Document:

EX-10.67

 

Exhibit 10.67

EXECUTION COPY

 

ORIGINATION ASSISTANCE AGREEMENT

By and Between

MERRILL LYNCH CREDIT CORPORATION

and

CENDANT MORTGAGE CORPORATION

Dated as of

December 15, 2000

 

 

	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED.

 

 

Exhibit 10.67

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	Section 1.	 	Definitions
	 	 	1	 
	Section 2.	 	Mortgage Loan Types/Mortgage Loan Pricing
	 	 	10	 
	Section 3.	 	Exclusivity
	 	 	10	 
	Section 4.	 	PHH Personnel
	 	 	12	 
	Section 5.	 	Mortgage Loan Origination Channel
	 	 	13	 
	Section 6.	 	Operations
	 	 	14	 
	Section 7.	 	Mortgage Loan Funding
	 	 	18	 
	Section 8.	 	Amendment of Exhibit A
	 	 	18	 
	Section 9.	 	Communications
	 	 	18	 
	Section 10.	 	Use of MLCC Name and Logo
	 	 	19	 
	Section 11.	 	Retention of Marketing Rights
	 	 	19	 
	Section 12.	 	Origination Assistance Fee Paid by MLCC
	 	 	19	 
	Section 13.	 	Customer Fees and Charges
	 	 	20	 
	Section 14.	 	[* * *]
	 	 	20	 
	Section 15.	 	Legal and Regulatory Compliance
	 	 	22	 
	Section 16.	 	Mortgage Loan Representations, Warranties and Covenants of PHH
	 	 	23	 
	Section 17.	 	Representations, Warranties and Covenants of PHH for Mortgage Loans
	 	 	23	 
	Section 18.	 	Mortgage Loan Representations and Warranties of MLCC
	 	 	27	 
	Section 19.	 	General Representations, Warranties and Covenants of PHH
	 	 	27	 
	Section 20.	 	General Representations, Warranties and Covenants of MLCC
	 	 	28	 
	Section 21.	 	Records Preservation, Retention, and Reporting
	 	 	30	 
	Section 22.	 	Term; Termination
	 	 	30	 
	Section 23.	 	Cooperation
	 	 	32	 
	Section 24.	 	No Partnership
	 	 	32	 
	Section 25.	 	Notices
	 	 	32	 

 

	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

	 	 	 	 	 	 	 
	Section 26.	 	Modification of Origination Agreement
	 	 	33	 
	Section 27.	 	Miscellaneous
	 	 	33	 
	Section 28.	 	Expenses
	 	 	34	 
	Section 29.	 	Confidentiality and No Personal Solicitation
	 	 	34	 
	Section 30.	 	Further Assurances
	 	 	36	 
	Section 31.	 	Contingency Plan
	 	 	36	 
	Section 32.	 	Indemnification
	 	 	36	 
	Section 33.	 	MLBUSA Loans
	 	 	37	 
	Section 34.	 	Section Headings
	 	 	37	 
	Section 35.	 	No Assignment
	 	 	37	 
	Section 36.	 	Counterparts
	 	 	37	 
	Section 37.	 	No Waivers; Remedies Cumulative
	 	 	37	 
	Section 38.	 	Service Standards
	 	 	37	 
	Section 39.	 	Binding Effect
	 	 	40	 
	Section 40.	 	Benefit of Parties Only
	 	 	40	 
	Section 41.	 	Survival
	 	 	40	 
	 	 	 
	 	 	 	 
	Exhibit A -	 	Change of Control List
	 	 	 	 
	Exhibit B -	 	Form of Funding Instructions
	 	 	 	 
	Exhibit C -	 	Trademark Use Agreement
	 	 	 	 
	Exhibit D -	 	MLCC Privacy Policy
	 	 	 	 
	Exhibit E -	 	MLCC Underwriting Guidelines
	 	 	 	 
	Exhibit F -	 	Mortgage 100SM Guidelines
	 	 	 	 

ii

 

Exhibit 10.67

ORIGINATION ASSISTANCE AGREEMENT

          THIS ORIGINATION ASSISTANCE AGREEMENT (“Origination Agreement” or “Agreement”)
effective as of January 2, 2001 (“Effective Date”), is entered into by and between Merrill
Lynch Credit Corporation, a Delaware corporation with its principal place of business at 4802 Deer
Lake Drive East, Jacksonville, Florida 32246-6484 (“MLCC”), and Cendant Mortgage
Corporation d/b/a PHH Mortgage Services, a New Jersey corporation with its principal place of
business at 3000 Leadenhall Road, Mt. Laurel, New Jersey 08054 (“PHH”) (each, individually,
a “Party,” collectively, the “Parties”).

W I T N E S S E T H:

          WHEREAS, MLCC is in the business of originating residential Mortgage Loans (as defined
herein);

          WHEREAS, PHH is in the business of originating Mortgage Loans and providing certain
origination and processing services to other mortgage lenders and desires to provide those services
to MLCC as more particularly set forth in this Agreement;

          WHEREAS, MLCC and PHH are parties to a Mortgage Loan Purchase and Services Agreement dated as
of September 24, 1997, as thereafter amended (the “Initial Purchase and Servicing
Agreement”), pursuant to which PHH provided certain origination services to MLCC; and

          WHEREAS, PHH and MLCC are parties to a Termination Agreement, dated as of the date hereof,
which agreement shall terminate the existing origination agreement between PHH and MLCC, as and to
the extent provided in the Termination Agreement, and each of MLCC and PHH desires to establish a
new agreement relating to origination services;

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

          Section 1. Definitions. (a) Certain Defined Terms. As used in this
Agreement, the following terms shall have the following meanings:

          “Account Number” means an account number or similar form of access number relating to
a Borrower’s Mortgage Loan or other financial product or service with or from MLCC, other than any
internal identifying number assigned by PHH to the Mortgage Loan.

          “Additional Collateral” shall mean, with respect to any Mortgage 100sm Loan
or any Parent Power® Mortgage Loan, the Securities Account and the financial assets held
therein subject to a security interest pursuant to the related Mortgage 100sm Pledge
Agreement or Parent Power® Guaranty and Security Agreement for Securities Account,
respectively.

          “Additional Collateral Mortgage Loan” shall mean each Mortgage Loan that is either a
Mortgage 100sm Loan or Parent Power® Mortgage Loan as to which Additional
Collateral was required to be provided at the closing thereof.

 

 

          “Affiliate” or “affiliate” shall mean, with respect to any Person, any other
Person that directly or indirectly controls, is controlled by, or is under common control with,
such Person. (Capitalized terms derived from the word Affiliate (e.g., “Affiliated”) shall have
the corresponding meanings). For the purposes of this definition, “control,” “controlled by,” and
“under common control with” means the direct or indirect possession of ordinary voting powers to
elect a majority of the board of directors or comparable body of a Person.

          “Alternative Construction Loan” shall mean a Construction Loan which converts to a
PrimeFirst® Loan.

          “Alternative Loans” shall mean Alternative Construction Loans, Equity Access Loans and
PrimeFirst® Loans.

          “Applicable Requirements” shall mean and include, as of the time of reference,
collectively, (A) with respect to the Mortgage Loans, all of the following: (i) all contractual
obligations, including without limitation those contractual obligations contained in this
Agreement, in any agreement with any insurer or in the applicable Mortgage Loan; (ii) all
applicable federal, state and local legal and regulatory requirements (including statutes, rules,
administrative interpretations, regulations and ordinances as well as any of the foregoing
requirements applicable to MLCC by virtue of its state licenses, qualifications and exemptions and
by virtue of its being a subsidiary of MLBUSA); (iii) all other applicable requirements and
guidelines of each investor, insurer, governmental agency, board, commission, instrumentality and
other governmental body or office having jurisdiction; (iv) all other applicable judicial and
administrative judgments, orders, stipulations, awards, writs and injunctions; (v) the reasonable
and customary mortgage origination practices of prudent mortgage lending institutions which make
mortgage loans of the same type as the Mortgage Loans in the jurisdictions in which the related
Mortgaged Properties are located; (vi) any Mortgage Lending Laws; and (vii) any applicable MLCC or
MLBUSA internal policies and procedures, as revised from time to time in accordance with the terms
hereof, and (B) the Foreign Corrupt Practices Act of 1977, as amended.

          “Approval Letter” shall mean a correspondence issued to an applicant for a Mortgage
Loan, in MLCC’s name by PHH, approving an application for a Mortgage Loan. PHH shall use PHH’s
standard form of approval letter subject only to such changes as the Parties shall mutually agree
from time to time.

          “Assignment” shall mean a document, sufficient under the laws of the jurisdiction
where the related Mortgaged Property is located, to reflect all transfers of the Mortgage
Instrument and the Mortgage Note.

          “Borrower Information” means any personally identifiable information or records in any
form (written, electronic, or otherwise) relating to a Borrower, including, but not limited to, a
Borrower’s name, address, telephone number, loan number, loan payment history, delinquency status,
insurance carrier or payment information, tax amount or payment information; the fact that the
Borrower has a relationship with MLCC; and any other personally identifiable information.

          “Business Day” shall mean any day that is not a Saturday, Sunday or other day on which
either (i) commercial banks are required or authorized by law to be closed in the City of

2

 

New York or the State of Utah or (ii) the New York Stock Exchange is required or authorized by
law to be closed.

          “Concession(s)” shall mean, with respect to a PHH Loan, (i) an MLCC approved deviation
from the applicable rate sheet regarding interest rate, origination fee and/or discount points; or
(ii) a waiver by MLCC of certain fees associated with a Mortgage Loan, including but not limited
to, application fee, appraisal fee, or other promotional fees, which causes an addition or
subtraction from the Purchase Price.

          “Conforming Conventional Mortgage Loan” shall mean a Mortgage Loan the terms of which
are in conformity with the standards, including loan amount and documentation requirements, of
Fannie Mae (also referred to as “FNMA”) or Freddie Mac (also referred to as
“FHLMC”) under one of their respective home mortgage purchase programs (such standards
shall be referred to hereafter respectively as the “FNMA Guidelines” and the “FHLMC
Guidelines”) and any other Mortgage Loan except for Construction Loans, PrimeFirst®
Loans, Jumbo/Non-Conforming Mortgage Loans, Equity Access Loans or Government Loans which otherwise
meet MLCC Underwriting Guidelines.

          “Construction Loan” shall mean a Mortgage Loan for the purpose of financing the
construction (or alteration) of a one- to four-family residence, which Mortgage Loan is funded in
installments.

          “Continuing Directors” means, as of any date of determination, any member of the Board
of Directors of either Cendant or PHH, as the case may be, who:

     (1) was a member of such Board of Directors on the date hereof; or

     (2) was nominated for election or elected to such Board of Directors with the approval
of a majority of the Continuing Directors who were members of such Board at the time of such
nomination or election.

          “Direct Competitor” shall mean any Person listed on Exhibit A hereto.

          “EDP” means the electronic data processing system used by MLCC and PHH, which are
licensees of ALLTEL Information Services, Inc.

          “Equity Access® Agreement” shall mean the revolving line of credit
agreement entered into between MLCC and the Guarantor under any Parent Power® Guaranty
Agreement for Real Estate pursuant to which a line of credit may be drawn upon by MLCC to fund the
payment by such guarantor of a loss specified in such Parent Power® Guaranty Agreement
for Real Estate.

          “Equity Access Loans” shall mean a Mortgage Loan in the form of a revolving line of
credit secured by a Mortgage Instrument, currently referred to by MLCC as “Equity Access” or
“Equity Access Prime” loans.

          “Equity Access® Mortgage” means the mortgage, deed of trust or other
security instrument (including all amendments and supplements thereto) made by the Guarantor under
any Parent Power® Guaranty Agreement for Real Estate to secure its obligations
thereunder and under the related Equity Access® Agreement.

3

 

          “Financial Services Firm” shall mean any Person that offers, directly or indirectly,
any financial services or financial product.

          “Funding Amount” shall mean an amount equal to the sum of (a) the Origination
Assistance Fee for such loan plus (+) (b) the loan amount: provided, however, that
with respect to Construction Loans, the Origination Assistance Fee shall be included in the Funding
Amount only for the first draw.

          “Government Loan” is a Mortgage Loan that qualifies for mortgage insurance by the FHA
or that qualifies for a loan guaranty by the Veterans’ Administration.

          “Guarantor” means any individual who has guaranteed payment of a Mortgage Loan
pursuant to a Parent Power Agreement.

          “Information Security Program” means Cendant’s information security program to (i)
insure the security and confidentiality of Borrower Information; (ii) protect against any
anticipated threats or hazards to the security or integrity of the Borrower Information; and (iii)
protect against unauthorized access to or use of the Borrower Information that could result in
substantial harm or inconvenience to any Borrower.

          “Jumbo/Non-Conforming Mortgage Loan” is a conventional Mortgage Loan the original
principal balance of which exceeds the maximum loan amount for Conforming Conventional Mortgage
Loans specified by FNMA or FHLMC or otherwise does not meet the FNMA or FHLMC Guidelines.

          “LIBOR Interest Rate” shall mean the interest rate equal to 30-day LIBOR based upon a
360-day year.

          “MLBUSA” means Merrill Lynch Bank USA.

          “MLCC Data” means any data, databases, reports and records relating to financial
products from or services with MLCC, including, without limitation, Account Numbers, Borrower
Information, and data derived therefrom.

          “MLCC Performance Failure” means the failure of MLCC to generate[* * *].

          “MLCC Privacy Policy” means MLCC’s policy with respect to its Customers’ privacy, a
proto-type of which policy is attached hereto as Exhibit D and which may be amended from time to
time by MLCC without the consent of PHH if such amendments are required by Applicable Requirements.

          “MLCC Services” shall mean the Origination Services.

          “Mortgage 100sm Loan” means a Mortgage Loan secured by Additional
Collateral having a value, as of the date of origination of such Mortgage Loan, at least equal to
the related Original Additional Collateral Requirement.

 

	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

4

 

          “Mortgage 100sm Pledge Agreement” means, with respect to each Mortgage
100sm Loan, the Pledge Agreement for Securities Account between the related Mortgagor
and MLCC pursuant to which such Mortgagor granted a security interest in the related Securities
Account and other financial assets held therein.

          “Mortgage File” shall mean the file containing (a) the Mortgage or other deed of
trust, security deed, mortgage, or any other instrument which constitutes a first lien on the
Mortgaged Property securing payment by a Mortgagor of a Mortgage Note, (b) the Mortgage Note, (c)
the Assignments, if any, and (d) the credit and closing packages, custodial documents, applicable
servicing documents, escrow documents and all other files, records and documents necessary to
establish the eligibility of the Mortgage Loans for purchase.

          “Mortgage Instrument” means any deed of trust, security deed, mortgage, or any other
instrument which constitutes a first lien or second lien on the Mortgaged Property securing payment
by a mortgagor of a Mortgage Note.

          “Mortgage Loan” means a domestic, consumer purpose, one-to-four family residential
purchase money or refinance closed-end mortgage loan or open-end mortgage loan. The term “Mortgage
Loan” as used herein shall include, but not be limited to, Conforming Conventional Mortgage Loans,
Jumbo/Non-Conforming Mortgage Loans, PrimeFirst® Loans, Construction Loans, and Equity
Access Loans.

          “Mortgage Loan Documents” means the Mortgage Instruments, Mortgage Notes and
Assignments.

          “Mortgage Loan Pricing” means the interest rates, discount points, loan origination
fees, loan application fee, closing costs and other associated cost elements for a Mortgage Loan.

          “Mortgage Loan Types” means the various types of Mortgage Loans offered or to be
offered pursuant to this Agreement.

          “Mortgage Note” means the mortgage note, deed of trust note, security deed note or
other form of promissory note executed by a Mortgagor and secured by a Mortgage Instrument
evidencing the indebtedness of the Mortgagor under a Mortgage Loan.

          “Original Additional Collateral Requirement” shall mean, with respect to any
Additional Collateral Mortgage Loan, generally 30 percent of the original principal balance of such
Mortgage Loan or such lesser percentage thereof as is specified by MLCC in connection with the
origination of such Additional Collateral Mortgage Loan.

          “Origination Services” shall mean the loan origination services to be performed by PHH
for and on behalf of MLCC as detailed in this Agreement.

          “Parent Power® Agreement” means, with respect to each Parent Power®
Mortgage Loan, a Parent Power® Guaranty and Security Agreement for Securities
Account or a Parent Power® Guaranty Agreement for Real Estate.

          “Parent Power® Guaranty Agreement for Real Estate” means, with respect to
certain Parent Power® Mortgage Loans, an agreement between MLCC and a Guarantor on
behalf

5

 

of the Mortgagor under such Parent Power® Mortgage Loan pursuant to which such Guarantor
guarantees the payment of certain losses under such Parent Power® Mortgage Loan,
authorizes MLCC to draw on the related Equity Access Agreement to fund such guaranty, and has
secured such Equity Access Agreement with an Equity Access Mortgage secured by a lien on
residential real estate of the Guarantor.

          “Parent Power® Guaranty and Security Agreement for Securities Account”
means, with respect to certain Parent Power® Mortgage Loans, an agreement between MLCC
and a guarantor on behalf of the Mortgagor under such Parent Power® Mortgage Loan
pursuant to which such guarantor guarantees the payment of certain losses under such Parent
Power® Mortgage Loan and has granted a security interest to MLCC in certain marketable
securities to collateralize such guaranty.

          “Parent Power®Mortgage Loan” shall mean a Mortgage Loan that is supported
by a Parent Power® Agreement.

          “Person” means an individual, corporation, limited liability company, partnership,
joint venture, trust or unincorporated organization, or a federal, state, city, municipal or
foreign government, or an agency or political subdivision thereof.

          “Personnel” of a Party shall mean such Party, its employees, subcontractors,
consultants, representatives and agents.

          “PHH Change of Control” means the occurrence of any of the following:

     (1) the sale, lease, transfer, conveyance or other disposition, or by way of merger or
consolidation, in one or a series of related transactions, of all or substantially all of
the assets of Cendant Corporation (“Cendant”) or PHH (or any successor entity to either
thereof) to any “person"-as such term is used in Section 13(d)(3) of the Securities Exchange
Act of 1934, as amended, or

     (2) the adoption of a plan relating to the liquidation or dissolution of Cendant or
PHH;

     (3) the consummation of any transaction, including, without limitation, any merger or
consolidation, the result of which is that any “person,” as defined above, becomes the
beneficial owner, directly or indirectly, of more than 50% of the voting stock of either
Cendant or PHH; or

     (4) the first day on which a majority of the members of the Board of Directors of
Cendant are not Continuing Directors.

          “PHH Competitor Change of Control” means a PHH Change of Control to a Direct
Competitor.

          “PHH Data” means any data, databases, reports and records relating to Borrower
Information, including data derived therefrom, that are obtained or generated by PHH in connection
with the establishment or maintenance of customer relationships unrelated to the Origination
Services covered by the Agreement.

6

 

          “PHH Performance Failure” shall mean the occurrence of [* * *] Significant Survey
Failures in [* * *] period.

          “Piggyback Equity Access Loan” means a junior lien Equity Access Loan that is closed
contemporaneously with a first lien Mortgage Loan originated pursuant to the terms and provisions
of this Agreement.

          “Pipeline Loan” shall mean various potential Mortgage Loans (which are to be further
identified in the Letter Agreement) which are in one of various stages of loan origination,
approval and processing at MLCC, but which, as of the Effective Date, shall not have been closed
and funded.

          “Pledge Agreement” means any Mortgage 100sm Pledge Agreement or Parent
Power® Guaranty and Security Agreement for Securities Account related to an Additional
Collateral Mortgage Loan.

          “PrimeFirst® Loans” means adjustable rate loans offered by MLCC in which
the monthly debt repayments thereunder for approximately the first 120 months of the term thereof
are interest only.

          “Privacy Requirements” means (a) Title V of the Gramm-Leach-Bliley Act, 15 U.S.C. §
6801 et seq.; (b) the applicable federal regulations implementing such act and codified at 12 CFR
Parts 40, 216, 332, and/or 573; (c) Interagency Guidelines Establishing Standards For Safeguarding
Borrower Information proposed on June 26, 2000, unless and until such proposed guidelines are
superseded by final guidelines and/or rules applicable to MLCC (such proposed and/or final
guidelines and/or rules the “Interagency Guidelines”); and (d) other applicable federal,
state and local laws, rules, regulations, and orders relating to the privacy and security of
Borrower Information.

          “Program” shall mean the origination of Mortgage Loans for Customers on a private
label basis by PHH on behalf of MLCC pursuant to the terms of this Agreement.

          “Securities Account” shall mean, with respect to any Additional Collateral Mortgage
Loans, the account, together with the financial assets held therein, that are the subject of the
related Pledge Agreement.

          “Servicing Agreement” means each of (i) the Servicing Rights Purchase and Sale
Agreement, dated as of January 28, 2000, between MLCC and PHH, as amended, and (ii) the Servicing
Rights Purchase and Sale Agreement, dated as of the date hereof, between MLCC and PHH.

          “Significant Survey Failure” shall mean the occurrence of a Survey Failure for [* *
*], or [* * *] Survey Failures within [* * *] provided, that for the purpose of the
definition of “Significant Survey Failure” only, a “Survey Failure” shall mean the failure
of either or both Survey(s) to obtain an [* * *] satisfaction level in [* * *], subject to Section
38(c).

          “Standard Equity Access Loan” means an Equity Access Loan that is not a Piggyback
Equity Access Loan.

 

	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

7

 

          “Termination Assistance Period” shall have the meaning set forth in Section 22A(a).

          “Termination Assistance Services” shall have the meaning set forth in Section 22A(a).

          “Trademark Use Agreement” means the Trademark Use Agreement, dated as of the date
hereof, between MLCC and PHH, as the same may be amended from time to time in accordance with the
terms thereof.

          (b) Definitions. The following terms have the meanings set forth in the Section set
forth below:

	 	 	 
	Definition	 	Location
	Bankrupt Party
	 	22
	Competitor
	 	14(b)
	Competitor Data Point
	 	14(b)
	Conditional Marketing Obligations
	 	3A(f)
	Customer Fees and Charges
	 	13(a)
	Customer Survey
	 	38(a)
	Customers
	 	2(a)
	Exception Loan
	 	6(f)
	Extension Term
	 	22
	FCs
	 	3(a)
	FC Channel
	 	3(a)
	FC Survey
	 	38(a)
	HMDA
	 	15(a)(i)
	Indemnitees
	 	32
	Indemnitor
	 	32
	Initial Termination Date
	 	22
	Key Customer Question
	 	38(a)
	Key FC Questions
	 	38(a)
	Letter Agreement
	 	12(a)
	Losses
	 	32
	LSI
	 	6(c)
	[* * *]
	 	14(c)
	MLCC Pricing
	 	2(a)
	MLCC Underwriting Guidelines
	 	6(b)
	MLPF&S
	 	42
	Mortgage Lending Law
	 	15(a)
	Mortgage Loan Disclosure
	 	15(a)
	Mortgage Loan Documents
	 	15(a)
	Origination Assistance Fee
	 	12(a)
	PHH Data Point
	 	14(b)
	PHH Pricing
	 	2(a)
	Pipeline Loan Fees
	 	12(b)
	Pre-Approval Decision
	 	5(b)(iii)
	Pricing Occurrence
	 	14(b)

 

	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

8

 

	 	 	 
	Definition	 	Location
	Private Label Business Channel
	 	14(c)
	Programs
	 	14(b)
	Proprietary Marks
	 	29
	Rate
	 	14(b)
	Survey
	 	38(a)
	Survey Failure
	 	38(b)
	Telemarketing Origination Channel
	 	5(b)(i)
	Telephone Lines
	 	5(b)(i)
	USPC
	 	3(c)

          (c) Interpretation. (i) The headings contained in this Agreement or in any Exhibit
hereto are for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement. All Exhibits annexed hereto or referred to herein are hereby
incorporated in and made part of this Agreement as if set forth herein. Any capitalized terms used
in any Exhibit but not otherwise defined therein shall have the meaning as defined in this
Agreement.

          (ii) In the event that an ambiguity or a question of intent or interpretation arises, this
Agreement shall be construed as if drafted jointly by the parties and no presumption or burden of
proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions
of this Agreement.

          (iii) The definitions of the terms herein shall apply equally to the singular and plural forms
of the terms defined. Whenever the context may require, any pronoun shall include the
corresponding masculine, feminine and neuter forms. The words “include,” “includes” and
“including” shall be deemed to be followed by the phrase “without limitation.” The word “will”
shall be construed to have the same meaning and effect as the word “shall.” Unless the context
requires otherwise (a) any definition of or reference to any agreement, instrument or other
document herein shall be construed as referring to such agreement, instrument or other document as
from time to time amended, supplemented or otherwise modified (subject to any restrictions or such
amendments, supplements or modifications set forth herein), (b) any reference herein to any Person
shall also be construed to mean such Person’s successors and permitted assigns, (c) the words
“herein,” “hereof” and “hereunder,” and words of similar impact, shall be construed to refer to
this Agreement in its entirety and not to any particular provision hereof, and (d) all references
herein to Articles, Sections or Exhibits shall be construed to refer to Articles, Sections or
Exhibits of this Agreement.

          Section 1A. Effectiveness Upon Closing. Notwithstanding the fact that this Agreement
shall have been executed prior to the Effective Date, no provision contained herein, including,
without limitation, the survival provision contained in Section 41, shall become effective until
the Closing Date (as defined in the Asset Purchase Agreement, dated as of December 15, 2000, by and
between PHH and MLCC). In the event that the Closing shall not occur, this Agreement will have no
effect whatsoever, as if it had never been executed by the Parties, and the Parties will have no
rights or obligations under this Agreement.

9

 

          Section 2. Mortgage Loan Types/Mortgage Loan Pricing. (a) MLCC intends to offer its
current and prospective customers (“Customers”) the full range of Mortgage Loans that are
currently offered or may in the future be offered as provided in Section 2(b) herein. PHH shall be
responsible for developing the various Mortgage Loan Types and establishing the Mortgage Loan
Pricing for all Conforming Conventional Mortgage Loans and Jumbo/Non-Conforming Mortgage Loans
(“PHH Pricing”). Mortgage Loan Pricing for Alternative Loans and Construction Loans shall
be established by MLCC (“MLCC Pricing”). MLCC shall at all times during this Agreement
maintain sufficient levels of staffing and resources necessary to comply with the preceding
sentence.

          (b) From time to time, MLCC may request that a Mortgage Loan Type not offered by it as of the
Effective Date be made available to Customers pursuant to this Agreement. If PHH is not so
offering the requested Mortgage Loan Type at such time, MLCC may request that such Mortgage Loan
Type be made available to Customers pursuant to this Agreement and, subject to the third sentence
following, PHH hereby agrees to make such Mortgage Loan Type available to Customers. Upon such
request, MLCC and PHH shall mutually agree upon the cost allocation of the set-up and processing
functions to be implemented by PHH to accommodate MLCC’s request. The Parties acknowledge that the
typical start-up time necessary for any such product is [* * *] from the time MLCC and PHH mutually
agree to make such product available. If the Parties cannot agree on the cost allocation and other
necessary terms, PHH shall not be obligated to offer such loan product, and MLCC shall have the
right to make such loan product available to Customers in any manner whatsoever. In no event shall
PHH, without the prior written consent of MLCC, offer to its customers or clients (i) MLCC’s
pledged asset program, currently referred to by MLCC as the “Mortgage 100 Program,” or (ii) any
other loan product developed by MLCC subsequent to the date hereof, until, in the case of both
clauses (i) and (ii), such time as such product is generally available in the residential loan
marketplace. Notwithstanding clause (i) of the immediately preceding sentence, PHH shall have the
right to offer to its customers and clients a pledged asset program similar to the “Mortgage 100
Program” so long as such customers and clients establish a Securities Account with an Affiliate of
MLCC and place in such account the Additional Collateral to be pledged in connection with such
pledged asset program. With respect to any Mortgage Loan Type developed by MLCC after the
Effective Date, MLCC expressly reserves the right to trademark or copyright such new Mortgage Loan
Type.

          Section 3. Exclusivity. (a) For the term of this Agreement, inclusive of any
Extension Term, MLCC shall use, and direct its Affiliates to use, PHH as the exclusive provider of
Origination Services with respect to all Mortgage Loans for or on behalf of (i) USPC clients who
have a relationship with a Merrill Lynch Financial Consultant (“FC”) or are referred by an
FC, and (ii) clients of the Merrill Lynch Investor Services Group (or any successor group) (the
“FC Channel”).

          (b) If, during the term of this Agreement, inclusive of any Extension Term, MLCC or any of its
Affiliates determines to offer Mortgages Loans on Merrill Lynch Directsm (“ML
Direct”), Merrill Lynch OnLinesm (“MLOL”) or Merrill Lynch Benefits Online
(“MLBOL”), MLCC shall use, and direct its Affiliates to use, PHH as the exclusive provider
of Origination Services with respect to all Mortgage Loans to be offered on ML Direct and MLOL, and
the non-exclusive provider of Origination Services with respect to all Mortgage Loans to be offered
on MLBOL, on terms and conditions which are mutually agreeable to each of MLCC and PHH. The
Parties each hereby covenant and agree to negotiate such terms and conditions in good faith for a

 

	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

10

 

period not to exceed [* * *]. If the parties cannot reach mutual agreement within such [* *
*] period, MLCC shall have the right to approach and negotiate with other providers of origination
services. If any such origination service provider shall have proposed a bid for such origination
services, MLCC shall notify PHH of such bid and PHH shall have the right, within [* * *], to match
such bid. and if it does so, MLCC shall be obligated to accept PHH’s bid provided that the
terms and conditions of PHH’s bid (other than with respect to price) are substantially the same as
those proposed by the other origination service provider. If PHH fails to make such a bid or match
such bid, MLCC shall no longer have any obligation to negotiate with PHH with respect to such bid.

          (c) As used in this Section 3: “USPC” shall mean the Merrill Lynch & Co., Inc.
business segment commonly referred to as the “U.S. Private Client Group,” which currently consists
of approximately 14,000 FCs and provides products and services in the United States related to the
accumulation and management of wealth, including brokerage and related activities, or any successor
group thereto.

          (d) Notwithstanding anything else in this Agreement, MLCC agrees to cause its Affiliates not
to directly or indirectly take any actions or act in concert with anyone who takes an action
(including the failure to take an action) such that the resulting effect is that any:

          (i) obligations of MLCC under this Section 3 are not performed or are reasonably
likely not to be performed; or

          (ii) objective of this Section 3 is not accomplished or is reasonably likely not to
be accomplished.

          During the Term neither MLCC nor any of its Affiliates within USPC shall intentionally
discourage, inhibit, prohibit or prevent FCs from participating in the Program; provided, however,
that MLCC may, and may cause its Affiliates within USPC to, decrease or eliminate compensation
levels paid to FCs in relation to Mortgage Loans in accordance with Section 3A(b).

          Section 3A. MLCC Marketing Covenants. (a) [* * *]. MLCC shall, [* * *],
notify PHH of its estimate of [* * *.]

          (b) FCs and Specialist [* * *]. For a period of [* * *] from the Effective Date, MLCC
covenants and agrees to (i) cause its Affiliates to maintain the [* * *] Financial Consultants in
relation to Mortgage Loans [* * *]; provided, however, that nothing hereunder shall
require MLCC to fund or reimburse any such Affiliate for any such compensation, and (ii)maintain
the [* * *] “Mortgage and Credit
Specialists” 
[* * *].

          (c) Alternative Origination Channels. MLCC shall use commercially reasonable efforts
to close Mortgage Loans to be originated pursuant to the terms and provisions of this Agreement
via: (i) Merrill Lynch Benefits Online, (ii) any Merrill Lynch employee

 

	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

11

 

relocation program, and (iii) any mortgage discount program offered to Merrill Lynch employee from
time to time.

          (d) Seminars. MLCC, at its expense, will direct a majority of its “Mortgage and
Credit Specialists” to attend PHH’s semiannual product and program updates to be held at locations
and times as agreed upon by PHH and MLCC.

          (e) Conditional Marketing Period. (i) Subject to subparagraphs (ii), (iii) and (iv)
in this paragraph (e), until [* * *], MLCC shall be required to perform the Conditional Marketing
Obligations (as defined in paragraph (f) below).

          (ii) MLCC shall not be required to perform the Conditional Marketing Obligations in any
calendar year if, in the prior calendar year, (a) [* * *], (b) PHH shall have (i)(A) experienced [*
* *] Survey Failure, in which case [* * *], (B) experienced [* * *] Survey Failures, in which case
[* * *], or (C) experienced [* * *] Survey Failures, in which case [* * *]; (ii) PHH shall have
failed, at any time during such year, to comply with its obligations contained in Sections 14 (b)
or (c) hereof or shall have failed to meet any of the standards contained in Sections 14(b) or
14(c) hereof; or (iii) a “Market Change” shall have occurred. “Market Change” in any given year
shall mean [* * *]. In the event of a Market Change, the volume level referred to in clause (a)
shall be reduced by [* * *].

          (iii) In no event shall MLCC be required to perform any Conditional Marketing Obligations
following [* * *].

          (f) Conditional Marketing Obligations. The following obligations shall constitute
MLCC’s conditional marketing obligations (collectively, the “Conditional Marketing
Obligations”):

	 	 (i)	 	MLCC will keep in place during [* * *], a number of trained
“Mortgage and Credit Specialists” to support the marketing of the Mortgage
Program hereunder not fewer than [* * *]; and
	 
	 	 (ii)	 	In lieu of the semiannual meetings referenced in paragraph (c)
above, such meetings shall occur [* * *].

          Section 4. PHH Personnel. (a) PHH will provide, supervise and make available such
personnel as are reasonably necessary to carry out PHH’s obligations under this Agreement.

 

	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

12

 

Such personnel, including rate lock personnel, shall be available between the hours of 8:30 a.m.
and 8 p.m. EST on Business Days. Such personnel, excluding rate lock personnel, shall also be
available, as needed, to process Mortgage Loans and contact Customers between the hours of 8:30
a.m. and 5 p.m. EST on Saturdays, except in those instances where a Saturday falls on or near a
national holiday and PHH notifies MLCC in advance that its facilities will be closed on any such
day.

          (b) PHH shall [* * *].

          (c) PHH shall, upon reasonable notice, permit MLCC employees reasonable access to PHH’s
offices where it conducts Origination Services under the Program during PHH’s customary working
hours to observe and assist in the origination, processing and closing of the Mortgage Loans. PHH
shall, at its expense, make available all customary, reasonable office space, facilities, and
equipment for such employees. The salaries, travel, subsistence and other related expenses for
such employees shall be borne by MLCC.

          Section 5. Mortgage Loan Origination Channel. (a) Except as otherwise provided in
this Agreement, MLCC shall actively, and at its own expense, market and assist its Customers in
securing Mortgage Loans through the Telemarketing Origination Channel, as described in Section
5(b). From time to time, MLCC and PHH may agree to alternative or additional origination channels,
the terms and conditions of which shall be set forth in an Addendum hereto.

          (b) The Telemarketing Origination Channel. (i) PHH, with the reasonable cooperation
of MLCC, shall provide to Customers dedicated and exclusive toll-free telephone tines established
and operated at the expense of and by PHH (“Telephone Lines”), which PHH reasonably
believes are adequate to meet the reasonably anticipated needs of such Customers
(“Telemarketing Origination Channel”). Such reasonable cooperation of MLCC shall include
the provision of, and the right of PHH to use, the toll-free telephone number(s) now utilized by
MLCC; provided, however, that upon termination of this Agreement, PHH shall no
longer have any right to use or publicize in any manner whatsoever, such toll-free telephone
number. If MLCC is at anytime not bound by the exclusivity provisions of this Section 3, MLCC will
make available to PHH an alternative toll-free number.

          (i) Trained PHH personnel shall answer Telephone Lines in the name of MLCC. Such personnel
shall explain to the Customer, as appropriate: (a) the procedure to be followed in obtaining a
Mortgage Loan; (b) the various Mortgage Loan Types available and their associated Mortgage Loan
Pricing; and (c) their short- and long-term financial implications. Such personnel shall provide
counsel and advice to the Customer as to the Mortgage Loan Types that might best serve the
Customer’s needs.

          (ii) PHH shall [* * *]

 

	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

13

 

          (iii) PHH will provide Customers, for whom it has made a Pre-Approval Decision that the
Customer is likely to be approved for a Mortgage Loan, with information tailored to the Customer’s
individual circumstances. Such information will be designed to enable the Customer to determine
the nature of the Mortgage Loan the Customer may qualify for if an appropriate property securing
the Mortgage Loan is identified and all information submitted is verified.

          Section 6. Operations. (a) Counselors. PHH shall cause each Customer who
makes application for a Mortgage Loan to be processed through the Telemarketing Origination Channel
to be served by a counselor, processing team or other persons employed by PHH and determined by PHH
to be most efficient under the circumstances. PHH shall cause each such counselor, processing team
or other persons to serve the Customer throughout the entire process of Mortgage Loan application,
processing, underwriting and closing, and to meet the Customer’s closing date.

          (b) Underwriting Guidelines. Loans originated under this Agreement shall be
underwritten in accordance with the “MLCC Underwriting Guidelines” which are attached hereto as
Exhibit E and made a part hereof, as may be amended from time to time by mutual agreement of MLCC
and PHH, and which shall comply, in the case of Conforming Conventional Mortgage Loans, with the
standards of FNMA, FHLMC and, in the case of other Mortgage Loans, other applicable federal
agencies and investors, as applicable, providing standards for the underwriting of mortgage loans
eligible for sale in the secondary market (hereafter, “MLCC Underwriting Guidelines”). To
the extent that the MLCC Underwriting Guidelines are amended by mutual agreement of the parties
after the Effective Date, and such amendments are requested by MLCC yet not required by Applicable
Requirements (as if such definition did not contain clause (vii)), any reasonable and documented
incremental costs or expenses incurred by PHH with respect to its performance of the Origination
Services hereunder which are caused by such change to the MLCC Underwriting Guidelines shall be
reimbursed by MLCC until such changes are mandated by Applicable Requirements.

          (c) Mortgage Loan Application Processing. For each Customer who applies for a
Mortgage Loan through the Telemarketing Origination Channel, PHH shall arrange for the receipt by
the Customer, as promptly as practicable under the circumstances, and in any event in accordance
with applicable law, of (i) the Mortgage Loan application for the Customer to review and sign
accompanied by a request for appropriate Customer documents and (ii) all Mortgage Loan disclosures
completed, as appropriate, in the name of MLCC. In addition, and to the extent required or
permitted under MLCC Underwriting Guidelines, as applicable, PHH shall: (i) verify

14

 

the Customer’s credit history; (ii) obtain an appraisal or other appropriate valuation of the real
property that will secure the Customer’s Mortgage Loan; (iii) cause to be conducted a review of or
report on the status of the legal title to the real property prepared by a qualified title company
or other entity acceptable to PHH and MLCC; (iv) evaluate the Customer’s employment history; (v)
evaluate information provided with respect to the Customer by MLCC; (vi) perform such other
underwriting functions as PHH deems appropriate; and (vii) communicate a loan decision or
counteroffer to the Customer in accordance with all applicable laws. PHH shall have the right to
select all settlement service providers utilized in fulfilling the processing described hereunder,
except for the services to be performed by Lender’s Service, Inc. (“LSI”) pursuant to the
Vendor Agreement dated as of July 10, 1998 between LSI and MLCC, which services PHH shall request
from LSI pursuant to the terms of such agreement until expiration of the current term or earlier
termination thereof.

          (d) Degree of Care. PHH shall perform the origination, processing, underwriting,
approval, closing, shipping, and other Origination Services as set forth in this Agreement on all
Mortgage Loans and PHH shall process all Mortgage Loans on behalf of, and in the name of, MLCC in
accordance with Applicable Requirements and with no less degree of care than PHH would exercise
when it originates mortgage loans for its own account. PHH shall issue Approval Letters on those
applications which generally satisfy MLCC Underwriting Guidelines. All Approval Letters issued
with respect to Mortgage Loans shall be for loans to be made at the interest rates set forth on the
applicable rate sheet provided by PHH or MLCC, as the case may be, for the product in question,
taking into account the applicable origination points, discount points, Concession and/or lock-in
fees.

          (e) Mortgage Loan Closing. PHH shall use its best efforts to complete the processing
and closing of all Mortgage Loans originated pursuant to this Agreement in the time frame requested
by the Customer at the time of Mortgage Loan application. PHH shall: (i) prepare all required
Mortgage Loan closing documents in the name of MLCC in accordance with MLCC’s applicable state
and/or federal lending licenses or exemption, as the case may be; (ii) arrange for their execution
by Customer, as appropriate; (iii) provide the Customer with a copy of the MLCC Privacy Policy in
accordance with the Privacy Requirements; and (iv) arrange for the Mortgage Loan closing. All
Mortgage Loans shall be closed in the name of MLCC. On purchase money Mortgage Loans, PHH shall
meet the closing date set by the Customer or PHH shall [* * *] (unless the failure to meet such
deadline shall be caused by MLCC’s non-compliance with Section 6(k), in which case MLCC shall [* *
*]). For refinance loans, PHH acknowledges and will use its best efforts (taking into
consideration factors such as periods of high volume loan refinance activity (as substantiated by
the Refinance Application Index as promulgated by the Mortgage Bankers Association and subject to
MLCC’s compliance with Section 6(k), as applicable)) to perform its obligations hereunder to
complete the processing and closing in a manner consistent with MLCC’s policy of closing such loans
within thirty (30) days from the date of application.

          (f) Exception Loans. PHH shall promptly advise MLCC about any application for a
Mortgage Loan that PHH determines does not meet the MLCC Underwriting Guidelines (“Exception
Loan”). MLCC may, in its sole discretion, advise PHH to process such Mortgage Loan and, if so,
upon what terms and conditions PHH shall process such Mortgage Loans. MLCC shall at all times
during this Agreement maintain sufficient levels of staffing and resources

 

	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

15

 

necessary to comply with the preceding sentence. Upon such direction by MLCC, PHH shall complete
the performance of the Origination Services with respect to such Exception Loan. PHH shall issue
Approval Letters on those applications associated with an Exception Loan. All Approval Letters
issued with respect to Exception Loans shall be for loans to be made at the interest rates set
forth on the MLCC rate sheet for the applicable product type, taking into account the applicable
origination points, discount points, Concessions and/or lock-in fees. MLCC shall reimburse PHH for
any reasonable, customary and documented out-of-pocket costs and expenses incurred in the
origination of any Exception Loan, to the extent such documented out-of-pocket costs and expenses
exceed PHH’s normal costs and expenses incurred with respect to the origination of a Mortgage Loan.

          (g) Compliance and Performance Reviews. MLCC, its officers, employees and agents,
including third-party attorneys and accountants and auditors, and regulatory officials with
regulatory authority over MLCC may, from time to time, and at their sole cost and expense, perform
reviews, including, but not limited to, onsite visits to ensure that PHH is conducting its
activities and performing its obligations under this Agreement in accordance with all Applicable
Requirements. PHH shall provide, during normal business hours and reasonable advance notice,
access to such documents, books, reports, policies and procedures, personnel and systems and other
support and assistance as MLCC may reasonably request for the purpose of carrying out such reviews.
MLCC’s rights under this paragraph shall survive any subsequent sale of any Mortgage Loan to PHH.

          (h) Access to Documents and Employees. PHH hereby agrees that it shall, at its sole
cost and expense, make available, or cause to be made available, to MLCC or any person designated
by MLCC, in a timely manner, all documents or materials in the possession of PHH that MLCC is
required to supply to any federal or state regulatory body with respect to the matters contemplated
by this Agreement. In furtherance of the foregoing, PHH shall, at its sole cost and expense, make
available, or cause to be made available, during normal business hours and reasonable advance
notice, to MLCC or any person designated by MLCC, resources, including, but not limited to, access
to employees, sufficient to respond adequately to any issue or concern raised by such federal or
state authorities. Any fine, penalty, levy or restitution ordered by any such federal or state
body that would give rise to indemnity by PHH pursuant to Section 32 herein shall be paid by PHH
or, if MLCC shall have paid any such amount, PHH shall immediately reimburse MLCC for such amount.
MLCC’s rights under this paragraph shall survive any subsequent sale of any Mortgage Loan to PHH.

          (i) PHH Maintenance of Licenses. PHH hereby agrees that it shall, at its own cost and
expense, obtain and maintain any and all licenses and registrations, and cause any of its employees
to obtain any and all licenses and registrations, that are necessary or desirable in the
performance of the Origination Services to be provided by PHH pursuant to the terms of this
Agreement.

          (j) MLCC Maintenance of Licenses. MLCC hereby agrees that it shall, at its own cost
and expense, obtain and maintain any and all licenses and registrations, and cause any of its
employees to obtain any and all licenses and registrations, that are necessary to permit the
Mortgage Loans to be originated in its name as contemplated by this Agreement and to file required
reports and respond to investigations and inquiries of state examiners in relation thereto and to
submit any reports thereto (including any required HMDA reports). MLCC shall at all times during
this Agreement maintain sufficient levels of staffing and resources necessary to

16

 

comply with the preceding sentence although nothing herein shall be construed to relieve PHH of its
obligations to comply with Applicable Requirements pursuant to the terms of this Agreement.
Further, PHH acknowledges and agrees that it is PHH’s responsibility to promptly furnish MLCC with
such information and documentation requested by MLCC that is reasonable or necessary to comply with
its obligations under this paragraph (j).

          (k) Mortgage 100sm Loans. With respect to any Mortgage Loan which is an
Additional Collateral Mortgage Loan, MLCC hereby agrees that it shall, at its own cost and expense
and in accordance with MLCC’s internal guidelines and procedures regarding such loans as attached
hereto as Exhibit F, carry out and perform in a timely manner all functions associated with the
establishment and administration of Securities Accounts for Additional Collateral Mortgage Loans.
MLCC shall also prepare, process and deliver, or cause to be delivered at or prior to closing, all
documentation necessary in connection with the pledge of the Additional Collateral pertaining to
such Additional Collateral Mortgage Loans. MLCC and PHH hereby agree to consult and cooperate with
each other in connection with the origination, processing and closing of Additional Collateral
Mortgage Loans. MLCC shall at all times during this Agreement maintain sufficient levels of
staffing and resources necessary to comply with this paragraph.

          (l) Work Policy. Personnel of either Party working on the premises of the other Party
(excluding in the case of PHH, premises of MLCC leased to PHH), and all other Personnel required by
Law or government rules or regulations, shall comply with the safety, security and other
regulations of the other Party generally applicable to its outside contractors and Personnel
particular to each work location, including, where applicable, internal security department
fingerprinting, photographing and screening processes. Personnel of a Party, when deemed
appropriate by the other Party, will be issued visitor identification cards. Each such card will
be surrendered by upon demand by the other Party or upon termination of this Agreement or
completion of the relevant MLCC Services. Unless otherwise agreed by the Parties, Personnel of
each Party will observe the working hours, working rules, and holiday schedules of the other Party
while working on the other Party’s premises (excluding in the case of PHH, premises of MLCC leased
to PHH). Each Party shall advise the other Party immediately in the event that any Personnel with
security access to any premises of the other Party (i) is no longer assigned to perform MLCC
Services, or (ii) is no longer employed by such Party.

          (m) Use of Hardware and Software. In the event that PHH shall be performing MLCC
Services on behalf of MLCC and any third party utilizing common hardware and/or Software, MLCC
shall have the right, on reasonable notice to PHH and at MLCC’s sole cost and expense, to audit
such hardware and Software to ensure segregation of MLCC Data from third party data adequate to
prevent unauthorized disclosure of MLCC Data to third parties, and to ensure the security of MLCC
Data in accordance with normal industry practices, provided that such audit shall not disrupt PHH’s
ability to perform the MLCC Services.

          (n) Technical Architecture Standards. On notice thereof, PHH shall comply with all
reasonable MLCC information management technical architecture standards related to interfacing with
MLCC systems, as identified and amended by MLCC from time to time.

          (o) Compliance with Policies. PHH shall, upon notice thereof by MLCC, comply with all
of MLCC’s commercially reasonable policies and procedures regarding security and safeguarding of
MLCC Data.

17

 

          (p) Continuation of MLCC Services. PHH acknowledges that the provision of MLCC
Services is critical to the business and operations of MLCC. In the event of a fee dispute between
MLCC and PHH pursuant to which either Party in good faith believes it is entitled to withhold
payment of the disputed amount or for which either Party in good faith believes payment is due,
each Party shall continue to perform its obligations under the Ancillary Agreements, including
continuing to pay undisputed amounts. Neither Party shall not under any circumstances suspend or
disrupt, or seek any injunctive or other equitable relief for the purpose of suspending or
disrupting, directly or indirectly, provision of the services to the other Party under the
Ancillary Agreements or the normal business operations of the other Party.

          Section 7. Mortgage Loan Funding. PHH shall send MLCC funding instructions via
facsimile in the form attached hereto as Exhibit B for each funding of a Mortgage Loan or
construction draw related to a Mortgage Loan to be closed by PHH on behalf of MLCC. Upon receipt
of each such funding instruction from PHH, MLCC shall fund the Mortgage Loan at the Funding Amount
by wire transfer of immediately available funds to an account designated by PHH. Such account
shall be a custodial account held by PHH for the benefit of MLCC. PHH shall not request MLCC to
fund a Mortgage Loan or construction draw for a Construction Loan more than one (1) Business Day
prior to the date PHH expects to disburse the proceeds of such Funding Amount. By giving such
funding instructions, PHH shall be deemed to have certified to MLCC that all conditions of the
Approval Letter are satisfied, and such Mortgage Loan shall, upon closing, satisfy all Applicable
Requirements.

          If MLCC has wired the Funding Amount to PHH as described above and the Mortgage Loan does not
close on the scheduled closing date for any reason whatsoever, PHH will, upon receipt of notice of
the failed closing, [* * *].

          Section 8. Amendment of Exhibit A. PHH agrees that Exhibit A hereto may be amended
by MLCC during the month of January 2003 and during every second January thereafter by sending
written notice to PHH of such amendments; provided, however, that each such
amendment may change no more than ten Persons on such Exhibit; provided further,
that (i) Persons added to Exhibit A shall be Persons which are Financial Services Firms and (ii)
Exhibit A shall not at any time contain more than twenty Persons.

          Section 9. Communications. (a) The Parties shall develop commercially reasonable,
appropriate and cost-effective voice, data, facsimile and e-mail processes and systems to support
communication between them, including the distribution of products, pricing, service level status,
loan processing status, and Customer information and funding or purchasing of Mortgage Loans. Each
Party shall pay the costs it incurs in developing such communications.

          (b) PHH shall provide MLCC on a daily, monthly or yearly basis, as the case may be, the
reports that are required to be provided by PHH to MLCC as of the Effective Date pursuant to the
Mortgage Loan Purchase and Services Agreement, dated as of September 24, 1997, as amended, between
MLCC and PHH and as may otherwise be agreed to in writing by the Parties.

 

	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

18

 

          Section 10. Use of MLCC Name and Logo. The provisions of the Trademark Use
Agreement, a copy of which is attached and made a part hereof as Exhibit C, are hereby incorporated
by reference as if fully set forth in this Origination Agreement.

          Section 11. Retention of Marketing Rights. Nothing in this Origination Agreement
shall restrict, limit or prohibit in any way MLCC’s right to offer other products and services to
Customers and former Customers as well as any other individual or entity.

          Section 12. Origination Assistance Fee Paid by MLCC. (a) For PHH’s services
(including the provision of certain facilities) as described in this Origination Agreement, and for
the liability PHH assumes in providing such services and facilities, MLCC shall pay to PHH a fee
(an “Origination Assistance Fee”) of $[* * *] for each Conforming Conventional Mortgage
Loan, $[* * *] for each Jumbo/Non-Conforming Mortgage Loan, $[* * *] for each
PrimeFirst® Loan, $[* * *] for each Construction Loan, $[* * *] for each Standalone
Equity Access Loan and $[* * *] for each Piggyback Equity Access Loan processed and closed by PHH
hereunder; provided, however, that with respect to any Pipeline Loan that becomes a
Mortgage Loan, MLCC shall pay PHH in accordance with the terms of the Letter Agreement, dated as of
December 15, 2000, executed by PHH and MLCC (the “Letter Agreement”).

          (b) With respect to any Pipeline Loan, notwithstanding the proviso at the end of paragraph (a)
above, the other provisions of this Agreement shall apply to such Pipeline Loans upon such Pipeline
Loan becoming a Mortgage Loan.

          (c) MLCC agrees to pay the Origination Assistance Fee to PHH at the time of Mortgage Loan
Funding as part of the Mortgage Loan Funding Amount as described in Section 7.

          (d) The Parties acknowledge and agree that with respect to the Origination Assistance Fee paid
to PHH for a Construction Loan, $[* * *] of such fee shall compensate PHH for its performance of
certain processing and administration services relating to such Construction Loan between the time
such Construction Loan is first funded through and including the conversion of such Construction
Loan into a permanent Mortgage Loan. PHH hereby agrees to perform such services for and on behalf
of MLCC during such period in a manner consistent with reasonable commercial practices associated
with the administering and servicing of such Mortgage Loans.

          (e) The Parties agree that the amount of the Origination Assistance Fee is equal to the fair
market value of the services and facilities provided and liability assumed by PHH under this
Origination Agreement as of the Effective Date.

          (f) With respect to PrimeFirst® Loans, Construction Loans and Equity Access Loans,
PHH agrees to include, or cause the closing agent to collect, on behalf of MLCC, the loan
origination fee charged in respect of such Mortgage Loans. PHH shall, in accordance with Section
13, cause the closing agent to collect all Customer Fees and Charges from the Customer at closing.
Upon receipt of such funds from the Customer, PHH shall promptly remit to MLCC an amount equal to
the origination fee collected in accordance with the first sentence of this paragraph (f).

(g) PHH agrees that if at any time after the Effective Date, [* * *.]

 

	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

19

 

          Section 13. Customer Fees and Charges. (a) At Mortgage Loan closing and at such
other times as may be customary, the closing agent may collect from the Customer and forward to PHH
an amount (“Customer Fees and Charges”) equal to the sum of: (i) all reasonable charges or
fees paid or incurred by PHH for taking the Mortgage Loan application, locking in Mortgage Loan
Pricing, surveys, title insurance premiums, appraisal fees, abstract and attorneys’ fees, recording
or registration charges, escrow fees, document preparation fees, credit report charges, tax service
fees and similar charges, and all other reasonable and customary third-party charges for settlement
services contracted for and permitted by applicable law related to the origination of a Mortgage
Loan; and (ii) all origination and discount points or other similar amounts described in the
Mortgage Loan Pricing for such Mortgage Loan.

          (b) MLCC may, from time to time, establish and set the amount of the origination fee to be
charged to the Customer as part of the Customer Fees and Charges, and PHH hereby agrees to charge,
or cause the closing agent to charge, each Customer such amount.

          (c) With respect to all Mortgage Loans, any non-third party fees charged to the Customer which
collectively exceed $[* * *] shall be collected by PHH and shall be remitted promptly to MLCC.
With respect to any Alternative Loan, any non-third party Customer Fees and Charges charged to a
Customer shall be collected by PHH and shall be remitted promptly to MLCC.

          (d) PHH will collect, control and manage all Customer Fees and Charges and any other
application fees, deposits and other fees paid by loan applicants to or for the credit of MLCC and
disburse Customer Fees and Charges in a timely and accurate manner to third-party service
providers, MLCC, or PHH, as applicable (e.g., good faith, deposit application fees).

          (e) The amount, payor and payee of any Customer Fees and Charges shall be described in the
Mortgage Loan Disclosures in accordance with the Mortgage Lending Laws, as defined herein. PHH
shall retain and distribute the Customer Fees and Charges to third parties or MLCC, as the case may
be, including settlement service providers, in accordance with applicable law and this Origination
Agreement. PHH covenants and agrees that the payment of Customer Fees and Charges to third parties
shall be made in a timely manner, in accordance with payment terms governing such relationships,
and any failure to do so shall be subject to the indemnity set forth in Section 32 herein.

          Section 14. [* * *]. (a) PHH shall, on behalf of MLCC, [* * *]

 

	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

20

 

          (b) The PHH Pricing shall be [* * *].

          (c) The PHH Pricing for Customers in the Telemarketing Origination Channel as described in
Section 5 shall, [* * *].

          (d) A breach or default by PHH of its covenants or performance obligations contained in this
Section 14 shall constitute a “material breach or default” for purposes of Section 22(a)(i).

          (e) PHH shall promptly inform MLCC in writing of any notices it receives with respect to any
lawsuits, governmental investigations and/or findings with respect to Mortgage Loans originated and
closed under the Program.

 

	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

21

 

          Section 15. Legal and Regulatory Compliance. a) The communications made and actions
taken or not taken by PHH when performing its obligations under this Origination Agreement shall
comply in all material respects with the requirements of all Applicable Requirements and all
applicable Mortgage Lending Laws. As used in this Origination Agreement, the term “Mortgage
Lending Law” means any federal, state or local constitution, statute, rule, regulation or
similar legal requirement applicable to the communication with, and marketing directed toward
customers; the application for Mortgage Loans; the Mortgage Pre-Approval Decision process described
herein; the processing of Mortgage Loan applications; the communication to the Customer of a
Mortgage Loan underwriting decision; and the closing and funding of a Mortgage Loan as well as the
preparation, execution and delivery of Mortgage Loan Documents and Mortgage Loan Disclosures. As
used in this Origination Agreement, the term “Mortgage Loan Documents” shall mean the
Mortgage Loan application form or other document of similar function, the note, mortgage, deed of
trust, security deed or other security instrument, rider, addendum and any other document executed
or delivered in connection with a Mortgage Loan. The term “Mortgage Loan Disclosure” shall
mean any disclosure, notice or other document that, according to a Mortgage Lending Law, is to be
provided to a Customer by or on behalf of MLCC in connection with a Mortgage Loan and an
application for a Mortgage Loan. Mortgage Lending Laws include, but are not limited to, the
following:

     (i) the record keeping and reporting requirements of the Home Mortgage Disclosure Act
(“HMDA”);

     (ii) The Real Estate Settlement Procedures Act and Regulation X (24 C.F.R. Part 3500);

     (iii) The Fair Housing Act;

     (iv) The Fair Credit Reporting Act;

     (v) The Flood Disaster Protection Act;

     (vi) The Truth-in-Lending Act and (Regulation Z);

     (vii) The National Housing Act;

     (viii) The Servicemen’s Readjustment Act;

     (ix) The Equal Credit Opportunity Act and (Regulation B);

     (x) Usury limitations; and

     (xi) The Homeowner’s Protection Act.

          (b) Notwithstanding the provisions of Section 13(a), PHH shall have no obligation under this
Origination Agreement with respect to a violation of a Mortgage Lending Law if such violation is
due to the failure of MLCC to perform one or more of its duties or obligations under this
Agreement.

          (c) Each party shall keep in full effect their respective existences, rights and franchises or
corporations in the states of their incorporation except as permitted herein, and will

22

 

obtain and preserve their respective qualifications to do business as foreign entities in each
jurisdiction in which such qualification is or shall be necessary to protect the validity and
enforceability of this Agreement or any of the Mortgage Loans and/or to perform their respective
duties under this Agreement.

          (d) PHH shall not make any HOEPA High Cost or Section 32 loans on behalf of MLCC under this
Program or otherwise engage in activities in performing Origination Services hereunder that would
be generally viewed by the mortgage industry to be “predatory.”

          (e) PHH shall promptly inform MLCC in writing of any notices it receives with respect to any
lawsuits, governmental investigations and/or findings with respect to Mortgage Loans originated and
closed under the Program.

          Section 16. Mortgage Loan Representations, Warranties and Covenants of PHH. Except
as otherwise provided in Section 15(b), PHH represents, warrants and covenants to MLCC, with
respect to each Mortgage Loan processed or closed by PHH under the terms of this Origination
Agreement, as of the date of the Mortgage Loan’s closing, that:

     (a) Each Mortgage Loan underwritten and approved by PHH for closing meets MLCC
Underwriting Guidelines and Mortgage Loan Pricing applicable to that Mortgage Loan Type in
all material respects.

     (b) The procedures used by PHH to receive and process applications and apply the MLCC
Underwriting Guidelines, as applicable, to such applications and close and fund Mortgage
Loans comply in all material respects with all Applicable Requirements, including but not
limited to the Mortgage Lending Laws, and the applicable rules and regulations under all
such laws.

          Section 17. Representations. Warranties and Covenants of PHH for Mortgage Loans.
PHH hereby represents and warrants to MLCC, as to each Mortgage Loan processed by PHH under this
Agreement (including those loans for which no closing occurs, to the extent applicable), and as of
each respective closing date or such other date as may be specified below, that:

     (a) With respect to those Mortgage Loans for which there is a requirement to deposit
funds into an escrow account for payment of taxes, assessments, insurance premiums and
similar items as they become due, there are no delinquent taxes, ground rents, water
charges, sewer rents, assessments or other outstanding charges which constitute a lien on
the related Mortgaged Property. No escrow deposits or escrow payments or other charges or
payments due have been capitalized under the related Mortgage or Mortgage Note;

     (b) The terms of the Mortgage Note and the Mortgage have not been impaired, waived,
altered or modified in any respect, except by written instruments contained in the Mortgage
File, approved, if necessary, by any insurer under any primary insurance policy and recorded
in all places necessary to maintain the first priority of the lien;

     (c) All buildings upon the Mortgaged Property are required to be insured by a generally
acceptable insurer against loss by fire, hazards of extended coverage and such

23

 

other hazards as are customarily included in extended coverage in the area where the
Mortgaged Property is located, pursuant to standard hazard insurance policies in an amount
which is equal to the lesser of (A) the replacement cost of the improvements securing such
Mortgage Loan or (B) the principal balance owing on such Mortgage Loan. To the best
knowledge of PHH, all such standard hazard policies are in effect. On the date of
origination, such standard hazard policies contained a standard mortgagee clause naming MLCC
or the originator of the Mortgage Loan and their respective successors in interest as
mortgagee and, to the best knowledge of PHH, such clause is still in effect and, to the best
of PHH’s knowledge, all premiums due thereon have been paid. If the Mortgaged Property is
located in an area identified by the Federal Emergency Management Agency as having special
flood hazards under the National Flood Insurance Act of 1994, as amended, such Mortgaged
Property is covered by flood insurance in the amount required under the National Flood
Insurance Act of 1994. The Mortgage obligates the Mortgagor thereunder to maintain all such
insurance at Mortgagor’s cost and expense, and on the Mortgagor’s failure to do so,
authorizes the holder of the Mortgage to maintain such insurance at Mortgagor’s cost and
expense and to seek reimbursement therefor from the Mortgagor;

     (d) At the time of origination of such Mortgage Loan and thereafter, all Applicable
Requirements have been complied with in all material respects, including, without
limitation, usury, truth-in-lending, real estate settlement procedures, consumer credit
protection, equal credit opportunity or disclosure laws required to be complied with by the
originator of the Mortgage Loan and applicable to the Mortgage Loan;

     (e) Ownership of the Mortgaged Property is held in fee simple or a leasehold estate.
With respect to Mortgage Loans that are secured by a leasehold estate, (i) the lease is
valid, in full force and effect, and conforms to all of FNMA’s requirements for leasehold
estates; (ii) all rents and other payments due under the lease have been paid; (iii) the
lessee is not in default under any provision of the lease; (iv) the term of the lease
exceeds the maturity date of the related Mortgage Loan by at least five (5) years; and (v)
the terms of the lease provide a Mortgagee with an opportunity to cure any defaults. Except
as permitted by the fourth sentence of this paragraph, the Mortgage is a valid, subsisting
and enforceable first lien on the Mortgaged Property, including all buildings on the
Mortgaged Property and all installations and mechanical, electrical, plumbing, heating and
air conditioning systems affixed to such buildings, and all additions, alterations and
replacements made at any time with respect to the foregoing securing the Mortgage Note’s
original principal balance. The Mortgage and the Mortgage Note do not contain any evidence
on their face of any security interest or other interest or right thereto. Such lien is
free and clear of all adverse claims, liens and encumbrances having priority over the first
lien of the Mortgage 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 which are
acceptable to mortgage lending institutions generally, or which are specifically referred to
in the lender’s title insurance policy delivered to the originator of the Mortgage Loan and
either (A) which are referred to or otherwise considered in the appraisal made for the
originator of the Mortgage Loan, or (B) which do not in the aggregate adversely affect the
appraised value of the Mortgaged Property as set forth in such appraisal, and (3) other
matters to which like properties are commonly subject which do not in the aggregate

24

 

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 Mortgage Loan establishes and creates a valid, subsisting and
enforceable first lien and first priority security interest on the property described
therein. With respect to each Cooperative Loan, the security instruments create a valid,
enforceable and subsisting first priority security interest in the Cooperative Apartment
securing the related Mortgage Note subject to only to (a) the lien of the related
cooperative for unpaid assessments representing the Mortgagor’s pro rata share of payments
for a blanket mortgage, if any, current and future real property taxes, insurance premiums,
maintenance fees and other assessments to which like collateral is commonly subject. and
(b) other matters to which the collateral is commonly subject which do not materially
interfere with the benefits of the security intended to be provided; provided,
however, that the related proprietary lease for the Cooperative Apartment may be
subordinated or otherwise subject to the lien of a Mortgage on the cooperative building;

     (f) The Mortgage Note is not subject to a third-party’s security interest or other
rights or interest therein;

     (g) The Mortgage Note and the related Mortgage are genuine and each is the legal, valid
and binding obligation of the maker thereof, enforceable in accordance with its terms
subject to bankruptcy, insolvency and other laws of general application affecting the rights
of creditors. All parties to the Mortgage Note and the Mortgage had the legal capacity to
enter into the Mortgage Loan and to execute and deliver the Mortgage Note and the Mortgage.
The Mortgage Note and the Mortgage have been duly and properly executed by such parties. An
obligor of the debt evidenced by the Mortgage Note is a natural person;

     (h) Each Mortgage Loan is covered by an ALTA lender’s title insurance policy on other
generally acceptable form of policy of insurance acceptable to FNMA or FHLMC, issued by a
title insurer acceptable to FNMA or FHLMC and qualified to do business in the jurisdiction
where the Mortgaged Property is located, insuring MLCC, its successors and assigns, as to
the first priority lien of the Mortgage in the original principal amount of the Mortgage
Loan;

     (i) To the best of PHH’s knowledge, there are no mechanics’ or similar liens or claims
which have been filed for work, labor or material (and, to the best of PHH’s knowledge, no
rights are outstanding that under law could give rise to such lien) affecting the related
Mortgaged Property which are or may be liens prior to, or equal or coordinate with, the lien
of the related Mortgage;

     (j) To the best of PHH’s knowledge, all improvements subject to the Mortgage, lay
wholly within the boundaries and building restriction lines of the Mortgaged Property (and
wholly within the project with respect to a condominium unit) and no improvements on
adjoining properties encroach upon the Mortgaged Property except those which are insured
against by the title insurance policy referred to above and all improvements on the property
comply with all applicable zoning and subdivision laws and ordinances and building laws and
ordinances;

25

 

     (k) Each Mortgage Loan was originated by PHH on behalf of MLCC. Each Mortgage Loan was
underwritten in accordance with the MLCC Underwriting Guidelines as in effect at the time of
origination. The Mortgage contains the usual and customary provision of PHH at the time of
origination for the acceleration of the payment of the unpaid principal balance of the
Mortgage Loan if the related Mortgaged Property is sold or encumbered without the prior
consent of the mortgagee thereunder;

     (l) The Mortgaged Property at origination was and, to the best of PHH’s knowledge,
currently is free of material damage and waste and at origination there was, and to the best
of PHH’s knowledge there currently is, no proceeding pending for the total or partial
condemnation thereof;

     (m) The related 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, (1) in
the case of a Mortgage designated as a deed of trust, by trustee’s sale or judicial
foreclosure, and (2) otherwise by judicial foreclosure. PHH has no knowledge of any
homestead or other exemption available to the Mortgagor which would interfere with the right
to sell the Mortgaged Property at a trustee’s sale or the right to foreclose the Mortgage;

     (n) If the Mortgage constitutes a deed of trust, a trustee, duly qualified if required
under applicable law to act 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 to the
trustee under the deed of trust, except in connection with a trustee’s sale or attempted
sale after default by the Mortgagor;

     (o) With respect to each Mortgage Loan, there is an appraisal on a FNMA-approved form
(or a narrative residential appraisal) of the related Mortgaged Property that conforms to
the applicable requirements of the Financial Institutions Reform Recovery and Enforcement
Act and that was signed prior to the approval of such Mortgage Loan application by a
qualified appraiser, appointed by PHH as the originator of such Mortgage Loan, and the
appraiser has 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 such Mortgage Loan;

     (p) The Mortgaged Property is a single-family (one- to four-unit) dwelling residence
erected thereon, or an individual condominium unit in a condominium, or a Co-operative
Apartment or an individual unit in a planned unit development or in a de minimis planned
unit development as defined by FNMA. No such property is commercial property, is a mobile
home or a manufactured dwelling which is not permanently attached to the land;

     (q) Except as set forth on the Loan Purchase Schedule no Mortgage loan provides for
negative amortization;

     (r) No Mortgage Loan had an original term in excess of thirty (30) years;

26

 

     (s) PHH has in full force and effect an errors and omissions policy or policies and a
blanket bond satisfactory to FNMA and FHLMC. MLCC shall have the right to obtain a copy of
such policies or blanket bond at any time and be named as an additional insured if MLCC
deems appropriate and necessary; and

     (t) If a Mortgage Loan originated pursuant to this Agreement is subsequently purchased
by PHH, PHH shall not be deemed to have made any of the representations contained in this
Section 17 with respect to such Mortgage Loan.

          The representations and warranties set forth above shall survive the transfer of the Mortgage
Loans and the delivery of the Mortgage Files as to between MLCC and PHH, notwithstanding any
restrictive or qualified endorsement on any Mortgage Note or Assignment or the examination of any
Mortgage File. Upon discovery by either PHH or MLCC of a breach of any of the foregoing
representations and warranties that materially and adversely affects the interests of MLCC in any
Mortgage Loan, the party discovering such breach shall give prompt written notice to the other.
PHH shall have a period of ninety (90) days from its discovery or its receipt of notice of any such
breach within which to correct or cure such breach. If any such breach cannot be corrected or
cured within such ninety-day period, PHH shall, at MLCC’s option, promptly purchase any such
Mortgage Loan from MLCC for an amount equal to the unpaid principal balance of such Mortgage Loan
on the date of purchase, plus any accrued and unpaid interest and applicable fees which shall have
been collected by PHH from a Customer as of the date of repurchase.

          Section 18. Mortgage Loan Representations and Warranties of MLCC. MLCC, on behalf of
itself and MLCC Affiliates, represents and warrants to PHH, with respect to each Mortgage Loan,
that:

     (a) To the best of MLCC’s knowledge, information and belief, all information provided
by MLCC to PHH pursuant to this Agreement is true and accurate, in all material respects.

     (b) MLCC has complied in all material respects with the Mortgage Lending Laws
applicable to its obligations under this Agreement.

     (c) MLCC Underwriting Guidelines comply with the Mortgage Lending Laws in all material
respects.

          Section 19. General Representations, Warranties and Covenants of PHH. PHH represents
and warrants and covenants to MLCC, as of the Effective Date and throughout the term of this
Origination Agreement, that:

     (a) PHH is a corporation, duly organized and validly existing under the laws of the
State of New Jersey.

     (b) To the best of PHH’s knowledge, information and belief, all information provided by
PHH to MLCC pursuant to this Agreement is true and accurate, in all material respects.

     (c) PHH has the corporate power and authority to enter into and perform this
Origination Agreement and the transactions contemplated hereby. The Origination

27

 

Agreement has been duly authorized by all necessary corporate action of PHH. This
Origination Agreement constitutes the legal, valid, and binding obligation of PHH
enforceable in accordance with its terms, except as such enforceability may be subject to:
(i) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or
hereafter in effect relating to creditors’ rights generally; and (ii) general principles of
equity (regardless of whether such enforcement is sought in equity or at law).

     (d) PHH has all federal, state, and local governmental authorizations, approvals or
licenses necessary for it to own or lease its properties and assets and to carry on its
business as it is now being conducted and as contemplated by this Agreement or as it is
proposed to be conducted, including but not limited to: (i) being duly qualified to
transact business in each jurisdiction in which such qualification is required; (ii) being
duly licensed and in good standing to originate, process, underwrite and close Mortgage
Loans in each state in which such license is required; (iii) being duly licensed and in good
standing to originate, process, underwrite and close Mortgage Loans insured or guaranteed by
the Federal Housing Administration and the U.S. Department of Veterans Affairs; and (iv)
being duly approved and in good standing as a seller/servicer of Mortgage Loans by FNMA and
FHLMC and as an issuer by the Government National Mortgage Association.

     (e) The performance of this Origination Agreement by PHH shall not violate or conflict
with PHH’s Articles of Incorporation or by-laws or any material contracts or other
instruments to which it is a party or by which it is bound.

     (f) No action, suit or proceeding is pending, or, to PHH’s knowledge, threatened,
against PHH that would prevent PHH from consummating the transactions contemplated by this
Origination Agreement.

     (g) PHH shall perform its obligations under this Origination Agreement in accordance
with prudent mortgage loan origination practices, the Mortgage Lending Laws and any other
Applicable Requirements, and generally as if the Mortgage Loans were originated, processed,
underwritten and closed in the name and for the benefit of PHH rather than MLCC.

     (h) PHH agrees to use commercially reasonable efforts to do all acts and things that
MLCC may reasonably request for the purpose of complying with any requests related to (i)
the imposition of new or modified requirements by any regulatory agency with supervisory
authority over MLCC, (ii) the need to address criticisms or suggestions made by any
regulatory agency in the course of an examination of MLCC, and (iii) the need to modify
existing procedures to address technological changes or improvements in the provision of
services covered by this Agreement. PHH shall be reimbursed by MLCC for any documented,
material, incremental costs it incurs in complying with clause (iii) of the preceding
sentence.

          Section 20. General Representations, Warranties and Covenants of MLCC. MLCC
represents and warrants to PHH, as of the Effective Date and throughout the term of this
Origination Agreement, that:

     (a) As of the Effective Date, MLCC is a corporation, duly organized and validly
existing under the laws of Delaware.

28

 

     (b) MLCC has the power and authority to enter into and perform this Origination
Agreement and the transactions contemplated hereby. The Origination Agreement has been duly
authorized by all necessary action of MLCC. This Origination Agreement constitutes the
legal, valid, and binding obligation of MLCC enforceable in accordance with its terms,
except as such enforceability may be subject to: (i) bankruptcy, insolvency,
reorganization, moratorium or other similar laws now or hereafter in effect relating to
creditors’ rights generally; and (ii) general principles of equity (regardless of whether
such enforcement is sought in equity or at law).

     (c) At the time it commences its business activities in any location or for a
particular category of loan, MLCC will have all federal, state, and local governmental
authorizations, approvals or licenses necessary for it to own or lease its properties and
assets and to carry on its business as it is proposed to be conducted, including but not
limited to: (i) being duly qualified to transact business in each jurisdiction in which
such qualification is required for MLCC; and (ii) being duly licensed and in good standing
to originate Mortgage Loans in each state in which such license is required for MLCC.

     (d) The performance of this Origination Agreement by MLCC shall not violate MLCC’s
organizational documents or any material contracts or other instruments to which it is a
party or by which it is bound.

     (e) No action, suit or proceeding is pending, or, to MLCC’s knowledge, threatened,
against MLCC that would prevent MLCC from consummating the transactions contemplated by this
Origination Agreement.

     (f) The performance by MLCC of its obligations under this Origination Agreement in
connection with the origination of Mortgage Loans shall not violate in any material respect
the Mortgage Lending Laws.

          Section 20A. Mutual Representations. Each Party hereby represents and warrants to
the other Party as follows:

     (a) Kickbacks. No employee, agent or representative of the other Party has
been offered, shall be offered, has received, or shall receive, directly or indirectly, from
such Party, any gratuities, merchandise, cash, services benefit, fee, commission, dividend,
gift, or other inducements or consideration of any kind in connection with this Agreement.

     (b) Government Officials. No person employed by such Party in connection with
the performance of its obligations under this Agreement is an official of the government of
any foreign country, or of any agency thereof, and no part of any moneys or consideration
paid to such Party hereunder shall accrue for the benefit of any such official.

     (c) No Relation. No individual who will receive specific compensation from
such Party as a result of the execution of this Agreement is related to any public official
or official of any issuer of municipal securities. For purposes of this Section, the term
“official of an issuer of municipal securities” means any person who is an incumbent,
candidate or successful candidate (a) for elective office of any issuer which office is
directly or indirectly responsible for, or can influence the outcome of, the hiring of a

29

 

broker, dealer or municipal securities dealer for municipal securities business by such
issuer, or (b) for any elective office of a state or of any political subdivision, which
office has authority to appoint any official(s) of such issuer. The term “related” applies
when a person is related by blood or marriage.

          Section 21. Records Preservation, Retention, and Reporting. (a) PHH acknowledges
and agrees that the Mortgage Loan Documents and all other documents evidencing, underlying or
relating to the Mortgage Loans are the property of MLCC, and that until such time that MLCC sells
such Mortgage Loans to PHH or others, PHH shall, as custodian thereof, hold and keep any such
Mortgage Loan documents and other related documents in the manner described in paragraph (b) below.
As to Alternative Loans, PHH shall provide MLCC or its documents custodian with the originals of
all Mortgage Loan Documents within the possession or control of PHH within five (5) Business Days
of receipt thereof. MLCC’s rights under this paragraph shall survive any subsequent sale of any
Mortgage Loan to PHH.

          (b) To the extent PHH does not tender the original Mortgage Loan documents to MLCC, PHH shall
hold and be responsible for Mortgage Loan documents within a secure and controlled environment.
PHH will protect such Mortgage Loan documents from destruction or loss and from the unauthorized or
illegal divulgence of confidential information and any information relating to the Mortgage Loan or
the Customer. Upon reasonable request therefor, the Mortgage Loan documents will be readily
available at all times after the Effective Date for use and examination by MLCC or its authorized
agents (including outside accountants) or any regulatory authority for any reason whatsoever,
including, with limitation, use and examination in connection with complying with any federal,
state or local law or regulation or in the performance of internal auditing. PHH may perform its
obligations under this subsection (b) through an agent selected by PHH; the use of an agent in this
manner, however, shall not relieve PHH from responsibility for any of said obligations.

          (c) PHH shall, at its own cost and expense, maintain all records and Mortgage Loan documents
in accordance with all Applicable Requirements, and such reasonable additional requirements as MLCC
may provide to PHH. PHH shall permit MLCC to have access to such records in a manner that enables
MLCC, at its expense, to comply with all record keeping requirements of the Mortgage Lending Laws
and any other law applicable to MLCC.

          (d) PHH shall be solely responsible for the preparation, periodic testing, review and
implementation of disaster recovery, emergency preparedness and business resumption plans, and the
expenses associated therewith. MLCC shall retain the right to review the disaster recovery,
emergency preparedness and business resumption plans, and make reasonable recommendations
consistent with those required by its regulators, and PHH shall take commercially reasonable
efforts to implement such recommendations.

          Section 22. Term: Termination. This Origination Agreement shall automatically
expire and terminate upon the earlier of (i) December 31, 2010 (the “Initial Termination
Date”) and (ii) the date upon which the Loan Purchase and Sale Agreement, dated as of the date
hereof, between the parties hereto, is terminated in accordance with the terms thereof. So long as
neither a PHH Performance Failure nor an MLCC Performance Failure shall have occurred, this
Agreement shall be automatically extended, subject to the following sentence, without any action by
the parties hereto for one (1) additional five (5) year term from and after the Initial Termination
Date (the “Extension Term”). 
[ * * *]

 

	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

30

 

  For the avoidance of doubt, if either a PHH Performance Failure or an MLCC Performance
Failure shall have occurred, there shall be no extension of this Agreement, unless, at least six
months prior to the Initial Termination Date, either MLCC or PHH shall have sent a written notice
to the other party stating that notwithstanding the PHH Performance Failure or the MLCC Performance
Failure, as the case may be, such party is willing to extend this Agreement for the Extension Term.
Notwithstanding the foregoing, in the event that (A) a Party shall materially breach any of its
representations, warranties or covenants or shall materially default in the performance of any of
its duties or obligations hereunder, and such breach or default shall not be substantially cured
within sixty (60) days after written notice specifying the breach or default has been given by the
non-breaching or non-defaulting Party, such non-breaching or non-defaulting Party may, by giving
written notice thereof to the breaching or defaulting Party, terminate this Agreement for cause as
of a future date specified in such notice of termination; (B) an insolvency, bankruptcy or similar
proceeding shall have been commenced, or a decree or order of an appropriate court, agency or
supervisory authority for the appointment of a conservator, receiver or liquidator shall have been
entered against the other Party (the “Bankrupt Party”), then the other Party may, by giving
written notice thereof to the Bankrupt Party, terminate this Agreement for cause as of a future
date specified in such notice of termination; (C) PHH’s good standing with HUD or both Fannie Mae
and Freddie Mac shall have been revoked for cause (it being understood that PHH may choose to cease
doing business with one but not both of Fannie Mae or Freddie Mac) and PHH fails to have such good
standing reinstated within thirty (30) days, then MLCC may, by giving notice thereof to PHH,
terminate this Agreement for cause as of a future date specified in such notice of termination; or
(D) a PHH Competitor Change of Control shall have occurred, then at any time after MLCC shall have
received notice of such PHH Competitor Change of Control, MLCC may, by giving written notice
thereof to PHH, terminate this Agreement as of a future date specified in such notice of
termination; or (E) a PHH Change of Control (other than a PHH Competitor Change of Control) shall
have occurred, then at any time within 30 days after the two year anniversary of such PHH Change of
Control, MLCC may, by giving written notice thereof to PHH, terminate this Agreement as of a future
date specified in such notice of termination; or (F) PHH shall have materially breached any of its
representations, warranties or covenants contained in the Trademark Use Agreement and such breach
shall not have been cured within the time frame prescribed therein, then MLCC may, by giving
written notice thereof to PHH, terminate this Agreement for cause as of a future date specified in
such notice of termination. The representations, warranties and covenants of the Parties made
herein and the respective obligations of each Party hereunder to indemnify and hold harmless the
other Party shall survive the termination of the Origination Agreement. Termination of the
Origination Agreement in accordance with these provisions shall have no effect on Mortgage Loan
applications in process at the time of such termination, which applications shall be processed to
closing or denial.

          Section 22A. Termination Assistance. (a) Termination Assistance Services. Upon
expiration or termination of all or part of the MLCC Services for any reason, PHH shall for a
period of one (1) year (the “Termination Assistance Period”), upon MLCC’s request and at
MLCC’s expense, continue to provide the MLCC Services that were provided prior thereto
(“Termination Assistance Services”). In providing Termination Assistance Services, PHH
shall provide such reasonable cooperation and technical assistance to MLCC, or to a third-party
service

31

 

provider designated by MLCC, as required to facilitate the transfer of the affected MLCC Services
to MLCC or such third-party service provider. The rights of MLCC under this Section shall be
without prejudice to the Parties’ rights to pursue legal remedies for breach of this Agreement,
either for breaches prior to termination or during the period this Agreement is continued in force
post-termination. Termination Assistance Services shall be provided for the same fees as prior to
termination, and PHH shall use commercially reasonable efforts to perform the MLCC Services at the
same service levels as prior to termination. MLCC hereby agrees to continue to provide the
services or meet its obligations contemplated to be provided by it under the Agreement during the
Termination Assistance Period in order to assist PHH in complying with this Section 22A(a).

          (b) Development of Transition Plan. If and to the extent requested by MLCC, whether
prior to, upon, or following any termination of this Agreement, PHH shall reasonably assist MLCC in
developing a plan which shall specify the tasks to be performed by the Parties in connection with
the Termination Assistance Services and the schedule for the performance of such tasks. The
transition plan shall include descriptions of the MLCC Services, service levels, fees,
documentation and access requirements that will promote an orderly transition of the MLCC Services.

          (c) Post-Termination Assistance. For a period of six (6) months following the
Termination Assistance Period, PHH shall: (i) answer all reasonable and pertinent verbal or
written questions from MLCC regarding the MLCC Services on an “as needed” basis; and (ii) deliver
to MLCC any remaining MLCC-owned reports and documentation still in PHH’s possession.

          Section 23. Cooperation. The Parties acknowledge that the success of their efforts
under this Origination Agreement depends on the cooperation of each of them. Accordingly, each of
the Parties shall use its best efforts and confer in good faith in an attempt to agree upon any
matter hereunder which requires such agreement, to implement the Mortgage Loan origination program
contemplated by this Agreement, and to any and all improvements, modifications or enhancements of
the internal systems of either Party hereto, all as soon as possible.

          Section 24. No Partnership. This Origination Agreement is intended to be, and shall
be construed to be, the formation of an independent contractor relationship and not a partnership
or joint venture between the Parties.

          Section 25. Notices. Any notice under this Origination Agreement shall be in
writing. Any notice to be given or document to be delivered to a Party pursuant to this
Origination Agreement shall be effective when either received in person or by certified mail,
postage prepaid, addressed to the Party at the following address, or as the Party may subsequently
designate:

32

 

MLCC:

Merrill Lynch Credit Corporation

4802 Deer Lake Drive East

Jacksonville, FL 32246-6484

Attention: President

Facsimile:

with a copy to:

Merrill Lynch Credit Corporation

4802 Deer Lake Drive East

Jacksonville, FL 32246-6484

Attention: General Counsel

Facsimile: (904) 218-8848

PHH:

Cendant Mortgage Corporation

3000 Leadenhall Road

Mt. Laurel, NJ 08054

Attention: Robert C. Andwood

                Mail Stop CS

Facsimile: 856-917-6702

with a copy to:

General Counsel’s Office

Cendant Mortgage Corporation

3000 Leadenhall Road

Mt. Laurel, NJ 08054

Attention: William F. Brown

                 Mail Stop LGL

Facsimile: 856-917-9422

          Any notice sent by registered, certified or overnight mail or facsimile shall be deemed
received on the actual date of delivery of the notice to the address of the Party as evidenced by
the registered or certified mail return or facsimile received receipt or indication.

          Section 26. Modification of Origination Agreement. Only an instrument in writing
signed by the Parties may modify this Origination Agreement or any Exhibits hereto.

          Section 27. Miscellaneous. (a) Governing Law. This Agreement shall be
governed by, and construed in accordance with, the laws of the State of New York.

          (b) Lawful Conduct; Severability; Release. The Parties hereto shall not perform, or
be expected to perform, any act hereunder that is, or reasonably believed to be, in violation of
any applicable state or federal rule or regulation. If any provision of this Agreement is now or
later in violation of any local, state or federal law, then such provision shall be considered null
and void for purposes of this Agreement with all other provisions remaining in full force and
effect. Each party expressly releases the other from any liability in the event either of said
Parties
 

33

 

cannot fulfill any obligation hereunder due to any prohibition under local, state or federal laws
pertaining to such obligation.

          Section 28. Expenses. Except as otherwise specified in this Agreement, all costs,
fees and expenses incurred in connection with the performance of any and all obligations pursuant
to this Agreement shall be paid by the party incurring such costs, fees and expenses.

          Section 29. Confidentiality and No Personal Solicitation. (a) Each party understands
that certain information which it has been furnished and will be furnished in connection with this
Agreement, including, but not limited to information concerning business procedures or prices,
policies or plans of the other party or any of its Affiliates, is confidential and proprietary, and
each party agrees that it will maintain the confidentiality of such information and will not
disclose it to others or use it except in connection with the proposed transactions contemplated by
this Agreement, without the prior written consent of the party furnishing such information.
Information which is generally known in the industry concerning a party or among such party’s
creditors generally or which has been disclosed to the other party by third parties who have a
right to do so shall not be deemed confidential or proprietary information for these purposes. If
PHH, any of its Affiliates or any officer, director, employee or agent of any of the foregoing is
at any time requested or required to disclose any information supplied to it by or on behalf of
MLCC in connection with the transactions contemplated hereby, PHH agrees to provide MLCC with
prompt notice of such request(s) so that MLCC may seek an appropriate protective order and/or waive
PHH’s compliance with the terms of this Section. If MLCC, any of its Affiliates or any officer,
director, employee or agent of any of the foregoing is at any time requested or required to
disclose any information supplied to it by or on behalf of MLCC in connection with the transactions
contemplated hereby, MLCC agrees to provide PHH with prompt notice of such request(s) so that PHH
may seek an appropriate protective order and/or waive MLCC’s compliance with the terms of this
Section. Notwithstanding the terms of this Section, if, in the absence of a protective order or
the receipt of a waiver hereunder, PHH or MLCC is nonetheless, in the opinion of its counsel,
compelled to disclose information concerning the other party to any tribunal or else stand liable
for contempt or suffer other censure or penalty, PHH or MLCC may disclose such information to such
tribunal without liability hereunder. Upon termination of this Agreement, each party agrees to
promptly return to the other all confidential materials, and all copies thereof, which have been
furnished to it in connection with the transactions contemplated hereby.

          (b) Data, Privacy and Security. (1) The parties hereby acknowledge and agree that:
(A) MLCC is the exclusive owner of all right, title and interest in and to the MLCC Data; (B) MLCC
Data is and shall remain confidential and proprietary information of MLCC; (C) PHH is the exclusive
owner of all right, title and interest in and to the PHH Data; and (D) PHH Data is and shall remain
confidential and proprietary information of PHH, subject to the Privacy Requirements. With respect
to any MLCC Data provided by MLCC to PHH hereunder, except to the extent expressly permitted
hereunder, subject to this Section 29, or by prior written permission of MLCC, PHH shall not
prepare any derivative work of the MLCC Data or any portion thereof, or sublicense, transfer,
assign, rent, lease or otherwise convey the MLCC Data or any portion thereof, or any right with
respect thereto, to any third party. All right, title and interest in all MLCC Data made by or on
behalf of PHH, together with all intellectual property rights therein, shall be owned exclusively
by MLCC. PHH hereby assigns to MLCC all right, title, and interest in such MLCC Data and the
intellectual property rights therein. PHH shall, at request of MLCC,

34

 

perform any acts that MLCC may reasonably deem necessary or desirable to evidence or confirm MLCC’s
ownership interest in such MLCC Data and the intellectual property rights therein, including but
not limited to making further written assignments in a form determined by MLCC.

          (2) In connection with the performance of the Origination Services hereunder, PHH shall comply
with the Privacy Requirements, subject to (i) the mandatory compliance date of such Privacy
Requirements and (ii) the applicability of such Privacy Requirements to PHH as the result of PHH’s
provision of the Origination Services under this Agreement. The foregoing obligation to comply
with the Privacy Requirements may include the following: (A) PHH shall not disclose any Borrower
Information to any person or entity, other than to the extent necessary to carry out PHH’s express
obligations under the Agreement, and for no other purpose. PHH shall ensure that each person or
entity to whom or to which PHH intends to disclose Borrower Information shall, prior to any such
disclosure of information, agree to: (i) keep confidential any such Borrower Information and (ii)
use or disclose such Borrower Information only to the extent necessary to carry out PHH’s express
obligations under this Agreement; (B) PHH shall not use Borrower Information for any purpose,
including but not limited to the marketing of products or services to, or the solicitation of
business from the Borrowers. PHH may use the Borrower Information to the extent necessary to carry
out PHH’s express obligations under the Agreement. PHH may also use the Borrower Information as
expressly permitted by MLCC in writing, to the extent that such express permission is in accordance
with the Privacy Requirements; (C) PHH shall assess, manage, and control risks relating to the
security and confidentiality of Borrower Information, shall implement the standards relating to
such risks in the manner set forth in the FFIEC Interagency Guidelines Establishing Standards for
Safeguarding Borrower Information set forth in 12 CFR Parts 30, 208, et al, and shall maintain at
all times an Information Security Program; (D) without limiting the scope of the above, PHH shall
use at least the same physical and other security measures to protect all Borrower Information in
PHH’s possession or control, as PHH uses for its own confidential and proprietary information; (E)
If MLCC provides an Account Number to PHH to enable the parties to carry out the purposes of this
Agreement, PHH shall use such Account Number only for such specific purpose and for no other
purpose. To the extent that the obligations under (A) through (E), inclusive, in the immediately
preceding sentence are not required by the Privacy Requirements, PHH shall perform same upon MLCC’s
request at MLCC’s sole cost and expense. Notwithstanding the foregoing, MLCC acknowledges that PHH
shall acquire the “customer” relationship with the Borrower and be entitled to use the Borrower
Information when it acquires for its own account the servicing rights pertaining to any Mortgage
Loan as to which PHH provides origination services hereunder; provided, however, that PHH shall
include in its Privacy Statement that it furnishes to Borrowers a disclosure that it intends to
continue to disclose Borrower Information to MLCC and its Affiliates.

          (b) Without MLCC’s prior written consent, which may be withheld by MLCC in its sole
discretion, neither PHH nor any Affiliate shall solicit any Mortgagor, or cause any Mortgagor to be
solicited, for subordinate financing of any Mortgage Loan (other than subordinate financing
arranged under the Equity Access program and settlement services connected with the Mortgage Loan)
or any product or service whatsoever, including, without limitation, any investment or financial
services or products, insurance products or services and brokerage account services. PHH (but not
any of its Affiliates) may solicit Mortgagors for prepayment of the related Mortgage Loans, but
only if (i) PHH has obtained MLCC’s prior written consent, which will not be unreasonably withheld,
(ii) such solicitation is made in compliance with the Applicable Requirements and (iii) upon
obtaining any positive responses to

35

 

such solicitation, PHH processes and closes the related Mortgage Loans pursuant to this Origination
Agreement. Neither MLCC nor any of its Affiliates shall be prohibited from soliciting any
Mortgagor or causing any Mortgagor to be solicited for any product or service now offered (or
hereafter offered) by MLCC or any Affiliate of MLCC other than for prepayment of any Mortgage Loan.
PHH shall not prepare or disseminate, for compensation or otherwise, any mailing lists relating to
the Mortgagors, the Mortgage Loans, the Servicing Rights (as such term is defined in the applicable
Servicing Agreement): or otherwise, including any lists of Mortgagors, without MLCC’s prior
written consent, which may be withheld by MLCC in its sole discretion. The parties hereto
nevertheless agree that (i) either PHH, MLCC or their respective Affiliates may from time to time
undertake promotions that are directed to either their own general customer base or to the general
public at large and that do not target Mortgagors directly, including, without limitation,
newspaper, radio and television advertisements and mass mailing or telephone solicitations and that
(ii) offers by PHH, MLCC or their respective Affiliates to refinance Mortgage Loans in response to,
or as a result of, contact initiated by the related Mortgagors or their representatives shall not
constitute solicitation.

          Section 30. Further Assurances. The Parties agree that each will, from time to time,
execute, acknowledge, and deliver, or cause to be executed, acknowledged, and delivered, such
amendments and supplements hereto and such further instruments as may be reasonably required or
appropriate to further express the intention of the Parties, or to facilitate the performance of
this Origination Agreement.

          Section 31. Contingency Plan. PHH represents and warrants that it has in place a
contingency plan that will enable it to (i) perform its loan closing obligations with one (1)
Business Day, and (ii) perform all its other obligations under this Agreement and the Loan Purchase
and Sale Agreement in all material respects, at another location within [* * *], in the event its
primary location is rendered inoperative as a result of a natural or other disaster or emergency,
and once PHH relocates to its backup site, it shall make arrangements to connect MLCC to PHH’s
backup EDP and provide continued service as stated in this Agreement, provided that PHH has granted
MLCC access to its primary EDP. PHH covenants and agrees to (i) test such contingency plan at
least once annually and provide the results of such test to MLCC, and (ii) provide MLCC with copies
of its operating procedures in the event that such contingency plan is put into effect. If MLCC
determines in its reasonable discretion, that such contingency plan is inadequate, MLCC shall have
the right to make reasonable recommendations consistent with those required by its regulators, and
PHH shall take commercially reasonable efforts to implement such recommendations.

          Section 32. Indemnification. Except as otherwise provided by the terms of this
Agreement, each Party hereto (each, an “Indemnitor”) agrees to indemnify, defend and hold
harmless the other Party and the respective officers, directors, employees, agents, attorneys,
members and shareholders of each of the foregoing (collectively called the “Indemnitees”)
from and against any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, claims, costs, expenses and disbursements of any kind or nature whatsoever
(including without limitation reasonable attorneys’ fees and disbursements in connection with any
investigative, administrative or judicial proceeding) (“Losses”) imposed on, incurred by or
asserted against such Indemnitees, whether brought under common law or in equity, or in contract,
tort or otherwise, caused by, arising from or connected with (i) any misrepresentation or the
breach in any material respect by the Indemnitor of any term, condition, representation,

 

	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

36

 

obligation or warranty of the Indemnitor set forth in this Agreement or in any schedule,
exhibit, or certificate furnished by the Indemnifying Party pursuant to this Agreement; or (ii) the
negligence or willful misconduct of the Indemnitor.

          Notwithstanding the prior paragraph, before either Party shall be entitled to indemnification
as provided in this Section the Party claiming indemnification shall give notice to the other Party
(the “Indemnitor”) of the claimed breach, negligence or willful misconduct and the
Indemnitor shall have sixty (60) days to cure such breach, negligence or willful misconduct, which
period of time shall be allowed before any attempt to enforce rights to indemnification hereunder.
Notwithstanding anything to the contrary contained in this Agreement, such 60-day cure period shall
be in lieu of and not in addition to any other cure period provided under any other provision in
this Agreement. Cure of the breach, negligence or willful misconduct within the 60-day cure period
shall not relieve the Indemnitor from its obligations to indemnify the Indemnitees for the Losses
suffered by the Indemnitees on account of the breach, negligence or willful misconduct of the
Indemnitor.

          Section 33. MLBUSA Loans. With respect to Equity Access Loans only, PHH hereby
acknowledges and agrees, for the benefit of MLCC, that, with respect to the Origination Services to
be performed hereunder which relate to such Mortgage Loans closed in the states of Washington, Ohio
and Arkansas, PHH shall use its best efforts to negotiate and enter into, on commercially
reasonable terms, either (i) a separate origination agreement between PHH and MLBUSA or (ii) an
assignment and assumption agreement executed and delivered by PHH, in form and substance reasonably
acceptable to MLCC, with respect to the existing MLCC/MLBUSA loan processing agreement. MLCC
agrees to assist and cooperate with PHH in entering into either of such agreements with MLBUSA.

          Section 34. Section Headings. The headings of the various sections of this
Origination Agreement have been inserted for convenience of reference only and shall not be deemed
to be a part of this Origination Agreement.

          Section 35. No Assignment. The Parties shall not assign all or any part of the
rights or obligations, arising hereunder or delegate any duty other than as permitted by this
Agreement, without first obtaining the written consent of the other Party.

          Section 36. Counterparts. This Origination Agreement may be executed in any number
of counterparts. Each counterpart so executed shall be deemed an original, but all such
counterparts shall together constitute one and the same instrument.

          Section 37. No Waivers; Remedies Cumulative. The waiver of any breach of this
Origination Agreement shall not be construed to be a waiver of any other or subsequent breach. All
remedies afforded by this Origination Agreement for a breach hereof shall be cumulative; that is,
in addition to all other remedies provided for herein or by law or in equity

          Section 38. Service Standards. (a) With respect to all closed Mortgage Loans, PHH
shall conduct a survey of the related Customer contemporaneously with the closing (the
“Customer Survey”) and a survey of the Merrill Lynch Financial Consultant that referred
such Customer (the “FC Survey”; together with the Customer Survey, the “Surveys”)
for the purpose of assessing overall satisfaction levels relating to PHH’s performance as loan
originator. PHH shall administer such Surveys and shall provide the results of the Surveys to MLCC
on a monthly

37

 

basis. PHH shall have the right to select the content of such Surveys and amend such Surveys from
time to time, provided that (i) MLCC may review, comment upon and periodically suggest
changes to each Survey, which changes PHH shall incorporate into a redesign of the Surveys unless
such changes, in PHH’s reasonable discretion, are inconsistent with the purpose described in the
second preceding sentence, (ii) the FC Survey shall always contain the question “would you
recommend an MLCC Mortgage Loan to another client?” (the “Key FC Question”), and (iii) the
Customer Survey shall always contain the question “Would you recommend an MLCC Mortgage Loan to a
friend/another person?” (the “Key Customer Question”). MLCC shall have the right to review
and audit all Survey responses once per calendar year. Further, MLCC shall have the right, but not
the obligation, to disseminate such surveys once annually at its option.

          (b) PHH shall maintain a [* * *] rate of customer satisfaction on Customer Surveys received
during [* * *] as measured by [* * *] (the failure of either or both Survey(s) to obtain such
satisfaction level in any given month, a “Survey Failure”). PHH hereby agrees that failure
to maintain [* * *] satisfaction level shall result in damage amounts to be payable to MLCC upon
demand in immediately available funds, as follows:

     (i) upon the occurrence of a Survey Failure, PHH shall pay MLCC $[* * *];

     (ii) upon the occurrence of a Survey Failure for [* * *], PHH shall pay MLCC $[* * *];

     (iii) upon the occurrence of a Survey Failure for [* * *], PHH shall pay MLCC $[* * *];

     (iv) upon the occurrence of a Survey Failure for [* * *], PHH shall pay MLCC $[* * *];

     (v) upon the occurrence of a Survey Failure for [* * *], PHH shall pay MLCC $[* * *];

 

	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

38

 

     (vi) upon the occurrence of a Survey Failure for [* * *], PHH shall pay MLCC $[* * *]
and MLCC shall have the right to terminate the exclusivity provisions contained in Section
3;

     (vii) upon the occurrence of a Survey Failure for [* * *], PHH shall pay MLCC $[* * *],
PHH shall not have demonstrated the ability to meet such satisfaction levels, MLCC shall
have the right, but not the obligation, to terminate this Agreement and the Trademark Use
Agreement;

     (viii) upon the occurrence of a Survey Failure for [* * *], PHH shall pay MLCC $[* *
*].

          (c) Notwithstanding paragraph (b) above, during any calendar month during which PHH
experiences a volume of loan refinance activity which exceeds [* * *] for such month on the
Refinance Application Index promulgated by the Mortgage Bankers Association, the satisfaction
levels required for all purposes under paragraph (b) with respect to Surveys conducted for such
month shall be [* * *] for the Customers Surveys and [* * *] for the FC Surveys.

          (d) With respect to the $[* * *] and shall provide MLCC with documentation detailing such
activities.

          (e) If at any time from the Effective Date until the Initial Termination Date, PHH shall fail
to maintain a [* * *] satisfaction rate for either of the Customer Surveys or the FC Surveys for [*
* *], MLCC shall have the right, but not the obligation, to terminate this Agreement; provided,
that [* * *], PHH shall only be required to achieve a [* * *] satisfaction rate for both the FC
Surveys and the Customer Surveys.

          (f) Notwithstanding any other provisions contained in this Agreement, the remedies set forth
in this Section 38 for the failure to meet the satisfaction levels specified in this Section 38
shall be MLCC’s exclusive remedies.

 

	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

39

 

          Section 39. Binding Effect. This Origination Agreement shall inure to the benefit of
and be binding upon the Parties hereto and, except as otherwise limited herein, their respective
successors and permitted assigns.

          Section 40. Benefit of Parties Only. This Origination Agreement is made for the sole
benefit of the Parties hereto and of their respective successors and permitted assigns. Nothing
herein shall create, or be deemed to create, a relationship between the Parties hereto, or either
of them and any third person in the nature of a third-party beneficiary, equitable lien or
fiduciary relationship.

          Section 41. Survival. The provisions contained in Sections 6(g), 6(h) 14, 17, 21(a)
and 22 of this Agreement shall survive the termination of this Agreement.

          Section 42. MLPF&S. MLCC agrees to enter into an agreement with Merrill Lynch,
Pierre, Fenner & Smith Incorporated (“MLPF&S”) for it to be the exclusive provider of
Mortgage Loans for MLPF&S U.S. domestic brokerage clients through the FC Channel. A default under
such agreement that has not been cured after the expiration of any applicable cure period or any
early termination of such agreement shall, at the option of PHH, constitute an event of default
hereunder.

40

 

IN WITNESS WHEREOF, each of the undersigned Parties has caused this Agreement to be duly executed
and delivered by one of its duly authorized officers, all as of the Effective Date.

	 	 	 	 	 	 	 	 	 
	 	 	CENDANT MORTGAGE CORPORATION	 	 
	 	 	          d/b/a PHH Mortgage Services	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Terence Edwards	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	MERRILL LYNCH CREDIT CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Kevin O’Hanlon	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 

 

 

Exhibit 10.67

EXECUTION COPY

CALIFORNIA ADDENDUM TO

ORIGINATION ASSISTANCE AGREEMENT

          CALIFORNIA ADDENDUM TO ORIGINATION ASSISTANCE AGREEMENT (this “California Addendum”)
is entered into effective as of this 19th day of October, 2001 by and between MERRILL
LYNCH CREDIT CORPORATION, a Delaware corporation with its principal place of business at 4802 Deer
Lake Drive East, Jacksonville, Florida 32246-6484 (“MLCC”), and CENDANT MORTGAGE
CORPORATION d/b/a PHH Mortgage Services, a New Jersey corporation with its principal place of
business at 3000 Leadenhall Road, Mt. Laurel, New Jersey 08054 (“PHH”) (each, individually,
a “Party,” collectively, the “Parties”).

W I T N E S S E T H:

          WHEREAS, the Parties entered into that certain Origination Assistance Agreement (“Origination
Agreement”) effective as of the Effective Date;

          WHEREAS, the Origination Agreement sets forth the terms and conditions under which PHH shall
provide certain Mortgage Loan Origination Services; and

          WHEREAS, the Parties wish to amend, modify and supplement the Origination Agreement with
respect to Mortgage Loans that are subject to the Origination Agreement and as to which the
mortgaged property is located in the State of California (“California Mortgage Loans”).

ARTICLE I

DEFINITIONS; EFFECT

          SECTION 1.01 Definitions. Except as otherwise provided in this California Addendum,
all capitalized terms used in this California Addendum shall have the same meanings as are ascribed
to such terms in the Origination Agreement.

          SECTION 1.02 Effect of California Addendum. (a) This California Addendum amends,
modifies, and supplements the Origination Agreement with respect to the California Mortgage Loans
that are subject to the Origination Agreement. Except as otherwise provided in this California
Addendum, the Origination Agreement remains in full force and effect. Nothing in this California
Addendum shall amend, modify or supplement the Origination Agreement insofar as it relates to
Mortgage Loans that are not California Mortgage Loans.

     (b) Section 2.02 of this California Addendum is effective as of the day and year first set
forth above. All of the other sections of this California Addendum are effective as of the
Effective Date.

 

 

ARTICLE II

AMENDMENTS

          SECTION 2.01 Written Agency Contract. A new Section 1B is added to the Origination
Agreement, to read as follows:

“Section 1B. Written Agency Contract. With respect to California Mortgage
Loans that are subject to this Origination Agreement, this Origination Agreement
constitutes a written agency contract under which PHH shall engage in the business
of soliciting Customers, processing Mortgage Loan applications and applying the MLCC
Underwriting Guidelines in underwriting Mortgage Loan applications for and on behalf
of MLCC, all as more fully set forth in and subject to the terms and conditions of
this Origination Agreement.”

          SECTION 2.02 Mortgage Loan Application Processing. The first sentence of Section 6(c)
of the Origination Agreement is revised to read in its entirety as follows:

“For each Customer who applies for a Mortgage Loan through the Telemarketing
Origination Channel, PHH shall arrange for the receipt by the Customer, as promptly
as practicable under the circumstances, and in any event in accordance with
applicable law, of (i) the Mortgage Loan application for the Customer to review and
sign accompanied by a request for appropriate Customer documents, (ii) all Mortgage
Loan disclosures completed, as appropriate, in the name of MLCC and (iii) a properly
completed Disclosure of Agency Relationship form for each California Mortgage Loan.”

          SECTION 2.03 Customer Fees and Charges. A new subsection (f) is added to Section 13
of the Origination Agreement, to read as follows:

“(f) Anything in this Section 13 to the contrary notwithstanding, with respect to
California Mortgage Loans, all Customer Fees and Charges, non-third party fees, and
other fees directly or indirectly charged to the Customer shall be demanded by, or
collected on behalf of, MLCC. The Parties may, for their convenience, arrange for
PHH to net amounts so charged and collected against amounts owing to PHH under the
provisions of this Origination Agreement.”

          SECTION 2.04 Legal and Regulatory Compliance. Section 15(a)(x) of the Origination
Agreement is revised to read in its entirety as follows:

2

 

“(x) Usury limitations and, in the case of California Mortgage Loans, the California
Residential Mortgage Lending Act and the rules, regulations, forms and orders of the
California Commissioner of Corporations.”

          SECTION 2.05 No Partnership. Section 24 of the Origination Agreement is revised to
read in its entirety as follows:

“Section 24. No Partnership. With respect to California Mortgage Loans
that are subject to this Origination Agreement, this Origination Agreement is
intended to be, and shall be construed to be, the formation of a principal and agent
relationship. With respect to Mortgage Loans that are not California Mortgage
Loans, this Origination Agreement is intended to be and shall be construed to be,
the formation of an independent contractor relationship. In any event, this
Origination Agreement is not intended to be, and shall not be construed to be, a
partnership or joint venture between the Parties.”

ARTICLE III

COUNTERPARTS

          SECTION 3.01 Counterparts. This California Addendum may be executed in any number of
counterparts. Each counterpart so executed shall be deemed an original, but all such counterparts
shall together constitute one and the same instrument.

3

 

Exhibit 10.67

          IN WITNESS WHEREOF, each of the undersigned Parties has caused this California Addendum to be
duly executed and delivered by one of its duly authorized officers effective as of the day and year
first set forth above.

	 	 	 	 	 	 	 	 	 
	 	 	CENDANT MORTGAGE CORPORATION	 	 
	 	 	d/b/a PHH Mortgage Services	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	  /s/ Joseph Bennett	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	  Name:
	 	Joseph Bennett	 	 
	 

	 	 	 	  Title:
	 	SVP	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	MERRILL LYNCH CREDIT CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	  /s/ Kevin O’Hanlon	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	  Name:
	 	Kevin O’Hanlon	 	 
	 

	 	 	 	  Title:
	 	President and Chairman	 	 

 

 

EXECUTION COPY

 

ADDENDUM AGREEMENT NO. 1

TO ORIGINATION ASSISTANCE AGREEMENT

By and Between

MERRILL LYNCH CREDIT CORPORATION

and

CENDANT MORTGAGE CORPORATION

Dated as of

November 30, 2001

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	Article I
	 	 	 	 
	 
	 	 	 	 	 	 
	DEFINITIONS; INCORPORATION INTO AGREEMENTS
	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 1.01
	 	Definitions	 	 	1	 
	SECTION 1.02
	 	Incorporation of Addendum	 	 	4	 
	SECTION 1.03
	 	Ratification	 	 	4	 
	 
	 	 	 	 	 	 
	Article II
	 	 	 	 
	 
	 	 	 	 	 	 
	THE CORRESPONDENT LENDING PROGRAM
	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 2.01
	 	Correspondent Lending Services	 	 	4	 
	SECTION 2.02
	 	Payment for Correspondent Lending Services	 	 	7	 
	SECTION 2.03
	 	Amendment of Correspondent Lending Guide	 	 	7	 
	 
	 	 	 	 	 	 
	Article III
	 	 	 	 
	 
	 	 	 	 	 	 
	MORTGAGE BROKER PROGRAM
	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 3.01
	 	Mortgage Broker Services	 	 	8	 
	SECTION 3.02
	 	Payment for Mortgage Broker Services	 	 	10	 
	 
	 	 	 	 	 	 
	Article IV
	 	 	 	 
	 
	 	 	 	 	 	 
	GENERAL PROVISIONS
	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 4.01
	 	Exception Loans	 	 	10	 
	SECTION 4.02
	 	Mortgage 100sm Loans	 	 	11	 
	SECTION 4.03
	 	Termination of Wholesale Lenders	 	 	11	 
	SECTION 4.04
	 	Certain Provisions of Origination Agreement Not Applicable	 	 	11	 
	SECTION 4.05
	 	Duties and Obligations of MLCC	 	 	12	 
	SECTION 4.06
	 	Annual Cendant Survey	 	 	12	 
	SECTION 4.07
	 	Adjustment of Fees	 	 	12	 

i

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	SECTION 4.08
	 	Limitation of Fees	 	 	13	 
	SECTION 4.09
	 	Degree of Care	 	 	13	 
	SECTION 4.10
	 	No Assignment	 	 	13	 
	SECTION 4.11
	 	Governing Law	 	 	13	 
	SECTION 4.12
	 	Lawful Conduct; Severability; Release	 	 	13	 
	SECTION 4.13
	 	Amendments	 	 	13	 
	SECTION 4.14
	 	Captions	 	 	13	 
	SECTION 4.15
	 	Counterparts	 	 	13	 
	SECTION 4.16
	 	Construction	 	 	14	 
	 
	 	 	 	 	 	 
	Exhibit A — Form of Broker Agreement	 	 	 	 
	Exhibit B — Form of Commitment	 	 	 	 
	Exhibit C — Form of Master Purchase Agreement	 	 	 	 
	Exhibit D — Form of Program Exception Loan Letter	 	 	 	 
	 
	 	 	 	 	 	 
	Schedule 1 - Cendant Loans	 	 	 	 
	Schedule 2 - Portfolio Loans	 	 	 	 

ii

 

ADDENDUM AGREEMENT NO. I TO ORIGINATION

ASSISTANCE AGREEMENT

     ADDENDUM AGREEMENT NO. 1 TO ORIGINATION ASSISTANCE AGREEMENT, dated as of November 30, 2001
and effective as of September 10, 2001 (the “Effective Date”) (this “Addendum”),
between MERRILL LYNCH CREDIT CORPORATION, a Delaware corporation, with offices located at 4802 Deer
Lake Drive East, Jacksonville, Florida 32246 (“MLCC”), and CENDANT MORTGAGE CORPORATION
d/b/a PHH Mortgage Services, a New Jersey corporation, with offices located at 3000 Leadenhall
Road, Mt. Laurel, New Jersey 08054 (“Cendant”).

W I T N E S S E T H:

     WHEREAS, MLCC and Cendant are parties to that certain Origination Assistance Agreement, dated
as of December 15, 2000 (the “Origination Agreement”);

     WHEREAS, Cendant is willing to, and MLCC desires Cendant to, provide MLCC certain support
services for MLCC’s Wholesale Lending Program; and

     WHEREAS, each of MLCC and Cendant desire to supplement the Origination Agreement with the
terms and provisions set forth in this Addendum in order to reflect their agreement with respect to
the services to be provided by Cendant for MLCC’s Wholesale Lending Program;

     NOW, THEREFORE, in consideration of the premises and the mutual agreements and covenants
hereinafter set forth, MLCC and Cendant hereby agree as follows:

ARTICLE I

DEFINITIONS;

INCORPORATION INTO AGREEMENTS

          SECTION 1.01 Definitions. Unless otherwise defined herein, all initially
capitalized terms used in this Addendum shall have the meanings set forth for such terms in the
Origination Agreement, to which this Addendum shall be attached.

          (a) Certain Defined Terms. As used in this Addendum, the following terms shall have
the following meanings:

          “Applicable Requirements” has the meaning set forth in the Origination Agreement;
provided, however, that for purposes of this Addendum, such term shall also include the following
language after clause (A)(vii): “; and (viii) with respect to the Correspondent Lending Program,
the terms of the Correspondent Lending Guide; and (ix) with respect to the Mortgage Broker Program,
the terms of the Mortgage Broker Guide.”

          “ARM” means an adjustable rate mortgage loan.

 

 

          “Borrower” means the individual or individuals obligated to repay a mortgage loan.

          “Broker Agreement” means a Broker Agreement, a form of which is attached hereto as
Exhibit A, entered into by MLCC and a Mortgage Broker, which form of agreement may be amended from
time by mutual agreement of MLCC and Cendant without formal amendment hereto.

          “Cendant Loans” shall mean any of the types of Mortgage Loans listed on Schedule 1
hereto, as the same may be amended from time to time by written agreement between MLCC and Cendant,
and offered to Borrowers under either the Correspondent Lending Program or the Mortgage Broker
Program. Cendant Loans shall also include any of the foregoing Mortgage Loans that are supported
by a Mortgage 100sm Loan or a Parent Power Mortgage Loan.

          “Commitment” means a Master Commitment agreement, a form of which is attached hereto
as Exhibit B (which form of agreement may be amended from time by mutual agreement of MLCC and
Cendant without formal amendment hereto), entered into by MLCC and a Correspondent Lender, which
agreement sets forth the extent and duration of MLCC’s financial commitment to purchase certain
Loans from the applicable Correspondent Lender.

          “Correspondent Lender” means a Person in the business of originating, making and
selling first lien residential mortgage loans secured by a mortgage on one-to-four family
dwellings.

          “Correspondent Lending Guide” means the “Merrill Lynch Credit Corporation Seller
Guide”, a copy of which has been provided to Cendant, which sets forth the terms and conditions
applicable to the sale of Loans pursuant to the Correspondent Lending Program, as the same may be
amended from time to time in accordance with the terms of this Addendum.

          “Correspondent Lending Program” means MLCC’s program of purchasing Loans from
Correspondent Lenders pursuant to the terms and conditions of the Correspondent Lending Guide, the
applicable Commitment and the applicable Master Purchase Agreement. Such program also includes the
underwriting of certain Loans sold by a Correspondent Lender to MLCC, which Loans are underwritten
and delivered to MLCC in accordance with the ___Correspondent Lending Guide, the applicable
Commitment and the applicable Master Purchase Agreement.

          “Delegated Loans” mean those Loans originated and closed pursuant to and in accordance
with the “Delegated Underwriting Program” (as such term is defined in the Correspondent Lending
Guide).

          “Equity Access® Loans” shall mean home equity lines of credit offered to
Borrowers under the Wholesale Lending Program.

          “Loans” means Portfolio Loans and Cendant Loans.

          “Master Purchase Agreement” means a Master Loan Purchase and Sale Agreement, a form of
which is attached hereto as Exhibit C (which form of agreement may be

2

 

amended from time by mutual agreement of MLCC and Cendant without formal amendment hereto), entered
into by MLCC and a Correspondent Lender, which agreement sets forth the terms and conditions
pursuant to which a Correspondent Lender agrees to sell, and MLCC agrees to buy, Loans having such
characteristics and in such aggregate principal amounts as are agreed to between MLCC and the
applicable Correspondent Lender in accordance with the eligibility guidelines in the Correspondent
Lending Guide and the applicable Commitment.

          “Mortgage Broker” means a Person engaged in the business of brokering mortgage loans
and approved by MLCC, as of the date hereof or in accordance with the terms of this Addendum, to
participate in this Mortgage Broker Program.

          “Mortgage Broker Guide” means the “Mortgage Broker Manual”, a copy of which has been
provided to Cendant, which sets forth the terms and conditions applicable to Loans and Mortgage
Brokers under the Mortgage Broker Program, as the same may be amended from time to time in
accordance with the terms of this Addendum.

          “Mortgage Broker Program” means MLCC’s program of underwriting Loans placed with MLCC
by Mortgage Brokers.

          “Mortgage Loans” means an individual mortgage loan and all rights with respect
thereto, evidenced by a mortgage and mortgage note.

          “Non-Table Funded Loans” means any Loan closed and funded by a Correspondent Lender
under the Correspondent Lending Program.

          “Portfolio Loans” shall mean any of the types of Mortgage Loans listed on Schedule 2
hereto, as the same may be amended from time to time by written agreement between MLCC and Cendant,
and offered to Borrowers under either the Correspondent Lending Program or the Mortgage Broker
Program. Portfolio Loans shall also include any of the foregoing Mortgage Loans that are supported
by a Mortgage 100sm Loan or a Parent Power Mortgage Loan.

          “Prior Approval Loans” means any Loan for which a Correspondent Lender, in accordance
with the Correspondent Lending Guide, must receive underwriting approval from Cendant, acting on
behalf of M LCC, prior to such Loan being closed by the Correspondent Lender.

          “Table Funded Loans” means any Loan closed and funded by Cendant on MLCC’s behalf and
in MLCC’s name under the Mortgage Broker Program.

          “Underwriting Guidelines” means (i) with respect to Portfolio Loans and Equity Access®
Loans, the published underwriting guidelines of MLCC and (ii) with respect to Cendant Loans, the
published underwriting guidelines of Cendant.

          “Wholesale Lender” means a Correspondent Lender or a Mortgage Broker.

          “Wholesale Lending Program” means the Correspondent Lending Program and the Mortgage
Broker Program.

3

 

          (b) Certain Cendant Terms. The parties hereto acknowledge that Cendant, in the day-to-day
conduct of its own business, uses terms other than the defined terms used in this Addendum. For
ease of Cendant’s reference only, and not in any manner modifying or changing the
definitions set forth in Section 1.01(a) above, or modifying or changing the use of such
definitions in this Addendum, Cendant uses the following terminology in the day-to-day conduct of
its business:

          “Tier III Loan” is used by Cendant to refer to a Table Funded Loan.

          “Tier VI Loan” is used by Cendant to refer to a Prior Approval Loan.

          “Tier VII Loan” is used by Cendant to refer to a Delegated Loan.

          “Tier VI Loan” and “Tier VII Loan” are each used by Cendant to refer to a
Non-Table Funded Loan.

          SECTION 1.02 Incorporation of Addendum. Unless specifically addressed below,
all terms and conditions, representations and warranties, and rights, obligations and covenants of
Cendant and MLCC set forth in the Origination Agreement shall apply or shall be deemed to be given
or made, as the case may be, to Loans originated, and/or purchased pursuant to the terms of this
Addendum, and to the subject matter of the Addendum. Further, except as indicated below, all
references in the Origination Agreement to “Origination Services” shall be deemed to include
references to the Correspondent Lending Services and the Mortgage Broker Services, and all
references in the Origination Agreement to a “Mortgage Loan” shall be deemed to include a reference
to the Loans originated, and/or purchased pursuant to the terms of this Addendum.

          SECTION 1.03 Ratification. The Origination Agreement is hereby supplemented
by the terms and conditions of this Addendum. Except as supplemented by this Addendum, the
Origination Agreement shall remain unmodified and in full force and effect, and is hereby ratified
and confirmed.

ARTICLE II

THE CORRESPONDENT LENDING PROGRAM

          SECTION 2.01 Correspondent Lending Services. Cendant shall perform for and
on behalf of MLCC the following services and provide the related facilities associated with MLCC’s
Correspondent Lending Program (collectively, the “Correspondent Lending Services”):

          (a) General Duties. Cendant shall perform, in accordance with all Applicable
Requirements, all the duties and obligations of MLCC under any and all Commitments and Master
Purchase Agreements in effect from time to time. The performance of such duties and obligations
(as more specifically set forth below) shall include, but not be limited to, reviewing and
approving/not approving Loan applications, responding to pre-application inquiries, providing daily
interest rate sheets, preparing certain closing documents (or making such documents available),
maintaining certain files, providing funds for the purchase of Loans, ensuring compliance with all
Applicable Requirements, and providing any and all legal guidance

4

 

and support in connection therewith. Notwithstanding the foregoing, Cendant shall have no
obligations to purchase any Loans pursuant to the Correspondent Lending Program other than the
obligations set forth in this Addendum or any other agreement entered into by Cendant and MLCC
contemporaneously herewith.

          (b) Loan Pricing. Prior to [* * *], Cendant shall provide to each Correspondent
Lender by facsimile or otherwise in writing the “Correspondent Lending Program Daily Pricing
Matrix” for Loans. Mortgage Loan Pricing for Cendant Loans shall be determined by Cendant in its
sole discretion. Mortgage Loan Pricing for Portfolio Loans shall be determined by MLCC in its sole
discretion and provided to Cendant prior [* * *].

          (c) Forwarding of Loan Files. Immediately after the Effective Date, Cendant shall
direct all Correspondent Lenders to forward all Credit Files, Delivery Files and Servicing Files
(as each such term is defined in the applicable Commitment) to it, and Cendant shall maintain such
files in accordance with the terms of the Origination Agreement applicable to the retention of Loan
files.

          (d) Information to Correspondent Lenders. From time to time and promptly after such
documents are amended, Cendant shall distribute or otherwise make available to each Correspondent
Lender (i) any description of mortgage loan programs offered from time to time by MLCC, (ii) the
Underwriting Guidelines, and (iii) loan program parameters. Cendant shall promptly advise the
Correspondent Lenders of amendments or revisions to any of the foregoing. Cendant shall provide or
make available to each Correspondent Lender any documents required to be furnished by MLCC to a
Correspondent Lender under any Commitment or any Master Purchase Agreement.

          (e) Origination of Loans.

          (i) Cendant shall ensure that all Loans originated under the Correspondent Lending
Program shall be closed in accordance with the Correspondent Lending Guide, the applicable
Master Purchase Agreement, the applicable Commitment, the Underwriting Guidelines and all
Applicable Requirements.

          (ii) Promptly after the Effective Date, Cendant shall commence to direct all
Correspondent Lenders to forward Loan applications and other materials related to Loans to
Cendant for Cendant’s review on behalf of MLCC.

          (iii) Cendant shall perform all obligations to be performed by MLCC with respect to
Prior Approval Loans pursuant to and in accordance with the Correspondent Lending Guide, the
applicable Master Purchase Agreement and the applicable Commitment, including, but not
limited to, reviewing all forwarded materials and, subject to Section 4.01, issuing (or not
issuing) Approval Letters for Prior Approval Loans. Cendant agrees that it shall use
commercially reasonable efforts to provide a credit decision with respect to completed
applications on behalf of MLCC within [* * *]of its receipt of a completed application. For
each Prior Approval Loan, Cendant may charge [* * *] as an underwriting

 

	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

5

 

fee for each such Loan reviewed pursuant to this paragraph (whether or not an Approval
Letter is issued and whether or not such Loan closes), or any amount [* * *], and such
charge shall be imposed by MLCC on the applicable Correspondent Lender as a third party
charge payable to Cendant.

     (iv) Cendant shall perform all obligations to be performed by MLCC with respect to
Delegated Loans pursuant to and in accordance with the Correspondent Lending Guide, the
applicable Master Purchase Agreement and the applicable Commitment. For each Delegated
Loan, Cendant may charge [* * *] as a loan set-up fee for each such Delegated Loan, or any
amount [* * *], and such charge shall be imposed by MLCC on the applicable Correspondent
Lender as a third party charge payable to Cendant.

     (v) Cendant shall, prior to the closing of each Cendant Loan and at its own cost and
expense, prepare and deliver to the closing all documentation relating to the closing of
such Cendant Loan. Cendant may elect to have the applicable Wholesale Lender prepare and
deliver such documentation on its behalf, provided that Cendant shall make the forms of such
documentation available to such Wholesale Lender.

     (vi) The applicable Correspondent Lender may elect to pass through any or all of these
additional charges to the Borrower subject to Applicable Requirements, and neither Cendant
nor MLCC directs the Correspondent Lender to impose such charges on the applicable Borrower.

     (f) Funding of Non-Table Funded Loans.

     (i) At the end of each Business Day, Cendant shall send to MLCC aggregate funding
instructions in substantially the form attached as Exhibit B to the Origination Agreement
with respect to all Loans to be purchased as a Non-Table Funded Loan by MLCC the next
Business Day. Cendant shall attach to such funding instructions documentation comparable to
a “Form 3 Commitment Confirmation,” or a “Form 7 Payment Distribution Certificate,” and, at
the request of MLCC, a copy of the HUD-1 or other similar documentation, provided that
compliance with such request does not increase Cendant’s costs to perform Cendant’s services
under this Addendum. On the first Business Day after the receipt by MLCC of such
documentation from Cendant, and provided that such documentation is complete, MLCC shall
purchase such Non-Table Funded Loans in the name of MLCC by wire transfer of immediately
available funds to an account designated by Cendant. Such account shall be a custodial
account held by Cendant for the benefit of MLCC. Cendant shall be responsible for
disbursing to the applicable Correspondent Lender the applicable amount for each Non-Table
Funded Loan purchased by MLCC from such account. By giving such funding instructions,
Cendant shall be deemed to have certified to MLCC that, with respect to each Prior Approval
Non-Table Funded Loan, the conditions of the Approval Letter for such Prior

 

	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

6

 

Approval Non-Table Funded Loan have been satisfied and that each such Non-Table Funded Loan shall,
upon closing or purchase, satisfy all Applicable Requirements.

     (ii) If MLCC has wired funds to Cendant pursuant to Section 2.01(f)(i) and a Non-Table
Funded Loan is not purchased on the scheduled purchase date for any reason whatsoever,
Cendant shall, upon receipt of notice of the failed purchase, wire [* * *].

          (g) MLCC’s Failure to Fund. If MLCC fails to fund, MLCC shall reimburse Cendant for
the amounts provided by Cendant in accordance with this paragraph on the prior Business Day. Such
reimbursement by MLCC shall be made by wire transfer of immediately available funds, plus interest
at the one-month LIBOR Interest Rate from the date that is forty-eight (48) hours after the
scheduled funding date up to and including the date the funds are received from MLCC.

          (h) Compliance with Guidelines and Law. Cendant shall cause all Loans originated,
closed and underwritten or purchased pursuant to the Correspondent Lending Program and Article II
of this Addendum to be originated, closed and underwritten or purchased in accordance with the
Underwriting Guidelines, the Correspondent Lending Guide, the applicable Commitment, the applicable
Master Purchase Agreement and in accordance with all Applicable Requirements. Cendant shall also
ensure that each Borrower shall have been provided with all federal, state and local disclosure
documentation, including, but not limited to, any disclosure relating to yield-spread premiums.
Cendant shall ensure that the Correspondent Lenders originate and close all Loans in accordance
with this Section 2.01(h)

          SECTION 2.02 Payment for Correspondent Lending Services.  In consideration of
the performance of the Correspondent Lending Services, MLCC shall pay the following amounts to
Cendant: (i) an origination assistance fee of $[* * *] for each Prior Approval Loan that is a
Portfolio Loan (the “Prior Approval Origination Assistance Fee”); (ii) an origination
assistance fee of $[* * *] for each Delegated Loan that is a Portfolio Loan (the “Delegated
Origination Assistance Fee”); and (iii) an origination assistance fee of $[* * *] for each
Equity Access ® Loan. [* * *]

          SECTION 2.03 Amendment of Correspondent Lending Guide. Each party may, from
time to time, propose amendments to the Correspondent Lending Guide. The non-proposing party shall
consider in good faith any and all proposed amendments, provided that such amendments would
comply with all Applicable Requirements. The proposing party shall notify the non-proposing party
of the proposed amendment at least thirty (30) days prior to the date on which the proposing party
desires such amendment to take effect. The parties shall consult with each other in good faith
during such thirty (30) day period with respect to such proposed amendment, and such amendment
shall not become effective without the prior written consent of the non-proposing party (such
consent not to be unreasonably withheld).

 

	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

7

 

Notwithstanding the foregoing, each party may, from time to time and without the consent of the
other party, amend its published underwriting guidelines, provided that the party amending its
underwriting guidelines promptly notifies the other party of such amendments. Each party shall
keep complete and accurate records of the Correspondent Lending Guide in effect from time to time.

ARTICLE III

MORTGAGE BROKER PROGRAM

          SECTION 3.01 Mortgage Broker Services. Cendant shall perform for and on
behalf of MLCC the following services and provide the related facilities associated with MLCC’s
Mortgage Broker Program (collectively, the “Mortgage Broker Services”):

          (a) General Duties. Cendant shall perform, in accordance with all Applicable
Requirements, all the duties and obligations of MLCC as “Lender” under any and all Broker
Agreements in effect from time to time. The performance of such duties and obligations (as more
specifically set forth below) shall include, but not be limited to, reviewing Loan applications,
responding to pre-application inquiries, providing daily interest rate sheets, preparing certain
closing documentation (or making such documentation available), providing preliminary approvals,
providing notices of final approval or declination, preparing loan closing documents, providing
funds for the funding of Loans, ensuring compliance with all Applicable Requirements, and providing
any and all legal guidance and support required in connection therewith. Notwithstanding the
foregoing, Cendant shall have no obligations to purchase any Loans pursuant to the Mortgage Broker
Program other than the obligations set forth in this Addendum or any other agreement entered into
by Cendant and MLCC contemporaneously herewith.

          (b) Loan Pricing. Prior to [* * *], Cendant shall provide to each Mortgage Broker by
facsimile or otherwise in writing an interest rate sheet containing the Mortgage Loan Pricing for
Loans. Mortgage Loan Pricing for Cendant Loans shall be determined by Cendant in its sole
discretion. Mortgage Loan Pricing for Portfolio Loans shall be determined by MLCC in its sole
discretion and provided to Cendant prior to 
[* * *].

          (c) Information to Brokers. From time to time and promptly after such documents are
amended, Cendant shall distribute or otherwise make available to each Mortgage Broker (i) any
description of mortgage loan programs offered from time to time by MLCC, (ii) the Underwriting
Guidelines, and (iii) loan program parameters. Cendant shall promptly advise the Mortgage Brokers
of such amendments or revisions. Cendant shall provide to each Mortgage Broker any documents
required to be furnished by MLCC to a Mortgage Broker under any Broker Agreement.

          (d) Origination of Loans.

     (i) Cendant shall ensure that all Loans originated under the Mortgage Broker Program
shall be closed in MLCC’s name and in accordance with the Mortgage Broker

 

	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

8

 

Guide, the applicable Broker Agreement, the Underwriting Guidelines and all Applicable
Requirements.

     (ii) Promptly after the Effective Date, Cendant shall commence to direct all Mortgage
Brokers to forward Loan applications and other materials related to Loans to Cendant for
Cendant’s review for the benefit of MLCC. Cendant shall make such direction to all Mortgage
Brokers no later than September 30, 2001.

     (iii) Cendant shall perform all obligations to be performed by MLCC with respect to
Loans pursuant to and in accordance with the applicable Broker Agreement and the Mortgage
Broker Guide, including, but not limited to, reviewing all forwarded materials and, subject
to Section 4.01, issuing (or not issuing) Approval Letters for Loans. Cendant agrees that
it shall use its best efforts to provide a credit decision with respect to completed
applications for the benefit of MLCC within [* * *] of its receipt of a completed
application. Subject to Section 3.01(d)(i), Cendant may cause MLCC to charge the applicable
Mortgage Broker or the applicable Borrower a fee payable to Cendant of [* * *] as an
underwriting fee for each closed Loan reviewed pursuant to this paragraph, or any amount [*
* *].

     (iv) Cendant shall, prior to the closing of each Cendant Loan and at its own cost and
expense, prepare and deliver to the closing all documentation relating to the closing of
such Cendant Loan.

     (v) With respect to PrimeFirst® Loans and Equity Access® Loans,
Cendant agrees to collect from the applicable Borrower, or cause the Mortgage Broker to
collect, on behalf of MLCC, any discount point(s) charged in respect of such Loans as set
forth in the Mortgage Broker Guide.

     (e) Funding of Loans.

     (i) At the end of each Business Day, Cendant shall send to MLCC aggregate funding
instructions in substantially the form attached as Exhibit B to the Origination Agreement
with respect to all Loans to be closed the next Business Day in MLCC’s name pursuant to this
Article III. On the first Business Day after the receipt by MLCC of such funding
instructions, MLCC shall fund such Loans by wire transfer of immediately available funds to
an account designated by Cendant. Such account shall be a custodial account for the benefit
of MLCC. Cendant shall be responsible for disbursing to the applicable Mortgage Broker the
applicable amount for each Loan funded by MLCC to such account. By giving such funding
instructions, Cendant shall be deemed to have certified to MLCC that, with respect to each
Loan, the conditions of the Approval Letter for such Loan have been satisfied and that such
Loan shall, upon closing, satisfy all Applicable Requirements.

     (ii) If MLCC has wired funds to Cendant pursuant to Section 3.01(e)(i) and a Loan does
not close on the scheduled closing date for any reason whatsoever, Cendant

 

	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

9

 

shall, upon receipt of notice of the failed closing, [* * *].

          (f) Compliance with Guidelines and Law. Cendant shall cause all Loans originated and
closed pursuant to the Mortgage Broker Program and Article III of this Addendum to be originated
and closed in accordance with the Underwriting Guidelines, the Mortgage Broker Guide, the
applicable Broker Agreement and in accordance with all Applicable Requirements. Cendant shall
ensure that each Borrower shall have been provided with all federal, state and local disclosure
documentation, including, but not limited to, any disclosure documentation relating to yield-spread
premiums. Cendant shall ensure that all Loans originated, closed and purchased under the Mortgage
Broker Program comply with the requirements of this Section 3.01(f).

          SECTION 3.02 Payment for Mortgage Broker Services. In consideration for the
performance of the Mortgage Broker Services, MLCC shall pay the following amounts to Cendant (i) an
origination assistance fee of $[* * *] for each Loan (the “Mortgage Broker Origination
Assistance Fee”; and (ii) an origination assistance fee of $[* * *] for each Equity Access
Loan. [* * *].

 

	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

10

 

ARTICLE IV

GENERAL PROVISIONS

          SECTION 4.01 Exception Loans. Cendant shall promptly advise MLCC about any
application for a Loan referred by a Wholesale Lender that (i) Cendant determines does not meet the
Underwriting Guidelines or the provisions of the Correspondent Lending Guide or the Mortgage Broker
Guide, as the case may be, or (ii) is for an Equity Access® Loan ((i) and (ii) each a “Program
Exception Loan”). With respect to a Program Exception Loan described in clause (i) of the
immediately preceding sentence, promptly after advising MLCC about such application, Cendant and
MLCC shall con sult and negotiate in good faith with each other to determine: (a) why such
application does not meet the Underwriting Guidelines or the provisions of the Correspondent
Lending Guide or the Mortgage Broker Guide, as the case may be; (b) whether Cendant, in processing
such Program Exception Loan, would incur any out-of-pocket costs and expenses that would exceed
Cendant’s normal and customary out-of-pocket costs and expenses incurred in connection with
Cendant’s processing of Loans, and the estimated amount, if any, of such excess costs and expenses;
(c) whether MLCC, Cendant, the applicable Borrower or the applicable Wholesale Lender shall pay
such costs and expenses; and (d) whether, upon closing of such Program Exception Loan, it shall be
deemed a “Portfolio Loan” or a “Cendant Loan.” If no such agreement is reached, Cendant shall have
no further obligations to process such Program Exception Loan.

          MLCC may, in its sole discretion, advise Cendant to process (or to have the applicable
Wholesale Lender process) such Program Exception Loan and, if so, upon what terms and conditions
Cendant or the applicable Wholesale Lender shall process such Program Exception Loan. Upon such
direction by MLCC, Cendant shall complete the performance of the Correspondent Lending Services or
the Mortgage Broker Services, as the case may be, with respect to such Program Exception Loan.
Upon such direction by MLCC, Cendant shall issue Approval Letters on those applications associated
with a Program Exception Loan. All Approval Letters issued with respect to Program Exception Loans
shall be for loans to be made at the interest rates and prices set forth by MLCC. Cendant shall
provide any and all reasonable and customary legal guidance and support in connection with the
performance of its obligations under this paragraph.

          SECTION 4.02 Mortgage 100sm Loans. With respect to any Loan
originated under the Wholesale Lending Program which is an Additional Collateral Mortgage Loan,
MLCC hereby agrees that it shall, at its own cost and expense, and in accordance with MLCC’s
internal guidelines and procedures regarding such loans as are attached to the Origination
Agreement as Exhibit F, carry out and perform in a timely manner all functions associated with the
establishment and administration of Securities Accounts for Additional Collateral Mortgage Loans.
MLCC shall also prepare, process and deliver, or cause to be delivered, at or prior to closing, all
documentation necessary in connection with the pledge of the Additional Collateral pertaining to
such Additional Collateral Mortgage Loans. MLCC and Cendant hereby agree to consult and cooperate
with each other, and Cendant hereby agrees to consult and cooperate with the applicable Wholesale
Lender, in connection with the origination, processing and closing of Additional Collateral
Mortgage Loans. To the extent that MLCC’s internal guidelines relating to Additional Collateral
Mortgage Loans are modified, changed or amended by virtue of

 

 

agreements entered into by MLCC and Cendant after the date hereof, Cendant’s obligations under this
Section 4.02 shall, without further action by MLCC or Cendant, be deemed to be expanded consistent
with the terms of such agreement. MLCC agrees that any changes to its internal guidelines relating
to Additional Collateral Mortgage Loans will be made effective for new loans registered beginning
on such date as MLCC and Cendant shall mutually agree.

          SECTION 4.03 Termination of Wholesale Lenders. (a) MLCC reserves the right
to exercise at any time (at its sole discretion) any and all rights it has or may have to terminate
for cause any and all agreements with any Wholesale Lender. Cendant acknowledges and agrees that
MLCC shall have the right to so terminate any such agreements with any Wholesale Lender. Cendant
shall notify MLCC of any Wholesale Lender that has taken, or failed to take, any action which would
give MLCC the right to terminate for cause MLCC’s agreements with such Wholesale Lender. Upon such
notification, Cendant may request MLCC to exercise its rights to terminate such Wholesale Lender
for cause, and provided such request is reasonable, MLCC shall exercise such rights and terminate
for cause its agreements with such Wholesale Lender.

          (b) Cendant and MLCC shall consult in good faith with each other regarding the termination
without cause of any Wholesale Lender.

          SECTION 4.04 Certain Provisions of Origination Agreement Not Applicable. The
following provisions contained in the Origination Agreement shall not apply to Loans originated and
closed pursuant to this Addendum: Section 1A (effectiveness upon closing), Section 2 (mortgage
loan types/mortgage loan pricing), Section 3 (exclusivity), Section 3A (MLCC marketing covenants),
Section 7 (mortgage loan funding), Section 12 (origination assistance fee paid by MLCC), Section 13
(customer fees and charges), Section 14 (pricing standards), Section 38 (service standards), and
Section 42 (MLPF&S). The following provisions contained in the Origination Agreement shall not
apply to Loans originated and closed pursuant to Correspondent Lending Program and this Addendum:
Sections 6(a) (counselors), 6(c) (mortgage loan application processing), 6(e) (mortgage loan
closing) and 6(f) (exception loans), and the second sentence of Section 6(d) (degree of care). The
following provisions contained in the Origination Agreement shall not apply to Loans originated and
closed pursuant to the Mortgage Broker Program and this Addendum: Sections 6(e) (mortgage loan
closing) and, only with respect to any inconsistency with the terms hereof, 6(f) (exception loans).

          SECTION 4.05 Duties and Obligations of MLCC. In connection with the
Wholesale Lending Program, MLCC shall be responsible for (i) the negotiation, execution and
administration of contracts and agreements with the Wholesale Lenders, and (ii) administering and
monitoring the relationship with each Wholesale Lender. This responsibility shall include, but not
be limited to, approving Persons to become Wholesale Lenders (subject to Cendant’s consent, which
consent shall not be unreasonably withheld), entering into agreements in substantially the forms
attached hereto as Exhibits B and C with such new Wholesale Lender (provided that Cendant may, from
time to time, make reasonable requests of MLCC to change such form of agreements (provided such
requests would comply with all Applicable Requirements), and MLCC shall in good faith consider such
requests). MLCC shall ensure that each contract or agreement entered into by it with a Wholesale
Lender shall contain the right of MLCC to terminate such contract or agreement without cause upon
thirty (30) days’ notice (in

2

 

the case of a Correspondent Lender) or fifteen (15) days’ notice (in the case of a Mortgage
Broker). MLCC shall be responsible for providing any and all legal guidance and support in
connection with its responsibilities contained in this paragraph, but not otherwise. MLCC shall
have no obligation or responsibility to provide any legal support with respect to any particular
Loan.

          SECTION 4.06 Annual Cendant Survey. Not more than once per year, Cendant
shall have the right to send to all Wholesale Lenders a performance survey. At least thirty (30)
days prior to sending any such surveys to Wholesale Lenders, Cendant shall provide MLCC a copy of
such survey and upon review of such survey, MLCC may request, and Cendant shall make, reasonable
changes to the form and content of such survey. Cendant shall promptly provide to MLCC copies of
the results of any such survey and any summaries thereof, as well as copies of Wholesale Lender
report cards produced by Cendant on a quarterly basis.

          SECTION 4.07 Adjustment of Fees. If, upon the sixth-month anniversary of the
Effective Date, and if, upon the end of each subsequent sixth-month period, there has been a
material increase (compared with the date sixth months prior) in either (i) the number of Loans
originated and/or purchased pursuant to the Wholesale Lending Program and this Addendum or (ii) the
number of Wholesale Lenders, then Cendant may propose an adjustment to the fees payable to it
pursuant to Sections 2.02 and 3.02 hereof. MLCC agrees to consider such proposal in good faith,
provided that Cendant provides, upon the request of MLCC, documentation evidencing such material
increase. As of the date of this Addendum, there are approximately [* * *] Correspondent Lenders
and approximately [* * *] Mortgage Brokers. MLCC hereby agrees that in connection with its
responsibilities to administer the relationships with all Wholesale Lenders, it shall not [* * *]
without the prior written consent of Cendant (such consent not to be unreasonably withheld).

          SECTION 4.08 Limitation of Fees. Cendant covenants and agrees that, except
for reasonable and customary third-party fees and those specifically set forth in Section
2.01(e)(iii), 2.01(e)(iv) or 3.01(d)(iii), it shall not charge any additional fees or charges to
the applicable Borrower or the applicable Wholesale Lender in connection with the closing,
underwriting or purchase of any Loan.

          SECTION 4.09 Degree of Care. Cendant agrees that it shall perform the
Correspondent Lending Services and the Mortgage Broker Services with no less degree of care than it
would exercise when performing such functions for its own account or benefit or for the account or
benefit of any third-party for which it provides similar services.

          SECTION 4.10 No Assignment. The parties hereto shall not assign all or any
part of their respective rights or obligations arising hereunder or delegate any duty other than as
permitted by this Addendum without first obtaining the written consent of the other party.

          SECTION 4.11 Governing Law. This Addendum shall be governed by, and
construed and in accordance with, the laws of the State of New York.

          SECTION 4.12 Lawful Conduct; Severability; Release. The parties hereto shall
not perform, or be expected to perform, any act hereunder that is, or is reasonably believed

 

	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

3

 

to be, in violation of any applicable local, state or federal rule or regulation. If any
provision of this Addendum is now or later in violation of any local, state or federal law, then
such provision shall be considered null and void for purposes of this Addendum with all other
provisions remaining in full force and effect. The parties agree to cooperate in good faith to
replace any such provision which is so rendered null and void with a substitute provision that
approximates as nearly as practicable the parties’ original substantive intent and that does not
violate any local, state or federal law. Each party expressly releases the other from any
liability in the event either of said parties cannot fulfill any obligation hereunder due to any
prohibition under local, state or federal laws pertaining to such obligation.

          SECTION 4.13 Amendments. This Addendum may be amended and any provision
hereof waived, but only in a writing signed by the party against whom such amendment or waiver is
sought to be enforced.

          SECTION 4.14 Captions. The headings and captions in this Addendum are for
ease of reference only and shall not be relied upon in construing any provision hereof.

          SECTION 4.15 Counterparts. This Addendum may be executed in any number of
counterparts. Each counterpart so executed shall be deemed an original, but all such counterparts
shall together constitute one and the same instrument.

          SECTION 4.16 Construction. This Addendum shall be construed fairly as to
both parties and not in favor of or against either party, regardless of which party prepared this
Addendum.

[SIGNATURES CONTAINED ON THE FOLLOWING PAGE]

4

 

     IN WITNESS WHEREOF, each of the undersigned parties has caused this Addendum to be duly
executed and delivered by one of its duly authorized officers, all as of the date first written
above.

	 	 	 	 	 
	 	CENDANT MORTGAGE CORPORATION

       d/b/a PHH MORTGAGE SERVICES

 	 
	 	By:  	/s/ Robert E. Groody
 	 
	 	 	Name     Robert E. Groody 	 
	 	 	Title:  	COO 	 
	 

	 	 	 	 	 
	 	MERRILL LYNCH CREDIT CORPORATION

 	 
	 	By:  	/s/ Donald J. McEnerney
 	 
	 	 	Name:  	Donald J. McEnerney 	 
	 	 	Title:  	Vice President 	 
	 

 

 

EXECUTION COPY

 

ORIGINATION ASSITANCE AGREEMENT

AMENDMENT NO. 1

By and Between

MERRILL LYNCH CREDIT CORPORATION

AND

CENDANT MORTGAGE CORPORATION

Dated as of

December 21, 2001

 

 

 

ORIGINATION ASSITANCE AGREEMENT

AMENDMENT NO. 1

          ORIGINATION ASSITANCE AGREEMENT AMENDMENT NO.1, dated as of December 21, 2001 and effective as
of July 1, 2001 (this “Amendment Agreement”), by and between MERRILL LYNCH CREDIT
CORPORATION, a Delaware corporation, with offices located at 4802 Deer Lake Drive East,
Jacksonville, Florida 32246 (“MLCC”), and CENDANT MORTGAGE CORPORATION d/b/a PHH Mortgage
Services, a New Jersey corporation, with offices located at 3000 Leadenhall Road, Mt. Laurel, New
Jersey 08504 (“Cendant”).

          WHEREAS, MLCC and Cendant are parties to an Origination Assistance Agreement, dated as of
December 15, 2000 (the “Origination Agreement”); and

          WHEREAS, each of MLCC and Cendant wishes to amend the Origination Agreement in order to
properly reflect the current relationship between the parties;

          NOW, THEREFORE, in consideration of the foregoing and the respective covenants and agreements
set forth in this Amendment Agreement, the parties hereto agree as follows:

          SECTION 1. Amendments to the Origination Agreement. The Origination Agreement is
hereby amended as follows:

     (a) Section 1(a). Section 1(a) of the Origination Agreement is amended by
deleting the terms “Alternative Loans” and “Mortgage Loans” in their entirety and replacing
such terms with the following:

“Alternative Loans” shall mean any of the types of Mortgage Loans listed on
Schedule 1 hereto, as the same may be amended from time to time by written agreement
between MLCC and Cendant.

“Mortgage Loan” means a domestic, consumer purpose, one-to-four-family
(including cooperatives and condominiums) residential purchase money or refinance
closed-ended mortgage loan or open-ended mortgage loan. The term “Mortgage Loan” as
used herein shall include, but not be limited to, Conforming Conventional Mortgage
Loans, Jumbo/Non-Conforming Mortgage Loans, PrimeFirst® Loans,
Construction Loans, Equity Access Loans, Three Year ARMs, and Five Year ARMs. This
definition is subject to the terms of 
Section 1(d).

Section 1(a) of the Origination Agreement is further amended by adding, in alphabetical order, the
following defined terms:

     “Five Year ARMs” means an adjustable rate Mortgage Loan for which the interest
rate is fixed for the first five (5) years thereof.

 

 

     “Non-Fixed Rate Equity Access Loan” means any Equity Access Loan that does not
have a fixed interest rate.

     “Three Year ARMs” means an adjustable rate Mortgage Loan for which the interest
rate is fixed for the first three (3) years thereof.

     (b) Section 3A (e). Section 3A (e) of the Origination Agreement is amended by
deleting such section in its entirety and replacing it with the following:

     (e) Conditional Marketing Period. (i) Subject to subparagraphs (ii) and (iii)
in this paragraph (e), until [* * *], MLCC shall be required to perform the Conditional
Marketing Obligations (as defined in paragraph (f) below).

     (ii) MLCC shall not be required to perform the Conditional Marketing Obligations in any
calendar year if, in the prior calendar year: (a) [* * *]; (b) PHH shall have (I)(A)
experienced [* * *] Survey Failure, in which case [* * *], (B) experienced [* * *] Survey
Failures, in which case [* * *], or (C) experienced [* * *] Survey Failures, in which case
[* * *], or (II) failed, at any time during such year, to comply with its obligations
contained in Sections 14(b) or (c) hereof or shall have failed to meet any of the standards
contained in Sections 14(b) or 14(c) hereof; or a “Market Change” shall have occurred.
“Market Change” in any given year shall mean [* * *]. In the event of a Market Change, the
applicable volume level referred to in clause (a) above shall be reduced by [* * *].

     (iii) In no event shall MLCC be required to perform any Conditional Marketing
Obligations following [* * *].”

     (c) Exhibit B. Exhibit B to the Origination Agreement is amended by deleting the text
of such exhibit in its entirety and replacing it with Exhibit B attached hereto.

     (d) Schedule 1. The Origination Agreement is hereby amended by adding Schedule 1
attached to this Amendment Agreement as Schedule 1 to the Origination Agreement.

          SECTION 2. Governing Law. This Amendment Agreement shall be governed by, and
construed in accordance with, the laws of the State of New York.

 

	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

          SECTION 3. Headings. The descriptive headings contained in this Agreement are
included for convenience of reference only and shall not affect in any way the meaning or
interpretation of this Agreement.

          SECTION 4. Counterparts. This Amendment Agreement may be executed (including by
facsimile transmission) in one or more counterparts, and by the different parties hereto in
separate counterparts, each of which when executed and delivered shall be deemed to be an original
but all of which taken together shall constitute one and the same agreement,

          SECTION 5. Ratification. Except as amended hereby, the Subservicing Agreement shall
remain unmodified and in full force and effect, and is hereby ratified and confirmed.

          SECTION 6. Defined Terms. Capitalized terms used and not otherwise defined herein
shall have the meanings ascribed thereto in the Origination Agreement.

 

 

          IN WITNESS WHEREOF, the parties hereto have caused this Amendment Agreement to be executed as
of the date first written above by their respective officers thereunto duly authorized.

	 	 	 	 	 
	 	MERRILL LYNCH CREDIT CORPORATION

 	 
	 	By:  	  /s/ Kevin O'Hanlon
 	 
	 	 	  Name:  	Kevin O' Hanlon 	 
	 	 	  Title:  	President 	 

	 	 	 	 	 
	 	CENDANT MORTGAGE CORPORATION

 	 
	 	By:  	  /s/ Robert E. Groody
 	 
	 	 	  Name:  	Robert E. Groody 	 
	 	 	  Title:  	Senior Vice President 	 
	 

 

 

February 1, 2002

Cendant Mortgage Corporation

d/b/a PHH Mortgage Services

3000 Leadenhall Road

Mt. Laurel, NJ 08054

          [* * *] 

Gentlemen:

          1. Reference is made to the Origination Assistance Agreement, dated as of December 15, 2000,
between Merrill Lynch Credit Corporation (“MLCC”) and Cendant Mortgage Corporation, d/b/a
PHH Mortgage Services (“Cendant”), as amended and supplemented (the “Origination
Agreement”). Reference is also made to the [* * *] initiative introduced by MLCC, as more
particularly described on Exhibit A hereto (the “[* * *]”). Initially capitalized terms
not defined herein have the meanings set forth in the Origination Agreement.

          2. As you know, MLCC announced that it will offer the [* * *] effective as of February 1,
2002. Cendant acknowledges that, pursuant to the terms of the Origination Agreement, Cendant is
responsible for providing Origination Services for and on behalf of MLCC with respect to Mortgage
Loans and that Cendant is compensated therefor. Cendant further acknowledges and agrees that the
[* * *] applies, as of the date hereof, to Mortgage Loans originated pursuant to the terms of the
Origination Agreement. Accordingly, Cendant acknowledges and agrees that in connection with [* *
*], Cendant shall [* * *].

          3. Cendant hereby agrees that it shall be fully responsible for any costs or expenses incurred
by it or MLCC that result from Cendant’s failure to [* * *]. MLCC shall have no obligation
whatsoever to reimburse or otherwise pay to Cendant any such amounts [* * *].

          4. MLCC shall have the right to publicize and advertise to its clients [* * *]

          5. The Origination Agreement is hereby supplemented by the terms of this letter agreement.
Cendant agrees that it shall carry out all its obligations contained in this letter agreement
strictly in accordance with the terms of the Origination Agreement. Except as supplemented by this
letter agreement, the Origination Agreement shall remain unmodified and in full force and effect,
and is hereby ratified and confirmed.

 

	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

          6. This letter agreement may be executed in separate counterparts, each of which shall be
deemed an original, but such counterparts shall constitute one and the same instrument. This
letter agreement shall be governed by, and construed in accordance with, the laws of the State of
New York.

* * * * * *

If you are in agreement with the foregoing, please acknowledge such agreement by signing in the
space below and returning to us the enclosed duplicate of this letter agreement.

	 	 	 	 	 
	 	Yours truly,

MERRILL LYNCH CREDIT CORPORATION

 	 
	 	By:  	  /s/ Kevin O'Hanlon
 	 
	 	 	  Name:  	Kevin O'Hanlon 	 
	 	 	  Title:  	President 	 
	 

Acknowledged and agreed to as

of the 1st day of February, 2002.

CENDANT MORTGAGE CORPORATION

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

2

 

          6. This letter agreement may be executed in separate counterparts, each of which shall be
deemed an original, but such counterparts shall constitute one and the same instrument. This
letter agreement shall be governed by, and construed in accordance with, the laws of the State of
New York.

* * * * * *

If you are in agreement with the foregoing, please acknowledge such agreement by signing in the
space below and returning to us the enclosed duplicate of this letter agreement.

	 	 	 	 	 
	 	Yours truly,

MERRILL LYNCH CREDIT CORPORATION

 	 
	 	By:  	 	 
	 	 	  Name:  	Kevin O'Hanlon 	 
	 	 	  Title:  	President 	 
	 

Acknowledged and agreed to as

of the 1st day of February, 2002.

CENDANT MORTGAGE CORPORATION

	 	 	 	 	 	 	 
	By:	 	  /s/ Robert E. Groody	 	 
	 	 	 	 	 
	 

	 	  Name:
	 	Robert E. Groody	 	 
	 

	 	  Title:
	 	Senior Vice President	 	 

3

 

EXECUTION COPY

 

ADDENDUM AGREEMENT NO.2

TO ORIGINATION ASSISTANCE AGREEMENT

By and Between

MERRILL LYNCH CREDIT CORPORATION

and

CENDANT MORTGAGE CORPORATION

Dated as of

September [30], 2002

 

4

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	Article I
	 	 	 	 
	 
	 	 	 	 
	DEFINITIONS; INCORPORATION INTO AGREEMENT
	 	 	 	 
	 
	 	 	 	 
	SECTION 1.01 Definitions
	 	 	2	 
	 
	 	 	 	 
	SECTION 1.02 Incorporation of Second Addendum
	 	 	3	 
	 
	 	 	 	 
	SECTION 1.03 Ratification
	 	 	3	 
	 
	 	 	 	 
	Article II
	 	 	 	 
	 
	 	 	 	 
	THE FA GUARANTEE PROGRAM
	 	 	 	 
	 
	 	 	 	 
	SECTION 2.01 Additional Origination Services
	 	 	3	 
	 
	 	 	 	 
	SECTION 2.02 Compliance with Law
	 	 	3	 
	 
	 	 	 	 
	SECTION 2.03 Duties and Obligations of MLCC
	 	 	3	 
	 
	 	 	 	 
	Article III
	 	 	 	 
	 
	 	 	 	 
	GENERAL PROVISIONS
	 	 	 	 
	 
	 	 	 	 
	SECTION 3.01 No Assignment
	 	 	4	 
	 
	 	 	 	 
	SECTION 3.02 Governing Law
	 	 	4	 
	 
	 	 	 	 
	SECTION 3.03 Lawful Conduct; Severability; Release
	 	 	4	 
	 
	 	 	 	 
	SECTION 3.04 Amendments
	 	 	5	 
	 
	 	 	 	 
	SECTION 3.05 Captions
	 	 	5	 
	 
	 	 	 	 
	SECTION 3.06 Counterparts
	 	 	5	 
	 
	 	 	 	 
	SECTION 3.07 Construction
	 	 	5	 
	 
	 	 	 	 
	SECTION 3.08 Indemnification
	 	 	5	 
	 
	 	 	 	 
	Exhibit A — Form of FA Agreement
	 	 	 	 
	Exhibit B — Financial Advisor Mortgage Guarantee Program Description
	 	 	 	 
	Exhibit C — Form of Guaranty
	 	 	 	 
	Exhibit D — Deed of Trust/Mortgage Rider
	 	 	 	 

 i 

 

 

ADDENDUM AGREEMENT NO. 2 TO ORIGINATION

ASSISTANCE AGREEMENT

          ADDENDUM AGREEMENT NO. 2 TO ORIGINATION ASSISTANCE AGREEMENT, dated as of September
[30], 2002 and effective as of January 1, 2002 (the “Effective Date”) (this “Second
Addendum”), between MERRILL LYNCH CREDIT CORPORATION, a Delaware corporation, with offices located
at 4802 Deer Lake Drive East, Jacksonville, Florida 32246 (“MLCC”), and CENDANT MORTGAGE
CORPORATION d/b/a PHH Mortgage Services, a New Jersey corporation, with offices located at 3000
Leadenhall Road, Mt. Laurel, New Jersey 08054 (“Cendant”).

W I T N E S S E T H:

          WHEREAS, MLCC and Cendant are parties to that certain Origination Assistance Agreement, dated
as of December 15, 2000 (as amended, the “Origination Agreement”);

          WHEREAS, MLCC and Cendant are parties to that certain Addendum Agreement No. 1 to Origination
Assistance Agreement, dated as of November 30, 2001 (the “First Addendum”);

          WHEREAS, MLCC and Cendant are parties to that certain California Addendum to Origination
Assistance Agreement, dated as of October 19, 2001 (the “California Addendum”);

          WHEREAS, Cendant is willing to, and MLCC desires Cendant to, provide MLCC certain support
services with respect to the FA Guarantee Program (as defined below); and

          WHEREAS, each of MLCC and Cendant desire to supplement the Origination Agreement with the
terms and provisions set forth in this Second Addendum in order to reflect their agreement with
respect to the services to be provided by Cendant to MLCC with respect to the FA Guarantee Program;

          NOW, THEREFORE, in consideration of the premises and the mutual agreements and covenants contained
herein and in the Origination Agreement and for other good and valuable consideration, MLCC and
Cendant hereby agree as follows:

 

 

ARTICLE I

DEFINITIONS;

INCORPORATION INTO AGREEMENT

          SECTION 1.01 Definitions. Unless otherwise defined herein, all initially capitalized
terms used in this Second Addendum shall have the meanings set forth for such terms in the
Origination Agreement, to which this Second Addendum shall be attached.

          (a) Certain Defined Terms. As used in this Second Addendum, the following terms shall
have the following meanings:

          “Borrower” means the individual or individuals obligated to repay a Mortgage Loan.

          “CA$H System” means the system described in Schedule A.

          “Deed of Trust/Mortgage Rider” means an agreement executed by a Qualified FA, a
generic/non-state specific form of which is attached hereto as Exhibit D (which form of agreement
may be amended from time to time by mutual agreement of MLCC and Cendant without a formal amendment
to this Second Addendum), which agreement sets forth, among other things, the Qualified
FAs’ agreement that any default under the FA Agreement shall constitute a default under the
Underlying Mortgage.

          “FA Agreement” means an agreement among the Qualified FA, MLGI and MLCC, a
generic/non-state specific form of which is attached hereto as Exhibit A (which form of agreement
may be amended from time to time by mutual agreement of MLCC and Cendant without a formal amendment
to this Second Addendum), which agreement sets forth, among other things, the terms and conditions
of the guarantee provided by MLGI on behalf of the Qualified FA with respect to the Underlying
Mortgage.

          “FA Guarantee Program” means the “Financial Advisor Mortgage Guarantee Program” as
described in Exhibit B attached hereto.

          “FA Guarantee Program Documentation” means, collectively, an FA Agreement, a Guaranty,
and a Deed of Trust/Mortgage Rider.

          “Guaranty” means a guaranty executed by MLGI in favor of MLCC, a generic/non-state
specific form of which is attached hereto as Exhibit C (which form of guaranty may be amended from
time to time by mutual agreement of MLCC and Cendant without a formal amendment to this Second
Addendum), which guaranty sets forth, among other things, the terms and conditions of the guarantee
provided by MLGI on behalf of the Qualified FA with respect to the Underlying Mortgage.

          “MLCC WebSite” means the web site owned and operated by Merrill Lynch & Co., Inc.
currently having a URL at http://www.ml.com, and any successor site thereof.

          “MLGI” means Merrill Lynch Group, Inc., or any successor group thereto.

2

 

          “Qualified FAs” means qualified Financial Advisors as described in Exhibit B attached
hereto.

          “Underlying Mortgage” means a PrimeFirst® Loan, a Three Year ARM, or a Five
Year ARM written through MLCC.

          SECTION 1.02 Incorporation of Second Addendum. Unless specifically addressed below,
all terms and conditions, representations and warranties, and rights, obligations and covenants of
Cendant and MLCC set forth in the Origination Agreement shall apply or shall be deemed to be given
or made, as the case may be, to Mortgage Loans originated pursuant to the terms of this Second
Addendum, and to the subject matter of the Second Addendum. Further, except as indicated below,
all references in the Origination Agreement to “Origination Services” shall be deemed to include
the services described in Section 2.01 below, and all references in the Origination Agreement to a
“Mortgage Loan” shall be deemed to include a reference to the Mortgage Loans originated pursuant to
the terms of this Second Addendum. As such, the parties hereto agree that they shall peform their
obligations hereunder in accordance with the terms of the Origination Agreement.

          SECTION 1.03 Ratification. The Origination Agreement is hereby supplemented by the
terms and conditions of this Second Addendum. Except as supplemented by this Second Addendum, the
First Addendum, the Second Addendum and the California Addendum, the Origination Agreement shall
remain unmodified and in full force and effect, and is hereby ratified and confirmed.

ARTICLE II

THE FA GUARANTEE PROGRAM

          SECTION 2.01 Additional Origination Services. Cendant acknowledges and agrees that
it performs, on behalf of MLCC, Origination Services with respect to Underlying Mortgages pursuant
to and in accordance with the terms of the Origination Agreement. In addition to such services, on
and after the Effective Date, Cendant hereby agrees that if the potential Borrower with respect to
an Underlying Mortgage is a Qualified FA and such Qualified FA desires to participate in the FA
Guarantee Program, Cendant shall (i) obtain confirmation from the MLCC WebSite that such potential
Borrower is a Qualified FA, (ii) provide electronic notification to MLCC that such borrower desires
to participate in the FA Guarantee Program and that the MLCC Website indicates that such potential
Borrower is a Qualified FA, such notification to be provided by Cendant in such a manner as to
provide sufficient time to allow MLCC to comply with its obligations under Section 2.03, and (iii)
on behalf of MLCC, have executed and delivered at or prior to the closing of the Underlying
Mortgage the Deed of Trust/Mortgage Rider.

          SECTION 2.02 Compliance with Law. Cendant shall ensure that all Underlying Loans
shall be closed in accordance with all Applicable Requirements.

          SECTION 2.03 Duties and Obligations of MLCC. Upon receipt of a notification
described in Section 2.01, MLCC shall prepare and have fully executed, prior to

3

 

closing, a Guaranty and an FA Agreement for the Qualified FA. Upon receipt of the fully
executed Guaranty and FA Agreement, MLCC will indicate in the CA$H System that such documents have
been executed and will forward copies of the executed documents to Cendant. In addition, MLCC
shall prepare the Deed of Trust/Mortgage Rider and provide such document to Cendant for inclusion
with the closing documents. In connection with the FA Guarantee Program, MLCC shall be responsible
for (i) administering and maintaining the relationship with the Qualified FAs and (ii) ensuring
that the FA Guarantee Program Documentation is at all times legally sufficient to create the
obligations intended to be created thereby and to bind the parties intended to be bound thereby.
MLCC shall be responsible for providing any and all legal guidance and support in connection with
its responsibilities contained in this paragraph, but not otherwise. MLCC shall have no obligation
or responsibility to provide legal support with respect to any particular Underlying Mortgage.
Notwithstanding the foregoing, to the extent that MLCC receives and holds any amounts derived from
a Guaranty or an FA Agreement with respect to a Borrower, and Cendant has scheduled a foreclosure
sale on the property securing such Borrower’s Mortgage Loan, MLCC shall timely provide bidding
instructions to Cendant with respect to such foreclosure sale. MLCC shall be solely responsible
for collecting any sums due from MLGI under the Guaranty and MLCC and MLGI shall be solely
responsible for collecting any sums due from the Borrower under the FA Agreement. MLCC shall at
all times during the term of the Origination Agreement maintain sufficient levels of staffing and
resources necessary to comply with this Section 2.03.

ARTICLE III

GENERAL PROVISIONS

          SECTION 3.01 No Assignment. The parties hereto shall not assign all or any part of
their respective rights or obligations arising hereunder or delegate any duty other than as
permitted by this Second Addendum without first obtaining the written consent of the other party.

          SECTION 3.02 Governing Law. This Second Addendum shall be governed by, and construed
and in accordance with, the laws of the State of New York.

          SECTION 3.03 Lawful Conduct; Severability; Release. The parties hereto shall not
perform, or be expected to perform, any act hereunder that is, or is reasonably believed to be, in
violation of any applicable local, state or federal rule or regulation. If any provision of this
Second Addendum is now or later in violation of any local, state or federal law, then such
provision shall be considered null and void for purposes of this Second Addendum with all other
provisions remaining in full force and effect. The parties agree to cooperate in good faith to
replace any such provision which is so rendered null and void with a substitute provision that
approximates as nearly as practicable the parties’ original substantive intent and that does not
violate any local, state or federal law. Each party expressly releases the other from any
liability in the event either of said parties cannot fulfill any obligation hereunder due to any
prohibition under local, state or federal laws pertaining to such obligation.

4

 

          SECTION 3.04 Amendments. This Second Addendum may be amended and any provision
hereof waived, but only in a writing signed by the party against whom such amendment or waiver is
sought to be enforced.

          SECTION 3.05 Captions. The headings and captions in this Second Addendum are for
ease of reference only and shall not be relied upon in construing any provision hereof.

          SECTION 3.06 Counterparts. This Second Addendum may be executed in any number of
counterparts. Each counterpart so executed shall be deemed an original, but all such counterparts
shall together constitute one and the same instrument.

          SECTION 3.07 Construction. This Second Addendum shall be construed fairly as to both
parties and not in favor of or against either party, regardless of which party prepared this Second
Addendum.

          SECTION 3.08 Indemnification. (a) Provided that Cendant has fulfilled its
obligations hereunder, MLCC agrees to indemnify, defend and hold harmless Cendant and its officers,
directors, employees, agents, attorneys, members and shareholders from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, claims, costs,
expenses and disbursements of any kind or nature whatsoever (including without limitation
reasonable attorneys’ fees and disbursements in connection with any investigative, administrative
or judicial proceeding) imposed on, incurred by or asserted against Cendant, whether brought under
common law or in equity, or in contract, tort or otherwise, relating to the performance by Cendant
of its obligations under this Second Addendum.

[SIGNATURES CONTAINED ON THE FOLLOWING PAGE]

5

 

          IN WITNESS WHEREOF, each of the undersigned parties has caused this Second Addendum to be duly
executed and delivered by one of its duly authorized officers, all as of the date first written
above.

	 	 	 	 	 	 	 
	 	 	CENDANT MORTGAGE CORPORATION

  d/b/a PHH MORTGAGE SERVICES	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Gregory A. Gentek	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Gregory A. Gentek	 	 
	 

	 	 	 	Title: Senior V.P.	 	 
	 
	 	 	 	 	 	 
	 	 	MERRILL LYNCH CREDIT

  CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Kevin O’Hanlon	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

 

 

 

ORIGINATION ASSISTANCE AGREEMENT

AMENDMENT NO. 2

By and Between

MERRILL LYNCH CREDIT CORPORATION

AND

CENDANT MORTGAGE CORPORATION

Dated as of

December 29, 2002

 

 

 

ORIGINATION ASSITANCE AGREEMENT

AMENDMENT NO. 2

          ORIGINATION ASSITANCE AGREEMENT AMENDMENT NO. 2, dated as of December 29, 2002, by and between
MERRILL LYNCH CREDIT CORPORATION, a Delaware corporation, with offices located at 4802 Deer Lake
Drive East, Jacksonville, Florida 32246 (“MLCC”), and CENDANT MORTGAGE CORPORATION d/b/a
PHH Mortgage Services, a New Jersey corporation, with offices located at 3000 Leadenhall Road, Mt.
Laurel, New Jersey 08504 (“Cendant”).

          WHEREAS, MLCC and Cendant are parties to an Origination Assistance Agreement, dated as of
December 15, 2000 (together with all modifications, supplements, and amendments thereto as of the
date hereof, including, but not limited to, that certain California Addendum to Origination
Assistance Agreement entered into effective as of the 19th day of October, 2001, that
certain Addendum Agreement No. 1 to Origination Assistance Agreement dated as of November 30, 2001,
that certain Amendment No. 1 dated as of December 21, 2001, and that certain Addendum Agreement No.
2 to Origination Assistance Agreement dated September 30, 2002 (collectively, the “Origination
Agreement”)); and

          WHEREAS, each of MLCC and Cendant wishes to amend the Origination Agreement in order to
properly reflect the current relationship between the parties;

          NOW, THEREFORE, in consideration of the foregoing and the respective covenants and agreements
set forth in this Amendment Agreement, the parties hereto agree as follows:

          SECTION 1. Amendment to the Origination Agreement. Section 17 of the Origination
Agreement is hereby amended by adding the following additional representation and warranty:

	 	(u)	 	No Mortgage Loan: (a) is subject to Section 226.32 of Regulation Z or any similar
state or local law (relating to high interest rate credit/lending transactions); (b)
includes any single premium credit life or accident and health insurance or disability
insurance; or (c) contains any term or condition, or involves any loan origination
practice, that has been defined as “predatory”, “covered”, or “threshold” under any
applicable federal, state, or local law, and in such context has been expressly
categorized as an “unfair” or “deceptive” term, condition, or practice in any applicable
federal, state, or local law dealing with “predatory” or “high cost” mortgage lending.

          SECTION 2. Governing Law. This Amendment Agreement shall be governed by, and
construed in accordance with, the laws of the State of New York.

          SECTION 3. Headings. The descriptive headings contained in this Amendment Agreement
are included for convenience of reference only and shall not affect in any way the meaning or
interpretation of this Amendment Agreement.

 

 

          SECTION 4. Counterparts. This Amendment Agreement may be executed (including by
facsimile transmission) in one or more counterparts, and by the different parties hereto in
separate counterparts, each of which when executed and delivered shall be deemed to be an original
but all of which taken together shall constitute one and the same agreement.

          SECTION 5. Ratification. Except as amended hereby, the Origination Agreement shall
remain unmodified and in full force and effect, and is hereby ratified and confirmed.

          SECTION 6. Defined Terms. Capitalized terms used and not otherwise defined herein
shall have the meanings ascribed thereto in the Origination Agreement.

          IN WITNESS WHEREOF, the parties hereto have caused this Amendment Agreement to be executed as
of the date first written above by their respective officers thereunto duly authorized.

	 	 	 	 	 	 	 
	 	 	MERRILL LYNCH CREDIT CORPORATION  
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Kevin O’Hanlon	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Kevin O’Hanlon	 	 
	 

	 	Title:
	 	President, Chairman and CEO	 	 
	 
	 	 	 	 	 	 
	 	 	CENDANT MORTGAGE CORPORATION
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert E. Groody	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Robert Groody	 	 
	 

	 	Title:
	 	Chief Operating Officer	 	 

 

 

EXECUTION COPY

 

AMENDMENT NO. 1 TO ADDENDUM AGREEMENT NO. 1

TO ORIGINATION ASSISTANCE AGREEMENT

By and Between

MERRILL LYNCH CREDIT CORPORATION

and

CENDANT MORTGAGE CORPORATION

Dated as of

October 18, 2004

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	Article I
	 	 	 	 
	 
	 	 	 	 
	DEFINITIONS; INCORPORATION INTO ADDENDUM NO.1
	 	 	 	 
	 
	 	 	 	 
	SECTION 1.01 Definitions
	 	 	1	 
	 
	 	 	 	 
	SECTION 1.02 Incorporation of Amendment No. 1
	 	 	3	 
	 
	 	 	 	 
	SECTION 1.03 Ratification
	 	 	3	 
	 
	 	 	 	 
	Article II
	 	 	 	 
	 
	 	 	 	 
	GENERAL PROVISIONS
	 	 	 	 
	 
	 	 	 	 
	SECTION 2.01 MLCC Responsibilities
	 	 	3	 
	 
	 	 	 	 
	SECTION 2.02 Cendant Responsibilities
	 	 	4	 
	 
	 	 	 	 
	SECTION 2.03 Bulk Sale Program Fees
	 	 	6	 
	 
	 	 	 	 
	SECTION 2.04 Number of Wholesale Lenders
	 	 	7	 
	 
	 	 	 	 
	SECTION 2.05 Delivery of Bulk Sale Mortgage Files
	 	 	7	 
	 
	 	 	 	 
	SECTION 2.06 Non-Solicitation; Non-Competition
	 	 	7	 
	 
	 	 	 	 
	SECTION 2.07 Tax and Flood Service Contracts
	 	 	7	 
	 
	 	 	 	 
	SECTION 2.08 Term
	 	 	8	 

 

 

AMENDMENT NO. 1 TO ADDENDUM AGREEMENT NO. 1 TO

ORIGINATION ASSISTANCE AGREEMENT

          AMENDMENT NO. 1 TO ADDENDUM AGREEMENT NO. 1 TO ORIGINATION ASSISTANCE AGREEMENT (this
“Amendment No. 1”), dated as of October 18, 2004, between MERRILL LYNCH CREDIT CORPORATION,
a Delaware corporation, with offices located at 4802 Deer Lake Drive East, Jacksonville, Florida
32246 (“MLCC”), and CENDANT MORTGAGE CORPORATION d/b/a PHH Mortgage Services, a New Jersey
corporation, with offices located at 3000 Leadenhall Road, Mt. Laurel, New Jersey 08054
(“Cendant”).

W I T N E S S E T H:

          WHEREAS, MLCC and Cendant are parties to that certain Origination Assistance Agreement, dated
as of December 15, 2000 as previously modified by, including and not limited to that certain
Addendum Agreement No. 1 to Origination Assistance Agreement, dated as of November 30, 2001
(“Addendum No. 1”); and

          WHEREAS, Cendant is willing to, and MLCC desires Cendant to, provide MLCC certain additional
support services for MLCC’s Bulk Sale Program (as hereafter defined); and

          WHEREAS, each of MLCC and Cendant desires to amend, modify and/or supplement Addendum No. 1
with the terms and provisions set forth in this Amendment No. 1 in order to reflect their agreement
with respect to the additional services to be provided by Cendant for MLCC’s Bulk Sale Program;

          NOW, THEREFORE, in consideration of the premises which are incorporated herein by this
reference and the mutual agreements and covenants hereinafter set forth, MLCC and Cendant hereby
agree as follows:

ARTICLE I

DEFINITIONS;

INCORPORATION INTO ADDENDUM NO.1

          SECTION 1.01 Definitions. Unless otherwise defined herein, all initially capitalized
terms used in this Amendment No. 1 shall have the meanings set forth for such terms in Addendum No.
1, to which this Amendment No. 1 shall be attached.

          (a) Certain Defined Terms. As used in this Amendment No. 1, the following terms shall
have the following meanings:

          “Alternative Wholesale Product” means (i) any Mortgage Loan product currently
available in the Cendant wholesale product offering that is not available in the MLCC wholesale
product offering and (ii) any other Mortgage Loan product as determined on a case by case basis by
the parties hereto.

 

 

          “Bulk Purchase” means the purchase of any Standard Bulk Product or Non-Standard Bulk
Product.

          “Bulk Sale Mortgage File” means, collectively, with respect to any Bulk Sale Program
Mortgage Loan, the microfiche copies and/or hard copies and/or imaging copies (and/or copies in any
other media or format) of the following documents: (a) the Mortgage Note; (b) the recorded Mortgage
or other deed, mortgage or any other instrument which constitutes a first lien on the Mortgaged
Property securing payment by a Mortgagor of a Mortgage Note; (c) the recorded assignment to MLCC,
if any; (d) all related intervening assignments of mortgage, if any; (e) the original mortgagee
policy of title insurance, including riders and endorsements thereto (required to have the first
page with recording information and property location); (f) adjustable rate mortgage rider
certificates, if applicable; (g) appraisal of related Mortgaged Property; (h) mortgage insurance
certificates, if applicable; (i) HUD1; (j) flood certification; (k) any applicable riders to the
Mortgage Notes; (1) final truth-in-lending documents; (m) consolidation and extension documents for
modifications; (n) if the Mortgage Note or Mortgage or any other material document or instrument
relating to the Mortgage Loan has been signed by a person on behalf of the Mortgagor, the original
or copy of power of attorney or other instrument that authorized and empowered such person to sign
bearing evidence that such instrument has been recorded, if so required in the appropriate
jurisdiction where the Mortgaged Property is located; (o) primary insurance policy; (p) the
original of any guarantee executed in connection with the Mortgage Note; (q) the original of any
security agreement, chattel mortgage or equivalent document executed in connection with the
Mortgage; and (r) for co-op loans, (A) any original Form UCC-1 and any continuation statements with
evidence of filing thereon entered into by the Mortgagor with respect to such co-op loan (or a
recorded copy thereof); (B) Form UCC-3 (or copy thereof) assigning the security interest covered by
such Form UCC-1 pursuant to (A) above, together with all Forms UCC-3 (or copies thereof) showing a
complete chain of assignment from the originator of the related co-op loan to the Correspondent
Lender, if applicable; (C) the co-op lease, any assignment of the co-cop lease to the Correspondent
Lender and all intervening assignments; and (D) the recognition agreement.

          “Bulk Sale Origination Assistance Fee” shall have the meaning given in Section 2.03(a)
of this Amendment No. 1.

          “Bulk Sale Program” means the program pursuant to which MLCC is making Bulk Purchases
of Mortgage Loans from Correspondent Lenders pursuant to the Bulk Sale Addenda between MLCC and
such Correspondent Lenders.

          “Closing Date” means, with respect to any Mortgage Loan, the date upon which such
Mortgage Loan is purchased by MLCC.

          “New Correspondent Lender” means any Correspondent Lender other than a Seasoned
Correspondent Lender.

          “Non-Standard Bulk Product” means any of the Alternative Wholesale Products and/or any
Portfolio Loans originated other than in accordance with MLCC Underwriting Guidelines.

 

 

          “Provisions Against Solicitation” shall have the meaning given in Section 6 of the
Master Loan Purchase and Sale Agreement between MLCC and the Correspondent Lender.

          “Quality Control” shall mean a full-file re-underwriting which will include, but not
be limited to, income credit, data integrity, legal and compliance review and property valuation.

          “Seasoned Correspondent Lender” means any Correspondent Lender that has sold to MLCC
at least three (3) Mortgage Loan pool deliveries with consistent and acceptable due diligence
results (determined in MLCC’s sole discretion).

          “Securitization Assistance Fee” shall have the meaning given in Section 2.03(b) of
this Amendment No. 1.

          “Standard Bulk Product” means any of the Portfolio Loans originated in accordance with
MLCC Underwriting Guidelines.

          “Trailing Documents” means any document identified above in subpart (b), (c), (d),
(e), (f), (m), (n), (q), or (r) of the definition of Bulk Sale Mortgage File that has not been
delivered within 120 days of the related Closing Date, unless such delivery was not completed
within 120 days of the related Closing Date solely due to delays in making such delivery by reason
of the fact that such documents shall not have been returned by the appropriate recording office.

          SECTION 1.02 Incorporation of Amendment No. 1. Unless specifically addressed below,
all terms and conditions, representations and warranties, rights, obligations and covenants of
Cendant and MLCC set forth in Addendum No. 1 shall apply or shall be deemed to be given or made, as
the case maybe, to Mortgage Loans originated, and/or purchased pursuant to the terms of this
Amendment No. 1, and to the subject matter of this Amendment No. 1. Further, all references in
Addendum No. 1 to a “Mortgage Loan” shall be deemed to include a reference to the Mortgage Loans
originated and/or purchased pursuant to the terms of this Amendment No. 1. To the extent that
there is a conflict between the terms of this Amendment No. 1 and those of Addendum No. 1, the
terms of this Amendment No. 1 shall control,

          SECTION 1.03 Ratification. Addendum No. 1 is hereby supplemented by the terms and
conditions of this Amendment No. 1. Except as supplemented by this Amendment No. 1, Addendum No. 1
shall remain unmodified and in full force and effect and is hereby ratified and confirmed. In
addition to any rights and obligations set forth in Addendum No. 1, the parties hereto shall
further be subject to all rights and obligations of this Amendment No. 1.

ARTICLE II

GENERAL PROVISIONS

          SECTION 2.01 MLCC Responsibilities. For each Bulk Sale Program Mortgage Loan
Purchase, MLCC shall have the following responsibilities:

          (a) Correspondent Lender Approval; Contracts; Bidding. MLCC will be responsible for
approving each Correspondent Lender and contract negotiation and

 

 

administration. Within 30 days of execution, MLCC will furnish Cendant with copies of its
Correspondent Lender contracts and any amendments thereto. Further, MLCC shall calculate pricing
and bid determination for each Bulk Purchase.

          (b) Due Diligence and Quality Control. For Standard Bulk Products only, MLCC will
perform or cause to be performed the necessary due diligence and Quality Control procedures for New
Correspondent Lenders; for Non-Standard Bulk Products, MLCC will perform or cause to be performed
the necessary due diligence and Quality Control procedures for both Seasoned Correspondent Lenders
and New Correspondent Lenders. In addition, MLCC will facilitate all pre-funding mortgage pool due
diligence through such third parties as MLCC may select for both Standard Bulk Products and
Non-Standard Bulk Products.

          (c) Compliance Review. MLCC will, or at MLCC’s option, will contract with a third
party due diligence vendor to ensure that each Correspondent Lender has provided each borrower with
all federal, state and local disclosure documentation. This Section 2.01(c) shall not diminish
Cendant’s obligations under Addendum No. 1 as to Mortgage Loans outside the scope of this Amendment
No. 1.

          (d) Funding and Settlement Procedures. MLCC will perform or cause to be performed the
funding and settlement procedures with respect to any Bulk Purchase. In connection therewith, MLCC
shall also be responsible for the review and delivery of notes and assignments to the custodian.

          (e) Mortgage Loan Repurchases. MLCC may enforce repurchases of Mortgage Loans by the
Correspondent Lenders for breaches of covenants, representations and warranties based on
information provided by Cendant pursuant to Section 2.02 hereof.

          SECTION 2.02 Cendant Responsibilities. Cendant shall be responsible for supporting
the Bulk Sale Program. In particular, for each Bulk Sale Program Mortgage Loan Purchase, Cendant
shall have the following responsibilities:

          (a) Systems Requirements. Cendant will be responsible for systems coordination on
each of the following programs: (i) the CA$H program registration; and (ii) Alltel boarding and
(iii) First Data (with respect to backfill of data). In addition, the parties have identified the
following system development initiatives and have agreed to proceed as follows:

     (i) Alternative Wholesale Product Support. At MLCC’s direction, Cendant agrees
to develop “shell product” functionality in CA$H that will support the Mortgage Loan
products contemplated in subsection (ii) of the definition of Alternative Wholesale Product
above. Cendant will make the shell product functionality available to MLCC no later than
six weeks after MLCC delivers complete product specifications of each such Alternative
Wholesale Product, or within such other time frame as the parties may agree as to each such
Alternative Wholesale Product. MLCC agrees to pay Cendant $[* * *]; and

 

		
	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.	 

 

 

     (ii) CA$H Interface. Cendant agrees to develop an automated CA$H
interface to be used for the purpose of receiving bid and settlement files from
Correspondent Lenders on MLCC’s behalf. The interface will be made available for MLCC’s use
within[* * *]. MLCC agrees to reimburse Cendant for its actual, documented cost of
developing the interface for MLCC contingent upon (y) MLCC’s approval of a budget and
payment schedule prior to the commencement of work and (z) the parties’ mutual agreement
upon a cost adjustment factor that will be applied as a credit against the amount to be
reimbursed hereunder and that takes into account the residual value to Cendant of the CA$H
Interface when used by Cendant for purposes beyond the scope of this Amendment No. 1.

          (b) Defective Mortgage Loans. Cendant will notify MLCC of defective Mortgage Loans
subject to repurchase by Correspondent Lenders pursuant to the Correspondent Lending Guide within
[* * *] of discovery of such defective Mortgage Loans using a mutually agreed upon reporting format
or notice. A Defective Mortgage Loan is a Mortgage Loan which Cendant discovers during the
servicing of such Mortgage Loan is in violation of a representation, warranty or covenant made by
the applicable Correspondent Lender, including but not limited to a Mortgage Loan as to which a
Correspondent Lender has failed to deliver a Trailing Document within 270 days of the Closing Date.

          (c) Post-Funding Third Party Due Diligence and Quality Assurance. Within [* * *] of
the Closing Date, Cendant shall facilitate Quality Control using a mutually agreed upon sample size
(e.g., 10%) for Standard Bulk Products purchased from Seasoned Correspondent Lenders only. Within
[* * *] of the Closing Date, Cendant shall provide MLCC with loan level and summary information in
a mutually agreed upon format.

          (d) Trailing Documents. Cendant will be responsible for the retrieval, review and
delivery of any and all Trailing Documents. For [* * *] after the Closing Date, Cendant will make
a diligent effort to retrieve Trailing Documents and provide MLCC with monthly status reports
documenting said effort in a mutually agreed upon format. For purposes of this section, diligent
effort means that Cendant will at a minimum: [* * *]. To the extent that (i) a Bulk Sale Mortgage
File has Trailing Documents that have not been received within [* * *] of the Closing Date
(hereafter “Seriously Delinquent Trailing Document”), and (ii) MLCC chooses not to enforce a breach
with the related Correspondent Lender, then Cendant will attempt to obtain such Seriously
Delinquent Trailing Documents directly from the source at MLCC’s request.

          (e) Securitization and Whole Loan Sale Support. Cendant will provide securitization
and whole loan sale support upon reasonable advance notice by MLCC prior to a prospective
transaction (“Securitization Support”). Such support will include the following activities: (i)
delivery of Bulk Sale Mortgage Files to MLCC’s due diligence vendor(s) within [* * *] of request,
(ii) providing access to CMC employees and agents in accordance with Section 6(h) of the
Origination Agreement, (iii) receive and respond to loan level findings from MLCC’s due diligence
vendor within [* * *] of receipt and coordinate timely responses

 

		
	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.	 

 

 

to such, (iv) receive and respond to loan level data integrity findings from third parties (e.g.,
accounting firms) as applicable, within [* * *] of receipt of notice thereof, (v) timely review and
execution of applicable contracts, and (vi) timely preparation and delivery of assignments,
endorsements, and allonges to MLCC’s custodian. In the event additional support is required by
MLCC, Cendant agrees to reasonably cooperate to provide such support.

          (f) Quality Control Scorecards. Cendant will produce quality control scorecards
substantially in the form of Exhibit A attached hereto. Such quality control scorecards will
monitor performance and provide MLCC with quarterly reports as MLCC may specify from time to time.

          SECTION 2.03 Bulk Sale Program Fees.

          (a) Bulk Sale Origination Assistance Fees. MLCC shall pay Cendant the following
origination assistance fees (each, a “Bulk Sale Origination Assistance Fee”): (i) a loan
set-up fee of $[* * *] per Mortgage Loan that is loaded onto the CA$H system; (ii) a trailing
documents fee of $[* * *] per funded Mortgage Loan, whether or not there are any Trailing Documents
for any such Mortgage Loan; (iii) for Standard Bulk Products from Seasoned Correspondent Lenders
only, a data/credit/compliance review fee of $[* * *] per Mortgage Loan reviewed; and (iv)
reimbursement for actual out-of-pocket expenses incurred in connection with Quality Control and
other third party vendors. MLCC shall pay such amount to Cendant at the time of its purchase of
each such Mortgage Loan.

          (b) Securitization and Whole Loan Sale Assistance Fees. MLCC shall pay Cendant the
following securitization and whole loan sale assistance fees (each, a “Securitization
Assistance Fee”): (i) for Standard Bulk Products only, a non-agency securitization assistance
fee of $ [* * *] per Mortgage Loan and an agency securitization assistance fee of $[* * *] per
Mortgage Loan payable for each securitization containing Mortgage Loans acquired in Standard
Products or Non-Standard Products, (ii) for Non-Standard Bulk Products only, a non-agency
securitization assistance fee of $[* * *] per Mortgage Loan and an agency securitization assistance
fee of $[* * *] per Mortgage Loan payable for each securitization containing Mortgage Loans
acquired in Standard Products or Non-Standard Products, and (iii) for whole loan sale transactions,
a whole loan sale support fee of $[* * *]. [* * *]

          (c) Seriously Delinquent Trailing Document Fee. For each Mortgage Loan containing
Seriously Delinquent Trailing Documents, MLCC shall pay Cendant a fee of $[* * *] per Mortgage
Loan, plus [* * *]. Such fee shall become payable upon receipt and delivery of the applicable
documents for any particular Mortgage Loan.

          (d) Adjustment to Fees. [* * *]

          SECTION 2.04 Number of Wholesale Lenders. Notwithstanding anything to the contrary
in Section 4.07 of Addendum No. 1, MLCC may increase the number of Wholesale Lenders upon [* * *].
[* * *].

 

		
	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.	 

 

 

          SECTION 2.05 Delivery of Bulk Sale Mortgage Files. The Correspondent Lender is
responsible for the delivery of all Bulk Sale Mortgage Files to Cendant in accordance with Section
7.03 of the Amendment No. 1 to the Master Loan Purchase and Sale Agreement between MLCC and the
Correspondent Lender. MLCC and Cendant shall determine a mutually agreed upon delivery format for
each Correspondent Lender.

          SECTION 2.06 Non-Solicitation; Non-Competition.

          (a) Without MLCC’s prior written consent, which may be withheld by MLCC in its sole
discretion, neither Cendant nor any of its affiliated entities shall solicit any Mortgagor, or
cause any Mortgagor to be solicited, for financing of any Mortgage Loan or any product or service
whatsoever that is offered by Merrill Lynch, Pierce, Fenner & Smith Incorporated or any of its
affiliated entities including, without limitation, any investment or financial services or
products, insurance products or services and brokerage account services. MLCC will cause each
Correspondent Lender to be bound by the Provisions Against Solicitation.

          (b) Without Cendant’s prior written consent, which may be withheld by Cendant in its sole
discretion, until after the expiration or earlier termination of this Amendment No. 1, neither MLCC
nor any of its affiliated entities shall enter into Wholesale Lender relationships with any of the
following: (i)[* * *], (ii) [* * *]with the sole exception of the Wholesale Lenders identified in
Exhibit C attached hereto, and (iii) any of the Wholesale Lenders identified in Exhibit B attached
hereto (the “Restricted Correspondent Lenders”). The foregoing notwithstanding, however,
it is agreed that MLCC may enter into Wholesale Lender relationships with the Restricted
Correspondent Lenders provided that the only Mortgage Loan products that shall be made available
to, or purchased from, such Restricted Correspondent Lenders shall be Mortgage Loans that are not
currently available to such Restricted Correspondent Lenders through Cendant.

          SECTION 2.07 Tax and Flood Service Contracts. All transfer fees related to the
transfer of any tax or flood service contracts on the Mortgage Loans will be paid by MLCC or the
Correspondent Lender.

          (a) The tax service contract fees are as follows, unless otherwise agreed by the parties: (i)
$[* * *] for any Mortgage Loan with no existing contract or with an existing contract that was not
issued by [* * *]; (ii) $[* * *] for certain bulk transfer loans (as of the date hereof, applicable
to[* * *]); and (iii) $[* * *] for any Mortgage Loan with[* * *], provided all of the
following data is provided: legal description, parcel number, tax contract number, tax service
provider vendor number, city tax monthly escrow amount, county tax monthly escrow amount, next tax
amount, next tax due date, last tax amount, and last tax due date.

          (b) The flood service contract fees are as follows, unless otherwise agreed by the parties:
(i) $[* * *] for any Mortgage Loan with no existing contract; (ii) $[* * *] for any Mortgage Loan
with [* * *]; and (iii) $[* * *] for certain bulk transfer loans (as of the date hereof, applicable
to [* * *]).

 

		
	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.	 

 

 

          SECTION 2.08 Term. The term of this Amendment No. 1 shall automatically expire on
December 31, 2005 (the “Initial Term”). Notwithstanding the foregoing, this Amendment No. 1 shall
be automatically extended, subject to the following sentence, without any action by the parties
hereto, for successive renewal terms of one year each, in each case beginning on January 1 of such
renewal year and ending as of the following December 31, until the expiration or earlier
termination of the Origination Agreement, at which time this Amendment No. 1 shall also terminate.
Either party may elect not to extend this Amendment No.1 by giving written notice to the other
party at least sixty (60) days prior to the expiration or termination, as the case may be, of
either the Initial Term or the current renewal term of this Amendment 1.

[SIGNATURES CONTAINED ON THE FOLLOWING PAGE]

 

 

          IN WITNESS WHEREOF, each of the undersigned parties has caused this Amendment No. 1 to be duly
executed and delivered by one of its duly authorized officers, all as of the date first written
above.

	 	 	 	 	 	 	 
	 	 	CENDANT MORTGAGE CORPORATION d/b/a

PHH MORTGAGE SERVICES
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert J. Smith	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Robert J. Smith	 	 
	 

	 	 	 	Title: Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	MERRILL LYNCH CREDIT CORPORATION.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Lawrence P. Washington	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Lawrence P. Washington	 	 
	 

	 	 	 	Title: Chairman and President	 	 

 

 

	 	 	 
	 

	 	Lawrence P. Washington
	 

	 	Chairman & Chief Executive Officer
	 

	 	Merrill Lynch Credit Corporation
	 
	 	 
	

	 	Merill Lynch Global Bank Group

	 	4802 Deer Lake Drive East
	 	Jacksonville, Florida 32246-6484
	 	904 218 6076
	 

	 	800 965 8654

VIA OVERNIGHT DELIVER SERVICE,

FACSIMILE No. (856) 917-9422, and

UNITED STATES CERTIFIED MAIL

January 24, 2005

	 	 	 
	Cendant Mortgage Corporation

3000 Leadenhall Road

Mt. Laurel, New Jersey 08054
	Attention:

	 	Robert C. Andwood
	 

	 	Mail Stop CS
	 

	 	Facsimile No.: (856) 917-6702

                Re: Origination Assistance Agreement — Amendment to Section 8

Dear Bob:

                We refer to the Origination Assistance Agreement, dated as of December 15, 2000, between the
undersigned, Merrill Lynch Credit Corporation (“MLCC”), and Cendant Mortgage Corporation (“CMC”)
(as amended, supplemented and modified as of the date hereof, the “Origination Agreement”).
Initially capitalized terms not defined herein shall have the meaning given such terms in the
Origination Agreement.

                In accordance with Section 8 of the Origination Agreement, MLCC hereby notifies CMC that MLCC
is amending the existing Exhibit A to the Origination Agreement (“Old Exhibit A”) by replacing Old
Exhibit A with a new Exhibit A, a copy of which is attached to this letter notification (“New
Exhibit A”). We note that the amendments effected by replacing Old Exhibit A with New Exhibit A
comply with the requirements of Section 8 of the Origination Agreement. Specifically, (i) such
amendment changes no more than ten Persons, (ii) the Persons added to the exhibit are Persons which
are Financial Services Firms, and (iii) Exhibit A to the Origination Agreement, as amended hereby,
does not contain more than twenty Persons.

	 	 	 
	 

	 	Very truly yours,
	 
	 	 
	 

	 	/s/ Lawrence P. Washington
	 
	 	 
	 

	 	Lawrence P. Washington

Chairman and CEO

 

 

Cendant Mortgage Corporation

January 21, 2005

Page 2

	 	 	 
	cc: Cendant Mortgage Corporation

General Counsel’s Office

3000 Leadenhall Road

Mt. Laurel, New Jersey 08054
	Attention:

	 	William F. Brown, General Counsel
	 

	 	Mail Stop LGL
	 

	 	Facsimile No.: (856) 917-0950

 

 

February 10, 2005

PHH Mortgage Corporation

3000 Leadenhall Road

Mt. Laurel, New Jersey 08054

               Re: Change of FARC Fee

Ladies and Gentlemen:

          Reference is made to that certain PHH Financial Advisor Resource Center Expense Reimbursement
letter agreement dated January 2, 2003 (the “FARC Letter”). Pursuant to the terms of the FARC
letter, this letter shall confirm that the monthly FARC Fee shall be changed from $[* * *] to $[* *
*], retroactively effective as of the first business day of January 2005 and for the six-month
period ending June 30, 2005.

          Except as modified above, the FARC Letter remains in full force and effect and is hereby
ratified by the parties hereto. Each party to this letter agreement shall take or otherwise cause
to be taken all such other action as may be necessary to implement the terms of this letter
agreement and the FARC Letter, and shall not take any action inconsistent herewith or therewith.
This letter agreement may be executed in counterparts, taken together, which shall constitute one
and the same instrument. Delivery of a counterpart of this letter agreement by facsimile shall be
as effective as delivery of a manually executed counterpart hereof.

          IN WITNESS WHEREOF, Merrill Lynch Credit Corporation and PHH Mortgage Corporation have caused
this letter agreement to be executed by their respective officers thereunto duly authorized.

	 	 	 	 	 	 	 
	 	 	MERRILL LYNCH CREDIT CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Lawrence P. Washington	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Lawrence P. Washington	 	 
	 

	 	 	 	Title: Chairman and President	 	 
	 
	 	 	 	 	 	 
	 	 	PHH MORTGAGE CORPORATION

  Formerly known as Cendant Mortgage 

  Corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Gregory A. Gentek	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Gregory A. Gentek	 	 
	 

	 	 	 	Title: Senior Vice President	 	 

1

 

Notification Procedures

Merrill Lynch Credit Corporation/PHH Mortgage Corporation

Residential Mortgage Origination and Servicing Outsourcing Agreements

     Any notice to be given or document to be delivered to any party under any of the agreements
pertaining to the Merrill Lynch Credit Corporation (“MLCC”) and PHH Mortgage Corporation (“PHH”)
transaction entered into during December of 2000/January 2001 and thereafter shall be in writing
and shall be delivered personally, transmitted by facsimile (and telephonically confirmed), mailed
by registered or certified mail, return receipt requested, or sent by overnight courier to the
other party at the following address or to any other address as either MLCC or PHH may subsequently
designate:

MLCC:

Merrill Lynch Credit Corporation

4802 Deer Lake Drive East

Jacksonville, FL 32246-6484

Attention: Lawrence P. Washington, President

Facsimile: 904-218-6119

Phone: 904-218-6706

with a copy to:

Merrill Lynch Credit Corporation

4802 Deer Lake Drive East

Jacksonville, FL 32246-6484

Attention: George T. Morrison, General Counsel

Facsimile: 904-218-8848

Phone: 904-218-8833

PHH:

PHH Mortgage Corporation

3000 Leadenhall Road

Mt. Laurel, NJ 08054

Attention: Joe Suter 

                   Mail Stop CM1

Facsimile: 856-917-6016

Phone: 856-917-0190

[Continued on next page]

1

 

with a copy to:

General Counsel’s Office

PHH Mortgage Corporation

3000 Leadenhall Road

Mt. Laurel, NJ 08054

Attention: William F. Brown 

                   Mail Stop LGL

Facsimile: 856-917-0950

Phone: 856-917-0903

With a copy to:

Assistant General Counsel’s Office

PHH Mortgage Corporation

4802 Deer Lake Drive East

Jacksonville, Florida 32246-6484

Attention: Louie W. Strum 

                   Mail Stop JLGL

Facsimile: 904-928-8483

Phone: 904-928-4437

     Any notice sent by registered, certified, or overnight mail or facsimile shall be deemed
received on the actual date of delivery of the notice to the designated address as evidenced by the
applicable receipt/indication.

2

 

Execution Copy

 

ORIGINATION ASSISTANCE AGREEMENT

AMENDMENT NO. 3

By and Between

MERRILL LYNCH CREDIT CORPORATION

AND

PHH MORTGAGE CORPORATION

(f/k/a Cendant Mortgage Corporation)

Dated as of

July 19, 2005

 

 

 

ORIGINATION ASSISTANCE AGREEMENT

AMENDMENT NO. 3

          ORIGINATION ASSISTANCE AGREEMENT AMENDMENT NO. 3, dated and effective except as otherwise
indicated below as of July 19, 2005 (this “Amendment Agreement”), by and between MERRILL
LYNCH CREDIT CORPORATION, a Delaware corporation, with offices located at 4802 Deer Lake Drive
East, Jacksonville, Florida 32246 (“MLCC”), and PHH MORTGAGE CORPORATION (f/k/a Cendant
Mortgage Corporation) d/b/a PHH Mortgage Services, a New Jersey corporation, with offices located
at 3000 Leadenhall Road, Mt. Laurel, New Jersey 08504 (“PHH”).

          WHEREAS, MLCC and PHH are parties to an Origination Assistance Agreement, dated as of December
15, 2000 (as amended and supplemented as of the date hereof, the “Origination Agreement”);
and

          WHEREAS, each of MLCC and PHH wishes to amend the Origination Agreement in order to properly
reflect the current relationship between the parties;

          NOW, THEREFORE, in consideration of the foregoing and the respective covenants and agreements
set forth in this Amendment Agreement, the parties hereto agree as follows:

SECTION 1. Amendments to the Origination Agreement. The Origination
Agreement is hereby amended as follows:

     (a)Section 1 (a). The following definition is added in alphabetical order to
Section 1(a):

     “Permitted Amount” means, with respect to a Mortgage Loan closing in a
particular State or District of the United States, the amount set forth on Exhibit G hereto
for such State or District.

     (b)Section 7. Section 7 is amended by:

	 	i.	 	Adding the following text to the end of the third
sentence of such section: “and the title of any such account shall include
language stating that PHH Mortgage Services or PHH Mortgage Corporation
holds such account as “custodian” or “trustee” for the benefit of MLCC”.
	 
	 	ii.	 	Adding the following text to the end of the fourth
sentence of such section: “and MLCC shall fund such amount or amounts on
the same day as requested by PHH at the scheduled times agreed by PHH and
MLCC, which shall include requests up to

 [* * *], and may include an
additional request between [* * *], as determined by late afternoon loan
closing activity.”

 

 [***] INDICATES
MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

     (c) Section 13(c). Effective November 1, 2004, the text “[* * *]” in
the first sentence of Section 13(c) is replaced with the following text: “exceed the
Permitted Amount”.

     (d) Section 21. A new Section 21(e) is added containing the following text:
“Unless otherwise assigned or transferred by MLCC, at no time shall PHH have any legal or
beneficial interest in any Mortgage Loan or Mortgage Loan Document, but only a custodial
interest as provided in this Section 21, and MLCC shall at all times retain all of the legal
and beneficial interests in each Mortgage Loan and Mortgage Loan Document.”

     (e) Exhibit G. The Origination Agreement is amended by adding as Exhibit G
thereto Exhibit A to this Amendment Agreement.

     SECTION 2. Governing Law. This Amendment Agreement shall be governed by, and
construed in accordance with, the laws of the State of New York.

     SECTION 3. Headings. The descriptive headings contained in this Amendment Agreement
are included for convenience of reference only and shall not affect in any way the meaning or
interpretation of this Amendment Agreement.

     SECTION 4. Counterparts. This Amendment Agreement may be executed (including by
facsimile transmission) in one or more counterparts, and by the different parties hereto in
separate counterparts, each of which when executed and delivered shall be deemed to be an original
but all of which taken together shall constitute one and the same agreement.

     SECTION 5. Ratification. Except as amended hereby, the Origination Agreement shall
remain unmodified and in full force and effect, and is hereby ratified and confirmed.

      SECTION 6. Defined Terms. Capitalized terms used and not otherwise defined herein
shall have the meanings ascribed thereto in the Origination Agreement.

 

		
	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.	 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment Agreement to be executed as of
the date first written above by their respective officers thereunto duly authorized.

	 	 	 	 	 	 	 
	 	 	MERRILL LYNCH CREDIT CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Lawrence P. Washington	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Lawrence P. Washington	 	 
	 

	 	 	 	Title: President	 	 
	 
	 	 	 	 	 	 
	 	 	PHH MORTGAGE CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Gregory A. Gentek	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

 

 

	 	 	 
	 

	 	Lawrence P. Washington
	 

	 	Chairman & Chief Executive Officer
	 

	 	Merrill Lynch Credit Corporation
	 
	 	 
	

	 	Merrill Lynch Global Bank Group

	 	4802 Deer Lake Drive East
	 	Jacksonville, Florida 32246-6484
	 	904 218 6076
	 

	 	800 965 8654

As of September 1, 2005

PHH Mortgage Corporation

3000 Leadenhall Road

Mt. Laurel, NJ 08054

Attn: Mr. Robert J. Smith

Re: Merrill Lynch Mortgage Lending, Inc.

Dear Bob:

     Merrill Lynch Mortgage Lending, Inc. (“MLML”) is an affiliate of Merrill Lynch Credit
Corporation (“MLCC”). MLML would like to purchase residential mortgage loans pursuant to the
following three transactions (the “Transactions”):

	 	•	 	[* * *], approximately $[* * *] to settle on or about September 14, 2005;
	 
	 	•	 	[* * *], approximately $[* * *] to settle on or about October 5, 2005; and
	 
	 	•	 	[* * *], approximately $[* * *] to settle on or about October 10, 2005.

     MLML and MLCC have requested that PHH Mortgage Corporation (“PHH”) render the Bulk Sale
Program services hereinafter described for MLML in connection with the Transactions:

     (a) For each of the [* * *] and [* * *]Transactions, and for that portion of the [* * *]
transaction pool that consists of ARM mortgage loans, all Bulk Sale Program services set forth in
Section 2.02 of Amendment No. 1 to Addendum Agreement No. 1 to that certain Origination Assistance
Agreement by and between MLCC and PHH dated as of December 15, 2000 (“Amendment No. 1”) except for
the system development initiatives described in Sections 2.02(a)(i) and 2.02(a)(ii); and

     (b) For that portion of the [* * *] transaction pool consisting of fixed rate loans that will
involve a direct tape-to-tape input into [* * *] servicing system, none of the Bulk Sale Program
services set forth in Section 2.02 of Amendment No. 1.

     PHH has agreed to provide the Bulk Sale Program services described above, provided
that MLCC and MLML execute this letter agreement (this “Letter Agreement”), acknowledge
that PHH shall have no Bulk Sale Program or other responsibilities with

 

		
	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.	 

 

 

respect to the Transactions beyond those expressly stated herein, and, except for the mortgage
loans described in paragraph (b) above, MLML pays the PHH Bulk Sale Program Fees as set forth in
Section 2.03 of Amendment No. 1.

  Capitalized terms used but not defined herein shall have the meanings ascribed to them in
Amendment No. 1.

     MLCC hereby agrees, and by signing below, PHH hereby agrees, that for purposes of the
Transactions only, this “Letter Agreement” amends (1) the first two agreements listed below (the
“Amended Agreements”) by (a) adding as a party thereto Merrill Lynch Mortgage Lending, Inc.
(“MLML”) as if named a party therein, (b) deeming MLML to have all the rights, title, interests,
privileges and obligations under each Amended Agreement as does MLCC under each Amended Agreement
and (c) providing that the performance by either of MLCC or MLML of any obligation under any
Amended Agreement shall satisfy the obligation of the other to perform such obligation and that the
performance by PHH of any obligation to either MLCC or MLML under any Amended Agreement shall
satisfy the obligation of PHH to perform such service for either or both MLCC and/or MLML,
provided, however, anything to the contrary herein notwithstanding, that MLML shall be deemed an
additional party to the Amended Agreements for purposes of effectuating (i) the Transactions and
(ii) the performance by PHH of the Bulk Sale Program services in connection therewith as
contemplated herein and for no other purpose whatsoever, including by way of example and not
limitation, the necessity of any joinder, consent or approval of or by MLML to any subsequent
modification, amendment or supplement of or to the Amended Agreements as maybe mutually agreed upon
by MLCC and PHH from time to time with respect to the Bulk Sale Program or otherwise; and, (2) the
third Amended Agreement by expanding the definition of Mortgage Loans to include the mortgage loans
purchased by MLML in the Transactions.

     1. Addendum Agreement No. 1 to the Origination Assistance Agreement, dated November 30, 2001;

     2. Amendment No. 1; and

     3. Assignment, Assumption, and Recognition Agreement, dated September 1, 2004.

     Except as modified above, each Amended Agreement remains in full force and effect and is
hereby ratified by the parties hereto. This Letter Agreement may be executed in counterparts,
which when taken together, shall constitute one and the same instrument. Delivery of a counterpart
of this Letter Agreement by facsimile shall be as effective as delivery of a manually executed
counterpart hereof.

     Lastly, with respect to the servicing rights pertaining to the mortgage loans acquired
pursuant to the Transactions, PHH acknowledges that:

	 	•	 	PHH has purchased, or will purchase, the servicing rights for the mortgage loans
acquired pursuant to the [* * *] transaction described above pursuant to Section 6(c)
of Amendment No. 2 to that certain Servicing Rights Purchase and Sale Agreement by and
between MLCC and PHH dated as of January 28, 2000 (“Amendment No. 2”);
	 
	 	•	 	PHH will purchase the servicing rights for the mortgage loans acquired pursuant to
the [* * *] transaction described above pursuant to Section 6(c) of Amendment No. 2;
and

 

		
	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.	 

 

 

	 	•	 	MLML will retain all of the servicing rights for the mortgage loans acquired
pursuant to the [* * *] transaction described above and is under no
obligation to sell those servicing rights to PHH. In addition, the parties agree as
follows with respect to the servicing of the 

[* * *] transaction:

	 	o	 	PHH will service the mortgage loans for MLML pursuant to the
Portfolio Agreement although MLML may transfer those servicing rights to
another party at any time without compensation to PHH, provided, however that
MLML shall be responsible for all transfer fees and, if the transfer of
servicing occurs within the first twelve (12) months after the initial boarding
of the loans to PHH’s servicing system, MLML shall pay PHH an amount equivalent
to the average servicing fees that would be payable to PHH with respect to such
pool for an additional period of six (6) months.
	 
	 	o	 	PHH will receive a servicing fee in the amount set forth in
Section 6(b) of Amendment No. 2.

	 	•	 	All servicing performed by PHH with respect to the Transactions shall be conducted
in the name of PHH and shall be neither co-branded nor otherwise handled on a private
label basis.
	 
	 	•	 	MLML shall be responsible for all third party expenses charged by [ * * *] with
respect to boarding the mortgage loans for the Transactions.

     This Letter Agreement shall be governed by, and construed in accordance with, the laws of the
State of New York.

     By signing below, each party hereby agrees to comply with the terms of each Amended Agreement,
as amended hereby.

 

		
	     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.	 

 

 

     IN WITNESS WHEREOF, Merrill Lynch Credit Corporation, Merrill Lynch Mortgage Lending, Inc. and
PHH Mortgage Corporation have caused this letter agreement to be executed by their respective
officers thereunto duly authorized.

	 	 	 	 	 	 	 
	 	 	MERRILL LYNCH CREDIT CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Lawrence P. Washington	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Lawrence P. Washington	 	 
	 

	 	Title:
	 	Chairman and President	 	 
	 
	 	 	 	 	 	 
	 	 	MERRILL LYNCH MORTGAGE LENDING, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Daniel Park	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Daniel Park, Attorney-in-Fact,	 	 
	 

	 	 	 	Pursuant to Power of Attorney	 	 
	 

	 	 	 	dated September 29, 2005.	 	 
	 
	 	 	 	 	 	 
	 	 	PHH MORTGAGE CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

 

 

     IN WITNESS WHEREOF, Merrill Lynch Credit Corporation, Merrill Lynch Mortgage Lending, Inc. and
PHH Mortgage Corporation have caused this letter agreement to be executed by their respective
officers thereunto duly authorized.

	 	 	 	 	 	 	 
	 	 	MERRILL LYNCH CREDIT CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

Lawrence P. Washington
	 	 
	 

	 	Title:
	 	Chairman and President	 	 
	 
	 	 	 	 	 	 
	 	 	MERRILL LYNCH MORTGAGE LENDING, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

Daniel Park, Attorney-in-Fact,
	 	 
	 

	 	 	 	Pursuant to Power of Attorney	 	 
	 

	 	 	 	dated September 29, 2005.	 	 
	 
	 	 	 	 	 	 
	 	 	PHH MORTGAGE CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert J. Smith	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Robert J. Smith	 	 
	 

	 	Title:
	 	Senior Vice President	 	 

 

 

September 1, 2005

PHH Mortgage Corporation

3000 Leadenhall Road

Mt. Laurel, NJ 08054

Attention: Louie W. Strum, Assistant General Counsel

Re: Origination Assistance Agreement By and Between Merrill Lynch Credit Corporation and PHH
Mortgage Corporation (f/k/a Cendant Mortgage Corporation) Dated as of December 15, 2000
(“Agreement”): Field Sales Consultants

Ladies and Gentlemen:

     This letter confirms the terms of a pilot program (“Program”) under which certain PHH Mortgage
Corporation (f/k/a Cendant Mortgage Corporation) (“PHH”) employees (“Field Sales Consultants”)
shall generate Mortgage Loans for MLCC under the Agreement, as follows:

	 	•	 	The Field Sales Consultants shall serve as the initial point of contact for
Customers and their Financial Advisors, and shall be available to meet in person with both
Customers and their Financial Advisors in a manner that is designed to provide personalized
and efficient service.
	 
	 	•	 	The Field Sales Consultants shall perform, on a personalized basis, the
functions described in the Agreement for the Telemarketing Origination Channel. For
purposes of the Agreement, the functions performed by the Field Sales Consultants shall be
treated as part of the Telemarketing Origination Channel.
	 
	 	•	 	The Field Sales Consultants shall perform all such functions with the superior
level of quality and service that would be expected by high net worth clients of a well
managed private bank.
	 
	 	•	 	Each Field Sales Consultant shall have a direct reporting relationship to the
PHH Sales Manager and shall coordinate his/her activities with the MLCC Mortgage and Credit
Specialist assigned to his/her district. Each Field Sales Consultant shall receive daily
direction from the MLCC Mortgage and Credit Specialist with regard to task prioritization
and sales strategies for a particular MLPF&S office. The form of business cards used by
the Field Sales Consultants shall be subject to MLCC’s approval.
	 
	 	•	 	When performing their services in MLPF&S offices, Field Sales Consultants (i)
shall strictly limit their activities to the performance of the Origination Services, (ii)
shall conduct themselves in a professional manner, (iii) shall not sell, solicit, advise,
or counsel any Customer or other person with respect to any investment or financial
services or products (other than Mortgage Loans, as contemplated by the Agreement),
insurance products or services, or brokerage account services, (iv) shall not impede or
interfere with the conduct of MLPF&S’s business, and (v) shall not accept funds from
Customers. During the term of the Program, the MLPF&S branch office manager or designee may
at any time notify the Field

 

 

	 	Sales Consultant to cease conducting activities at the MLPF&S branch office and upon the
Field Sales Consultant’s receipt of such notice all such activities shall cease.

	 	•	 	PHH and each Field Sales Consultant shall hold and maintain such individual
licenses, registrations, authorizations, approvals and permits as are required by all
Applicable Requirements, although nothing herein shall be construed to relieve MLCC of
its obligations to obtain and maintain any and all licenses and registrations that are
necessary to permit the Mortgage Loans to be originated in its name as contemplated by
the Agreement and this letter agreement.
	 
	 	•	 	During the term of the Program, MLCC shall notify PHH of the states and
MLPF&S offices where a Field Sales Consultant may be located and Field Sales
Consultants shall be deployed only at locations designated by MLCC for that purpose and
acceptable to PHH. These locations shall initially include Florida and Georgia, as
well as any additional locations that MLCC and PHH agree to in writing.
	 
	 	•	 	The Program will commence on the date of this letter and shall continue
until February 28, 2006, on which date all activities by the Field Sales Consultants
shall cease.

     Capitalized terms used in this letter that are not defined in this letter shall have the
meanings ascribed thereto in the Agreement. Except as provided in this letter, the Agreement (as
previously amended) shall remain in full force and effect.

	 	 	 	 	 
	AGREED AND ACCEPTED:	 	 
	 
	 	 	 	 
	MERRILL LYNCH CREDIT CORPORATION	 	 
	 
	 	 	 	 
	By:

	 	/s/ Lawrence P. Washington	 	 
	 

	 	 	 	 
	Title:

	 	CEO	 	 
	Date:

	 	January 20, 2006	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	PHH MORTGAGE CORPORATION (f/k/a Cendant Mortgage Corporation)	 	 
	 
	 	 	 	 
	By:

	 	Gregory A. Gentek	 	 
	 

	 	 	 	 
	Title:

	 	Senior Vice President	 	 
	Date:

	 	1/26/06	 	 
	 

	 	 	 	 

	 	 	 
	cc:

	 	George T. Morrison, General Counsel (MLCC)
	 

	 	Stuart Boline
	 

	 	Eric Wilson

 

 

	 	 	 
	 

	 	Merrill Lynch Credit Corporation
	 
	 	 
	 

	 	Private Client Group
	 

	 	4802 Deer Lake Drive East
	 

	 	Jacksonville, Florida 32246-6484
	 

	 	(800) 965-8654 Ext. 88859

February 27, 2006

PHH Mortgage Corporation

3000 Leadenhall Road

Mt. Laurel, NJ 08054

Attention: Louie W. Strum, Assistant General Counsel

Re: Origination Assistance Agreement By and Between Merrill Lynch Credit Corporation (“MLCC”) and
PHH Mortgage Corporation (f/k/a Cendant Mortgage Corporation) Dated as of December 15, 2000
(“Agreement”): Field Sales Consultants

Ladies and Gentlemen:

     Reference is made to that certain letter agreement dated September 1, 2005, between Merrill
Lynch Credit Corporation and PHH Mortgage Corporation (the “Agreement”), confirming the terms of a
pilot program (“Program”) under which certain PHH Mortgage Corporation (f/k/a Cendant Mortgage
Corporation) (“PHH”) employees (“Field Sales Consultants”) shall generate Mortgage Loans for MLCC.

     Pursuant to the terms of the Agreement, the Program commenced on the date of the Agreement and
terminates on February 28, 2006. MLCC and PHH agree to modify the Agreement to extend the Program
until April 30, 2006, at which time the agreement shall terminate and all activities by the Field
Sale Consultants shall cease.

     Except as modified above, the Agreement remains in full force and effect.

	 	 	 	 	 
	AGREED AND ACCEPTED:	 	 
	 
	 	 	 	 
	MERRILL LYNCH CREDIT CORPORATION	 	 
	 
	 	 	 	 
	By:

	 	/s/ Lawrence P. Washington	 	 
	 

	 	 	 	 
	Title:

	 	CEO	 	 
	Date:

	 	3-8-06	 	 
	 
	 	 	 	 
	PHH MORTGAGE CORPORATION (f/k/a Cendant Mortgage 

Corporation)	 	 
	 
	 	 	 	 
	By:

	 	/s/ Gregory A. Gentek	 	 
	 

	 	 	 	 
	Title:

	 	Senior Vice President	 	 
	Date:

	 	3/6/2006	 	 
	 

	 	 	 	 

 

 

	 	 	 
	cc:

	 	George T. Morrison, General Counsel (MLCC)
	 

	 	Marc Crawford
	 

	 	Eric Wilson

 

 

EXECUTION COPY

 

ORIGINATION ASSISTANCE AGREEMENT

AMENDMENT NO. 4

By and Between

MERRILL LYNCH CREDIT CORPORATION

AND

PHH MORTGAGE CORPORATION

(f/k/a Cendant Mortgage Corporation)

Dated as of

March 24, 2006

 

 

 

ORIGINATION ASSISTANCE AGREEMENT

AMENDMENT NO. 4

          ORIGINATION ASSISTANCE AGREEMENT AMENDMENT NO. 4, dated as of March 24, 2006 (this
“Amendment Agreement”), by and between MERRILL LYNCH CREDIT CORPORATION, a Delaware
corporation, with offices located at 4802 Deer Lake Drive East, Jacksonville, Florida 32246
(“MLCC”), and PHH MORTGAGE CORPORATION (f/k/a Cendant Mortgage Corporation) d/b/a PHH
Mortgage Services, a New Jersey corporation, with offices located at 3000 Leadenhall Road, Mt.
Laurel, New Jersey 08504 (“PHH”).

          WHEREAS, MLCC and PHH are parties to an Origination Assistance Agreement, dated as of December
15, 2000 (as amended and supplemented as of the date hereof, the “Origination Agreement”);

          WHEREAS, PHH desires to utilize the Landscape Underwriting Guidelines (as defined below) in
evaluating and originating certain mortgage loans in connection with performing its Origination
Services under the Origination Agreement, and MLCC agrees that PHH may do so in accordance with the
terms hereof and of the Origination Agreement (as amended hereby); and

          NOW, THEREFORE, in consideration of the foregoing and the respective covenants and agreements
set forth in this Amendment Agreement, the parties hereto agree as follows:

          SECTION 1. Amendments to the Origination Agreement. The Origination Agreement is
hereby amended as follows:

     (a)Section 1(a). The following definitions are added in alphabetical order to
Section 1(a):

        “Landscape Underwriting Guidelines” means the underwriting guidelines attached
hereto as Exhibit H.

        “Non-Alternative Mortgage Loan” means any Mortgage Loan that is not an
Alternative Loan.

     (b)Section 2(a). Section 2(a) is amended by deleting the second sentence of
such section and replacing it in its entirety with the following text:

“PHH shall be responsible for developing the various Mortgage Loan Types and establishing
the Mortgage Loan Pricing for all Conforming Conventional Mortgage Loans,
Jumbo/Non-Conforming Mortgage Loans and any Mortgage Loans originated under the Landscape
Underwriting Guidelines (“PHH Pricing”).”

     (c)Section 6(b). Section 6(b) is amended by deleting the text thereof in its
entirety and replacing it with the following text:

 

 

     “Mortgage Loans originated under this Agreement shall be underwritten in
accordance with either (i) the “MLCC Underwriting Guidelines” which are attached
hereto as Exhibit E and made a part hereof or (ii) with respect to any
Non-Alternative Mortgage Loan, in accordance with the Landscape Underwriting
Guidelines which are attached hereto as Exhibit H and made a part hereof
provided that such guidelines themselves contemplate the underwriting of the
applicable type of Non-Alternative Mortgage Loan, as each set of guidelines may be
amended from time to time by mutual agreement of MLCC and PHH, and which each set of
guidelines shall comply, in the case of Conforming Conventional Mortgage Loans, with
the standards of FNMA, FHLMC and, in the case of other Mortgage Loans, other
applicable federal agencies and investors, as applicable, providing standards for the
underwriting of mortgage loans eligible for sale in the secondary market (the
guidelines referred to above in clauses (i) and (ii) are referred to herein,
collectively, as the “MLCC Underwriting Guidelines”). PHH may not underwrite
any Alternative Loan utilizing the Landscape Underwriting Guidelines. To the extent
that the “MLCC Underwriting Guidelines” attached hereto as Exhibit E are amended by
mutual agreement of the parties after the Effective Date, and such amendments are
requested by MLCC yet not required by Applicable Requirements (as if such definition
did not contain clause (vii)), [* * *] incurred by PHH with respect to its
performance of the Origination Services hereunder which are caused by such change to
the MLCC Underwriting Guidelines shall be reimbursed by MLCC until such changes are
mandated by Applicable Requirements. PHH shall be responsible for ensuring that the
Landscape Underwriting Guidelines comply in all material respects with the Applicable
Requirements.”

     (d) Section 17(u). The following text is added as new Section 17(u):

          “’The Landscape Underwriting Guidelines’ comply with the Mortgage Lending Laws in all
material respects.”

     (e) Section 17(v). The following text is added as new Section 17(u):

          “Each Mortgage Loan that is originated under the Landscape Underwriting Guidelines
qualifies for sale to FNMA and/or FMLMC.”

     (f) Section 18(c). Section 18(c) is amended by deleting the text of such
sentence in its entirely and replacing it with the following text:

          “The “MLCC Underwriting Guidelines” attached hereto as Exhibit E comply with the
Mortgage Lending Laws in all material respects.”

     (g) Exhibit H. The Origination Agreement is amended by adding as Exhibit H
thereto Exhibit A to this Amendment Agreement.

 

		
	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.	 

 

 

          SECTION 2. Termination of Amendment Agreement. MLCC may, upon no less than thirty
(30) days’ prior notice, terminate the amendments to the Origination Agreement set forth in this
Amendment Agreement. Upon such termination, the Origination Agreement shall automatically and
without any further action by any Person be deemed to have been re-amended to revise the amendments
set forth in this Amendment Agreement, provided however, that PHH shall proceed
with the processing, funding and closing of any loans affected thereby for which commitments were
issued prior to the effective date of such termination. Upon such a re-amendment, the Origination
Agreement, as re-amended thereby, shall remain in full force and effect and shall automatically and
without any further action of any Person, be ratified and confirmed.

          SECTION 3. Governing Law. This Amendment Agreement shall be governed by, and
construed in accordance with, the laws of the State of New York.

          SECTION 4. Headings. The descriptive headings contained in this Amendment Agreement
are included for convenience of reference only and shall not affect in any way the meaning or
interpretation of this Amendment Agreement.

          SECTION 5: Counterparts. This Amendment Agreement may be executed (including by
facsimile transmission) in one or more counterparts, and by the different parties hereto in
separate counterparts, each of which when executed and delivered shall be deemed to be an original
but all of which taken together shall constitute one and the same agreement.

          SECTION 6: Ratification. Except as amended hereby, the Origination Agreement shall
remain unmodified and in full force and effect, and is hereby ratified and confirmed.

          SECTION 7: Defined Terms. Capitalized terms used and not otherwise defined herein
shall have the meanings ascribed thereto in the Origination Agreement

 

 

          IN WITNESS WHEREOF, the parties hereto have caused this Amendment Agreement to be executed as
of the date first written above by their respective officers thereunto duly authorized.

	 	 	 	 	 	 	 
	 	 	MERRILL LYNCH CREDIT CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Lawrence P. Washington	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Lawrence P. Washington	 	 
	 

	 	 	 	Title: Chairman and President	 	 
	 
	 	 	 	 	 	 
	 	 	PHH MORTGAGE CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Gregory A. Gentek	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:EX-10.68

 

Exhibti 10.68

MERRILL LYNCH CREDIT CORPORATION

Owner

and

CENDANT MORTGAGE CORPORATION

Company

 

PORTFOLIO SERVICING AGREEMENT

Dated as of January 28, 2000

 

 

			
	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

 

	 	 	 	 	 
	ARTICLE I DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	Section 1.01. Incorporation of Recitals: Defined Terms
	 	 	1	 
	Section 1.02. General
	 	 	11	 
	 
	 	 	 	 
	ARTICLE II COMPANY TO SERVICE MORTGAGE LOANS
	 	 	12	 
	 
	 	 	 	 
	Section 2.01. Company to Act as Servicer
	 	 	12	 
	Section 2.02. Title, Management and Disposition of REO Property
	 	 	14	 
	Section 2.03. Defaulted Mortgage Loans
	 	 	15	 
	Section 2.04. Owner’s Right to Examine Company Records
	 	 	16	 
	Section 2.05. Legal Proceedings Involving the Company and/or the Mortgage Loans
	 	 	16	 
	Section 2.06. Material Changes
	 	 	16	 
	Section 2.07. Company Shall Provide Information as Reasonably Required
	 	 	17	 
	Section 2.08. Company Not to Resign
	 	 	17	 
	Section 2.09. Training
	 	 	18	 
	Section 2.10. Custodial Funds Accounts and Escrow Accounts
	 	 	18	 
	Section 2.11. Assumption Processing
	 	 	18	 
	Section 2.12. Transfer of Funds to the Custodial Funds Accounts and Escrow Accounts; Payments of
                    Advances
	 	 	18	 
	 
	 	 	 	 
	ARTICLE III OWNER REPRESENTATIONS AND WARRANTIES
	 	 	19	 
	 
	 	 	 	 
	Section 3.01. Organization and Good Standing
	 	 	19	 
	Section 3.02. Authority and Capacity; Ordinary Course
	 	 	19	 
	Section 3.03. Effective Agreement
	 	 	19	 
	Section 3.04. No Conflict
	 	 	19	 
	Section 3.05. Approvals and Compliance
	 	 	19	 
	Section 3.06. Insurance
	 	 	20	 
	Section 3.07. Litigation,
	 	 	20	 
	Section 3.08. Financial Condition of Owner,
	 	 	20	 
	 
	 	 	 	 
	ARTICLE IV COMPANY REPRESENTATIONS AND WARRANTIES
	 	 	20	 
	 
	 	 	 	 
	Section 4.01. Organization and Good Standing
	 	 	20	 
	Section 4.02. Authority and Capacity; Ordinary Course
	 	 	20	 
	Section 4.03. Effective Agreement
	 	 	21	 
	Section 4.04. No Conflict
	 	 	21	 
	Section 4.05. Approvals and Compliance
	 	 	21	 
	Section 4.06. Litigation
	 	 	21	 
	Section 4.07. Agency Approval
	 	 	21	 
	Section 4.08. Servicing Compliance
	 	 	22	 
	Section 4.09. No Inquiries
	 	 	22	 
	Section 4.10. Contingency Plan
	 	 	22	 
	Section 4.11. Licenses and Approvals
	 	 	22	 
	Section 4.12. Fidelity and E&O Insurance
	 	 	22	 

iv

 

	 	 	 	 	 
	Section 4.13. Sufficiency of Systems and Personnel
	 	 	22	 
	Section 4.14. Compliance with Laws
	 	 	23	 
	Section 4.15. Financial Condition of the Company
	 	 	23	 
	 
	 	 	 	 
	ARTICLE V BOOKS AND RECORDS; TRANSFER OF MORTGAGE LOANS
	 	 	23	 
	 
	 	 	 	 
	Section 5.01. Books and Records
	 	 	23	 
	Section 5.02. Transfer of Mortgage Loans
	 	 	24	 
	 
	 	 	 	 
	ARTICLE VI PAYMENTS TO THE OWNER
	 	 	26	 
	 
	 	 	 	 
	Section 6.01. Paid-in-Full Remittances
	 	 	26	 
	Section 6.02. Monthly Remittances
	 	 	26	 
	Section 6.03. Monthly Advances by the Company
	 	 	26	 
	Section 6.04. Statements to the Owner
	 	 	27	 
	Section 6.05. Form of Payment; Interest on Late Payments
	 	 	27	 
	 
	 	 	 	 
	ARTICLE VII SERVICING COMPENSATION
	 	 	28	 
	 
	 	 	 	 
	Section 7.01. Servicing Compensation
	 	 	28	 
	Section 7.02. Adjustments to Servicing Compensation
	 	 	28	 
	Section 7.03. Computation and Payment of the Final Purchase Price Adjustment.
	 	 	29	 
	 
	 	 	 	 
	ARTICLE VIII SOLICITATION
	 	 	29	 
	 
	 	 	 	 
	Section 8.01. Solicitation
	 	 	29	 
	 
	 	 	 	 
	ARTICLE IX CONDITIONS PRECEDENT TO OBLIGATIONS OF THE OWNER AND THE COMPANY
	 	 	30	 
	 
	 	 	 	 
	Section 9.01. Transaction Agreements
	 	 	30	 
	 
	 	 	 	 
	ARTICLE X DEFAULT
	 	 	30	 
	 
	 	 	 	 
	Section 10.01. Events of Default
	 	 	30	 
	Section 10.02. Failure of the Company to Maintain Service Standards/ Termination
	 	 	32	 
	Section 10.03. Waiver of Defaults
	 	 	33	 
	Section 10.04. Termination without Cause
	 	 	33	 
	Section 10.05. Effect of Termination of Agreement
	 	 	34	 
	 
	 	 	 	 
	ARTICLE XI ANNUAL CERTIFICATIONS
	 	 	34	 
	 
	 	 	 	 
	Section 11.01. Annual Statement as to Compliance
	 	 	34	 
	Section 11.02. Annual Independent Certified Public Accountants’ Servicing Reports
	 	 	34	 
	 
	 	 	 	 
	ARTICLE XII INDEMNIFICATION
	 	 	35	 
	 
	 	 	 	 
	Section 12.01. Indemnification of the Company
	 	 	35	 
	Section 12.02. Indemnification of the Owner
	 	 	36	 
	Section 12.03. Notice and Settlement of Claims
	 	 	36	 
	 
	 	 	 	 
	ARTICLE XIII SUCCESSOR TO THE COMPANY
	 	 	37	 
	 
	 	 	 	 
	Section 13.01. Successor to the Company
	 	 	37	 

v

 

	 	 	 	 	 
	ARTICLE XIV ANTI-MONEY LAUNDERING
	 	 	38	 
	 
	 	 	 	 
	Section 14.01. Compliance
	 	 	38	 
	 
	 	 	 	 
	ARTICLE XV MISCELLANEOUS
	 	 	39	 
	 
	 	 	 	 
	Section 15.01. Supplementary Information
	 	 	39	 
	Section 15.02. Access to Information: Confidentiality
	 	 	39	 
	Section 15.03. Further Assurances
	 	 	40	 
	Section 15.04. Survival
	 	 	40	 
	Section 15.05. Governmental Authorities; Laws and Severability
	 	 	40	 
	Section 15.06. Form of Payment to be Made
	 	 	41	 
	Section 15.07. Assignability
	 	 	41	 
	Section 15.08. Certain Costs
	 	 	41	 
	Section 15.09. Notices
	 	 	41	 
	Section 15.10. Entire Agreement: Construction
	 	 	42	 
	Section 15.11. Binding Effect
	 	 	43	 
	Section 15.12. Headings; Plurals: Genders
	 	 	43	 
	Section 15.13. Applicable Law
	 	 	43	 
	Section 15.14. Counterparts
	 	 	43	 
	Section 15.15. Waivers
	 	 	43	 
	Section 15.16. Publicity
	 	 	43	 
	Section 15.17. No Third Party Beneficiaries
	 	 	44	 
	Section 15.18. Attorney Fees, Costs
	 	 	44	 
	Section 15.19. Merger or Consolidation of the Owner and the Company
	 	 	44	 

EXHIBITS

	 	 	 
	A.

	 	Form of Report Concerning Defaulted Mortgage Loans and REO Properties
	B.

	 	Owner’s Fiscal Month Ends through December 2000
	C.

	 	Mortgage Loan Schedule
	D.

	 	Operations Guide
	E.

	 	Execution Date Pricing Matrix
	F.

	 	Form of Limited Power of Attorney
	G.

	 	Reports to be Submitted Pursuant to Section 6.03
	H-l

	 	Custodial Funds Account Certification
	H-2

	 	Escrow Account Certification

vi

 

     This PORTFOLIO SERVICING AGREEMENT (the “Agreement”), dated and effective as of January 28,
2000, between Merrill Lynch Credit Corporation, as owner (the “Owner”), and Cendant Mortgage
Corporation, as servicer (the “Company”),

W I T N E S S E T H:

     WHEREAS, the Owner is in the business of originating, acquiring and servicing residential
first lien mortgage loans;

     WHEREAS, the Company is in the business of originating, servicing and subservicing residential
first lien mortgage loans;

     WHEREAS, the Owner and the Company have executed a Servicing Rights Purchase and Sale
Agreement dated as of the date hereof, pursuant to which the Company has agreed to purchase
servicing rights from the Owner with respect to certain residential first lien mortgage loans from
time to time;

     WHEREAS, the Owner and the Company have executed a Loan Subservicing Agreement dated as of the
date hereof, pursuant to which the Company has agreed to subservice on behalf of the Owner certain
residential first lien mortgage loans, for which Owner is the servicer;

     WHEREAS, the Owner and the Company have executed or will execute a Securitized Loan Primary
Servicing Agreement dated as of the date hereof, pursuant to which the Company has agreed to
subservice on behalf of the Owner certain securitized residential first lien mortgage loans, for
which Owner is the master servicer;

     WHEREAS, the Owner owns certain other residential first lien mortgage loans and will be
originating residential first lien mortgage loans and the parties hereto desire the Company to
service such mortgage loans for the Owner and continue to service such mortgage loans that the
Owner subsequently sells to FNMA, institutional investors or into securitizations;

     NOW, THEREFORE, in consideration of the premises and the mutual agreements hereinafter set
forth, the Owner and the Company agree as follows:

 

 

ARTICLE I

DEFINITIONS

Section 1.01. Incorporation of Recitals: Defined Terms.

     The foregoing recitals are hereby incorporated herein by reference. Whenever used in this
Agreement, the following words and phrases, unless the context otherwise requires, shall have the
following meaning specified in this Article:

     Additional Collateral means (i) with respect to any Mortgage 100sm Loan,
the marketable securities subject to a security interest pursuant to the related Mortgage
100sm
Pledge Agreement, or (ii) with respect to any Parent Power® Mortgage Loan, the
related Parent Power® Agreement.

     Additional Collateral Agreement means a Mortgage 100sm Pledge Agreement,
Parent Power® Guaranty and Security Agreement for Securities
Account and Parent Power® Guaranty
Agreement for Real Estate.

     Additional Collateral Mortgage Loan means each Mortgage Loan that is either a Mortgage
100sm
Loan or Parent® Power Mortgage Loan as to which the Additional Collateral is still
required to be provided.

     Affiliate means, with respect to any Person, any other Person that directly or
indirectly controls, is controlled by, or is under common control with, such Person (Capitalized
terms derived from the word Affiliate (e.g., “Affiliated”) shall have corresponding meanings.) For
the purposes of this definition, “control,” “controlled by,” and “under common control with” means
the direct or indirect possession of ordinary voting powers to elect a majority of the board of
directors or comparable body of a Person.

     Agreement means this Portfolio Servicing Agreement and all exhibits hereto, all of
which are incorporated herein by this reference, as the same may from time to time be amended or
supplemented by one or more instruments executed by all parties hereto.

     Ancillary Fees means, with respect to any Mortgage Loan; (i) all late charges, (ii)
all fees payable pursuant to Cendant’s “Speed Pay” program, (iii) all returned-item charges (e.g.
NSF charges) and (iv) modification conversion fees.

     Applicable Requirements means and includes, as of the time of reference, with respect
to the Mortgage Loans, all of the following: (a) all contractual obligations of Owner (and any
Originator and/or Prior Servicer) or Company contained in this Agreement, the other Transaction
Agreements, the Mortgage Loan Documents, the applicable guides or any agreement with any Insurer,
for which obligations Owner (and any Originator and/or Prior Servicer) or Company is responsible or
at any time was responsible; (b) all applicable federal, state, and local legal and regulatory
requirements (including laws, statutes, rules, regulations, and ordinances) binding upon Owner (and
any Originator and/or Prior Servicer) or Company; (c) all other applicable

2

 

requirements and guidelines of each governmental agency, board, commission, instrumentality, and
other governmental body or office having jurisdiction, including, but not limited to, those of any
Insurer; (d) all other applicable judicial and administrative judgments, orders, stipulations.
awards, writs, and injunctions; (e) with respect to Company’s obligations, the provisions of the
Operations Guide; and (f) the reasonable and customary mortgage servicing practices of prudent
mortgage lending institutions that service mortgage loans of the same type as the Mortgage Loan the
jurisdiction in which the related Mortgaged Properties are located.

     Appraised Value, means, with respect to any Mortgage Loan, the value of the related
Mortgaged Property based upon the lesser of (i) the appraisal made for the Originator at the time
of origination of the Mortgage Loan, and (ii) if applicable, the sales price of the Mortgaged
Property at such time of origination.

     Arbitrator means, with respect to any arbitrator selected by a party to this
Agreement. an arbitrator that is Independent of such party and has expertise in the valuation of
mortgage loan servicing rights.

     ARM Loan means a Mortgage Loan with a Mortgage Rate that is adjustable pursuant to the
terms of the related Mortgage Note.

     Assignment means, with respect to a Mortgage Loan, a written instrument that, when
recorded in the appropriate office of the local jurisdiction in which the related Mortgaged
Property is located, will reflect the transfer of the Mortgage Instrument identified therein from
the transferor to the transferee named therein.

     Base Servicing Fee Rate means with respect to any Mortgage Loan, the fee payable
monthly to the Company pursuant to Section 7.01 at the rate per annum set forth in the Pricing
Matrix.

     BSA means the regulations set forth in 31 C.F.R. Part 103, promulgated under the Bank
Secrecy Act, 12 U.S.C. §1829b, 12 U.S.C. § 1951-1959 and 31 U.S.C. § 5311-5330, and similar
requirements under state laws and regulations.

     BSA Policies and Procedures shall have the meaning given in Article XIV hereof.

     Business Day means any day other than (i) a Saturday or Sunday, (ii) a day on which
banking institutions in the States of New Jersey, Florida or New York are required or authorized by
law or by executive order to be closed or (iii) a day on which Owner or the Company is not actually
open for business.

     Cendant means Cendant Mortgage Corporation and its successors in interest.

     Cendant Mortgage Loan means a Mortgage Loan originated by the Company pursuant to the
Origination Agreement.

     Company means Cendant or any successor under this Agreement appointed as herein
provided.

     Company Indemnified Parties shall have the meaning given in Section 12.01 hereof.

3

 

     Complex Defaulted Mortgage Loan shall have the meaning given in Section 2.03(b)
hereof.

     Condemnation Proceeds means all awards or settlements in respect of a taking of a
partial or an entire Mortgaged Property by exercise of the power of eminent domain or condemnation.

     Custodial Funds Account means the separate trust account or accounts created and
maintained pursuant to the FNMA Servicing Guide and which shall be entitled “Cendant Mortgage
Corporation, in trust for Merrill Lynch Credit Corporation, Investor Number ___” or such other
title as is requested by the Owner.

     Defaulted Mortgage Loan means any Mortgage Loan (i) as to which a Monthly Payment is
three (3) months or more past due or (ii) for which the Mortgagor has filed for bankruptcy or (iii)
for which foreclosure proceedings have been commenced or are underway.

     Due Date means the first day of the month, which is the day each Monthly Payment is
due on a Mortgage Loan, exclusive of any days of grace.

     EDP means the electronic data processing system used by Owner and the Company, which
are licensees of ALLTEL Information Services, Inc.

     Equity
Access® Agreement means the revolving line of credit agreement entered into
between MLCC and the guarantor under any Parent Power® Guaranty Agreement for Real Estate pursuant
to which a line of credit may be drawn upon by MLCC to fund the payment by such guarantor of a loss
specified in such Parent Power® Guaranty Agreement for Real Estate.

     Equity
Access® Mortgage means the mortgage, deed of trust or other security instrument
(including all amendments and supplements thereto) made by the
guarantor under any Parent Power® Guaranty Agreement for Real Estate to secure its obligations thereunder and under the related
Equity Access® Agreement.

     Escrow Account means the separate trust account or accounts created and maintained
pursuant to the FNMA Servicing Guide which shall be entitled “Cendant Mortgage Corporation, in
trust for Merrill Lynch Credit Corporation and various mortgagors, Investor Number ___,” or
such other title as is requested by Owner.

     Excess Servicing means that portion of the interest rate on a Mortgage Loan (other
than the contractual Servicing Fee under a servicing agreement with a Subsequent Purchaser) payable
to the Owner as excess servicing compensation.

     Execution Date Pricing Matrix means the pricing matrix attached hereto as Exhibit
E.

     Fair Market Value means the average of the fair market values as determined by two
Arbitrators, one selected by the Owner and one selected by the Company, which Arbitrators shall use
commercially reasonable methods to determine the appropriate pricing for the Servicing

4

 

Rights related to such Mortgage Loans, The Owner and the Company will exchange appropriate
documentation supporting the opinions of their respective Arbitrators.

     Federal Funds Rate means the per annum rate of interest (rounded upward to the nearest
1/100 of 1%) that is the weighted average of the rates on overnight federal funds transactions
arranged on such day or, if such day is not a Business Day, the previous Business Day, by federal
funds brokers computed and released by the Federal Reserve Bank of New York (or any successor) in
substantially the same manner as such Federal Reserve Bank currently computes and releases the
weighted average it refers to as the “Federal Funds Effective Rate” at the date of this Agreement.

     FDIC means the Federal Deposit Insurance Corporation or any successor thereto.

     FHA means the Federal Housing Administration or any successor thereto.

     FHLMC means the Federal Home Loan Mortgage Corporation or any successor thereto.

     Final Purchase Price Adjustment means with respect to a Mortgage Loan, the product of
(i) the outstanding principal balance as of a particular date and (ii) the corresponding applicable
percentage(s) set forth on the Pricing Matrix relating to the Final Servicing Fee Rate, loan size,
escrow characteristics, remittance style, and Maximum Interest Rate, less the amount previously
paid pursuant to the Purchase and Sale Agreement for the Servicing Rights relating to such Mortgage
Loan.

     Final Servicing Fee Rate means, with respect to any Mortgage Loan that is the subject
of a Transfer, the portion of the Gross Yield Differential payable to the Company pursuant to
Section 7.02, as determined by the Owner. Such rate shall be expressed on a per annum basis and be
payable monthly.

     Fiscal Month End means, with respect to any calendar month, the date the Owner
considers to be the last day of the related fiscal month for accounting purposes. The Owner’s
Fiscal Month Ends through December 2000 are detailed in Exhibit B. No later than December
1st of every year that this Agreement is in effect, the Owner shall provide the Company
an updated list of the Owner’s Fiscal Month Ends through December of the following year, such list
to be substantially in the form of Exhibit B.

     Fiscal Month Remittance means, with respect to any calendar month, the remittance made
to the Owner, pursuant to Section 6.02(b), of collections of principal and interest received by the
Company on the Warehouse Mortgage Loans and Special Warehouse Mortgage Loans from the [* * *] day
of such calendar month up to and including the related Fiscal Month End.

     Fiscal Month Remittance Date means with respect to each Fiscal Month Remittance, the
date on which the related remittance of collections of principal and interest on the Warehouse
Mortgage Loans and Special Warehouse Mortgage Loans is made to the Owner, which shall be within [* * *]
after the related Fiscal Month End.

     FNMA means the Federal National Mortgage Association or any successor thereto.

 

			
	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

5

 

     FNMA Loan means any Mortgage Loan guaranteed by and/or serviced for or on behalf of
FNMA, as investor.

     FNMA Servicing Guide means the FNMA Servicing Guide, as amended from time to time.

     GNMA means the Government National Mortgage Association or any successor thereto.

     Gross Yield Differential means, with respect to any Mortgage Loan that is the subject
of a Transfer, the difference between the Mortgage Rate and the rate to be remitted to a Subsequent
Purchaser.

     HUD means the Department of Housing and Urban Development.

     Indemnified Party shall have the meaning given in Section 12.03(b) hereof.

     Indemnifying Party shall have the meaning given in Section 12.03(b) hereof.

     Independent means, with respect to the Owner or the Company, that such Person does not
have any material direct financial interest in or any material indirect financial interest in the
Owner or the Company and has no connection with the Owner or the Company or any Affiliate thereof
as an officer, employee, promoter, underwriter, trustee, partner, director or Person performing
similar functions.

     Insurance Proceeds means the proceeds of any mortgage insurance policy, title policy,
hazard policy or other insurance policy covering a Mortgage Loan, if any, to the extent such
proceeds are not to be applied to the restoration of the related Mortgaged Property or released to
the Mortgagor in accordance with the procedures the Company is required to follow in servicing
mortgage loans pursuant to this Agreement.

     Insurer means an entity that insures or guarantees all or part of the risk of loss on
a Mortgage Loan, including but not limited to, any private mortgage insurance provider, standard
hazard insurance provider, flood insurance provider, earthquake insurance provider or title
insurance provider.

     Interim Remittance means, with respect to any specified calendar month, the remittance
made to the Owner, pursuant to Section 6.02(a), of collections of principal and interest received
by the Company on the Warehouse Mortgage Loans and Special Warehouse Mortgage Loans from the day
after the Fiscal Month End of the preceding calendar month up to and including the [* * *] day of
the specified calendar month.

     Interim Remittance Date means with respect to each Interim Remittance, the date on
which the related remittance of collections of principal and interest on the Warehouse Mortgage
Loans and Special Warehouse Mortgage Loans is made to the Owner, which shall be within [* * *]
after the [* * *] day of the related calendar month.

     Knowledge means that whenever any representation, warranty or other statement
contained in this Agreement is qualified by reference to “Owner’s or the Company’s

 

			
	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

6

 

knowledge” or “to the best of Owner’s or the Company’s knowledge,” that qualified reference shall
be deemed to include knowledge of facts or conditions of which Owner or the Company either is
actually aware of or should have been aware under the circumstances in the discharging of Owner’s
or the Company’s servicing duties. All matters of public record that, at the time of origination
of any Mortgage loan originated by Owner, appeared in the related title insurance
policy/commitment shall be deemed to be known by Owner, and all matters contained or disclosed in
any Mortgage Loan Documents shall be deemed to be known by Owner or the Company.

     Liquidation Proceeds means amounts, other than Insurance Proceeds and Condemnation
Proceeds, received by the Company (or the Owner in connection with a Complex Defaulted Mortgage
Loan) in connection with the liquidation of a Defaulted Mortgage Loan through foreclosure sale or
other disposition (including, but not limited to, amounts received from MLCC with respect to a
Parent Power® Agreement or a Mortgage 100sm Pledge Agreement), other than amounts
received following the acquisition of an REO Property.

     Loan Information means, with respect to any Mortgage Loan, the servicing, loan level
and other information described in Exhibit 3 to the Operations Guide.

     Loan-to-Value Ratio means, with respect to any Mortgage Loan, as of any date on which
a determination thereof is made, the ratio on such date of the outstanding principal balance of
such Mortgage Loan to the Appraised Value of the related Mortgaged Property.

     Loss means, in respect of any indemnification arising under this Agreement, any and
all losses, claims, damages, penalties, liabilities, obligations, judgments, settlements, awards,
demands, offsets, defenses, counterclaims, actions or proceedings, reasonable out-of-pocket costs,
expenses and attorneys’ fees of the Indemnified Party (including but not limited to, (a) any
reasonable costs, expenses and attorneys’ fees incurred by the Indemnified Party in enforcing such
right of indemnification against any Indemnifying Party or with respect to any appeal, and (b)
interest at the Federal Funds Rate on any amount for which the Indemnified Party is entitled to be
indemnified from the date the Indemnified Party notifies the Indemnifying Party of the expenditure
or such amounts until such amounts are paid by the Indemnifying Party; provided,
however, that in no event shall a “Loss” include a claim for consequential damages,
indirect damages or lost profits except when the Loss results from fraud or willful misconduct of
the Indemnifying Party.

     Maximum Interest Rate means, with respect to any FNMA Loan that is not a Cendant
Mortgage Loan, the average of the FNMA posted net 60-day commitment rate for 30 year mortgages plus
[* * *] for the [* * *] preceding a Transfer. With respect to all other Mortgage Loans that are
not Cendant Mortgage Loans, the average of the FNMA posted net 60-day commitment rate for 30 year
mortgages plus [* * *] for the [* * *] preceding a Transfer.

     MLCC means Merrill Lynch Credit Corporation and its successors in interest.

     Monthly Advance means the aggregate of the advances made by the Company on any
Portfolio Remittance Date pursuant to Section 6.03.

 

			
	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

7

 

     Monthly Payment means the scheduled monthly payment of principal and/or interest on a
Mortgage Loan which is payable by a Mortgagor from time to time under the related Mortgage Note on
every Due Date.

     Mortgage 100sm Loan means a Mortgage Loan secured by Additional Collateral
in the form of a security interest in the securities and other assets held in a Trading Account and
having a value, as of the date of origination of such Mortgage Loan, at least equal to the related
Original Additional Collateral Requirement.

     Mortgage 100sm Pledge Agreement means, with respect to each Mortgage
100sm Loan, the Mortgage 100sm Pledge Agreement for Securities Account
between the related Mortgagor and MLCC pursuant to which such Mortgagor granted a security interest
in the securities and other assets held in the Trading Account.

     Mortgage Instrument means any deed of trust, security deed, mortgage, land contracts,
or any other instrument that constitutes a first lien on real estate (or, in the case of a co-op
loan, the applicable security agreement and financing statements) securing payment by a Mortgagor
of a Mortgage Note.

     Mortgage Loan means the first lien residential mortgage loans identified on the
Mortgage Loan Schedule, which Mortgage Loan Schedule may be amended from time to time as Owner
originates new mortgage loans that are the subject of this Agreement.

     Mortgage Loan Documents, means the Mortgage Instruments, Mortgage Notes and
Assignments, and such other documents required to originate and service a Mortgage Loan.

     Mortgage Loan Remittance Rate means, with respect to each Mortgage Loan, the related
Mortgage Rate minus the related Servicing Fee Rate.

     Mortgage Loan Schedule means the schedule of Mortgage Loans serviced pursuant to this
Agreement, which has been delivered to Owner, containing the information set forth in Exhibit
C attached hereto, which Mortgage Loan Schedule may be amended from time to time as Owner
originates new mortgage loans subject to this Agreement.

     Mortgage Note means the mortgage note, deed of trust note, security deed note, or
other form of promissory note executed by a Mortgagor and secured by a Mortgage Instrument
evidencing the indebtedness of the Mortgagor under a Mortgage Loan.

     Mortgage Rate means the per annum interest rate payable by the Mortgagor on a Mortgage
Loan according to the terms of the Mortgage Note.

     Mortgaged Property means any one- to four-family residence (at the time of the
origination of the applicable Mortgage Loan) that is encumbered by a Mortgage Instrument, including
all buildings and fixtures thereon and all accessions thereto, and including installations of
mechanical, electrical, plumbing, heating and air conditioning systems located in or affixed to
such buildings, and all alterations, additions and replacements thereto. The term “Mortgaged
Property” shall include, to the extent the context shall permit or require, a dwelling unit in a
residential cooperative housing corporation.

8

 

     Mortgagor means any and all -obligors under a Mortgage Note and/or Mortgage
Instrument.

     Operations Guide means the Operations Guide attached hereto as Exhibit D, as
the same shall be amended from time to time by Owner.

     Original Additional Collateral Requirement means, with respect to any Additional
Collateral Mortgage Loan, generally [* * *] of the original principal balance of such Mortgage Loan
or such other [* * *] as is specified by MLCC in connection with the origination of such Additional
Collateral Mortgage Loan.

     Origination Agreement means the Mortgage Loan Purchase and Services Agreement dated as
of September 24, 1997 between Owner and PHH Mortgage Services Corporation.

     Originator means, with respect to any Mortgage Loan, the person(s), entity or entities
that (a) took the relevant Mortgagor’s loan application; (b) processed the relevant Mortgagor’s
loan application; and/or (c) closed and/or funded such Mortgage Loan.

     Owner means MLCC or any successor under this Agreement appointed as herein provided.

     Owner Indemnified Parties shall have the meaning given in Section 12.02 hereof.

     Parent
Power® Agreement means, with respect to each Parent
Power® Mortgage Loan, a
Parent Power® Guaranty and Security Agreement for Securities
Account or a Parent Power® Guaranty
Agreement for Real Estate.

     Parent
Power® Guaranty Agreement for Real Estate means, with respect to a Parent
Power® Mortgage Loan, an agreement between MLCC and a guarantor on behalf of the Mortgagor under
such Parent Power® Mortgage Loan pursuant to which the guarantor guarantees the payment of certain
losses under such Parent Power® Mortgage Loan, authorizes MLCC to draw on the related Equity
Access® Agreement to fund such guaranty and has secured such Equity Access® Agreement with a lien
on residential real estate of the guarantor.

     Parent
Power® Guaranty and Security Agreement for Securities Account means, with
respect to a Parent Power® Mortgage Loan, an agreement between MLCC and a guarantor on behalf of
the Mortgagor under such Parent Power® Mortgage Loan pursuant to which such guarantor guarantees
the payment of certain losses under such Parent Power® Mortgage Loan and has granted a security
interest to MLCC in certain marketable securities to collateralize such guaranty.

     Parent
Power® Mortgage Loan means a Mortgage Loan that at the time of origination has
a Loan-to-Value Ratio generally in excess of MLCC’s maximum acceptable Loan-to-Value Ratio for such
Mortgage Loan and that is guaranteed by a Parent Power® Agreement.

     Pass-Through Transfer means the sale or other transfer (which may include one or more
related, intermediate transfers in a whole loan format to one or more Affiliates of the Owner) of
some or all of the Mortgage Loans to a Subsequent Purchaser that is a trust or another

 

			
	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

9

 

person as a part of a transaction (i) that involves (A) the sale of securities evidencing an
interest in such Mortgage Loans or (B) the public issuance or private placement of securities
evidencing an interest in such Mortgage Loans, which securities also may evidence an interest in
other mortgage loans, may be issued through a REMIC and may, as a condition to their issuance, be
rated “AA/Aa” or higher by the Rating Agencies and (ii) for which the Company or the Owner will act
as the master servicer of the Mortgage Loans.

     Permission Agreement means the Permission Agreement dated as of the date hereof.
between Owner and the Company.

     Person means an individual, corporation, limited Liability company, partnership, joint
venture, trust, or unincorporated organization, or a federal, state, city, municipal, or foreign
government, or an agency or political subdivision thereof.

     Pledge Agreement means any Mortgage 100sm Pledge Agreement or Parent Power®
Guaranty and Security Agreement for Securities Account related to an Additional Collateral Mortgage
Loan.

     Portfolio Mortgage Loan means any Mortgage Loan that, as of any given date, the Owner
does not intend to effect a Transfer of within
[* *
*]. All such Mortgage Loans shall be
identified by the Owner in accordance with the terms of Section 7.03.

     Portfolio Remittance Date means the [* * *] day of any month or, if such [* * *] day
is not a Business Day, the first Business Day immediately following such [* * *] day.

     Prepayment Interest Shortfall means, with respect to any Portfolio Remittance Date and
any Portfolio Mortgage Loan or Special Portfolio Mortgage Loan that was the subject of a Principal
Prepayment during the related Principal Prepayment Period, an amount, to be paid from the Company’s
own funds and not reimbursable to the Company, equal to one month’s interest at the related
Mortgage Loan Remittance Rate on the amount of such Principal Prepayment, less the amount of
interest (adjusted to such Mortgage Loan Remittance Rate) paid by the Mortgagor in respect of such
Principal Prepayment.

     Pricing Matrix means (i) on the date of this Agreement and each date thereafter
(subject to clause (ii) of this sentence), the Execution Date Pricing Matrix and (ii) on and after
the date on which any repricing in the Execution Date Pricing Matrix first becomes effective, the
pricing matrix as then in effect.

     Principal Prepayment means any payment or other recovery of principal on a Mortgage
Loan that (i) is received in advance of its scheduled Due Date, including any prepayment penalty or
premium thereon, and (ii) is not accompanied by an amount of interest representing scheduled
interest due on any date or dates in any month or months subsequent to the month of prepayment.

     Principal Prepayment Period means, as to any Portfolio Remittance Date, the calendar
month preceding such Portfolio Remittance Date.

     Prior Servicer means any Person that was a servicer or subservicer of any Mortgage

 

			
	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

10

 

Loan before Owner became the servicer of the Mortgage Loan.

     Purchase and Sale Agreement means the Servicing Rights Purchase and Sale Agreement
dated as of the date hereof, between the Owner, as seller, and the Company, as purchaser.

     Ratings Agency means Standard & Poor’s, a division of The McGraw-Hill Companies, Inc.,
Moody’s Investors Service, Inc., Fitch Investors Service, L.P. and Duff & Phelps Credit Rating Co.
and, in connection with any Pass-Through Transfer, any other nationally recognized statistical
rating organization from which the Owner or any of its Affiliates may seek a rating with respect to
such Pass-Through Transfer.

     REMIC means a real estate mortgage investment conduit, as such term is defined by the
Internal Revenue Code of 1986, as amended.

     REO Disposition means the final sale by the Company of any REO Property.

     REO Property means any Mortgaged Property owned in fee simple by Owner as a result of
a foreclosure of a Mortgage Loan, or similar action.

     RESPA means the Real Estate Settlement Procedures Act, 12 U.S.C § 2601 et seq., and
Regulation X, 24 C.F.R. § 3500.21, thereunder, as the foregoing may be amended from time to time.

     Securitized Loan Primary Servicing Agreement means the Securitized Loan Primary
Servicing Agreement dated as of the date hereof, between Owner, as master servicer, and the
Company, as primary servicer.

     Servicing Advance means the outstanding moneys that have been advanced by the Company
from its funds in connection with its servicing of a Mortgage Loan (including, but not limited to,
taxes, ground rents, assessments, insurance premiums, release fees, foreclosure and bankruptcy fees
and expenses, and other expenses) (i) that have been made by the Company in accordance with the
terms and provisions herein, (ii) that are recoverable through Liquidation Proceeds, Insurance
Proceeds and/or Condemnation Proceeds, or that are made at the direction of the Owner or to
preserve its security interest in the related Mortgaged Properties and (iii) for which the Company
has a right of reimbursement from Mortgagors, Insurers, the Owner and/or Subsequent Purchaser, or
otherwise.

     Servicing Fee means with respect to any Mortgage Loan, the fee payable monthly to the
Company pursuant to Section 7.01 or 7.02, as applicable.

     Servicing Fee Rate means with respect to each Mortgage Loan, the rate per annum set
forth in the Pricing Matrix.

     Servicing Rights has the meaning set forth in the Purchase and Sale Agreement.

     Special Mortgage Loan means any Mortgage Loan designated as a Special Mortgage Loan by
the Owner.

11

 

     Special Portfolio Mortgage Loan means any Special Mortgage Loan that, as of any given
date, the Owner does not intend to effect a Transfer of within [* * *]. All such Special Portfolio
Mortgage Loans shall be identified by the Owner in accordance with the terms of Section 7.03.

     Special Warehouse Mortgage Loan means any Special Mortgage Loan contemplated by the
Owner to be available for sale to a Subsequent Purchaser or to be designated as a Special Portfolio
Mortgage Loan at some future date. All Special Mortgage Loans shall be designated as Special
Warehouse Mortgage Loans unless the Owner indicates otherwise, as provided in Section 7.03.

     Subsequent Purchaser means any Person that acquires an interest in a Mortgage Loan
from the Owner.

     Subservicing Agreement means the Loan Subservicing Agreement dated as of the date
hereof between Owner, as servicer, and the Company, as subservicer.

     Trading Account means, with respect to any Additional Collateral Mortgage Loan as to
which a Pledge Agreement was made, the account in which the securities and other assets that are
subject to such Pledge Agreement are held.

     Transaction Agreements means this Agreement, the Purchase and Sale Agreement, the
Subservicing Agreement, the Permission Agreement and the Securitized Loan Primary Servicing
Agreement.

     Transfer means a Pass-Through Transfer or a Whole Loan Transfer.

     Transfer Date means, with respect to any Mortgage Loan, the date on which the Company
begins physically servicing the Mortgage Loan. The initial transfer date is anticipated to be
April 3, 2000, but may be extended to such later date as to which the parties may agree.

     Warehouse Mortgage Loan means any Mortgage Loan contemplated by the Owner to be
available for sale to a Subsequent Purchaser (other than Special Warehouse Mortgage Loans) or to be
designated as a Portfolio Mortgage Loan at some future date. All Mortgage Loans other than Special
Mortgage Loans shall be designated as Warehouse Mortgage Loans unless the Owner indicates
otherwise, as provided in Section 7.03.

     Whole Loan Transfer means the sale or other transfer to a Subsequent Purchaser of some
or all of the Mortgage Loans by the Owner in a whole loan format for which the Company will act as
the servicer of the Mortgage Loans pursuant to a servicing agreement with substantially the same
terms and conditions as this Agreement or another agreement mutually acceptable to the Owner and
the Company.

  Section 1.02. General.

     The terms defined herein include the plural as well as the singular and the singular as well
as the plural.

 

			
	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

12

 

ARTICLE II

COMPANY TO SERVICE MORTGAGE LOANS

Section 2.01. Company to Act as Servicer.

          (a) Commencing on the applicable Transfer Date, the Company shall service each Mortgage Loan
in accordance with applicable law and the terms and conditions of (i) the related Mortgage Loan
Documents, (ii) this Agreement, (iii) the Purchase and Sale Agreement, (iv) the Permission
Agreement, (v) to the extent not inconsistent with the foregoing, the Operations Guide, and (vi) to
the extent not inconsistent with the foregoing, the FNMA Servicing Guide. The Operations Guide may
be amended from time to time by Owner with the Company’s prior written consent (which shall not be
unreasonably withheld), without formal amendment of this Agreement. To the extent of a conflict
between the Operations Guide and this Agreement, this Agreement shall control. The provisions of
the Permission Agreement are hereby incorporated into this Agreement.

          (b) In the event the Company fails to service any ARM Loan consistent with the servicing
standards set forth in Section 2.01(a) above, the Company shall notify the Owner within [* * *] and
shall take all appropriate actions required to correct any such servicing deficiencies so that such
loans are thereafter serviced in compliance with the terms and provisions of this Agreement. The
Company shall be solely responsible for any costs and expenses required to effectuate such
remediation, except to the extent that any such servicing deficiency was a continuation of a
failure by Owner or any Prior Servicer to service an ARM Loan in accordance with the Applicable
Requirements (other than the Company’s continuation of such previous servicing practices after the
Company knew or should have known that such previous servicing practices violated the Applicable
Requirements). In addition to the foregoing, the Company shall take such additional corrective
action as may be directed by the Owner, the cost of which shall be the sole responsibility of the
Owner.

          (c) The Company shall maintain an EDP containing all information and programming necessary to
service the Mortgage Loans in accordance with Section 2.01(a) above. The Mortgage Loans shall be
grouped on the Company’s EDP to reflect the Owner as the owner of the Mortgage Loans. In addition,
each Mortgage Loan shall be designated on the Company’s EDP to reflect whether such Mortgage Loan
is a Portfolio Mortgage Loan, Special Portfolio Mortgage Loan, Warehouse Mortgage Loan or Special
Warehouse Mortgage Loan.

          (d) The Company may not waive, modify or vary any term of a Mortgage Note or Mortgage
Instrument without the Owner’s prior written consent. Notwithstanding the foregoing, the Company
may enter into a modification agreement, in the Owner’s name, modifying a Mortgage Note to
reamortize the monthly payments of principal and interest upon (i) receipt of a prepayment equal to
or greater than 20% of the then outstanding principal balance of the Mortgage Note and (ii) the
request of the Mortgagor. Within [* * *] after the complete execution of such modification
agreement, the Company shall provide the Owner with the original executed document. The Company
shall comply with all applicable federal, state and local legal and regulatory requirements
(including laws, statutes, rules, regulations and ordinances) in connection with the modification
of the Mortgage Note.

 

			
	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

13

 

          (e) Notwithstanding anything herein to the contrary, the Company shall follow any reasonable
directions given by the Owner with respect to the servicing of the Mortgage Loans.

          (f) With the exception of Ancillary Fees and any other charges expressly permitted by the
Mortgage Note, Mortgage Instrument, and applicable law, the Company covenants and agrees that it
will not, [* * *].

          (g) The Owner agrees to provide the Company on the first Transfer Date, and shall, as
necessary, promptly furnish the Company such limited powers of attorney as are necessary and
appropriate to assist the Company to carry out its servicing and administrative responsibilities
under this Agreement. A form of such limited power of attorney is attached hereto as Exhibit
F. The Owner shall appoint a limited number of assistant vice presidents (or more senior
officers) of the Company, who are also “department heads” of the Company, as “Limited Authorized
Signatories” of the Owner, as set forth in Owner’s corporate resolution.

          (h) The Company agrees that it shall supply Owner on a daily basis (i) the Loan Information
for each Mortgagor and (ii) aggregate loan information on the Mortgage Loans, in accordance with
the specific timing, transfer, and other requirements set forth in the Operations Guide, in the
manner and in the time frame set forth therein.

          (i) In connection with its duties hereunder, in the event the Company requires an original of
any document contained in a Mortgagor’s file to service a Mortgage Loan, it shall submit a written
request to the Owner and the Owner shall provide the original document to the Company within two
(2) Business Days after receipt of the written request, provided that (a) as to any recorded
document, the applicable recorder’s office has returned the recorded document to the Company or (b)
as to the original title insurance policy, the Company has received such policy. If Owner does not
have the original Mortgage Note, Owner shall work with the Company to fulfill the servicing
responsibility that gave rise to the Company’s request for the original Mortgage Note. Upon the
written request of the Owner, the Company shall provide the Owner with copies of any documents
related to a Mortgage Loan, within two (2) Business Days of such request.

          (j) Notwithstanding anything to the contrary in this Agreement, Owner shall service and
administer all Additional Collateral, it being understood and agreed that only Owner shall service
and administer the related securities accounts, lines of credit, Equity Access® Mortgages, and
guarantees with respect to Additional Collateral Agreements.

          (k) In the event the Company receives a request to convert an adjustable interest rate to a
fixed rate (or an adjustable rate based on one index to an adjustable rate based on a different
index) pursuant to the terms of the related Mortgage Note, the Company shall process the request in
accordance with the terms of the Mortgage Note and continue to service the Mortgage Loan after
conversion in accordance with the terms of this Agreement.

 

			
	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

14

 

          (l) Any information, reports or other written communication regarding a Mortgage Loan shall
indicate whether it is a Portfolio Mortgage Loan, Special Portfolio Mortgage Loan, Warehouse
Mortgage Loan or Special Warehouse Mortgage Loan.

Section 2.02. Title, Management and Disposition of REO Property.

          (a) If title to a Mortgaged Property is acquired in foreclosure or by deed in lieu of
foreclosure, the deed or certificate of sale shall be taken in the name of the Owner.
Notwithstanding the foregoing, the Company shall not acquire title to any Mortgaged Property, or
proceed with the management of any REO Property, for which the Company has Knowledge that such
Mortgaged Property or REO Property is affected by hazardous waste, but shall promptly notify the
Owner of such condition, and thereafter follow such reasonable directions as the Owner may provide.
The Company shall either itself, or through an agent approved by the Owner (which approval shall
not be unreasonably withheld), manage, conserve, protect and operate each REO Property (and may
temporarily rent the same) in accordance with the Owner’s direction.

          (b) The Company shall deposit or cause to be deposited in the applicable Custodial Funds
Account, on a daily basis, all revenues received with respect to each REO Property and shall be
permitted to withdraw therefrom, to the extent of the amount of such revenues on deposit therein,
funds necessary for the proper operation, management and maintenance of such REO Property,
including but not limited to the cost of maintaining any hazard insurance and the fees of any
managing agent acting on behalf of the Company.

          (c) If the Company elects to dispose of an REO Property without utilizing the services of an
agent, the Company shall notify the Owner of its receipt of any and all bona fide offers to
purchase that REO Property. Each such REO Disposition shall be carried out by the Company at such
price, and upon such terms and conditions, as the Owner shall approve in writing.

     If the Company utilizes the services of an approved agent to dispose of an REO Property, the
Company shall provide the Owner with a copy of such agent’s marketing plan, which shall include,
but not be limited to, (i) the marketing time period, (ii) an estimate of the costs of any repairs
or improvements, (iii) the lowest acceptable sale price for the REO Property and (iv) other
proposed terms and conditions of sale. Within five (5) Business Days after receipt of any such
marketing plan, the Owner shall review the plan and notify the Company in writing as to whether the
terms and conditions thereof are acceptable to the Owner. Notwithstanding the foregoing, the
Owner’s failure to provide such written notification to the Company within such five (5) Business
Day period shall not be deemed acceptance of the marketing plan. If the terms, conditions and
lowest acceptable sale price set forth in the marketing plan are acceptable to the Owner, the REO
Disposition shall be carried out by the Company in accordance with the terms thereof. If the
Company receives a bona fide offer to purchase an REO Property and would like to accept the offer,
but the offer is outside the parameters of the approved marketing plan, the Company shall provide
the Owner with written notification of the terms and conditions of the offer. Within five (5)
Business Days after receiving the terms and conditions of such offer, the Owner shall review the
offer and notify the Company in writing as to whether such terms and conditions are acceptable to
the Owner. Notwithstanding the foregoing, the Owner’s failure to provide such written notification
to the Company within such five (5) Business Day period shall not be deemed acceptance of the
offer.

15

 

     The Company, upon an REO Disposition, shall be entitled to reimbursement for any related
unreimbursed Servicing Advances from proceeds received in connection with such REO Disposition. If
the proceeds from an REO Disposition are insufficient to reimburse the Company for any related
unreimbursed Servicing Advances, the Company shall be entitled to withdraw any such deficiency from
amounts on deposit in the applicable Custodial Funds Account. All proceeds from an REO
Disposition, net of any reimbursement to the Company as provided above, shall be remitted to the
Owner within [* * *] following receipt thereof.

Section 2.03. Defaulted Mortgage Loans

          (a) The Company agrees to report monthly to the Owner all Defaulted Mortgage Loans and all REO
Properties serviced pursuant to this Agreement. Such reports shall be provided on a monthly basis
in the form set forth on Exhibit A .

          (b) The Owner reserves the right (but not the obligation) to elect to administer certain
default servicing activities relating to any Defaulted Mortgage Loan or REO Property upon written
notice to the Company (hereinafter referred to as a “Complex Defaulted Mortgage Loan”). As to any
REO Property, the Company shall provide the Owner with written notification of the related
foreclosure sale within [* * *] after the date of such foreclosure sale. The Owner shall notify
the Company within one (1) Business Day after receiving such notification from the Company in the
event the Owner elects to administer default servicing activities relating to the REO Property.
Notwithstanding the foregoing, at any time during the period in which a Mortgage Loan is
delinquent, the Owner may provide written notice to the Company of the Owner’s election to
administer default servicing activities in connection with an REO Property after the foreclosure
sale. If the Owner elects to assume such activities as set forth above, the Owner shall not be
obligated for any fees or commissions due any agent previously retained by the Company.

     In accordance with such notice from the Owner, the Company shall forward to the Owner all
relevant documentation relating to such Complex Defaulted Mortgage Loan and shall comply with all
reasonable transfer requests of the Owner. Upon the transfer from the Company to the Owner of the
relevant files and documentation, the Owner shall commence default servicing activities and shall
report the status of such Complex Defaulted Mortgage Loans to the Company on a monthly basis.
Other than the specific default servicing activities undertaken by the Owner in this Section 2.03,
the Company shall be responsible for complying with this Agreement, including but not limited to
any reporting and remittance of any funds received in connection with any Complex Defaulted
Mortgage Loan. Owner shall not be entitled to receive any compensation for such services. In the
event a Complex Defaulted Mortgage Loan reinstates or Liquidation Proceeds are received by the
Owner, (i) the Owner shall remit such funds to the Company, (ii) the Company shall again be fully
responsible for the servicing for such Mortgage Loan, (iii) the Owner shall forward the related
mortgage file and all other relevant documentation to the Company, and (iv) the Owner shall comply
with all reasonable transfer requests of the Company.

          (c) In connection with any expenses incurred by Owner for any Complex Defaulted Mortgage Loan
under Section 2.03(b), upon receipt of any related invoices, the Owner shall forward such invoices
to the Company for payment in the ordinary course of business.

 

			
	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

16

 

Section 2.04. Owner’s Right to Examine Company Records.

          (a) The Company’ shall cooperate with the Owner, its counsel, accountants. supervisory
agents, examiners and other representatives in providing reasonable access during normal business
hours to examine and audit any and all of the books, records, documentation or other information of
the Company related to the Mortgage Loans, which may be relevant to the performance or observance
for the Company of the terms, covenants or conditions of this Agreement.

          (b) The examination and audit rights and other rights to access described in clause (a) above
shall be afforded by the Company at its offices without charge, upon reasonable request, and during
normal business hours or at such other times as may be reasonable under applicable circumstances.
The Company, at its expense, shall make available all customary, reasonable office space,
facilities, and equipment for the visiting party and shall provide the visiting party with access
to reasonable cooperation with its officers and employees. The salaries, travel, subsistence and
other related expenses for Owner’s representatives shall be borne by the Owner.

Section 2.05. Legal Proceedings Involving the Company and/or the Mortgage Loans.

          (a) The Company shall not, without giving prior written notice to the Owner, commence, defend,
appear, or otherwise participate in any foreclosure, condemnation, bankruptcy, or other legal
proceedings in the name of the Owner. The Owner shall have the right to control any such matters
undertaken by the Company at the Owner’s request. The Company shall provide the Owner, on a
monthly basis, with such written reports as the Owner .shall reasonably request, regarding any
legal proceedings.

          (b) The Company shall commence all foreclosures, bankruptcies and other legal proceedings in
the name of the Owner unless otherwise directed in writing by the Owner.

Section 2.06. Material Changes.

     The Company shall promptly report to the Owner any change in its business operations,
financial condition, properties or assets that could have a material adverse effect on the
Company’s ability to perform its obligations hereunder. Events for which the Owner must receive
notice include, but are not limited to, the following:

          (a) any merger or consolidation, any changes in the Company’s ownership whether directly or
indirectly (including any change in ownership of the Company’s parent), or any significant
reorganization;

          (b) any material changes in management ordered or required by a regulatory authority
supervising or licensing the Company;

          (c) the entry against the Company of a decree or order of a court or agency or supervisory
authority having jurisdiction for the appointment of a trustee, conservator, receiver, liquidator,
assignee, custodian or sequestrator (or other similar official) in any federal or state bankruptcy,
insolvency, readjustment of debt, marshaling of assets and liabilities or similar

17

 

proceedings, or for the winding-up or liquidation of its affairs, if such decree or order has
remained in force undischarged or unstayed for a period of sixty (60) days;

          (d) the consent by the Company to the appointment of a trustee, conservator, receiver,
liquidator, assignee, custodian or sequestrator (or other similar official) in, or commencement of
a voluntary case under, any federal or state bankruptcy, insolvency, readjustment of debt,
marshaling of assets and liabilities or similar proceedings;

          (e) upon the Company’s (A) admitting in writing its inability to pay its debts generally as
they become due, (B) filing a petition to take advantage of any applicable insolvency or
reorganization statute, (C) making an assignment for the benefit of its creditors or (D)
voluntarily suspending payment of its obligations;

          (f) entry of any court judgment or regulatory order in which the Company is or may be required
to pay a claim or claims that may have a material adverse effect on the Company’s financial
condition;

          (g) any admission by the Company to the commission of, or any finding that the Company has
committed, any violation of any law, regulation or order in any proceeding or audit commenced by
any governmental, or regulatory authority, or any proceeding commenced in any court of law;

          (h) the commencement of any class action law suits against the Company; and

          (i) the Company’s entry into any agreement with a third party that would result in any
material change in the financial status or ownership of the Company or any merger of the Company.

Section 2.07. Company Shall Provide Information as Reasonably Required.

     During the term of this Agreement, the Company shall furnish any reports or documentation that
the Owner may reasonably request. Reports requested may include reports not specified or otherwise
required by this Agreement or reports required to comply with any regulations regarding any
supervisory agents or examiners of the Owner. All reports will be delivered in accordance with the
Owner’s reasonable instructions and directions. The Company agrees to execute and deliver all such
instruments and take all such action as the Owner, from time to time, may reasonably request in
order to effectuate the purpose and to carry out the terms of this Agreement. To the extent not
required by the Operations Guide or if not a standard report produced by the Company’s EDP, any
set-up costs incurred by the Company for such reports requested by the Owner shall be borne by the
Owner.

Section 2.08. Company Not to Resign.

     The Company shall not resign from the obligations and duties hereby imposed on it except by
mutual consent of the Company and the Owner. No such resignation shall become effective until a
successor shall have assumed the Company’s responsibilities and obligations hereunder in the manner
provided in Section 13.01.

18

 

Section 2.09. Training.

     No later than March 3, 2000, Owner and the Company shall have completed a training program for
the Company’s employees in the proper servicing of interest-only ARM Loans subject to this
Agreement. To assist the Owner in conducting such training, the Company shall provide the Owner
reasonable access to the Company’s facilities, employees and EDP and, if reasonably deemed
appropriate by the Owner, shall send the Company’s employees to the Owner’s offices in
Jacksonville, Florida to attend that portion, if any, of such training conducted at such offices.
The Owner and the Company shall bear their own costs and expenses, including but not limited to
salaries, travel, subsistence and other related expenses when visiting the other party for
training. The party being visited shall, at its expense, make available all customary, reasonable
training facilities and equipment for the visiting party. The Owner shall provide the training
personnel and training materials.

Section 2.10. Custodial Funds Accounts and Escrow Accounts

     The Company shall segregate and hold all funds collected and received pursuant to each
Mortgage Loan separate and apart from any of its own funds and general assets. The Company shall
create and maintain Custodial Funds Accounts and Escrow Accounts for the deposit of all funds,
except as otherwise provided herein, received by the Company on the Mortgage Loans. The creation
of the Custodial Funds Accounts and Escrow Accounts shall be evidenced by the Company by a
certification in the form of Exhibit H-1 and H-2, respectively. A copy of such certification shall
be delivered to the Owner no later than [* * *] prior to the first Transfer Date.

Section 2.11. Assumption Processing

     Within [* * *] of receipt by the Company of a request by a Mortgagor to be released from
liability for payment of a Mortgage Loan in connection with an assumption of the related Mortgage
Note, the Company shall notify the Owner of such request. The Company shall thereafter cooperate
with the Owner, and follow all reasonable directions provided by the Owner. The Owner shall be
responsible for administering the request directly with the Mortgagor, including, but not limited
to the sending of all applicable disclosures required by law, obtaining all necessary financial
information from the proposed new obligor, and obtaining any additional documentation and execution
of documents. Upon the completion of the assumption processing, the Owner shall provide the
Company with all necessary information to enable the Company to update its EDP.

Section 2.12. Transfer of Funds to the Custodial Funds Accounts and Escrow Accounts; Payments of Advances

     The Custodial Funds Accounts and Escrow Accounts shall be funded by the Owner and reconciled
in accordance with Section 4.16 of the Purchase and Sale Agreement. The Company shall pay the
Owner any Advances (as such term is defined in the Purchase and Sale Agreement), in accordance with
Section 3.02(e) of the Purchase and Sale Agreement.

ARTICLE III

 

			
	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24B-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

19

 

OWNER REPRESENTATIONS AND WARRANTIES

     In addition to representations and warranties, if any, made elsewhere in this Agreement.
Owner represents and warrants to the Company as of the date hereof and each applicable Transfer
Date, as follows:

Section 3.01. Organization and Good Standing.

     Owner is a corporation duly organized, validly existing, and in good standing under the laws
of the State of Delaware. Owner has in full force and effect (without notice of possible
suspension, revocation or impairment) all required qualifications, permits, approvals, licenses,
and registrations, or exemptions therefrom, to conduct all activities in all jurisdictions in which
its activities with respect to the Mortgage Loans require it to be qualified or licensed.

Section 3.02. Authority and Capacity; Ordinary Course.

     Owner has all requisite corporate power, authority and capacity to carry on its business as it
is now being conducted, to execute and deliver this Agreement, and to perform all of its
obligations hereunder. Owner does not believe, nor does it have any cause or reason to believe,
that it cannot perform each and every covenant contained in this Agreement.

Section 3.03. Effective Agreement.

     The execution, delivery, and performance of this Agreement by Owner and consummation of the
transactions contemplated hereby have been duly and validly authorized by all necessary corporate,
shareholder, or other action by Owner; this Agreement has been duly and validly executed and
delivered by Owner; and this Agreement is a valid and legally binding agreement of Owner,
enforceable against Owner in accordance with its respective terms, subject to bankruptcy,
insolvency and similar laws affecting generally, the enforcement of creditors’ rights and the
discretion of a court to grant specific performance of contracts.

Section 3.04. No Conflict.

     Neither the execution and delivery of this Agreement, nor the consummation of the transactions
contemplated hereby, nor compliance with its respective terms and conditions shall (a) violate,
conflict with, result in the breach of, constitute a default under, be prohibited by, or require
any additional approval under any terms, conditions, or provisions of Owner’s Certificate of
Incorporation or by-laws, or any other similar corporate or organizational documents of Owner, any
mortgage, indenture, deed of trust, loan or credit agreement, or other agreement or instrument to
which Owner is now a party or by which it is bound; or any law, ordinance, rule, regulation, order,
judgment or decree of any governmental authority applicable to Owner, or (b) result in the creation
or imposition of any lien, charge or encumbrance of any material nature upon any of the properties
or assets of Owner.

Section 3.05. Approvals and Compliance.

     Owner is approved and in good standing with each Insurer, and holds all licenses, approvals,
permits, and other authorizations, or exemptions therefrom, required under Applicable

20

 

Requirements to originate, if Owner was the Originator, and to service the Mortgage Loans.

Section 3.06. Insurance.

     Error and omissions and fidelity insurance coverage, in the amounts required by FNMA, is in
effect with respect to Owner and will be maintained with respect to the related Mortgage Loans
until such time as the Company is no longer the servicer of the Mortgage Loans.

Section 3.07. Litigation.

     There is no litigation, claim, demand, proceeding or governmental investigation existing or
pending, or to the Knowledge of Owner, threatened, nor is there any order, injunction or decree
outstanding against or relating to Owner that could (i) have a material adverse effect upon the
performance by Owner of its obligations under this Agreement or (ii) to Owner’s Knowledge, result
in any material loss or liability to the Company. Further, to Owner’s Knowledge, there is no
meritorious basis for any such litigation, claim, demand, proceeding, or governmental
investigation.

Section 3.08. Financial Condition of Owner.

     Neither Owner, its parent, nor any of its subsidiaries is in bankruptcy, receivership or
conservatorship. Owner has the requisite financial resources and ability to meet its obligations
under this Agreement, including, but not limited to, any and all indemnification obligations.

ARTICLE IV

COMPANY REPRESENTATIONS AND WARRANTIES

     In addition to representations and warranties, if any, made elsewhere in this Agreement, the
Company represents and warrants to the Owner as of the date hereof and each applicable Transfer
Date, as follows:

Section 4.01. Organization and Good Standing.

     The Company is a corporation duly organized, validly existing and in good standing under the
laws of the State of New Jersey. The Company has in full force and effect (without notice of
possible suspension, revocation or impairment) all required qualifications, permits, approvals,
licenses, and registrations, or exemption therefrom, to conduct all activities in all jurisdictions
in which its activities with respect to the Mortgage Loans require it to be qualified or licensed.

Section 4.02. Authority and Capacity; Ordinary Course.

     The Company has all requisite corporate power, authority and capacity to carry on its business
as it is now being conducted, to execute and deliver this Agreement, and to perform all of its
obligations hereunder. The Company does not believe, nor does it have any cause or reason to
believe, that it cannot perform each and every covenant contained in this Agreement.

21

 

Section 4.03. Effective Agreement.

     The execution, delivery and performance of this Agreement by the Company and consummation of
the transactions contemplated hereby have been duly and validly authorized by all necessary
corporate, shareholder or other action by the Company; this Agreement has been duly and validly
executed and delivered by the Company; and this Agreement is a valid and legally binding agreement
of the Company, enforceable against the Company in accordance with its respective terms, subject to
bankruptcy, insolvency and similar laws affecting generally the enforcement of creditors’ rights
and the discretion of a court to grant specific performance of contracts.

Section 4.04. No Conflict.

     Neither the execution and delivery of this Agreement, nor the consummation of the transactions
contemplated hereby, nor compliance with their respective terms and conditions shall (a) violate,
conflict with, result in the breach of, constitute a default under, be prohibited by or require any
additional approval under any terms, conditions or provisions of the Company’s articles of
incorporation or by-laws or any other similar corporate or organizational document of the Company;
any mortgage, indenture, deed of trust, loan or credit agreement or other agreement or instrument
to which the Company is now a party or by which it is bound; or any law, ordinance, rule,
regulation, order, judgment or decree of any governmental authority applicable to the Company; or
(b) result in the creation or imposition of any lien, charge or encumbrance of any material nature
upon any of the properties or assets of the Company.

Section 4.05. Approvals and Compliance.

     The Company holds all licenses, approvals, permits and other authorizations, or exemptions
therefrom, required under Applicable Requirements to assume responsibility for servicing the
Mortgage Loans.

Section 4.06. Litigation.

     There is no litigation, claim, demand, proceeding or governmental investigation existing or
pending, or to the Knowledge of the Company, threatened, nor is there any order, injunction or
decree outstanding against or relating to the Company that could (i) have a material adverse effect
upon the performance by the Company of its obligations under this Agreement or (ii) to the
Company’s Knowledge, result in any material loss or liability to Owner. Further, to the Company’s
Knowledge, there is no meritorious basis for any such litigation, claim, demand, proceeding, or
governmental investigation.

Section 4.07. Agency Approval.

     The Company has been approved by GNMA, FNMA and FHLMC and will remain approved as an “eligible
seller/servicer” of residential mortgage loans as provided in GNMA, FNMA, or FHLMC guidelines and
in good standing. The Company has not received any notification from GNMA, FNMA or FHLMC that the
Company is not in compliance with the requirements of the approved “seller/servicer” status. The
Company is a mortgagee approved by the Secretary of HUD pursuant to Section 203 and 211 of the
National Housing Act. The

22

 

Company has not received any notification from HUD that the Company is not in compliance with the
requirements of the approved mortgagee status.

Section 4.08. Servicing Compliance.

     The servicing practices to be used by the Company under this Agreement are, and shall remain,
in all material respects in compliance with all Applicable Requirements, including without
limitation, all federal, state and local laws, rules, all regulations and requirements in
connection therewith, and FNMA guidelines, as applicable. Notwithstanding the foregoing, the
Company’s representations and warranties as to the proper servicing of interest-only ARM loans
shall be effective upon the fulfillment of the covenants set forth in Section 2.09 of this
Agreement.

Section 4.09. No Inquiries.

     The Company has not received written notice from or on behalf of FHA, HUD, FDIC, FNMA, FHLMC
or GNMA, advising the Company of its failure to comply with applicable servicing or claims
procedures, or resulted in a request for repurchase of mortgage loans or indemnification in
connection with any mortgage loans.

Section 4.10. Contingency Plan.

     The Company has in place a contingency plan that will enable it to perform its obligations
under this Agreement in all material respects, at another location within [* * *] in the event its
primary location is rendered inoperative as a result of a natural or other disaster or emergency,
and once the Company relocates to its backup site, it shall make arrangements to connect the Owner
to the Company’s backup EDP and provide continued service as stated in this Agreement, provided
that the Company has granted the Owner access to its primary EDP.

Section 4.11. Licenses and Approvals.

          (a) The Company maintains and shall maintain, in good standing, all licenses and approvals
necessary to service the Mortgage Loans and maintains and shall at all times maintain the capital
requirements imposed by the licensing or approving entities having jurisdiction over the Company.

          (b) The Company has filed applications for all applicable licenses and qualifications to do
business and to service the Mortgage Loans in the U.S. Virgin Islands.

Section 4.12. Fidelity and E&O Insurance.

     The Company maintains and shall at all times maintain error and omissions and fidelity
insurance coverage of the type and in the amounts required by FNMA.

Section 4.13. Sufficiency of Systems and Personnel.

     The Company has, and shall at all times maintain during the term of this Agreement,

 

			
	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

23

 

sufficient systems, including but not limited to the Company’s EDP, and trained and experienced
personnel in place to perform. its obligations under this Agreement. Notwithstanding the
foregoing, the Company’s representations and warranties as to the proper servicing of ARM Loans
shall be effective upon the fulfillment of the covenants set forth in Section 2.09 of this
Agreement.

Section 4.14. Compliance with Laws.

     For so long as, and to the extent that, the Company services the Mortgage Loans, the Company
will continue to comply with each applicable federal, state, or local, law, statute, and ordinance,
and any rule, regulation, or order issued thereunder, pertaining to the subject matter of this
Agreement, including, but not limited to, usury, RESPA, Consumer Credit Reporting Act, Equal Credit
Opportunity Act, Federal Deposit Insurance Corporation Improvement Act, Regulation B, Fair Credit
Reporting Act, Fair Debt Collection Practices Act, Fair Housing Act, Truth in Lending Act and
Regulation Z, Flood Disaster Protection Act of 1973, and any applicable regulations related
thereto, and such other fair housing, anti-redlining,’ equal credit opportunity, truth-in-lending,
real estate settlement procedures, fair credit reporting, and every other prohibition against
unlawful discrimination in residential mortgage lending or governing consumer credit, and all state
consumer credit statutes and regulations, as amended. In the event the Owner has a reasonable good
faith belief in the Company’s non-compliance with this Section 4.14 and upon Owner’s written
request, the Company shall deliver to Owner reasonable evidence of compliance with any of the
requirements of this Section 4.14.

Section 4.15. Financial Condition of the Company.

     Neither the Company, its parent, nor any of its subsidiaries is in bankruptcy, receivership or
conservatorship. The Company has the requisite financial resources and ability to meet its
obligations under this Agreement, including, but not limited to, any and all indemnification
obligations.

ARTICLE V

BOOKS AND RECORDS;

 TRANSFER OF MORTGAGE LOANS

Section 5.01. Books and Records.

     The Company shall be responsible for maintaining, and shall maintain, a complete set of
records for the Mortgage Loans. The Company’s books and records shall clearly reflect the
ownership of the Mortgage Loans by the Owner and subsequent assignments and transfers of the
Mortgage Loans pursuant to Section 5.02 hereof. All documents, records and correspondence,
regardless of the media in which they are stored or maintained, are property of the Owner, and the
Company shall hold the same in a fiduciary capacity for the Owner. The Company may retain copies
of all such documents, records and correspondence as may be necessary to service the Mortgage Loans
under this Agreement.

24

 

Section 5.02. Transfer of Mortgage Loans.

          (a) The Company acknowledges that from time to time the Owner intends to sell and/or assign to
various Subsequent Purchasers all or a portion of the Mortgage Loans that are subject to this
Agreement, thereby effecting one or more Whole Loan Transfers or Pass-Through Transfers of such
Mortgage Loans. The Company acknowledges that the Owner shall have the right to sell and assign
any or all of the Mortgage Loans, and the Company shall recognize the related Subsequent Purchaser
as the owner of such Mortgage Loans. With respect to each Whole Loan Transfer and each
Pass-Through Transfer, as applicable, entered into by the Owner or any Affiliate of the Owner, the
Company agrees to assist the Owner in various capacities, and shall, among other things:

     (i) cooperate fully and negotiate in good faith with the Owner, any prospective
Subsequent Purchaser, any Rating Agency or any party to any agreement executed in connection
with such Whole Loan Transfer or Pass-Through Transfer with respect to all reasonable
requests and due diligence procedures and shall use its best efforts to facilitate such
Whole Loan Transfer or Pass-Through Transfer; provided, however, that if the information
provided by the Company to satisfy any such request or to comply with any such procedure is
not required by any other Transaction Agreement, or is not contained in a standard report
produced by the Company’s EDP, any reasonable out-of-pocket expenses incurred by the Company
to provide such information shall be paid by the Owner. However, it is agreed that the
Owner shall provide notice to Company of a: (i) Whole Loan Transfer within five (5)
Business Days of the related trade date and (ii) Pass-Through Transfer within five (5)
Business Days of the submission of a loan pool to the Rating Agencies;

     (ii) execute as servicer or sub-servicer, as the case may be, all applicable agreements
to be executed (or amend existing contracts, as necessary) in connection with such Whole
Loan Transfer or Pass-Through Transfer that govern the servicing and administration of the
Mortgage Loans (and any agreements and other documents incidental thereto, including
officer’s certificates) as the Owner reasonably requests. The governing documents for
Pass-Through Transfers shall contain provisions customarily included in secondary mortgage
market securitized transactions with respect to like assets that provide for the public
issuance or private placement of securities that (a) evidence an interest in mortgage loans
like the Mortgage Loans and (b) one or more classes of which may be rated “AA/Aa” or higher
by the Rating Agencies, provided that no such agreement or amendment materially increases
the existing duties of the Company under the Transaction Agreements;

     (iii) restate as of the closing date for a Whole Loan Transfer or Pass-Through Transfer
the representations and warranties set forth in the Purchase and Sale Agreement; provided,
however, that the Company may qualify any such representation or warranty to reflect an
event or circumstance that arose after the applicable Transfer Date and that would cause
such representation or warranty to be inaccurate, so long as such event or circumstance is
not a breach by the Company of any term or condition of any Transaction Agreement.

25

 

     (iv) deliver to the Owner or its Affiliates, at the expense of the Owner, for inclusion
in any prospectus, private placement memorandum or other offering material or disclosure
document such written information regarding the Company or its Affiliates as shall be
reasonably requested by the Owner or its Affiliate (including but not limited to its audited
financial statements, and its mortgage loan delinquency, foreclosure and loss experience)
and indemnify and hold harmless the Owner and any Affiliate of the Owner for any and all
liabilities, losses and expenses arising under the Securities Act of 1933, as amended, in
connection with any material misstatement contained in such written information or any
omission of a material fact the inclusion of which was necessary to make such written
information not misleading;

     (v) deliver to the Owner, and to any Person designated by the Owner, the Company’s
audited financial statements and such written information provided by the Company or its
Affiliates (including but not Limited to the information referred to in clause (iv) above
and as set forth in Section 11.02 of this Agreement) as shall be reasonably requested by the
Owner or its Affiliates;

     (vi) deliver to the Owner, and to any Person designated by the Owner, at the expense of
the Owner, such opinions of counsel, if any, as are customarily delivered by servicers in
connection with Whole Loan Transfers or Pass-Through Transfers;

     (vii) provide, on an ongoing basis from information obtained through its servicing of
the Mortgage Loans, any information necessary to enable the “tax matters person” for any
REMIC in a Pass-Through Transfer, including any master servicer or trustee acting in such
capacity, to perform its obligations in accordance with applicable law and customary
secondary mortgage market standards for securitized transactions, one or more classes of
securities issued in which are rated “AA/Aa” or higher by the Rating Agencies; provided,
however, that if such information is not required by any other Transaction Agreement, or is
not contained in a standard report produced by the Company’s EDP, any set-up costs incurred
by the Company to provide such information shall be borne by the Owner.

     (viii) maintain any applicable custodial account and escrow account in accordance with
the requirements of the Rating Agencies for a securitized transaction, one or more classes
of securities issued in which are rated “AA/Aa” or higher, which requirements may include
maintaining such custodial account and escrow account with a depository institution the
long-term unsecured debt rating of which is rated “AA/Aa” or higher by the Rating Agencies.

          (b) Notwithstanding clause (ii) of Section 5.02(a), no agreements, consents or modifications
referred to therein shall contain any provisions that reduce the Servicing Fee as to any Mortgage
Loan or that affect the calculation of the Servicing Fee as to any Mortgage Loan in a manner that
is materially adverse to the Company. All Mortgage Loans not sold or transferred pursuant to a
Whole Loan Transfer or Pass-Through Transfer shall be subject to this Agreement and shall continue
to be serviced and administered in accordance with the terms hereof and with respect thereto this
Agreement shall remain in full force and effect.

26

 

ARTICLE VI

PAYMENTS TO THE OWNER

Section 6.01. Paid-in-Full Remittances.

     The Company shall determine, and shall accept, the amount required to pay a Warehouse Mortgage
Loan or Special Warehouse Mortgage Loan in full, including interest to the related payoff date, and
within [* * *] after the Company’s receipt of such proceeds shall remit the same to the Owner. The
Company shall include a schedule of Mortgage Loans paid in full with such remittance substantially
in the form of the ALLTEL report P110 that provides loan-level detail of the proceeds received from
such remittances.

Section 6.02. Monthly Remittances.

          (a) On each Interim Remittance Date, the Company shall remit to the Owner all collections of
principal and interest received with respect to the Warehouse Mortgage Loans and Special Warehouse
Mortgage Loans from the period beginning on the day after the previous Fiscal Month End and ending
on the [* * *] day of the calendar month of such remittance. Such remittance shall not include
payments relating to Warehouse Mortgage Loans and Special Warehouse Mortgage Loans that were paid
in accordance with Section 6.01.

          (b) On each Fiscal Month Remittance Date, the Company shall remit to the Owner all collections
of principal and interest received with respect to the Warehouse Mortgage Loans and Special
Warehouse Mortgage Loans from the period beginning on the [* * *] day of the calendar month
relating to such remittance and ending on the Fiscal Month End of such month. Such remittance
shall not include payments relating to Warehouse Mortgage Loans and Special Warehouse Mortgage
Loans that were paid in accordance with Section 6.01.

          (c) On each Portfolio Remittance Date, the Company shall distribute to the Owner with respect
to all Portfolio Mortgage Loans and Special Portfolio Mortgage Loans: (i) all amounts due on the
Due Date immediately preceding that Portfolio Remittance Date; plus (+) (ii) any Principal
Prepayments received during the related Principal Prepayment Period; plus (+) (iii) any related
Prepayment Interest Shortfalls.

Section 6.03. Monthly Advances by the Company.

          (a) On each Portfolio Remittance Date the Company shall, pursuant to Section 6.02(c), remit to
the Owner the total of all scheduled Monthly Payments due on the preceding Due Date for the
Portfolio Mortgage Loans and Special Portfolio Mortgage Loans whether or not such Monthly Payments
were collected from the Mortgagor. Any amounts due but uncollected shall be funded by the Company
as a Monthly Advance.

          (b) With respect to any Portfolio Mortgage Loan or Special Portfolio Mortgage Loan for which a
Monthly Advance was made in accordance with Section 6.03(a), the Company may reimburse itself for
its advances from Mortgagor collections that are subsequently deposited into the applicable
Custodial Funds Account.

 

			
	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

27

 

          (c) If the Company determines, in its reasonable judgment, that any uncollected payment due from a
Mortgagor that is due to be paid to the Owner in accordance with Section 6.02(c) would not be
recoverable from Liquidation Proceeds or other payments or recoveries (including Insurance Proceeds
or Condemnation Proceeds) on the related Portfolio Mortgage Loan or Special Portfolio Mortgage
Loan, then the Company shall not advance the amount considered to be nonrecoverable by the Company,
and that amount shall therefore not be remitted to the Owner until the Portfolio Mortgage Loan or
Special Portfolio Mortgage Loan is liquidated.

          (d) With respect to any Portfolio Mortgage Loans or Special Portfolio Mortgage Loans
determined to be nonrecoverable and whose Monthly Payments are omitted from the scheduled monthly
remittance, the Company shall deliver an officer’s certificate to the Owner setting forth the basis
of such determination.

Section 6.04. Statements to the Owner.

          (a) With the exception of the P-185 (Report of Mortgage Accruals as of Date), which is to be
delivered daily, the reports listed on Exhibit G will be delivered to Owner, at to all
Mortgage Loans, within five (5) Business Days after the “cut-off’ date specified in Exhibit
G. The forms of these reports are contained in, and such reports will be generated by, the
Company’s EDP, and the Company shall use its best efforts to deliver such reports via electronic
means to the Owner or its designee. The Company shall provide the Owner separate reports for the
Portfolio Mortgage Loans, Special Portfolio Mortgage Loans, Warehouse Mortgage Loans and Special
Warehouse Mortgage Loans.

          (b) The Company shall provide the Owner with such information concerning the Mortgage Loans as
is necessary for the Owner to prepare its federal income tax return as the Owner may reasonably
request from time to time; provided, however, that if such information is not required by any other
Transaction Agreement, or is not contained in a standard report produced by the Company’s EDP, any
set-up costs incurred by the Company to provide such information shall be borne by the Owner.

Section 6.05. Form of Payment; Interest on Late Payments.

          (a) All distributions and remittances made to the Owner pursuant to this Agreement shall be
made by wire transfer of immediately available funds to the account of the Owner at a bank or other
entity having appropriate facilities therefor or, if the Owner shall have so notified the Company,
by check mailed to the address of the Owner provided for in the Purchase and Sale Agreement, or by
any other method agreed upon by both parties.

          (b) Without limiting the Owner’s rights set forth in Section 10.01 hereof, with respect to any
distribution or remittance received by the Owner on or after the [* * *] following the Business Day
on which such payment was due, the Company shall pay to the Owner [* * *]

 

			
	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

28

 

ARTICLE VII

SERVICING COMPENSATION

Section 7.01. Servicing Compensation.

          (a) Subject to the following paragraph, as compensation for its services hereunder, the
Company shall be entitled to a Servicing Fee payable with respect to each Mortgage Loan. As to
each Mortgage Loan, the Servicing Fee shall be payable monthly from payments of interest on such
Mortgage Loan prior to the deposit of such payments into the applicable Custodial Funds Account,
shall accrue at the applicable Base Servicing Fee Rate, and shall be computed on the basis of the
same principal amount and for the same period respecting which such interest payment was computed.

          (b) The Servicing Fee for each Mortgage Loan shall be payable solely from (i) the interest
portion of the related Monthly Payment (to the extent paid by the Mortgagor, but only if a full
interest payment is received), or (ii) from any payment of interest made with respect to the
Mortgage Loan from the proceeds of foreclosure or any judgment, writ of attachment or levy against
the Mortgagor or the Mortgagor’s assets, or (iii) from funds paid in connection with any prepayment
in full, or (iv) from Insurance Proceeds or Liquidation Proceeds.

          (c) As additional compensation hereunder, the Company may retain [* * *].

          (d) The Company’s right to the Servicing Fee shall not be transferred in whole or in part
except in connection with any permitted transfer of all the Company’s obligations under this
Agreement. The Company shall be required to pay all expenses incurred by it in connection with its
servicing activities hereunder and shall not be entitled to reimbursement therefor except as
specifically provided for herein.

Section 7.02. Adjustments to Servicing Compensation.

     The parties acknowledge that the sale or assignment of Mortgage Loans by Owner to a Subsequent
Purchaser by means of a Transfer pursuant to Section 5.02 may require the Owner to arrange to pay a
Servicing Fee based on a rate that is different from the Base Servicing Fee Rate.

     The Company agrees to purchase the right to receive the Final Servicing Fee Rate at the
applicable price set forth in the “Final Servicing Fee Rate” section of the Pricing Matrix. In the
event that the Owner chooses to sell the Company a Final Servicing Fee Rate that is less than the
Gross Yield Differential, then the difference between the Gross Yield Differential and the Final
Servicing Fee, Rate shall be considered Excess Servicing and shall be paid to the Owner on the
remittance date specified in any servicing agreement with a Subsequent Purchaser, to the extent

 

			
	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

29

 

it is received from the related Mortgagor. To the extent that the Gross Yield Differential is less
than the Final Servicing Fee Rate, Owner agrees to purchase such difference from the Company
pursuant to the “downward adjustment” section of the Pricing Matrix. All differences in the Base
Servicing Fee Rate and the Final Servicing Fee Rate shall be settled in connection with the Final
Purchase Price Adjustment pursuant to Section 7.03 of this Agreement.

Section 7.03. Computation and Payment of the Final Purchase Price Adjustment.

     Within five (5) Business Days following any Transfer, Owner shall provide to Company a
computation of Final Purchase Price Adjustment relating to the Mortgage Loans that were the subject
of such Transfer. The Final Purchase Price Adjustment shall be computed on the basis of the
outstanding principal balance of the Mortgage Loan(s) as of the settlement date of the Transfer.
The Final Purchase Price Adjustment shall be paid by the owing party to the other party by wire
transfer of immediately available funds within five (5) Business Days following receipt of the
computation of Final Purchase Price Adjustment by the Company.

     From time to time, Owner shall review all Mortgage Loans being serviced pursuant to this
Agreement and shall designate which of them are Portfolio Mortgage Loans and which of them are
Special Portfolio Mortgage Loans. Owner shall provide the Company with a list of all Portfolio
Mortgage Loans and Special Portfolio Mortgage Loans. Thereafter, Owner shall provide to Company a
computation of Final Purchase Price Adjustment relating to such Portfolio Mortgage Loans and
Special Portfolio Mortgage Loans. The Final Purchase Price Adjustment shall be computed on the
basis of the outstanding principal balance of the respective Portfolio Mortgage Loans and Special
Portfolio Mortgage Loans as of the end of the calendar month contemplated above. The Final
Purchase Price Adjustment shall be paid by the owing party to the other party by wire transfer of
immediately available funds within twenty (20) Business Days following the close of the applicable
calendar month. In the event that after designation as a Portfolio Mortgage Loan or Special
Portfolio Mortgage Loan, Owner transfers such Mortgage Loan in connection with a Transfer, the
parties shall determine another purchase price adjustment based upon the Pricing Matrix then in
effect. In these circumstances, only the pricing adjustments relating to the Final Servicing Fee
Rate and remittance cycle shall apply. Such purchase price adjustment shall be computed on the
basis of the outstanding principal balance of such Mortgage Loan(s) as of the settlement date of
the Transfer and paid by the owing party to the other party by wire transfer of immediately
available funds within ten (10) Business Days following the agreement on such adjustment.

ARTICLE VIII

SOLICITATION 

Section 8.01. Solicitation

     Without Owner’s prior written consent, which may be withheld by the Owner in its sole
discretion, neither the Company nor any Affiliate shall solicit any Mortgagor, or cause any
Mortgagor to be solicited, for subordinate financing of any Mortgage Loan or any investment or
financial services or products, including, without limitation, insurance and brokerage account
services. The Company (but not any of its Affiliates) may solicit Mortgagors for prepayment of

30

 

the related Mortgage Loans, but only if (i) the Company has obtained the Owner’s prior written
consent, which will not be unreasonably withheld, (ii) such solicitation is made in compliance with
Applicable Requirements and (iii) upon obtaining any positive responses to such solicitation, the
Company either (A) processes and closes the related Mortgage Loans pursuant to the Origination
Agreement (in the case of Mortgage Loans subject to the Origination Agreement) or (B) forwards such
responses to the Owner for Owner to process and close (in the case of Mortgage Loans not subject to
the Origination Agreement). Any Servicing Rights resulting from Mortgage Loans closed pursuant to
subclause (A) or subclause (B) of clause (iii) of the preceding sentence shall be sold to the
Company pursuant to the Purchase and Sale Agreement. Neither the Owner nor any of its Affiliates
shall be prohibited from soliciting any Mortgagor or causing any Mortgagor to be solicited for any
product or service now offered (or hereafter offered) by the Owner or any Affiliate of the Owner,
other than for prepayment of any Mortgage Loan. The Company shall not prepare or disseminate, for
compensation or otherwise, any mailing lists relating to the Mortgagors, the Mortgage Loans, the
Servicing Rights, or otherwise, including any lists of Mortgagors, without the Owner’s prior
written consent, which may be withheld by the Owner in its sole discretion. The parties hereto
nevertheless agree that (i) either the Company, the Owner or their Affiliates may from time to time
undertake promotions that are directed to either their own general customer base or to the general
public at large and that do not target Mortgagors directly, including, without limitation,
newspaper, radio and television advertisements and mass mailing or telephone solicitations and that
(ii) offers by the Company, the Owner or their Affiliates to refinance Mortgage Loans in response
to, or as a result of, contact initiated by the related Mortgagors or their representatives shall
not constitute solicitation.y

ARTICLE IX

CONDITIONS PRECEDENT TO OBLIGATIONS 

OF THE OWNER AND THE COMPANY

Section 9.01. Transaction Agreements.

     The obligations of the Owner and the Company are subject to the following: (a) the execution,
on or prior to February 29, 2000 (or such later date as to which the Owner and the Company may
hereafter agree), of the Securitized Loan Primary Servicing Agreement, the Purchase and Sale
Agreement and the Subservicing Agreement and (b) as of the first Transfer Date, the Transaction
Agreements being in full force and effect and the Owner and the Company being in compliance in all
material respects with the covenants, conditions, and agreements applicable to them under the
Transaction Agreements.

ARTICLE X

DEFAULT 

Section 10.01. Events of Default.

     In case one or more of the following events (each, an “Event of Default”) shall occur and be
continuing, that is to say:

31

 

     (i) any failure by the Company to timely remit to the Owner any payment required to be
made under the terms of this Agreement; or

     (ii) any material breach on the part of the Company of any other term, agreement,
covenant, representation or warranty in this Agreement that has not been cured after written
notice and a thirty (30) day curative period; or

     (iii) there shall have occurred under any Transaction Agreement a default of the
Company; or

     (iv) following entry against the Company of a decree or order of a court or agency or
supervisory authority having jurisdiction for the appointment of a trustee, conservator,
receiver, liquidator, assignee, custodian or sequestrator (or other similar official) for
the Company in any federal or state bankruptcy, insolvency, readjustment of debt, marshaling
of assets and liabilities or similar proceedings, or for the winding-up or liquidation of
the Company’s affairs, if such decree or order has remained in force undischarged or
unstayed for a period of sixty (60) days, or

     (v) upon consent by the Company to the appointment of a trustee, conservator, receiver,
liquidator, assignee, custodian or sequestrator (or other similar official) in, or
commencement of a voluntary case under, any federal or state bankruptcy insolvency,
readjustment of debt, marshaling of assets and liabilities or similar proceedings of or
relating to the Company or of or relating to all or substantially all of the Company’s
property; or

     (vi) upon the Company’s (A) admitting in writing its inability to pay its debts
generally as they become due, (B) filing a petition to take advantage of any applicable
insolvency or reorganization statute, (C) making an assignment for the benefit of its
creditors or (D) voluntarily suspending payment of its obligations; or

     (vii) the Company ceases to be eligible to sell mortgage loans to or service mortgage
loans for FNMA, FHLMC or GNMA or ceases to be a HUD-approved mortgagee; or

     (viii) the Company (a) merges or consolidates with or into another Person, (b) sells
substantially all of its assets or (c) sells a controlling interest that results in a change
in control of the Company (other than any such change of control that results in the Company
being owned or controlled by an Affiliate of the Company, in existence on the date of this
Agreement); or

     (ix) the Company fails to meet a “Service Standard” set forth in Section I of the
Operations Guide and the Company fails to remedy such deficiency within the 90 day period
set forth in Section 10.02(b);

then, and in each and every such case, so long as an Event of Default shall not have been remedied,
the Owner, by notice in writing to the Company, in addition to whatever rights the Owner may have
at law or in equity to damages, including injunctive relief an specific performance, may terminate
all the rights and obligations of the Company under (a) this

32

 

Agreement, without paying the Company any termination fee, except as set forth in the following
paragraph, and (b) any other Transaction agreement, As to the Purchase and Sate Agreement. such
agreement maybe terminated as to the Subsequent Flow Mortgage Loans and the Quarterly Bulk Mortgage
Loans, as more particularly defined therein.

     Notwithstanding the foregoing, the Owner may provide the Company a written notice of its
intent to terminate this Agreement as a result of an Event of Default in Section 10.01(ix). Upon
receipt of such notice, the Owner and the Company shall, within fifteen (15) Business Days
thereafter, each retain an Arbitrator to determine the Fair Market Value for the Servicing Rights.
The parties shall cause their Arbitrators to make the Fair Market Value determination within twenty
(20) Business Days after being retained. Upon receipt of notice of the Fair Market Value from the
Arbitrators, the Owner may elect to terminate this Agreement and, upon such termination shall,
barring any other Event of Default, pay the Company the Fair Market Value for the Servicing Rights
of the Mortgage Loans owned by the Company as of such date.

     On or after the receipt by the Company of written notice of termination of this Agreement, all
authority and power of the Company under this Agreement, whether with respect to the Mortgage Loans
or otherwise, shall pass to and be vested in the successor appointed pursuant to Section 13.01.
Upon written request from the Owner, the Company shall prepare. execute and deliver any and all
documents and other instruments, deliver to the successor all mortgage files, and do or accomplish
all other acts or things necessary or appropriate to effect the purposes of such notice of
termination, including the transfer and endorsement or assignment of the Mortgage Loans and related
documents, or otherwise, at the Company’s sole expense. The Company agrees to cooperate with the
Owner and such successor in effecting the termination of the Company’s responsibilities and rights
hereunder as provided above, including, without limitation, the transfer to such successor for
administration by it of all cash amounts which shall at the time be credited by the Company to the
Custodial Funds Accounts or the Escrow Accounts or thereafter received with respect to the Mortgage
Loans.

Section 10.02. Failure of the Company to Maintain Service Standards/ Termination.

          (a) If, as evidenced by the monthly reports that the Company is required to furnish to the
Owner pursuant to Section II of the Operations Guide, any service standard set forth in Section I
of the Operations Guide is not satisfied (a “Service Deficiency”) during [* * *], at Owner’s
request the Company shall develop a plan describing the countermeasures and targets/goals the
Company will use to correct the Service Deficiency, and the Company shall present such plan to the
Owner within 15 days after the Owner has notified the Company of the Service Deficiency. Within 15
days after receiving the plan from the Owner, the Owner shall either (x) accept the plan or (y)
instruct the Company to modify the plan, and, in the case of clause (y), the Company shall make
such modifications. Unless the Owner agrees otherwise, the Company shall cure the Service
Deficiency within [* * *] (the “Level I Curative Period”) from the date on which the Owner has
accepted the plan or notified the Company of the modifications to be made to the plan.

          (b) If the Company fails to correct any Service Deficiency by the end of the Level I Curative
Period, then, for a period [* * *] from the end of any Level I

 

			
	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

33

 

Curative Period, the Company shall pay the Owner liquidated damages of $[* * *]. The Company shall
pay such liquidated damages to the Owner by wire transfer of immediately available funds within [* * *]
after receipt of an invoice from the Owner. If a Service Deficiency has not been cured within
such [* * *], the Owner may at its sole option, within [* * *] after receipt of the notice of the
Fair Market Value from the Arbitrators, terminate this Agreement and any or all other Transaction
Agreements.

          (c) If a Service Deficiency has not been cured and the Owner elects not to terminate this
Agreement as provided for in Section 10.02(b), then within [* * *] of Owner’s request, the Company
shall develop and present a plan to the Owner describing new countermeasures and targets/goals that
the Company will use to correct the Service Deficiency. Following receipt of the plan, the Company
and the Owner shall follow and be subject to the requirements of Section 10.02(a) and (b),
including but not limited to the liquidated damages and termination provisions.

          (d) The remedies set forth in this Section 10.02 shall be in furtherance of, and not in
limitation of, Owner’s remedies under this Agreement.

Section 10.03. Waiver of Defaults.

     The Owner, by notice in writing to the Company, may waive any default by the Company in the
performance of its obligations hereunder and its consequences. Upon any such waiver of a past
default, such default shall cease to exist, and any Event of Default arising therefrom shall be
deemed to have been remedied for every purpose of this Agreement. No such waiver shall extend to
any subsequent or other default or impair any right consequent thereon except to the extent
expressly so waived.

Section 10.04. Termination without Cause.

          (a) The respective obligations and responsibilities of the Company shall terminate without
cause: (i) upon the later of the final payment or other liquidation (or any advance with respect
thereto) of the last Mortgage Loan or the disposition of all REO Properties and the remittance of
all funds due hereunder, or (ii) by mutual consent of the Company and the Owner in writing.

          (b) In connection with the sharing of Loan Information, the Purchase and Sale Agreement,
Subservicing Agreement and Securitized Loan Primary Servicing Agreement allow Owner to terminate
any or all of the Transaction Agreements, including but not limited to this Agreement, if (i) in
Owner’s judgment, the Company’s interpretation of the purported change in the Applicable
Requirements is adverse to Owner, (ii) the Owner disagrees and (iii) the Owner and the Company are
unable to resolve such disagreement or if the parties agree that a change in the Applicable
Requirements restricts in any way the information the Company may share with the Owner.
Notwithstanding the foregoing, the Owner may provide the Company a written notice of its intent to
terminate this Agreement as a result of the foregoing. Upon receipt of such notice, the Owner and
the Company shall, within [* * *] thereafter, each to retain an Arbitrator to determine the Fair
Market Value for the Servicing Rights. The parties shall cause their

 

			
	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

34

 

Arbitrators to make the Fair Market Value determination within twenty (20) Business Days after
being retained. Upon receipt of the Fair Market Value from the Arbitrators, the Owner may elect to
terminate this Agreement upon at least ninety (90) days prior written notice and, upon such
termination shall, barring any other Event of Default, pay the Company the Fair Market Value for
the Servicing Rights of the Mortgage Loans owned by the Company as of such date.

Section 10.05. Effect of Termination of Agreement.

          (a) In the event this Agreement is terminated pursuant to the provisions hereof, Article XII,
Sections 8.01, 10.02, 15.02, 15.04 and 15.16 and this Section 10.05 shall remain in effect after
such termination, and all provisions relating to the allocation of responsibility for costs
incurred by the Owner and/or the Company shall remain in effect with respect to acts occurring
before such termination.

          (b) If the Owner terminates this Agreement and any or all of the other Transaction Agreements,
the remedies for liquidated damages set forth in Section 10.02 shall not apply as to any mortgage
loan that the Company continues to service.

ARTICLE XI

ANNUAL CERTIFICATIONS 

Section 11.01. Annual Statement as to Compliance.

     The Company will deliver to the Owner on or before March 1 of each year, beginning with March
1, 2001, a certificate signed by a senior vice president or more senior officer stating that (i) a
review of the activities of the Company during the preceding calendar year and of performance under
this Agreement has been made under such officer’s supervision, and (ii) to the best of such
officer’s knowledge, based on such review, the Company has fulfilled all of its obligations under
this Agreement throughout such year in all material respects, or, if there has been a default in
the fulfillment of any such obligation, specifying each such default known to such officer and the
nature and status thereof.

Section 11.02. Annual Independent Certified Public Accountants’ Servicing Reports.

          (a) On or before March 1 of each year, beginning with March 1, 2001, the Company at its
expense shall cause a nationally recognized firm of independent certified public accountants to
furnish a report to the Owner to the effect that (i) all Mortgage Loans serviced by the Company
were included in the total population of mortgage loans subject to selection for testing in such
firm’s examination of certain documents and records, that such examination was conducted
substantially in compliance with the Uniform Single Attestation Program for Mortgage Bankers and
that such examination disclosed no items of material noncompliance with the provisions of the
Uniform Single Attestation Program for Mortgage Bankers, except for such items of noncompliance as
shall be set forth in such report and (ii) such accounting firm (or another nationally recognized
firm) has reviewed the operations and control procedures of the Company relative to the Company’s
EDP and has determined that such system has been suitably designed to service the Mortgage Loans
pursuant to this Agreement,

35

 

          (b) Prior to execution of this Agreement, the Company at its expense shall have caused, and
annually thereafter within 90 days after the close of the Company’s fiscal year, beginning with the
close of the 1999 fiscal year, the Company at its expense shall cause, a nationally recognized firm
of independent public accountants that is a member of the American Institute of Certified Public
Accountants to furnish to the Owner audited financial statements of the Company for the then most
recently closed fiscal year, together with an opinion thereon of such public accountants that
either is unqualified or contains only such qualifications as are acceptable to the Owner.

          (c) On or before March 1 of each year, beginning March 1, 2001, the Company, at its expense,
shall cause (i) the Company’s EDP licensor (which on the date of this Agreement is ALLTEL
Information Services, Inc.) to furnish its Statement of Auditing Standards (“SAS”) 70 Report
(Report on the Processing of Transactions by Service Organizations) to the Owner and (ii) a
nationally recognized firm of independent certified public accountants to furnish to the Owner a
SAS 70 Report that has been prepared by such firm for the Company’s mortgage operations.
Notwithstanding the foregoing, the SAS 70 report described in clause (ii) of the preceding sentence
will not be required to be furnished if the financial statements of the Owner and the Company are
audited by the same firm of independent public accountants.

ARTICLE XII

INDEMNIFICATION

Section 12.01. Indemnification of the Company.

     The Owner shall indemnify and hold the Company, its officers, directors, employees and agents
(the “Company Indemnified Parties”) harmless from, and will reimburse the Company Indemnified
Parties for, any and all Losses incurred by any of the Company Indemnified Parties to the extent
that such Losses result from, are caused by, or arise out of any one or more of the following:

          (a) Any material misrepresentations made by the Owner in this Agreement or in any Schedule,
Exhibit, or certificate furnished pursuant hereto;

          (b) Any material breach of any representations and warranties of the Owner or the
nonfulfillment of any term, covenant, condition, or obligation of the Owner set forth in this
Agreement or in any Schedule, statement, Exhibit, or certificate furnished pursuant hereto, or any
default or failure to perform by the Owner hereunder;

          (c) Any liabilities or obligations, contingent or otherwise, of the Owner of any nature
whatsoever relating to the Owner’s obligations under this Agreement, to the extent that any related
Loss to the Company is not increased by negligence, bad faith or willful misconduct on the part of
the Company;

          (d) Owner’s failure to service a Complex Defaulted Mortgage Loan, as described in Section
2.03, in accordance with applicable law.

     The indemnity provided in this Section 12.01 shall remain in full force and effect

36

 

regardless of any investigation made by the Company or its representatives.

Section 12.02. Indemnification of the Owner. 

     The Company shall indemnify and hold the Owner, its officers, directors, employees and agents
(the “Owner Indemnified Parties”) harmless from, and will reimburse the Owner Indemnified Parties
for, any and all Losses incurred by any of the Owner Indemnified Parties to the extent that such
Losses result from, are caused by or arise out of any one or more of the following:

          (a) Any material misrepresentations made by the Company in this Agreement, or in any schedule,
exhibit, or certificate furnished pursuant hereto;

          (b) Any material breach of any of the representations and warranties of the Company or the
nonfulfillment of any term, covenant, condition or obligation of the Company set forth in this
Agreement or in any schedule, statement, exhibit, or certificate furnished pursuant hereto, or any
default or failure to perform by the Company hereunder;

          (c) Any failure of the Company to comply with the terms of any Applicable Requirements in
connection with servicing the Mortgage Loans;

          (d) Any liabilities or obligations, contingent or otherwise, of the Company of any nature
whatsoever relating to the Company’s obligations under this Agreement, to the extent that any
related Loss to the Owner is not increased by negligence, bad faith or willful misconduct on the
part of the Owner; or

          (e) Any non-compliance with the terms of the powers of attorney or Limited Authorized
Signatories or the use thereof that results in a Loss to the Owner.

     The indemnity provided in this Section 12.02 shall remain in full force and effect regardless
of any investigation made by the Owner or its representatives.

Section 12.03. Notice and Settlement of Claims.

          (a) In the event that either party to this Agreement becomes aware of any material fact giving
rise to any obligation of the other party under this Article XII, including, but not limited to,
any claim or any litigation brought by a third party which may give rise to any such obligation,
such party shall promptly, but in no event later than [* * *], provide the other party with a
notice describing the same. Failure to provide a notice within such [* * *] period shall not
relieve such other party of its obligations under this Article XII, unless such failure materially
prejudices the rights or increases the liability of such other party, and then, such other party’s
liability shall be reduced only by the amount that it actually has been damaged by such failure.

          (b) The indemnifying party (the “Indemnifying Party”) may, at its own cost and expense, assume
defense of any claim, suit, action or proceeding, provided that the counsel is satisfactory to the
indemnified party (the “Indemnified Party”) in the exercise of its reasonable

 

			
	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

37

 

discretion. The party not controlling the defense or prosecution of any such claim, suit, action
or proceeding may participate at its own cost and expense.

          (c) Neither the Indemnifying Party nor the Indemnified Party shall be entitled to settle,
compromise, decline to appeal, or otherwise dispose of any claim, suit, action or proceeding
without the consent of the other party (which consent shall not be unreasonably withheld or
delayed).

          (d) Following the discharge of the Indemnifying Party’s obligations under this Article XII,
the Indemnified Party shall assign to the Indemnifying Party any and all related claims against
third parties. If the Indemnifying Party fails to discharge its obligations under this Article
XII, the Indemnified Party shall be entitled (but not obligated) to pursue (as the assignee of the
Indemnifying Party) any and all claims against third parties which the Indemnifying Party otherwise
would have the right to pursue, including, but not limited to, claims against loan correspondents.
Within fifteen (15) days after receipt, the Indemnified Party shall refund to the Indemnifying
Party the amounts of all recoveries the Indemnified Party received from third parties with respect
to any claim for which the Indemnified Party was reimbursed for its Losses.

          (e) Following the receipt of written notice from the Indemnified Party of a demand for
indemnification, the Indemnifying Party shall seek to cure the problem giving rise to the demand,
if possible, without any actual or contingent liability of the Indemnified Party, and pay the
amount for which it is liable, or otherwise take the actions which it is required to take within
thirty (30) days or such lesser time as may be required by an Insurer or third-party claimant.

ARTICLE XIII

SUCCESSOR TO THE COMPANY

Section 13.01. Successor to the Company.

          (a) Upon termination of the Company’s responsibilities and duties under this Agreement, the
Owner shall (i) directly service the Mortgage Loans under this Agreement or (ii) appoint a
successor.

          (b) The Owner may make such arrangements for the compensation of such successor out of
payments on Mortgage Loans as it and such successor shall agree. In the event that the Company’s
duties, responsibilities and liabilities under this Agreement should be terminated, the Company
shall discharge such duties and responsibilities during the period from the date it acquires
knowledge of such termination until the effective date thereof with the same degree of diligence
and prudence which it is obligated to exercise under this Agreement, and shall take no action
whatsoever that might impair or prejudice the rights or financial condition of its successor. The
resignation or removal of the Company shall not relieve the Company of any representations’,
warranties, covenants or agreements made in connection herewith or affect the remedies available to
the Owner hereunder, it being understood and agreed that such provisions shall be applicable to the
Company notwithstanding any such resignation or termination of the Company, or the termination of
this Agreement.

38

 

          (c) Any termination or resignation of the Company or termination of this Agreement shall not
affect any claims that the Owner may have against the Company due to any failure of the Company to
comply with this Agreement prior to any such termination or resignation.

          (d) The Company, in a timely and reasonable manner (but in any event no later than [* * *]
after the effective date of any termination or permitted resignation of the Company on termination
of this Agreement), shall deliver to the successor (i) the funds in the Custodial Pends Accounts
and Escrow Accounts and (ii) the mortgage files and related documents, statements and computer
files held by it hereunder, and the Company shall account for all funds. The Company shall execute
and deliver such instruments and do such other things all as may reasonably be required to more
fully and definitely vest and confirm in the successor all such rights, powers, duties,
responsibilities, obligations and liabilities of the Company. The successor shall make
arrangements as it may deem appropriate to reimburse the Company for amounts the Company actually
expended pursuant to this Agreement that the successor is entitled to retain hereunder and that
would otherwise have been reimbursable to the Company pursuant to this Agreement but for the
appointment of the Owner or new servicer.

ARTICLE XIV

ANTI-MONEY LAUNDERING

Section 14.01. Compliance.

          (a) The Company shall at all times undertake and perform the requirements set forth in Section
IV of the Operations Guide as the same may be amended from time to time (the “BSA Policies and
Procedures”). The Company shall comply with the BSA Policies and Procedures and shall take
reasonable steps to detect payments that are inconsistent with such policies and procedures. In
the event the Company retains the services of a third party vendor to process the receipt of funds
from Mortgagors (hereafter, a “Lock-Box Vendor”), The Company shall first obtain the Owner’s
consent to the selection of such Lock-Box Vendor, which consent shall not be unreasonably withheld.
Further, the Company shall provide the BSA Policies and Procedures to any such Lock-Box Vendor and
ensure that such Lock-Box Vendor complies with the same.

          (b) The Company shall be responsible for assuring compliance by the Owner with the Owner’s
obligations under the BSA by identifying and reporting possible money laundering and other illegal
activity to the extent set forth in the BSA Policies and Procedures.

          (c) Prior to the first Transfer Date, the Company shall have: (i) appointed a suitable
officer of the Company to be responsible for compliance with the BSA Policies and Procedures; (ii)
caused such officer and any other appropriate persons to have participated in one or more training
sessions on anti-money laundering and bank secrecy act compliance which sessions will be provided
by the Owner or a third party vendor at Owner’s expense; and (iii) implemented policies, procedures
and internal controls to undertake the BSA Policies and Procedures and shall have provided the
Owner with photocopies of internal memoranda and other documents of the Company setting forth such
policies, procedures and internal controls.

 

			
	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

39

 

          (d) Failure of the Company to comply with the terms of this Article XIV in all material respects,
including without limitation the failure of the Company to take any remedial action called for by
the Owner as described in subsection (f) below, shall constitute grounds for the Owner, in its sole
discretion, to terminate: (i) this Agreement pursuant to Section 10.01(ii) hereof; and (ii) any
other Transaction Agreement(s).

          (e) The Company shall indemnify the Owner for any financial losses resulting from the
Company’s failure to comply with the BSA Policies and Procedures.

          (f) The Owner, upon reasonable notice, may audit and test the Company’s compliance with the
provisions of the BSA Policies and Procedures. Any such audit or test may be conducted by the
Owner’s internal auditors or other employees or by. an outside auditing firm. If the Owner
detects weaknesses in or exceptions to the Company’s compliance with the BSA Policies and
Procedures, the Owner shall notify the Company of its findings, and the Company shall immediately
undertake the remedial action suggested by the Owner and shall report to the Owner on the action
taken. Failure on the part of the Company to take such remedial action within [* * *] after
receipt from the Owner of the notice described in the preceding sentence shall constitute grounds
for termination of this Agreement and any other Transaction Agreements as set forth in subsection
(d) above.

ARTICLE XV

MISCELLANEOUS 

Section 15.01. Supplementary Information.

     From time to time, the Owner shall furnish to the Company such information supplementary to
the information contained in the documents and schedules delivered pursuant hereto which is
reasonably available to the Owner as the Company may reasonably request in writing and/or which may
be necessary to enable the Company to file any reports or respond to Mortgagor inquiries in
connection with the Mortgage Loans so long as furnishing such information does not violate the
Applicable Requirements.

Section 15.02. Access to Information: Confidentiality.

          (a) The Company shall, and shall cause the Company’s representatives, including but not
limited to its counsel, accountants and other representatives, and the Company’s Affiliates to,
hold in confidence and not disclose to any third party without the Owner’s prior written consent,
all information relating to the Owner received by the Company, the Company’s representatives and/or
the Company’s Affiliates in connection with the transactions contemplated herein, other than
information (i) received by the Company, the Company’s representatives or the Company’s Affiliates
on a non-confidential basis from a third party having a right to make such disclosure; (ii) that is
or becomes generally available to the public (except as a result of a disclosure in violation of
this Agreement); or (iii) required to be disclosed by law or regulatory or judicial process.

          (b) The Owner shall, and shall cause the Owner’s representatives, including but not limited to
its counsel, accountants and other representatives, and the Owner’s Affiliates to, hold

 

			
	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

40

 

in confidence and not disclose to any third party without the Company’s prior written consent, all
information relating to the Company received by the Owner and/or the Owner’s representatives in
connection with the transactions contemplated herein, other than information (i) received by the
Owner or the Owner’s representatives on a non-confidential basis from a third party having a right
to make such disclosure; (ii) that is or becomes generally available to the public (except as a
result of a disclosure in violation of this Agreement); or (iii) is required to be disclosed by law
or regulatory or judicial process.

          (c) The Company acknowledges that the Owner is licensed as a mortgage
lender/originator/servicer in numerous jurisdictions and that, pursuant to such licenses and
similar licenses, the Owner is requested from time to time to make available to various
governmental officials and examiners various loan level information, documents, and similar items
including, but not limited to, certain “mortgage loan servicing” information. If the Owner is
required to produce any such mortgage loan servicing information, the Company shall make all such
information available to the Owner in a timely manner at Owner’s cost and expense, provided that
the Company’s dissemination of such information does not violate the Applicable Requirements.

          (d) This Section 15.02 shall survive any termination of this Agreement.

Section 15.03. Further Assurances.

          (a) The Owner and the Company shall cooperate in good faith to consummate the transactions
contemplated by this Agreement.

          (b) In order for the parties hereto to perform their respective obligations hereunder, each
party shall furnish to the other party such reports, information or documentation supplementary to
the information contained in the documents and schedules delivered pursuant hereto and deliver such
reports, information or documentation as may reasonably be requested by such party and as are
reasonably normal and customary in the mortgage loan servicing industry.

Section 15.04. Survival.

     Except as otherwise provided herein, all representations, warranties, covenants, indemnities
and other agreements of the parties to this Agreement set forth herein or in any exhibit, schedule
or other document or certificate delivered or to be delivered pursuant hereto shall survive each
applicable Transfer Date regarding the Mortgage Loans that are being serviced pursuant to this
Agreement.

Section 15.05. Governmental Authorities; Laws and Severability.

     The terms and provisions of this Agreement are expressly made subject to applicable federal
and state statutes, laws, and rules and regulations promulgated thereunder, as amended from time to
time. Any rule, regulation or administrative policy of any government agency having jurisdiction
that relates to the servicing of mortgage loans shall be deemed to be incorporated herein, and
shall supersede the terms of this Agreement, unless such incorporation shall materially impair the
contemplated benefits to be received by the parties pursuant to this Agreement, in which event the
parties shall renegotiate the terms and conditions hereof to reflect a fair allocation of the
economic benefits contemplated hereby. In the event any provision of this

41

 

Agreement is deemed by a court of competent jurisdiction to be in violation of any of the above.
such provision shall be of no force or effect, and this Agreement shall continue as though such
superseded provision were not contained in this Agreement.

Section 15.06. Form of Payment to be Made.

     Unless otherwise provided herein or agreed to in writing by the parties, all payments
contemplated herein shall be made by wiring immediately available funds to the account designated
by the Owner or the Company, as applicable.

Section 15.07. Assignability.

     Neither the Owner nor the Company shall assign this Agreement, or delegate any duty hereunder,
without the prior written consent of the other party. Notwithstanding the above prohibition, this
Agreement may be assigned by either party to such party’s Affiliate upon thirty (30) days’ prior
written notice to the other party hereto, provided the Affiliate is an Affiliate as of the date
hereof and as the ability to perform the obligations of the Company hereunder.

Section 15.08. Certain Costs.

     Unless otherwise set forth in this Agreement, each party shall bear their respective costs in
fulfilling their responsibilities herein.

Section 15.09. Notices.

     All notices, requests, demands and other communications that are required or permitted to be
given under this Agreement shall be in writing and shall be deemed given if delivered personally,
transmitted by facsimile (and telephonically confirmed), mailed by registered or certified mail,
return receipt requested, or sent by commercial overnight courier to the other party at the
following address:

     If to the Company, to:

	 	 	 	 	 	 	 
	 	 	 	 	Cendant Mortgage Corporation

3000 Leadenhall Road

Mt. Laurel, New Jersey 08054
	 

	 	 	 	Attn:
	 	Robert E. Groody

Chief Financial Officer

Ph: (856) 917-6822

Fax: (856) 917-6910

42

 

	 	 	 	 	 	 	 
	 	 	With a Copy to:
	 
	 	 	 	 	 	 
	 	 	 	 	Cendant Mortgage Corporation

3000 Leadenhall Road

Mail Stop LGL

Mt. Laurel, New Jersey 08054
	 

	 	 	 	Attn:
	 	William Brown, Esq.

General Counsel

Ph: (856) 917-9403

Fax: (856) 917-9422
	 
	 	 	 	 	 	 
	 	 	If to the Owner, to:
	 
	 	 	 	 	 	 
	 	 	 	 	Merrill Lynch Credit Corporation

4802 Deer Lake Drive East

Jacksonville, Florida 32246
	 

	 	 	 	Attn:
	 	Robert J. Smith

Title: Senior Vice President

Ph: (904) 218-6056

Fax: (904) 218-6114
	 
	 	 	 	 	 	 
	 	 	With a Copy to:
	 
	 	 	 	 	 	 
	 	 	 	 	Merrill Lynch Credit Corporation

4802 Deer Lake Drive East

Jacksonville, Florida 32246
	 

	 	 	 	Attn:
	 	John J. Donlon

General Counsel

Ph.: (904) 218-8830

Fax: (904) 218-8848

     or to such other address as the Company or the Owner shall have specified in writing to the
other.

Section 15.10. Entire Agreement: Construction.

     The Transaction Agreements constitute the entire agreement between the parties with respect to
the subject matter hereof. No amendments, modifications, or supplements of this Agreement shall be
binding unless executed in writing by the parties hereto. Reference to sections, subsections,
schedules, or exhibits in this Agreement are to sections and subsections of, and schedules and
exhibits to, this Agreement. The schedules and exhibits are part of this Agreement. Accounting
terms not otherwise defined herein have the meanings assigned to them in accordance with generally
accepted accounting principles. The words “herein”, “hereby”, “hereunder” and other words of
similar import refer to this Agreement as a whole and not to any particular provision. This
Agreement and all documents relating thereto, including, without limitation, (i) consents, waivers
and modifications that may hereafter be executed, (ii) documents received by any party at the
closing, and (iii) financial statements, certificates and other information previously or hereafter
furnished, may be reproduced by any photographic,

43

 

photostatic, microfilm, micro-card, miniature photographic or other similar process. The parties
agree that any such reproduction shall be admissible in evidence as the original itself in any
judicial or administrative proceeding, whether or not the original is in existence and whether or
not such reproduction was made by a party in the regular course of business, and that any
enlargement, facsimile or further reproduction of such reproduction shall likewise be admissible in
evidence.

Section 15.11. Binding Effect.

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

Section 15.12. Headings; Plurals: Genders.

     Section and Article headings are for reference purposes only and shall not be deemed to have
any substantive effect. In construing the words of this Agreement, plural constructions will
include the singular, and singular constructions will include the plural. No significance will be
attached to whether a pronoun is masculine, feminine, or neuter.

Section 15.13. Applicable Law.

     This Agreement shall be construed in accordance with and governed by the substantive laws of
the state of New York applicable to agreements made and to be performed in the state of New York
and the obligations, rights and remedies of the parties hereto shall be determined in accordance
with such laws.

Section 15.14. Counterparts.

     This Agreement may be executed in any number of counterparts, all of which, taken together,
shall constitute one and the same Agreement. The parties hereto agree that the closing of this
transaction may occur with the execution of the Transaction Agreements by each party and the
exchange of signatures by telefax, with original, signed Transaction Agreements to follow by
overnight mail.

Section 15.15. Waivers

     No term or provision of this Agreement may be waived or modified unless such waiver or
modification is in writing and signed by the party against whom such waiver or modification is
sought to be enforced. The waiver by either party hereto of a breach of any provision of this
Agreement shall not operate or be construed as a waiver of any other or subsequent breach.

Section 15.16. Publicity.

     Except as required by applicable law, neither party hereto shall issue a press release or
similar announcement or communication relating to this Agreement or the transactions contemplated
herein using the other party’s name without such other party’s prior written consent.

44

 

Section 15.17. No Third Party Beneficiaries.

     Except as expressly provided herein, nothing in this Agreement is intended to confer any
right, remedy, obligation or liability upon any Person other than the parties hereto and their
respective successors and permitted assigns.

Section 15.18. Attorney Fees, Costs. etc. 

     If any action at law or in equity, including an action for declaratory relief, is brought to
enforce or interpret the provisions of this Agreement, the prevailing party shall be entitled to
recover reasonable attorney fees and court costs from the other party. Such fees may be set by the
court in the trial of such action or may be enforced in a separate action brought for that purpose.
Such fees shall be in addition to any other relief that may be awarded.

Section 15.19. Merger or Consolidation of the Owner and the Company.

          (a) The Owner and the Company shall each keep in full effect, their respective existences,
rights and franchises as corporations in the states of their incorporation except as permitted
herein, and will obtain and preserve their respective qualifications to do business as foreign
entities in each jurisdiction in which such qualification is or shall be necessary to: (i) protect
the validity and enforceability of this Agreement, or of any of the Mortgage Loans; and/or (ii) to
perform their respective duties under this Agreement.

          (b) Subject to the Owner’s right to terminate this Agreement upon the occurrence of an event
described in Section 10.01(viii), any entity into which the Owner or the Company may be merged or
consolidated, or any entity resulting from any merger, conversion or consolidation to which the
Owner or the Company shall be a party, or any entity succeeding to the business of the Owner or the
Company, shall be the successor of the Owner or the Company hereunder, without the execution of
filing of any paper or any further act on the part of any of the parties hereto, anything herein to
the contrary notwithstanding; provided, however, that the successor or surviving entity shall be an
institution whose business is the origination or servicing of mortgage loans, unless otherwise
consented to by the Company or the Owner, as applicable, and shall be qualified to service mortgage
loans on behalf of FNMA.

45

 

     IN WITNESS WHEREOF, MERRILL LYNCH CREDIT CORPORATION and CENDANT MORTGAGE CORPORATION have
caused this Portfolio Servicing Agreement to be executed by their respective officers thereunto
duly authorized as of the date first written above.

	 	 	 	 	 	 	 
	 	 	MERRILL LYNCH CREDIT CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert J. Smith	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Robert J. Smith	 	 
	 

	 	Title:
	 	Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	CENDANT MORTGAGE CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert E. Groody	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Robert E. Groody	 	 
	 

	 	Title:
	 	Senior Vice President	 	 

 

 

EXECUTION COPY

 

AMENDMENT AGREEMENT NO. 1

By and Between

MERRILL LYNCH CREDIT CORPORATION

AND

CENDANT MORTGAGE CORPORATION

Dated as of

January 2, 2001

 

 

 

AMENDMENT AGREEMENT NO. 1

          AMENDMENT AGREEMENT NO. 1, dated as of January 2, 2001 (this “Agreement”), by and
between MERRILL LYNCH CREDIT CORPORATION, a Delaware corporation, with offices located at 4802 Deer
Lake Drive East, Jacksonville, Florida 32246 (“MLCC”), and CENDANT MORTGAGE CORPORATION
d/b/a PHH Mortgage Services, a New Jersey corporation, with offices located at 3000 Leadenhall
Road, Mt. Laurel, New Jersey 08504 (“Cendant”).

          WHEREAS, MLCC and Cendant are parties to a Servicing Rights Purchase and Sale Agreement, dated
as of January 28, 2000 (the “Servicing Agreement”), a copy of which is attached hereto as
Exhibit A;

          WHEREAS, MLCC and Cendant are parties to a Portfolio Servicing Agreement, dated as of January
28, 2000 (the “Portfolio Agreement”), a copy of which is attached hereto as Exhibit B;

          WHEREAS, MLCC and Cendant are parties to a Loan Sub-Servicing Agreement, dated as of January
28, 2000 (the “Sub-Servicing Agreement”), a copy of which is attached hereto as Exhibit C;

          WHEREAS, MLCC and Cendant have entered into a Servicing Rights Purchase and Sale Agreement, a
Trademark Use Agreement, an Origination Assistance Agreement and a Loan Purchase and Sale
Agreement, each dated as of December 15, 2000 and each with an effective date as of the date hereof
(collectively, the “New Agreements”); and

          WHEREAS, each of MLCC and Cendant, having entered into the New Agreements, wishes to amend the
Servicing Agreement, the Portfolio Agreement and the Sub-Servicing Agreement in order to properly
reflect the current relationships between the parties;

          NOW, THEREFORE, in consideration of the foregoing and the respective covenants and agreements
set forth in this Agreement, the parties hereto agree as follows:

          SECTION 1. Amendments to the Servicing Agreement. The Servicing Agreement is hereby
amended as follows:

     (a) Section 1.01. Section 1.01 of the Servicing Agreement is amended by:

	 	i.	 	Deleting the definition of “Additional
Collateral” and replacing it with the following: “Additional
Collateral means, with respect to any Mortgage 100 Loan or Parent
Power Mortgage Loan, the marketable securities subject to a security
interest pursuant to the related Mortgage 100 Pledge Agreement or the
Parent Power Guaranty and Security Agreement for Securities Account.”
	 
	 	ii.	 	Deleting the definition of “Cendant Mortgage
Loan” and replacing it with the following: “Cendant Mortgage
Loan means a

 

 

	 	 	 	Mortgage Loan originated by Purchaser pursuant to either (i) the 1997
Origination Agreement or (ii) the 2000 Origination Agreement.”
	 
	 	iii.	 	Adding the words “as amended from time to time
in accordance with the terms thereof” to the end of the definition of
“MLCC Portfolio Servicing Agreement.”
	 
	 	iv.	 	Deleting the definition of “Origination
Agreement” and replacing it with the following: “Origination
Agreements means the 1997 Origination Agreement and the 2000
Origination Agreement.”
	 
	 	v.	 	Adding the following definition: “1997
Origination Agreement means the Mortgage Loan Purchase and Services
Agreement dated as of September 24, 1997 between Seller and PHH
Mortgage Services Corporation, as the same may be amended from time to
time in accordance with the terms thereof.”
	 
	 	vi.	 	Adding the following definition: “2000
Origination Agreement means the Origination Assistance Agreement
dated as of December 15, 2000 between the Seller and the Purchaser, as
the same may be amended from time to time in accordance with the terms
thereof.”
	 
	 	vii.	 	Deleting the definition of “Permission
Agreement” and replacing it with the following definition:
“Permission Agreement means (i) from January 28, 2000 through
January 1, 2001, the Permission Agreement dated as of January 28, 2000
between Seller and Purchaser and (ii) on and after January 2, 2001, the
Trademark Use Agreement.”
	 
	 	viii.	 	Adding the following definition:
“Trademark Use Agreement means the Trademark Use Agreement
dated as of December 15, 2000, with an effective date as of January 2,
2001, between Seller and Purchaser.”
	 
	 	ix.	 	Deleting the first sentence of the definition
of “Quarterly Bulk Mortgage Loan” and replacing it with the following
sentence: “Quarterly Bulk Mortgage Loan means (a) any Mortgage
Loan purchased by Seller through its correspondent lending network, (b)
on or prior to January 1, 2001, a construction loan that has been
converted to a permanent Mortgage Loan, (c) on and after January 2,
2001, a construction loan that has been converted to a
PrimeFirst® Mortgage Loan (as contemplated by the 2000
Origination Agreement), or (d) any other mortgage loan that the parties
may mutually agree to designate.”

2

 

	 	x.	 	Adding the following definition:
“PrimeFirst® Mortgage Loan means an adjustable rate loan
offered by MLCC in which the monthly debt repayments thereunder for
approximately the first 120 months of the term thereof are interest
only.”
	 
	 	xi.	 	Replacing the word “Losses” each time it
appears in clause (a) of the definition of “Recourse Obligation” with
the word “losses.”
	 
	 	xii.	 	Adding the words “as amended from time to time
in accordance with the terms thereof” to the end of the definition of
“Securitized Loan Primary Servicing Agreement.”
	 
	 	xiii.	 	Replacing the words “permitted successors and
assigns” in the definition of “Seller” with the words “successors and
permitted assigns.”
	 
	 	xiv.	 	Deleting the first sentence of the definition
of “Subsequent Flow Mortgage Loans” and replacing it with the following
sentence: “Subsequent Flow Mortgage Loans, means Mortgage
Loans originated after March 10, 2000; provided, however, that on and
after January 2, 2001, ‘Subsequent Flow Mortgage Loans’ shall mean only
PrimeFirst® Mortgage Loans originated pursuant to the 2000
Origination Agreement.”
	 
	 	xv.	 	Deleting the definition of “Transaction
Agreements” and replacing it with the following definition:
“Transaction Agreements, means this Agreement, the Permission
Agreement, the MLCC Portfolio Servicing Agreement, the 2000 Origination
Agreement, the Loan Purchase and Sale Agreement dated as of December
15, 2000 between Purchaser and Seller, and the Equity
Access® and Omega Subservicing Agreement dated as of January
2, 2001 between Purchaser and Seller; provided, however, that the term
Transaction Agreements’ shall not include any agreements which have
been terminated in accordance with their respective terms.”
	 
	 	xvi.	 	Adding the following definition: “Account
Number means an account number or similar form of access number
relating to a Borrower’s Mortgage Loan or other financial product or
service with or from Seller other than any internal identifying number
assigned by Purchaser to the Mortgage Loan.”
	 
	 	xvii.	 	In the definition of “Applicable
Requirements,” (A) adding “collectively, (1)” between the words
“reference” and “with” in the first line thereof, (B) replacing the
first parenthetical in clause (b) with the following words “(including
laws, statutes, rules, regulations, administrative interpretations and
ordinances as well as any of the foregoing requirements applicable to
Seller by virtue

3

 

	 	 	 	of its state licenses, qualifications and exemptions and by virtue of
its being a subsidiary of Merrill Lynch Bank USA)”, (C) deleting the
word “and” immediately prior to clause (f), and (D) adding the
following to the end of such definition: “and (g) any applicable
MLCC or Merrill Lynch Bank USA internal policies and procedures, as
revised from time to time in accordance with the terms hereof, and
(2) the Foreign Corrupt Practices Act of 1977, as amended.”
	 
	 	xviii.	 	Adding the following definition: “Borrower Information means
any personally identifiable information or records in any form
(written, electronic, or otherwise) relating to a Borrower, including,
but not limited to, a Borrower’s name, address, telephone number, loan
number, loan payment history, delinquency status, insurance carrier or
payment information, tax amount or payment information; the fact that
the Borrower has a relationship with Seller; and any other personally
identifiable information.”
	 
	 	xix.	 	Adding the following definition: “Law
means any United States federal, state or local statute, law,
ordinance, regulation, rule, code, order, requirement, judgment,
decree, writ, injunction or rule of law (including common law).”
	 
	 	xx.	 	Adding the following definitions: “MLCC
Data means any data, databases, reports and records relating to
financial products from or services with MLCC, including, without
limitation, Account Numbers, Borrower Information, and data derived
therefrom.”
	 
	 	xxi.	 	Adding the following definitions: “MLCC
Services shall mean collectively, the Origination Services and
Purchaser’s obligations under the Servicing Rights.”
	 
	 	xxii.	 	Adding “(including the MLCC Data with respect
thereto)” between the words “loan” and “other” in the second line of
the definition of “Mortgage Loan.”
	 
	 	xxiii.	 	Adding the following definition: “Origination Services shall
mean the loan origination services to be performed by Purchaser for and
on behalf of Seller as detailed in the Origination Agreement.”
	 
	 	xxiv.	 	xxiv. Adding the following definition:
“Personnel of a Party shall mean such Party, its employees,
subcontractors, consultants, representatives and agents.”
	 
	 	xxv.	 	Adding the following definition:
“Software means the proprietary computer software programs, and
related Software Documentation,

4

 

	 	 	 	listed on Exhibits A, B and C of the Licensing Agreement, excluding
any Third Party Software that may be embedded therein.”
	 
	 	xxvi.	 	Adding the following definition:
“Software Documentation means, with respect to any Software,
the operating instructions and user, installation, set-up,
configuration, training and support manuals for the Software or any
part thereof, whether prepared by Seller or any Third Party, in any
form or medium whatsoever.”
	 
	 	xxvii.	 	Adding the following definition: “Termination Assistance
Period shall have the meaning set forth in Section 11.26.”
	 
	 	xxviii.	 	xxviii. Adding the following definition: “Termination Assistance
Services shall have the meaning set forth in Section 11.23.”
	 
	 	xxix.	 	Adding the following definition: “Third
Party Software means any software or program and related Software
Documentation incorporated into or used separately or in connection
with the Software, that is owned by a Third Party and licensed to
Seller.”
	 
	 	xxx.	 	Adding the following definition:
“Borrower means the borrower with respect to any Mortgage
Loan.”

     (b) Section 2.01(a). The second sentence of Section 2.01(a) of the Servicing
Agreement is amended by:

	 	i.	 	Replacing the word “For” at the beginning of
such sentence with the words “With respect to.”
	 
	 	ii.	 	Inserting the word “such” between the words
“all” and “Mortgage” in clause (i) of such sentence.

     (c) Section 3.01(a). The second sentence of Section 3.01(a) of the Servicing
Agreement is amended by replacing the last four words of such sentence (“any such Mortgage
Loan”) with the words “any Mortgage Loan described in the preceding clause (i).”

     (d) Section 3.02(a). The second sentence of Section 3.02(a) of the Servicing
Agreement is amended by deleting the word “Initial” in the first line thereof.

     (e) Section 3.02(b). The first sentence of Section 3.02(b) of the Servicing
Agreement is amended by deleting the word “Initial” in the fourth line thereof

     (f) Section 4.01(e). Section 4.01(e) of the Servicing Agreement is amended by:

	 	i.	 	Deleting the last two sentences thereof in
their entirety.

5

 

	 	ii.	 	The second sentence is amended by (A) replacing
the words “Prospectively, in the event that either party to this
Agreement believes, in good faith,” with the words “The parties
acknowledge,” and (B) deleting the words “, then such party shall
provide written notice to the other of the purported change in the
Applicable Requirements.”
	 
	 	iii.	 	The third sentence is amended by replacing the
words “Thereafter, the” with the word “The” and replacing the words
“the purported” with the word “this.”

     (g) Section 4.03. Section 4.03 of the Servicing Agreement is amended by:

	 	i.	 	In paragraph (c), replacing the word “Losses”
each time it appears with the word “losses.”
	 
	 	ii.	 	In paragraph (d), inserting the words “During
the MLCC Interim Servicing Period,” at the very beginning of such
paragraph.
	 
	 	iii.	 	In paragraph (e), inserting the words “, during
the MLCC Interim Servicing Period’,” between the words “that” and
“Seller” in the first line thereof.

     (h) Section 4.06(b). Section 4.06(b) of the Servicing Agreement is amended by
inserting “(i)” before the beginning of the first sentence thereof.

     (i) Section 4.07. Section 4.07 of the Servicing Agreement is amended by
inserting the words “(or Purchaser on behalf of Seller)” between the words “Seller” and
“and” in the first line of the second paragraph thereof.

     (j) Section 4.09(a). Section 4.09(a) of the Servicing Agreement is amended by
inserting the word “such” (i) between the words “each” and “Transfer” in the second sentence
thereof and (ii) between the words “each” and “applicable” in the third sentence thereof.

     (k) Section 4.15. Section 4.15 of the Servicing Agreement is amended by:

	 	i.	 	In paragraph (a), replacing the words “except
a” with “other than any” in the first parenthetical in the first
sentence thereof.
	 
	 	ii.	 	In paragraph (a), inserting the words “(other
than any Cendant Mortgage Loan)” between the word “Loan” and “within”
in the third sentence thereof.
	 
	 	iii.	 	In paragraph (a), inserting the word “such”
between the words “any” and “Mortgage” in the fifth sentence thereof.

6

 

	 	iv.	 	In paragraph (a), inserting the word “such”
between the words “each” and “original” in the last sentence thereof.
	 
	 	v.	 	In paragraph (c), inserting the words “(other
than any Cendant Mortgage Loan)” between the words “Loan” and “Seller”
in the first sentence thereof.
	 
	 	vi.	 	Adding at the end of such section the following
text as subparagraph (g): “(g) For the avoidance of doubt, the parties
hereto acknowledge and agree (i) that any obligations set forth in this
Section 4.15 shall not apply with respect to any Mortgage Loan which is
also a Cendant Mortgage Loan and (ii) that the payment holdback
provisions of subparagraph (f) of this Section 4.15 shall not apply
with respect to any Cendant Mortgage Loan.”

     (l) New Sections 4.36 – 4.40. The Servicing Agreement is amended by adding the
following new sections, to be numbered 4.36 through 4.40:

Section 4.36 Work Policy. Personnel of either Party working on the premises of the other
Party (excluding in the case of Purchaser, premises of Seller leased to Purchaser), and all other
Personnel required by Law or government rules or regulations, shall comply with the safety,
security and other regulations of the other Party generally applicable to its outside contractors
and Personnel particular to each work location, including, where applicable, internal security
department fingerprinting, photographing and screening processes. Personnel of a Party, when
deemed appropriate by the other Party, will be issued visitor identification cards. Each such card
will be surrendered by upon demand by the other Party or upon termination of this Agreement or
completion of the relevant MLCC Services. Unless otherwise agreed by the Parties, Personnel of
each Party will observe the working hours, working rules, and holiday schedules of the other Party
while working on the other Party’s premises (excluding in the case of Purchaser, premises of Seller
leased to Purchaser). Each Party shall advise the other Party immediately in the event that any
Personnel with security access to any premises of the other Party (i) is no longer assigned to
perform MLCC Services, or (ii) is no longer employed by such Party.

Section 4.37 Use of Hardware and Software. In the event that Purchaser shall be
performing MLCC Services on behalf of Seller and any third party utilizing common hardware and/or
Software, Seller shall have the right, on reasonable notice to Purchaser and at Seller’s sole cost
and expense, to audit such hardware and Software to ensure segregation of MLCC Data from third
party data adequate to prevent unauthorized disclosure of MLCC Data to third parties, and to ensure
the security of MLCC Data in accordance with normal industry practices, provided that such audit
shall not disrupt Purchaser’s ability to perform the MLCC Services.

7

 

Section 4.38. Technical Architecture Standards. On notice thereof, Purchaser shall comply
with all reasonable Seller information management technical architecture standards related to
interfacing with Seller systems as identified and amended by Seller from time to time.

Section 4.39. Compliance with Policies. Purchaser shall, upon notice thereof by Seller,
comply with all of Seller’s commercially reasonable policies and procedures regarding security and
safeguarding of MLCC Data.

Section 4.40. Continuation of MLCC Services. Purchaser acknowledges that the provision of
MLCC Services is critical to the business and operations of Seller. In the event of a fee dispute
between Seller and Purchaser pursuant to which either Party in good faith believes it is entitled
to withhold payment of the disputed amount or for which either Party in good faith believes payment
is due, each Party shall continue to perform its obligations under the Ancillary Agreements,
including continuing to pay undisputed amounts. Neither Party shall not under any circumstances
suspend or disrupt, or seek any injunctive or other equitable relief for the purpose of suspending
or disrupting, directly or indirectly, provision of the services to the other Party under the
Ancillary Agreements or the normal business operations of the other Party.

     (m) New Article IV-A. The Servicing Agreement is amended by adding the
following text as new Article IV-A, to be labeled “Mutual Representations:”

     “Each Party hereby represents and warrants to the other Party as follows:

Section 4A.01. Kickbacks. No employee, agent or representative of the other Party has
been offered, shall be offered, has received, or shall receive, directly or indirectly, from such
Party, any gratuities, merchandise, cash, services benefit, fee, commission, dividend, gift, or
other inducements or consideration of any kind in connection with this Agreement.

Section 4A.02. Government Officials. No person employed by such Party in connection with
the performance of its obligations under this Agreement is an official of the government of any
foreign country, or of any agency thereof, and no part of any moneys or consideration paid to such
Party hereunder shall accrue for the benefit of any such official.

Section 4A.03. No Relation. No individual who will receive specific compensation from
such Party as a result of the execution of this Agreement is related to any public official or
official of any issuer of municipal securities. For purposes of this Section, the term “official
of an issuer of municipal securities” means any person who is an incumbent, candidate or successful
candidate (a) for elective office of any issuer which office is directly or indirectly responsible
for, or can influence the outcome of, the hiring of a broker, dealer or municipal securities dealer
for municipal securities business by such issuer, or (b) for any elective office of a state or of
any political subdivision, which office has authority to appoint any official(s) of such issuer.
The term “related” applies when a person is related by blood or marriage.”

     (n) Section 5.09(d)(iii). Section 5.09(d)(iii) of the Servicing Agreement is
amended by inserting the words “(other than Purchaser)” between the words “Originator” and
“or” in the second sentence thereof.

8

 

     (o) Section 5.09(h). Section 5.09(h) of the Servicing Agreement is amended by:

	 	i.	 	Inserting the words “(if not the Purchaser)”
between the words “Originator” and “and” in the first sentence thereof.
	 
	 	ii.	 	Inserting the words “(other than Purchaser)”
between the words “Originator” and “was” in the last sentence thereof.

     (p) Section 5.09(n). Section 5.09(n) of the Servicing Agreement is amended by
inserting the words “(other than Purchaser)” between the words “Originator” and “and/or” in
the first sentence thereof.

     (q) Section 5.09(t). Section 5.09(t) of the Servicing Agreement is amended by
deleting the words “None of the Mortgage Loans are subject to bi-weekly payment plans, and
the” in second to last sentence of such section and inserting the word “The” in lieu
thereof.

     (r) Section 5.09(y). Section 5.09(y) of the Servicing agreement is amended by
inserting the words “(other than Purchaser)” between the words “Originator” and “or” in the
fourth line of the first sentence thereof.

     (s) Section 5.09(gg). Section 5.09(gg) of the Servicing Agreement is amended
by inserting the words “which is not a Cendant Mortgage Loan” between the words “Loan” and
“Seller” in the first line thereof.

     (t) Section 5.17. Section 5.17 of the Servicing Agreement is amended by
inserting the words “(unless the Purchaser was the Originator)” between the words
“Originators” and “or” in the third line thereof.

     (u) Section 5.18. Section 5.18 of the Servicing Agreement is amended by
deleting the text of such section and replacing it with the following: “Notwithstanding
anything to the contrary contained in this Agreement, no representation or warranty is made
by the Seller at any time with respect to any Cendant Mortgage Loan to the extent such
representation or warranty relates to any act or omission of Purchaser in connection with
the origination of such Cendant Mortgage Loan.”

     (v) [Reserved.]

     (w) Section 8.06. Section 8.06 of the Servicing Agreement is amended by
inserting the following after the last word in such section: “and except as set forth in
Section 5.18.”

     (x) Section 9A.01. Section 9A.01(d) of the Servicing Agreement is amended by
(i) deleting the words “grounds for Seller, in its sole discretion, to terminate (i) this
Agreement pursuant to Section 11.23(vii) and (ii) any other Transaction Agreement(s)” and
inserting the words “a Service Deficiency for purposes of Section 11.25” in lieu thereof and
(ii) deleting the last sentence of paragraph (f) in its entirety.

9

 

     (y) Section 10.01(f). Section 10.01(f) of the Servicing Agreement is amended
by adding the words “(other than with respect to any Cendant Mortgage Loan)” between the
words “Note” and “to.” .

     (z) Section 10.02(a)(ii). Section 10.02(a)(ii) of the Servicing Agreement is
amended by inserting the words “(other than Purchaser)” between the words “Originator” and
“or” in the third line of the first sentence thereof.

     (aa) Section 11.02(a). Section 11.02(a) of the Servicing Agreement is amended
by adding the words “(including outside accountants)” between the words “accountants” and
“and” in clause (ii) of the first sentence thereof.

     (bb) Section 11.05. Section 11.05 of the Servicing Agreement is amended by:

	 	i.	 	Deleting the first sentence thereof and
replacing it with the following: “Without Seller’s prior written
consent, which consent may be withheld by Seller in its sole
discretion, neither Purchaser nor any Affiliate of Purchaser shall
solicit any Mortgagor, or cause any Mortgagor to be solicited, for
subordinate financing of any Mortgage Loan (other than subordinate
financing arranged under the Equity Access program) or any product or
service whatsoever, including, without limitation, any investment or
financial services or products, insurance products or services and
brokerage account services.”
	 
	 	ii.	 	Inserting the word “respective” between the
words “their” and “Affiliates” in each of clauses (i) and (ii) of the
last sentence of such section.

     (cc) Section 11.15. Section 11.15 of the Servicing Agreement is amended by
deleting the text in such section and inserting the following: “This Agreement shall be
governed by, and construed in accordance with, the laws of the State of New York applicable
to contracts executed in and to be performed in that State. All actions and proceedings
arising out of or relating to this Agreement shall be heard and determined exclusively in
any New York State court or any federal court sitting in the County of New York. The
parties hereto expressly consent and agree to the exclusive jurisdiction of any such court
or venue therein.”

     (dd) Section 11.22. Section 11.22 of the Servicing Agreement is amended by
deleting the text contained in such section and inserting the following: “This Agreement
shall automatically expire and terminate upon the earlier of (i) December 31, 2010 and (ii)
the date upon which the 2000 Origination Agreement is terminated in accordance with the
terms thereof. If the 2000 Origination Agreement shall have been extended for an extension
term, this Agreement shall be automatically extended for the same extension term without any
action by the parties hereto.”

     (ee) Section 11.23. Section 11.23 of the Servicing Agreement is amended by:

10

 

	 	i.	 	Deleting the text contained in each of clauses
(ii), (iv), (v) and (vi) in the first sentence of such section, and in
each such clause, inserting the words “intentionally omitted” in lieu
thereof.
	 
	 	ii.	 	Adding the following text at the end thereof:
“Without limitation of the foregoing, if (A) a PHH Competitor Change of
Control (as defined in the 2000 Origination Agreement) shall have
occurred, then at any time after Seller shall have received notice of
such PHH Competitor Change of Control, Seller may, by giving written
notice thereof to Purchaser, terminate this Agreement as of a future
date specified in such notice of termination; or (B) a PHH Change of
Control (as defined in the 2000 Origination Agreement) (other than a
PHH Competitor Change of Control) shall have occurred, then at any time
within 30 days after the two year anniversary of such PHH Change of
Control, Seller may, by giving written notice thereof to Purchaser,
terminate this Agreement as of a future date specified in such notice
of termination.”

     (ff) Section 11.24. Section 11.24 of the Servicing Agreement is amended by
deleting the text contained in such section in its entirety and inserting the following in
lieu thereof: “In the event of a default (that remains uncured after the expiration of the
applicable cure period, if any) under any of (i) the Origination Assistance Agreement, (ii)
the Loan Purchase and Sale Agreement, (iii) the Trademark Use Agreement, and/or (iv) the
MLCC Portfolio Servicing Agreement, the non-defaulting party may, at its option, terminate
this Agreement.”

     (gg) Section 11.25. Section 11.25 of the Servicing Agreement is amended by:

	 	i.	 	Deleting the words “terminate this Agreement
and any or all other Transaction Agreements” at the end of paragraph
(b) and inserting “require Purchaser to solicit bids for a subservicer
as provided in paragraph (d) below” in lieu thereof.
	 
	 	ii.	 	Deleting the words “terminate this Agreement as
provided for in Section 11.25(b)” in the first line of paragraph (c)
and inserting “solicit bids for a subservicer as provided in paragraph
(d) below” and deleting the words “and termination” in the last
sentence of such paragraph.”
	 
	 	iii.	 	Adding the following text as new paragraph (d):

” (d) In the event that Seller shall have the right to require Purchaser to solicit bids for a
Subservicer as provided in (b) above, then Purchaser, upon Seller’s written demand, shall proceed
as follows:

       (i) Purchaser shall prepare a request for proposal (“RFP”) for a Subservicer to assume
Purchaser’s obligations relating to the Servicing Rights. Purchaser shall submit

11

 

such RFP to Seller for review within [* * *] of Seller’s written demand that Purchaser
solicit bids for a Subservicer. Purchaser shall incorporate Seller’s reasonably requested
revisions to such RFP within [* * *] of Purchaser’s receipt of Seller’s requested revisions.

               (ii) Purchaser shall submit the final RFP to no less than three (3) residential
Mortgage Loan servicers reasonably chosen by Seller.

               (iii) Purchaser shall select the bid requested by Seller.

               (iv) Purchaser shall pay the costs of the entity chosen by Seller as the Subservicer to
assume Purchaser’s obligations relating to the Servicing Rights. If, however, the bid
selected by Seller is the highest bid and such bid exceeds the second highest bid by [* *
*], then Seller shall be responsible for the difference between the selected bid and [* * *]
of the second highest bid.”

	 	iv.	 	Relabeling current paragraph (d) as paragraph
(e) and deleting the words “and the other Transaction Agreements” in
such paragraph.

     (hh) New Section 11.27. The Servicing Agreement is hereby amended by adding
the following new Section 11.27:

“Section 11.27 Termination Assistance. (a) Upon expiration or termination of all or part
of the MLCC Services for any reason, Purchaser shall for a period of one (1) year (the “Termination
Assistance Period”), upon Seller’s request and at Seller’s expense, continue to provide the MLCC
Services that were provided prior thereto (“Termination Assistance Services”). In providing
Termination Assistance Services, Purchaser shall provide such reasonable cooperation and technical
assistance to Seller, or to a third-party service provider designated by Seller, as required to
facilitate the transfer of the affected MLCC Services to Seller or such third-party service
provider. The rights of Seller under this Section shall be without prejudice to the Parties’
rights to pursue legal remedies for breach of this Agreement, either for breaches prior to
termination or during the period this Agreement is continued in force post-termination.
Termination Assistance Services shall be provided for the same fees as prior to termination, and
Purchaser shall use commercially reasonable efforts to perform the MLCC Services at the same
service levels as prior to termination. MLCC hereby agrees to continue to provide the services or
meet its obligations contemplated to be provided by it under this Agreement during the Termination
Assistance Period in order to assist Purchaser in complying with this
Section 11.26(a).

(b) If and to the extent requested by Seller, whether prior to, upon, or following any termination
of this Agreement, Purchaser shall reasonably assist Seller in developing a plan which shall
specify the tasks to be performed by the Parties in connection with the Termination Assistance
Services and the schedule for the performance of such tasks. The transition plan shall include
descriptions of the MLCC Services, service levels, fees, documentation and access requirements that
will promote an orderly transition of the MLCC Services.

 

			
	[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

12

 

(c) For a period of six (6) months following the Termination Assistance Period, Purchaser shall:
(i) answer all reasonable and pertinent verbal or written questions from Seller regarding the MLCC
Services on an “as needed” basis: and (ii) deliver to Seller any remaining Seller-owned reports
and documentation still in Purchaser’s possession.”

               (ii) The Servicing Agreement is amended by replacing, throughout the entire agreement,
any reference to “the Origination Agreement” or any other similar reference to “Origination
Agreement” that connotes the singular form of such definition, with “any Origination
Agreement” or “the Origination Agreements” or “the applicable Origination Agreement” or any
other similar reference that connotes the plural form of such definition, as the context may
require.

          SECTION 2. Amendments to the Portfolio Agreement. The Portfolio Agreement is hereby
amended as follows:

     (a) Section 1.01. Section 1.01 of the Portfolio Agreement is amended by:

	 	i.	 	Deleting the definition of “Additional
Collateral” and replacing it with the following: “Additional
Collateral means with respect to any Mortgage 100 Loan or and
Parent Power Mortgage Loan, the marketable securities subject to a
security interest pursuant to the related Mortgage 100 Pledge Agreement
or the Parent Power Guaranty and Security Agreement for Securities
Account.”
	 
	 	ii.	 	Deleting the definition of “Cendant Mortgage
Loan” and replacing it with the following: “Cendant Mortgage Loan
means a Mortgage Loan originated by Purchaser pursuant to either
(i) the 1997 Origination Agreement or (ii) the 2000 Origination
Agreement.”
	 
	 	iii.	 	In the definition of “Mortgage Loan,” inserting
the words “(or any Person on behalf of Owner)” between the words
“Owner” and “originates” in the third line thereof.
	 
	 	iv.	 	In the definition of “Mortgage Loan Schedule,”
inserting the words “(or any Person on behalf of Owner)” between the
words “Owner” and “originates” in the fourth line thereof.
	 
	 	v.	 	Deleting the definition of “Origination
Agreement” and replacing it with the following: “Origination
Agreements means the 1997 Origination Agreement and the 2000
Origination Agreement.”
	 
	 	vi.	 	Adding the following definition: “1997
Origination Agreement means the Mortgage Loan Purchase and Services
Agreement dated as of September 24, 1997 between Seller and PHH
Mortgage Services Corporation, as the same may be amended from time to
time in accordance with the terms thereof.”

13

 

	 	vii.	 	Adding the following definition: “2000
Origination Agreement means the Origination Assistance Agreement
dated as of December 15, 2000 between the Seller and the Purchaser, as
the same may be amended from time to time in accordance with the terms
thereof.”
	 
	 	viii.	 	Deleting the definition of “Permission
Agreement” and replacing it with the following definition:
“Permission Agreement means (i) from January 28, 2000 through
January 1, 2001, the Permission Agreement dated as of January 28, 2000
between Seller and Purchaser and (ii) on and after January 2, 2001, the
Trademark Use Agreement.”
	 
	 	ix.	 	Adding the following definition:
“Trademark Use Agreement means the Trademark Use Agreement
dated as of December 15, 2000 between Seller and Purchaser.”
	 
	 	x.	 	Deleting the definition of “Purchase and Sale
Agreement” and replacing it with the following definition:
“Purchase and Sale Agreements means the First Purchase and Sale
Agreement and the Second Purchase and Sale Agreement.”
	 
	 	xi.	 	Adding the following definition: “First
Purchase and Sale Agreement means the Servicing Rights Purchase and
Sale Agreement dated as of January 28, 2000, between the Owner, as
seller, and the Company, as purchaser.”
	 
	 	xii.	 	Adding the following definition: “Second
Purchase and Sale Agreement means the Servicing Rights Purchase and
Sale Agreement dated as of December 15, 2000, between the Owner, as
seller, and the Company, as purchaser.”
	 
	 	xiii.	 	Adding the words “as amended from time to time
in accordance with the terms thereof” to the end of the definition of
“Securitized Loan Primary Servicing Agreement.”
	 
	 	xiv.	 	Adding the words “as amended from time to time
in accordance with the terms thereof” to the end of the definition of
“Subservicing Agreement.”
	 
	 	xv.	 	Deleting the definition of “Transaction
Agreements” and replacing it with the following definition:
“Transaction Agreements means this Agreement, the Permission
Agreement, the First Purchae and Sale Agreement, the 2000 Origination
Agreement, the Loan Purchase and Sale Agreement dated as of December
15, 2000 between Purchaser and Seller, and the Equity
Access® and Omega Subservicing Agreement dated as of January
2, 2001 between

14

 

	 	 	 	Purchaser and Seller; provided, however, that the
term “Transaction Agreements” shall not include any agreements which
have been terminated in accordance with their respective terms.”
	 
	 	xvi.	 	In the definition of “Applicable Requirements,”
(A) adding “collectively, (1)” between the words “reference” and “with”
in the first line thereof, (B) replacing the first parenthetical in
clause (b) with the following words “(including laws, statutes, rules,
regulations, administrative interpretations and ordinances as well as
any of the foregoing requirements applicable to Company by virtue of
its state licenses, qualifications and exemptions and by virtue of its
being a subsidiary of Merrill Lynch Bank USA)”, (C) deleting the word
“and” immediately prior to clause (f), and (D) adding the following to
the end of such definition: “and (g) any applicable MLCC or Merrill
Lynch Bank USA internal policies and procedures, as revised from time
to time in accordance with the terms hereof, and (2) the Foreign
Corrupt Practices Act of 1977, as amended.”

     (b) Section 2.01(i). Section 2.01(i) of the Portfolio Agreement is amended by
adding the following sentence at the end of such paragraph: “Notwithstanding the foregoing,
the Company acknowledges and agrees that the Owner maintains agreements with document
custodians selected by it from time to time, pursuant to which such custodians maintain
Mortgage Loan files on behalf of the Owner. The Company agrees to cooperate with such
custodians and request from such custodians the documents and Mortgage Files required by the
Company which are maintained by such custodians (with a copy of such request sent to the
Owner).

     (c) Section 2.04(a). Section 2.04(a) of the Portfolio Agreement is amended by
adding the words “(including outside accountants)” between the words “accountants” and
“supervisory” in the first line thereof.

     (d) [Reserved.]

     (e) Section 5.02(a)(i). Section 5.02(a)(i) of the Portfolio Agreement is
amended by inserting the words “any custodian that maintains documents or Mortgage Files on
behalf of the Owner,” between the words “Owner,” and “any” in the first line thereof.

     (f) Section 5.02(a)(ii). Section 5.02(a)(ii) of the Portfolio Agreement is
amended by inserting after the end of the first sentence the following words: “The Company
shall, as the Owner may request, either (A) enter into such agreements with the Owner, in
which case the Owner’s rights and obligations thereunder shall be freely assignable and
delegable to the Subsequent Purchaser without any further action or consent by the Company,
or (B) enter into such agreement directly with the Subsequent Purchaser.”

15

 

     (g) Section 5.02(a)(iii). Section 5.02(a)(iii) of the Portfolio Agreement is
amended by inserting the words “for the benefit of the Subsequent Purchaser” after the words
“Purchase and Sale Agreement” in the second line thereof.

     (h) Section 5.02(a). Section 5.02(a) of the Portfolio Agreement is amended by
replacing the period at the end of subclause (vii) with a semicolon and adding the word
“and” after such inserted semicolon.

     (i) Section 8.01. Section 8.01 of the Portfolio Agreement is amended by:

	 	i.	 	Deleting the first sentence thereof and
replacing it with the following: “Without Owner’s prior written
consent, which consent may be withheld by Owner in its sole discretion,
neither Company nor any Affiliate of Company shall solicit any
Mortgagor, or cause any Mortgagor to be solicited, for subordinate
financing of any Mortgage Loan (other than subordinate financing
arranged under the Equity Access program) or any product or service
whatsoever, including, without limitation, any investment or financial
services or products, insurance products or services and brokerage
account services.”
	 
	 	ii.	 	Inserting the word “respective” between the
words “their” and “Affiliates” in each of clauses (i) and (ii) of the
last sentence of such section.

     (j) Section 10.01. Section 10.01 of the Portfolio Agreement is amended by
deleting the text contained in clause (b) at the end of the first paragraph of such section
and inserting in lieu thereof the words “as to the First Purchase and Sale Agreement, such
agreement may be terminated as to the Subsequent Flow Mortgage Loans and the Quarterly Bulk
Mortgage Loans, as more particularly defined therein.”

     (k) Section 10.02(b). Section 10.02(b) of the Portfolio Agreement is amended
by deleting the words “any or all other Transaction Agreements” at the end of such section,
and inserting the following in lieu thereof: “the First Purchase and Sale Agreement as to
the Subsequent Flow Mortgage Loans and the Quarterly Bulk Mortgage Loans, as more
particularly defined therein.”

     (l) Section 10.02(d). Section 10.02(d) of the Portfolio Agreement is amended
by deleting the words “and the other Transaction Agreements.”

     (m) Section 15.02(a). Section 15.02(a) of the Portfolio Agreement is amended
by adding the words “(including outside accountants)” between the words “accountants” and
“and” in the second line thereof.

     (n) Section 15.13. Section 15.13 of the Portfolio Agreement is amended by
deleting the text of such section in its entirety and replacing it with the following:
“This Agreement shall be governed by, and construed in accordance with, the laws of the
State of New York applicable to contracts executed in and to be performed in that State.
All

16

 

actions and proceedings arising out of or relating to this Agreement shall be heard and
determined exclusively in any New York State court or any federal court sitting in the
County of New York. The parties hereto expressly consent and agree to the exclusive
jurisdiction of any such court or venue therein.”

     (o) The Portfolio Agreement is amended by replacing, throughout the entire agreement,
any reference to “the Origination Agreement” or any other similar reference to “Origination
Agreement” that connotes the singular form of such definition, with “any Origination
Agreement” or “the Origination Agreements” or “the applicable Origination Agreement” or any
other similar reference that connotes the plural form of such definition, as the context may
require.

     (p) The Portfolio Agreement is amended by replacing, throughout the entire agreement
(except as set forth in Section 2(j) above), any reference to “the Purchase and Sale
Agreement” or any other similar reference to “Purchase and Sale Agreement” that connotes the
singular form of such definition, with “any Purchase and Sale Agreement” or “the Purchase
and Sale Agreements” or “the applicable Purchase and Sale Agreement” or any other similar
reference that connotes the plural form of such definition, as the context may require.

          SECTION 3. Amendments to the Sub-Servicing Agreement. The Sub-Servicing Agreement is
hereby amended as follows:

     (a) Section 7.01. Section 7.01 of the Sub-Servicing Agreement is amended by:

	 	i.	 	Deleting the first sentence thereof and
replacing it with the following: “Without Servicer’s prior written
consent, which consent may be withheld by Servicer in its sole
discretion, neither Subservicer nor any Affiliate of Subservicer shall
solicit any Mortgagor, or cause any Mortgagor to be solicited, for
subordinate financing of any Mortgage Loan (other than subordinate
financing arranged under the Equity Access program) or any product or
service whatsoever, including, without limitation, any investment or
financial services or products, insurance products or services and
brokerage account services.”
	 
	 	ii.	 	Inserting the word “respective” between the
words “their” and “Affiliates” in each of clauses (i) and (ii) of the
last sentence of such section.

     (b) Section 14.01. Section 14.01 of the Sub-Servicing Agreement is amended by
(i) deleting the text “any other Transaction Agreement. (As” contained in the first
sentence of such section and inserting in lieu thereof the word “as” and (ii) deleting the
“)” at the end of the first sentence, as such first sentence has been amended by clause (i)
of this Section 3(b).

17

 

     (c) Section 14.02(b). Section 14.02(b) of the Sub-Servicing Agreement is
amended by deleting the words “any or all other Transaction Agreements” at the end of such
section, and inserting the following in lieu thereof: “the First Purchase and Sale
Agreement as to the Subsequent Flow Mortgage Loans and the Quarterly Bulk Mortgage Loans, as
more particularly defined therein.”

     (d) Section 14.02(d). Section 14.02(d) of the Sub-Servicing Agreement is
amended by deleting the words “and the other Transaction Agreements.”

     (e) Section 17.14. Section 17.14 of the Sub-Servicing Agreement is amended by
deleting the text of such section in its entirety and replacing it with the following:
“This Agreement shall be governed by, and construed in accordance with, the laws of the
State of New York applicable to contracts executed in and to be performed in that State.
All actions and proceedings arising out of or relating to this Agreement shall be heard and
determined exclusively in any New York State court or any federal court sitting in the
County of New York. The parties hereto expressly consent and agree to the exclusive
jurisdiction of any such court or venue therein.”

     (f) Section 1.01. Section 1.01 of the Sub-Servicing Agreement is amended by
making the following changes in the definition of “Applicable Requirements”: (A) adding
“collectively, (1)” between the words “reference” and “with” in the first line thereof, (B)
replacing the first parenthetical in clause (b) with the following words “(including laws,
statutes, rules, regulations, administrative interpretations and ordinances as well as any
of the foregoing requirements applicable to Servicer by virtue of its state licenses,
qualifications and exemptions and by virtue of its being a subsidiary of Merrill Lynch Bank
USA)”, (C) deleting the word “and” immediately prior to clause (f), and (D) adding the
following to the end of such definition: “and (g) any applicable MLCC or Merrill Lynch Bank
USA internal policies and procedures, as revised from time to time in accordance with the
terms hereof, and (2) the Foreign Corrupt Practices Act of 1977, as amended.”

          SECTION 4. Governing Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York applicable to contracts executed in and to be
performed in that State. All actions and proceedings arising out of or relating to this Agreement
shall be heard and determined exclusively in any New York State court or any federal court sitting
in the County of New York. The parties hereto expressly consent and agree to the exclusive
jurisdiction of any such court or venue therein.

          SECTION 5. Waiver of Jury Trial. Each of the parties hereto hereby waives to the
fullest extent permitted by applicable law any right it may have to a trial by jury with respect to
any litigation directly or indirectly arising out of, under or in connection with this Agreement or
any Terminated Agreement.

          SECTION 6. Specific Performance. The parties hereto agree that irreparable damage
would occur in the event any provision of this Agreement were not performed in accordance with the
terms hereof and that the parties shall be entitled to specific performance of the terms hereof, in
addition to any other remedy at law or in equity.

18

 

          SECTION 7. Headings. The descriptive headings contained in this Agreement are
included for convenience of reference only and shall not affect in any way the meaning or
interpretation of this Agreement.

          SECTION 8. Miscellaneous. This Agreement may be modified or amended only be a writing
signed by the parties hereto. This Agreement may be executed (including by facsimile transmission)
in one or more counterparts, and by the different parties hereto in separate counterparts, each of
which when executed and delivered shall be deemed to be an original but all of which taken together
shall constitute one and the same agreement.

          SECTION 9. Fees and Expenses. All costs and expenses incurred in connection with this
Agreement, the termination of the Terminated Agreements or the transactions contemplated hereby and
thereby shall be paid by the party incurring such expenses.

          SECTION 10. Ratification. Except as amended hereby, the Servicing Agreement and the
Portfolio Agreement shall remain unmodified and in full force and effect, and are hereby ratified
and confirmed.

          SECTION 11. Benefit and Binding Effect. The terms of this Agreement shall be
effective as of the date hereof, upon signature of counterparts by all parties, and shall be
binding upon and inure to the benefit of MLCC and Cendant and their respective successors and
permitted assigns.

19

 

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the
date first written above by their respective officers thereunto duly authorized.

	 	 	 	 	 
	 	MERRILL LYNCH CREDIT CORPORATION

 	 
	 	By:  	  /s/
Kevin O’Hanlon
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	CENDANT MORTGAGE CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the
date first written above by their respective officers thereunto duly authorized.

	 	 	 	 	 
	 	MERRILL LYNCH CREDIT CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	CENDANT MORTGAGE CORPORATION

 	 
	 	By:  	  /s/ Joseph Sutter
 	 
	 	 	Name:  	Joseph Sutter 	 
	 	 	Title:  	Senior Vice President 	 
	 

 

 

Execution Copy

 

AMENDMENT AGREEMENT NO. 2

(amending the Portfolio Servicing Agreement

dated as of January 28, 2000)

By and Between

MERRILL LYNCH CREDIT CORPORATION

AND

CENDANT MORTGAGE CORPORATION

Dated as of

October 27, 2004

 

 

 

AMENDMENT AGREEMENT NO. 2

(amending the Portfolio Servicing Agreement

dated as of January 28, 2000)

          AMENDMENT AGREEMENT NO. 2 (amending the Portfolio Servicing Agreement dated as of January 28,
2000), dated as of October 27, 2004 (this “Amendment Agreement”), by and between MERRILL
LYNCH CREDIT CORPORATION, a Delaware corporation, with offices located at 4802 Deer Lake Drive
East, Jacksonville, Florida 32246 (“MLCC”), and CENDANT MORTGAGE CORPORATION d/b/a PHH
Mortgage Services, a New Jersey corporation, with offices located at 3000 Leadenhall Road, Mt.
Laurel, New Jersey 08504 (“Cendant”).

          WHEREAS, MLCC and Cendant are parties to a Portfolio Servicing Agreement, dated as of January
28, 2000, as amended by the Amendment Agreement No. 1, dated as of January 2, 2001 (as amended, the
“Portfolio Agreement”); and

          WHEREAS, each of MLCC and Cendant wishes to further amend the Portfolio Agreement in order to
properly reflect the current relationship between the parties;

          NOW, THEREFORE, in consideration of the foregoing and the respective covenants and agreements
set forth in this Amendment Agreement, the parties hereto agree as follows:

          SECTION 1. Amendment to the Portfolio Agreement. Section 10.01 of the Portfolio
Agreement is hereby amended by:

     (a) Deleting the text contained in clause (viii) of the first sentence of such section
and inserting the words “intentionally omitted” in lieu thereof.

     (b) Adding the following text as the second full paragraph of such section: “Without
limitation of the foregoing, if (A) a PHH Competitor Change of Control (as defined in the
2000 Origination Agreement) shall have occurred, then at any time after the Owner shall have
received notice of such PHH Competitor Change of Control, the Owner may, by giving written
notice thereof to the Company, terminate all the rights and obligations of the Company under
(a) this Agreement as of a future date specified in such notice of termination, without
paying the Company any termination fee, except as set forth in the following paragraph, and
(b) as to the First Purchase and Sale Agreement, such agreement may be terminated as to the
Subsequent Flow Mortgage Loans and the Quarterly Bulk Mortgage Loans, as more particularly
defined therein; or (B) a PHH Change of Control (as defined in the 2000 Origination
Agreement) (other than a PHH Competitor Change of Control) shall have occurred, then at any
time within 30 days after the two year anniversary of such PHH Change of Control, the Owner
may, by giving written notice thereof to the Company, terminate all the rights and
obligations of the Company under (a) this Agreement as of a future date specified in such
notice of termination, without paying the Company any termination fee, except as set forth
in the following paragraph, and (b) as to the First Purchase and Sale Agreement, such

 

 

agreement may be terminated as to the Subsequent Flow Mortgage Loans and the Quarterly Bulk
Mortgage Loans, as more particularly defined therein.”

     (c) The third paragraph (after adding the new second paragraph as provided above) of
such Section 10.1 is amended by deleting the first sentence of such third paragraph and
inserting in lieu thereof: “If Owner intends to terminate this Agreement due to a PHH
Competitor Change of Control, a PHH Change of Control, or an Event of Default, as the case
may be, the Owner shall provide written notice of such intention to Company within the
applicable time frame stated herein.”

          SECTION 2. Governing Law. This Amendment Agreement shall be governed by, and
construed in accordance with, the laws of the State of New York.

          SECTION 3. Headings. The descriptive headings contained in this Amendment Agreement
are included for convenience of reference only and shall not affect in any way the meaning or
interpretation of this Agreement.

          SECTION 4. Counterparts. This Amendment Agreement may be executed (including by
facsimile transmission) in one or more counterparts, and by the different parties hereto in
separate counterparts, each of which when executed and delivered shall be deemed to be an original
but all of which taken together shall constitute one and the same agreement.

          SECTION 5. Ratification. Except as amended hereby, the Portfolio Agreement shall
remain unmodified and in full force and effect, and is hereby ratified and confirmed.

          SECTION 6. Defined Terms. Capitalized terms used and not otherwise defined herein
shall have the meanings ascribed thereto in the Portfolio Agreement.

 2

 

 

          IN WITNESS WHEREOF, the parties hereto have caused this Amendment Agreement to be executed as
of the date first written above by their respective officers thereunto duly authorized.

	 	 	 	 	 
	 	MERRILL LYNCH CREDIT CORPORATION

 	 
	 	By:  	  /s/ Lawrence P. Washington
 	 
	 	 	  Name:  	Lawrence P. Washington 	 
	 	 	  Title:  	Chairman and President 	 
	 

	 	 	 	 	 
	 	CENDANT MORTGAGE CORPORATION

 	 
	 	By:  	  /s/ Gregory A. Gentek
 	 
	 	 	  Name:  	Gregory A. Gentek 	 
	 	 	  Title:  	Senior Vice President

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