MORTGAGE LOANS.
(A)
AS A CONDITION OF PURCHASING A MORTGAGE LOAN, MBF REQUIRES SELLER
TO SERVICE SUCH MORTGAGE LOAN AS AGENT FOR MBF FOR THE ENTIRE PERIOD BETWEEN THE
ACQUISITION DATE AND THE REPURCHASE DATE OR THE TAKEOUT FUNDING DATE OF THE
MORTGAGE LOAN ON THE FOLLOWING TERMS AND CONDITIONS:
(I)
SELLER SHALL SERVICE AND ADMINISTER THE MORTGAGE LOAN ON BEHALF
OF MBF IN ACCORDANCE WITH PRUDENT MORTGAGE LOAN SERVICING STANDARDS AND
PROCEDURES GENERALLY ACCEPTED IN THE MORTGAGE BANKING INDUSTRY AND IN ACCORDANCE
WITH ALL APPLICABLE REQUIREMENTS OF THE AGENCIES, REQUIREMENTS OF LAW AND THE
REQUIREMENTS OF ANY APPLICABLE TAKEOUT COMMITMENT AND THE TAKEOUT INVESTOR, SO
THAT THE ELIGIBILITY OF THE MORTGAGE LOAN FOR PURCHASE UNDER SUCH TAKEOUT
COMMITMENT IS NOT VOIDED OR REDUCED BY SUCH SERVICING AND ADMINISTRATION;
(II)
SUBJECT TO SUBSECTION 5.1(D), SELLER SHALL AT ALL TIMES MAINTAIN
AND SAFEGUARD THE CREDIT FILE FOR THE MORTGAGE LOAN (INCLUDING PHOTOCOPIES OF
THE DOCUMENTS DELIVERED TO MBF PURSUANT TO SECTION 3.3), AND ACCURATE AND
COMPLETE RECORDS OF ITS SERVICING OF THE MORTGAGE LOAN; SELLER'S POSSESSION OF
SUCH CREDIT FILE BEING FOR THE SOLE PURPOSE OF SERVICING SUCH MORTGAGE LOAN AND
SUCH RETENTION AND POSSESSION BY SELLER BEING IN A CUSTODIAL CAPACITY ONLY;
(III)
MBF MAY, AT ANY TIME DURING SELLER'S BUSINESS HOURS ON REASONABLE
NOTICE, EXAMINE AND MAKE COPIES OF SUCH DOCUMENTS AND RECORDS;
(IV)
AT MBF'S REQUEST, SELLER SHALL PROMPTLY DELIVER TO MBF REPORTS
REGARDING THE STATUS OF ANY MORTGAGE LOAN BEING SERVICED BY SELLER, WHICH
REPORTS SHALL INCLUDE, BUT SHALL NOT BE LIMITED TO, A DESCRIPTION OF ANY DEFAULT
THEREUNDER FOR MORE THAN THIRTY (30) DAYS OR SUCH OTHER CIRCUMSTANCES THAT COULD
CAUSE A MATERIAL ADVERSE EFFECT ON SUCH MORTGAGE LOAN, MBF'S TITLE TO SUCH
MORTGAGE LOAN OR THE COLLATERAL SECURING SUCH MORTGAGE LOAN; SELLER MAY BE
REQUIRED TO DELIVER SUCH REPORTS UNTIL THE REPURCHASE OR THE TAKEOUT FUNDING
DATE OF THE MORTGAGE LOAN BY SELLER; AND
(V)
SELLER SHALL IMMEDIATELY NOTIFY MBF IF IT BECOMES AWARE OF ANY
PAYMENT DEFAULT THAT OCCURS UNDER THE MORTGAGE LOAN.
17
(B)
SELLER SHALL NOT ATTEMPT TO SELL OR TRANSFER ANY RIGHTS TO SERVICE
A MORTGAGE LOAN WITHOUT THE PRIOR CONSENT OF MBF.
(C)
SELLER SHALL RELEASE ITS CUSTODY OF THE CONTENTS OF ANY CREDIT
FILE ONLY IN ACCORDANCE WITH THE WRITTEN INSTRUCTIONS OF MBF, EXCEPT WHEN SUCH
RELEASE IS REQUIRED AS INCIDENTAL TO SELLER'S SERVICING OF THE MORTGAGE LOAN, IS
REQUIRED TO COMPLETE THE TAKEOUT FUNDING OR COMPLY WITH THE TAKEOUT GUIDELINES,
OR AS REQUIRED BY REQUIREMENTS OF LAW.
(D)
MBF RESERVES THE RIGHT TO APPOINT A SUCCESSOR SERVICER TO SERVICE
ANY MORTGAGE LOAN (EACH A "SUCCESSOR SERVICER") UPON THE OCCURRENCE OF AN EVENT
OF DEFAULT OR IF MBF REASONABLY BELIEVES SELLER HAS FAILED TO SERVICE THE
MORTGAGE LOANS CONSISTENT WITH THE USUAL AND CUSTOMARY PRACTICES OF EXPERIENCED
MORTGAGE LOAN SERVICERS.
IN THE EVENT OF SUCH AN APPOINTMENT, SELLER SHALL
PERFORM ALL ACTS AND TAKE ALL ACTION SO THAT ANY PART OF THE CREDIT FILE AND
RELATED SERVICING RECORDS