Amendment No. 1 to Renewal of Commitment Letter dated March 15, 2004



 Exhibit 10.18 
  
 AMENDMENT NO. 1 TO 
 COMMITMENT LETTER 
  
 This AMENDMENT NO. 1 TO COMMITMENT LETTER
(the “Amendment”) is made and entered into as of March 15, 2004 by and between Countrywide Warehouse Lending (“Lender”) and Encore Credit Corporation (“Borrower”). This Amendment amends that certain Commitment Letter by
and between Lender and Borrower dated as of November 14, 2003 (the “Commitment Letter”), which supplements that certain Revolving Credit and Security Agreement by and between Lender and Borrower dated as of May 13, 2002 (as may be amended
from time to time, the “Credit Agreement”). 
  
 R E C
I T A L S 
  
 Lender and Borrower have previously entered
into the Commitment Letter and Credit Agreement pursuant to which Lender may, from time to time, provide Borrower credit in the form of a warehouse line secured by residential mortgage loans. Lender and Borrower hereby agree that the Commitment
Letter shall be amended as provided herein. 
  
 In consideration of the mutual
promises contained herein. and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Lender and Borrower hereby agree as follows: 
  

	1.	Aggregate Credit Limit. Lender and Borrower agree that the Aggregate Credit Limit of the Commitment Letter shall be deleted in its entirely and replaced with the
following: 

  
 “Aggregate Credit Limit: Two
Hundred Million Dollars ($200,000,000), 
  

	2.	Over/Under Account Minimum Balance. Lender and Borrower agree that the Over/Under Account Minimum Balance (Section 3.5 (a)) of the Commitment Letter shall be deleted
in its entirely and replaced with the following: 

  
 “Over/Under Account Minimum Balance: $1,500,000 plus 75% of the outstanding Advances under the Credit-Off Feature plus the historical indication of the fallout rate multiplied by the sum of the original loan amount financed by Lender
for each commitment to Countrywide Securities Corp, times 100% minus the Tranche “D” Advance Rate. Interest to be paid monthly on the Over/Under Account Minimum Balance at an annualized rate of 30 day LlBOR less 50 basis points.”

  

	3.	Financial Ratios. Lender and Borrower agree that the Financial Ratios of the Commitment Letter listed below shall amended as follows, all other existing Financial
Ratios of the Commitment Letter shall remain unchanged: 

  

				
	 Minimum Tangible Net Worth
	  	$	20,000,000
	 Maximum ratio of Total Liabilities and Warehouse Debt (Warehouse Debt is Inclusive of outstandings on warehouse lines, repurchase facilities
or other off balance sheet financing to Tangible Net Worth (Excluding Credit Off)
	  	 	20:1

  

	4.	Commitment Fee: Borrower shall pay an additional fee of $62,500 upon execution of this Amendment. 

  

	5.	Other Covenants: Borrower and Lender agree to add the following new heading to the Commitment Letter. 

  
 “Other covenants: The ongoing availability of credit under the
Agreement is subject to Borrower’s compliance with all other covenants in the Agreement, including, without limitation; 
  
 Not making any material changes to its secondary marketing, underwriting, third party origination and interest rate risk management practices without the
prior consent of Lender. 
  

	6.	No Other Amendments; Conflicts with Previous Amendments. Other than as expressly modified and amended herein, the Commitment Letter shall remain in full force and
effect and nothing herein shall affect the rights and remedies of Lender as provided under the Commitment Letter and Credit Agreement. To the extent any amendments to the Commitment Letter contained herein conflict with any previous amendments to
the Commitment Letter, the amendments contained herein shall control. 

  

	7.	Capitalized Terms. Any capitalized term used herein and not otherwise defined herein shall have the meaning ascribed to such term in the Credit Agreement.


  

	8.	Facsimiles: Facsimile signatures shall be deemed valid and binding to the same extent as the original 

  









 IN WITNESS WHEREOF, Lender and Borrower have caused their names to be signed hereto by their respective officers
thereunto duly authorized as of the date first written above. 
  

									
	COUNTRYWIDE WAREHOUSE LENDING	 	 	 	Encore Credit Corporation
					
	By:	 	 	 	 	 	By:	 	 /s/ Jon Daurio

	 	 	 Signature
	 	 	 	 	 	 Signature

					
	 Name:
	 	 	 	 	 	 Name:
	 	 Jon Daurio

					
	 Title:
	 	 	 	 	 	 Title:
	 	 EVP/Secretary