purchased Mortgage Loans prior to the Repurchase Date. Seller shall not be responsible for any additional obligations, costs or fees in connection with such Repurchase Transactions. Seller shall not take any action
inconsistent with Buyer’s ownership of a Purchased Mortgage Loan and shall not claim any legal, beneficial or other interest in such a Purchased Mortgage Loan other than the limited right and obligations to provide servicing of such Purchased
Mortgage Loans where Buyer designates Seller as servicer as provided in Section 6.2. 


  
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 ARTICLE 7 

CONDITIONS PRECEDENT 
  

	7.1	Initial Transaction. As conditions precedent to Buyer considering whether to enter into the initial Transaction hereunder: 


 

	 	(a)	Seller shall have delivered to Buyer, in form and substance satisfactory to Buyer: 

  

	 	(i)	this Agreement signed by Seller; 

  

	 	(ii)	the Transactions Terms Letter signed by Seller; 

  

	 	(iii)	an Electronic Tracking Agreement signed by Seller; 

  

	 	(iv)	if required in the Transactions Terms Letter, a Guarantee(s) signed by each Guarantor(s); 

  

	 	(v)	a Power of Attorney signed by Seller; 

  

	 	(vi)	a certified copy of Seller’s articles or certificate of incorporation and bylaws (or corresponding organizational documents if Seller is not a corporation) and, if required by Buyer, a certificate of good standing
issued by the appropriate official in Seller’s jurisdiction of organization, dated no less recently than one (1) month prior to the date hereof; 

  

	 	(vii)	a certificate of Seller’s corporate secretary, substantially in the form of Exhibit C hereto, dated as of the Effective Date, as to the incumbency and authenticity of the signatures of the officers of Seller
executing the Principal Agreements and the resolutions of the board of directors of Seller (or its equivalent governing body or Person), substantially in the form of Exhibit D hereto; 


 

	 	(viii)	independently audited financial statements of Seller (and its Subsidiaries, on a consolidated basis) for each of the two (2) fiscal years most recently ended (if available), containing a balance sheet and related
statements of income, stockholders’ equity and cash flows, all prepared in accordance with GAAP, applied on a basis consistent with prior periods, and otherwise acceptable to Buyer, together with an auditor’s opinion that is unqualified or
otherwise is consented to in writing by Buyer; 

  

	 	(ix)	if more than six (6) months has passed since the close of the most recently ended fiscal year, interim financial statements of Seller covering the period from the first day of the current fiscal year to the last
day of the most recently ended month; 

  

	 	(x)	financial statements of each of the Guarantors, if any, signed by them, dated no less recently than three (3) months prior to the date of the initial Transaction; 


 

	 	(xi)	copies of Seller’s errors and omissions insurance policy or mortgage impairment insurance policy and blanket bond coverage policy or certificates of insurance for such policies, all in form and content satisfactory
to Buyer, showing compliance by Seller with Section 9.9 below; 

  

	 	(xii)	if required by Buyer, a subordination agreement, in form and substance satisfactory to Buyer, executed by any Person which is, as of the Effective Date, a creditor of Seller, including each Guarantor and each Affiliate
of Seller that is a creditor of Seller; 


  
 21 









	 	(xiii)	an Acknowledgement of Confidentiality of Password Agreement; 

  

	 	(xiv)	the initial Facility Fee, if applicable; 

  

	 	(xv)	a Servicer Notice, if applicable; 

  

	 	(xvi)	if so requested by Buyer, the Control Agreement in a form reasonably satisfactory to Buyer; 

  

	 	(xvii)	if required, a Servicing Agreement signed by the Servicer and Seller; 

  

	 	(xviii)	a copy of Seller’s underwriting guidelines for Mortgage Loans, as amended from time to time; and 

  

	 	(xix)	such other documents as Buyer or its counsel may reasonably request. 

  

	 	(b)	Buyer shall have determined that it has received satisfactory evidence that the appropriate Uniform Commercial Code Financial Statements (UCC-1) and/or such other instruments as may be necessary in order to create in
favor of Buyer, a perfected first-priority security interest in the Purchased Mortgage Loans and related Purchased Assets should any of the Transactions be deemed to be loans, and same shall have been duly executed and appropriately filed or
recorded in each office of each jurisdiction in which such filings and recordations are required to perfect such first-priority security interest. 

  

	 	(c)	Buyer shall have determined that it has satisfactorily completed its due diligence review of Seller’s operations, business, financial condition and underwriting and origination of Mortgage Loans. 


 

	7.2	All Transactions. As conditions precedent to Buyer considering whether to enter into any Transaction hereunder, including the initial Transaction: 


 

	 	(a)	Seller shall have delivered to Buyer, in form and substance satisfactory to Buyer and not later than the Transaction Request Deadline: 


 

	 	(i)	an Asset Data Record for the Purchased Mortgage Loan, which Asset Data Record may be an individual record or part of a group report and shall be authenticated by Seller with the PIN or the handwritten signature of an
authorized officer of Seller; 

  

	 	(ii)	the Mortgage Loan Documents relating to the Purchased Mortgage Loan, unless such Purchased Mortgage Loan is a Wet Mortgage Loan; 

  

	 	(iii)	a copy of a Purchase Commitment for the related Purchased Mortgage Loan, unless the Transactions Terms Letter states otherwise; 

  

	 	(iv)	written evidence that all Transaction Requirements have been satisfied; and 

  

	 	(v)	such other documents pertaining to the Transaction as Buyer may reasonably request, from time to time. 

  

	 	(b)	an amount equal to the Haircut plus the minimum required balance, as set forth in Section 3.5(a), shall be on deposit in the Over/Under Account; 


 

	 	(c)	Seller shall have paid all Facility Fees and Unused Facility Fees that are due; 


  
 22 









	 	(d)	Seller shall have designated an Approved Payee, if applicable, to whom such funds shall be delivered; 

  

	 	(e)	the representations and warranties of Seller set forth in Article 8 hereof shall be true and correct in all material respects as if made on and as of the date of each Transaction. At the request of Buyer, Buyer
shall have received an officer’s certificate signed by a responsible officer of Seller certifying as to the truth and accuracy of same; 

  

	 	(f)	if required by Buyer, Seller and each Guarantor shall have performed all agreements to be performed by them hereunder and under the Guarantee, respectively, and after giving effect to the requested Transaction, there
shall exist no Event of Default or Potential Default hereunder; 

  

	 	(g)	no Potential Default, Event of Default or a Material and Adverse Change shall have occurred and be continuing; and 

  

	 	(h)	Seller shall have deposited all amounts required under Section 6.2(i) into the Custodial Account. 


For the avoidance of doubt, notwithstanding that foregoing conditions may be satisfied with respect to any Transaction request, Buyer shall be
under no obligation to enter into any Transaction and whether the Buyer enters into any Transaction shall be at the sole and good faith discretion of Buyer. 
  

	7.3	lntercreditor Agreements. If required by Buyer, within sixty (60) calendar days following the Effective Date, Seller shall deliver to Buyer an lntercreditor Agreement signed by each creditor that
provides warehouse lines of credit, repurchase facilities or similar mortgage finance arrangements to Seller. By way of example but not limitation, if Seller has a mortgage financing agreement with a syndication of creditors or if an Affiliate of
Seller is providing Seller a warehouse line of credit or mortgage financing, Buyer may require that such creditors execute an lntercreditor Agreement. If Seller fails to provide Buyer with any required lntercreditor Agreement within the time frame
stated herein, Buyer may, in its sole and good faith discretion, determine that such failure adversely affects the creditworthiness of Seller and may modify the terms and conditions under which it will continue to enter into Transactions with
Seller. Buyer shall not be liable to Seller for any costs, losses or damages arising from or relating to any changes made by Buyer to the terms and conditions under which it will continue to enter into Transactions with Seller. 


 

	7.4	Satisfaction of Conditions. The entering into of any Transaction prior to or without the fulfillment by Seller of all the conditions precedent thereto, whether or not known to Buyer, shall not constitute a
waiver by Buyer of the requirements that all conditions, including the non-performed conditions, shall be required to be satisfied with respect to all Transactions. All conditions precedent hereunder are imposed solely and exclusively for the
benefit of Buyer and may be freely waived or modified in whole or in part by Buyer. Any waiver or modification asserted by Seller to have been agreed by Buyer must be in writing. Buyer shall not be liable to Seller for any costs, losses or damages
arising from Buyer’s determination that Seller has not satisfactorily complied with any applicable condition precedent. 


  
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 ARTICLE 8 

REPRESENTATIONS AND WARRANTIES 
  

	8.1	Representations and Warranties Concerning Seller. Seller represents and warrants to and covenants with Buyer that the representations and warranties on Exhibit L hereto are true and correct as of
the Effective Date through and until the date on which all obligations of Seller under this Agreement are fully satisfied. 

  

	8.2	Representations and Warranties Concerning Purchased Assets. Seller represents and warrants to and covenants with Buyer that the representations and warranties contained on Exhibit L hereto are true
and correct with respect to each Purchased Mortgage Loan as of the related Purchase Date through and until the date on which such Purchased Mortgage Loan is repurchased by Seller. 


 

	8.3	Continuing Representations and Warranties. By submitting an Asset Data Record hereunder, Seller shall be deemed to have represented and warranted the truthfulness and completeness of the representations
and warranties set forth in Exhibit L hereto. 

  

	8.4	Amendment of Representations and Warranties. From time to time as determined necessary by Buyer, Buyer may amend the representations and warranties set forth in Exhibit L hereto. Any such amendment shall
not apply to Transactions entered into prior to the effective date of the amendment and in no event shall the amendment apply to any Transaction on a retroactive basis. 


ARTICLE 9 
 AFFIRMATIVE COVENANTS

 Seller hereby covenants and agrees with Buyer that during the term of this Agreement and for so long as there remain any obligations of Seller to be paid
or performed under the Principal Agreements: 
  

	9.1	Financial Statements and Other Reports. 

  

	 	(a)	Interim Statements. Seller shall deliver to Buyer financial statements of Seller, including statements of income and changes in shareholders’ equity for the period from the beginning of such fiscal year to
the end of such month or quarter, within the time frame required in the Transactions Terms Letter, and the related balance sheet as of the end of such month or quarter, within the time frame required in the Transactions Terms Letter, all in
reasonable detail and certified by the chief financial officer of Seller, subject, however, to year-end audit adjustments; 

  

	 	(b)	Annual Statements. Seller shall deliver to Buyer, within the time frame required in the Transactions Terms Letter, audited financial statements of Seller, including statements of income and changes in
shareholders’ equity for such fiscal year and the related balance sheet as at the end of such fiscal year, all in reasonable detail and accompanied by an opinion of a certified public accounting firm reasonably satisfactory to Buyer including a
management representation letter signed by the chief financial officer of Seller stating that the financial statements fairly present the financial condition and results of operations of Seller as of the end of, and for, such year;


  

	 	(c)	Officer’s Certificate. Together with the financial statements required to be delivered pursuant to Sections 9.1(a) and (b), Seller shall deliver to Buyer an officer’s certificate
substantially in a form to be provided by Buyer; 

  

	 	(d)	Annual Statements of Guarantor. If required by Buyer, Seller shall deliver to Buyer updated financial statements of each Guarantor, signed by each of them, within the time frame required in the Transactions Terms
Letter, and, if no time frame is specified, within ninety (90) days following the end of each calendar year; 


  
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	 	(e)	Hedging Reports. Seller shall deliver to Buyer, or cause to be delivered to Buyer, not later than 10:00 a.m. (Pacific time) on each Monday, or Tuesday if Monday is not a Business Day, or as reasonably requested
by Buyer, a reconciliation report, in a form reasonably satisfactory to Buyer, including, without limitation, a report of all outstanding Transactions and their related Purchase Commitments, availability under unused Purchase Commitments and all
amounts outstanding and available under other warehouse lines of credit, repurchase agreements and similar credit facilities. To the extent Seller retains any Person(s) to perform hedging services on behalf of Seller, Seller hereby grants Buyer
authority to contact, request and receive hedging reports directly from such Person(s) at no cost to Buyer. Further, Seller shall instruct such Person(s), upon reasonable notice from Buyer and during normal business hours, to answer candidly and
fully, at no cost to Buyer, any and all questions that Buyer may address to them in reference to the hedging reports of Seller. Seller may have its representatives in attendance at any meetings between Buyer and such Person(s) held in accordance
with this authorization; and 

  

	 	(f)	Reports and Information Regarding Purchased Mortgage Loans. Seller shall deliver to Buyer, with reasonable promptness, copies of any reports related to the Purchased Mortgage Loans and any other information in
Seller’s possession related to the Purchased Mortgage Loans as Buyer, in its sole and good faith discretion, may request. 

  

	 	(g)	Other Reports. As may be reasonably requested by Buyer from time to time, Seller shall deliver to Buyer, within thirty (30) days of filing or receipt (i) copies of all regular or periodic financial or
other reports, if any, that Seller files with any governmental, regulatory or other agency and (ii) copies of all audits, examinations and reports concerning the operations of Seller from any Approved Investor, Insurer or licensing authority.
Seller shall also deliver to Buyer, with reasonable promptness, such further information reasonably related to the business, operations, properties or financial condition of Seller, in such detail and at such times as Buyer, in its sole and good
faith discretion, may request. Seller understands and agrees that all reports and information provided to Buyer by or relating to Seller may be disclosed to Buyer’s Affiliates. 


 

	9.2	Inspection of Properties and Books. As required by applicable law and prudent mortgage banking practices, Seller shall keep accurate and complete records of the Purchased Mortgage Loans. At no cost to
Buyer, Seller shall permit authorized representatives of Buyer to discuss the business, operations, assets and financial condition of Seller with its officers and employees and to examine its books of account and make copies and/or extracts thereof,
upon reasonable notice to Seller at Seller’s place of business during normal business hours. Further, Seller will provide its accountants with a copy of this Agreement promptly after the execution hereof and will instruct its accountants to
answer candidly and fully, at no cost to Buyer, any and all questions that any authorized representative of Buyer may address to them in reference to the financial condition or affairs of Seller. Seller may have its representatives in attendance at
any meetings between the officers or other representatives of Buyer and Seller’s accountants held in accordance with this authorization. 

  

	9.3	Notice. Seller shall give Buyer prompt written notice, in reasonable detail, of: 

  

	 	(a)	any and all material changes to the information set forth in the Application; 

  

	 	(b)	any action, suit or proceeding instituted by or against Seller in any federal or state court or before any commission or other regulatory body (federal, state or local, foreign or domestic), or any such action, suit or
proceeding threatened against Seller, in any case, if such action, suit or proceeding, or any such action, suit or proceeding threatened against Seller, involves a potential liability, on an individual or aggregate basis, equal to or greater than
ten percent (10%) of Seller’s Tangible Net Worth; 


  
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	 	(c)	the filing, recording or assessment of any federal, state or local tax lien against it, or any of its assets; 

  

	 	(d)	the occurrence of any Potential Default or Event of Default; 

  

	 	(e)	the actual or threatened suspension, revocation or termination of Seller’s licensing or eligibility, in any respect, as an approved, licensed lender, seller, mortgagee or servicer; 


 

	 	(f)	the suspension, revocation or termination of any existing and material credit or investor relationship to facilitate the sale and/or origination of residential mortgage loans; 


 

	 	(g)	any demand(s), whether on an individual or aggregate basis, by an Approved Investor or Insurer for (i) the repurchase of a mortgage loan(s) if the unpaid principal balance of the mortgage loan(s) subject to such
demand(s) is equal to or greater than two hundred and fifty thousand ($250,000) dollars or (ii) indemnification if the demanded indemnification amount(s) is equal to or greater than fifty thousand ($50,000) dollars; 


 

	 	(h)	any potential or existing Purchased Mortgage Loan where a director, officer, shareholder, member, partner or owner of Seller is the Mortgagor or guarantor or where the related Mortgaged Property is being sold by a
director, officer, shareholder, member, partner or owner of Seller; 

  

	 	(i)	any Purchased Mortgage Loan ceases to be an eligible Purchased Asset for the security of the Transactions; 

  

	 	(j)	any Approved Investor that threatens to set-off amounts owed by Seller to such Approved Investor against the purchase proceeds owed by the Approved Investor to Seller for the Purchased Mortgage Loans (excluding amounts
owed by Seller to the Approved Investor which are directly related to the Purchased Mortgage Loans and which are allowed to be set-off by the Approved Investor pursuant to the Bailee Agreement); 


 

	 	(k)	any change in the Executive Management of Seller; 

  

	 	(l)	any other action, event or condition of any nature that may lead to or result in a material adverse effect on the business, operations, assets or financial condition of Seller or that, without notice or lapse of time or
both, would constitute a default under any agreement, instrument or indenture to which Seller is a party or to which Seller, its properties or assets may be subject; and 


 

	 	(m)	any (i) change to the location of its chief executive office/chief place of business from that specified in Section 8.1(t), (ii) change in the name, identity or corporate structure (or the
equivalent) or change in the location where Seller maintains its records with respect to the Purchased Assets, or (iii) reincorporation or reorganization of Seller under the laws of another jurisdiction. 


 

	9.4	Additional Financing. If Seller intends to enter into any financing or lending arrangements not previously disclosed to and approved by Buyer greater than fifty thousand ($50,000) dollars, including,
without limitation, working capital arrangements, warehouse lines of credit or repurchase arrangements, Seller shall notify Buyer not fewer than fifteen (15) Business Days prior to the execution of such arrangement, and Buyer shall have the
right to approve or disapprove such arrangement, in its sole and good faith discretion. 


  
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	9.5	Servicing of Mortgage Loans. Subject to Section 6.2 above, Seller shall subservice all Purchased Mortgage Loans at Seller’s expense and without charge of any kind to Buyer.
Seller may delegate its obligations hereunder to subservice the Purchased Mortgage Loans (subject to Section 6.2) to an independent servicer provided that such independent subservicer and the related Servicing Agreement has been approved
by Buyer and such independent subservicer has executed a Servicing Agreement with Buyer. The failure of Seller to obtain the prior approval of Buyer regarding the delegation of its subservicing obligations to an independent subservicer and/or the
failure of the independent subservicer to execute and return to Buyer a Servicing Agreement shall be considered an Event of Default hereunder. In any event, Seller or its delegate shall subservice such Purchased Mortgage Loans with the degree of
care and in accordance with the subservicing standards generally prevailing in the industry, including those required by Fannie Mae, Freddie Mac and Ginnie Mae. 

  

	9.6	Evidence of Purchased Assets. Seller shall indicate on its computer records that each Purchased Mortgage Loan has been included in the Purchased Assets and, at the request of Buyer, place on each of its
written records pertaining to the Purchased Mortgage Loans a legend, in form and content satisfactory to Buyer, indicating that such Purchased Mortgage Loan has been sold to Buyer. 


 

	9.7	Protection of Purchased Mortgage Loans. Seller shall allow Buyer (a) to inspect any Mortgaged Property relating to a Purchased Mortgage Loan; (b) to appear in or intervene in any proceeding or matter
affecting any Purchased Mortgage Loan or other Purchased Assets or the value thereof; (c) to initiate, commence, appear in and defend any foreclosure, action, bankruptcy or proceeding which could affect Buyer’s ownership or security of the
Purchased Assets or the value thereof, or the rights and powers of Buyer; (d) to contest by litigation or otherwise any lien asserted against the Purchased Mortgage Loans or other Purchased Assets or against the related Mortgaged Property, the
improvements, or the personal property identified therein; and/or (e) to make payments on account of such encumbrances, charges, or liens and to service any Purchased Mortgage Loan and take any action it may deem appropriate to collect any
Purchased Assets or any part thereof or to enforce any rights with respect thereto. All reasonable costs and expenses, including reasonable attorneys’ fees (including, but not limited to, those incurred on appeal), that Buyer may incur with
respect to any of the foregoing and any expenditures it may make to protect or preserve the Purchased Assets or the rights of Buyer, shall be for the account of Seller. Seller shall repay the same to Buyer upon demand with interest, at the Default
Rate, from the date any such expenditure shall have been made until it is repaid. 

  

	9.8	Further Assurances. Seller shall, at its expense, promptly procure, execute and deliver to Buyer, upon request, all such other and further documents, agreements and instruments in compliance with or
accomplishment of the covenants and agreements of Seller in this Agreement. 

  

	9.9	Fidelity Bonds and Insurance. Seller shall maintain an insurance policy, in a form and substance satisfactory to Buyer, covering against loss or damage relating to or resulting from any breach of fidelity
by Seller, or any officer, director, employee or agent of Seller, any loss or destruction of documents (whether written or electronic), fraud, theft, misappropriation and errors and omissions. This policy shall name Buyer as insured and loss payee
and provide coverage in an amount equal to the greater of three hundred thousand dollars ($300,000) or that required by Fannie Mae’s Selling Guide, whichever is greater. The deductible on such insurance policy shall not exceed twenty five
thousand dollars ($25,000). Following approval by Buyer of a specific insurance policy, Seller shall not amend, cancel, suspend or otherwise change such policy without the prior written consent of Buyer. 


 

	9.10	 Wet Mortgage Loans. In connection with the funding of each Wet Mortgage Loan, Seller shall provide to the applicable Closing Agent, in
addition to the Irrevocable Closing Instructions, final closing instructions, which shall, without limitation, make reference to the Irrevocable Closing Instructions and stipulate the title insurance company that will be issuing the applicable title
insurance policy and Closing Protection Letter; provided, however, that Seller shall not use these 



  
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final closing instructions to modify or attempt to modify the terms of the Irrevocable Closing Instructions unless such modifications are agreed to in advance and in writing by Buyer. Seller
shall not otherwise modify or attempt to modify the terms of the Irrevocable Closing Instructions without Buyer’s prior written approval. If the Closing Agent is not a title insurance company, Seller shall also (a) confirm that the closing
is covered by a blanket Closing Protection Letter issued to Buyer by the title insurance company stipulated in the final closing instructions; or (b) provide to Buyer (1) a Closing Protection Letter covering the closing issued to Seller by
the title insurance company stipulated in the final closing instructions and (2) an Assignment of Closing Protection Letter relating to the above referenced Closing Protection Letter naming Buyer as the assignee. 


ARTICLE 10 
 NEGATIVE COVENANTS

 Seller hereby covenants and agrees with Buyer that during the term of this Agreement and for so long as there remain any obligations of Seller to be paid
or performed under this Agreement, Seller shall comply with the following: 
  

	10.1	Liabilities and Advances. Seller shall not, either directly or indirectly, without the prior written consent of Buyer, lend money or credit or make any advances to any Person or acquire any stock,
obligations or securities of, or any interest in, or make any capital contribution to any other Person in an amount greater than ten percent (10%) of Seller’s Tangible Net Worth, except for Mortgage Loans or other loans extended in the ordinary
course of Seller’s mortgage banking business. Seller shall not, either directly or indirectly, without the prior written consent of Buyer, assume, guarantee, endorse, or otherwise become liable for the obligation of any Person except by
endorsement of negotiable instruments for deposit or collection in the ordinary course of Seller’s mortgage banking business. 

  

	10.2	Debt and Subordinated Debt. Seller shall not, either directly or indirectly, without the prior written consent of Buyer, pay any Debt or Subordinated Debt if such payment shall cause a Potential Default or
Event of Default. Further, if a Potential Default or an Event of Default shall have occurred and for as long as such is occurring, Seller shall not, either directly or indirectly, without the prior written consent of Buyer, make any payment of any
kind thereafter on such Debt or Subordinated Debt until all obligations of Seller hereunder have been paid and performed in full. 

  

	10.3	Loss of Eligibility. Seller shall not, either directly or indirectly, without the prior written consent of Buyer, take, or fail to take, any action that would cause Seller to lose all or any part of its
status as an eligible lender, seller, mortgagee or servicer or willfully terminate its status as an eligible lender, seller, mortgagee or servicer without forty-five (45) days prior written notice to Buyer. 


 

	10.4	Financial Covenants and Ratios. Seller shall at all times comply with any financial covenants and/or financial ratios set forth in the Transactions Terms Letter. 


 

	10.5	Loans to Officers, Employees and Shareholders. Seller shall not, either directly or indirectly, without the prior written consent of Buyer, make any personal loans or advances to any officers, employees,
shareholders, members, partners or owners of Seller in an aggregate amount exceeding ten percent (10%) of Seller’s Tangible Net Worth; provided, however, that Seller shall be entitled to make a personal loan or advance to a majority
shareholder, member, partner or owner of Seller without the prior written consent of Buyer provided that (i) a Potential Default or an Event of Default is not existing and will not occur as a result thereof, (ii) such Person is also a
Guarantor and (iii) such loan or advance is clearly reflected on Seller’s financial reports provided to Buyer. 


  
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	10.6	Liens on Purchased Mortgage Loans and Purchased Assets; Liens on Other Assets. Seller acknowledges that with each Transaction it shall have sold the Purchased Mortgage Loans and related Purchased Assets
and shall have granted to Buyer a first priority security interest in such assets in the event such Transaction is deemed a loan. Accordingly, Seller shall not create, incur, assume or suffer to exist any lien upon the Purchased Mortgage Loans or
the Purchased Assets, other than as granted to Buyer herein. Further, Seller shall not, or create, incur, assume or suffer any lien upon any of its other property and assets without the prior written consent of Buyer; provided, however, that Seller
may, without the prior written consent of Buyer, and provided that a Potential Default or an Event of Default is not existing or will not occur as a result thereof, incur, assume or suffer to exist liens on its other property and assets for the
following purposes (a) liens for taxes not yet due or taxes being contested in good faith discretion and by appropriate proceedings for which adequate reserves have been established; (b) liens in favor of Fannie Mae, Ginnie Mae or Freddie
Mac on the right of Seller to service Mortgage Loans sold to the Agencies; or (c) liens incurred by Seller in the ordinary course of Seller’s mortgage banking business. 


 

	10.7	Transactions with Affiliates. Seller shall not, directly or indirectly, enter into any transaction with its Affiliates, if any, without the prior written consent of Buyer, including, without limitation,
(a) making any loan, advance, extension of credit or capital contribution to an Affiliate, (b) transferring, selling, pledging, assigning or otherwise disposing of any of its assets to or on behalf of an Affiliate, (c) purchasing or
acquiring assets from an Affiliate, or (d) paying management fees to or on behalf of an Affiliate; provided, however, that Seller may, without the prior written consent of Buyer, and provided that a Potential Default or an Event of Default is
not existing and will not occur as a result thereof, engage in a transaction(s) with any or all of its Affiliates if (i) such transaction is in the ordinary course of Seller’s mortgage banking business, (ii) such transaction is upon
fair and reasonable terms no less favorable to Seller had Seller entered into a comparable arm length’s transaction with a Person which is not an Affiliate and (iii) in any given twelve (12) month period, the aggregate value
transferred between Seller and any single Affiliate does not exceed fifty thousand ($50,000) dollars or the aggregate value transferred between Seller and two or more of its Affiliates does not exceed two hundred and fifty thousand ($250,000)
dollars. 

  

	10.8	Consolidation, Merger, Sale of Assets and Change of Control. Seller shall not (a) wind up, liquidate or dissolve its affairs; (b) enter into any transaction of merger or consolidation with any Person;
(c) convey, sell, lease or otherwise dispose of, or agree to do any of the foregoing at any future time, all or any part of its property or assets, or (d) allow a Change of Control to occur with respect to Seller, without prior written
consent of Buyer; provided, however, that Seller may, without the prior written consent of Buyer, and provided that a Potential Default or an Event of Default is not existing and will not occur as a result thereof: (i) merge or consolidate with
any Person if Seller is the surviving and controlling entity and (ii) in the ordinary course of Seller’s mortgage banking business, sell equipment that is uneconomic or obsolete and acquire Mortgage Loans for resale and sell Mortgage
Loans. 

  

	10.9	Payment of Dividends and Retirement of Stock. Seller shall not, without the prior written consent of Buyer, (a) declare or pay any dividends upon its shares of stock now or hereafter outstanding,
except dividends payable in the capital stock of Seller, or make any distribution of assets to its shareholders, whether in cash, property or securities, or (b) acquire, purchase, redeem or retire shares of its capital stock now or hereafter
outstanding for value, provided however, that Seller may pay dividends as set forth within the Transactions Terms Letter. 

  

	10.10	Purchased Assets. Seller shall not (a) attempt to resell, reassign, retransfer or otherwise dispose of, or grant any option with respect to, or pledge or otherwise encumber (except pursuant to this
Agreement) any of the Purchased Mortgage Loans or other Purchased Assets or any interest therein, or without prior written consent of Buyer (b) amend or modify, or waive any of the terms and conditions of, or settle or compromise any claim in
respect of, any Purchased Mortgage Loan. 


  
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	10.11	Secondary Marketing, Underwriting, Third Party Origination and Interest Rate Risk Management Practices. Seller shall not, without the prior written approval of Buyer, change in any material respect any
secondary marketing, underwriting, third party origination and interest rate risk management practices of Seller that exist as of the Effective Date. By way of example but not limitation, any change to Seller’s hedging strategy, any change to
add a new line of Mortgage Loan products or any change to add third party origination shall be considered material changes subject to the prior written approval of Buyer. The fact that Seller may from time to time disclose to Buyer in writing
proposed changes in such practices after the date hereof shall not be deemed Buyer’s consent to or written approval thereof unless Buyer has indicated written approval of such changes. It shall be deemed an Event of Default hereunder if Seller
changes any of the foregoing practices without having obtained such prior written approval from Buyer. 

 ARTICLE 11 

DEFAULTS AND REMEDIES 
  

	11.1	Events of Default. The occurrence of any of the following conditions or events shall be an Event of Default: 

  

	 	(a)	failure of Seller to pay any amount due under the Principal Agreements within two (2) Business Days following the applicable due date; 


 

	 	(b)	a material breach or default by Seller with respect to any term of any indebtedness or of any loan agreement, note, mortgage, security agreement, indenture, guaranty or other agreement to which Seller is a party or by
which it is bound; for purposes of this subsection, Buyer and Seller agree that a breach or default shall be deemed material if the effect of such breach or default is to cause, or to permit any holder thereof to cause, indebtedness of Seller in the
aggregate amount of ten percent (10%) of Seller’s Tangible Net Worth or more to become or be declared due prior to its stated maturity, it being understood, however, that this does not create a minimum threshold for materiality and the
materiality of any breach or default shall depend on the facts and circumstances related thereto; 

  

	 	(c)	the aggregate original Asset Value of those Purchased Mortgage Loans that are deemed to be Noncompliant Mortgage Loans is greater than or equal to the Type Sublimit for Noncompliant Mortgage Loans for more than two
(2) consecutive Business Days; 

  

	 	(d)	the aggregate original Asset Value of those Purchased Mortgage Loans that are deemed to be Defective Mortgage Loans is greater than or equal to ten percent (10%) of the outstanding Transactions for more than two
(2) consecutive Business Days; 

  

	 	(e)	any of Seller’s representations or warranties made in Section 8.1 and/or Section 8.2 or in any statement or certificate at any time given by Seller in writing pursuant hereto or in
connection herewith shall be false in any respect on the date as of which made and such occurrence shall not have been remedied within three (3) Business Days after receipt of notice from Buyer of such occurrence; 


 

	 	(f)	the failure of Seller to perform, comply with or observe any term, covenant or agreement applicable to Seller as contained in Articles 9 and 10 of this Agreement, irrespective of any cure period;


  

	 	(g)	the failure of Seller to perform, comply with or observe any other term, covenant or agreement applicable to Seller as contained in this Agreement and such occurrence shall not have been remedied within thirty
(30) days after receipt of notice from Buyer of such occurrence; 


  
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	 	(h)	an Insolvency Event shall have occurred with respect to Seller or any Guarantor; 

  

	 	(i)	one or more judgments or decrees shall be entered against Seller involving a liability of fifty thousand ($50,000) dollars or more, and all such judgments or decrees shall not have been vacated, discharged, stayed or
bonded pending appeal within thirty (30) days after entry thereof; 

  

	 	(j)	any Plan maintained by Seller or any subsidiary of Seller shall be terminated within the meaning of Title IV of ERISA or a trustee shall be appointed by an appropriate United States District Court to administer any
Plan, or the Pension Benefit Guaranty Corporation (or any successor thereto) shall institute proceedings to terminate any Plan or to appoint a trustee to administer any Plan if as of the date thereof Seller’s liability or any such
subsidiary’s liability (after giving effect to the tax consequences thereof) to the Pension Benefit Guaranty Corporation (or any successor thereto) for unfunded guaranteed vested benefits under the Plan exceeds the then current value of assets
accumulated in such Plan by more than fifty thousand ($50,000) dollars (or in the case of a termination involving Seller as a “substantial employer” (as defined in Section 4001(a)(2) of ERISA) the withdrawing employer’s
proportionate share of such excess shall exceed such amount); 

  

	 	(k)	Seller as employer under a Plan that is a multiemployer plan shall have made a complete or partial withdrawal from such Plan and the plan sponsor of such Plan shall have notified such withdrawing employer that such
employer has incurred a withdrawal liability in an annual amount exceeding fifty thousand ($50,000) dollars; 

  

	 	(l)	Seller shall purport to disavow its obligations hereunder or shall contest the validity or enforceability of the Principal Agreements or Buyer’s interest in any Purchased Mortgage Loan or other Purchased Assets;


  

	 	(m)	if applicable, the death of any Guarantor(s) who is an individual shall occur; 

  

	 	(n)	a Material and Adverse Change shall occur; 

  

	 	(o)	a change in any Key Personnel shall occur, if applicable. 

  

	 	(p)	any Principal Agreement shall for whatever reason (including an event of default thereunder) be terminated, without the consent of Buyer (other than, with respect to the Custodial Agreement, due to the resignation of
the Custodian for reasons other than a breach by Seller of the Custodial Agreement), or this Agreement shall for any reason cease to create a valid, first priority security interest or ownership interest upon transfer in any of the Purchased Assets;


  

	 	(q)	a breach of any of Seller’s or Servicer’s subservicing obligations, including, but not limited to, its failure to deposit any funds required to be deposited under Section 6.2(g) into the Custodial
Account; or 

  

	 	(r)	if Seller is a member of MERS, Seller’s membership in MERS is terminated for any reason. 


With respect to any Event of Default which requires a determination to be made as to whether such Event of Default has occurred, such
determination shall be made in Buyer’s sole and good faith discretion and Seller hereby agrees to be bound by and comply with any such determination by Buyer. 

  
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	11.2	Remedies. Upon the occurrence of an Event of Default, Buyer may, by notice to Seller, declare all or any portion of the Repurchase Prices related to the outstanding Transactions to be immediately due and
payable whereupon the same shall become immediately due and payable, and the obligation of Buyer to enter into Transactions shall thereupon terminate. Further, it is understood and agreed that upon the occurrence of an Event of Default, Seller shall
strictly comply with the negative covenants contained in Article 10 hereunder and in no event shall Seller declare and pay any dividends, incur additional Debt or Subordinated Debt, make payments on existing Debt or Subordinated Debt or
otherwise distribute or transfer any of Seller’s property and assets to any Person without the prior written consent of Buyer; provided, however, that for as long as such Event of Default is occurring, Seller may incur and pay trade Debt that
is, or was, incurred in the ordinary course of business of Seller’s mortgage banking business. Upon the occurrence of any Event of Default, Buyer may also: 

  

	 	(a)	enter the office(s) of Seller and take possession of any of the Purchased Assets including any records that pertain to the Purchased Assets; 


 

	 	(b)	communicate with and notify Mortgagors of the Purchased Mortgage Loans and obligors under other Purchased Assets or on any portion thereof, whether such communications and notifications are in verbal, written or
electronic form, including, without limitation, communications and notifications that the Purchased Assets have been assigned to Buyer and that all payments thereon are to be made directly to Buyer or its designee; settle compromise, or release, in
whole or in part, any amounts owing on the Purchased Mortgage Loans or other Purchased Assets or any portion of the Purchased Assets, on terms acceptable to Buyer; enforce payment and prosecute any action or proceeding with respect to any and all
Purchased Assets; and where any Purchased Mortgage Loans or other Purchased Assets is in default, foreclose upon and enforce security interests in, such Purchased Assets by any available judicial procedure or without judicial process and sell
property acquired as a result of any such foreclosure; 

  

	 	(c)	collect payments from Mortgagors and/or assume servicing of, or contract with a third party to subservice, any or all Purchased Mortgage Loans requiring servicing and/or perform any obligations required in connection
with Purchase Commitments, such third party’s fees to be paid by Seller. In connection with collecting payments from Mortgagors and/or assuming servicing of any or all Purchased Mortgage Loans, Buyer may take possession of and open any mail
addressed to Seller, remove, collect and apply all payments for Seller, sign Seller’s name to any receipts, checks, notes, agreements or other instruments or letters or appoint an agent to exercise and perform any of these rights. If Buyer so
requests, Seller shall promptly forward to Buyer or its designee, all further mail and all “trailing” documents, such as title insurance policies, deeds of trust, and other documents, and all loan payment histories, both in paper and
electronic format, in each case, as same relate to the Purchased Mortgage Loans; 

  

	 	(d)	proceed against Seller under this Agreement or against any Guarantor(s) under their respective Guaranty, or both; and/or 

  

	 	(e)	pursue any rights and/or remedies available at law or in equity against Seller or any Guarantor(s), or both. 

  

	11.3	Treatment of Custodial Account. During the existence of an Event of Default, notwithstanding any other provision of this Agreement, Seller shall have no right to withdraw or release any funds in the
Custodial Account to itself or for its benefit, nor shall it have any right to set-off any amount owed to it by Buyer against funds held by it for Buyer in the Custodial Account. During the existence of an Event of Default, Seller shall promptly
remit to or at the direction of Buyer all funds related to the Purchased Mortgage Loans in the Custodial Account. 


  
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	11.4	Sale of Purchased Assets. Following an Event of Default, Buyer may securitize or otherwise sell the Purchased Assets with no obligation to reacquire title as provided in Section 6.6 and Buyer
shall incur no liability as a result of such transaction. For the avoidance of doubt, Buyer may sell the Purchased Assets as part of a pool comprised of, all or part of, the Purchased Assets and other mortgage loans owned by Buyer; in such instance,
the value of the Purchased Assets shall be determined on a pro rata basis. Seller hereby waives any claims it may have against Buyer arising by reason of the fact that the price at which the Purchased Assets may have been sold at such private sale
was less than the price which might have been obtained at a public sale or was less than the aggregate Repurchase Price amount of the outstanding Transactions, even if Buyer accepts the first offer received and does not offer the Purchased Assets,
or any part thereof, to more than one offeree. 

  

	11.5	No Obligation to Pursue Remedy. Seller waives any right to require Buyer to (a) proceed against any Person, (b) proceed against or exhaust all or any of the Purchased Assets or pursue its rights
and remedies as against the Purchased Assets in any particular order, or (c) pursue any other remedy in its power. Buyer shall not be required to take any steps necessary to preserve any rights of Seller against holders of mortgages prior in
lien to the lien of any Purchased Mortgage Loan included in the Purchased Assets or to preserve rights against prior parties. No failure on the part of Buyer to exercise, and no delay in exercising, any right, power or remedy provided hereunder, at
law or in equity shall operate as a waiver thereof; nor shall any single or partial exercise by Buyer of any right, power or remedy provided hereunder, at law or in equity preclude any other or further exercise thereof or the exercise of any other
right, power or remedy. Without intending to limit the foregoing, all defenses based on the statute of limitations are hereby waived by Seller. The remedies herein provided are cumulative and are not exclusive of any remedies provided at law or in
equity. 

  

	11.6	Reimbursement of Costs and Expenses. Buyer may, but shall not be obligated to, advance any sums or do any act or thing necessary to uphold and enforce the lien and priority of, or the security intended to
be afforded by, any Purchased Mortgage Loan, including, without limitation, payment of delinquent taxes or assessments and insurance premiums. All advances, charges, reasonable costs and expenses, including reasonable attorneys’ fees and
disbursements, incurred or paid by Buyer in exercising any right, power or remedy conferred by this Agreement, or in the enforcement hereof, together with interest thereon, at the Default Rate, from the time of payment until repaid, shall become a
part of the Repurchase Price. 

  

	11.7	Application of Proceeds. The proceeds of any sale or other enforcement of Buyer’s interest in all or any part of the Purchased Assets shall be applied by Buyer: 


 

	 	(a)	first, to the payment of the costs and expenses of such sale or enforcement, including reasonable compensation to Buyer’s agents and counsel, and all expenses, liabilities and advances made or incurred by or
on behalf of Buyer in connection therewith; 

  

	 	(b)	second, to the payment of any other amounts due under this Agreement other than the aggregate Repurchase Price; 

  

	 	(c)	third, to the payment of the aggregate Repurchase Price; 

  

	 	(d)	fourth, to the payment to Seller, or to its successors or assigns, or as a court of competent jurisdiction may direct, of any surplus then remaining from such proceeds. If the proceeds of any such sale are
insufficient to cover the costs and expenses of such sale, as aforesaid, and the payment in full of the aggregate Repurchase Price and all other amounts due hereunder, Seller shall remain liable for any deficiency. 


  
 33 









	11.8	Rights of Set-Off. Buyer shall have the following rights of set-off: 

  

	 	(a)	If Seller shall default in the payment or performance of any of its obligations under this Agreement, Buyer shall have the right, at any time, and from time to time, without notice, to set-off claims and to appropriate
or apply any and all deposits of money or property or any other indebtedness at any time held or owing by Buyer to or for the credit of the account of Seller against and on account of the obligations and liabilities of Seller under this Agreement,
irrespective of whether or not Buyer shall have made any demand hereunder and whether or not said obligations and liabilities shall have become due; provided, however, that the aforesaid right to set-off shall not apply to any deposits of escrow
monies being held on behalf of the Mortgagors related to the Purchased Mortgage Loans or other third parties. Without limiting the generality of the foregoing, Buyer shall be entitled to set-off claims and apply property held by Buyer with respect
to any Transaction against obligations and liabilities owed by Seller to Buyer with respect to any other Transaction. 

  

	 	(b)	In addition to the rights in subsection (a), Buyer and its Affiliates, including, without limitation, Balboa Insurance Group, Inc., Countrywide Home Loans, Inc., Countrywide Securities Corporation and LandSafe, Inc.
(collectively, “Bank of America Related Entities”), shall have the right to set-off and to appropriate or apply any and all deposits of money or property or any other indebtedness at any time held or owing by the Bank of
America Related Entity to or for the credit of the account of Seller and its Affiliates against and on account of the obligations of Seller under any agreement(s) between Seller and/or its Affiliates, on the one hand, and the Bank of America Related
Entity, on the other hand, irrespective of whether or not the Bank of America Related Entity shall have made any demand hereunder and whether or not said obligations shall have matured. In exercising the foregoing right to set-off, any Bank of
America Related Entity shall be entitled to withdraw funds in the Over/Under Account which are being held for or owing to Seller to set-off against any amounts due and owing by Seller to the Bank of America Related Entity. If a Bank of America
Related Entity other than Buyer intends to exercise its right to set-off in this subsection (b), such Bank of America Related Entity shall provide Seller prior notice thereof, and upon Seller’s receipt of such notice, if the basis for such
right to set-off is Seller’s breach or default of its obligations to the Bank of America Related Entity, Seller shall have three (3) Business Days to cure any such breach or default in order to avoid such set-off. 


 

	11.9	Reasonable Assurances. If, at any time during the term of the Agreement, Buyer has reason to believe that Seller is not conducting its business in accordance with, or otherwise is not satisfying: (i) all
applicable statutes, regulations, rules, and notices of federal, state, or local governmental agencies or instrumentalities, all applicable requirements of Approved Investors and Insurers and prudent industry standards or (ii) all applicable
requirements of Buyer, as set forth in this Agreement, then, Buyer shall have the right to demand, pursuant to notice from Buyer to Seller specifying with particularity the alleged act, error or omission in question, reasonable assurances from
Seller that such a belief is in fact unfounded, and any failure of Seller to provide to Buyer such reasonable assurances in form and substance reasonably satisfactory to Buyer, within the time frame specified in such notice, shall itself constitute
an Event of Default hereunder, without a further cure period. Seller hereby authorizes Buyer to take such actions as may be necessary or appropriate to confirm the continued eligibility of Seller for Transactions hereunder, including without
limitation (i) ordering credit reports and (ii) contacting Mortgagors, licensing authorities and Approved Investors or Insurers. 


  
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 ARTICLE 12 

INDEMNIFICATION 
  

	12.1	Indemnification. Seller shall indemnify and hold harmless Buyer, its Affiliates and any of their respective officers, directors, employees and agents from and against any and all liabilities, obligations,
losses, damages, penalties, judgments, suits, costs, expenses and disbursements of any kind whatsoever that may be imposed upon, incurred by or asserted against Buyer, its Affiliates and their respective officers, directors, employees and agents in
any way relating to or arising out of the Principal Agreements or any other document referred to therein or any of the transactions contemplated thereby, except for liabilities, losses and damages solely resulting from the gross negligence or
willful misconduct of Buyer and its Affiliates. 

  

	12.2	Payment of Taxes. Seller shall pay and hold Buyer harmless from and against any and all present and future stamp, documentary and other similar taxes with respect to the Purchased Assets, the Principal
Agreements and other documents related thereto and hold Buyer harmless from and against any and all liabilities with respect to or resulting from any delay or omission to pay such taxes. 


ARTICLE 13 
 TERM AND TERMINATION

  

	13.1	Term. Provided that no Event of Default or Potential Default has occurred and is continuing, and except as otherwise provided for herein, this Agreement shall commence on the Effective Date and continue
until the Expiration Date set forth in the Transactions Terms Letter. Following expiration or termination of this Agreement, all indebtedness due Buyer under the Principal Agreements shall be immediately due and payable without notice to Seller and
without presentment, demand, protest, notice of protest or dishonor, or other notice of default, and without formally placing Seller in default, all of which are hereby expressly waived by Seller. 


 

	13.2	Termination. 

  

	 	(a)	Buyer may, with or without cause, terminate this Agreement at any time by providing notice to Seller. Seller acknowledges and understands that Buyer is under no obligation whatsoever to continue the term of this
Agreement for any period of time and may terminate this Agreement at any time for any reason. By way of example but not limitation, Buyer may immediately terminate this Agreement by providing notice to Seller if (i) this Agreement or any
Transaction is deemed by a court or by statute to not constitute a “repurchase agreement,” a “securities contract,” or a “master netting agreement,” as each such term is defined in the Bankruptcy Code,
(ii) payments or security offered hereunder are deemed by a court or by statute not to constitute “settlement payments” or “margin payments” as each such term is defined in the Bankruptcy Code, (iii) this Agreement or
any Transaction is deemed by a court or by statute not to constitute an agreement to provide financial accommodations as described in Bankruptcy Code Section 365(c)(1) or (iv) Buyer determines that there has been fraud, misrepresentation
or any similar intentional conduct on behalf of Seller, its officers, directors, employees, agents and/or its representatives with respect to any of Seller’s obligations, responsibilities or actions undertaken in connection with this Agreement.


  

	 	(b)	 Upon termination of this Agreement for any reason, all outstanding amounts due to Buyer under the Principal Agreements shall be immediately due and
payable without notice to Seller and without presentment, demand, protest, notice of protest or dishonor, or other notice of default, and without formally placing Seller in default, all of which are hereby expressly waived by Seller. Further, any
termination of this Agreement shall not affect the outstanding obligations of Seller under this Agreement and all such outstanding obligations and the rights and remedies afforded Buyer in connection therewith, including, without limitation, those
rights and remedies afforded Buyer under this Agreement, shall 



  
 35 









	 	
survive any termination of this Agreement. Buyer shall not be liable to Seller for any costs, loss or damages arising from or relating to a termination by Buyer in accordance with any subsection
of this Section 13.2. 

  

	13.3	Extension of Term. Upon mutual agreement of Seller and Buyer, the term of this Agreement may be extended. Such extension may be made subject to the terms and conditions hereunder and to any other terms and
conditions as Buyer, in its sole and good faith discretion, may deem necessary or advisable. Under no circumstances shall such an extension by Buyer be interpreted or construed as a forfeiture by Buyer of any of its rights, entitlements or interest
created hereunder. Seller acknowledges and understands that Buyer is under no obligation whatsoever to extend the term of this Agreement beyond the initial term. 


ARTICLE 14 
 GENERAL 

 

	14.1	Integration; Servicing Provisions Integral and Non-Severable. This Agreement, together with the other Principal Agreements, and all other documents executed pursuant to the terms hereof and thereof,
constitute the entire agreement between the parties with respect to the subject matter hereof and supercedes any and all prior or contemporaneous oral or written communications with respect to the subject matter hereof, all of which such
communications are merged herein. All Transactions hereunder constitute a single business and contractual relationship and each Transaction has been entered into in consideration of the other Transactions. Without limiting the generality of the
foregoing, the provisions of this Agreement related to the servicing and servicing rights of the Mortgage Loans subject to Transactions hereunder are integral, interrelated, and are non-severable from the purchase and sale provisions of the
Agreement. Buyer has relied upon such provisions as being integral and non-severable in determining whether to enter into this Agreement and in determining the Purchase Price methodology for the Mortgage Loans. The integration of these servicing
provisions is necessary to enable Buyer to obtain the maximum value from the sale of the Mortgage Loans by having the ability to sell the servicing rights related to the Mortgage Loans free from any claims or encumbrances. Further, the fact that
Seller or the Servicer may be entitled to a servicing fee for interim servicing of the Purchased Mortgage Loans or that Buyer may provide a separate notice of default to Seller or the Servicer regarding the servicing of the
Purchased Mortgage Loans shall not affect or otherwise change the intent of Seller and Buyer regarding the integral and non-severable nature of the provisions in the Agreement related to servicing and servicing rights nor will such facts
affect or otherwise change Buyer’s ownership of the servicing rights related to the Mortgage Loans. 

  

	14.2	Amendments. No modification, waiver, amendment, discharge or change of this Agreement shall be valid unless the same is in writing and signed by the party against whom the enforcement of such modification,
waiver, amendment, discharge or change is sought. 

  

	14.3	No Waiver. No failure or delay on the part of Seller or Buyer in exercising any right, power or privilege hereunder and no course of dealing between Seller and Buyer shall operate as a waiver thereof nor
shall any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege hereunder. 


 

	14.4	Remedies Cumulative. The rights and remedies herein expressly provided are cumulative and not exclusive of any rights or remedies that Seller or Buyer would otherwise have. No notice or demand on Seller in
any case shall entitle Seller to any other or further notice or demand in similar or other circumstances or constitute a waiver of the rights of Buyer to any other or further action in any circumstances without notice or demand. 


  
 36 









	14.5	Assignment. The Principal Agreements may not be assigned by Seller. The Principal Agreements, along with Buyer’s right, title and interest, including its security interest, in any or all of the
Purchased Assets, may, at any time, be transferred or assigned, in whole or in part, by Buyer, and upon providing notice to Seller of such transfer or assignment, any transferee or assignee thereof may enforce the Principal Agreements and such
security interest directly against Seller. 

  

	14.6	Successors and Assigns. The terms and provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.


  

	14.7	Participations. Buyer may from time to time sell or otherwise grant participations in this Agreement, and the holder of any such participation, if the participation agreement so provides, (i) shall,
with respect to its participation, be entitled to all of the rights of Buyer and (ii) may exercise any and all rights of set-off or banker’s lien with respect thereto, in each case as fully as though Seller were directly obligated to the
holder of such participation in the amount of such participation; provided, however, that Seller shall not be required to send or deliver to any of the participants other than Buyer any of the materials or notices required to be sent or delivered by
it under the terms of this Agreement, nor shall it have to act except in compliance with the instructions of Buyer. 

  

	14.8	Invalidity. In case any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provisions hereof, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had not been included. 


 

	14.9	Additional Instruments. Seller shall execute and deliver such further instruments and shall do and perform all matters and things necessary or expedient to be done or observed for the purpose of
effectively creating, maintaining and preserving the security and benefits intended to be afforded by this Agreement. 

  

	14.10	Survival. All representations, warranties, covenants and agreements herein contained on the part of Seller shall survive any Transaction and shall be effective so long as this Agreement is in effect or
there remains any obligation of Seller hereunder to be performed. 

  

	14.11	Notices. 

  

	 	(a)	All notices, demands, consents, requests and other communications required or permitted to be given or made hereunder in writing shall be mailed (first class, return receipt requested and postage prepaid) or delivered
in person or by overnight delivery service or by facsimile, addressed to the respective parties hereto at their respective addresses set forth below or, as to any such party, at such other address as may be designated by it in a notice to the other:


  

			
	If to Seller:	    	That address set forth in the Transactions Terms Letter
		
	If to Buyer:	    	Bank of America Home Loans
		    	Warehouse Lending
		    	225 West Hillcrest Drive
		    	Mail Code: CA6-918-01-03
		    	Thousand Oaks, CA 91360
		    	Facsimile No: (818) 316-8842

 All written notices shall be conclusively deemed to have been properly given or made when duly delivered, if
delivered in person or by overnight delivery service, or on the third (3rd) Business Day after being deposited in the mail, if mailed in accordance herewith, or


  
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upon transmission by the receiving party of a facsimile confirming receipt, if delivered by facsimile. Notwithstanding the foregoing, any notice of termination shall be deemed effective upon
mailing, transmission, or delivery, as the case may be. 
  

	 	(b)	All notices, demands, consents, requests and other communications required or permitted to be given or made hereunder which are not required to be in writing may also be provided electronically either (i) as an
electronic mail sent and addressed to the respective parties hereto at their respective electronic mail addresses set forth below, or as to any such party, at such other electronic mail address as may be designated by it in a notice to the other or
(ii) with respect to Buyer, via a posting of such notice on Buyer’s customer website(s). 

  

			
	If to Seller:	    	That email address(es) specified in the Transactions Terms Letter, if any.
		
	If to Buyer:	    	Blair.Kenny@bankofamerica.com

  

	14.12	Personal Identification Number. Seller shall adopt a Personal Identification Number or PIN to be entered into the computer system in connection with all documents transmitted from Seller to Buyer
electronically. Further, any document required to be signed by Seller may be signed by handwritten signature or transmitted electronically in conjunction with the PIN, except any written notification designating or changing the PIN and those
documents required to be delivered pursuant to Section 7.1(a) above, which must be signed by hand. Seller shall provide Buyer with written notification of its PIN and any changes thereto; provided, however, that any change to the
PIN may not become effective for twenty four (24) hours following Buyer’s confirmation of receipt of such notice by Seller. Seller and Buyer agree that transmitting a document in conjunction with the PIN shall have the same force and
effect as a handwritten signature and shall be sufficient to verify that Seller originated such document. Seller shall employ security procedures to ensure that all transmissions of documents accompanied by the PIN are authorized, authentic,
reliable and complete and shall promptly notify Buyer if Seller discovers the PIN has been improperly disclosed to any Person. Notwithstanding the foregoing or any other breach of security, Buyer shall be entitled to rely upon the PIN of Seller
until such time as (a) Seller provides Buyer with written instructions to the contrary and (b) Buyer has sufficient time to notify the appropriate employees and modify its computerized systems. 


 

	14.13	Governing Law. This Agreement and the rights and obligations of the parties under the Principal Agreements shall be construed in accordance with and governed by the laws of the State of California, without
regard to principles of conflicts of laws. All legal actions between or among the parties regarding this Agreement, including, without limitation, legal actions to enforce this Agreement or because of a dispute, breach or default of this Agreement,
shall be brought in the federal or state courts located in Los Angeles County, California, which courts shall have sole and exclusive in personam, subject matter and other jurisdiction in connection with such legal actions and the parties
acknowledged and agree that venue in such courts shall be convenient and appropriate for all purposes. 

  

	14.14	Counterparts. This Agreement may be executed in any number of counterparts by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of
which when taken together shall constitute one and the same Agreement. 

  

	14.15	Headings. The headings in this Agreement are for purposes of reference only and shall not limit or otherwise affect the meaning or interpretation of any provisions hereof. 


  
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	14.16	Joint and Several Liability of Each Seller. To the extent there is more than one Person which is named as a Seller under this Agreement, each such Person shall be jointly and severally liable for the
rights, covenants, obligations and warranties and representations of “Seller” as contained herein and the actions of any Person (including another Seller) or third party shall in no way affect such joint and several liability.


  

	14.17	Confidential Information. To effectuate this Agreement, Buyer and Seller may disclose to each other certain confidential information relating to the parties’ operations, computer systems, technical
data, business methods, and other information designated by the disclosing party or its agent to be confidential, or that should be considered confidential in nature by a reasonable person given the nature of the information and the circumstances of
its disclosure (collectively the “Confidential Information”). Confidential Information can consist of information that is either oral or written or both, and may include, without limitation, any of the following: (i) any
reports, information or material concerning or pertaining to businesses, methods, plans, finances, accounting statements, and/or projects of either party or their affiliated or related entities; (ii) any of the foregoing related to the parties
or their related or affiliated entities and/or their present or future activities and/or (iii) any term or condition of any agreement (including this Agreement) between either party and any individual or entity relating to any of their business
operations. With respect to Confidential Information, the parties hereby agree: 

  

	 	(a)	not to use the Confidential Information except in furtherance of this Agreement; 

  

	 	(b)	to use reasonable efforts to safeguard the Confidential Information against disclosure to any unauthorized third party with the same degree of care as they exercise with their own information of similar nature; and


  

	 	(c)	not to disclose Confidential Information to anyone other than employees, agents or contractors with a need to have access to the Confidential Information and who are bound to the parties by like obligations of
confidentiality, except that the parties shall not be prevented from using or disclosing any of the Confidential Information which: (i) is already known to the receiving party at the time it is obtained from the disclosing party; (ii) is
now, or becomes in the future, public knowledge other than through wrongful acts or omissions of the party receiving the Confidential Information; (iii) is lawfully obtained by the party from sources independent of the party disclosing the
Confidential Information and without confidentiality and/or non-use restrictions; or (iv) is independently developed by the receiving party without any use of the Confidential Information of the disclosing party. Notwithstanding anything
contained herein to the contrary, Buyer may share any Confidential Information of Seller with an Affiliate of Buyer for any valid business purpose, such as, but not limited to, to assist an Affiliate in evaluating a current or potential business
relationship with Seller. 

 If any party or any of its successors, subsidiaries, officers, directors, employees, agents and/or
representatives, including, without limitation, its insurers, sureties and/or attorneys, breaches its respective duty of confidentiality under this Agreement, the nonbreaching party(ies) shall be entitled to all remedies available at law and/or in
equity, including, without limitation, injunctive relief. 
  

	14.18	Intent. Seller and Buyer recognize and intend that: 

  

	 	(a)	this Agreement and each Transaction hereunder constitutes a “repurchase agreement” as that term is defined in Section 101(47) of the Bankruptcy Code, a “securities contract” as that term is
defined in Section 741(7) of the Bankruptcy Code and a “master netting agreement” as that term is defined in Section 101(38A) of the Bankruptcy Code. Seller and Buyer further recognize and intend that this Agreement is
an agreement to provide financial accommodations and is not subject to assumption pursuant to Bankruptcy Code Section 365(a); 


  
 39 









	 	(b)	Buyer’s right to liquidate the Purchased Mortgage Loans delivered to it in connection with the Transactions hereunder or to accelerate or terminate this Agreement or otherwise exercise any other remedies herein is
a contractual right to liquidate, accelerate or terminate such Transaction as described in Bankruptcy Code Sections 555, 559 and 561; any payments or transfers of property made with respect to this Agreement or any Transaction to: (i) satisfy a
Margin Deficit, (ii) comply with a Margin Call, or (iii) satisfy the provision of Guarantees an/or additional security agreements to provide enhancements to satisfy a deficiency in the Over/Under Account, shall in each case be considered a
“margin payment” as such term is defined in Bankruptcy Code Section 741(5); and 

  

	 	(c)	any payments or transfers of property by Seller (i) on account of a Haircut, (ii) in partial or full satisfaction of a repurchase obligation, or (iii) fees and costs under this Agreement or under any
Transaction shall in each case constitute “settlement payments” as such term is defined in Bankruptcy Code Section 741(8). 

  

	14.19	Right to Liquidate. It is understood that either party’s right to liquidate Purchased Mortgage Loans delivered to it in connection with Transactions hereunder or to terminate or accelerate obligations
under this Agreement or any individual Transaction, are contractual rights for same as described in Sections 555 and 559 of the Bankruptcy Code. 

  

	14.20	Insured Depository Institution. If a party hereto is an “insured depository institution” as such term is defined in the Federal Deposit Insurance Act (as amended, the “FDIA”),
then each Transaction hereunder is a “qualified financial contract” as that term is defined in the FDIA and any rules, orders or policy statements thereunder except insofar as the type of assets subject to such Transaction would render
such definition inapplicable. 

  

	14.21	Netting Contract. This Agreement constitutes a “netting contract” as defined in and subject to Title IV of the Federal Deposit Insurance Corporation Improvement Act of 1991
(“FDICIA”) and each payment entitlement and payment obligation under any Transaction hereunder shall constitute a “covered contractual payment entitlement” or “covered contractual payment
obligation”, respectively, as defined in and subject to the FDICIA except insofar as one or more of the parties hereto is not a “financial institution” as that term is defined in the FDICIA. 


 

	14.22	Reimbursement of Expenses. If any claim, legal action or any arbitration or other proceeding is brought for the enforcement of this Agreement or because of a dispute, breach, default or misrepresentation
in connection with any of the provisions of this Agreement, the prevailing party shall be entitled to recover reasonable attorneys’ fees and other reasonable costs in that claim, action, arbitration or proceeding, in addition to any other
relief to which such party may be entitled. 

  

	14.23	Examination and Oversight by Regulators. Seller agrees that the transactions with Buyer under this Agreement may be subject to regulatory examination and oversight, including, without limitation,
examination and oversight by the Office of Thrift Supervision (“OTS”). Seller shall comply with all regulatory requirements of Buyer and Seller shall grant regulatory agencies, including, but not limited to, the OTS, the right to audit the
books and records of Seller in order to monitor or verify Seller’s performance under and compliance with the terms of this Agreement. 


(Signature page to follow) 

  
 40 








 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the
date first above written. 
  

							
	BUYER:	 	BANK OF AMERICA, N.A.	 	
				
		 	By:	 	 	 	
		 	Name:	 	 	 	
		 	Title:	 	 	 	
			
	SELLER:	 	LOANDEPOT.COM, LLC	 	
				
		 	By:	 	



	 	
		 	Name:	 	Anthony Hsieh	 	
		 	Title:	 	CEO	 	


  
 41 








 EXHIBIT A 

GLOSSARY OF DEFINED TERMS 
 Accepted
Servicing Practices: With respect to any Purchased Mortgage Loan, those mortgage servicing practices of prudent mortgage lending institutions which service mortgage loans of the same type as such Purchased Mortgage Loan in the jurisdiction
where the related Mortgaged Property is located. 
 Acknowledgement of Confidentiality of Password Agreement: That certain Acknowledgement of
Confidentiality of Password Agreement attached hereto as Exhibit I. 
 Additional Purchased Mortgage Loans: Those additional Mortgage
Loans or cash provided by Seller to Buyer pursuant to Section 6.3 of this Agreement. 
 Affiliate: With respect to any specified
entity, any other entity controlling or controlled by or under common control with such specified entity. For the purposes of this definition, “control” when used with respect to a specified entity means the power to direct the management
and policies of such entity, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise, and the terms “controlling” and “controlled” having meanings correlative to the foregoing. 

Agency: Fannie Mae or Freddie Mac. 

Aggregate Transaction Limit: The maximum aggregate principal amount of Transactions that may be outstanding at any one time, as set forth in the
Transactions Terms Letter. 
 Applicable Pricing Rate: With respect to any date of determination, the daily rate per annum (rounded up to
three (3) decimal places) for one-month U.S. dollar denominated deposits as offered to prime banks in the London interbank market (“One-Month LIBOR”) as published on Bloomberg or in the Wall Street Journal. It is understood
that the Applicable Pricing Rate shall be initially set to the then current One-Month LIBOR in effect on the date the Purchase Price is paid and shall thereafter be adjusted on a daily basis to the then current One-Month LIBOR. 

Application: The application or “Buyer Application Profile,” including all supporting documentation, submitted by Seller to Buyer with
respect to this Agreement. 
 Approved Investor: Fannie Mae, Freddie Mac, Ginnie Mae or a financially responsible private institution, which
is deemed acceptable by Buyer in its sole and good faith discretion, purchasing Purchased Mortgage Loans from Seller pursuant to a Purchase Commitment. 

Approved Payee: A Closing Agent or warehouse lender approved by Buyer in accordance with Section 3.7. 

Asset Data Record: A document, in the form required by Buyer and as may from time to time be amended by Buyer, as such form may be set forth in
the Handbook, completed by Seller and submitted to Buyer with respect to each Purchased Mortgage Loan. 
 Asset Value: With respect to each
Purchased Mortgage Loan for any date of determination, an amount equal to the following, as applicable, as same may be reduced in accordance with Section 4.3: 

(a) if the Purchased Mortgage Loan has Standard Status, the product of the Mortgage Loan Value and the Type Purchase Price Percentage for the type of
Purchased Mortgage Loan. 
 (b) if the Purchased Mortgage Loan is a Noncompliant Mortgage Loan, the product of the Mortgage Loan Value and the Type Purchase
Price Percentage for a Noncompliant Mortgage Loan; or 
 (c) if the Purchased Mortgage Loan is a Defective Mortgage Loan, zero. 

  
 A-1 








 For purposes of the foregoing, “Mortgage Loan Value” shall mean the lesser of (i) the
outstanding principal balance of the Purchased Mortgage Loan; (ii) the committed purchase price of the Purchased Mortgage Loan, as evidenced by the related Purchase Commitment; and (iii) the fair market value of the Purchased Mortgage
Loan, as determined by Buyer in its sole and good faith discretion. 
 Assignment: A duly executed assignment to Buyer in recordable form of a
Purchased Mortgage Loan, of the indebtedness secured thereby and of all documents and rights related to such Purchased Mortgage Loan. 
 Assignment of
Closing Protection Letter: An assignment assigning and subrogating Buyer to all of Seller’s rights in a Closing Protection Letter, substantially in the form of Exhibit F hereto. 

Assignment of Fidelity Bond and Errors and Omission Policy: An assignment assigning and subrogating Buyer to all of Seller’s rights in a
Fidelity Bond and Errors and Omissions Policy, substantially in the form of Exhibit G hereto. 
 Bailee Agreement: A bailee agreement
substantially in the form acceptable to Buyer. 
 Bankruptcy Code: Title 11 of the United States Code, now or hereafter in effect, as amended,
or any successor thereto. 
 Bond Loans - 1st Liens: Unless defined otherwise in the
Transactions Terms Letter, a first lien mortgage loan, other than a Nonperforming/Subperforming Mortgage Loan, that is eligible for sponsorship, facilitated or insured by a qualifying local or state home governmental homeownership program. 

Bond Loans – 2nd Liens: Unless defined otherwise in the Transactions Terms Letter, a
second lien mortgage loan for a fixed amount drawn at closing, that is eligible for sponsorship, facilitated or insured by a qualifying local or state governmental home homeownership program. 

Breakage Fee: That fee, as set forth in the Transactions Terms Letter or otherwise indicated on Buyer’s then-current schedule of fees,
payable by Seller to Buyer if Seller fails to consummate a Transaction after Seller has submitted an Asset Data Record in connection with such requested Transaction. 

Business Day: Any day, excluding Saturday, Sunday and any day that is a legal holiday under the laws of the State of California. 

Cash Equivalents: Any (a) securities with maturities of ninety (90) days or less from the date of acquisition issued or fully
guaranteed or insured by the United States Government or any agency thereof, (b) certificates of deposit and Eurodollar time deposits with maturities of ninety (90) days or less from the date of acquisition and overnight bank deposits of
any commercial bank having capital, surplus and retained earnings in excess of $70,000,000, (c) repurchase obligations of any commercial bank satisfying the requirements of clause (b) of this definition, having a term of not more than
seven days with respect to securities issued or fully guaranteed or insured by the United States Government, (d) commercial paper of a domestic issuer rated at least A-1 or the equivalent thereof by S&P or p-1 or the equivalent thereof by
Moody’s and in either case maturing within ninety (90) days after the day of acquisition, (e) securities with maturities of ninety (90) days or less from the date of acquisition issued or fully guaranteed by any state,
commonwealth or territory of the United States, by any political subdivision or taxing authority of any such state, commonwealth or territory or by any foreign government, the securities of which state, commonwealth, territory, political
subdivision, taxing authority or foreign government (as the case may be) are rated at least A by S&P or A by Moody’s, (f) securities with maturities of ninety (90) days or less from the date of acquisition backed by standby
letters of credit issued by any commercial bank satisfying the requirements of clause (b) of this definition, or (g) shares of money market, mutual or similar funds which invest exclusively in assets satisfying the requirements of clauses
(a) through (f) of this definition. 

  
 A-2 








 Cashiers Check Fee: That fee, as set forth in the Transactions Terms Letter or otherwise indicated
on Buyer’s then-current schedule of fees, payable by Seller for each disbursement made by a cashiers check issued to Seller or its Approved Payee. 

Change of Control: Change of Control shall mean any of the following: 

(a) if Seller is a corporation, any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”)), other than a trustee or other fiduciary holding securities of Seller under an employee benefit plan of Seller, becomes the “beneficial owner” (as defined in Rule 13d-3 promulgated under the Exchange Act),
directly or indirectly, of securities of Seller representing 50% or more of (A) the outstanding shares of common stock of Seller or (B) the combined voting power of Seller’s then-outstanding securities; 

(b) if Seller is a legal entity other than a corporation, the majority voting control of Seller, or its equivalent, under Seller’s governing documents is
transferred to any Person; 
 (c) Seller is party to a merger or consolidation, or series of related transactions, which results in the voting securities or
majority voting control interest of Seller outstanding immediately prior thereto failing to continue to represent (either by remaining outstanding or by being converted into voting securities or a majority voting controlling interest of the
surviving or another entity) at least fifty (50%) percent of the combined voting power of the voting securities or majority voting control interest of Seller or such surviving or other entity outstanding immediately after such merger or
consolidation; 
 (d) the sale or disposition of all or substantially all of Seller’s assets (or consummation of any transaction, or series of related
transactions, having similar effect); 
 (e) there occurs a change in the composition of the Board of Directors or governing body of Seller within a one
(1) year period, as a result of which fewer than a majority of the directors or governing body members are incumbent; 
 (f) the dissolution or
liquidation of Seller; or 
 (g) any transaction or series of related transactions that has the substantial effect of any one or more of the foregoing. 

Closed-End Second Lien Mortgage Loan: Unless defined otherwise in the Transactions Terms Letter, a second lien mortgage loan for a fixed amount
drawn at closing and underwritten in accordance with Seller’s underwriting guidelines for second lien mortgages, as same have been approved by Buyer. 

Closing Agent: The Person designated by Seller and approved by Buyer in accordance with Section 3.7 to receive Purchase Prices from
Buyer, for the account of Seller, for the purpose of funding a Purchased Mortgage Loan. 
 Closing Protection Letter: A document issued by a
title insurance company to Seller and/or Buyer and relied upon by Buyer to provide closing protection for one or more mortgage loan closings and to insure Seller and/or Buyer, without limitation, against embezzlement by the Closing Agent and loss or
damage resulting from the failure of the Closing Agent to comply with all applicable closing instructions. 
 Contingent Obligations: Any
obligation of Seller arising from an existing condition or situation that involves uncertainty as to outcome and that will be resolved by the occurrence or nonoccurrence of some future event, including, without limitation, any obligation
guaranteeing or intended to guarantee any Debt, leases, dividends or other obligations of any other Person in any manner, whether directly or indirectly; provided; however, that endorsements of instruments for deposit or collection in the ordinary
course of business shall not be included. With respect to guarantees, the amount of the Contingent Obligation shall be equal to the stated or determinable amount of the primary obligation in respect of the guarantee or, if not stated or
determinable, the maximum reasonably anticipated liability in respect thereof, as determined by Buyer. 

  
 A-3 








 [***] Confidential portions of this document have been redacted and filed separately with the
Commission. 
 Control Agreement: the agreement to perfect Buyer’s security interest in the Custodial Account as described at
Section 6.2(i) of this Agreement. 
 Conventional Conforming Mortgage Loan: Unless defined otherwise in the Transactions Terms Letter, a
first lien mortgage loan that fully conforms to all underwriting standards, loan amount limitations and other requirements of that standard Agency mortgage loan purchase program accepting only the highest quality mortgage loans underwritten without
dependence on expanded criteria provisions, or that is approved by Desktop Underwriter or Loan Prospector. 
 Current Assets: Those assets set
forth in the consolidated balance sheet of Seller, prepared in accordance with GAAP, as current assets, defined as those assets that are now cash or will by their terms or disposition be converted to cash within one (1) year of the date of the
determination. 
 Current Liabilities: Those liabilities set forth in the consolidated balance sheet of Seller, prepared in accordance with
GAAP, as current liabilities, defined as those liabilities due upon demand or within one (1) year of the date of determination. 
 Custodial
Account: The account described at Section 6.2(i) of this Agreement. 
 Custodian: Bank of America, N.A. or such other custodian
selected by Buyer in its sole and good faith discretion. 
 Date of Disbursement: The date of disbursement shall mean (i) with respect to
a wire transfer, the date such funds are wired, (ii) with respect to a cashiers check, the date such check is issued by the bank and (iii) with respect to a funding draft, the date that the draft is posted by the bank on which the draft is
drawn. 
 Debt: The debt of Seller consisting of, without duplication: (a) indebtedness for borrowed money, including principal,
interest, fees and other charges; (b) obligations evidenced by bonds, debentures, notes or other similar instruments; (c) obligations to pay the deferred purchase price of property or services; (d) obligations as lessee under leases
that shall have been or should be in accordance with GAAP, recorded as capital leases; (e) obligations secured by any lien upon property or assets owned by Seller, even though Seller has not assumed or become liable for payment of such
obligations; (f) obligations in connection with any letter of credit issued for the account of Seller; (g) obligations under direct or indirect guarantees in respect of and obligations, contingent or otherwise, to purchase or otherwise
acquire, or otherwise assure a creditor against loss in respect of, indebtedness or obligations of others of the kinds referred to above; and (h) all Contingent Obligations. 

Default Rate: [***] 
 Defective Loan
Fee: A fee equal to [***] dollars ($[***]) payable by Seller for each Purchased Mortgage Loan that is or becomes a Defective Mortgage Loan. 

  
 A-4 








 Defective Mortgage Loan: A Purchased Mortgage Loan: 

(a) that has not been repurchased within the Maximum Dwell Time for a Noncompliant Mortgage Loan or is ineligible to be a Noncompliant Mortgage Loan because
the aggregate original Asset Value of other Purchased Mortgage Loans that are deemed to be Noncompliant Mortgage Loans is equal to or greater than the Type Sublimit for Noncompliant Mortgage Loans; 

(b) that is the subject of fraud by any Person involved in the origination of such Mortgage Loan and such fraud shall not have been remedied within three
(3) Business Days after receipt of notice from Buyer to do so; 
 (c) where the related Mortgaged Property is the subject of material damage or
waste and such damage or waste shall not have been remedied within three (3) Business Days after receipt of notice from Buyer to do so; 
 (d) in
connection with which any other breach of a warranty or representation set forth in Section 8.2 occurs and remains uncured for a period of ten (10) calendar days; 

(e) in connection with which a default occurs under the Purchased Mortgage Loan and remains uncured for a period of ten (10) calendar days; or 

(f) where the related Mortgagor fails to make the first payment due under the Mortgage Note on or before the applicable due date, including any days of grace,
and such default shall not have been remedied within three (3) Business Days after receipt of notice from Buyer to do so; provided, however, that with respect to any Nonperforming/Subperforming Mortgage Loan where specific payment conditions
have been set forth in the Transactions Terms Letter, such Nonperforming/Subperforming Mortgage Loan shall only be deemed a Defective Mortgage Loan for failure of the Mortgagor to make payment if such failure constitutes a breach of the such
specific payment conditions. 
 Document Deposit Fee: That fee, as set forth in the Transactions Terms Letter or otherwise indicated on
Buyer’s then-current schedule of fees, payable by Seller for each Mortgage Loan Document delivered to Buyer after the initial delivery date of the related Mortgage Loan File. 

Dry Mortgage Loan: A Mortgage Loan for which Buyer or its Custodian has possession of the related Mortgage Loan Documents, in a form and
condition acceptable to Buyer, prior to the payment of the Purchase Price. 
 Effective Date: That effective date set forth in the
Transactions Terms Letter. 
 Electronic Tracking Agreement: An Electronic Tracking Agreement in a form acceptable to Buyer. 

Eligible Bank: A bank selected by Seller and approved by Buyer in writing and authorized to conduct trust and other banking business in any
state in which Seller conducts operations. 
 ERISA: The Employee Retirement Income Security Act of 1974, as amended from time to time and any
successor statute. 
 ERISA Affiliate: Any person (as defined in section 3(9) of ERISA) that together with Seller or any of its subsidiaries
would be a member of the same “controlled group” within the meaning of Section 414(b), (m), (c) and (o) of the Internal Review Code of 1986, as amended. 

Executive Management: Chairman of the board of directors, chief executive officer, president, and chief financial officer. 

  
 A-5 








 Expanded Criteria Mortgage Loan: Unless defined otherwise in the Transactions Terms Letter, a first
lien mortgage loan underwritten to the same high credit standards as a Conventional Conforming Mortgage Loan except with respect to loan programs and parameters that may have broader specifications of eligibility. 

Event of Default: Any of the conditions or events set forth in Section 11.1. 

Expiration Date: The Expiration Date set forth in the Transactions Terms Letter for the expiration of this Agreement. 

Facility Fee: The non-refundable, annual commitment fee, as set forth in the Transactions Terms Letter. 

Fannie Mae: The Federal National Mortgage Association and any successor thereto. 

FHA: The Federal Housing Administration of the United States Department of Housing and Urban Development and any successor thereto. 

File Fee: That fee, as set forth in the Transactions Terms Letter or otherwise indicated on Buyer’s then current schedule of fees, payable
by Seller upon submission of the related Asset Data Record whether or not the Transaction is actually made. 
 Freddie Mac: The Federal Home
Loan Mortgage Corporation and any successor thereto. 
 Funding Draft Fee: That fee, as set forth in the Transactions Terms Letter or
otherwise indicated on Buyer’s then-current schedule of fees, payable by Seller for each payment of the Purchase Price by funding draft. 

GAAP: Generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and the statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as may be approved by a significant segment of the accounting profession and
that are applicable to the circumstances as of the date of determination. 
 Ginnie Mae: Government National Mortgage Association or any
successor thereto. 
 Government Mortgage Loan: Unless defined otherwise in the Transactions Terms Letter, a first lien mortgage loan, other
than a Nonperforming/Subperforming Mortgage Loan, that is (a) eligible for insurance by FHA and is so insured or is subject to a current binding and enforceable commitment for such insurance pursuant to the provisions of the National Housing
Act, as amended, and is otherwise eligible for inclusion in a Ginnie Mae mortgage-backed security pool; or (b) eligible to be guaranteed by the VA and is so guaranteed or is subject to a current binding and enforceable commitment for such
guarantee pursuant to the provisions of the Servicemen’s Readjustment Act, as amended, and is otherwise eligible for inclusion in a Ginnie Mae mortgage-backed security pool. 

Guarantee: A guarantee signed by a Guarantor, in a form acceptable to Buyer. 

Guarantors: Those guarantors as set forth in the Transactions Terms Letter. 

Handbook: The guide prepared by Buyer containing additional policies and procedures, as same may be amended from time to time. 

Haircut: With respect to each Transaction, if the Purchase Price is less than par, an amount equal to the difference between par and the
Purchase Price, which shall be considered a “settlement payment” as defined in Bankruptcy Code Section 741(8). 

  
 A-6 








 HELOC 1st Mortgages: Unless defined otherwise
in the Transactions Terms Letter, a first lien mortgage loan that is a home equity line of credit underwritten in accordance with Seller’s underwriting guidelines for HELOCs, as same have been approved by Buyer. 

HELOC Mortgage Loan: Unless defined otherwise in the Transactions Terms Letter, a home equity line of credit underwritten in accordance with
Seller’s underwriting guidelines for HELOCs, as same have been approved by Buyer. 
 HUD: The United States Department of Housing and
Urban Development or any successor thereto. 
 Insolvency Event: The occurrence of any of the following events: 

(a) such Person shall become insolvent or generally fail to pay, or admit in writing its inability to pay, its debts as they become due, or shall voluntarily
commence any proceeding or file any petition under any bankruptcy, insolvency or similar law or seeking dissolution, liquidation or reorganization or the appointment of a receiver, trustee, custodian, conservator or liquidator for itself or a
substantial portion of its property, assets or business or to effect a plan or other arrangement with its creditors, or shall file any answer admitting the jurisdiction of the court and the material allegations of an involuntary petition filed
against it in any bankruptcy, insolvency or similar proceeding, or shall be adjudicated bankrupt, or shall make a general assignment for the benefit of creditors, or such Person, or a substantial part of its property, assets or business, shall be
subject to, consent to or acquiesce in the appointment of a receiver, trustee, custodian, conservator or liquidator for itself or a substantial property, assets or business; 

(b) corporate action shall be taken by such Person for the purpose of effectuating any of the foregoing; 

(c) an order for relief shall be entered in a case under the Bankruptcy Code in which such Person is a debtor; or 

(d) involuntary proceedings or an involuntary petition shall be commenced or filed against such Person under any bankruptcy, insolvency or similar law or
seeking the dissolution, liquidation or reorganization of such Person or the appointment of a receiver, trustee, custodian, conservator or liquidator for such Person or of a substantial part of the property, assets or business of such Person, or any
writ, order, judgment, warrant of attachment, execution or similar process shall be issued or levied against a substantial part of the property, assets or business of such Person, and such proceeding or petition shall not be dismissed, or such
execution or similar process shall not be released, vacated or fully bonded, within sixty (60) days after commencement, filing or levy, as the case may be. 

Insurer: A private mortgage insurer, which is acceptable to Buyer in its sole and good faith discretion. 

lntercreditor Agreement: An agreement substantially in the form acceptable to Buyer. 

Irrevocable Closing Instructions: Closing instructions, including wire instructions, in the form of Exhibit B issued in connection with
funds disbursed for the funding of a Wet Mortgage Loan. 
 Jumbo Mortgage Loan: Unless defined otherwise in the Transactions Terms Letter, a
first lien mortgage loan underwritten to the same high standards as a Conventional Conforming Mortgage Loan except with respect to the original principal balance, which is greater than that permitted by the Agencies but less than one million
($1,000,000) dollars. 
 Key Personnel: Any employee, officer, director, agent or representative of Seller identified in the Transactions
Terms Letter as a Key Person. 
 Liquidity: If applicable, the cash and Cash Equivalents liquidity requirement of Seller as set forth in the
Transactions Terms Letter. 

  
 A-7 








 Margin: With respect to each Transaction, the pricing rate set forth in the Transactions Terms
Letter that shall be added to the Applicable Pricing Rate to determine the pricing rate for the Purchase Price. 
 Margin Call: A margin call,
as defined and described in Section 6.3. 
 Margin Deficit: A margin deficit, as defined and described in Section 6.3.

 Material and Adverse Change: A material and adverse change with respect to (i) the business, operations, properties or financial
condition of Seller or (ii) general market circumstances or conditions, including, without limitation, if any law, regulation, treaty or directive or any change therein or in the interpretation or application thereof, or any circumstance
affecting the London interbank market or the repurchase market for mortgage loans or mortgage-backed securities, in either case of (i) or (ii), as such material and adverse change is determined by Buyer in its sole and good faith discretion.

 Maximum Dwell Time: The maximum number of days a Purchased Mortgage Loan can be not repurchased by Seller before such Purchased Mortgage
Loan may be deemed to be a Noncompliant Mortgage Loan and with respect to a Noncompliant Mortgage Loan, the maximum number of days that a Purchased Mortgage Loan can be deemed to be a Noncompliant Mortgage Loan before such Noncompliant Mortgage Loan
may be deemed to be a Defective Mortgage Loan, all as set forth in the Transactions Terms Letter. 
 MERS: Mortgage Electronic
Registration Systems, Inc., a Delaware corporation, or any successor in interest thereto. 
 Mortgage: A first-lien or second-lien mortgage,
deed of trust, security deed or similar instrument on improved real property. 
 Mortgage-Backed Securities: Any security, including, without
limitation, a participation certificate, that is (a) guaranteed by Ginnie Mae that represents an interest in a pool of mortgages, deeds of trusts or other instruments creating a lien on real property; (b) issued by Fannie Mae or Freddie
Mac that represents interests in such a pool; or (c) privately placed and represents undivided interests in or otherwise supported by such a pool. 

Mortgage Loan: A Conventional Conforming Mortgage Loan, Government Mortgage Loan, Jumbo Mortgage Loan, Super Jumbo Mortgage Loan, Expanded
Criteria Mortgage Loan, Subprime Mortgage Loan, Closed-End Second Lien Mortgage Loan, HELOC Mortgage Loan or Nonperforming/Subperforming Mortgage Loan, which Mortgage Loan may be either a Dry Mortgage Loan or a Wet Mortgage Loan. 

Mortgage Loan Documents: With respect to each Purchased Mortgage Loan: 

(a) the original Mortgage Note evidencing the Mortgage Loan, endorsed by Seller in blank, with a complete chain from the originator to Seller; 

(b) an original assignment in blank, executed by Seller, for the Mortgage securing the Mortgage Note, in recordable form but unrecorded, with a complete chain
of intervening assignments from the originator to Seller; 
 (c) a certified or true copy of the Mortgage securing the Mortgage Note bearing evidence of the
recordation of such Mortgage with the appropriate governmental authority, or if such recording information is unavailable because the document has not yet come back from the recording office, then a copy of evidence that such original Mortgage was
sent out for recording by a Closing Agent; and 
 (d) an original or copy of the title insurance policy insuring the first lien or second lien position of
the Mortgage, as applicable, in at least the original principal amount of the related Mortgage Note and containing only those exceptions permitted by the Purchase Commitment or an unconditional commitment to issue such a title insurance policy. 


  
 A-8 








 Mortgage Loan File: With respect to each Mortgage Loan, that file that contains the Mortgage Loan
Documents and is delivered to Buyer or its Custodian. 
 Mortgage Note: A promissory note secured by a Mortgage and evidencing a Mortgage
Loan. 
 Mortgaged Property: The real property securing repayment of the debt evidenced by a Mortgage Note. 

Mortgagor: The obligor of a Mortgage Loan. 

Noncompliant Mortgage Loan: As of any date of determination, a Purchased Mortgage Loan that has been: 

(a) not repurchased within the Maximum Dwell Time permitted, given the type of Purchased Mortgage Loan, but less than the Maximum Dwell Time for Noncompliant
Mortgage Loans; 
 (b) rejected by the Approved Investor set forth in the related Purchase Commitment; or 

(c) determined to be ineligible for sale as a Purchased Mortgage Loan of the type originally stipulated. 

Noncompliant Mortgage Loan Fee: A one-time fee, as set forth in the Transactions Terms Letter or otherwise indicated on Buyer’s then
current schedule of fees, payable by Seller for each Purchased Mortgage Loan that is deemed to be a Noncompliant Mortgage Loan. 

Nonperforming/Subperforming Mortgage Loan: Unless defined otherwise in the Transactions Terms Letter, a first or second lien Mortgage Loan that
when originated qualified as a Conventional Conforming Mortgage Loan, Government Mortgage Loan, Expanded Criteria Mortgage Loan, Subprime Mortgage Loan, Closed-End Second Lien Mortgage Loan or HELOC Mortgage Loan, however, such Mortgage Loan has a
history of late payments during the past twelve months (the exact number permitted late payment to be determined by Buyer in its sole and good faith discretion) or is currently past due more than thirty (30) days. 

One Time Close Loan: Unless defined otherwise in the Transactions Terms Letter, a first lien mortgage loan underwritten to the same credit
standards as a Conventional Conforming Mortgage Loan, Expanded Criteria Mortgage Loan, Jumbo Mortgage Loans or Super Jumbo Mortgage Loan and has the additional feature of combining a construction loan advance with a conversion provision to permanent
financing in a single loan transaction. 
 Other Mortgage Loan Documents: In addition to the Mortgage Loan Documents, the following:
(i) the original recorded Mortgage, if not included in the Mortgage Loan Documents; (ii) the original policy of mortgagee’s title insurance or unexpired commitment for a policy of mortgagee’s title insurance, if not included in
the Mortgage Loan Documents; (iii) the original Closing Protection Letter; (iv) the original Purchase Commitment; (v) the original FHA certificate of insurance or commitment to insure, the VA certificate of guaranty or commitment to
guaranty and the private mortgage insurer’s certificate or commitment to insure, as applicable; (vi) the survey, flood certificate, hazard insurance policy and flood insurance policy, as applicable; (vii) the original of any
assumption, modification, written assurance or substitution of liability agreement, if any; (viii) copy of each instrument necessary to complete identification of any exception set forth in the exception schedule in the title policy;
(ix) the loan application; (x) verification of employment and income, if applicable; (xi) verification of source and amount of downpayment; (xii) credit report on Mortgagor; (xiii) appraisal of Mortgaged Property;
(xiv) the original executed disclosure statement; (xv) Tax receipts, insurance premium receipts, ledger sheets, payment records, insurance claim files and correspondence, current and historical computerized data files, underwriting
standards used for origination and all other related papers and records; and (xvi) all other documents relating to the Purchased Mortgage Loan. 

Over/Under Account: That account maintained by Buyer, as described in Section 3.5. 

  
 A-9 








 Payment Date: The fifth
(5th) day of each month, or if such date is not a Business Day, the Business Day immediately preceding the fifth (5th) day of the
month; provided, however, Buyer may change the Payment Date from time to time upon thirty (30) days prior notice to Seller. 
 Person:
Includes natural persons, corporations, limited partnerships, general partnerships, limited liability companies, joint stock companies, joint ventures, associations, companies, trusts, banks, trust companies, land trusts, business trusts or other
organizations, whether or not legal entities, and governments and agencies and political subdivisions thereof. 
 Personal Identification Number or
PIN: An electronic identification number, unique to Seller, consisting of any combination of symbols, codes, letters or numerals. 

Plan: Any multiemployer plan or single-employer plan as defined in section 4001 of ERISA, that is maintained and contributed to by (or to
which there is an obligation to contribute of), or at any time during the five (5) calendar years preceding the date of this Agreement was maintained or contributed to by (or to which there is an obligation to contribute of), Seller or by a
subsidiary of Seller or an ERISA Affiliate. 
 Potential Default: The occurrence of any event or existence of any condition that, but
for the giving of notice, the lapse of time, or both, would constitute an Event of Default. 
 Power of Attorney: That certain power of
attorney attached hereto as Exhibit H. 
 Principal Agreements: This Agreement, the Transactions Terms Letter, the Electronic
Transfer Agreement, any Servicing Agreement, the Guarantee(s), if applicable, and all other documents and instruments evidencing the Transactions, as same may from time to time be supplemented, modified or amended, and any other agreement entered
into between Buyer and Seller in connection herewith or therewith. 
 Proceeds: Whatever is receivable or received when Purchased
Assets or proceeds is sold, collected, exchanged or otherwise disposed of, whether such disposition is voluntary or involuntary, and includes, without limitation, all rights to payment, including return premiums, with respect to any insurance
relating thereto. 
 Property Charges: All taxes, fees, assessments, water, sewer and municipal charges (general or special) and all
insurance premiums, leasehold payments or ground rents. 
 Purchase Advice: In connection with each wire transfer to be made to Buyer
by Seller or an Approved Investor, a written or electronic notification setting forth (a) the loan number assigned by Buyer or last name of the Mortgagor for each Mortgage Loan that is related to the Transaction in connection with which a
payment is being made; (b) the amount of the wire transfer to be applied in the Transaction; and (c) the total amount of the wire. 

Purchase Commitment: A trade ticket or other written commitment, in form and substance satisfactory to Buyer, issued in favor of Seller
by an Approved Investor pursuant to which that Approved Investor commits to purchase one or more Purchased Mortgage Loans, along with the related correspondent or whole loan purchase agreement by and between Seller and the Approved Investor, in form
and substance satisfactory to Buyer, governing the terms and conditions of any such purchases. 
 Purchase Date: The date on which
Buyer purchases a Purchased Mortgage Loan from Seller. If the Purchase Price is made by wire transfer, the Purchase Date shall be the date such funds are wired. If the Purchase Price is made by a cashiers check, the Purchase Date shall be the date
such check is issued by the bank. If the Purchase Price is paid by a funding draft, the Purchase Date shall be the date that the draft is posted by the bank on which the draft is drawn. 

  
 A-10 








 Purchase Price: The price at which each Purchased Mortgage Loan is transferred
by Seller to Buyer which shall be equal to the lesser of (A) the unpaid principal balance of the Purchased Mortgage Loan multiplied by the lesser of (i) the applicable Type Purchase Price Percentage (ii) par, (iii) the purchase
price percentage committed by the related Approved Investor, if applicable or (iv) the Market Value purchase price percentage of such Mortgage Loan on the Purchase Date or (B) ninety eight percent (98%) multiplied by the lesser of
(i) the purchase price committed by the related Approved Investor, if applicable or (ii) the Market Value of such Mortgage Loan. 

Purchased Assets: All now existing and hereafter arising right, title and interest of Seller in, under and to the following: 

(a) all Mortgage Loans, now owned and hereafter acquired, including all Mortgage Notes and Mortgages evidencing such Mortgage Loans and the related Mortgage
Loan Documents, for which a Transaction has been entered into between Buyer and Seller hereunder and for with the Repurchase Price has not been paid in full and all Mortgage Loans, including all Mortgage Notes and Mortgages evidencing such Mortgage
Loans and the related Mortgage Loan Documents, which, from time to time, are delivered, or caused to be delivered, to Buyer (including delivery to a custodian or other third party on behalf of Buyer) as additional security for the performance of
Seller’s obligations hereunder; 
 (b) all Mortgage-Backed Securities, now owned or hereafter acquired by Seller, that are supported by any Mortgage
Loan constituting Purchased Assets hereunder, all right to the payment of monies in non-cash distributions on account thereof and all new, substituted and additional securities at any time issued with respect thereto; 

(c) all rights of Seller under all Purchase Commitments, now existing and hereafter arising, covering any part of the Purchased Assets, all rights to deliver
such Mortgage Loans and Mortgage-Backed Securities to permanent investors and other purchasers pursuant thereto and all Proceeds resulting from the disposition of such Purchased Assets thereto; 

(d) all now existing and hereafter established accounts maintained with broker-dealers by Seller for the purpose of carrying out transactions under Purchase
Commitments relating to any part of the Purchased Assets; 
 (e) all now existing and hereafter arising rights of Seller to service, administer and/or
collect on the Mortgage Loans included as Purchased Assets hereunder and any and all rights to the payment of monies on account thereof; 
 (f) all now
existing and hereafter arising accounts, contract rights and general intangibles constituting or relating to any of the Purchased Assets; 
 (g) all
mortgage insurance and all commitments issued by Insurers to insure or guaranty any Mortgage Loans included as Purchased Assets, including, without limitation, the right to receive all insurance proceeds and condemnation awards that may be payable
in respect of the premises encumbered by any Mortgage; and all other documents or instruments delivered to Buyer in respect of the Mortgage Loans included as Purchased Assets; 

(h) All documents, files, surveys, certificates, correspondence, appraisals, computer programs, tapes, discs, cards, accounting records and other information
and data of Seller relating to Mortgage Loans included as Purchased Assets; 
 (i) All rights, but not any obligations or liabilities, of Seller with
respect to the Approved Investors; 
 (j) All property of Seller, in any form or capacity now or at any time hereafter in the possession or control of
Buyer, including, without limitation, all deposit accounts and any funds at any time held therein, into which Proceeds of the foregoing Purchased Assets are at any time deposited; 

  
 A-11 








 (k) All products and Proceeds of the foregoing Purchased Assets; and 

(I) Any funds of Seller at any time deposited or held in the Over/Under Account. 

Purchased Mortgage Loan: A Mortgage Loan that has been purchased by Buyer from Seller in connection with a Transaction and which has not
been repurchased by Seller hereunder. 
 Reportable Event: An event described in Section 4043(b) of ERISA with respect to a Plan
as to which the thirty (30) days notice requirement has not been waived by the Pension Benefit Guaranty Corporation. 
 Repurchase Acceleration
Event: Any of the conditions or events set forth in Section 4.2. 
 Repurchase Date: The date on which
Seller is to repurchase a Purchased Mortgage Loan subject to a Transaction from Buyer, as specified in the related Transactions Terms Letter and/or Asset Data Record, or if not so specified, the date identified to Buyer by Seller as the date that
the related Purchased Mortgage Loan is to be sold pursuant to a Purchase Commitment; provided, however, that if the Repurchase Date is not a date within the Maximum Dwell Time, Buyer may, at its discretion, deem such Purchased Mortgage Loan a
Noncompliant Mortgage Loan and Buyer may pursue any rights and remedies accorded Buyer hereunder as a result thereof, including, without limitation, charging Seller any applicable fees as a result thereof. The Repurchase Date for each Purchased
Mortgage Loan shall in no event occur later than one year after the Purchase Date of such Purchased Mortgage Loan. 
 Repurchase
Price: The price at which a Purchased Mortgage Loan is to be transferred from Buyer or its designee to Seller upon termination of a Transaction, which shall be determined as the sum of (i) the Purchase Price,
(ii) any applicable fees owed by Seller in connection with the Purchased Mortgage Loan and (iii) the price differential due on such Purchase Price pursuant to Section 2.6 as of the date of such determination. 

Repurchase Transaction: A repurchase transaction, as defined and described in Section 6.6. 

Servicer: BAC Home Loans Servicing LP, or such other entity responsible for servicing of the Purchased Mortgage Loans,
which is acceptable to Buyer and approved by Buyer in writing, or any successor or permitted assigns. 
 Servicer Notice:
The notice acknowledged by the Servicer substantially in the form of Exhibit K hereto. 
 Servicing Agreement: If the
Purchased Mortgage Loans are serviced by any third party servicer, the agreement with that third party in form and substance acceptable to Buyer. 

Shipping Fee: That fee, as set forth in the Transactions Terms Letter or otherwise indicated on Buyer’s then current schedule of
fees, payable by Seller to Buyer for each Mortgage Loan File, or portion thereof, Buyer delivers to Seller, an Approved Investor or other designee. 

Standard Status: As of any date of determination, the Purchased Mortgage Loan has been subject to a Transaction for less than the Maximum
Dwell Time and is not a Noncompliant Mortgage Loan or a Defective Mortgage Loan. 
 Subordinated Debt: Debt of Seller that has been
subordinated to Buyer as provided in this Agreement or as otherwise approved by Buyer. 
 Successor Servicer: The subservicer of the
Purchased Mortgage Loans appointed by Buyer as described in Section 6.2(h) of this Agreement. 
 Super Jumbo Mortgage Loan:
Unless defined otherwise in the Transactions Terms Letter, a first lien mortgage loan underwritten to the same high standards as a Conventional Conforming Mortgage Loan except with respect to the original principal balance, which is greater than
one million ($1,000,000) dollars but less than the one million five hundred thousand ($1,500,000) dollars. 

  
 A-12 








 Super Jumbo Plus: Unless defined otherwise in the Transactions Terms Letter, a first lien
mortgage loan underwritten to the same high standards as a Conventional Conforming Mortgage Loan except with respect to the original principal balance, which is greater that one million five hundred thousand ($1,500,000) dollars. 

Tangible Net Worth: With respect to any Person at any date, the excess of the total assets over total liabilities of such Person on such
date, each to be determined in accordance with GAAP consistent with those applied in the preparation of Seller’s financial statements less the sum of the following (without duplication): (a) the book value of all investments in
non-consolidated subsidiaries, and (b) any other assets of Seller and consolidated subsidiaries that would be treated as intangibles under GAAP including, without limitation, good will, research and development costs, trademarks, trade names,
copyrights, patents, rights to refunds and indemnification and unamortized debt discount and expenses; provided further that, to the extent not already excluded, there shall be excluded from Tangible Net Worth, those assets of any Person which, if
such Person were a HUD mortgagee, would be deemed by HUD to be non-acceptable in calculating adjusted net worth in accordance with its requirements in effect as of such date, as such requirements appear in the “Audit Guide for Use by
Independent Public Accountants in Audits of HUD-Approved Nonsupervised Mortgagees, Loan Correspondents and Coinsuring Mortgagees” or any successor or replacement audit guide published by HUD. Notwithstanding the foregoing, servicing rights
shall be included in the calculation of total assets. 
 Total Liabilities: The sum of (a) the total liabilities of Seller on any
given date of determination, to be determined in accordance with GAAP consistent with those applied in the preparation of Seller’s financial statements, plus (b) to the extent not already included under GAAP, the total aggregate
outstanding amount owed by Seller under any repurchase, refinance or other similar credit arrangements, plus (c) to the extent not already included under GAAP, any “off balance sheet” repurchase, refinance or other similar credit
arrangements, less (d) the amount of the “Credit Off Feature,” if any, as set forth in the Transactions Terms Letter less (e) if applicable, the aggregate unpaid principal balance of the outstanding Loans sold by Seller to Buyer
under the Early Purchase Program Addendum (the “EPP Addendum”) to Loan Purchase Agreement by and between Seller and Buyer for which the Review Period (as defined in the EPP Addendum) has not been completed. 

Transaction: A transaction between Buyer and Seller as contemplated under this Agreement. 

Transaction Request Deadline: That time, as set forth in the Transactions Terms Letter, by which Seller must submit to Buyer certain
documents in order to initiate a Transaction. 
 Transaction Requirements: Those terms and conditions, as set forth in the Transactions
Terms Letter, applicable to a specific type of Purchased Mortgage Loan. 
 Transactions Terms Letter: The document executed by Buyer
and Seller, referencing this Agreement and setting forth certain specific terms, and any additional terms, with respect to this Agreement. 
 Type
Purchase Price Percentage: With respect to each type of Purchased Mortgage Loan that corresponds to the Type, the corresponding purchase price percentage, as set forth in the Transactions Terms Letter. 

Type Margin: With respect to each type of Purchased Mortgage Loan that corresponds to the Type, the corresponding annual rate of interest
that shall be added to the Applicable Pricing Rate to determine the annual rate of interest for the related Purchase Price, as set forth in the Transactions Terms Letter. 

Type Sublimit: Any of the applicable Type Sublimits, as set forth in the Transactions Terms Letter. 

  
 A-13 








 Underwriter Approval: Written evidence, in form and substance acceptable to Buyer, that a
Purchased Mortgage Loan has been underwritten to the satisfaction of the Approved Investor issuing the applicable Purchase Commitment. 
 Unused
Facility Fee: A fee, as set forth in the Transactions Terms Letter or otherwise indicated on Buyer’s then current schedule of fees, payable by Seller quarterly in arrears based upon the unused portion of the Aggregate Transaction
Limit; provided, however, that no fee shall be due if the average difference between the Aggregate Transaction Limit and actual outstanding principal amount of all Transactions, calculated on a daily basis, during such quarter is less than that
percent of the Aggregate Transaction Limit set forth in the Transactions Terms Letter. 
 VA: The Department of Veterans Affairs and
any successor thereto. 
 Warehouse Credit: The aggregate amount of credit, committed and uncommitted, available to Seller through
warehouse lines of credit, repurchase facilities or similar mortgage finance arrangements. 
 Wet Deficiency Fee: That fee, as set
forth in the Transactions Terms Letter or otherwise indicated on Buyer’s then current schedule of fees, payable by Seller for each calendar day that Seller fails to deliver to Buyer or its Custodian the Mortgage Loan Documents relating to any
Wet Mortgage Loan purchased by Buyer following expiration of the Wet Mortgage Loans Maximum Dwell Time. 
 Wet Mortgage Loan: A
Mortgage Loan as to which Buyer purchases from Seller by delivering funds to the applicable Closing Agent prior to receipt by Buyer or its Custodian of the related Mortgage Loan Documents, subject to Seller’s obligation to deliver the related
Mortgage Loan Documents within the Wet Mortgage Loans Maximum Dwell Time. 
 Wet Mortgage Loans Maximum Dwell Time: That period of
time, as set forth in the Transactions Terms Letter, by which Seller must deliver to Buyer or its designee the Mortgage Loan Documents for a Wet Mortgage Loan. 

Wet Mortgage Loans Sublimit: The maximum aggregate principal amount of Purchased Mortgage Loans that may be Wet Mortgage Loans at any
time, as set forth in the Transactions Terms Letter. 
 Wire Transfer Fee: That fee, as set forth in the Transactions Terms Letter or
otherwise indicated on Buyer’s then current schedule of fees, payable by Seller for each payment of the Purchase Price by wire transfer or for any payment (including the Repurchase Price) received by Buyer from Seller or its Approved Investor.


  
 A-14 








 [***] Confidential portions of this document have been redacted and filed separately with the
Commission. 
 EXHIBIT B 

IRREVOCABLE CLOSING INSTRUCTIONS 

December 23, 2009 
  

			
	  
	 	(“Closing Agent”)
	
	  

	
	  



 

			
	Dear	 	  

		
	Re:	 	Irrevocable Closing Instructions

  

					
	Closing Protection Letter Issued By, if applicable:	 	  
	 	

 Ladies and Gentlemen: 
 This
letter is being sent in accordance with that Master Repurchase Agreement dated as of December 23, 2009 (the “Agreement”) between LoanDepot.com, LLC (“Seller”) and Bank of America, N.A. (“Buyer”), the terms of which
do not affect Closing Agent except as set forth herein. 
 Pursuant to the Agreement, you have been identified as either: 

 

	•	 	the title insurer to close and provide title insurance on certain mortgage loans made by Seller; or 

  

	•	 	the closing agent to close and fund certain mortgage loans made by Seller and covered by the above referenced closing protection letter (the “Mortgage Loans”). 


From time to time, Buyer will wire to you, for the account of Seller, funds requested by Seller under the terms of the Agreement to be used by you for the
purpose of funding such Mortgage Loan(s) and for no other purpose. Notwithstanding anything to the contrary contained herein, you are not to distribute any of such funds to Seller. You must immediately return the funds to Buyer at the following
account if one of the following conditions occurs: 
  

	•	 	You do not close any Mortgage Loan within forty-eight (48) hours of the time you receive the applicable funds; or 

  

	•	 	You receive funds for a Mortgage Loan for which you have not been instructed by Seller to (a) obtain title insurance from the title insurance company specified in the above referenced closing protection letter or
(b) underwrite the title insurance. 

  

			
	Bank:	  	Bank of America, N.A.
	ABA No.:	  	[***]
	Account No.:	  	[***]
	Credit:	  	Warehouse Lending – Payoff Account
	Reference:	  	LoanDepot.com, LLC

 If the Mortgage Loan Documents (as described below) have not been delivered to Seller prior to the funding of the Transaction,
within forty eight (48) hours of closing any Mortgage Loan, unless otherwise instructed by Buyer, you must deliver to Seller, the following Mortgage Loan Documents: 
  

	 	(a)	the original mortgage note evidencing the Mortgage Loan, endorsed by Seller in blank, with a complete chain from the originator to Seller; 


  
 B-1 









	 	(b)	if in your possession, an original assignment in blank executed by Seller for the mortgage or deed of trust securing the mortgage note, in recordable form but unrecorded, with a complete chain of intervening assignments
from the originator to Seller; 

  

	 	(c)	a certified copy of the executed mortgage or deed of trust securing the mortgage note; and 

  

	 	(d)	an original or copy of the title insurance policy insuring the first lien or second lien position of the mortgage or deed of trust, as applicable, in at least the original principal amount of the related mortgage note
and containing only those exceptions permitted by the purchase commitment, as set forth in the final closing instructions referred to below, or an unconditional commitment to issue such a title insurance policy, or a preliminary report and
instructions received from Seller relating to the issuance of such a title insurance policy. 

 With respect to each Mortgage Loan for which
you act as Closing Agent, Seller will deliver to you final closing instructions specific to such Mortgage Loan. In the event that the terms of the final closing instructions contradict the terms of these irrevocable closing instructions, the terms
of these irrevocable closing instructions shall govern. Permission to change the scheduled closing date for any Mortgage Loan beyond the time permitted herein or permission to otherwise deviate from these irrevocable closing instructions must be
furnished to you in a writing signed by Buyer and Seller. 
 By your participation in the closing and funding of a Mortgage Loan as Closing Agent, you agree
to act as Buyer’s bailee with respect to such Mortgage Loan and the Mortgage Loan Documents referenced above and you thereby acknowledge your responsibility to Buyer as holder of an interest in such Mortgage Loan and to care for and protect
Buyer’s interest in such Mortgage Loan. Facsimile signatures on these instructions shall be deemed valid and binding to the same extent as the original. 
  

									
	Sincerely,	 		 		 		 	


									
			
	Bank of America, N.A.	 		 	LoanDepot.com, LLC
					
	By:	 		 		 	By:	 	




		 	  
	 		 		 	  

					
	Name:	 	  
	 		 	Name:	 	 Anthony Hsieh

					
	Title:	 	  
	 		 	Title:	 	 CEO



  
 B-2 








 EXHIBITC 

SECRETARY’S CERTIFICATE 
 I, John Lee, am
the duly elected Secretary of LoanDepot.com, LLC (“Company”), and I hereby certify that: 
  

	1.	Each of the persons listed below has been duly elected to and now holds the office of the Company set forth opposite his or her name and is currently serving, in such capacity, and the signature of each such person set
forth opposite his or her title is his or her true and genuine signature: 

  

					
	 Name
	  	 Office
	  	 Signature

			
	Anthony Hsieh	  	CEO	  	




		  	  
	  	  

			
	Tomo Yebisu	  	President	  	




		  	  
	  	  

			
	John Lee	  	CFO	  	




		  	  
	  	  

			
	Jim Svinth	  	EVP	  	




		  	  
	  	  


  

	2.	Attached hereto as Exhibit A is a true and complete copy of the Articles of Incorporation of the Company (or its equivalent if the Company is not a corporation), as in full force and effect. No amendment or other
document relating to or affecting the Articles of Incorporation (or its equivalent) has been filed in the office of the Secretary of State of incorporation or formation and no action has been taken by the Company or its shareholders, directors or
officers in contemplation of the filing of any such amendment or other documents and no proceedings therefore have occurred; 

  

	3.	Attached hereto as Exhibit B is a true and complete copy of the By-laws of the Company (or its equivalent if the Company is not a corporation), as in full force and effect, and such By-laws (or its equivalent) have not
been amended, except for amendments included in the copy attached hereto; and 

  

	4.	Attached hereto as Exhibit C is true and complete copy of the resolutions duly and validly adopted either at a special or regular meeting or by unanimous consent that apply to the Master Repurchase Agreement between the
Company and Bank of America, N.A., and such resolutions have not been amended, modified or rescinded in any respect and remain in full force and effect without modification or amendment as of the date hereof. 


 

									
	Date:	 	12/28/09	 		 	By:	 	 





		 	  
	 		 		 	  

		 		 		 		 	Secretary


  
 C-1 








 ACTION BY WRITTEN CONSENT 

OF THE SOLE MANAGER 
 OF 

loanDepot.com, LLC 

December 28,2009 
 The
undersigned, being the sole manager (the “Manager”) of loanDepot.com, LLC, a Delaware limited liability company (the “Company”), hereby adopts the following resolutions by written consent pursuant to
Section 18-404(d) of the Limited Liability Company Act of Delaware and the Company’s Limited Liability Company Agreement, which authorize the Manager to so act: 

Master Repurchase Agreement 
 WHEREAS, the
Company desires to enter into mortgage loan purchase transactions (the “Transactions”) in an aggregate amount not to exceed Thirty-Five Million Dollars ($35,000,000) with Bank of America, N.A. (“Buyer”) pursuant to
a Master Repurchase Agreement substantially in the form attached hereto as Exhibit A (the “Agreement”); and 

WHEREAS, it is deemed to be advisable and in the best interests of the Company and its members to approve the Agreement and to consummate the
transactions contemplated thereby. 
 NOW, THEREFORE, IT IS RESOLVED BY THE MANAGER THAT: 

1. Company is hereby authorized and directed to enter into and execute each of the following documents: 

(a) the Agreement between Company and Buyer; and 

(b) any and all other agreements and documents in connection with the Transactions, 

2. Any one of the following officers are separately and independently authorized and directed to execute and deliver the Agreement and any and
all other agreements and documents related to the Transactions, and to do any and all things which he or she may deem necessary or desirable in connection with the Transactions, including approving, executing and delivering any amendments or
modifications to the Agreement. 
  

			
	 Name/Title
	  	 Specimen Signature

		
	Anthony Hsieh, Chief Executive Officer	  	




		  	  

		
	John Lee, Chief Financial Officer and Assistant Secretary	  	




		  	  

		
	Tsutomo Yebisu, President	  	




		  	  

		
	Jim Svinth, Executive Vice President	  	




		  	  



  
 -1- 








 3. Any one of the following officers, directors and/or employees is separately and independently
authorized to take the following actions in connection with the Agreement and Transactions: (a) request Transactions; (b) sign receipts acknowledging delivery of funds and documents from Buyer; (c) request and effect transfers of
funds; and (d) ship and release documents to Buyer: 
  

					
	 Name/Title
	  	 Specimen Signature
	  	 Restrictions (if any)

			
	Anthony Hsieh, Chief Executive Officer	  	



	  	
		  	  
	  	  

			
	John Lee, Chief Financial Officer and Assistant Secretary	  	



	  	
		  	  
	  	  

			
	Tsutomo Yebisu, President	  	



	  	
		  	  
	  	  

			
	Jim Svinth, Executive Vice President	  	



	  	
		  	  
	  	  


 4. The employees of Buyer are hereby appointed as assistant secretaries and vice presidents of Seller, and, as
such, are authorized to, in the name of Seller, do any of the following: 
 (a) to receive, endorse and collect all checks made payable to
the order of Seller representing any payment on account of the Purchased Assets (as defined in the Agreement); 
 (b) to assign or endorse
any mortgage, deed of trust, promissory note or other instrument relating to the Purchased Assets; 
 (c) to correct any assignment,
mortgage, deed of trust or promissory note or other instrument relating to the Purchased Assets, including, without limitation, unendorsing and re-endorsing a promissory note to another investor; 

(d) to complete and execute lost note affidavits or other lost document affidavits relating to the Purchased Assets; 

(e) to issue title requests and instructions relating to the Purchased Assets; 

  
 -2- 








 (f) to give notice to any individual or entity of its interest in the Purchased Assets under the
Agreement; and 
 (g) to service and administer the Purchased Assets, including, without limitation, the receipt and collection of all sums
payable in respect of the Purchased Assets. 
 Omnibus Resolutions 

NOW, THEREFORE, IT IS RESOLVED BY THE MANAGER THAT, that any and all prior actions taken by the Manager or officers in connection therewith are
hereby confirmed, ratified and approved; 
 RESOLVED FURTHER, that all acts and things previously done by the Manager or officers of the
Company, on or prior to the date hereof, in the name and on behalf of the Company in connection with the foregoing resolutions are in all respects authorized, ratified, approved, confirmed and adopted as the acts and deeds by and on behalf of the
Company; and 
 RESOLVED FURTHER, that this written consent shall be filed with the Minutes of the proceedings of the Manager. 

[Signature Page Follows] 

  
 -3- 








 IN WITNESS WHEREOF, the undersigned, constituting the sole Manager of the Company, has executed
this written consent as of the date first written above. 
  

	
	




	ANTHONY HSIEH



  
 [Signature Page to
Action by Written Consent of the Sole Manager of loanDepot.com, LLC] 








 Exhibit A 

Agreement 
 [Attached] 

  
 Exhibit A 








 ACTION BY WRITTEN CONSENT 

OF THE SOLE MANAGER 
 OF 

loanDepot.com, LLC 

December 28, 2009 
 The
undersigned, being the sole manager (the “Manager”) of loanDepot.com, LLC, a Delaware limited liability company (the “Company”), hereby adopts the following resolutions by written consent pursuant to
Section 18-404(d) of the Limited Liability Company Act of Delaware and the Company’s Limited Liability Company Agreement, which authorize the Manager to so act: 

Master Repurchase Agreement 
 WHEREAS, the
Company desires to enter into mortgage loan purchase transactions (the “Transactions”) in an aggregate amount not to exceed Thirty-Five Million Dollars ($35,000,000) with Bank of America, N.A. (“Buyer”) pursuant to
a Master Repurchase Agreement substantially in the form attached hereto as Exhibit A (the “Agreement”); and 

WHEREAS, it is deemed to be advisable and in the best interests of the Company and its members to approve the Agreement and to consummate the
transactions contemplated thereby. 
 NOW, THEREFORE, IT IS RESOLVED BY THE MANAGER THAT: 

1. Company is hereby authorized and directed to enter into and execute each of the following documents: 

(a) the Agreement between Company and Buyer; and 

(b) any and all other agreements and documents in connection with the Transactions, 

2. Any one of the following officers are separately and independently authorized and directed to execute and deliver the Agreement and any and
all other agreements and documents related to the Transactions, and to do any and all things which he or she may deem necessary or desirable in connection with the Transactions, including approving, executing and delivering any amendments or
modifications to the Agreement. 
  

			
	 Name/Title
	  	 Specimen Signature

		
	Anthony Hsieh, Chief Executive Officer	  	




		  	  

		
	John Lee, Chief Financial Officer and Assistant Secretary	  	




		  	  

		
	Tsutomo Yebisu, President	  	




		  	  

		
	Jim Svinth, Executive Vice President	  	




		  	  



  
 -1- 








 3. Any one of the following officers, directors and/or employees is separately and independently
authorized to take the following actions in connection with the Agreement and Transactions: (a) request Transactions; (b) sign receipts acknowledging delivery of funds and documents from Buyer; (c) request and effect transfers of
funds; and (d) ship and release documents to Buyer: 
  

					
	 Name/Title
	  	 Specimen Signature
	    	 Restrictions (if any)

			
	Anthony Hsieh, Chief Executive Officer	  	



	    	
		  	  
	    	  

			
	John Lee, Chief Financial Officer and Assistant Secretary	  	



	    	
		  	  
	    	  

			
	Tsutomo Yebisu, President	  	



	    	
		  	  
	    	  

			
	Jim Svinth, Executive Vice President	  	



	    	
		  	  
	    	  


 4. The employees of Buyer are hereby appointed as assistant secretaries and vice presidents of Seller, and, as
such, are authorized to, in the name of Seller, do any of the following: 
 (a) to receive, endorse and collect all checks made payable to
the order of Seller representing any payment on account of the Purchased Assets (as defined in the Agreement); 
 (b) to assign or endorse
any mortgage, deed of trust, promissory note or other instrument relating to the Purchased Assets; 
 (c) to correct any assignment,
mortgage, deed of trust or promissory note or other instrument relating to the Purchased Assets, including, without limitation, unendorsing and re-endorsing a promissory note to another investor; 

(d) to complete and execute lost note affidavits or other lost document affidavits relating to the Purchased Assets; 

(e) to issue title requests and instructions relating to the Purchased Assets; 

  
 -2- 








 (f) to give notice to any individual or entity of its interest in the Purchased Assets under the
Agreement; and 
 (g) to service and administer the Purchased Assets, including, without limitation, the receipt and collection of all sums
payable in respect of the Purchased Assets. 
 Omnibus Resolutions 

NOW, THEREFORE, IT IS RESOLVED BY THE MANAGER THAT, that any and all prior actions taken by the Manager or officers in connection therewith are
hereby confirmed, ratified and approved; 
 RESOLVED FURTHER, that all acts and things previously done by the Manager or officers of the
Company, on or prior to the date hereof, in the name and on behalf of the Company in connection with the foregoing resolutions are in all respects authorized, ratified, approved, confirmed and adopted as the acts and deeds by and on behalf of the
Company; and 
 RESOLVED FURTHER, that this written consent shall be filed with the Minutes of the proceedings of the Manager. 

[Signature Page Follows] 

  
 -3- 








 IN WITNESS WHEREOF, the undersigned, constituting the sole Manager of the Company, has executed
this written consent as of the date first written above. 
  

	
	




	  

	ANTHONY HSIEH



  
 [Signature Page to
Action by Written Consent of the Sole Manager of loanDepot.com, LLC] 








 Exhibit A 

Agreement 
 [Attached] 

  
 Exhibit A 








 EXHIBIT E 

OFFICER’S CERTIFICATE 
 I, Anthony Hsieh,
the duly elected CEO of LoanDepot.com, LLC (“Seller”), do hereby certify as follows: 
  

	1.	The representations and warranties made by Seller under the Principal Agreements (as defined in the Master Repurchase Agreement dated as of December 23, 2009 (the “Agreement”) between Seller and Bank of
America, N.A. (“Buyer”) are accurate and true on and as of the date hereof with the same effect as though such representations and warranties had been made on and as of the date hereof. 


 

	2.	Seller is in compliance with all of the terms and provisions set forth in the Principal Agreements on its part to be performed and observed, and no Event of Default or Potential Default (as defined in the Agreement) has
occurred and is continuing. 

  

	3.	Since 12/28/09, no material change in the Executive Management (as defined in the Agreement), business, assets or financial or other condition of Seller and its consolidated Subsidiaries (as defined in the Agreement)
taken as a whole has occurred. 

  

	4.	All funds required under the Agreement to be deposited and segregated in the Custodial Account have been so deposited and segregated. 


IN WITNESS WHEREOF, the undersigned has hereunto signed his/her name on 12/28/09. 

 

			
	By:	 	




		 	  

	Name:	 	 Anthony Hsieh

	Title:	 	 CEO




  
 E-1 








 EXHIBIT F 

ASSIGNMENT OF CLOSING PROTECTION LETTER 

LoanDepot.com, LLC (“Assignor”) declares that for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, it
does hereby convey, transfer, assign, deliver and give to Assignee, and hereby expressly subrogates Bank of America, N.A. (“Assignee”) unto, all of Assignor’s claims, demands, rights and causes of action, past, present or future, that
Assignor has for loss or damage covered by the closing protection letter issued by                     (Title Company) attached hereto (“Closing
Protection Letter”). Such rights being assigned by Assignor hereunder include, without limitation, the right to demand, sue, collect, receive, protect, preserve and enforce performance under the Closing Protection Letter. Assignee shall succeed
to all rights of recovery of Assignor under the Closing Protection Letter and Assignor shall execute such instruments and documents necessary and proper to further secure such rights to Assignee and shall not act in any manner hereafter to prejudice
or impair the rights of Assignee. Assignor hereby grants Assignee an irrevocable mandate and power of attorney coupled with an interest with full power of substitution to transact this act of assignment and subrogation. 

IN WITNESS WHEREOF, the Assignor has caused this assignment to be duly executed as of December 23, 2009. 

 

			
	LoanDepot.com, LLC
		
	By:	 	




		 	  

	Name:	 	 Anthony Hsieh

	Title:	 	 CEO



  
 F-1 








 EXHIBIT G 

ASSIGNMENT OF FIDELITY BOND AND ERRORS AND OMISSION POLICY 

LoanDepot.com, LLC (“Assignor”) declares that for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, it
does hereby convey, transfer, assign, deliver and give to Assignee, and hereby expressly subrogates Bank of America, N.A. (“Assignee”) unto, all of Assignor’s claims, demands, rights and causes of action, past, present or future, that
Assignor has for loss or damage covered by Assignor’s fidelity bond and errors and omission policy (collectively, the “Policy”). Such rights being assigned by Assignor hereunder include, without limitation, the right to demand, sue,
collect, receive, protect, preserve and enforce performance under the Policy. Assignee shall succeed to all rights of recovery of Assignor under the Policy and Assignor shall execute such instruments and documents necessary and proper to further
secure such rights to Assignee and shall not act in any manner hereafter to prejudice or impair the rights of Assignee. Assignor hereby grants Assignee an irrevocable mandate and power of attorney coupled with an interest with full power of
substitution to transact this act of assignment and subrogation. 
 IN WITNESS WHEREOF, the Assignor has caused this assignment to be duly executed as of
December 23, 2009. 
  

			
	LoanDepot.com, LLC
		
	By:	 	




		 	  

	Name:	 	 John Lee

	Title:	 	 CFO



  
 G-1 








 EXHIBIT H 

FORM OF POWER OF ATTORNEY 
 KNOW ALL MEN BY
THESE PRESENTS: 
 WHEREAS, Bank of America, N.A. (“Buyer”) and LoanDepot.com, LLC (“Seller”) have entered into the
Master Repurchase Agreement, dated as of December 23, 2009 (the “Agreement”), pursuant to which Buyer has agreed to purchase from Seller certain mortgage loans from time to time, subject to the terms and conditions set forth therein;

 WHEREAS, Seller has agreed to give to Buyer a power of attorney on the terms and conditions contained herein in order for Buyer to take
any action that Buyer may deem necessary or advisable to accomplish the purposes of the Agreement; 
 NOW, THEREFORE, Seller hereby irrevocably constitutes
and appoints Buyer its true and lawful Attorney-in-Fact, with full power and authority hereby conferred in its name, place and stead and for its use and benefit, to do and perform the following in connection with mortgage loan purchased by Buyer
from Seller under the Agreement (the “Purchased Assets”) or as otherwise provided below: 
  

	 	(1)	to receive, endorse and collect all checks made payable to the order of Seller representing any payment on account of the Purchased Assets; 


 

	 	(2)	to assign or endorse any mortgage, deed of trust, promissory note or other instrument relating to the Purchased Assets; 

  

	 	(3)	to correct any assignment, mortgage, deed of trust or promissory note or other instrument relating to the Purchased Assets, including, without limitation, unendorsing and re-endorsing a promissory note to another
investor; 

  

	 	(4)	to complete and execute lost note affidavits or other lost document affidavits relating to the Purchased Assets; 

  

	 	(5)	to issue title requests and instructions relating to the Purchased Assets; 

  

	 	(6)	to give notice to any individual or entity of its interest in the Purchased Assets under the Agreement; and 

  

	 	(7)	to service and administer the Purchased Assets, including, without limitation, the receipt and collection of all sums payable in respect of the Purchased Assets. 


Seller hereby ratifies and confirms all that said Attorney-in-Fact shall lawfully do or cause to be done by authority hereof. 

Third parties without actual notice may rely upon the power granted under this Power of Attorney upon the exercise of such power by the Attorney-in-Fact. 

 

			
	LoanDepot.com, LLC
		
	By:	 	




		 	  

	Name:	 	 Anthony Hsieh

	Title:	 	 CEO



  
 H-1 








 WITNESS my hand this 28th day of December, 2009. 

STATE OF California 
 County of Orange 

This instrument was acknowledged, subscribed and sworn to before me this 28th day of
December, by Anthony Hsieh 
  

					
		 		 	




		 		 	  

		 		 	Notary Public
			
	My Commission Expires: Sep 18, 2012	 		 	




		 		 	Notary Seal:


  
 H-2 








 EXHIBIT I 

ACKNOWLEDGEMENT OF PASSWORD CONFIDENTIALITY AGREEMENT 

LoanDepot.com, LLC (“Seller”) has entered into a Master Repurchase Agreement with Bank of America, N.A. (“Buyer”). In connection
therewith, Seller is being provided access to the website at www.bankofamerica.com/warehouselending (the “Website”). As consideration for being provided access to and use of the Website, Seller agrees that: 

 

	1.	Seller may only access the Website by using a user name and password issued by Buyer. 

  

	2.	Buyer reserves the right to revoke or deactivate any user name and/or password at any time. 

  

	3.	Seller shall designate in writing an authorized representative (the “Authorized Representative”) to communicate with Buyer regarding the authorized users of the Website. The Authorized Representative shall be
responsible for notifying Buyer of any changes, additions or deletions to the authorized users. Under no circumstances may user names and passwords be transferred between authorized users. Seller shall be solely responsible for all actions of its
Authorized Representative and shall immediately notify Buyer of any change in its Authorized Representative. Buyer shall be entitled to rely on the authority and directions of the Authorized Representative without further inquiry. Authorized
Representative shall communicate with Buyer in writing or via telephone by dialing (877) 425-3463, Option 5 

  

	4.	Seller shall be solely responsible for safeguarding access to user names and passwords and for implementing controls to prevent unauthorized usage of the Website. 


 

	5.	Seller is responsible for all requests, approvals and other transactions on the Website accessed through user names and/or passwords issued to Seller. 


 

	6.	Buyer shall be entitled to rely on all requests, approvals and other communications made on the Website through a user name and/or password issued to Seller until such time as: 


 

	 	(a)	Seller provides Buyer with written instructions to the contrary; and 

  

	 	(b)	Buyer has sufficient time to notify the appropriate employees and modify its computerized systems to deactivate the affected user name and/or password. 


 

	7.	Any dispute regarding the use of user names and/or passwords shall be resolved in accordance with the terms and conditions of the Agreement. 


By signing below you acknowledge your agreement to the terms and conditions set forth herein. Facsimile signatures shall be deemed valid and binding to the
same extent as the original. 
 SELLER AUTHORIZATIONS: 
 Any of
the persons whose signatures and titles appear below, or attached hereto, are authorized, acting singly, to act for the Seller under this Agreement as an Authorized Representative. 

 

															
	By:	 	



	 		 	By:	 	



	 		 	By:	 	




		 	  
	 		 		 	  
	 		 		 	  

								
	Name:	 	 Anthony Hsieh
	 		 	Name:	 	 John Lee
	 		 	Name:	 	 Jim Svinth

								
	Title:	 	 CEO
	 		 	Title:	 	 CFO
	 		 	Title:	 	 EVP



  
 J-1 









									
		 	 LoanDepot.com, LLC
	 		 		 	
					
	Print Name:	 	 Anthony Hsieh
	 		 	 Number
 Assigned:
	 	  

					
	Signature:	 	



	 		 	Date:	 	12/08/09
		 	  
	 		 		 	  



  
 J-2 








 [***] Confidential portions of this document have been redacted and filed separately with the
Commission. 
 EXHIBIT J 

WIRING INSTRUCTIONS 
 Seller’s Wire
Instructions: 
  

					
	Account #:	 	 [***]
	 	
	Account Holder’s name:	 	 LoanDepot.com
	 	
	ABA #:	 	 121-000248
	 	
	Bank name:	 	 Wells Fargo Bank
	 	
	Bank Address:	 	 420 Montgomery St. San Francisco, CA 94104
	 	
	Further Credit:	 	 (Bank of America) Reference
	 	

 Buyer’s Wire Instructions: 
  

					
	Bank:	 	Bank of America, N.A.	 	
	ABA No.:	 	026009593	 	
	Account No.:	 	[***]	 	
	Reference:	 	LoanDepot.com, LLC	 	
		
	  
	 	

 These wiring instructions may not be changed except by an authorized representative of Buyer or Seller, as applicable. Buyer
shall be entitled to rely on these wiring instructions without further inquiry or verification. 

  
 K-1 








 EXHIBIT K 

[DRAFT] 
 FORM OF SERVICER
NOTICE 
 December 23, 2009 

[                    ], as Servicer 

[ADDRESS] 
 Attention:
                     
  

	 	Re:	Master Repurchase Agreement, dated as of [            ], 200[    ] (the “Repurchase Agreement”), by and among
[                    ] (the “Seller”) and Bank of America, N.A. (the “Buyer”). 


Ladies and Gentlemen: 

[                    ]
(“Servicer”) is servicing certain mortgage loans for Seller pursuant to that certain Servicing Agreement between Servicer and Seller. Pursuant to the Repurchase Agreement between Buyer and Seller, Servicer is hereby notified that
Seller may from time to time sell to Buyer certain mortgage loans which are then currently being serviced by Servicer. 
 Upon receipt of
notice from Buyer in which Buyer shall identify the mortgage loans which are then sold to Buyer under the Repurchase Agreement (the “Mortgage Loans”), Servicer shall segregate all amounts collected on account of such Mortgage Loans,
hold them in trust for the sole and exclusive benefit of Buyer, and remit such collections in accordance with Buyer’s written instructions. Further, Servicer shall follow the instructions of Buyer with respect to the Mortgage Loans, and shall
deliver to Buyer any information with respect to the Mortgage Loans as reasonably requested by Buyer. 
 Notwithstanding any contrary
information which may be delivered to the Servicer by Seller, Servicer may conclusively rely on any information delivered by Buyer, and Seller shall indemnify and hold the Servicer harmless for any and all claims asserted against it for any actions
taken in good faith by the Servicer in connection with the delivery of such information. 
 Please acknowledge receipt of this instruction
letter by signing in the signature block below and forwarding an executed copy to Buyer promptly upon receipt. Any notices to Buyer should be delivered to the following addresses: Bank of America, N.A., [ADDRESS]; Attention:; Telephone:
[            ]; Facsimile: [            ]. 

 

					
	Very truly yours,
	
	[                    ]
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	


  

					
	ACKNOWLEDGED:
	
	[                    ],
		 	as Servicer	 	
		
	By:	 	  

		 	Title:	 	
		 	Telephone:	 	
		 	Facsimile:	 	








 EXHIBIT L 

REPRESENTATIONS AND WARRANTIES 

Representations and Warranties Concerning Seller. Seller represents and warrants to and covenants with Buyer that the following are true
and correct as of the Effective Date through and until the date on which all obligations of Seller under this Agreement are fully satisfied: 
  

	(a)	Due Formation and Good Standing. Seller is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, has the full legal power and authority to own its property
and to carry on its business as currently conducted and is duly qualified to do business and is in good standing in each jurisdiction in which the transaction of its business makes such qualification necessary. 


 

	(b)	Authorization. The execution, delivery and performance by Seller of the Principal Agreements and all other documents and transactions contemplated thereby, are within Seller’s corporate powers, have been
duly authorized by all necessary corporate action and do not constitute or will not result in (i) a breach of any of the terms, conditions or provisions of Seller’s articles or certificate of incorporation or bylaws (or corresponding
organizational documents if Seller is not a corporation); (ii) a material breach of any legal restriction or any agreement or instrument to which Seller is now a party or by which it is bound; (iii) a material default or an acceleration
under any of the foregoing; or (iv) the violation of any law, rule, regulation, order, judgment or decree to which Seller or its property is subject. 

  

	(c)	Enforceable Obligation. The Principal Agreements and all other documents contemplated thereby constitute legal, binding and valid obligations of Seller, enforceable in accordance with their respective terms,
except as limited by bankruptcy, insolvency or other similar laws affecting the enforcement of creditor’s rights. 

  

	(d)	Approvals. The execution and delivery of the Principal Agreements and all other documents contemplated thereby and the performance of Seller’s obligations thereunder do not require any license, consent,
approval, authorization or other action of any Person, including any state, federal, governmental or regulatory authority, or if required, such license, consent, approval, authorization or other action has been obtained prior to the Effective Date.


  

	(e)	Compliance with Laws. Seller is not in violation of any provision of any applicable law, or of any judgment, award, rule, regulation, order, decree, writ or injunction of any court or public regulatory body or
authority that might have a material adverse effect on the business, operations, assets or financial condition of Seller. 

  

	(f)	Financial Condition. All financial statements of Seller and each Guarantor delivered to Buyer fairly and accurately present the financial condition of the parties for whom such statements are submitted. The
financial statements of Seller have been prepared in accordance with GAAP consistently applied throughout the periods involved, and there are no contingent liabilities not disclosed thereby that would adversely affect the financial condition of
Seller. Since the close of the period covered by the latest financial statement delivered to Buyer with respect to Seller, there has been no material adverse change in the assets, liabilities or financial condition of Seller nor is Seller aware of
any facts that, with or without notice or lapse of time or both, would or could result in any such material adverse change. No event has occurred, including, without limitation, any litigation or administrative proceedings, and no condition exists
or, to the knowledge of Seller, is threatened, that (i) might render Seller unable to perform its obligations under the Principal Agreements and all other documents contemplated thereby; (ii) would constitute a Potential Default or Event
of Default; or (iii) might adversely affect the financial condition of Seller or the validity, priority or enforceability of the Principal Agreements or any other documents contemplated thereby. 









	(g)	Credit Facilities. The only credit facilities, including repurchase agreements for mortgage loans and mortgage-backed securities, of Seller that are presently in effect and are secured by mortgage loans or
provide for the purchase, repurchase or early funding of mortgage loan sales, are with Persons disclosed to Buyer at the time of application, or thereafter disclosed to and approved by Buyer, and, if required by Buyer, such Persons have executed and
delivered an lntercreditor Agreement (or will execute and deliver an lntercreditor Agreement within sixty (60) days following the Effective Date in accordance with Section 7.3) or warehouse lenders that are Approved Payees.


  

	(h)	Title to Assets. Seller has good, valid, insurable (in the case of real property) and marketable title to all of its properties and other assets, whether real or personal, tangible or intangible, reflected on the
financial statements delivered to Buyer with respect to Seller, except for such properties and other assets that have been disposed of in the ordinary course of business of Seller’s mortgage banking business, and all such properties and other
assets are free and clear of all liens except as disclosed in such financial statements. 

  

	(i)	Litigation. There are no actions, claims, suits, investigations or proceedings pending, or to the knowledge of Seller, threatened or reasonably anticipated against or affecting Seller in any court or before or by
any arbitrator, government commission, board, bureau or other administrative agency that, if adversely determined, may reasonably be expected to result in any material and adverse change in the business, operations, assets, licenses, qualifications
or financial condition of Seller. 

  

	(j)	Payment of Taxes. Seller has filed all tax returns and reports required to be filed and has paid all taxes, assessments, fees and other governmental charges levied upon it or its property or income that are due
and payable, including interest and penalties, or has provided adequate reserves for the payment thereof. 

  

	(k)	No Defaults. Seller is not in default under any indenture, mortgage, deed of trust, agreement or other instrument or contractual or legal obligation to which it is a party or by which it is bound.


  

	(l)	ERISA. Seller is in compliance in all material respects with the requirements of ERISA, and no Reportable Event has occurred under any Plan maintained by Seller. 


 

	(m)	Approved Mortgagee. If represented in Buyer’s Credit Application or otherwise indicated by Seller to Buyer, Seller is an approved FHA, VA, Ginnie Mae, Fannie Mae and/or Freddie Mac seller, mortgagee and/or
servicer and is in good standing with these agencies. 

  

	(n)	True and Complete Disclosure. Seller has made full disclosure to Buyer of all information that could adversely affect the execution, delivery and performance by Seller of its obligations under the Principal
Agreements. All information furnished to Buyer by or on behalf of Seller in connection with the Principal Agreements or any transaction contemplated thereby, including, without limitation, all information set forth in the Application, was true,
accurate and complete in all material respects on the date furnished, and there has been no material adverse change in the condition, financial or otherwise, of Seller from the time such information was provided to Buyer. 


 

	(o)	Ownership; Priority of Liens. Seller owns all Mortgage Loans identified in the Transactions Terms Letter that are to become Purchased Mortgage Loans, and any Transaction shall convey all of Seller’s right,
title and interest in and to such Purchased Mortgage Loans, including the servicing rights related thereto, and other Purchased Assets to Buyer. This Agreement shall also create in favor of Buyer, a valid, enforceable, perfected first priority lien
and security interest in the Purchased Mortgage Loans and other Purchased Assets, prior to the rights of all third Persons and subject to no other liens. 

  

	(p)	Investment Company Act. Seller is not an “investment company” or a company controlled by an “investment company” within the meaning of the Investment Company Act of 1940, as amended.










	(q)	Filing Jurisdictions; Relevant States. Schedule 1 sets forth all of the jurisdictions and filing offices in which a financing statement should be filed in order for Buyer to perfect its security interest in the
Purchased Assets. Schedule 1 sets forth all of the states or other jurisdictions in which Seller originates Mortgage Loans in its own name or through brokers on the date of this Agreement. 


 

	(r)	Seller Solvent; Fraudulent Conveyance. As of the date hereof and immediately after giving effect to each Transaction, the fair value of the assets of Seller is greater than the fair value of the liabilities
(including, without limitation, contingent liabilities if and to the extent required to be recorded as a liability on the financial statements of Seller in accordance with GAAP) of Seller and Seller is and will be solvent, is and will be able to pay
its debts as they mature and does not and will not have an unreasonably small capital to engage in the business in which it is engaged and proposes to engage. Seller does not intend to incur, or believe that it has incurred, debts beyond its ability
to pay such debts as they mature. Seller is not contemplating the commencement of insolvency, bankruptcy, liquidation or consolidation proceedings or the appointment of a receiver, liquidator, conservator, trustee or similar official in respect of
Seller or any of its assets. Seller is not transferring any Mortgage Loans with any intent to hinder, delay or defraud any of its creditors. 

  

	(s)	Custodial Account. All funds required to be segregated and deposited into the Custodial Account have been so segregated and deposited. 


 

	(t)	Chief Executive Office. Seller’s chief executive office on is located at 2601 Main Street, Suite 450, Irvine, CA 92614. 


Representations and Warranties Concerning Purchased Assets. Seller represents and warrants to and covenants with Buyer that the following
are true and correct with respect to each Purchased Mortgage Loan as of the related Purchase Date through and until the date on which such Purchased Mortgage Loan is repurchased by Seller: 

 

	(a)	Eligible Loan. The Mortgage Loan is a Conventional Conforming Mortgage Loan, Government Mortgage Loan, Jumbo Mortgage Loan, Super Jumbo Mortgage Loan, Expanded Criteria Mortgage Loan, Subprime Mortgage Loan,
Closed-End Second Lien Mortgage Loan, HELOC Mortgage Loan or Nonperforming/Subperforming Mortgage Loan, as applicable. The Mortgage Loan is a legal, valid and binding obligation of the Mortgagor thereunder, enforceable in accordance with its terms
and subject to no offset, defense or counterclaim, obligating Mortgagor to make the payments specified therein. 

  

	(b)	Purchase Commitment. Unless otherwise stated in the Transactions Terms Letter, the Mortgage Loan is covered by a Purchase Commitment that permits assignment thereof to Buyer, does not exceed the availability
under such Purchase Commitment, conforms to the requirements and specifications set forth in such Purchase Commitment and the related regulations, rules, requirements and/or handbooks of the applicable Approved Investor and is eligible for sale to
and insurance or guaranty by, respectively, the applicable Approved Investor and any applicable Insurer. 

  

	(c)	Asset Data Record. The information contained in the Asset Data Record is true, correct and complete. 

  

	(d)	Origination and Servicing. The Mortgage Loan has been originated and serviced in material compliance with all industry standards, applicable Approved Investor and Insurer requirements and all applicable federal,
state and local statutes, regulations and rules, including, without limitation, the Federal Truth-in-Lending Act of 1968, as amended, and Regulation Z thereunder, the Federal Fair Credit Reporting Act, the Federal Equal Credit Opportunity Act, the
Federal Real Estate Settlement Procedures Act of 1974, as amended, and Regulation X thereunder, and all applicable usury, licensing, real property, consumer protection and other laws. 









	(e)	Mortgage Loan Documents. The Mortgage Loan is evidenced by instruments acceptable to FHA, VA, Fannie Mae, Freddie Mac or the Approved Investor, as applicable, given the type of Mortgage Loan. The Mortgage Loan
Documents and other mortgage loan documents have been duly executed and delivered by the Mortgagor and create valid and legally binding obligations of the Mortgagor, enforceable in accordance with their terms, except as may be limited by bankruptcy
or other laws affecting the enforcement of creditor’s rights generally, and there are no rights of rescission, set-offs, counterclaims or other defenses with respect thereto. 


 

	(f)	Lien Position. The Mortgage Loan is secured by a valid first priority lien on the Mortgaged Property under the laws of the state where the related mortgaged property in located; provided, however, that if the
Mortgage Loan is a Closed-End Second Lien Mortgage Loan or HELOC Mortgage Loan, it is secured by a valid second lien on the Mortgaged Property. 

  

	(g)	No Future Advances. The full original principal amount of each Mortgage Loan, net of any discounts, has been fully advanced or disbursed to the Mortgagor named therein, unless otherwise expressly agreed by the
parties in writing. There is no requirement for future advances and any and all requirements as to completion of any on-site or off-site improvements and as to disbursements of any escrow funds therefor have been satisfied. 


 

	(h)	No Default. There is no default, breach, violation or event of acceleration existing under the Mortgage or the related Mortgage Note, and no event has occurred that, with the passage of time or with notice and
the expiration of any grace or cure period, would constitute a default, breach, violation or event of acceleration. Seller has not waived any default, breach, violation or event of acceleration. 


 

	(i)	No Waiver. The terms of the Mortgage Loan have not been waived, impaired, changed or modified, except to the extent such amendment or modification has been disclosed to Buyer in writing and does not affect the
salability of the Mortgage Loan pursuant to the applicable Purchase Commitment. 

  

	(j)	Taxes and Insurance. All taxes, governmental assessments, insurance premiums, water, sewer and municipal charges, leasehold payments or ground rents that previously became due and owing have been paid or a escrow
of funds has been established in an amount sufficient to pay for every such item that remains unpaid. 

  

	(k)	Private Mortgage Insurance. Each Conventional Conforming Mortgage Loan is insured by a policy of private mortgage insurance in the amount required by Fannie Mae or Freddie Mac, as applicable, and by an Insurer
and all provisions of such private mortgage insurance policy have been and are being complied with, such policy is in full force and effect and all premiums due thereunder have been paid. There are no defenses, counterclaims or rights of setoff
affecting the Conventional Conforming Mortgage Loan or affecting the validity or enforceability of any private mortgage insurance applicable to such Mortgage Loan. 


 

	(l)	Government Mortgage Loans. If the Mortgage Loan is represented by Seller to have, or to be eligible for, FHA insurance, such Mortgage Loan is insured, or eligible to be insured, pursuant to the National Housing
Act. If the Mortgage Loan is represented by Seller to be guaranteed, or to be eligible for guarantee, by the VA, such Mortgage Loan is guaranteed, or eligible to be guaranteed, under the provisions of Chapter 37 of Title 38 of the United States
Code. As to each FHA insurance certificate or each VA guaranty certificate, Seller has complied with applicable provisions of the insurance for guaranty contract and federal statutes and regulations, all premiums or other charges due in connection
with such insurance or guarantee have been paid, there has been no act or omission that would or may invalidate any such insurance or guaranty, and the insurance or guaranty is, or when issued, will be in full force and effect with respect to such
Government Mortgage Loan. There are no defenses, counterclaims or rights of setoff affecting the Government Mortgage Loan or affecting the validity or enforceability of the FHA insurance or VA guaranty applicable to such Mortgage Loan.










	(m)	Hazard Insurance. The Mortgage Loan is covered by a policy of hazard insurance, flood insurance and insurance against other insurable risks and hazards as required by the applicable Approved Investor and the
agreements applicable to such Mortgage Loan, in amounts not less than the outstanding principal balance of the Mortgage Loan or such maximum lesser amount as permitted by the applicable Approved Investor and applicable law, all in a form usual and
customary in the industry and that is in full force and effect, and all amounts required to have been paid under any such policy have been paid. 

  

	(n)	Title Insurance. A valid and enforceable title insurance policy has been issued or a commitment to issue such title insurance policy has been obtained for the Mortgage Loan in an amount not less than the original
principal amount of such Mortgage Loan, which title insurance policy insures that the Mortgage relating thereto is a valid first lien or second lien, as applicable, on the property therein described and that the mortgaged property is free and clear
of all encumbrances and liens having priority over the first lien of the Mortgage (unless the Mortgage Loan is a Closed-End Second Lien Mortgage Loan or HELOC Mortgage Loan) and otherwise in compliance with the requirements of the applicable
Approved Investor. The title insurance company that issued the applicable Closing Protection Letter has also issued or has committed to issue the title insurance policy. 


 

	(o)	Assignment. The Assignment (i) has been duly authorized by all necessary corporate action by Seller, duly executed and delivered by Seller and is the legal, valid and binding obligation of Seller enforceable
in accordance with its terms, and (ii) complies with all applicable laws including all applicable recording, filing and registration laws and regulations and is adequate and legally sufficient for the purpose intended to be accomplished
thereby, including, without limitation, the assignment of all of the rights, powers and benefits of Seller as mortgagee. 

  

	(p)	No Fraud. No error, omission, misrepresentation, negligence, fraud or similar occurrence has taken place with respect to the Mortgage Loan on the part of any Person, including, without limitation, the Mortgagor,
any appraiser, any builder or developer or any other party involved in the origination of the Mortgage Loan or in the application of any insurance in relation to such Mortgage Loan. 








 SCHEDULE 1 

Filing Jurisdictions and Offices