Master Repurchase Agreement



 Exhibit 10.1 
  
 

 
  
  
  

MASTER REPURCHASE AGREEMENT 
 (the “Agreement”)

  
  
 between

  
  
 BANK
OF AMERICA, N.A. 
 (“Buyer”) 
  
  
 and 
  
  
 PULTE MORTGAGE LLC 
 (“Seller”) 
  
  
  
 dated as of 
  

 
 July 31, 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
	  	1
	 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”
	  	2
	 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
	  	8
	 Section 3.7
	  	 Approved Payees
	  	9
	 Section 3.8
	  	 Funding Drafts
	  	10
	
	ARTICLE 4
	REPURCHASE
			
	 Section 4.1
	  	 Repurchase Price
	  	11
	 Section 4.2
	  	 Repurchase Acceleration Events
	  	11
	 Section 4.3
	  	 Reduction of Asset Value as Alternative Remedy
	  	12
	 Section 4.4
	  	 Designation as Noncompliant Mortgage Loan as Alternative Remedy
	  	12
	 Section 4.5
	  	 Illegality or Impracticability
	  	12
	 Section 4.6
	  	 Payments Pursuant to Sale to Approved Investors
	  	12
	 Section 4.7
	  	 Application of Payments from Seller or Approved Investors
	  	13
	 Section 4.8
	  	 Method of Payment
	  	13
	 Section 4.9
	  	 Notification of Payment
	  	14
	 Section 4.10
	  	 Authorization to Debit
	  	14
	 Section 4.11
	  	 Book Account
	  	14
	 Section 4.12
	  	 Full Recourse
	  	14
	
	ARTICLE 5
	FEES
			
	 Section 5.1
	  	 Payment of Fees
	  	14

  

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	ARTICLE 6
	SECURITY; SERVICING; MARGIN ACCOUNT MAINTENANCE; CUSTODY OF MORTGAGE LOAN
	DOCUMENTS AND REPURCHASE TRANSACTIONS
			
	 Section 6.1
	  	 Precautionary Grant of Security Interest
	  	14
	 Section 6.2
	  	 Servicing
	  	15
	 Section 6.3
	  	 Margin Account Maintenance
	  	19
	 Section 6.4
	  	 Custody of Mortgage Loan Documents
	  	20
	 Section 6.5
	  	 Release of Mortgage Loan Documents
	  	21
	 Section 6.6
	  	 Repurchase Transactions
	  	22
	
	ARTICLE 7
	CONDITIONS PRECEDENT
			
	 Section 7.1
	  	 Initial Transaction
	  	22
	 Section 7.2
	  	 All Transactions
	  	23
	 Section 7.3
	  	 Intercreditor Agreements
	  	24
	 Section 7.4
	  	 Satisfaction of Conditions
	  	25
	
	ARTICLE 8
	REPRESENTATIONS AND WARRANTIES
			
	 Section 8.1
	  	 Representations and Warranties Concerning Seller
	  	25
	 Section 8.2
	  	 Representations and Warranties Concerning Purchased Assets
	  	25
	 Section 8.3
	  	 Continuing Representations and Warranties
	  	25
	 Section 8.4
	  	 Amendment of Representations and Warranties
	  	25
	
	ARTICLE 9
	AFFIRMATIVE COVENANTS
			
	 Section 9.1
	  	 Financial Statements and Other Reports
	  	25
	 Section 9.2
	  	 Inspection of Properties and Books
	  	26
	 Section 9.3
	  	 Notice
	  	27
	 Section 9.4
	  	 Additional Financing
	  	28
	 Section 9.5
	  	 Servicing of Mortgage Loans
	  	28
	 Section 9.6
	  	 Evidence of Purchased Assets
	  	28
	 Section 9.7
	  	 Protection of Purchased Mortgage Loans
	  	28
	 Section 9.8
	  	 Further Assurances
	  	28
	 Section 9.9
	  	 Fidelity Bonds and Insurance
	  	28
	 Section 9.10
	  	 Wet Mortgage Loans
	  	29
	
	ARTICLE 10
	NEGATIVE COVENANTS
			
	 Section 10.1
	  	 Liabilities and Advances
	  	29
	 Section 10.2
	  	 Debt and Subordinated Debt
	  	29
	 Section 10.3
	  	 Loss of Eligibility
	  	30
	 Section 10.4
	  	 Financial Covenants and Ratios
	  	30
	 Section 10.5
	  	 Loans to Officers, Employees and Shareholders
	  	30
	 Section 10.6
	  	 Liens on Purchased Mortgage Loans and Purchased Assets; Liens on Other Assets
	  	30
	 Section 10.7
	  	 Transactions with Affiliates
	  	30
	 Section 10.8
	  	 Consolidation, Merger, Sale of Assets and Change of Control
	  	31
	 Section 10.9
	  	 Payment of Dividends and Retirement of Stock
	  	31
	 Section 10.10
	  	 Purchased Assets
	  	31
	 Section 10.11
	  	 Secondary Marketing, Underwriting, Third Party Origination and Interest Rate
 Risk Management Practices
	  	31

  

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	ARTICLE 11
	DEFAULTS AND REMEDIES
			
	 Section 11.1
	  	Events of Default	  	31
	 Section 11.2
	  	Remedies	  	33
	 Section 11.3
	  	Treatment of Custodial Account	  	34
	 Section 11.4
	  	Sale of Purchased Assets	  	34
	 Section 11.5
	  	No Obligation to Pursue Remedy	  	34
	 Section 11.6
	  	Reimbursement of Costs and Expenses	  	34
	 Section 11.7
	  	Application of Proceeds	  	35
	 Section 11.8
	  	Rights of Set-Off	  	35
	 Section 11.9
	  	Reasonable Assurances	  	36
	
	ARTICLE 12
	INDEMNIFICATION
			
	 Section 12.1
	  	Indemnification	  	36
	 Section 12.2
	  	Payment of Taxes	  	36
	
	ARTICLE 13
	TERM AND TERMINATION
			
	 Section 13.1
	  	Term	  	36
	 Section 13.2
	  	Termination	  	36
	 Section 13.3
	  	Extension of Term	  	37
	
	ARTICLE 14
	GENERAL
			
	 Section 14.1
	  	Integration; Servicing Provisions Integral and Non-Severable	  	37
	 Section 14.2
	  	Amendments	  	38
	 Section 14.3
	  	No Waiver	  	38
	 Section 14.4
	  	Remedies Cumulative	  	38
	 Section 14.5
	  	Assignment	  	38
	 Section 14.6
	  	Successors and Assigns	  	38
	 Section 14.7
	  	Participations	  	38
	 Section 14.8
	  	Invalidity	  	39
	 Section 14.9
	  	Additional Instruments	  	39
	 Section 14.10
	  	Survival	  	39
	 Section 14.11
	  	Notices	  	39
	 Section 14.12
	  	Personal Identification Number	  	39
	 Section 14.13
	  	Governing Law	  	40
	 Section 14.14
	  	Counterparts	  	40
	 Section 14.15
	  	Headings	  	40
	 Section 14.16
	  	Joint and Several Liability of Each Seller	  	40
	 Section 14.17
	  	Confidential Information	  	40
	 Section 14.18
	  	Intent	  	41
	 Section 14.19
	  	Right to Liquidate	  	42
	 Section 14.20
	  	Insured Depository Institution	  	42
	 Section 14.21
	  	Netting Contract	  	42
	 Section 14.22
	  	Reimbursement of Expenses	  	42

  

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 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 I:
	  	 Acknowledgement of Password Confidentiality Agreement

	 Exhibit J:
	  	 Wiring Instructions

	 Exhibit K:
	  	 Form of Servicer Notice

	 Exhibit L:
	  	 Representations and Warranties


 SCHEDULES 
  

			
	 Schedule 1:
	  	 Filing Jurisdictions and Offices


  

 iv 








 

 
 MASTER REPURCHASE AGREEMENT 
 THIS MASTER REPURCHASE AGREEMENT (the “Agreement”) is made and entered into as of July 31, 2009 by and between Bank of America, N.A., a federal savings bank (“Buyer”), and Pulte Mortgage
LLC, a Delaware limited liability company (“Seller”). 
 RECITALS 
  

	 	A.	 Subject to the terms and conditions set forth herein, Buyer shall from time to time enter into transactions with Seller whereby Seller sells 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 to Buyer (each such transaction, a “Transaction”). 


 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 enter into Transactions with Seller, provided that 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. 


  

	2.2	 Transaction Limits. The Aggregate Transaction Limit and each Type Sublimit shall be as set forth in the Transactions Terms Letter. Upon the occurrence of a
Potential Default or Event of Default, 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 



  

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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. The price differential 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.



  

	2.7	 All Transactions are “Servicing Released”. The sale of Mortgage Loans by Seller to Buyer pursuant to Transactions under this Agreement, and the
repurchase of such Mortgage Loans by Seller from Buyer, includes the servicing rights related to the Mortgage Loans and all Transactions under this Agreement are “servicing 



  

 2 









	 	 
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, until Seller repurchases such Mortgage Loans. 


  

	2.8	 Terms and Conditions of Transactions. Upon the occurrence of an Event of Default and for as long as such is occurring, in addition to any other rights and
remedies afforded Buyer any terms or conditions of the Transactions Terms Letter or this Agreement, may be changed from time to time by Buyer at its sole and good faith discretion by providing prior notice to Seller; provided that any such change
shall not apply to Transactions entered into prior to the effective date of such change and in no event shall the change apply to any Transaction on a retrospective basis. 


  

	2.9	 Guarantee. As may be determined necessary by Buyer from time to time in its sole and good faith discretion, but only as required by the Transactions Terms
Letter, 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; provided that any such change, revision, amendment or supplement shall not apply to
Transactions entered into prior to the effective date of such change, revision, amendment or supplement, and in no event shall the change, revision, amendment or supplement apply to any Transaction on a retroactive basis.



  

	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 twenty-five million dollars
($25,000,000) 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 less
than one (1) Business Day prior written notice thereof. 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 effective 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 



  

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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 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 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 in Seller’s computer records as being 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 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 in Seller’s computer records as being 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 



  

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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 Buyer’s own funds or funds deposited by or held for others. Upon the occurrence and during the continuance 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 any required 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 promptly 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 1:00 p.m.
(Pacific time) on a Business Day, Buyer shall wire (without any wire transfer fee payable to Seller) such requested excess funds to Seller by the end of such Business Day and, if the 



  

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request is received by Buyer on or after 1:00 p.m. (Pacific Time), no later than one (1) Business Day 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. 


  

	 	(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 out-of-pocket 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.



  

	 	(f)	 Return of Over/Under Account Upon Termination. 


  

	 	(i)	 Upon termination or expiration of this Agreement, Buyer shall promptly (but in any event within two (2) Business Days after the effective termination date) wire
Seller in immediately available funds (without any wire transfer fee payable by Seller) any remaining balance in the Over/Under Account, subject to the terms below. 


  

 6 









	 	(1)	 Notwithstanding the foregoing, to the extent there are bona fide Outstanding Obligations (as defined below) of Seller under this Agreement as of the date of termination,
whether such obligations are disputed or undisputed by Seller, Buyer shall be entitled to retain in the Over/Under Account, and shall not be obligated to return to Seller, an amount equal to such Outstanding Obligations until such obligations are
resolved to the reasonable satisfaction of the parties. As such Outstanding Obligations are resolved, the amount of funds being held by the Buyer against such Outstanding Obligations shall be released and wired to Seller promptly in the manner
described above (but in any event within two (2) Business Days thereafter). 


  

	 	(2)	 To the extent the amount of such Outstanding Obligations exceeds the balance in the Over/Under Account, Buyer shall be entitled to retain the entire balance in the
Over/Under Account, until such obligations are resolved, up to the amount of the Outstanding Obligations. 


  

	 	(3)	 During the term of this Agreement (and, thereafter, for as long as Buyer claims there are Outstanding Obligations), Seller may request, and Buyer shall provide a full
accounting from Buyer as to the amount, source, itemization and description of the Outstanding Obligations. Buyer shall use reasonable efforts to provide such information within two (2) Business Days after receiving such a request.



  

	 	(ii)	 For purposes of this Section 3.5(f), the term “Outstanding Obligations” means the debts or obligations due from Seller to Buyer under this Agreement
(net of any payments, amounts or credits paid) or any other agreement(s) between Seller and Buyer or its Affiliates which are unsatisfied or outstanding as of the date of the termination or expiration of this Agreement including, without limitation,
(1) Seller’s obligation under this Agreement to repurchase Purchased Mortgage Loans from Buyer with respect to such Mortgage Loans which have been purchased by Buyer from Seller pursuant to this Agreement, (2) unpaid costs and/or fees
(including, but not limited to, unpaid Facility Fees and/or unpaid funding fees) due from Seller to Buyer under this Agreement, and/or (3) unpaid price differential. Further, Outstanding Obligations shall include those amounts which Buyer
and/or its Affiliates claim a right of set-off against the funds in the Over/Under Account as provided in Section 11.8. 


  

	 	(iii)	 It is expressly understood that this Section 3.5(f) shall not otherwise impair any of the rights and obligations of Seller and Buyer in connection with debits,
credits or withdrawals hereunder. All such rights and obligations shall remain in full force and effect, following termination or expiration, until Buyer returns the entire Over/Under Account balance. 


  

	 	(g)	 Release of Security Interest. Upon the transfer of funds by Buyer to Seller in accordance with Section 3.5(c) or Section 3.5(f), the
security interest granted by Seller to Buyer with respect to such funds shall be deemed to be automatically released without further action by any party. 


  


 7 









	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. 


  

	 	(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. 


  

	 	(iii)	 Buyer shall pay the Purchase Price directly to Seller, or an Approved Payee as otherwise directed by Seller, subject to (A) an Event of Default not existing or
occurring as a result thereof and (B) the continued effectiveness and no breach in that certain Protection Letter for Transfers to Corporate Account executed and delivered by Seller and Seller’s parent Pulte Homes, Inc., for the benefit of
Buyer. 


  

 8 









	 	(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 two (2) Business Days 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 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 


  

 9 









	 	(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, in its sole and good faith discretion, 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 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. The warehouse lenders and other institutions set forth on Exhibit M are approved by Buyer as Approved Payees without additional conditions. 



 

	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. 


  

 10 









	 	(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 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 managers authorizing such officers to sign funding drafts on behalf of Seller. 


  
 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 by Seller 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, including all related servicing rights, 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)	 forty-five (45) 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)	 twenty one (21) calendar 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; 


  

 11 









	 	(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. 


  

	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 or impractical 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 



  

 12 









	 	 
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. 


  

	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




  

 13 









	 	 
franchise fees or 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 less than one (1) Business Day prior written notice if Seller or an Approved Investor intends to
remit a payment to Buyer after 12:00 p.m. (Pacific Time) on any Business Day, that is equal to or greater than twenty-five million dollars ($25,000,000). 


  

	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 then due and payable to 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 first quarterly installment of 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.
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	 Precautionary Grant of Security Interest. 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 



  

 14 









	 	 
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 and sale transaction, Seller hereby pledges, assigns and grants to Buyer a continuing first priority security interest in and lien upon the Purchased Assets, 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. 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 reasonably 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 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. A carbon, photographic or other reproduction of this Agreement shall be sufficient as a financing statement for filing in any jurisdiction. 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. Buyer hereby appoints Seller to subservice the Purchased Mortgage Loans on behalf of Buyer as agent for Buyer. The right of Seller to
subservice the Purchased Mortgage Loans is on an interim basis only and does not provide or confer a contractual, ownership or other right for Seller 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 as provided herein. Further, the fact that Seller may be entitled to a servicing fee for subservicing of the Purchased Mortgage Loans or that
Buyer may provide a separate notice of default to Seller regarding the subservicing 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 Subservicing Period; No Servicing Fee or Income. Seller’s right to interim subservice 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 from Buyer; provided, however, that
upon the occurrence of an Event of Default which is not cured within any applicable cure period, Buyer shall have the right to immediately terminate Seller as the Sevicer and appoint a Successor Servicer as contemplated in
Section 6.2(h). If the interim subservicing period expires with respect to any Purchased Mortgage Loan for any reason other than Seller repurchasing the Purchased Mortgage Loan, then upon mutual written agreement of Buyer and Seller,
Seller shall continue to interim subservice 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 


  

 15 









	 	  	 period(s), provided, however, that absent mutual written agreement to extend, or continue to extend, the interim subservicing period, Seller shall transfer servicing of
the Purchased 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 subservicing period (including the
expiration of any extension period) with respect to any Purchased Mortgage Loan, Seller shall have no right to subservice the related Purchased Mortgage Loan nor shall Buyer have any obligation to extend the interim subservicing period (or continue
to extend the interim subservicing 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 nor shall Seller have any right to deduct or retain, any subservicing fee or similar compensation in connection with the interim servicing of a
Purchased Mortgage Loan. 


  

	 	(d)	 Servicing Agreement. If the Servicer of the Purchased Mortgage Loans is not Seller, 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; 


  

 16 









	 	(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; 


  

	 	(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 would reasonably be expected to cause a Material and 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 promptly (and, in any event, within one (1) Business Day) 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, subject to Buyer’s obligation to repurchase such servicing prior to the repurchase of such Purchased Mortgage Loan by Seller and subject to Seller’s right to interim subservice such Purchased Mortgage Loan as
provided in Section 6.2(c). 


  

	 	(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. Upon either (i) the expiration of the interim subservicing period for any Purchased Mortgage Loan for any reason other
than Seller repurchasing the Purchased Mortgage Loan or (ii) upon the occurrence of an Event of Default which is not cured within any applicable cure period, 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 



  

 17 









	 	 
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; provided, however, if the payment received by Buyer from an Approved Investor with respect to any particular Repurchased Mortgage Loan is net of escrows, the funds in the Custodial Account related to such Repurchased
Mortgage Loan shall thereafter be the exclusive property of and belong to Seller, Seller shall be entitled to withdraw and deduct said amount from the Custodial Account, and such funds shall not be deemed commingled funds or Custodial Account funds.
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 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 and during the continuance 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, to the extent permitted by applicable law. 


  

	 	(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. 


  

 18 









	 	(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.



  

	 	(n)	 Termination. Upon either (i) the expiration of the interim subservicing period for any Purchased Mortgage Loan for any reason other than Seller repurchasing
the Purchased Mortgage Loan or (ii) upon the occurrence of an Event of Default which is not cured within any applicable cure period, Buyer shall have the right 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. Upon either (i) the expiration of the interim subservicing period for any Purchased Mortgage Loan for any reason other than
Seller repurchasing the Purchased Mortgage Loan or (ii) upon the occurrence of an Event of Default which is not cured within any applicable cure period, 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 (but not any interest accrued on such Purchased Mortgage Loan(s) up to, but not including, the Purchase Date for such Purchased Mortgage
Loan(s)), 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. 


  

 19 









	 	(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 8:00 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 8:00 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). 
  

	 	(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. The initial Custodian shall be the Person set forth in the Transactions Terms Letter. Thereafter, if the initial Custodian is removed for any
reason, Buyer may appoint, subject to the prior written consent of Seller (which consent shall not be unreasonably withheld or delayed) so long as there then exists no Event of Default, 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 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.



  

 20 









	 	(b)	 Temporary Withdrawal of Mortgage Loan Documents for Correction. Provided that no Potential Default or Event of Default has occurred and is continuing, Buyer shall
permit Seller to withdraw, for a period not to exceed twenty-one (21) calendar 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 Event of Default has occurred and is continuing, upon the written request of Seller,
Buyer shall 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. 


  

	 	(d)	 Delivery of Mortgage Loan Documents Relating to Mortgage-Backed Securities. Provided that no Event of Default has occurred and is continuing, upon the written
request of Seller, Buyer shall 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. Buyer’s obligation to deliver the Mortgage Loan
Documents to a certifying custodian shall be contingent upon Buyer determining that its title, rights and interests in the related Purchased Mortgage Loans will be adequately protected and secured in connection with the pooling process, including,
without limitation, the execution by the certifying custodian of a tri-party custodial agreement in a form acceptable to Buyer and the execution of one or more account control agreements with the broker-dealer and/or issuer, as may be applicable.
Buyer and its designee shall have no obligation to release any Mortgage Loan Documents to any certifying custodian if Buyer determines that its title, rights and interests in the related Purchased Mortgage Loans will not be adequately protected and
secured in connection with the pooling process. 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 


  

 21 









	 	(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. Notwithstanding the foregoing or any other provision of this Agreement, neither Seller nor Bank of America makes any
covenants, representations and warranties, whether express or implied, that the anticipated Transactions hereunder will be a purchase and sale and not a financing and it shall be the sole responsibility of Seller and Bank of America to determine for
their respective purposes whether the Transactions hereunder will be treated as purchase and sale transactions and not financing transactions. Further, in no event shall Seller or Bank of America be liable to the other or any third party as a result
of any Transaction hereunder being deemed a financing transaction. 


 ARTICLE 7 
 CONDITIONS PRECEDENT 
  

	7.1	 Initial Transaction. As conditions precedent to Buyer entering 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; 


  

 22 









	 	(iv)	 a Power of Attorney signed by Seller; 


  

	 	(v)	 a certified copy of Seller’s certificate of formation and limited liability company agreement 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; 


  

	 	(vi)	 a certificate of Seller’s 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 managers of Seller, substantially in the form of Exhibit D hereto; 


  

	 	(vii)	 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; 


  

	 	(viii)	 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; 


  

	 	(ix)	 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; 


  

	 	(x)	 an Acknowledgement of Confidentiality of Password Agreement; 


  

	 	(xi)	 the initial Facility Fee, if applicable; 


  

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


  

	 	(xiii)	 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’s obligation to enter into any Transaction hereunder, including the initial Transaction:



  

 23 









	 	(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 that are then due and payable; 


  


	 	(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 (if applicable) shall have performed all agreements to be performed by them hereunder and under the Guarantee (if
applicable), 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. 


  

	7.3	 Intercreditor Agreements. If required by Buyer, within sixty (60) calendar days following the Effective Date, Seller shall deliver to Buyer an
Intercreditor 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 Intercreditor Agreement. If Seller fails to provide Buyer with any
required Intercreditor 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. 


  

 24 









	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. 


 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
concerning Seller 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 concerning the Purchased Assets 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 consistent with Section 8.1 or Section 8.2 above, as applicable. 


  

	8.4	 Amendment of Representations and Warranties. Upon the occurrence of an Event of Default, 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 or other authorized officer of Seller, subject, however, to year-end audit adjustments and the absence of footnotes and schedules;



  

	 	(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, 



  

 25 









	 	 
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 or other authorized 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, and a Guarantor is indicated within the Transactions Terms Letter, 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;



  

	 	(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, or Insurer. 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, including a monthly summary of repurchase and indemnification demands from Approved Investors with respect to Mortgage Loans sold by Seller. Subject to Section 14.17, 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 three (3) Business Days prior written 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 



  

 26 









	 	 
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 (but, in any event, within three (3) Business Days, with the exception of subsection (d) and
(e) which shall be within one (1) Business Day), 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; 


  

	 	(c)	 the filing, recording or assessment of any federal, state or local tax lien against it, or any of its assets in an aggregate amount in excess of two hundred fifty thousand
dollars ($250,000); 


  

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


  

	 	(e)	 the actual or written notice of intent of 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)	 [intentionally left blank]; 


  

	 	(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 would reasonably be expected to 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 where such
default 



  

 27 









	 	 
would reasonably be expected to result in a material adverse effect on the business, operations, assets, or financial condition of Seller; and



  

	 	(m)	 any (i) change to the location of its chief executive office/chief place of business from that specified in Exhibit L, (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
twenty percent (20%) of Seller’s Tangible Net Worth, including, without limitation, working capital arrangements, warehouse lines of credit or repurchase arrangements, Seller shall notify Buyer not fewer than fifteen (15) calendar
days prior to the execution of such arrangement. 


  

	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
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 out-of-pocket 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 in the Purchased Assets, 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 a fidelity bond and/or insurance policy, in a form and substance satisfactory to Buyer, covering against
loss or damage relating to or resulting from any breach of fidelity 



  

 28 









	 	 
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 bond and/or insurance policy shall not exceed one hundred thousand dollars ($100,000). Following approval by Buyer of a specific bond and/or insurance policy, Seller shall not amend, cancel, suspend or otherwise
change such bond and/or policy without the prior written consent of Buyer. 


  

	9.10	 Wet Mortgage Loans. In connection with the funding, if applicable, of a Wet Mortgage Loan through a Closing Agent, 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 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
(a) Mortgage Loans or other loans extended in the ordinary course of Seller’s mortgage banking business (which, for purposes of this Agreement, includes the businesses conducted by Seller’s wholly-owned subsidiaries, Joliet Mortgage
Reinsurance Company and PCIC Corporation), or (b) so long as no Potential Default or Event of Default then exists or would be caused thereby, investments in subsidiaries acquired by Seller (or Seller’s parent) as a result of such
parent’s merger transaction with Centex Corporation. 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 business. 


  

	10.2	 Debt and Subordinated Debt. Seller shall not, either directly or indirectly, without the prior written consent of Buyer, pay any 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 Subordinated Debt until all obligations of Seller hereunder have been paid and performed in full. Upon the occurrence and during the continuance of an Event of Default, Seller shall
not incur additional Debt or make payments on existing Debt without the prior written consent of Buyer; provided, however, that for as long as such Event of Default is occurring, Seller may, without the prior written consent of Buyer, (i) incur
and pay Debt that is, 



  

 29 









	 	 
or was, incurred in the ordinary course of business of Seller’s mortgage banking business as long as the payments have not been changed, modified or accelerated
as a result of the Event of Default, (ii) pay existing secured Debt using the proceeds from the collateral securing such Debt and (iii) pay Debt, whether secured or unsecured, which payments have been changed, modified or accelerated as a
result of the Event of Default as long as Seller satisfies its then outstanding obligations under this Agreement to Buyer in accordance with the same changed, modified or accelerated payment terms and conditions. By way of example but not limitation
for the foregoing subsection (iii), if the Debt is accelerated as a result of the Event of Default and Seller is required to immediately pay fifty percent (50%) of the outstanding Debt, Seller may pay such amount of the Debt as long as Seller
shall also pays fifty percent (50%) of then current outstanding obligations owed to Buyer under this Agreement. 


  

	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 reasonably be expected to 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, except for any such loss
or termination that would not reasonably be expected to result in a Material and Adverse Change, 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. 


  

	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 if such action will cause a Potential Default or an Event of Default or, except with respect to liens arising out of any then existing mortgage warehouse or repurchase facility, if a Potential Default or an Event of Default
has occurred and is existing. 


  

	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, (i) remit
loan proceeds to its Affiliates arising out of the sale of homes by such Affiliates financed by Seller and (ii) 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 such transaction is otherwise permitted by Section 10.1 or Section 10.5, if such transaction consists of the payment of management fees or other intercompany payables to Seller’s
parent in a manner and amount consistent with past practice or if such transaction is (A) in the ordinary course of Seller’s mortgage banking business (including mortgage warehouse loan or repurchase transactions with Seller’s parent)
and (B) 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. 


  

 30 









	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 substantially all 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. The Payment of Dividends and Retirement of Stock covenant shall be as set forth in 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. 


  

	10.11	 Business Practices. Seller shall not, without the prior written approval of Buyer (such approval shall not be unreasonably withheld), directly or indirectly,
engage in any business practices that differ materially from (i) those currently engaged in by Seller or its subsidiaries or (ii) those engaged in by 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. 


 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 (which is not cured or waived within any applicable grace or notice period) with respect to any indebtedness or of any loan
agreement, note, mortgage, security agreement, indenture, guaranty or other material 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; 


  

 31 









	 	(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 Sections 9.1, 9.3 and 9.4 or Article
10 of this Agreement, irrespective of any cure period; provided, however, with respect to Section 9.1, if Seller fails to deliver any report or information within the time frame required therein, such failure shall not have been
remedied within three (3) Business Days after receipt of notice from Buyer of such occurrence; 


  

	 	(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; 


  

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


  

	 	(i)	 one or more judgments or decrees shall be entered against Seller involving a liability of ten percent (10%) of Seller’s Tangible Net Worth 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 ten percent (10%) of Seller’s Tangible Net Worth (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 ten percent (10%) of Seller’s Tangible Net Worth; 


  

	 	(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 material breach or default by Seller’s parent (which is not cured or waived within any applicable grace or notice period) with respect to any indebtness or of any
loan agreement, note, mortgage, security agreement, indenture, guaranty or other material agreement to which Seller is a party or by which it is bound; 


  


 32 









	 	(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)	 the failure of Seller to cure, within five (5) days upon discovery by Seller or notice by Buyer of 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. 
  

	11.2	 Remedies. Upon the occurrence and during the continuance 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 and during the continuance 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 or
otherwise distribute or transfer any of Seller’s property and assets to any Person (except with respect to the payment of Debt permitted under Section 10.2) without the prior written consent of Buyer. Upon the occurrence and during
the continuation 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 



  

 33 









	 	 
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. 


  

	11.4	 Sale of Purchased Assets. During the existence of 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; provided that Buyer acts in good faith and not in a manner which is
reckless or involves willful misconduct. 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. 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 unless recovered from the applicable mortgagor. 


  

 34 









	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. 


  

	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, upon the occurrence and during the continuance of an Event of Default or as provided under Section 3.5(f),
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, subject to Section 3.5
(f), 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. 


  

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	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. 


 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 to the extent such liabilities,
losses and damages result 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)	 Upon Occurrence of Event of Default. Upon the occurrence and during the continuance of an Event of Default, Buyer may, at its sole option and absolute discretion,
and in addition to any other rights and remedies afforded Buyer, terminate this Agreement by providing notice to Seller, in which case, all indebtedness due Buyer under the Principal Agreements shall be immediately due and payable. Alternatively, at
the sole option and absolute discretion of Buyer, in lieu of terminating this Agreement upon the occurrence and during the continuance of an Event of Default, Buyer may agree to allow Seller a wind up period (to be determined by Buyer in its sole
and absolute discretion) in which Buyer shall 



  

 36 









	 	 
continue to engage in Transactions with Seller and in which Seller shall permitted to pay the Repurchase Price for any pending Transactions. The terms and conditions
of this wind up period, including, without limitation, the terms and conditions for the repayment of the Repurchase Prices for pending Transactions, shall be subject to the sole and absolute discretion of Buyer. 


  

	 	(b)	 Upon Termination of EPP Addendum. If the EPP Addendum is terminated for any reason, unless otherwise agreed to by Buyer in writing, this Agreement shall
automatically terminate as of the same date of the EPP Addendum, regardless of whether Seller is in compliance with the terms and conditions of this Agreement at the time of such termination. 


  

	 	(c)	 Upon Other Circumstances. In addition to the foregoing termination rights, 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. 


  

	 	(d)	 Obligations Upon Termination or Expiration. Upon termination or expiration of this Agreement for any reason, Seller acknowledges and understands that Buyer is under
no obligation whatsoever to renew or continue the term of this Agreement for any period of time. Further, 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 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 the parties mutually 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 supersedes any and all prior or contemporaneous oral or written communications with respect to the subject
matter hereof, all of which such 



  

 37 









	 	 
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 this 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 this 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. 


  

	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 to any Affiliate or, with the prior written consent of Seller (which consent shall not be unreasonably withheld
or delayed) so long as an Event of Default does not then exist, to any other Person, and upon providing notice to Seller of such transfer or assignment (which, if applicable, has been consented to by Seller), 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. 


  

 38 









	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

		    	 8511 Fallbrook Ave. 3rd
Floor

		    	 Mail Code: CA9-911-03-23

		    	 West Hills, CA 91304

		    	 Facsimile No: (818) 316-8841


 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 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 



  

 39 









	 	 
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. 


  

	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; 


  

 40 









	 	(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, advisors, 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 as long as the Affiliate is advised of the confidential nature of the Confidential Information and the obligations under this Section to treats and safeguard it as such. The Buyer
shall be responsible for any breaches by its Affiliates of the requirements of this Section with respect to any Confidential Information of Seller. 


 Buyer shall not disclose any Confidential Information to any prospective un-Affiliated transferee, assignee or participant unless such un-Affiliated Person shall have agreed, in writing for the benefit of
Seller and prior to any such disclosure, to be bound by the terms of this Section 14.17. 
 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); 


  

	 	(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). 


  

 41 









	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”) or any successor agency to the OTS. Seller shall comply with all regulatory requirements of Buyer and Seller shall grant
regulatory agencies, including, but not limited to, the OTS (or any successor agency 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 follows) 
  

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 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:
	 	 /s/ Jeffrey Martin
	 	
					
		 		 	 Name:
	 	 Jeffrey Martin
	 	
					
		 		 	 Title:
	 	 AVP
	 	
				
	SELLER:	 		 	 PULTE MORTGAGE LLC
	 	
					
		 		 	 By:
	 	 /s/ David M. Bruining
	 	
					
		 		 	 Name:
	 	 David M. Bruining
	 	
					
		 		 	 Title:
	 	 SVP / CFO
	 	

  

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 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 
  

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 (c)         if the Purchased Mortgage Loan is a Defective Mortgage Loan,
zero. 
 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. In determining the Asset Value of any Purchased Mortgage Loan, Buyer shall use valuations that are consistently applied by Buyer to all other customers for determining the Asset Value of the Purchased Mortgage Loan
and, at the request of Seller, and to the extent such documentation exists, Buyer shall provide Seller with documentation reasonably related to and supporting any such determination. 
 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 agreed to by Buyer and Seller, 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 

  

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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. 
 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 








 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: The initial Custodian as set forth in the Transactions Terms Letter, and upon removal of such Person, Bank of America, N.A. or such other custodian selected by Buyer in its sole and good faith
discretion and reasonably acceptable to Seller. 
 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: One Month LIBOR plus 5%, but not to exceed the maximum nonusurious interest rate, if any, that at any time, or from time to time, may be contracted for, taken, reserved, charged
or received under the laws of the United States and the State of California. 
 Defective Loan Fee: A fee equal to five hundred dollars
($500) payable by Seller for each Purchased Mortgage Loan that is or becomes a Defective Mortgage Loan; provided that no such fee shall be charged to Seller if Seller cures the deficiencies with respect to such Mortgage Loan, or repurchases such
Mortgage Loan, within ten (10) calendar days after Seller’s receipt of notice that such Mortgage Loan is being classified as 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. 
 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, 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, 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). 

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. 
  

 A-6 








 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 under Buyer’s Correspondent Lending Client Guide. 
 Intercreditor 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. 
 Liquidity: If applicable, the cash and Cash Equivalents liquidity requirement of Seller as set forth in the Transactions Terms Letter. 
 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. 
  

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 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)         except if such Mortgage Loan is registered with MERS, an original Assignment in blank, executed by Seller, a
certified or true copy of the Mortgage securing the Mortgage Note, in recordable form but unrecorded, with a complete chain of intervening assignments from the originator to Seller; and 
 (c)         a certified or true copy of the Mortgage securing the Mortgage Note. 
 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-8 








 (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, 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; (ii) the original policy of mortgagee’s title insurance or unexpired commitment for a policy of mortgagee’s title insurance; (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. 
 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. 
  

 A-9 








 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 are 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; provided that, upon the return of any amounts by Buyer to Seller pursuant to Section 3.5(c) which constitute Proceeds, such returned
amounts shall no longer be considered Proceeds for purposes of this Agreement. 
 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. 
 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 fair 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
fair 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-10 








 (a)        all Purchased 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 which 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, as such
rights relate to Purchased Mortgage Loans; 
 (j)        All property of Seller related to the Purchased
Assets, 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; 
 (k)        All products and Proceeds of the foregoing Purchased Assets; and

 (l)        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. 
  

 A-11 








 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. The initial interim Servicer shall be Seller. 
 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, 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.

 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 

  

 A-12 








 
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. 
 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. 
 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, 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. 
  

 A-13 








 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, 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 








 EXHIBIT B 
 IRREVOCABLE CLOSING INSTRUCTIONS 
  

					
	 July 31, 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 July 31, 2009 (the “Agreement”) between Pulte Mortgage 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.:
	 	 026009593

	 Account No.:
	 	 1233460784

	 Credit:
	 	 Warehouse Lending – Payoff Account

	 Reference:
	 	 Pulte Mortgage 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 or true 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.
	 		 	 Pulte Mortgage LLC

					
	 By:
	 	  
	 		 	 By:
	 	  

					
	 Name:
	 	  
	 		 	 Name:
	 	 David M. Bruining

					
	 Title:
	 	  
	 		 	 Title:
	 	 SVP / CFO


  

 B-2 








 EXHIBIT C 
 SECRETARY’S CERTIFICATE 
 I,
                                , am the duly elected Secretary of Pulte Mortgage
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
			
	 	    	 	    	 
			
	 	    	 	    	 
			
	 	    	 	    	 
			
	 	    	 	    	 

  

	2.	 Attached hereto as Exhibit A is a true and complete copy of the Certificate of Formation of the Company, as in full force and effect. No amendment or other document
relating to or affecting the Certificate of Formation has been filed in the office of the Secretary of State of the state of Delaware and no action has been taken by the Company or its members, managers 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 Amended and Restated Limited Liability Agreement of the Company, as in full force and effect, and such
Amended and Restated Limited Liability Agreement has 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. 


  

							
	 Dated:
                                    
	 		 	 By:
	 	  

		 		 		 	 Secretary


  

 C-1 








 EXHIBIT D 
 RESOLUTIONS 
 WHEREAS, Pulte Mortgage LLC (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 (the
“Agreement”). 
 NOW, THEREFORE, IT IS RESOLVED BY THE BOARD OF MANAGERS OF THE COMPANY 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, attached hereto; 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
		
	 	  	 
		
	 	  	 
		
	 	  	 
		
	 	  	 
		
	 	  	 

  

	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

			
	 	    	 	    	 
			
	 	    	 	    	 
			
	 	    	 	    	 
			
	 	    	 	    	 
			
	 	    	 	    	 

  

 D-1 









	4.	 The employees of Buyer are hereby appointed as assistant secretaries and vice presidents of the Company, and, as such, are authorized to, in the name of the Company, do
any of the following: 


  

	 	(a)	 to receive, endorse and collect all checks made payable to the order of the Company 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; 


  

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


  

	 	(g)	 upon Buyer’s termination of the Company as the Servicer with respect to any Purchased Assets as permitted under the Agreement, to service and administer the Purchased
Assets, including, without limitation, the receipt and collection of all sums payable in respect of the Purchased Assets. 


  

 D-2 








 EXHIBIT E 
 OFFICER’S CERTIFICATE 
 I,
                            , the duly elected
                                 of Pulte Mortgage 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 July 31, 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                         , no material
change in the Executive Management (as defined in the Agreement), business, assets or financial 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
                                        .

  

			
		
	 By:
	 	  

		
	 Name:
	 	  

		
	 Title:
	 	  



  

 E-1 








 EXHIBIT F 
 ASSIGNMENT OF CLOSING PROTECTION LETTER 
 Pulte Mortgage 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”) with respect to mortgage
loans being purchased by Assignee. 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 with respect to mortgage loans being purchased by Assignee 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 July 31,
2009. 
 Pulte Mortgage LLC 
  

			
		
	 By:
	 	  

		
	 Name:
	 	 David M. Bruining

		
	 Title:
	 	 SVP / CFO


  

 F-1 








 EXHIBIT G 
 ASSIGNMENT OF FIDELITY BOND AND ERRORS AND OMISSION POLICY 
 Pulte Mortgage 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”) with respect
to mortgage loans being purchased by Assignee. 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 with respect to mortgage loans being purchased by Assignee 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 July 31, 2009. 
 Pulte Mortgage LLC 
  

			
		
	 By:
	 	  

		
	 Name:
	 	  

		
	 Title:
	 	  


  

 G-1 








 EXHIBIT H 
 FORM OF POWER OF ATTORNEY 
 KNOW ALL MEN BY THESE PRESENTS: 
 WHEREAS, Bank of America, N.A. (“Buyer”) and Pulte Mortgage LLC (“Seller”) have entered into the Master Repurchase Agreement, dated as of July 31, 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)	 upon termination of Seller by Buyer as the Servicer with respect to any Purchased Asset as permitted under the Agreement, to service and administer the Purchased Asset,
including, without limitation, the receipt and collection of all sums payable in respect of the Purchased Asset. 


 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. 
 Pulte Mortgage LLC 

 

			
	 By:
	 	  

		
	 Name:
	 	 Davd M. Bruining

		
	 Title:
	 	 SVP / CFO


  

 H-1 








 WITNESS my hand this
                     day of
                        , 20      . 
 STATE OF
                             
 County of                               

 This instrument was acknowledged, subscribed and sworn to before me this
                 day of
                              , by
                                         
                                
  

	
	  

	 Notary Public



 My Commission Expires:
                     
  

	
	 Notary Seal:



  

 H-2 








 EXHIBIT I 
 ACKNOWLEDGEMENT OF PASSWORD CONFIDENTIALITY AGREEMENT 
 Pulte Mortgage 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.warehouselending.com (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:
	  	  
	  		  	 Name:
	  	  
	  		  	 Name:
	  	  
	  	
									
	 Title:
	  	  
	  		  	 Title:
	  	  
	  		  	 Title:
	  	  
	  	

  

 J-1 









											
		 	   Pulte Mortgage LLC
	 		 		 		 	
	 Print Name:
	 	  
	 		 	 Number Assigned:
	 	  
	 	
						
	 Signature:
	 	  
	 		 	 Date:
	 	  
	 	

  

 J-2 








 EXHIBIT J 
 WIRING INSTRUCTIONS 
 Seller’s Wire Instructions: 
  

	
	 Account #;                                     
                                         
             

	
	 Account Holder’s name:                                 
                                      


	
	 ABA
#:                                        
                                         
              

	
	 Bank name:                                     
                                         
          

	
	 Bank
Address:                                       
                                         
    

	
	 Further
Credit:                                        
                                         
    


 Buyer’s Wire Instructions: 
  

	
	 Bank:

	 ABA No.:                                      
                                         
                        

	 Account No.:

	Reference:
	
	                                        
                         


 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 
 FORM OF SERVICER NOTICE 
 July 31, 2009 
 [                                ], as Servicer 
 [ADDRESS] 
 Attention:
             
  

	 	Re:	 Master Repurchase Agreement, dated as of July 31, 2009 (the “Repurchase Agreement”), by and among Pulte Mortgage, LLC (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
requisite limited liability company 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, except where the failure to be so qualified would not reasonably be expected to result in a material adverse effect on the business, operations, assets or financial condition of Seller.



  

	(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 limited liability company powers, have been duly authorized by all necessary limited liability company action and do not constitute or will not result in (i) a breach of any of the terms, conditions or provisions of
Seller’s certificate of formation or limited liability company agreement; (ii) a material breach of any legal restriction or any material 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 and subject to general principles of equity. 


  

	(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 would reasonably be expected to 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 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 are required to be so
disclosed and that would reasonably be expected to materially and 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 in writing, that (i) would reasonably be expected to render Seller unable to perform
its obligations under the Principal Agreements and all other documents contemplated thereby; (ii) would reasonably be expected to constitute a Potential Default or Event of Default; or (iii) would reasonably be expected to materially and
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 (i) Persons disclosed to Buyer at the time of application, or thereafter disclosed to Buyer, and, if required by
Buyer, such Persons have executed and delivered an Intercreditor Agreement (or will execute and deliver an Intercreditor Agreement within sixty (60) days following the Effective Date in accordance with Section 7.3), or
(ii) 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 Seller’s 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 in writing 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, would 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 material 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 shown to be due on such tax returns and reports, 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, except where such default would not reasonably be expected to result in a material adverse effect on the business, operations, assets or financial condition of Seller. 


  

	(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. 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 financial
condition 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 or
will be 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,
nor believes 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 is located at 7475 S. Joliet Street, Englewood, CO 80112; except that, on or about October 1,
2009, such office shall be moved to 7390 S. Iola Street, Englewood, CO 80112. 


 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, except as may be limited by bankruptcy or other laws affecting the enforcement of creditor’s rights generally and subject to general principles of equity, 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, 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 subject to general principles of equity, 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. Except with respect to completion escrows, as provided in written form, by Buyer’s Correspondent Lending Division (“CL”) as an accommodation to CL’s standard
guidelines, (i) there is no requirement for future advances and (ii) any and all requirements as to completion of any on-site or off-site improvements and as to disbursements of any escrow funds therefore 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. To the extent required under the applicable Mortgage Loan Documents, 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 limited liability company 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, except as may be limited by bankruptcy or other laws affecting the enforcement of creditor’s rights generally and subject to general principles of
equity, 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