Document:

Exhibit 10.5

 

Agreement of Amendment

 

dated as of

 

September 30, 2013

 

In accordance with Section 11.02 of the Master Repurchase Agreement (the “MR Agreement”) dated as of March 30, 2011, between Excel Mortgage Servicing, Inc. a California corporation as the Seller and Alliance Bank of Arizona, a division of Western Alliance Bank as the Buyer, the following amendments to the MR Agreement shall take effect upon execution of this Agreement of Amendment by both the Seller and the Buyer (the “Amendment”).

 

Section 1.  Amendments.

 

(a)                              Schedule 4, FINANCIAL COVENANTS, item 3.  Liquidity Percentage. is hereby amended by deleting the “item 3” in its entirety.

 

(b)                              Schedule 4, FINANCIAL COVENANTS, item 4.  Minimum Liquidity. is hereby amended by deleting the “item 4” in its entirety and inserting the following in lieu thereof:

 

“4.  Minimum Liquidity.  The liquidity referenced in Section 7.14 of this Agreement is $7,500,000.00. Liquidity is defined as Cash or Cash Equivalents that is not restricted or pledged to another creditor.”

 

Section 2.  Waiver/No Default.

 

The Buyer hereby waives, concurrent with the effectiveness of the MR Agreement as of May 30, 2011, 2013, compliance with the Financial Covenants, Schedule 4, Section 3 (Liquidity Percentage) for the fiscal quarter ended June 30, 2013.  On the effective date of this Amendment, no Default or Event of Default shall have occurred and be continuing under the MR Agreement and each of the representations and warranties of Seller made in the MR Agreement shall be true and correct.

 

Section 3.  Limited Effect.

 

Except as expressly amended, waived and modified by this Amendment, the MR Agreement shall continue to be, and shall remain, in full force and effect in accordance with its terms.  The execution of this Amendment by the Buyer shall not operate as a waiver of any of its rights, powers or privileges under the MR Agreement or any related document.

 

Section 4.  Counterparts.

 

This Amendment may be executed by each of the parties hereto on any number of separate counterparts, each of which shall be an original and all of which taken together shall constitute one and the same instrument.  Delivery of an executed counterpart signature page to this Amendment in Portable Document Format (PDF) or by facsimile transmission shall be as effective as delivery of a manually executed original counterpart thereof.

 

Section 5.  GOVERNING LAW.

 

THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF ARIZONA.

 

1

 

	
SELLER
    	
BUYER
    
	
Excel Mortgage Servicing, Inc.
    	
ALLIANCE BANK OF ARIZONA, A DIVISION OF   WESTERN ALLIANCE BANK
    
	
 
    	
 
    
	
By:
    	
/s/ Todd Taylor
    	
 
    	
By:
    	
/s/ Albert Thuma
    
	
Name:
    	
Todd Taylor
    	
 
    	
Name:
    	
Albert Thuma
    
	
Title:
    	
Executive Vice President, CFO
    	
 
    	
Title:
    	
Vice President
    
	
Date:
    	
9/30/13
    	
 
    	
Date:
    	
9/30/13
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SELLER
    	
 
    
	
Excel Mortgage Servicing, Inc.
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ William Ashmore
    	
 
    	
 
    
	
Name:
    	
William Ashmore
    	
 
    	
 
    
	
Title:
    	
President, COO
    	
 
    	
 
    
	
Date:
    	
9/30/13
    	
 
    	
 
    

 

2

 

QUARTERLY COMPLIANCE CERTIFICATE

 

	
SELLER:
    	
Excel Mortgage   Servicing, Inc.
    
	
BUYER:
    	
Alliance Bank of Arizona, A Division of   Western Alliance Bank
    
	
TODAY’S DATE:
    	
     /     /201
    
	
REPORTING PERIOD ENDED:
    	
       month(s) ended        /     /201
    

 

This certificate is delivered to the Buyer under the Master Repurchase Agreement dated effective as of March 30, 2011 between the Seller and Alliance Bank of Arizona, A Division of Western Alliance Bank (the “Agreement”), all the defined terms of which have the same meanings when used herein.

 

I hereby certify that: (a) I am, and at all times mentioned herein have been, the duly elected, qualified, and acting officer of Seller designated below; (b) to the best of my knowledge, the Financial Statements of Seller from the period shown about (the “Reporting Period”) and which accompany this certificate were prepared in accordance with GAAP and present fairly the financial condition of Seller as of the end of the Reporting Period and the results of its operations for the Reporting Period; (c) all of the representations and warranties made by the Seller in Article V of the Agreement are true and correct in all material respects on the date of this certificate as if made on this date; (d) a review of the Agreement and of the activities of Seller during the Reporting Period has been made under my supervision with a view to determining Seller’s compliance with the covenants, requirements, terms, and conditions of the Agreement, and such review has not disclosed the existence during or at the end of the Reporting Period (and I have no knowledge of the existence as of the date hereof) of any Default or Event of Default, except as disclosed herein (which specifies the nature and period of existence of each Default or Event of Default, if any, and what action Seller has taken, is taking, and proposes to take with respect to each); and (e) the calculations described herein evidence that the Seller is in compliance with the requirements of the Agreement at the end of the Reporting Period (or if Seller is not in compliance, showing the extent of non-compliance and specifying the period of non-compliance and what actions Seller proposes to take with respect thereto).

 

	
Excel Mortgage   Servicing, Inc.
    	
 
    
	
By:
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    

 

3

 

	
SELLER:
    	
Excel Mortgage   Servicing, Inc.
    
	
REPORTING PERIOD ENDED:
    	
     /     /201
    

 

All financial calculations set forth herein are as of the end of the Reporting Period.

 

I.                                        TANGIBLE NET WORTH

 

	
The Tangible Net Worth of Seller is:
    	
 
    
	
Total Assets:
    	
$
    
	
Minus: Amounts Due from Affiliates
    	
$
    
	
Minus: 25% of Capitalized Mortgage Servicing Rights
    	
$
    
	
Minus: Total Liabilities:
    	
$
    
	
TANGIBLE NET WORTH:
    	
$
    
	
REQUIRED MINIMUM
    	
$20,000,000
    
	
In compliance?
    	
oYes oNo
    

 

II.                                   LEVERAGE RATIO

 

	
Total Liabilities:
    	
$
    
	
Minus: Subordinated Debt
    	
($                                 )
    
	
ADJUSTED TOTAL LIABILITIES
    	
 
    
	
Tangible Net Worth
    	
 
    
	
Plus: Subordinated Debt:
    	
 
    
	
ADJUSTED TANGIBLE NET WORTH
    	
$
    
	
ADJ. TOTAL LIABILTIES / ADJ. TANGIBLE NET WORTH   :
    	
    :1
    
	
MAXIMUM PERMITTED
    	
15:1
    
	
In compliance?
    	
oYes oNo
    

 

 

III.                              MINIMUM LIQUIDITY

 

	
Unencumbered Cash and Cash Equivalents
    	
$
    
	
MINIMUM REQUIRED
    	
$7,000,000
    
	
In   compliance?
    	
oYes oNo
    

 

IV.                               MINIMUM PROFITABILITY

 

	
Quarter End Net Profit
    	
$
    
	
Year-to-Date Net Profit
    	
$
    
	
MINIMUM REQUIRED
    	
$250,000 per quarter
    
	
In   compliance?
    	
oYes oNo
    

 

V.                                    OTHER REQUESTED INFORMATION

 

	
Total Liabilities under all warehouse and   repurchase facilities:
    	
$
    
	
Early Purchase Facilities:
    	
$
    

 

	
Total dollar value of funded loan volume   (Month or Quarter)
    	
$
    
	
Total number of loan units volume (Month or   Quarter)
    	
$
    

 

VI.                               DEFAULTS OR EVENTS OF DEFAULT

 

Disclose nature and period of existence and action being taken in connection therewith; if none, write “None”:Exhibit 10.6

 

June 18, 2013

 

	
Excel Mortgage Servicing, Inc.
    	
 
    	
AmeriHome Mortgage Corporation
    
	
19500 Jamboree Road
    	
 
    	
19500 Jamboree Road
    
	
Irvine, CA 92162
    	
 
    	
Irvine, CA 92162
    
	
 
    	
 
    	
 
    
	
Integrated Real Estate Service Corporation
    	
 
    	
 
    
	
19500 Jamboree Road
    	
 
    	
 
    
	
Irvine, CA 92162
    	
 
    	
 
    

 

Re:  Sixth Amendment to Master Repurchase Agreement and Pricing Letter (“Sixth Amendment”).

 

This Sixth Amendment is made this 18th day of June, 2013 (the “Amendment Effective Date”), to that certain Master Repurchase Agreement, dated August 31, 2011, as amended (the “Repurchase Agreement”) and the Pricing Letter, dated August 31, 2011, as amended (the “Pricing Letter”), in each case by and among Excel Mortgage Servicing, Inc. and AmeriHome Mortgage Corporation (each a “Seller” and, collectively, “Sellers”), and EverBank (“Buyer”).  The Repurchase Agreement, the Pricing Letter and all amendments are sometimes hereinafter collectively referred to as the “Agreement.”

 

WHEREAS, Sellers and Integrated Real Estate Service Corporation (“Guarantor”) requested that Buyer amend the Agreement; and

 

WHEREAS, Sellers, Guarantor and Buyer have agreed to amend the Agreement as set forth herein.

 

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree to amend the Agreement as follows:

 

SECTION 1.                            Amendments.

 

(a)                                 The following Certain Financial Condition Covenants contained in Section 3 of the Pricing Letter are hereby amended and restated in their entirety as follows:

 

(i)                                     Maintenance of Adjusted Tangible Net Worth. Excel shall maintain an Adjusted Tangible Net Worth of not less than twenty million dollars ($20,000,000.00).

 

(iv)                              Maintenance of Liquidity.  Excel shall ensure that it has cash and Cash Equivalents (excluding Restricted Cash or cash pledged to Persons other than Buyer), in an amount not less than seven million dollars ($7,000,000.00).

 

 

SECTION 2.                            Defined Terms.  Any terms capitalized but not otherwise defined herein should have the respective meanings set forth in the Agreement.

 

SECTION 3.                            Limited Effect.  Except as amended hereby, the Agreement shall continue in full force and effect in accordance with its terms.  Reference to this Sixth Amendment need not be made in the Agreement or any other instrument or document executed in connection therewith, or in any certificate, letter or communication issued or made pursuant to, or with respect to, the Agreement, any reference in any of such items to the Agreement being sufficient to refer to the Agreement as amended hereby.

 

SECTION 4.                            Representations.  In order to induce Buyer to execute and deliver this Sixth Amendment, each Seller hereby represents to Buyer that as of the date hereof, except as otherwise expressly waived by Buyer in writing, such Seller is in full compliance with all of the terms and conditions of the Agreement including without limitation, all of the representations and warranties and all of the affirmative and negative covenants, and no Default or Event of Default has occurred and is continuing under the Agreement.

 

SECTION 5.                            Governing Law. This Sixth Amendment and any claim, controversy or dispute arising under or related to or in connection with this Sixth Amendment, the relationship of the parties, and/or the interpretation and enforcement of the rights and duties of the parties will be governed by the laws of the State of New York without regard to any conflicts of law principles other than Sections 5-1401 and 5-1402 of the New York General Obligations Law which shall govern.

 

SECTION 6.                            Counterparts.  This Sixth Amendment may be executed in two (2) or more counterparts, each of which shall be deemed an original but all of which together shall constitute but one and the same agreement.  This Sixth Amendment, to the extent signed and delivered by facsimile or other electronic means, shall be treated in all manner and respects as an original agreement and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person.  No signatory to this Sixth Amendment shall raise the use of a facsimile machine or other electronic means to deliver a signature or the fact that any signature or agreement was transmitted or communicated through the use of a facsimile machine or other electronic means as a defense to the formation or enforceability of a contract and each such Person forever waives any such defense.

 

SECTION 7.                            Guarantor.  Guarantor acknowledges and agrees that nothing contained herein, and Guarantor’s signature hereon, shall not be deemed an acknowledgement, a course of conduct, a waiver or an amendment of the provisions of the Facility Guaranty, which continue in full force and effect and do not require any Guarantor’s consent to the actions taken hereunder.

 

[Signature Page Follows]

 

 

IN WITNESS WHEREOF, Sellers, Guarantor and Buyer have caused this Sixth Amendment to be executed and delivered as of the Amendment Effective Date.

 

	
EXCEL MORTGAGE   SERVICING,
    	
 
    	
EVERBANK, as Buyer
    
	
INC., as a Seller
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ Todd R. Taylor
    	
 
    	
By:
    	
/s/ Sean R. Delaney
    
	
Its: 
    	
      Todd   R. Taylor
    	
 
    	
Its:
    	
   Sean R.   Delaney
    
	
Title:
    	
         EVP/CFO
    	
 
    	
Title:
    	
     VP
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
AMERIHOME MORTGAGE
    	
 
    	
INTEGRATED REAL ESTATE
    
	
CORPORATION, as a   Seller
    	
 
    	
SERVICE CORPORATION, as   Guarantor
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/Todd R. Taylor
    	
 
    	
By:
    	
/s/ Todd R. Taylor
    
	
Its:
    	
  Todd R. Taylor
    	
 
    	
Its:
    	
   Todd R. Taylor
    
	
Title:
    	
       EVP/CFO
    	
 
    	
Title:
    	
     EVP/CFO

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