Document:

exv10w1

Exhibit 10.1

CONFIDENTIAL TREATMENT REQUESTED

	 	 	 

	Title (Version Date):

	 	Further Amended and Restated Servicer Advance
Early Reimbursement Mechanics Addendum
(8/16/2010)
	 
	 	 
	 

	 	This variance supersedes the previous three
versions of the Servicer Advance Early
Reimbursement Mechanics Addendum.
	 
	 	 
	Description:

	 	Fannie Mae will provide Servicer with early
reimbursement of certain underlying servicing
advances, and Fannie Mae will recoup such early
reimbursement amounts from future recoveries.
	 
	 	 
	 

	 	Following a transfer to the Servicer of the
servicing on underlying loans, Fannie Mae will
provide Servicer with early reimbursement for
100% of outstanding Schedule 1 Legacy Advances,
provided Fannie Mae is able to identify and
segregate such advances in a manner it deems satisfactory in its sole and absolute discretion, exercised
in good faith.

	 	 	 
	Indicative Terms	 	See Summary of Indicative terms attached as Exhibit 1.
	 
	 	 
	Termination

	 	 ̈   After the Early Reimbursement
Period (See Exhibit 1 for definition) is completed
and the Aggregate Early Reimbursement Amount (See
Exhibit 1 for definition) is zero.

	 	 	 	 	 
	Nationstar Mortgage LLC 

 	 	 
	By:  	/s/ Gregory A. Oniu
 	 	 
	 	Title:  SVP               	 	 
	 	Date:  8/16/10 	 	 
	 
	Fannie Mae  

 	 	 
	By:  	/s/ Leslie Peeler
 	 	 
	 	Title:  VP, Special Assets   	 	 
	 	Date:  8/17/10 	 	 
	 

1

 

Exhibit 1 (as further amended and restated as of 8/13/2010)

This Exhibit shall supersede all previous versions.

	 	 	 
	EARLY
REIMBURSEMENT
PERIOD:

	 	The period, during which Fannie Mae will make payments of
Periodic Early Reimbursement Amounts (as defined below) in
respect of Eligible Advances (as defined below), which will
commence on the Closing Date and end on the earlier of:

	 	1.	 	Disbursement of the Periodic Early Reimbursement Amount in
December, 2010, subject to extension (or mutually agreed upon
termination); or
	 
	 	2.	 	a Stop Event that is not waived by Fannie Mae.

	 	 	 

	 

	 	During the Early Reimbursement Period, Fannie Mae will make
payments of Periodic Early Reimbursement Amounts at the direction
of the Servicer. Following the termination of the Early
Reimbursement Period, Fannie Mae will no longer be required to
make payments of Periodic Early Reimbursement Amounts.
	 
	 	 
	ELIGIBLE ADVANCES
FOR EARLY
REIMBURSEMENT:

	 	Unless otherwise noted (none so noted) by specifying
participating Servicer branch IDs, “Eligible Advance” shall
include outstanding P&I Delinquency Advances (“P&I Delinquency
Advance”), T&I Servicing Advances (“T&I Servicing Advance”), and
other advances deemed to be Corporate Advances (“Corporate
Advance”) (each, a “Servicing Advance”) made or required to be
made by the Servicer pursuant to the Fannie Mae Servicing Guide
(the “Guide”). T&I Servicing Advances on current mortgage loans
serviced by the Servicer (“Mortgage Loans”) shall also be
considered to be Eligible Advances.
	 
	 	 
	 

	 	“Other Advances” shall mean T&I Servicing Advances and Corporate
Advances. Other Advances must have been actually incurred by the
Servicer.
	 
	 	 
	 

	 	Servicing Advances may relate to loans held in MBS trusts (“MBS
Servicing Advances”) or in Fannie Mae’s portfolio (“MRS Servicing
Advances’). Funds relating to MBS Servicing Advances may not be
commingled with those relating to MRS Servicing Advances.
	 
	 	 
	 

	 	In addition to the Servicing Advances made by the Servicer, Other
Advances and P&I Delinquency Advances shall also include (unless
stated otherwise) any outstanding Servicing Advances made by
Flagstar Capital Markets Corporation (the “Flagstar Legacy
Advances”) or by any other servicer as listed on Schedule 1 (the
“Schedule 1 Legacy Advances”) in connection with a servicing
transfer to the Servicer. Each such advance shall be deemed a
“Legacy Servicing Advance”. The parties by written agreement may
add Legacy Advances to Schedule 1 from time to time, which Legacy
Advances shall be deemed incorporated into this agreement.
	 
	 	 
	 

	 	For purposes of this Exhibit, a Servicing Advance will remain
outstanding until finally reimbursed, rejected or ineligible
under the Guide, notwithstanding any interim financing assistance
provided by Fannie Mae.
	 
	 	 
	PERIODIC EARLY
REIMBURSEMENT
AMOUNT:

	 	For any reporting cycle, an amount equal to the Funding Value of
Eligible Advances, subject to the Early Reimbursement Amount
Limit.
	 
	 	 
	 

	 	If the Early Reimbursement Amount Limit is reached in a
particular reporting cycle, Fannie Mae shall first fund P&I
Delinquency Advances.

2

 

	 	 	 

	 

	 	Any Early Reimbursement Amounts received by the Servicer pursuant
to this Agreement, if such amounts relate to MBS Servicing
Advances, shall first be used by the Servicer to repay any and
all amounts the Servicer may have previously borrowed from extra
collections (i.e. funds that were not due in the cycle in which
they were collected) held by the Servicer on behalf of an MBS
trust (such term to mean any outstanding Fannie Mae
mortgage-related security that the Servicer is servicing or
sub-servicing underlying Mortgage Loans for).
	 
	 	 
	AGGREGATE EARLY
REIMBURSEMENT
AMOUNT:

	 	As of any date of determination, the excess, if any, of (i) the
total Periodic Early Reimbursement Amounts previously paid at the
direction of the Servicer by Fannie Mae prior to such date over
(ii) the aggregate, cumulative amount of Collections (as defined
below) recouped by, Fannie Mae prior to such date.
	 
	 	 
	FUNDING VALUE:

	 	With respect to any Eligible Advance as of any date of
determination, the product of (x) the outstanding balance of such
Eligible Advance as of such date and (y) the applicable Early
Reimbursement Rate.
	 
	 	 
	EARLY REIMBURSEMENT
RATE:

	 	[***] of P&I Delinquency Advances
	 
	 	 
	 

	 	Other Advances:
	 

	 	[***] of T&I Servicing Advances
	 

	 	[***] of Corporate Advances
	 
	 	 
	 

	 	T&I Servicing Advances Early Reimbursement Rate and the Corporate
Advances Early Reimbursement Rate:
	 

	 	T&I Servicing Advances Early Reimbursement Rate and the Corporate
Advances Early Reimbursement Rate will be subject to review by
Fannie Mae on a quarterly basis. The first such quarterly review
shall take place in March 2010 and any new value (either higher
or lower than the current Early Reimbursement Rate) shall become
effective for April 2010. In no event shall such Early
Reimbursement Rates be less than [***] or greater than [***].
	 
	 	 
	 

	 	Legacy Servicing Advances shall have an early reimbursement rate
of 100% disbursed as set forth below under Ongoing Reconciliation
Period.
	 
	 	 
	EARLY REIMBURSEMENT
AMOUNT LIMIT:

	 	Fannie Mae’s obligation to make payment of Periodic Early
Reimbursement Amounts will not exceed a maximum Aggregate Early
Reimbursement Amount of $275,000,000 (three hundred seventy five
million)
	 
	 	 
	DEFICIENCY AMOUNT:

	 	A Deficiency Amount shall exist on any date if, and to the extent
that, on such date, the Aggregate Early Reimbursement Amount
exceeds the Funding Value of all Eligible Advances. If a
Deficiency Amount exists, the party that becomes aware of such
event shall immediately notify the other party of the existence
of any Deficiency Amount. Any such Deficiency Amount shall be
cured by the Servicer within three business days from the
Servicer becoming aware of the existence of a Deficiency Amount.
	 
	 	 
	TRUST ACCOUNT:

	 	“Trust Account” shall mean a trust account created by Fannie Mae
in its name and under its control at U. S. Bank or another
financial institution of Fannie Mae’s choosing. A Trust Account
may relate to either MBS Servicing Advances or MRS Servicing
Advances but not both.
	 
	 	 
	 

	 	The Servicer hereby acknowledges and agrees that it has no right,
title, interest or claim in or to any Trust Account or any funds
or other assets therein (whether or not deposited by the
Servicer), or any interest earned or accrued on the foregoing

 

			
	*** 	 	Note:  Confidential treatment has been requested with respect to the information
contained within the [***] marking. Such portions have been omitted from this filing and have been
filed separately with the Securities and Exchange Commission.

3

 

	 	 	 

	 

	 	(notwithstanding anything to the contrary contained in the Guide
or in any other agreement), all of which shall be the exclusive
property of Fannie Mae, as Trustee for the respective MBS trusts
or as Trustee for Single-Family Cash P&I Deposits, whichever are
applicable.
	 
	 	 
	INITIAL
RECONCILIATION
PERIOD:

	 	In the first month of the Early Reimbursement Period, the
Servicer will provide Fannie Mae the necessary information
describing all outstanding Eligible Advances. Fannie Mae will
conduct Due Diligence (“Due Diligence”) to determine the initial
Early Reimbursement Amount and will distribute such Early
Reimbursement Amount on September 10, 2009. As of the date of
this Variance (“Variance”), such period has already occurred.
	 
	 	 
	ONGOING
RECONCILIATION
PERIOD:

	 	Beginning in the month of the Closing Date, the Servicer shall
deliver reports aggregating and describing all P&I Delinquency
Advances and Other Advances to Fannie Mae no later than the close
of business on the day that is 5 business days prior to the Draft
Date (as defined below) for such month (such date the “Report
Date”). The report (the “Report”) will include information as
detailed below under “REPORTS”.
	 
	 	 
	 

	 	No later than the second business day following the Report Date,
Fannie Mae will notify the Servicer of any discrepancies listed
below:

	 	(i)	 	between the sum of (i) Required P&I (as defined below) and
(ii) any amounts deposited by Fannie Mae as Periodic Early
Reimbursement Amounts over or under the total amount required by
the Servicer to be remitted on the Draft Date; and
	 
	 	(ii)	 	between the (i) the sum of all reported loan-level P&I
Delinquency Advances and (ii) the aggregate P&I Delinquency
Advances requested by the Servicer.

	 	 	 

	 

	 	No later than the second business day following the Report Date,
Fannie Mae will notify the Servicer of any discrepancy regarding
requested Other Advances.
	 
	 	 
	 

	 	On the business day each month prior to the first MBS P&I Draft
Date (the “Draft Date”) published in Fannie Mae’s Master
Servicing Reporting and Remitting Calendar, the following actions
shall occur in parallel for MBS Servicing Advances and MRS
Servicing Advances:

	 	(i)	 	to the extent a Periodic Early Reimbursement Amount is
required to be distributed, Fannie Mae shall deposit (such
deposit shall be contingent on the fact that no discrepancy
regarding the requested P&I Delinquency Advances remains
outstanding, and further provided that no Stop Event has
occurred, as set forth below) into the related Trust Account the
Periodic Early Reimbursement Amount relating to the P&I
Delinquency Advances for the related reporting cycle; and
	 
	 	(ii)	 	by 10:00 AM (Eastern Time) on such date, the Servicer shall
deposit into the related Trust Account all remaining principal
and interest required to be remitted on the Draft Date for all
Fannie Mae MBS Mortgage Loans or portfolio (MRS) Mortgage Loans
serviced by the Servicer, as the case may be, after deducting the
Periodic Early Reimbursement Amount for P&I Delinquency Advances
(such remaining amount being the “Required P&I” for each Trust
Account).

4

 

	 	 	 

	 

	 	On the business day immediately preceding the Draft Date, Fannie
Mae shall wire (to the extent a Periodic Early Reimbursement
Amount is required to be distributed) at the direction of the
Servicer, the Periodic Early Reimbursement Amount for Other
Advances (as reported by the Servicer on the Report and as
reconciled by Fannie Mae subsequent to the Report Date) to the
Servicer (to an account specified by the Servicer). Such wire
shall be contingent on the fact that no discrepancy regarding the
requested Other Advances or P&I Delinquency Advances remains
outstanding, and further provided that no Stop Event has
occurred, as set forth below.
	 
	 	 
	 

	 	On the Draft Date, Fannie Mae shall draft from the respective
Trust Accounts, in lieu of the Servicer’s custodial account or
accounts, the Required P&I and any amounts deposited by Fannie
Mae as Periodic Early Reimbursement Amounts.
	 
	 	 
	 

	 	The Servicer shall deposit into the Collections Account on the
Draft Date any principal and interest reported as “uncollected”
on the Report, and received between the business day immediately
preceding the Report Date and the Draft Date.
	 
	 	 
	 

	 	During and for one month after the Ongoing Reconciliation Period,
Servicer shall also submit a report, no later than the 5th
business day of the month, listing all loans that had been
submitted for early reimbursement of P&I advances in the prior
month and had become current by month’s end.
	 
	 	 
	 

	 	No later than the 7th business day of the following month, Fannie
Mae will notify the Servicer of any material discrepancy between
the P&I Delinquency Advances (as previously reported by the
Servicer) and the amounts reflected in Fannie Mae’s internal
systems of record. Such material discrepancies shall constitute
a material Due Diligence issue and the Servicer and Fannie Mae
will work in good faith to resolve any such material
discrepancies.
	 
	 	 
	 

	 	Legacy Servicing Advances Disbursement Timing:
	 
	 	 
	 

	 	Flagstar Legacy Advances:
	 
	 	 
	 

	 	100% of P&I Delinquency Advances, 70% of T&I Servicing Advances,
and 70% of Corporate Advances in the October 2009 cycle of the
Ongoing Reconciliation Period.
	 
	 	 
	 

	 	30% of T&I Servicing Advances and 30% of Corporate Advances
during the immediately subsequent monthly cycle in the Ongoing
Reconciliation Period, upon the completion of a Due Diligence
period as described below.
	 
	 	 
	 

	 	To the extent, Legacy Servicing Advances have not been disbursed
as contemplated above, such Legacy Servicing Advances shall be
disbursed during subsequent reporting cycles occurring in the
Ongoing Reconciliation Period.
	 
	 	 
	 

	 	Schedule 1 Legacy Advances:
	 
	 	 
	 

	 	100% following the addition of a Schedule 1 Legacy Advance, which
may include any or all of P&I Delinquency Advances, T&I Servicing
Advances and Corporate Servicing Advances, as specified in
Schedule 1., provided:

	 	(i)	 	Data available to Fannie Mae and the Servicer allow Fannie
Mae to identify and segregate the DMI Legacy Advances in a manner
it deems satisfactory in its sole and absolute discretion,
exercised in good faith; and

5

 

	 	(ii)	 	The Legacy Advance consist entirely of Servicing Advances of
the type or types specified in the Fannie Mae EAF Data
Dictionary..

	 	 	 

	REPORTS:

	 	The Servicer shall provide separate Reports during the Ongoing
Reconciliation Period for MBS and portfolio (MRS) Mortgage Loans.
The Report will aggregate data at the Servicer level for all
branches and include the following (such information to be
provided as of the business day immediately preceding the Report
Date):

	 	•	 	Loan-level and total amount requested for scheduled monthly P&I
as yet uncollected, including amounts relating to scheduled P&I
previously remitted through a Rapid Payment Method (as such term
is defined in the Guide);
	 
	 	•	 	Amount to be deposited by the Servicer as Required P&I; and
	 
	 	•	 	Loan-level and total funding requested for all T&I Servicing
Advances and Corporate Advances since the prior Report.

	 	 	 

	 

	 	As soon as feasible, the Servicer will endeavor to provide the
Report using the data formats described in the existing version
of the Fannie Mae EAF Data Dictionary provided to the Servicer by
Fannie Mae. After November 30, 2010, no Periodic Early
Reimbursement Amount will be available unless and until the
Servicer has submitted an acceptable Report using such formats.
In the future, Fannie Mae may revise the EAF Dictionary from time
to time in a commercially reasonable manner.
	 
	 	 
	 

	 	For the duration of this Variance, the Servicer shall also
provide a daily report of all transactions for which a Collection
occurs and the related deposits to the Collection Account.
	 
	 	 
	COLLECTIONS ACCOUNT
OVER COLLECTION:

	 	All collections and reimbursements related to outstanding
Eligible Advances received on the related mortgage loans by the
Servicer from Fannie Mae, from mortgagors, or as liquidation
proceeds or other recoveries (in the aggregate, the
“Collections”) must be deposited by the Servicer within 48 hours
of receipt into a Collections Account established by Fannie Mae
and under Fannie Mae’s control, subject to the following:

	 	(i)	 	During the Early Reimbursement Period, the
Servicer may retain any Collections in excess of the Periodic
Early Reimbursement Amount outstanding on the related loan; and
	 
	 	(ii)	 	During the (i) period between December 31, 2010
and June 30, 2012 or (ii) the completion of the eighteen month
period after the occurrence of a Stop Event (as applicable), the
Servicer may retain any Collections in excess of the Aggregate
Early Reimbursement Amount.

	 	 	 

	 

	 	However, following the occurrence of, and during the continuance
of, a Stop Event that has not been waived by Fannie Mae, clauses
(i) and (ii) above shall not apply and further, all
reimbursements of Eligible Advances due from Fannie Mae shall be
deposited directly into the Collections Account by Fannie Mae.
	 
	 	 
	 

	 	If the amount in the Collections Account exceeds the Aggregate
Early Reimbursement Amount (“Over Collection”), then
simultaneously with the payment of the Periodic Early
Reimbursement Amount, the Over Collection amount shall be applied
to reduce the aggregate Early Reimbursement Amount

6

 

	 	 	 

	 

	 	outstanding.
Any amount by which the Over Collection exceeds the Aggregate
Early Reimbursement Amount will be returned to the Servicer.
	 
	 	 
	MONTHLY SETTLEMENTS
/ SETTLEMENT DATES:

	 	On the 3rd business day of each calendar month, Fannie
Mae will draft, from an account designated by the Servicer, the
Early Reimbursement Compensation and any Deficiency Amount.
Fannie Mae shall, by e-mail, inform the Servicer of the amount of
such draft. Such date, each month, shall be deemed a “Settlement
Date”.
	 
	 	 
	 

	 	In the event that insufficient amounts are available to pay the
Early Reimbursement Compensation, then Fannie Mae shall withdraw
an amount equal to such outstanding Early Reimbursement
Compensation directly from the Collections Account prior to the
calculation of the Periodic Early Reimbursement Amount for that
month. Such withdrawal will not void the occurrence of a Stop
Event.
	 
	 	 
	 

	 	Following the occurrence of, and during the continuance of, a
Stop Event that has not been waived by Fannie Mae, Settlement
Dates shall occur with such frequency (i.e., weekly or daily) as
Fannie Mae shall direct.
	 
	 	 
	EARLY REIMBURSEMENT
COMPENSATION:

	 	In consideration for receiving P&I Delinquency Advances and early
reimbursement of Other Advances, the Servicer will pay Fannie Mae
a monthly compensation amount equal to, with respect to the
Aggregate Early Reimbursement Amount and any Settlement Date, the
aggregate amount obtained by daily application of the
Compensation Rate to the amount of the Aggregate Early
Reimbursement Amount on a 360 day per year basis for the actual
number of days elapsed since the prior Settlement Date. The
Servicer will pay the Early Reimbursement Compensation to Fannie
Mae on each Settlement Date from its corporate funds.
	 
	 	 
	COMPENSATION RATE:

	 	[***] basis points over One-Month LIBOR. LIBOR will be set as of
the last business day of the second month preceding the month in
which the Settlement Date occurs. (For example, if the
Settlement Date is August 3rd, LIBOR will be as of the
last business day in June.)
	 
	 	 
	AMENDMENT FEE:

	 	0.500% of the Early Reimbursement Amount Limit, payable on the
Closing Date and on the next business day after the Early
Reimbursement Amount Limit is increased. The Amendment Fee shall
be pro-rated on a monthly basis for any contract period less than
12 months. In the event this agreement is extended before its
scheduled expiration, any unused portion of the Amendment Fee
will be credited against any future Amendment Fee due from the
Servicer.
	 
	 	 
	CLOSING DATE:

	 	August 16, 2010
	 
	 	 
	RECOUPMENT:

	 	Periodic Early Reimbursement Amounts shall be recouped by Fannie
Mae primarily through Collections, however the Servicer can pay
any or all outstanding amounts due at any time with corporate
funds, and is obligated to pay, if applicable, the outstanding
Aggregate Early Reimbursement Amount on or prior to the earlier
of (i) June 30, 2012 or (ii) the completion of the eighteen month
period after the occurrence of a Stop Event.
	 
	 	 
	STOP EVENTS:

	 	Unless otherwise waived by Fannie Mae, Stop Events are as follows:

	 	1.	 	Failure of the Servicer to pay any Early Reimbursement
Compensation amount or any Deficiency Amount when due.
	 
	 	2.	 	Servicer ceases to be an approved Fannie Mae Servicer.

 

			
	*** 	 	Note:  Confidential treatment has been requested with respect to the information
contained within the [***] marking. Such portions have been omitted from this filing and have been
filed separately with the Securities and Exchange Commission.

7

 

	 	3.	 	Occurrence of a change of the Servicer’s Organization as set
forth in the Fannie Mae Servicing Guide Part I, Chapter 2,
Section 204.
	 
	 	4.	 	Failure to resolve a material Due Diligence issue within 30
business days of notification, unless the parties mutually agree
to extend such cure period (e.g. Due Diligence issues may
include, but are not limited to, issues with the funds in the
Collections Account or the making of non-permissible servicing
advances). In addition, Fannie Mae has the option to suspend
funding of Periodic Early Reimbursement Amounts while a material
Due Diligence issue remains unresolved, even if no Stop Event has
occurred. Fannie Mae will work in good faith to determine
materiality of Due Diligence issues.
	 
	 	5.	 	Insolvency, Receivership or Bankruptcy of the Servicer, as
established by a court of competent jurisdiction.

	 
	 	6.	 	Failure of Servicer to submit the required reporting (and not
cured within 5 business days).
	 
	 	7.	 	Breaches of representations, warranties, covenants (not cured
after a period of time).
	 
	 	8.	 	Event of Default under the Master Agreement or the Mortgage
Selling and Servicing Contract, as applicable, which has not been
cured as may be allowed under such agreement or contract, if
applicable.
	 
	 	9.	 	Failure by the Servicer to deposit into the Trust Account,
Required P&I on the business day immediately prior to the Draft
Date; provided, however, that such failure shall be subject to a
cure period of one business day; provided, further, however, that
such cure period shall be unavailable if such failure occurs more
than once in any four-month period or more than twice in any
twelve-month period.

	 	 	 

	 

	 	If a Stop Event occurs and is not waived by Fannie Mae, the Early
Reimbursement Period is terminated.
	 
	 	 
	DUE DILIGENCE
REQUIREMENTS:

	 	Fannie Mae has the right to perform Due Diligence activities
related to Eligible Advances and Periodic Early Reimbursement
Amounts prior to the Closing Date and at any such time
thereafter. Within 10 business days of Fannie Mae’s (or its
agent’s) request, the Servicer is required to provide reasonable
accommodations including documentation, system access, the
results of Servicer’s own internal review and assessments, and on
site review. Failure of the Servicer to provide such
accommodations would be considered a material Due Diligence issue
and will be a Stop Event.
	 
	 	 
	 

	 	Unless otherwise waived by Fannie Mae, Fannie Mae has the option
to suspend funding of Early Reimbursement Amounts while any
material Due Diligence issue remains unresolved.
	 
	 	 
	 

	 	In the event non-material issues are discovered during the Due
Diligence process, the Servicer will be notified in writing by
Fannie Mae or its agent and will have a reasonable amount of time
to cure such issues.
	 
	 	 
	 

	 	The Servicer shall pay for all amounts for initial Due Diligence
(as billed by a third party due diligence provider) and Fannie
Mae shall pay for any other additional due diligence.
	 
	 	 
	 

	 	As part of the funding of Flagstar Legacy Servicing Advances,
Fannie Mae shall have the opportunity to conduct any additional
Due Diligence it deems necessary. 30% of the funding for such
Legacy Servicing Advances shall occur subsequent to the Due
Diligence on such advances.

8

 

	 	 	 

	SERVICING TRANSFER:

	 	Unless consented to in writing by Fannie Mae, no loan serviced on
behalf of Fannie Mae with respect to any outstanding Eligible
Advance shall be transferred to another Servicer unless such
Eligible Advance is collected and the related Periodic Early
Reimbursement Amounts deposited into the Collections Account or
the Servicer makes a payment equal to such outstanding amounts.
	 
	 	 
	FANNIE MAE
SERVICING
REQUIREMENTS:

	 	Except as specifically set forth in this Variance, entering into
this Variance does not alter or diminish any obligations or
duties required of the Servicer according to the Fannie Mae
Selling and Servicing Guides or the Mortgage Selling and
Servicing Contract.
	 
	 	 
	ASSIGNMENT:

	 	Neither Fannie Mae nor the Servicer may assign, transfer or
participate its rights under this Variance.
	 
	 	 
	TERMINATION:

	 	After the Early Reimbursement Period is completed and the
Aggregate Early Reimbursement Amount is zero, this Variance shall
terminate.

9

 

SCHEDULE 1: LEGACY ADVANCES

	 	 	 	 	 
	 	 	Nature of Advances	 	 
	Original Advancing Servicer	 	Added	 	Date Added
	Dovenmuehle Mortgage Inc.

	 	T&I Servicing Advances
Corporate Advances
	 	August 16, 2010
	NHSA

	 	T&I Servicing Advances
Corporate Advances
	 	July 31, 2010
	NHSA

	 	T&I Servicing Advances
Corporate Advances
	 	August 31, 2010
	NHSA

	 	T&I Servicing Advances
Corporate Advances
	 	September 30, 2010
	Construction Company

	 	T&I Servicing Advances
Corporate Advances
	 	July 31, 2010
(trailing loans to
follow)
	Independence Federal
Saving Bank

	 	T&I Servicing Advances
Corporate Advances
	 	August 31, 2010
	First Florida Funding Corp

	 	T&I Servicing Advances
Corporate Advances
	 	August 31, 2010

10

 

ATTACHMENT A REMOVED AND REPLACED BY REREFERENCE TO 

THE FANNIE MAE EAF DATA DICTIONARY

11exv10w2

Exhibit 10.2

CONFIDENTIAL
TREATMENT REQUESTED

 

 

FIFTH AMENDED AND RESTATED MASTER REPURCHASE AGREEMENT

Dated as of January 27, 2010

Between:

THE ROYAL BANK OF SCOTLAND PLC, as Buyer,

and

NATIONSTAR MORTGAGE LLC, as Seller

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 

	 	1.	 	 	APPLICABILITY
	 	 	1	 
	 	2.	 	 	DEFINITIONS AND ACCOUNTING MATTERS
	 	 	1	 
	 	3.	 	 	THE TRANSACTIONS
	 	 	21	 
	 	4.	 	 	PAYMENTS; COMPUTATION; COMMITMENT FEES
	 	 	24	 
	 	5.	 	 	TAXES; TAX TREATMENT
	 	 	24	 
	 	6.	 	 	MARGIN MAINTENANCE
	 	 	26	 
	 	7.	 	 	INCOME PAYMENTS
	 	 	26	 
	 	8.	 	 	SECURITY INTEREST; BUYER’S APPOINTMENT AS ATTORNEY-IN-FACT
	 	 	27	 
	 	9.	 	 	CONDITIONS PRECEDENT
	 	 	30	 
	 	10.	 	 	RELEASE OF PURCHASED ASSETS
	 	 	34	 
	 	11.	 	 	RELIANCE
	 	 	34	 
	 	12.	 	 	REPRESENTATIONS AND WARRANTIES
	 	 	34	 
	 	13.	 	 	COVENANTS OF SELLER
	 	 	38	 
	 	14.	 	 	REPURCHASE DATE PAYMENTS
	 	 	47	 
	 	15.	 	 	REPURCHASE OF PURCHASED ASSETS
	 	 	47	 
	 	16.	 	 	SUBSTITUTION
	 	 	47	 
	 	17.	 	 	RESERVED
	 	 	48	 
	 	18.	 	 	EVENTS OF DEFAULT
	 	 	48	 
	 	19.	 	 	REMEDIES
	 	 	50	 
	 	20.	 	 	DELAY NOT WAIVER; REMEDIES ARE CUMULATIVE
	 	 	53	 
	 	21.	 	 	NOTICES AND OTHER COMMUNICATIONS
	 	 	53	 
	 	22.	 	 	USE OF EMPLOYEE PLAN ASSETS
	 	 	53	 
	 	23.	 	 	INDEMNIFICATION AND EXPENSES
	 	 	53	 
	 	24.	 	 	WAIVER OF REDEMPTION AND DEFICIENCY RIGHTS
	 	 	55	 
	 	25.	 	 	REIMBURSEMENT
	 	 	55	 
	 	26.	 	 	FURTHER ASSURANCES
	 	 	55	 
	 	27.	 	 	TERMINATION
	 	 	55	 
	 	28.	 	 	SEVERABILITY
	 	 	55	 
	 	29.	 	 	BINDING EFFECT; GOVERNING LAW
	 	 	56	 
	 	30.	 	 	AMENDMENTS
	 	 	56	 
	 	31.	 	 	SUCCESSORS AND ASSIGNS
	 	 	56	 
	 	32.	 	 	SURVIVAL
	 	 	56	 
	 	33.	 	 	CAPTIONS
	 	 	56	 
	 	34.	 	 	COUNTERPARTS
	 	 	56	 
	 	35.	 	 	SUBMISSION TO JURISDICTION; WAIVERS
	 	 	56	 
	 	36.	 	 	WAIVER OF JURY TRIAL
	 	 	57	 
	 	37.	 	 	ACKNOWLEDGEMENTS
	 	 	57	 
	 	38.	 	 	HYPOTHECATION OR PLEDGE OF PURCHASED ITEMS
	 	 	57	 
	 	39.	 	 	ASSIGNMENTS; PARTICIPATIONS
	 	 	58	 
	 	40.	 	 	SINGLE AGREEMENT
	 	 	59	 

i

 

	 	 	 	 	 	 	 	 	 

	 	41.	 	 	INTENT
	 	 	59	 
	 	42.	 	 	CONFIDENTIALITY
	 	 	59	 
	 	43.	 	 	SERVICING
	 	 	60	 
	 	44.	 	 	PERIODIC DUE DILIGENCE REVIEW
	 	 	61	 
	 	45.	 	 	SET-OFF
	 	 	61	 
	 	46.	 	 	AMENDMENT AND RESTATEMENT
	 	 	62	 
	 	47.	 	 	ENTIRE AGREEMENT
	 	 	62	 

	 	 	 

	SCHEDULES
	 	 
	 
	 	 
	SCHEDULE 1
	 	Representations and Warranties
	SCHEDULE 2
	 	Filing Jurisdictions and Offices
	SCHEDULE 3
	 	Relevant States
	SCHEDULE 4
	 	Subsidiaries
	 
	 	 
	EXHIBITS
	 	 
	 
	 	 
	EXHIBIT A
	 	Forms of Quarterly Certifications
	EXHIBIT B
	 	Form of Trade Assignment
	EXHIBIT C
	 	Form of Participation Certificate
	EXHIBIT D
	 	Form of Transaction Notice
	EXHIBIT E
	 	Underwriting Guidelines
	EXHIBIT F
	 	Required Fields for Servicing Transmission
	EXHIBIT G
	 	Required Fields for Asset Schedule
	EXHIBIT H
	 	Form of Confidentiality Agreement
	EXHIBIT I
	 	Form of Instruction Letter
	EXHIBIT J
	 	Form of Master Netting Agreement

ii

 

     FIFTH AMENDED AND RESTATED MASTER REPURCHASE AGREEMENT, dated as of January 27, 2010,
between Nationstar Mortgage LLC, a Delaware limited liability company as seller (“Seller”)
and The Royal Bank of Scotland plc (as assignee of RBS Financial Products, Inc.) (“Buyer”,
which term shall include any “Principal” as defined and provided for in Annex I), or as
agent pursuant hereto (“Agent”).

PRELIMINARY STATEMENTS

          A. Seller and Buyer are parties to a Fourth Amended and Restated Master Repurchase Agreement
dated as of April 6, 2009 (as amended, supplemented and otherwise modified from time to time, the
“Existing Agreement”).

          B. Seller has requested that Buyer consent to the amendment and restatement of the Existing
Agreement and in order to accommodate certain changes and modifications to the Existing Agreement,
including changes to the Assets to be purchased and sold hereunder.

          C. Upon the Effective Date of this Agreement, each reference to the Existing Agreement in any
other document, instrument or agreement shall mean and be a reference to this Agreement, and this
Agreement shall supersede the Existing Agreement in all respects.

          D. Subject to the terms and conditions herein contained, the parties hereby agree to amend and
restate the terms and conditions of the Existing Agreement in their entirety as follows:

1. APPLICABILITY

     Buyer shall, from time to time, upon the terms and conditions set forth herein, agree to enter
into transactions in which Seller transfers to Buyer Eligible Loans or 100% beneficial interests in
Eligible Loans evidenced by Eligible Participation Certificates, which are then exchanged for
Eligible Securities, against the transfer of funds by Buyer, with a simultaneous agreement by Buyer
to transfer to Seller Purchased Assets at a date certain, against the transfer of funds by Seller.
Each such transaction shall be referred to herein as a “Transaction”, and, unless otherwise
agreed in writing, shall be governed by this Agreement.

2. DEFINITIONS AND ACCOUNTING MATTERS

     (a) Defined Terms. As used herein, the following terms have the following meanings (all terms
defined in this Section 2 or in other provisions of this Agreement in the singular to have the same
meanings when used in the plural and vice versa):

     “Accepted Servicing Practices” shall mean with respect to any Loan, the normal and
customary practice of Seller utilized to service mortgage loans of the same type as the Loans in
the jurisdiction where the related Mortgaged Property is located, and which are in accordance with
the requirements of the Agency Guidelines, applicable law, FHA Regulations and VA Regulations and
the requirements of any private mortgage insurer so that the FHA Mortgage Insurance, VA guarantee
or any other applicable insurance or guarantee in respect of any Loan is not voided or reduced, as
applicable, and in a manner at least equal in quality to the servicing Seller or Seller’s designee
provides to mortgage loans which they own in their own portfolio.

     “Additional Purchased Assets” shall have the meaning specified in Section 6(a) hereof.

 

 

     “Adjustable Rate Loan” shall mean a Loan which provides for the adjustment of the
Mortgage Interest Rate payable in respect thereto.

     “Adjustment Date” shall mean with respect to each Adjustable Rate Loan, the date set
forth in the related Note on which the Mortgage Interest Rate on the Loan is adjusted in accordance
with the terms of the Note.

     “Affiliate” shall mean, with respect to any Person, any other Person which, directly
or indirectly, controls, is controlled by, or is under common control with, such Person. For
purposes of this definition, “control” (together with the correlative meanings of “controlled by”
and “under common control with”) means possession, directly or indirectly, of the power to direct
or cause the direction of the management or policies of such Person, whether through the ownership
of voting securities, by contract, or otherwise.

     “Agency” shall mean Freddie Mac, Fannie Mae, Ginnie Mae, FHA or VA, as applicable.

     “Agency Audit” shall mean any Agency and HUD audits, examinations, evaluations,
monitoring reviews and reports of its origination and servicing operations (including those
prepared on a contract basis for any such Agency).

     “Agency Eligible Loan” shall mean a Loan that is originated in Strict Compliance with
the Agency Guidelines and the eligibility requirements specified for the applicable Agency Program,
and is either (i) eligible for sale to, or securitization by, Fannie Mae, Freddie Mac or Ginnie Mae
or (ii) is an FHA Loan or a VA Loan.

     “Agency Guidelines” shall mean the Ginnie Mae Guide, the Fannie Mae Guide, Freddie Mac
Guide, FHA Regulations and/or the VA Regulations, as the context may require, in each case as such
guidelines have been or may be amended, supplemented or otherwise modified from time to time (i) by
Ginnie Mae, Fannie Mae, Freddie Mac, FHA or VA, as applicable, in the ordinary course of business
and, with respect to material amendments, supplements or other modifications, as to which Buyer
shall not have reasonably objected within ten (10) days of receiving notice of such or (ii) by
Ginnie Mae, Fannie Mae, Freddie Mac, FHA or VA, as applicable, at the request of Seller and as to
which (x) Seller has given notice to Buyer of any such material amendment, supplement or other
modification and (y) Buyer shall not have reasonably objected within ten (10) days of receiving
notice of such.

     “Agency Program” shall mean the Ginnie Mae Program, the Fannie Mae Program and/or the
Freddie Mac Program, as the context may require.

     “Agency Takeout Loan” shall mean a Loan that is an Agency Eligible Loan (other than an
Early Purchase Program Loan) and is subject to a Takeout Commitment of the kind described in clause
(a) of the definition of “Takeout Commitment.”

     “Agent” shall have the meaning set forth in the preamble to this Agreement.

     “Agreement” shall mean this Fifth Amended and Restated Master Repurchase Agreement
(including all exhibits, schedules and other addenda hereto or thereto), as supplemented by the
Fifth Amended and Restated Pricing Side Letter, together with all amendments, modifications,
supplements and restatements thereto.

     “ALTA” shall mean the American Land Title Association.

     “Applicable Agency Schedule” shall have the meaning assigned thereto in Section 3(i)
hereof.

2

 

     “Applicable Margin” shall have the meaning set forth in the Pricing Side Letter.

     “Appraised Value” shall mean the value set forth in an appraisal made in connection
with the origination or subsequent servicing of the related Loan as the value of the Mortgaged
Property.

     “Approvals” shall mean, with respect to Seller, the approvals given by the applicable
Agency in designation of Seller as a Ginnie Mae approved issuer, a Ginnie Mae approved servicer, an
FHA-approved mortgagee, a VA-approved lender, a Fannie Mae approved lender or a Freddie Mac
approved Seller/Servicer, as applicable, in good standing.

     “Approved Title Insurance Company” shall have the meaning set forth in the Custodial
Agreement.

     “Asset” shall mean a Loan or 100% beneficial interest in a Loan that is a Related
Loan, a Participation Certificate, or a Security, as the context may require.

     “Asset Schedule” shall mean the list of Purchased Assets or Assets proposed to be
purchased by Buyer that will be delivered in hard copy or electronic format to Buyer and shall
incorporate the fields identified on Exhibit G and any other information required by Buyer
and any other additional information to be provided pursuant to the Custodial Agreement.

     “Assignment of Mortgage” shall mean, 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 Buyer.

     “Attorney Bailee Letter” shall have the meaning assigned to such term in the Custodial
Agreement.

     “Bankruptcy Code” shall mean Title 11 United States Code, Section 101 et seq., as
amended from time to time.

     “Best’s” shall mean Best’s Key Rating Guide, as the same shall be amended from time to
time.

     “Best Execution Loan” shall mean a Loan, which is not subject to a valid and binding
Takeout Commitment, which is not Delinquent, and which is subject to a hedging agreement with Buyer
or an Affiliate of Buyer.

     “Business Day” shall mean any day other than (i) a Saturday or Sunday, (ii) a day on
which the New York Stock Exchange, the Federal Reserve Bank of New York, the Custodian’s offices,
banking and savings and loan institutions in the State of New York, Connecticut or Texas, the City
of New York or the city or state in which the Custodian’s offices are located are closed, or (iii)
a day on which trading in securities on the New York Stock Exchange or any other major securities
exchange in the United States is not conducted.

     “Capital Lease Obligations” shall mean, for any Person, all obligations of such Person
to pay rent or other amounts under a lease of (or other agreement conveying the right to use)
Property to the extent such obligations are required to be classified and accounted for as a
capital lease on a balance sheet of such Person under GAAP, and, for purposes of this Agreement,
the amount of such obligations shall be the capitalized amount thereof, determined in accordance
with GAAP.

3

 

     “Cash Equivalents” shall mean (a) securities with maturities of ninety (90) days or
less from the date of acquisition issued or fully guaranteed or insured by the United States
Government or any agency thereof, (b) certificates of deposit and eurodollar time deposits with
maturities of ninety (90) days or less from the date of acquisition and overnight bank deposits of
any commercial bank having capital and surplus in excess of $500,000,000, (c) repurchase
obligations of any commercial bank satisfying the requirements of clause (b) of this definition,
having a term of not more than seven (7) days with respect to securities issued or fully guaranteed
or insured by the United States Government, (d) commercial paper of a domestic issuer rated at
least A-1 or the equivalent thereof by Standard and Poor’s Ratings Group (“S&P”) or P-1 or
the equivalent thereof by Moody’s Investors Service, Inc. (“Moody’s”) and in either case
maturing within ninety (90) days after the day of acquisition, (e) securities with maturities of
ninety (90) days or less from the date of acquisition issued or fully guaranteed by any state,
commonwealth or territory of the United States, by any political subdivision or taxing authority of
any such state, commonwealth or territory or by any foreign government, the securities of which
state, commonwealth, territory, political subdivision, taxing authority or foreign government (as
the case may be) are rated at least A by S&P or A by Moody’s, (f) securities with maturities of
ninety (90) days or less from the date of acquisition backed by standby letters of credit issued by
any commercial bank satisfying the requirements of clause (b) of this definition or, (g) shares of
money market mutual or similar funds which invest exclusively in assets satisfying the requirements
of clauses (a) through (f) of this definition.

     “Change of Control” shall mean, with respect to Seller, the acquisition by any other
Person, or two or more other Persons acting in concert, of beneficial ownership (within the meaning
of Rule 13d-3 of the Securities and Exchange Commission under the Securities Exchange Act of 1934,
as amended) of outstanding shares of voting stock of such Seller at any time if, after giving
effect to such acquisition, Fortress Investment Group LLC and its Affiliates do not own, directly
or indirectly, more than fifty percent (50%) of such outstanding voting stock.

     “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

     “Collection Account” shall mean the following account established by Seller in
accordance with Section 13(ii) for the benefit of Buyer, “Nationstar Mortgage LLC in trust for
Greenwich Capital Financial Products, Inc. — P&I account — Account # 727103996”.

     “Collection Account Control Agreement” shall mean the collection account control
agreement dated as of February 29, 2008 among Buyer, Seller and JPMorgan Chase Bank, National
Association, in form and substance acceptable to Buyer to be entered into with respect to the
Collection Account, together with all amendments, modifications, supplements and restatements
thereto.

     “Commitment Fee” shall have the meaning assigned to it in Section 4(c).

     “Commitment Fee Amount” shall have the meaning assigned thereto in the Pricing Side
Letter.

     “Confirmation” shall have the meaning assigned thereto in Section 3(a) hereof.

     “Contractual Obligation” shall mean as to any Person, any material provision of any
agreement, instrument or other undertaking to which such Person is a party or by which it or any of
its property is bound or any material provision of any security issued by such Person.

     “Conversion Date” shall mean, with respect to a Purchased Participation Certificate,
the date on which Buyer releases its rights, title and interest in the Related Loans and the
Related Security is registered as a book-entry security in the name of the Depository.

4

 

     “Corporate Loan” shall mean each loan made by Buyer to Seller pursuant to the
Corporate Loan Agreement.

     “Corporate Loan Agreement” shall mean that certain Third Amended and Restated Loan
Agreement, dated as of January 27, 2010, between Buyer and Seller, together with all amendments,
modifications, supplements and restatements thereto.

     “Custodial Agreement” shall mean the Amended and Restated Custodial Agreement, dated
as of January 27, 2010, among Seller, Buyer, and Custodian, together with all amendments,
modifications, supplements and restatements thereto.

     “Custodian” shall mean The Bank of New York Mellon Trust Company, N.A., or its
successors and permitted assigns, or any successor custodian appointed by the Buyer and Seller to
act as custodian under this Agreement.

     “Custodian Loan Transmission” shall have the meaning assigned thereto in the Custodial
Agreement.

     “Default” shall mean an Event of Default or any event, that, with the giving of notice
or the passage of time or both, would become an Event of Default.

     “Delinquent” shall mean, with respect to a Loan, that a Monthly Payment due thereon is
not made by the close of business on the Due Date. The number of days that a Loan is deemed
Delinquent shall be determined by reference to the Mortgage Bankers Association calculation of
delinquency.

     “Depository” shall have the meaning set forth in the glossary of the Ginnie Mae Guide,
the Fannie Mae Guide or the Freddie Mac Guide, as applicable.

     “Dollars” or “$” shall mean lawful money of the United States of America.

     “Dry Loan” shall mean a Loan which is underwritten in accordance with the Underwriting
Guidelines and as to which the related Mortgage File contains all required Loan Documents.

     “Due Date” shall mean the day of the month on which the Monthly Payment is due on a
Loan, exclusive of any days of grace.

     “Due Diligence Review” shall mean the performance by Buyer of any or all of the
reviews permitted under Section 44 hereof with respect to any or all of the Assets or the Seller or
related parties, as desired by Buyer from time to time.

     “Early Purchase Program Loan” shall mean a Loan identified as an Early Purchase
Program Loan on the related Asset Schedule that is an Agency Eligible Loan subject to a Takeout
Commitment of the kind described in clause (c) of the definition of “Takeout Commitment,” and as to
which 100% of the beneficial interests therein are evidenced by a Participation Certificate.

     “Effective Date” shall mean the date upon which the conditions precedent set forth in
Section 9(a) have been satisfied.

     “Electronic Tracking Agreement” shall mean the electronic tracking agreement, together
with all amendments, modifications, supplements and restatements thereto, among RBS Financial
Products Inc. (f/k/a Greenwich Capital Financial Products, Inc.), Seller, MERSCORP, Inc. and MERS,
in form and

5

 

substance acceptable to Buyer to be entered into in the event that any of the Loans become
MERS Loans; provided that if no Loans are or will be MERS Loans, all references herein to
the Electronic Tracking Agreement shall be disregarded.

     “Electronic Transmission” shall mean 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 Asset” shall mean an Eligible Loan, an Eligible Participation Certificate
and/or an Eligible Security, as the context may require.

     “Eligible Loan” shall have the meaning assigned thereto in the Pricing Side Letter.

     “Eligible Participation Certificate” shall mean a Participation Certificate (i) that
represents a 100% beneficial interest in a pool of Eligible Loans that are Early Purchase Program
Loans (together with all related Servicing Rights), (ii) that is sufficient for Seller to issue and
Ginnie Mae to guarantee, or for Seller to sell and Fannie Mae or Freddie Mac to issue, the Related
Security in the amount and with the terms described in the related Takeout Commitment, and (iii) as
to which the Takeout Price set forth in the related Takeout Commitment is for an amount that is
less than the outstanding Repurchase Price for such Participation Certificate. No Participation
Certificate shall be an Eligible Participation Certificate if such Participation Certificate has
been subject to Transactions for more than six (6) Business Days (whether or not consecutive).

     “Eligible Security” shall mean a Security that is a Related Security (i) as to which
the representations and warranties in Schedule 1 of the Agreement are true and correct,
(ii) that is issued on the Conversion Date in Strict Compliance with the applicable Agency
Guidelines, (iii) for which a CUSIP has been issued and provided to Buyer, (iv) that is backed
solely by Eligible Loans that are Early Purchase Program Loans that were subject to Transactions
immediately prior to the issuance of the Security, (v) that is delivered in a manner sufficient to
cause Buyer to have a perfected, first priority security interest in, and to be the “entitlement
holder” (as defined in Section 8-102(a)(7) of the Uniform Commercial Code of, such Security, (vi)
for which the Conversion Date occurs prior to the related Settlement Date, and (vii) that is
purchased by the Takeout Investor on the related Security Settlement Date.

     “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended
from time to time.

     “ERISA Affiliate” shall mean any entity, whether or not incorporated, that is a member
of any group of organizations described in Section 414(b), (c), (m) or (o) of the Code of which
Seller is a member.

     “Escrow Payments” shall mean, with respect to any 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 any other payments required
to be escrowed by the Mortgagor with the Mortgagee pursuant to the terms of any Note or Mortgage or
any other document.

     “Event of Default” shall have the meaning provided in Section 18 hereof.

     “Exception” shall have the meaning assigned thereto in the Custodial Agreement.

6

 

     “Exception Report” shall mean the exception report prepared by the Custodian pursuant
to the Custodial Agreement.

     “Fannie Mae” shall mean Fannie Mae or any successor thereto.

     “Fannie Mae Guide” shall mean the Fannie Mae MBS Selling and Servicing Guide, as such
Guide may hereafter from time to time be amended.

     “Fannie Mae Program” shall mean the Fannie Mae Guaranteed Mortgage-Backed Securities
Programs, as described in the Fannie Mae Guide.

     “Federal Funds Rate” shall mean, for any period, a fluctuating interest rate equal,
for each day during such period, to the weighted average of the rates on overnight federal funds
transaction with members of the Federal Reserve System arranged by federal funds brokers, as
published for such day in the Wall Street Journal and quoted in the Federal Reserve Statistical
Release (H.15).

     “FHA” shall mean 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 Act” shall mean the Federal Housing Administration Act, codified in 24 Code of
Federal Regulations, and eligible to own and service mortgage loans such as the FHA Loans.

     “FHA Loans” means an Eligible Loan that is the subject of an FHA Mortgage Insurance
Contract, which shall include FHASecure mortgage loans (a refinancing option sponsored by the FHA
that gives homeowners, with non-FHA adjustable rate mortgages, the ability to refinance into a
FHA-insured mortgage pursuant to the criteria established by the FHA).

     “FHA Mortgage Insurance” shall mean mortgage insurance authorized under Sections
203(b), 213, 221(d)(2), 222, and 235 of the Act and provided by the FHA.

     “FHA Mortgage Insurance Contract” shall mean the contractual obligation of the FHA
respecting the insurance of a Loan.

     “FHA Regulations” shall mean regulations promulgated by HUD under the FHA Act,
codified in 24 Code of Federal Regulations, and other HUD issuances relating to FHA Loans,
including the related handbooks, circulars, notices and mortgagee letters.

     “FIF HE Corporate Loan Agreement Guaranty” shall mean the Guarantee, dated as of
February 29 2008, made by the FIF HE Guarantor in favor of the Buyer with respect to the Seller’s
obligations under the Corporate Loan Agreement, as amended, further supplemented or otherwise
modified from time to time. For the avoidance of doubt, the FIF HE Corporate Loan Agreement
Guaranty shall terminate upon the satisfaction in full by the Seller of its obligations under the
Corporate Loan Agreement.

     “FIF HE Guarantor” shall mean, collectively, FIF HE Holdings LLC, a Delaware limited
liability company, FIF HE Holdings LLC, acting with respect to Series 1 thereof and FIF HE Holdings
LLC, acting with respect to Series 2 thereof.

     “FIF HE Guaranty” shall mean, collectively (i) the FIF HE Repurchase Agreement
Guaranty, and (ii) the FIF HE Corporate Loan Agreement Guaranty.

7

 

     “FIF HE Repurchase Agreement Guaranty” shall mean the Amended and Restated Guarantee,
dated as of February 29 2008, made by the FIF HE Guarantor in favor of the Buyer with respect to
the Seller’s Obligations under this Agreement, as amended, further supplemented or otherwise
modified from time to time. For the avoidance of doubt, the FIF HE Repurchase Agreement Guaranty
shall terminate upon the earlier of the satisfaction in full by the Seller of (i) its obligations
under the Corporate Loan Agreement and (ii) the Obligations under this Agreement.

     “First Lien” shall mean with respect to each Mortgaged Property, the lien of the
mortgage, deed of trust or other instrument securing a mortgage note which creates a first lien on
the Mortgaged Property

     “Fortress Guarantors” shall mean each of Fortress Investment Fund III LP, Fortress
Investment Fund III (Fund B) LP, Fortress Investment Fund III (Fund C) LP, Fortress Investment Fund
III (Fund D) LP, Fortress Investment Fund III (Fund E) LP, Fortress Investment Fund IV (Fund A) LP,
Fortress Investment Fund IV (Fund B) LP, Fortress Investment Fund IV (Fund C) LP, Fortress
Investment Fund IV (Fund D) LP, Fortress Investment Fund IV (Fund E) LP, Fortress Investment Fund
IV (Fund F) LP and Fortress Investment Fund IV (Fund G) LP.

     “Fortress Guaranty” shall mean the Guaranty, dated as of February 29, 2008, made by
the Fortress Guarantors in favor of the Buyer, together with all amendments, modifications,
supplements and restatements thereto. For the avoidance of doubt, the Fortress Guaranty shall
terminate upon the satisfaction in full by the Seller of its obligations under the Corporate Loan
Agreement.

     “Freddie Mac” shall mean Freddie Mac, or any successor thereto.

     “Freddie Mac Guide” shall mean the Freddie Mac Sellers’ and Servicers’ Guide, as such
Guide may hereafter from time to time be amended.

     “Freddie Mac Program” shall mean the Freddie Mac Home Mortgage Guarantor Program or
the Freddie Mac FHA/VA Home Mortgage Guarantor Program, as described in the Freddie Mac Guide.

     “GAAP” shall mean generally accepted accounting principles in effect from time to time
in the United States of America.

     “Ginnie Mae” shall mean 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” shall mean the Ginnie Mae Mortgage-Backed Securities Guide I or II,
as such Guide may hereafter from time to time be amended.

     “Ginnie Mae Program” shall mean the Ginnie Mae Mortgage-Backed Securities Programs, as
described in the Ginnie Mae Guide.

     “Governmental Authority” shall mean with respect to any Person, any nation or
government, any state or other political subdivision, agency or instrumentality thereof, any entity
exercising executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government and any court or arbitrator having jurisdiction over such Person, any of
its Subsidiaries or any of its properties.

     “Gross Margin” shall mean with respect to each Adjustable Rate Loan, the fixed
percentage amount set forth in the related Note and the Asset Schedule that is added to the Index
on each Adjustment Date in accordance with the terms of the related Note to determine the new
Mortgage Interest Rate for such Loan.

8

 

     “Guarantee” shall mean, as to any Person, any obligation of such Person directly or
indirectly guaranteeing any Indebtedness of any other Person or in any manner providing for the
payment of any Indebtedness of any other Person or otherwise protecting the holder of such
Indebtedness against loss (whether by virtue of partnership arrangements, by agreement to
keep-well, to purchase assets, goods, securities or services, or to take-or-pay or otherwise),
provided that the term “Guarantee” shall not include (i) endorsements for collection or deposit in
the ordinary course of business, or (ii) obligations to make servicing advances for delinquent
taxes and insurance, or other obligations in respect of a Mortgaged Property, to the extent
required by the Buyer. The amount of any Guarantee of a Person shall be deemed to be an amount
equal to the stated or determinable amount of the primary obligation in respect of which such
Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated liability
in respect thereof as determined by such Person in good faith. The terms “Guarantee” and
“Guaranteed” used as verbs shall have correlative meanings.

     “HUD” shall mean 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 Ginnie Mae.

     “Income” shall mean, with respect to any Purchased Asset at any time, any principal
and/or interest thereon and all dividends, sale proceeds (including, without limitation, any
proceeds from the securitization of any Purchased Asset or other disposition thereof) and other
collections and distributions thereon (including, without limitation, any proceeds received in
respect of mortgage insurance), but not including any commitment fees, origination fees and/or
servicing fees accrued in respect of periods on or after the initial Purchase Date with respect to
such Purchased Asset.

     “Indebtedness” shall mean, for any Person: (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 of such Person 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 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) of such Person
in respect of letters of credit or similar instruments issued or accepted by banks and other
financial institutions for account of such Person; (e) Capital Lease Obligations of such Person;
(f) obligations of such Person under repurchase agreements or like arrangements; (g) indebtedness
of others Guaranteed by such Person; (h) all obligations of such Person incurred in connection with
the acquisition or carrying of fixed assets by such Person; (i) indebtedness of general
partnerships of which such Person is a general partner; and (j) any other indebtedness of such
Person by a note, bond, debenture or similar instrument.

     “Index” shall mean with respect to each Adjustable Rate Loan, the index identified on
the related Asset Schedule and set forth in the related Note for the purpose of calculating the
interest rate thereon.

     “Instruction Letter” shall mean a letter agreement between Seller and each Subservicer
substantially in the form of Exhibit I attached hereto.

     “Insurance Proceeds” shall mean with respect to each Asset, proceeds of insurance
policies insuring the Asset or the related Mortgaged Property.

9

 

     “Interest Only Loan” shall mean a Loan which, by its terms, requires the related
Mortgagor to make monthly payments of only accrued interest for a certain period of time following
origination. After such interest-only period, the loan terms provide that the Mortgagor’s monthly
payment will be recalculated to cover both interest and principal so that such Loan will amortize
fully on or prior to its final payment date.

     “Interest Period” shall mean, with respect to any Transaction, the period commencing
on the Purchase Date with respect to such Transaction and ending on the calendar day prior to the
related Repurchase Date. Notwithstanding the foregoing, no Interest Period may end after the
Termination Date.

     “Interest Rate Adjustment Date” shall mean with respect to each Adjustable Rate Loan,
the date on which the Mortgage Interest Rate is adjusted, as set forth in the related Note and the
Asset Schedule.

     “Interest Rate Protection Agreement” shall mean with respect to any or all of the
Purchased Assets, any interest rate swap, cap or collar agreement or any other applicable hedging
arrangements providing for protection against fluctuations in interest rates or the exchange of
nominal interest obligations, either generally or under specific contingencies entered into by
Seller and reasonably acceptable to Buyer.

     “Investment Company Act” shall mean the Investment Company Act of 1940, as amended,
including all rules and regulations promulgated thereunder.

     “LIBO Base Rate” shall mean with respect to each day on which a Transaction is
outstanding (or if such day is not a Business Day, the next succeeding Business Day), the rate per
annum equal to the rate published by Bloomberg or if such rate is not available, the rate appearing
on page Reuters Screen LIBOR01 Page as of 11:00 a.m. (London time) on such date (rounded up to the
nearest whole multiple of 1/16%), as one-month LIBOR on such date, and if such rate shall not be so
quoted, the rate per annum at which Buyer is offered Dollar deposits at or about 11:00 A.M., New
York City time, on such date by prime banks in the interbank eurodollar market where the eurodollar
and foreign currency and exchange operations in respect of its Transactions are then being
conducted for delivery on such day for a period of one month and in an amount comparable to the
amount of the Transactions to be outstanding on such day.

     “LIBO Rate” shall mean with respect to each Interest Period pertaining to a
Transaction, a rate (reset on a monthly basis) per annum determined by Buyer in its sole discretion
in accordance with the following formula (rounded upwards to the nearest l/100th of one percent),
which rate as determined by Buyer shall be conclusive absent manifest error by Buyer:

	 	 	 	 	 

	 

	 	LIBO Base Rate
	 	 
	 

	 	 	 	 
	 

	 	1.00 — LIBO Reserve Requirements	 	 

     The LIBO Rate shall be calculated on each Purchase Date and Repurchase Date commencing with
the first Purchase Date.

     “LIBO Reserve Requirements” shall mean for any Interest Period for any Transaction,
the aggregate (without duplication) of the rates (expressed as a decimal fraction) of reserve
requirements applicable to the Buyer in effect on such day (including, without limitation, basic,
supplemental, marginal and emergency reserves under any regulations of the Board of Governors of
the Federal Reserve System or other Governmental Authority having jurisdiction with respect
thereto), dealing with reserve requirements prescribed for eurocurrency funding (currently referred
to as “Eurocurrency Liabilities” in Regulation D of such Board) maintained by a member bank of such
Governmental Authority. As of the Effective Date, the LIBO Reserve Requirements shall be deemed to
be zero.

10

 

     “Lien” shall mean any mortgage, lien, pledge, charge, security interest or similar
encumbrance.

     “Liquidity” shall mean with respect to the Seller, the sum of (i) its cash, plus (ii)
its Cash Equivalents, plus (iii) the aggregate amount of unused capacity available to the Seller
(taking into account applicable haircuts) under mortgage loan warehouse or servicer advance
facilities for which the Seller has unencumbered eligible collateral to pledge thereunder.

     “Loan” shall mean a closed-end, fully funded First Lien loan secured by a mortgage on
a one to four family residential property, together with the Servicing Rights thereon, which the
Custodian has been instructed to hold for Buyer pursuant to the Custodial Agreement, and which Loan
includes, without limitation, (i) a Note, the related Mortgage and all other Loan Documents and
(ii) all right, title and interest of Seller in and to the Mortgaged Property covered by such
Mortgage.

     “Loan Documents” shall have the meaning assigned to the term “Mortgage Loan Documents”
in the Custodial Agreement.

     “Loan Pool” shall have the meaning assigned thereto in the Custodial Agreement.

     “Loan-to-Value Ratio” or “LTV” shall mean with respect to any Loan, the ratio
expressed as a percentage of the outstanding principal amount of such Loan at the time of
origination of such Loan to the lesser of (a) most recently obtained the Appraised Value of the
related Mortgaged Property and (b) if the related Mortgage Loan was made to finance the acquisition
of the related Mortgaged Property, the purchase price of the related Mortgaged Property.

     “Margin Call” shall have the meaning assigned thereto in Section 6(a) hereof.

     “Margin Deficit” shall have the meaning assigned thereto in Section 6(a) hereof.

     “Market Value” shall mean the value, determined on any date by Buyer in its sole
reasonable discretion, taking into account customary factors, including without limitation, market
factors where the Assets may be sold in their entirety to a single third-party purchaser. Buyer’s
determination of Market Value shall be conclusive upon the parties, absent manifest error on the
part of Buyer. Buyer shall have the right to mark to market the Assets on a daily basis which
Market Value with respect to one or more of the Assets may be determined to be zero. Seller
acknowledges that Buyer’s determination of Market Value is for the limited purpose of determining
the value of Purchased Assets which are subject to Transactions hereunder without the ability to
perform customary purchaser’s due diligence and is not necessarily equivalent to a determination of
the fair market value of the Assets achieved by obtaining competing bids in an orderly market in
which the originator/servicer is not in default under a revolving debt facility and the bidders
have adequate opportunity to perform customary loan and servicing due diligence. The Market Value
shall be deemed to be zero with respect to each Asset that is not an Eligible Asset.

     “Master Netting Agreement” shall mean that certain Second Amended and Restated
Collateral Security, Setoff and Netting Agreement, in the form of Exhibit J hereto, dated
as of January 9, 2009 among Buyer, Seller, FIF HE Guarantor and certain Affiliates and
Subsidiaries, together with all amendments, modifications, supplements and restatements thereto.

     “Material Adverse Effect” shall mean a material adverse effect on (a) the property,
business, operations or financial condition of any of the Seller or FIF HE Guarantor, (b) the
ability of any of the Seller or FIF HE Guarantor, to perform its respective obligations under any
of the Program Documents to which it is a party, (c) the validity or enforceability of any of the
Program Documents, (d) the rights and

11

 

remedies of the Buyer under any of the Program Documents, (e) the timely repurchase of the
Purchased Assets or payment of other amounts payable in connection therewith, or (f) the Purchased
Items (other than changes in Market Value due to market conditions).

     “Maximum Aggregate Purchase Price” shall mean, as of any date of determination,
$300,000,000.

     “Maximum Mortgage Interest Rate” shall mean with respect to each Adjustable Rate Loan,
a rate that is set forth on the related Asset Schedule and in the related Note and is the maximum
interest rate to which the Mortgage Interest Rate on such Loan may be increased on any Adjustment
Date.

     “MERS” shall mean Mortgage Electronic Registration Systems, Inc., a Delaware
corporation, or any successor in interest thereto.

     “MERS Identification Number” shall mean the eighteen digit number permanently assigned
to each MERS Loan.

     “MERS Loan” shall mean any 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
Note, and which is identified as a MERS Loan on the related Schedule.

     “Monthly Payment” shall mean, the scheduled monthly payment of interest, and as
applicable, principal (including any Balloon Payment) on a Loan required to be made pursuant to the
provisions of the related Note, as adjusted for an Adjustable Rate Loan in accordance with changes
in the Mortgage Interest Rate as provided in the related Note.

     “Mortgage” shall mean with respect to a Loan, the mortgage, deed of trust or other
instrument, which creates a First Lien on the fee simple or leasehold estate in such real property
which secures the Note.

     “Mortgage File” shall have the meaning assigned thereto in the Custodial Agreement.

     “Mortgage Interest Rate” shall mean the annual rate of interest borne on a Note, which
shall be adjusted from time to time with respect to Adjustable Rate Loans.

     “Mortgaged Property” shall mean the real property (including all improvements,
buildings, fixtures, building equipment and personal property thereon and all additions,
alterations and replacements made at any time with respect to the foregoing) and all other
collateral securing repayment of the debt evidenced by a Note.

     “Mortgagee” shall mean the record holder of a Note secured by a Mortgage.

     “Mortgagor” shall mean the obligor or obligors on a Note, including any person who has
assumed or guaranteed the obligations of the obligor thereunder.

     “Multiemployer Plan” shall mean a multiemployer plan defined as such in Section 3(37)
of ERISA to which contributions have been or are required to be made by Seller or any ERISA
Affiliate or as to which Seller or any ERISA Affiliate has any actual or potential liability or
obligation and that is covered by Title IV of ERISA.

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     “MV Margin Amount” shall mean, with respect to any Transaction, as of any date of
determination, the amount obtained by application of the MV Margin Percentage to the Repurchase
Price (reduced by the amount of any accrued and unpaid Price Differential) for such Transaction as
of such date.

     “MV Margin Percentage” shall have the meaning assigned thereto in the Pricing Side
Letter.

     “Negative Amortization” shall mean with respect to each Negative Amortization Loan,
that portion of interest accrued at the Mortgage Interest Rate in any month which exceeds the
Monthly Payment on the related Loan for such month and which, pursuant to the terms of the Note, is
added to the principal balance of the Loan.

     “Negative Amortization Loan” shall mean each Loan that may be subject to Negative
Amortization.

     “Net Income” shall mean, for any period, the net income of any Person for such period
as determined in accordance with GAAP.

     “Net Worth” shall mean, with respect to any Person, the excess of total assets of such
Person, over Total Liabilities of such Person, determined in accordance with GAAP.

     “Non-Conforming Loan” shall mean a Loan that is not an Agency Eligible Loan and is
subject to a Takeout of the kind described in clause (b) of the definition of Takeout Commitment.

     “Note” shall mean, with respect to any Loan, the related promissory note together with
all riders thereto and amendments thereof or other evidence of indebtedness of the related
Mortgagor.

     “Notice of Certification” shall have the meaning assigned thereto in the Custodial
Agreement.

     “Obligations” shall mean (a) all of Seller’s obligations to pay the Repurchase Price
on the Repurchase Date and other obligations and liabilities of Seller to Buyer, its Affiliates,
the Custodian or any other Person 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 Buyer or on behalf of Buyer 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 Buyer or any
Affiliate of Buyer 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 Buyer pursuant to the Program Documents.

     “Par Margin Amount” shall mean, with respect to any Transaction, as of any date of
determination, the amount obtained by application of the Par Margin Percentage to the Repurchase
Price (reduced by the amount of any accrued and unpaid Price Differential) for such Transaction as
of such date.

     “Par Margin Percentage” shall have the meaning assigned thereto in the Pricing Side
Letter.

     “Participants” shall have the meaning assigned thereto in Section 39 hereof.

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     “Participation Certificate” shall mean, with respect to the applicable Agency Program,
a certificate, in the form of Exhibit C, executed by Seller, evidencing the 100% undivided
beneficial ownership interest in the Loans that are either set forth on Fannie Mae Form 2005
(Schedule of Mortgages), Freddie Mac Form 1034 (Fixed-Rate Custodial Certification Schedule), or
HUD 11706 (Schedule of Pooled Mortgages) and attached to such Participation Certificate, or
identified on a computer tape compatible with the related Selling System as belonging to the
mortgage loan pool described in such Participation Certificate, as applicable.

     “PBGC” shall mean the Pension Benefit Guaranty Corporation or any entity succeeding to
any or all of its functions under ERISA.

     “Person” shall mean any individual, corporation, company, voluntary association,
partnership, joint venture, limited liability company, trust, unincorporated association or
government (or any agency, instrumentality or political subdivision thereof).

     “Plan” shall mean an employee benefit or other plan established or maintained by
either Seller or, in the case of a Plan subject to Title IV of ERISA, any ERISA Affiliate and that
is covered by Title IV of ERISA, other than a Multiemployer Plan.

     “PMI Policy” or “Primary Insurance Policy” shall mean a policy of primary
mortgage guaranty insurance issued by a Qualified Insurer.

     “Post-Default Rate” shall mean, in respect of the Repurchase Price for any Transaction
or any other amount under this Agreement, or any other Program Document that is not paid when due
to Buyer (whether at stated maturity, by acceleration or mandatory prepayment or otherwise), a rate
per annum during the period from and including the due date to but excluding the date on which such
amount is paid in full equal to 4.00% per annum, plus (a)(i) the Pricing Rate otherwise applicable
to such Asset or other amount, or (ii) if no Pricing Rate is otherwise applicable, the LIBO Rate
plus (b) the Applicable Margin.

     “Price Differential” shall mean, with respect to each Transaction as of any date of
determination, the aggregate amount obtained by daily application of the Pricing Rate (or during
the continuation of an Event of Default, by daily application of the Post-Default Rate) for such
Transaction to the Purchase Price for such Transaction on a 360-day-per-year basis for the actual
number of days elapsed during the period commencing on (and including) the Purchase Date and ending
on (but excluding) the date of determination (reduced by any amount of such Price Differential in
respect of such period previously paid by Seller to Buyer with respect to such Transaction).

     “Pricing Rate” shall mean the per annum percentage rate for determination of the Price
Differential as set forth in the Pricing Side Letter.

     “Pricing Side Letter” shall mean that certain Fifth Amended and Restated Pricing Side
Letter, dated as of January 27, 2010, between Seller and Buyer, together with all amendments,
modifications, supplements and restatements thereto.

     “Principal” shall have the meaning assigned thereto in Annex I.

     “Program Documents” shall mean this Agreement, the Pricing Side Letter, the Corporate
Loan Agreement, the FIF HE Guaranty, the Fortress Guaranty, the Custodial Agreement, the Collection
Account Control Agreement, the Master Netting Agreement, any Servicing Agreement, any Instruction
Letter, the Electronic Tracking Agreement, and any other agreement entered into by Seller, on the
one

14

 

hand, and the Buyer and/or any of its Affiliates or Subsidiaries (or Custodian on its behalf)
on the other, in connection herewith or therewith.

     “Property” shall mean any right or interest in or to property of any kind whatsoever,
whether real, personal or mixed and whether tangible or intangible.

     “Purchase Date” shall mean, with respect to each Transaction, the date on which Assets
are sold by Seller to Buyer hereunder.

     “Purchase Price” shall have the meaning assigned thereto in the Pricing Side Letter.

     “Purchased Assets” shall mean Purchased Loans (including 100% beneficial interest in
Loans that are Related Loans and as to which the related Participation Certificate is a Purchased
Participation Certificate), Purchased Participation Certificates and/or Purchased Securities, as
the context may require. The term “Purchased Assets” with respect to any Transaction at any time
shall also include Additional Purchased Asset delivered pursuant to Section 6(a) hereof and
Substitute Assets delivered pursuant to Section 16 hereof.

     “Purchased Items” shall have the meaning assigned thereto in Section 8 hereof.

     “Purchased Loans” shall mean any of the following assets sold by Seller to Buyer in a
Transaction on a servicing-released basis: the Loans, together with the related Servicing Records,
the related Servicing Rights (which were sold by Seller and purchased by Buyer on the related
Purchase Date), and with respect to each Loan, such other property, rights, titles or interest as
are specified on a related Transaction Notice, and all documents, instruments, chattel paper, and
general intangibles comprising or relating to all of the foregoing.

     “Purchased Participation Certificate” shall mean a Participation Certificate
evidencing the 100% beneficial interest in Related Loans sold by Seller to Buyer in a Transaction,
together with the related Servicing Records, the related Servicing Rights (which were sold by
Seller and purchased by Buyer on the related Purchase Date), and with respect to each Loan, such
other property, rights, titles or interest as are specified on a related Transaction Notice, and
all documents, instruments, chattel paper, and general intangibles and all products and proceeds
relating to or constituting any or all of the foregoing.

     “Purchased Security” shall mean a Related Security and all documents, instruments,
chattel paper, and general intangibles and all products and proceeds relating to or constituting
any or all of the foregoing.

     “Qualified Insurer” shall mean an insurance company duly qualified as such under the
laws of each state in which any Mortgaged Property is located, duly authorized and licensed in each
such state to transact the applicable insurance business and to write the insurance provided, and
approved as an insurer by Fannie Mae, Freddie Mac and Ginnie Mae and whose claims paying ability is
rated in the two highest rating categories by Best’s with respect to hazard and flood insurance

     “Qualified Originator” shall mean (a) Seller and (b) any other originator of Loans
that has been approved by Seller in accordance with its customary practices.

     “Reacquired Assets” shall have the meaning assigned thereto in Section 16.

     “Records” shall mean 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

15

 

specifically with respect to a Purchased Asset. Records shall include, without limitation,
the Notes, any Mortgages, the Mortgage Files, the Servicing File, and any other instruments
necessary to document or service a Loan that is a Purchased Loan, including, without limitation,
the complete payment and modification history of each Loan that is a Purchased Loan.

     “Reimbursement Bank” shall mean JPMorgan Chase Bank, N.A. or any successor thereto.

     “Related Credit Enhancement” shall have the meaning assigned thereto in Section 8(a)
hereof.

     “Related Loan” shall mean a Purchased Loan that is an Early Purchase Program Loan and
underlies a Participation Certificate or the Related Security, as the context may require.

     “Related Security” shall mean the Security backed by the Related Loans that is issued
in exchange for the related Purchased Participation Certificate on the related Conversion Date.

     “Removal Date” shall mean, with respect to any Purchased Participation Certificate,
the date on which any Related Loan is removed from the related Loan Pool for any reason.

     “Reportable Event” shall mean any of the events set forth in Section 4043(b) of ERISA,
other than those events as to which the thirty day notice period is waived under subsections .21, .22, .23, .24, .28, .29, .31 or .32 of PBGC Reg. § 4043; provided, that a failure to meet the
minimum funding standard of Section 412 of the Code or Sections 302 or 303 of ERISA, including,
without limitation, the failure to make on or before its due date a required installment under
Section 430(j) of the Code or Section 303(j) of ERISA, shall be a reportable event regardless of
the issuance of any waivers in accordance with Section 412(d) of the Code.

     “Repurchase Date” shall mean the date occurring on (i) the seventh (7th) day of each
month following the related Purchase Date (or if such date is not a Business Day, the following
Business Day), (ii) any other Business Day set forth in the related Transaction Notice and/or the
related Confirmation, (iii) with respect to a Purchased Security, the related Settlement Date, or
(iv) the date determined by application of Section 19, as applicable.

     “Repurchase Price” shall mean the price at which Purchased Assets are to be
transferred from Buyer to Seller upon termination of a Transaction, which will be determined in
each case (including Transactions terminable upon demand) as the sum of the outstanding Purchase
Price for such Purchased Assets and the Price Differential as of the date of such determination.

     “Required Documents” shall have the meaning set forth in the Custodial Agreement.

     “Requirement of Law” shall mean 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 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.

     “Rescission” shall mean the right of a Mortgagor to rescind the related Note and
related documents pursuant to applicable law.

     “Responsible Officer” shall mean, as to any Person, the chief executive officer or,
with respect to financial matters, the chief financial officer of such Person; provided, that in
the event any such officer is unavailable at any time he or she is required to take any action
hereunder, Responsible Officer shall mean

16

 

any officer authorized to act on such officer’s behalf as demonstrated by a certificate of
corporate resolution.

     “Restricted Payments” shall mean with respect to any Person, collectively, all
dividends or other distributions of any nature (cash, securities, assets or otherwise), and all
payments, by virtue of redemption or otherwise, on any class of equity securities (including,
without limitation, warrants, options or rights therefor) issued by such Person, whether such
securities are now or may hereafter be authorized or outstanding and any distribution in respect of
any of the foregoing, whether directly or indirectly.

     “Reuters Screen LIBOR01 Page” shall mean the display page currently so designated on
the Reuters Monitor Money Rates Service (or such other page as may replace that page on that
service for the purpose of displaying comparable rates or prices).

     “Rolled Transaction” shall have the meaning set forth in Section 3(g) hereof.

     “Section 404 Notice” shall mean 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 Loan to the related
Mortgagor within thirty (30) days after the date on which such Loan is sold or assigned to such
creditor.

     “Securities Repurchase Agreement” shall mean (i) the Master Repurchase Agreement,
dated as of March 2, 2007, between Seller and Buyer, together with all amendments, modifications,
supplements and restatements thereto; and (ii) the Master Repurchase Agreement, dated as of
September 30, 2007, between Seller and Greenwich Capital Markets, Inc. (now known as “RBS
Securities Inc.”), together with all amendments, modifications, supplements and restatements
thereto.

     “Security” shall mean a fully-modified pass-through mortgage-backed security that is
(i)(a) issued by Seller and fully guaranteed by Ginnie Mae or (b) issued and fully guaranteed with
respect to timely payment of interest and ultimate payment of principal by Fannie Mae or Freddie
Mac and (ii) evidenced by a book-entry account in a depository institution having book-entry
accounts at the applicable Depository and (iii) backed by a pool of Loans, in substantially the
principal amount and with substantially the other terms as specified with respect to such Security
in the related Takeout Commitment.

     “Selling System” shall mean the Freddie Mac automated system by which sellers and
servicers of mortgage loans to Freddie Mac transfer mortgage summary and record data or mortgage
accounting and servicing information from their computer system or service bureau to Freddie Mac,
as more fully described in the Freddie Mac Guide.

     “Servicer” shall mean the Seller in its capacity as servicer or master servicer of the
Loans.

     “Servicing Agreement” shall have the meaning provided in Section 43(c) hereof.

     “Servicing File” shall mean, with respect to each Loan, the file retained by Seller
(in its capacity as Servicer) consisting of all documents that a prudent originator and servicer
would have, including copies of the Loan Documents and all documents necessary to document and
service the Loans and any and all documents required to be delivered pursuant to any of the Program
Documents.

     “Servicing Records” shall have the meaning assigned thereto in Section 43(b) hereof.

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     “Servicing Rights” shall mean contractual, possessory or other rights of Seller or any
other Person, whether arising under the Servicing Agreement, the Custodial Agreement or otherwise,
to administer or service a Purchased Loan (including Loans underlying Purchased Participation
Certificates) or to possess related Servicing Records.

     “Servicing Transmission” shall mean a computer-readable magnetic or other electronic
format acceptable to the parties containing the information identified on Exhibit F.

     “Settlement Date” shall mean, with respect to a Related Security, the date specified
in the related Takeout Commitment on which the sale of such Security to the Takeout Investor will
be settled on a delivery-versus-payment basis.

     “Strict Compliance” shall mean the compliance of Seller and Loans with the
requirements of the Agency Guidelines, as applicable and as amended by any agreements between
Seller and the applicable Agency, sufficient to enable (i) FHA to issue the related FHA Mortgage
Insurance Contracts, (ii) VA to deliver the related VA Loan Guarantee Agreements, and (iii) Seller
to issue 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 Buyer by Seller and agreed to by Buyer, such agreements
shall be deemed, as between Seller and Buyer, not to amend the requirements of the applicable
Agency Guidelines.

     “Subservicer” shall have the meaning provided in Section 43(c) hereof.

     “Subsidiary” shall mean, 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.

     “Substitute Assets” has the meaning assigned thereto in Section 16.

     “Takeout Commitment” shall mean a fully assignable commitment of Seller to (a) sell
one or more identified Loans to a Takeout Investor that is an Agency, (b) sell one or more
identified Loans to a Takeout Investor other than an Agency, or (c) (i) swap one or more identified
Loans that are Early Purchase Program Loans with a Takeout Investor that is an Agency for a
Security, and (ii) sell the related Security to a Takeout Investor, and in each case, the
corresponding Takeout Investor’s commitment back to Seller to effectuate any of the foregoing, as
applicable.

     “Takeout Investor” shall mean (i) an Agency or (ii) other institution which has made a
Takeout Commitment and has not been rejected by Buyer.

     “Takeout Price” shall mean, with respect to a Purchased Asset, the purchase price to
be paid for such Asset by the Takeout Investor pursuant to the related Takeout Commitment.

     “Tangible Net Worth” shall mean, with respect to any Person at any date, (i) the net
worth of such Person and its consolidated Subsidiaries, determined in accordance with GAAP, minus
(ii) all intangibles determined in accordance with GAAP (including, without limitation, goodwill,
capitalized financing costs and capitalized administration costs but excluding originated and
purchased mortgage servicing rights)

18

 

and any and all advances to, investments in and receivables held from Affiliates; provided,
however, that the non-cash effect (gain or loss) of any mark-to-market adjustments made directly to
stockholders’ equity for fluctuation of the value of financial instruments as mandated under the
Statement of Financial Accounting Standards No. 133 (or any successor statement) shall be excluded
from the calculation of Tangible Net Worth.

     “Termination Date” shall mean February 26, 2011, or such earlier date on which this
Agreement shall terminate in accordance with the provisions hereof or by operation of law.

     “Total Liabilities” shall mean the total liabilities of the Seller and its
consolidated Subsidiaries, determined in accordance with GAAP, modified to exclude the amount of
any nonrecourse debt (i.e., any securitization debt) rather than to include such debt.

     “Trade Assignment” shall mean an assignment to Buyer of a forward trade between the
Takeout Investor and Seller with respect to one or more Assets (provided that with respect to a
Takeout Commitment relating to an Early Purchase Program Loan, such assignment shall be in
substantially in the form of Exhibit B hereto), 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.

     “Transaction Notice” shall mean a written request by Seller in the form of Exhibit
D hereto to enter into a Transaction, in a form to be mutually agreed upon between Seller and
Buyer, which is delivered to Buyer.

     “Trust Receipt” shall have the meaning provided in the Custodial Agreement.

     “Underwriting Fees” shall have the meaning assigned thereto in the Pricing Side
Letter.

     “Underwriting Guidelines” shall mean the underwriting guidelines of the Seller
attached as Exhibit E hereto in effect as of the date of this Agreement, as the same may be
amended, supplemented or otherwise modified from time to time in accordance with terms of this
Agreement. Any material amendments, supplements or modifications shall be effective upon the
Seller’s delivery of notification of such amendments, supplements or modifications to Buyer.

     “Uniform Commercial Code” shall mean the Uniform Commercial Code as in effect on the
date hereof 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 Items 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.

     “USC” shall mean the United State Code, as amended.

     “VA” shall mean the U.S. Department of Veterans Affairs, an agency of the United
States of America, or any successor thereto including the Secretary of Veterans Affairs.

     “VA Loan” shall mean a Mortgage Loan which is subject of a VA Loan Guaranty Agreement
as evidenced by a VA Loan Guaranty Agreement, or a Mortgage Loan which is a vender loan sold by the
VA.

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     “VA Loan Guaranty Agreement” shall mean the obligation of the United States to pay a
specific percentage of a Mortgage Loan (subject to a maximum amount) upon default of the Mortgagor
pursuant to the Servicemen’s Readjustment Act, together with all amendments, modifications,
supplements and restatements thereto.

     “VA Regulations” shall mean regulations promulgated by the U.S. Department of Veterans
Affairs pursuant to the Servicemen’s Readjustment Act, as amended, codified in 38 Code of Federal
Regulations, and other VA issuances relating to VA Loans, including related handbooks, circulars
and notices.

     “Wet Loan” shall mean a Loan that is underwritten in accordance with the Underwriting
Guidelines and does not contain all the required Loan Documents in the Mortgage File, which in
order to be deemed an Eligible Loan shall have the following additional characteristics: (a) such
Wet Loan is fully funded to the order of the related Mortgagor and closed and (b) the related
Rescission period has expired.

     (b) Accounting Terms and Determinations. Except as otherwise expressly provided
herein, all accounting terms used herein shall be interpreted, and all financial statements and
certificates and reports as to financial matters required to be delivered to the Buyer hereunder
shall be prepared, in accordance with GAAP.

     (c) Interpretation. The following rules of this subsection (c) apply unless the
context requires otherwise. 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 (including any Program Document) is to the agreement or document as amended, modified,
novated, supplemented or replaced, except to the extent prohibited thereby or by any Program
Document and in effect from time to time in accordance with the terms thereof. A reference to
legislation or to a provision of legislation includes a modification or re-enactment of it, a
legislative 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. 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”.

     Except where otherwise provided in this Agreement, any determination, consent, approval,
statement or certificate made or confirmed in writing with notice to Seller by Buyer or an
authorized officer of Buyer provided for in this Agreement is conclusive and binds the parties 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 (as so defined) in writing or a certificate,
notice, instrument or document, or any information recorded in computer disk form. Where Seller is
required to provide any document to Buyer under the terms of this Agreement, the relevant document
shall be provided in writing or printed form unless Buyer requests otherwise. At the request of
Buyer, the document shall be provided in computer disk form or both printed and computer disk form.

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     This Agreement is the result of negotiations among, and has been reviewed by counsel to, Buyer
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, Buyer may give or withhold, or give conditionally,
approvals and consents and may form opinions and make determinations at its absolute discretion.
Any requirement of good faith, discretion or judgment by Buyer shall not be construed to require
Buyer to request or await receipt of information or documentation not immediately available from or
with respect to Seller, a servicer of the Purchased Loans, any other Person or the Purchased Assets
themselves.

3. THE TRANSACTIONS

     (a) Subject to the terms and conditions of the Program Documents, Buyer shall, from time to
time as requested by Seller, enter into Transactions with an aggregate Purchase Price for all
Purchased Assets acquired by Buyer not to exceed the Maximum Aggregate Purchase Price. Unless
otherwise agreed, Seller shall request that Buyer enter into a Transaction by delivering (i) a
Transaction Notice substantially in the form of Exhibit D hereto or other form acceptable
to Buyer in its sole discretion (a “Transaction Notice”), appropriately completed, to Buyer
and an Asset Schedule to Buyer and Custodian; provided that in connection with any Transaction
Notice, Seller shall be deemed to have made the certifications and representations and warranties
set forth in Exhibit D hereto regardless of the form of such Transaction Notice and (ii)
the Mortgage File to Custodian for each Loan (other than a Wet Loan) proposed to be included in
such Transaction (whether or not such Loan is subject to a Participation Certificate), which,
Transaction Notice, Asset Schedule and Mortgage File must be received no later than 12:00 p.m. (New
York City time) on the requested Purchase Date. Such Transaction Notice shall clearly indicate
those Loans that are intended to be Wet Loans and Dry Loans and include a Asset Schedule in respect
of the Assets that Seller proposes to include in the related Transaction. Each Transaction Notice
shall specify the proposed Purchase Date, Purchase Price, Pricing Rate and Repurchase Date. In the
event that the parties hereto desire to enter into a Transaction on terms other than as set forth
in this Agreement and the Transaction Notice, Buyer shall deliver to Seller, in electronic or other
format, a “Confirmation” specifying such terms prior to entering into such Transaction, including,
without limitation, the Purchase Date, the Purchase Price, the Pricing Rate therefor and the
Repurchase Date. Following its receipt of a Transaction Notice, the Buyer shall deliver to the
Seller, in electronic or other format, a “Confirmation” confirming the terms thereof prior to
entering into such Transaction, including, without limitation, the Purchase Date, the Purchase
Price, the Pricing Rate therefor and the Repurchase Date, all of which terms shall be as specified
in the related Transaction Notice and the Program Documents. By entering into a Transaction with
Buyer, Seller consents to the terms set forth in any related Confirmation. Any such Confirmation
and the related Transaction Notice, together with this Agreement, shall constitute conclusive
evidence of the terms agreed to between Buyer and Seller with respect to the Transaction to which
the Transaction Notice and Confirmation, if any, 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.

     (b) Not later than 3:30 p.m. (New York City time) on each Business Day, the Custodian shall
deliver to the Buyer, via Electronic Transmission acceptable to the Buyer, one or more Trust
Receipts (with a Custodian Loan Transmission attached thereto) accompanied by an Exception Report,
showing the status of all Loans then held by the Custodian, including but not limited to the Wet
Loans and Dry Loans which are subject to Exceptions, and the time the related Loan Documents have
been released pursuant to Sections 6(a) or 6(b) of the Custodial Agreement. The original copies of
such Trust Receipts shall be delivered to JPMorgan Chase Bank at Four New York Plaza, Ground Floor,
Outsourcing Department, New York, New York 10004, Attention: Cheryl Brown for the account of The
Royal Bank

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of Scotland plc, telephone number (212) 623-3082, as agent for Buyer by overnight delivery
using a nationally recognized insured overnight delivery service.

     (c) (i) With respect to each Purchased Participation Certificate that is subject to a
Transaction hereunder, the Security that is issued on the related Conversion Date (provided it is
an Eligible Security) shall replace the Participation Certificate as the Purchased Asset, and from
and after the Conversion Date, the Purchased Asset subject to such Transaction shall be the
Purchased Security. For the avoidance of doubt, any Eligible Security that is issued with respect
to the Eligible Loans underlying a Purchased Participation Certificate shall, on the Conversion
Date, replace the Purchased Participation Certificate and automatically become subject to the
Transaction to which the Purchased Participation Certificate was subject.

          (ii) With respect to each Purchased Participation Certificate that is subject to a Transaction
hereunder, if a Removal Date shall occur with respect to a Related Loan underlying such Purchased
Participation Certificate, such Related Loan shall automatically become a Purchased Asset (other
than Early Purchase Program Loan) on and after such Removal Date subject to such Transaction
without any further act on the part of Seller or Buyer; provided that, such Related Loan shall meet
the criteria set forth in the definition of “Eligible Loan”.

     (d) Upon Seller’s request to enter into a Transaction pursuant to Section 3(a), Buyer shall,
assuming all conditions precedent set forth in this Section 3 and in Sections 9(a) and (b) have
been met, and provided no Default shall have occurred and be continuing, not later than 5:00 p.m.
(New York City time) on the requested Purchase Date purchase the Assets (insofar as such Assets are
Eligible Assets) included in the related Transaction Notice by transferring, via wire transfer
(pursuant to wire transfer instructions provided by Seller on or prior to such Purchase Date), the
Purchase Price in immediately available funds. Seller acknowledges and agrees that the Purchase
Price paid in connection with any Purchased Loan that is purchased in any Transaction includes a
mutually negotiated premium allocable to the portion of such Purchased Assets that constitutes the
related Servicing Rights.

     (e) Anything herein to the contrary notwithstanding, if, on or prior to the determination of
any LIBO Base Rate:

     (i) Buyer determines, which determination shall be conclusive, that quotations of
interest rates for the relevant deposits referred to in the definition of “LIBO Base Rate”
in Section 2 are not being provided in the relevant amounts or for the relevant maturities
for purposes of determining rates of interest for Transactions as provided herein; or

     (ii) it becomes unlawful for Buyer to enter into Transactions with a Pricing Rate based
on the LIBO Base Rate;

then Buyer shall give Seller prompt notice thereof and, so long as such condition remains in
effect, Buyer shall be under no obligation to purchase Assets hereunder, and Seller shall, at its
option, either repurchase such Assets or pay a Pricing Rate at a rate per annum as reasonably
determined by Buyer taking into account the increased cost to Buyer of purchasing and holding the
Assets.

     (f) Except as provided in Section 3(g), Seller shall repurchase, at the applicable Repurchase
Price, the related Purchased Assets from Buyer on each related Repurchase Date, against the Buyer’s
re-transfer to the Seller of the related Purchased Assets. Each obligation to repurchase exists
without regard to any prior or intervening liquidation or foreclosure with respect to any Purchased
Asset. Seller is obligated to obtain the Purchased Assets from Buyer or its designee (including
the Custodian) at Seller’s expense on (or after) the related Repurchase Date.

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     (g) Provided that the applicable conditions in Sections 9(a) and (b) have been satisfied, on
each related Repurchase Date, each Purchased Asset shall automatically become subject to a new
Transaction unless the Buyer is notified not later than 11:00 a.m. New York City time at least two
(2) Business Day prior to any such Repurchase Date (a “Rolled Transaction”). Buyer shall
purchase the related Eligible Assets pursuant to the procedures set forth in this Section 3(g).
For each Rolled Transaction, unless otherwise agreed, (y) the accrued and unpaid Price Differential
shall be settled in cash on each related Repurchase Date, and (z) the Pricing Rate shall be as set
forth in the Pricing Side Letter.

     (h) If the Seller intends to repurchase any Purchased Assets on any day which is not a
Repurchase Date, the Seller shall give two (2) Business Days’ prior written notice thereof to the
Buyer (if such repurchase is in an amount greater than $20,000,000) or by 2:00 p.m. (New York City
time) on the date of the repurchase (in all other cases). If such notice is given, the Repurchase
Price specified in such notice shall be due and payable on the date specified therein, together
with the Price Differential to such date on the amount prepaid without any prepayment penalty.
Such early repurchases shall be in an aggregate principal amount of at least $100,000.

     (i) On or prior to the Purchase Date in respect of any Early Purchase Program Loan, Seller
shall electronically transmit to the related Agency (and shall deliver to Buyer by overnight
courier) a fully completed copy of (x) Form HUD 11705 (Schedule of Subscribers), (y) Fannie Mae
Form 2014 (Delivery Schedule) or (z) a copy of Freddie Mac Form 381 (Contract Delivery Summary) and
a copy of Freddie Mac Form 939 (Settlement and Information Multiple Registration Form)(each, an
“Applicable Agency Schedule”), as the case may be, designating the Buyer as the party
authorized to receive the Related Security, executed by the Seller and relating to the Related
Loans to be backed by such Related Security.

     (j) If any Requirement of Law (other than with respect to any amendment made to the Buyer’s
certificate of incorporation and by-laws or other organizational or governing documents) adopted
after the date hereof or any change in the interpretation or application thereof or compliance by
the Buyer with any request or directive (whether or not having the force of law) from any central
bank or other Governmental Authority made subsequent to the date hereof:

     (i) shall subject the Buyer to any tax of any kind whatsoever with respect to this
Agreement or any Assets purchased pursuant to it (excluding net income taxes) or change
the basis of taxation of payments to the Buyer in respect thereof;

     (ii) shall impose, modify or hold applicable any reserve, special deposit,
compulsory advance or similar requirement against assets held by deposits or other
liabilities in or for the account of Transactions or extensions of credit by, or any
other acquisition of funds by any office of the Buyer which is not otherwise included in
the determination of the LIBO Base Rate hereunder;

     (iii) shall impose on the Buyer any other condition;

and the result of any of the foregoing is to increase the cost to the Buyer, by an amount which the
Buyer deems to be material, of effecting or maintaining purchases hereunder, or to reduce any
amount receivable hereunder in respect thereof, then, in any such case, the Seller shall promptly
pay the Buyer such additional amount or amounts as will compensate the Buyer for such increased
cost or reduced amount receivable thereafter incurred.

     If the Buyer shall have determined that the adoption of or any change in any Requirement of
Law (other than with respect to any amendment made to the Buyer’s certificate of incorporation and
by-laws or other organizational or governing documents) regarding capital adequacy or in the
interpretation or

23

 

application thereof or compliance by the Buyer or any corporation controlling the Buyer with
any request or directive regarding capital adequacy (whether or not having the force of law) from
any Governmental Authority made subsequent to the date hereof shall have the effect of reducing the
rate of return on the Buyer’s or such corporation’s capital as a consequence of its obligations
hereunder to a level below that which the Buyer or such corporation but for such adoption, change
or compliance (taking into consideration the Buyer’s or such corporation’s policies with respect to
capital adequacy) by an amount deemed by the Buyer to be material, then from time to time, the
Seller shall promptly pay to the Buyer such additional amount or amounts as will thereafter
compensate the Buyer for such reduction.

     If the Buyer becomes entitled to claim any additional amounts pursuant to this subsection, it
shall promptly notify the Seller of the event by reason of which it has become so entitled. Buyer
shall not be entitled to claim any additional amounts that arose more than ninety (90) days prior
to the date such notice is received by the Seller. A certificate as to any additional amounts
payable pursuant to this subsection submitted by the Buyer to the Seller shall be conclusive in the
absence of manifest error.

4. PAYMENTS; COMPUTATION; COMMITMENT FEES

     (a) Payments. Except to the extent otherwise provided herein, all payments to be made
by the Seller under this Agreement shall be made in Dollars, in immediately available funds,
without deduction, set-off or counterclaim, to the Buyer at the following account maintained by the
Buyer at JPMorgan Chase Bank Account Number 140095961, For the A/C of The Royal Bank of Scotland
plc, ABA# 021000021, Attn: ABO, not later than 1:00 p.m., New York City time, on the date on which
such payment shall become due (each such payment made after such time on such due date to be deemed
to have been made on the next succeeding Business Day). The Seller acknowledges that it has no
rights of withdrawal from the foregoing account.

     (b) Computations. The Price Differential shall be computed on the basis of a 360-day
year for the actual days elapsed (including the first day but excluding the last day) occurring in
the period for which payable.

     (c) Commitment Fee. The Seller agrees to pay to the Buyer a commitment fee equal to
the Commitment Fee Amount (the “Commitment Fee”), such payment to be made in Dollars, in
immediately available funds, without deduction, set off or counterclaim, to the Buyer on the
Effective Date. The Buyer may, in its sole discretion, net such Commitment Fee from the proceeds
of any Purchase Price paid to Seller.

5. TAXES; TAX TREATMENT

     (a) All payments made by the 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, excluding income
taxes, branch profits taxes, franchise taxes or any other tax imposed on the net income by the
United States, a state or a foreign jurisdiction under the laws of which the Buyer is organized or
of its applicable lending office, or any political subdivision thereof (all such non-excluded
taxes, collectively, “Taxes”), all of which shall be paid by the Seller for its own account
not later than the date when due. If the 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 Buyer, promptly, original
tax receipts and other evidence satisfactory to Buyer of the payment when due of the full amount of
such Taxes; and (d) pay to the Buyer such additional amounts as may be necessary so that such Buyer
receives,

24

 

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, the 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 the United States or any taxing authority thereof or
therein 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) The Seller agrees to indemnify the Buyer 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 5, and any liability (including
penalties, interest and expenses) arising therefrom or with respect thereto, provided that the
Buyer shall have provided the Seller with evidence, reasonably satisfactory to the Seller, of
payment of Taxes or Other Taxes, as the case may be.

     (d) Any Buyer that is not incorporated under the laws of the United States, any State thereof,
or the District of Columbia (a “Foreign Buyer”) shall provide the Seller with properly
completed United States Internal Revenue Service (“IRS”) Form W-8BEN or W-8ECI or any
successor form prescribed by the IRS, certifying that such Foreign Buyer is entitled to benefits
under an income tax treaty to which the United States is a party which eliminates withholding tax
on payments of interest 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 on or prior to
the date upon which each such Foreign Buyer becomes a Buyer. Each Foreign Buyer will resubmit the
appropriate form 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 Foreign Buyer as defined in Treas. Reg. Section 1.1441-1(e)(4)(ii)(D). For any period with
respect to which a Foreign Buyer has failed to provide the Seller with the appropriate form or
other relevant document pursuant to this Section 5(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), such Foreign Buyer shall not be entitled to any “gross-up” of Taxes under Section
5(a) or indemnification under Section 5(c) with respect to Taxes imposed by the United States;
provided, however, that should a Foreign Buyer, which is otherwise exempt from a
withholding tax, become subject to Taxes because of its failure to deliver a form required
hereunder, the Seller shall, at such Foreign Buyer’s expense, take such steps as such Foreign Buyer
shall reasonably request to assist such Foreign Buyer 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 5 shall survive the termination of
this Agreement. Nothing contained in this Section 5 shall require Buyer to make available any of
its 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 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.

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6. MARGIN MAINTENANCE

     (a) If at any time either (i) the aggregate Market Value of all Purchased Assets subject to
all Transactions is less than the aggregate MV Margin Amount for all such Transactions, or (ii) the
aggregate unpaid principal balance of the Purchased Assets for all Transactions is less than the
aggregate Par Margin Amount for all such Transactions, in each case as determined by Buyer, (a
“Margin Deficit”) shall exist. If a Margin Deficit exists Buyer may require Seller by
notice to transfer to Buyer cash or at the Seller’s option (and provided Seller has additional
Eligible Assets), additional Eligible Assets (“Additional Purchased Assets”) as required in
Section 6(c) hereof, so that both (x) the cash and aggregate Market Value of the Purchased Assets,
including any such Additional Purchased Assets, will thereupon equal or exceed such aggregate MV
Margin Amount, and (y) the cash and unpaid principal balance of such Purchased Assets, including
any such Additional Purchased Assets and Purchased Assets, will therefore equal or exceed such
aggregate Par Margin Amount (either requirement, a “Margin Call”). Any cash paid by Seller
to reduce a Margin Deficit shall be applied to reduce the then outstanding aggregate Purchase
Price.

     (b) Notice required pursuant to Section 6(a) may be given (i) by any means provided in Section
21 hereof, (ii) via electronic mail which may also include an excel spreadsheet, or (iii) in such
other format acceptable to Buyer in its sole discretion. Any notice given on a Business Day
preceding 12:00 p.m. (New York City time) shall be met, and the related Margin Call satisfied, no
later than 5:00 p.m. (New York City time) on the same Business Day. Any notice given on a Business
Day following the 12:00 p.m. (New York City time) shall be met, and the related Margin Call
satisfied, no later than 5:00 p.m. (New York City time) on the following Business Day. The failure
of Buyer, on any one or more occasions, to exercise its rights under this Section 6, shall not
change or alter the terms and conditions to which this Agreement is subject or limit the right of
Buyer to do so at a later date. Seller and Buyer each agree that a failure or delay by Buyer to
exercise its rights hereunder shall not limit or waive Buyer’s rights under this Agreement or
otherwise existing by law or in any way create additional rights for Seller.

7. INCOME PAYMENTS

     (a) 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, such Income shall be the property of
Buyer, provided that any Income received by Seller while the related Transaction is
outstanding shall be deemed to be held by Seller solely in trust for Buyer in the Collection
Account pending the next following Repurchase Date. Seller shall remit or cause to be remitted to
the Collection Account, all Income collected or received on any Purchased Asset within two (2)
Business Days of collection or receipt thereof. Seller shall have the right to remit such Income
to the Collection Account net of any amounts allocable to the servicing fee to which the Servicer
is entitled. Provided no Default has occurred, Buyer shall, as the parties may agree with respect
to any Transaction (or, in the absence of any such agreement, as Buyer shall reasonably determine
in its sole discretion), on the Repurchase Date following the date any Income is received by Buyer
(or a servicer on its behalf) either (i) transfer (or permit the servicer to transfer) to Seller
such Income with respect to any Purchased Assets subject to such Transaction, or (ii) if a Margin
Deficit then exists, apply the Income payment to reduce the amount, if any, to be transferred to
Buyer by Seller upon termination of such Transaction. Buyer shall not be obligated to take any
action pursuant to the preceding sentences (A) to the extent that such action would result in the
creation of a Margin Deficit, unless prior thereto or simultaneously therewith Seller transfers to
Buyer cash or Additional Purchased Assets sufficient to eliminate such Margin Deficit, or (B) if an
Event of Default with respect to Seller has occurred and is then continuing at the time such Income
is paid.

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8. SECURITY INTEREST; BUYER’S APPOINTMENT AS ATTORNEY-IN-FACT

     (a) Seller and Buyer intend that the Transactions hereunder be sales to Buyer of the Purchased
Assets and not loans from Buyer to Seller secured by the Purchased Assets. However, in order to
preserve Buyer’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 Buyer a first priority security
interest in all of Seller’s rights, title and interest in and to the following property, whether
now existing or hereafter acquired: (i) all Purchased Assets identified on a Transaction Notice
delivered by the Seller to the Buyer and the Custodian from time to time, (ii) all related Loan
Documents, including without limitation all promissory notes, and all Records, and original
certificates evidencing such Purchased Assets, and any other collateral pledged or otherwise
relating to such Purchased Assets, together with all files, material documents, instruments,
surveys (if available), certificates, correspondence, appraisals, computer records, computer
storage media, Loan accounting records and other books and records relating thereto, (iii) all
mortgage guaranties and insurance (issued by governmental agencies or otherwise) and any mortgage
insurance certificate or other document evidencing such mortgage guaranties or insurance relating
to any Purchased Assets and all claims and payments thereunder and all rights of Seller to receive
from any third party or to take delivery of any of the foregoing, (iv) all other insurance policies
and insurance proceeds relating to any Purchased Assets or the related Mortgaged Property and all
rights of Seller to receive from any third party or to take delivery of any of the foregoing, (v)
any purchase agreements or other agreements or contracts constituting any or all of the foregoing,
(vi) all purchase or take-out commitments relating to or constituting any or all of the foregoing
and all rights to receive documentation relating thereto, (vii) all “accounts”, “chattel paper”,
“commercial tort claims”, “deposit accounts”, “documents,” “equivalent”, “general intangibles”,
“goods”, “instruments”, “inventory”, “investment property”, “letter of credit rights”, and
“securities’ accounts” as each of those terms is defined in the Uniform Commercial Code and all
cash and Cash Equivalents and all products and proceeds relating to or constituting any or all of
the foregoing; (viii) all Takeout Commitments and Trade Assignments (including the rights to
receive the related Takeout Price and the Related Security as evidenced by such Trade Assignments);
(ix) all FHA Mortgage Insurance Contracts and VA Loan Guaranty Agreements relating to such
Purchased Assets; (x) all Interest Rate Protection Agreements relating to any or all of the
foregoing; (xi) all the related Servicing Records and the related Servicing Rights, (xii) all
Income relating to such Purchased Assets, (xiii) all interests in real property collateralizing any
Purchased Assets, (xiv) the Collection Account, (xv) all rights of Seller to receive from any third
party or to take delivery of any Servicing Records or other documents which constitute a part of
the Mortgage File or Servicing File, and (xvi) any and all replacements, substitutions,
distributions on or proceeds of any or all of the foregoing (collectively the “Purchased
Items”).

     Seller acknowledges that it has no rights to the Servicing Rights related to any of the
Purchased Loans, whether or not subject to a Participation Certificate. Without limiting the
generality of the foregoing and for the avoidance of doubt, in the event that Seller is deemed to
retain any residual Servicing Rights, Seller grants, assigns and pledges to Buyer a first priority
security interest in all of its rights, title and interest in and to the Servicing Rights as
indicated hereinabove. In addition, Seller, in its capacity as Servicer, further grants, assigns
and pledges to Buyer a first priority security interest in and to all documentation and rights to
receive documentation related to the Servicing Rights and the servicing of each of the Purchased
Loans, and all Income related to the Purchased Assets received by Seller, in its capacity as
Servicer, and all rights to receive such Income, and all products, proceeds and distributions
relating to or constituting any or all of the foregoing (collectively, and together with the pledge
of Servicing Rights in the immediately preceding sentence, the “Related Credit
Enhancement”). The Related Credit Enhancement is hereby pledged as further security for
Seller’s Obligations to Buyer hereunder.

27

 

     (b) Seller acknowledges and agrees that its rights with respect to the Purchased Items
(including without limitation, any security interest Seller may have in the Purchased Assets and
any other collateral granted by Seller to Buyer pursuant to any other agreement) are and shall
continue to be at all times junior and subordinate to the rights of Buyer hereunder.

     (c) At any time and from time to time, upon the written request of the Buyer, and at the sole
expense of the Seller, the Seller will promptly and duly execute and deliver, or will promptly
cause to be executed and delivered, such further instruments and documents and take such further
action as the Buyer may reasonably request for the purpose of obtaining or preserving the full
benefits of this Agreement and of the rights and powers herein granted, including, without
limitation, the filing of any financing or continuation statements under the Uniform Commercial
Code in effect in any jurisdiction with respect to the Purchased Items and the liens created
hereunder and under any other Program Documents. The Seller also hereby authorizes the Buyer to
file any such financing or continuation statement to the extent permitted by applicable law. A
carbon, photographic or other reproduction of this Agreement shall be sufficient as a financing
statement for filing in any jurisdiction. This Agreement shall constitute a security agreement
under applicable law.

     (d) The Seller shall not (i) change its name, identity or corporate structure (or the
equivalent) or change the location where it maintains its records with respect to the Purchased
Items, or (ii) reincorporate or reorganize under the laws of another jurisdiction unless it shall
have given the Buyer at least thirty (30) days prior written notice thereof and shall have
delivered to the Buyer all Uniform Commercial Code financing statements and amendments thereto as
the Buyer shall request and taken all other actions deemed reasonably necessary by the Buyer to
continue its perfected status in the Purchased Items with the same or better priority.

     (e) Seller hereby irrevocably constitutes and appoints Buyer 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 Buyer’s discretion, for the purpose of carrying out the terms of this
Agreement, including without limitation, protecting, preserving and realizing upon the Purchased
Items, to take any and all appropriate action and to execute any and all documents and instruments
which may be necessary or desirable to accomplish the purposes of this Agreement, including without
limitation, to protect, preserve and realize upon the Purchased Items, to file such financing
statement or statements relating to the Purchased Assets and the Purchased Items as Buyer at its
option may deem appropriate, and, without limiting the generality of the foregoing, Seller hereby
gives Buyer the power and right, on behalf of Seller, without assent by, but with notice to,
Seller, if and only if an Event of Default shall have occurred and be continuing, to do the
following:

     (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 Items and to file any claim or
to take any other action or proceeding in any court of law or equity or otherwise deemed
appropriate by Buyer for the purpose of collecting any and all such moneys due with
respect to any Purchased Items whenever payable;

     (ii) to pay or discharge taxes and Liens levied or placed on or threatened against
the Purchased Items;

     (iii) (A) to direct any party liable for any payment under any Purchased Items to
make payment of any and all moneys due or to become due thereunder directly to Buyer or
as Buyer shall direct, including, without limitation, to send “goodbye” letters on
behalf of Seller

28

 

and any applicable Servicer and Section 404 Notices; (B) 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
Items; (C) to sign and endorse any invoices, assignments, verifications, notices and
other documents in connection with any Purchased Items; (D) to commence and prosecute
any suits, actions or proceedings at law or in equity in any court of competent
jurisdiction to collect the Purchased Items or any proceeds thereof and to enforce any
other right in respect of any Purchased Items; (E) to defend any suit, action or
proceeding brought against Seller with respect to any Purchased Items; (F) to settle,
compromise or adjust any suit, action or proceeding described in clause (E) above and,
in connection therewith, to give such discharges or releases as Buyer may deem
appropriate; and (G) generally, to sell, transfer, pledge and make any agreement with
respect to or otherwise deal with any Purchased Items as fully and completely as though
Buyer were the absolute owner thereof for all purposes, and to do, at Buyer’s option and
Seller’s expense, at any time, and from time to time, all acts and things which Buyer
deems necessary to protect, preserve or realize upon the Purchased Items and Buyer’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 Buyer, if an Event of Default shall have occurred and be continuing,
from time to time, to execute, in connection with any sale provided for in Section 19 hereof, any
endorsements, assignments or other instruments of conveyance or transfer with respect to the
Purchased Items.

     (f) The powers conferred on Buyer hereunder are solely to protect Buyer’s interests in the
Purchased Items and shall not impose any duty upon it to exercise any such powers. Buyer shall be
accountable only for amounts that it actually receives as a result of the exercise of such powers,
and neither it nor any of its officers, directors, employees or agents shall be responsible to
Seller for any act or failure to act hereunder, except for its or their own gross negligence or
willful misconduct.

     (g) If the Seller fails to perform or comply with any of its agreements contained in the
Program Documents and the Buyer may itself perform or comply, or otherwise cause performance or
compliance, with such agreement, the reasonable out-of-pocket expenses of the Buyer incurred in
connection with such performance or compliance, together with interest thereon at a rate per annum
equal to the Post-Default Rate, shall be payable by the Seller to the Buyer on demand and shall
constitute Obligations.

     (h) The Buyer’s duty with respect to the custody, safekeeping and physical preservation of the
Purchased Items in its possession, under Section 9-207 of the Uniform Commercial Code or otherwise,
shall be to deal with it in the same manner as the Buyer deals with similar property for its own
account. Neither the Buyer nor any of its directors, officers or employees shall be liable for
failure to demand, collect or realize upon all or any part of the Purchased Items or for any delay
in doing so or shall be under any obligation to sell or otherwise dispose of any Purchased Items
upon the request of the Seller or otherwise.

     (i) All authorizations and agencies herein contained with respect to the Purchased Items are
irrevocable and powers coupled with an interest.

29

 

9. CONDITIONS PRECEDENT

     (a) As conditions precedent to the initial Transaction, Buyer shall have received on or before
the date on which such initial Transaction is consummated the following, in form and substance
satisfactory to Buyer and duly executed by each party thereto (as applicable):

     (i) Program Documents. The Program Documents duly executed and delivered by
the Seller thereto and being in full force and effect, free of any modification, breach
or waiver.

     (ii) Organizational Documents. A good standing certificate and certified
copies of the charter and by-laws (or equivalent documents) of the Seller in each case
dated as of a recent date, but in no event more than ten (10) days prior to the date of
such initial Transaction and of all corporate or other authority for the Seller and,
with respect to the execution, delivery and performance of the Program Documents and
each other document to be delivered by the Seller and from time to time in connection
herewith (and the Buyer may conclusively rely on such certificate until it receives
notice in writing from the Seller to the contrary).

     (iii) Incumbency Certificate. An incumbency certificate of the secretary
of Seller certifying the names, true signatures and titles of their respective
representatives duly authorized to request Transactions hereunder and to execute the
Program Documents and the other documents to be delivered thereunder to which it is a
party;

     (iv) Legal Opinion. A bankruptcy opinion of counsel to the Seller, in form
and substance reasonably satisfactory to Buyer.

     (v) Filings, Registrations, Recordings. (i) Any documents (including,
without limitation, financing statements) required to be filed, registered or recorded
in order to create, in favor of the Buyer, a perfected, first-priority security interest
in the Purchased Items, subject to no Liens other than those created hereunder, shall
have been properly prepared and executed for filing (including the applicable
county(ies) if the Buyer determines such filings are necessary in its reasonable
discretion), registration or recording in each office in each jurisdiction in which such
filings, registrations and recordations are required to perfect such first-priority
security interest; and (ii) Uniform Commercial Code lien searches, dated as of a recent
date, in no event more than fourteen (14) days prior to the date of such initial
Transaction, in such jurisdictions as shall be applicable to the Seller and the
Purchased Items, the results of which shall be satisfactory to the Buyer.

     (vi) Fees and Expenses. The Buyer shall have received all fees (including,
without limitation, the Commitment Fee) and expenses required to be paid by the Seller
on or prior to the initial Purchase Date, which fees and expenses may be netted out of
any purchase proceeds paid by the Buyer hereunder.

     (vii) Financial Statements. The Buyer shall have received the financial
statements referenced in Section 12(b).

     (viii) Underwriting Guidelines. The Buyer and the Seller shall have agreed
upon the Seller’s current Underwriting Guidelines for Loans and the Buyer shall have
received a copy thereof certified by a Responsible officer of the Seller.

30

 

     (ix) Consents, Licenses, Approvals, etc. The Buyer shall have received
copies certified by the Seller of all consents, licenses and approvals, if any, required
in connection with the execution, delivery and performance by the Seller of, and the
validity and enforceability of, the Loan Documents, which consents, licenses and
approvals shall be in full force and effect.

     (x) Insurance. The Buyer shall have received evidence in form and substance
satisfactory to the Buyer showing compliance by the Seller as of such initial Purchase
Date with Section 13(v) hereof.

     (xi) Establishment of Accounts. Buyer shall have received evidence
satisfactory to it that Seller has caused the Collection Account to be established at a
banking institution satisfactory to Buyer in its sole discretion and a Collection
Account Control Agreement has been entered into with respect to such Collection Account.

     (xii) Other Documents. The Buyer shall have received such other documents
as the Buyer or its counsel may reasonably request.

     (xiii) Approvals. Seller shall have provided evidence, satisfactory to
Buyer, that Seller has all Approvals and such Approvals are in good standing.

     (b) The obligation of Buyer to enter into each Transaction pursuant to this Agreement
(including the initial Transaction) is subject to the following further conditions precedent, both
immediately prior to any Transaction and also after giving effect thereto and to the intended use
thereof:

     (i) No Event of Default shall have occurred and be continuing nor any event shall
have occurred and be continuing that, without regard to the applicable time frame
contained in Section 18 hereof, would otherwise be an Event of Default hereunder

     (ii) With respect to all Transactions other than Rolled Transactions, no Default
shall have occurred and be continuing.

     (iii) Both immediately prior to entering into such Transaction and also after
giving effect thereto and to the intended use of the proceeds thereof, the
representations and warranties made by the Seller in Section 12 and Schedule 1 hereof,
and in each of the other Program Documents, shall be true and complete on and as of the
Purchase Date in all material respects (in the case of the representations and
warranties in Section 12(v), 12(w) and Schedule 1, solely with respect to Loans which
have not been repurchased by Seller) with the same force and effect as if made on and as
of such date (or, if any such representation or warranty is expressly stated to have
been made as of a specific date, as of such specific date).

     (iv) The then aggregate outstanding Purchase Price for all Purchased Assets, when
added to the Purchase Price for the requested Transaction, shall not exceed the Maximum
Aggregate Purchase Price.

     (v) Subject to the Buyer’s right to perform one or more Due Diligence Reviews
pursuant to Section 44 hereof, the Buyer shall have completed its Due Diligence Review
of the Loan Documents for each Loan subject to a Transaction hereunder and such other
documents, records, agreements, instruments, Mortgaged Properties or information
relating to such Loans as the Buyer in its reasonable discretion deems appropriate to
review and such review shall be satisfactory to the Buyer in its reasonable discretion.

31

 

     (vi) Buyer or its designee shall have received on or before the day of a
Transaction:

	 	(A)	 	with respect to any Purchased Assets (unless otherwise
specified in this Agreement), the following, in form and substance reasonably
satisfactory to Buyer and (if applicable) duly executed:

	 	(1)	 	The Transaction Notice and Asset Schedule with
respect to such Purchased Assets, delivered pursuant to Section 3(a);
	 
	 	(2)	 	A Trust Receipt, executed by the Custodian,
with an Asset Schedule attached thereto;
	 
	 	(3)	 	Such certificates, customary opinions of
counsel or other documents as Buyer 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 Buyer in its commercially reasonable
judgment; and
	 
	 	(4)	 	If any of the Loans that are proposed to be
sold will be serviced by a Subservicer, the Buyer shall have received
an Instruction Letter in the form attached hereto as Exhibit I
executed by each Seller and such Subservicer, together with a completed
Schedule 1 attached thereto and the related Servicing Agreement, or, if
an Instruction Letter executed by such Subservicer shall have been
delivered to Buyer in connection with a prior Transaction, the Seller
shall instead deliver to such Subservicer and Buyer an updated Schedule
1.

	 	(B)	 	If any of the Loans that are proposed to be sold are Early
Purchase Program Loans, for each such Loan: (i) a fully completed and executed
Eligible Participation Certificate, (ii) evidence that the Applicable Agency
Schedule has been delivered to the applicable Agency, designating Buyer as the
party authorized to receive the related Securities, and has been duly executed
by Seller, (iii) a copy of the Form HUD 11706 (Schedule of Pooled Mortgages)
and the reverse side of Form HUD 11706 (Initial Certification), Fannie Mae Form
2005 (Schedule of Mortgages with Magnetic Tape Format Instructions), or Freddie
Mac Form 11 (Mortgage Submission Schedule) and Freddie Mac Form 13SF (Mortgage
Submission Voucher) or Selling System computer tape, as applicable, that has
been delivered to the applicable Agency and (iv) a Notice of Certification from
the Custodian in accordance with the terms of the Custodial Agreement; and
	 
	 	(C)	 	If any of the Loans that are proposed to be sold are Agency
Takeout Loans, Early Purchase Program Loans, or Non-Conforming Loans, for each
such Loan, a duly executed Trade Assignment together with a copy of the Takeout
Commitment with respect to the Related Security.

     (vii) In the event that the Loans to be purchased would cause the aggregate
outstanding principal balance of Purchased Assets secured by Mortgaged Property from any
state to exceed 20% of the aggregate outstanding principal balance of Loans subject to

32

 

Transactions hereunder, then the Seller shall, upon request by the Buyer, deliver
an opinion of counsel acceptable to the Buyer in such state.

     (viii) With respect to any Loan that was funded in the name of or acquired by a
Qualified Originator which is an Affiliate of the Seller (other than with respect to any
Assets which are subject to the initial Transaction hereunder and acquired by the Seller
from CTX Mortgage Company LLC), the Buyer may, in its sole discretion, require the
Seller to provide evidence sufficient to satisfy the Buyer that such Loan was acquired
in a legal sale, including without limitation, an opinion, in form and substance and
from an attorney, in both cases, acceptable to the Buyer in its sole discretion, that
such Loan was acquired in a legal sale, if the aggregate outstanding principal balance
of all such Assets that are Purchased Assets would exceed 10% of the aggregate
outstanding principal balance of all Purchased Assets then subject to Transactions
hereunder.

     (ix) No event shall have occurred beyond the control of Buyer which Buyer
reasonably determines may result in its inability to perform its obligations under this
Agreement including, without limitation, acts of God, strikes, lockouts, riots, acts of
war or terrorism, epidemics, nationalization, expropriation, currency restrictions,
fire, communication line failures, computer viruses, power failures, earthquakes or
other disasters of a similar nature to the foregoing, or market closures or a general
moratorium on commercial banking activities in New York shall have been declared by
either federal or New York State authorities.

     (x) If any Loans to be purchased hereunder were acquired by the Seller, such Loans
shall conform to the Seller’s Underwriting Guidelines or the Buyer shall have received
Underwriting Guidelines for such Loans acceptable to the Buyer in its discretion.

     (xi) If any Purchased Assets are serviced by a Subservicer, the Buyer shall have
received, no later than 10:00 a.m. three (3) days prior to the requested Purchase Date,
an Instruction Letter, executed by the Seller, with the related Servicing Agreement
attached thereto, which such Servicing Agreement shall be in form and substance
acceptable to Buyer.

     (xii) In no event shall Buyer be required to enter into (A) more than two (2)
Transactions in which the Buyer purchases Assets from Seller, and one (1) Transaction in
which the Seller repurchases Purchased Assets from the Buyer in any one Business Day,
nor (B) any Transaction whose Purchase Price would be less than $1,000,000.

     (xiii) Buyer shall have determined that all actions necessary or, in the reasonable
opinion of Buyer, desirable to maintain the Buyer’s perfected interest in the Purchased
Assets and other Purchased Items have been taken, including, without limitation, duly
filed Uniform Commercial Code financing statements on Form UCC-1.

     (xiv) Seller shall have paid to Buyer all fees and expenses owed to Buyer in
accordance with this Agreement and any other Program Document.

     (xv) Buyer or its designee shall have received any other documents reasonably
requested by Buyer.

     (xvi) There is no Margin Deficit at the time immediately prior to entering into a
new Transaction.

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10. 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, unless a Default or Event of Default shall have occurred
and be continuing, then (a) Buyer shall be deemed to have terminated any security interest that
Buyer may have in such Purchased Asset and any Purchased Items solely related to such Purchased
Asset and (b) with respect to such Purchased Asset, Buyer shall direct Custodian to release such
Purchased Asset and any Purchased Items solely related to such Purchased Asset to Seller unless
such release and termination would give rise to or perpetuate a Margin Deficit.

     If such release and termination gives rise to or perpetuates a Margin Deficit, Buyer shall
notify Seller of the amount thereof and Seller shall thereupon satisfy the Margin Call in the
manner specified in Section 6.

11. RELIANCE

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

12. REPRESENTATIONS AND WARRANTIES

     The Seller represents and warrants to the Buyer that throughout the term of this Agreement:

     (a) Existence. The Seller (a) is a limited liability company duly organized, validly
existing and in good standing under the laws of the State of Delaware, (b) has all requisite
corporate or other power, and has all governmental licenses, authorizations, consents and
approvals, necessary to own its assets and carry on its business as now being or as proposed to be
conducted, except where the lack of such licenses, authorizations, consents and approvals would not
be reasonably likely to have a Material Adverse Effect, (c) is qualified to do business and is in
good standing in all other jurisdictions in which the nature of the business conducted by it in the
name of Nationstar Mortgage LLC or Champion Mortgage Company or other “d/b/a” makes such
qualification necessary, except where failure so to qualify would not be reasonably likely (either
individually or in the aggregate) to have a Material Adverse Effect, and (d) is in compliance in
all material respects with all Requirements of Law.

     (b) Financial Condition. The Seller has heretofore furnished to the Buyer a copy of
its unaudited consolidated balance sheets and the unaudited consolidated balance sheets of its
consolidated Subsidiaries, each as at November 30, 2009. The Seller has also heretofore furnished
to the Buyer the related consolidated statements of income and retained earnings and of cash flows
for the Seller and its consolidated Subsidiaries for the period ending November 30, 2009, setting
forth comparative form the figures for the previous year. All such financial statements are
complete and correct in all material respects and fairly present the consolidated financial
condition of the Seller and its Subsidiaries and the consolidated results of their operations for
the period ended on said date, all in accordance with GAAP applied on a consistent basis. Since
November 30, 2009, there has been no development or event nor any prospective development or event
which has had or should reasonably be expected to have a Material Adverse Effect.

     (c) Litigation. There are no actions, suits, arbitrations, investigations or
proceedings pending or, to its knowledge, threatened against the Seller or any of its Subsidiaries
or affecting any of the property thereof before any Governmental Authority, (i) as to which
individually or in the aggregate there is a reasonable likelihood of an adverse decision which
would be reasonably likely to have a Material

34

 

Adverse Effect or (ii) which questions the validity or enforceability of any of the Program
Documents or any action to be taken in connection with the transactions contemplated thereby and
there is a reasonable likelihood of a Material Adverse Effect or adverse decision.

     (d) No Breach. Neither (a) the execution and delivery of the Program Documents, or
(b) the consummation of the transactions therein contemplated in compliance with the terms and
provisions thereof will conflict with or result in a breach of the charter or by-laws of the
Seller, or any applicable law, rule or regulation, or any order, writ, injunction or decree of any
Governmental Authority, or other material agreement or instrument to which the Seller, or any of
its Subsidiaries, is a party or by which any of them or any of their property is bound or to which
any of them or their property is subject, or constitute a default under any such material agreement
or instrument, or (except for the Liens created pursuant to this Agreement) result in the creation
or imposition of any Lien upon any property of the Seller or any of its Subsidiaries, pursuant to
the terms of any such agreement or instrument.

     (e) Action. The Seller has all necessary corporate or other power, authority and
legal right to execute, deliver and perform its obligations under each of the Program Documents to
which it is a party; the execution, delivery and performance by the Seller of each of the Program
Documents to which it is a party has been duly authorized by all necessary corporate or other
action on its part; and each Program Document has been duly and validly executed and delivered by
the Seller and constitutes a legal, valid and binding obligation of the Seller, enforceable against
the Seller in accordance with its terms.

     (f) Approvals. No authorizations, approvals or consents of, and no filings or
registrations with, any Governmental Authority, including without limitation, HUD or FHA, or any
other Person, are necessary for the execution, delivery or performance by the Seller of the Program
Documents to which it is a party or for the legality, validity or enforceability thereof, except
for filings and recordings in respect of the Liens created pursuant to this Agreement.

     (g) Taxes. The Seller and its Subsidiaries have filed all Federal income tax returns
and all other material tax returns that are required to be filed by them and have paid all taxes
due pursuant to such returns or pursuant to any assessment received by any of them, except for any
such taxes, if any, that are being appropriately contested in good faith by appropriate proceedings
diligently conducted and with respect to which adequate reserves have been provided. The charges,
accruals and reserves on the books of the Seller and its Subsidiaries in respect of taxes and other
governmental charges are, in the opinion of the Seller, adequate. 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.

     (h) Investment Company Act. Neither the Seller nor any of its Subsidiaries is
required to be registered as an “investment company”, or a company “controlled” by an “investment
company”, within the meaning of the Investment Company Act of 1940, as amended. The Seller is not
subject to any Federal or state statute or regulation which limits its ability to incur
indebtedness.

     (i) No Legal Bar. The execution, delivery and performance of this Agreement, the
other Program Documents, the sales hereunder and the use of the proceeds thereof will not violate
in any material respect any Requirement of Law or Contractual Obligation of the Seller or of any of
its Subsidiaries and will not result in, or require, the creation or imposition of any Lien (other
than the Liens created hereunder) on any of its or their respective properties or revenues pursuant
to any such Requirement of Law or Contractual Obligation.

     (j) Compliance with Law. No practice, procedure or policy employed or proposed to be
employed by Seller in the conduct of its business violates any law, regulation, judgment,
agreement,

35

 

regulatory consent, order or decree applicable to it which, if enforced, would result in a
Material Adverse Effect with respect to Seller.

     (k) No Default. Neither the Seller nor any of its Subsidiaries is in default under or
with respect to any of its Contractual Obligations in any respect which should reasonably be
expected to have a Material Adverse Effect. No Default or Event of Default has occurred and is
continuing.

     (l) Chief Executive Office; Chief Operating Office. The Seller’s chief executive
office and chief operating office on the Effective Date is located at 350 Highland Drive,
Lewisville, Texas 75067.

     (m) Location of Books and Records. The location where the Seller keeps its books and
records including all computer tapes and records relating to the Purchased Items is its chief
executive office or chief operating office or the offices of the Custodian.

     (n) True and Complete Disclosure. The information, reports, financial statements,
exhibits and schedules furnished in writing by or on behalf of the Seller or any of its
Subsidiaries to the Buyer in connection with the negotiation, preparation or delivery of this
Agreement and the other Program Documents or included herein or therein or delivered pursuant
hereto or thereto, when taken as a whole, do not contain any untrue statement of material fact or
omit to state any material fact necessary to make the statements herein or therein, in light of the
circumstances under which they were made, not misleading. All written information furnished after
the date hereof by or on behalf of the Seller or any of its Subsidiaries to the Buyer in connection
with this Agreement and the other Program Documents and the transactions contemplated hereby and
thereby will be true, complete and accurate in every material respect, or (in the case of
projections) based on reasonable estimates, on the date as of which such information is stated or
certified. There is no fact known to a Responsible Officer that, after due inquiry, could
reasonably be expected to have a Material Adverse Effect that has not been disclosed herein, in the
other Program Documents or in a report, financial statement, exhibit, schedule, disclosure letter
or other writing furnished to the Buyer for use in connection with the transactions contemplated
hereby or thereby.

     (o) Liquidity. The Seller’s Liquidity is not less than $20,000,000 as of the end of
each calendar month.

     (p) ERISA. Each Plan which is not a Multiemployer Plan and, to the knowledge of
Seller, each other Plan and each Multiemployer Plan, is in compliance in all material respects
with, and has been administered in all material respects in compliance with, the applicable
provisions of ERISA, the Code and any other Federal or State law. No event or condition has
occurred and is continuing as to which Seller would be under an obligation to furnish a report to
Buyer under Section 13(a)(v) hereof. The present value of all accumulated benefit obligations
under each Plan subject to Title IV of ERISA (based on the assumptions used for purposes of
Statement of Financial Accounting Standards No. 87) did not, as of the date of the most recent
financial statements reflecting such amounts, exceed the fair market value of the assets of such
Plan, and the present value of all accumulated benefit obligations of all Plans (based on the
assumptions used for purposes of Statement of Financial Accounting Standards No. 87) did not, as of
the date of the most recent financial statements reflecting such amounts, exceed the fair market
value of the assets of all such Plans. The Seller and its Subsidiaries do not provide any
material medical or health benefits to former employees other than as required by the Consolidated
Omnibus Budget Reconciliation Act, as amended, or similar state or local law at no cost to the
employer (collectively, “COBRA”).

     (q) [Reserved].

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     (r) Filing Jurisdictions; Relevant States. Schedule 2 sets forth all of the
jurisdictions and filing offices in which a financing statement should be filed in order for Buyer
to perfect its security interest in the Purchased Items. Schedule 3 sets forth all of the states or
other jurisdictions in which the Seller originates Loans in its own name or through brokers on the
date of this Agreement.

     (s) True Sales. Any and all interest of a Qualified Originator in, to and under any
Mortgage funded in the name of or acquired by such Qualified Originator or seller which is an
Affiliate of the Seller has been sold, transferred, conveyed and assigned to the Seller pursuant to
a legal sale and such Qualified Originator retains no interest in such Loan.

     (t) No Burdensome Restrictions. No Requirement of Law or Contractual Obligation of
the Seller or any of its Subsidiaries has a Material Adverse Effect.

     (u) Subsidiaries. All of the Subsidiaries of the Seller at the date hereof are listed
on Schedule 4 to this Agreement.

     (v) Origination and Acquisition of Loans. The Purchased Assets that are Loans were
originated or acquired by the Seller, and the origination and collection practices used by the
Seller or Qualified Originator, as applicable, with respect to the Purchased Assets that are Loans
have been, in all material respects legal, proper, prudent and customary in the residential
mortgage loan origination and servicing business, and in accordance with the Underwriting
Guidelines. With respect to Purchased Assets that are Loans acquired by the Seller, all such
Purchased Assets are in conformity with the Underwriting Guidelines and, with respect to Agency
Loans, the Agency Guidelines. Each of the Purchased Assets complies in all material respects with
the representations and warranties listed in Schedule 1 hereto. Some of the Purchased
Assets that are Loans were originated by Seller under the tradename Champion Mortgage Company, and
the Mortgage for all such Purchased Assets that are Loans were recorded in the name of Seller d/b/a
Champion Mortgage Company.

     (w) No Adverse Selection. The Seller used no selection procedures that identified the
Purchased Assets that are Loans as being less desirable or valuable than other comparable Loans
owned by the Seller.

     (x) Seller Solvent; Fraudulent Conveyance. As of the date hereof and immediately
after giving effect to each Transaction, the fair value of the assets of the Seller is greater than
the fair value of the liabilities (including, without limitation, contingent liabilities if and to
the extent required to be recorded as a liability on the financial statements of the Seller in
accordance with GAAP) of the Seller and the Seller is and will be solvent, is and will be able to
pay its debts as they mature and does not and will not have an unreasonably small capital to engage
in the business in which it is engaged and proposes to engage. Seller does not intend to incur, or
believe 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. Seller is not transferring any Loans with any intent to
hinder, delay or defraud any of its creditors.

     (y) No Broker. Seller has not dealt with any broker, investment banker, agent, or
other person, except for Buyer, 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 Buyer, 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.

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     (z) MERS. To the extent any MERS Mortgage Loans are subject to a Transaction
hereunder, the Seller is a member of MERS in good standing.

     (aa) Agency Approvals. Seller has all requisite Approvals and is in good standing
with each Agency, with no event having occurred or Seller having any reason whatsoever to believe
or suspect will occur prior to the issuance of the consummation of any Takeout Commitment with
respect to Agency Eligible Loans, including, without limitation, a change in insurance coverage
which would either make the Seller unable to comply with the eligibility requirements for
maintaining all such applicable approvals or require notification to the relevant Agency or to HUD,
FHA or VA.

     (bb) Custodian. Custodian is an eligible custodian under each applicable Agency
Guidelines and Agency Program, and is not an Affiliate of Seller.

     (cc) No Adverse Actions. Seller has not received from any Agency, HUD, FHA or VA a
written notice of extinguishment or a written notice indicating material breach, default or
material non-compliance which Buyer reasonably determines may entitle such Agency or HUD, FHA or VA
to terminate, suspend, sanction or levy penalties against Seller, or a written notice from any
Agency, HUD, FHA or VA indicating any adverse fact or circumstance in respect of Seller which Buyer
reasonably determines may entitle such Agency or HUD, FHA or VA, as the case may be, to revoke any
Approval or otherwise terminate, suspend Seller as an approved issuer, seller or servicer, as
applicable, or with respect to which such adverse fact or circumstance has caused any Agency, HUD,
FHA or VA to terminate Seller.

13. COVENANTS OF SELLER

     The Seller covenants and agrees with Buyer that during the term of this Agreement:

     (a) Financial Statements and Other Information; Financial Covenants.

          Seller shall deliver to the Buyer:

     (i) As soon as available and in any event within forty-five (45) days after the end
of each month the consolidated balance sheets of the Seller and each of the consolidated
Subsidiaries of the Seller as at the end of such month and the related unaudited
consolidated statements of income and retained earnings and of cash flows for the Seller
and the consolidated Subsidiaries of Seller for such month and the portion of the fiscal
year through the end of such month, setting forth in each case in comparative form the
figures for the previous year;

     (ii) As soon as available and in any event within sixty (60) days after the end of
each of the first three quarterly fiscal periods of each fiscal year of the Seller, a
certification in the form of Exhibit A together with the consolidated balance
sheets of the Seller and its consolidated Subsidiaries as at the end of such period and
the related unaudited consolidated statements of income and retained earnings and of
cash flows for the Seller and the consolidated Subsidiaries of Seller for such period
and the portion of the fiscal year through the end of such period, setting forth in each
case in comparative form the figures for the previous year, accompanied by a certificate
of a Responsible Officer of the Seller, which certificate shall state that said
consolidated financial statements fairly present the consolidated financial condition
and results of operations of the Seller and the Subsidiaries of the Seller in accordance
with GAAP, consistently applied, as at the end of, and for, such period (subject to
normal year-end audit adjustments);

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     (iii) As soon as available and in any event within sixty (60) days after the end of
each fiscal year of the Seller with respect to preliminary statements and within one
hundred and twenty (120) days with respect to final audited statements after the end of
each fiscal year of the Seller, the consolidated balance sheets of the Seller and its
consolidated Subsidiaries as at the end of such fiscal year and the related consolidated
statements of income and retained earnings and of cash flows for the Seller and its
consolidated Subsidiaries for such year, setting forth in each case in comparative form
the figures for the previous year, accompanied by an opinion thereon of independent
certified public accountants of recognized national standing, which opinion shall not be
qualified as to scope of audit or going concern and shall state that said consolidated
financial statements fairly present the consolidated financial condition and results of
operations of the Seller and its consolidated Subsidiaries at the end of, and for, such
fiscal year in accordance with GAAP;

     (iv) From time to time such other information regarding the financial condition,
operations, or business of the Seller as the Buyer may reasonably request; and

     (v) As soon as reasonably possible, and in any event within fifteen (15) days after a
Responsible Officer knows or has reason to believe, that any of the events or conditions
specified below with respect to any Plan or Multiemployer Plan has occurred or exists, a
statement signed by a senior financial officer of Seller setting forth details respecting
such event or condition and the action, if any, that Seller or its ERISA Affiliate proposes
to take with respect thereto (and a copy of any report or notice required to be filed with
or given to PBGC by Seller or an ERISA Affiliate with respect to such event or condition):

     a. any Reportable Event or any request for a waiver under Section
412(c) of the Code for any Plan;

     b. the distribution under Section 4041(c) of ERISA of a notice of
intent to terminate any Plan or any action taken by the Seller or an ERISA
Affiliate to terminate any Plan;

     c. the institution by PBGC of proceedings under Section 4042 of ERISA
for the termination of, or the appointment of a trustee to administer, any
Plan, or the receipt by the Seller or any ERISA Affiliate of a notice from a
Multiemployer Plan that such action has been taken by PBGC with respect to
such Multiemployer Plan;

     d. the complete or partial withdrawal from a Multiemployer Plan by the
Seller or any ERISA Affiliate that results in liability under Section 4201
or 4204 of ERISA (including the obligation to satisfy secondary liability as
a result of a purchaser default) or the receipt by the Seller or any ERISA
Affiliate of notice from a Multiemployer Plan that it is in reorganization
or insolvency pursuant to Section 4241 or 4245 of ERISA or that it intends
to terminate or has terminated under Section 4041A of ERISA;

     e. the institution of a proceeding by a fiduciary of any Multiemployer
Plan against the Seller or any ERISA Affiliate to enforce Section 515 of
ERISA, which proceeding is not dismissed within thirty (30) days; and

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     f. the adoption of an amendment to any Plan that, pursuant to Section
401(a)(29) of the Code, would result in the loss of tax-exempt status of the trust of which such Plan is a part if the Seller or an ERISA
Affiliate fails to timely provide security to such Plan in accordance with
the provisions of said Sections.

The Seller will furnish to the Buyer, at the time it furnishes each set of financial statements
pursuant to paragraph (ii) above, a certificate of a Responsible Officer of the Seller to the
effect that, to the best of such Responsible Officer’s knowledge, the Seller during such fiscal
period or year has observed or performed all of its covenants and other agreements, and satisfied
every material condition, contained in this Agreement and the other Program Documents to be
observed, performed or satisfied by it, and that such Responsible Officer has obtained no knowledge
of any Default or Event of Default except as specified in such certificate (and, if any Default or
Event of Default has occurred and is continuing, describing the same in reasonable detail and
describing the action the Seller has taken or proposes to take with respect thereto).

     (b) Litigation. The Seller will promptly, and in any event within three (3) Business
Days after service of process on any of the following, give to the Buyer notice of all legal or
arbitrable proceedings affecting the Seller or any of its Subsidiaries that questions or challenges
the validity or enforceability of any of the Program Documents or as to which is reasonably likely
to result in a Material Adverse Effect.

     (c) Existence, Etc. Each of the Seller and its Subsidiaries will:

     (i) preserve and maintain its legal existence and all of its material rights,
privileges, licenses and franchises, to the extent the failure to preserve and maintain
the same would result in a Material Adverse Effect or would materially and adversely
affect the value of the Purchased Assets or the Buyer’s interest therein;

     (ii) comply with the requirements of all applicable laws, rules, regulations and
orders of Governmental Authorities (including, without limitation, truth in lending,
real estate settlement procedures and all environmental laws) if failure to comply with
such requirements would be reasonably likely (either individually or in the aggregate)
to have a Material Adverse Effect;

     (iii) keep adequate records and books of account, in which complete entries will be
made in accordance with GAAP consistently applied;

     (iv) pay and discharge all taxes, assessments and governmental charges or levies
imposed on it or on its income or profits or on any of its Property prior to the date on
which penalties attach thereto, except for any such tax, assessment, charge or levy the
payment of which is being contested in good faith and by proper proceedings and against
which adequate reserves are being maintained;

     (v) permit representatives of the Buyer, during normal business hours upon three
(3) Business Days’ prior written notice at a mutually desirable time or at any time
during the continuance of an Event of Default, to examine, copy and make extracts from
its books and records, to inspect any of its Properties, and to discuss its business and
affairs with its officers, all to the extent reasonably requested by the Buyer; and

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     (vi) not move its chief executive office or chief operating office from the
addresses referred to in Section 12(l) unless it shall have provided Buyer thirty (30)
days prior written notice of such change.

     (d) Prohibition of Fundamental Changes. Seller shall not at any time, directly or
indirectly, (i) liquidate, wind up or dissolve itself (or suffer any liquidation, winding up or
dissolution) or sell all or substantially all of its assets without Buyer’s prior consent; (ii)
merge or consolidate with any entity if such merger or consolidation would result in a Change of
Control, or (iii) convey, sell, lease, assign, transfer or otherwise dispose of (collectively,
“Transfer”), all or substantially all of its Property, business or assets (including,
without limitation, receivables and leasehold interests) whether now owned or hereafter acquired or
allow any Subsidiary to Transfer substantially all of its assets to any Person (other than the
Seller or another Subsidiary of the FIF HE Guarantor); provided, that the Seller may allow
such action with respect to any Subsidiary so long as no Event of Default would result therefrom.

     (e) Margin Deficit. If at any time there exists a Margin Deficit, the Seller shall
cure the same in accordance with Section 6 hereof.

     (f) Notices. Seller shall give notice to Buyer promptly in writing of any of the
following:

     (i) Upon the Seller becoming aware of, and in any event within one (1) Business Day
after the occurrence of (A) any Default, Event of Default, (B) any default or event of
default under any Program Document or (C) any event of default under any other material
agreement of the Seller;

     (ii) upon, and in any event within three (3) Business Days after, service of
process on the Seller or any of its Subsidiaries, or any agent thereof for service of
process, in respect of any legal or arbitrable proceedings affecting the Seller or any
of its Subsidiaries (i) that questions or challenges the validity or enforceability of
any of the Program Documents or (ii) in the reasonable opinion of the Seller’s attorney
is reasonably likely to result in an adverse judgment in excess of $5,000,000;

     (iii) upon the Seller becoming aware of any Material Adverse Effect and any event
or change in circumstances which should reasonably be expected to have a Material
Adverse Effect;

     (iv) upon the Seller becoming aware during the normal course of its business that
the Mortgaged Property in respect of any Loan or Loans with an aggregate unpaid
principal balance of at least $5,000,000 has been damaged by waste, fire, earthquake or
earth movement, windstorm, flood, tornado or other casualty or otherwise damaged, so as
to materially and adversely affect the value of such Loan;

     (v) upon the entry of a judgment or decree against the Seller or any of its
Subsidiaries in an amount in excess of $2,000,000;

     (vi) any material change in the insurance coverage required of Seller or any other
Person pursuant to any Program Document, with copy of evidence of same attached;

     (vii) any material dispute, licensing issue, litigation, investigation, proceeding
or suspension between Seller or its Subsidiaries, on the one hand, and any Governmental
Authority or any other Person;

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     (viii) any material change in accounting policies or financial reporting practices
of Seller or its Subsidiaries;

     (ix) upon Seller or any of its Subsidiaries defaulting under, or failing to perform
as requested under, the terms of any repurchase agreement, loan and security agreement
or similar credit facility or agreement for borrowed funds in an aggregate principal
amount exceeding $5,000,000 entered into by the Seller or such other entity and any
third party, which default or failure entitles any party to require acceleration or
prepayment of any indebtedness thereunder;

     (x) upon Seller becoming aware of any penalties, sanctions or charges levied, or
threatened to be levied, against Seller or any change or threatened change in Approval
status, or the commencement of any Agency Audit, investigation, or the institution of any
action or the threat of institution of any action against Seller by any Agency, 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 or seller status of, Seller;

     (xi) upon Seller becoming aware of any termination or threatened termination by any
Agency of the Custodian as an eligible custodian; and

     (xii) with respect to any FHA Loan or VA Loan, upon Seller becoming aware of any
fact or circumstance which would cause (a) such Loan to be ineligible for FHA Mortgage
Insurance or a VA Loan Guaranty, as applicable, (b) FHA or VA to deny or reject the
related Mortgagor’s application for FHA Mortgage Insurance or a VA Loan Guaranty,
respectively, or (c) FHA or VA to deny or reject any claim under any FHA Mortgage
Insurance Contract or a VA Loan Guaranty, respectively.

Each notice pursuant to this Section 13(f) (other than (vi) above) shall be accompanied by a
statement of a Responsible Officer of the Seller, setting forth details of the occurrence referred
to therein and stating what action the Seller has taken or proposes to take with respect thereto.

     (g) Servicing. Except as provided in Section 43, the Seller shall not permit any
Person other than the Seller to service Loans without the prior written consent of the Buyer, which
consent shall not be unreasonably withheld.

     (h) Underwriting Guidelines. Seller agrees to deliver to Buyer copies of the
Underwriting Guidelines in the event that any material changes are made to the Underwriting
Guidelines following the Closing Date.

     (i) [Reserved].

     (j) Transactions with Affiliates. The Seller will not enter into any transaction,
including, without limitation, any purchase, sale, lease or exchange of property or the rendering
of any service, with any Affiliate unless such transaction is (a) otherwise permitted under this
Agreement, (b) in the ordinary course of the Seller’s business and (c) unless such Affiliate is the
FIF HE Guarantor or a Subsidiary of the FIF HE Guarantor, upon fair and reasonable terms no less
favorable to the Seller than it would obtain in a comparable arm’s length transaction with a Person
which is not an Affiliate.

     (k) Defense of Title. Seller warrants and will defend the right, title and interest
of Buyer in and to all Purchased Items against all adverse claims and demands of all Persons
whomsoever. Seller

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shall do all things necessary to preserve the Purchased Items so that such
Purchased Items remain subject to a first priority perfected security interest hereunder.

     (l) Preservation of Purchased Items. Seller shall do all things necessary to preserve
the Purchased Items so that such Purchased Items remain subject to a first priority perfected
security interest hereunder. Without limiting the foregoing, Seller will comply with all
applicable laws, rules and regulations of any Governmental Authority applicable to Seller or
relating to the Purchased Items and cause the Purchased Items to comply with all applicable laws,
rules and regulations of any such Governmental Authority. Seller will not allow any default to
occur for which Seller is responsible under any Purchased Items or any Program Documents and Seller
shall fully perform or cause to be performed when due all of its obligations under any Purchased
Items or the Program Documents.

     (m) No Assignment. 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 13(m) shall not prevent any contribution,
assignment, transfer or conveyance of Purchased Assets in accordance with the Program Documents.

     (n) [Reserved].

     (o) Limitation on Distributions. Following the occurrence of an Event of Default,
without the Buyer’s consent, the Seller shall not make any payment on account of, or set apart
assets for a sinking or other analogous fund for the purchase, redemption, defeasance, retirement
or other acquisition of, any stock or senior or subordinate debt of the Seller, whether now or
hereafter outstanding, or make any other distribution in respect thereof, either directly or
indirectly, whether in cash or property or in obligations of the Seller.

     (p) Maintenance of Liquidity. The Seller shall insure that, as of the end of each
calendar month, it has Liquidity in an amount of not less than $20,000,000.

     (q) [Reserved].

     (r) [Reserved].

     (s) Restricted Payments. The Seller shall not make any Restricted Payments following
an Event of Default.

     (t) Servicing Transmission. Seller shall provide to Buyer on a monthly basis no later
than 11:00 a.m. New York City time two (2) Business Days prior to each Repurchase Date (or such
other day requested by Buyer) (i) the Servicing Transmission, on a loan-by-loan basis and in the
aggregate, with respect to the Loans serviced hereunder by Seller which were funded prior to the
first day of the current month, setting forth for each Purchased Asset the related loan number, the
related paid to date, the interest rate, and the status of such loan as a Wet Loan or a Dry Loan,
(ii) the CUSIP numbers in respect of any Purchased Securities subject to Transactions during the
preceding calendar month, and (iii) any other information reasonably requested by Buyer with
respect to the Loans.

     (u) Amendment or Compromise. In the event that Seller or anyone acting on Seller’s
behalf amends, modifies, or waives any term or condition of, or settles or compromises any claim in
respect of, or extends the scheduled maturity date, modifies the interest rate, or cancels or
discharges any of the outstanding principal balance of any item of the Purchased Assets, any such
amendment, modification, waiver, settlement, compromise, extension, cancellation or discharge shall
be flagged to the Buyer on the

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Mortgage Loan Data Transmission. The Seller shall promptly provide
or shall cause to be provided to the Buyer, any information requested by the Buyer with respect to
any action taken pursuant to this paragraph.

     (v) Maintenance of Property; Insurance. Seller shall keep all property useful and
necessary in its business in good working order and condition. The Seller shall maintain errors
and omissions insurance and/or mortgage impairment insurance and blanket bond coverage in such
amounts as are in effect on the Effective Date (as disclosed to Buyer in writing) and shall not
reduce such coverage without the written consent of the Buyer, and shall also maintain such other
insurance with financially sound and reputable insurance companies, and with respect to property
and risks of a character usually maintained by entities engaged in the same or similar business
similarly situated, against loss, damage and liability of the kinds and in the amounts customarily
maintained by such entities.

     (w) Further Identification of Purchased Items. The Seller will furnish to the Buyer
from time to time statements and schedules further identifying and describing the Purchased Items
and such other reports in connection with the Purchased Items as the Buyer may reasonably request,
all in reasonable detail.

     (x) Assets Determined to be Defective. Upon discovery by Seller or the Buyer of any
breach of any representation or warranty listed on Schedule 1 hereto applicable to any
Asset that has a material adverse effect on the value of such Asset or the Buyer’s interest
therein, the party discovering such breach shall promptly give notice of such discovery to the
other.

     (y) [Reserved].

     (z) Certificate of a Responsible Officer of the Seller. At the time that the Seller
delivers financial statements to the Buyer in accordance with Section 13(a) hereof, the Seller
shall forward to the Buyer a certificate of a Responsible Officer of the Seller which demonstrates
that the Seller is in compliance with the covenants set forth in Sections 13(p) and (aa).

     (aa) Additional Funding Capacity. The Seller shall maintain throughout the term of
this Agreement, with a nationally recognized and established counterparty (other than the Buyer),
one or more secured loan facilities, repurchase facilities or other funding sources for mortgage
loans that provides funding or availability, in an amount equal to at least the amount necessary to
continue to fund the mortgage loans that are financed, as of the date of any determination,
pursuant to the Master Repurchase Agreement, dated as of August 27, 2007, between Seller and
Citibank, N.A., as amended (the “Citi Facility”).

     (bb) [Reserved].

     (cc) Maintenance of Papers, Records and Files. Seller shall acquire, and Seller shall
build, maintain and have available, a complete file in accordance with Seller’s custom and practice
for each Purchased Asset. Seller will maintain all such Records not in the possession of Custodian
in good and complete condition in accordance with Seller’s practices and preserve them against loss
or destruction.

     (i) Seller shall collect and maintain or cause to be collected and maintained all
Records relating to the Purchased Assets in accordance with Seller’s custom and
practice, including those maintained pursuant to the preceding subsection, and all such
Records shall be in the related servicer’s or Custodian’s possession. Upon request,
Seller shall deliver to the Buyer or its designee updates of such Servicing Records as
reasonably requested by Buyer. Seller will not cause or authorize any such papers,
records or files that are an original

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or an only copy to leave Custodian’s possession,
except for individual items removed in connection with servicing a specific Loan, in
which event Seller will obtain or cause to be obtained a receipt from the Custodian for
any such paper, record or file.

     (ii) For so long as Buyer has an interest in or lien on any Purchased Asset, Seller
will hold or cause to be held all related Records in trust for Buyer. Seller shall
notify, or cause to be notified, every other party holding any such Records of the
interests and liens granted hereby.

     (iii) Upon reasonable advance notice from Buyer, Seller shall (x) make any and all
such Records available to Custodian or Buyer to examine any such Records, either by its
own officers or employees, or by agents or contractors, or both, and make copies of all
or any portion thereof, (y) permit Buyer or its authorized agents to discuss the
affairs, finances and accounts of Seller with its respective chief operating officer and
chief financial officer and to discuss the affairs, finances and accounts of Seller with
its independent certified public accountants.

     (dd) 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 the laws of each state in which it conducts
business or any Mortgage Property is located, to the extent the failure to remain in good standing
would reasonably be expected to have a Material Adverse Effect, or would have a material adverse
effect on the value of the Purchased Assets or the Buyer’s interest therein, and (iii) shall
conduct its business in accordance with applicable law in all material respects.

     (ee) Taxes, Etc. The Seller shall pay and discharge or cause to be paid and
discharged, when due, all taxes, assessments and governmental charges or levies imposed upon the
Seller 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. The Seller shall file on a timely basis all
federal, and material 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.

     (ff) Use of Custodian. Without the prior written consent of Buyer (such consent not
to be unreasonably withheld), Seller shall use no third party custodian as document custodian other
than the Custodian with respect to third party purchasers, prospective third party purchasers,
lenders and prospective third party lenders with respect to loans of the same type as the Purchased
Assets.

     (gg) Change of Fiscal Year. Seller will not at any time, directly or indirectly,
except upon ninety (90) days’ prior written notice to Buyer, change the date on which Seller’s
fiscal year begins from Seller’s current fiscal year beginning date.

     (hh) Delivery of Servicing Rights, Servicing Records and Servicing. With respect to
the Servicing Rights of each Purchased Asset other than a Servicing Advance Asset, the Seller shall
deliver such Servicing Rights to Buyer on the related Purchase Date. With respect to the Servicing
Records and the physical and contractual servicing of each Purchased Asset, the Seller shall
deliver (or cause the related Subservicer to deliver such Servicing Records and servicing to Buyer
or its designee within forty (40) days of the earlier of (i) the termination of Seller or
Subservicer as the servicer or subservicer, respectively, of the Purchased Assets or (ii) the
related Purchase Date for such Purchased Assets;

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provided that with respect to clause (ii), on each Repurchase Date that is subject to a Rolled Transaction, such delivery requirement will be
deemed restated for such Rolled Transaction (and the immediately preceding delivery requirement
will be deemed to be rescinded) in the absence of directions to the contrary from Buyer, and a new
40-day period will be deemed to commence as of such Repurchase Date. For the avoidance of doubt with respect to clause (ii), the Seller shall deliver (or cause the
related Subservicer to deliver) to Buyer or its designee, within forty (40) days after the latest
Purchase Date, all of (x) the Servicing Records for each Purchased Asset and (y) the servicing
relating to each Purchased Asset, except, in each case, if such Purchased Asset becomes subject to
a Rolled Transaction on the related Repurchase Date or is repurchased in full by the Seller in
accordance with the provisions of this Agreement. Seller’s transfer of the Servicing Rights,
Servicing Records and the physical and contractual servicing under this Section shall be in
accordance with customary standards in the industry and such transfer shall include the transfer of
the gross amount of all escrows held for the related mortgagors (without reduction for unreimbursed
advances or “negative escrows”).

     (ii) Establishment of Collection Account. Prior to the initial Purchase Date, Seller
shall establish the Collection Account for the sole and exclusive benefit of Buyer. Seller shall
deposit or credit to the Collection Account. Seller shall segregate all amounts collected on
account of the Purchased Assets, to be held in trust for the benefit of Buyer, and shall remit such
amounts in accordance with Section 7 hereof. No amounts deposited into such account shall be
removed without Buyer’s prior written consent. Seller shall deposit or credit to the Collection
Account all items to be deposited or credited thereto irrespective of any right of setoff or
counterclaim arising in favor of it (or any third party claiming through it) under any other
agreement or arrangement.

     (jj) MERS. Seller will comply in all material respects with the rules and procedures
of MERS in connection with the servicing of the MERS Loans for as long as such Purchased Loans are
registered with MERS.

     (kk) Agency Audit and Approval Maintenance. Seller shall (i) at all times maintain
copies of relevant portions of all Agency Audits in which there are material adverse findings,
including without limitation written notices of defaults, written notices of termination of
approved status, written notices of imposition of supervisory agreements or interim servicing
agreements, and written notices of probation, suspension, or non-renewal, (ii) provide Buyer with
copies of such Agency Audits promptly upon Buyer’s request, and (iii) take all actions necessary to
maintain its respective Approvals.

     (ll) Takeout Payments. With respect to each Purchased Asset that is an Agency
Takeout Loan, an Early Purchase Program Loan, a Non-Conforming Loan, or a Security, Seller shall
ensure that the related Takeout Price and all other payments under the related Takeout Commitment
shall be paid directly to Buyer in accordance with the wire instructions designated by Buyer;
provided, that in the event that such Takeout Price exceeds an amount equal (i) the Repurchase
Price for such Purchased Asset, plus (ii) all Obligations then due and owing by Seller to Buyer
under the Agreement, then Buyer shall immediately remit such excess amount to Seller; provided,
further, that Buyer may, in its sole discretion, net such excess amount from any other Obligations
then due and owing by Seller to Buyer under this Agreement. With respect to each Purchased Asset
that is an Agency Takeout Loan, (1) with respect to the wire transfer instructions as set forth in
Freddie Mac Form 987 (Wire Transfer Authorization for a Cash Warehouse Delivery) such wire transfer
instructions are identical to Buyer’s designated wire instructions or the Buyer has approved such
wire transfer instructions in writing in its sole discretion, or (2) the Payee Number set forth on
Fannie Mae Form 1068 (Fixed-Rate, Graduated-Payment, or Growing-Equity Mortgage Loan Schedule) or
Fannie Mae Form 1069 (Adjustable-Rate Mortgage Loan Schedule), as applicable, is identical to the
Payee Number that has been identified by Buyer in writing as Buyer’s Payee Number or the Buyer has
approved the related Payee Number in writing in its sole discretion. With

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respect each Purchased Asset that is an Early Purchase Program Loan, the applicable Agency documents list Buyer as sole
subscriber.

     (mm) Wet Loans. With respect to each Wet Loan, Seller shall deliver to the Custodian
all Required Documents within twelve (12) Business Days of the related Purchase Date for such Wet
Loan.

     (nn) Organizational Documents. The Seller shall give notice to Buyer of any material
amendment to Seller’s organizational documents.

     (oo) Financial Covenants. Seller shall comply with the following financial covenants:
(A) the ratio of Seller’s Total Indebtedness to Tangible Net Worth shall not at any time be greater
than 12:1 and (B) the Tangible Net Worth of the Seller shall at all times exceed $150,000,000.

14. REPURCHASE DATE PAYMENTS

     On each Repurchase Date, except as provided in Section 3(g), Seller shall remit or shall cause
to be remitted to Buyer the Repurchase Price together with any other Obligations then due and
payable. In addition, on the date of any early repurchase, Seller shall remit or shall cause to be
remitted to Buyer the Repurchase Price together with any other Obligations then due and payable
with respect to any Purchased Asset repurchased on such date.

15. REPURCHASE OF PURCHASED ASSETS

     Upon discovery by Seller of a breach of any of the representations and warranties set forth on
Schedule 1 to this Agreement, Seller shall give prompt written notice thereof to Buyer.
Upon any such discovery by Buyer, Buyer will notify Seller. It is understood and agreed that the
representations and warranties set forth in Schedule 1 with respect to the Purchased Assets
shall survive delivery of the respective Mortgage Files to the Custodian and shall inure to the
benefit of Buyer. The fact that Buyer has conducted or has failed to conduct any partial or
complete due diligence investigation in connection with its purchase of any Purchased Asset shall
not affect Buyer’s right to demand repurchase as provided under this Agreement. Seller shall,
within two (2) Business Days of the earlier of Seller’s discovery or Seller receiving notice with
respect to any Purchased Asset of (i) any breach of a representation or warranty contained in
Schedule 1, 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
Agreement, promptly cure such breach or delivery failure in all material respects. If within two
(2) Business Days after the earlier of Seller’s discovery of such breach or delivery failure or
Seller receiving notice thereof that such breach or delivery failure has not been remedied by
Seller and such breach or failure has a material adverse effect on the value of the Purchased Asset
or Buyer’s interest therein, Seller shall promptly upon receipt of written instructions from Buyer,
at Buyer’s option, either (i) 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
Buyer, or (ii) transfer comparable Substitute Assets to Buyer, as provided in Section 16 hereof.

16. SUBSTITUTION

     Seller may, subject to agreement with and acceptance by Buyer upon one (1) Business Day’s
notice, substitute other assets which are substantially the same as the Purchased Assets (the
“Substitute Assets”) for any one or more of the Purchased Assets. Such substitution shall
be made by transfer to Buyer of such Substitute Assets and transfer to Seller of such Purchased
Assets (the “Reacquired Assets”) along with the other information to be provided with
respect to the applicable Substitute Asset as described in the form of Transaction Notice. Upon
substitution, the Substitute Assets shall be deemed to

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be Purchased Assets, the Reacquired Assets shall no longer be deemed Purchased Assets, Buyer shall be deemed to have terminated any security
interest that Buyer may have had in the Reacquired Assets and any Purchased Items solely related to
such Reacquired Assets to Seller unless such termination and release would give rise to or
perpetuate a Margin Deficit. Concurrently with any termination and release described in this
Section 16, Buyer shall execute and deliver to Seller upon request and Buyer hereby
authorizes Seller to file and record such documents as Seller may reasonably deem necessary or
advisable in order to evidence such termination and release.

17. RESERVED

18. EVENTS OF DEFAULT

     Each of the following events shall constitute an Event of Default (an “Event of
Default”) hereunder:

     (a) Seller fails to transfer the Purchased Assets to Buyer on the applicable Purchase Date
(provided Buyer has tendered the related Purchase Price); or

     (b) Seller either fails to repurchase the Purchased Assets on the applicable Repurchase Date
or fails to perform its obligations under Section 6; or

     (c) Seller shall default in the payment of any other amount payable by it hereunder or under
any other Program Document after notification by the Buyer of such default, and such default shall
have continued unremedied for three Business Days; or

     (d) any representation, warranty or certification made or deemed made herein or in any other
Program Document by the Seller or any certificate furnished to the Buyer pursuant to the provisions
thereof, shall prove to have been false or misleading in any material respect as of the time made
or furnished (other than the representations and warranties set forth in Schedule 1 which shall be
considered solely for the purpose of determining the Market Value of the Assets; unless (i) the
Seller shall have made any such representations and warranties with knowledge that they were
materially false or misleading at the time made or (ii) any such representations and warranties
have been determined by the Buyer in its sole discretion to be materially false or misleading on a
regular basis); or

     (e) Seller shall fail to comply with the requirements of Section 13(c)(i), Section 13(d),
Sections 13(f)(i) or (iii), Sections 13(k) through 13(p), Section 13(oo) hereof; or the Seller
shall otherwise fail to observe or perform any other agreement contained in this Agreement or any
other Program Document and such failure to observe or perform shall continue unremedied for a
period of five (5) Business Days; or

     (f) any final, judgment or judgments or order or orders 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 Buyer,
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 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 not be procured, within
sixty (60) days from the date of entry thereof and Seller or any of Seller’s Subsidiaries, as
applicable, shall not, within said period of sixty (60) days, appeal therefrom and cause the
execution thereof to be stayed during such appeal; or

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     (g) Seller shall admit in writing its inability to, or intention not to, perform any of
Seller’s Obligations; or

     (h) Seller or any of Seller’s Subsidiaries files a voluntary petition in bankruptcy, seeks
relief under any provision of any bankruptcy, reorganization, moratorium, delinquency, arrangement,
insolvency, readjustment of debt, dissolution or liquidation law of any jurisdiction whether now or
subsequently in effect; or consents to the filing of any petition against it under any such
law; or consents to the appointment of or taking possession by a custodian, receiver, conservator,
trustee, liquidator, sequestrator or similar official for Seller or any of Seller’s Subsidiaries,
or of all or substantially all of Seller’s or Seller’s Subsidiaries’ Property; or makes an
assignment for the benefit of Seller or Seller’s Subsidiaries’ creditors; or

     (i) A custodian, receiver, conservator, liquidator, trustee, sequestrator or similar official
for Seller, or any of Seller’s Subsidiaries, or substantially all of Seller’s, or their respective
Property (as a debtor or creditor protection procedure), is appointed or takes possession of such
Property; or Seller or any of Seller’s Subsidiaries generally fails to pay Seller’s or Seller’s
Subsidiaries’ debts as they become due; or Seller or any of Seller’s Subsidiaries is adjudicated
bankrupt or insolvent; or an order for relief is entered under the Federal Bankruptcy Code, or any
successor or similar applicable statute, or any administrative insolvency scheme, against Seller or
any of Seller’s Subsidiaries; or any of Seller’s or Seller’s Subsidiaries’ Property is sequestered
by court or administrative order; or a petition is filed against Seller or any of Seller’s
Subsidiaries under any bankruptcy, reorganization, arrangement, insolvency, readjustment of debt,
dissolution, moratorium, delinquency or liquidation law of any jurisdiction, whether now or
subsequently in effect, and such petition is not dismissed within sixty (60) days; or

     (j) Any Governmental Authority, or any person, agency or entity acting under governmental
authority shall have taken any action to (i) condemn, seize or appropriate, or to assume custody or
control of, all or substantially all of the Property of Seller or any of Seller’s Subsidiaries, or
shall have taken any action to displace the management of Seller or any of Seller’s Subsidiaries or
(ii) to curtail its authority in the conduct of the business of any Seller or any of Seller’s
Subsidiaries, or takes any action in the nature of enforcement to remove, limit or restrict the
approval of Seller or any of Seller’s Subsidiaries as an issuer, buyer or a seller/servicer of
Assets or securities backed thereby, and in the case of clause (ii), and any such action described
in clause (ii) of this paragraph shall not have been discontinued or stayed within thirty (30) days
and will have a Material Adverse Effect; or

     (k) Any Program Document shall for whatever reason (including an event of default thereunder)
be terminated by Seller or Guarantor (other than as agreed upon by the Buyer and Seller or in
accordance with the terms thereof), this Agreement shall for any reason cease to create a valid,
first priority security interest or ownership interest upon transfer in any of the Purchased Assets
or Purchased Items purported to be covered hereby or any of Seller’s material obligations
(including Seller’s Obligations hereunder) shall cease to be in full force and effect, or the
enforceability thereof shall be contested by the Seller; or

     (l) Any Material Adverse Effect shall have occurred, as determined by Buyer in its reasonable
discretion; or

     (m) (i) Any Person shall engage in any “prohibited transaction” (as defined in Section 406 of
ERISA or Section 4975 of the Code) involving any Plan, (ii) a determination that a Plan is “at
risk” (within the meaning of Section 303 of ERISA) or any Lien in favor of the PBGC or a Plan shall
arise on the assets of Buyer or any ERISA Affiliate, (iii) a Reportable Event shall occur with
respect to, or proceedings shall commence to have a trustee appointed, or a trustee shall be
appointed, to administer or to terminate, any Plan, which Reportable Event or commencement of
proceedings or appointment of a

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trustee is, in the reasonable opinion of Buyer, likely to result in the termination of such Plan for purposes of Title IV of ERISA, (iv) any Plan shall terminate for
purposes of Title IV of ERISA, (v) Seller or any ERISA Affiliate shall, or in the reasonable
opinion of Buyer is likely to, incur any liability in connection with a withdrawal from, or the
insolvency or reorganization of, a Multiemployer Plan, (vi) Seller or any ERISA Affiliate shall
file an application for a minimum funding waiver under section 302 of ERISA or section 412 of the
Code with respect to any Plan, (vii) any obligation for post-retirement medical costs (other than as required by COBRA) exists, or (viii) any other event or condition shall occur
or exist with respect to a Plan; and in each case in clauses (i) through (viii) above, such event
or condition, together with all other such events or conditions, if any, could reasonably be
expected to have a Material Adverse Effect; or

     (n) A Change of Control of Seller shall have occurred without the prior consent of the Buyer;
or

     (o) Seller shall grant, or suffer to exist, any Lien on any Purchased Items except the Liens
contemplated hereby or under the Securities Repurchase Agreement; or the Liens contemplated hereby
shall cease to be first priority perfected Liens on the Purchased Items in favor of the Buyer or
shall be Liens in favor of any Person other than Buyer; or

     (p) FIF HE Guarantor, Seller or any of their respective Subsidiaries shall default under, or
fail to perform as required under, or shall otherwise breach the terms of any interest rate
protection agreement, repurchase agreement, loan and security agreement or similar credit facility
or agreement for borrowed funds between the Seller, FIF HE Guarantor or such other entity, on the
one hand, and the Buyer or any of the Buyer’s Affiliates on the other and such default, breach or
failure entitles the Buyer or such Affiliate to accelerate or require prepayment of any
indebtedness thereunder or, in the case of an interest rate protection agreement, to declare an
early termination date thereunder; or the Seller, FIF HE Guarantor or any of their Subsidiaries
shall default under, or fail to perform as requested under, the terms of any repurchase agreement,
loan and security agreement or similar credit facility or agreement for borrowed funds in an
aggregate principal amount exceeding $5,000,000 entered into by the Seller or such other entity and
any third party, which default or failure entitles any party to require acceleration or prepayment
of any indebtedness thereunder; or

     (q) The Seller’s membership in MERS is terminated for any reason at any time the Seller is
servicing MERS Mortgage Loans hereunder; or

     (r) FIF HE Guarantor, Seller or any of their respective Subsidiaries shall default under, or
fail to perform as required under, or shall otherwise breach the terms of any of the Program
Documents; or

     (s) Seller shall fail to meet the qualifications to maintain all requisite Approvals.

19. REMEDIES

     Upon the occurrence of an Event of Default, Buyer, at its option (which option shall be deemed
to have been exercised immediately upon the occurrence of an Event of Default pursuant to Section
18(g), (h), (i) or (j)(ii) hereof), shall have the right to exercise any or all of the following
rights and remedies:

     (i) The Repurchase Date for each Transaction hereunder shall, if it has not already
occurred, be deemed immediately to occur (provided 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

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obligations hereunder to repurchase all Purchased Assets at the Repurchase Price therefor on the
Repurchase Date (determined in accordance with the preceding sentence) in such
Transactions shall thereupon become immediately due and payable; all Income then held in
the Collection Account or by Seller in trust for Buyer and all Income paid after such
exercise or deemed exercise shall be remitted to and retained by Buyer and applied to
the aggregate Repurchase Price and any other amounts owing by Seller hereunder and after
repayment of all amounts owing by Seller hereunder such Income shall be used to satisfy all
amounts owing by Seller to Buyer under the Corporate Loan; Seller shall immediately
deliver to Buyer or its designee any and all original papers, Records and files relating
to the Purchased Assets subject to such Transaction then in Seller’s possession and/or
control; and all right, title and interest in and entitlement to such Purchased Assets
and Servicing Rights thereon shall be deemed transferred to Buyer or its designee.

     (ii) Buyer shall have the right to (A) sell, on or following the Business Day
following the date on which the Repurchase Price became due and payable pursuant to
Section 19(a)(i) without notice or demand of any kind, at a public or private sale and
at such price or prices as Buyer may deem to be commercially reasonable for cash or for
future delivery without assumption of any credit risk, any or all or portions of the
Purchased Assets on a servicing released basis. Buyer may purchase any or all of the
Purchased Assets at any public or private sale. Seller shall remain liable to Buyer for
any amounts that remain owing to Buyer 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 incurred by Buyer in
connection with or as a result of an Event of Default; second to Breakage Costs,
if any, costs of cover and/or related hedging transactions; third to the
aggregate Repurchase Prices; fourth to all other Obligations and fifth
to all obligations under the Corporate Loan.

     (iii) Buyer shall have the right to terminate this Agreement and declare all
obligations of Seller to be immediately due and payable, by a notice in accordance with
Section 21 hereof; provided no such notice shall be required for an Event of Default
pursuant to Section 18(g),(h), (i) or (j) hereof.

     (iv) 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 the nature 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, Buyer may elect the
time and manner of liquidating any Purchased Asset and nothing contained herein shall
obligate Buyer to liquidate any Purchased Asset on the occurrence of an Event of Default
or to liquidate all Purchased Assets in the same manner or on the same Business Day or
constitute a waiver of any right or remedy of Buyer. 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.

     (v) To the extent permitted by applicable law, the Seller waives all claims,
damages and demands it may acquire against the Buyer arising out of the exercise by the
Buyer of any of its rights hereunder, other than those claims, damages and demands
arising from the gross negligence or willful misconduct of the Buyer. If any notice of
a proposed

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sale or other disposition of Purchased Items shall be required by law, such
notice shall be deemed reasonable and proper if given at least ten (10) days before such
sale or other disposition.

     (b) Seller hereby acknowledges, admits and agrees that Seller’s obligations under this
Agreement are recourse obligations of Seller to which Seller pledges its full faith and credit. In
addition to its rights hereunder, Buyer shall have the right to proceed against any of Seller’s assets
which may be in the possession of Buyer, any of Buyer’s Affiliates or their respective designees
(including the Custodian), including the right to liquidate such assets and to set-off the proceeds
against monies owed by Seller to Buyer pursuant to this Agreement. Buyer may set-off cash, the
proceeds of the liquidation of the Purchased Assets and Additional Purchased Assets, any other
Purchased Items and their proceeds and all other sums or obligations owed by Buyer to Seller
against all of Seller’s obligations to Buyer, whether under this Agreement, under a Transaction, or
under any other agreement between the parties, or otherwise, whether or not such obligations are
then due, without prejudice to Buyer’s right to recover any deficiency. For the avoidance of
doubt, Buyer may set-off and net any obligations of Seller hereunder against any collateral pledged
under the Securities Repurchase Agreement.

     (c) Buyer shall have the right to obtain physical possession of the Records and Servicing
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 Buyer such assignments as Buyer shall
request.

     (d) Buyer shall have the right to direct all Persons servicing the Purchased Assets to take
such action with respect to the Purchased Assets as Buyer determines appropriate.

     (e) Buyer 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 and any other
Purchased Items or any portion thereof, collect the payments due with respect to the Purchased
Assets and any other Purchased Items or any portion thereof, and do anything that Buyer is
authorized hereunder or by law to do. Seller shall pay all costs and expenses incurred by Buyer in
connection with the appointment and activities of such receiver.

     (f) Buyer may, at its option, enter into one or more Interest Rate Protection Agreements
covering all or a portion of the Purchased Assets, and the Seller shall be responsible for all
damages, judgments, costs and expenses of any kind which may be imposed on, incurred by or asserted
against the Buyer relating to or arising out of such Interest Rate Protection Agreements for a
period of thirty (30) days following the occurrence of an Event of Default; including without
limitation any losses resulting from such Interest Rate Protection Agreements; provided that Buyer
shall not have the right to enter into any such Interest Rate Protection Agreement if the Seller
assigns to Buyer an Interest Rate Protection Agreement reasonably acceptable to Buyer.

     (g) In addition to all the rights and remedies specifically provided herein, Buyer 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 or a secured party, as applicable, under the Uniform Commercial
Code.

     Except as otherwise expressly provided in this Agreement, Buyer shall have the right to
exercise any of its 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.

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     Buyer 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 Buyer 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, arising
from use of nonjudicial process, enforcement and sale of all or any portion of the Purchased Assets
and any other Purchased Items 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.

     Seller shall cause all sums received by it with respect to the Purchased Assets to be
deposited with such Person as Buyer may direct after receipt thereof. Seller shall be liable to
Buyer for the amount of all expenses (plus interest thereon at a rate equal to the Post-Default
Rate), and Breakage Costs including, without limitation, all costs and expenses incurred within
thirty (30) days of the Event of Default in connection with hedging or covering transactions
related to the Purchased Assets, conduit advances and payments for mortgage insurance.

20. DELAY NOT WAIVER; REMEDIES ARE CUMULATIVE

     No failure on the part of Buyer to exercise, and no delay in exercising, any right, power or
remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise by
Buyer 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 Buyer 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 Buyer to exercise any of its rights under any other
related document. Buyer may exercise at any time after the occurrence of an Event of Default one
or more remedies, as Buyer so desires, and may thereafter at any time and from time to time
exercise any other remedy or remedies afforded Buyer hereunder, under any Program Document or law.

21. NOTICES AND OTHER COMMUNICATIONS

Except as otherwise expressly permitted by this Agreement, all notices, requests and other
communications provided for herein and under the Custodial Agreement (including, without
limitation, any modifications of, or waivers, requests or consents under, this Agreement) shall be
given or made in writing (including, without limitation, by telex or telecopy) delivered to the
intended recipient at the “Address for Notices” specified below its name on the signature pages
hereof); or, as to any party, at such other address as shall be designated by such party in a
written notice to each other party. Except as otherwise provided in this Agreement and except for
notices given by the Seller under Section 3(a) (which shall be effective only on receipt), all such
communications shall be deemed to have been duly given when transmitted by telex or telecopier or
personally delivered or, in the case of a notice mailed or sent by overnight mail, upon receipt, in
each case given or addressed as aforesaid.

22. USE OF EMPLOYEE PLAN ASSETS

     No assets of an employee benefit plan subject to any provision of the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”) shall be used by either party hereto in a
Transaction.

23. INDEMNIFICATION AND EXPENSES.

     (a) The Seller agrees to hold the Buyer, and its Affiliates and their officers, directors,
employees, agents and advisors (each an “Indemnified Party”) harmless from and indemnify
any

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Indemnified Party against all liabilities, losses, damages, judgments, reasonable
out-of-pocket costs and expenses of any kind which may be imposed on, incurred by or asserted
against such Indemnified Party (collectively, the “Costs”) relating to or arising out of
this Agreement, any other Program Document or any transaction contemplated hereby or thereby, or
any amendment, supplement or modification of, or any waiver or consent under or in respect of, this
Agreement, any other Program Document or any transaction contemplated hereby or thereby, that, in
each case, results from anything other than any Indemnified Party’s gross negligence or willful
misconduct. Without limiting the generality of the foregoing, the Seller agrees to hold any
Indemnified Party harmless from and indemnify such Indemnified Party against all Costs with respect
to all Assets relating to or arising out of any violation or alleged violation of any environmental
law, rule or regulation or any consumer credit laws, including without limitation laws with respect
to unfair or deceptive lending practices and predatory lending practices, the Truth in Lending Act
and/or the Real Estate Settlement Procedures Act, that, in each case, results from anything other
than such Indemnified Party’s gross negligence or willful misconduct. In any suit, proceeding or
action brought by an Indemnified Party in connection with any Asset for any sum owing thereunder,
or to enforce any provisions of any Asset, the Seller will save, indemnify and hold such
Indemnified Party harmless from and against all expense, loss or damage suffered by reason of any
defense, set-off, counterclaim, recoupment or reduction of liability whatsoever of the account
debtor or obligor thereunder, arising out of a breach by the Seller of any obligation thereunder or
arising out of any other agreement, indebtedness or liability at any time owing to or in favor of
such account debtor or obligor or its successors from the Seller. The Seller also agrees to
reimburse an Indemnified Party as and when billed by such Indemnified Party for all such
Indemnified Party’s costs and expenses incurred in connection with the enforcement or the
preservation of such Indemnified Party’s rights under this Agreement, any other Program Document or
any transaction contemplated hereby or thereby, including without limitation the reasonable fees
and disbursements of its counsel. The Seller hereby acknowledges that, the obligations of the
Seller under this Agreement are recourse obligations of the Seller.

     (b) The Seller agrees to pay as and when billed by the Buyer all of the reasonable out-of
pocket costs and expenses incurred by the Buyer in connection with the development, preparation and
execution of, and any amendment, supplement or modification to, this Agreement, any other Program
Document or any other documents prepared in connection herewith or therewith. The Seller agrees to
pay as and when billed by the Buyer all of the reasonable out-of-pocket costs and expenses incurred
in connection with the consummation and administration of the transactions contemplated hereby and
thereby including, without limitation, (i) all the reasonable fees, disbursements and expenses of
counsel to the Buyer and (ii) all the reasonable due diligence, inspection, testing and review
costs and expenses incurred by the Buyer with respect to Purchased Items under this Agreement,
including, but not limited to, those reasonable costs and expenses incurred by the Buyer pursuant
to Sections 23, 39 and 44 hereof. Seller also agrees not to assert any claim against Buyer or any
of its Affiliates, 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 hereby or thereby. THE
FOREGOING INDEMNITY AND AGREEMENT NOT TO ASSERT CLAIMS EXPRESSLY APPLIES, WITHOUT LIMITATION, TO
THE NEGLIGENCE (BUT NOT GROSS NEGLIGENCE OR WILLFUL MISCONDUCT) OF THE INDEMNIFIED PARTIES.

     (c) 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 Buyer, in its sole discretion and
Seller shall remain liable for any such payments by Buyer. No such payment by Buyer shall be
deemed a waiver of any of Buyer’s rights under the Program Documents.

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     (d) Without prejudice to the survival of any other agreement of Seller hereunder, the
covenants and obligations of Seller contained in this Section 23 shall survive the payment in full
of the Repurchase Price and all other amounts payable hereunder and delivery of the Purchased
Assets by Buyer against full payment therefor.

24. 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 Items as a
result of restrictions upon Buyer or Custodian contained in the Program Documents or any other
instrument delivered in connection therewith, and any right that it may have to direct the order in
which any of the Purchased Items shall be disposed of in the event of any disposition pursuant
hereto.

25. REIMBURSEMENT

     All sums reasonably expended by Buyer in connection with the exercise of any right or remedy
provided for herein shall be and remain Seller’s obligation (unless and to the extent that Seller
is the prevailing party in any dispute, claim or action relating thereto). Seller agrees to pay,
with interest at the Post-Default Rate to the extent that an Event of Default has occurred, the
reasonable out-of-pocket expenses and reasonable attorneys’ fees incurred by Buyer and/or Custodian
in connection with the preparation, negotiation, enforcement (including any waivers),
administration and amendment 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 Buyer (without duplication to Buyer) and/or Custodian pursuant thereto, any “due
diligence” or loan agent reviews conducted by Buyer or on its behalf or by refinancing or
restructuring in the nature of a “workout.”

26. FURTHER ASSURANCES

     Seller agrees to do such further acts and things and to execute and deliver to Buyer such
additional assignments, acknowledgments, agreements, powers and instruments as are reasonably
required by Buyer to carry into effect the intent and purposes of this Agreement and the other
Program Documents, to perfect the interests of Buyer in the Purchased Items or to better assure and
confirm unto Buyer its rights, powers and remedies hereunder and thereunder.

27. TERMINATION

     This Agreement shall remain in effect until the Termination Date. However, no such
termination shall affect Seller’s outstanding obligations to Buyer at the time of such termination.
Seller’s obligations under Section 3(e), Section 3(j), Section 5, Section 12 and Section 23 and
any other reimbursement or indemnity obligation of Seller to Buyer pursuant to this Agreement or
any other Program Documents shall survive the termination hereof.

28. 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.

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29. BINDING EFFECT; GOVERNING LAW

     This Agreement shall be binding and inure to the benefit of the parties hereto and their
respective successors and assigns, except that Seller may not assign or transfer any of its
respective rights or obligations under this Agreement or any other Program Document without the
prior written consent of Buyer. 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 OF THE NEW YORK GENERAL OBLIGATIONS LAW WHICH SHALL GOVERN).

30. AMENDMENTS

     Except as otherwise expressly provided in this Agreement, any provision of this Agreement may
be modified or supplemented only by an instrument in writing signed by the Seller and the Buyer and
any provision of this Agreement may be waived by the Buyer.

31. SUCCESSORS AND ASSIGNS

     This Agreement shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and permitted assigns.

32. SURVIVAL

     The obligations of the Seller under Sections 3(e), 3(j), 5, 23 and 25 hereof and any other
reimbursement or indemnity obligation of Seller to Buyer pursuant to this Agreement or any other
Program Document shall survive the repurchase of the Assets hereunder and the termination of this
Agreement. In addition, each representation and warranty made, or deemed to be made by a request
for a purchase, herein or pursuant hereto shall survive the making of such representation and
warranty, and the Buyer shall not be deemed to have waived, by reason of purchasing any Loan, any
Default that may arise by reason of such representation or warranty proving to have been false or
misleading, notwithstanding that the Buyer may have had notice or knowledge or reason to believe
that such representation or warranty was false or misleading at the time such purchase was made.

33. CAPTIONS

     The table of contents and captions and section headings appearing herein are included solely
for convenience of reference and are not intended to affect the interpretation of any provision of
this Agreement.

34. COUNTERPARTS

     This Agreement may be executed in any number of counterparts, all of which taken together
shall constitute one and the same instrument, and any of the parties hereto may execute this
Agreement by signing any such counterpart. The parties agree that this Agreement and any notices
hereunder may be transmitted between them by email and/or by facsimile. The parties intend that
faxed signatures and electronically imaged signatures such as .pdf files shall constitute original
signatures and are binding on all parties. The original documents shall be promptly delivered, if
requested.

35. SUBMISSION TO JURISDICTION; WAIVERS

EACH PARTY HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY:

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     (A) SUBMITS FOR ITSELF AND ITS PROPERTY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS
AGREEMENT AND/OR ANY OTHER PROGRAM DOCUMENT, OR FOR RECOGNITION AND ENFORCEMENT OF ANY JUDGMENT IN
RESPECT THEREOF, TO THE NON-EXCLUSIVE GENERAL JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK,
THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK, AND
APPELLATE COURTS FROM ANY THEREOF;

     (B) CONSENTS THAT ANY SUCH ACTION OR PROCEEDING MAY BE BROUGHT IN SUCH COURTS AND, TO THE
EXTENT PERMITTED BY LAW, WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY
SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT IN AN
INCONVENIENT COURT AND AGREES NOT TO PLEAD OR CLAIM THE SAME;

     (C) AGREES THAT SERVICE OF PROCESS IN ANY SUCH ACTION OR PROCEEDING MAY BE EFFECTED BY MAILING
A COPY THEREOF BY REGISTERED OR CERTIFIED MAIL (OR ANY SUBSTANTIALLY SIMILAR FORM OF MAIL), POSTAGE
PREPAID, TO ITS ADDRESS SET FORTH UNDER ITS SIGNATURE BELOW OR AT SUCH OTHER ADDRESS OF WHICH THE
BUYER SHALL HAVE BEEN NOTIFIED; AND

     (D) AGREES THAT NOTHING HEREIN SHALL AFFECT THE RIGHT TO EFFECT SERVICE OF PROCESS IN ANY
OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT TO SUE IN ANY OTHER JURISDICTION.

36. WAIVER OF JURY TRIAL

EACH OF THE SELLER AND THE BUYER HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT, ANY OTHER PROGRAM DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
THEREBY.

37. ACKNOWLEDGEMENTS

     The Seller hereby acknowledges that:

     (a) it has been advised by counsel in the negotiation, execution and delivery of this
Agreement and the other Program Documents to which it is a party;

     (b) the Buyer has no fiduciary relationship to the Seller; and

     (c) no joint venture exists among or between the Buyer and the Seller.

38. HYPOTHECATION OR PLEDGE OF PURCHASED ITEMS. 

     Notwithstanding anything contained herein or in any other Program Document to the contrary,
Buyer shall have free and unrestricted use of all Purchased Assets and Purchased Items and nothing
in this Agreement shall preclude Buyer from engaging in repurchase transactions with the Purchased
Assets and Purchased Items or otherwise pledging, repledging, transferring, hypothecating, or
rehypothecating the Purchased Assets and Purchased Items. Nothing contained in this Agreement shall
obligate Buyer to

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segregate any Purchased Assets or Purchased Items delivered to Buyer by Seller. The Buyer
shall indemnify the Seller for any failure of the Buyer to redeliver any Purchased Items to the
Seller on a Repurchase Date in an amount up to the value of the related Purchased Items.

39. ASSIGNMENTS; PARTICIPATIONS.

     (a) The Seller may assign any of its rights or obligations hereunder only with the prior
written consent of the Buyer. The Buyer may, with the consent of the Seller, assign or transfer to
any bank or other financial institution that makes or invests in repurchase agreements or loans or
any Affiliate of the Buyer all or any of its rights under this Agreement and the other Program
Documents.

     (b) The Buyer may, in accordance with applicable law, at any time sell to one or more entities
(“Participants”) participating interests in this Agreement, its agreement to purchase
Loans, or any other interest of the Buyer hereunder and under the other Program Documents. In the
event of any such sale by the Buyer of participating interests to a Participant, the Buyer’s
obligations under this Agreement to the Seller shall remain unchanged, the Buyer shall remain
solely responsible for the performance thereof and the Seller shall continue to deal solely and
directly with the Buyer in connection with the Buyer’s rights and obligations under this Agreement
and the other Program Documents. The Seller agrees that if amounts outstanding under this Agreement
are due or unpaid, or shall have been declared or shall have become due and payable upon the
occurrence of an Event of Default, each Participant shall be deemed to have the right of set-off in
respect of its participating interest in amounts owing under this Agreement to the same extent as
if the amount of its participating interest were owing directly to it as a Buyer under this
Agreement; provided, that such Participant shall only be entitled to such right of set-off if it
shall have agreed in the agreement pursuant to which it shall have acquired its participating
interest to share with the Buyer the proceeds thereof. The Buyer also agrees that each Participant
shall be entitled to the benefits of Sections 3(j) and 23 with respect to its participation in the
Loans and Purchased Items outstanding from time to time; provided, that the Buyer and all
Participants shall be entitled to receive no greater amount in the aggregate pursuant to such
Sections than the Buyer would have been entitled to receive had no such transfer occurred.

     (c) The Buyer may furnish any information concerning the Seller or any of its Subsidiaries in
the possession of Buyer from time to time to assignees and Participants (including prospective
assignees and Participants) only after notifying the Seller in writing and securing signed
confidentiality statements (a form of which is attached hereto as Exhibit H) and only for
the sole purpose of evaluating assignments or participations and for no other purpose.

     (d) The Seller agrees to cooperate with the Buyer in connection with any such assignment
and/or participation, to execute and deliver replacement notes, and to enter into such restatements
of, and amendments, supplements and other modifications to, this Agreement and the other Program
Documents in order to give effect to such assignment and/or participation. The Seller further
agrees to furnish to any Participant identified by the Buyer to the Seller copies of all reports
and certificates to be delivered by the Seller to the Buyer hereunder, as and when delivered to the
Buyer.

     (e) Seller shall appoint Buyer, and Buyer agrees to act as an agent of Seller, solely for
purposes of maintaining the record of any sale, transfer, assignment, subdivision or participation
of any rights or obligations under this Agreement, as well as of all payments of principal and
interest (in each case, for U.S. federal income tax purposes) in respect of this Agreement. The
provisions of this paragraph (e) are intended to cause the obligations under this Agreement to be
in “registered form” within the meaning of Treasury Regulations Section 5f.103-1(c), and
shall be interpreted and carried out in a manner consistent therewith. Notwithstanding the
foregoing, Buyer shall be obligated to permit the Seller

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access only to its books and records containing information described in this paragraph (e)
and only to the extent required by the U.S. federal income tax law. Buyer shall not have any
liability as the Seller’s agent.

40. SINGLE AGREEMENT

     Seller and Buyer 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 and Buyer 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.

41. INTENT

     (a) Seller and Buyer recognize that each Transaction is a “repurchase agreement” as that term
is defined in Section 101(47)(A)(i) of Title 11 of the USC, a “securities contract” as that term is
defined in Section 741(7)(A)(i) of Title 11 of the USC, and a “master netting agreement” as that
term is defined in Section 101(38A)(A) of Title 11 of the USC, and that the pledge of the Related
Credit Enhancement in Section 8(a) hereof is intended to constitute “a security agreement or other
arrangement or other credit enhancement” that is “related to” the Agreement and Transactions
hereunder within the meaning of Sections 101(38A)(A), 101(47)(a)(v) and 741(7)(A)(x) of Title 11 of
the USC. It is the intent of the parties hereto that the beneficial interest in the Loans
evidenced by the Purchased Participation Certificates or Purchased Securities shall constitute an
“interest in a mortgage loan” as that term is used in Sections 101(47)(A)(i) and 741(7)(A)(i) of
Title 11 of the USC.

     (b) It is understood that Buyer’s right to liquidate the Purchased Items delivered to it in
connection with the Transactions hereunder or to accelerate or terminate this Agreement or
otherwise exercise any other remedies pursuant to Section 19 hereof is a contractual right to
liquidate, accelerate or terminate such Transaction as described in Sections 555, 559 and 561 of
Title 11 of the USC.

42. CONFIDENTIALITY

     The Program Documents and their respective terms, provisions, supplements and amendments, and
transactions and notices thereunder, are proprietary to Buyer and shall be held by Seller in strict
confidence and shall not be disclosed to any third party without the consent of Buyer 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) upon
prior written notice to Buyer, disclosure required by law, rule, regulation or order of a court or
other regulatory body or (iii) upon prior written notice to Buyer, disclosure to any approved hedge
counterparty to the extent necessary to obtain any Interest Rate Protection Agreement hereunder or
(iv) any disclosures or filing required under Securities and Exchange Commission (“SEC”) or
state securities’ laws; provided that in the case of (ii), (iii) and (iv), Seller shall
take reasonable actions to provide Buyer with prior written notice; provided
further that in the case of (iv), Seller shall not file any of the Program Documents other
than the Agreement with the SEC or state securities office or otherwise required under applicable
law unless Seller shall have provided at least thirty (30) days (or such lesser time as may be
demanded by the SEC or state securities office) prior written notice of such filing to Buyer.
Notwithstanding anything herein to the contrary, each party (and each employee, representative, or
other agent of each party) may disclose to any and all persons,

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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.

43. SERVICING

     (a) Subject to subsection (iv) below, the Seller covenants to maintain or cause the servicing
of the Purchased Loans to be maintained in conformity with Accepted Servicing Practices and
pursuant to the related underlying Servicing Agreement. In the event that the preceding language is
interpreted as constituting one or more servicing contracts, each such servicing contract shall
terminate automatically upon the earliest of (i) the termination thereof by Buyer pursuant to
subsection (d) below, (ii) forty (40) days after the last Purchase Date of such Purchased Loans,
(iii) an Event of Default, (iv) the date on which all the Obligations have been paid in full, or
(v) the transfer of servicing to any entity approved by the Buyer and the assumption thereof by
such entity.

     (b) During the period the Seller is servicing the Purchased Loans, (i) the Seller agrees that
Buyer is the owner of all 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 Loans (the
“Servicing Records”), and (ii) the Seller grants the Buyer a security interest in all
servicing fees and rights relating to the Purchased Loans and all Servicing Records to secure the
obligation of the Seller or its designee to service in conformity with this Section 43 and any
other obligation of Seller to the Buyer. At all times during the term of this Agreement, the
Seller covenants to hold such Servicing Records in trust for Buyer and to safeguard, or cause each
Subservicer to safeguard, such Servicing Records and to deliver them, or cause any such Subservicer
to deliver them to the extent permitted under the related Servicing Agreement promptly to the Buyer
or its designee (including the Custodian) at the Buyer’s request or otherwise as required by
operation of Section 13(hh) hereof. It is understood and agreed by the parties that prior to an
Event of Default, the Seller, as servicer shall retain the servicing fees with respect to the
Purchased Loans.

     (c) If any Loan that is proposed to be sold on a Purchase Date is serviced by a servicer other
a Seller (a “Subservicer”), or if the servicing of any Purchased Loan is to be transferred
to a Subservicer, the Seller shall provide a copy of the related servicing agreement and an
Instruction Letter executed by such Subservicer (collectively, the “Servicing Agreement”)
to the Buyer at least three (3) Business Days prior to such Purchase Date or transfer date, as
applicable, which Servicing Agreement shall be in form and substance acceptable to Buyer. In
addition, Seller shall have obtained the prior written consent of the Buyer for such Subservicer to
subservice the Loans, which consent may be withheld in Buyer’s sole discretion. The Buyer shall
have the right, exercisable at any time in its reasonable discretion, upon written notice, to
terminate any of Seller or Subservicers as servicer or subservicer, respectively, and any related
Servicing Agreement (to the extent permitted therein). Upon any such termination, Seller shall
transfer or shall cause Subservicer to transfer such servicing with respect to such Purchased Loans
to Buyer or its designee, at no cost or expense to Buyer. Seller agrees to cooperate with Buyer in
connection with the transfer of servicing. After the Purchase Date, until the Repurchase Date,
Seller will have no right to modify or alter the terms of the Loan or consent to the modification
or alteration of the terms of any Loan, and Seller will have no obligation or right to repossess
any Loan or substitute another Loan, except as provided in any Custodial Agreement or otherwise as
expressly permitted in this Agreement.

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     (d) The Seller shall permit the Buyer to inspect upon reasonable prior written notice at a
mutually convenient time, the Seller’s or its Affiliate’s servicing facilities, as the case may be,
for the purpose of satisfying the Buyer that the Seller or its Affiliate, as the case may be, has
the ability to service the Loans as provided in this Agreement. In addition, with respect to any
Subservicer which is not an Affiliate of the Seller, the Seller shall use its best efforts to
enable the Buyer to inspect the servicing facilities of such Subservicer.

44. PERIODIC DUE DILIGENCE REVIEW

     The Seller acknowledges that the Buyer has the right to perform continuing due diligence
reviews with respect to any of the Assets for purposes of verifying compliance with the
representations, warranties, covenants and specifications made hereunder or under any other Program
Document, or otherwise, and the Seller agrees that upon reasonable (but no less than one (1)
Business Day’s) prior notice to the Seller (provided that upon the occurrence of a Default or an
Event of Default, no such prior notice shall be required), the Buyer or its authorized
representatives will be permitted during normal business hours to examine, inspect, make copies of,
and make extracts of, the Mortgage Files, the Records, the Servicing Records and any and all
documents, records, agreements, instruments or information relating to such Assets in the
possession, or under the control, of the Seller and/or the Custodian. The Seller also shall make
available to the Buyer a knowledgeable financial or accounting officer for the purpose of answering
questions respecting the Mortgage Files and the Assets. Without limiting the generality of the
foregoing, the Seller acknowledges that the Buyer shall purchase Assets from the Seller based
solely upon the information provided by the Seller to the Buyer in the Asset Schedule and the
representations, warranties and covenants contained herein, and that the Buyer, at its option, has
the right, at any time to conduct a partial or complete due diligence review on some or all of the
Purchased Assets, including, without limitation, ordering new credit reports, new appraisals on the
related Mortgaged Properties and otherwise re-generating the information used to originate such
Asset. The Buyer may underwrite such Assets itself or engage a third party underwriter to perform
such underwriting. The Seller agrees to cooperate with the Buyer and any third party underwriter
in connection with such underwriting, including, but not limited to, providing the Buyer and any
third party underwriter with access to any and all documents, records, agreements, instruments or
information relating to such Assets in the possession, or under the control, of the Seller. In
addition, the Buyer has the right to perform continuing Due Diligence Reviews of the Seller and its
Affiliates, directors, and their respective Subsidiaries and the officers, employees and
significant shareholders thereof. The Seller and Buyer further agree that all reasonable
out-of-pocket costs and expenses incurred by the Buyer in connection with the Buyer’s activities
pursuant to this Section 44 shall be paid by the Seller.

45. SET-OFF

     In addition to any rights and remedies of the Buyer provided by this Agreement and by law, the
Buyer shall have the right, without prior notice to the Seller following the occurrence and during
the continuation of a Default or an Event of Default, any such notice being expressly waived by the
Seller to the extent permitted by applicable law, upon any amount becoming due and payable by the
Seller hereunder (whether at the stated maturity, by acceleration or otherwise) 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, and any other credits, indebtedness or
claims, in any currency, in each case whether direct or indirect, absolute or contingent, matured
or unmatured, at any time held or owing by the Buyer or any Affiliate thereof to or for the credit
or the account of the Seller including any cash or collateral held by or in trust for Buyer under
any of the Securities Repurchase Agreement or the Corporate Loan. The Buyer may, following the
occurrence and during the continuation of a Default or an Event of Default, set-off cash, the
proceeds of the liquidation of any Purchased Items and all other sums or obligations owed by the
Buyer or its Affiliates to Seller against all of Seller’s obligations to the Buyer

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or its Affiliates, whether under this Agreement or under any other agreement between the
parties or between Seller and any Affiliate of the Buyer, including the Securities Repurchase
Agreement and the Corporate Loan, or otherwise, whether or not such obligations are then due,
without prejudice to the Buyer’s or its Affiliate’s right to recover any deficiency. The Buyer
agrees promptly to notify the Seller after any such set-off and application made by the Buyer;
provided that the failure to give such notice shall not affect the validity of such set-off and
application.

46. AMENDMENT AND RESTATEMENT

     The terms and provisions of the Existing Agreement shall be amended and restated in their
entirety by the terms and provisions of this Agreement. This Agreement is not intended to, and
shall not, effect a novation of any of the obligations of the parties to the Existing Agreement,
but merely an amendment and restatement of the terms governing such obligations.

47. ENTIRE AGREEMENT

     This Agreement and the other Program Documents embody the entire agreement and understanding
of the parties hereto and thereto and supersede any and all prior agreements, arrangements and
understandings relating to the matters provided for herein and therein. No alteration, waiver,
amendments, or change or supplement hereto shall be binding or effective unless the same is set
forth in writing by a duly authorized representative of each party hereto.

[SIGNATURE PAGE FOLLOWS]

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered as of the day and year first above written.

	 	 	 	 	 
	NATIONSTAR MORTGAGE LLC, a Delaware

limited liability company,

as Seller

 	 	 
	By:  	/s/ Gregory Oniu
 	 	 
	 	Name:  	Gregory Oniu 	 	 
	 	Title:  	Senior Vice President 	 	 
	 

Address for Notices:

Nationstar Mortgage LLC

350 Highland Drive

Lewisville, Texas 75067

Attention: Anne Sutherland, General Counsel

Facsimile: (469) 549-2085

	 	 	 	 	 
	THE ROYAL BANK OF SCOTLAND PLC (as 

assignee of RBS Financial Products, Inc.) as Buyer 

and Agent, as applicable

By:  RBS Securities, Inc., its agent

 	 	 
	By:  	/s/ Regina Abayev
 	 	 
	 	Name:  	Regina Abayev 	 	 
	 	Title:  	VP 	 	 
	 

Address for Notices:

The Royal Bank of Scotland PLC

600 Washington Blvd.

Stamford, Connecticut 06901

Attention: Legal with a copy to Asset-Backed

Finance at the same address

 

 

ANNEX I

BUYER ACTING AS AGENT

     This Annex I forms a part of the Fifth Amended and Restated Master Repurchase Agreement dated
as of January 27, 2010, (the “Agreement”) between Nationstar Mortgage LLC, and The Royal
Bank of Scotland PLC This Annex I sets forth the terms and conditions governing all transactions
in which the Buyer selling assets or buying assets, as the case may be (“Agent”), in a
Transaction is acting as agent for one or more third parties (each, a “Principal”);
provided that Buyer may not so act as Agent for a Principal without the prior written consent of
Seller. Capitalized terms used but not defined in this Annex I shall have the meanings ascribed to
them in the Agreement.

	1.	 	Additional Representations. Agent hereby makes the following representations,
which shall continue during the term of any Transaction: Principal has duly authorized Agent
to execute and deliver the Agreement and the other Program Documents on its behalf, has the
power to so authorize Agent and to enter into the Transactions contemplated by the Agreement
and the other Program Documents and to perform the obligations of the Buyer under such
Transactions, and has taken all necessary action to authorize such execution and delivery by
Agent and such performance by it.
	 
	2.	 	Identification of Principals. Agent agrees (a) to provide the other party,
prior to the date on which the parties agree to enter into any Transaction under the
Agreement, with a written list of Principals for which it intends to act as Agent (which list
may be amended in writing from time to time with the consent of the other party) and (b) to
provide the other party, before the close of business on the next business day after orally
agreeing to enter into a Transaction, with notice of the specific Principal or Principals for
whom it is acting in connection with such Transaction. If (i) Agent fails to identify such
Principal or Principals prior to the close of business on such next business day or (ii) the
other party shall determine in its sole discretion any Principal or Principals identified by
Agent are not acceptable to it, the other party may reject and rescind any Transaction with
such Principal or Principals, return to Agent any Purchased Assets or portion of the Purchase
Price, as the case may be, previously transferred to the other party and refuse any further
performance under such Transaction, and Agent shall immediately return to the other party any
portion of the Purchase Price or Purchased Assets, as the case may be, previously transferred
to Agent in connection with such Transaction; provided, however, that (A) the other party
shall promptly (and in any event within one business day) notify Agent of its determination to
reject and rescind such Transaction and (B) to the extent that any performance was rendered by
any party under any Transaction rejected by the other party, and such party shall remain
entitled to any Price Differential or other amounts that would have been payable to it with
respect to such performance if such Transaction had not been rejected. The other party
acknowledges that Agent shall not have any obligation to provide it with confidential
information regarding the financial status of its Principals; Agent agrees, however, that it
will assist the other party in obtaining from Agent’s Principals such Information regarding
the financial status of such Principals as the other party may reasonably request.
	 
	3.	 	Limitation of Agent’s Liability. The parties expressly acknowledge that if the
representations of Agent under the Agreement, including this Annex I, are true and correct in
all material respects during the term of any Transaction and Agent otherwise complies with the
provisions of this Annex I, then (a) Agent’s obligations under the Agreement shall not include
a guarantee of performance by its Principal or Principals; provided that Agent shall remain
liable for performance pursuant to Section 10 of the Agreement, and (b) the other party’s
remedies shall not

Annex 1-1

 

	 	 	include a right of setoff in respect of rights or obligations, if any, of Agent arising in
other transactions in which Agent is acting as principal.
	 
	4.	 	Multiple Principals.

(a) In the event that Agent proposes to act for more than one Principal hereunder,
Agent and the other party shall elect whether (i) to treat Transactions under the
Agreement as transactions entered into on behalf of separate Principals or (ii) to
aggregate such Transactions as if they were transactions by a single Principal.
Failure to make such an election in writing shall be deemed an election to treat
Transactions under the Agreement as transactions on behalf of a single Principal.

(b) In the event that Agent and the other party elect (or are deemed to elect) to
treat Transactions under the Agreement as transactions on behalf of separate
Principals, the parties agree that (i) Agent will provide the other party, together
with the notice described in Section 2(b) of this Annex I, notice specifying the
portion of each Transaction allocable to the account of each of the Principals for
which it is acting (to the extent that any such Transaction is allocable to the
account of more than one Principal); (ii) the portion of any individual Transaction
allocable to each Principal shall be deemed a separate Transaction under the
Agreement; (iii) the margin maintenance obligations of Seller under Section 6(a) of
the Agreement shall be determined on a Transaction-by-Transaction basis (unless the
parties agree to determine such obligations on a Principal-by-Principal basis); and
(iv) Buyer’s remedies under the Agreement upon the occurrence of an Event of Default
shall be determined as if Agent had entered into a separate Agreement with the other
party on behalf of each of its Principals.

(c) In the event that Agent and the other party elect to treat Transactions under
the Agreement as if they were transactions by a single Principal, the parties agree
that (i) Agent’s notice under Section 2(b) of this Annex I need only identify the
names of its Principals but not the portion of each Transaction allocable to each
Principal’s account; (ii) the margin maintenance obligations of Seller under Section
6(a) of the Agreement shall, subject to any greater requirement imposed by
applicable law, be determined on an aggregate basis for all Transactions entered
into by Agent on behalf of any Principal; and (iii) Buyer’s remedies upon the
occurrence of an Event of Default shall be determined as if all Principals were a
single Buyer.

(d) Notwithstanding any other provision of the Agreement (including, without
limitation, this Annex I), the parties agree that any Transactions by Agent on
behalf of an employee benefit plan under ERISA shall be treated as Transactions on
behalf of separate Principals in accordance with Section 4(b) of this Annex I (and
all margin maintenance obligations of the parties shall be determined on a
Transaction-by-Transaction basis).

	5.	 	Interpretation of Terms. All references to “Buyer” in the Agreement shall,
subject to the provisions of this Annex I (including, among other provisions, the limitations
on Agent’s liability in Section 3 of this Annex 1), be construed to reflect that (i) each
Principal shall have, in connection with any Transaction or Transactions entered into by Agent
on its behalf, the rights, responsibilities, privileges and obligations of a “Buyer”, directly
entering into such Transaction or Transactions with the other party under the Agreement, and
(ii) Agent’s Principal or Principals have designated Agent as their sole agent for performance
of Buyer’s obligations to Seller and for receipt of performance by Seller of its obligations
to Buyer in connection with any Transaction or Transactions under the Agreement (including,
among other things, as Agent for each Principal in

Annex 1-2

 

	 	 	connection with transfers of Loans, securities, cash or other property and as agent for
giving and receiving all notices under the Agreement). Both Agent and its Principal or
Principals shall be deemed “parties” to the Agreement and all references to a “party” or
“either party” in the Agreement shall be deemed revised accordingly.

Annex 1-3

 

SCHEDULE 1

REPRESENTATIONS AND WARRANTIES

     Representations and Warranties with Respect to Loans

     (a) Loans as Described. The information set forth in the Asset Schedule with respect
to the Loan is complete, true and correct in all material respects.

     (b) Payments Current. The first Monthly Payment shall have been made prior to the
second scheduled Monthly Payment becoming due.

     (c) No Outstanding Charges. To the Seller’s knowledge, there are no defaults in
complying with the terms of the Mortgage securing the Loan, and all taxes, governmental
assessments, insurance premiums, water, sewer and municipal charges, leasehold payments or ground
rents which previously became due and owing have been paid, or an escrow of funds has been
established in an amount sufficient to pay for every such item which remains unpaid and which has
been assessed but is not yet due and payable. Neither Seller nor the Qualified Originator from
which Seller acquired the Loan has advanced funds, or induced, solicited or knowingly received any
advance of funds by a party other than the Mortgagor, directly or indirectly, for the payment of
any amount required under the Loan, except for interest accruing from the date of the Note or date
of disbursement of the proceeds of the Loan, whichever is more recent, to the day which precedes by
one month the Due Date of the first installment of principal and interest thereunder.

     (d) Original Terms Unmodified. The terms of the Note and Mortgage have not been
impaired, waived, altered or modified in any respect, (i) from the date of final endorsement of the
Mortgage Note by HUD with respect to FHA Loans, and (ii) from the date of origination for all other
mortgage loans; except by a written instrument which has been recorded (or promptly will be
recorded, in the case of any of the foregoing that occurs after the related Purchase Date), if
necessary to protect the interests of the Buyer, and which has been delivered to the Custodian and
the terms of which are reflected in the Loan Schedule. The substance of any such waiver, alteration
or modification has been approved by the title insurer, to the extent required by the title
insurance policy and by the FHA for the related FHA Loans, and its terms are reflected on the Loan
Schedule. No Mortgagor in respect of the Loan has been released, in whole or in part, except in
connection with an assumption agreement approved by the title insurer, to the extent required by
such policy and by the FHA for the related FHA Loans, and which assumption agreement is part of the
Mortgage File delivered to the Custodian and the terms of which are reflected in the Loan Schedule.

     (e) No Defenses. The Loan is not subject to any right of Rescission, setoff,
counterclaim or defense, including without limitation the defense of usury, nor will the operation
of any of the terms of the Note or the Mortgage, or the exercise of any right thereunder, render
either the Note or the Mortgage unenforceable, in whole or in part or, with respect to FHA Loans,
impair Buyer’s ability to collect full insurance benefits under the FHA Mortgage Insurance
Contract, without indemnity to HUD, and no such right of Rescission, set-off, counterclaim or
defense has been asserted with respect thereto, and no Mortgagor in respect of the Loan was a
debtor in any state or Federal bankruptcy or insolvency proceeding at the time the Loan was
originated.

     (f) Hazard Insurance. The Mortgaged Property is insured by a fire and extended perils
insurance policy, issued by a Qualified Insurer, and such other hazards as are customary in the
area where the Mortgaged Property is located, and to the extent required by Seller as of the date
of origination consistent with the Underwriting Guidelines and Agency Guidelines, against
earthquake and other risks

SCHEDULE 1-1

 

insured against by Persons operating like properties in the locality of the Mortgaged
Property, in an amount not less than the greatest of (i) 100% of the replacement cost of all
improvements to the Mortgaged Property, (ii) the outstanding principal balance of the Loan with
respect to each First Lien Loan, or (iii) the amount necessary to avoid the operation of any
co-insurance provisions with respect to the Mortgaged Property, and consistent with the amount that
would have been required as of the date of origination in accordance with the Underwriting
Guidelines or (iv) the amount necessary to fully compensate for any damage or loss to the
improvements that are a part of such property on a replacement cost basis. If any portion of the
Mortgaged Property is in an area identified by any federal Governmental Authority as having special
flood hazards, and flood insurance is available, a flood insurance policy meeting the current
guidelines of the Federal Insurance Administration is in effect with a generally acceptable
insurance carrier, which policy conforms to the requirements of the FHA, if applicable, in an
amount representing coverage not less than the least of (1) the outstanding principal balance of
the Loan, (2) the full insurable value of the Mortgaged Property, and (3) the maximum amount of
insurance available under the Flood Disaster Protection Act of 1973, as amended. All such insurance
policies (collectively, the “Hazard Insurance Policy”) contain a standard mortgagee clause
naming Seller, its successors and assigns (including without limitation, subsequent owners of the
Loan), as mortgagee, and may not be reduced, terminated or canceled without thirty (30) days’ prior
written notice to the mortgagee. No such notice has been received by Seller. All premiums due and
owing on such insurance policy have been paid. The related Mortgage obligates the Mortgagor to
maintain all such insurance and, at such Mortgagor’s failure to do so, authorizes the mortgagee to
maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from
such Mortgagor. Where required by state law or regulation, the Mortgagor has been given an
opportunity to choose the carrier of the required hazard insurance, provided the policy is not a
“master” or “blanket” Hazard Insurance Policy covering a condominium, or any Hazard Insurance
Policy covering the common facilities of a planned unit development. The Hazard Insurance Policy is
the valid and binding obligation of the insurer and is in full force and effect. Seller has not
engaged in, and has no knowledge of the Mortgagor’s having engaged in, any act or omission which
would impair the coverage of any such policy, the benefits of the endorsement provided for herein,
or the validity and binding effect of either including, without limitation, no unlawful fee,
commission, kickback or other unlawful compensation or value of any kind has been or will be
received, retained or realized by any attorney, firm or other Person, and no such unlawful items
have been received, retained or realized by Seller.

     (g) Compliance with Applicable Laws. Any and all requirements of any federal, state
or local law including, without limitation, usury, truth-in-lending, all applicable predatory and
abusive lending, real estate settlement procedures, consumer credit protection, equal credit
opportunity or disclosure laws applicable to the origination and servicing of such Loan have been
complied with, the consummation of the transactions contemplated hereby will not involve the
violation of any such laws or regulations, and Seller shall maintain or shall cause its agent to
maintain in its possession, available for the inspection of Buyer, and shall deliver to Buyer, upon
three (3) Business Days’ request, evidence of compliance with all such requirements.

     (h) No Satisfaction of Mortgage. The Mortgage has not been satisfied, canceled,
subordinated or rescinded, in whole or in part, and the Mortgaged Property has not been released
from the lien of the Mortgage, in whole-or in part, nor has any instrument been executed that would
effect any such release, cancellation, subordination or Rescission other than in the case of a
release of a portion of the land comprising a Mortgaged Property or a release of a blanket Mortgage
which release will not cause the Loan to fail to satisfy the Underwriting Guidelines. Seller has
not waived the performance by the Mortgagor of any action, if the Mortgagor’s failure to perform
such action would cause the Loan to be in default, nor has Seller waived any default resulting from
any action or inaction by the Mortgagor.

Schedule 1-2

 

     (i) Location and Type of Mortgaged Property. The Mortgaged Property is located in the
state identified in the Asset Schedule and consists of a single parcel of real property with a
detached single family residence erected thereon, or a two- to four-family dwelling, or an
individual condominium unit in a condominium project, or an individual unit in a planned unit
development or a de minimis planned unit development, provided, however, that any condominium unit
or planned unit development shall conform with the applicable Agency requirements regarding such
dwellings. No portion of the Mortgaged Property is used for commercial purposes. The Mortgaged
Property shall not be the subject of a foreclosure proceeding nor shall the related Mortgagor be
the subject of a bankruptcy proceeding.

     (j) Valid Lien. The Mortgage is a valid, subsisting, enforceable and perfected first
lien and first priority security interest with respect to each Loan on the real property included
in the Mortgaged Property, including all buildings on the Mortgaged Property and all installations
and mechanical, electrical, plumbing, heating and air conditioning systems located in or annexed to
such buildings, and all additions, alterations and replacements made at any time with respect to
the. The lien of the Mortgage is subject only to:

     (1) the lien of current real property taxes and assessments not yet due and payable;

     (2) covenants, conditions and restrictions, rights of way, easements and other matters
of the public record as of the date of recording acceptable to prudent mortgage lending
institutions generally and specifically referred to in the lender’s title insurance policy
delivered to the originator of the Loan and (a) referred to or otherwise considered in the
appraisal made for the originator of the Loan or (b) which do not adversely affect the
Appraised Value of the related Mortgaged Property set forth in such appraisal; and

     (3) other matters to which like properties are commonly subject which do not materially
interfere with the benefits of the security intended to be provided by the Mortgage or the
use, enjoyment, value or marketability of the related Mortgaged Property.

Any security agreement, chattel mortgage or equivalent document related to and delivered in
connection with the Loan establishes and creates a valid, subsisting and enforceable first lien and
first priority security interest with respect to each Loan on the property described therein and
Seller has full right to pledge and assign the same to Buyer. The Mortgaged Property was not, as
of the date of origination of the Loan, subject to a mortgage, deed of trust, deed to secure debt
or other security instrument creating a lien subordinate to the lien of the Mortgage.

     (k) Validity of Mortgage Documents. The Note and the Mortgage and any other
agreement executed and delivered by a Mortgagor or guarantor, if applicable, in connection with a
Loan are genuine, and in full force and effect, and each is the legal, valid and binding obligation
of the maker thereof enforceable in accordance with its terms, subject to no right of Rescission,
set-off, counterclaim or defense. All parties to the Note, the Mortgage and any other such related
agreement had legal capacity to enter into the Loan and to execute and deliver the Note, the
Mortgage and any such agreement, and the Note, the Mortgage and any other such related agreement
have been duly and properly executed by such related parties. No fraud, error, omission,
misrepresentation, negligence or similar occurrence with respect to a Loan has taken place on the
part of any Person, including, without limitation, the Mortgagor, any appraiser, any builder or
developer, or any other party involved in the origination of the Loan. Seller has reviewed all of
the documents constituting the Servicing File and has made such inquiries as it deems necessary to
make and confirm the accuracy of the representations set forth herein. The related Note shall not
have been extinguished under relevant state law in connection with a judgment of foreclosure or
foreclosure sale or otherwise.

Schedule 1-3

 

     (l) Full Disbursement of Proceeds. The proceeds of the Loan have been fully
disbursed and there is no further requirement for future advances thereunder, and any and all
requirements as to completion of any on-site or off-site improvement and as to disbursements of any
escrow funds therefor have been complied with. All costs, fees and expenses incurred in making or
closing the Loan and the recording of the Mortgage were paid, and the Mortgagor is not entitled to
any refund of any amounts paid or due under the Note or Mortgage.

     (m) Ownership. Seller is the sole owner and holder of the Loan. All Loans acquired
by Seller from third parties (including affiliates) were acquired in a true and legal sale pursuant
to which such third party sold, transferred, conveyed and assigned to Seller all of its right,
title and interest in, to and under such Loan and retained no interest in such Loan. In connection
with such sale, such third party received reasonably equivalent value and fair consideration and,
in accordance with GAAP and for federal income tax purposes, reported the sale of such Loan to
Seller as a sale of its interests in such Loan. The Loan is not assigned or pledged, and Seller
has good, indefeasible and marketable title thereto, and has full right to transfer, pledge and
assign the Loan to Buyer free and clear of any encumbrance, equity, participation interest, lien,
pledge, charge, claim or security interest, and has full right and authority subject to no interest
or participation of, or agreement with, any other party, to assign, transfer and pledge each Loan
pursuant to this Agreement and following the pledge of each Loan, Buyer will hold such Loan free
and clear of any encumbrance, equity, participation interest, lien, pledge, charge, claim or
security interest except any such security interest created pursuant to the terms of this
Agreement.

     (n) Doing Business. All parties which have had any interest in the Loan, whether as
mortgagee, assignee, pledgee or otherwise, are (or, during the period in which they held and
disposed of such interest, were) (i) in compliance with any and all applicable licensing
requirements of the laws of the state wherein the Mortgaged Property is located, and (ii) either
(A) organized under the laws of such state, (B) qualified to do business in such state, (C) a
federal savings and loan association, a savings bank or a national bank having a principal office
in such state or (D) not doing business in such state.

     (o) LTV. As of the date of origination of the Loan, the LTV is as identified on the
Asset Schedule.

     (p) Title Insurance. The Loan is covered by either (i) an attorney’s opinion of title
and abstract of title, the form and substance of which is acceptable to prudent mortgage lending
institutions making mortgage loans in the area wherein the Mortgaged Property is located, (ii) an
ALTA lender’s title insurance policy or other generally acceptable form of policy or insurance
acceptable to Fannie Mae or Freddie Mac and each such title insurance policy is issued by a title
insurer acceptable to Fannie Mae or Freddie Mac and qualified to do business in the jurisdiction
where the Mortgaged Property is located, (iii) an attorney’s opinion of title and abstract of
title, the form and substance of which is acceptable to the FHA with respect to FHA Loans, or (iv)
an ALTA lender’s title insurance policy or other generally acceptable form of policy of insurance
acceptable to the FHA with respect to the FHA Loans, and each such title insurance policy is issued
by a title insurer acceptable to FHA and qualified to do business in the jurisdiction where the
Mortgaged Property is located, insuring the Seller, its successors and assigns, as to the first
priority lien of the Mortgage in the original principal amount of the Loan (including, to the
extent a Note provides for Negative Amortization, the maximum amount of Negative Amortization in
accordance with the Mortgage), subject only to the exceptions contained in clauses (1), (2), (3) of
paragraph (j) of this Part I of Schedule 1, and in the case of Adjustable Rate Loans,
against any loss by reason of the invalidity or unenforceability of the lien resulting from the
provisions of the Mortgage providing for adjustment to the Mortgage Interest Rate and Monthly
Payment. Where required by state law or regulation, the Mortgagor has been given the opportunity
to choose the carrier of the required mortgage title insurance. Additionally, such lender’s title
insurance policy affirmatively insures ingress and egress and against encroachments by or upon the
Mortgaged Property or any interest therein. The

Schedule 1-4

 

title policy does not contain any special exceptions (other than the standard exclusions) for
zoning and uses. Seller, its successors and assigns, are the sole insureds of such lender’s title
insurance policy, and such lender’s title insurance policy is valid and remains in full force and
effect and will be in force and effect upon the consummation of the transactions contemplated by
this Agreement. No claims have been made under such lender’s title insurance policy, and no prior
holder or servicer of the related Mortgage, including Seller, has done, by act or omission,
anything which would impair the coverage of such lender’s title insurance policy, including,
without limitation, no unlawful fee, commission, kickback or other unlawful compensation or value
of any kind has been or will be received, retained or realized by any attorney, firm or other
Person, and no such unlawful items have been received, retained or realized by Seller.

     (q) No Defaults. There is no default, breach, violation or event of acceleration
existing under the Mortgage or the Note and no event has occurred which, with the passage of time
or with notice and the expiration of any grace or cure period, would constitute a default, breach,
violation or event of acceleration, and neither Seller nor its predecessors have waived any
default, breach, violation or event of acceleration.

     (r) No Mechanics’ Liens. At origination, there were no mechanics’ or similar liens or
claims which have been filed for work, labor or material (and no rights are outstanding that under
the law could give rise to such liens) affecting the Mortgaged Property which are or may be liens
prior to, or equal or coordinate with the lien of the Mortgage.

     (s) Location of Improvements; No Encroachments. All improvements which were
considered in determining the Appraised Value of the Mortgaged Property lie wholly within the
boundaries and building restriction lines of the Mortgaged Property, and no improvements on
adjoining properties encroach upon the Mortgaged Property. No improvement located on or being part
of the Mortgaged Property is in violation of any applicable zoning and building law, ordinance or
regulation.

     (t) Origination; Payment Terms. The Loan was originated by or in conjunction with a
mortgagee approved by the Secretary of HUD pursuant to Sections 203 and 211 of the National Housing
Act, a savings and loan association, a savings bank, a commercial bank, credit union, insurance
company or similar mortgage lender which is supervised and examined by a federal or state
authority. Monthly Payments on the Loan commenced no more than sixty (60) days after funds were
disbursed in connection with the Loan. The Mortgage Interest Rate is adjusted, with respect to
Adjustable Rate Loans, on each Interest Rate Adjustment Date to equal the Index plus the Gross
Margin (rounded up or down to the nearest .125%), subject to the Mortgage Interest Rate Cap. The
Mortgage Note is payable on the first day of each month in equal monthly installments of principal
and interest, which installments of interest, with respect to an Adjustable Rate Mortgage Loan, are
subject to change due to the adjustments to the Mortgage Interest Rate on each Adjustment Date,
with interest calculated and payable in arrears, sufficient to amortize the Asset fully by the
stated maturity date, over an original term of not more than thirty (30) years from commencement of
amortization. No Loan is a Negative Amortization Loan. No Loan is an Interest Only Loan.

     (u) Customary Provisions. The Note has a stated maturity. The Mortgage contains
customary and enforceable provisions such as to render the rights and remedies of the holder
thereof adequate for the realization against the Mortgaged Property of the benefits of the security
provided thereby, including, (i) in the case of a Mortgage designated as a deed of trust, by
trustee’s sale, and (ii) otherwise by judicial foreclosure. Upon default by a Mortgagor on a Loan
and foreclosure on, or trustee’s sale of, the Mortgaged Property pursuant to the proper procedures,
the holder of the Loan will be able to deliver good and merchantable title to the Mortgaged
Property. There is no homestead or other

Schedule 1-5

 

exemption available to a Mortgagor which would interfere with the right to sell the Mortgaged
Property at a trustee’s sale or the right to foreclose the Mortgage.

     (v) Conformance with Underwriting Guidelines and Agency Standards. The Loan was
underwritten in accordance with the applicable Underwriting Guidelines and Agency Guidelines. The
Note and Mortgage are on forms similar to those used by Freddie Mac or Fannie Mae and Seller has
not made any representations to a Mortgagor that are inconsistent with the mortgage instruments
used.

     (w) Occupancy of the Mortgaged Property. As of the Purchase Date the Mortgaged
Property is either vacant or lawfully occupied under applicable law. To the best of Seller’s
knowledge, all inspections, licenses and certificates required to be made or issued with respect to
all occupied portions of the Mortgaged Property and, with respect to the use and occupancy of the
same, including but not limited to certificates of occupancy and fire underwriting certificates,
have been made or obtained from the appropriate authorities. The Seller has not received written
notification from any Governmental Authority that the Mortgaged Property is in material
non-compliance with such laws or regulations, is being used, operated or occupied unlawfully or has
failed to have or obtain such inspection, licenses or certificates, as the case may be. The Seller
has not received notice of any violation or failure to conform with any such law, ordinance,
regulation, standard, license or certificate. Except as otherwise set forth in the Loan Schedule,
the Mortgagor represented at the time of origination of the Loan that the Mortgagor would occupy
the Mortgaged Property as the Mortgagor’s primary residence.

     (x) No Additional Collateral. The Note is not and has not been secured by any
collateral except the lien of the corresponding Mortgage and the security interest of any
applicable security agreement or chattel mortgage referred to in clause (j) above.

     (y) Deeds of Trust. In the event the Mortgage constitutes a deed of trust, a trustee,
authorized and duly qualified under applicable law to serve as such, has been properly designated
and currently so serves and is named in the Mortgage, and no fees or expenses are or will become
payable by the Custodian or Buyer to the trustee under the deed of trust, except in connection with
a trustee’s sale after default by the Mortgagor.

     (z) Delivery of Mortgage Documents. If the Loan is a Dry Loan, the Note, the
Mortgage, the Assignment of Mortgage (other than for a MERS Loan) and any other documents required
to be delivered under the Custodial Agreement for each Loan have been delivered to the Custodian.
Seller or its agent is in possession of a complete, true and materially accurate Mortgage File in
compliance with the Custodial Agreement, except for such documents the originals of which have been
delivered to the Custodian.

     (aa) Transfer of Loans. The Assignment of Mortgage is in recordable form and is
acceptable for recording under the laws of the jurisdiction in which the Mortgaged Property is
located.

     (bb) Due-On-Sale. The Mortgage contains an enforceable provision for the acceleration
of the payment of the unpaid principal balance of the Loan in the event that the Mortgaged Property
is sold or transferred without the prior written consent of the mortgagee thereunder.

     (cc) No Buydown Provisions; No Graduated Payments or Contingent Interests. The Loan
does not contain provisions pursuant to which Monthly Payments are paid or partially paid with
funds deposited in any separate account established by Seller, the Mortgagor, or anyone on behalf
of the Mortgagor, or paid by any source other than the Mortgagor nor does it contain any other
similar provisions which may constitute a “buydown” provision. The Loan is not a graduated payment
mortgage loan and the Loan does not have a shared appreciation or other contingent interest
feature.

Schedule 1-6

 

     (dd) Consolidation of Future Advances. Any future advances made to the
Mortgagor prior to the origination of the Loan have been consolidated with the outstanding
principal amount secured by the Mortgage, and the secured principal amount, as consolidated, bears
a single interest rate and single repayment term. The lien of the Mortgage securing the
consolidated principal amount is expressly insured as having first lien priority with respect to
each Loan, by a title insurance policy, an endorsement to the policy insuring the mortgagee’s
consolidated interest or by other title evidence acceptable to Fannie Mae and Freddie Mac. The
consolidated principal amount does not exceed the original principal amount of the Loan.

     (ee) Mortgaged Property Undamaged. To Seller’s knowledge, the Mortgaged Property is
undamaged by waste, fire, earthquake or earth movement, windstorm, flood, tornado or other casualty
so as to materially and adversely affect the value of the Mortgaged Property as security for the
Loan or the use for which the premises were intended and each Mortgaged Property is in good repair.
There have not been any condemnation proceedings with respect to the Mortgaged Property and Seller
has no knowledge of any such proceedings.

     (ff) Collection Practices; Escrow Deposits: Interest Rate Adjustments. The
origination and collection practices used by the originator, each servicer of the Loan and Seller
with respect to the Loan have been in all material respects in compliance with Accepted Servicing
Practices, applicable laws and regulations, and have been in all material respects legal and
proper. With respect to escrow deposits and Escrow Payments, all such payments are in the
possession of, or under the control of, Seller and there exist no deficiencies in connection
therewith for which customary arrangements for repayment thereof have not been made. All Escrow
Payments have been collected in full compliance with state and federal law. An escrow of funds is
not prohibited by applicable law, has been established in an amount sufficient to pay for every
item that remains unpaid and has been assessed but is not yet due and payable. No escrow deposits
or Escrow Payments or other charges or payments due Seller have been capitalized under the Mortgage
or the Note. All Mortgage Interest Rate adjustments have been made in strict compliance with state
and federal law and the terms of the related Note. Any interest required to be paid pursuant to
state, federal and local law has been properly paid and credited.

     (gg) Conversion to Fixed Interest Rate. With respect to Adjustable Rate Loans, the
Loan is not convertible to a fixed interest rate Loan.

     (hh) Other Insurance Policies. No action, inaction or event has occurred and no state
of facts exists or has existed that has resulted or will result in the exclusion from, denial of,
or defense to coverage under any applicable special Hazard Insurance Policy, PMI Policy or
bankruptcy bond, irrespective of the cause of such failure of coverage. In connection with the
placement of any such insurance, no commission, fee, or other compensation has been or will be
received by Seller or by any officer, director, or employee of Seller or any designee of Seller or
any corporation in which Seller or any officer, director, or employee had a financial interest at
the time of placement of such insurance.

     (ii) Servicepersons’ Civil Relief Act. The Mortgagor has not notified Seller, and
Seller has no knowledge, of any relief requested or allowed to the Mortgagor under the
Servicepersons’ Civil Relief Act.

     (jj) Appraisal. The Mortgage File contains an appraisal of the related Mortgaged
Property signed prior to the approval of the Loan application by a qualified appraiser, duly
appointed by Seller or the Qualified Originator, who had no interest, direct or indirect in the
Mortgaged Property or in any loan made on the security thereof, and whose compensation is not
affected by the approval or disapproval of the Loan, and the appraisal and appraiser both satisfy
the requirements of Fannie Mae or Freddie Mac and

Schedule 1-7

 

Title XI of the Federal Institutions Reform, Recovery, and Enforcement Act of 1989 as amended
and the regulations promulgated thereunder, all as in effect on the date the Loan was originated.

     (kk) Disclosure Materials. The Mortgagor has executed a statement to the effect that
the Mortgagor has received all disclosure materials required by applicable law with respect to the
making of adjustable rate mortgage loans, and the Seller maintains such statement in the Mortgage
File.

     (ll) Construction or Rehabilitation of Mortgaged Property. No Loan was made in
connection with the construction or rehabilitation of a Mortgaged Property or facilitating the
trade-in or exchange of a Mortgaged Property.

     (mm) No Defense to Insurance Coverage. No action has been taken or failed to be
taken, no event has occurred and no state of facts exists or has existed on or prior to the
Purchase Date (whether or not known to Seller on or prior to such date) which has resulted or will
result in an exclusion from, denial of, or defense to coverage under any private mortgage insurance
(including, without limitation, any exclusions, denials or defenses which would limit or reduce the
availability of the timely payment of the full amount of the loss otherwise due thereunder to the
insured) whether arising out of actions, representations, errors, omissions, negligence, or fraud
of Seller, the related Mortgagor or any party involved in the application for such coverage,
including the appraisal, plans and specifications and other exhibits or documents submitted
therewith to the insurer under such insurance policy, or for any other reason under such coverage,
but not including the failure of such insurer to pay by reason of such insurer’s breach of such
insurance policy or such insurer’s financial inability to pay.

     (nn) Capitalization of Interest. The Note does not by its terms provide for the
capitalization or forbearance of interest.

     (oo) No Equity Participation. No document relating to the Loan provides for any
contingent or additional interest in the form of participation in the cash flow of the Mortgaged
Property or a sharing in the appreciation of the value of the Mortgaged Property. The indebtedness
evidenced by the Note is not convertible to an ownership interest in the Mortgaged Property or the
Mortgagor and Seller has not financed nor does it own directly or indirectly, any equity of any
form in the Mortgaged Property or the Mortgagor.

     (pp) Withdrawn Loans. If the Loan has been released to Seller pursuant to a Request
for Release as permitted under Section 6 of the Custodial Agreement, then the promissory note
relating to the Loan was returned to the Custodian within ten (10) days (or if such tenth day was
not a Business Day, the next succeeding Business Day).

     (qq) No Exception. Other than as noted by the Custodian on the Exception Report; no
Exception exists (as defined in the Custodial Agreement) with respect to the Loan which would
materially adversely affect the Loan or Buyer’s security interest, granted by Seller, in the Loan
as determined by Buyer in its sole discretion.

     (rr) Qualified Originator. The Loan has been originated by, and, if applicable,
purchased by Seller from, a Qualified Originator.

     (ss) Mortgage Submitted for Recordation. The Mortgage (other than for a MERS Loan)
has been submitted for recordation in the appropriate governmental recording office of the
jurisdiction where the Mortgaged Property is located.

Schedule 1-8

 

     (tt) Acceptable Investment. No specific circumstances or conditions exist with
respect to the Mortgage, the Mortgaged Property, the Mortgagor or the Mortgagor’s credit standing
(other than payment defaults or delinquencies) that should reasonably be expected to (i) cause
private institutional investors which invest in Loans similar to the Loan to regard the Loan as an
unacceptable investment, (ii) cause the Loan to be more likely to become past due in comparison to
similar Loans, or (iii) materially and adversely affect the value or marketability of the Loan in
comparison to similar Loans.

     (uu) Environmental Matters. To the best of the Seller’s knowledge, the Mortgaged
Property is free from any and all toxic or hazardous substances and there exists no violation of
any local, state or federal environmental law, rule or regulation.

     (vv) Ground Leases. With respect to each ground lease to which the Mortgaged Property
is subject (a “Ground Lease”): (i) the Mortgagor is the owner of a valid and subsisting
interest as tenant under the Ground Lease; (ii) the Ground Lease is in full force and effect,
unmodified and not supplemented by any writing or otherwise; (iii) all rent, additional rent and
other charges reserved therein have been paid to the extent they are payable to the date hereof;
(iv) the Mortgagor enjoys the quiet and peaceful possession of the estate demised thereby, subject
to any sublease; (v) the Mortgagor is not in default under any of the terms thereof and there are
no circumstances which, with the passage of time or the giving of notice or both, would constitute
an event of default thereunder; (vi) the lessor under the Ground Lease is not in default under any
of the terms or provisions thereof on the part of the lessor to be observed or performed; (vii) the
lessor under the Ground Lease has satisfied all of its repair or construction obligations, if any,
to date pursuant to the terms of the Ground Lease; (viii) the remaining term of the Ground Lease
extends not less than ten (10) years following the maturity date of such Loan; and (ix) the
execution, delivery and performance of the Mortgage do not require the consent (other than those
consents which have been obtained and are in full force and effect) under, and will not contravene
any provision of or cause a default under, the Ground Lease.

     (ww) Value of Mortgaged Property. Other than payment delinquencies, the Seller has no
knowledge of any circumstances existing that should reasonably be expected to materially and
adversely affect the value or the marketability of the Mortgaged Property or the Loan or to cause
the Loan to prepay during any period materially faster or slower than the Loans originated by the
Seller generally.

     (xx) HOEPA. No Loan is (a) subject to the provisions of 12 U.S.C. Section 226.32 of
Regulation Z implementing the Homeownership and Equity Protection Act of 1994 as amended (“HOEPA”),
(b) a “high cost” mortgage loan, “covered” mortgage loan, “high risk home” mortgage loan, or
“predatory” mortgage loan or any other comparable term, no matter how defined under any federal,
state or local law, (c) subject to any comparable federal, state or local statutes or regulations,
or any other statute or regulation providing for heightened regulatory scrutiny or assignee
liability to holders of such mortgage loans, or (d) a High Cost Loan or Covered Loan, as applicable
(as such terms are defined in the current Standard & Poor’s LEVELS® Glossary Revised, Appendix E).

     (yy) No Predatory Lending. 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 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
Loan.

     (zz) Georgia Mortgage Loans. No Loan which is secured by a Mortgaged Property which
is located in the state of Georgia was originated prior to March 7, 2004.

     (aaa) MERS Loans. With respect to each MERS Loan, a Mortgage Identification Number
has been assigned by MERS and such Mortgage Identification Number is accurately provided on the
Asset

Schedule 1-9

 

Schedule. The related Assignment of Mortgage to MERS has been duly and properly recorded.
With respect to each MERS Loan, Seller has not received any notice of liens or legal actions with
respect to such Loan and no such notices have been electronically posted by MERS.

     (bbb) Custodian. With respect to each Loan, the Custodian shall be in possession of
each required Loan Document for such Loan, other than a Document Deficient Loan or Loan Documents
that are released pursuant to the terms of the Custodial Agreement. With respect to each Loan
Document that has been released from the possession of the Custodian under Section 6(a) of the
Custodial Agreement to Seller or its bailee, such Loan Document shall be returned to the Custodian
within ten (10) calendar days (or if such tenth day is not a Business Day, the next succeeding
Business Day) of release thereof. With respect to each Loan Document that has been released from
the possession of the Custodian under Section 6(b) of the Custodial Agreement under any Transmittal
Letter such Loan Document shall be returned to the Custodian within the time period stated in such
Transmittal Letter. With respect to each Loan Document that has been released from the possession
of the Custodian under Section 6(c) of the Custodial Agreement under an Attorney Bailee Letter,
such Loan Document shall be returned to the Custodian from and after the date such Attorney’s
Bailee Letter is terminated or ceases to be in full force and effect.

     (ccc) Agency Eligible Loan. Each Agency Eligible Loan was originated in Strict
Compliance with the Agency Guidelines.

     (ddd) Non-Conforming Loans. With respect to each Non-Conforming Loan, (i) the Loan is
subject to a Takeout Commitment with a Takeout Investor that is approved by Buyer, (iii) such
Takeout Commitment is enforceable, and in full force and effect, (iv) such related Takeout
Commitment is validly and effectively assigned to Buyer pursuant to a Trade Assignment, and (v)
such Trade Assignment is enforceable, and in full force and effect;

     (eee) Agency Takeout Loans. With respect to each Agency Takeout Loan, the Loan is an
Agency Eligible Loan, and is subject to a Takeout Commitment with a Takeout Investor that is an
Agency.

     (fff) Early Purchase Program Loans. With respect to each Early Purchase Program Loan,
(i) the Loan is an Agency Eligible Loan, (ii) such Loan is pooled with other Early Purchase Program
Loans that satisfy the “Good Delivery Guidelines” promulgated by SIFMA, (iii) the Related Security
is subject to a Takeout Commitment, (iv) the applicable Agency documents list Buyer as sole
subscriber with respect to the Related Security, and (v) to the extent applicable, such Loan is
being serviced by a Subservicer having all Approvals necessary to make such Loan eligible to back
such Related Security.

     (ggg) Takeout Commitment. Each Loan that is subject to a Takeout Commitment, (i) does
not exceed the availability under such Takeout Commitment (taking into consideration mortgage loans
or securities, as applicable, which have been purchased by the respective Takeout Investor under
the Takeout Commitment), (ii) conforms to the requirements and the specifications set forth in such
Takeout Commitment and the related regulations, rules, requirements and/or handbooks of the
applicable Takeout Investor, and (iii) is eligible for sale to and insurance or guaranty by,
respectively the applicable Takeout Investor and applicable insurer. Each such Takeout Commitment
is enforceable, in full force and effect and is validly and effectively assigned to Buyer pursuant
to a Trade Assignment. Each such Trade Assignment is enforceable and in full force and effect.
Each Takeout Commitment and Trade Assignment is a legal, valid and binding obligation of Seller
enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency
and similar laws affecting creditors’ rights generally and subject, as to enforceability, to
general principles of equity (regardless of whether enforcement is sought in a proceeding in equity
or at law).

Schedule 1-10

 

     (hhh) FHA Mortgage Insurance; VA Loan Guaranty. With respect each FHA Loan or VA
Loan, (i) the FHA Mortgage Insurance Contract is in full force and effect and there exists no
impairment to full recovery without indemnity to HUD under FHA Mortgage Insurance, or the VA Loan
Guaranty Agreement is in full force and effect to the maximum extent stated therein, as applicable,
(ii) all necessary steps have been taken to keep such guaranty or insurance valid, binding and
enforceable and each of such is the binding, valid and enforceable obligation of the FHA and the
VA, respectively, to the full extent thereof, without surcharge, set-off or defense, (iii) such
Loan is insured, or eligible to be insured, pursuant to the National Housing Act or is guaranteed,
or eligible to be guaranteed, under the provisions of Chapter 37 of Title 38 of the United States
Code, as applicable, (iv) with respect to each FHA insurance certificate or VA guaranty
certificate, Seller has complied with applicable provisions of the insurance for guaranty contract
and federal statutes and regulations, all premiums or other charges due in connection with such
insurance or guarantee have been paid, there has been no act or omission which would or may
invalidate any such insurance or guaranty, and the insurance or guaranty is, or when issued, will
be, in full force and effect with respect to such Loan, (v) Seller has no knowledge of any
defenses, counterclaims, or rights of setoff affecting such Loan or affecting the validity or
enforceability of any private mortgage insurance or FHA Mortgage Insurance or VA Loan Guaranty with
respect to such Loan, and (vi) Seller has no knowledge of any circumstance which would cause such
Loan to be ineligible for FHA Mortgage Insurance or a VA Loan Guaranty, as applicable, or cause FHA
or VA to deny or reject the related Mortgagor’s application for FHA Mortgage Insurance or a VA Loan
Guaranty, respectively.

     Part II. Representations and Warranties with respect to Securities

     (a) Compliance with Applicable Laws. Each Security has been validly issued, and is
fully paid and non assessable, and has been issued in compliance with all applicable laws,
including without limitation, the applicable Agency Guidelines.

     (b) No Encumbrances. There are (i) no outstanding rights, options, warrants or
agreements (other than as created by Buyer) for a purchase, sale or issuance, in connection with
any Security, (ii) no agreements on the part of the Seller to issue, sell or distribute the
Securities, and (iii) no obligations on the part of the Seller (contingent or otherwise) to
purchase, redeem or otherwise acquire any securities or any interest therein or to pay any dividend
or make any distribution in respect of the Securities.

     (c) Unencumbered Assets. The Securities are unencumbered (other than Liens created in
favor of Buyer pursuant to this Agreement and Liens created by or through Buyer).

     (d) Proper Form. The Securities are in uncertificated form and held through the
facilities of the applicable Depository.

     (e) Takeout Commitments. The Security is subject to a valid, binding and subsisting
Takeout Commitment enforceable in accordance with its terms.

Part III. [Reserved].

Part IV. [Reserved].

Schedule 1-11

 

Schedule 2

Filing Jurisdictions and Offices

Delaware

Schedule 2-1

 

Schedule 3

Relevant States

All 50 States and the District of Columbia

Schedule 3-1

 

Schedule 4

Subsidiaries

	•	 	Nationstar Equity Corporation (Nevada)
	 
	•	 	Centex Land Vista Ridge Lewisville III General Partner, LLC (Delaware)

	 	•	 	Centex Land Vista Ridge Lewisville III, L.P. (Delaware)

	•	 	CHEC Asset Receivable Corporation (Nevada)
	 
	•	 	CHEC Conduit Funding, LLC (Delaware)
	 
	•	 	Nationstar Funding, LLC (Delaware)
	 
	•	 	Nationstar Industrial Loan Company (Tennessee)
	 
	•	 	Industrial Loan Corporation (Minnesota)
	 
	•	 	Nationstar Properties II LLC (Delaware)
	 
	•	 	Nationstar Mortgage Properties LLC (Delaware)
	 
	•	 	Nationstar Residual, LLC (Delaware)
	 
	•	 	Harwood Insurance Services, LLC (California)
	 
	•	 	Harwood Company of Georgia, LLC (Georgia)
	 
	•	 	Harwood Service Company of New Jersey, LLC (New Jersey)
	 
	•	 	Harwood Service Company LLC (Delaware)
	 
	•	 	Homeselect Settlement Solutions, LLC (Delaware)
	 
	•	 	Nationstar Home Equity Loan 2009-A REO LLC (Delaware)
	 
	•	 	Nationstar 2009 Equity Corporation (Delaware)

Schedule 4-1

 

EXHIBIT A

QUARTERLY CERTIFICATION

     I, _______________________, _______________________ of Nationstar Mortgage LLC (the
“Seller”), in accordance with that certain Fifth Amended and Restated Master Repurchase
Agreement (“Agreement”), dated as of January 27, 2010, between the Seller and The Royal
Bank of Scotland PLC do hereby certify that:

     (ii) The Seller is in compliance in all material respects with all provisions and
terms of the Agreement and all other Program Documents;

     (iii) no Default or Event of Default has occurred under the Agreement;

     (iv) all material modifications to the Underwriting Guidelines since the date of
the most recent disclosure to Buyer of any modification to the Underwriting Guidelines
have been provided to the Buyer; and

     (iv) (A) Seller’s Tangible Net Worth, from December 31, 2008 and thereafter, has at
all times exceeded $150,000,000; (B) Seller’s ratio of Total Liabilities to its Tangible
Net Worth has not at any time from December 31, 2008 and thereafter been greater than
12:1; and (C) as of [___], the Seller’s Liquidity is not less than $20,000,000.
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: __________, 201__

	 	 	 	 	 
	 	NATIONSTAR MORTGAGE LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

A-1

 

	 	 	 	 	 

EXHIBIT B

FORM OF TRADE ASSIGNMENT

__________ (“Takeout Investor”)

(Address)

Attention:

Fax No.:

Dear Sirs:

     Attached hereto is a correct and complete copy of your confirmation of commitment (the
“Commitment”), trade-dated _________ __, ____, to purchase

[FOR MORTGAGE LOANS] [residential mortgage loans, on a servicing released basis, having an unpaid
principal balance of $_______ as of [_____] (the “Mortgage Loans”)] at a purchase price of
$___________ from _________ on [insert closing date]

[FOR SECURITIES]. [$______of __% ___ year,

(Check Box)

	 	(a)	 	Ginnie Mae;
	 
	 	(b)	 	Fannie Mae; or
	 
	 	(c)	 	Freddie Mac

mortgage-backed pass-through securities (“Securities”) at a purchase price of $___________
from _________ on [insert Settlement Date].

     Our intention is to assign $_____ of this Commitment’s full amount. This is to confirm that
(i) the form of this assignment conforms to the SIFMA guidelines, (ii) the Commitment is in full
force and effect, (iii) the Commitment has been assigned to The Royal Bank of Scotland plc (“RBS”)
as security for the Obligations of the Seller under the Master Repurchase Agreement whose
acceptance of such assignment is indicated below, [and] (iv) upon delivery of this trade assignment
to you by RBS you will accept Seller’s direction set forth herein to pay RBS for such [Mortgage
Loans/Securities], [(v) you will accept delivery of such Securities directly from RBS, (vi) RBS is
obligated to make delivery of such Securities to you in accordance with the attached Commitment and
(vii) you have released Seller from its obligation to deliver the Securities to you under the
Commitment.] Payment will be made “delivery versus payment (DVP)” to RBS in immediately available
funds.

B-1

 

     If you have any questions, please call _______________ at (___) __-____ immediately or contact
him by fax at (___) __-___.

 Very truly yours,

 [_____________]

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Title: 	 
	 	 	Date: 	 
	 

Agreed to:

The Royal Bank of Scotland plc

By: RBS Securities Inc., its agent

	 	 	 	 	 
	 	 	 
	By:  	 	 	 
	 	Title: 	 	 	 
	 	Date: 	 	 	 
	 

Notice of delivery and confirmation of receipt are the obligations of RBS. Prompt notification of
incorrect information or rejection of the trade assignment should be made to [______].

B-2

 

EXHIBIT C

FORM OF PARTICIPATION CERTIFICATE

POOL NO. (or Freddie Mac CONTRACT NO.):

     This Participation Certificate evidences a one hundred percent (100%) undivided beneficial
ownership interest in (including the right to receive the payments of principal of and interest on)
the Loans and the rights that Seller has in and to such Loans (the “Participation”)
identified:

(Check Box)

	 	(a)	 	Form HUD 11706 (Schedule of Pooled Mortgages);
	 
	 	(b)	 	Fannie Mae Form 2005 (Schedule of Mortgages); or
	 
	 	(c)	 	Freddie Mac Form 1034 (Fixed-Rate Custodial Certification Schedule) or
Selling System computer tape.

     The Participation has been sold to The Royal Bank of Scotland plc (“Buyer”) pursuant to the
terms of that certain Master Repurchase Agreement, dated January 27, 2010 (as amended, restated,
supplemented or otherwise modified from time to time, the “Agreement”) between Nationstar
Mortgage LLC, and Buyer. Capitalized terms used but not defined herein shall have the meanings set
forth in the Agreement, the terms of which are hereby incorporated by reference and made a part of
this Participation Certificate.

     Upon delivery of the Related Security to Buyer or its assignee, Buyer’s beneficial ownership
interest in the Related Loans evidenced in this Participation Certificate shall terminate in
exchange for such Security, and this Participation Certificate shall be void and of no further
effect. If a Removal Date shall occur with respect to a Related Loan underlying this Participation
Certificate, this Participation Certificate shall be void and of no further effect with respect to
such Related Loan and such Related Loan shall automatically become a Purchased Asset in accordance
with the terms of the Agreement.

     This Participation Certificate may be amended only by a written agreement between Seller and
Buyer.

	 	 	 	 	 
	 	NATIONSTAR MORTGAGE LLC

 	 
	 	By:  	 	 
	 	 	Its: 	 
	 	 	Date: 	 
	 

AGGREGATE PRINCIPAL BALANCES OF THE LOANS (GIVING EFFECT TO PAYMENTS MADE AS OF _______, ____):
$_____________________

C-1

 

EXHIBIT D

FORM OF TRANSACTION NOTICE

[insert date]

The Royal Bank of Scotland plc

600 Washington Blvd.

Stamford, Connecticut 06901

Attention: _______________________

          Transaction Notice No.: _____________________

Ladies/Gentlemen:

          Reference is made to the Fifth Amended and Restated Master Repurchase Agreement, dated as of
January 27, 2010 (as amended, restated, supplemented or otherwise modified from time to time, the
“Repurchase Agreement”; capitalized terms used but not otherwise defined herein shall have the
meaning given them in the Repurchase Agreement), between Nationstar Mortgage LLC (the “Seller”) and
The Royal Bank of Scotland plc (the “Buyer”).

          In accordance with Section 3(a) of the Repurchase Agreement, the undersigned Seller hereby
requests that you, Buyer, agree to enter into a Transaction with us in connection with our delivery
of Loans (or 100% beneficial interests therein) on ____________________ [insert requested Purchase
Date, which in the case of Dry Loans must be at least two (2) Business Days following the date of
the request] (the “Purchase Date”), in connection with which we shall sell to you the Loans
(or 100% beneficial interests therein) set forth on the Asset Schedule attached hereto. The
Purchase Price shall be ______ [insert applicable Purchase Price pursuant to the terms of the
Pricing Side Letter], the Pricing Rate shall be _____ [insert applicable Pricing Rate pursuant to
the terms of the Pricing Side Letter], and Seller agrees to repurchase such Loans (or 100%
beneficial interests therein) on _________ [insert requested Repurchase Date] at the Repurchase
Price.

          Seller hereby certifies, as of such Purchase Date, that:

     1. no Event of Default has occurred and is continuing on the date hereof nor will occur
after giving effect to such Transaction as a result of such Transaction;

     2. each of the representations and warranties made by Seller in or pursuant to the Program
Documents is true and correct in all material respects on and as of such date (in the case of the
representations and warranties in respect of Assets, solely with respect to Assets being purchased
on the Purchase 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 where the
failure to maintain such licenses, authorizations and qualifications would not have a Material
Adverse Effect; and

     4. Seller has satisfied all conditions precedent in Sections 9(a) and (b) of the Repurchase
Agreement and all other requirements of the Program Documents.

D-1

 

	 	 	 	 	 
	 	Very truly yours,

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

D-2

 

	 	 	 	 	 

EXHIBIT E

UNDERWRITING GUIDELINES

[Underwriting guidelines to be attached]

E-1

 

Nationstar
FHA Matrix

     2/16/2009

																																	
	 
	 	

Purchase

	 
	 	Owner Occupied	 	 	Max Loan Amt	 	 	Maximum	 	 	Min FICO (10)	 	 	MAX D/R (14)
(front/back)	 	 	Mortgage
History
(last 12 mos)	 	 	Ch 7 discharge	 
	 	 	 	 	 	LTV (19) (20)	 	 	 	 	 	 	 	 	 
	 	Primary
	 	 	1 unit	 	 	see county 
limit chart	 	 	 	 	96.50	%	 	 	 	 	 	 	 	620	 	 	 	31% / 43%	 	 	1 x 30	 	 	3 2 yrs	 
	 	Primary
	 	 	1-2 unit	 	 	see county 

limit chart	 	 	 	 	96.50	%	 	 	 	 	 	 	 	620	 	 	 	31% / 43%	 	 	1 x 30	 	 	3 2 yrs	 
	 
	 
	 
	 	

Rate/ Term Refi

	 
	 	Owner Occupied	 	 	Max Loan Amt	 	 	Maximum	 	 	Min
FICO (10)
(Incl. Streamline)	 	 	MAX D/R (14)
(front/back)	 	 	Mortgage
History
(last 12 mos)	 	 	Ch 7 discharge	 
	 	 	 	 	 	LTV (19)	 	 	 	 	 	 	 	 	 
	 	Primary
	 	 	1 unit	 	 	see county 

limit chart	 	 	 	 	97.75	%	 	 	 	 	 	 	 	620	 	 	 	31% / 43%	 	 	1 x 30	 	 	3 2 yrs	 
	 	Primary
	 	 	1-2 unit	 	 	see county 

limit chart	 	 	 	 	97.75	%	 	 	 	 	 	 	 	620	 	 	 	31% / 43%	 	 	1 x 30	 	 	3 2 yrs	 
	 
	 
	 
	 	
    
Cashout Refinance (Not allowed in Texas)

	 
	 	Owner Occupied	 	 	Max Loan Amt	 	 	Maximum	 	 	Min FICO (10)	 	 	MAX D/R (14)
(front/back)	 	 	Mortgage
History
(last 12 mos)	 	 	Ch 7 discharge	 
	 	 	 	 	 	LTV	CLTV (19)	 	 	 	 	 	 	 	 	 
	 	Primary
	 	 	1-2 unit	 	 	see county 

limit chart	 	 	 	95% (26)	 	 	 	 	90	%	 	 	 	620	 	 	 	31% / 43%	 	 	0 x 30	 	 	3 2 yrs	 
	 	Primary
	 	 	1-2 unit	 	 	see county 
limit chart	 	 	 	85% (27)	 	 	 	 	85	%	 	 	 	620	 	 	 	31% / 43%	 	 	0 x 30	 	 	3 2 yrs	 
	 

	 	 	 	 	 	 	 	 

	 	 	 	 	 	 
	 	Underwriting Guideline Requirements (all loans must be submitted through FHA’s Total Scorecard)	 
	 	Collateral
	 
	 	1
	 	 	Condos	 	Must be FHA approved-51% owner occupancy required	 
	 	 
	 	 	 	 	 	 
	 	2
	 	 	Land Contracts	 	Six months seasoning requirements-proof of payments required. Rate/term only. Use lesser of purchase price or appraised value for FMV.	 
	 	 
	 	 	 	 	 	 
	 	3
	 	 	Listed For Sale	 	Properties listed for sale in the past 6 months require level 80 approval	 
	 	 
	 	 	 	 	 	 
	 	4
	 	 	Seasoning	 	Sales contracts dated within 90 days of previous sale 90 days to 1 yr require second appraisal	 
	 	 
	 	 	 	 	 	 
	 	5
	 	 	DW Mobile Homes	 	Not eligible for financing.	 
	 	Credit
	 
	 	6
	 	 	Bankruptcy	 	Ch 7 discharged for 24 mos. Discharged Ch 13 requires 12 month satisfactory pay history; Chapter 13 payoffs on exception basis only and require level 80 approval.	 
	 	 
	 	 	 	 	 	 
	 	7
	 	 	Collections/Chargeoffs	 	No pay off required unless they affect lien position or required by findings.	 
	 	 
	 	 	 	 	 	 
	 	8
	 	 	Judgements/Liens	 	Outstanding judgements and liens must be paid if they affect title- exceptions for 12 mos repayment plan with subordination agreement.	 
	 	 
	 	 	 	 	 	 
	 	9
	 	 	Foreclosure	 	Must be >3yrs from date of trustee’s deed or FHA claim (CAIVRS-if applicable)	 
	 	 
	 	 	 	 	 	 
	 	10
	 	 	FICO	 	Use the lowest FICO (middle of 3; lower of 2) for all borrowers.	 
	 	 
	 	 	 	 	 	 
	 	11
	 	 	Minimum Payment	 	5% of balance for revolving/installment accounts	 
	 	 
	 	 	 	 	 	 
	 	12
	 	 	Mortgage/Rental History	 	Full 12 month history required; All mtgs 1x30 in 12mos. No rolling 30’s allowed.	 
	 	 
	 	 	 	 	 	 
	 	13
	 	 	Other Requirements	 	NSF activity, private mortgage lates, delinquent CAIVRS, LDP or GSA findings, and any other credit delinquencies will supercede any “Accept” or “Approve/Eligible” finding; manual u/w review is required.	 
	 	Income
/ Assets
	 
	 	14
	 	 	Debt Ratio	 	31% / 43% max DTI (exceptions over 31% / 43% must meet compensating factor, FICO, reserve and finding requirements and requires level 80 approval) Fixed income may not be grossed up.	 
	 	 
	 	 	 	 	 	 
	 	15
	 	 	Non Purchasing Spouse	 	Credit report required in community property states. Credit is not considered. Debts must be added to DTI Ratio.	 
	 	 
	 	 	 	 	 	 
	 	16
	 	 	Documentation	 	Full income documentation loans only; DU/LP stipulations are acceptable (must have paystub, W2(s), Tax Return(s), 1099(s) or combination thereof are required. Stips requiring only written/verbal VOE’s or bank statements require level 80 approval.	 
	 	 
	 	 	 	 	 	 
	 	17
	 	 	Minimum Reserves	 	Not required unless specified by findings. Reduce verified reserves/assets by the amount of up front closing fees customer paid by credit card. (ie: appl. fee, appraisal fee, etc.);	 
	 	 
	 	 	 	 	 	 
	 	18
	 	 	Non Occupant coborrower	 	May not be added in order to qualify for the new mortgage	 
	 	 
	 	 	 	 	 	 
	 	19
	 	 	Subordinate Financing/CLTV’s	 	Unlimited CLTV for re-subordination of any existing subordinate financing; New subordinate financing allowed on rate/term.	 
	 	Purchase
Money
	 
	 	20
	 	 	Buyer Contribution	 	Minimum investment of 3.50% required. Closing costs CAN NOT be included for required investment.	 
	 	 
	 	 	 	 	 	 
	 	21
	 	 	Seller Contribution	 	Max 6% must include contributions by all interested parties	 
	 	Products
	 
	 	22
	 	 	Minimum Loan Size	 	Loans under $75,000 require level 80 approval	 
	 	 
	 	 	 	 	 	 
	 	23
	 	 	Maximum Loan Size	 	See Matrix above	 
	 	 
	 	 	 	 	 	 
	 	24
	 	 	Cashout	 	Maximum $500 on Rate/Term Refinance less appraisal payment on credit card (not allowed in Texas). $200,000 max on cashout refinances.	 
	 	 
	 	 	 	 	 	 
	 	25
	 	 	Texas 50 (a)(6)	 	No refinancing of Texas Home Equity loans allowed	 
	 	 
	 	 	 	 	 	 
	 	26
	 	 	Second appraisal	 	Required on all cash out refinances >85%. No case number is assigned but must be FHA approed	 
	 	 
	 	 	 	 	 	 
	 	27
	 	 	85% LTV	 	Restriction applies to all properties owned less than 12 months by all borrowers	 
	 	 	 	 	 	 

             Note: All matrix requirements must be met regardless of Total Scorecard Findings

E-2

 

Nationstar FHA Streamline Matrix

     2/19/2009

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	Streamline
without appraisal
	 	 	 	 	 	 	 	 	 	Maximum	 	 	 	 	 	 	 	Mortgage	 	 	 	 
	 	Owner Occupied	 	 	Max Loan Amt	 	 	LTV (14) (15)	 	 	
Min FICO (10)	 	 	MAX D/R	 	 	History
(last 12 mos)	 	 	Upfront MI	 
	 	Primary	 	 	1 unit	 	 	May not exceed original note amount	 	 	N/A	 	 	N/A	 	 	N/A	 	 	0 x 30	 	 	1.50%	 
	 
	
Streamline with appraisal
	 	Owner Occupied	 	 	Max Loan Amt	 	Maximum	 	Min FICO  (10)	 	 	MAX D/R	 	 	Mortgage
History
(last 12 mos)	 	 	Upfront MI	 
	 	 	 	 	 	LTV (14) (15)	 	 	 	 	 	 	 	 	 
	 	Primary	 	 	1 unit	 	 	see county 
limit chart	 	 	97.75%	 	 	N/A	 	 	n/a	 	 	0 x 30	 	 	1.50%	 
	 

Underwriting Guideline Requirements (all loans must be submitted through FHA’s Total Scorecard)

	 	 	 	 	 

	Collateral

	1
	 	Condos	 	Streamline With Appraisal-Must be FHA approved-51% OO required-not required for Streamline w/o appraisal
	2
	 	Listed For Sale	 	Properties listed for sale in the past 6 months require level 80 approval
	3
	 	DW Mobile Homes	 	Not eligible for financing.
	4
	 	Seasoning	 	Assumed properties not eligible for 6 months
	5
	 	 	 	Deleting individuals from title-must prove 12 months payments from separate funds.
	Credit

	6
	 	Bankruptcy	 	May not currently be in bankruptcy
	7
	 	Collections/Chargeoffs	 	No pay off required unless they affect lien position or required by findings.
	8
	 	Judgements/Liens	 	Outstanding judgements and liens must be paid if they affect title- exceptions for 12 mos repayment plan with
subordination agreement.
	9
	 	Mortgage/Rental History	 	Full 12 month history required; All mtgs 0x30 in 12mos.
	10
	 	FICO	 	Use the lowest FICO (middle of 3; lower of 2) for all borrowers. 580 minimum score
	11
	 	Other Requirements	 	1) ARM to ARM-P&I must decrease and max rate on new loan cannot exceed original loan 2) ARM to Fixed-Interest rate may not
increase more than 2% 3) Fixed to ARM-Rate must decrease 2% 4)Hybrid ARM to Fixed and shorter term-P&I can not increase
more than 20% 5) 203K to 203B-work must be complete
	Income / Assets

	12
	 	Non Purchasing Spouse	 	Credit report required in community property states.
	13
	 	Documentation	 	No income or asset documentation is required. 1003 sections for income, assets and liabilities do not have to be completed
	14
	 	Subordinate Financing/CLTV’s	 	Unlimited CLTV for re-subordination of any existing subordinate financing; New subordinate financing is not allowed.
	Purchase Money

	15
	 	Maximum Fees	 	No more than 10% may be rolled in to the loan amount-including closing costs and prepaids
	16
	 	Seller Contribution	 	Max 6% must include contributions by all interested parties
	Products

	17
	 	Minimum Loan Size	 	Loans under $75,000 require level 80 approval
	18
	 	Maximum Term	 	Streamline w/o appraisal-remaining term plus 12 years
	19
	 	Cashout	 	Maximum $500 (not allowed in Texas).
	20
	 	Texas 50 (a)(6)	 	No refinancing of Texas Home Equity loans allowed
	21
	 	Benefit to borrower	 	P&I payment must be reduced by $50-Exception when shortening term of mortgage in which case increase may be no more than
$50

         Note: All matrix requirements must be met regardless of Total Scorecard Findings

E-3

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 		 
	 	
Nationstar Agency High Balance Loan Matrix with LTV < 80%

MI not required	 	 	2/16/2009	 	 	 
	 	Purchase & Rate/ Term Refinance	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Mortgage History	 	 	 	 
	 	Owner Occupied

	 	 	Max Loan Amt

	 	 	Max LTV / CLTV

	 	 	Min FICO (13) (17)

	 	 	MAX D/R (15)

	 	 	(last 12 mos) (14)

	 	 	BK History

	 
	 	Primary
	 	 	1 unit	 	 	See FNMA
 County Matrix	 	 	80% / 90%	 	 	580	 	 	45%	 	 	0 x 30	 	 	Filed 
> 4 yrs	 
	 	Primary
	 	 	2 unit	 	 	See FNMA
 County Matrix	 	 	75%	 	 	580	 	 	45%	 	 	0 x 30	 	 	Filed 
> 4 yrs	 
	 	Second Home
	 	 	1unit	 	 	See FNMA
 County Matrix	 	 	N/A	 	 	N/A	 	 	N/A	 	 	N/A	 	 	N/A	 
	 	Investment
	 	 	1unit	 	 	See FNMA
 County Matrix	 	 	N/A	 	 	N/A	 	 	N/A	 	 	N/A	 	 	N/A	 
	 	 	 
	 	Cashout Refinance	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Mortgage History	 	 	 	 
	 	Owner Occupied

	 	 	Max Loan Amt

	 	 	Max LTV / CLTV

	 	 	Min FICO (12)

	 	 	MAX D/R (15)

	 	 	(last 12 mos) (15)

	 	 	BK History

	 
	 	Primary	 	 	1 unit	 	 	N/A	 	 	75%	 	 	580	 	 	45%	 	 	0 x 30	 	 	Filed
 > 4 yrs	 
	 	 	 
	 	
Nationstar Agency High Balance Loan Matrix with LTV > 80% 

MI required	 	 	 	 	 	 	 
	 	Purchase Money & Rate Term Refinance Only	 
	 	 	 	 	 	 	 	 	 	 	Maximum (7)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Owner Occupied

	 	 	Max Loan Amt

	 	 	LTV / CLTV

	 	 	Restricted 
LTV

	 	 	Min FICO

	 	 	MAX D/R(15)

	 	 	Mortg. History (14)

(last 12 mos)

	 	 	BK History

	 
	 	Primary

	 	 	1 unit

	 	 	
See FNMA
 County Matrix	 	 	90%

	 	 	85%

	 	 	700

	 	 	45%

	 	 	0 x 30

	 	 	Discharged
 >4 yrs	 
	 	 	 
	 	Cashout Refinance	 
	 	 	 	 	 	 	 	 	 	 	Maximum	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Mortg. History	 	 	 	 
	 	Owner Occupied

	 	 	Max Loan Amt

	 	 	LTV / CLTV

	 	 	Min FICO

	 	 	MAX D/R

	 	 	(last 12 mos)

	 	 	BK History

	 
	 	Primary
	 	 	1 unit	 	 	N/A	 	 	N/A	 	 	N/A	 	 	N/A	 	 	N/A	 	 	N/A	 
	 

	 	 	 	 	 	 	 	 

	 	 	 	 	 	 
	 	 	 	 	Underwriting Guideline Requirements DU 7.1	 
	 	 

	 	 	Collateral	 
	 	1

	 	 	Appraisal
	 	A full 1004 (interior/exterior) appraisal in past 120 days required. Must be ordered through a VMC. No drive-by or
recerts. No “supervisory” or “review” sign off allowed on appraisals. Manufactured homes ineligible.	 
	 	 

	 	 	 	 	FMV > $1,000,000 and LTV > 75% requires a field review (Form 2000) in addition to 1004	 
	 	2

	 	 	Condos
	 	HOA Questionnaire required. 2 comps outside complex required. Attached housing and condos in FL > 80% are ineligible	 
	 	 

	 	 	 	 	CPM extended review required on attached units.	 
	 	3

	 	 	Land Contracts
	 	Not allowed	 
	 	4

	 	 	Listed For Sale
	 	Properties listed for sale in the past 60 days are not eligible. 70% max LTV if listed in prior 6 mos.	 
	 	5

	 	 	Seasoning
	 	• 6 months ( i.e. 6 payments made) since most recent refinance or date of purchase is required.	 
	 	 

	 	 	 	 	• Divorce or owner buyouts > 12 months	 
	 	6

	 	 	Max Number of
Properties Owned
	 	Max 4 properties allowed	 
	 	7

	 	 	Restricted Markets
	 	If property is located in a declining market per DU or by the appraiser, LTV/CLTV reduction not required if LTV < 80%. If > 80% restricted LTV’s	 
	 	 

	 	 	 	 	apply. If > 80% LTV min 720 FICO for AZ, CA, NV & FL	 
	 	 

	 	 	Credit	 
	 	8

	 	 	Bankruptcy
	 	Filed >4yrs and must be discharged prior to closing; Dismissed Ch. 13 Bk must be > 4yrs	 
	 	9

	 	 	CCJ&Ls
	 	CCJ&Ls > $250 individual or $1000 in aggregate or that effect title must be paid at or prior to loan closing	 
	 	10

	 	 	Continuity of Obligation
	 	As per standard agency requirements	 
	 	11

	 	 	Foreclosure
	 	Must be > 4 yrs	 
	 	12

	 	 	Minimum Fico
	 	Minimum Fico of 660. All borrowers must have a credit score. Use lowest Fico (middle of 3, lower of 2) for all borrowers.	 
	 	13

	 	 	Minimum Payment
	 	5% of balance for revolving/installment accounts (Includes collection/chargeoff accounts for LP qualifying loans)	 
	 	14

	 	 	Mortgage History
	 	0 x 30 last 12 mos. Full 12 month history required; must be < 30 at closing. No exceptions	 
	 	 

	 	 	Income / Assets	 
	 	15

	 	 	Debt Ratio
	 	45% max DTI (no exceptions) Fixed income may not be grossed up.	 
	 	16

	 	 	Documentation
	 	Full income documentation loans only.	 
	 	 

	 	 	 	 	Documentation age may not exceed 120 days old	 
	 	17

	 	 	Minimum Reserves
	 	Primary Residence requires 2 mos PITI. Second Home & Investment requires 6 mos PITI.	 
	 	 

	 	 	Purchase Money	 
	 	18

	 	 	Buyer Contribution
	 	Borrower must contribute at least 5% own funds to the transaction.	 
	 	19

	 	 	Seller Contribution
	 	Primary & Second home - Max 3%; Investment - Max 2%.	 
	 	20

	 	 	Conversion of Primary
Residence or Pending
Sale
	 	Must qualify borrowers using both PITI payments. Conversions and properties pending sale which have not sold at the time
the subject closes require 6 mos. reserves (both properties) if < 30% equity, 2 mos. reserves (both properties) if
> 30% equity per AVM. Former residence, rental income may only be utilized if >30% equity, executed lease and
security deposit is verified.	 
	 	 

	 	 	Products	 
	 	21

	 	 	Minimum Loan Size
	 	Minimum Loan Amount $417,001. Maximum 30 yr. term.	 
	 	22

	 	 	Maximum Loan Size
	 	See FNMA County Matrix.	 
	 	23

	 	 	Refinance
	 	$100,000 maximum cashout.	 
	 	 

	 	 	 	 	Cashout includes payoff of subordinate liens (not used to purchase home), creditors and cash to borrower.	 
	 	24

	 	 	Prepayment Penalties
	 	Not allowed	 
	 	25

	 	 	Short Term Refinances
	 	Payoff of any subordinate non-purchase money loan is considered a cash-out refinance. Additionally, any refinance of a
loan which paid off a subordinate non-purchase money loan within the last 6 months is also considered cash out.	 
	 	26

	 	 	Texas Home Equity
	 	Maximum LTV is 75%	 
	 	27

	 	 	Streamline Mortgages
	  	Streamline Program not allowed.	 

E-4

 

						
	 	Nationstar Agency Matrix with LTV > 80%

DU 7.1 & LP

MI required	 	 		 
	 	 

     2/16/2009

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	
Purchase & Rate/ Term Refi	 	 
	 	Owner Occupied	 	 	Max Loan Amt	 	 	 	Maximum(7)	 	 	 	MAX D/R(18)	 	 	 	Mortgage	 	 	 	BK History (10)	 	 
	 	 	 	 	 	 	LTV / CLTV	 	 	 	FICO	 	 	 	Restricted	 	 	 	FICO	 	 	 	 	 	 	History (17)	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	(15) (21)	 	 	 	LTV (2) (8)	 	 	 	(15) (21)	 	 	 	 	 	 	(last 12 mos)	 	 	 	 	 
	 	Primary
	 	 	1 Unit-FTHB only	 	 	 	$417,000	 	 	 	 	97%	 	 	 	 	700	 	 	 	 	90%	 	 	 	 	700	 	 	 	 	38%	 	 	 	 	0 x 60	 	 	 	Filed > 4 yrs	 
	 	 	 	1 Unit	 	 	 	 	 	 	 	95%	 	 	 	 	620	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	Condo/Attached
 Housing	 	 	 	 	 	 	 	95%	 	 	 	 	620	 	 	 	 	90%	 	 	 	 	700	 	 	 	 	38%	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Primary
	 	 	2 unit	 	 	 	$533,850	 	 	 	 	95%	 	 	 	 	680	 	 	 	 	90%	 	 	 	 	700	 	 	 	 	38%	 	 	 	 	0 x 60	 	 	 	Filed > 4 yrs	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	Primary	 	 	3-4 unit	 	 	Not Available
	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	Second Home	 	 	1unit	 	 	Not Available
	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	Investment	 	 	1 unit	 	 	Not Available
	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	
Cashout Refinance	 	 
	 	Owner Occupied	 	 	Max Loan Amt	 	 	 	Maximum	 	 	 	MAX D/R	 	 	 	Mortgage	 	 	 	BK History	 	 
	 	 	 	 	 	 	LTV / CLTV	 	 	 	FICO	 	 	 	Restricted LTV	 	 	 	 	 	 	History	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(last 12 mos)	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Primary	 	 	1 unit	 	 	Not Available	 	 
	 	 	 	Condo/Attached
 Housing	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 	 	 	 	 
	 	 	 	 	Underwriting Guideline Requirements	 
	 	 	 	Collateral
	 
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 
	 	1

	 	 	Appraisal
	 	A full 1004 (Interior / Exterior) appraisal required. Must be ordered through a VMC. Recerts require appraisal review. Manufactured and second homes ineligible.	 
	 	 
	 	 	 	 	 	 
	 	2

	 	 	Condos
	 	HOA Questionnaire required - Condos and attached housing in FL are ineligible.	 
	 	 
	 	 	 	 	 	 
	 	3

	 	 	Conversion of Primary

Residence or Pending
Sale
	 	Must qualify borrowers using both PITI payments. Properties pending sale which have not sold at the time the subject closes require 6 mos. reserves (both properties) if < 30% equity, 2 mos. reserves
(both properties) if > 30% equity. AVM required. Conversions to Investment Property require 6 months reserves. Rental income cannot be utilized unless > 30% equity.	 
	 	 
	 	 	 	 	 	 
	 	4

	 	 	Land Contracts
	 	Not allowed	 
	 	 
	 	 	 	 	 	 
	 	5

	 	 	Listed For Sale
	 	Properties listed for sale in the past 60 days require UW Manager approval. Property must be taken off the market prior to the loan application date.	 
	 	 
	 	 	 	 	 	 
	 	6

	 	 	Seasoning
	 	Properties purchased in the prior 6 months ineligible. Purch. <12mos requires appraisal review if FMV > purchase price.	 
	 	 
	 	 	 	 	 	 
	 	7

	 	 	Restricted Markets
	 	If property is located in a declining market as noted by MI company matrix, follow “Restricted Market Parameter” LTV guidelines.	 
	 	 
	 	 	 	 	 	 
	 	8

	 	 	Rest. Market LTV
	 	AZ, CA, FL, & NV - Max 90% LTV and 720 min FICO. Max 85% LTV for 2 unit loans > $417,000	 
	 	 
	 	 	 	 	 	 
	 	9

	 	 	Short Term Refinances
 &
Subordination Liens
	 	Payoff of any subordinate non-purchase money loan is not allowed. Additionally, any refinance of a loan which paid off a subordinate non-purchase money loan within the last 6 months is also considered cash
out.Subordinate liens must resubordinate.	 
	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	Credit
	 
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 
	 	10

	 	 	Bankruptcy
	 	Filed < 4 yrs are ineligble.	 
	 	 
	 	 	 	 	 	 
	 	11

	 	 	Collections/Chargeoffs
	 	Refer to DU/LP stipulations	 
	 	 
	 	 	 	 	 	 
	 	12

	 	 	Continuity of Obligation
	 	If property was purchased < 12 mos ago, must use < of original purchase price or appraised value for FMV if no acceptable continuity of obligation exists. Acceptable continuity includes the following:	 
	 	 

	 	 	 	 	1) At least one borrower on the new loan was a borrower on the existing loan to be financed	 
	 	 
	 	 	 	 	 	 
	 	 

	 	 	 	 	2) Borrower has been on title or residing in the property the last 12 mos. and has paid the mortgage the last 12 mos.	 
	 	 
	 	 	 	 	 	 
	 	 

	 	 	 	 	3) Borrower recently inherited the property or it was legally rewarded (divorce, separation, etc.)	 
	 	 
	 	 	 	 	 	 
	 	 

	 	 	 	 	If borrower on title 6 mos. or more , and a lien exists with no acceptable continuity of obligation, max LTV = 50%.	 
	 	 
	 	 	 	 	 	 
	 	13

	 	 	Judgments/Liens
	 	Outstanding judgments and liens must be paid at or prior to loan closing	 
	 	 
	 	 	 	 	 	 
	 	14

	 	 	Foreclosure
	 	Must be > 5 yrs	 
	 	 
	 	 	 	 	 	 
	 	15

	 	 	FICO
	 	Use the lowest FICO (middle of 3; lower of 2) for all borrowers. Credit must show 3 open & active tradelines w/12 mos. history.	 
	 	 
	 	 	 	 	 	 
	 	16

	 	 	Minimum Payment
	 	5% of balance for revolving/installment accounts (Includes collection/charge off accounts for LP qualifying loans)	 
	 	 
	 	 	 	 	 	 
	 	17

	 	 	Mortgage History
	 	Full 12 month history required; Exceptions require UW Manager approval. < 30 at closing	 
	 	 	 	 	 	 
	 	 	 	Income / Assets
	 
	 	 
	 	 	 	 	 	 
	 	18

	 	 	Debt Ratio
	 	38% max DTI (exceptions to 41% require UW Manager approval); Fixed income may not be grossed up.	 
	 	 
	 	 	 	 	 	 
	 	19

	 	 	Documentation
	 	Full income documentation loans only; DU/LP stipulations are acceptable with a minimum of one paystub and prior years W-2.	 
	 	 
	 	 	 	 	 	 
	 	20

	 	 	Primary Conversions
	 	Rental income may not be utilized unless >30% equity per AVM.	 
	 	 
	 	 	 	 	 	 
	 	21

	 	 	Minimum Reserves
	 	Minimum 2 months PITI on all transactions.	 
	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	Purchase Money
	 
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 
	 	22

	 	 	Buyer Contribution
	 	3% minimum own funds.	 
	 	 
	 	 	 	 	 	 
	 	23

	 	 	Seller Contribution
	 	Owner Occupied  - Max 6% <90% LTV; Max 3% >90% LTV	 
	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	Products
	 
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 
	 	24

	 	 	Cashout
	 	Cashout on refinance are ineligible.	 
	 	 
	 	 	 	 	 	 
	 	25

	 	 	Minimum Loan Size
	 	Minimum Loan Amount $75,000	 
	 	 
	 	 	 	 	 	 
	 	26

	 	 	Maximum Loan Size
	 	See matrix above	 
	 	 
	 	 	 	 	 	 
	 	27

	 	 	Recommendations
 Allowed
	 	DU approved eligible (AE); DU expanded approval (EA 1, 2 or 3); or LP accept/eligible ratings allowed.	 
	 	 
	 	 	 	 	 	 
	 	28

	 	 	Credit Report
	 	Must be < 90 days old at time of closing.	 
	 	 
	 	 	 	 	 	 
	 	29

	 	 	Streamline
	 	Not available on >80% LTV.	 
	 	 	 	 	 	 

E-5

 

	 	 	 

	
Nationstar Agency Matrix with LTV < 80% 

(Fannie Mae / Freddie Mac)

MI not required

	 	     

2/16/2009

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	
Purchase & Rate/ Term Refi
	 	Occupancy	 	 	Max Loan Amt	 	 	Max LTV / CLTV	 	 	Min FICO (12)	 	 	MAX D/R (15)	 	 	Mortgage History (last
12 mos) (14)	 
	 	
Primary

	 	 	1 unit	 	 	 	$417,000	 	 	 	 	80%	 	 	 	 	580	 	 	 	 	50%	 	 	 	 	0 x 60	 	 
	 	
Primary

	 	 	2 unit	 	 	 	$533,850	 	 	 	 	80%	 	 	 	 	580	 	 	 	 	50%	 	 	 	 	0 x 60	 	 
	 	
Primary

	 	 	3-4 unit	 	 	 	$645,300	 	 	 	 	75%	 	 	 	 	580	 	 	 	 	50%	 	 	 	 	0 x 60	 	 
	 	
Second Home

	 	 	1unit	 	 	 	$417,000	 	 	 	 	80%	 	 	 	 	580	 	 	 	 	50%	 	 	 	 	0 x 60	 	 
	 	
Investment

	 	 	1unit	 	 	 	$417,000	 	 	 	 	75%	 	 	 	 	580	 	 	 	 	50%	 	 	 	 	0 x 60	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	
Cashout Refinance
	 	Occupancy	 	 	Max Loan Amt	 	 	Max LTV / CLTV	 	 	Min FICO (12)	 	 	MAX D/R  (15)	 	 	Mortgage History (last
12 mos) (14)	 
	 	
Primary

	 	 	1 unit	 	 	 	$417,000	 	 	 	 	80%	 	 	 	 	580	 	 	 	 	50%	 	 	 	 	0 x 60	 	 
	 	
Primary

	 	 	2 unit	 	 	 	$533,850	 	 	 	 	80%	 	 	 	 	580	 	 	 	 	50%	 	 	 	 	0 x 60	 	 
	 	
Primary

	 	 	3-4 unit	 	 	 	$645,300	 	 	 	 	75%	 	 	 	 	580	 	 	 	 	50%	 	 	 	 	0 x 60	 	 
	 	
Second Home

	 	 	1unit	 	 	 	$417,000	 	 	 	 	75%	 	 	 	 	580	 	 	 	 	50%	 	 	 	 	0 x 60	 	 
	 	
Investment

	 	 	1unit	 	 	 	$417,000	 	 	 	 	75%	 	 	 	 	580	 	 	 	 	50%	 	 	 	 	0 x 60	 	 
	 

	 	 	 	 	 	 	 	 

	 	 	 	 	 	 
	 	 	 	 	
Underwriting Guideline Requirements	 
	 	 	 	Collateral	 
	 	1

	 	 	Appraisal
	 	A full 1004 (interior/exterior) appraisal or 2055 (drive-by) required. Must be ordered through a VMC. Drive-by’s and
Recerts require appraisal review. Manufactured homes ineligible.	 
	 	2

	 	 	Condos
	 	HOA Questionnaire required	 
	 	3

	 	 	Land Contracts
	 	Not allowed	 
	 	4

	 	 	Listed For Sale
	 	Properties listed for sale in the past 60 days require UW Manager approval. Property must be taken off the market
prior to the loan application date. Max 70% LTV, on cash out refinances, if property listed within the last 6
months.	 
	 	5

	 	 	Maximum Number of
Financed Properties
	 	Unlimited if subject property is owner-occupied. Max 4 financed properties allowed if the subject property is a
second home or investment property	 
	 	6

	 	 	Seasoning
	 	Properties purchased in the prior 6 months must use purchase price or FMV, whichever is less. Purch. < 12 mos.
requires appraisal review if FMV > purchase price. Purchase and Rate/Term Refis only on properties with < 6
mos. seasoning.	 
	 	7

	 	 	Short Term Refinances
	 	Payoff of any subordinate non-purchase money loan is considered a cash-out refinance. Additionally, any refinance of
a loan which paid off a subordinate non-purchase money loan within the last 6 months is also considered cash out.	 
	 	 	 	Credit	 
	 	8

	 	 	Bankruptcy
	 	Filed > 4 years and be discharged prior to closing.	 
	 	9

	 	 	Collections/Chargeoffs
	 	Refer to DU/LP stipulations	 
	 	10

	 	 	Continuity of Obligation
	 	If property was purchased < 12 mos ago, must use < of original purchase price or appraised value for FMV if no
acceptable continuity of obligation exists. Acceptable continuity includes the following:	 
	 	 

	 	 	 	 	1) At least one borrower on the new loan was a borrower on the existing loan to be financed	 
	 	 

	 	 	 	 	2) Borrower has been on title or residing in the property the last 12 mos. and has paid the mortgage the last 12 mos.	 
	 	 

	 	 	 	 	3) Borrower recently inherited the property or it was legally rewarded (divorce, separation, etc.)	 
	 	 

	 	 	 	 	If borrower on title 6 mos. or more , and a lien exists with no acceptable continuity of obligation, max LTV = 50%.	 
	 	11

	 	 	Foreclosure
	 	Must be >5 yrs	 
	 	12

	 	 	Minimum Fico
	 	Use the lowest FICO (middle of 3; lower of 2) for all borrowers; cashout refinance > 75% LTV requires 660 score	 
	 	13

	 	 	Minimum Payment
	 	5% of balance for revolving/installment accounts (Includes collection/chargeoff accounts for LP qualifying loans)	 
	 	14

	 	 	Mortgage History
	 	Full 12 month history required; Exceptions require UW Manager approval. < 30 at closing.	 
	 	 	 	Income / Assets	 
	 	15

	 	 	Debt Ratio
	 	50% max DTI (exceptions to 55% require UW Manager approval); 50% max DTI Fixed Income borrowers. Fixed income may not
be grossed up.	 
	 	16

	 	 	Documentation
	 	Full income documentation loans only; must follow DU/LP stipulations. Minimum documentation level for salaried wage
earners is one paystub and verbal VOE.	 
	 	17

	 	 	Minimum Reserves
	 	As required by DU/LP; see #18 below.	 
	 	 	 	Purchase Money	 
	 	18

	 	 	Conversion of Primary
Residence or Pending
Sale
	 	Must qualify borrowers using both PITI payments. Conversions and properties pending sale which have not sold at the
time the subject closes require 6 mos. reserves (both properties) if < 30% equity, 2 mos. reserves (both
properties) if > 30% equity per AVM. Former residence, rental income may only be utilized if >30% equity,
executed lease and security deposit is verified.	 
	 	19

	 	 	Buyer Contribution
	 	3% 	 
	 	20

	 	 	Seller Contribution
	 	Owner Occupied  - Max 6% <90% LTV; Max 3% >90% LTV. DP assistance program not eligible.	 
	 	 	 	Products	 
	 	21

	 	 	Minimum Loan Size
	 	Minimum Loan Amount $75,000.	 
	 	22

	 	 	Maximum Loan Size
	 	See Matrix Above	 
	 	23

	 	 	Recommendations Allowed
	 	DU approved eligible (AE); DU expanded approval (EA 1, 2 or 3); or LP accept/eligible ratings allowed.	 
	 	24

	 	 	Credit Report
	 	Must be < 90 days old at time of closing.	 
	 	25

	 	 	Streamline
	 	See additional requirements attached in separate memo.	 
	 	 	 	 	 	 

E-6

 

	 	 	 	 	 

	 	 	 	 	 
	 	
Nationstar (FNMA HomePath) Matrix

(Fannie Mae - DU 7.1)

MI not required

	 	 	
	 	 	 	 	 

         2/16/2009

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 	Purchase	 
	 	Occupancy	 	 	Max Loan Amt	 	 	Maximum	 	 	MAX D/R (11)	 	 	Mortgage
History (10)
(last 12 mos)	 	 	BK History (4)	 
	 	 	 	 	 	LTV / CLTV	 	 	FICO
(8) (14)	 	 	LTV /CLTV	 	 	FICO
(8)	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Primary
	 	 	1 unit	 	 	$417,000	 	 	97% FLEX	 	 	660	 	 	80% / 95%	 	 	580	 	 	Per DU	 	 	0 x 60	 	 	Filed > 4 yrs	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	Condo/Attached
Housing	 	 	 	 	95%	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Primary
	 	 	2 unit	 	 	$533,850	 	 	95%	 	 	660	 	 	80% / 95%	 	 	580	 	 	Per DU	 	 	0 x 60	 	 	Filed > 4 yrs	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Primary
	 	 	3-4 unit	 	 	$533,850	 	 	80%	 	 	580	 	 	80%	 	 	580	 	 	Per DU	 	 	0 x 60	 	 	Filed > 4 yrs	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Second Home
	 	 	1unit	 	 	$417,000	 	 	90% (2)	 	 	660	 	 	80% / 90% (2)	 	 	580	 	 	Per DU	 	 	0 x 60	 	 	Filed > 4 yrs	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Investment
	 	 	1-2 unit	 	 	$417,000	 	 	90% (2)	 	 	660	 	 	80% / 90% (2)	 	 	580	 	 	Per DU	 	 	0 x 60	 	 	Filed > 4 yrs	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Investment
	 	 	3-4 unit	 	 	$417,000	 	 	75%	 	 	580	 	 	75%	 	 	580	 	 	Per DU	 	 	0 x 60	 	 	Filed > 4 yrs	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 
	 	Rate / Term Refi & Cashout Refinance (23)	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Occupancy	 	 	Max Loan Amt	 	 	Maximum	 	 	FICO
(8) (14)	 	 	MAX D/R (11)	 	 	Mortgage
History
(last 12 mos)	 	 	BK History	 
	 	 	 	 	 	LTV / CLTV	 	 	Restricted LTV	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Primary

	 	 	1 unit
	 	 	Not Available	 
	 	 	 	 	 	 	 
	 	 	 	Condo/Attached
Housing	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 

	 	 	 	 	 	 
	 	 	 	Underwriting Guideline Requirements	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Collateral
	 
	 	1
	 	Appraisal	 	No appraisal required. Utilize purchase price as property value.  Verify property is eligible for FNMA HomePath financing on www.HomePath.com\Financing	 
	 	 
	 	 	 	 	 
	 	2
	 	Max LTV	 	75% max LTV if borrower owns more than 4 properties.	 
	 	 
	 	 	 	 	 
	 	3
	 	Maximum Number of 
Financed Properties	 	10 if subject property is owner-occupied.  Max 4 financed properties allowed if the subject property is a second home or investment property.	 
	 	 
	 	 	 	 	 
	 	4
	 	Condo	 	HOA Questionnaire required.  If not eligible submit Project Eligibility Waiver (PEW).	 
	 	 
	 	 	 	 	 
	 	5
	 	Mfg Homes	 	Eligible	 
	 	 
	 	 	 	 	 
	 	 	 	 	Credit
	 
	 	 
	 	 	 	 	 
	 	6
	 	Bankruptcy	 	Filed >4yrs and must be discharged prior to closing.	 
	 	 
	 	 	 	 	 
	 	7
	 	Collections/Chargeoffs	 	Refer to DU/LP stipulations	 
	 	 
	 	 	 	 	 
	 	8
	 	Judgments/Liens	 	Outstanding judgments and liens must be paid at or prior to loan closing	 
	 	 
	 	 	 	 	 
	 	9
	 	Foreclosure	 	Must be > 5 yrs	 
	 	 
	 	 	 	 	 
	 	10
	 	FICO	 	Use the lowest FICO (middle of 3; lower of 2) for all borrowers.	 
	 	 
	 	 	 	 	 
	 	11
	 	Minimum Payment	 	5% of balance for revolving/installment accounts.	 
	 	 
	 	 	 	 	 
	 	12
	 	Mortgage History	 	Full 12 month history required; must be  < 30 at closing	 
	 	 
	 	 	 	 	 
	 	 	 	 	Income / Assets
	 
	 	 
	 	 	 	 	 
	 	13
	 	Debt Ratio	 	Max DTI per DU	 
	 	 
	 	 	 	 	 
	 	14
	 	Documentation	 	Full income documentation loans only; DU/LP stipulations are acceptable.	 
	 	 
	 	 	 	 	 
	 	15
	 	Second Homes	 	Rental Income is not considered in DTI.	 
	 	 
	 	 	 	 	 
	 	16
	 	Minimum Reserves	 	As required by DU	 
	 	 
	 	 	 	 	 
	 	 	 	 	Purchase Money
	 
	 	 
	 	 	 	 	 
	 	17
	 	Conversion of Primary	 	Conversion to a second home or investment requires both current and proposed mortgage payments be included in DTI to qualify the borrower.  6 months PITI for both properties is required to be in reserves.	 
	 	 
	 	 	 	 	 
	 	18
	 	Rental Income	 	May be used to offset the mortgage payment if 30% equity exists. (Per AVM, BPO, or Appraisal) in the existing property. Fully executed lease and verification security deposit from tenant deposited in borrowers account required.	 
	 	 
	 	 	 	 	 
	 	19
	 	Buyer Contribution	 	3% Minimum ( If > 95% see Flex Guidelines). 5% Minimum own funds if second home, investment or 2-4 Unit.	 
	 	 
	 	 	 	 	 
	 	20
	 	Seller Contribution	 	Owner Occupied  - Max 6%	 
	 	 
	 	 	 	 	 
	 	 	 	 	Products
	 
	 	 
	 	 	 	 	 
	 	21
	 	Minimum Loan Size	 	Minimum Loan Amount $75,000	 
	 	 
	 	 	 	 	 
	 	22
	 	Maximum Loan Size	 	See Matrix above	 
	 	 
	 	 	 	 	 
	 	23
	 	Recommendations	 	DU approved eligible (AE); DU expanded approval (EA 1, 2 or 3) ratings allowed	 
	 	 
	 	 	 	 	 
	 	24
	 	Credit Report	 	Must be < 90 days old at time of closing.	 
	 	 
	 	 	 	 	 
	 	25
	 	Cashout Refi	 	Not Allowed.	 
	 	 
	 	 	 	 	 
	 	26
	 	Special Feature Codes	 	057 - For all HomePath Loans	 
	 	 
	 	 	 	 	 
	 	 
	 	 	 	206 - For Flex Mortgage (i.e.. LTV / CLTV of 95.01% to 97.0%)	 
	 	 
	 	 	 	 	 
	 	 
	 	 	 	716 - For any  EA recommendation from DU	 
	 	 
	 	 	 	 	 
	 	 
	 	 	 	• - Any other applicable Special Feature Codes	 
	 	 
	 	 	 	 	 
	 	 	 	 	 	 
	 	 
	 	 	 	 	 

E-7

 

EXHIBIT F

REQUIRED FIELDS FOR SERVICING TRANSMISSION

	 	 	 

	1.

	 	Loan #
	2.

	 	Borrower Name
	3.

	 	Address
	4.

	 	City
	5.

	 	State
	6.

	 	Zip
	7.

	 	Note Amount / Original Balance
	8.

	 	Interest Rate
	9.

	 	Term
	10.

	 	P & I Pymt
	11.

	 	Property Type
	12.

	 	Fixed/ARM flag
	13.

	 	Product Code (e.g. 3/27, 2/28, Fixed, Balloon)
	14.

	 	Note / Closing Date
	15.

	 	ARM Index
	16.

	 	Rate Adjustment Date
	17.

	 	Rate Adjustment Frequency
	18.

	 	Initial Periodic Cap
	19.

	 	Periodic Cap
	20.

	 	Minimum Rate
	21.

	 	Maximum Rate
	22.

	 	MERS Identification #
	23.

	 	Next Due Date
	24.

	 	LTV
	25.

	 	Loan Type (Early Purchase Program Loan or non-Early Purchase Program Loan)

F-1

 

EXHIBIT G

REQUIRED FIELDS FOR ASSET SCHEDULE

	 	 	 

	1.

	 	Loan #
	2.

	 	Borrower Name
	3.

	 	Address
	4.

	 	City
	5.

	 	State
	6.

	 	Zip
	7.

	 	Note Amount / Original Balance
	8.

	 	Interest Rate
	9.

	 	Term
	10.

	 	P & I Pymt
	11.

	 	Property Type
	12.

	 	Fixed/ARM flag
	13.

	 	Product Code (e.g. 3/27, 2/28, Fixed, Balloon)
	14.

	 	Note / Closing Date
	15.

	 	ARM Index
	16.

	 	Rate Adjustment Date
	17.

	 	Rate Adjustment Frequency
	18.

	 	Initial Periodic Cap
	19.

	 	Periodic Cap
	20.

	 	Minimum Rate
	21.

	 	Maximum Rate
	22.

	 	MERS Identification #
	23.

	 	Next Due Date
	24.

	 	LTV
	25.

	 	Loan Type (Early Purchase Program Loan or non-Early Purchase Program Loan)

G-1

 

EXHIBIT H

FORM OF CONFIDENTIALITY AGREEMENT

          In connection with your consideration of a possible or actual acquisition of a participating
interest (the “Transaction”) in an advance, note or commitment of The Royal Bank of Scotland
PLC (“Buyer”) pursuant to a Fifth Amended and Restated Master Repurchase Agreement, as
amended, between Buyer and Nationstar Mortgage LLC (the “Seller”) dated as of January 27, 2010, you
have requested the right to review certain non-public information regarding the Seller that is in
the possession of Buyer. In consideration of, and as a condition to, furnishing you with such
information and any other information (whether communicated in writing or communicated orally)
delivered to you by Buyer or its affiliates, directors, officers, employees, advisors, agents or
“controlling persons” (within the meaning of the Securities Exchange Act of 1934, as amended (the
“1934 Act”)) (such affiliates and other persons being herein referred to collectively as Buyer
“Representatives”) in connection with the consideration of a Transaction (such information being
herein referred to as “Evaluation Material”), Buyer hereby requests your agreement as follows:

     1. The Evaluation Material will be used solely for the purpose of evaluating
a possible Transaction with Buyer involving you or your affiliates, and unless and until you
have completed such Transaction pursuant to a definitive agreement between you or any such
affiliate and Buyer, such Evaluation Material will be kept strictly confidential by you and
your affiliates, directors, officers, employees, advisors, agents or controlling persons
(such affiliates and other persons being herein referred to collectively as “your
Representatives”), except that the Evaluation Material or portions thereof may be disclosed
to those of your Representatives who need to know such information for the purpose of
evaluating a possible Transaction with Buyer (it being understood that prior to such
disclosure your Representatives will be informed of the confidential nature of the
Evaluation Material and shall agree to be bound by this Agreement). You agree to be
responsible for any breach of this Agreement by your Representatives.

     2. The term “Evaluation Material” does not include any information which (i)
at the time of disclosure or thereafter is generally known by the public (other than as a
result of its disclosure by you or your Representatives) or (ii) was or becomes available to
you on a nonconfidential basis from a person not otherwise bound by a confidential agreement
with Buyer or its Representatives or is not otherwise prohibited from transmitting the
information to you. As used in this Agreement, the term “person” shall be broadly
interpreted to include, without limitation, any corporation, company, joint venture,
partnership or individual.

     3. In the event that you receive a request to disclose all or any part of the
information contained in the Evaluation Material under the terms of a valid and effective
subpoena or order issued by a court of competent jurisdiction, you agree to (i) immediately
notify Buyer and the Seller of the existence, terms and circumstances surrounding such a
request, (ii) consult with the Seller on the advisability of taking legally available steps
to resist or narrow such request, and (iii) if disclosure of such information is required,
exercise your best efforts to obtain an order or other reliable assurance that confidential
treatment will be accorded to such information.

     4. Unless otherwise required by law in the opinion of your counsel, neither
you nor your Representative will, without our prior written consent, disclose to any person
the fact that the Evaluation Material has been made available to you.

H-1

 

     5. You agree not to initiate or maintain contact (except for those contacts
made in the ordinary course of business) with any officer, director or employee of the
Seller regarding the business, operations, prospects or finances of the Seller or the
employment of such officer, director or employee, except with the express written permission
of the Seller.

     6. You understand and acknowledge that the Seller is not making any
representation or warranty, express or implied, as to the accuracy or completeness of the
Evaluation Material or any other information provided to you by Buyer. None of the Seller,
its respective affiliates or Representatives, nor any of its respective officers, directors,
employees, agents or controlling persons (within the meaning of the 1934 Act) shall have any
liability to you or any other person (including, without limitation, any of your
Representatives) resulting from your use of the Evaluation Material.

     7. You agree that neither Buyer nor the Seller has granted you any license,
copyright, or similar right with respect to any of the Evaluation Material or any other
information provided to you by Buyer.

     8. If you determine that you do not wish to proceed with the Transaction, you
will promptly deliver to Buyer all of the Evaluation Material, including all copies and
reproductions thereof in your possession or in the possession of any of your
Representatives.

     9. Without prejudice to the rights and remedies otherwise available to the
Seller, the Seller shall be entitled to equitable relief by way of injunction if you or any
of your Representatives breach or threaten to breach any of the provisions of this
Agreement. You agree to waive, and to cause your Representatives to waive, any requirement
for the securing or posting of any bond in connection with such remedy.

     10. The validity and interpretation of this Agreement shall be governed by,
and construed and enforced in accordance with, the laws of the State of New York applicable
to agreements made and to be fully performed therein (excluding the conflicts of law rules).
You submit to the jurisdiction of any court of the State of New York or the United States
District Court for the Southern District of the State of New York for the purpose of any
suit, action, or other proceeding arising out of this Agreement.

     11. The benefits of this Agreement shall inure to the respective successors
and assigns of the parties hereto and the Seller (which is an express third party
beneficiary hereof), and the obligations and liabilities assumed in this Agreement by the
parties hereto shall be binding upon the respective successors and assigns.

     12. If it is found in a final judgment by a court of competent jurisdiction
(not subject to further appeal) that any term or provision hereof is invalid or
unenforceable, (i) the remaining terms and provisions hereof shall be unimpaired and shall
remain in full force and effect and (ii) the invalid or unenforceable provision or term
shall be replaced by a term or provision that is valid and enforceable and that comes
closest to expressing the intention of such invalid or unenforceable term or provision.

     13. This Agreement embodies the entire agreement and understanding of the
parties hereto and supersedes any and all prior agreements, arrangements and understandings
relating to the matters provided for herein. No alteration, waiver, amendments, or change or
supplement hereto shall be binding or effective unless the same is set forth in writing by a
duly authorized

H-2

 

representative of each party and may be modified or waived only by a separate letter
executed by the Seller and you expressly so modifying or waiving such Agreement.

     14. For the convenience of the parties, any number of counterparts of this
Agreement may be executed by the parties hereto. Each such counterpart shall be, and shall
be deemed to be, an original instrument, but all such counterparts taken together shall
constitute one and the same Agreement.

H-3

 

          Kindly execute and return one copy of this letter which will constitute our Agreement with
respect to the subject matter of this letter.

	 	 	 	 	 
	 	THE ROYAL BANK OF SCOTLAND PLC

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 
	 

Confirmed and agreed to

this _____ day of _____________, 201_.

	 	 	 	 	 
	 	 	 
	By:  	 	 	 
	 	Name 	 	 	 
	 	Title:  	 	 	 
	 

H-4

 

EXHIBIT I

FORM OF INSTRUCTION LETTER

__________ __, 201_

___________________, as Subservicer/Additional Collateral Servicer

____________________

____________________

Attention: _______________

	 	Re:  	 	Fifth Amended and Restated Master Repurchase Agreement, dated as of January 27,
2010 by and between The Royal Bank of Scotland PLC (“Buyer”) and
Nationstar Mortgage LLC, (“Seller”)

Ladies and Gentlemen:

     As [sub]servicer of those assets described on Schedule 1 hereto, which may be amended or
updated from time to time (the “Eligible Assets”) pursuant to that Servicing Agreement,
between you and the undersigned Seller, as amended or modified, attached hereto as Exhibit A (the
“Servicing Agreement”), you are hereby notified that the undersigned Seller has sold to the Buyer
such Eligible Assets pursuant to that certain Fifth Amended and Restated Master Repurchase
Agreement, dated as January 27, 2010 (as amended, restated, supplemented or otherwise modified from
time to time, the “Agreement”), between the Buyer and the Seller.

     You agree to service the Eligible Assets in accordance with the terms of the Servicing
Agreement for the benefit of the Buyer and, except as otherwise provided herein, Buyer shall have
all of the rights, but none of the duties or obligations of Seller under the Servicing Agreement
including, without limitation, payment of any indemnification or reimbursement or payment of any
servicing fees or any other fees. No subservicing relationship shall be hereby created between you
and the Buyer.

     Upon your receipt of written notification by the Buyer that an Event of Default has occurred
under the Agreement (the “Default Notice”), you, as Subservicer, hereby agree to remit all
payments or distributions made with respect to such Eligible Assets, net of the servicing fees
payable to you with respect thereto, immediately in accordance with the Buyer’s wiring instructions
provided below, or in accordance with other instructions that may be delivered to you by Buyer:

	 	 	 

	JPMorgan Chase Bank
	Account No.:

	 	140095961
	 

	 	For the A/C of The Royal Bank of Scotland PLC
	ABA No.:

	 	021000021
	Reference:

	 	Brett Kibbe

     You agree that, following your receipt of such Default Notice, under no circumstances will you
remit any such payments or distributions in accordance with any instructions delivered to you by
the undersigned Seller, except if Buyer instructions you in writing otherwise.

     You further agree that, upon receipt written notification by the Buyer that an Event of
Default has occurred under the Agreement, Buyer shall assume all of the rights and obligations of
Seller under the Servicing Agreement, except as otherwise provided herein. Subject to the terms of
the Servicing Agreement, You shall (x) follow the instructions of Buyer with respect to the
Eligible Assets and deliver to a Buyer any information with respect to the Eligible Assets
reasonably requested by such Buyer, and

I-1

 

(y) treat this letter agreement as a separate and distinct servicing agreement between You and
Buyer (incorporating the terms of the Servicing Agreement by reference), subject to no setoff or
counterclaims arising in Your favor (or the favor of any third party claiming through You) under
any other agreement or arrangement between You and any Seller or otherwise. Notwithstanding
anything to the contrary herein or in the Servicing Agreement, in no event shall Buyer be liable
for any fees, indemnities, costs, reimbursements or expenses incurred by You prior to such Event of
Default or otherwise owed to You in respect of the period of time prior to such Event of Default.

     Notwithstanding anything to the contrary herein or in the Servicing Agreement, with respect to
all Eligible Assets on Schedule 1 (the “Servicing Released Assets”), you are hereby
instructed to service such Servicing Released Assets for a term of thirty (30) days (each, a
“Servicing Term”) commencing as of the date such Servicing Released Assets become subject
to a purchase transaction under the Agreement, which Servicing Term shall be deemed to be renewed
at the end of each 30-day period subject to the following sentence. The Servicing Term shall
terminate upon the occurrence of any of the following events: (i) if the related purchase
transaction is not renewed at the end of such Servicing Term and such Servicing Released Asset is
not repurchased by Seller, or (ii) You shall have received a written termination notice from Buyer
at any time with respect to some or all of the Servicing Released Assets being serviced by You
(each, a “Servicing Termination”). In the event of a Servicing Termination, You hereby
agree to (i) deliver all servicing and “records” relating to such Servicing Released Assets to the
designee of Buyer at the end of each such Servicing Term and (ii) cooperate in all respects with
the transfer of servicing to Buyer or its designee. The transfer of servicing and such records by
You shall be in accordance with customary standards in the industry and the terms of the Servicing
Agreement, and such transfer shall include the transfer of the gross amount of all escrows held for
the related mortgagors (without reduction for unreimbursed advances or “negative escrows”).

     Further, you hereby constitute and appoint Buyer and any officer or agent thereof, with full
power of substitution, as your true and lawful attorney-in-fact with full irrevocable power and
authority in your place and stead and in your name or in Buyer’s own name, following any Servicer
Termination with respect solely to the Servicing Released Assets that are subject to such Servicer
Termination, to direct any party liable for any payment under any such Servicing Released Assets to
make payment of any and all moneys due or to become due thereunder directly to Buyer or as Buyer
shall direct including, without limitation, the right to send “goodbye” and “hello” letters on Your
behalf. You hereby ratify 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.

     For the purpose of the foregoing, the term “records” shall be deemed to include but not be
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 Servicing Released Assets.

[NO FURTHER TEXT ON THIS PAGE]

I-2

 

     Please acknowledge receipt of this instruction letter by signing in the signature block below
and forwarding an executed copy to the Buyer promptly upon receipt. Any notices to the Buyer
should be delivered to the following address: 600 Washington Blvd., Stamford, CT 06901, Attention:
Joe Bartolotta, Telephone: (203) 625-6675, Facsimile: (203) 625-4751.

	 	 	 	 	 
	 	Very truly yours,

NATIONSTAR MORTGAGE LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Acknowledged and Agreed as of this __ day of ___________, 20__:

[SUBSERVICER] [ADDITIONAL COLLATERAL SERVICER]

	 	 	 	 	 
	 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

I-3

 

EXHIBIT J

FORM OF MASTER NETTING AGREEMENT

J-1

 

FORM OF MASTER NETTING AGREEMENT

          THIS COLLATERAL SECURITY, SETOFF AND NETTING AGREEMENT, dated as of January 9, 2009 (as
amended, supplemented and otherwise modified from time to time, the “Agreement”) is made
collectively among:

          [      ]. (“[    ]”), [      ]. and any Person who, directly or indirectly, is in control of, or
is controlled by, or is under common control with, [      ] or [      ] (each such Person, a “[      ]
Affiliate”) and its respective parent, subsidiaries and [       ] Affiliates (individually a “[      ]
Entity” and collectively the “[       ] Group”), on the one hand,

— and —

          NATIONSTAR MORTGAGE LLC (“Nationstar”), FIF HE HOLDINGS LLC (“FIF HE”), FIF HE HOLDINGS LLC,
acting with respect to Series 1 thereof (“FIF Series 1”), and FIF HE HOLDINGS LLC, acting with
respect to Series 2 thereof (“FIF Series 2”) and any Person who, directly or indirectly, is
controlled by Nationstar, FIF HE, FIF Series 1 or FIF Series 2 (each such Person, a “Nationstar
Affiliate”) and its respective subsidiaries and Nationstar Affiliates (individually a “Nationstar
Entity” and collectively the “Nationstar Group”), on the other hand.

A
G R E E M E N T:

Section 1. Definitions. As used herein, unless otherwise stated in this
Agreement, all defined terms shall: (i) have the same meaning ascribed to them in the Repurchase
Agreement; and (ii) be read either as singular or plural as appropriate, and where necessary the
singular form of any word used herein shall include the plural and vice versa.

          “Agreement” has the meaning set forth in the preamble.

          “Bankruptcy Code” means Title 11 of the United States Code, as amended from time to
time.

          “Collateral” shall mean all Securities, notes, mortgages, instruments, financial
assets, monies, trust receipts or other property of any of the Nationstar Group in which any member
of [       ] has been granted a security interest pursuant to the Transaction documents whenever
acquired and all distributions thereon and proceeds thereof.

          “Event of Default” has the meaning set forth in Section 4.

          “Obligations” shall mean, collectively, all present and future obligations and
liabilities of each member of the Nationstar Group to each member of [      ] pursuant to the
Transaction Documents (including without limitation obligations and liabilities under any
Transactions), whether matured, unmatured, liquidated, unliquidated, fixed or contingent, and any
costs and fees permitted under such Transaction Documents.

          “Person” shall mean an individual, corporation, trust, business trust, statutory
trust, partnership, limited liability company, joint venture or similar business association.

J-2

 

          “Repurchase Agreement” shall mean that certain Third Amended and Restated Repurchase
Agreement, dated as of [       ] (as may be amended, supplemented or otherwise modified from time to
time), by and between Nationstar Mortgage LLC and [       ].

          “Securities” means, collectively, cash or cash equivalents, securities, commodities,
instruments, loans, receivables, currencies or contract rights or interests, options or rights in
or in respect of any thereof, including any collateral of every kind delivered with respect
thereto. For the avoidance of doubt, Securities shall not include any rights or collateral with
respect to any servicing advance facility entered into between any of the Nationstar Group and any
of [       ], except that Securities shall include any rights (including rights to reimbursement) or
collateral with respect to any Tranche C Assets under the Repurchase Agreement.

          “Settlement Amount” has the meaning set forth in Section 5.

          “Termination Date” for this Agreement means the date on which all Obligations have
been satisfied in full.

          “Transaction Documents” means this Agreement and all other agreements, documents,
forms, confirmations and other writings entered into or delivered pursuant to or in connection with
any Transactions, including, but not limited to those set forth on Exhibit A hereto, which Exhibit
may be amended from time to time by the parties.

          “Transactions” means, without limitation, purchases or sales of Securities on a long,
short or forward basis, loan transactions, repurchase and reverse repurchase transactions,
arbitrage transactions, swaps, collars, caps, floors and purchases or sales of options to purchase
or sell Securities entered into in connection with any of the Transaction Documents. For the
avoidance of doubt, Transactions shall not include transactions with respect to any servicing
advance facility entered into between any of the Nationstar Group and any of [      ], except that
Transactions shall include transactions in connection with any Tranche C Assets under the
Repurchase Agreement.

Section 2. Collateral.

     A. Nationstar, on behalf of the Nationstar Group, hereby grants to each member of [     
] a right of netting and setoff under any of the Transaction Documents against all of the
Collateral pledged to or held by any of [      ] in connection with any Transaction entered into
heretofore or at any time in the future. The Collateral shall secure the prompt and full payment
and performance of any and all Obligations due and owing by any member of the Nationstar Group to
any member of [       ] under any of the Transaction Documents.

     B. All property of the Nationstar Group held by [      ] shall be held in the nature of
a deposit for security. Except to the extent otherwise expressly provided in a Transaction
Document, Collateral held by or for the benefit of, or pledged to any member of [      ], shall be
deemed held by or for the benefit of, or pledged to, such entity for its own account or as agent
and/or custodian for the account of another [       ] Entity (or [       ] Entities), as applicable.
Notwithstanding the foregoing, this provision shall not be construed in a manner which conflicts
with [      ]’s requirement to obtain or maintain a certain level of margin with respect to any
Transaction.

     C. All Collateral legally held by [       ] (either directly or through an agent) shall
be held both for itself and for the benefit of [      ]

J-3

 

Section 3. Periodic Netting and Setoff.

     A. Each of the parties hereto acknowledges that (i) the parties have or may have
entered into the Transactions; and (ii) all Transactions have been and will be entered into, among
other things, in consideration of each other.

     B. Effective as of the date of this Agreement and subject to Section 4(B) hereof,
each [       ] Entity shall have the right, from time-to-time in its sole business discretion and
without prior notice, to aggregate, setoff and net any payment obligations arising under the
Transactions. The parties specifically agree that netting in respect of two or more Transactions
may occur upon the election of any [       ] Entity. This periodic netting process shall be handled as
set forth within this Section 3 for all Collateral subject to Transactions. Accordingly,

	 	(1)	 	If any Nationstar Entity owes (or has contingent obligations to) any [     
] Entity pursuant to any of the Transactions, any [       ] Entity may, without
prior notice, aggregate, setoff and net: (a) any Collateral pledged by any
Nationstar Entity to any [      ] Entity; (b) any Collateral required to be paid or
returned by any [       ] Entity to any Nationstar Entity; and (c) any payment due
any Nationstar Entity from any [       ] Entity. Specifically, a member of [       ] may
net (a) amounts owed to any Nationstar Entity by any [       ] Entity under the
Transactions; and (b) amounts owed by any Nationstar Entity to the other
members of [       ] under the Transactions to satisfy any Obligations of any
Nationstar Entity to any [       ] Entity.
	 
	 	(2)	 	If amounts owed by all parties are equal, no party shall make a
payment under this Section 3.
	 
	 	(3)	 	All payments due pursuant to this Section 3 shall be made on the
payment date, which shall be no later than the first business day after the
netting. All payments shall be made by wire transfer.
	 
	 	(4)	 	Upon making such net payment and/or delivery, and provided that the
Collateral subject to such Transactions has been returned (if required)
properly to the appropriate party respectively and that all other obligations
of the parties hereto have been satisfied, each of the parties agrees to
reflect on its books and records that such netted Transactions have been
discharged fully.
	 
	 	(5)	 	Any [      ] Entity may, upon prior notice to the applicable Nationstar
Entity, sell at private or public sale any Collateral and apply the proceeds
thereof against any Obligations, or retain and apply any Collateral in
satisfaction of any such Obligations to any [       ] Entity;
	 
	 	(6)	 	Any [       ] Entity may setoff any obligations of any [       ] Entity to any
Nationstar Entity against any Obligations of any Nationstar Entity to another
member of [       ]; and
	 
	 	(7)	 	[       ] may collect from Nationstar Group any losses, costs or expenses
incurred by any [      ] Entity in taking any of the above-mentioned actions
(including commissions and reasonable legal fees and expenses), all of which
will be secured by the Collateral.

     C. In the event that the Obligations to be netted are not fixed, [       ] may net and
setoff amounts pursuant to this Section 3 believed in good faith not to exceed 100% of the
Obligations due from the Nationstar Entity and including contractual and/or statutory interest, costs and
anticipated attorney’s fees.

J-4

 

     D. Any netting [       ] Entity shall have the right to net and/or setoff Obligations and
Transactions in any order it chooses.

Section 4. Default Netting and Setoff.

     A. An “Event of Default” shall have the respective meaning assigned to such terms in
the relevant Transaction Documents.

     B. In addition to all other rights and remedies available, an Event of Default shall
give each [       ] Entity the netting and setoff rights specified in Section 3 (it being understood
that the rights specified in Section 3 may not be exercised in the absence of an Event of Default).

Section 5. Close-Out Netting and Setoff.

     A. Upon termination of this Agreement following the occurrence and during the
continuation of an Event of Default, without limiting any other provision of this Agreement or any
Transaction Document, any member of [       ] may aggregate, setoff and net against any Obligations of
any Nationstar Entity any Collateral, or the value thereof, pledged by or required to be delivered
or paid by any Nationstar Entity to any member of [      ] in connection with such terminated
Transactions. In addition, upon termination under this Section, any member of [      ] may aggregate,
setoff and net against any Obligations of any Nationstar Entity any Collateral, or the value
thereof, pledged by or required to be delivered or paid by any member of [       ] to any Nationstar
Entity in connection with such terminated Transactions. Thereupon, the only delivery obligation of
any of the parties in connection with such Transactions will be for the parties to deliver such
Collateral or a net cash payment, as the case may be, as may be required after giving effect to
such aggregation, netting and setoff.

     B. The method by which the parties hereto will value such Collateral for such
netting and setoff purposes will be determined by the method prescribed in the applicable agreement
or, in the absence of a prescribed method, by the [      ] Entities in a commercially reasonable
manner.

     C. In the alternative, [      ] may net and setoff amounts pursuant to this Section in
accordance with the netting and setoff rights specified in Section 3.

     D. Each [       ] Entity shall aggregate any gains, losses and costs with respect to all
transactions into a single net amount (the “Settlement Amount”). It is expressly agreed that the [     
] Entities shall not be required to enter into replacement transactions in order to determine the
Settlement Amount. [       ] and the Nationstar Group will provide one another with a statement
showing, in reasonable detail, their calculations of gains, losses and costs, including all
relevant quotations and specifying any amount payable, and giving details of the relevant account
to which any amount payable is to be paid.

Section 6. Remedies.

     A. None of the rights and remedies of each member of [      ] shall be exclusive of any
other available right or remedy, and each remedy shall be cumulative and in addition to any other
right or remedy of each member of [       ]. Each member of [      ] shall be entitled to exercise its
rights and remedies against the Nationstar Group in such order and to such extent as it, in its
sole discretion, deems appropriate. It is understood that a prior demand or call, or prior notice
of the time and place of such sale

J-5

 

or purchase, shall not be considered a waiver of the right of any member of [       ] to sell the
Collateral without demand or notice. The Nationstar Group acknowledges that some of the Collateral
(other than cash) may be of a type that may decline rapidly in value and/or is customarily sold on
or in a recognized market (including the whole loan market), as may be further specified by the
related Transaction Document, and therefore, in such cases, [      ] shall not be obligated to provide
the Nationstar prior notification of any intended sale or other disposition thereof. The
Nationstar Group shall remain liable for any and all Obligations it owes to any member of [       ]
remaining unpaid or unsatisfied after the application of the Collateral and the exercise of all
rights hereunder.

     B. All Obligations shall bear interest equal in value to the case specifics in the
applicable Transaction Documents.

     C. The rights and remedies granted hereby to [       ] are in addition to any rights and
remedies, and supersede any limitations on such rights and remedies that are inconsistent herewith,
that they may have under any existing or future agreements with any Nationstar Entity unless, in
the case of any future agreements, any inconsistent provision therein is stated explicitly to
supersede this Agreement. Without limiting the generality of the foregoing, nothing herein shall
be construed as a requirement that a member of [       ] cause Collateral held on account of a
particular Transaction to be attributed (in whole or in part) to any other Transaction in
determining whether that member of [       ] is entitled to make a demand or call upon the Nationstar
Entity for additional securities, monies or other property under any such other Transaction.

Section 7. Multiple Party Setoff.

     A. [       ], along with its Affiliates, and Nationstar, agree to engage in a triangular
or multi-party setoff pursuant to this Agreement if necessary. Each member of [       ] and the
Nationstar Group agrees that following the occurrence and during the continuation of an Event of
Default, at the option of any party to this Agreement, and without prior notice to any other party,
any and all amounts payable pursuant to Section 3, Section 4 or Section 5 to any party may be
reduced or satisfied by a setoff against any other amounts payable by or to any other party to this
Agreement. For purposes of this Agreement, the parties agree that all of the [       ] Entities
constitute a single unit and all of the Nationstar Entities constitute a single unit for purposes
of setoff.

     B. This right of setoff, recognized in New York law and §553 of the Bankruptcy Code,
shall be held by all parties to this Agreement. If any amounts are so set off, these amounts are
to be discharged promptly and in all respects.

Section 8. Recoupment.

          The rights of [       ] contained herein are in addition to any and all recoupment rights that [       ]
may have at law or in equity against the Nationstar Group.

Section 9. Choice of Law.

          THIS AGREEMENT AND EACH AND EVERY OTHER TRANSACTION DOCUMENT AND TRANSACTION BETWEEN THE
PARTIES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,
AND IN THE EVENT THAT ANY LAWSUIT IS COMMENCED RELATING TO THIS AGREEMENT OR ANY OTHER TRANSACTION
DOCUMENT OR TRANSACTION THE PARTIES AGREE TO SUBMIT TO THE JURISDICTION OF THE FEDERAL AND STATE
COURTS SITUATED IN THE COUNTY OF NEW YORK IN THE STATE OF NEW YORK IN CONNECTION WITH ANY SUCH

J-6

 

DISPUTE. THE PARTIES TO THIS AGREEMENT WAIVE THE RIGHT TO TRIAL BY JURY IN ANY SUCH LAWSUIT.

Section 10. Assignment; Modification.

          This Agreement may not be amended or modified except in a written instrument executed by each
of the parties hereto. The rights and obligations of the parties under this Agreement and under
any transaction or agreement (including any Transaction between the parties) may not be assigned
without the prior written consent of the other party and any purported assignment without such
consent shall be null and void. Subject to the foregoing, this Agreement shall be binding on the
parties and their successors and assigns. If any provisions of this Agreement shall not be
enforceable, the parties agree that the remaining provisions of this Agreement shall constitute the
binding Agreement between the parties.

Section 11. Representations, Warranties and Covenants.

          Each party represents and warrants to the other party that it has all requisite power to
execute, deliver and perform its obligations under this Agreement; that this Agreement constitutes
a legal, valid and binding agreement enforceable in accordance with its terms, subject to
bankruptcy, insolvency and other laws affecting creditors’ rights generally and subject, as to
enforceability, to general principals of equity (regardless of whether enforcement is sought in a
proceeding in equity or at law); that neither the execution and delivery of this Agreement by the
party, nor the performance of its obligations hereunder, (A) conflicts or will conflict with,
results or will result in a breach or violation of, or constitutes or will constitute a default
under: (i) its articles of incorporation or by-laws (or equivalent documents); (ii) the terms of
any agreement, obligation or instrument to which it is a party; or (iii) any statute, law, decree,
order, rule or regulation applicable to it, or (B) requires any authorization, approval, consent,
order, filing, or other action except such as has previously been obtained.

Section 12. Recordings of Communications.

          The [       ] Entities and the Nationstar Entities shall have the right (but not the obligation)
from time to time to make or cause to be made tape recordings of communications between its
employees and those of the other party with respect to Transactions. The [      ] Entities and the
Nationstar Entities consent to the admissibility of such tape recordings in any court, arbitration
or other proceedings. The parties agree that a duly authenticated transcript of such a tape
recording shall be deemed to be a writing conclusively evidencing the parties’ agreement.

Section 13. Enforcement Costs and Expenses.

          The Nationstar Entities shall jointly and severally reimburse all [      ] Entities for any
damages, claims, liabilities, expenses, attorney’s fees, etc., arising out of the enforcement of
this Agreement or any other Transaction Document; provided however in the event of a dispute
arising out of the enforcement of this Agreement, the losing party shall be responsible for all
expenses and attorney’s fees incurred in connection with such dispute.

Section 14. No Future Obligations.

          Notwithstanding anything contained in this Agreement and except only as may be expressly set
forth in the Transaction Documents, neither party to this Agreement shall be obligated to enter
into any future Transactions. Each party agrees that it will deliver such documents and take such
action as are required to implement the terms of this Agreement.

J-7

 

Section 15. Counterparts.

          This Agreement may be executed in Counterparts all of which taken together shall constitute
the Agreement.

[SIGNATURE PAGES FOLLOW]

J-8

 

THE ROYAL BANK OF SCOTLAND PLC

600 Washington Blvd.

Stamford, CT 06901

January 27, 2010

Nationstar Mortgage LLC

350 Highland Drive

Lewisville, Texas 75067

	 	Re: 	 	 Fifth Amended and Restated Pricing Side Letter

Ladies and Gentlemen:

PRELIMINARY STATEMENTS

          A. Reference is hereby made to, and this Fifth Amended and Restated Pricing Side Letter (as
amended, supplemented and otherwise modified from time to time, the “Pricing Side Letter”)
is hereby incorporated by reference into, the Fifth Amended and Restated Master Repurchase
Agreement, dated as of January 27, 2010 (as amended, supplemented and otherwise modified from time
to time, the “Agreement”), between The Royal Bank of Scotland plc (as assignee of RBS
Financial Products, Inc.) as buyer (“Buyer”) and Nationstar Mortgage LLC, as seller
(“Seller”). Any capitalized term used but not defined herein shall have the meaning
assigned to such term in the Agreement.

          B. Seller and Buyer are parties to a Fourth Amended and Restated Pricing Side Letter dated as
of April 6, 2009 (as amended, supplemented and otherwise modified from time to time, the
“Existing Side Letter”).

          C. Seller has requested that Buyer consent to the amendment and restatement of the Existing
Side Letter in order to accommodate certain changes and modifications to the Existing Side Letter.

          D. Upon the Effective Date of this Pricing Side Letter, each reference to the Existing Side
Letter in any other document, instrument or agreement shall mean and be a reference to this Pricing
Side Letter, and this Pricing Side Letter shall supersede the Existing Side Letter in all respects.

          E. Subject to the terms and conditions herein contained, the parties hereby agree to amend and
restate the terms and conditions of the Existing Side Letter in their entirety as follows:

          Section 1. Definitions.

          The following terms referenced in Section 2 of the Agreement shall have the meanings set forth
below:

          “Applicable Margin” shall mean [***].

 

			
	*** 	 	Note:  Confidential treatment has been requested with respect to the information
contained within the [***] marking. Such portions have been omitted from this filing and have been
filed separately with the Securities and Exchange Commission.

 

 

          “Applicable Percentage” shall mean with respect to each Asset, the percentage set
forth in the “Applicable Percentage” column of Exhibit A hereto. The Applicable Percentage of any
Asset which is not an Eligible Asset shall be 0%.

          “Commitment Fee Amount” shall mean an annualized amount equal the product of
(a) [***] and (b) the Maximum Aggregate Purchase Price. A Commitment Fee equal to such
Commitment Fee Amount shall be due and payable by Seller to Buyer on the Effective Date in
accordance with the Agreement; provided that payment by Seller of such Commitment Fee shall be
deemed to apply to Buyer’s commitment to enter into Transactions with Seller under the Agreement
during the period commencing on February 26, 2010 and ending on the Termination Date.

          “Eligible Loan” shall mean an Early Purchase Program Loan, a Non-Conforming Loan or an
Agency Takeout Loan secured by a First Lien on a one to four family residential property and as to
which (i) the representations and warranties in Section 12(v) and 12(w) and Schedule 1 of the
Agreement are correct, (ii) was originated or acquired by Seller in accordance with Seller’s or
Buyer approved third party’s Underwriting Guidelines, (iii) if such Loan is a Dry Loan, contains
all required Loan Documents without Exceptions unless otherwise waived by Buyer, and (iv) such
other customary criteria for eligibility determined by Buyer shall have been satisfied. No Loan
shall be an Eligible Loan:

	 	(1)	 	in respect of which there is a material breach of a
representation and warranty set forth on Schedule 1 or there is an Exception
which was not otherwise waived by Buyer;
	 
	 	(2)	 	which has been released from the possession of the Custodian
under Section 6(a) of the Custodial Agreement to the Seller or its bailee for a
period in excess of ten (10) calendar days (or if such tenth day is not a
Business Day, the next succeeding Business Day);
	 
	 	(3)	 	which has been released from the possession of the Custodian
(i) under Section 6(b) of the Custodial Agreement under any Transmittal Letter
in excess of the time period stated in such Transmittal Letter for release, or
(ii) under Section 6(c) of the Custodial Agreement under an Attorney Bailee
Letter, from and after the date such Attorney’s Bailee Letter is terminated or
ceases to be in full force and effect;
	 
	 	(4)	 	if such Loan is not subject to a Takeout Commitment (unless
such Loan is a Best Execution Loan);
	 
	 	(5)	 	if the Purchase Price of such Loan, when added to the aggregate
outstanding Purchase Price of all Purchased Assets then subject to
Transactions, exceeds the Maximum Aggregate Purchase Price;
	 
	 	(6)	 	if such Loan has been subject to Transactions for more than
sixty (60) days (whether or not consecutive) and such Loan is not an Agency
Eligible Loan;
	 
	 	(7)	 	if such Loan has been subject to Transactions for more than
ninety (90) days (whether or not consecutive);
	 
	 	(8)	 	in respect of which (a) the related Mortgaged Property is the
subject of a foreclosure proceeding or (b) the related Note has been
extinguished under

 

			
	*** 	 	Note:  Confidential treatment has been requested with respect to the information
contained within the [***] marking. Such portions have been omitted from this filing and have been
filed separately with the Securities and Exchange Commission.

-2-

 

	 	 	 	relevant state law in connection with a judgment of foreclosure or
foreclosure sale or otherwise;
	 
	 	(9)	 	if (a) the related Note or the related Mortgage is not genuine
or is not the legal, valid, binding and enforceable obligation of the maker
thereof, subject to no right of rescission, set-off, counterclaim or defense,
or (b) such Mortgage, is not a valid, subsisting, enforceable and perfected
First Lien on the Mortgaged Property;
	 
	 	(10)	 	if such Loan is a Wet Loan subject to Transactions for more
than twelve (12) Business Days;
	 
	 	(11)	 	if such Loan was originated more than thirty (30) days prior to
the initial Purchase Date of such Loan;
	 
	 	(12)	 	if such Loan is not a First Lien Loan;
	 
	 	(13)	 	if such Loan is thirty (30) or more days past due;
	 
	 	(14)	 	if such Loan is secured by real property improved by
manufactured housing;
	 
	 	(15)	 	in respect of which the related Mortgagor is the subject of a
bankruptcy proceeding;
	 
	 	(16)	 	if the Mortgagor has not made its first contractually due
payment on such Loan within thirty (30) days of the related Due Date therefor;
	 
	 	(17)	 	if such Loan is a Non-Conforming Loan and the Purchase Price of
such Loan, when added to the aggregate outstanding Purchase Price of all
Non-Conforming Loans then subject to Transactions exceeds at any time
$10,000,000;
	 
	 	(18)	 	if such Loan is a Seasoned Agency Eligible Loan and the
Purchase Price of such Loan, when added to the aggregate outstanding Purchase
Price of all Seasoned Agency Eligible Loans then subject to Transactions
exceeds at any time 2% of the aggregate outstanding Purchase Price of all
Assets then subject to Transactions;
	 
	 	(19)	 	if such Loan is a Wet Loan, and on any date of determination
(other than during the Ramp-up Period), the Purchase Price of such Loan, when
added to the aggregate outstanding Purchase Price of all Purchased Loans that
are Wet Loans then subject to Transactions exceeds 30% of the Maximum Aggregate
Purchase Price;
	 
	 	(20)	 	if such Loan is a Wet Loan, and on any date of determination
during the Ramp-up Period, the Purchase Price of such Loan, when added to the
aggregate outstanding Purchase Price of all Purchased Loans that are Wet Loans
then subject to Transactions exceeds 40% of the aggregate outstanding Purchase
Price of all Purchased Assets then subject to Transactions; or

-3-

 

	 	(21)	 	if such Loan is an Early Purchase Program Loan and Seller has
not completed and transmitted the Applicable Agency Schedule to the applicable
Agency in accordance with Section 3(i) of the Agreement.

          “FHLMC Participation Certificate” shall mean a Participation Certificate that will be
exchanged for a Security under the Freddie Mac Program.

          “FNMA Participation Certificate” shall mean a Participation Certificate that will be
exchanged for a Security under the Fannie Mae Program.

          “GNMA I Participation Certificate” shall mean a Participation Certificate that will be
exchanged for a Ginnie I Mortgage-Backed Security.

          “GNMA II Participation Certificate” shall mean a Participation Certificate that will
be exchanged for a Ginnie II Mortgage-Backed Security.

          “LIBO Floor” shall mean [***].

          “MV Margin Percentage” shall mean with respect to each Asset, the percentage set forth
in the “MV Margin Percentage” column of Exhibit A hereto.

          “Par Margin Percentage” shall mean 100%.

          “Pricing Rate” shall, as of any date of determination, be equal to the sum of (i) the
greater of (1) the one-month LIBO Rate as of such date of determination and (b) the LIBO Floor
plus (ii) the Applicable Margin. The Pricing Rate is calculated on the basis of a 360-day
year and the actual number of days elapsed between the Purchase Date and the Repurchase Date.

          “Purchase Price” shall mean the price at which Purchased Assets are transferred by
Seller to Buyer in a Transaction, which shall be equal to the lesser of (i) the outstanding
principal amount of the related Purchased Assets and (ii) the product of the Applicable Percentage
multiplied by the Market Value of the related Purchased Assets.

          “Ramp-up Period” shall mean the first five (5) Business Days and the last five (5)
Business Days of each calendar month.

          “Seasoned Agency Eligible Loan” shall mean an Agency Eligible Loan that has been
subject to Transactions for between sixty-one (61) days and ninety (90) days (inclusive).

          Section 2. Amendment and Restatement

          The terms and provisions of the Existing Side Letter are hereby amended and restated in their
entirety by the terms and provisions of this Pricing Side Letter. This Pricing Side Letter is not
intended to, and shall not, effect a novation of any of the obligations of the parties to the
Existing Side Letter, but merely an amendment and restatement of the terms governing such
obligations.

          Section 3. Fees and Expenses.

          Seller shall be responsible for any and all legal fees and expenses, due diligence and other
out-of-pocket expenses incurred by Buyer or its agents in connection with preparation, review,

 

			
	*** 	 	Note:  Confidential treatment has been requested with respect to the information
contained within the [***] marking. Such portions have been omitted from this filing and have been
filed separately with the Securities and Exchange Commission.

-4-

 

negotiation, setting up, administering or amending of this Pricing Side Letter, the Agreement,
the other Program Documents and the transactions contemplated thereby.

          Section 4. Counterparts.

          This side letter may be executed by the parties hereto in separate counterparts, each of which
when so executed and delivered shall be an original, but all such counterparts shall together
constitute but one and the same instrument. The parties agree that this side letter, any documents
to be delivered pursuant to this side letter and any notices hereunder may be transmitted between
them by email and/or facsimile. The parties intend that faxed signatures and electronically imaged
signatures such as .pdf files shall constitute original signatures and are binding on all parties.

[Signature Page Follows]

-5-

 

     IN WITNESS WHEREOF, the parties hereto have caused their names to be signed hereto by their
respective officers thereunto duly authorized on the date first above written.

	 	 	 	 	 
	 	NATIONSTAR MORTGAGE LLC, as Seller

 	 
	 	By:  	/s/ Gregory Oniu
 	 
	 	 	Name:  	Gregory Oniu 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	THE ROYAL BANK OF SCOTLAND PLC (as assignee of RBS FINANCIAL PRODUCTS, INC.),

as Buyer and Agent, as applicable

BY: RBS Securities, Inc., its agent

 	 
	 	By:  	/s/ Regina Abayev
 	 
	 	 	Name:  	Regina Abayev 	 
	 	 	Title:  	VP 	 
	 

 

 

EXHIBIT A

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Days Such Assets are	 	 	 	 	 	 
	 	 	Subject to Transactions	 	 	 	 	 	 
	 	 	(whether or not	 	Applicable	 	Applicable	 	MV Margin
	Asset Type	 	consecutive)	 	Sublimit	 	Percentage	 	Percentage
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Non-Conforming
Loans that are Dry
Loans

	 	45 or fewer days
	 	(i) $10,000,000
minus (ii) the
aggregate Purchase
Price of all
Non-Conforming
Loans that are Dry
Loans subject to
Transactions
(whether or not
consecutive) for
between 46 days and
60 days (inclusive)
	 	 	[***]	 	 	 	[***]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	between 46 days and 60
days (inclusive)
	 	(i) $10,000,000
minus (ii) the
aggregate Purchase
Price of all
Non-Conforming
Loans that are Dry
Loans subject to
Transactions
(whether or not
consecutive) for 45
or fewer days
	 	 	[***]	 	 	 	[***]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	more than 60 days
	 	 	0	%	 	 	[***]	 	 	 	[***]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Agency Eligible
Loans that are Dry
Loans or Securities

	 	45 or fewer days
	 	 	100	%	 	 	[***]	 	 	 	[***]	 
	 

	 	between 46 days and 60
days (inclusive)
	 	 	100	%	 	 	[***]	 	 	 	[***]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	between 61 days and 90
days (inclusive)
	 	2% of aggregate
outstanding
Purchase Price
	 	 	[***]	 	 	 	[***]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	more than 90 days
	 	 	0	%	 	 	[***]	 	 	 	[***]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Wet Loans

	 	12 or fewer Business Days
	 	30% of Maximum
Aggregate Purchase
Price (other than
during Ramp Up
Period)
	 	 	[***]	 	 	 	[***]	 

 

			
	***	 	Note: Confidential treatment has been requested with respect to the information
contained within the [***] marking. Such portions have been omitted from this filing and have been
filed separately with the Securities and Exchange Commission.

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Days Such Assets are	 	 	 	 	 	 
	 	 	Subject to Transactions	 	 	 	 	 	 
	 	 	(whether or not	 	Applicable	 	Applicable	 	MV Margin
	Asset Type	 	consecutive)	 	Sublimit	 	Percentage	 	Percentage
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	40% of aggregate
outstanding
Purchase Price
(during Ramp Up
Period)
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	more than 12 Business Days
	 	 	0	%	 	 	[***]	 	 	 	[***]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	FNMA and GNMA I
Participation
Certificates

	 	3 or fewer Business Days
	 	 	100	%	 	 	[***]	 	 	 	[***]	 
	 

	 	between 4 and 6 Business
Days (inclusive)
	 	 	100	%	 	 	[***]	 	 	 	[***]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	more than 6 Business Days
	 	 	0	%	 	 	[***]	 	 	 	[***]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	GNMA II 

Participation 

Certificates

	 	4 or fewer Business Days
	 	 	100	%	 	 	[***]	 	 	 	[***]	 
	 

	 	between 5 and 6 Business
Days (inclusive)
	 	 	100	%	 	 	[***]	 	 	 	[***]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	more 6 Business Days
	 	 	0	%	 	 	[***]	 	 	 	[***]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	FHLMC Participation 

Certificates

	 	5 or fewer Business Days
	 	 	100	%	 	 	[***]	 	 	 	[***]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	6 Business Days
	 	 	100	%	 	 	[***]	 	 	 	[***]	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	more than 6 Business Days
	 	 	0	%	 	 	[***]	 	 	 	[***]	 

 

			
	***	 	Note: Confidential treatment has been requested with respect to the information
contained within the [***] marking. Such portions have been omitted from this filing and have been
filed separately with the Securities and Exchange Commission.

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