SERVICE MORTGAGE LOANS TO BE SOLD TO FNMA.
(B)
FHLMC APPROVED SELLER/SERVICER OF MORTGAGE LOANS, ELIGIBLE TO
ORIGINATE, PURCHASE, HOLD, SELL, AND SERVICE MORTGAGE LOANS TO BE SOLD TO FHLMC.
(C)
GNMA APPROVED SELLER/SERVICER OF MORTGAGE LOANS, ELIGIBLE TO
ORIGINATE, PURCHASE, HOLD, SELL, AND SERVICE MORTGAGE LOANS TO BE SOLD TO GNMA.
(D)
HUD APPROVED LENDER, ELIGIBLE TO ORIGINATE, PURCHASE, HOLD, SELL
AND SERVICE FHA-INSURED MORTGAGE LOANS.
(E)
VA LENDER IN GOOD STANDING UNDER THE VA LOAN GUARANTEE PROGRAM
ELIGIBLE TO ORIGINATE, PURCHASE, HOLD, SELL, AND SERVICE VA-GUARANTEED MORTGAGE
LOANS.
27
(F)
A LENDER IN GOOD STANDING WITH ANY INVESTOR.
5.12
SPECIAL REPRESENTATIONS CONCERNING COLLATERAL.
THE COMPANY HEREBY
REPRESENTS AND WARRANTS TO THE LENDER, AS OF THE DATE OF THIS AGREEMENT AND AS
OF THE DATE OF EACH ADVANCE, THAT:
(A)
THE COMPANY IS THE LEGAL AND EQUITABLE OWNER AND HOLDER, FREE AND
CLEAR OF ALL LIENS (OTHER THAN LIENS GRANTED HEREUNDER), OF THE PLEDGED
MORTGAGES AND THE PLEDGED SECURITIES.
ALL PLEDGED MORTGAGES, PLEDGED
SECURITIES, AND PURCHASE COMMITMENTS HAVE BEEN DULY AUTHORIZED AND VALIDLY
GRANTED OR ISSUED TO THE COMPANY, AND ALL OF THE FOREGOING ITEMS OF COLLATERAL
COMPLY WITH ALL OF THE REQUIREMENTS OF THIS AGREEMENT, AND HAVE BEEN VALIDLY
PLEDGED OR ASSIGNED TO THE LENDER, SUBJECT TO NO OTHER LIENS.
(B)
THE COMPANY HAS, AND WILL CONTINUE TO HAVE, THE FULL RIGHT, POWER
AND AUTHORITY TO PLEDGE THE COLLATERAL PLEDGED AND TO BE PLEDGED BY IT
HEREUNDER.
(C)
ANY MORTGAGE LOAN AND RELATED DOCUMENTS INCLUDED IN THE PLEDGED
MORTGAGES (1) HAS BEEN DULY EXECUTED AND DELIVERED BY THE PARTIES THERETO AT A
CLOSING HELD NOT MORE THAN TWENTY-FIVE (25) DAYS PRIOR TO SUCH DATE; (2) HAS
BEEN MADE IN COMPLIANCE WITH ALL REQUIREMENTS OF THE REAL ESTATE SETTLEMENT
PROCEDURES ACT, EQUAL CREDIT OPPORTUNITY ACT, THE FEDERAL TRUTH-IN-LENDING ACT,
THE FINANCIAL INSTITUTIONS REFORM, RECOVERY AND ENFORCEMENT ACT, AND ALL OTHER
APPLICABLE LAWS AND REGULATIONS; (3) IS VALID AND ENFORCEABLE IN ACCORDANCE WITH
ITS TERMS, WITHOUT DEFENSE OR OFFSET; (4) HAS NOT BEEN MODIFIED OR AMENDED
EXCEPT IN WRITING, WHICH WRITING IS PART OF THE COLLATERAL DOCUMENTS, NOR ANY
REQUIREMENTS THEREOF WAIVED; AND (5) COMPLIES WITH THE TERMS OF THIS AGREEMENT
AND, IF APPLICABLE, WITH THE RELATED PURCHASE COMMITMENT HELD BY THE COMPANY.
EACH MORTGAGE LOAN HAS BEEN FULLY ADVANCED IN THE FACE AMOUNT THEREOF AND EACH
FIRST MORTGAGE CREATES A LIEN ON THE PREMISES DESCRIBED THEREIN; EACH SECOND
MORTGAGE IS A SECOND LIEN ON THE PREMISES DESCRIBED THEREIN, AND EACH MORTGAGE
LOAN HAS OR WILL HAVE A TITLE INSURANCE POLICY, IN AMERICAN LAND TITLE
ASSOCIATION FORM OR EQUIVALENT THEREOF, FROM A RECOGNIZED TITLE INSURANCE
COMPANY, INSURING THE PRIORITY OF THE LIEN OF THE MORTGAGE AND MEETING THE USUAL
REQUIREMENTS OF INVESTOR PURCHASING SUCH MORTGAGE LOANS.
(D)
NO MONETARY DEFAULT, NOR, TO THE KNOWLEDGE OF THE COMPANY, ANY
EVENT WHICH, WITH NOTICE OR LAPSE OF TIME OR BOTH, WOULD BECOME A DEFAULT, HAS
OCCURRED AND IS CONTINUING UNDER ANY MORTGAGE LOAN INCLUDED IN THE PLEDGED
MORTGAGES; PROVIDED, HOWEVER, THAT,