Document:

pfsi_EX_1015

		
			Exhibit 10.15
		

		
			AMENDMENT NO. 2
		

		
			AMENDED AND RESTATED
		

		
			MORTGAGE BANKING SERVICES AGREEMENT
		

		
			Amendment No. 2 to Amended and Restated Mortgage Banking Services Agreement, dated as of October 31, 2017 (the “Amendment”), by and between PennyMac Loan Services, LLC, a Delaware limited liability company (the “Service Provider”), and PennyMac Corp.,  a Delaware corporation (the “Company”).
		

		
			RECITALS
		

		
			WHEREAS, the Service Provider and the Company are parties to that certain Amended and Restated Mortgage Banking Services Agreement, dated as of September 12, 2016 (the “Existing MBS Agreement” and, as amended by this Amendment, the “MBS Agreement”). Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Existing MBS Agreement.
		

		
			WHEREAS, the Service Provider and the Company have agreed, subject to the terms and conditions of this Amendment, that the Existing MBS Agreement be amended to reflect certain agreed upon revisions to the terms of the Existing MBS Agreement.
		

		
			NOW, THEREFORE, in consideration of the mutual premises and mutual obligations set forth herein, the Service Provider and the Company hereby agree that the Existing MBS Agreement is hereby amended as follows:
		

			
	
			
				 SECTION 1.
			Exhibits. Exhibit A of the Existing MBS Agreement is hereby amended by deleting it in its entirety and replacing it with the form attached hereto as Exhibit A.

			
	
			
				 SECTION 2.
			Conditions Precedent. This Amendment shall become effective as of the date first set forth above (the “Amendment Effective Date”), subject to the satisfaction of the following conditions precedent:

			
	
			
				 2.1
			Delivered Documents. On the Amendment Effective Date, each party shall have received the following documents, each of which shall be satisfactory to such party in form and substance:

			
	
			
				 (a)
			this Amendment, executed and delivered by duly authorized officers of the Service Provider and the Company; and

			
	
			
				 (b)
			such other documents as such party or counsel to such party may reasonably request.

			
	
			
				 SECTION 3.
			Representations and Warranties. Each party represents that it is in compliance in all material respects with all the terms and provisions set forth in the Existing MBS Agreement on its part to be observed or performed.

		
			
		

		
			

		 

 

		

			
	
			
				 SECTION 4.
			Limited Effect. Except as expressly amended and modified by this Amendment, the Existing MBS Agreement shall continue to be, and shall remain, in full force and effect in accordance with its terms. 

			
	
			
				 SECTION 5.
			GOVERNING LAW. THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 

			
	
			
				 SECTION 6.
			Counterparts. This Amendment may be executed in one or more counterparts and by different parties hereto on separate counterparts, each of which, when so executed, shall constitute one and the same agreement.

			
	
			
				 SECTION 7.
			Conflicts. The parties hereto agree that in the event there is any conflict between the terms of this Amendment, and the terms of the Existing MBS Agreement, the provisions of this Amendment shall control.

		
			[SIGNATURE PAGE FOLLOWS]
		

		
			 
		

		
			 
		

		
			

		 

		

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			IN WITNESS WHEREOF, the parties have caused their names to be signed hereto by their respective officers thereunto duly authorized as of the day and year first above written.
		

			
					
						The Service Provider:

					
					
						PENNYMAC LOAN SERVICES, LLC

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Douglas Jones

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Douglas Jones

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						President

				

		
			 
		

			
					
						The Company:

					
					
						PENNYMAC CORP.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Andrew S. Chang

				
	
					
						 

					
					
						 

					
					
						Name:

					
					
						Andrew S. Chang

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						Senior Managing Director and

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Chief Financial Officer

				

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			Signature Page to Amendment No. 2

		

		

			Amended and Restated Mortgage Banking Services Agreement 

		

 

		

		
			EXHIBIT A
		

		
			(Compensation)
		

		
			Fulfillment Fees
		

		
			The aggregate Fulfillment Fees for Mortgage Loans purchased in any month from an approved Correspondent (other than the Service Provider) shall equal (a) in the case of Fannie Mae Mortgage Loans and Freddie Mac Mortgage Loans, no greater than the product of (i) 0.35% and (ii) the aggregate unpaid principal balance of all such Fannie Mae Mortgage Loans and Freddie Mac Mortgage Loans funded in such month, and (b) in the case of all other Mortgage Loans, no greater than the product of (i) 0.85% and (ii) the aggregate unpaid principal balance of all such Mortgage Loans funded in such month; provided, however, that no Fulfillment Fee shall be due or payable to the Service Provider with respect to any Ginnie Mae Mortgage Loan. The Fulfillment Fee with respect to each Mortgage Loan shall be due and payable by the Company no later than the end of the calendar month following the calendar month in which such Mortgage Loan was funded.
		

		
			Early Purchase Program Fees
		

		
			With respect to each Early Purchase Program, the Service Provider shall be entitled to fees that accrue (a) at a rate equal to $1,500 per annum, and (b) in the amount of $35 with respect to each Mortgage Loan purchased by the Company thereunder. The fee described in clause (a) shall accrue and be payable monthly not later than the last Business Day of each month from and after the execution of the Early Purchase Program documentation. The fee described in clause (b) shall accrue and be payable monthly not later than the fifth (5th) Business Day following the month during which the related Mortgage Loan first becomes subject to a transaction thereunder.
		

		 

		

			A-1pfsi_EX_107

		
			Exhibit 10.7
		

		
			EXECUTION COPY
		

		
			AMENDMENT NUMBER TEN
		

		
			to the
		

		
			MASTER REPURCHASE AGREEMENT
		

		
			Dated as of July 2, 2013,
		

		
			among
		

		
			PENNYMAC LOAN SERVICES, LLC,
		

		
			MORGAN STANLEY BANK. N.A.
		

		
			and
		

		
			MORGAN STANLEY MORTGAGE CAPITAL HOLDINGS LLC
		

		
			This AMENDMENT NUMBER TEN (this “Amendment Number Ten”) is made this 25th day of August, 2017, among PENNYMAC LOAN SERVICES, LLC a Delaware limited liability company, as seller (“Seller”), MORGAN STANLEY BANK, N.A., a national banking association, as buyer (“Buyer”) and MORGAN STANLEY MORTGAGE CAPITAL HOLDINGS LLC, a New York limited liability company, as agent for Buyer (“Agent”), to the Master Repurchase Agreement, dated as of July 2, 2013, among Seller, Buyer and Agent, as such agreement may be amended from time to time (the “Agreement”).  Capitalized terms used but not otherwise defined herein shall have the meanings assigned to such terms in the Agreement.
		

		
			RECITALS
		

		
			WHEREAS, Seller, Buyer and Agent have agreed to amend the Agreement as more specifically set forth herein; and
		

		
			WHEREAS, as of the date hereof, Seller represents to Buyer and Agent that Seller is in full compliance with all of the terms and conditions of the Agreement and each other Repurchase Document and no Default or Event of Default has occurred and is continuing under the Agreement or any other Repurchase Document.
		

		
			NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and for the mutual covenants herein contained, the parties hereto hereby agree as follows:
		

		
			SECTION 1.     Amendment.  Effective as of August 25, 2017 (the “Amendment Effective Date”),
		

		
			(a)        the defined term “Committed Amount” in Section 1.01 of the Agreement is hereby amended to read in its entirety as follows:
		

		
			“Committed Amount” shall mean $175,000,000.
		

		
			(b)        the defined term “Termination Date” in Section 1.01 of the Agreement is hereby amended to read in its entirety as follows:
		

		
			“Termination Date” shall mean August 24, 2018 or such earlier date on which this Repurchase Agreement shall terminate in accordance with the provisions hereof or by operation of law.
		

		
			(c)        Section 1.01 of the Agreement is hereby further amended by adding the definitions of “Anti-Terrorism Laws,” “Covered Entity,” “Executive Order,” “Non-Exempt Person,” “OFAC,” “Prohibited Jurisdiction,” “Prohibited Person,” “Reportable Compliance Event,” “Sanctioned Country,” “Sanctioned Person” and “U.S. Person” in the appropriate alphabetical order as follows:
		

		
			 
		

		
			 
		

		
			

		 

 

		

		
			“Anti-Terrorism Laws” shall mean any Requirements of Law relating to terrorism, trade sanctions programs and embargoes, import/export licensing, money laundering or bribery, and any regulation, order, or directive promulgated, issued or enforced pursuant to such Requirements of Law, all as amended, supplemented or replaced from time to time.
		

		
			  “Covered Entity” shall mean (a) the Seller and its respective Subsidiaries, all owners of the foregoing and all brokers or other agents of the Seller acting in any capacity in connection with the Servicing Agreement and (b) each Person that, directly or indirectly, is in control of a Person described in clause (a) above.  For purposes of this definition, control of a Person shall mean the direct or indirect (x) ownership of, or power to vote, 25% or more of the issued and outstanding equity interests having ordinary voting power for the election of directors of such Person or other Persons performing similar functions for such Person, or (y) power to direct or cause the direction of the management and policies of such Person whether by ownership of equity interests, contract or otherwise.
		

		
			  “Executive Order” shall mean Executive Order 13224 -- Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism.
		

		
			  “Non-Exempt Person” shall mean any Person other than a Person who is either (a) a U.S. Person or (b) has provided for the relevant year such duly-executed form(s) or statement(s) which may, from time to time, be prescribed by law and which, pursuant to applicable provisions of (i) any income tax treaty between the United States and the country of residence of such Person, (ii) the Code, or (iii) any applicable rules or regulations in effect under clauses (a) or (b) above, permit the Servicer to make such payments free of any obligation or liability for withholding.
		

		
			  “OFAC” shall mean the Office of Foreign Assets Control of the United States Department of the Treasury.
		

		
			  “Prohibited Jurisdiction” shall mean any country or jurisdiction, from time to time, that is the subject of a prohibition order (or any similar order or directive), sanctions or restrictions promulgated or administered by any Governmental Authority of the United States.
		

		
			  “Prohibited Person” shall mean any Person:
		

		
			(i)         listed in the Annex to the Executive Order, or otherwise subject to the provisions of, the Executive Order;
		

		
			(ii)        that is owned or controlled by, or acting for or on behalf of, any person      or entity that is listed in the Annex to, or is otherwise subject to the provisions of, the Executive Order;
		

		
			(iii)       with whom the Buyer is prohibited from dealing or otherwise engaging in any transaction by any terrorism or money laundering law, including the Executive Order;
		

		
			(iv)       that commits, threatens or conspires to commit or supports “terrorism” as defined in the Executive Order;
		

		
			
		

		
			

		 

		

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			(v)        that is named as a “specially designated national and blocked person” on the most current list published by the OFAC at its official website, http://www.treas.gov.ofac/t11sdn.pdf or at any replacement website or other replacement official publication of such list; or
		

		
			(vi)       that is an Affiliate of a Person listed above.
		

		
			“Reportable Compliance Event” shall mean that any Covered Entity becomes a Sanctioned Person, or is charged by indictment, criminal complaint or similar charging instrument, arraigned, or custodially detained in connection with any Anti-Terrorism Law or any predicate crime to any Anti-Terrorism Law, or has knowledge of facts or circumstances to the effect that it is reasonably likely that any aspect of its operations is in actual or probable violation of any Anti-Terrorism Law.
		

		
			“Sanctioned Country” shall mean a country subject to a sanctions program maintained under any Anti-Terrorism Laws.
		

		
			“Sanctioned Person” shall mean any individual person, group, regime, entity or thing listed or otherwise recognized as a specially designated, prohibited, sanctioned or debarred person, group, regime, entity or thing, or subject to any limitations or prohibitions (including but not limited to the blocking of property or rejection of transactions), under any Anti-Terrorism Laws.
		

		
			“U.S. Person” shall mean (1) a citizen or resident of the United States, (2) a corporation or partnership organized in or under the laws of the United States or any state or the District of Columbia (other than a partnership that is not treated as a United States person under any applicable Treasury regulations), (3) an estate the income of which is includible in gross income for United States tax purposes, regardless of its source, or (4) a trust if a court within the United States is able to exercise primary supervision over the administration of the trust and one or more United States persons have authority to control all substantial decisions of the trust.  Notwithstanding the preceding sentence, to the extent provided in regulations, certain trusts in existence on August 20, 1996, and treated as United States persons prior to such date that elect to continue to be so treated also will be considered United States persons.
		

		
			(d)        Section 6.10 of the Agreement is hereby amended to read in its entirety as follows:
		

		
			6.10      Investment Company Act.  Neither the Seller, the Servicer nor any of their Subsidiaries is an “investment company,” or a company “controlled” by an “investment company,” within the meaning of the Investment Company Act of 1940, as amended.  Each of Seller and Servicer (i) has been structured so as not to constitute, and is not, a “covered fund” for purposes of Section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Volcker Rule”), and (ii) is relying upon an exception or exemption from the registration requirements of the Investment Company Act other than those set forth in Sections 3(c)(1) and 3(c)(7) of the Investment Company Act
		

		
			(e)        Section 6.12 of the Agreement is hereby amended to read in its entirety as follows:
		

		
			6.12      Chief Executive Office/Jurisdiction of Organization.  On the Effective Date, the Seller’s chief executive office and operational facilities were located at 6101 Condor Drive, Moorpark, California 93021. As of August 25, 2017 the Seller’s chief executive office and operational facilities are located at 3043 Townsgate Road, Westlake Village, California 91361. On the Effective Date, the Seller’s jurisdiction of organization is the state of Delaware.
		

		
			
		

		
			

		 

		

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			(f)        Section 6 of the Agreement is hereby amended by adding new Sections 6.35, 6.36, 6.37 and 6.38 to the end thereof as follows:
		

		
			 
		

		
			6.35      USA Patriot Act; OFAC.  Neither the Seller nor any of its Affiliates is a Prohibited Person and the Seller is in full compliance with all applicable orders, rules, regulations and recommendations of OFAC.  Neither the Seller nor any of its members, directors, executive officers, parents or Subsidiaries: (1) is subject to U.S. or multilateral economic or trade sanctions currently in force; (2) is owned or controlled by, or acts on behalf of, any governments, corporations, entities or individuals that are subject to U.S. or multilateral economic or trade sanctions currently in force; (3) is a Prohibited Person or is otherwise named, identified or described on any blocked persons list, designated nationals list, denied persons list, entity list, debarred party list, unverified list, sanctions list or other list of individuals or entities with whom U.S. Persons may not conduct business, including but not limited to lists published or maintained by OFAC, lists published or maintained by the U.S. Department of Commerce, and lists published or maintained by the U.S. Department of State.  The Seller has established an anti-money laundering compliance program as required by all applicable anti-money laundering laws and regulations, including, without limitation, the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Public Law 107-56) (the “USA Patriot Act”) (collectively, the “Anti-Money Laundering Laws”).
		

		
			6.36      Anti-Money Laundering.  The Seller has complied with all applicable Anti-Money Laundering Laws, has conducted the requisite due diligence in connection with the acquisition of each Mortgage Loan for purposes of the Anti-Money Laundering Laws, and will maintain sufficient information to identify the applicable Mortgagor for purposes of the Anti-Money Laundering Laws; no Mortgage Loan is subject to nullification pursuant to the Executive Order 13224 or the regulations promulgated by OFAC (the “OFAC Regulations”) or in violation of the Executive Order or the OFAC Regulations, and no Mortgagor is subject to the provisions of the Executive Order or the OFAC Regulations or listed as a “blocked person” for purposes of the OFAC Regulations.
		

		
			6.37      Non-Exempt Person. The Seller is not a Non-Exempt Person.
		

		
			6.38      Anti-Money Laundering/International Trade Law Compliance. At all times until this Repurchase Agreement has been terminated and all Repurchase Obligations hereunder have been paid in full: (A) no Covered Entity (1) is a Sanctioned Person; (2) has any of its assets in a Sanctioned Country or in the possession, custody or control of a Sanctioned Person in violation of any Anti-Terrorism Law; (3) does business in or with, or derives any of its income from investments in or transactions with, any Sanctioned Country or Sanctioned Person in violation of any Anti-Terrorism Law; or (4) engages in any dealings or transactions prohibited by any Anti-Terrorism Law; (B) the proceeds of any Repurchase Document will not be used to fund any operations in, finance any investments or activities in, or make any payments to, a Sanctioned Country or Sanctioned Person in violation of any law; (C) the funds used to pay the Servicer or the Buyer are not derived from any unlawful activity; and (D) each Covered Entity is in compliance with, and no Covered Entity engages in any dealings or transactions prohibited by, any Requirements of Law, including but not limited to any Anti-Terrorism Laws. The Seller covenants and agrees that it shall immediately notify the Buyer in writing upon the occurrence of a Reportable Compliance Event.
		

		
			(g)        Section 7.14 of the Agreement is hereby amended to read in its entirety as follows:
		

		
			
		

		
			

		 

		

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			7.14      Maintenance of Tangible Net Worth.  The Seller shall not permit its Tangible Net Worth to be less than  $500,000,000.
		

		
			(h)        Section 7.16 of the Agreement is hereby amended to read in its entirety as follows:
		

		
			7.16      Maintenance of Profitability.  The Seller shall not permit Net Income (before income taxes), generated over a consecutive three month period, measured on the last day of each fiscal quarter, to be less than $1.00 for two (2) or more consecutive fiscal quarters.
		

		
			(i)         Section 7.18 of the Agreement is hereby amended to read in its entirety as follows:
		

		
			7.18      Maintenance of Liquidity.  The Seller shall ensure that, as of the end of each calendar month, it has unencumbered Cash Equivalents in an amount of not less than $40,000,000.
		

		
			(j)         Section 7 of the Agreement is hereby amended by deleting Section 7.22 in its entirety and replacing it with the following:
		

		
			7.22      OFAC.  At all times throughout the term of this Repurchase Agreement, the Seller (a) shall be in full compliance with all applicable orders, rules, regulations and recommendations of OFAC and (b) shall not permit any Mortgage Loans to be maintained, insured, traded, or used (directly or indirectly) in violation of any United States statutes, rules or regulations, in a Prohibited Jurisdiction or by a Prohibited Person.
		

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

		
			SECTION 3.      Effectiveness.  This Amendment Number Ten shall become effective as of the date that the Agent shall have received (a) counterparts hereof duly executed by each of the parties hereto and(b) counterparts of that certain Amendment Number Ten to the Pricing Side Letter, dated as of the date hereof, duly executed by each of the parties thereto.
		

		
			SECTION 4.      Fees and Expenses.  Seller agrees to pay to Buyer and Agent all reasonable out of pocket costs and expenses incurred by Buyer or Agent in connection with this Amendment Number Ten (including all reasonable fees and out of pocket costs and expenses of Buyer’s or Agent’s legal counsel) in accordance with Section 13.04 and 13.06 of the Agreement.
		

		
			SECTION 5.      Representations.  Seller hereby represents to Buyer and Agent that as of the date hereof and taking into account the terms of this Amendment Number Ten, Seller is in full compliance with all of the terms and conditions of the Agreement and each other Repurchase Document and no Default or Event of Default has occurred and is continuing under the Agreement or any other Repurchase Document.
		

		
			SECTION 6.      Binding Effect; Governing Law.  THIS AMENDMENT NUMBER TEN SHALL BE BINDING AND INURE TO THE BENEFIT OF THE PARTIES HERETO AND THEIR RESPECTIVE SUCCESSORS AND PERMITTED ASSIGNS.  THIS AMENDMENT NUMBER TEN 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 OF THE NEW YORK GENERAL OBLIGATIONS LAW WHICH SHALL GOVERN).
		

		
			
		

		
			

		 

		

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			SECTION 7.      Counterparts.  This Amendment Number Ten may be executed by each of the parties hereto on any number of separate counterparts, each of which shall be an original and all of which taken together shall constitute one and the same instrument.
		

		
			SECTION 8.      Limited Effect.  Except as amended hereby, the Agreement shall continue in full force and effect in accordance with its terms.  Reference to this Amendment Number Ten need not be made in the Agreement or any other instrument or document executed in connection therewith, or in any certificate, letter or communication issued or made pursuant to, or with respect to, the Agreement, any reference in any of such items to the Agreement being sufficient to refer to the Agreement as amended hereby.
		

		
			[Signature Page Follows]
		

		
			 
		

		
			 
		

		
			

		 

		

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			IN WITNESS WHEREOF, Seller, Buyer and Agent have caused this Amendment Number Ten to be executed and delivered by their duly authorized officers as of the Amendment Effective Date.
		

			
					
						 

					
					
						PENNYMAC LOAN SERVICES, LLC

				
	
					
						 

					
					
						(Seller)

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Andrew S. Chang

				
	
					
						 

					
					
						Name:

					
					
						Andrew S. Chang

				
	
					
						 

					
					
						Title:

					
					
						Senior Managing Director

				
	
					
						 

					
					
						 

					
					
						and Chief Financial Officer

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						MORGAN STANLEY BANK, N.A.

				
	
					
						 

					
					
						(Buyer)

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Sajid Zaidi

				
	
					
						 

					
					
						Name:

					
					
						Sajid Zaidi

				
	
					
						 

					
					
						Title:

					
					
						Authorized Signatory

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						MORGAN STANLEY MORTGAGE CAPITAL HOLDINGS LLC

				
	
					
						 

					
					
						(Agent)

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Christopher Schmidt

				
	
					
						 

					
					
						Name:

					
					
						Christopher Schmidt

				
	
					
						 

					
					
						Title: 

					
					
						Vice President

				

		
			 
		

		 

		

			Amendment Number Ten to Master Repurchase Agreement

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