Document:

Exhibit

Exhibit 10.6.1

EXECUTION COPY

AMENDED AND RESTATED MASTER REPURCHASE AGREEMENT
Between
SUTTON FUNDING LLC, as a Purchaser,
BARCLAYS BANK PLC, as a Purchaser and Agent,
GREEN TREE SERVICING LLC, as a Seller
and
DITECH MORTGAGE CORP., as a Seller
Dated as of April 23, 2015

TABLE OF CONTENTS

		
	1.
	APPLICABILITY    1

		
	2.
	DEFINITIONS AND INTERPRETATION    1

		
	3.
	THE TRANSACTIONS    20

		
	4.
	CONFIRMATION    23

		
	5.
	TAKEOUT COMMITMENTS        23

		
	6.
	PAYMENT AND TRANSFER    24

		
	7.
	MARGIN MAINTENANCE    24

		
	8.
	TAXES; TAX TREATMENT    25

		
	9.
	SECURITY INTEREST; PURCHASER’S  APPOINTMENT AS ATTORNEY-IN-FACT    26

		
	10.
	CONDITIONS PRECEDENT    27

		
	11.
	RELEASE OF PURCHASED ASSETS    32

		
	12.
	RELIANCE    32

		
	13.
	REPRESENTATIONS AND WARRANTIES    32

		
	14.
	COVENANTS OF SELLER    35

		
	15.
	REPURCHASE OF PURCHASED ASSETS    42

		
	16.
	SERVICING OF THE MORTGAGE LOANS; SERVICER TERMINATION    42

		
	17.
	EVENTS OF DEFAULT    45

		
	18.
	REMEDIES    47

		
	19.
	DELAY NOT WAIVER; REMEDIES ARE CUMULATIVE    49

		
	20.
	USE OF EMPLOYEE PLAN ASSETS    50

		
	21.
	INDEMNITY; JOINT AND SEVERAL LIABILITY OF SELLERS    50

		
	22.
	WAIVER OF REDEMPTION AND DEFICIENCY RIGHTS    51

		
	23.
	REIMBURSEMENT; SET-OFF    51

		
	24.
	FURTHER ASSURANCES    52

		
	25.
	ENTIRE AGREEMENT; PRODUCT OF NEGOTIATION    52

		
	26.
	TERMINATION    53

		
	27.
	REHYPOTHECATION; ASSIGNMENT    53

		
	28.
	AMENDMENTS, ETC.    54

		
	29.
	SEVERABILITY    54

		
	30.
	BINDING EFFECT; GOVERNING LAW    54

		
	31.
	WAIVER OF JURY TRIAL; CONSENT TO JURISDICTION AND VENUE; SERVICE OF PROCESS    54

		
	32.
	SINGLE AGREEMENT    55

		
	33.
	INTENT    55

		
	34.
	NOTICES AND OTHER COMMUNICATIONS    55

		
	35.
	CONFIDENTIALITY    57

		
	36.
	DUE DILIGENCE    58

		
	37.
	USA PATRIOT ACT; OFAC AND ANTI-TERRORISM    59

		
	38.
	AMENDMENT AND RESTATEMENT OF ORIGINAL AGREEMENT; NO NOVATION    59

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SCHEDULES AND EXHIBITS
		
	EXHIBIT A
	CERTIFICATION

		
	EXHIBIT B
	REPRESENTATIONS AND WARRANTIES WITH RESPECT TO MORTGAGE LOANS

		
	EXHIBIT C
	FORM OF TRANSACTION NOTICE

		
	EXHIBIT D
	FORM OF GOODBYE LETTER

		
	EXHIBIT E
	FORM OF WAREHOUSE LENDER’S RELEASE

		
	EXHIBIT F-1
	LIST OF APPROVED MEMBERS OF THE MORTGAGE BACKED SECURITIES DIVISION OF THE FIXED INCOME CLEARING CORPORATION

		
	EXHIBIT F-2
	LIST OF APPROVED TAKEOUT INVESTORS FOR JUMBO MORTGAGE LOANS

		
	EXHIBIT G
	FORM OF ESCROW INSTRUCTION LETTER

		
	EXHIBIT H
	FORM OF SELLER MORTGAGE LOAN SCHEDULE 

		
	EXHIBIT I
	PURCHASER’S UNDERWRITING GUIDELINES 

		
	EXHIBIT J
	FORM OF CORRESPONDENT SELLER RELEASE

		
	EXHIBIT K
	SUTTON’S SPECIAL ELIGIBILITY REQUIREMENTS FOR FHA BUYOUT LOANS

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AMENDED AND RESTATED MASTER REPURCHASE AGREEMENT
Dated as of April 23, 2015
BETWEEN:
SUTTON FUNDING LLC, in its capacity as purchaser (“Sutton” or “Purchaser”), 
BARCLAYS BANK PLC, in its capacity as purchaser (“Barclays” or “Purchaser” and together with Sutton, “Purchasers”) and agent pursuant hereto (“Agent”),
DITECH MORTGAGE CORP., as a Seller
and
GREEN TREE SERVICING LLC, as a Seller.

		
	1.
	APPLICABILITY

Barclays and Sellers entered into that certain Master Repurchase Agreement, dated as of March 11, 2013 (as amended, supplemented or otherwise modified prior to the date hereof, the “Original Agreement”), which prescribes the manner of sale of Eligible Mortgage Loans and the method and manner by which Sellers will repurchase such Purchased Assets, and contemporaneously entered into the Program Documents (as such term is defined in such Original Agreement).
Purchasers and Sellers desire to further amend and restate the Original Agreement in its entirety to add Sutton as a party and to make certain other changes and contemporaneously enter into or reaffirm the Program Documents (as such term is defined in this Agreement), as applicable.  
Purchasers may from time to time, upon the terms and conditions set forth herein, agree to enter into transactions on a committed basis with respect to the Committed Amount and an uncommitted basis with respect to the Uncommitted Amount, in which Seller sells to Purchaser Eligible Mortgage Loans, on a servicing-released basis, against the transfer of funds by Purchaser, with a simultaneous agreement by Purchaser to transfer to Seller the related Purchased Assets on a date certain not later than one year following such transfer, against the transfer of funds by Seller; provided that the Aggregate MRA Purchase Price shall not exceed, as of any date of determination, the lesser of (a) the Maximum Aggregate Purchase Price (less the Aggregate EPF Purchase Price) or (b) the Asset Base; and provided further that any FHA Buyout Loans purchased hereunder shall be purchased by Sutton and any other Eligible Mortgage Loans purchased hereunder shall be purchased by Barclays.  Each such transaction shall be referred to herein as a “Transaction,” and shall be governed by this Agreement.  This Agreement sets forth the procedures to be used in connection with periodic requests for Purchaser to enter into Transactions with Seller.  Seller hereby acknowledges that Purchaser is under no obligation to enter into, any Transaction pursuant to this Agreement with respect to the Uncommitted Amount.  Seller acknowledges that during the term of this Agreement, Agent may undertake to join either one or both of Sheffield Receivables Corporation and Barclays Bank Delaware as additional purchasers under this Agreement, and Seller hereby consents to the joinder of such additional purchasers.

		
	2.
	DEFINITIONS AND INTERPRETATION

(a)    Defined Terms.

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“30+ Day Delinquent Mortgage Loan” means any Mortgage Loan at any time the Monthly Payment for which was not received within thirty (30) days after its Due Date (using the MBA method of delinquency).
“Accepted Servicing Practices” means with respect to any Mortgage Loan, those accepted, customary and prudent mortgage servicing practices (including collection procedures) of prudent mortgage banking institutions that service mortgage loans of the same type as the Mortgage Loans in the jurisdiction where the related Mortgaged Property is located, and which are in accordance with the requirements of each Agency Program, applicable law, FHA regulations and VA regulations, if applicable, and the requirements of any private mortgage insurer so that the FHA insurance, VA guarantee or any other applicable insurance or guarantee in respect of any Mortgage Loan is not voided or reduced.
“Accrual Period” means, with respect to each Monthly Payment Date for any Transaction, the immediately prior calendar month; provided that with respect to the first Monthly Payment Date of a Transaction following the related Purchase Date, the Accrual Period shall commence on the related Purchase Date.
“Act of Insolvency” means, with respect to any Person:
(i)    the filing of a voluntary petition (or the consent by such Person to the filing of any such petition against it), commencing, or authorizing the commencement of any case or proceeding under any bankruptcy, insolvency, reorganization, liquidation, dissolution or similar law relating to the protection of creditors, or suffering any such petition or proceeding to be commenced by another; or such Person shall consent to or seek the appointment of or the taking of possession by a custodian, receiver, conservator, trustee, liquidator, sequestrator or similar official of such Person, or for any substantial part of its Property, or any general assignment for the benefit of creditors;
(ii)    a proceeding shall have been instituted against such Person under any bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, dissolution, moratorium, delinquency or liquidation law of any jurisdiction, whether now or subsequently in effect, or a custodian, receiver, conservator, liquidator, trustee, sequestrator or similar official for such Person or such Person’s Property (as a debtor or creditor protection procedure) is appointed by any Governmental Authority having the jurisdiction to do so or takes possession of such Property and any such proceeding is not dismissed within thirty (30) days of filing;
(iii)    that such Person or any Affiliate shall become insolvent;
(iv)    that such Person shall (a) admit in writing its inability to pay or discharge its debts or obligations generally as they become due or mature, (b) admit in writing its inability to, or intention not to, perform any of its material obligations, or (c) generally fail to pay any of its debts or obligations as they become due or mature;
(v)    any Governmental Authority shall have seized or appropriated, or assumed custody or control of, all or any substantial part of the Property of such Person, or shall have taken any action to displace the management of such Person; 
(vi)    the audited annual financial statements of such Person or the notes thereto or other opinions or conclusions stated therein shall be qualified or limited by reference to the status of such Person as a “going concern” or a reference of similar import or shall indicate that such Person has a negative net worth or is insolvent; or

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(vii)    if such Person or any Affiliate is a corporation, such Person or any Affiliate or any of their Subsidiaries, shall take any corporate action in furtherance of, or the action of which would result in any of the foregoing actions.
“Additional Eligible Loan Criteria” shall have the meaning assigned thereto in the Pricing Side Letter.
“Additional Purchased Mortgage Loans” shall have the meaning assigned thereto in Section 7(b) hereof.
“Adjustable Rate Mortgage Loan” means a Mortgage Loan which provides for the adjustment of the Mortgage Interest Rate payable in respect thereto.
“Affiliate” means, with respect to (i) any specified Person (other than the Seller or the Guarantor), any other Person controlling or controlled by or under common control with such specified Person, (ii) the Seller, its Subsidiaries and the Guarantor, and (iii) the Guarantor, the Seller. For the purposes of this definition, “control” means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise and the terms “controlling,” “controlled by” and “under common control with” have meanings correlative to the meaning of “control.”
“Agency” means Freddie Mac, Fannie Mae or Ginnie Mae, as applicable.
“Agency Guide” means the Freddie Mac Guide, the Fannie Mae Guide, or the Ginnie Mae Guide, as applicable.
“Agency Program” means the Freddie Mac Program, the Fannie Mae Program, or the Ginnie Mae Program, as applicable.
“Agent” means Barclays Bank PLC and its successors in interest, as administrative agent for Purchaser and any additional purchasers that may become a party hereto.
“Aggregate EPF Purchase Price” means as of any date of determination, an amount equal to the aggregate Purchase Price (as defined in the Mortgage Loan Participation Purchase and Sale Agreement) for all Participation Certificates (as defined in the Mortgage Loan Participation Purchase and Sale Agreement) then owned by Purchaser under the Mortgage Loan Participation Purchase and Sale Agreement.
“Aggregate Forward Rate Locks” means the sum of the Principal Balance of the Mortgage Loans for which Seller has locked in Mortgage Interest Rates for potential borrowers.
“Aggregate MRA Purchase Price” means as of any date of determination, an amount equal to the aggregate Purchase Price for all Mortgage Loans then subject to Transactions under this Agreement.
“Agreement” means this Master Repurchase Agreement (including all exhibits, schedules and other addenda thereto), as it may be amended, further supplemented or otherwise modified from time to time.
“ALTA” means the American Land Title Association.
“Applicable Agency” means Ginnie Mae, Fannie Mae, or Freddie Mac, as applicable.
“Applicable Margin” shall have the meaning assigned thereto in the Pricing Side Letter.

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“Appraised Value” shall mean with respect to any Mortgage Loan, the lesser of (i) the value set forth on the appraisal (or similar valuation approved by the Applicable Agency) made in connection with the origination of the related Mortgage Loan as the value of the related Mortgaged Property, or (ii) the purchase price paid for the Mortgaged Property, provided, however, that in the case of a Mortgage Loan the proceeds of which are not used for the purchase of the Mortgaged Property, such value shall be based solely on the appraisal made in connection with the origination of such Mortgage Loan. 
“Approvals” means, with respect to either Seller, the approvals obtained by the Applicable Agency in designation of such Seller as an FHA-approved mortgagee or a VA-approved lender, as applicable, in good standing, and with respect to Green Tree Servicing LLC, the approvals obtained by the Applicable Agency in designation of such Seller as a Ginnie Mae-approved servicer, a Ginnie Mae-approved issuer, a Fannie Mae Seller/Servicer or a Freddie Mac-approved Servicer, as applicable, in good standing; provided, however, that a Seller is permitted to let Ginnie Mae, FHA and VA Approvals lapse if neither the Transactions under this Agreement or the participations under the Mortgage Loan Participation Purchase and Sale Agreement include Ginnie Mae, FHA or VA mortgage loans and if such Seller is not originating or acquiring such mortgage loans.
“Asset Base” means, on any date of determination and with respect to all Eligible Mortgage Loans then subject to Transactions and, to the extent applicable, all Eligible Mortgage Loans proposed to be sold to the Purchaser as of such date of determination, the lesser of (i) 100% of the Principal Balance of all such Eligible Mortgage Loans as of such date of determination and (ii) the product of the applicable Purchase Price Percentage multiplied by the Market Value of all such Eligible Mortgage Loans.  
“Assignment and Acceptance” shall have the meaning assigned thereto in Section 27(b) hereof.
“Assignment of Mortgage” means, with respect to any Mortgage, an assignment of the Mortgage, notice of transfer or equivalent instrument in recordable form, sufficient under the laws of the jurisdiction wherein the related Mortgaged Property is located to reflect the assignment of the Mortgage to Purchaser.
“Attorney Bailee Letter” shall have the meaning assigned thereto in the Custodial and Disbursement Agreement.
“Bank” means (i) U.S. Bank National Association and its successors and permitted assigns or (ii) such other bank as may be mutually acceptable to the Seller and the Purchaser.
“Bankruptcy Code” means 11 U.S.C. Section 101 et seq., as amended from time to time.
“Barclays Collection Account” means the account established by the Seller in accordance with Section 16(e) for the benefit of Barclays.
“Barclays” means Barclays Bank PLC, as a Purchaser hereunder. 
“Barclays Collection Account Control Agreement” means that certain Collection Account Control Agreement, dated as of April 10, 2013, by and among Barclays, the Seller and Bank, and joined by Ditech Mortgage Corp. pursuant to that certain Joinder Agreement to Deposit Account Control Agreement, dated February 28, 2014, in form and substance acceptable to Barclays entered into with respect to the Barclays Collection Account, as the same may be amended, modified or supplemented from time to time.
“Breakage Costs” shall have the meaning assigned thereto in Section 3(i) hereof.

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“Business Day” means any day other than (i) a Saturday or Sunday, (ii) a day upon which the New York Stock Exchange or the Federal Reserve Bank of New York is closed or (iii) with respect to any day on which the parties hereto have obligations to the Custodian or on which the Custodian has obligations to any party hereto, a day upon which the Custodian’s offices are closed.
“Certification” shall have the meaning assigned thereto in the Custodial and Disbursement Agreement.
“Change in Control” means (a) the sale, transfer, or other disposition of all or substantially all of Seller’s assets (excluding any such action taken in connection with any securitization transaction or routine sales of Mortgage Loans) or (b) the consummation of a merger or consolidation of Seller with or into another entity or any other corporate reorganization, if more than 50% of the combined voting power of the continuing or surviving entity’s equity outstanding immediately after such merger, consolidation or such other reorganization is owned by persons who were not equityholders of the Seller immediately prior to such merger, consolidation or other reorganization.
“Change in Law” means (a) the adoption of any law, rule or regulation after the date of this Agreement, (b) any change in any law, rule or regulation or in the interpretation or application thereof by any Governmental Authority after the date of this Agreement or (c) compliance by Purchaser (or any Affiliate thereof) with any request, guideline or directive (whether or not having the force of law) of any Governmental Authority made or issued after the date of this Agreement.
“Closing Protection Letter” shall mean, with respect to any Wet-Ink Mortgage Loan that becomes subject to a Transaction, a letter of indemnification from a title company approved by Purchaser, in its sole discretion, in any jurisdiction where insured closing letters are permitted under applicable law and regulation, addressed to Seller, which is fully assignable to Purchaser, with coverage that is customarily acceptable to Persons engaged in the origination of mortgage loans, identifying the Settlement Agent covered thereby, which may be in the form of a blanket letter.
“Code” means the Internal Revenue Code of 1986, as amended from time to time.
“Collection Account” means each of the Barclays Collection Account and the Sutton Collection Account.
“Collection Account Control Agreement” means each of the Barclays Collection Account Control Agreement and the Sutton Collection Account Control Agreement.
“Committed Amount” shall have the meaning assigned thereto in the Pricing Side Letter.
“Confirmation” shall have the meaning assigned thereto in Section 4 hereof.
“Contract” means an agreement between an Originator and any Obligor, pursuant to or under which such Obligor shall be obligated to pay for merchandise, insurance or services from time to time. 
“Correspondent Loan” means a Mortgage Loan that is (i) originated by a Correspondent Seller and underwritten in accordance with Seller’s underwriting guidelines and (ii) acquired by Seller from a Correspondent Seller in the ordinary course of business.  
“Correspondent Seller” means a mortgage loan originator that sells Mortgage Loans originated by it to Seller as a “correspondent” or “private label” client. 

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“Correspondent Seller Release” means, with respect to any Correspondent Loan, a release by the related Correspondent Seller, in the form of Exhibit J hereto (as the same may be modified, supplemented and in effect from time to time, subject to the approval of Purchaser), of all right, title and interest, including any security interest, in such Correspondent Loan.
“Custodial and Disbursement Agreement” means that certain Amended and Restated Custodial and Disbursement Agreement, dated as of April 24, 2013, among Green Tree Servicing LLC, Barclays, Custodian and Disbursement Agent and joined by Ditech Mortgage Corp. pursuant to that certain Omnibus Joinder Agreement to Amended and Restated Custodial and Disbursement Agreement and Account Control Agreement, dated February 28, 2014, entered into in connection with this Agreement and the Mortgage Loan Participation Purchase and Sale Agreement, as the same may be further amended, modified or supplemented from time to time.
“Custodian” means Wells Fargo Bank, N.A., and its successors and permitted assigns.
“Default” means any event that, with the giving of notice or the passage of time or both, would constitute an Event of Default.
“Default Rate” shall have the meaning assigned thereto in the Pricing Side Letter.
“Disbursement Account Control Agreement” means that certain Disbursement Account Control Agreement, dated as of March 11, 2013, by and among Green Tree Servicing LLC, Barclays and the Disbursement Agent and joined by Ditech Mortgage Corp. pursuant to that certain Omnibus Joinder Agreement to Amended and Restated Custodial and Disbursement Agreement and Account Control Agreement, dated February 28, 2014, as the same may be amended, modified or supplemented from time to time.
“Disbursement Agent” shall mean Wells Fargo Bank, N.A., and its successors and permitted assigns, or such other entity as mutually agreed upon by Agent and Seller.
“Ditech Electronic Tracking Agreement” means the electronic tracking agreement in form and substance acceptable to Barclays and Ditech Mortgage Corp., dated as of February 28, 2014, among Barclays, Ditech Mortgage Corp., MERSCORP Holdings, Inc. and Mortgage Electronic Registration Systems, Inc., entered into in connection with this Agreement, as the same may be amended, modified or supplemented from time to time.
“Dollars” or “$” means, unless otherwise expressly stated, lawful money of the United States of America.
“Due Date” means the day of the month on which the Monthly Payment is due on a Mortgage Loan, exclusive of any days of grace.
“Due Diligence Review Percentage” shall have the meaning assigned thereto in the Pricing Side Letter.
“Effective Date” means April 23, 2015.
“Electronic Tracking Agreement” shall mean, individually or collectively as the context may require, the Ditech Electronic Tracking Agreement and the Green Tree Electronic Tracking Agreement.

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“Electronic Transmission” means the delivery of information in an electronic format acceptable to the applicable recipient thereof.  An Electronic Transmission shall be considered written notice for all purposes hereof (except when a request or notice by its terms requires execution).
“Eligible Mortgage Loan” means a Mortgage Loan that (i) satisfies each of the representations and warranties in Exhibit B to the Agreement in all material respects, (ii) if such Mortgage Loan is (a) a Ginnie Mae Mortgage Loan, Fannie Mae Mortgage Loan or Freddie Mac Mortgage Loan, it is in Strict Compliance with the eligibility requirements of the Ginnie Mae Program, Fannie Mae Program, or Freddie Mac Program, respectively, or (b) Jumbo Mortgage Loan or FHA Buyout Loan, was underwritten and originated in accordance with Purchaser’s underwriting guidelines attached hereto as Exhibit I or Exhibit K, respectively, (iii) contains all required documents in the Mortgage File without exceptions unless otherwise waived by Purchaser or permitted below and (iv) satisfies the Additional Eligible Loan Criteria.
“EPF Custodial Account Control Agreement” means that certain Custodial Account Control Agreement, dated as of March 11, 2013, among Seller, Purchaser and Bank entered into in connection with the Mortgage Loan Participation Purchase and Sale Agreement, as the same shall be amended, supplemented or otherwise modified from time to time.
“EPF Pricing Side Letter” means that certain Pricing Side Letter, dated as of March 11, 2013, between Seller and Purchaser entered into in connection with the Mortgage Loan Participation Purchase and Sale Agreement, as the same shall be amended, supplemented or otherwise modified from time to time.  
“EPF Program Documents” means the Mortgage Loan Participation Purchase and Sale Agreement, the EPF Pricing Side Letter, the EPF Custodial Account Control Agreement and all other agreements, documents and instruments entered into by Seller on the one hand, and Purchaser or one of its Affiliates (or Custodian on its behalf) and/or Agent or one of its Affiliates on the other, in connection herewith or therewith with respect to the transactions contemplated hereunder or thereunder and all amendments, restatements, modifications or supplements thereto.
“ERISA” means, with respect to any Person, the Employee Retirement Income Security Act of 1974, as amended from time to time and any successor thereto, and the regulations promulgated and rulings issued thereunder.
“Error Rate” shall have the meaning assigned thereto in the Pricing Side Letter.
“Escrow Instruction Letter” means the Escrow Instruction Letter from Seller to the Settlement Agent, substantially in the form of Exhibit G hereto, as the same may be modified, supplemented and in effect from time to time.
“Escrow Payments” means, with respect to a Mortgage Loan, the amounts constituting ground rents, taxes, assessments, water charges, sewer rents, municipal charges, mortgage insurance premiums, fire and hazard insurance premiums, condominium charges and other payments as may be required to be escrowed by the Mortgagor with the Mortgagee pursuant to the terms of the Mortgage or any other document.
“Event of Default” shall have the meaning assigned thereto in Section 17 hereof.
“Fannie Mae” means Fannie Mae or any successor thereto.
“Fannie Mae Guide” means the Fannie Mae MBS Selling and Servicing Guide, as such Guide may hereafter from time to time be amended.

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“Fannie Mae Mortgage Loan” means a mortgage loan that is in Strict Compliance on the related Purchase Date with the eligibility requirements specified for the applicable Fannie Mae Program described in the Fannie Mae Guide, subject to any variances and/or waivers received by the Seller from Fannie Mae.
“Fannie Mae Program” means the Fannie Mae Guaranteed Mortgage-Backed Securities Programs, as described in the Fannie Mae Guide.
“Fannie Mae Security” means an ownership interest in a pool of Fannie Mae Mortgage Loans, evidenced by a book-entry account in a depository institution having book-entry accounts at the Federal Reserve Bank of New York, issued and guaranteed, with respect to timely payment of interest and ultimate payment of principal, by Fannie Mae and backed by a pool of Fannie Mae Mortgage Loans, in substantially the principal amount and with substantially the other terms as specified with respect to such Fannie Mae Security in the related Takeout Commitment, if any.
“FDIC” means the Federal Deposit Insurance Corporation or any successor thereto.
“FHA” means the Federal Housing Administration, an agency within HUD, or any successor thereto, and including the Federal Housing Commissioner and the Secretary of Housing and Urban Development where appropriate under the FHA regulations.
“FHA Buyout Loan” means an Eligible Mortgage Loan that (a) is insured by FHA, (b) is a Ginnie Mae Mortgage Loan, (c) has been purchased out of a Ginnie Mae Security, and (d)  is not a Modified Loan.
“FICO Score” means the credit score of the Mortgagor provided by Fair, Isaac & Company, Inc. or such other organization providing credit scores on or immediately prior to the Origination Date of a Mortgage Loan.
“Foreign Purchaser” shall have the meaning assigned thereto in Section 8(d).
“Freddie Mac” means Freddie Mac, and its successors in interest.
“Freddie Mac Guide” means the Freddie Mac Sellers’ and Servicers’ Guide, as such Guide may hereafter from time to time be amended.
“Freddie Mac Mortgage Loan” means a mortgage loan that is in Strict Compliance on the related Purchase Date with the eligibility requirements specified for the applicable Freddie Mac Program described in the Freddie Mac Guide, subject to any variances and/or waivers received by the Seller from Freddie Mac.
“Freddie Mac Program” means the Freddie Mac Home Mortgage Guarantor Program or the Freddie Mac FHA/VA Home Mortgage Guarantor Program, as described in the Freddie Mac Guide.
“Freddie Mac Security” means a modified pass-through mortgage-backed participation certificate, evidenced by a book-entry account in a depository institution having book-entry accounts at the Federal Reserve Bank of New York, issued and guaranteed, with respect to timely payment of interest and ultimate payment of principal, by Freddie Mac and backed by a pool of Freddie Mac Mortgage Loans, in substantially the principal amount and with substantially the other terms as specified with respect to such Freddie Mac Security in the related Takeout Commitment, if any.
“GAAP” means generally accepted accounting principles as in effect from time to time in the United States of America.

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“Ginnie Mae” means the Government National Mortgage Association and its successors in interest, a wholly-owned corporate instrumentality of the government of the United States of America.
“Ginnie Mae Guide” means the Ginnie Mae Mortgage-Backed Securities Guide, as such Guide may hereafter from time to time be amended.
“Ginnie Mae Mortgage Loan” means a mortgage loan that is in Strict Compliance on the related Purchase Date with the eligibility requirements specified for the applicable Ginnie Mae Program described in the applicable Ginnie Mae Guide, subject to any variances and/or waivers received by the Seller from Ginnie Mae.
“Ginnie Mae Program” means the Ginnie Mae Mortgage-Backed Securities Programs, as described in the Ginnie Mae Guide.
“Ginnie Mae Security” means a fully-modified pass-through mortgage-backed certificate guaranteed by Ginnie Mae, evidenced by a book-entry account in a depository institution having book-entry accounts at the Federal Reserve Bank of New York and backed by a pool of Ginnie Mae Mortgage Loans, in substantially the principal amount and with substantially the other terms as specified with respect to such Ginnie Mae Security in the related Takeout Commitment.
“Governmental Authority” means any nation or government, any state or other political subdivision, agency or instrumentality thereof, or any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government and any court or arbitrator having jurisdiction over Seller any of its Subsidiaries or any of their Property.
“Green Tree Electronic Tracking Agreement” means the electronic tracking agreement in form and substance acceptable to Barclays and Green Tree Servicing LLC, dated as of March 11, 2013, among Purchaser, Green Tree Servicing LLC, MERSCORP Holdings, Inc. and Mortgage Electronic Registration Systems, Inc., entered into in connection with this Agreement and the Mortgage Loan Participation Purchase and Sale Agreement, as the same may be amended, modified or supplemented from time to time.
“Guarantor” means Walter Investment Management Corp.
“Guaranty” means the Guaranty Agreement of the Guarantor in favor of Purchaser, dated as of the date hereof, as the same may be amended, supplemented or otherwise modified from time to time.
“HARP Mortgage Loan” means a Fannie Mae Loan or a Freddie Mac Loan that fully conforms to the Home Affordable Refinance Program (as such program is amended, supplemented or otherwise modified, from time to time), or is referred to by Fannie Mae as a “Refi Plus mortgage loan” or “DU Refi Plus mortgage loan”, or by Freddie Mac as a “Relief Refinance Mortgage,” respectively. 
“Hedge Instrument” means any interest rate cap agreement, interest rate floor agreement, interest rate swap agreement or other interest rate hedging agreement entered into by Seller with a counterparty reasonably acceptable to Agent, in each case with respect to the Mortgage Loans.
“High Cost Mortgage Loan” means a Mortgage Loan that is (a) subject to, covered by or in violation of the provisions of the Homeownership and Equity Protection Act of 1994, as amended, (b) a “high cost,” “covered,” “threshold,” “abusive,” “predatory” or “high risk” mortgage loan under any federal, state or local law, or any similarly classified loan using different terminology under any law imposing heightened regulation, scrutiny or additional legal liability for residential mortgage loans having high interest rates, 

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points and/or fees, or any other state or other regulation providing assignee liability to holders of such mortgage loans, (c) subject to or in violation of any such or comparable federal, state or local statutes or regulations, or (d) a “High Cost Loan” or “Covered Loan,” as applicable, as such terms are defined in the current version of the Standard & Poor’s LEVELS® Glossary Revised, Appendix E.
“HUD” means the Department of Housing and Urban Development, or any federal agency or official thereof which may from time to time succeed to the functions thereof with regard to FHA mortgage insurance.  The term “HUD,” for purposes of this Agreement, is also deemed to include subdivisions thereof such as the FHA and Government National Mortgage Association.
“Income” means, with respect to any Purchased Asset at any time, any principal and/or interest thereon.
“Indebtedness” means, with respect to any Person as of any date of determination: (a) obligations created, issued or incurred by such Person for borrowed money (whether by loan, the issuance and sale of debt securities or the sale of Property to another Person subject to an understanding or agreement, contingent or otherwise, to repurchase such Property from such Person); (b) obligations to pay the deferred purchase or acquisition price of Property or services, other than trade accounts payable (other than for borrowed money) arising, and accrued expenses incurred, in the ordinary course of business so long as such trade accounts payable are payable and paid within ninety (90) days of the date the respective goods are delivered or the respective services are rendered; (c) indebtedness of others secured by a Lien on the Property of such Person, whether or not the respective indebtedness so secured has been assumed by such Person; (d) obligations (contingent or otherwise) in respect of letters of credit or similar instruments issued for account of such Person; (e) capital lease obligations; (f) payment obligations under repurchase agreements, single seller financing facilities, warehouse facilities and other lines of credit; (g) indebtedness of others guaranteed on a recourse or partial recourse basis by such Person; (h) all obligations incurred in connection with the acquisition or carrying of fixed assets; (i) indebtedness of general partnerships of which such Person is a general partner; and (j) any other known or contingent liabilities of such Person.
“Indemnified Party” shall have the meaning assigned thereto in Section 21(a).
“Initial Fee” shall have the meaning assigned thereto in the Pricing Side Letter.
“Investment Company Act” means the Investment Company Act of 1940, as amended, including all rules and regulations promulgated thereunder.
“Jumbo Mortgage Loan” means a first lien mortgage loan that conforms with all requirements of the Purchaser’s underwriting guidelines attached hereto as Exhibit I, as the same may be amended, supplemented or otherwise modified from time to time.
“LIBOR” means for each day, the rate (adjusted for statutory reserve requirements for eurocurrency liabilities) for eurodollar deposits for a period equal to one month appearing on Bloomberg Screen US 0001M Page or if such rate ceases to appear on Bloomberg Screen US 0001M Page, or any other service providing comparable rate quotations at approximately 11:00 a.m., London time, on the applicable date of determination, or such interpolated rate as determined by the Agent.
“Lien” means any mortgage, deed of trust, lien, claim, pledge, charge, security interest or similar encumbrance.

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“Loan-to-Value Ratio” means, as of any date of determination, the fraction, expressed as a percentage, the numerator of which is the principal balance of the related Mortgage Loan at such date and the denominator of which is the lesser of (a) the Appraised Value of the Mortgaged Property at the origination of such Mortgage Loan, and (b) if the Mortgaged Property was purchased within twelve (12) months of the origination of the Mortgage Loan, the purchase price of the related Mortgaged Property.
“Low FICO FHA/VA Loan Sublimit” shall have the meaning assigned thereto in the Pricing Side Letter.
“Margin Call” shall have the meaning assigned thereto in Section 7(b) hereof.
“Margin Deficit” shall have the meaning assigned thereto in Section 7(b) hereof.
“Market Value” means, with respect to any Transaction and as of any date of determination, (i) the value ascribed to a Purchased Asset or a Mortgage Loan by Agent in its sole discretion, exercising good faith and using methodology and parameters customarily used by Agent to value similar assets, as may be as marked to market daily, and (ii) zero, with respect to any Mortgage Loan that is not an Eligible Mortgage Loan. 
“Master Netting Agreement” means that certain Global Netting and Security Agreement, dated as of March 11, 2013, among Purchaser, Seller and certain Affiliates and Subsidiaries of Purchaser and/or Seller, entered into in connection with this Agreement and the Mortgage Loan Participation Purchase and Sale Agreement, as the same shall be amended, supplemented or otherwise modified from time to time.
“Material Adverse Change” means, with respect to a Person, any material adverse change in the business, condition (financial or otherwise), operations, performance or Property of such Person, including the insolvency of such Person.
“Material Adverse Effect” means (a) a Material Adverse Change with respect to Seller, Servicer, Guarantor or any of their respective Affiliates; (b) a material impairment of the ability of Seller, Servicer, Guarantor or any of their respective Affiliates that is a party to any Program Document to perform under any Program Document to which it is a party; (c) a material adverse effect upon the legality, validity, binding effect or enforceability of any Program Document against Seller, Servicer, Guarantor or any of their respective Affiliates that is a party to any Program Document; (d) a material adverse effect on the Approvals of Seller or Servicer.
“Maturity Date” means April 22, 2016.
“Maximum Age Since Origination” shall have the meaning assigned thereto in the Pricing Side Letter.
“Maximum Aggregate Purchase Price” shall have the meaning assigned thereto in the Pricing Side Letter.
“Maximum Error Rate” shall have the meaning assigned thereto in the Pricing Side Letter.
“MERS” means Mortgage Electronic Registration Systems, Inc., a Delaware corporation, or any successor in interest thereto.

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“MERS Designated Mortgage Loan” means any Mortgage Loan as to which the related Mortgage or Assignment of Mortgage has been recorded in the name of MERS, as agent for the holder from time to time of the Mortgage Note.
“MERS Identification Number” shall have the meaning assigned thereto in the Custodial and Disbursement Agreement.
“Modified Loan” means an Eligible Mortgage Loan that (a) is insured by FHA, (b) was purchased out of a Ginnie Mae Security solely as a result of modifications to such Eligible Mortgage Loan, and (c) is a Ginnie Mae Mortgage Loan.
“Monthly Payment” shall mean the scheduled monthly payment of principal and interest on a Mortgage Loan as adjusted in accordance with changes in the mortgage interest rate pursuant to the provisions of the Mortgage Note for an Adjustable Rate Mortgage Loan.
“Monthly Payment Date” means the fifth (5th) Business Day of each calendar month beginning with May 2015. 
“Mortgage” means a mortgage, deed of trust, or other security instrument, securing a Mortgage Note.
“Mortgage File” shall have the meaning assigned thereto in the Custodial and Disbursement Agreement.
“Mortgage Interest Rate” means, with respect to each Mortgage Loan, the annual rate at which interest accrues on such Mortgage Loan from time to time in accordance with the provisions of the related Mortgage Note.
“Mortgage Loan” means a Ginnie Mae Mortgage Loan, a Fannie Mae Mortgage Loan, a Freddie Mac Mortgage Loan or a Jumbo Mortgage Loan.
“Mortgage Loan Participation Purchase and Sale Agreement” means that certain Mortgage Loan Participation Purchase and Sale Agreement, dated as of March 11, 2013, between Purchaser and Seller, as the same may be amended, modified or supplemented from time to time.
“Mortgage Note” means a promissory note or other evidence of indebtedness of the obligor thereunder, evidencing a Mortgage Loan, and secured by the related Mortgage.
“Mortgaged Property” means the real property (or leasehold estate, if applicable) securing repayment of the debt evidenced by a Mortgage Note.
“Mortgagee” means the record holder of a Mortgage Note secured by a Mortgage.
“Mortgagor” means the obligor or obligors on a Mortgage Note, including any person who has assumed or guaranteed the obligations of the obligor thereunder.
“Negative Amortization” means the portion of interest accrued at the Mortgage Interest Rate in any month which exceeds the Monthly Payment on the related Mortgage Loan for such month and which, pursuant to the terms of the Mortgage Note, is added to the principal balance of such Mortgage Loan.

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“Non-Utilization Fee” shall have the meaning assigned thereto in the Pricing Side Letter.
“Notice Date” shall have the meaning assigned thereto in Section 3(c) hereof.
“Obligations” means (a) all amounts due and payable by Seller to Purchaser in connection with a Transaction hereunder, together with interest thereon (including interest which would be payable as post‐petition interest in connection with any bankruptcy or similar proceeding) and other obligations and liabilities of Seller to Purchaser arising under, or in connection with, the Program Documents or directly related to the Purchased Assets, whether now existing or hereafter arising; (b) any and all sums paid by Purchaser or on behalf of Purchaser pursuant to the Program Documents in order to preserve any Purchased Asset or its interest therein; (c) in the event of any proceeding for the collection or enforcement of any of Seller’s indebtedness, obligations or liabilities referred to in clause (a), the reasonable expenses of retaking, holding, collecting, preparing for sale, selling or otherwise disposing of or realizing on any Purchased Asset, or of any exercise by Purchaser of its rights under the Program Documents, including without limitation, reasonable attorneys’ fees and disbursements and court costs; and (d) all of Seller’s indemnity obligations to Purchaser pursuant to the Program Documents.
“Obligor” means a Person obligated to make payments pursuant to a Contract; provided that in the event that any payments in respect of a Contract are made by any other Person, such other Person shall also be deemed to be an Obligor.
“OFAC” means the Office of Foreign Assets Control of the United States Department of Treasury.
“OFAC Lists” has the meaning ascribed to it in Section 37(b).
“Origination Date” means with respect to (i) Mortgage Loans (other than Correspondent Loans, FHA Buyout Loans and Modified Loans), the date on which a Mortgage Loan was originated by the related originator, (ii) Correspondent Loans, the date on which a Correspondent Loan was acquired by Seller, (iii) FHA Buyout Loans, the date on which the Seller purchased such FHA Buyout Loan from the Ginnie Mae pool and (iv) Modified Loans, the date on which such Mortgage Loan became a Modified Loan.
“Originator” means Seller or any other third party originator as mutually agreed upon by Agent and Seller.  
“Other Taxes” shall have the meaning assigned thereto in Section 8(b).
“Parent Company” means a corporation or other entity owning at least 50% of the outstanding shares of voting stock of Seller.
“Person” means any legal person, including any individual, corporation, partnership, association, joint stock company, trust, limited liability company, unincorporated organization, governmental entity or other entity of similar nature.
“Price Differential” means, with respect to any Purchased Asset or Transaction as of any date of determination, an amount equal to the product of (A) the Pricing Rate (or during the continuation of an Event of Default, by daily application of the Default Rate) and (B) the Purchase Price for such Purchased Asset or Transaction.  Price Differential will be calculated in accordance with Section 3(f) herein for the actual number of days elapsed during such Accrual Period on a 360-day basis.

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“Price Differential Determination Date” means, with respect to any Monthly Payment Date, the second (2nd) Business Day preceding such date.
“Pricing Rate” means, as of any date of determination and with respect to an Accrual Period for any Purchased Asset or Transaction, an amount equal to the sum of (i) LIBOR plus (ii) the Applicable Margin.
“Pricing Side Letter” means that certain Pricing Side Letter, dated as of March 11, 2013, between Seller and Purchaser, entered into in connection with this Agreement, as the same may be amended, modified or supplemented from time to time.
“Principal Balance” means the unpaid principal balance of a Mortgage Loan.
“Program Documents” means this Agreement, the Pricing Side Letter, the Custodial and Disbursement Agreement, the Guaranty, the Collection Account Control Agreements, the Disbursement Account Control Agreement,  any assignment of Hedge Instrument, the Electronic Tracking Agreement, the Master Netting Agreement, the EPF Program Documents and all other agreements, documents and instruments entered into by Seller on the one hand, and Purchaser or one of its Affiliates (or Custodian on its behalf) and/or Agent or one of its Affiliates on the other, in connection herewith or therewith with respect to the transactions contemplated hereunder or thereunder and all amendments, restatements, modifications or supplements thereto.
“Property” means any right or interest in or to property of any kind whatsoever, whether real, personal or mixed and whether tangible or intangible.
“Purchase Date” means, with respect to each Transaction, the date on which Purchased Assets are sold by Seller to the Purchaser or its designee hereunder, provided that a Purchase Date for any FHA Buyout Loan or Modified Loan may occur no more than five (5) times within a calendar month and shall occur within the first three (3) weeks of such calendar month.
“Purchase Price” means the price at which Purchased Assets subject to a Transaction are sold by Seller to Purchaser or its designee on a Purchase Date (which includes a mutually negotiated premium allocable to the portion of the related Purchased Assets that constitutes the related Servicing Rights), which shall (unless otherwise agreed to by the Seller and Purchaser) be equal to the lesser of (i) 100% of the Principal Balance of such Purchased Assets as of such date of determination and (ii) the product of the applicable Purchase Price Percentage multiplied by the Market Value of such Purchased Assets as of such date of determination.
“Purchase Price Percentage” shall have the meaning assigned thereto in the Pricing Side Letter.
“Purchased Assets” means all of the following that are sold by Seller to Purchaser in a Transaction, whether now existing or hereafter acquired: (i) the Eligible Mortgage Loans, (ii) the related Servicing Rights, (iii) Seller’s rights under any related Hedge Instruments to the extent related to the Mortgage Loans, (iv) such other Property, rights, titles or interest as are specified on the related Transaction Notice, (v) all mortgage guarantees and insurance relating to the individual Mortgage Loans (issued by governmental agencies or otherwise) or the related Mortgaged Property and any mortgage insurance certificate or other document evidencing such mortgage guarantees or insurance and all claims and payments related to the Mortgage Loans, (vi) all guarantees or other support for the Mortgage Loans, (vii) all rights to Income (including all sale proceeds and all other proceeds as defined in Section 9‐102(a)(64) of the Uniform Commercial Code and all other collections and distributions thereon (including, without limitation, any proceeds received in respect of mortgage insurance)) and the rights to enforce such payments arising from the Mortgage Loans 

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and any other contract rights, payments, rights to payment (including payments of interest or finance charges) with respect thereto and all rights to proceeds as defined in Section 9-102(a)(64) of the Uniform Commercial Code, (viii) all Takeout Commitments and Trade Assignments (including the rights to receive the related purchase price related therefor), (ix) the Collection Accounts and all amounts on deposit therein, (x) all Additional Purchased Mortgage Loans, (xi) all “accounts,” “deposit accounts,” “securities accounts,” “chattel paper,” “commercial tort claims,” “deposit accounts,” “documents,” “general intangibles,” “instruments,” “investment property,” and “securities accounts,” relating to the foregoing as each of those terms is defined in the Uniform Commercial Code and all cash and cash equivalents and all other products and proceeds relating to or constituting any or all of the foregoing, (xii) any purchase agreements or other agreements or contracts relating to or constituting any or all of the foregoing, (xiii) any other collateral pledged or otherwise relating to any or all of the foregoing, together with all files, material documents, instruments, surveys (if available), certificates, correspondence, appraisals, computer records, computer storage media, accounting records and other books and records relating to the foregoing, and (xiv) any and all replacements, substitutions, distributions on, or proceeds with respect to, any of the foregoing.  The term “Purchased Assets” with respect to any Transaction at any time also shall include Additional Purchased Mortgage Loans delivered pursuant to Section 7(b) hereof.
“Purchaser” shall have the meaning set forth in the preamble hereof.
“Purchaser’s Wire Instructions” shall have the meaning set forth in the Pricing Side Letter.
“Records” means all instruments, agreements and other books, records, and reports and data generated by other media for the storage of information maintained by Seller or any other person or entity with respect to a Purchased Asset.  Records shall include, without limitation, the Mortgage Notes, any Mortgages, the Mortgage Files, the Servicing Files, and any other instruments necessary to document or service an Asset that is a Purchased Asset, including, without limitation, the complete payment and modification history of each Asset that is a Purchased Asset.
“REO Property” means a residential real property including land and improvements, together with all buildings, fixtures and attachments thereto, all insurance proceeds, liquidation proceeds, condemnation proceeds, and all other rights, benefits, proceeds and obligations arising from or in connection therewith.
“Repurchase Date” means, with respect to any Transaction, the earliest of (i) the Termination Date, (ii) the date set forth in the related Transaction Notice as the scheduled Repurchase Date, (iii) the second Business Day following Seller’s written notice to Purchaser requesting a repurchase of such Transaction or (iv) at the conclusion of the Maximum Age Since Origination for any Eligible Mortgage Loan purchased hereunder, or if such day is not a Business Day, the immediately following Business Day.
“Repurchase Price” means the price at which Purchased Assets are to be transferred from Purchaser or its designee to Seller upon termination of a Transaction, which will be determined in each case as the sum of: (i) any portion of the Purchase Price not yet repaid to Purchaser, (ii) the Price Differential accrued and unpaid thereon, (iii) Breakage Costs, if any, and (iv) any accrued and unpaid fees or expenses or indemnity amounts and any other outstanding amounts owing under the Program Documents from Seller to Purchaser.
“Request for Release of Documents” shall mean the Request for Release of Documents set forth as Annex 5 to the Custodial and Disbursement Agreement, as applicable.
“Requirement of Law” means as to any Person, the certificate of incorporation and by‐laws or other organizational or governing documents of such Person, and any law, treaty, rule or regulation or determination 

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of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its Property or to which such Person or any of its Property is subject.
“Restricted Mortgage Loan” means (i) a “Growing Equity Loan,” “Graduated Payment Loan,” “Buydown Loan,” “Project Loan,” “Construction Loan” or “HECM Loan,” each as defined in the applicable Agency Guide, (ii) a 30+ Day Delinquent Mortgage Loan, (iii) a Mortgage Loan for which the related Escrow Payments have not been made by the next succeeding Due Date, (iv) a High Cost Mortgage Loan, (v) a Mortgage Loan that could result in Negative Amortization or (vi) a Special Loan.
“SEC” shall have the meaning ascribed thereto in Section 35 hereof.
“Section 404 Notice” means the notice required pursuant to Section 404 of the Helping Families Save Their Homes Act of 2009 (P.L. 111-22), which amends 15 U.S.C. Section 1641 et seq., to be delivered by a creditor that is an owner or an assignee of a Mortgage Loan to the related Mortgagor within thirty (30) days after the date on which such Mortgage Loan is sold or assigned to such creditor.
“Security” means a Ginnie Mae Security, a Fannie Mae Security or a Freddie Mac Security, as applicable.
“Seller” means, individually or collectively as the context may require, Green Tree Servicing LLC and Ditech Mortgage Corp., and references herein to Seller shall be read as references to all Sellers and each Seller shall be jointly and severally responsible for all duties of a Seller in this Agreement.
“Seller Mortgage Loan Schedule” means the list of Purchased Assets proposed to be purchased by Purchaser, in the form of Exhibit H hereto, that will be delivered in an excel spreadsheet format by Seller to Purchaser and Custodian together with each Transaction Notice and attached by the Custodian to the related Certification.
“Servicer” means Green Tree Servicing LLC and any other servicer approved by Agent in its sole discretion. For the avoidance of doubt, one or more Mortgage Loans may be serviced by a Servicer other than Green Tree Servicing LLC while Green Tree Servicing LLC remains a Servicer in respect of the other Mortgage Loans.
“Servicer Termination Event” means: 
(a)    Servicer fails to service the Mortgage Loans in accordance with Accepted Servicing Practices; 
(b)    Servicer fails to remit when due Income payments required to be made under the terms of this Agreement or such Mortgage Loan; or
(c)    Servicer fails to meet the qualifications to maintain all requisite Approvals, such Approvals are revoked or such Approvals are materially modified.
“Servicing File” means with respect to each Mortgage Loan, the file retained by Seller or its designee consisting of all documents that a prudent originator and servicer would include (including copies of the Mortgage File), all documents necessary to document and service the Mortgage Loans and any and all documents required to be delivered in connection with any transfer of servicing pursuant to the Program Documents.

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“Servicing Records” means with respect to a Mortgage Loan, the related servicing records, including but not limited to any and all servicing agreements, files, documents, records, data bases, computer tapes, copies of computer tapes, proof of insurance coverage, insurance policies, appraisals, other closing documentation, payment history records, and any other records relating to or evidencing the servicing of such Mortgage Loan.
“Servicing Rights” means contractual, possessory or other rights of Seller or any other Person to administer or service a Mortgage Loan or to possess the Servicing File.
“Servicing Term” shall have the meaning assigned thereto in Section 16(d) hereof.
“Settlement Agent” means, with respect to any Transaction the subject of which is a Wet-Ink Mortgage Loan, the entity approved by Agent, in its sole good-faith discretion, which may be a title company, escrow company or attorney in accordance with local law and practice in the jurisdiction where the related Wet-Ink Mortgage Loan is being originated.  
“Settlement Date” means the date specified in a Takeout Commitment upon which the related Security is scheduled to be delivered to the specified Takeout Investor on a “delivery versus payment” basis.
“Special Loans” means USDA Mortgage Loans and “closed-end” Mortgage Loans with respect to HUD 203(k). 
“Strict Compliance” means compliance of Seller and the Mortgage Loans with the requirements of the Agency Guide as amended by any agreements between Seller and the Applicable Agency, sufficient to enable Seller to issue and to service and Ginnie Mae to guarantee or Fannie Mae or Freddie Mac to issue and guarantee a Security; provided, that until copies of any such agreements between Seller and the Applicable Agency have been provided to Agent by Seller and approved by Agent, such agreements shall be deemed, as between Seller and Purchaser, not to amend the requirements of the Agency Guide.
“Subordinated Debt” means, with respect to any Person Indebtedness of such Person to any other Person that is subordinated to the Obligations pursuant to a currently effective and irrevocable subordination agreement approved by Agent in its sole discretion and the principal of which is not due and payable until ninety (90) days or more after the Termination Date. 
“Subsidiary” means, with respect to any Person, any corporation, partnership or other entity of which at least a majority of the securities or other ownership interests having by the terms thereof ordinary voting power to elect a majority of the board of directors or other persons performing similar functions of such corporation, partnership or other entity (irrespective of whether or not at the time securities or other ownership interests of any other class or classes of such corporation, partnership or other entity shall have or might have voting power by reason of the happening of any contingency) is at the time directly or indirectly owned or controlled by such Person or one or more Subsidiaries of such Person or by such Person and one or more Subsidiaries of such Person.
“Sutton” means Sutton Funding LLC, as a Purchaser hereunder.
“Sutton Collection Account” means the following account established by the Seller in accordance with Section 16(e) for the benefit of the Sutton.
“Sutton Collection Account Control Agreement” means that certain Collection Account Control Agreement, to be entered into by and among Sutton, the Agent, the Seller and Bank, in form and substance 

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acceptable to Sutton entered into with respect to the Sutton Collection Account, as the same may be amended, modified or supplemented from time to time.
“Takeout Commitment” means a fully executed trade confirmation from the related Takeout Investor to Seller confirming the details of a forward trade between the Takeout Investor and Seller with respect to one or more Purchased Assets, which trade confirmation shall be enforceable and in full force and effect, and shall be validly and effectively assigned to Purchaser pursuant to a Trade Assignment, and relate to pools of Mortgage Loans that satisfy the “good delivery standards” of the Securities Industry and Financial Markets Association as set forth in the Securities Industry and Financial Markets Association Uniform Practices Manual, as amended from time to time.
“Takeout Investor” means (x) for non-Jumbo Mortgage Loans, either (i) Barclays Capital, Inc., or any successor thereto, (ii) any member of the Mortgage Backed Securities Division of the Fixed Income Clearing Corporation unless any such member is listed in Exhibit F-1 (as may be amended from time to time by the Agent in its reasonable discretion) or (iii) any other Person approved by Agent in its sole discretion and (y) for Jumbo Mortgage Loans, either (i) Barclays Bank PLC, (ii) any member of the Mortgage Backed Securities Division of the Fixed Income Clearing Corporation unless any such member is listed in Exhibit F-2 (as may be amended from time to time by the Agent in its reasonable discretion) or (iii) any Person approved by Agent in its reasonable discretion, such approval not to be unreasonably withheld.
“Tangible Net Worth” means for any Person as of any date of determination, (i) the net worth of Seller determined in accordance with GAAP, minus (ii) all intangibles determined in accordance with GAAP (including goodwill but excluding originated and purchased mortgage servicing rights) and any and all advances to, investments in and receivables held from Affiliates. 
“Taxes” shall have the meaning assigned thereto in Section 8(a) hereof.
“Termination Date” means the earliest to occur of (i) the Maturity Date, (ii) the termination of the Mortgage Loan Participation Purchase and Sale Agreement, (iii) the day on which the Seller merges with or consolidates into another entity or any other corporate reorganization and thereafter (a) the surviving entity fails to assume all the obligations of Seller under this Agreement or (b) the creditworthiness of the surviving entity is materially weaker than that of Seller immediately prior to such merger or consolidation, (iv) the day on which, due to a Change in Law, it becomes unlawful for a party to this Agreement to perform its obligations to make payment or deliver or to receive payment or delivery with respect to the Transactions or to otherwise comply with the material terms of this Agreement; (v) failure of Seller to operate or conduct Seller’s business operations or any material portion thereof in the ordinary course, or any other material adverse change in Servicer’s business operations or financial condition, which, in Agent’s sole discretion, constitutes a material impairment of Seller’s ability to perform its obligations under this Agreement or any other related document; (vi) upon five (5) Business Days’ prior written notice from Seller to Purchaser following the occurrence of a Change in Law that increases Purchaser’s costs (as further described in Section 3(h) hereof); (vii) at the option of Purchaser, the occurrence of an Event of Default under this Agreement after the expiration of any applicable grace period; and (viii) at the option of Purchaser, the effective date of any event described in Section 14(p) or Section 14(r).
“Trade Assignment” means an assignment to Purchaser of a forward trade between the Takeout Investor and Seller with respect to one or more Purchased Assets, together with the related trade confirmation from the Takeout Investor to Seller that has been fully executed, is enforceable and is in full force and effect and confirms the details of such forward trade.
“Transaction” has the meaning assigned thereto in Section 1 hereof.

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“Transaction Notice” means a written request of Seller to enter into a Transaction in a form attached as Exhibit C hereto or such other form as shall be mutually agreed upon between Seller and Purchaser, which is delivered to the Purchaser in accordance with Section 3(c) herein.
“Uncommitted Amount” shall have the meaning assigned thereto in the Pricing Side Letter.
“Uniform Commercial Code” means the Uniform Commercial Code as in effect from time to time in the State of New York; provided that if by reason of mandatory provisions of law, the perfection or the effect of perfection or non-perfection of the security interest in any Purchased Assets or the continuation, renewal or enforcement thereof is governed by the Uniform Commercial Code as in effect in a jurisdiction other than New York, “Uniform Commercial Code” shall mean the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such perfection or effect of perfection or non-perfection.
“USDA” means the United States Department of Agriculture.  
“USDA Mortgage Loan” means a Mortgage Loan that is guaranteed by the USDA’s Guaranteed Rural Housing Loan Program. 
“VA” means the United States Department of Veterans Affairs.
“Warehouse Lender” means any lender providing financing to Seller for the purpose of warehousing, originating or purchasing a Mortgage Loan (including but not limited to purchasers under repurchase agreements), which lender has a security interest in such Mortgage Loan to be purchased by Purchaser.
“Warehouse Lender’s Release” means a letter, in the form of Exhibit E, from a Warehouse Lender to Purchaser, unconditionally releasing all of Warehouse Lender’s right, title and interest in certain Mortgage Loans identified therein upon payment to the Warehouse Lender.
“Wet-Ink Mortgage Loan” means a Mortgage Loan that Seller is selling to Purchaser simultaneously with the origination thereof that is funded in part, either directly or indirectly, with the Purchase Price paid by Purchaser hereunder and prior to receipt by Purchaser or its Custodian of the original Mortgage Note.
“Wet-Ink Mortgage Loan Document Receipt Date” means for any Wet-Ink Mortgage Loan, the date that the Custodian executes an original trust receipt without exceptions.
“Wet-Ink Mortgage Loan Purchase Price Range” shall have the meaning assigned thereto in the Custodial Agreement.
(b)    Interpretation.
Headings are for convenience only and do not affect interpretation.  The following rules of this subsection (b) apply unless the context requires otherwise.  The singular includes the plural and conversely.  A gender includes all genders.  Where a word or phrase is defined, its other grammatical forms have a corresponding meaning.  A reference to a subsection, Section, Annex or Exhibit is, unless otherwise specified, a reference to a section of, or annex or exhibit to, this Agreement.  A reference to a party to this Agreement or another agreement or document includes the party’s successors and permitted substitutes or assigns. A reference to an agreement or document is to the agreement or document as amended, modified, novated, supplemented or replaced, except to the extent prohibited by any Program Document.  A reference to legislation or to a provision of legislation includes any modification or re-enactment of it, a legislative 

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provision substituted for it and a regulation or statutory instrument issued under it.  A reference to writing includes a facsimile transmission and any means of reproducing words in a tangible and permanently visible form.  A reference to conduct includes, without limitation, an omission, statement or undertaking, whether or not in writing.  An Event of Default exists until it has been waived in writing by Purchaser or has been timely cured.  The words “hereof,” “herein,” “hereunder” and similar words refer to this Agreement as a whole and not to any particular provision of this Agreement.  The term “including” is not limiting and means “including without limitation.”  In the computation of periods of time from a specified date to a later specified date, the word “from” means “from and including,” the words “to” and “until” each mean “to but excluding,” and the word “through” means “to and including.”  This Agreement may use several different limitations, tests or measurements to regulate the same or similar matters.  All such limitations, tests and measurements are cumulative and shall each be performed in accordance with their terms.  Unless the context otherwise clearly requires, all accounting terms not expressly defined herein shall be construed, and all financial computations required under this Agreement shall be made, in accordance with GAAP, consistently applied. References herein to “fiscal year” and “fiscal quarter” refer to such fiscal periods of Seller.
Except where otherwise provided in this Agreement, any determination, consent, approval, statement or certificate made or confirmed in writing with notice to a party hereto by the other party or by an authorized officer of such other party as required by this Agreement is conclusive in the absence of manifest error. A reference to an agreement includes a security interest, guarantee, agreement or legally enforceable arrangement whether or not in writing related to such agreement.
A reference to a document includes an agreement in writing or a certificate, notice, instrument or document, or any information recorded in electronic form.  Where Seller is required to provide any document to Purchaser under the terms of this Agreement, the relevant document shall be provided in writing or printed form unless Purchaser requests otherwise.
This Agreement is the result of negotiations among, and has been reviewed by counsel to, Purchaser and Seller, and is the product of all parties.  In the interpretation of this Agreement, no rule of construction shall apply to disadvantage one party on the ground that such party proposed or was involved in the preparation of any particular provision of this Agreement or this Agreement itself.  Except where otherwise expressly stated, Purchaser may give or withhold, or give conditionally, approvals and consents and may form opinions and make determinations in its absolute sole discretion.  Except as specifically required herein, any requirement of good faith, discretion or judgment by Purchaser or Agent shall not be construed to require Purchaser to request or await receipt of information or documentation not immediately available from or with respect to Seller, any other Person or the Purchased Assets themselves.

		
	3.
	THE TRANSACTIONS

(a)    It is acknowledged and agreed that, notwithstanding any other provision of this Agreement to the contrary, the facility provided under this Agreement is (i) a committed facility with respect to the Committed Amount and (ii) an uncommitted facility with respect to the Uncommitted Amount, and Purchaser shall have no obligation to enter into any Transactions hereunder with respect to the Uncommitted Amount.  All purchases of Mortgage Loans hereunder shall be first deemed committed up to the Committed Amount and then the remainder, if any, shall be deemed uncommitted up the Uncommitted Amount.
(b)    Subject to the terms and conditions of the Program Documents, Purchaser may enter into Transactions; provided that the Aggregate MRA Purchase Price shall not exceed, as of any date of determination, the lesser of (a) the Maximum Aggregate Purchase Price (less the Aggregate EPF Purchase Price) or (b) the Asset Base.

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(c)    Unless otherwise agreed, Seller shall request that Purchaser enter into a Transaction with respect to any Eligible Loan by delivering to the indicated required parties (each, a “Required Recipient”) the required delivery items (each, a “Required Delivery Item”) set forth in the table below by the corresponding required delivery time (the “Required Delivery Time”), and such Transaction shall occur no later than the corresponding required purchase time (the “Required Purchase Time”): 

	
					
	Purchased Asset Type
	Required Delivery Items
	Required Delivery Time
	Required Recipient
	Required Purchase Time

	Eligible Mortgage Loans (other than Wet-Ink Mortgage Loans, FHA Buyout Loans and Modified Loans)
	(i) a Transaction Notice and (ii) Seller Mortgage Loan Schedule
	No later than 5:00 p.m. (New York City time) on the Business Day prior to the requested Purchase Date
	Purchaser and Custodian
	No later than 5:00 p.m. (New York City time) on the requested Purchase Date

	For Correspondent Loans, the Correspondent Seller Release, duly executed and delivered by each applicable Correspondent Seller
	No later than 5:00 p.m. (New York City time) on the Business Day prior to the requested Purchase Date
	Purchaser

	The complete Mortgage Files to Custodian for each Mortgage Loan subject to such Transaction
	No later than 5:00 p.m. (New York City time) on the Business Day prior to the requested Purchase Date
	Custodian

	AM Funded Wet-Ink Mortgage Loans
	(i) a Transaction Notice and (ii) Seller Mortgage Loan Schedule
	No later than 5:00 p.m. (New York City time) on the Business Day prior to the requested Purchase Date
	Purchaser and Custodian
	No later than 9:00 a.m. (New York City time) on the requested Purchase Date

	PM Funded Wet-Ink Mortgage Loans
	(i) a Transaction Notice and (ii) Seller Mortgage Loan Schedule
	No later than 2:30 p.m. (New York City time) on the requested Purchase Date
	Purchaser and Custodian
	No later than 4:30 p.m. (New York City time) on the requested Purchase Date

	FHA Buyout Loans and Modified Loans
	(i) a Transaction Notice and (ii) Seller Mortgage Loan Schedule
	No later than 5:00 p.m. (New York City time) on the Business Day prior to the requested Purchase Date
	Purchaser and Custodian
	No later than 5:00 p.m. (New York City time) on the requested Purchase Date

The date on which any notice pursuant to this Section 3(c) is given is known as the “Notice Date”.

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(d)    With respect to each Wet-Ink Mortgage Loan, within the time period specified in the Pricing Side Letter, Seller shall cause the related Settlement Agent to deliver, or shall promptly deliver upon receipt from Settlement Agent, to the Custodian the remaining documents in the Mortgage File. 
(e)    Upon Seller’s request to enter into a Transaction pursuant to Section 3(c) and assuming all conditions precedent set forth in this Section 3 and in Sections 10(a) and (b) have been met, and provided no Default or Event of Default shall have occurred and be continuing, on the requested Purchase Date, Barclays shall in the case of a Transaction with respect to the Committed Amount and may, in its sole discretion, in the case of a Transaction with respect to the Uncommitted Amount, purchase the Eligible Mortgage Loans that are not FHA Buyout Loans, and Sutton may, in its sole discretion, purchase the Eligible Mortgage Loans that are FHA Buyout Loans, each included in the related Transaction Notice by transferring the Purchase Price (net of any related unpaid Initial Fee or any other unpaid fees and expense then due and payable by Seller to Purchaser pursuant to the Agreement) in accordance with the following wire instructions or as otherwise provided: 
Wells Fargo Bank, N.A. 
ABA #: 121-000-248 
Acct Name: Corporate Trust Clearing 
Acct #: 3970771416 
FFC: Acct # 39131200 - Green Tree Haircut Account 
Seller acknowledges and agrees that the Purchase Price includes a mutually negotiated premium allocable to the portion of the Purchased Assets that constitutes the related Servicing Rights.
(f)    On the related Price Differential Determination Date, Agent shall calculate the Price Differential for each outstanding Transaction payable on the Monthly Payment Date utilizing the Pricing Rate.  Not less than two (2) Business Days prior to each Monthly Payment Date, Agent shall provide Seller with an invoice for the amount of the Price Differential due and payable with respect to all outstanding Transactions, setting forth the calculations thereof in reasonable detail and all accrued fees and expenses then due and owing to Purchaser.  On the earliest of (1) the Monthly Payment Date or (2) the Termination Date, Seller shall pay to Purchaser the Price Differential then due and payable for (x) all outstanding Transactions and (y) Purchased Assets for which Purchaser has received the related Repurchase Price (other than Price Differential) pursuant to Section 3(g) during the prior calendar month.
(g)    With respect to a Transaction, upon the earliest of (1) the Repurchase Date and (2) the Termination Date, Seller shall pay to Purchaser the related Repurchase Price (other than the related accrued Price Differential) together with any other Obligations then due and payable, and shall repurchase all Purchased Assets then subject to such Transaction.  The Repurchase Price shall be transferred directly to Purchaser.
(h)    If Agent determines in its sole discretion that any Change in Law or any change in accounting rules regarding capital requirements has the effect of reducing the rate of return on Purchaser’s capital or on the capital of any Affiliate of Purchaser under this Agreement as a consequence of such Change in Law or change in accounting rules (it being understood that Purchaser will make such determination consistent with those made with respect to similar borrowers or sellers under similar credit or repurchase agreements), then from time to time Seller will compensate Purchaser or Purchaser’s Affiliate, as applicable, for such reduced rate of return suffered as a consequence of such Change in Law or change in accounting rules on terms similar to those imposed by Purchaser.  Further, if due to the introduction of, any change in, or the compliance by Purchaser with (i) any eurocurrency reserve requirement, or (ii) the interpretation of any law, regulation 

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or any guideline or request from any central bank or other Governmental Authority whether or not having the force of law, there shall be an increase in the cost to Purchaser or any Affiliate of Purchaser in engaging in the present or any future Transactions (it being understood that Purchaser will make the foregoing determinations consistent with those made with respect to similar borrowers or sellers under similar credit or repurchase agreements), then Seller shall, from time to time and upon demand by Purchaser, compensate Purchaser or Purchaser’s Affiliate for such increased costs, and such amounts shall be deemed a part of the Obligations hereunder.  Purchaser shall provide Seller with notice as to any such Change in Law, change in accounting rules or change in compliance promptly following Purchaser’s receipt of actual knowledge thereof. 
(i)    Seller shall indemnify the Purchaser and hold the Purchaser harmless from any losses, costs and/or expenses which the Purchaser may sustain or incur as a result of terminating any Transaction on or before a Repurchase Date arising from the reemployment of funds obtained by the Purchaser hereunder or from actual out of pocket fees and expenses payable to terminate the deposits from which such funds were obtained (“Breakage Costs”).  The Agent shall deliver to Seller a statement setting forth the amount and basis of determination of any Breakage Costs in such detail as determined in good faith by the Purchaser to be adequate, it being agreed that such statement and the method of its calculation shall be adequate and shall be conclusive and binding upon Seller, absent manifest error.  The provisions of this Section 3(h) shall survive termination of this Agreement.
(j)    If on any Business Day the Agent determines (which determination shall be conclusive absent manifest error) (a) that adequate and reasonable means do not exist for ascertaining LIBOR; or (b) that LIBOR will not adequately and fairly reflect the cost to the Purchaser of entering into or maintaining outstanding Transactions; or (c) that it has become unlawful for it to honor its obligation to enter into or maintain outstanding Transactions hereunder using LIBOR, then the Purchaser shall give notice thereof to the Seller by telephone, facsimile, or other electronic means as promptly as practicable thereafter and, until the Purchaser notifies the Seller that the circumstances giving rise to such notice no longer exist, the Pricing Rate included in any Confirmation with respect to new Transactions and in any calculation of the Price Differential with respect to outstanding Transactions will be determined, subject to the timely approval of the Seller after receipt of notice of such revised rate, at a rate per annum that the Purchaser determines in it reasonable discretion adequately reflects the cost to the Purchaser of making or maintaining such Transactions.

		
	4.
	CONFIRMATION

In the event that parties hereto desire to enter into a Transaction on terms other than as set forth in this Agreement, the parties shall execute a confirmation prior to entering into such Transaction, which confirmation shall be in a form that is mutually acceptable to Purchaser and Seller and shall specify such terms, including, without limitation, the Purchase Date, the Purchase Price, the Pricing Rate therefor and the Repurchase Date (a “Confirmation”).  Any such Confirmation and the related Transaction Notice, together with this Agreement, shall constitute conclusive evidence of the terms agreed to between Purchaser and Seller with respect to the Transaction to which the Confirmation relates.  In the event of any conflict between this Agreement and a Confirmation, the terms of the Confirmation shall control with respect to the related Transaction.

		
	5.
	TAKEOUT COMMITMENTS

Seller hereby assigns to Purchaser, free of any security interest, lien, claim or encumbrance of any kind, Seller’s rights under each Takeout Commitment to deliver the Purchased Assets specified therein to 

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the related Takeout Investor and to receive the purchase price therefor from such Takeout Investor.  Seller shall deliver to Purchaser a duly executed and enforceable Trade Assignment on the date such Trade Assignment is executed by the related Takeout Investor.  Subject to Purchaser’s rights hereunder, Purchaser agrees that it will satisfy the obligation under the Takeout Commitment to deliver the related Purchased Assets to the Takeout Investor on the Settlement Date specified therein.  Seller understands that, as a result of this Section 5 and each Trade Assignment, Purchaser will succeed to the rights and obligations of Seller with respect to each Takeout Commitment subject to a Trade Assignment, and that in satisfying each such Takeout Commitment, Purchaser, will stand in the shoes of Seller and, consequently, will be acting as a non-dealer in exercising its rights and fulfilling its obligations assigned pursuant to this Section 5 and each Trade Assignment.  Each Trade Assignment delivered by Seller to Purchaser shall be delivered by Seller in a timely manner sufficient to enable Purchaser to facilitate the settlement of the related trade on the trade date in accordance with “good delivery standards” of the Securities Industry and Financial Markets Association as set forth in the Securities Industry and Financial Markets Association Uniform Practices Manual, as amended from time to time.

		
	6.
	PAYMENT AND TRANSFER

(a)    Unless otherwise agreed by Seller and Purchaser, all transfers of funds hereunder shall be in Dollars in immediately available funds.  Seller shall remit (or, if applicable, shall cause to be remitted) directly to Purchaser all payments required to be made by it to Purchaser hereunder or under any other Program Document in accordance with wire instructions provided by Purchaser.  Any payments received by Purchaser after 4:00 p.m. (New York City time) shall be applied on the next succeeding Business Day.
(b)    Following Seller’s receipt of the Closing Protection Letter and Escrow Instruction Letter, the Disbursement Agent will aggregate and disburse funds directly to the loan closing with respect to Wet-Ink Mortgage Loans that are subject to a Transaction hereunder.

		
	7.
	MARGIN MAINTENANCE

(a)    Agent shall determine the Market Value of the Purchased Assets on a daily basis as determined by Agent in its sole discretion on exercising good faith.
(b)    If, as of any date of determination, the lesser of (a) 100% of the Principal Balance of the Eligible Mortgage Loans and (b) the aggregate Market Value of all related Purchased Assets subject to all Transactions, taking into account the cash then on deposit in the Collection Accounts, multiplied by the applicable Purchase Price Percentage is less than the Repurchase Price (excluding accrued Price Differential) for all such Transactions (a “Margin Deficit”), then Agent may, by notice to the Seller (as such notice is more particularly set forth below, a “Margin Call”), require Seller to transfer to Purchaser or its designee cash or, at Purchaser’s option (and provided Seller has additional Eligible Mortgage Loans), additional Eligible Mortgage Loans to Purchaser (“Additional Purchased Mortgage Loans”) to cure the Margin Deficit; provided that Purchaser shall not provide notice of a Margin Call to Seller until the Margin Deficit equals or exceeds $500,000 (such number to be calculated by accounting for amounts that may be due under that certain forward sale agreement, dated on or about the Effective Date, entered into between Seller and Purchaser).  If the Agent delivers a Margin Call to the Seller on or prior to 11:00 a.m. (New York City time) on any Business Day, then the Seller shall transfer cash or Additional Purchased Mortgage Loans to Purchaser or its designee no later than 5:00 p.m. (New York City time) on the same Business Day.  In the event the Agent delivers a Margin Call to Seller after 11:00 a.m. (New York City time) on any Business Day, Seller shall be required to transfer cash or Additional Purchased Mortgage Loans no later than 12:00 noon (New York City time) on the next succeeding Business Day.

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(c)    Any cash transferred to Purchaser or its designee pursuant to Section 16(f)(ii)(B) herein shall reduce the Repurchase Price of the related Transactions.
(d)    The failure of Purchaser, on any one or more occasions, to exercise its rights hereunder, shall not change or alter the terms and conditions of this Agreement or limit the right of the Purchaser to do so at a later date.  Seller and Purchaser each agree that a failure or delay by a Purchaser to exercise its rights hereunder shall not limit or waive Purchaser’s rights under this Agreement or otherwise existing by law or in any way create additional rights for Seller.
(e)    For the avoidance of doubt, it is hereby understood and agreed that Seller shall be responsible for satisfying any Margin Deficit existing as a result of any reduction of the Principal Balance of any Purchased Asset pursuant to any action by any bankruptcy court.

		
	8.
	TAXES; TAX TREATMENT

(a)    All payments made by Seller under this Agreement shall be made free and clear of, and without deduction or withholding for or on account of, any present or future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities (including penalties, interest and additions to tax) with respect thereto imposed by any Governmental Authority therewith or thereon, excluding income taxes, branch profits taxes, franchise taxes or any other tax imposed on net income by the United States, a state or a foreign jurisdiction under the laws of which the Purchaser is organized or of its applicable lending office, or a state or foreign jurisdiction with respect to which Purchaser has a present or former connection (other than any connection arising from executing, delivering, being party to, engaging in any transaction pursuant to, performing its obligations under or enforcing any Program Document), or any political subdivision thereof (collectively, such non-excluded taxes are hereinafter called “Taxes”), all of which shall be paid by Seller for its own account not later than the date when due.  If Seller is required by law or regulation to deduct or withhold any Taxes from or in respect of any amount payable hereunder, it shall: (a) make such deduction or withholding, (b) pay the amount so deducted or withheld to the appropriate Governmental Authority not later than the date when due, (c) deliver to the Purchaser, promptly, original tax receipts and other evidence satisfactory to Purchaser of the payment when due of the full amount of such Taxes; and (d) except as otherwise expressly provided in Section 8(d) below, pay to the Purchaser such additional amounts (including all taxes imposed by any Governmental Authority on such additional amounts) as may be necessary so that the Purchaser receives, free and clear of all Taxes, a net amount equal to the amount it would have received under this Agreement, as if no such deduction or withholding had been made.
(b)    In addition, Seller agrees to pay to the relevant Governmental Authority in accordance with applicable law any current or future stamp or documentary taxes or any other excise or property taxes, charges or similar levies (including, without limitation, mortgage recording taxes, transfer taxes and similar fees) imposed by any taxing authority that arise from any payment made hereunder or from the execution, delivery or registration of, or otherwise with respect to, this Agreement (“Other Taxes”).
(c)    Seller agrees to indemnify Purchaser for the full amount of Taxes (including additional amounts with respect thereto) and Other Taxes, and the full amount of taxes of any kind imposed by any jurisdiction on amounts payable under this Section 8, and any liability (including penalties, interest and expenses arising thereon or with respect thereto) arising therefrom or with respect thereto, provided that Purchaser shall have provided Seller with evidence, reasonably satisfactory to Seller, of payment of Taxes or Other Taxes, as the case may be.
(d)    Any Purchaser that either (i) is not incorporated under the laws of the United States, any State thereof, or the District of Columbia or (ii) whose name does not include “Incorporated,” “inc.,” 

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“Corporation,” “Corp.,” “P.C.,” “insurance company,” or “assurance company” (a “Foreign Purchaser”) shall provide Seller and Agent with original properly completed and duly executed United States Internal Revenue Service (“IRS”) Forms W-8BEN or W-8ECI or any successor form prescribed by the IRS, certifying that such Person is either (1) entitled to benefits under an income tax treaty to which the United States is a party which eliminates or (2) otherwise fully exempt from United States withholding tax under Sections 1441 through 1442 of the Code on payments to it or certifying that the income receivable pursuant to this Agreement is effectively connected with the conduct of a trade or business in the United States in either case, on or prior to the date upon which each such Foreign Purchaser becomes a Purchaser.  Each Foreign Purchaser will resubmit the appropriate form eliminating withholding tax on payments to it on the earliest of (A) the third anniversary of the prior submission, or (B) on or before the expiration of thirty (30) days after there is a “change in circumstances” with respect to such Person as defined in Treas. Reg. Section 1.1441-1(e)(4)(ii)(D).  For any period with respect to which the Foreign Purchaser has failed to provide Seller with the appropriate form or other relevant document (x) as expressly required under this Section 8(d) (unless such failure is due to a change in treaty, law, or regulation occurring subsequent to the date on which a form originally was required to be provided under the first sentence of this Section 8(d)) or (y) otherwise as required to establish exemption from United States withholding under Sections 1471 through 1474 of the Code, such Person shall not be entitled to “gross-up” of Taxes under Section 8(a) or indemnification under Section 8(c) with respect to Taxes imposed by the United States which are imposed because of such failure; provided, however that should a Foreign Purchaser, which is otherwise exempt from a withholding tax, become subject to Taxes because of its failure to deliver a form required hereunder, Seller shall take such steps as such Foreign Purchaser shall reasonably request to assist such Foreign Purchaser to recover such Taxes.
(e)    Without prejudice to the survival or any other agreement of Seller hereunder, the agreements and obligations of Seller contained in this Section 8 shall survive the termination of this Agreement.  Nothing contained in this Section 8 shall require Purchaser to make available any of their tax returns or other information that it deems to be confidential or proprietary.
(f)    Each party to this Agreement acknowledges that it is its intent solely for purposes of U.S. federal, state and local income and franchise taxes to treat each Transaction as indebtedness of Seller that is secured by the Purchased Assets and that the Purchased Assets are owned by Seller in the absence of an Event of Default by Seller.  All parties to this Agreement agree to such treatment and agree to take no action inconsistent with this treatment, unless required by law.

		
	9.
	SECURITY INTEREST; PURCHASER’S  APPOINTMENT AS ATTORNEY-IN-FACT

(a)    Seller and Purchaser intend that (other than for tax and accounting purposes) the Transactions hereunder be sales to Purchaser of the Purchased Assets and not loans from Purchaser to Seller secured by the Purchased Assets.  However, in order to preserve Purchaser’s rights under this Agreement in the event that a court or other forum recharacterizes the Transactions hereunder as other than sales, and as security for Seller’s performance of all of its Obligations, Seller hereby grants to Purchaser a first priority security interest in the Purchased Assets.  Seller acknowledges and agrees that its rights with respect to the Purchased Assets are and shall continue to be at all times junior and subordinate to the rights of Purchaser hereunder.
(b)    Seller hereby irrevocably constitutes and appoints Purchaser and any officer or agent thereof, with full power of substitution, as its true and lawful attorney-in-fact with full irrevocable power and authority in the place and stead of Seller and in the name of Seller or in its own name, from time to time in Purchaser’s discretion, to file such financing statement or statements relating to the Purchased Assets as Purchaser at its option may deem appropriate, and if an Event of Default shall have occurred and be continuing, for the 

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purpose of carrying out the terms of this Agreement, to take any and all appropriate action and to execute any and all documents and instruments which may be reasonably necessary or desirable to accomplish the purposes of this Agreement, and, without limiting the generality of the foregoing, Seller hereby gives Purchaser the power and right, on behalf of Seller, without assent by, but with notice to, Seller, to do the following if an Event of Default shall have occurred and be continuing and Purchaser has elected to exercise its remedies pursuant to Section 18 hereof:
(i)    in the name of Seller, or in its own name, or otherwise, to take possession of and endorse and collect any checks, drafts, notes, acceptances or other instruments for the payment of moneys due with respect to any Purchased Assets and to file any claim or to take any other action or initiate and maintain any appropriate proceeding in any appropriate court of law or equity or otherwise deemed appropriate by Purchaser for the purpose of collecting any and all such moneys due with respect to any Purchased Assets whenever payable;
(ii)    to pay or discharge taxes and Liens levied or placed on or threatened against the Purchased Assets;
(iii)    (A) to direct any party liable for any payment under any Purchased Assets to make payment of any and all moneys due or to become due thereunder directly to Purchaser or as Purchaser shall direct, (B) in the name of Seller, or in its own name, or otherwise as appropriate, to directly send or cause the applicable servicer to send “hello” letters, “goodbye” letters in the form of Exhibit D, and Section 404 Notices; (C) to ask or demand for, collect, receive payment of and receipt for any and all moneys, claims and other amounts due or to become due at any time in respect of or arising out of any Purchased Assets; (D) to sign and endorse any invoices, assignments, verifications, notices and other documents in connection with any Purchased Assets; (E) to commence and prosecute any suits, actions or proceedings at law or in equity in any court of competent jurisdiction to collect the Purchased Assets or any proceeds thereof and to enforce any other right in respect of any Purchased Assets; (F) to defend any suit, action or proceeding brought against Seller with respect to any Purchased Assets; (G) to settle, compromise or adjust any suit, action or proceeding described in clause (F) above and, in connection therewith, to give such discharges or releases as Purchaser may deem appropriate; and (H) generally, to sell, transfer, pledge and make any agreement with respect to or otherwise deal with any Purchased Assets as fully and completely as though Purchaser was the absolute owner thereof for all purposes, and to do, at Purchaser’s option and Seller’s expense, at any time, and from time to time, all acts and things which Purchaser deems necessary to protect, preserve or realize upon the Purchased Assets and Purchaser’s Liens thereon and to effect the intent of this Agreement, all as fully and effectively as Seller might do.
Seller hereby ratifies all that said attorneys shall lawfully do or cause to be done by virtue hereof.  This power of attorney is a power coupled with an interest and shall be irrevocable.
Seller also authorizes Purchaser, from time to time if an Event of Default shall have occurred and be continuing, to execute any endorsements, assignments or other instruments of conveyance or transfer with respect to the Purchased Assets in connection with any sale provided for in Section 18 hereof.
The powers conferred on Purchaser hereunder are solely to protect Purchaser’s interests in the Purchased Assets and shall not impose any duty upon it to exercise any such powers.  Purchaser shall be accountable only for amounts that they actually receive as a result of the exercise of such powers, and neither Purchaser nor any of its officers, directors, employees or agents shall be responsible to Seller for any act or failure to act hereunder, except for their own gross negligence or willful misconduct.

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	10.
	CONDITIONS PRECEDENT

(a)    As conditions precedent to the initial Transaction, Purchaser shall have received (or has waived in writing receipt), except as otherwise indicated in Section 10(c) of this Agreement, on or before the Effective Date (or in the case of the items specified in subparagraphs (ii) through and (v) below, within thirty (30) days following the Effective Date) each of the following, in form and substance satisfactory to Purchaser and duly executed by each party thereto (as applicable):
(i)    Each of the Program Documents duly executed and delivered by the parties thereto and being in full force and effect, free of any modification, breach or waiver;
(ii)    Certificates of an officer of each of Seller and Guarantor attaching certified copies of Seller’s and Guarantor’s respective consents or charter, bylaws and corporate resolutions, as applicable, approving the Program Documents and Transactions thereunder (either specifically or by general resolution), and all documents evidencing other necessary corporate action or governmental approvals as may be required in connection with the Program Documents;
(iii)    A certified copy of a good standing certificate from the jurisdiction of organization of each of Seller and Guarantor, dated as of no earlier than the date which is ten (10) Business Days prior to the Purchase Date with respect to the initial Transaction hereunder;
(iv)    An incumbency certificate of the secretary of each of Seller and Guarantor certifying the names, true signatures and titles of Seller’s and Guarantor’s representatives who are duly authorized to request Transactions hereunder and to execute the Program Documents and the other documents to be delivered thereunder;
(v)    An opinion of Seller’s counsel (including Seller’s in-house counsel) as to such matters as Purchaser or Agent may reasonably request (including, without limitation, with respect to Purchaser’s first priority lien on and perfected security interest in the Purchased Assets, a no material litigation, non-contravention, enforceability and corporate opinion with respect to Seller, an opinion with respect to the inapplicability of the Investment Company Act to Seller and its Subsidiaries and Guarantor, an opinion that this Agreement constitutes a “repurchase agreement” and a “securities contract” within the meaning of the Bankruptcy Code and an opinion that no Transaction constitutes an avoidable transfer under Section 546(f) of the Bankruptcy Code, each in form and substance acceptable to Purchaser and Agent; provided, that Seller’s in-house counsel shall be permitted to provide only the no material litigation, noncontravention and corporate opinions;
(vi)    Seller shall have paid to Purchaser and Purchaser shall have received all accrued and unpaid fees and expenses owed to Purchaser in accordance with the Program Documents, including without limitation, the Initial Fee, the Renewal Fee or the Extension Fee, as applicable, pursuant to Section 2 of the Pricing Side Letter, in each case, in immediately available funds, and without deduction, set-off or counterclaim;
(vii)    A copy of the insurance policies required by Section 14(q) of this Agreement;
(viii)    Duly completed and filed Uniform Commercial Code financing statements acceptable to Purchaser and covering the Purchased Assets on Form UCC1;
(ix)    [RESERVED]; 

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(x)    Any other documents reasonably requested by Purchaser or Agent; and
(xi)    Purchaser and/or Agent shall have completed the initial due diligence review pursuant to Section 36, and such review shall be satisfactory to Purchaser and Agent in their sole discretion.
(b)    As conditions precedent to each Transaction (including the initial Transaction), each of the following conditions shall have been satisfied:
(i)    Purchaser or its designee shall have received (or has waived in writing receipt) on or before the Purchase Date with respect to Eligible Mortgage Loans that are to be the subject of such Transaction (unless otherwise specified in this Agreement) the following, in form and substance satisfactory to Purchaser and (if applicable) duly executed:
		
	(A)
	Seller shall have paid to Purchaser and Purchaser shall have received all accrued and unpaid fees and expenses owed to Purchaser in accordance with the Program Documents in immediately available funds, and without deduction, set-off or counterclaim;

		
	(B)
	The Transaction Notice and Seller Mortgage Loan Schedule (and additionally with respect to Correspondent Loans, the Correspondent Seller Release) with respect to such Purchased Assets, delivered pursuant to Section 3(c);

		
	(C)
	Such certificates, customary opinions of counsel or other documents as Purchaser or Agent may reasonably request, provided that such opinions of counsel shall not be required routinely in connection with each Transaction but shall only be required from time to time as deemed necessary by Purchaser in its commercially reasonable judgment; provided further that Seller may provide such opinions of counsel or other documents to Purchaser within five (5) Business Days following such Purchase Date;

		
	(D)
	Purchaser shall have received the Initial Fee, the Renewal Fee or the Extension Fee, as applicable, pursuant to Section 2 of the Pricing Side Letter, in immediately available funds, and without deduction, set-off or counterclaim;

		
	(E)
	With respect to Mortgage Loans that are not Wet-Ink Mortgage Loans, an original trust receipt executed by the Custodian without exceptions and with respect to Wet-Ink Mortgage Loans, a notice of intent to issue a trust receipt executed by the Wet-Ink Mortgage Loan Document Receipt Date by the Custodian;

		
	(F)
	Such other certifications of Custodian as are required under Sections 2 and 4 of the Custodial and Disbursement Agreement;

		
	(G)
	With respect to (i) any table-funded Wet-Ink Mortgage Loan that is the subject of such Transaction, (x) a copy of the Escrow Instruction Letter in the form attached as Exhibit G hereto, signed by the Settlement Agent and (y) a copy of the Closing Protection Letter from each title company in form 

- 29 -

and substance acceptable to Purchaser in its sole discretion and (ii) any self-funded Wet-Ink Mortgage Loan that is the subject of such Transaction, (x) a copy of the Escrow Instruction Letter in the form attached as Exhibit G hereto, signed by the Settlement Agent, (y) a copy of the Closing Protection Letter from each title company in form and substance acceptable to Purchaser in its sole discretion and (z) confirmation of the Fed. Reference Number (or other independent confirmation reasonably acceptable to the Purchaser) with respect to the funding of any such Wet-Ink Mortgage Loan; 
		
	(H)
	a duly executed Warehouse Lender’s Release from any Warehouse Lender (including any party that has a precautionary security interest in a Mortgage Loan) having a security interest in any Mortgage Loans, substantially in the form of Exhibit E, addressed to Purchaser, releasing any and all of its right, title and interest in, to and under such Mortgage Loan (including, without limitation, any security interest that such secured party or secured party’s agent may have by virtue of its possession, custody or control thereof) and, to the extent applicable, has filed Uniform Commercial Code termination statements in respect of any Uniform Commercial Code filings made in respect of such Mortgage Loan, and each such Warehouse Lender’s Release and Uniform Commercial Code termination statement has been delivered to Purchaser prior to such Transaction and to the Custodian as part of the Mortgage File; 

		
	(I)
	Purchaser shall have received the Non-Utilization Fee then due and owing pursuant to Section 2 of the Pricing Side Letter in immediately available funds, and without deduction, set-off or counterclaim; provided that Purchaser may, in its sole discretion, net any unpaid Non-Utilization Fee from the proceeds of any Purchase Price paid by Purchaser to a Seller; and 

		
	(J)
	With respect to any FHA Buyout Loan, evidence that such FHA Buyout Loan is fully insured by FHA.

(ii)    No Default or Event of Default shall have occurred and be continuing;
(iii)    Purchaser shall not have determined that the introduction of or a change in any Requirement of Law or in the interpretation or administration of any requirement of law applicable to Purchaser has made it unlawful, and no Governmental Authority shall have asserted that it is unlawful, for Purchaser to enter into Transactions with the applicable Pricing Rate;
(iv)    Both immediately prior to the related Transaction and also after giving effect thereto and to the intended use thereof, all representations and warranties in the Program Documents shall be true and correct on the date of such Transaction (with the same force and effect as if made on such date) and Seller is in compliance with the terms and conditions of the Program Documents, other than as may be expressly waived by the Purchaser;
(v)    The then Aggregate MRA Purchase Price when added to the Purchase Price for the requested Transaction shall not exceed, as of any date of determination, the lesser of (a) the Maximum Aggregate Purchase Price (less the Aggregate EPF Purchase Price) or (b) the Asset Base;

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(vi)    From and after the sixtieth (60th) day after the Effective Date, the Purchase Price for the requested Transaction shall not be less than $500,000 unless otherwise agreed;
(vii)    From and after the thirtieth (30th) day after the Effective Date, the Collection Account shall have been established with the Bank and shall be subject to the Collection Account Control Agreement;
(viii)    Satisfaction of any conditions precedent to the initial Transaction as set forth in clause (a) of this Section 10 that were not satisfied prior to such initial Purchase Date;
(ix)    Purchaser shall have determined that all actions necessary to maintain Purchaser’s perfected security interest in the Purchased Assets have been taken, including, without limitation, receipt of evidence no later than five (5) Business Days after the Effective Date, of a duly filed Uniform Commercial Code financing statement on Form UCC3 with respect to a UCC1, initial financing statement file number 2012 4582229, filed by Credit Suisse AG on November 28, 2012;
(x)    Purchaser or its designee shall have received any other documents reasonably requested by Purchaser; 
(xi)    There is no Margin Deficit at the time immediately prior to entering into a new Transaction (other than a Margin Deficit that will be cured contemporaneous with such Transaction in accordance with the provisions of Section 7 hereof); and
(xii)    None of the following shall have occurred and/or be continuing (it being understood that Purchaser will make the following determinations consistent with those made with respect to similar borrowers or sellers under similar credit or repurchase agreements):
		
	(A)
	an event or events shall have occurred in the good faith determination of Purchaser resulting in the effective absence of a “repo market” or comparable “lending market” for financing debt obligations secured by mortgage loans or securities or an event or events shall have occurred resulting in Purchaser not being able to finance Eligible Mortgage Loans through the “repo market” or “lending market” with traditional counterparties at rates which would have been reasonable prior to the occurrence of such event or events; or 

		
	(B)
	an event or events shall have occurred resulting in the effective absence of a “securities market” for securities backed by mortgage loans or an event or events shall have occurred resulting in Purchaser not being able to sell securities backed by mortgage loans at prices which would have been reasonable prior to such event or events; or 

		
	(C)
	there shall have occurred a material adverse change in the financial condition of Purchaser which affects (or can reasonably be expected to affect) materially and adversely the ability of Purchaser to fund its obligations under this Agreement.

(xiii)    With respect to FHA Buyout Loans, FHA continues to hold permanent indefinite authority to obtain funds directly from the United States Treasury without additional congressional approval.

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(c)    As condition precedent to any Transaction (including the initial Transaction) involving the funding of (i) Modified Loans, the parties shall have entered into an amended Custodial and Disbursement Agreement that incorporates such assets or (ii) FHA Buyout Loans, the parties shall have entered into the Sutton Collection Account Control Agreement and an amended Custodial and Disbursement Agreement that incorporates such assets; each in a form mutually agreed upon, and Purchasers shall have received an enforceability opinion with respect to such agreements and, if such funding relates to FHA Buyout Loans, a security interest opinion with respect to the Sutton Collection Account Control Agreement.

		
	11.
	RELEASE OF PURCHASED ASSETS

Upon timely payment in full of the Repurchase Price and all other Obligations (if any) then owing with respect to a Purchased Asset pursuant to Section 3(f) hereof, unless (i) Seller has not satisfied any outstanding and payable obligations under Section 7 of this Agreement, or (ii) an Event of Default shall have occurred and be continuing: (a) Purchaser shall be deemed to have terminated any security interest that Purchaser may have in such Purchased Asset, (b) all of Purchaser’s right, title and interest in such Purchased Assets shall automatically transfer to Seller, and (c) with respect to such Purchased Asset, Purchaser shall or shall direct Custodian to release such Purchased Asset to Seller.  Except as set forth in Section 16(f)(ii) and Section 15, Seller shall give at least two (2) Business Days prior written notice to Purchaser if such repurchase shall occur on any date other than the Repurchase Date.
If such a Margin Deficit is applicable, Purchaser shall notify Seller of the amount thereof and Seller may thereupon satisfy the Margin Call in the manner specified in Section 7.

		
	12.
	RELIANCE

With respect to any Transaction, Purchaser may conclusively rely upon, and shall incur no liability to Seller in acting upon, any request or other communication that Purchaser reasonably believes to have been given or made by a person authorized to enter into a Transaction on Seller’s behalf.

		
	13.
	REPRESENTATIONS AND WARRANTIES

Seller hereby represents and warrants to Purchaser and Agent, and shall on and as of the Purchase Date for any Transaction and on and as of each date thereafter through and including the related Repurchase Date be deemed to represent and warrant to Purchaser and Agent that:
(a)    Due Organization, Qualification, Power, Authority and Due Authorization.  Seller is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization and it has qualified to do business in each jurisdiction in which it is legally required to do so.  Seller has the power and authority under its certificate of incorporation, bylaws and applicable law to enter into this Agreement and the Program Documents and to perform all acts contemplated hereby and thereby or in connection herewith and therewith; this Agreement and the Program Documents and the transactions contemplated hereby and thereby have been duly authorized by all necessary corporate action and do not require any additional approvals or consents or other action by, or any notice to or filing with, any Person other than any that have heretofore been obtained, given or made.
(b)    Noncontravention.  The consummation of the transactions contemplated by this Agreement and Program Documents are in the ordinary course of business of Seller and will not conflict with, result in the breach of or violate any provision of the charter or by-laws of Seller or result in the breach of any provision of, or conflict with or constitute a default under or result in the acceleration of any obligation under, any agreement, indenture, loan or credit agreement or other instrument to which Seller, the Mortgage Loans or 

- 32 -

any of Seller’s Property is or may be subject to, or result in the violation of any law, rule, regulation, order, judgment or decree to which Seller, the Mortgage Loans or Seller’s Property is subject.  Without limiting the generality of the foregoing, the consummation of the transactions contemplated herein or therein will not violate any policy, regulation or guideline of the FHA or VA or result in the voiding or reduction of the FHA insurance, VA guarantee or any other insurance or guarantee in respect of any Mortgage Loan, and such FHA insurance or VA guarantee is in full force and effect or shall be in full force and effect as required by the applicable Agency Guide.
(c)    Legal Proceeding.  There is no action, suit, proceeding, inquiry or investigation, at law or in equity, or before or by any court, public board or body pending or, to Seller’s knowledge, threatened against or affecting Seller (or, to Seller’s knowledge, any basis therefor) wherein an unfavorable decision, ruling or finding would adversely affect the validity of the Mortgage Loans or the validity or enforceability of this Agreement, the Program Documents or any agreement or instrument to which Seller is a party and which is used or contemplated for use in the consummation of the transactions contemplated hereby, would adversely affect the proceedings of Seller in connection herewith or would or could materially and adversely affect Seller’s ability to carry out its obligations hereunder.
(d)    Valid and Binding Obligations.  This Agreement, the Program Documents and every other document to be executed by Seller in connection with this Agreement is and will be legal, valid, binding and subsisting obligations of Seller, enforceable in accordance with their respective terms, except that (A) the enforceability thereof may be limited by bankruptcy, insolvency, moratorium, receivership and other similar laws relating to creditors’ rights generally and (B) the remedy of specific performance and injunctive and other forms of equitable relief may be subject to equitable defenses and to the discretion of the court before which any proceeding therefor may be brought.
(e)    Financial Statements.  The financial statements of Seller, copies of which have been furnished to Purchaser, (i) are, as of the dates and for the periods referred to therein, complete and correct in all material respects, (ii) present fairly the financial condition and results of operations of Seller as of the dates and for the periods indicated and (iii) have been prepared in accordance with GAAP consistently applied, except as noted therein (subject as to interim statements to normal year‐end adjustments).  Since the date of the most recent financial statements, there has been no Material Adverse Change with respect to Seller.  Except as disclosed in such financial statements or pursuant to Section 14(i) hereof, Seller is not subject to any contingent liabilities or commitments that, individually or in the aggregate, have a material possibility of causing a Material Adverse Change with respect to Seller.
(f)    Accuracy of Information.  Neither this Agreement nor any representations and warranties or information relating to Seller that Seller has delivered or caused to be delivered to Purchaser, including, but not limited to, all documents related to this Agreement, the Program Documents or Seller’s financial statements (when taken as a whole), contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements made therein or herein in light of the circumstances under which they were made, not misleading.  Since the furnishing of such documents or information, there has been no change, nor any development or event involving a prospective change that would render any of such documents or information untrue or misleading in any material respect.
(g)    No Consents.  No consent, license, approval or authorization from, or registration, filing or declaration with, any regulatory body, administrative agency or other governmental instrumentality, nor any consent, approval, waiver or notification of any creditor, lessor or other non‐governmental Person, is required in connection with the execution, delivery and performance by Seller of this Agreement or any other Program Document, other than any that have heretofore been obtained, given or made.

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(h)    Compliance With Law, Etc.  No practice, procedure or policy employed or proposed to be employed by Seller in the conduct of its businesses violates any law, regulation, judgment, agreement, regulatory consent, order or decree applicable to it which, if enforced, would result in a Material Adverse Effect.
(i)    Solvency.  Seller is solvent and will not be rendered insolvent by any Transaction and, after giving effect to each such Transaction, Seller will not be left with an unreasonably small amount of capital with which to engage in its business.  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.
(j)    Fraudulent Conveyance.  The amount of consideration being received by Seller in respect of each Transaction, taken as a whole, constitutes reasonably equivalent value and fair consideration for the related Purchased Assets.  Seller is not transferring any Purchased Assets with any intent to hinder, delay or defraud any of its creditors.  The Agreement and the Program Documents, any other document contemplated hereby or thereby and each transaction have not been entered into fraudulently by Seller hereunder, or with the intent to hinder, delay or defraud any creditor or Purchaser.
(k)    Investment Company Act Compliance.  Neither Seller nor any of its Subsidiaries is required to be registered as an “investment company” as defined under the Investment Company Act or is an entity “controlled by” an entity required to be registered as an “investment company” as defined under the Investment Company Act.
(l)    Taxes.  Seller has timely filed all federal and state tax returns that are required to be filed by it and has paid all taxes, including any assessments received by it, to the extent that such taxes have become due (other than for taxes that are being contested in good faith and for which it has established adequate reserves).  Any taxes, fees and other governmental charges payable by Seller in connection with a Transaction and the execution and delivery of the Program Documents have been paid.
(m)    Additional Representations.  With respect to each Asset to be sold hereunder by Seller to Purchaser, Seller hereby makes all of the applicable representations and warranties set forth in Exhibit B as of the date the related Mortgage File is delivered to Purchaser or the Custodian with respect to the Assets and continuously while such Asset is subject to a Transaction.  Further, as of each Purchase Date, Seller shall be deemed to have represented and warranted in like manner that Seller has no knowledge that any such representation or warranty may have ceased to be true in a material respect as of such date, except as otherwise stated in a Transaction Notice, any such exception to identify the applicable representation or warranty and specify in reasonable detail the related knowledge of Seller.
(n)    No Broker.  Seller has not dealt with any broker, investment banker, agent, or other person, except for Purchaser, who may be entitled to any commission or compensation in connection with the sale of Purchased Assets pursuant to this Agreement; provided, that if Seller has dealt with any broker, investment banker, agent, or other person, except for Purchaser, who may be entitled to any commission or compensation in connection with the sale of Purchased Assets pursuant to this Agreement, such commission or compensation shall have been paid in full by Seller.
(o)    Good Title.  Seller has not sold, assigned, transferred, pledged or hypothecated any interest in any individual Mortgage Loan to any person other than any sale, assignment, transfer, pledge or hypothecation that is released in conjunction with the sale to Purchaser hereunder, and upon delivery of a 

- 34 -

Purchased Asset to Purchaser, Purchaser will be the sole owner thereof (other than for tax and accounting purposes), free and clear of any lien, claim or encumbrance other than those arising under this Agreement.
(p)    Approvals.  Seller has all requisite Approvals.
(q)    [RESERVED].
(r)    No Adverse Actions.  Seller has not received from any Agency a notice of extinguishment or a notice indicating material breach, default or material non-compliance which the Agent reasonably determines may entitle an Agency to terminate, suspend, sanction or levy penalties against the Seller, or a notice from any Agency, HUD, FHA or VA indicating any adverse fact or circumstance in respect of Seller which the Agent reasonably determines may entitle such Agency, HUD, FHA or VA, as the case may be, to revoke any Approval or otherwise terminate, suspend Seller as an Agency approved issuer or servicer, or with respect to which such adverse fact or circumstance has caused any Agency, HUD, FHA or VA, as the case may be, to terminate Seller, without any subsequent rescission thereof in such notice.
(s)    Affiliated Parties.  Seller is not an Affiliate of the Custodian, Disbursement Agent, Settlement Agent or any other party to a Program Document hereunder other than the Guarantor. 
The representations and warranties set forth in this Agreement shall survive transfer of the Purchased Assets to Purchaser and shall continue for so long as the Purchased Assets are subject to this Agreement.

		
	14.
	COVENANTS OF SELLER

Seller hereby covenants and agrees with Purchaser and Agent as follows:
(a)    Defense of Title.  Seller warrants and will defend the right, title and interest of Purchaser in and to all Purchased Assets against all adverse claims and demands.
(b)    No Amendment or Compromise.  None of Seller or those acting on Seller’s behalf shall amend, modify, or waive any term or condition of, or settle or compromise any claim in respect of, any item of the Purchased Assets, any related rights or any of the Program Documents without the prior written consent of Purchaser, unless such amendment or modification does not (i) affect the amount or timing of any payment of principal or interest payable with respect to a Purchased Asset, extend its scheduled maturity date, modify its interest rate, or constitute a cancellation or discharge of its outstanding principal balance or (ii) materially and adversely affect the security afforded by the real property, furnishings, fixtures, or equipment securing the Purchased Asset.  Notwithstanding the foregoing, the Seller may amend, modify or waive any term or condition of the individual Mortgage Loans in accordance with Accepted Servicing Practices and the Agency Guides; provided, that Seller shall promptly notify Purchaser of any amendment, modification or waiver that causes any Mortgage Loan to cease to be an Eligible Mortgage Loan.
(c)    No Assignment; No Liens.  Seller shall not sell, assign, transfer or otherwise dispose of, or grant any option with respect to, or pledge, hypothecate or grant a security interest in, or Lien on or otherwise encumber (except pursuant to the Program Documents) any of the Purchased Assets or any interest therein, provided that this Section 14(c) shall not prevent any of the following: any contribution, sale, assignment, transfer or conveyance of Purchased Assets in accordance with the Program Documents and any forward purchase commitment or other type of take-out commitment for the Purchased Assets (without vesting rights in the related purchasers as against Purchaser).  

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Seller shall not sell, assign, transfer or otherwise dispose of, or grant any option with respect to, or grant, create, incur, assume or permit to exist any Lien with respect to any of the Purchased Assets, the Mortgage Notes or any Property related thereto, including but not limited to the related Mortgages securing such Mortgage Notes and the proceeds of the Mortgage Notes, unless such Liens are the subject of an intercreditor agreement in form and substance satisfactory to the Agent, other than: (A) assignments to, and Liens granted to, the Purchaser herein or under the Program Documents; (B) Liens in connection with deposits or pledges to secure payment of worker’s compensation, unemployment insurance, old age pensions or other social security obligations, in the ordinary course of business of the seller or any subsidiary; (C) liens for taxes, fees, assessments, and governmental charges not delinquent or which are being contested in good faith by appropriate proceedings and for which appropriate reserves have been established in accordance with GAAP; (D) encumbrances consisting of zoning regulations, easements, rights of way, survey exceptions and other similar restrictions on the use of real property and minor irregularities in title thereto which do not materially impair their use in operation of its business; (E) Liens in connection with hedging arrangements and (F) any other Lien approved by Agent in its sole discretion.
(d)    No Economic Interest.  Neither Seller nor any affiliate thereof will acquire any economic interest in or obligation with respect to any Mortgage Loan except for record title to the Mortgage relating to the Mortgage Loan and the right and obligation to repurchase the Mortgage Loan hereunder.
(e)    Preservation of Purchased Assets. Seller shall take all actions necessary or, in the opinion of Purchaser, desirable, to preserve the Purchased Assets so that they remain subject to a first priority perfected security interest hereunder and deliver evidence that such actions have been taken, including, without limitation, duly executed and filed Uniform Commercial Code financing statements on Form UCC1. Without limiting the foregoing, Seller will comply with all applicable laws, rules, regulations and other laws of any Governmental Authority applicable to Seller relating to the Purchased Assets and cause the Purchased Assets to comply with all applicable laws, rules, regulations and other laws of any such Governmental Authority.  Seller will not allow any default to occur for which Seller is responsible under any Purchased Assets or any Program Documents and Seller shall fully perform or cause to be performed when due all of its obligations under any Purchased Assets or the Program Documents.
(f)    Maintenance of Papers, Records and Files.
(i)    Seller shall maintain all Records relating to the Purchased Assets not in the possession of Custodian in good and complete condition in accordance with industry practices and preserve them against loss.  Seller shall collect and maintain or cause to be collected and maintained all such Records in accordance with industry custom and practice, and all such Records shall be in Purchaser’s or Custodian’s possession unless Purchaser otherwise approves in writing.  Seller will not cause or authorize any such papers, records or files that are an original or an only copy to leave Custodian’s possession, except for individual items removed in connection with servicing a specific Mortgage Loan, in which event Seller will obtain or cause to be obtained a receipt from the Custodian for any such paper, record or file, or as otherwise permitted under the Custodial and Disbursement Agreement.
(ii)    For so long as Purchaser has an interest in or Lien on any Purchased Asset, Seller will hold or cause to be held all related Records for the sole benefit of Purchaser.
(iii)    Upon reasonable advance notice from Custodian or Purchaser, Seller shall (x) make any and all such Records available to Custodian or Agent for examination, either by its own officers or employees, or by agents or contractors, or both, and make copies of all or any portion thereof, 

- 36 -

(y) permit Agent or its authorized agents to discuss the affairs, finances and accounts of Seller with its independent certified public accounts; provided, however, Seller shall be permitted to participate in such discussions with its chief operating officer and chief financial officer and to discuss the affairs, finances and accounts of Seller with its independent certified public accountants.
(g)    Financial Statements and Other Information; Financial Covenants.
(i)    Seller shall keep or cause to be kept in reasonable detail books and records setting forth an account of its assets and business and, as applicable, shall clearly reflect therein the transfer of Purchased Assets to Purchaser.  Seller shall furnish or cause to be furnished to Purchaser the following:
		
	(A)
	Financial Statements.

(1)    As soon as is practicable, but in any event within ninety (90) days after the end of each fiscal year of Seller, the consolidated audited balance sheets of each of Seller and Guarantor and their respective consolidated Subsidiaries, which will be in conformity with GAAP, and the related consolidated audited statements of comprehensive income and changes in stockholders’ equity showing the financial condition of Seller and Guarantor and their respective consolidated Subsidiaries as of the close of such fiscal year and the results of operations during such year, and consolidated audited statements of cash flows, as of the close of such fiscal year, setting forth, in each case, in comparative form the corresponding figures for the preceding year.  The foregoing consolidated financial statements are to be reported on by, and to carry the unqualified report (acceptable in form and content to Purchaser and Agent) of, an independent public accountant of national standing acceptable to Purchaser and Agent and are to be accompanied by a letter of management in form and substance acceptable to Purchaser and Agent;
(2)    As soon as is practicable, but in any event within forty-five (45) days after the end of each of the first three fiscal quarters of each fiscal year of Seller and Guarantor, consolidated unaudited balance sheets and consolidated statements of comprehensive income and changes in stockholders’ equity and unaudited statement of cash flows, all to be in a form acceptable to Purchaser and Agent, showing the financial condition and results of operations of Seller and Guarantor and their respective consolidated Subsidiaries, each on a consolidated basis as of the end of each such quarter and for the then elapsed portion of the fiscal year, setting forth, in each case, in comparative form the corresponding figures for the corresponding periods of the preceding fiscal year (or in the case of the balance sheet, as of the end of the previous fiscal year, and in the case of the statement of stockholders’ equity, no comparative disclosure), certified by a financial officer of Seller or Guarantor (acceptable to Purchaser and Agent), as applicable, as presenting fairly the financial position and results of operations of Seller and Guarantor and their respective consolidated Subsidiaries and as having been prepared in accordance with GAAP consistently applied, in each case, subject to normal year-end audit adjustments;
(3)    As soon as practicable, but in any event within forty-five (45) days after the end of each of the first two months of a fiscal quarter, consolidated unaudited balance sheets and consolidated statements of comprehensive income, all to be in a form acceptable to Purchaser and Agent, showing the financial condition and results of operations of Seller and its consolidated Subsidiaries on a consolidated basis as of the end of each such 

- 37 -

month and for the then elapsed portion of the fiscal year, certified by a financial officer of Seller (acceptable to Purchaser and Agent) as presenting fairly the financial position and results of operations of Seller and its consolidated Subsidiaries and as having been prepared in accordance with GAAP consistently applied, in each case, subject to normal year-end audit adjustments;
(4)    [RESERVED];
(5)    Promptly upon becoming available, copies of all financial statements, reports, notices and proxy statements sent by Seller or Guarantor or their respective consolidated Subsidiaries in a general mailing to their respective stockholders and of all reports and other material (including copies of all registration statements under the Securities Act of 1933, as amended) filed by any of them with any securities exchange or with the SEC or any governmental authority succeeding to any or all of the functions of the SEC; provided, however, that this clause (5) is deemed to be satisfied by Seller arranging for Purchaser to receive automatic email notifications from Guarantor with respect to such items;
(6)    Promptly upon becoming available, copies of any press releases issued by Seller and copies of any annual and quarterly financial reports that Seller or Guarantor may be required to file with the SEC or any federal banking agency, or any report which Seller may be required to file with the SEC or any federal banking agency containing such financial statements, and other information concerning Seller’s or Guarantor’s business and affairs as is required to be included in such reports in accordance with the rules and regulations of the SEC or such federal banking agency as may be promulgated from time to time; provided, however, that this clause (6) is deemed to be satisfied by Seller arranging for Purchaser to receive automatic email notifications from Guarantor with respect to such items; and
(7)    Such supplements to the aforementioned documents and such other information regarding the operations, business, affairs and financial condition of the Seller or Guarantor or their respective consolidated Subsidiaries as Purchaser may reasonably request.
		
	(B)
	[RESERVED].

		
	(C)
	Other Information.  Upon the request of Purchaser or Agent, such other information or reports as Purchaser or Agent may from time to time reasonably request.

(ii)    Sellers shall comply with the following financial covenants:
		
	(A)
	Sellers shall maintain a combined Tangible Net Worth of not less than the greater of (x) $200,000,000, (y) 2.50% of the Aggregate Forward Rate Locks, or (z) 5.00% of Sellers’ combined outstanding recourse debt at month end.

		
	(B)
	At all times Sellers shall have combined unrestricted cash and cash equivalents in an amount of not less than the greater of (x) $25,000,000, 

- 38 -

(y) 0.50% of the Aggregate Forward Rate Locks, or (z) 1.00% of Sellers’ combined outstanding recourse debt. 
		
	(C)
	At no time shall the ratio of Sellers’ combined Indebtedness (excluding nonrecourse Indebtedness and excluding all Indebtedness that relates to a Seller’s guarantee obligations of its Parent Company’s debt) to combined Tangible Net Worth exceed 12:1.

(iii)    Certifications.  Seller shall execute and deliver a certification substantially in the form of Exhibit A attached hereto (i) within forty-five (45) days after the end of each of the first two calendar months of each fiscal quarter of Seller, (ii) within forty-five (45) days after the end of each of the first three fiscal quarters of each fiscal year of Seller and (iii) within ninety (90) days after the end of each fiscal year of Seller.
(h)    Agency Reporting.  Seller shall comply with the reporting requirements of each Agency Guide and HUD.
(i)    Notice of Material Events. Seller shall promptly inform Purchaser and Agent in writing of any of the following:
(i)    any Default, Event of Default by Seller or Guarantor or any other Person (other than Purchaser or Purchaser’s Affiliates) of any material obligation under any Program Document, or the occurrence or existence of any event or circumstance that Seller reasonably expects will with the passage of time become a Default, Event of Default by Seller or any other Person; 
(ii)    any change in the insurance coverage of Seller as required to be maintained pursuant to Section 14(q) hereof, or any other Person pursuant to any Program Document, with copy of evidence of same attached; 
(iii)    the commencement of, or any determination in, any dispute, litigation, investigation, proceeding, sanctions or suspension between Seller or Guarantor, on the one hand, and any Governmental Authority (or any other Person, but only with respect to material litigation), on the other; 
(iv)    any change in accounting policies or financial reporting practices of Seller which could reasonably be expected to have a Material Adverse Effect; 
(v)    any event, circumstance or condition that has resulted, or has a reasonable likelihood of resulting in either a Material Adverse Change or a Material Adverse Effect with respect to Seller;
(vi)    any material modifications to the Seller’s underwriting or acquisition guidelines; 
(vii)    [RESERVED];
(viii)    upon Seller becoming aware of any penalties, sanctions or charges levied, or threatened to be levied (which in the case of any penalties, sanctions or charges of a monetary nature, the amount of any such penalty, sanction or charge is material), against Seller or any change or threatened change in Approval status, or the commencement of any non-routine audit, investigation, or the institution of any action or the threat of institution of any action against Seller by any Agency, 

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HUD, FHA or VA or any other agency, or any supervisory or regulatory Government Authority supervising or regulating the origination or servicing of mortgage loans by, or the issuer status of, Seller;
(ix)    any consolidation or merger of Seller, any Change in Control of Seller, or any sale of all or substantially all of Seller’s Property; or
(x)    upon Seller becoming aware of any termination or threatened termination by an Agency of the Custodian as an eligible custodian.
(j)    Maintenance of Approvals.  Seller shall take all necessary actions to maintain its Approvals (including any obtained after the date of this Agreement) at all times during the term of this Agreement.  If, for any reason, Seller ceases to maintain any such Approval, Seller shall so notify Purchaser and Agent immediately.
(k)    Maintenance of Licenses.  Seller shall (i) maintain all licenses, permits or other approvals necessary for Seller to conduct its business and to perform its obligations under the Program Documents, (ii) remain in good standing under, and comply in all material respects with, all laws of each state in which it conducts business or any Mortgaged Property is located, and (iii) conduct its business strictly in accordance with applicable law.
(l)    Taxes, Etc.  Seller shall pay and discharge or cause to be paid and discharged, when due all taxes, assessments and governmental charges or levies imposed upon it or upon its income and profits or upon any of its Property, real, personal or mixed (including without limitation, the Purchased Assets) or upon any part thereof, as well as any other lawful claims which, if unpaid, might become a Lien upon such properties or any part thereof, except for any such taxes, assessments and governmental charges, levies or claims as are appropriately contested in good faith by appropriate proceedings diligently conducted and with respect to which adequate reserves are provided.  Seller shall file on a timely basis all federal, and state and local tax and information returns, reports and any other information statements or schedules required to be filed by or in respect of it. 
(m)    Nature of Business.  Seller shall not make any material change in the nature of its business as carried on at the date hereof. 
(n)    [RESERVED]. 
(o)    Use of Custodian.  Without the prior written consent of Purchaser, Seller shall use no third party custodian as document custodian other than the Custodian for the Mortgage File relating to the Mortgage Loans.
(p)    Merger of Seller.  Seller shall not, at any time, directly or indirectly (i) liquidate or dissolve or enter into any consolidation or merger or be subject to a Change in Control or sell all or substantially all of its Property (other than in connection with an asset-based financing or other secondary market transaction related to the Seller’s assets in the ordinary course of the Seller’s business) without providing Purchaser with not less than forty-five (45) days’ prior written notice of such event; (ii) form or enter into any partnership, joint venture, syndicate or other combination which would have a Material Adverse Effect with respect to Seller; or (iii) make any Material Adverse Change with respect to Seller.
(q)    Insurance.  Seller shall obtain and maintain insurance with responsible companies in such amounts and against such risks as are customarily carried by business entities engaged in similar businesses 

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similarly situated, including without limitation, the insurance required to be obtained and maintained by each Agency pursuant to the Agency Guides, and will furnish Purchaser on request full information as to all such insurance, and provide within fifteen (15) days after receipt of such request the certificates or other documents evidencing renewal of each such policy.  Seller shall continue to maintain coverage, for itself and its Subsidiaries, that encompasses employee dishonesty, forgery or alteration, theft, disappearance and destruction, robbery and safe burglary, Property (other than money and securities), and computer fraud in an aggregate amount of at least such amount as is required by each Agency.
(r)    Affiliate Transaction. Without providing Purchaser with not less than forty-five (45) days’ prior written notice of such event, Seller shall not, at any time, directly or indirectly, sell, lease or otherwise transfer any Property or assets to, or otherwise acquire any Property or assets from, or otherwise engage in any transactions with, any of its Affiliates unless the terms thereof are no less favorable to Seller, than those that could be obtained at the time of such transaction in an arm’s length transaction with a Person who is not such an Affiliate.
(s)    Change of Fiscal Year.  Seller shall not, at any time, directly or indirectly, except upon ninety (90) days’ prior written notice to Purchaser, change the date on which its fiscal year begins from its current fiscal year beginning date.
(t)    Transfer of Servicing Rights, Servicing Files and Servicing.  With respect to the Servicing Rights of each Mortgage Loan, Seller shall transfer such Servicing Rights to Purchaser or its designee on the related Purchase Date.  With respect to the Servicing Files and the physical and contractual servicing of each Mortgage Loan to the extent in the possession of Seller, Seller shall deliver such Servicing Files and the physical and contractual servicing to Purchaser or its designee upon the expiration of the Servicing Term unless either such Servicing Term is renewed by Purchaser or the termination of the Seller as servicer pursuant to Section 16.  Seller’s transfer of the Servicing Rights, Servicing Files and the physical and contractual servicing under this Section shall be in accordance with customary standards in the industry including the transfer of the gross amount of all escrows held for the related Mortgagors (without reduction for unreimbursed advances or “negative escrows”).
(u)    Audit and Approval Maintenance.  Seller shall (i) at all times maintain copies of relevant portions of all final written Agency audits, examinations, evaluations, monitoring reviews and reports of its origination and servicing operations (including those prepared on a contract basis for any such agency) in which there are material adverse findings, including without limitation notices of defaults, notices of termination of approved status, notices of imposition of supervisory agreements or interim servicing agreements, and notices of probation, suspension, or non-renewal, and all necessary approvals from each Agency, and (ii) provide copies of all such audits, examinations, evaluations, monitoring reviews and reports to the Agent in connection with any annual audit by the Agent. 
(v)    MERS.  The Seller is a member of MERS in good standing and current in the payment of all fees and assessments imposed by MERS, and has complied in all material respects with all rules and procedures of MERS.  In connection with the assignment of any Mortgage Loan registered on the MERS System, the Seller agrees that at the request of the Purchaser it will, at the Seller’s own cost and expense, cause the MERS System to indicate that such Mortgage Loan has been transferred to the Purchaser in accordance with the terms of this Agreement by including in MERS’ computer files (a) the code in the field which identifies the specific owner of the Mortgage Loans and (b) the code in the field “Pool Field” which identifies the series in which such Mortgage Loans were sold.  The Seller further agrees that it will not alter codes referenced in this paragraph with respect to any Mortgage Loan at any time that such Mortgage Loan 

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is subject to this Agreement, and the Seller shall retain its membership in MERS at all times during the term of this Agreement.
(w)    Fees and Expenses.  Seller shall timely pay to Purchaser all actual out of pocket fees and expenses required to be paid by Seller hereunder and under any other Program Document to Purchaser in immediately available funds, and without deduction, set-off or counterclaim in accordance with Purchaser’s Wire Instructions.
(x)    Agency Status.  Once the Seller or any of its subservicers has obtained any status with an Agency mortgage loan pool for which Seller is issuer or servicer, Seller shall not take or omit to take any act that (i) would result in the suspension or loss of any of such status, or (ii) after which Seller or any such relevant subservicer would no longer be in good standing with respect to such status, or (iii) after which Seller or any such relevant subservicer would no longer satisfy all applicable Agency net worth requirements, if both (x) all of the material effects of such act or omission shall not have been cured by Seller or waived by the applicable Agency before termination of such status and (y) the termination of such status could reasonably be expected to have a Material Adverse Effect.
(y)    Further Documents.  Seller shall, upon request of Purchaser or Agent, promptly execute and deliver to Purchaser or Agent all such other and further documents and instruments of transfer, conveyance and assignment, and shall take such other action as Purchaser or Agent may require more effectively to transfer, convey, assign to and vest in Purchaser and to put Purchaser in possession of the Property to be transferred, conveyed, assigned and delivered hereunder and otherwise to carry out more effectively the intent of the provisions under this Agreement.
(z)    Due Diligence.  Seller will permit Purchaser, Agent or their respective agents or designees to perform due diligence reviews on the Mortgage Loans subject to each Transaction hereunder up to the Due Diligence Review Percentage and within thirty (30) days following the related Purchase Date.  Seller shall cooperate in all respects with such diligence and shall provide Purchaser, Agent or their respective agents or designees with all loan files and other information (including, without limitation, Seller’s quality control procedures and results) reasonably requested by Purchaser, Agent or their respective agents or designees and shall bear all costs and expenses associated with such due diligence.
(aa)    Error Rate.  Seller shall at all times maintain an Error Rate as set forth in the Pricing Side Letter.

		
	15.
	REPURCHASE OF PURCHASED ASSETS

Upon discovery by Seller of a breach of any of the representations and warranties set forth on Exhibit B to this Agreement, Seller shall give prompt written notice thereof to Purchaser.  Upon any such discovery by Purchaser, Purchaser will notify Seller.  It is understood and agreed that the representations and warranties set forth in Exhibit B to this Agreement with respect to the Purchased Assets shall survive delivery of the respective Mortgage Files to the Purchaser or Custodian with respect to the Purchased Assets and shall inure to the benefit of Purchaser.  The fact that Purchaser has conducted or has failed to conduct any partial or complete due diligence investigation in connection with their purchase of any Purchased Asset shall not affect Purchaser’s right to demand repurchase or any other remedy as provided under this Agreement.  Seller shall, within five (5) Business Days of the earlier of Seller’s discovery or receipt of notice with respect to any Purchased Asset of (i) any breach of a representation or warranty contained in Exhibit B of this Agreement or (ii) any failure to deliver any of the items required to be delivered as part of the Mortgage File within the time period required for delivery pursuant to the Custodial and Disbursement Agreement, promptly cure such breach or delivery failure in all material respects.  If within five (5) Business Days after the earlier of 

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Seller’s discovery of such breach or delivery failure or receipt of notice thereof that such breach or delivery failure has not been remedied by Seller, Seller shall promptly upon receipt of written instructions from Purchaser, at Purchaser’s option, repurchase such Purchased Asset at a purchase price equal to the Repurchase Price with respect to such Purchased Asset by wire transfer to the account designated by Purchaser.

		
	16.
	SERVICING OF THE MORTGAGE LOANS; SERVICER TERMINATION

(a)    Subservicing.
(i)    Upon payment of the Purchase Price, Purchaser shall own the servicing rights related to the Mortgage Loans including the Mortgage File.  Seller and Purchaser each agrees and acknowledges that the Mortgage Loans sold hereunder shall be sold to Purchaser on a servicing released basis, and that Purchaser is engaging and hereby does engage Seller to provide subservicing of each Mortgage Loan for the benefit of Purchaser; provided that with respect to one or more Mortgage Loans, a Servicer other than the Seller may subservice the Mortgage Loans for the benefit of Purchaser.
(ii)    So long as a Mortgage Loan is outstanding, Seller shall neither assign, encumber or pledge its obligation to subservice such Mortgage Loans in whole or in part, nor delegate its rights or duties under this Agreement (to other than a subservicer) without the prior written consent of Purchaser, the granting of which consent shall be in the sole discretion of Purchaser.  Seller hereby acknowledges and agrees that (i) Purchaser is entering into this Agreement in reliance upon Seller’s representations as to the adequacy of its financial standing, servicing facilities, personnel, records, procedures, reputation and integrity, and the continuance thereof; and (ii) Seller’s engagement hereunder to provide mortgage servicing for the benefit of Purchaser  is intended by the parties to be a “personal service contract” and  Seller is hereunder intended by the parties to be an “independent contractor.”
(iii)    Servicer shall subservice and administer the Mortgage Loans it is subservicing on behalf of Purchaser in accordance with Accepted Servicing Practices.  Servicer shall have no right to modify or alter the terms of any such Mortgage Loan or consent to the modification or alteration of the terms of any such Mortgage Loan except in Strict Compliance with the related Agency Program.  Servicer shall at all times maintain accurate and complete records of its servicing of the Mortgage Loans it is subservicing on behalf of Purchaser, and Agent may, at any time during Servicer’s business hours on reasonable notice, examine and make copies of such Servicing Records.  Seller agrees that Purchaser is the 100% beneficial owner of all Servicing Records relating to the Mortgage Loans.  Seller covenants to hold or cause to be held such Servicing Records for the benefit of Purchaser and to safeguard such Servicing Records and to deliver them promptly to Agent or its designee (including the Custodian) at Agent’s request or otherwise as required by operation of this Section 16.
(b)    Servicing Term.  Servicer shall subservice such Mortgage Loans for a term of thirty (30) days commencing as of the related Purchase Date, which term may be extended in writing by Purchaser in its sole discretion, for an additional thirty-day period (each, a “Servicing Term”); provided, that Purchaser shall have the right to immediately terminate the Servicer at any time following the occurrence of a Servicer Termination Event.  If such Servicing Term is not extended by Purchaser or if Purchaser has terminated Servicer as a result of a Servicer Termination Event, Servicer shall transfer such servicing to Purchaser or its designee at no cost or expense to Purchaser as provided in Section 14(t).  Servicer shall hold or cause to be held all Escrow Payments collected with respect to the Mortgage Loans  it is subservicing on behalf of Purchaser in segregated accounts for the sole benefit of the Mortgagor and shall apply the same for the 

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purposes for which such funds were collected.  If Servicer should discover that, for any reason whatsoever, it has failed to perform fully its servicing obligations with respect to the Mortgage Loans it is subservicing on behalf of Purchaser, Seller shall promptly notify Purchaser.
(c)    Monthly Reports.  Within five (5) Business Days after the end of each month, and as requested by Purchaser from time to time, Seller shall furnish to Purchaser reports in form and scope satisfactory to Purchaser, setting forth (i) data regarding the performance of the individual Mortgage Loans and (ii) any other information reasonably requested by Purchaser or Agent.
(d)    Backup Servicer.  The Agent, in its sole discretion, may appoint a backup servicer at any time during the term of this Agreement.  In such event, Seller shall commence monthly delivery to such backup servicer of the servicing information required to be delivered to Purchaser pursuant to Section 16(d) hereof and any other information reasonably requested by backup servicer, all in a format that is reasonably acceptable to such backup servicer.  Purchaser shall pay all costs and expenses of such backup servicer, including, but not limited to all fees of such backup servicer in connection with the processing of such information and the maintenance of a servicing file with respect to the Purchased Assets.  Seller shall cooperate fully with such backup servicer in the event of a transfer of servicing hereunder and will provide such backup servicer with all documents and information necessary for such backup servicer to assume the servicing of the Purchased Assets.
(e)    Collection Account.  Within thirty (30) days after the Effective Date, Seller shall establish and maintain a separate account (the “Barclays Collection Account”) with the Bank in the Agent’s name for the sole and exclusive benefit of Barclays and a second separate account (the “Sutton Collection Account”) with the Bank in Sutton’s name for the sole and exclusive benefit of Sutton.  Such account shall be subject to the related Collection Account Control Agreement.  Servicer shall deposit or credit to the appropriate Collection Account all amounts collected on account of the Mortgage Loans within two (2) Business Days of receipt, and to remit such collections in accordance with Section 16(f) hereof.  Following the occurrence and during the continuance of an Event of Default, such amounts shall be deposited or credited irrespective of any right of setoff or counterclaim arising in favor of Seller (or any third party claiming through it) under any other agreement or arrangement.  Amounts on deposit in the Collection Accounts shall be distributed as provided in Section 16(f).
(f)    Income Payments.
(i)    Where a particular term of a Transaction extends over the date on which Income is paid in respect of any Purchased Asset subject to that Transaction, Income collected in respect of the Mortgage Loans shall be the Property of Purchaser subject to subsections 16(f)(ii) and (iii) below.  Each Collection Account shall be subject to the terms and conditions of the related Collection Account Control Agreement.
(ii)    Except as otherwise provided in Section 16(f)(iv), on the Monthly Payment Date, Purchaser shall cause amounts deposited in the applicable Collection Account to be released to Seller, which amounts shall be applied by Seller to (A) reduce outstanding Price Differential due and payable in respect of Purchased Assets for which Purchaser has received the related Repurchase Price (other than Price Differential) pursuant to Section 3(g) during the prior calendar month, (B) reduce the Repurchase Price for all outstanding Transactions, and (C) pay all other Obligations then due and payable to Purchaser.

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(iii)    Notwithstanding anything herein or in the Collection Account Control Agreements to the contrary, Purchaser shall in no event cause amounts deposited in the Collection Accounts to be released to Seller to the extent that such action would result in the creation of a Margin Deficit (unless prior thereto or simultaneously therewith Seller cures such Margin Deficit in accordance with Section 7), or if an Event of Default is then continuing.  Further, if an uncured Margin Deficit exists as of such Monthly Payment Date, Purchaser shall cause the Bank to disburse the Income related to the Transaction for which the Margin Deficit exists to Purchaser (up to the amount of such Margin Deficit), which amounts shall be applied by Purchaser to reduce the related Repurchase Price.
(iv)    If Successor Servicer takes delivery of such Mortgage Loans either under the circumstances set forth in Section 16(i) or otherwise, all amounts deposited in the Custodial Account shall be paid to Purchaser promptly upon such delivery.
(g)    RESERVED.
(h)    With respect to each FHA Buyout Loan, (i) Seller shall complete the U.S. Department of Housing and Urban Development’s form for Single-Family Application for Insurance Benefits in Sutton’s name and shall cause FHA to pay claims on such FHA Buyout Loan into the Sutton Collection Account, including by ensuring that Box 12 of the form provides “30565-0000-6”, and Box 16 provides 02-0765121, and (iii) Seller shall service such FHA Buyout Loan in strict compliance with all FHA requirements.
(i)    Servicer Termination.  Purchaser, in its sole discretion, may terminate Servicer’s rights and obligations as subservicer of the affected Mortgage Loans that it is subservicing on behalf of Purchaser and require Servicer to deliver the related Servicing Records to Purchaser or its designee upon the occurrence of (i) an Event of Default or (ii) upon the expiration of the Servicing Term as set forth in Section 16(b) by delivering written notice to Seller and Servicer requiring such termination.  Such termination shall be effective upon Seller’s receipt of such written notice; provided, that Servicer’s subservicing rights shall be terminated immediately upon the occurrence of a Servicer Termination Event, regardless of whether notice of such event shall have been given to or by Purchaser or Seller.  Upon any such termination, all authority and power of Servicer respecting its rights to subservice and duties under this Agreement relating thereto, shall pass to and be vested in the successor servicer appointed by Purchaser and Purchaser is hereby authorized and empowered to transfer such rights to subservice the Mortgage Loans for such price and on such terms and conditions as Purchaser shall reasonably determine.  Seller shall promptly take such actions and furnish to Purchaser such documents that Purchaser deems necessary or appropriate to enable Purchaser to enforce such Mortgage Loans and shall perform all acts and take all actions so that the Mortgage Loans and all files and documents relating to such Mortgage Loans held by Servicer, together with all escrow amounts relating to such Mortgage Loans, are delivered to successor Servicer, including but not limited to preparing, executing and delivering to the successor Servicer any and all documents and other instruments, placing in the successor Servicer’s possession all Servicing Records pertaining to such Mortgage Loans and doing or causing to be done, all at Seller’s sole expense.  To the extent that the approval of the Applicable Agency is required for any such sale or transfer, Seller shall fully cooperate with Purchaser to obtain such approval.  All amounts paid by any purchaser of such rights to service or subservice the Mortgage Loans shall be the Property of Purchaser.  The subservicing rights required to be delivered to successor Servicer in accordance with this Section 16(i) shall be delivered free of any servicing rights in favor of Seller or any third party (other than Purchaser) and free of any title, interest, lien, encumbrance or claim of any kind of Seller other than record title to the Mortgages relating to the Mortgage Loans and the right and obligation to repurchase the Mortgage Loans hereunder.  No exercise by Purchaser of its rights under this Section 16(i) shall relieve Seller of responsibility or liability for any breach of this Agreement.

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	17.
	EVENTS OF DEFAULT

With respect to any Transactions covered by or related to this Agreement, the occurrence of any of the following events shall constitute an “Event of Default”:
(a)    Seller fails to transfer the Purchased Assets to Purchaser on the applicable Purchase Date (provided the Purchaser has tendered the related Purchase Price);
(b)    Seller either fails to repurchase the Purchased Assets on the applicable Repurchase Date or fails to perform its obligations under Section 7 or the last sentence of Section 15;
(c)    Seller shall fail to (i) remit to Purchaser when due any payment required to be made under the terms of this Agreement, any of the other Program Documents or any other contracts or agreements delivered in connection herewith or therewith, or (ii) perform, observe or comply with any material term, condition, covenant or agreement contained in this Agreement or any of the other Program Documents (other than the other “Events of Default” set forth in this Section 17) or any other contracts or agreements delivered in connection herewith or therewith, and such failure is not cured within the time period expressly provided for therein, or, if no such cure period is provided, within two (2) Business Days of the earlier of (x) Seller’s receipt of written notice from Purchaser or Custodian of such breach or (y) the date on which Seller obtains notice or knowledge of the facts giving rise to such breach;
(d)    Any representation or warranty made by Seller or Guarantor (or any of Seller’s or Guarantor’s officers) in the Program Documents or in any other document delivered in connection therewith, or in any other contract or agreement, shall have been incorrect or untrue in any material respect when made or repeated or deemed by the terms thereof to have been made or repeated (other than the representations or warranties in Exhibit B which shall be considered solely for the purpose of determining whether the related Purchased Asset is an Eligible Mortgage Loan, unless (i) Seller shall have made any such representation or warranty with the knowledge that it was materially false or misleading at the time made or repeated or deemed to have been made or repeated, or (ii) any such representation or warranty shall have been determined by Purchaser in its sole discretion to be materially false or misleading on a regular basis);
(e)    Seller, Guarantor, any of Seller’s Subsidiaries shall be in default under, or fail to perform as requested under, or shall otherwise breach the material terms of, in each case beyond any applicable cure period, (i) any warehouse, credit, repurchase, line of credit, financing, derivative, hedging or forward sale agreements or other similar agreement relating to any Indebtedness in an amount greater than $5,000,000 between Seller, Guarantor, any of Seller’s Subsidiaries on the one hand, and any Person, on the other hand, (ii) any other agreement relating to any Indebtedness in an amount greater than $5,000,000 between Seller, Guarantor, any of Seller’s Subsidiaries, on the one hand, and any Person, on the other hand, or (iii) any other agreement (including, without limitation, the Program Documents and the EPF Program Documents), indebtedness, derivative or obligation entered into between Seller, Guarantor, any of Seller’s Subsidiaries and Purchaser or any of its Affiliates;
(f)    Any Act of Insolvency of the Seller or Guarantor or any of their respective Affiliates;
(g)    Any final judgment or order for the payment of money in excess of $5,000,000 in the aggregate (to the extent that it is, in the reasonable determination of Purchaser, uninsured and provided that any insurance or other credit posted in connection with an appeal shall not be deemed insurance for these purposes) shall be rendered against Seller or Guarantor or any of Seller’s Subsidiaries by one or more courts, administrative tribunals or other bodies having jurisdiction over them and the same shall not be discharged (or provisions shall not be made for such discharge) satisfied, or bonded, or a stay of execution thereof shall 

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not be procured, within sixty (60) days from the date of entry thereof and Seller or Guarantor or any of Seller’s Subsidiaries, as applicable, shall not, within said period of sixty (60) days, or such longer period during which execution of the same shall have been stayed or bonded, appeal therefrom and cause the execution thereof to be stayed during such appeal;
(h)    Any Governmental Authority or any person, agency or entity acting or purporting to act under governmental authority (i) shall have taken any action to condemn, seize or appropriate, or to assume custody or control of, all or any substantial part of the Property of Seller or Guarantor or any of their respective Affiliates, or shall have taken any action to displace the management of Seller or any of Seller’s Affiliates or to curtail its authority in the conduct of the business of Seller or any of Seller’s Affiliates, or (ii) takes any action in the nature of enforcement to remove, limit or restrict the approval of Seller or any of Seller’s Affiliates as an issuer, Purchaser or a seller/servicer of Mortgage Loans or securities backed thereby;
(i)    Seller shall fail to comply with any of the financial covenants set forth in Section 14(g)(ii), or Guarantor shall fail to comply with any of the financial covenants set forth in the Guaranty;
(j)    Any Material Adverse Effect shall have occurred;
(k)    This Agreement shall for any reason cease to create a valid first priority security interest or ownership interest upon transfer in any material portion of the Purchased Assets purported to be covered hereby;
(l)    A Change in Control of Seller shall have occurred that has not been approved by Agent;
(m)    Purchaser or Agent shall reasonably request, specifying the reasons for such request, reasonable information, and/or written responses to such requests, regarding the financial well-being of Seller, and such reasonable information and/or responses shall not have been provided within ten (10) Business Days of such request;
(n)    [RESERVED];
(o)    The Seller ceases to be a member of MERS in good standing for any reason (unless MERS is no longer acting in such capacity);
(p)    Change of Servicer without consent of the Agent; 
(q)    [RESERVED];
(r)    Failure of Seller to meet the qualifications to maintain all requisite Approvals, such Approvals are revoked or such Approvals are materially modified, provided, however, that the Seller is permitted to let Ginnie Mae, FHA and VA Approvals lapse if neither this Agreement nor the Mortgage Loan Participation Purchase and Sale Agreement include Ginnie Mae, FHA or VA mortgage loans and provided that the Seller is not originating or acquiring such mortgage loans;
(s)    [RESERVED]; or
(t)    Failure by Seller to remit when due Income payments required to be made under the terms of this Agreement or such Mortgage Loans it is subservicing, or failure by Seller to cause FHA (as contemplated by Section 16(h) hereof) to make claims payments to Sutton with respect to any FHA Buyout Loans sold to Sutton hereunder.

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	18.
	REMEDIES

Upon the occurrence of (i) an Event of Default (other than that referred to in Section 17(f)), the Purchaser, at its option, shall have the right to exercise any or all of the following rights and remedies and (ii) an Event of Default referred to in Section 17(f), the following rights and remedies shall immediately and automatically take effect without any further action by any Person.  
(a)    (%3)    The Repurchase Date for each Transaction hereunder shall, if it has not already occurred, be deemed immediately to occur (except that, in the event that the Purchase Date for any Transaction has not yet occurred as of the date of such exercise or deemed exercise, such Transaction shall be deemed immediately canceled).  Seller’s Obligations hereunder, to repurchase all Purchased Assets at the Repurchase Price therefor on the Repurchase Date in such Transactions shall thereupon become immediately due and payable; all Income paid after such exercise or deemed exercise shall be remitted to and retained by Purchaser and applied to the aggregate Repurchase Prices and any other amounts owing by Seller hereunder; Seller shall immediately deliver to Purchaser or its designee any and all original papers, records and files relating to the Purchased Assets subject to such Transaction then in its possession and/or control; and all right, title and interest in and entitlement to such Purchased Assets and Servicing Rights thereon shall become Property of Purchaser.
(i)    Purchaser may (A) sell, on or following the Business Day following the date on which the Repurchase Price becomes due and payable pursuant to Section 18(a)(i) without notice or demand of any kind, at a public or private sale and at such price or prices as Purchaser may reasonably deem satisfactory, any or all or portions of the Purchased Assets on a servicing-released or servicing-retained basis, as Purchaser may determine in its sole discretion and/or (B) in its sole discretion elect, in lieu of selling all or a portion of such Purchased Assets, to give Seller credit for such Purchased Assets (including credit for the Servicing Rights in respect of sales on a servicing-retained basis) in an amount equal to the Market Value of the Purchased Assets against the aggregate unpaid Repurchase Price and any other amounts owing by Seller hereunder.  Seller shall remain liable to Purchaser for any amounts that remain owing to Purchaser following a sale and/or credit under the preceding sentence.  The proceeds of any disposition of Purchased Assets shall be applied first to the reasonable costs and expenses including but not limited to legal fees incurred by Purchaser in connection with or as a result of an Event of Default; second to costs of cover and/or related hedging transactions; third to the aggregate Repurchase Prices; and fourth to all other Obligations.
(ii)    The parties recognize that it may not be possible to purchase or sell all of the Purchased Assets on a particular Business Day, or in a transaction with the same purchaser, or in the same manner because the market for such Purchased Assets may not be liquid.  In view of these characteristics of the Purchased Assets, the parties agree that liquidation of a Transaction or the underlying Purchased Assets does not require a public purchase or sale and that a good faith private purchase or sale shall be deemed to have been made in a commercially reasonable manner.  Accordingly, Purchaser may elect the time and manner of liquidating any Purchased Asset and nothing contained herein shall obligate Purchaser to liquidate any Purchased Asset upon the occurrence of an Event of Default or to liquidate all Purchased Assets in the same manner or on the same Business Day or shall constitute a waiver of any right or remedy of Purchaser.  Notwithstanding the foregoing, the parties to this Agreement agree that the Transactions have been entered into in consideration of and in reliance upon the fact that all Transactions hereunder constitute a single business and contractual obligation and that each Transaction has been entered into in consideration of the other Transactions.

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(iii)    The Purchaser may terminate the Agreement.
(b)    Seller hereby acknowledges, admits and agrees that Seller’s obligations under this Agreement are recourse obligations of Seller.  In addition to their rights hereunder, Purchaser shall have the right to proceed against any of Seller’s assets which may be in the possession of Purchaser, any of Purchaser’s Affiliates or their designee (including the Custodian), including the right to liquidate such assets and to set‐off the proceeds against monies owed by Seller to Purchaser pursuant to this Agreement.  Purchaser may set off cash, the proceeds of the liquidation of the Purchased Assets and Additional Purchased Mortgage Loans and all other sums or obligations owed by Purchaser to Seller or against all of Seller’s Obligations to Purchaser, or Seller’s obligations to Purchaser under any other agreement between the parties, or otherwise, whether or not such obligations are then due, without prejudice to Purchaser’s right to recover any deficiency.
(c)    Purchaser shall have the right to obtain physical possession of the Records and all other files of Seller relating to the Purchased Assets and all documents relating to the Purchased Assets which are then or may thereafter come into the possession of Seller or any third party acting for Seller and Seller shall deliver to Purchaser such assignments as Purchaser shall request.
(d)    Purchaser shall have the right to direct all Persons servicing the Purchased Assets to take such action with respect to the Purchased Assets as Purchaser determines appropriate, including, without limitation, using its rights under a power of attorney granted pursuant to Section 9(b) hereof.
(e)    Purchaser shall, without regard to the adequacy of the security for the Obligations, be entitled to the appointment of a receiver by any court having jurisdiction, without notice, to take possession of and protect, collect, manage, liquidate, and sell the Purchased Assets or any portion thereof, collect the payments due with respect to the Purchased Assets or any portion thereof, and do anything that Purchaser is authorized hereunder to do.  Seller shall pay all costs and expenses incurred by Purchaser in connection with the appointment and activities of such receiver, and such shall be deemed part of the Obligations hereunder.
(f)    Purchaser may, at its option, enter into one or more hedging transactions covering all or a portion of the Purchased Assets, and Seller shall be responsible for all damages, judgments, costs and expenses of any kind which may be imposed on, incurred by or asserted against Purchaser relating to or arising out of such hedging transactions; including without limitation any losses resulting from such hedging transactions, and such shall be deemed part of the Obligations hereunder.
(g)    In addition to all the rights and remedies specifically provided herein, Purchaser shall have all other rights and remedies provided by applicable federal, state, foreign and local laws, whether existing at law, in equity or by statute, including, without limitation, all rights and remedies available to a purchaser/secured party under the Uniform Commercial Code.
Except as otherwise expressly provided in this Agreement, Purchaser shall have the right to exercise any of their rights and/or remedies without presentment, demand, protest or further notice of any kind, other than as expressly set forth herein, all of which are hereby expressly waived by Seller.
Purchaser may enforce its rights and remedies hereunder without prior judicial process or hearing, and Seller hereby expressly waives, to the extent permitted by law, any right Seller might otherwise have to require Purchaser to enforce its rights by judicial process.  Seller also waives, to the extent permitted by law, any defense Seller might otherwise have to the Obligations, or any guaranty thereof, arising from use of nonjudicial process, enforcement and sale of all or any portion of the Purchased Assets or from any other election of remedies.  Seller recognizes that nonjudicial remedies are consistent with the usages of the trade, are responsive to commercial necessity and are the result of a bargain at arm’s length.

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Seller shall cause all sums received by it with respect to the Purchased Assets to be deposited promptly upon receipt thereof but in no event later than twenty-four (24) hours thereafter.  Seller shall be liable to Purchaser for the amount of all losses, costs and/or expenses (plus interest thereon at a rate equal to the Default Rate) which Purchaser may sustain or incur in connection with hedging transactions relating to the Purchased Assets, conduit advances and payments for mortgage insurance.

		
	19.
	DELAY NOT WAIVER; REMEDIES ARE CUMULATIVE

No failure on the part of Purchaser to exercise, and no delay by Purchaser in exercising, any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise by Purchaser of any right, power or remedy hereunder preclude any other or further exercise thereof or the exercise of any other right, power or remedy. All rights and remedies of Purchaser provided for herein are cumulative and in addition to any and all other rights and remedies provided by law, the Program Documents and the other instruments and agreements contemplated hereby and thereby, and are not conditional or contingent on any attempt by Purchaser to exercise any of its rights under any other related document.  Purchaser may exercise at any time after the occurrence of an Event of Default one or more remedies permitted hereunder, as it so desires, and may thereafter at any time and from time to time exercise any other remedy or remedies permitted hereunder.

		
	20.
	USE OF EMPLOYEE PLAN ASSETS

No assets of an employee benefit plan subject to any provision of ERISA shall be used by either party hereto in a Transaction.

		
	21.
	INDEMNITY; JOINT AND SEVERAL LIABILITY OF SELLERS

(a)    Seller agrees to indemnify and hold harmless Purchaser, Agent and their Affiliates and their respective officers, directors, employees, agents and advisors (each, an “Indemnified Party”) from and against (and will reimburse each Indemnified Party as the same is incurred within thirty (30) days following receipt of an invoice therefor) any and all claims, damages, losses, liabilities, taxes, increased costs and all other expenses including out-of-pocket expenses (including, without limitation, reasonable fees and expenses of outside counsel and audit and due diligence fees) that may be incurred by or asserted or awarded against any Indemnified Party, solely relating to claims of third parties, in each case arising out of or in connection with or by reason of (including without limitation, in connection with) (i) any investigation, litigation or other proceeding (whether or not such Indemnified Party is a party thereto) relating to, resulting from or arising out of any of the Program Documents and all other documents related thereto, any breach by Seller of any representation or warranty or covenant in this Agreement or any other Program Document, and all actions taken pursuant thereto, (ii) the Transactions, the actual or proposed use of the proceeds of the Transactions, this Agreement or any of the transactions contemplated thereby, including, without limitation, any acquisition or proposed acquisition, or any indemnity payable under the servicing agreement or other servicing arrangement, (iii) the actual or alleged presence of hazardous materials on any Property or any environmental action relating in any way to any Property, (iv) the actual or alleged violation of any federal, state, municipal or local predatory lending laws, or (v) the reduction of the Principal Balance due to a cram down or similar action authorized by any bankruptcy proceeding or other case arising out of or relating to any petition under the Bankruptcy Code, in each case, except to the extent such claim, damage, loss, liability or expense is found in a final, non‐appealable judgment by a court of competent jurisdiction to have resulted directly from such Indemnified Party’s gross negligence or willful misconduct or is the result of a claim made by Seller against the Indemnified Party, and Seller is ultimately the successful party in any resulting litigation or arbitration.  Seller hereby agrees not to assert any claim against Purchaser or any of its Affiliates, 

- 50 -

or any of their respective officers, directors, employees, attorneys and agents, on any theory of liability, for special, indirect, consequential or punitive damages arising out of or otherwise relating to the Program Documents, the actual or proposed use of the proceeds of the Transactions, this Agreement or any of the transactions contemplated thereby.  
(b)    If Seller fails to pay when due any costs, expenses or other amounts payable by it under this Agreement, including, without limitation, reasonable fees and expenses of counsel and indemnities, such amount may be paid on behalf of Seller by Purchaser, in its sole discretion and Seller shall remain liable for any such payments by Purchaser and such amounts shall be deemed part of the Obligations hereunder.  No such payment by Purchaser shall be deemed a waiver of any of Purchaser’s rights under the Program Documents.
(c)    Without prejudice to the survival of any other agreement of Seller hereunder, the covenants and obligations of Seller contained in this Section 21 shall survive the payment in full of the Repurchase Price and all other amounts payable hereunder and delivery of the Purchased Assets by Purchaser against full payment therefor.
(d)    Each Seller hereby accepts joint and several liability under the Agreement in consideration of the financial accommodation to be provided by the Purchaser thereunder, for the mutual benefit, directly and indirectly, of each Seller.  Each Seller jointly and severally, irrevocably and unconditionally accepts, not merely as a surety but also as a co-debtor, joint and several liability with each other Seller with respect to the payment and performance of all of the Obligations, it being the intention of the parties hereto that all the Obligations shall be the joint and several obligations Sellers without preferences or distinction among them.

		
	22.
	WAIVER OF REDEMPTION AND DEFICIENCY RIGHTS

Seller hereby expressly waives, to the fullest extent permitted by law, every statute of limitation on a deficiency judgment, any reduction in the proceeds of any Purchased Assets as a result of restrictions upon Purchaser or Custodian contained in the Program Documents or any other instrument delivered in connection therewith, and any right that they may have to direct the order in which any of the Purchased Assets shall be disposed of in the event of any disposition pursuant hereto.

		
	23.
	REIMBURSEMENT; SET-OFF

(a)    Seller agrees to pay on demand all reasonable out-of-pocket costs and expenses of Purchaser in connection with the initial and subsequent negotiation, modification, renewal and amendment of the Program Documents (including, without limitation, (A) all collateral review and UCC search and filing fees and expenses and (B) the reasonable fees and expenses of outside counsel for Purchaser with respect to advising Purchaser as to its rights and responsibilities, or the perfection, protection or preservation of rights or interests, under this Agreement and any other Program Document, with respect to negotiations with Seller or with other creditors of Seller arising out of any Default or any events or circumstances that may give rise to a Default and with respect to presenting claims in or otherwise participating in or monitoring any bankruptcy, insolvency or other similar proceeding involving creditors’ rights generally and any proceeding ancillary thereto).  Seller agrees to pay on demand, with interest at the Default Rate to the extent that an Event of Default has occurred, all costs and expenses, including without limitation, reasonable attorneys’ fees and disbursements (and fees and disbursements of Purchaser’s outside counsel) expended or incurred by Purchaser and/or Custodian in connection with the modification, renewal, amendment and enforcement (including any waivers) of the Program Documents (regardless of whether a Transaction is entered into hereunder), the taking of any action, including legal action, required or permitted to be taken by Purchaser (without duplication to Purchaser) and/or Custodian pursuant thereto or by refinancing or restructuring in 

- 51 -

the nature of a “workout.”  Further, Seller agrees to pay, with interest at the Default Rate to the extent that an Event of Default has occurred, all costs and expenses, including without limitation, reasonable attorneys’ fees and disbursements (and fees and disbursements of Purchaser’s outside counsel) expended or incurred by Purchaser in connection with (a) the rendering of legal advice as to Purchaser’s rights, remedies and obligations under any of the Program Documents, (b) the collection of any sum which becomes due to Purchaser under any Program Document, (c) any proceeding for declaratory relief, any counterclaim to any proceeding, or any appeal, or (d) the protection, preservation or enforcement of any rights of Purchaser.  For the purposes of this Section 23(a), attorneys’ fees shall include, without limitation, fees incurred in connection with the following: (1) discovery; (2) any motion, proceeding or other activity of any kind in connection with a bankruptcy proceeding or case arising out of or relating to any petition under Title 11 of the United States Code, as the same shall be in effect from time to time, or any similar law; (3) garnishment, levy, and debtor and third party examinations; and (4) post-judgment motions and proceedings of any kind, including without limitation any activity taken to collect or enforce any judgment.  Any and all of the foregoing amounts referred to in this Section 23(a) shall be deemed a part of the Obligations hereunder.  Without prejudice to the survival of any other agreement of Seller hereunder, the covenants and obligations of Seller contained in this Section 23(a) shall survive the payment in full of the Repurchase Price and all other amounts payable hereunder and delivery of the Purchased Assets by Purchaser against full payment therefor.
(b)    In addition to any rights and remedies of Purchaser hereunder and at law, Purchaser and its Affiliates shall have the right, without prior notice to Seller, any such notice being expressly waived by Seller to the extent permitted by applicable law, upon any amount becoming due and payable (whether at the stated maturity, by acceleration or otherwise) by Seller hereunder or under any other agreement (including, without limitation, the Mortgage Loan Participation Purchase and Sale Agreement) entered into between Seller or any of its Affiliates on the one hand, and Purchaser or any of its Affiliates on the other hand, to set-off and appropriate and apply against such amount any and all Property and deposits (general or special, time or demand, provisional or final), in any currency, or any other credits, indebtedness or claims, in any currency, or any other collateral (in the case of collateral not in the form of cash or such other marketable or negotiable form, by selling such collateral in a recognized market therefor or as otherwise permitted by law or as may be in accordance with custom, usage or trade practice), in each case, whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or owing by Purchaser or any Affiliate thereof to or for the credit or the account of Seller of any of its Affiliates.  Purchaser may also set-off cash and all other sums or obligations owed by Purchaser or its Affiliates to Seller or its Affiliates (whether under this Agreement or under any other agreement between the parties (including, without limitation, the Mortgage Loan Participation Purchase and Sale Agreement) or between Seller or any of its Affiliates, on the one hand, and Purchaser or any of its Affiliates, on the other) against all of Seller’s obligations to Purchaser or its Affiliates (whether under this Agreement or under any other agreement (including, without limitation, the Mortgage Loan Participation Purchase and Sale Agreement) between the parties or between Seller or any of its Affiliates, on the one hand, and Purchaser or any of its Affiliates, on the other), whether or not such obligations are then due. The exercise of any such right of set-off shall be without prejudice to Purchaser’s or its Affiliate’s right to recover any deficiency.  Purchaser agrees to promptly notify Seller after any such set‐off and application made by Purchaser; provided that the failure to give such notice shall not affect the validity of such set‐off and application.

		
	24.
	FURTHER ASSURANCES

Seller agrees to do such further acts and things and to execute and deliver to Purchaser or Agent such additional assignments, acknowledgments, agreements, powers and instruments as are reasonably required by Purchaser or Agent to carry into effect the intent and purposes of this Agreement, to perfect the 

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interests of Purchaser in the Purchased Assets or to better assure and confirm unto Purchaser its rights, powers and remedies hereunder.

		
	25.
	ENTIRE AGREEMENT; PRODUCT OF NEGOTIATION

This Agreement supersedes and integrates all previous negotiations, contracts, agreements and understandings between the parties relating to a sale and repurchase of Purchased Assets and Additional Purchased Mortgage Loans, and it, together with the other Program Documents, and the other documents delivered pursuant hereto or thereto, contains the entire final agreement of the parties.  No prior negotiation, agreement, understanding or prior contract shall have any validity hereafter.

		
	26.
	TERMINATION

This Agreement shall remain in effect until the Termination Date.  However, no such termination shall affect Seller’s outstanding obligations to Purchaser at the time of such termination.  Seller’s obligations to indemnify Purchaser pursuant to this Agreement and the other Program Documents shall survive the termination hereof.  

		
	27.
	REHYPOTHECATION; ASSIGNMENT

(a)    Purchaser may, in its sole election, and without the consent of the Seller engage in repurchase transactions with the Purchased Assets or otherwise pledge, hypothecate, assign, transfer or otherwise convey the Purchased Assets with a counterparty of Purchaser’s choice, in all cases subject to Purchaser’s obligation to reconvey the Purchased Assets (and not substitutes therefor) on the Repurchase Date, all at no cost to the Seller.  In the event Purchaser engages in a repurchase transaction with any of the Purchased Assets or otherwise pledges or hypothecates any of the Purchased Assets, Purchaser shall have the right to assign to Purchaser’s counterparty any of the applicable representations or warranties in Exhibit B to this Agreement and the remedies for breach thereof, as they relate to the Purchased Assets that are subject to such repurchase transaction.
(b)    The Program Documents and the Seller’s rights and obligations thereunder are not assignable by Seller without the prior written consent of Purchaser.  Any Person into which Seller may be merged or consolidated, or any corporation resulting from any merger, conversion or consolidation to which Seller shall be a party, or any Person succeeding to the business of Seller, shall be the successor of Seller hereunder, without the execution or filing of any paper or any further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding.  Without any requirement for further consent of the Seller and at no cost or expense to the Seller, each of Purchaser and Agent may, in its sole election, assign or participate all or a portion of its rights and obligations under this Agreement and the Program Documents with a counterparty of Purchaser’s or Agent’s choice, provided, however, that the Seller will continue to deal directly with the Purchaser following such assignment or participation.  Purchaser or Agent shall notify Seller of any such assignment and participation and shall maintain, for review by Seller upon written request, a register of assignees and participants and a copy of any executed assignment and acceptance by Purchaser or Agent and assignee (“Assignment and Acceptance”), specifying the percentage or portion of such rights and obligations assigned.  The Seller agrees that, for any such permitted assignment, Seller will cooperate with the prompt execution and delivery of documents reasonably necessary for such assignment process to the extent that Seller incurs no cost or expense that is not paid by the Purchaser or Agent, as applicable.  Upon such assignment, (a) such assignee shall be a party hereto and to each Program Document to the extent of the percentage or portion set forth in the Assignment and Acceptance, and shall succeed to the applicable rights and obligations of Purchaser or Agent hereunder, and (b) Purchaser or Agent shall, to the extent that such rights and obligations have been so assigned by it to either (i) an Affiliate of Purchaser or Agent which 

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assumes the obligations of Purchaser or Agent hereunder or (ii) to another Person which assumes the obligations of Purchaser or Agent hereunder, be released from their obligations hereunder accruing thereafter and under the Program Documents.
(c)    Purchaser and Agent may distribute to any prospective assignee, participant or pledgee any document or other information delivered to Purchaser by Seller subject to the confidentiality restrictions contained in Section 35 hereof; accordingly, such prospective assignee, participant or pledgee shall be required to agree to confidentiality provisions similar to those set forth in Section 35.

		
	28.
	AMENDMENTS, ETC.

No amendment or waiver of any provision of this Agreement nor any consent to any failure to comply herewith or therewith shall in any event be effective unless the same shall be in writing and signed by Seller, Purchaser and Agent, and then such amendment, waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

		
	29.
	SEVERABILITY

If any provision of any Program Document is declared invalid by any court of competent jurisdiction, such invalidity shall not affect any other provision of the Program Documents, and each Program Document shall be enforced to the fullest extent permitted by law.

		
	30.
	BINDING EFFECT; GOVERNING LAW

This Agreement shall be binding and inure to the benefit of the parties hereto and their respective successors and assigns.  THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF (EXCEPT FOR SECTION 5-1401 AND SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

		
	31.
	WAIVER OF JURY TRIAL; CONSENT TO JURISDICTION AND VENUE; SERVICE OF PROCESS

SELLER HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHTS TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE PROGRAM DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.  SELLER HEREBY IRREVOCABLY AND UNCONDITIONALLY CONSENTS, ON BEHALF OF ITSELF AND ITS PROPERTY, TO THE NON‐EXCLUSIVE JURISDICTION OF ANY COURT OF THE STATE OF NEW YORK, OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THE PROGRAM DOCUMENTS IN ANY ACTION OR PROCEEDING.  SELLER HEREBY SUBMITS TO, AND WAIVES ANY OBJECTION IT MAY HAVE TO, NON‐EXCLUSIVE PERSONAL JURISDICTION AND VENUE IN THE COURTS OF THE STATE OF NEW YORK AND THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, WITH RESPECT TO ANY DISPUTES ARISING OUT OF OR RELATING TO THE PROGRAM DOCUMENTS.  SELLER HEREBY IRREVOCABLY CONSENTS TO THE SERVICE OF A SUMMONS AND COMPLAINT AND OTHER PROCESS IN ANY ACTION, CLAIM OR PROCEEDING BROUGHT BY ANOTHER PARTY IN CONNECTION WITH THIS AGREEMENT OR THE OTHER PROGRAM DOCUMENTS, ANY RIGHTS OR OBLIGATIONS HEREUNDER OR THEREUNDER, OR THE PERFORMANCE OF SUCH RIGHTS AND 

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OBLIGATIONS, ON BEHALF OF ITSELF OR ITS PROPERTY, IN THE MANNER SPECIFIED IN THIS SECTION 31 AND TO SUCH PARTY’S ADDRESS SPECIFIED IN SECTION 34 OR SUCH OTHER ADDRESS AS SUCH PARTY SHALL HAVE PROVIDED IN WRITING TO THE OTHER PARTIES HERETO.  NOTHING IN THIS SECTION 31 SHALL AFFECT THE RIGHT OF ANY PARTY HERETO TO (I) SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW, OR (II) BRING ANY ACTION OR PROCEEDING AGAINST ANY OTHER PARTY OR ITS PROPERTIES IN THE COURTS OF ANY OTHER JURISDICTIONS.

		
	32.
	SINGLE AGREEMENT

Seller, Purchaser and Agent acknowledge that, and have entered hereinto and will enter into each Transaction hereunder in consideration of and in reliance upon the fact that, all Transactions hereunder constitute a single business and contractual relationship and have been made in consideration of each other.  Accordingly, Seller, Purchaser and Agent each agree (i) to perform all of its obligations in respect of each Transaction hereunder, and that a default in the performance of any such obligations shall constitute a default by it in respect of all Transactions hereunder, and (ii) that payments, deliveries and other transfers made by any of them in respect of any Transaction shall be deemed to have been made in consideration of payments, deliveries and other transfers in respect of any other Transaction hereunder, and the obligations to make any such payments, deliveries and other transfers may be applied against each other and netted.

		
	33.
	INTENT

Seller, Purchaser and Agent recognize that each of the Transactions and this Agreement is a “repurchase agreement” as that term is defined in Section 101 of the Bankruptcy Code, and a “securities contract” as that term is defined in Section 741 of the Bankruptcy Code, or a “qualified financial contract” as that term is defined in the Federal Deposit Insurance Act, as applicable, and a “master netting agreement” as that term is defined in Section 101 of the Bankruptcy Code.
It is understood that Purchaser’s right to liquidate the Purchased Assets and terminate and accelerate the Transactions and this Agreement or to exercise any other remedies pursuant to Section 18 hereof is a contractual right to liquidate, terminate and accelerate the Transactions under a repurchase agreement, a securities contract, a master netting agreement, and a qualified financial contract as described in Sections 559, 555 and 561 of the Bankruptcy Code and Section 1821(e)(8)(A)(i) of the Federal Deposit Insurance Act, as applicable, and a contractual right to offset under a master netting agreement and across contracts, as described in Section 561 of the Bankruptcy Code. It is understood that Seller’s right to accelerate the Repurchase Date with respect to the Purchased Assets and any Transaction hereunder pursuant to Section 18 hereof is a contractual right to liquidate, terminate and accelerate the Transactions under a repurchase agreement, a securities contract, a master netting agreement, and a qualified financial contract as described in Sections 559, 555 and 561 of the Bankruptcy Code and Section 1821(e)(8)(A)(i) of the Federal Deposit Insurance Act, as applicable.
The parties hereby intend that any provisions hereof or in any other document, agreement or instrument that is related in any way to the servicing of the individual Mortgage Loans shall be deemed “related to” this Agreement within the meaning of Sections 101(38A)(A) and 101(47)(A)(v) of the Bankruptcy Code and part of the “contract” as such term is used in Section 741 of the Bankruptcy Code.

		
	34.
	NOTICES AND OTHER COMMUNICATIONS

Except as provided herein, all notices required or permitted by this Agreement shall be in writing (including without limitation by Electronic Transmission, email or facsimile) and shall be effective and 

- 55 -

deemed delivered only when received by the party to which it is sent; provided that notices of Events of Default and exercise of remedies or under Sections 6 or 18 shall be sent via overnight mail and by electronic transmission.  Any such notice shall be sent to a party at the address, electronic mail or facsimile transmission number set forth below:
if to Seller:        Green Tree Servicing LLC
345 St. Peter Street
1100 Landmark Towers
St. Paul, Minnesota 85102
Attention:  Cheryl Collins
Telephone: (651) 293-3410
Facsimile:  (651) 293-5746

or

Ditech Mortgage Corp.
1100 Virginia Drive
Ft. Washington, PA 19034
Attention: Joseph Ruhlin
            
as applicable
with a copy to:

Green Tree Servicing LLC
345 St. Peter Street
1100 Landmark Towers
St. Paul, Minnesota 85102
Attention:  General Counsel
Telephone: (651) 293-3472
Facsimile:  (651) 265-5337

if to Purchaser:        Barclays Bank PLC – Mortgage Finance
745 Seventh Avenue, 4th Floor
New York, New York 10019
Attention:  Joseph O’Doherty
Telephone:  (212) 412-5517
Facsimile: (212) 412-7333
E-mail: Joseph.o’doherty@barcap.com
With copies to:

Barclays Bank PLC – Legal Department
745 Seventh Avenue, 20th Floor
New York, New York 10019
Telephone:  (212) 412-1494        
Facsimile: (212) 412-1288
            
Barclays Capital – Operations
1301 Sixth Avenue, 8th Floor
New York, New York 10019

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Attention: Hánsel Nieves
Telephone: (201) 499-2269
Facsimile:  (646) 845-6464
Email: hánsel.nieves@barclayscapital.com

or             Sutton Funding LLC
2711 Centreville Road, Suite 400
Wilmington, Delaware 19808
            
With copies to:
            
Barclays Bank PLC – Legal Department
745 Seventh Avenue, 20th Floor
New York, New York 10019
Telephone:  (212) 412-1494        
Facsimile: (212) 412-1288
            
Barclays Capital – Operations
1301 Sixth Avenue, 8th Floor
New York, New York 10019
Attention: Hánsel Nieves
Telephone: (201) 499-2269
Facsimile:  (646) 845-6464
Email: hánsel.nieves@barclayscapital.com

as applicable.

if to Agent:        Barclays Bank PLC – Mortgage Finance
745 Seventh Avenue, 4th Floor
New York, New York 10019
Attention:  Ellen Kiernan
Telephone:  (212) 412-7990
Facsimile:  (212) 412-7333
E-mail: ellen.kiernan@barcap.com

- 57 -

With copies to:

Barclays Bank PLC – Legal Department
745 Seventh Avenue, 20th Floor
New York, New York 10019
Telephone:  (212) 412-1494        
Facsimile: (212) 412-1288
            
Barclays Capital – Operations
1301 Sixth Avenue, 8th Floor
New York, New York 10019
Attention: Hánsel Nieves
Telephone: (201) 499-2269
Facsimile:  (646) 845-6464
Email: hánsel.nieves@barclayscapital.com

or to such other address, e-mail address or facsimile number as either party may notify to the others in writing from time to time.

		
	35.
	CONFIDENTIALITY

Seller, Purchaser and Agent each hereby acknowledge and agree that all written or computer-readable information provided by one party to the other in connection with the Program Documents or the Transactions contemplated thereby, including without limitation, Seller’s Mortgagor information in the possession of Purchaser (the “Confidential Terms”) shall be kept confidential and shall not be divulged to any party without the prior written consent of such other party except for (i) disclosure to Seller’s direct and indirect parent companies, directors, attorneys, agents or accountants, provided that such attorneys or accountants likewise agree to be bound by this covenant of confidentiality, or are otherwise subject to confidentiality restrictions or (ii) with prior (if feasible) written notice to Purchaser, disclosure required by law, rule, regulation or order of a court or other regulatory body or (iii) with prior (if feasible) written notice to Purchaser, disclosure to any approved hedge counterparty to the extent necessary to obtain any Hedge Instrument hereunder or (iv) with prior (if feasible) written notice to Purchaser, any disclosures or filing required under Securities and Exchange Commission (“SEC”) or state securities’ laws; provided that Seller shall file a request with the SEC and each applicable state securities office to keep the Pricing Side Letter confidential.  In the event that the SEC or applicable state securities office rejects such confidentiality request with respect to the Pricing Side Letter, Seller may file the Pricing Side Letter with the SEC and any applicable state securities office, as applicable; provided that Seller shall redact such pricing terms mutually agreed to between Purchaser and Seller.  Notwithstanding anything herein to the contrary, except as reasonably necessary to comply with applicable securities laws, each party (and each employee, representative, or other agent of each party) may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of the transaction and all materials of any kind (including opinions or other tax analyses) that are provided to it relating to such tax treatment and tax structure.  For this purpose, tax treatment and tax structure shall not include (i) the identity of any existing or future party (or any Affiliate of such party) to this Agreement or (ii) any specific pricing information or other commercial terms, including the amount of any fees, expenses, rates or payments arising in connection with the transactions contemplated by this Agreement.

		
	36.
	DUE DILIGENCE

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Purchaser, Agent or any of their respective agents, representatives or permitted assigns shall have the right, upon reasonable prior notice and during normal business hours, to conduct inspection and perform continuing due diligence reviews of (x) Seller and Guarantor, including, without limitation, their respective financial condition and performance of its obligations under the Program Documents, and (y) the Servicing File and the Purchased Assets.  Seller agrees promptly to provide Purchaser, Agent and their respective agents with access to, copies of and extracts from any and all documents, records, agreements, instruments or information (including, without limitation, any of the foregoing in computer data banks and computer software systems) relating to Seller’s respective business, operations, servicing, financial condition, performance of their obligations under the Program Documents, the documents contained in the Servicing Files or the Purchased Assets or assets proposed to be sold hereunder in the possession, or under the control, of Seller.  In addition, Seller shall also make available to Purchaser and/or Agent, upon reasonable prior notice and during normal business hours, a knowledgeable financial or accounting officer of Seller for the purpose of answering questions respecting any of the foregoing.  Without limiting the generality of the foregoing, Seller acknowledges that Purchaser shall enter into transactions with Seller based solely upon the information provided by Seller to Purchaser and/or Agent and the representations, warranties and covenants contained herein, and that Purchaser and/or Agent, at its option, shall have the right at any time to conduct itself or through its agents, or require Seller to conduct quality reviews and underwriting compliance reviews of the individual Mortgage Loans at the expense of Seller.  Any such diligence conducted by Purchaser and/or Agent shall not reduce or limit the Seller’s representations, warranties and covenants set forth herein.  Seller agrees to reimburse Purchaser and/or Agent for all reasonable out-of-pocket due diligence costs and expenses incurred pursuant to this Section 36. 

		
	37.
	USA PATRIOT ACT; OFAC AND ANTI-TERRORISM

Seller hereby represents and warrants to Purchaser and Agent, and shall on and as of the Purchase Date for any Transaction and on and as of each date thereafter through and including the related Repurchase Date be deemed to represent and warrant to Purchaser and Agent that: 
(a)    Each of Purchaser and Agent hereby notifies the Seller that pursuant to the requirements of the USA PATRIOT Improvement and Reauthorization Act, Title III of Pub. L. 109-177 (signed into law March 9, 2009) (the “Act”), it is required to obtain, verify, and record information that identifies the Seller, which information includes the name and address of the Seller and other information that will allow each of Purchaser and Agent, as applicable, to identify the Seller in accordance with the Act.
(b)    (i) Neither the Seller, nor the Parent Company nor any Originator is named on the list of Specifically Designated Nationals maintained by OFAC or any similar list issued by OFAC (collectively, the “OFAC Lists”); (ii) no Person on the OFAC Lists owns a 50% or greater interest in, directly or indirectly, or otherwise controls, the Seller, the Parent Company or any Originator; and (iii) to the best of the knowledge of the Seller or any Originator, none of the Purchaser or Agent is precluded, under the laws and regulations administered by OFAC, from entering into this Agreement or any transactions pursuant to this Agreement with the Seller or any Originator due to the ownership or control by any person or entity of stocks, shares, bonds, debentures, notes, drafts or other securities or obligations of the Seller or any Originator.
(c)    (i) Neither the Seller nor any Originator will conduct business with or engage in any transaction with any Obligor that the Seller or any Originator knows or should reasonably be expected to know that (x) is named on any of the OFAC Lists or (y) 50% or greater of the equity interests in such Obligor are owned by a Person named on any OFAC List; (ii) if any of the Seller or any Originator obtains actual knowledge or should reasonably be expected to know that any Obligor is named on any of the OFAC Lists or that any Person named on an OFAC List owns a 50% or greater interest in an Obligor, the Seller or any 

- 59 -

Originator, as applicable, will give prompt written notice to the Purchaser and Agent of such fact or facts; and (iii) the Seller and any Originator will (x) comply at all times with the requirements of the Economic and Trade Sanctions and Anti-Terrorism Laws applicable to any transactions, dealings or other actions relating to this Agreement, except to the extent such non-compliance does not result in a violation of applicable law by any of the Purchaser or Agent and (y) will, upon the Purchaser’s or Agent’s reasonable request from time to time during the term of this Agreement, deliver a certification confirming its compliance with the covenants set forth in this Section 37.

		
	38.
	AMENDMENT AND RESTATEMENT OF ORIGINAL AGREEMENT; NO NOVATION

(a)    As of the date first written above, the terms and provisions of the Original Agreement as amended and restated shall be and hereby are amended, superseded and restated in their entirety by the terms and provisions of this Agreement.
(b)    Notwithstanding the amendment and restatement of the Original Agreement by this Agreement, any amounts owing to Barclays under the Original Agreement whether on account of Transactions or otherwise which remain outstanding as of the date hereof, shall constitute Obligations owing hereunder. This Agreement is given in substitution for the Original Agreement, and not as payment of the obligations of the Seller thereunder, and is in no way intended to constitute a novation of the Original Agreement.
(c)    Upon the effectiveness of this Agreement on the date first written above, unless the context otherwise requires, each reference to the Original Agreement in any of the Program Documents and in each document, instrument or agreement executed and/or delivered in connection therewith shall mean and be a reference to this Agreement. Except as expressly modified as of the date hereof, all of the other Program Documents shall remain in full force and effect and are hereby ratified and confirmed.

[SIGNATURE PAGE FOLLOWS]

- 60 -

IN WITNESS WHEREOF, Sellers, Agent and Purchasers have caused their names to be signed to this Amended and Restated Master Repurchase Agreement by their respective officers thereunto duly authorized as of the date first above written.
GREEN TREE SERVICING LLC, as a Seller  
 
 
By: /s/ Cheryl Collins                 
Name:  Cheryl Collins
Title:    SVP & Treasurer
DITECH MORTGAGE CORP., as a Seller  
 
By: /s/ Joseph Ruhlin                 
Name:  Joseph Ruhlin
Title:    Treasurer
BARCLAYS BANK PLC, as a Purchaser and Agent
 
By: /s/ Adam Yarnold                      
Name:   Adam Yarnold
Title:    Managing Director
SUTTON FUNDING LLC, as a Purchaser  
  
By: /s/ Ellen V Kiernan                 
Name:  Ellen V Kiernan
Title:    Vice President

Signature Page to Amended and Restated Master Repurchase Agreement

EXHIBIT A
MONTHLY CERTIFICATION
I, _______________________, _______________________ of Green Tree Servicing LLC, and I, ___________________________, _________________ of Ditech Mortgage Corp. (the “Sellers”), in accordance with that certain Amended and Restated Master Repurchase Agreement (“Agreement”), dated as of April 23, 2015, by and between Barclays Bank PLC, Sutton Funding LLC,  and Sellers do hereby certify that:
		
	(i)
	To the best of my knowledge, no Default or Event of Default has occurred and is continuing; and

		
	(ii)
	The Sellers have complied with each of the covenants set forth in Section 14(g)(ii), as evidenced by the worksheet attached hereto as Schedule One.

 [Signature Page Follows]

A - 1

Capitalized terms used but not defined herein shall have the meanings assigned thereto in the Agreement.
IN WITNESS WHEREOF, I have signed this certificate.
Date:             , 20[    ]
[_____________]  

By:_________________________  
Name: 
Title:

A - 2

SCHEDULE ONE TO EXHIBIT A
FINANCIAL COVENANTS WORKSHEET

A - 3

EXHIBIT B
REPRESENTATIONS AND WARRANTIES 
WITH RESPECT TO MORTGAGE LOANS
Capitalized terms used but not defined in this Exhibit B have the meanings assigned to such terms in the Amended and Restated Master Repurchase Agreement dated as of April 23, 2015 (the “Agreement”), by and between Barclays Bank PLC, (“Purchaser” or “Agent”), Sutton Funding LLC (“Purchaser”) and Green Tree Servicing LLC and Ditech Mortgage Corp. (each a “Seller”).  Each Seller hereby represents and warrants to the Purchasers and Agent that, for each Mortgage Loan as of the related Purchase Date and the related Repurchase Date and on each date that such Mortgage Loan is subject to a Transaction:
(a)    The information set forth in the Seller Mortgage Loan Schedule, with respect to the Mortgage Loan is true and correct in all material respects;
(b)    Such Mortgage Loan is an Eligible Mortgage Loan;
(c)    Such Mortgage Loan is owned solely by Seller, and, upon Purchaser’s receipt of a duly executed Warehouse Lender’s Release with respect thereto and its compliance with the terms set forth therein, such Mortgage Loan will not be subject to any lien, claim or encumbrance, including, without limitation, any such interest pursuant to a loan or credit agreement for warehousing mortgage loans, and was originated or acquired by Seller from an Originator, underwritten and serviced in Strict Compliance (in respect of Fannie Mae Mortgage Loans, Freddie Mac Mortgage Loans or Ginnie Mae Mortgage Loans) or the Purchaser’s underwriting guidelines (in respect of Jumbo Mortgage Loans), and has at all times remained in compliance with all applicable laws and regulations, including without limitation the Federal Truth-in-Lending Act, the Real Estate Settlement Procedures Act, regulations issued pursuant to any of the aforesaid, and, in respect of Fannie Mae Mortgage Loans, Freddie Mac Mortgage Loans or Ginnie Mae Mortgage Loans, all rules, requirements, guidelines and announcements of each Agency, and, as applicable, the FHA and VA, as the same may be amended from time to time;
(d)    The improvements on the land securing such Mortgage Loan are and will be kept insured at all times by responsible insurance companies reasonably acceptable to Purchaser and the Applicable Agency against fire and extended coverage hazards under policies, binders or certificates of insurance with a standard mortgagee clause in favor of Seller and its assigns, providing that such policy may not be canceled without prior notice to Seller.  Any proceeds of such insurance shall be held in trust for the benefit of Purchaser.  The scope and amount of such insurance shall satisfy the rules, requirements, guidelines and announcements of the Applicable Agency, and shall in all cases be at least equal to the lesser of (A) the principal amount of such Mortgage Loan or (B) the maximum amount permitted by applicable law, and shall not be subject to reduction below such amount through the operation of a coinsurance, reduced rate contribution or similar clause;
(e)    Each Mortgage is a valid first lien on the Mortgaged Property and is covered by an attorney’s opinion of title acceptable to the Applicable Agency or by a policy of title insurance on a standard ALTA or similar lender’s form in favor of Seller and its assigns, subject only to exceptions permitted by the applicable Agency Program.  Seller shall hold for the benefit of Purchaser such policy of title insurance, and, upon request of Purchaser, shall immediately deliver such policy to Purchaser or to the Custodian on behalf of Purchaser;
(f)    Such Mortgage Loan is either (i) insured by the FHA under the National Housing Act, guaranteed by the VA under the Servicemen’s Readjustment Act of 1944 or (ii) with respect to Fannie Mae 

B - 1

Mortgage Loans and Freddie Mac Mortgage Loans, is otherwise eligible to be insured or guaranteed in accordance with the requirements of the applicable Agency Program and, in the case of either (i) or (ii), such Mortgage Loan is not subject to any defect that would prevent recovery in full or in part against the FHA, VA or other insurer or guarantor, as the case may be, or (iii) a Jumbo Mortgage Loan;
(g)    If such Mortgage Loan is not an FHA Buyout Loan or a Modified Loan, a mortgage identification number (“MIN”) has been assigned by MERS and such MIN is accurately provided on the Seller Mortgage Loan Schedule.  Either the Mortgage is in favor of MERS or an Assignment of Mortgage to MERS has been duly and properly recorded or in the process of being recorded;
(h)    Seller has not received any notice of liens or legal actions with respect to such Mortgage Loan and no such notices have been electronically posted by MERS;
(i)    Unless it is a Jumbo Mortgage Loan or FHA Buyout Loan, each Mortgage Loan is eligible for sale to the Applicable Agency and fully complies with all of the terms and conditions, including any covenants, representations and warranties, in the applicable Agency Guide and eligible for securitization by and/or sale to Fannie Mae, Freddie Mac or eligible for inclusion in a Ginnie Mae MBS pool;
(j)    There are no restrictions, contractual or governmental, which would impair the ability of Seller from servicing the Mortgage Loans;
(k)    The original Mortgage in respect of each Mortgage Loan has been sent for recordation in the appropriate public recording office in the applicable jurisdictions wherein such recordation is necessary to perfect the lien thereof as against creditors of the applicable Mortgagor;
(l)    Such Mortgage Loan may not result in Negative Amortization;
(m)    The Mortgagor is one or more natural persons and/or trustees for an Illinois land trust or a trustee under a “living trust” and such “living trust” is in compliance with Applicable Agency guidelines for such trusts;
(n)    Such Mortgage Loan is not a High Cost Mortgage Loan;
(o)    No predatory, abusive or deceptive lending practices, including but not limited to, the extension of credit to a Mortgagor without regard for the Mortgagor’s ability to repay the Mortgage Loan and the extension of credit to a Mortgagor which has no tangible net benefit to the Mortgagor, were employed in connection with the origination of the Mortgage Loan.  Such Mortgage Loan is in compliance with the anti predatory lending eligibility for purchase requirements of the Fannie Mae Guide;
(p)    On or immediately prior to the Origination Date the related Mortgagor’s FICO Score was equal to or greater than (i) with respect to Ginnie Mae Mortgage Loans that are not part of an FHA and VA streamline program, 580, but only to the extent of the Low FICO FHA/VA Loan Sublimit, and (ii) with respect to Mortgage Loans other than Ginnie Mae Mortgage Loans that are not part of an FHA and VA streamline program, 620 (in each case, it being acknowledged that the related Mortgagor shall be deemed to have a FICO Score of zero where no FICO Score is available), unless such Mortgage Loan is a part of (i) an FHA and VA streamline program for which a current FICO Score is not required for credit purposes or (ii) the U.S. Department of the Treasury’s Home Affordable Refinance Program; provided that any such Mortgage Loans that require compliance with representations and warranties include an Agency waiver for any exceptions;

B - 2

(q)    If such Mortgage Loan was pledged to another warehouse, credit, repurchase or other financing facility immediately prior to the related Purchase Date, (i) such pledge has been released immediately prior to, or concurrently with, the related Purchase Date hereunder and (ii) Purchaser has received a Warehouse Lender’s Release Letter in respect of such Mortgage Loan;
(r)    Such Mortgage Loan has not been released from the possession of the Custodian under Section 5 of the Custodial and Disbursement Agreement to Seller for a period in excess of fifteen (15) calendar days (or if such fifteenth day is not a Business Day, the next succeeding Business Day) or such earlier time period as indicated on the related Request for Release of Documents; 
(s)    Such Mortgage Loan has not been selected in a manner so as to adversely affect Purchaser’s interests;
(t)    To the extent such Mortgage Loan is not an FHA Buyout Loan or Modified Loan, such Mortgage Loan is  MERS Designated Mortgage Loan;
(u)    No Mortgage Loan 
(A) that is a first-lien Mortgage Loan  insured by the FHA or guaranteed by the VA (other than a HARP Mortgage Loan), has a Loan-to-Value Ratio on First Mortgage Loans over 97.5%; 
(B) that is any other Mortgage Loan (other than one originated as part of an FHA or VA streamline program) has a Loan-to-Value Ratio over 95% (or in the case of second Mortgage Loans has a combined Loan-to-Value Ratio over 95%); provided, however, that Fannie Mae Mortgage Loans subject to this Agreement may have a Loan-to-Value Ratio that exceeds 95% but is equal to or less than 97%, but only to the extent of the Fannie Mae LTV Sublimit;
(C) that was originated under an FHA and VA streamline program has a Loan-to-Value Ratio more than that permitted under such streamline program (together, “Streamline Loans”); provided that Streamline Loans that require compliance with representations and warranties include an Agency waiver for any exceptions; and 
(D) that is a HARP Mortgage Loan has a Loan-to-Value Ratio other than that permitted under the U.S. Department of the Treasury’s Home Affordable Refinance Program.
(v)    With respect to each Mortgage Loan that is a Wet-Ink Mortgage Loan, the Settlement Agent has been instructed in writing by Seller to hold the related Mortgage File as agent and bailee for Purchaser or Agent and to promptly forward such Mortgage File in accordance with the provisions of the Custodial and Disbursement Agreement and the Escrow Instruction Letter;
(w)    [RESERVED].
(x)    Each Mortgage Loan has been fully disbursed and is secured by a first lien on an underlying property as a “closed-end” Mortgage Loan with no further disbursements required by any party;
(y)    The Loan-to-Value Ratio for each Jumbo Mortgage Loan is within the limits set forth in Purchaser’s underwriting guidelines attached hereto as Exhibit I, as the same may be amended, supplemented or otherwise modified from time to time;

B - 3

(z)    The Mortgage Loan is not secured by property located in (a) a state where the Seller is not licensed as a lender/mortgage banker or (b) a state that the Purchaser determines to be unacceptable, and provides thirty (30) days’ written notice to the Seller because of a predatory lending or other law in such state;
(aa)    The Mortgage Loan has not been converted to an ownership interest in real property through foreclosure or deed-in-lieu of foreclosure;
(bb)    The Mortgage Loan relates to Mortgaged Property that consists of (i) a detached or attached single family dwelling, (ii) a two-to-four family dwelling, (iii) a one-family dwelling unit in a Freddie Mac eligible condominium project, (iv) a townhouse, or (v) a detached or attached single family dwelling in a planned unit development none of which is a cooperative property (except as related to a HARP Mortgage Loan) or commercial property; and is not related to Mortgaged Property that consists of (a) mixed use properties, (b) log homes, (c) earthen homes, (d) underground homes, (e) any dwelling situated on more than ten acres of property or (f) any dwelling situated on a leasehold estate; 
(cc)    Such Mortgage Loan is not a Restricted Mortgage Loan;
(dd)    To the extent such Mortgage Loan is not an FHA Buyout Loan or Modified Loan, such Mortgage Loan shall not have been a 30+ Day Delinquent Mortgage Loan during the twenty-four (24) month period prior to the related Purchase Date; 
(ee)    With respect to (i) any table-funded Wet-Ink Mortgage Loan that is the subject of such Transaction, Seller shall have received (x) a copy of the Escrow Instruction Letter in the form attached as Exhibit G hereto, signed by the Settlement Agent and (y) a copy of the Closing Protection Letter from each title company in form and substance acceptable to Purchaser in its sole discretion and (ii) any self-funded Wet-Ink Mortgage Loan that is the subject of such Transaction, (x) Seller shall have received a copy of the Escrow Instruction Letter in the form attached as Exhibit G hereto, signed by the Settlement Agent, (y) Seller shall have received a copy of the Closing Protection Letter from each title company in form and substance acceptable to Purchaser in its sole discretion and (z) Seller shall have provided to Purchaser confirmation of the Fed. Reference Number (or other independent confirmation acceptable to the Purchaser) with respect to the funding of any such Wet-Ink Mortgage Loan; and
(ff)    The related Mortgagor in respect of such Mortgage Loan shall have made its first scheduled Monthly Payment prior to the second schedule Monthly Payment becoming due.

B - 4

EXHIBIT C
FORM OF TRANSACTION NOTICE
[insert date]
Barclays Bank PLC
745 Seventh Avenue, 4th Floor
New York, New York 10019
Attention:  Ellen Kiernan
Sutton Funding LLC
2711 Centreville Road, Suite 400
Wilmington, Delaware 19808
Attention:  Hánsel T. Nieves

		
	Re:
	Amended and Restated Master Repurchase Agreement, dated as of April 23, 2015, by and between Barclays Bank PLC (“Purchaser” and “Agent”), Sutton Funding LLC (“Purchaser”), Green Tree Servicing LLC, and Ditech Mortgage Corp. (each a “Seller”)

Ladies/Gentlemen: 
Reference is made to the above-referenced Master Repurchase Agreement (the “Repurchase Agreement”; capitalized terms used but not otherwise defined herein shall have the meaning given them in the Repurchase Agreement).
In accordance with Section 3(c) of the Repurchase Agreement, the undersigned Seller hereby requests, and the Purchaser, agrees to enter into a Transaction with us, in connection with our delivery of Eligible Mortgage Loans and all related Servicing Rights, on ____________________ [insert requested Purchase Date, which must be at least one (1) Business Day following the date of the request] (the “Purchase Date”), in connection with which we shall sell to you such Eligible Mortgage Loans on the Seller Mortgage Loan Schedule attached hereto.  The Principal Balance of the Eligible Mortgage Loans that are not FHA Buyout Loans is $________ and the Purchase Price for such Eligible Mortgage Loans shall be $ ______ [insert applicable Purchase Price].  The Principal Balance of the Eligible Mortgage Loans that are FHA Buyout Loans is $ _______ and the Purchase Price for such FHA Buyout Loans shall be $ ________ [insert applicable Purchase Price].  Barclays shall transfer to the Seller an amount equal to $ _______ [insert amount which represents the Purchase Price of the Eligible Mortgage Loans that are not FHA Buyout Loans net of any related Initial Fee or any other fees then due and payable by Seller to Barclays pursuant to the Agreement].  Sutton shall transfer to the Seller an amount equal to $ _______  [insert amount which represents the Purchase Price of the FHA Buyout Loans net of any related Initial Fee or any other fees then due and payable by Seller to Sutton pursuant to the Agreement].  Seller agrees to repurchase such Purchased Asset on the Repurchase Date(s) at the Repurchase Price(s) listed below.
The Eligible Mortgage Loans have the characteristics on the electronic file or computer tape or disc delivered by Seller to Purchaser with respect thereto in connection with this Transaction Notice.
The Seller hereby certifies, as of such Purchase Date, that:

C - 1

(1)    no Default or Event of Default has occurred and is continuing on the date hereof  (or to the extent existing, shall be cured after giving effect to such Transaction) nor will occur after giving effect to such Transaction as a result of such Transaction;
(2)        each of the representations and warranties made by the Seller in or pursuant to the Program Documents is true and correct in all material respects on and as of such date as if made on and as of the date hereof (or, if any such representation or warranty is expressly stated to have been made as of a specific date, as of such specific date);
(3)        the Seller is in compliance with all governmental licenses and authorizations and is qualified to do business and is in good standing in all required jurisdictions, except as would not be reasonably likely to have a Material Adverse Effect;
(4)        Seller has all requisite Approvals; and
(5)        the Seller has satisfied all applicable conditions precedent in Sections 10(a) and (b) of the Repurchase Agreement and all other requirements of the Program Documents.
The Seller further represents and warrants that (1)(a) with respect to the Eligible Mortgage Loans subject to the Transaction requested herein that are not Wet-Ink Mortgage Loans, the documents constituting the Mortgage Files (as defined in the Custodial and Disbursement Agreement) and (b) with respect to Eligible Mortgage Loans that are Wet-Ink Mortgage Loans, the Transaction Notice and the Seller Mortgage Loan Schedule, in each case as more specifically identified on the Seller Mortgage Loan Schedule delivered to the Purchaser, the Custodian and the Disbursement Agent in connection herewith (the “Receipted Assets”), have been or are hereby submitted to Custodian and Disbursement Agent and such required documents are to be held by the Custodian for the Purchaser, (2) all other documents related to such Receipted Assets (including, but not limited to, mortgages, insurance policies, loan applications and appraisals) have been or will be created and held by Seller for Purchaser, (3) all documents related to such Receipted Assets withdrawn from Custodian shall be held by Seller for Purchaser, and (4) upon Purchaser’s wiring of the Purchase Price pursuant to Section 3(e) of the Repurchase Agreement, Purchaser will have agreed to the terms of the Transaction as set forth herein and purchased the Receipted Assets from the Seller.
Seller hereby represents and warrants that (x) the Receipted Assets have a Principal Balance as of the date hereof of $__________ and (y) the number of Receipted Assets is ______.
Very truly yours,
[_____________]
By:                 
Name: 
Title:

C - 2

EXHIBIT D
FORM OF GOODBYE LETTER
«Primary_Borrower»                    [_______] [__], 20[  ]
«Mailing_address_line_1»
«Mail_city», «Mail_state» «Mail_zip»
RE:    Transfer of Mortgage Loan Servicing
Mortgage Loan «Account_number»

Dear Customer:
[SELLER] is the present servicer of your mortgage loan.  Effective [Date]  the servicing of your mortgage will be transferred to _______.  This transfer does not affect the terms and conditions of your mortgage, other than those directly related to servicing.  Because of the change in servicer, we are required to provide you with this disclosure.

[SELLER] cannot accept any payments received after [Date].  Effective [Date], all payments are to be made to __________.  Any payments received by [SELLER] after [Date]  will be forwarded to _________________.  ___________________ will be contacting you shortly with payment instructions.  Please make future payments to:
________________________
Attn:  ___________
[Address]

If you currently make payments by an automatic checking or savings account deduction, that service will discontinue effective with the transfer date.  After the servicing transfer, you may request this service from _____________.
In [Date], you will receive a statement from [SELLER] reflecting the amount, if any, of the interest and taxes paid on your behalf in 20[  ].  A similar statement will be sent __________________ for the period beginning [Date] through year-end.  Both statements must be added together for income tax purposes.
If you have any questions concerning your account through [Date], you should continue to contact [SELLER] , at <Seller’s Phone Number>, <HOURS OF OPERATION>.  Questions after the transfer date should be directed to ___________________Customer Service Department at 1‐800-_____________,  Monday – Friday, 7 a.m. – 7 p.m. EST.
Sincerely,
Loan Servicing Department
[SELLER]

D - 1

NOTICE OF ASSIGNMENT, SALE OR TRANSFER
OF SERVICING RIGHTS
You are hereby notified that the servicing of your mortgage loan, that is the right to collect payments from you, is being assigned, sold or transferred.
The assignment, sale or transfer of the servicing of the mortgage loan does not affect any term or condition of the mortgage instruments, other than the terms directly related to the servicing of your loan.
Except in limited circumstances, the law requires that your present servicer send you a notice at least 15 days before the effective date, or at closing.  Your new servicer must also send you this notice no later than 15 days after this effective date.
This notification is a requirement of Section 6 of the Real Estate Settlement Procedures Act (RESPA) (12 U.S.C. 2605).  You should also be aware of the following information, which is set out in more detail in Section 6 of RESPA (12 U.S.C. 2605).
During the 60 day period following the effective date of the transfer of the loan servicing, a loan payment received by your old servicer before its due date may not be treated by the new loan servicer as late, and a late fee may not be imposed upon you.
Section 6 of RESPA (12 U.S.C. 2605) gives you certain consumer rights.  If you send a “qualified written request” to your loan servicer concerning the servicing of your loan, your servicer must provide you with a written acknowledgement within 20 Business Days of receipt of your request.  A “qualified written request” is written correspondence, other than notice on a payment coupon or other payment medium supplied by the servicer, which includes your name and account number and your reasons for the request.  If you want to send a “qualified written request” regarding the servicing of your loan, it must be sent to this address:
___________________
[Address]
No later than 60 Business Days after receiving your request, your servicer must make any appropriate corrections to your account, and must provide you with a written clarification regarding any dispute.  During this 60 Business Day period, your servicer may not provide information to a consumer reporting agency concerning any overdue payment related to such period or qualified written request.  However, this does not prevent the servicer from initiating foreclosure if proper grounds exist under the mortgage documents.
A Business Day is any day excluding legal public holidays (State or federal), Saturday and Sunday.
Section 6 of RESPA also provides for damages and costs for individuals or classes of individuals, in circumstances where servicers are shown to have violated the requirements of that Section.  You should seek legal advice if you believe your rights have been violated.
MIRANDA DISCLOSURE – For your protection, please be advised that we are attempting to collect a debt and any information obtained will be used for that purpose.  Calls will be monitored and recorded for quality assurance purposes.  If you do not wish for your call to be recorded please notify the customer service associate when calling.

D - 2

BANKRUPTCY INSTRUCTION – Attention to any customer in Bankruptcy or who has received a bankruptcy discharge of this debt.  Please be advised that this letter constitutes neither a demand for payment of the captioned debt nor a notice of personal liability to any recipient hereof who might have received a discharge of such debt in accordance with applicable bankruptcy laws or who might be subject to the automatic stay of Section 362 of the United States Bankruptcy Code.  However, it may be a notice of possible enforcement of our lien against the collateral property, which has not been discharged in your bankruptcy.

D - 3

EXHIBIT E
FORM OF WAREHOUSE LENDER’S RELEASE
(Date)
Barclays Bank PLC – Mortgage Finance
745 Seventh Avenue, 4th Floor
New York, New York 10019
Attention:  Joseph O’Doherty

Barclays Bank PLC – Legal Department
745 Seventh Avenue, 20th Floor
New York, New York 10019
Attention: General Counsel

Barclays Capital – Operations
1301 Sixth Avenue, 8th Floor
New York, New York 10019
Attention: Hánsel Nieves

Green Tree Servicing LLC
345 St. Peter Street
1100 Landmark Towers
St. Paul, Minnesota 85102
Attention:  Cheryl Collins

Ditech Mortgage Corp.
1100 Virginia Drive
Ft. Washington, PA 19034
Attention: Joseph Ruhlin

Sutton Funding LLC
2711 Centreville Road, Suite 400
Wilmington, Delaware 19808
Attention;  Glenn Pearson

Re:    Certain Assets Identified on Schedule A hereto and owned by Green Tree Servicing LLC or Ditech Mortgage Corp.
Capitalized terms used herein but not defined herein shall have the meanings ascribed to such terms in the Amended and Restated Master Repurchase Agreement, dated as of April 23, 2015 (the “Repurchase Agreement”), between Barclays Bank PLC, Sutton Funding LLC, Green Tree Servicing LLC and Ditech Mortgage Corp.
The undersigned hereby releases all right, interest, lien or claim of any kind with respect to the mortgage loans described in the attached Schedule A, such release to be effective automatically without any further action by any party upon receipt in the account identified below in immediately available funds of 

E - 1

$__________________, representing a loan count of _________, in accordance with the following wire instructions:
[            ]
Very truly yours, 
 
 
[WAREHOUSE LENDER] 
 
By:                       
Name: 
Title:

E - 2

[SCHEDULE A TO EXHIBIT E – LIST OF ASSETS TO BE RELEASED]

E - 3

EXHIBIT F-1

LIST OF DISAPPROVED MEMBERS OF THE MORTGAGE BACKED SECURITIES DIVISION OF THE FIXED INCOME CLEARING CORPORATION
None

F-1 - 1

EXHIBIT F-2

LIST OF DISAPPROVED MEMBERS OF THE MORTGAGE BACKED SECURITIES DIVISION OF THE FIXED INCOME CLEARING CORPORATION
None

F-2 - 1

EXHIBIT G
FORM OF ADDENDUM TO THE LOAN CLOSING/ESCROW INSTRUCTIONS
TO BE PROVIDED BY SELLER BEFORE CLOSING
This Addendum (“Addendum”) modifies the Loan Closing/Escrow Instructions (“Escrow Instructions”) dated _______________, 2013 from [Green Tree Servicing LLC] [Ditech Mortgage Corp.] ( “Seller”) to _________________ (“Escrow Agent”).
Seller is a party to a master repurchase agreement (“Warehouse Agreement”) pursuant to which the purchaser thereunder (the “Purchaser”) has agreed to provide funds (“Escrow Funds”) to Seller to finance certain residential mortgage loans (“Mortgage Loans”) for which you are acting as Escrow Agent. Purchaser’s document custodian and funds disbursement agent, Wells Fargo Bank, N.A. (“Custodian”), will disburse such funds on behalf of Purchaser.
You hereby agree that you shall (a) receive Escrow Funds from Purchaser to be disbursed by the Custodian in connection with the Escrow Instructions, (b) hold such Escrow Funds in trust, without deduction, set-off or counterclaim for the sole and exclusive benefit of Purchaser until such Escrow Funds are fully disbursed on behalf of Purchaser in accordance with the Escrow Instructions, and (c) disburse such Escrow Funds on the Disbursement Date specified in the Escrow Instructions (“Disbursement Date”) only after you have followed the requirements of the Escrow Instructions with respect to the Mortgage Loans. In the event that such Escrow Funds cannot be disbursed on the Disbursement Date in accordance with the Escrow Instructions, you agree to promptly remit such Escrow Funds to the Custodian by re-routing via wire transfer such Escrow Funds in immediately available funds, without deduction, set-off or counterclaim, back to the account specified in Custodian’s incoming wire transfer.
You also agree that you are holding the mortgage note and other Mortgage Loan documents on behalf of the Purchaser.
You agree that all fees, charges and expenses regarding your services to be performed pursuant to the Escrow Instructions are to be paid by Seller or its borrowers, and Purchaser shall have no liability with respect thereto.
You represent, warrant and covenant that you are not an affiliate of or otherwise controlled by Seller, and that you are acting as an independent contractor and not as an agent of Seller.
You understand that Purchaser shall act in reliance upon the provisions set forth in the Escrow Instructions, and that Purchaser is an intended third party beneficiary hereof.
[ESCROW AGENT/SETTLEMENT AGENT SIGNATURE BLOCK]

By:________________________
Name:______________________
Title:_______________________

G - 1

EXHIBIT H
FORM OF SELLER MORTGAGE LOAN SCHEDULE

[TO BE PROVIDED BY BARCLAYS]

H - 1

EXHIBIT I
PURCHASER’S UNDERWRITING GUIDELINES
[SEE ATTACHED]

I - 1

EXHIBIT J

FORM OF CORRESPONDENT SELLER RELEASE
[insert date]
[Green Tree Servicing LLC
345 St. Peter Street
1100 Landmark Towers
St. Paul, Minnesota 85102
Attention:  Cheryl Collins]

[Ditech Mortgage Corp.
1100 Virginia Drive
Ft. Washington, PA 19034
Attention: Joseph Ruhlin]
		
	Re:
	Correspondent Seller Release

Effective immediately upon the receipt (the date and time of such receipt, the “Date and Time of Sale”) by [Name of Correspondent Seller] of $____________, [Name of Correspondent Seller] hereby relinquishes any and all right, title and interest it may have in and to the mortgage loans described in Exhibit A attached hereto (the “Loans”), including any security interest therein, and certifies that all notes, mortgages, assignments and other documents in its possession or in the possession of its custodial agent relating to such Loans have been released to [Green Tree Servicing LLC] [Ditech Mortgage Corp.] or its designee as of the Date and Time of Sale.
[NAME OF CORRESPONDENT SELLER]
By:________________________________
Name: 
Title: 
65037.000069 EMF_US 43588437v7

J - 1

EXHIBIT K
SUTTON’S SPECIAL ELIGIBILITY REQUIREMENTS FOR FHA BUYOUT LOANS
1.    Each FHA Buyout Loan is an FHA-Insured Mortgage Loan.

K - 1Exhibit

Exhibit 10.6.2

EXECUTION COPY

OMNIBUS AMENDMENT AND APPROVAL OF MERGER
Omnibus Amendment and Approval of Merger, dated as of August 28, 2015 (this “Amendment”), among BARCLAYS BANK PLC (“Barclays” or the “Agent”), SUTTON FUNDING LLC (“Sutton” and together with Barclays, the “Purchasers”), BARCLAYS CAPITAL, INC. (“BCI”), GREEN TREE SERVICING LLC (“Green Tree”), DITECH MORTGAGE CORP (“Ditech”), WALTER INVESTMENT MANAGEMENT CORP. (the “Guarantor”), WELLS FARGO BANK, NATIONAL ASSOCIATION, in its capacity as Custodian (the “Custodian”) and in its capacity as Disbursement Agent (the “Disbursement Agent”) and U.S. BANK NATIONAL ASSOCIATION (the “Bank”). 
RECITALS
WHEREAS, the Purchasers, Green Tree and Ditech are parties to (a) that certain Amended and Restated Master Repurchase Agreement, dated as of April 23, 2015 (as amended, restated, supplemented or otherwise modified from time to time, the “Repurchase Agreement”) and (b) that certain Second Amended and Restated Pricing Side Letter to Master Repurchase Agreement, dated as of April 23, 2015 (as amended, restated, supplemented or otherwise modified from time to time, the “MRA Pricing Side Letter”);
WHEREAS, Barclays and Green Tree are parties to (a) that certain Mortgage Loan Participation Purchase and Sale Agreement, dated as of March 11, 2013 (as amended, restated, supplemented or otherwise modified from time to time, the “Purchase Agreement”) and (b) that certain Mortgage Loan Participation Purchase and Sale Agreement Pricing Side Letter, dated as of March 11, 2013 (as amended, restated, supplemented or otherwise modified from time to time, the “Purchase Agreement Pricing Side Letter”);
WHEREAS, the Purchasers, Green Tree, Ditech, the Custodian and the Disbursement Agent are parties to that certain Amended and Restated Custodial and Disbursement Agreement, dated as of April 24, 2013 (as amended, restated, supplemented or otherwise modified from time to time, the “Custodial Agreement”);
WHEREAS, the Guarantor made that certain Guaranty, dated as of March 11, 2013 (as amended, restated, supplemented or otherwise modified from time to time, the “Guaranty”) in favor of the Purchasers;  
WHEREAS, Barclays, Green Tree and the Disbursement Agent are parties to that certain Account Control Agreement, dated as of March 11, 2013 (as amended, restated, supplemented or otherwise modified from time to time, the “Disbursement Account Control Agreement”);
WHEREAS, Barclays, Green Tree, Ditech and Bank are parties to that certain Deposit Account Control Agreement, dated as of April 10, 2013 (as amended, restated, supplemented or otherwise modified from time to time, the “Deposit Account Control Agreement”);
WHEREAS, Barclays, BCI, Green Tree and Ditech are parties to that certain Global Netting and Security Agreement, dated as of March 11, 2013 (as amended, restated, supplemented or otherwise modified from time to time, the “Global Netting Agreement” and together with the 

Repurchase Agreement, the MRA Pricing Side Letter, the Purchase Agreement, the Purchase Agreement Pricing Side Letter, the Custodial Agreement, the Guaranty, the Disbursement Account Control Agreement and the Deposit Account Control Agreement, the “Facility Documents”).  Capitalized terms used but not otherwise defined herein shall have the meanings given to them in Facility Documents, as applicable;
WHEREAS, Green Tree and Ditech provided written notice to the Purchasers, the Custodian, the Disbursement Agent and the Bank that, effective on or about August 31, 2015 (the “Merger Date”), (i) Ditech and DT Holdings LLC will be merged with and into Green Tree; (ii) the surviving entity shall change its legal name to “Ditech Financial LLC”, a Delaware limited liability company; and (iii) Ditech Financial LLC shall continue as the sole surviving entity assuming all rights and liabilities of Ditech and Green Tree (collectively, the “Merger”); and 
WHEREAS, the Purchasers, BCI Green Tree, Ditech, the Guarantor, the Custodian, the Disbursement Agent, and the Bank, as applicable, have agreed, subject to the terms and conditions of this Amendment, to amend the Facility Documents to set forth herein.  
NOW THEREFORE, the Purchasers, BCI Green Tree, Ditech, the Guarantor, the Custodian, the Disbursement Agent, and the Bank hereby agree, in consideration of the mutual promises and mutual obligations set forth herein, that the Facility Documents are hereby amended as follows:
SECTION 1.Incorporation of Recitals. The above Recitals are hereby made a part of this Amendment, and Green Tree and Ditech finally and irrevocably admit, stipulate, acknowledge, and agree that each of the Recitals is true and correct.
SECTION 2.    Approval of Merger.  Subject to the satisfaction of each of the conditions precedent set forth in Section 4 below, the Agent hereby approves the Merger.
SECTION 3.    Amendments.  Effective upon the effectiveness of the Merger and from and after the Merger Date, 
(a)    each of the Facility Documents is hereby amended by deleting any and all references to “Green Tree Servicing LLC” and “Ditech Mortgage Corp.” and replacing such names with “Ditech Financial LLC”;
(b)    each of the Facility Documents is hereby amended by deleting any and all references to the addresses of Green Tree Servicing LLC and Ditech Mortgage Corp. and replacing such addresses with the following:
Ditech Financial LLC
3000 Bayport Drive, Suite 880
Tampa, Florida 33607
Attention: General Counsel
(c)    each of the Facility Documents is hereby amended by deleting any and all references “Sellers” and replacing such references with “Seller”;

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(d)    Section 2(a) of the Repurchase Agreement is hereby amended by deleting the defined term “Seller” in its entirety and replacing it with the following:
“Seller” means Ditech Financial LLC and its successors.
(e)    Section 14(g)(ii) of the Repurchase Agreement is hereby amended by deleting such section in its entirety and replacing it with the following, modified text underlined and deleted text struck out for review purposes only:
Seller shall comply with the following financial covenants:
(A) Seller shall maintain a combined Tangible Net Worth of not less than the greater of (x) $200,000,000, (y) 2.50% of the Aggregate Forward Rate Locks, or (z) 5.00% of Seller’s combined outstanding recourse debt at month end.
(B) At all times, Seller shall have combined unrestricted cash and cash equivalents in an amount of not less than the greater of (x) $25,000,000, (y) 0.50% of the Aggregate Forward Rate Locks, or (z) 1.00% of Seller’s combined outstanding recourse debt.
(C) At no time shall The ratio of Seller’s combined Indebtedness (excluding nonrecourse Indebtedness and excluding all Indebtedness that relates to a Seller’s guarantee obligations of its Parent Company’s debt) to combined Tangible Net Worth exceed shall not be less than 12:1 at month end.
(f)    Section 21 of the Repurchase Agreement is Agreement is hereby amended by deleting the words “; JOINT AND SEVERAL LIABILITY OF SELLERS” from the heading thereof and deleting subsection (d) thereof in its entirety.
(g)    Section 4(c) of the Custodial Agreement is hereby amended by deleting the first (1st) sentence thereof and replacing it with the following sentence, modified text underlined for review purposes only:
The Disbursement Agent shall, in accordance with the Account Control Agreement, establish and maintain a non-interest bearing trust account entitled “Ditech Financial/Barclays Disbursement Account,” account number 39131800 (the “Disbursement Account”), in trust for the benefit of the Seller, subject to the security interest of the Buyer and its designees, under the Repurchase Agreement.
(h)    Section 4(c) of the Custodial Agreement is hereby amended by deleting the second (2nd) sentence thereof and replacing it with the following sentence, deleted text struck out for review purposes only: 

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Notwithstanding any other provision herein and solely for purposes of establishing Buyer’s “control” (as defined in the Uniform Commercial Code) over the Disbursement Account, the Disbursement Agent agrees that it will comply with instructions originated by the Buyer directing disposition of the funds in the Disbursement Account without further consent by the Seller, provided, however, the Disbursement Agent shall have no duty to verify which Seller is selling the related Mortgage Loans to the Buyer.
(i)    Section 4(c) of the Custodial Agreement is hereby amended by deleting the seventh (7th) sentence thereof and replacing it with the following sentence, deleted text struck out for review purposes only: 
In no event shall the Disbursement Agent have any obligation to verify wire instructions, Electronic Transmissions, or Purchase Price or which Seller is selling the related Mortgage Loans to the Buyer, to reconcile such wire amounts received by it from the Buyer or the Seller (or, if applicable, any Warehouse Lender), or to release any funds prior to receipt thereof from the Buyer or the Seller, as applicable.
(j)    Section 1(a) of the Disbursement Account Control Agreement is hereby amended by deleting that section in its entirety and replacing it with the following:
The Debtor hereby directs the Disbursement Agent to establish, and the Disbursement Agent hereby will establish, a non-interest bearing trust account entitled “Ditech Financial/Barclays Disbursement Account”, account number 39131800 (the “Disbursement Account”), identified as held in trust for the benefit of the Debtor, as “customer” (as defined in Section 4-104(a)(5) of the UCC), subject to the security interest of the Secured Party, to be maintained as a segregated account by the Disbursement Agent, as a disbursement agent. 
(k)    The third (3rd) recital of the Deposit Account Control Agreement is hereby amended by deleting such recital in its entirety and replacing it with the following:
WHEREAS, Seller has established that certain segregated, non-interest bearing account, Acct. # 104790830111, entitled “Ditech Financial, for the benefit of Barclays Bank PLC and its assignees,” and referred to in the Repurchase Agreement as the Collection Account and in the Purchase and Sale Agreement as the Custodial Account (herein, the “Deposit Account”) with the Bank, which is subject to the security interest of Purchaser and maintained with Bank pursuant to this Agreement; 
SECTION 4.    Conditions Precedent to Approval of Merger and the Amendments.  
4.1    Conditions to Approval of Merger.  As a condition precedent to the Agent’s approval of the Merger, on and as of the Merger Date and upon the effectiveness of the Merger, each of the following conditions shall be satisfied:

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(a)    no Default or Event of Default has occurred and is continuing or will otherwise result from the Merger;

(b)    the Merger is completed no later than the Merger Date, with the Merger causing, by operation of law, Green Tree (and Ditech Financial LLC following the name change) to assume all of Ditech’s obligations under its existing contracts, including the Facility Documents and the other Program Documents; 

(c)    Green Tree and Ditech have received reasonably equivalent consents or approvals from all of its other counterparties, (i) if such consents or approvals are required pursuant to any repurchase agreement, loan and security agreement or similar credit facility or agreement for borrowed funds entered into by Green Tree and/or Ditech and such counterparty or (ii) if the failure to receive such consents or approvals would not constitute a default, potential event of default or event of default (howsoever defined) under any such agreement or facility; and

(d)    Green Tree and Ditech have duly executed and delivered this Amendment and each of the documents identified in Section 4.2 below to the Purchasers. 
4.2    Additional Conditions Precedent to Approval of Merger and the Amendments.  As a condition precedent to the Agent’s approval of the Merger and the amendments contained herein, Green Tree and Ditech shall:
(a)     prior to the Merger Date, furnish (or cause to be furnished) to the Purchasers a duly authorized and executed copy of the Agreement and Plan of Merger;

(b)    prior to the Merger Date, furnish (or cause to be furnished) to the Purchasers a copy of the file-stamped evidence of the Certificates of Merger filed with the Secretary of State of the State of Delaware and the Secretary of State of the State of California (the “Certificates of Merger”); 

(c)    prior to the Merger Date, furnish to the Purchasers officer’s certificates of duly authorized officers of Green Tree and Ditech, dated and effective immediately prior to the effectiveness of the Merger, certifying the authenticity of and furnishing duly authorized and executed copies of all resolutions authorizing (i) the Merger of Ditech with and into Green Tree; (ii) Green Tree’s assumption of all of Ditech’s obligations under the Facility Documents and other Program Documents (as defined in both the Repurchase Agreement and Purchase Agreement); and (iii) the change of Green Tree’s name to “Ditech Financial LLC”;

(d)    promptly following the Merger Date, furnish to the Purchasers an officer’s certificate of a duly authorized officer of Ditech Financial LLC, dated as 

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of a date promptly following the Merger Date, certifying the authenticity of and furnishing duly authorized and executed copies of (i) the Second Amended and Restated Limited Liability Company Agreement of Ditech Financial LLC, (ii) the Certificates of Merger of Ditech Financial LLC, and (iii) a certificate of good standing of Ditech Financial LLC dated as of or promptly after the Merger Date; 

(e)    prior to the Merger Date, furnish notice to the Custodian, the Disbursement Agent, the Bank, any security intermediary, any paying agent, any Servicer, any Takeout Investor and MERS, as applicable, of the Merger and comply with such party’s reasonable requests and related timelines with regard to any required amendments, assumption and acknowledgement agreements; 
(f)    prior to the Merger Date, furnish notice to the Subservicer, pursuant to that certain Subservicing Agreement, dated as of July 15, 2013, and the Servicer Notice, notifying the Subservicer of the Merger; 
(g)    prior to the Merger Date, furnish to the Purchasers confirmation of delivery of the Certificate of Merger and notification of the change of the surviving entity’s name to MERS and, promptly following the Merger Date, a duly executed copy of any amendments to the Electronic Tracking Agreements or a duly executed copy of a new electronic tracking agreement among the Purchasers, MERSCORP Holdings, Inc., MERS and Ditech Financial LLC; 
(h)    in a reasonable time following the Merger Date, furnish to the Purchasers duly authorized and executed copies of amendments to the Intercreditor Agreement, Joint Account Control Agreement and Joint Securities Account Control Agreement memorializing Ditech Financial LLC’s succession to the rights, duties and obligations of Green Tree thereunder; and 
(i)     promptly following the Merger Date, furnish to the Purchasers an officer’s certificate of an authorized officer of Ditech Financial LLC certifying that Ditech Financial LLC fully satisfies and is in compliance with all representations, warranties, covenants, terms and conditions of the Facility Documents and the other Program Documents in its capacity as successor by merger to Green Tree and Ditech.
The Agent’s approval of the Merger and this Amendment shall not be effective to the extent that any of the foregoing condition precedent of this Section 4 are not satisfied on or prior to the date specified therein.
SECTION 5.    UCC Matters.  Green Tree and Ditech hereby authorized and permit the Purchasers to take any and all steps as they may deem necessary or desirable, in the Purchaser’s sole and absolute discretion, to continue the perfection of the Purchasers’ security interests under the Uniform Commercial Code in the Purchased Assets and such other items of collateral in which Green Tree and Ditech have granted the Purchasers a security interest.  

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SECTION 6.    Effectiveness of Amendment. The parties hereto agree that this Amendment shall not be effective until the later of (i) the execution and delivery of this Amendment by the parties hereto and (ii) the satisfaction of the condition precedent specified in Section 4 above.
SECTION 7.    Effect of Amendment.  Except as expressly amended and modified by this Amendment, all provisions of the Facility Documents shall remain in full force and effect and all such provisions shall apply equally to the terms and conditions set forth herein. After this Amendment becomes effective, all references in the Facility Documents (or in any other document relating to the Mortgage Loans) to “this Agreement,” “hereof,” “herein” or words of similar effect referring to such respective Facility Document shall be deemed to be references to such Facility Document as amended by this Amendment. This Amendment shall not be deemed to expressly or impliedly waive, amend or supplement any provision of the Facility Documents other than as set forth herein. This Amendment and the Facility Documents represent the entire agreement between the parties hereto with respect to the subject matter hereof, and fully supersedes any and all prior agreements (whether written or oral) between the parties concerning the subject matter hereof.
SECTION 8.    Reaffirmation of Guaranty. The Guarantor hereby ratifies and affirms all of the terms, covenants, conditions and obligations of the Guaranty and acknowledges and agrees that the term “Obligations” as used in the Guaranty shall apply to all of the Obligations of Ditech Financial LLC to the Purchasers under the Facility Documents and the other Program Documents, as amended hereby.
SECTION 9.    Further Assurances. At the request of the Purchasers or the Agent, Green Tree, Ditech, Ditech Financial LLC, the Guarantor, the Custodian, the Disbursement Agent and the Bank shall promptly execute or endorse such additional instruments and other writings, and take such other action, as the Purchasers or the Agent may reasonably request to effect or evidence the Merger, the amendments of the Facility Documents and other Program Document, or the protect any liens or security interests in favor of the Purchasers or BCI.
SECTION 10.    Binding Effect. This Amendment shall be binding on and shall inure solely to the benefit of the parties hereto and their respective successors and assigns.
SECTION 11.    Severability. Each provision and agreement herein shall be treated as separate and independent from any other provision or agreement herein and shall be enforceable notwithstanding the unenforceability of any such other provision or agreement. 
SECTION 12.    Counterparts.  This agreement may be executed by each party hereto on a separate counterpart, each of which when so executed and delivered shall be an original, but all of which together shall constitute one agreement. Delivery of an executed counterpart by facsimile or electronic mail shall be equally effective as delivery of an original executed counterpart. Headings in this Agreement are for reference only and shall not form part of this Agreement.
SECTION 13.    GOVERNING LAW.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW 

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YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW).
SECTION 14.    Direction to Custodian and Disbursement Agent.  Each of Green Tree and Ditech hereby consents to and directs the Custodian and Disbursement Agent to execute this Amendment and acknowledges and agrees that the Custodian and Disbursement Agent shall be fully protected in relying upon the foregoing consent and direction and hereby releases the Custodian and Disbursement Agent and its officers, directors, agents, employees and shareholders, as applicable, from any liability for complying with such direction.  For the avoidance of doubt, the Custodian and Disbursement Agent have not reviewed and are not responsible for the terms of the any Facility Documents to which it is not a party, or any references in this Amendment to such Facility Documents to which it is not a party (including but not limited to the Repurchase Agreement).  In the event of any question or dispute as to the terms and conditions of this Amendment, as it relates to Facility Documents to which it is not a party, the Custodian and Disbursement Agent may rely conclusively on any written determination or direction furnished to it by the Agent.  The Custodian and Disbursement Agent execute this Amendment with respect to Section 3 as it relates to the Custodial Agreement and the Disbursement Account Control Agreement only.

[SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, the undersigned have caused this Amendment to be duly executed as of the date first above written.
BARCLAYS BANK PLC, as Barclays
		
	By:
	 /s/ Arvind Mohan                

Name: Arvind Mohan
Title:   Director

SUTTON FUNDING LLC, as Sutton
		
	By:
	 /s/ Ellen Kiernan                

Name: Ellen Kiernan
Title:   Vice President

BARCLAYS CAPITAL Inc., as BCI
		
	By:
	 /s/ Joseph O. Doherty                

Name: Joseph O. Doherty
Title:    Managing Director

GREEN TREE SERVICING LLC, as Green Tree
		
	By:
	 /s/ Cheryl Collins                                               

Name: Cheryl Collins
Title:   SVP & Treasurer

DITECH MORTGAGE CORP, as Ditech
		
	By:
	 /s/ Joseph Ruhlin                                               

Name: Joe Ruhlin
Title:   Treasurer

Signature Page to Omnibus Amendment and Approval of Merger (Barclay/Ditech Financial)

WALTER INVESTMENT MANAGEMENT CORP., as Guarantor

		
	By:
	 /s/ Cheryl Collins                                               

Name: Cheryl Collins
Title:   SVP & Treasurer

WELLS FARGO BANK, NATIONAL ASSOCIATION, not in its individual capacity but solely as Custodian 
		
	By:
	 /s/ Youa Vang                                               

Name: Youa Vang
Title:   Vice President

WELLS FARGO BANK, NATIONAL ASSOCIATION, not in its individual capacity but solely as Disbursement Agent
By: /s/ Kelly J. Rentz    
 Name:  Kelly J. Rentz
Title:     Vice President

U.S. BANK NATIONAL ASSOCIATION, as Bank
By: /s/ Gaylan J. Frazier    
 Name:  Gaylan J. Frazier
Title:     Vice President

Signature Page to Omnibus Amendment (Barclay/Ditech Financial)

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