Document:

EX-10.69

 

Exhibit 10.69

EXECUTION COPY

 

LOAN PURCHASE AND SALE 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.

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	Section 1.

	 	Definitions
	 	 	1	 
	Section 2.

	 	Purchase and Sale of PHH Loans
	 	 	8	 
	Section 3.

	 	Assignment of PHH Loans
	 	 	9	 
	Section 4.

	 	Reporting
	 	 	10	 
	Section 5.

	 	Sale of Mortgage Loans to Third Parties
	 	 	10	 
	Section 6.

	 	Representations and Warranties of MLCC as to PHH Loans
	 	 	10	 
	Section 7.

	 	Representations and Warranties of MLCC as to Pipeline Loans
	 	 	10	 
	Section 8.

	 	Representations and Warranties of MLCC as to Pledged Asset Services
	 	 	11	 
	Section 9.

	 	Representations and Warranties of PHH
	 	 	11	 
	Section 10.

	 	Confidentiality and No Personal Solicitation
	 	 	12	 
	Section 11.

	 	Indemnification
	 	 	13	 
	Section 12.

	 	Termination
	 	 	14	 
	Section 13.

	 	No Assignment
	 	 	15	 
	Section 14.

	 	Governing Law
	 	 	15	 
	Section 15.

	 	Lawful Conduct; Severability; Release
	 	 	15	 
	Section 16.

	 	Amendments
	 	 	15	 
	Section 17.

	 	Captions
	 	 	15	 
	Section 18.

	 	Notices
	 	 	15	 
	Section 19.

	 	Counterparts
	 	 	16	 
	Section 20.

	 	No Waivers; Remedies Cumulative
	 	 	16	 
	Section 21.

	 	Binding Effect
	 	 	16	 
	Section 22.

	 	Benefit of Parties Only
	 	 	16	 
	Section 23.

	 	Construction
	 	 	17	 

Loan Purchase and Sale Agreement

i

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page
	Section 24.

	 	Further Assurances; Survival
	 	 	17	 
	Section 25.

	 	Cooperation
	 	 	17	 
	 
	 	 	 	 	 	 
	Exhibit A — Change of Control List	 	 	 	 
	Exhibit B — Servicing Provisions	 	 	 	 
	Exhibit C — [Reserved]	 	 	 	 
	Exhibit D — Price Adjustments	 	 	 	 

ii

 

 

LOAN PURCHASE AND SALE AGREEMENT

          THIS LOAN PURCHASE AND SALE AGREEMENT (the “Purchase Agreement”) effective as of
January 2, 2001 (the “Effective Date”) is entered into by and between Merrill Lynch Credit
Corporation, a corporation organized and existing under the laws of the State of Delaware
(“MLCC”), and Cendant Mortgage Corporation d/b/a PHH Mortgage Services, a corporation
organized under the laws of the State of New Jersey (“PHH”) (each, individually, a
“Party” and collectively, the “Parties”).

W I T N E S S E T H :

          WHEREAS, MLCC is duly licensed and authorized to originate Mortgage Loans:

          WHEREAS, the Parties have entered into that certain Origination Assistance Agreement dated as
of the Effective Date (the “Origination Agreement”), under the terms of which PHH shall
assist MLCC in the origination of Mortgage Loans;

          WHEREAS, PHH is a mortgage banking company duly licensed and authorized to originate, process,
and purchase Mortgage Loans and desires to provide those services to MLCC as more particularly set
forth in the Origination Agreement and in this Agreement;

          WHEREAS, MLCC desires to originate Mortgage Loans with the assistance of PHH for sale into the
secondary mortgage market; and

          WHEREAS, PHH is willing to purchase from MLCC Mortgage Loans that have been closed by PHH, on
behalf of MLCC, and funded by MLCC and that meet PHH purchase criteria;

          NOW, THEREFORE, the Parties, in consideration of the terms, conditions, promises and
agreements set forth in this Purchase Agreement, agree as follows:

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

          “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

Loan Purchase and Sale Agreement

 

 

“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,
regulations, administrative interpretations and ordinances as well as any of the foregoing
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 and 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
upon 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.

          “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 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 Mortgage 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
to or subtraction from the Purchase Price.

Loan Purchase and Sale Agreement

2

 

          “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.
Equity Access Loans, Jumbo/Non-Conforming Loans, or Government Loans that 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.

          “Customers” shall mean the current and prospective customers of MLCC.

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

          “EDP” means the electronic data processing system used by MLCC and PER, 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 line of credit
secured by a Mortgage Instrument, currently referred to by MLCC as “Equity Access Loans” and
offered under a program currently referred to by MLCC as the Equity Access Program.

          “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.

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

Loan Purchase and Sale Agreement

3

 

          “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.

          “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.

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

          “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 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 improved 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.

Loan Purchase and Sale Agreement

4

 

          “Mortgage Loan Types” means the various types of Mortgage Loans 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.

          “Mortgaged Property,” means the collateral given to secure the repayment of 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 Agreement” means the Origination Assistance Agreement, dated as of the
date hereof, by and between MLCC and PHH, as the same may be amended from time to time in
accordance with the terms thereof.

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

Loan Purchase and Sale Agreement

5

 

          “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.

          “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 the Origination 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.

          “Portfolio Servicing Agreement” means the Portfolio Servicing Agreement, dated as of
January 28, 2000, between MLCC and PHH, as the same may be amended from time to time in accordance
with the terms thereof.

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

          “Program” shall mean the origination of Mortgage Loans for customers under the
Origination Agreement on a private label basis.

Loan Purchase and Sale Agreement

6

 

          “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 collectively (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.

          “Servicing Provisions” means those policies, procedures and requirements pertaining to
the servicing of Mortgage Loans, as set forth in detail on Exhibit B hereto.

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

          “Surety Bond” means the limited purpose Surety Bond, dated February 28, 1996, issued
by the Surety Bond Issuer in favor of MLCC.

          “Surety Bond Issuer” means Ambac Assurance Corporation (f/k/a AMBAC Indemnity
Corporation) or any successor thereto.

          “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.

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

	 	 	 
	Definition	 	Location
	Aggregate Pipeline Loan Purchase Price

	 	2(c)
	AMBAC Statement

	 	3(b)
	Bankrupt Party

	 	12
	Effective Date

	 	Preamble
	Extension Term

	 	12
	Indemnitees

	 	11(a)
	Initial Termination Date

	 	12
	Letter Agreement

	 	2(c)
	MLCC

	 	Preamble
	MLCC Account

	 	2(b)
	Mortgage

	 	3
	Mortgage Note

	 	2(b)
	Origination Agreement

	 	Recitals
	Party/Parties

	 	Preamble
	PHH

	 	Preamble
	PHH Loans

	 	2(a)
	Purchase Agreement

	 	Preamble
	Purchase Price

	 	2(b)

Loan Purchase and Sale Agreement

7

 

	 	 	 
	Servicing Agreement

	 	Recitals
	Servicing Rights

	 	2(a)

          (b) 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 the 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 24, 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.

          SECTION 2. Purchase and Sale of PHH Loans. (a) Except as otherwise provided herein,
PHH agrees to purchase from MLCC, and MLCC agrees to sell to PHH, all right, title and interest in
and to all Mortgage Loans that have been originated in accordance with and under the terms of the
Origination Agreement, other than any Alternative Loan (“PHH Loans”), including the right
to service such PHH Loans, collect the servicing fee on such PHH Loans, and collect any income
related thereto (“Servicing Rights”), subject to the respective representations, warranties
and covenants of the Parties under this Purchase Agreement,

Loan Purchase and Sale Agreement

8

 

including the obligation of PHH to service such PHH Loans in accordance with the Servicing
Provisions. PHH shall have no obligation to purchase, and MLCC shall have no obligation to sell,
any Alternative Loans hereunder. PHH covenants and agrees that in exercising and performing all
acts necessary and incident to the Servicing Rights, it will do so in accordance with the Servicing
Provisions.

          (b) PHH shall purchase all PHH Loans from MLCC by wiring the Purchase Price for each PHH Loan
in immediately available funds to an account designated by MLCC (the “MLCC Account”) no
later than [* * *] following the day on which a PHH Loan is funded by MLCC pursuant to the
Origination Agreement. The “Purchase Price” for each PHH Loan shall be equal to [* * *]
such PHH Loan pursuant to the terms of the note executed in connection with the PHH Loan (sometimes
referred to hereafter as the “Mortgage Note”) from the date the PHH Loan funds were
disbursed by MLCC up to but not including the day PHH wires the Purchase Price to MLCC.

          (c) By no later than five (5) Business Days after the Effective Date, PHH shall purchase the
Pipeline Loans from MLCC by wiring the “Aggregate Pipeline Loan Purchase Price” (as such
term is defined in the Letter Agreement, dated as of December 15, 2000, executed by PHH and MLCC,
the “Letter Agreement”) in immediately available funds to the MLCC Account.

          (d) Without relieving PHH of any of its obligations hereunder or MLCC waiving its termination
rights set forth in Section 12, in the event that PHH does not purchase any PHH Loan in accordance
with the terms of Section 2, MLCC shall not be required to sell such PHH Loan (including Servicing
Rights with respect thereto) to PHH hereunder and may sell or otherwise transfer such PHH Loan
(including Servicing Rights with respect thereto) to a third party or retain such PHH Loan for its
own account. The failure of PHH to purchase any PHH Loan in accordance with this paragraph (d)
shall not entitle PHH to the benefit of any cure period specified in Section 12 of this Purchase
Agreement with respect to such PHH Loans.

          SECTION 3. Assignment of PHH Loans. (a) When MLCC receives the Purchase Price from
PHH for a particular PHH Loan, PHH shall, at its sole cost and expense and on behalf of MLCC, and
MLCC hereby authorizes PHH to, on its behalf, endorse the related Mortgage Note and assign the
related security instrument (sometimes referred to hereafter as the “Mortgage”) to PHH, or
a secondary market investor specified by PHH, as soon as reasonably possible, and shall in similar
manner execute all such other documents necessary to make PHH the mortgagee or other secured party
of record. Any recording fees or similar expenses due and payable on account of the assignments
contemplated in this section shall be paid by PHH. To the extent MLCC shall have in its possession
any original PHH Loan documents at the time of the assignment of the PHH Loan to PHH, MLCC shall
thereupon deliver the original of same to PHH.

          (b) On the closing date of each Additional Collateral Mortgage Loan, MLCC shall cause to be
delivered to PHH: (i) an assignment of MLCC’s interest under the Surety Bond with respect to such
Additional Collateral Mortgage Loan sold on such date; and (ii) a certificate

 

			
	[***] 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.

Loan Purchase and Sale Agreement

9

 

of the Surety Bond Issuer confirming the insurance of such Additional Collateral Mortgage Loan sold
on such date pursuant to the provisions of the Surety Bond. On a quarterly basis, MLCC shall
submit to PHH a statement (an “AMBAC Statement”) specifying the amounts of premiums paid by
MLCC to AMBAC with respect to the Surety Bond for all Additional Collateral Mortgage Loans sold to
PHH during the prior quarterly period. Each AMBAC Statement shall include documentation evidencing
the amounts invoiced to PHH. Upon receipt of each AMBAC Statement, PHH shall, within [* * *], pay
to MLCC an amount equal to the aggregate of all amounts invoiced on the respective AMBAC Statement.
From time to time. PHH may make reasonable requests from MLCC with respect to Additional
Collateral Mortgage Loans to the extent that such information is necessary in relation to the
subsequent sale of such Mortgage Loan, and MLCC hereby agrees to comply with such reasonable
requests, to the extent such compliance does not violate the Applicable Requirements.

          SECTION 4. Reporting. PHH shall provide MLCC on a monthly basis with 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.

          SECTION 5. Sale of Mortgage Loans to Third Parties. MLCC retains the right, at its
sole option and discretion, to sell to a third party any Alternative Loan. For each such
Alternative Loan, the transfer of servicing rights shall be governed by the terms and conditions of
the Servicing Rights Purchase and Sale Agreement, dated as of January 28, 2000, as amended, by and
between PHH and MLCC, and PHH shall service such Alternative Loans pursuant to the terms of the
Portfolio Servicing Agreement.

          SECTION 6. Representations and Warranties of MLCC as to PHH Loans. MLCC represents
and warrants to PHH that at the time it executes this Purchase Agreement and at the time it sells
each PHH Loan to PHH in accordance with the terms of this Purchase Agreement:

          (a) it is duly organized and existing, and in good standing, under applicable law;

          (b) it has the requisite authority to enter into this Purchase Agreement under applicable
federal, state, and local laws, and is in compliance in all material respects with the terms and
conditions of this Purchase Agreement;

          (c) the terms and conditions of this Purchase Agreement do not violate any provision of its
organizational documents; and

          (d) except as otherwise provided in the Origination Agreement, in connection with all PHH
Loans purchased by PHH pursuant to this Purchase Agreement, from the date any PHH Loan is closed
pursuant to the Original Agreement until the date such PHH Loan is purchased pursuant to this
Purchase Agreement, MLCC will have taken no action (not otherwise the responsibility of PHH
pursuant to the Origination Agreement) nor will it have failed to take any action (not otherwise
the responsibility of PHH pursuant to the Origination Agreement) that might cause any PHH Loan not
to be in compliance with, or

 

			
	[***] 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.

Loan Purchase and Sale Agreement

10

 

not to have been originated in compliance with, all applicable federal, state and local laws and
regulations, the Mortgage Lending Laws, Applicable Requirements, and the terms of this Purchase
Agreement.

          SECTION 7. Representations and Warranties of MLCC as to Pipeline Loans. The Pipeline
Loans have been processed by MLCC in accordance with the MLCC Underwriting Guidelines previously
submitted to PHH and in accordance with all Applicable Requirements.

          SECTION 8. Representations and Warranties of MLCC as to Pledged Asset Services. MLCC
represents and warrants to PHH that prior to its assignment to the related investor, MLCC had a
first priority perfected security interest in each Securities Account, or, if necessary to perfect
a first priority security interest in each asset contained in such Securities Account, a first
priority perfected security interest in each such asset contained in such Securities Account and
following MLCC’s assignment of the Pledge Agreements and related security interest, the related
investor has a first priority perfected security interest in each Securities Account, or, if
necessary to perfect a first priority security interest in each asset contained in such Securities
Account, a perfected first priority security interest in each such asset contained in such
Securities Account.

          SECTION 9. Representations and Warranties of PHH. PHH represents and warrants to MLCC
that at the time it executes this Purchase Agreement and at the time it purchases each PHH Loan
from MLCC:

          (a) it is duly organized and existing, and in good standing, under the laws of the State of
New Jersey and it is qualified to transact business in each jurisdiction in which such
qualification is deemed necessary. It is properly licensed and qualified to transact business in
all appropriate jurisdictions to conduct all activities performed under this Agreement;

          (b) it has the requisite authority to enter into this Purchase Agreement and to perform the
obligations required of it hereunder under applicable federal, state, and local laws, and
compliance with the terms and conditions of this Purchase Agreement do not and will not violate any
provision of its Articles of Incorporation or its Bylaws. The execution and delivery of this
Agreement, and the consummation of the transactions contemplated hereby, each have been duly and
validly authorized by all necessary corporate action. This Agreement constitutes a valid and
legally binding agreement of PHH enforceable in accordance with its terms, except as may be limited
by bankruptcy, insolvency, or other laws or equitable principles affecting the enforcement of
creditors’ rights generally;

          (c) the terms and conditions of this Purchase Agreement do not violate any instrument relating
to the conduct of PHH’s business or any other agreement to which PHH is a party; and no consent or
approval of any governmental entity or any third party is required for PHH to execute, or to
purchase PHH Loans pursuant to, this Purchase Agreement;

Loan Purchase and Sale Agreement

11

 

          (d) it has made no misstatement or omission of material fact in any written or oral representation
it has made to MLCC in connection with this Purchase Agreement;

          (e) except as otherwise provided in the Origination Agreement, with respect to all PHH Loans
to be sold hereunder that were originated by MLCC with the assistance of PHH pursuant to the
Origination Agreement, PHH has performed its services under the Origination Agreement in accordance
with the requirements set forth therein, and has taken no action, nor has it failed to take any
action, that might cause any PHH Loan not to be in compliance in all material respects with all
Applicable Requirements and the terms of this Purchase Agreement, including but not limited to:
the fair housing act, 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 also including,
without limitation, the Consumer Credit Reporting Act, Equal Credit Opportunity Act of 1975 and
Regulation B, Fair Credit Reporting Act, Financial Institutions Reform Recovery and Enforcement
Act, Truth in Lending Law, in particular, Regulation Z as amended, the Flood Disaster Protection
Act of 1973, the Real Estate Settlement Procedures Act of 1975, and Regulation X and state consumer
credit codes and laws in connection with all PHH Loans;

          (f) there is no litigation, proceeding, claim, demand or governmental investigation pending
or, to the knowledge of PHH, threatened, nor is there any order, injunction or decree outstanding
against or relating to PHH, which could result in liability to MLCC or materially impair the
ability of PHH to perform its obligations hereunder, nor does PHH know of any material basis for
any such litigation, proceeding, claim or demand or governmental investigation. PHH is not in
default with respect to any order of any court, governmental authority or arbitration board or
tribunal to which PHH is a party or is subject, and PHH is not in violation of any laws,
ordinances, governmental rules or regulations to which it is subject; and

          (g) no consent, approval, authorization or order of any court or governmental agency or body
is required for the execution, delivery and performance by PHH of or compliance by PHH with this
Agreement or the purchase of the PHH Loans as evidenced by the consummation of the transactions
contemplated by this Agreement, or if required, such approval has been obtained prior to the
Effective Date.

          SECTION 10. 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

Loan Purchase and Sale Agreement

12

 

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 other governing or regulatory body 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) All information provided by Mortgagors in connection with a PHH Loan shall be treated by
PHH as confidential information and shall be handled in the same manner as described in Section
11(a) and as otherwise required under applicable laws.

          (c) 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 through 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. 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 such
solicitation, PHH processes and closes the related Mortgage Loans pursuant to the Origination
Agreement and purchases Conforming Conventional Mortgage Loans and Jumbo/Non-Conforming Loans
resulting therefrom pursuant to this 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 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 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 Affiliates to refinance Mortgage Loans
under this Program in response to, or as a result of, contact initiated by such related Customers
or their representatives shall not constitute solicitation. PHH shall cause each subsequent
purchaser of

Loan Purchase and Sale Agreement

13

 

any Mortgage Loan to comply with the terms, conditions, and restrictions set forth in this
paragraph.

          (d) The confidentiality provisions contained in this Section 10 shall survive the termination
of this Agreement.

          SECTION 11. Indemnification. (a) Each Party hereto (each an Indemnitor) agrees to
indemnify, defend and hold harmless the other Party and each of its respective officers, directors,
employees, agents, attorneys, members and shareholders of each of the foregoing (collectively
called the “Indemnitees”) from and against any and all Losses (as that term is defined in
the Origination Agreement) 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) the breach by the Indemnitor of any term, condition, representation,
obligation or warranty of such Indemnitor set forth in this Agreement or (ii) the negligence or
willful misconduct of the Indemnitor.

          (b) Before either Party is entitled to indemnification as provided in this Section 11, the
Party claiming indemnification shall give notice to the other Party of the claimed breach, and the
other Party shall have sixty (60) days to cure such breach, which period shall have expired before
either Party may enforce rights to indemnification hereunder. Cure of the breach within such sixty
(60) day period shall not relieve the breaching Party from its obligations to indemnify the other
Party for the Losses suffered by the other Party on account of the breach by the breaching Party.

          (c) The indemnification provisions contained in this Section 11 shall survive the termination
of this Agreement.

          SECTION 12. Termination. This Purchase 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 Origination Agreement is terminated in accordance with the terms
thereof. If the 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 (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

Loan Purchase and Sale Agreement

14

 

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; (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, MI., 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. Upon termination of this Agreement, PHH shall not be required to purchase PHH Loans,
except as to those for which an Approval Letter has been issued; provided, however,
that termination of this Agreement pursuant hereto shall not release any party from liability for
its own misrepresentation or for any breach by it prior to such termination of any covenant,
agreement or warranty contained herein.

          SECTION 13. 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 Agreement without first obtaining the written consent of the other party.

          SECTION 14. Governing Law. This Agreement shall be governed by, and construed and in
accordance with, the laws of the State of New York.

          SECTION 15. 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 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 cannot
fulfill any obligation hereunder due to any prohibition under local, state or federal laws
pertaining to such obligation.

          SECTION 16. Amendments. (a) This Purchase Agreement 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 except as set forth in paragraph (b) below.

          (b) 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 17. Captions. The headings and captions in this Purchase Agreement are for
ease of reference only and shall not be relied upon in construing any provision hereof.

Loan Purchase and Sale Agreement

15

 

          SECTION 18. Notices. All notices and statements to be given under this Purchase
Agreement are to be in writing, delivered by hand, facsimile, overnight express or similar service,
or first class United States mail, postage prepaid and registered or certified with return receipt
requested, or facsimile, to the following addresses or facsimile numbers, as applicable (which
addresses and facsimile numbers may be revised by written notice):

MLCC:

Merrill Lynch Credit Corporation

4802 Deer Lake Drive East

Jacksonville, FL 32246-6484

Attention: President

          with a copy to:

Merrill Lynch Credit Corporation

4802 Deer Lake Drive East

Jacksonville, FL 32246-6484

Attention: General Counsel

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:

Cendant Mortgage Corporation

3000 Leadenhall Road

Mt. Laurel, NJ 08054

Attention: William F. Brown

Senior Vice President & General Counsel

Mail Stop LGL

Facsimile: 856-917-9422

     All written notices and statements shall be deemed given, delivered, received and effective upon
personal delivery or receipt of facsimile.

          SECTION 19. Counterparts. This Purchase 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 20. No Waivers; Remedies Cumulative. The waiver of any breach of this
Purchase Agreement shall not be construed to be a waiver of any other or subsequent breach.

Loan Purchase and Sale Agreement

16

 

All remedies afforded by this Purchase 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 21. Binding Effect. This Purchase 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 22. Benefit of Parties Only. This Purchase Agreement is made for the sole
benefit of the Parties hereto and of their respective successors and 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. There are no intended third party beneficiaries of this Agreement.

          Further, except as otherwise provided in this Agreement, the relationship between the parties
is that of seller and purchaser and not a partnership or joint venture, and PHH is not, and shall
not represent to third parties that it is acting as an agent for, and on behalf of, MLCC.

          SECTION 23. Construction. This Purchase Agreement shall be construed fairly as to
both Parties and not in favor of or against either Party, regardless of which Party prepared this
Purchase Agreement.

          SECTION 24. Further Assurances; Survival. The representations and warranties
contained in this Agreement shall survive the sale of the PHH Loans to PHH and shall not terminate,
notwithstanding the termination of this Agreement, any restrictive or qualified endorsement on any
Mortgage Note or PHH’s examination or failure to examine any Mortgage File or PHH’s approval of any
such PHH Loan for purchase. In addition, the provisions contained in Sections 10 and 11 shall
survive the termination of this Agreement.

          SECTION 25. Cooperation. The Parties acknowledge that the success of their efforts
under this Purchase 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 and to effect any and all improvements, modifications or
enhancements of the internal systems of either Party hereto, all as soon as possible.

Loan Purchase and Sale Agreement

17

 

          IN WITNESS WHEREOF, each of the undersigned Parties has caused this Purchase 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:	 	 
	 

	 	 	 	 	 	 

Loan Purchase and Sale Agreement

 

 

MERRILL LYNCH CREDIT CORPORATION

December 15, 2000

Mr. Robert E. Groody

Senior Vice President — Finance

Cendant Mortgage Corporation

3000 Leadenhall Road

Mt. Laurel, NJ 08504

Dear Bob:

          In connection with the Asset Purchase Agreement dated as of the date hereof between Cendant
Mortgage Corporation (“Cendant”) and Merrill Lynch Credit Corporation (“MLCC”) (the
“Asset Purchase Agreement”) and the transactions contemplated thereby, Cendant shall be
obligated to purchase the Pipeline Loans pursuant to Section 2(c) of the Loan Purchase Agreement
(as such term is defined in the Asset Purchase Agreement) for an amount to be determined as
provided in paragraph 2 of this letter agreement (this “Letter Agreement”) (such amount, as
determined in accordance with the following paragraph, the “Aggregate Pipeline Loan Purchase
Price”). Further, in accordance with the Origination Assistance Agreement, MLCC shall be
obligated to pay origination assistance fees to PHH with respect to any Pipeline Loan that becomes
a Mortgage Loan in amounts as set forth in paragraph 3 of this Letter Agreement. In return, MLCC
shall receive from Cendant [* * *] as value for the sale of the servicing rights with respect
thereto under either of the Servicing Rights Purchase and Sale Agreement dated as of January 28,
2000, as amended, between Cendant and MLCC, or the Servicing Rights Purchase and Sale Agreement
dated as of December 15, 2000 between Cendant and MLCC.

          No later than[* * *], Cendant and MLCC shall determine and set the Aggregate Pipeline Loan
Purchase Price in accordance with Schedule I attached hereto.

          Upon the closing and funding of any Pipeline Loan, MLCC shall pay to PHH an origination
assistance fee in an amount as specified on Schedule II hereto.

          If you are in agreement with the foregoing, please acknowledge such agreement by signing in
the space provided below.

 

			
	[***] 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.

Loan Purchase and Sale Agreement

 

 

          Initially capitalized terms not otherwise defined in this Letter Agreement (including the
schedules attached hereto) shall have the meanings set forth in the Loan Purchase and Sale
Agreement or the Origination Assistance Agreement, as applicable. 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.

	 	 	 	 	 
	 	Yours truly,

 	 
	 	/s/
Kevin O’Hanlon
 	 
	 	Kevin O’Hanlon 	 
	 	President and Chief Operating Officer 	 
	 

	 	 	 
	Acknowledged and agreed as
of this ___day of December, 2000

	 
	 	 
	CENDANT MORTGAGE CORPORATION
	 	 
	 
	 	 
	/s/ Terence Edwards
	 	 
	 	 	 
	Name:
	 	 
	Title:
	 	 

 

 

EXECUTION COPY

 

ADDENDUM AGREEMENT NO. 1

TO LOAN PURCHASE AND SALE AGREEMENT

By and Between

MERRILL LYNCH CREDIT CORPORATION

and

CENDANT MORTGAGE CORPORATION

Dated as of

November 30, 2001

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 

	 	Article I	 	 	 	 
	Section 1.01

	 	Definitions
	 	 	1	 
	(a)

	 	Certain Defined Terms
	 	 	1	 
	(b)

	 	Certain Cendant Terms
	 	 	3	 
	Section 1.02

	 	Incorporation of Addendum
	 	 	3	 
	Section 1.03

	 	Ratification
	 	 	3	 
	 

	 	Article II	 	 	 	 
	Section 2.01

	 	Purchase and Sale of Mortgage Loans
	 	 	4	 
	Section 2.02

	 	Purchase Price
	 	 	4	 
	Section 2.03

	 	Assignment of Certain Rights
	 	 	4	 
	Section 2.04

	 	Program Exception Loans
	 	 	4	 
	(a)

	 	Agreement to Purchase
	 	 	4	 
	(b)

	 	Purchase Price
	 	 	5	 
	 

	 	Article III	 	 	 	 
	Section 3.01

	 	No Assignment
	 	 	5	 
	Section 3.02

	 	Governing Law
	 	 	5	 
	Section 3.03

	 	Lawful Conduct; Severability; Release
	 	 	5	 
	Section 3.04

	 	Amendments
	 	 	5	 
	Section 3.05

	 	Captions
	 	 	5	 
	Section 3.06

	 	Counterparts
	 	 	6	 
	Section 3.07

	 	Construction
	 	 	6	 

 

 

ADDENDUM AGREEMENT NO. 1 TO

LOAN PURCHASE AND SALE AGREEMENT

          ADDENDUM AGREEMENT NO. 1 TO LOAN PURCHASE AND SALE 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 (the “MLCC”), and CENDANT MORTGAGE CORPORATION
d/b/a Cendant 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 Loan Purchase and Sale Agreement, dated
as of December 15, 2000 (the “Purchase Agreement”); and

          WHEREAS, each of MLCC and Cendant desire to supplement the Purchase Agreement with the terms
and provisions set forth in this Addendum;

          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
Purchase 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 Purchase 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.”

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

          “Broker Agreement” means a “Broker Agreement” entered into by MLCC and a Mortgage
Broker in connection with the Mortgage Broker Program.

 

 

          “Cendant Loans” shall mean 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.

          “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 Cendant Loans pursuant to either the Correspondent Lending Program or the
Mortgage Broker Program, and which is amended from time to time by MLCC.

          “Correspondent Lending Program” means MLCC’s program of purchasing Cendant 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 Cendant Loans referred by a Correspondent Lender to MLCC, which Cendant
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 Cendant Loans originated and closed pursuant to and in
accordance with the “Delegated Underwriting Program” (as such term is defined in the Correspondent
Lending Guide).

          “Master Purchase Agreement” means a “Master Loan Purchase and Sale Agreement” 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, Cendant 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 the 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 Cendant Loans
and Mortgage Brokers under the Mortgage Broker Program, as the same may be amended from time to
time by MLCC.

          “Mortgage Broker Program” means MLCC’s program of underwriting Cendant Loans referred
to MLCC by Mortgage Brokers.

2

 

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

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

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

          “Program Exception Loan” means a Mortgage Loan (a) which shall have been closed and
purchased by MLCC pursuant to either the Correspondent Lender Program or the Mortgage Broker
Program and (b) with respect to which Cendant and MLCC shall have agreed in writing that such
Mortgage Loan is a “Program Exception Loan” and that it shall be deemed a “Cendant Loan.”

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

          (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 Purchase Agreement shall apply or shall be deemed to be given or
made, as the case may be, to Cendant Loans purchased and sold pursuant to the terms of this
Addendum, and to the subject matter of this Addendum. Further, except as indicated below, all
references in the Purchase Agreement to a “Mortgage Loan” shall be deemed to include a reference to
the Cendant Loans purchased and sold pursuant to the terms of this Addendum.

          Section 1.03 Ratification. The Purchase Agreement is hereby supplemented by
the terms and conditions of this Addendum. Except as supplemented by this Addendum, the

3

 

Purchase Agreement shall remain unmodified and in full force and effect, and is hereby ratified and
confirmed.

ARTICLE II

PURCHASE AND SALE

          Section 2.01 Purchase and Sale of Mortgage Loans. Cendant agrees to purchase
from MLCC, and MLCC agrees to sell to Cendant, all right, title and interest in and to all Cendant
Loans that have been (i) purchased by MLCC pursuant to the Correspondent Lending Program or (ii)
originated by MLCC pursuant to the Mortgage Broker Program, in each case other than Program
Exception Loans (collectively, the “Program Loans”), including the right to service such
Program Loans, collect the servicing fee on such Program Loans, and collect any income related
thereto (the “Program Servicing Rights”), subject to the respective representations,
warranties, obligations and covenants of MLCC and Cendant under the Purchase Agreement, including
the obligation of Cendant to service such Program Loans in accordance with the Servicing
Provisions. Cendant covenants and agrees that in exercising and performing all acts necessary and
incident to the Program Servicing Rights, it will do so in accordance with the Servicing
Provisions.

          Section 2.02 Purchase Price. Cendant shall purchase all Program Loans from
MLCC by wiring the Program Purchase Price (as defined below) for each Program Loan in immediately
available funds to an account designated by MLCC no later than [* * *]. The “Program Purchase
Price” for each Program Loan shall be equal to [* * *].

          Section 2.03 Assignment of Certain Rights. Upon discovery by either Cendant
or MLCC of a breach of any representation or warranty made by the Wholesale Lender in the Master
Purchase Agreement or the Broker Agreement, as the case may be, with respect to a Program Loan that
materially and adversely affects the interests of Cendant in such Program Loan, the party
discovering such breach shall give prompt written notice to the other. Upon the request of
Cendant, MLCC shall assign to Cendant any and all of its rights against the Wholesale Lender
arising from such a breach of representation or warranty. MLCC further agrees that it shall assist
Cendant, at Cendant’s sole cost and expense, in prosecuting any claim against such Wholesale Lender
arising from such a breach of representation or warranty.

          Section 2.04 Program Exception Loans

          (a) Agreement to Purchase. Cendant agrees to purchase from MLCC, and MLCC agrees to
sell to Cendant, all right, title and interest in and to all Program Exception Loans, including the
right to service such Program Exception Loans, collect the servicing fee on such Program Exception
Loans, and collect any income related thereto (the “Exception 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.

4

 

Servicing Rights”, subject to the respective representations, warranties, obligations and
covenants of MLCC and Cendant under the Purchase Agreement, including the obligation of Cendant to
service such Program Exception Loans in accordance with the Servicing Provisions. Cendant
covenants and agrees that in exercising and performing all acts necessary and incident to the
Exception Loan Servicing Rights, it will do so in accordance with the Servicing Provisions.

          (b) Purchase Price. Cendant shall purchase all Program Exception Loans from MLCC by
wiring the Exception Loan Purchase Price (as defined below) for each Program Exception Loan in
immediately available funds to an account designated by MLCC no later than [* * *]. The
“Exception Loan Purchase Price” for each Program Exception Loan shall be equal to [* * *].

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 Addendum without first obtaining the written consent of the other party.

          Section 3.02 Governing Law. This 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 local, state or federal law. 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 3.04 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.

 

			
	[***] 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

 

          Section 3.05 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 3.06 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 3.07 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.

6

 

          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 	 
	 

7

 

EXECUTION COPY

 

LOAN PURCHASE AND SALE AGREEMENT

AMENDMENT NO. 1

By and Between

MERRILL LYNCH CREDIT CORPORATION

AND

CENDANT MORTGAGE CORPORATION

Dated as of

December 21, 2001

 

 

 

LOAN PURCHASE AND SALE AGREEMENT

AMENDMENT NO. 1

          LOAN PURCHASE AND SALE 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 a Loan Purchase and Sale Agreement, dated as of
December 15, 2000 (the “Purchase Agreement”); and

          WHEREAS, each of MLCC and Cendant wishes to amend the Purchase 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 Purchase Agreement. The Purchase Agreement is hereby
amended as follows:

     (a) Section 1 (a). Section 1(a) of the Purchase Agreement is amended by
deleting the defined terms “Alternative Loans” and “Mortgage Loan” 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-end 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(c).

     Section 1 (a) of the Purchase 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) Exhibit D. Exhibit D to the Purchase Agreement is amended by deleting the
text of such exhibit in its entirety and replacing it with the Exhibit D attached hereto.
This Section 1(b) of this Amendment Agreement shall be effective as of, and retroactive to,
all PHH Loans purchased and sold under the Purchase Agreement on and after July 1, 2001.

     (c) Schedule 1. The Purchase Agreement is hereby amended by adding Schedule l
attached to this Amendment Agreement as Schedule 1 to the Purchase 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 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 Purchase 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 Purchase 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/
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 	 
	 

 

 

 

LOAN PURCHASE AND SALE AGREEMENT

AMENDMENT NO. 2

By and Between

MERRILL LYNCH CREDIT CORPORATION

AND

CENDANT MORTGAGE CORPORATION

Dated as of

December 30, 2002

 

 

 

LOAN PURCHASE AND SALE AGREEMENT

AMENDMENT NO. 2

          LOAN PURCHASE AND SALE AGREEMENT AMENDMENT NO. 2, dated and effective as of December 30, 2002
(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 Loan Purchase and Sale Agreement, dated as of
December 15, 2000, and amended by a certain Loan Purchase and Sale Agreement No. 1 dated as of
December 21, 2001 (collectively, the “Purchase Agreement”);

          WHEREAS, MLCC and Cendant amended the Purchase Agreement pursuant to the terms of a certain
Loan Purchase and Sale Agreement No. 1 dated as of December 21, 2001;

          WHEREAS, each of MLCC and Cendant again wishes to amend the Purchase 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 Purchase Agreement. Exhibit D to the Purchase Agreement
is hereby amended by deleting the text of such exhibit in its entirety and replacing it with the
Exhibit D attached hereto. This Section 1 of this Amendment Agreement shall be effective as of all
PHH Loans purchased and sold under the Purchase Agreement on and after December 30, 2002.

          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 Purchase 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 Purchase 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 	 
	 

 

 

 

LOAN PURCHASE AND SALE AGREEMENT

AMENDMENT NO. 3

By and Between

MERRILL LYNCH CREDIT CORPORATION

AND

CENDANT MORTGAGE CORPORATION

Dated as of

June 30, 2003

 

 

 

LOAN PURCHASE AND SALE AGREEMENT

AMENDMENT NO. 3

          LOAN PURCHASE AND SALE AGREEMENT AMENDMENT NO. 3, dated and effective as of June 30, 2003
(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 Loan Purchase and Sale Agreement, dated as of
December 15, 2000, and amended by a certain Loan Purchase and Sale Agreement Amendment No. 1 dated
as of December 21, 2001 and a certain Loan Purchase and Sale Agreement Amendment No. 2 dated as of
December 30, 2002 (collectively, the “Purchase Agreement”);

          WHEREAS, each of MLCC and Cendant again wishes to amend the Purchase 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 Purchase Agreement. Exhibit D to the Purchase Agreement
is hereby amended by deleting the text of such exhibit in its entirety and replacing it with the
Exhibit D attached hereto. This Section 1 of this Amendment Agreement shall be effective as of all
PHH Loans purchased and sold under the Purchase Agreement on and after June 30, 2003.

          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 Purchase 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 Purchase 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:  	  President 	 
	 
	 	CENDANT MORTGAGE CORPORATION

 	 
	 	By:  	  /s/ Robert E. Groody
 	 
	 	 	  Name:  	   Robert E. Groody 	 
	 	 	  Title:  	  Chief Operating Officer 	 
	 

 

 

 

LOAN PURCHASE AND SALE AGREEMENT

AMENDMENT NO. 4

By and Between

MERRILL LYNCH CREDIT CORPORATION

AND

CENDANT MORTGAGE CORPORATION

Dated as of

December 29, 2003

 

 

 

LOAN PURCHASE AND SALEAGREEMENT

AMENDMENT NO. 4

          LOAN PURCHASE AND SALE AGREEMENT AMENDMENT NO.4, dated and effective as of December 29, 2003
(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 Loan Purchase and Sale Agreement, dated as of
December 15, 2000, and amended by a certain Loan Purchase and Sale Agreement No. 1 dated as of
December 21, 2001, a certain Loan Purchase and Sale Agreement No. 2 dated as of December 30, 2002,
and a certain Loan Purchase and Sale Agreement No. 3 dated as of June 30, 2003 (collectively, the
“Purchase Agreement”);

          WHEREAS, each of MLCC and Cendant again wishes to amend the Purchase 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 Purchase Agreement. Exhibit D to the Purchase Agreement
is hereby amended by deleting the text of such exhibit in its entirety and replacing it with the
Exhibit D attached hereto. This Section 1 of this Amendment Agreement shall be effective as of all
PHH Loans purchased and sold under the Purchase Agreement on and after December 29, 2003.

          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 Purchase 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 Purchase 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:  	  President 	 
	 
	 	CENDANT MORTGAGE CORPORATION

 	 
	 	By:  	  /s/ Robert E. Groody
 	 
	 	 	  Name:  	  Robert E. Groody 	 
	 	 	  Title:  	  Chief Operating Officer 	 
	 

 

 

 

LOAN PURCHASE AND SALE AGREEMENT

AMENDMENT NO. 5

By and Between

MERRILL LYNCH CREDIT CORPORATION

AND

CENDANT MORTGAGE CORPORATION

Dated as of

June 28, 2004

 

 

 

LOAN PURCHASE AND SALE AGREEMENT

AMENDMENT NO. 5

          LOAN PURCHASE AND SALE AGREEMENT AMENDMENT NO. 5, dated and effective as of June 28, 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 Loan Purchase and Sale Agreement, dated as of
December 15, 2000, and amended by a certain Loan Purchase and Sale Agreement Amendment No. 1 dated
as of December 21, 2001, a certain Loan Purchase and Sale Agreement Amendment No. 2 dated as of
December 30, 2002, a certain Loan Purchase and Sale Agreement Amendment No. 3 dated as of June 30,
2003, and a certain Loan Purchase and Sale Agreement Amendment No. 4 dated as of December 29, 2003
(collectively, the “Purchase Agreement”);

          WHEREAS, each of MLCC and Cendant again wishes to amend the Purchase 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 Purchase Agreement. Exhibit D to the Purchase Agreement
is hereby amended by deleting the text of such exhibit in its entirety and replacing it with the
Exhibit D attached hereto. This Section 1 of this Amendment Agreement shall be effective as of all
PHH Loans purchased and sold under the Purchase Agreement on and after June 28, 2004.

          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 Purchase 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 Purchase 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:  	  President 	 
	 
	 	CENDANT MORTGAGE CORPORATION

 	 
	 	By:  	  /s/ Robert E. Groody
 	 
	 	 	  Name:  	  Robert E. Groody 	 
	 	 	  Title:  	  Chief Operating Officer 	 
	 

 

 

 

LOAN PURCHASE AND SALE AGREEMENT

AMENDMENT NO. 6

By and Between

MERRILL LYNCH CREDIT CORPORATION

AND

PHH MORTGAGE CORPORATION

(f/k/a Cendant Mortgage Corporation)

Dated as of

February 18, 2005

 

 

 

LOAN PURCHASE AND SALE AGREEMENT

AMENDMENT NO. 6

          LOAN PURCHASE AND SALE AGREEMENT AMENDMENT NO.6, dated and effective as of February 18, 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 d/b/a PHH Mortgage Services, f/k/a Cendant Mortgage
Corporation, a New Jersey corporation, with offices located at 3000 Leadenhall Road, Mt. Laurel,
New Jersey 08504 (“PHH”).

          WHEREAS, MLCC and PHH are parties to a Loan Purchase and Sale Agreement, dated as of December
15, 2000 (as amended and supplemented as of the date hereof, the “Purchase Agreement”);

          WHEREAS, each of MLCC and PHH desires to amend the Purchase 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 Purchase Agreement. The Purchase Agreement is hereby
amended as follows:

          (a) Schedule 1. Schedule 1 to the Purchase Agreement is hereby amended by deleting
the text of such Schedule in its entirety and replacing it with the Schedule 1 attached to this
Amendment Agreement.

          (b) Section 1(a). Section 1(a) of the Purchase Agreement is hereby amended by adding,
in alphabetical order, the following defined terms:

“Five Year ARM/Conforming Mortgage Loan” means a Five Year
ARM Mortgage Loan for which the principal balance thereof as of the
date of origination does not exceed the loan amount for a Conforming
Conventional Mortgage Loan.

“Five Year ARM/Jumbo/Non-Conforming Mortgage Loan” means a
Five Year ARM Mortgage Loan for which the principal balance thereof
as of the date of origination exceeds the maximum loan amount for a
Conforming Conventional Mortgage Loan.

“Fixed-Rate Equity Access® Loan” means any Equity
Access® Loan that has a fixed interest rate.

 

 

“Three Year ARM/Conforming Mortgage Loan” means a Three Year
ARM Mortgage Loan for which the principal balance thereof as of the
date of origination does not exceed the loan amount for a Conforming
Conventional Mortgage Loan.

“Three Year ARM/Jumbo/Non-Conforming Mortgage Loan” means a
Three Year ARM Mortgage Loan for which the principal balance thereof
as of the date of origination exceeds the maximum loan amount for a
Conforming Conventional Mortgage Loan.

          (c) Section 2. Section 2 of the Purchase Agreement is hereby amended by adding
thereto a new sub-section, Section 2(e), which shall provide in its entirety as follows:

“(e) MLCC may agree to sell to PHH, and PHH may agree to purchase
from MLCC, from time to time one or more PrimeFirst®
Loans that have been originated in accordance with and under the
terms of the Origination Agreement. Each such
PrimeFirst® Loan, including the related Servicing Rights,
shall be sold pursuant to, and in accordance with, the terms and
provisions of this Purchase Agreement, and shall be a “PHH Loan,”
and not an “Alternative Loan,” for all purposes of this Purchase
Agreement, including, without limitation, Section 2 hereof.”

          (d) Exhibit D. Exhibit D to the Purchase Agreement is hereby amended by deleting the
text of such exhibit in its entirety and replacing it with the Exhibit D attached to this Amendment
Agreement.

          (e) Section 1 of this Amendment Agreement shall be effective as of all applicable Mortgage
Loans purchased and sold under the Purchase Agreement on and after February 18, 2005.

          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 Purchase 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 Purchase 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:  	  President 	 
	 
	 	PHH MORTGAGE CORPORATION

 	 
	 	By:  	  /s/ Gregory A. Gentek
 	 
	 	 	  Name:  	  Gregory A. Gentek 	 
	 	 	  Title:  	  Senior Vice President 	 
	 

 

 

 

LOAN PURCHASE AND SALE AGREEMENT

AMENDMENT NO. 7

By and Between

MERRILL LYNCH CREDIT CORPORATION

AND

PHH MORTGAGE CORPORATION

(f/k/a Cendant Mortgage Corporation)

Dated as of

July 1, 2005

 

 

 

LOAN PURCHASE AND SALE AGREEMENT

AMENDMENT NO. 7

          LOAN PURCHASE AND SALE AGREEMENT AMENDMENT NO. 7, dated and effective as of July 1, 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 d/b/a PHH Mortgage Services, f/k/a Cendant Mortgage
Corporation, a New Jersey corporation, with offices located at 3000 Leadenhall Road, Mt. Laurel,
New Jersey 08504 (“PHH”).

          WHEREAS, MLCC and PHH are parties to a Loan Purchase and Sale Agreement, dated as of December
15, 2000 (as amended and supplemented as of the date hereof, the “Purchase Agreement”);

          WHEREAS, each of MLCC and PHH desires to amend the Purchase 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 Purchase Agreement. The Purchase Agreement is hereby
amended as follows:

          (a) Schedule 1. Schedule 1 to the Purchase Agreement is hereby amended by deleting
the text of such Schedule in its entirety and replacing it with the Schedule 1 attached to this
Amendment Agreement.

          (b) Exhibit D. Exhibit D to the Purchase Agreement is hereby amended by deleting the
text of such exhibit in its entirety and replacing it with the Exhibit D attached to this Amendment
Agreement.

          (c) Section 1 of this Amendment Agreement shall be effective as of all applicable Mortgage
Loans purchased and sold under the Purchase Agreement on and after July 1, 2005.

          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 Purchase 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 Purchase 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:  	  President 	 
	 
	 	PHH MORTGAGE CORPORATION

 	 
	 	By:  	  /s/ Gregory A. Gentek
 	 
	 	 	  Name:  	  Gregory A. Gentek 	 
	 	 	  Title:  	  Senior Vice President 	 
	 

 

 

 

LOAN PURCHASE AND SALE AGREEMENT

AMENDMENT NO. 8

By and Between

MERRILL LYNCH CREDIT CORPORATION

AND

PHH MORTGAGE CORPORATION

(f/k/a Cendant Mortgage Corporation)

Dated as of

January 1, 2006

 

 

 

LOAN PURCHASE AND SALE AGREEMENT

AMENDMENT NO. 8

          LOAN PURCHASE AND SALE AGREEMENT AMENDMENT NO. 8, dated and effective as of January 1, 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 d/b/a PHH Mortgage Services, f/k/a Cendant Mortgage
Corporation, a New Jersey corporation, with offices located at 3000 Leadenhall Road, Mt. Laurel,
New Jersey 08504 (“PHH”).

          WHEREAS, MLCC and PHH are parties to a Loan Purchase and Sale Agreement, dated as of December
15, 2000 (as amended and supplemented as of the date hereof, the “Purchase Agreement”);

          WHEREAS, each of MLCC and PHH desires to amend the Purchase 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 Purchase Agreement. The Purchase Agreement is hereby
amended as follows:

          (a) Schedule 1. Schedule 1 to the Purchase Agreement is hereby amended by deleting
the text of such Schedule in its entirety and replacing it with the Schedule 1 attached to this
Amendment Agreement.

          (b) Exhibit D. Exhibit D to the Purchase Agreement is hereby amended by deleting the
text of such exhibit in its entirety and replacing it with the Exhibit D attached to this Amendment
Agreement.

          (c) Section 1 of this Amendment Agreement shall be effective as of all applicable Mortgage
Loans purchased and sold under the Purchase Agreement on and after January 1, 2006.

          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 Purchase 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 Purchase 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:  	  President 	 
	 
	 	PHH MORTGAGE CORPORATION

 	 
	 	By:  	  /s/ Gregory A. Gentek
 	 
	 	 	  Name:  	  Gregory A. Gentek 	 
	 	 	  Title:  	  Senior Vice President 	 
	 

 

 

EXECUTION COPY

 

LOAN PURCHASE AND SALE AGREEMENT

AMENDMENT NO. 9

By and Between

MERRILL LYNCH CREDIT CORPORATION

AND

PHH MORTGAGE CORPORATION

(f/k/a Cendant Mortgage Corporation)

Dated as of

March 24, 2006

 

 

 

LOAN PURCHASE AND SALE AGREEMENT

AMENDMENT NO. 9

          LOAN PURCHASE AND SALE AGREEMENT AMENDMENT NO. 9, dated and effective 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 d/b/a PHH Mortgage Services, f/k/a Cendant Mortgage
Corporation, a New Jersey corporation, with offices located at 3000 Leaden hall Road, Mt. Laurel,
New Jersey 08504 (“PHH”).

          WHEREAS, MLCC and PHH are parties to a Loan Purchase and Sale Agreement, dated as of December
15, 2000 (as amended and supplemented as of the date hereof, the “Purchase Agreement”);

          WHEREAS, each of MLCC and PHH desires to amend the Purchase 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 Purchase Agreement. The Purchase Agreement is hereby
amended as follows:

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

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

     (b) Section 2(a). Section 2(a) is amended in its entirety by replacing the
text thereof with the following text:

     “Except as otherwise provided herein, PHH agrees to purchase from MLCC, and MLCC agrees
to sell to PHH, all right, title and interest in and to (A) all Non-Alternative Mortgage
Loans that have been originated in accordance with and under the terms of the Origination
Agreement and (B) any Alternative Loans that have been originated in accordance with and
under the terms of the Origination Agreement and with respect to which PHH and MLCC have
agreed in writing are to be purchased and sold hereunder (the mortgage loans referred to in
clauses (A) and (B), collectively, “PHH Loans”), including the right to service such
PHH Loans, collect the servicing fee on such PHH Loans, and collect any income related
thereto (“Servicing Rights”), subject to the respective representations, warranties
and covenants of the Parties under this Purchase Agreement, including the obligation of PHH
to service such PHH Loans in accordance with the Servicing Provisions. Except as provided
in clause (B) above, PHH shall have no obligation to purchase, and MLCC shall have no
obligation to sell, any Alternative Loans hereunder. PHH covenants and agrees that in
exercising and performing all acts

 

 

necessary and incident to the Servicing Rights, it will do so in accordance with the
Servicing Provisions.”

     (c) Section 5. Section 5 is amended in its entirety by replacing the text
thereof with the following text:

     “Except as provided in clause (B) of Section 2(a) hereof, MLCC retains the right, at
its sole option and discretion, to sell to a third party any Alternative Loan. For each
such Alternative Loan, the transfer of servicing rights shall be governed by the terms and
conditions of the Servicing Rights Purchase and Sale Agreement, dated as of January 28,
2000, as amended, by and between PHH and MLCC, and PHH shall service such Alternative Loans
pursuant to the terms of the Portfolio Servicing 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 purchase 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 Purchase 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 	 
	 
	 	PHH MORTGAGE CORPORATION

 	 
	 	By:  	  /s/ Gregory A. Gentek
 	 
	 	 	  Name:  	   	 
	 	 	  Title:EX-10.70

 

Exhibit 10.70

EXECUTION COPY

MERRILL LYNCH CREDIT CORPORATION

Servicer

and

CENDANT MORTGAGE CORPORATION

Subservicer

 

EQUITY
ACCESS® AND OMEGASM LOAN SUBSERVICING AGREEMENT

Dated and effective as of June 6, 2002

 

			
	[***]  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.

 

 

Table of Contents

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	ARTICLE I

	DEFINITIONS

	 
	 	 	 	 	 	 
	Section 1.01.
	 	Incorporation of Recitals; Defined Terms	 	 	1	 
	Section 1.02.
	 	General	 	 	15	 
	 
	 	 	 	 	 	 
	ARTICLE II

	SUBSERVICING OF MORTGAGE LOANS

	 
	 	 	 	 	 	 
	Section 2.01.
	 	Subservicer to Subservice Mortgage Loans	 	 	15	 
	Section 2.02.
	 	Mortgage Loan Documents	 	 	18	 
	Section 2.03.
	 	Legal Proceedings Involving the Mortgage Loans	 	 	18	 
	Section 2.04.
	 	Material Changes	 	 	18	 
	Section 2.05.
	 	Subservicer Not to Resign	 	 	19	 
	Section 2.06.
	 	Clean-Up Call	 	 	20	 
	Section 2.07.
	 	Defaulted Mortgage Loans	 	 	20	 
	Section 2.08.
	 	Title, Management and Disposition of REO Properties	 	 	23	 
	Section 2.09.
	 	Use of EDP	 	 	24	 
	Section 2.10.
	 	Payment of Taxes and Insurance	 	 	24	 
	Section 2.11.
	 	Notice to Mortgagors	 	 	24	 
	Section 2.12.
	 	Notice to Tax Service Provider	 	 	25	 
	Section 2.13.
	 	Notice to Insurance Companies and Payment of Insurance Premiums	 	 	25	 
	Section 2.14.
	 	Tax Contracts	 	 	25	 
	Section 2.15.
	 	[Reserved.]	 	 	26	 
	Section 2.16.
	 	[Reserved.]	 	 	26	 
	Section 2.17.
	 	Mortgage Loan Payment Record	 	 	26	 
	Section 2.18.
	 	[Reserved.]	 	 	26	 
	Section 2.19.
	 	Post-Transfer Assumption Processing	 	 	26	 
	Section 2.20.
	 	Misapplied Payments and NSF	 	 	26	 
	Section 2.21.
	 	Tax Reporting	 	 	26	 
	Section 2.22.
	 	[Reserved.]	 	 	27	 
	Section 2.23.
	 	Flood Insurance Determination Contracts	 	 	27	 
	Section 2.24.
	 	Limited Powers of Attorney and Limited Authorized Signatories	 	 	27	 
	Section 2.25.
	 	Updated Exhibits and Schedules	 	 	27	 
	Section 2.26.
	 	Outsource Vendor Contracts	 	 	27	 
	Section 2.27.
	 	[Reserved.]	 	 	27	 
	Section 2.28.
	 	[Reserved.]	 	 	27	 
	Section 2.29.
	 	[Reserved.]	 	 	27	 
	Section 2.30.
	 	Servicer to Service Additional Collateral	 	 	27	 
	Section 2.31.
	 	[Reserved.]	 	 	27	 
	Section 2.32.
	 	Audit of ARM Loans	 	 	27	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	Section 2.33.
	 	Transfer of Mortgage Loans	 	 	28	 
	Section 2.34.
	 	Mortgage Loan Information	 	 	30	 
	Section 2.35.
	 	[Reserved.]	 	 	31	 
	Section 2.36.
	 	Subservicer Reports	 	 	31	 
	Section 2.37.
	 	Work Policy	 	 	31	 
	Section 2.38.
	 	Use of Hardware and Software	 	 	31	 
	Section 2.39.
	 	Technical Architecture Standards	 	 	32	 
	Section 2.40.
	 	Compliance with Policies	 	 	32	 
	Section 2.41.
	 	Continuation of MLCC Services	 	 	32	 
	 
	 	 	 	 	 	 
	ARTICLE IIA

	SERVICER’S AND SUBSERVICER’S OBLIGATIONS WITH RESPECT TO PROCESSING MORTGAGE LOAN ADVANCES

	 
	 	 	 	 	 	 
	Section 2A.1
	 	Check Transactions	 	 	32	 
	Section 2A.2
	 	Card Transactions	 	 	34	 
	Section 2A.3
	 	Wire Transfers	 	 	35	 
	Section 2A.4
	 	Certified or Cashier’s Checks	 	 	35	 
	Section 2A.5
	 	Customer Service	 	 	36	 
	Section 2A.6
	 	Security Procedures	 	 	36	 
	Section 2A.7
	 	Subservicer to Comply with Servicer’s “Affiliate Transactions 23A/23B” Procedures	 	 	37	 
	Section 2A.8
	 	Notices and Disclosures	 	 	37	 
	Section 2A.9
	 	Monthly Statements	 	 	38	 
	Section 2A.10
	 	Credit Balance Checks	 	 	38	 
	 
	 	 	 	 	 	 
	ARTICLE III

	SERVICER REPRESENTATIONS AND WARRANTIES

	 
	 	 	 	 	 	 
	Section 3.01.
	 	Organization and Good Standing	 	 	38	 
	Section 3.02.
	 	Authority and Capacity; Ordinary Course	 	 	38	 
	Section 3.03.
	 	Effective Agreement	 	 	38	 
	Section 3.04.
	 	No Conflict	 	 	39	 
	Section 3.05.
	 	Approvals and Compliance	 	 	39	 
	Section 3.06.
	 	Servicer Advances	 	 	39	 
	Section 3.07.
	 	Insurance	 	 	39	 
	Section 3.08.
	 	Litigation	 	 	39	 
	Section 3.09.
	 	Financial Condition of Servicer	 	 	39	 
	Section 3.10.
	 	Compliance with Pooling and Servicing Agreements and Private Investor Agreements	 	 	39	 
	 
	 	 	 	 	 	 
	ARTICLE IV

	SUBSERVICER REPRESENTATIONS, WARRANTIES AND COVENANTS

	 
	 	 	 	 	 	 
	Section 4.01.
	 	Due Incorporation and Good Standing	 	 	40	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	Section 4.02.
	 	Authority and Capacity; Ordinary Course	 	 	40	 
	Section 4.03.
	 	Effective Agreement	 	 	40	 
	Section 4.04.
	 	No Conflict	 	 	40	 
	Section 4.05.
	 	Approvals and Compliance	 	 	41	 
	Section 4.06.
	 	Litigation	 	 	41	 
	Section 4.07.
	 	Agency Approval	 	 	41	 
	Section 4.08.
	 	Servicing Compliance	 	 	41	 
	Section 4.09.
	 	No Inquiries	 	 	41	 
	Section 4.10.
	 	Contingency Plan	 	 	41	 
	Section 4.11.
	 	Licenses and Approvals	 	 	41	 
	Section 4.12.
	 	Fidelity and E&O Insurance	 	 	42	 
	Section 4.13.
	 	Sufficiency of Systems and Personnel	 	 	42	 
	Section 4.14.
	 	Compliance with Laws	 	 	42	 
	Section 4.15.
	 	Financial Condition of Subservicer	 	 	42	 
	 
	 	 	 	 	 	 
	ARTICLE IV-A

	MUTUAL REPRESENTATIONS

	 
	 	 	 	 	 	 
	Section 4A.01
	 	Kickbacks	 	 	42	 
	Section 4A.02
	 	Government Officials	 	 	43	 
	Section 4A.03
	 	No Relation	 	 	43	 
	 
	 	 	 	 	 	 
	ARTICLE V
	REMITTANCES AND REPORTING

	 
	 	 	 	 	 	 
	Section 5.01.
	 	Remittances	 	 	43	 
	Section 5.02.
	 	Reports to Servicer	 	 	43	 
	Section 5.03.
	 	Subservicer to Deliver Officer’s Certificates and Participation Reports to Servicer	 	 	43	 
	Section 5.04.
	 	Master Servicer Functions	 	 	44	 
	 
	 	 	 	 	 	 
	ARTICLE VI

	SUBSERVICER PAYMENT PROVISIONS

	 
	 	 	 	 	 	 
	Section 6.01.
	 	Effectiveness of Payment Provisions	 	 	44	 
	Section 6.02.
	 	Compensation for Loan Servicing; Allocation of Special Fees and Charges	 	 	45	 
	Section 6.03.
	 	Reimbursement to Subservicer for Payments Made to Third Parties	 	 	46	 
	Section 6.04.
	 	Payment Procedures	 	 	46	 
	 
	 	 	 	 	 	 
	ARTICLE VII

	SOLICITATION

	 
	 	 	 	 	 	 
	Section 7.01.
	 	Solicitation	 	 	49	 

iii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	ARTICLE VIII

	ASSIGNMENT OF MORTGAGES

	 
	 	 	 	 	 	 
	Section 8.01.
	 	Assignments	 	 	49	 
	 
	 	 	 	 	 	 
	ARTICLE IX

	THIRD PARTY CONSENTS

	 
	 	 	 	 	 	 
	Section 9.01.
	 	Third Party Consents	 	 	49	 
	 
	 	 	 	 	 	 
	ARTICLE X

	CONDITIONS PRECEDENT TO OBLIGATIONS OF SUBSERVICER

	 
	 	 	 	 	 	 
	Section 10.01.
	 	Compliance and Conditions	 	 	50	 
	Section 10.02.
	 	Corporate Resolution	 	 	50	 
	Section 10.03.
	 	No Material Adverse Change	 	 	50	 
	Section 10.04.
	 	Financial Ability to Indemnify	 	 	50	 
	Section 10.05.
	 	Opinion of Counsel for Servicer	 	 	50	 
	Section 10.06.
	 	Correctness of Representations and Warranties	 	 	51	 
	Section 10.07.
	 	Litigation or Administrative Action	 	 	51	 
	Section 10.08.
	 	Third Party Consents	 	 	51	 
	Section 10.09.
	 	Effective Agreements	 	 	51	 
	 
	 	 	 	 	 	 
	ARTICLE XI

	CONDITIONS PRECEDENT TO OBLIGATIONS OF SERVICER

	 
	 	 	 	 	 	 
	Section 11.01.
	 	Compliance with Conditions	 	 	51	 
	Section 11.02.
	 	Corporate Resolution	 	 	51	 
	Section 11.03.
	 	Correctness of Representations and Warranties	 	 	52	 
	Section 11.04.
	 	Third Party Consents	 	 	52	 
	Section 11.05.
	 	Opinion of Counsel for Subservicer	 	 	52	 
	Section 11.06.
	 	No Material Adverse Change	 	 	52	 
	Section 11.07.
	 	Financial Ability to Indemnify	 	 	52	 
	Section 11.08.
	 	Effective Agreements	 	 	53	 
	 
	 	 	 	 	 	 
	ARTICLE XII

	ANNUAL CERTIFICATIONS

	 
	 	 	 	 	 	 
	Section 12.01.
	 	Annual Statement as to Compliance	 	 	53	 
	Section 12.02.
	 	Annual Independent Certified Public Accountants’ Servicing Reports	 	 	53	 
	 
	 	 	 	 	 	 
	ARTICLE XIII

	INDEMNIFICATION

	 
	 	 	 	 	 	 
	Section 13.01.
	 	Indemnification of Subservicer	 	 	54	 

iv

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	Section 13.02.
	 	Repurchase of Mortgage Loans	 	 	54	 
	Section 13.03.
	 	Indemnification of Servicer	 	 	54	 
	Section 13.04.
	 	Notice and Settlement of Claims	 	 	55	 
	 
	 	 	 	 	 	 
	ARTICLE XIV

	DEFAULT AND TERMINATION

	 
	 	 	 	 	 	 
	Section 14.01.
	 	Termination by Servicer; Events of Default	 	 	56	 
	Section 14.02.
	 	Failure of Subservicer to Maintain Service Standards; Termination	 	 	58	 
	Section 14.03.
	 	Waiver of Defaults	 	 	59	 
	Section 14.04.
	 	Term of Agreement; Termination Without Cause	 	 	59	 
	Section 14.05.
	 	Effect of Termination of Agreement	 	 	61	 
	 
	 	 	 	 	 	 
	ARTICLE XV

	SUCCESSOR TO THE SUBSERVICER

	 
	 	 	 	 	 	 
	Section 15.01.
	 	Successor to the Subservicer	 	 	61	 
	 
	 	 	 	 	 	 
	ARTICLE XVI

	ANTI-MONEY LAUNDERING

	 
	 	 	 	 	 	 
	Section 16.01.
	 	Compliance	 	 	62	 
	 
	 	 	 	 	 	 
	ARTICLE XVII

	MISCELLANEOUS

	 
	 	 	 	 	 	 
	Section 17.01.
	 	Supplementary Information	 	 	64	 
	Section 17.02.
	 	Access to Information; Confidentiality	 	 	64	 
	Section 17.03.
	 	No Broker’s Fees	 	 	65	 
	Section 17.04.
	 	Further Assurances	 	 	65	 
	Section 17.05.
	 	Survival	 	 	66	 
	Section 17.06.
	 	Governmental Authorities; Laws and Severability	 	 	66	 
	Section 17.07.
	 	Form of Payment to Be Made	 	 	66	 
	Section 17.08.
	 	Assignability	 	 	66	 
	Section 17.09.
	 	Certain Costs	 	 	67	 
	Section 17.10.
	 	Notices	 	 	67	 
	Section 17.11.
	 	Entire Agreement; Construction	 	 	68	 
	Section 17.12.
	 	Binding Effect	 	 	68	 
	Section 17.13.
	 	Headings; Plurals; Genders	 	 	68	 
	Section 17.14.
	 	Applicable Law	 	 	68	 
	Section 17.15.
	 	Counterparts	 	 	69	 
	Section 17.16.
	 	Waivers	 	 	69	 
	Section 17.17.
	 	Publicity	 	 	69	 
	Section 17.18.
	 	No Third Party Beneficiaries	 	 	69	 
	Section 17.19.
	 	Attorney Fees, Costs, Etc	 	 	69	 

v

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	Section 17.20.
	 	Merger or Consolidation of Servicer and Subservicer	 	 	69	 
	Section 17.21.
	 	Termination Assistance	 	 	70	 
	 
	 	 	 	 	 	 
	EXHIBIT B

	 
	 	 	 	 	 	 
	MLCC EQUITY ACCESS DAILY RECONCILIATION

	 
	 	 	 	 	 	 
	SCHEDULES AND EXHIBITS

	 
	 	 	 	 	 	 
	Exhibit A
	 	List of Pooling and Servicing Agreements	 	 	 	 
	Exhibit B
	 	23A/B Procedures	 	 	 	 
	Exhibit C
	 	Change of Control List	 	 	 	 
	Exhibit D
	 	Mortgage Loan Schedule	 	 	 	 
	Exhibit E
	 	Operations Guide	 	 	 	 
	Exhibit F
	 	Reconciliation Schedule of Subservicer Advances	 	 	 	 
	Exhibit G
	 	BSA Policies and Procedures	 	 	 	 
	Exhibit H-1
	 	Exposure Report	 	 	 	 
	Exhibit H-2
	 	Omega Delinquency Report	 	 	 	 
	Exhibit I
	 	Form of Limited Power of Attorney	 	 	 	 
	Exhibit J
	 	MLCC Equity Access Daily Reconciliation	 	 	 	 
	Exhibit K
	 	Periodic Subservicer Remittance and Accounting Reports	 	 	 	 
	Exhibit L
	 	Private Investor Agreements	 	 	 	 
	Exhibit M
	 	Equity Access Litigation Tracking Report	 	 	 	 
	Exhibit N
	 	Provisional Credit Tracking Report	 	 	 	 
	Exhibit O
	 	Returned Check Tracking Report	 	 	 	 
	Schedule 2.07
	 	Complex Defaulted Mortgage Loans	 	 	 	 
	Schedule 2.26
	 	Outsource Vendors	 	 	 	 
	Schedule 5.03(a)
	 	Form of Officer’s Certificate for Certain Events	 	 	 	 

vi

 

     This EQUITY ACCESS® and OMEGA SM LOAN SUBSERVICING AGREEMENT,
dated and effective as of June 6, 2002 (this “Agreement”), between Merrill Lynch Credit
Corporation, as Servicer (the “Servicer”), and Cendant Mortgage Corporation, as Subservicer
(the “Subservicer”) (each a “Party”, and collectively, the “Parties”).

W
I T N E S S E T H:

     WHEREAS, the Subservicer is engaged in the business of servicing and subservicing residential
mortgage loans;

     WHEREAS, the Servicer and the Subservicer have executed an Origination Assistance Agreement
dated as of December 15, 2000, pursuant to which the Subservicer has agreed to originate on behalf
of the Servicer certain revolving home equity line of credit loans, and the parties hereto desire
the Subservicer to subservice such loans for the Servicer; and

     WHEREAS, the Servicer services certain revolving line of credit loans secured by marketable
securities, and the parties hereto desire the Subservicer to subservice such loans for the
Servicer; and

     WHEREAS, the Servicer services certain securitized and non-securitized, residential first and
second lien equity line of credit loans pursuant to the Pooling and Servicing Agreements and
Private Investor Agreements, and the parties hereto desire the Subservicer to subservice such loans
for the Servicer; and

     WHEREAS, the Servicer and the Subservicer wish to set forth the terms under which the all such
loans are to be subserviced by the Subservicer for the Servicer;

     NOW, THEREFORE, in consideration of the premises and the mutual agreements hereinafter set
forth, the Servicer and the Subservicer 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 meaning specified therefore in this
Article:

     Accommodation Party means Bankers Trust Company, New Jersey, Limited Trust Services,
its successors, or any other FDIC-insured bank mutually agreed between the Servicer and the
Subservicer.

     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 Cendant to the Mortgage Loan.

 

 

     Additional Collateral means, with respect to any Mortgage 100sm Loan,
Omegasm Loan or Parent Power® Mortgage Loan, the marketable securities
subject to a security interest pledged as security for the related loan.

     Additional Collateral Agreement means a Mortgage 100sm Pledge Agreement, a
Merrill Lynch Omegasm Account Agreement or a Parent Powerâ Agreement.

     Additional Collateral Mortgage Loan means each Mortgage Loan that is either a Mortgage
100sm Loan, Omegasm Loan or Parent Powerâ Mortgage Loan as
to which the Additional Collateral is still required to be provided as set forth in the related
Pledge Agreement.

     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 Equity Access® and Omegasm Loan
Subservicing Agreement and all exhibits and schedules hereto, all of which are incorporated herein
by 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 Subservicer’s “Speed Pay” program, (iii) all returned-item charges
(e.g., non-sufficient funds (“NSF”) charges) and (iv) out-of-pocket expenses for
post-default property inspections.

     Applicable Requirements means and includes, as of the time of reference, collectively,
(1) with respect to the Mortgage Loans, all of the following: (a) all contractual obligations of
Servicer (and any Originator and/or Prior Servicer) or Subservicer contained in this Agreement, the
other Transaction Agreements, the Mortgage Loan Documents, the applicable Pooling and Servicing
Agreements, the Private Investor Agreements, the applicable guides or any agreement with any
Insurer, for which obligations Servicer (and any Originator and/or Prior Servicer) or Subservicer
is responsible or at any time was responsible; (b) all applicable federal, state, and local legal
and regulatory requirements (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) binding upon Servicer (and any Originator and/or Prior
Servicer) or Subservicer; (c) all other applicable 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 Subservicer’s obligations, the provisions of the Operations Guide,

2

 

to the extent applicable; (f) the reasonable and customary mortgage servicing practices of prudent
mortgage lending institutions that service mortgage loans of the same type as the Mortgage Loans in
the jurisdiction in which the related Mortgaged Properties are located, if applicable; 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.

     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.

     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 identified therein from the
transferor to the transferee named therein.

     Available Credit means, with respect to any Mortgage Loan, the Credit Limit for such
Mortgage Loan less the Outstanding Principal Balance for such Mortgage Loan less any hold on funds.

     Borrower means the borrower with respect to any Mortgage Loan.

     Borrower Default means, with respect to any Borrower (i) the failure by a Borrower to
make any payment under a Mortgage Loan when due and payable, (ii) the failure by a Borrower to
perform any covenant of any Mortgage Loan Document which failure is not cured within any applicable
cure period, or (iii) the occurrence of any other event or condition which would permit Servicer,
under the Mortgage Loan Documents applicable to such Borrower, to (A) terminate Borrower’s Mortgage
Loan, (B) accelerate repayment of the Mortgage Loan, (C) temporarily or permanently restrict
further Mortgage Loan Advances under a Mortgage Loan, or (D) reduce the Credit Limit with respect
to a Mortgage Loan.

     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.

     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.

3

 

     BSA Policies and Procedures shall have the meaning given in Article XVI
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, or the state in which the
Corporate Trust Office (as such term is defined in the related Pooling and Servicing Agreement) is
located are required or authorized by law or by executive order to be closed, or (iii) a day on
which Servicer or Subservicer is not actually open for business.

     Card means a VISA® card issued by an Affiliate of Servicer at its option,
to a Borrower under a Mortgage Loan pursuant to his or her Mortgage Loan Documents for use in
obtaining Mortgage Loan Advances.

     Cendant means Cendant Mortgage Corporation, d/b/a PHH Mortgage Services, and its
successors in interest.

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

     Certificate means “Certificate,” as such term is defined in the related Pooling and
Servicing Agreement.

     Certificateholder means a “Certificateholder,” as such term is defined in the related
Pooling and Servicing Agreement.

     Certificate Insurer means the “Certificate Insurer,” as such term is defined in the
related Pooling and Servicing Agreement.

     Charge means a Mortgage Loan Advance initiated through the authorized use of a Card.

     Check means any check, draft or other form of payment order drawn on an agent of
Subservicer, or drawn on Servicer at its option, and issued to a Borrower under a Mortgage Loan
pursuant to his or her Mortgage Loan Documents for use in obtaining a Mortgage Loan Advance.

     Code means the Internal Revenue Code of 1986, as amended.

     Company means the “Company,” as such term is defined in the related Pooling and
Servicing Agreement.

     Complex Defaulted Mortgage Loan shall have the meaning given in Section 2.07.

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

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

4

 

     (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.

     Co-op Lease means, with respect to a Co-op Loan, the proprietary lease with respect to
a dwelling unit occupied by the Mortgagor and relating to the stock allocated to such dwelling
unit.

     Co-op Loan means a Mortgage Loan secured by the pledge of the evidence of ownership
allocated to a dwelling unit in a residential cooperative housing corporation and a collateral
assignment of the related Co-op Lease.

     Credit Limit means, with respect to any Mortgage Loan, the maximum amount of credit
available to a Borrower in the form of Mortgage Loan Advances under his or her Mortgage Loan
Documents.

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

     Direct Competitor shall mean any Person listed on Exhibit C hereto.

     Distribution Certificate has the meaning set forth in Section 5.01(a).

     Distribution Date means “Distribution Date,” or the “Remittance Date,” as such terms
are defined in the related Pooling and Servicing Agreement.

     EDP means the MLCC computer tracking system used by MLCC as of January 1, 2001 to
service Equity Loans, which computer tracking system is licensed to Subservicer pursuant to the
Licensing Agreement, or such other computer tracking system that Subservicer may utilize from time
to time to subservice the Equity Loans, provided, that such other computer tracking system
enables Subservicer to perform its obligations under this Agreement, including its obligation to
produce the reports and provide the information required to be provided to the Servicer hereunder.

     EDP Participation Report means the EDP system report that identifies investor
participation balances.

     Equity Loan means, as applicable: (a) home equity line of credit loans known as
“Equity Access® Loans” secured by liens on real property in various states, or as such
product is defined in the applicable Private Investor Agreement or Pooling and Servicing Agreement,
or (b) Omegasm Loans. This definition is subject to the terms of Section
2.01(i).

5

 

     Event of Default shall have the meaning given in Section 14.01.

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

     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.

     FHA means the Federal Housing Administration or any successor thereto.

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

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

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

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

     FRB means the Federal Reserve Bank of New York or San Francisco, as the case may be.

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

     HUD means the Department of Housing and Urban Development or any successor thereto.

     Indemnified Party shall have the meaning given in Section 13.04(b) hereof.

     Indemnifying Party shall have the meaning given in Section 13.04(b) hereof.

     Independent Appraisal means an appraisal by an appraiser mutually agreed to by
Servicer and Subservicer or, if they cannot so mutually agree within 10 days of request by either
such party, by two widely recognized independent appraisers, one of which appraisers shall be
chosen by Servicer and one by Subservicer, or, if such two appraisers cannot agree as to an
appraisal, they shall jointly select a third widely recognized independent appraiser;
provided, however, that if either party shall fail to appoint an appraiser within
15 days after a written request to do so by the other party or, if such two appraisers cannot agree
and fail to appoint a third appraiser within 20 days after the date of the appointment of the
second of such appraisers, then either party may apply to the American Arbitration Association to
make such appointment. In the event such third independent appraiser shall be chosen to provide
such appraisal, unless

6

 

the parties agree otherwise, such appraisal shall be required to be made
within 20 days of such appointment. If three appraisers shall be appointed, the determination of
the appraiser that shall differ most from the second highest determination of all three appraisers
shall be excluded, the remaining two determinations shall be averaged and such average shall
constitute the determination of the appraisers; provided, however, that, if the
determination of two appraisers shall differ equally from the second highest determination of all
three appraisers, all three determinations shall be averaged and such average shall constitute the
determination of the appraisers. Any appraiser appointed pursuant to the foregoing procedure shall
be instructed to determine the amount within 20 days after his appointment.

     Insurance Proceeds means 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 Subservicer is required to follow in
subservicing 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.

     Interest Advance means those advances of interest required by the related Pooling and
Servicing Agreement or Private Investor Agreement.

     IRS means the Internal Revenue Service or any successor thereto.

     Issuer means the issuer of the Checks and Cards, as designated by Servicer.

     Knowledge means that whenever any representation, warranty or other statement
contained in this Agreement is qualified by reference to “Servicer’s knowledge” or Subservicer’s
knowledge” or “to the best of Servicer’s knowledge” or “to the best of Subservicer’s knowledge,”
that qualified reference shall be deemed to include knowledge of facts or conditions of which
Servicer or Subservicer either is actually aware or should have been aware under the circumstances
in the discharging of Servicer’s or Subservicer’s servicing duties. All matters of public record
that, at the time of origination of any Mortgage Loan originated by Servicer or Subservicer,
appeared in the related title insurance policy/commitment shall be deemed to be
known by Servicer or Subservicer, as the case may be, and all matters contained or disclosed
in any Mortgage Loan Documents shall be deemed to be known by Servicer or Subservicer.

     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).

7

 

     Licensing Agreement means that certain License and Services Agreement, dated as of
December 15, 2000, between Servicer and Subservicer, as the same may be amended from time to time
in accordance with the terms thereof.

     Liquidation Proceeds means amounts, other than Insurance Proceeds and Condemnation
Proceeds, received by the Subservicer or Servicer in connection with the liquidation of a Defaulted
Mortgage Loan through foreclosure, sale or otherwise (including, but not limited to, amounts
received by the Subservicer from MLCC with respect to 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 as may from time to time be designated by Servicer, which information is, as
of the date hereof, being generated by the EDP.

     Loan Purchase and Sale Agreement means that certain Loan Purchase and Sale Agreement,
dated as of December 15, 2000, between Servicer and Subservicer, as the same may be amended from
time to time in accordance with the terms thereof.

     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 aggregate outstanding principal
balance of such Mortgage Loan and the outstanding principal balance of any first lien residential
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
of 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.

     Merrill Lynch Omegasm Account Agreement means, with respect to each
Omegasm Loan, the Merrill Lynch Omegasm Account Agreement between the related
Mortgagor and
MLCC pursuant to which such Mortgagor granted a security interest in various investment
securities.

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

8

 

     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 Portfolio Servicing Agreement means the Portfolio Servicing Agreement dated as of
January 28, 2000, between the Servicer, as owner, and the Subservicer, as the company, as the same
may be amended from time to time in accordance with the terms thereof.

     MLCC Services shall mean collectively, the Origination Services and Subservicer’s
obligations under the Servicing Rights.

     Monthly Payment means the monthly payment due on a Mortgage Loan which is payable by a
Mortgagor from time to time under the related Mortgage Note.

     Mortgage means the mortgage, deed of trust or other instrument creating a first or
second lien interest in an estate in fee simple in real property (or, in the case of a Co-op Loan,
the applicable security agreement and financing statements), or a leasehold that extends at least
five years beyond the maturity of the related Mortgage Loan, securing a Mortgage Note.

     Mortgage 100sm Loan means a Mortgage Loan having at the time of origination
a Loan-to-Value Ratio generally in excess of MLCC’s maximum acceptable Loan-to-Value Ratio for such
Mortgage Loan, which Mortgage Loan is secured by Additional Collateral having a market value, as of
the date of such loan’s origination, 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 various investment securities.

     Mortgage Loan means an Equity Loan, as identified on the Mortgage Loan Schedule.

     Mortgage Loan Advance means an advance of funds to or on behalf of a Borrower pursuant
to a Mortgage Loan, whether by Check, Card, draft, wire transfer, certified or cashier’s check or
otherwise.

     Mortgage Loan Documents means, with respect to any Mortgage Loan, the file containing
any and all documents, instruments or agreements evidencing, securing or relating to the loan and
related Mortgage, including notes, credit agreements, Mortgages, guarantees, card
agreements, check agreements, wire transfer agreements, and title and casualty insurance
policies.

     Mortgage Loan Schedule means the schedule of Mortgage Loans subserviced pursuant to
this Agreement, which has been delivered to the Subservicer, containing the information set forth
in Exhibit D attached hereto.

9

 

     Mortgage Note means the note or other evidence of the indebtedness of a Mortgagor
secured by a Mortgage.

     Mortgage Rate means the per annum rate of interest for the applicable period borne by
the Mortgage Loan, as determined pursuant to 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, 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
private, non-profit, residential cooperative housing corporation together with the shares of stock
issued by said corporation, which are represented by a stock certificate.

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

     Nonrecoverable Advance means a “Nonrecoverable Advance,” as such term is defined in
the related Pooling and Servicing Agreement.

     OAA Equity Loan means an Equity Loan that has been originated by the Subservicer on
behalf of the Servicer pursuant to the Origination Agreement.

     Officer’s Certificate means a certificate signed by a Vice President or more senior
officer of the Subservicer or the Servicer.

     Omegasm Loan means a revolving line of credit loan secured by marketable
securities.

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

     Original Additional Collateral Requirement means “Original Additional Collateral
Requirement,” as such term is defined in the related Pooling and Servicing Agreement.

     Origination Agreement means the Origination Assistance Agreement, dated as of December
15, 2000, between Servicer and Subservicer, as the same may be amended from time to time in
accordance with the terms thereof.

     Origination Services shall mean the loan origination services to be performed by
Subservicer for and on behalf of Servicer as detailed in the Origination Agreement.

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

10

 

     Outsource Vendor means any vendor, whether or not an Affiliate, retained by Servicer
to perform any aspects of servicing the Mortgage Loans and identified in Schedule 2.26.

     Outstanding Principal Balance means the sum of all principal amounts outstanding with
respect to a Mortgage Loan as of a particular time, without reduction for the amount of any payment
received in respect of principal that has not been cleared and credited.

     Parent Power® Agreement means 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 an agreement between
MLCC and a guarantor on behalf of a Mortgagor under a 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 Loan to fund such
guaranty, and has secured such Equity Loan with a Mortgage secured by a lien on residential real
estate of the guarantor.

     Parent Power® Guaranty and Security Agreement for Securities Account means
an agreement between MLCC and a guarantor on behalf of a Mortgagor under a 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.

     Participation means the participating investor ownership or security interest in the
Mortgage Loan.

     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 Servicer)
of some or all of the Mortgage Loans to a Subsequent Purchaser that is a trust or another 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 Subservicer or the Servicer will act as the master
servicer of the Mortgage Loans.

     Permission Agreement means the Trademark Use Agreement, dated as of December 15, 2000,
between Servicer and Subservicer.

     Person means an individual, association, joint stock company, 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.

11

 

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

     Pledge Agreement means any Mortgage 100sm Pledge Agreement or a Merrill
Lynch Omegasm Account Agreement related to an Additional Collateral Mortgage Loan.

     Pooling and Servicing Agreement means a pooling and servicing agreement, designated as
such, to which the Servicer, the related Trustee, and the related Company are parties. The Pooling
and Servicing Agreements subject to this Agreement are identified on Exhibit A attached
hereto, as may, from time to time, be amended.

     Prior Servicer means any Person that was a servicer or subservicer of any Mortgage
Loan before Servicer became the Servicer of such Mortgage Loan under a Pooling and Servicing
Agreement.

     Private Investor means, (i) MLCC or (ii) with respect any Investor Agreement, the
party for which Servicer is servicing and administering the related mortgage loans pursuant to such
Investor Agreement.

     Private Investor Agreement means the agreement or agreements (including all exhibits
and schedules thereto and all amendments and supplements thereof) between Servicer and the
applicable Private Investor relating to Mortgage Loans owned by such Private Investor and the
servicing thereof by Servicer. With respect to Mortgage Loans for which MLCC is the Private
Investor, “Investor Agreement” means this Agreement. The Private Investor Agreements subject to
this Agreement are identified on Exhibit L attached hereto, as may, from time to time, be
amended.

     Provisional Credit means any non-VISA® credit that is given to an Equity
Loan to manage fraud related activity or to adjust account activity for Subservicer research
purposes pursuant to conditions in Operations Guide.

     Purchase and Sale Agreement means the Servicing Rights Purchase and Sale Agreement
dated as of December 15, 2000, between Servicer and Subservicer, as the same may be amended from
time to time in accordance with the terms thereof.

     Rating Agency means, (i) with respect to Mortgage Loans which are, as of the date
hereof, subject to a Pooling and Servicing Agreement, a “Rating Agency,” as such term is defined in
the related Pooling and Servicing Agreement, and (ii) with respect to Mortgage Loans
which are not subject to a Pooling and Servicing Agreement as of the date hereof, 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 Servicer or any of its Affiliates may seek a rating with respect to such Pass-Through Transfer.

12

 

     REMIC means a “real estate mortgage investment conduit,” as such term is defined in
the Code.

     Returned Check has the meaning set forth in Section 2A.1.

     REO Disposition means the final sale of an REO Property.

     REO Property means any Mortgaged Property owned in fee simple (or if a cooperative,
the allocated shares of which are owned) by the applicable Trustee 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.

     Revolving Trust means those existing and future securitizations of Equity
Access® Loan account balances, including, but not limited to, the securitizations set
forth on Exhibit A.

     Servicer means MLCC. 

     Servicer Advance means the outstanding moneys that have been advanced by Servicer from
its funds in connection with its servicing of the Mortgage Loans (including, but not limited to,
interest, taxes, ground rents, assessments, insurance premiums, foreclosure and
bankruptcy fees and
expenses, and other expenses) which have been made in accordance with the applicable Private
Investor Agreement or applicable Pooling and Servicing Agreement, and for which Servicer has a
right of reimbursement from Mortgagors, Insurers, the applicable Trust Fund, or otherwise.

     Servicing Fee means the servicing fee payable to the Servicer as set forth in the
applicable Pooling and Servicing Agreement.

     Software means the proprietary computer software programs, and related Software
Documentation, listed on Exhibits A, B and C of the Licensing Agreement,
excluding any Third Party Software that may be embedded therein.

     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 Servicer or any Third Party, in any form or medium whatsoever.

     Subservicer means Cendant.

     Subservicer Advance means the outstanding moneys that have been advanced by the
Subservicer from its funds in connection with its subservicing of a Mortgage Loan (including, but
not limited to, taxes, ground rents, assessments, insurance premiums, foreclosure and

13

 

bankruptcy
fees and expenses, and other expenses) (i) in accordance with the applicable Private Investor
Agreement or applicable Pooling and Servicing Agreement, (ii) that are recoverable through
Liquidation Proceeds, Insurance Proceeds and/or Condemnation Proceeds, or that are made at the
direction of the Servicer and (iii) for which the Subservicer has a right of reimbursement.

     Subservicer 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 or Subservicer (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
Corporation or Subservicer; 

     (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 Corporation or Subservicer; or

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

     Subservicer Competitor Change of Control means a Subservicer Change of Control to a
Direct Competitor.

     Subservicing Fee means for each Mortgage Loan, a monthly fee payable by MLCC to
Subservicer as compensation for Subservicer’s subservicing of Mortgage Loans pursuant to this
Agreement, as more particularly set forth in Section 6.02(a).

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

     Third Party Consent means the written consent or approval of any third party whose
consent or approval may be required to effect a transfer of the subservicing of the Mortgage Loans
subject to a Pooling and Servicing Agreement.

     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 Servicer.

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     Transaction Agreements means this Agreement, the Purchase and Sale Agreement, the
Permission Agreement, the Origination Agreement, the Loan Purchase and Sale Agreement and the MLCC
Portfolio Servicing Agreement.

     Transfer Date means, with respect to any Mortgage Loan, the date on which the
Subservicer begins physically subservicing the Mortgage Loan, or such other date as to which the
parties may agree.

     Transferred Equity Loan means an Equity Loan which is subject to a Pooling and
Servicing Agreement or a Private Investor Agreement.

     TRETS means Transamerica Real Estate Tax Service.

     Trust Fund means a “Trust Fund,” as such term is defined in the related Pooling and
Servicing Agreement.

     Trustee means the “Trustee,” as such term is defined in the related Pooling and
Servicing Agreement.

     VISA® means VISA U.S.A. Inc.

     VISA® Suspense Account means the active account serviced on the EDP system
for managing VISA® disputes and chargebacks. Postings to this account are to offset
VISA® credits that are given to Equity Loans to manage fraud related activity or to
replenish the Borrower’s Equity Loan for Subservicer research purposes pursuant to conditions in
the Operations Guide and VISA® chargeback procedures.

     Whole Loan Transfer means the sale or other transfer to a Subsequent Purchaser of some
or all of the Mortgage Loans by the Servicer in a whole loan format for which the Subservicer 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
Servicer and the Subservicer.

     Section 1.02. General. The terms defined herein include the plural as well as the
singular and the singular as well as the plural.

ARTICLE II

SUBSERVICING OF MORTGAGE LOANS

     Section 2.01. Subservicer to Subservice Mortgage Loans. (a) Commencing on the applicable Transfer Date, the Subservicer shall subservice each
Mortgage Loan in accordance with all Applicable Requirements and the terms and conditions of (i)
the related Mortgage Loan Documents, Private Investor Agreements and the related Pooling and
Servicing Agreement, (ii) to the extent not inconsistent with the foregoing, this Agreement and the
Permission Agreement, (iii) to the extent not inconsistent with the foregoing, the Operations Guide
(to the extent applicable), and (iv) to the extent not inconsistent with the foregoing, the FNMA
Servicing Guide as it relates to second lien residential

15

 

mortgage loans. The Operations Guide may
be amended from time to time by Servicer with Subservicer’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. In all
circumstances where a Private Investor Agreement or Pooling and Servicing Agreement permits a
servicing activity to be performed in a manner consistent with such practices or procedures as the
Servicer uses with respect to comparable loans held in its own portfolio, or in the exercise of the
Servicer’s discretion, then the Subservicer shall perform such servicing activity (1) consistent
with the requirements of the Operations Guide, or (2) in the event the Operations Guide is silent
as to such activity, consistent with the FNMA Servicing Guide (as it relates to second lien
residential mortgage loans). In the event the FNMA Servicing Guide is silent as to such activity,
the Subservicer shall notify the Servicer and follow such directions as the Servicer may reasonably
provide.

     (b) The Subservicer shall be responsible for maintaining, and shall maintain, a complete set
of records for the Mortgage Loans. The Subservicer’s books and records shall reflect the ownership
of the Mortgage Loans in the name of the applicable Trustee or Private Investor in the case of all
Transferred Equity Loans and in the name of MLCC in the case of all OAA Equity Loans and
Omegasm Loans, or as MLCC may otherwise direct in order to reflect any change in the
ownership of such Mortgage Loans. All documents, records and correspondence, regardless of the
media in which they are stored or maintained shall remain the property of the Servicer, and the
Subservicer shall hold the same in a fiduciary capacity for the Servicer.

     (c) In the event the Subservicer fails to subservice any ARM Loan consistent with the
subservicing standards set forth in Section 2.01(a) above, the Subservicer shall notify the
Servicer within [* * *] of obtaining Knowledge of such failure and shall take all appropriate
actions required to correct any such servicing deficiencies so that such loans are thereafter
subserviced in compliance with the terms and provisions of this Agreement. Subservicer 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 Servicer or any
Prior Servicer to service an ARM Loan in accordance with the Applicable Requirements (other than
the Subservicer’s continuation of such previous servicing practices after the Subservicer knew or
should have known that such previous servicing practices violated the Applicable Requirements). In
addition to the foregoing, Subservicer shall take such additional corrective

 

			
	[***] 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

 

action as may be directed by Servicer, the cost of which shall be the sole responsibility of
Servicer.

     (d) This Agreement is between the Servicer and Subservicer and no Private Investor, Trustee,
Certificateholder, Certificate Insurer or Rating Agency shall be deemed a party hereto.
Subservicer shall have no claims, rights, obligations, duties or liabilities to any Trustee,
Certificateholder, Certificate Insurer or Rating Agency under this Agreement, other than to a
Trustee, pursuant to Section 14.04(c) of this Agreement.

     (e) The Subservicer shall maintain an EDP containing all information and programming necessary
to subservice the Mortgage Loans in accordance with Section 2.01(a) above. The Mortgage
Loans shall be grouped on the Subservicer’s EDP to reflect the ownership of the Mortgage Loans in
the name of the applicable Trustee or Private Investor in the case of all Transferred Equity Loans
and in the name of MLCC in the case of all OAA Equity Loans and Omegasm Loans, or as
MLCC may otherwise direct in order to reflect any change in the ownership of such Mortgage Loans.

     (f) The Subservicer may not waive, modify or vary any term of a Mortgage Note or Mortgage
without the Servicer’s prior written consent.

     (g) Notwithstanding anything herein to the contrary, Subservicer shall follow any reasonable
directions given by the Servicer with respect to the subservicing of the Mortgage Loans.

     (h) With the exception of Ancillary Fees and any other charges expressly permitted by the
Mortgage Note, Mortgage, and applicable law, the Subservicer covenants and agrees that it will not,
without the prior written consent of the Servicer, charge or collect from any Mortgagor, or trustee
under a deed of trust, any fees of any kind including, but not limited to, charges for amounts
expended by the Subservicer, regardless of the characterization of the fee or charge.

     (i) Servicer shall have the right, upon at least 90 days prior written notice to Subservicer,
to terminate Subservicer’s obligation to subservice Omegasm Loans under this Agreement.
Such notice shall indicate the date on which Subservicer’s obligation to subservice
Omegasm Loans shall terminate. If Servicer elects to terminate Subservicer’s obligation
to service Omegasm Loans, then Servicer shall pay to Subservicer on such termination
date an early termination fee of [* * *], which amount shall also compensate Subservicer for all of
Subservicer’s out-of-pocket costs and expenses associated with transferring Subservicer’s
subservicing obligations for Omegasm Loans to another subservicer. Such early
termination fee shall be in lieu of any other amount payable under this Agreement by Servicer
(including, without limitation, any amounts payable under Section 14.04). Upon and after
such date, the term “Equity Loan” as defined in Section 1.01 shall have the following
meaning:

Equity Loan means home equity line of credit loans known as “Equity
Access® Loans” secured by liens on real property in various states, or as
such product is defined in the applicable Private Investor Agreement or Pooling and
Servicing 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.

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     Section 2.02. Mortgage Loan Documents. Subservicer shall, at its own cost and
expense, act as a document custodian with respect to each Mortgage Loan. Subservicer shall, upon
receipt of a written request from Servicer, provide to Servicer, within seven (7) Business Days,
copies of any Mortgage Loan Documents requested by Servicer, unless such Mortgage Loan Documents
relate to a Mortgage Loan closed prior to January 1, 2001 and such Mortgage Loan is listed on
Schedule 2.02. If Subservicer delivers an original Mortgage Loan Document to a third party, it
shall maintain in its servicing records for presentation to the Servicer upon request, the name,
address, and telephone number of the party to whom the original document was delivered and the
purpose of such delivery. Throughout the term of this Agreement, Subservicer shall make available
during normal business hours at least one (1) managerial level Cendant employee to address and
respond to all of MLCC’s requests for any Mortgage Loan Documents, including, without limitation,
those held by Subservicer or held by a document custodian. Subservicer shall provide to Servicer a
list of at least five (5) responsible employees, in addition to the one (1) managerial level
employee, together with their individual telephone and facsimile numbers (the “Contact
List”), whom Servicer may contact to request Mortgage Loan Documents. As stated above, at
least one (1) employee on the Contact List shall always be available during normal business hours.
Subservicer may from time to time notify Servicer of changes to the Contact List and shall be
deemed to have satisfied its obligation so to make a managerial level employee available if at
least one (1) employee (but not necessarily the same employee) on Contact List is available during
normal business hours.

     Section 2.03. Legal Proceedings Involving the Mortgage Loans. The Subservicer shall
commence all collection, foreclosure, bankruptcy and eviction proceedings in the name of MLCC for
all Mortgage Loans subject to a Pooling and Servicing Agreement, and in the name of the Private
Investor for all Mortgage Loans owned by a Private Investor (unless otherwise directed by the
Private Investor) in a manner as outlined in the Operations Guide. In the event the Subservicer
receives notice of the existence of any legal proceeding relating to a Mortgage Loan commenced
against the Servicer, the Subservicer shall promptly notify the Servicer and follow such directions
as the Servicer may reasonably provide. The Servicer shall have the right to control any of the
foregoing matters referred to in this Section 2.03 at the Servicer’s request. The
Subservicer shall provide the Servicer, by the 15th day of each month (or next Business
Day immediately thereafter) for the preceding month, the report set forth in Exhibit M,
titled “The Equity Access Litigation Tracking Report” and with such report, any such additional
written reports as the Servicer shall reasonably request regarding such legal proceedings,
provided that upon a request for an additional written report, the parties agree to
negotiate the responsibility for any incremental costs and expenses associated with the provision
of such additional report. Changes to the form of the Equity Access Litigation Tracking Report
shall only be made with the mutual consent of Servicer and Subservicer.

     Section 2.04. Material Changes. The Subservicer shall promptly report to the Servicer any change in its business
operations, financial condition, properties or assets that could have a material adverse effect on
the Subservicer’s ability to perform its obligations hereunder. Events for which the Servicer must
receive notice include, but are not limited to, the following:

18

 

     (a) any merger or consolidation, any changes in the Subservicer’s ownership whether directly
or indirectly (including any change in ownership of the Subservicer’s parent), or any significant
reorganization;

     (b) any material changes in management ordered or required by a regulatory authority
supervising or licensing the Subservicer;

     (c) the entry against the Subservicer 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 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 Subservicer 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 Subservicer’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 Subservicer is or may be
required to pay a claim or claims that may have a material adverse effect on the Subservicer’s
financial condition;

     (g) any admission by the Subservicer to the commission of, or any finding that the Subservicer
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 Subservicer; and

     (i) the Subservicer’s entry into any agreement with a third party that would result in any
material change in the financial status or ownership of the Subservicer or any merger of the
Subservicer.

     Section 2.05. Subservicer Not to Resign. The Subservicer shall not resign from the obligations and duties hereby imposed on it
except by mutual consent of the Subservicer and the Servicer. No such resignation shall become
effective until the Servicer or a new Subservicer shall have assumed the Subservicer’s
responsibilities and obligations hereunder in the manner provided in Section 15.01.

19

 

     Section 2.06. Clean-Up Call. Under each Pooling and Servicing Agreement, Servicer has
the option of buying the Outstanding Balances from the applicable Trust Fund at a stated purchase
price at such time as the principal balance in a given pool reaches a specified percentage of the
original balance. Notwithstanding this Agreement, Servicer retains the option to repurchase such
Outstanding Balances from the related Trust Fund, and Servicer shall provide Subservicer written
notice of such repurchase. At such time as any Outstanding Balances are repurchased, the related
Mortgage Loans shall be subserviced by the Subservicer in accordance with this Agreement.

     Section 2.07. Defaulted Mortgage Loans. (a) The Defaulted Mortgage Loans listed on
Schedule 2.07 attached hereto are either in litigation or are REO Properties (together with
the Defaulted Mortgage Loans described in the first sentence of Section 2.07(b),
“Complex Defaulted Mortgage Loans”). Following the transfer of the subservicing
responsibilities for the Complex Defaulted Mortgage Loans to the Subservicer, the Servicer shall
continue to administer any litigation or sale of REO Properties in connection therewith in
accordance with the applicable Pooling and Servicing Agreement. Servicer shall not be entitled to
receive any compensation for such services. Servicer shall report the status of the Complex
Defaulted Mortgage Loans to the Subservicer on a monthly basis. In the event a Complex Defaulted
Mortgage Loan in litigation is reinstated or the Servicer receives Liquidation Proceeds, Servicer
shall remit such funds to the Subservicer and shall forward the related mortgage file and all other
relevant documentation to Subservicer. In connection therewith, Servicer shall comply with all
reasonable transfer requests of Subservicer. Upon receipt of reinstatement funds, the Subservicer
shall be fully responsible for the subservicing of such Mortgage Loan. Other than the specific
default servicing activities undertaken by Servicer in this Section 2.07, the Subservicer
shall be responsible for complying with the applicable Pooling and Servicing Agreement, including
but not limited to reporting and remittance of any funds received from Servicer in connection with
any Complex Defaulted Mortgage Loan.

     (b) The Subservicer agrees to report monthly to the Servicer all Defaulted Mortgage Loans and
all REO Properties subserviced pursuant to this Agreement. Such reporting shall consist of
Subservicer’s monthly submission to Servicer of two reports. The first report shall be provided in
the form set forth on Exhibit H-1, titled “Exposure Report.” The second report shall be
provided in the form set forth on Exhibit H-2, titled “Omega Delinquency Report.”
Subservicer shall provide all Exposure Reports and Omega Delinquency Reports to Servicer by the
15th day of each month (or next Business Day immediately thereafter) for the preceding
month in order to ensure any Servicer related adjustments within two Business Days of notification
by the Servicer. In order to assist Subservicer in its preparation of the Exposure Report,
Servicer shall make available to Subservicer the MLR 253 report by the 10th day of each
month, or such earlier date as reasonably practicable. Changes to the form of the Exposure
Report or the Omega Delinquency Report shall only be made with the mutual consent of Servicer and
Subservicer.

     (c) The Servicer 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 Subservicer (the term “Complex Defaulted Mortgage Loan” shall also include any such

20

 

Defaulted Mortgage Loan or REO Property). As to any REO Property, the Subservicer shall provide
the Servicer with written notification of the related foreclosure sale within one (1) Business Day
after the date of such foreclosure sale. The Servicer shall notify the Subservicer within seven
(7) Business Days after receiving such notification from the Subservicer in the event the Servicer
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 Servicer
may provide written notice to the Subservicer of the Servicer’s election to administer default
servicing activities in connection with an REO Property after the foreclosure sale. If the
Servicer elects to assume such activities as set forth above, the Servicer shall not be obligated
for any fees or commissions due any agent previously retained by the Subservicer or its agent. In
accordance with such notice from the Servicer, the Subservicer shall forward to the Servicer all
relevant documentation relating to such Complex Defaulted Mortgage Loan and shall comply with all
reasonable transfer requests of Servicer. Upon the transfer from the Subservicer to the Servicer
of the relevant files and documentation, the Servicer shall commence default servicing activities
in accordance with the related Pooling and Servicing Agreement or the related Private Investor
Agreement and shall report the status of such Complex Defaulted Mortgage Loans to the Subservicer
on a monthly basis. In the event a Complex Defaulted Mortgage Loan is reinstated and reinstatement
funds are received by the Servicer, (i) the Servicer shall remit such funds to the Subservicer in
accordance with Subservicer’s wire instructions or other payment instructions, (ii) provided that
the Servicer has complied with the requirements of subpart (i) hereof, the Subservicer shall post
such funds to the account no later than the next Business Day, (iii) the Subservicer shall again be
fully responsible for the subservicing for such Mortgage Loan, (iv) the Servicer shall forward the
related mortgage file and all other relevant documentation to Subservicer, and (v) Servicer shall
comply with all reasonable transfer requests of Subservicer. In the event a Complex Defaulted
Mortgage Loan reaches final disposition and Liquidation Proceeds are received by the Servicer, (i)
the Servicer shall deposit such funds, (ii) the Servicer shall notify the Subservicer of receipt of
such Liquidation Proceeds, (iii) the Subservicer shall post non-monetary transactions to bring the
account balance to zero no later than the next Business Day, and (iv) the Servicer shall be
responsible for preparation of the Officer Certificate and shall retain the related mortgage file
and all other relevant documentation.

     (d) In connection with any expenses incurred by Servicer for any Complex Defaulted Mortgage
Loan under this Section 2.07, upon receipt of any related invoices, Servicer shall forward
such invoices to Subservicer for payment in the ordinary course of business. Subservicer shall
ensure payment of such invoices within [* * *] and shall be responsible for late fees incurred with
respect to invoices received by Subservicer [* * *] prior to the due date thereof.

     (e) Subservicer Advances will be funded by Subservicer. All Subservicer Advances shall be
approved by Servicer as defined in the Operations Guide. Servicer shall reimburse Subservicer for
any Subservicer Advances on a monthly basis. Subservicer shall provide a reconciliation
schedule of Subservicer Advances in the form of Exhibit F, in both hard copy and electronic
format, to the Servicer by the fifth Business Day of each month. Servicer shall have three (3)
Business Days to review the reconciliation and either approve it or advise Subservicer of errors.
Servicer and Subservicer shall cooperate and exert reasonable efforts to correct any errors.
Servicer and

21

 

Subservicer shall remit funds to each other, as applicable, within one (1) Business
Day of either the approval of the reconciliation or the correction of any errors detected

 

			
	[***] 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.

22

 

by the appropriate party. In any event, a mutually agreed upon amount must be remitted to the
appropriate party no later than the 20th day of the month (or next Business Day
immediately thereafter).

     Section 2.08. Title, Management and Disposition of REO Properties. (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 applicable Private Investor (unless otherwise
directed by the Private Investor), or in the name of MLCC if the Mortgage Loan is subject to a
Pooling and Servicing Agreement. The Servicer shall not cause title to be acquired to any
Mortgaged Property, or proceed with the management of any REO Property, for which the Subservicer
has Knowledge that such Mortgaged Property or REO Property is affected by hazardous waste, but
shall promptly notify the Servicer of such condition, and thereafter follow such reasonable
directions as the Servicer may provide. The Subservicer shall either itself, or through an agent
approved by the Servicer (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
Servicer’s direction.

     (b) The income received from the management of any REO Property shall be applied as a
reduction in any existing Subservicing Advance for the related REO property or as a credit balance
to the Subservicing Advance for the related property within one (1) Business Day of receipt.

     (c) If the Subservicer elects to dispose of an REO Property without utilizing the services of
an agent, the Subservicer shall notify the Servicer 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 Subservicer
at such price, and upon such terms and conditions, as the Servicer shall approve in writing.

     (d) If the Subservicer utilizes the services of an approved agent to dispose of an REO
Property, the Subservicer shall provide the Servicer 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 seven (7) Business Days after receipt
of any such marketing plan, the Servicer shall review the plan and notify the Subservicer in
writing as to whether the terms and conditions thereof are acceptable to the Servicer.
Notwithstanding the foregoing, the Servicer’s failure to provide such written notification to the
Subservicer within such seven (7) 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 Servicer, the REO Disposition shall be carried out by the
Subservicer in accordance with the terms thereof. If the Subservicer 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 Subservicer shall provide the Servicer with written
notification of the terms and conditions of the offer. Within seven (7) Business Days after
receiving the terms and conditions of such offer, the Servicer shall review the offer and

23

 

notify the Subservicer in writing as to whether such terms and conditions are acceptable to
the Servicer. Notwithstanding the foregoing, the Servicer’s failure to provide such written
notification to the Subservicer within such seven (7) Business Day period shall not be deemed
acceptance of the offer.

     (e) The Subservicer, upon an REO Disposition, shall be entitled to reimbursement for any
related unreimbursed Subservicer Advances from proceeds received in connection with such REO
Disposition. If the proceeds from an REO Disposition are insufficient to reimburse the Subservicer
for any related unreimbursed Subservicer Advances, the Subservicer shall be entitled to
reimbursement from the Servicer by submission of an Officer Certificate as described in the
Operations Guide. All proceeds from an REO Disposition, net of any reimbursement to the
Subservicer as provided above, shall be remitted to the Servicer with the related Officer
Certificate as described in the Operations Guide.

     Section 2.09. Use of EDP. Throughout the term of this Agreement and except as
otherwise provided in the Asset Purchase Agreement, dated as of December 15, 2000, between Servicer
and Subservicer, Subservicer shall pay all costs and expenses associated with its use of, and
access to, the EDP system commonly referred to as “Nabanco”. Such costs and expenses shall
include, but not be limited to, the cost and expenses associated with the maintenance, use and
service of such system and any third-party user or license fees. Approval of Servicer, which may
be withheld at Servicer’s sole discretion, must be obtained by Subservicer prior to the development
of a new EDP and before the transfer of any Equity Loan to the new EDP. If Servicer approves such
development or transfer, the development and transfer shall be on such terms as mutually agreed
upon by the parties.

     Section 2.10. Payment of Taxes and Insurance. (a) Taxes. Subservicer shall
ensure that all real estate taxes are paid in connection with each Mortgaged Property to ensure
that the related lien of each Mortgage Loan remains in full force and effect and the priority
thereof is not impaired. The Subservicer shall be liable to the Servicer for any losses incurred
due to non-payment or untimely payment of taxes by the Subservicer.

     (b) Insurance. Subservicer shall ensure that at all times (i) a hazard insurance
policy which insures against loss by fire and by hazards included within the term “extended
coverage” is in place with respect to each Mortgage Property and that such policy is in an amount
acceptable to Servicer, (ii) such policy contains a standard mortgagee’s clause with an appropriate
endorsement in favor of Servicer, and (iii) that it is otherwise at all times in compliance with
all insurance related provisions contained in the Pooling and Servicing Agreements. Subservicer
acknowledges that Master Servicer under the Pooling and Servicing Agreements has not procured and
does not intend to procure, any “mortgagee interest policy” as contemplated by the Pooling and
Servicing Agreements. The Subservicer shall be liable to the
Servicer for any losses incurred due to non-payment or untimely payment of insurance premiums
by the Subservicer.

     Section 2.11. Notice to Mortgagors. Not less than fifteen (15) days before each
applicable Transfer Date, unless earlier notification is required by Applicable Requirements,

24

 

Servicer and Subservicer shall jointly deliver to each applicable Mortgagor a letter advising the
Mortgagor of the transfer of subservicing contemplated herein. Such letters shall comply with all
Applicable Requirements, including, but not limited to, RESPA. At least thirty (30) days before
the first Transfer Date, Servicer and Subservicer shall review the form of the letter for
compliance with the Applicable Requirements. All costs of preparing and delivering such letters
shall be shared equally by Servicer and Subservicer.

     Section 2.12. Notice to Tax Service Provider. (a) Notices. Not less than
fifteen (15) days before each applicable Transfer Date for first lien Mortgage Loans, only Servicer
shall deliver written notices of the transfer of subservicing contemplated herein to TRETS. At
Subservicer’s request, Servicer shall provide an officer’s certificate to the effect that Servicer
has mailed such notices at least fifteen (15) days before each Transfer Date. Such notice shall
instruct TRETS to deliver, from and after each applicable Transfer Date, all applicable payments,
notices, bills, statements, records, files, histories, support documents, and other documents to
Subservicer.

     (b) Costs. Servicer shall be responsible for the cost of preparing and delivering the
notices described in this Section 2.12.

     Section 2.13. Notice to Insurance Companies and Payment of Insurance Premiums. (a)
Notices. Not less than fifteen (15) days before each applicable Transfer Date, Servicer
shall deliver written notices of the transfer of subservicing contemplated herein to each of
Servicer’s hazard insurance Outsource Vendors. Servicer shall direct the Outsource Vendor to
forward all mail concerning the Mortgage Loans to the Subservicer.

     (b) Change of Mortgage Clauses. It shall be the responsibility of the Servicer to
ensure that all applicable hazard insurance policy mortgage clauses are changed to “Cendant
Mortgage Corporation, its successors and assigns”.

     (c) Costs. Servicer shall be responsible for the cost of preparing and delivering the
notices described in this Section 2.13.

     Section 2.14. Tax Contracts. (a) Servicer shall cause TRETS to work with
Subservicer’s designated tax service provider to deliver a comprehensive ADDS tape (AB383) for all
first lien Mortgage Loans (other
than (i) Mortgage Loans secured by Mortgaged Properties in Guam and Puerto Rico and (ii) Co-op
Loans), whether escrowed or non-escrowed, no later than five (5) Business Days after the applicable
Transfer Date.

     (b) With respect to all first lien Mortgage Loans other than (i) Mortgage Loans secured by
Mortgaged Properties in Guam and Puerto Rico and (ii) Co-op Loans, Servicer shall transfer the
related TRETS life-of-loan contracts to Subservicer’s designated tax service provider on the
applicable Transfer Date. Within 60 days after each Transfer Date, Subservicer shall provide
Servicer with a listing of all such Mortgage Loans for which Subservicer’s designated tax service
provider did not receive the anticipated tax contract information from TRETS. Servicer shall have
30 days after receiving the listing to reconcile it and, for each such Mortgage Loan that did not
have a

25

 

life-of-loan tax service contract, shall remit to Subservicer (x) a fee of $[* * *] to
purchase a tax service contract or (y) [* * *] to purchase a tax service contract for such Mortgage
Loan.

     Section 2.15. [Reserved.]

     Section 2.16. [Reserved.]

     Section 2.17. Mortgage Loan Payment Record. Subservicer shall maintain a Mortgage
Loan Payment Record (as such term is defined in the related Pooling and Servicing Agreement) in
accordance with the terms of the applicable Pooling and Servicing Agreement.

     Section 2.18. [Reserved.]

     Section 2.19. Post-Transfer Assumption Processing. The Subservicer shall be
responsible for administering assumption requests 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, underwriting the new obligor, and obtaining
any additional documentation and execution of documents. The Subservicer shall process such
requests in accordance with the related Private Investor Agreement and Pooling and Servicing
Agreement, including, but not limited to, freezing lines of credit where required. Subservicer
shall be responsible for processing all loan origination functions of any assumption pursuant to
the Origination Agreement. The Subservicer shall thereafter be responsible for providing any
required notices to the applicable Private Investor and for providing the original assumption
agreement to the applicable document custodian.

     Section 2.20. Misapplied Payments and NSF. Subservicer shall be responsible for
administering and correcting any payment misapplications, and any adjustments necessary due to the
return of payment checks for insufficient funds that occurred prior to the Transfer Date,
provided that if a misapplied payment that occurred before the relevant Transfer Date
cannot be reconciled and Subservicer incurs any cost or expense relating thereto, Servicer shall
reimburse Subservicer for the cost or expense incurred by Subservicer with respect to such
misapplied payment. Servicer agrees to use its good faith efforts to cooperate with Subservicer in
correcting misapplication errors that occur prior to the Transfer Date.

     Section 2.21. Tax Reporting. Subservicer shall be responsible for the preparation and
filing of all reports required by the IRS of a mortgage loan servicer or subservicer for any
Mortgage Loan. To the extent Servicer has such documents in its possession, Servicer shall provide
to Subservicer photocopies

 

			
	[***] 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.

26

 

of IRS Forms W-8 and W-9, as applicable, executed by the Mortgagor (or equivalent
documentation acceptable to Subservicer) for each Mortgage Loan upon request.

     Section 2.22. [ Reserved.]

     Section 2.23. Flood Insurance Determination Contracts. To the extent applicable,
Servicer shall obtain, at Servicer’s sole cost and expense, before each applicable Transfer Date,
“life of loan” or “life-time” transferable flood insurance determination contracts on each Mortgage
Loan. Servicer shall assign to Subservicer, on or promptly following each applicable Transfer
Date, the related certified and guaranteed assignable flood insurance determination contracts
Servicer obtained for such Mortgage Loans. Servicer and Subservicer shall equally share
responsibility for any fees required to transfer such flood insurance determination contracts to
Subservicer.

     Section 2.24. Limited Powers of Attorney and Limited Authorized Signatories. Servicer
agrees to provide Subservicer on the first Transfer Date with limited powers of attorney in the
agreed upon form attached hereto as Exhibit I.

     Section 2.25. Updated Exhibits and Schedules. As soon as possible, and in any event
no later than five (5) Business Days after the applicable Transfer Date, Subservicer shall have
received from Servicer updated versions of each then-relevant exhibit and schedule hereto,
certified as being true and correct on behalf of Servicer by an authorized officer thereof, with
respect to the subservicing transferred on that date.

     Section 2.26. Outsource Vendor Contracts. Subservicer shall not assume any of
Servicer’s obligations under the Outsource Vendor contracts. A list of the Outsource Vendors is
attached as Schedule 2.26.

     Section 2.27. [Reserved.]

     Section 2.28. [Reserved.]

     Section 2.29. [Reserved.]

     Section 2.30. Servicer to Service Additional Collateral. Notwithstanding anything to
the contrary in this Agreement, Servicer shall service and administer all Additional Collateral, it
being understood and agreed that only Servicer shall service and administer the related securities
accounts with respect to Additional Collateral Agreements.

     Section 2.31. [Reserved.]

     Section 2.32. Audit of ARM Loans. Within ninety (90) days after the first Transfer
Date, Subservicer may perform an audit of a sample of [* * *] the ARM Loans transferred on such
Transfer Date, comparing the Mortgage Note with Subservicer’s EDP. Each such audit shall be based
on a random sample, the selection methodology for which shall be approved by Servicer

27

 

reasonably in
advance of such data audit. At least two (2) Business Days before the commencement of any such
data audit, Subservicer shall provide Servicer with a list of the loan numbers selected for such
data audit. Should the results of such audit reflect a financial error rate [* * *] or a
non-financial error rate [* * *], subject to Servicer’s reasonable verification of Subservicer’s
audit results, Subservicer, or Subservicer’s subcontractor, shall complete, at Servicer’s sole cost
and expense, an audit of all ARM Loans and related interest adjustments and calculations.
Subservicer and Servicer shall mutually agree on the scope, the procedures to be used, and (subject
to reasonability) the price of conducting such ARM Loan audit. Subservicer shall report the
results of such ARM Loan audit including all recommended corrective actions to Servicer. Servicer
shall reimburse Subservicer promptly upon receipt of related invoices for all costs and expenses
incurred by Subservicer in undertaking the audit. Subservicer and Servicer shall jointly agree on
any corrective action to be undertaken, the costs of which shall be borne exclusively by Servicer.
Any decision by Subservicer not to conduct an audit as provided herein shall not affect any rights
Subservicer may have under this Agreement, nor in any way limit any of Servicer’s representations
or warranties.

     Section 2.33. Transfer of Mortgage Loans. (a) The Subservicer acknowledges that from
time to time the Servicer 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 Subservicer
acknowledges that the Servicer shall have the right to sell and assign any or all of the Mortgage
Loans, and the Subservicer 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 Servicer or any Affiliate of the Servicer, the Subservicer agrees
to assist the Servicer in various capacities, and shall, among other things:

     (i) cooperate fully and negotiate in good faith with the Servicer, any custodian that
maintains documents or Mortgage Loan Documents on behalf of the Servicer, 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 Subservicer 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 Subservicer’s EDP, any reasonable out-of-pocket expenses
incurred by the Subservicer to provide such information shall be paid by the Servicer.
However, it is agreed that the Servicer shall provide notice to Subservicer 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;

 

			
	[***] 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

 

     (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 Servicer reasonably requests. The Subservicer shall, as the
Servicer may request, either (A) enter into such agreements with the Servicer, in which case
the Servicer’s rights and obligations thereunder shall be freely assignable and delegable to
the Subsequent Purchaser without any further action or consent by the Subservicer, or (B)
enter into such agreement directly with the Subsequent Purchaser. 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 Subservicer 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 Origination Agreement for the benefit of
the Subsequent Purchaser; provided, however, that the Subservicer may
qualify any such representation or warranty to reflect an event or circumstance that arose
after the date hereof and that would cause such representation or warranty to be inaccurate,
so long as such event or circumstance is not a breach by the Subservicer of any term or
condition of any Transaction Agreement.

     (iv) deliver to the Servicer or its Affiliates, at the expense of the Servicer, for
inclusion in any prospectus, private placement memorandum or other offering material or
disclosure document such written information regarding the Subservicer or its Affiliates as
shall be reasonably requested by the Servicer 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 Servicer and any Affiliate of the Servicer
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 Servicer, and to any Person designated by the Servicer, the
Subservicer’s audited financial statements and such written information provided by the
Subservicer 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 Servicer or its Affiliates;

     (vi) deliver to the Servicer, and to any Person designated by the Servicer, at the
expense of the Servicer, such opinions of counsel, if any, as are customarily

29

 

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 Subservicer’s EDP, any set-up costs
incurred by the Subservicer to provide such information shall be borne by the Servicer; and

     (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 2.33(a), no agreements, consents or
modifications referred to therein shall contain any provisions that reduce the Subservicing Fee as
to any Mortgage Loan or that affect the calculation of the Subservicing Fee as to any Mortgage Loan
in a manner that is materially adverse to the Subservicer. 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.

     Section 2.34. Mortgage Loan Information. (a) From and after each applicable Transfer
Date, Subservicer agrees that it shall supply on a daily basis (i) the Loan Information for each
Mortgagor to Servicer and (ii) aggregate loan information on the Mortgage Loans, on a daily basis
in accordance with the specific timing, transfer, and other requirements as may from time to time
be designated by Servicer, provided that such information is, as of the date hereof, being
generated by EDP.

     (b) Servicer and Subservicer acknowledge that, to the best of their respective knowledge,
their respective obligations to provide Information Sharing Notices and to supply the Loan
Information are permitted by, and comply with, the Applicable Requirements. The parties
acknowledge that there has been a change in the Applicable Requirements that may affect either (i)
the dissemination of the Loan Information from Subservicer to Servicer, (ii) the manner in which
the Loan Information is disseminated from Subservicer to Servicer, or (iii) the form, content, or
delivery of the required form of Information Sharing Notice. The parties hereto shall work in good
faith to address the effect of this change in the Applicable Requirements and to
resolve the same in a manner that is reasonably acceptable in good faith to both parties and
that

30

 

will allow Subservicer to continue to supply to Servicer as much of the Loan Information as is
then possible given the applicable change in the Applicable Requirements.

     (c) Servicer acknowledges and agrees that it will not use or disseminate the Loan Information
in violation of the Applicable Requirements.

     (d) Servicer shall indemnify Subservicer against any and all Losses incurred by Subservicer to
the extent that such Losses result from, are caused by, or arise out of Subservicer’s compliance
with Section 2.34(a) with respect to the Mortgage Loans subserviced pursuant to this
Agreement.

     Section 2.35. [Reserved.]

     Section 2.36. Subservicer Reports. In addition to any other reports required pursuant
to the terms of this Agreement, during the term of this Agreement, Subservicer shall furnish any
reports or documentation that the Servicer 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 Servicer. All reports shall
be delivered in accordance with the Servicer’s reasonable instructions and directions. The
Subservicer agrees to execute and deliver all such instruments and take all such action as the
Servicer, 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 any such report requested by Servicer is not a
standard report produced by EDP, any set-up or future incremental costs incurred by Subservicer for
such reports requested by Servicer shall be borne by Servicer.

     Section 2.37. Work Policy. Personnel of either Party working on the premises of the
other Party (excluding in the case of Subservicer, premises of Servicer leased to Subservicer), 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 Subservicer, premises of
Servicer leased to Subservicer). 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 2.38. Use of Hardware and Software. In the event that Subservicer shall be
performing MLCC Services on behalf of Servicer and any third party utilizing common hardware and/or
Software, Servicer shall have the right, on reasonable notice to Subservicer and at Servicer’s sole
cost and expense, to audit such hardware and Software to ensure segregation of

31

 

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 Subservicer’s ability to perform the MLCC Services.

     Section 2.39. Technical Architecture Standards. On notice thereof, Subservicer shall
comply with all reasonable Servicer information management technical architecture standards related
to interfacing with Servicer systems, as identified and amended by Servicer from time to time.

     Section 2.40. Compliance with Policies. Subservicer shall, upon notice thereof by
Servicer, comply with all of Servicer’s commercially reasonable policies and procedures regarding
security and safeguarding of MLCC Data.

     Section 2.41. Continuation of MLCC Services. Subservicer acknowledges that the
provision of MLCC Services is critical to the business and operations of Servicer. In the event of
a fee dispute between Servicer and Subservicer 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
Transaction 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 Transaction Agreements or the normal business operations of the other Party.

ARTICLE IIA

SERVICER’S AND SUBSERVICER’S OBLIGATIONS

WITH RESPECT TO PROCESSING MORTGAGE LOAN ADVANCES

     Section 2A.1 Check Transactions. Subservicer and Servicer respectively hereby agree
to undertake the following obligations
related to the check writing privileges of Borrowers under the Mortgage Loan Documents for
Mortgage Loans:

     (a) Printing and Delivery of Checks. Upon receipt of a properly executed check
request from a Borrower, Subservicer shall arrange for the printing and delivery to such Borrower,
by overnight delivery service, of Checks (in the form approved in writing by Servicer) and related
checkbooks and check registers.

     (b) Payment for Mortgage Loan Advances by Check. Subservicer shall arrange, pursuant
to Servicer’s direction, for the daily funding of settlement of Checks presented to Issuer for
collection. Subservicer shall arrange each day for funding of Issuer’s settlement account with the
FRB in the amount of all Checks received from the FRB that day.

32

 

     (c) Overextension of Credit Limit. Subservicer shall monitor the Outstanding Balance
with respect to each Mortgage Loan and shall cause to be returned for insufficient funds any Check
which exceeds the Available Credit under such Mortgage Loan (such Checks, in addition to those
described in Section 2A.1(d), referred to as “Returned Checks”). Subservicer shall
notify the Borrower with respect to such Returned Check that such Returned Check has been returned
for insufficient funds. Notwithstanding the foregoing, Subservicer may make payment on a Returned
Check that exceeds the Credit Limit of any Borrower on an exception basis if it has requested and
received written authorization from Servicer. Upon receipt of such a request from Subservicer,
Servicer shall, within two (2) Business Days, notify Subservicer of its approval or denial of such
request. Subservicer monthly shall provide Servicer with a report, with respect to Mortgage Loans
exceeding credit limits within the prior month, which report shall indicate current status
(including compliance with Credit Limit) of each such Mortgage Loan and shall otherwise be in a
form reasonably acceptable to Servicer.

     (d) Dishonoring of Checks. If a Check must be returned or dishonored for any reason
other than the reasons described in paragraph (c) above, including because of a limitation on
Mortgage Loan Advances imposed by Servicer, or by Subservicer on behalf of Servicer, due to a
Borrower Default or because of an apparent forgery of the Check, Subservicer or its agent shall
cause such Check to be returned or dishonored. Subservicer shall notify the Borrower with respect
to any such Returned Check.

     (e) Reimbursement of Subservicer. Servicer shall reimburse Subservicer in accordance
with the provisions of Article VI hereof for Subservicer’s funding of Check settlement
pursuant to Subsections 2A.1(b) and 2A.1(c).

     (f) Recovery of Checks. With respect to any terminated Mortgage Loan, Subservicer
shall send to the related Mortgagor a written request that such Mortgagor either return or destroy
any unused Checks in such Mortgagor’s possession. If Subservicer receives any such Checks from
Mortgagors, Subservicer shall destroy such Checks.

     (g) Books and Records. Servicer may at any time request information from, and examine
the books and records of, Subservicer related to the processing or settlement of the
Checks. Subservicer shall maintain such records for at least such period as shall be required
by applicable law and regulation and shall provide to Servicer copies of all records or documents
related to the Checks as Servicer may request from time to time within two (2) Business Days of
receipt of such request. This right of inspection shall continue so long as Borrowers shall have
check writing privileges under the Mortgage Loans, and for a reasonable period of time following
the termination of such privileges. To the extent any information requested by Servicer under this
paragraph (g) is related to internal audits conducted by Servicer in the normal course of its
business, Servicer shall reimburse Subservicer for any and all costs and expenses incurred by
Subservicer in complying with such request. All other costs and expenses incurred in complying
with this paragraph (g) shall be borne by the Subservicer.

33

 

     Section 2A.2 Card Transactions. Subservicer and Servicer hereby agree to undertake
the following obligations related to the card privileges of Borrowers under the Mortgage Loan
Documents for Mortgage Loans:

     (a) Embossing and Delivery of Cards. Upon receipt of a properly executed card request
from a Borrower, Subservicer shall arrange for the embossing and delivery to the Borrower of Cards
in such form as designated by the Servicer. Servicer shall be solely responsible for ensuring that
the form of the Cards satisfies the rules, regulations and other requirements of VISA®.

     (b) Requests for Authorization. Subservicer shall respond to all authorization
requests from merchants related to transactions involving Cards according to the rules and
regulations of VISA® and applicable laws and regulations. Subservicer shall disapprove
any request for authorization of a Card transaction (i) which exceeds a Borrower’s Available
Credit, or (ii) which exceeds any other limitation on Mortgage Loan Advances imposed by Servicer of
which Subservicer has been informed, or by Subservicer on behalf of Servicer, because of a Borrower
Default. Notwithstanding the foregoing, Subservicer may approve authorization requests for Charges
which exceed the Available Credit of such Borrower on an exception basis if it has requested and
received written authorization from Servicer. Upon receipt of such a request from Subservicer,
Servicer shall, within two (2) Business Days, notify Subservicer of its approval or denial of such
request. Subservicer shall, on a monthly basis, provide Servicer with a report, in a form
reasonably acceptable to Servicer, with respect to Mortgage Loans exceeding credit limits within
the prior month, which report shall indicate current status (including compliance with Credit
Limit) of each such Mortgage Loan and shall otherwise be in a form reasonably acceptable to
Servicer.

     (c) Customer Inquiries. Subservicer shall respond to and otherwise handle Borrower
inquiries, requests and complaints concerning their Cards. Subservicer shall provide Borrowers
with both a toll free telephone number and an address for the purposes of reporting lost or stolen
Cards, requesting information about Charges, confirming the Borrower’s Available Credit, and such
other purposes as the parties shall determine to be appropriate or desirable or as may be required
by applicable law and regulation.

     (d) VISA® Settlement. Subservicer or its agent shall maintain an
electronic link with VISA® for the purpose of obtaining information related to the
settlement of Charges and the processing of adjustments and exception items, including, without
limitation, chargebacks, returns, representments and reversals. Subservicer shall submit a
settlement report to Servicer and shall transfer funds to VISA® each day
VISA® settlement occurs in accordance with the provisions of Article VI hereof.

     (e) De-activation of Cards. Upon receipt of notice from Servicer that a Card has been
terminated or upon receipt of a direct request from a Borrower to terminate his or her Mortgage
Loan or Card or upon termination of an Mortgage Loan by Servicer or Subservicer, Subservicer shall
promptly take such actions as are necessary to prevent the authorization of any transaction
involving the Card following such termination. Subservicer shall use commercially reasonable

34

 

efforts to retrieve and destroy or ensure the destruction of any Card with respect to a terminated
Mortgage Loan.

     (f) Books and Records. Subservicer shall provide access to Servicer at any time
during ordinary business hours to examine, audit and make copies of all books, records and
documents in Subservicer’s possession related to the Cards. Subservicer shall maintain such
records for at least such periods as shall be required by applicable law and regulation, or by the
rules and regulations of VISA®, and shall provide to Servicer any original document
related to the Cards, as Servicer may request from time to time within five (5) Business Days of
receipt of such request. To the extent any information requested by Servicer under this paragraph
(f) is related to internal audits conducted by Servicer in the normal course of its business,
Servicer shall reimburse Subservicer for any and all costs and expenses incurred by Subservicer in
complying with such request. All other costs and expenses incurred in complying with this
paragraph (f) shall be borne by the Subservicer.

     (g) Chargebacks. Subservicer shall process chargebacks of Charges previously paid in
accordance with applicable law and regulation, and with the written rules and regulations of
VISA®. Subservicer shall manage the VISA® Suspense Account according
to VISA®chargeback guidelines and procedures as referenced in the Operations
Guide. Subservicer shall be responsible for unrecoverable losses due to Subservicer’s failure to
comply with this Section 2A.2(g).

     Section 2A.3 Wire Transfers. Subservicer hereby agrees to perform the following
services related to the wire transfer privileges, if any exist, of Borrowers under the Mortgage
Loan Documents for Mortgage Loans:

     (a) Processing of Wire Transfer Requests. Upon receiving a duly authorized request
from a Borrower for a wire transfer of funds as a Mortgage Loan Advance on the Mortgage Loan,
Subservicer shall arrange for a wire transfer of the requested amount (provided that such amount
does not exceed the Borrower’s Available Credit and provided that Servicer, or Subservicer on
behalf of Servicer, has not imposed a limitation on Mortgage Loan Advances because of a Borrower
Default) as a Mortgage Loan Advance to the Mortgage Loan specified in the wire transfer
instructions from the Borrower.

     (b) Reimbursement of Subservicer. Servicer shall reimburse Subservicer in accordance
with Article VI hereof for the amount Subservicer has wire transferred on behalf of
Servicer to the Borrowers (or their designees).

     Section 2A.4 Certified or Cashier’s Checks. Subservicer hereby agrees to provide
certified or cashier’s check services to Borrowers.

          (a) Processing of Certified or Cashier’s Check Requests. Subservicer and Servicer
agree that the certified or cashier’s checks may be issued by Accommodation Party pursuant to an
agreement between Subservicer and Accommodation Party; provided, however, that
Subservicer shall remain primarily liable to Servicer for the performance of the services by

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Accommodation Party on behalf of Subservicer. Upon receiving a duly authorized request from a
Borrower for the issuance of a certified or cashier’s check as a Mortgage Loan Advance on the
Borrower’s Mortgage Loan, Subservicer shall arrange for Accommodation Party to issue a certified
or cashier’s check of the requested amount (provided that such amount does not exceed the
Borrower’s Available Credit and provided that Subservicer on behalf of Servicer has not imposed a
limitation on Mortgage Loan Advances because of a Borrower Default) as a Mortgage Loan Advance on
the Mortgage Loan and deliver such certified or cashier’s check as specified in the certified check
request from the Borrower. Subservicer shall arrange payment to Accommodation Party with respect
to certified or cashier’s checks issued by Accommodation Party on behalf of Subservicer.

          (b) Reimbursement of Subservicer. Servicer shall reimburse Subservicer in accordance
with Article VI hereof for the amounts Subservicer has paid to Accommodation Party for
issuance of the certified or cashier’s checks for the Borrowers.

     Section 2A.5 Customer Service. (a) Subservicer shall perform such other customer
service functions related to the Mortgage Loans as the parties shall agree to from time to time,
including cancellation of lost or stolen Checks or Cards, processing of duly authorized stop
payment orders, preparation and mailing of periodic statements, notices and disclosures as provided
in Sections 2A.8 and 2A.9, and response to and investigation of Borrower inquiries,
requests, notices and complaints, all in accordance with Section 4.14, and with applicable
rules of any payment system through which Mortgage Loan Advances are processed. Subservicer will
take all necessary actions to ensure that its performance of all customer service functions related
to the Mortgage Loans are in compliance with Section 4.14.

     Section 2A.6 Security Procedures. (a) Subservicer and Servicer shall, in
consultation with each other, mutually develop security procedures for the purpose of detecting
unauthorized, fraudulent, criminal or suspicious transactions related to the Mortgage Loans or
Mortgage Loan Advances. Subservicer shall utilize such procedures, with the cooperation of
Servicer, and shall take all reasonable and appropriate action to prevent losses with respect to
the Mortgage Loans or Mortgage Loan Advances, including, without limitation, maintaining lists of
lost or stolen Cards with VISA®.

          (b) If Subservicer or Servicer determines that a fraud or other suspicious or criminal act
relating to a Mortgage Loan or Mortgage Loan Advance may have occurred, such party shall promptly
notify the other party. Subservicer shall investigate such alleged fraud or other criminal
activity and shall consult with Servicer regarding any investigation and prosecution of any such
fraud. The parties shall cooperate with each other in the pursuit of any such investigation or
prosecution and the filing of any such investigation or prosecution and the filing of any
applicable federal or state filings in respect thereof. Subservicer shall indemnify Servicer
against any and all losses from fraud or other criminal activity related to a Check or related to a
Card which losses (i) cannot be charged back to the merchant bank through VISA®, (ii)
were not perpetrated by Servicer or Servicer’s employees or officers and (iii) arose as a direct
result of either (A) Subservicer’s negligence or (B) Subservicer’s noncompliance with any of its

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obligations contained in Article II or Article IIA. Subservicer shall process
Provisional Credits on Equity Loans upon Servicer approval according to the Operations Guide. Any
Provisional Credit granted must be approved by Servicer. Subservicer shall fund the Provisional
Credit and handle the initial research and recovery in all cases of fraudulent activity occurring
on any Equity Loan. To ensure that daily Provisional Credit postings are properly identified,
reported and documented, Subservicer shall provide to Servicer by the fifth Business Day of each
month an aged reconciliation schedule of Provisional Credits in the form of Exhibit N.
Servicer shall have three (3) Business Days to review the reconciliation and either approve it or
advise Subservicer of errors. Servicer and Subservicer shall cooperate and exert reasonable
efforts to promptly correct any errors. Servicer will reimburse Subservicer in full for the
Provisional Credits in Exhibit N. Servicer and Subservicer shall remit funds to each other,
as applicable, within one (1) Business Day of either the approval of the reconciliation or the
correction of any errors detected by the appropriate party. In any event, a mutually agreed upon
amount must be remitted to the appropriate party no later than the 20th day of the month
(or next Business Day immediately thereafter). Subservicer shall provide Servicer with Provisional
Credit documentation on request.

     Section 2A.7 Subservicer to Comply with Servicer’s “Affiliate Transactions 23A/23B”
Procedures. Subservicer shall at the times under this Agreement comply with Servicer’s written
procedures for complying with Sections 23A and 23B of the Federal Reserve Act which restricts the
payment of Checks, and Subservicer shall notify Servicer of any “covered transactions,” as said
term is defined in Servicer’s written procedures. Such procedures are attached hereto as
Exhibit B (the “23A/B Procedures”). Servicer represents and warrants that, as of
the date hereof, Servicer complies with the 23A/B Procedures. Notwithstanding the foregoing, if
the representation contained in the immediately preceding sentence is inaccurate as of the date
made as to any specific part of the 23A/B Procedures (the “Non-Complying Procedure”),
Subservicer shall not be obligated to comply with such Non-Complying Procedure to the extent that
(i) Servicer does not comply with such Non-Complying Procedure as of the date hereof and (ii)
Subservicer is not in compliance with such Non-Complying Procedure as of the date such inaccuracy
is discovered; provided, that upon discovery of the inaccuracy of such representation,
Subservicer shall promptly notify Servicer in writing of such inaccuracy and shall indicate in such
notice the Non-Complying Procedure. Within five (5)
Business Days after receipt of such notice, Servicer shall notify Subservicer of whether
Servicer desires Subservicer to follow such Non-Complying Procedure. If Servicer notifies
Subservicer that it desires Subservicer to follow such Non-Complying Procedure, Subservicer shall
have the right to propose an adjustment to the Subservicing Fee in accordance with the procedures
set forth in Section 17.04(d). For the avoidance of doubt, nothing contained in this Section 2A.7
shall relieve Subservicer’s obligation to subservice the Mortgage Loans in accordance with
applicable law.

     Section 2A.8 Notices and Disclosures. Subservicer shall provide to each Mortgagor
such notices and disclosure statements and such updates and amendments thereto in conformance with
Applicable Requirements.

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     Section 2A.9 Monthly Statements. Each calendar month, Subservicer shall prepare and
distribute to each Mortgagor an account statement in such format as required by applicable state
and federal laws and regulations detailing all activity related to such Mortgagor’s Mortgage Loan
for the immediately prior billing period in a form satisfactory to Servicer, including all Check,
Card and certified and cashier’s check transactions and wire transfers made with respect to such
Mortgage Loan, interest accrued during such month, the annual percentage rate with respect to such
interest, all payments of interest and principal during such month, and all fees imposed during
such month, the minimum amount due and payable by the Mortgagor, and such other information as
Servicer may provide from time to time, or as may be required to be provided by applicable state
and federal laws and regulations.

     Section 2A.10 Credit Balance Checks. Each calendar month Subservicer shall prepare
and distribute credit balance checks in accordance with the Applicable Requirements and, to the
extent not inconsistent therewith, the provisions outlined in the Operations Guide.

ARTICLE III

SERVICER REPRESENTATIONS AND WARRANTIES

     In addition to representations and warranties, if any, made elsewhere in this Agreement,
Servicer represents and warrants to Subservicer as of the date hereof and each applicable Transfer
Date, as follows:

     Section 3.01. Organization and Good Standing. Servicer is a corporation duly
organized, validly existing, and in good standing under the laws of the State of Delaware.
Servicer 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. Servicer 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. Servicer 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 Servicer and consummation of the transactions contemplated hereby have been duly and
validly authorized by all necessary corporate, shareholder, or other action by Servicer; this
Agreement has been duly and validly executed and delivered by Servicer; and this Agreement is a
valid and legally binding agreement of Servicer, enforceable against Servicer 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.

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     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 Servicer’s Certificate of Incorporation or by-laws, or any other similar corporate or
organizational documents of Servicer; any mortgage, indenture, deed of trust, loan or credit
agreement, or other agreement or instrument to which Servicer is now a party or by which it is
bound with the exception of any agreement or instrument relating to a Third Party Consent; or any
law, ordinance, rule, regulation, order, judgment or decree of any governmental authority
applicable to Servicer; 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 Servicer.

     Section 3.05. Approvals and Compliance. Servicer is approved and in good standing
with each Trustee and Insurer, and holds all licenses, approvals, permits, and other
authorizations, or exemptions therefrom, required under Applicable Requirements to originate, if
Servicer was the Originator, and to service the Mortgage Loans.

     Section 3.06. Servicer Advances. The Servicer Advances and Interest Advances are
valid and subsisting amounts owing to Servicer, are carried on the books of Servicer at values
determined in accordance with generally accepted accounting principles, are not subject to any
set-offs or claims by the Mortgagor arising from acts or omissions of Servicer, and are recoverable
in the normal course of business or are made in accordance with Applicable Requirements. 

     Section 3.07. Insurance. Error and omissions and fidelity insurance coverage, in the amounts required by the
applicable Pooling and Servicing Agreement, is in effect with respect to Servicer and will be
maintained with respect to the related Mortgage Loans until such time as Servicer is no longer the
Servicer under the related Pooling and Servicing Agreement.

     Section 3.08. Litigation. There is no litigation, claim, demand, proceeding or
governmental investigation existing or pending, or to the Knowledge of Servicer, threatened, nor is
there any order, injunction or decree outstanding against or relating to Servicer that could (i)
have a material adverse effect upon the performance by Servicer of its obligations under this
Agreement or (ii) to Servicer’s Knowledge, result in any material loss or liability to Subservicer.
Further, to Servicer’s Knowledge, there is no meritorious basis for any such litigation, claim,
demand, proceeding, or governmental investigation.

     Section 3.09. Financial Condition of Servicer. Neither Servicer, its parent, nor any
of its subsidiaries is in bankruptcy, receivership or conservatorship. Servicer has the requisite
financial resources and ability to meet its obligations under this Agreement, including, but not
limited to, any and all indemnification and/or repurchase obligations.

     Section 3.10. Compliance with Pooling and Servicing Agreements and Private Investor
Agreements. Servicer has complied in all material respects with the covenants,

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conditions, and
agreements applicable to it under the Pooling and Servicing Agreements and agreements applicable to
it under the Private Investor Agreements.

ARTICLE IV

SUBSERVICER REPRESENTATIONS, WARRANTIES AND COVENANTS

     In addition to representations and warranties, if any, made elsewhere in this Agreement,
Subservicer represents and warrants to Servicer as of the date hereof and each applicable Transfer
Date, as follows:

     Section 4.01. Due Incorporation and Good Standing. Subservicer is a corporation duly
organized, validly existing and in good standing under the laws of the State of New Jersey.
Subservicer 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. Subservicer 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 thereunder. Subservicer 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 4.03. Effective Agreement. The execution, delivery and performance of this
Agreement by Subservicer and consummation of the transactions contemplated hereby have been duly
and validly authorized by all necessary corporate, shareholder or other action by Subservicer; this
Agreement has been duly and validly executed and delivered by Subservicer; and this Agreement is a
valid and legally binding agreement of Subservicer, enforceable against Subservicer 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 Subservicer’s articles of incorporation or by-laws or any other similar corporate or
organizational document of Subservicer; any mortgage, indenture, deed of trust, loan or credit
agreement or other agreement or instrument to which Subservicer 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 Subservicer; 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 Subservicer.

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     Section 4.05. Approvals and Compliance. Subservicer holds all licenses, approvals,
permits and other authorizations, or exemptions therefrom, required under Applicable Requirements
to assume responsibility for subservicing 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 Subservicer, threatened, nor
is there any order, injunction or decree outstanding against or relating to Subservicer that could
(i) have a material adverse effect upon the performance by Subservicer of its obligations under
this Agreement or (ii) to Subservicer’s Knowledge, result in any material loss or liability to
Servicer. Further, to Subservicer’s Knowledge, there is no meritorious basis for any such
litigation, claim, demand, proceeding, or governmental investigation.

     Section 4.07. Agency Approval. Subservicer 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. Subservicer has not received any
notification from GNMA, FNMA or FHLMC that Subservicer is not in compliance with the requirements
of the approved “seller/servicer” status. Subservicer is a mortgagee approved by the Secretary of
HUD pursuant to Section 203 and 211 of the National Housing Act. Subservicer has not received any
notification from HUD that Subservicer is not in compliance with the requirements of the approved
mortgagee status.

     Section 4.08. Servicing Compliance. The servicing practices to be used by Subservicer
under the Private Investor Agreements and Pooling and Servicing Agreements 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.

     Section 4.09. No Inquiries. Subservicer has not received written notice from or on
behalf of FHA, HUD, FDIC, FNMA, FHLMC or GNMA, advising Subservicer 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. Subservicer 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 one (1) Business Days in the event its primary location is rendered inoperative as
a result of a natural or other disaster or emergency, and once Subservicer relocates to its backup
site, it shall make arrangements to connect Servicer to Subservicer’s backup EDP and provide
continued service as stated in this Agreement, provided that Subservicer has granted Servicer
access to its primary EDP.

     Section 4.11. Licenses and Approvals. Subservicer maintains and shall maintain, in
good standing, all licenses and approvals necessary to subservice the Mortgage Loans and maintains
and shall at all times maintain the capital requirements imposed by the licensing or approving
entities having jurisdiction over Subservicer. Subservicer has filed applications for all

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applicable licenses and qualifications to do business and to subservice the Mortgage Loans in the
U.S. Virgin Islands.

     Section 4.12. Fidelity and E&O Insurance. Subservicer maintains and shall at all times maintain error and omissions and fidelity
insurance coverage of the type and in the amounts required by the applicable Pooling and Servicing
Agreement or the applicable Private Investor Agreement.

     Section 4.13. Sufficiency of Systems and Personnel. On and after the Transfer Date,
Subservicer shall have and shall at all times maintain during the term of this Agreement,
sufficient systems, including but not limited to EDP, and trained and experienced personnel in
place to perform its obligations under this Agreement.

     Section 4.14. Compliance with Laws. For so long as, and to the extent that,
Subservicer subservices the Mortgage Loans, Subservicer 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 Servicer has a reasonable good faith belief in
Subservicer’s non-compliance with this Section 4.14 and upon Servicer’s written request,
Subservicer shall deliver to Servicer reasonable evidence of compliance with any of the
requirements of this Section 4.14.

     Section 4.15. Financial Condition of Subservicer. Neither Subservicer, its parent,
nor any of its subsidiaries is in bankruptcy, receivership or conservatorship. Subservicer has the
requisite financial resources and ability to meet its obligations under this Agreement, including,
but not limited to, any and all indemnification and/or repurchase obligations.

ARTICLE IVA

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.

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     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.

ARTICLE V

REMITTANCES AND REPORTING

     Section 5.01. Remittances. (a) With respect to all Mortgage Loans that are subject
to a Pooling and Servicing Agreement, the Servicer shall remit to the Trustee all amounts due
pursuant to each Pooling and Servicing Agreement as set forth on Exhibit A. Subservicer
shall provide to the Trustee (with a copy to Servicer) all monthly certificates required to be sent
to the Trustee in accordance with the terms of the Pooling and Servicing Agreements
(“Distribution Certificates”). Subservicer agrees to send to the Trustee (with a copy to
Servicer) any and all Distribution Certificates on or before the date on which the Distribution
Certificates are to be sent to the Trustee in accordance with the terms of the Pooling and
Servicing Agreements.

     (b) With respect to all Mortgage Loans that are subject to a Private Investor Agreement, the
Servicer shall remit to each Private Investor all amounts due pursuant to the applicable Private
Investor Agreements except for those Private Investors who elect to have the Subservicer remit
directly to them under the same terms and conditions as set forth in Article VI;
provided, however, that Subservicer shall only remit funds directly to a Private
Investor on the day(s) such Private Investor is entitled to receive such remittances in accordance
with the terms of the applicable Private Investor Agreement. On all other days, Subservicer shall
not directly remit funds to any Private Investor and shall comply in all respects with Article VI.
In no event shall Subservicer remit funds directly to any Private Investor that shall not have made
such an election on or prior to June 30, 2001.

     Section 5.02. Reports to Servicer. Subservicer will provide all daily, weekly, monthly and annual reports to the Servicer as
set forth on Exhibit K, provided that such reports are being generated as of the date
hereof.

     Section 5.03. Subservicer to Deliver Officer’s Certificates and Participation Reports to
Servicer. With respect to all Mortgage Loans, the following provisions shall apply:

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     (a) Upon final disposition of a Defaulted Mortgage Loan, the Subservicer shall deliver to the
Servicer an Officer’s Certificate in the form of Exhibit 5.03(a). Original proceeds checks
or funds equal to net proceeds and copies of original proceeds checks should be attached, along
with an EDP Participation Report. These documents should be submitted within five (5) days after
the date:

     (i) of receipt of any proceeds from any foreclosure sale at which a third party
purchased a Mortgage Property (Third Party sale);

     (ii) of the closing of any sale of a Mortgaged Property for an amount less than the
total outstanding indebtedness owing on the related Mortgage Loan (Short Sale);

     (iii) of the closing of any sale of an REO Property (REO Sale);

     (iv) on which the Subservicer accepts, as payment in full on a Mortgage Loan, an
amount less than the total outstanding indebtedness owing on such Mortgage Loan (Negotiated
Payoff);

     (v) of decision to charge off the account in full (Direct Charge-Off);

     (vi) of decision to charge off the account in full due to insufficient equity in the
property (Insufficient Equity); or

     (vii) on which the Subservicer recoups previously underestimated Subservicer Advances,
or repays previously overestimated Subservicer Advances, set forth on any Officer’s
Certificate previously delivered to the Servicer.

     (b) The Subservicer shall deliver an Officer’s Certificate to the Servicer within three (3)
Business Days after the Subservicer determines that it has made, or would be making, a
Nonrecoverable Advance. The Officer’s Certificate shall detail the reasons for the Subservicer’s
determination.

     Section 5.04. Master Servicer Functions. Subservicer hereby acknowledges and agrees
that, unless otherwise specifically provided under this Agreement, Subservicer shall, on behalf of
Servicer, act, carry out and perform its duties as Subservicer hereunder as if Subservicer were
also Master Servicer under the Pooling and Servicing Agreements and the Private Investor
Agreements. Subservicer
acknowledges and agrees that the Subservicing Fee takes into account Subservicer’s agreement
pursuant to the preceding sentence.

ARTICLE VI

SUBSERVICER PAYMENT PROVISIONS

     Section 6.01. Effectiveness of Payment Provisions. The Subservicing Fees payable by
Servicer to Subservicer during the year 2002 shall be retroactively effective as of January 1,
2002.

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     Section 6.02. Compensation for Loan Servicing; Allocation of Special Fees and Charges.
(a) General Fee. In consideration for the servicing activities performed by Subservicer
pursuant to this Agreement, Servicer shall pay to Subservicer a sum equal to $[* * *] for each
Mortgage Loan if any of the following conditions apply with respect to such Mortgage Loan:

     (i) Borrower under such Mortgage Loan has an Outstanding Balance greater than $50 on
the last day of such month; or

     (ii) Borrower under such Mortgage Loan has received a Mortgage Loan Advance from the
Subservicer during such month; or 

     (iii) Borrower under such Mortgage Loan has made a principal or interest payment to the
Subservicer during such month.

If none of the conditions specified in clauses (i), (ii) or (iii) above shall apply with respect to
a Mortgage Loan during any given month, Servicer shall pay to Subservicer a sum equal to $[* * *]
with respect to each such Mortgage Loan. The fees payable under this Section 6.02(a) are
referred to herein as the “Subservicing Fees”.

     (b) Renegotiation of Fees. The Subservicing Fees shall be renegotiated by Servicer
and Subservicer on a yearly basis in accordance with this Section 6.02(b). No later than
October 1 of each year, the parties shall commence good faith negotiations with respect to
establishing the Subservicing Fees for the following year. If the parties fail to reach an
agreement with respect to the Subservicing Fees by November 1, the Subservicing Fees for the
following year shall be determined by an Independent Appraisal. The new Subservicing Fees, whether
determined by mutual agreement or by an Independent Appraisal, shall not take effect until January
1 of the following year.

     (c) Specific Fees and Charges Payable to Subservicer. In addition to the fees
described in Section 6.02(a), Subservicer shall be entitled to receive any reimbursable fee
approved by the Servicer.

 

			
	[***] 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.

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     (d) Servicing Fees for Returned Checks. Servicer shall reimburse Subservicer on a
monthly basis for (i) Subservicer’s cost of funds associated with Subservicer advances of daily
Returned Checks and (ii) the unpaid principal amount of returned checks over 90 days outstanding.
Subservicer shall provide Servicer on a monthly basis with a detailed list, exclusive of
Subservicer process errors, of Subservicer’s daily cost of funds for unreimbursed FRB return items
and provide ageing and research notes on outstanding items in the form of Exhibit O.
Subservicer shall also provide to Servicer, on or before the fifth business day of each month, a
detailed list, in the form of Exhibit O and exclusive of Subservicer process errors, of
aged unreimbursed FBR return Check items that are over 90 days outstanding. Servicer shall
reimburse Subservicer for such amounts. Servicer shall have three business days to review the cost
of funds and detailed 90-day outstanding list and either approve it or advise Subservicer of
errors. Servicer and Subservicer shall cooperate and exert reasonable efforts to correct any
errors. Servicer shall remit funds to Subservicer by wire transfer within twenty-four hours of
either the approval of the reconciliation or the correction of any errors detected by the
appropriate party. In any event, the mutually agreed upon amount must be remitted to the
Subservicer no later than the 15th day of the month (or first Business Day immediately
thereafter). Subservicer must provide any and all reasonably requested documentation to Servicer
prior to reimbursement of 90-day outstanding check returns. For purposes of this Section 6.02(d),
Subservicer shall calculate its “cost of funds” utilizing the Federal Funds Rate.

     (e) Reconciliation of Other Amounts. If at any time Servicer discovers that it has
remitted to Subservicer an amount in excess of the amounts required to be remitted by it to
Subservicer pursuant to this Section 6.02, then Servicer shall promptly notify Subservicer.
The parties shall, within ten business days from the date Servicer so notifies Subservicer,
cooperate and exert reasonable efforts to reconcile such error. Subservicer shall remit to
Servicer, by wire transfer, such reconciled amount within twenty-four hours of such resolution.

     Section 6.03. Reimbursement to Subservicer for Payments Made to Third Parties.
Subservicer shall be responsible for, and agrees to pay, all third parties’ fees and expenses on
Servicer’s behalf in connection with the performance by Subservicer of its obligations under this
Agreement (other than for transaction fees paid to VISA®, for which payments Servicer
shall reimburse Subservicer).

     Section 6.04. Payment Procedures. (a) Each Business Day, Subservicer, using activity
posted on the EDP system and evidenced in report MLR411 and report MLR665, shall total all cash
amounts posted the prior Business Day by Subservicer to Borrowers, including (but not limited to)
amounts with respect to: (i) all Check transactions posted on behalf of Borrowers, (ii) all sums
posted that day in settlement of Charges on behalf of Borrowers, (iii) all wire transfers of funds
posted that day by Subservicer on behalf of Borrowers, (iv) all sums posted that day with respect
to Borrower’s request for certified and cashier checks, and (v) all disbursement checks posted on
behalf of Borrowers. Such total amount shall be due and payable by Servicer to Subservicer.

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     (b) Each Business Day, Subservicer, using activity posted on the EDP system and evidenced in
report MLR411 and report MLR665, shall total all cash amounts posted the prior Business Day by
Subservicer from Borrowers, including (but not limited to) amounts with respect to: (i) all amounts
posted on the prior Business Day by Borrowers in satisfaction of principal outstanding under
Mortgage Loans, (ii) all amounts posted on the prior Business Day by Borrowers in satisfaction of
interest or fees under Mortgage Loans, (iii) all judgments, awards, and other sums posted on the
prior Business Day in whole or partial satisfaction of amounts due and payable to Servicer under
Mortgage Loan Documents, Mortgages, or any related documents, (iv) Returned Checks transactions
posted, (v) all amounts posted on the prior Business Day by Subservicer in respect of returned
Checks previously reimbursed to Subservicer by Servicer, chargebacks of Charges, or other
adjustments to amounts posted by Servicer, and (vi) 100% of all interchange fees in respect of
Charges. Such total amount shall be due and payable by Subservicer to Servicer.

     (c) Each Business Day, Subservicer shall prepare and deliver to Servicer settlement reports in
the form set forth on Exhibit J, titled “MLCC Equity Access Daily Reconciliation”. Such report
shall be derived from report MLR411 and report MLR665 previously delivered to Servicer, and shall
reflect a settlement of amounts posted by Subservicer on the immediately preceding Business Day.
Subservicer shall deliver such settlement reports to Servicer no later than [* * *]to which each
such settlement report relates. Each day VISA® settlement occurs, Subservicer shall, in
accordance with VISA® rules and regulations for timely settlement with VISA®,
transfer an amount equal to all Charges to be settled such day, with appropriate adjustments for
chargebacks, returns, representments and reversals. Calculation of daily net settlement shall be
based on activity posted to Borrower accounts by Subservicer and evidenced by EDP reports in the
form of the “MLCC Equity Access Daily Reconciliation” settlement report. The “MLCC Equity Access
Daily Reconciliation” shall summarize Subservicer posted daily cash activity as the basis of daily
net settlement. If the total amount of payments made by (and due to) Subservicer pursuant to
Section 6.04(a) and evidenced by the “MLCC Equity Access Daily Reconciliation” exceeds the
total amount due and payable to Servicer pursuant to Section 6.04(b), then, on the Business
Day Servicer receives such settlement report, Servicer shall pay to Subservicer via wire transfer,
an amount equal to the difference between the two sums plus one day’s interest on such
difference, calculated at the Federal Funds Rate. If the total amount due and payable to Servicer
pursuant to Section 6.04(b) and evidenced by the “MLCC Equity Access Daily Reconciliation”
exceeds the total amount of payments made by (and due to) Subservicer pursuant to Section
6.04(a), then, on the Business Day Servicer receives such settlement report, Subservicer shall
pay to Servicer via wire transfer, an amount equal to the difference between the two sums
plus [* * *].

     (d) Additional supporting schedules shall include detail for activity not in the settlement in
the form of (i) net interest / late fee activity, (ii) closing cost activity, and (iii) detailed
non-cash activity. A reconciliation of the daily cash and supporting schedules shall balance to
the daily net principal and non-principal activity on MLR411. Subservicer shall forward supporting
reports and documentation to Servicer as set forth in the Operations Guide.

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	[***] 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.

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ARTICLE VII

SOLICITATION

     Section 7.01. Solicitation. Subservicer and its Affiliates are prohibited from
soliciting any Mortgagor, or causing any Mortgagor to be solicited for prepayment of any Mortgage
Loan. Without Servicer’s prior written consent, which may be withheld by Servicer in its sole
discretion, neither Subservicer 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 through 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. Neither Servicer 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 Servicer or any
Affiliate of Servicer. Subservicer shall not prepare or disseminate, for compensation or
otherwise, any mailing lists relating to the Mortgagors, the Mortgage Loans, or otherwise,
including any lists of Mortgagors, without Servicer’s prior written consent, which may be withheld
by Servicer in its sole discretion. The parties hereto nevertheless agree that (i) either
Subservicer, Servicer 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
Subservicer, Servicer or their respective Affiliates to refinance Mortgage Loans in response to, or
as a result of, contact initiated by such the related Mortgagors or their representatives shall not
constitute solicitation.

ARTICLE VIII

ASSIGNMENT OF MORTGAGES

     Section 8.01. Assignments. There shall be no Assignments to the Subservicer for any
Mortgage Loans at any time under this Agreement.

ARTICLE IX

THIRD PARTY CONSENTS

     Section 9.01. Third Party Consents. The right and obligation to subservice Mortgage
Loans subject to a Pooling and Servicing Agreement are subject to Servicer’s obtaining, at its sole
cost and expense, the related Third Party Consents. Servicer shall use its best efforts to obtain
each Third Party Consent no later than fifteen (15) days prior to each applicable Transfer Date,
unless other dates are agreed to by the parties. Subservicer shall cooperate with Servicer in
obtaining the Third Party
Consents and shall timely respond to all reasonable requests from the applicable third parties
concerning Subservicer and its business operations. Servicer shall notify Subservicer in writing
immediately upon obtaining the Third Party Consents, and Servicer shall provide a copy of the Third
Party Consents to Subservicer. Servicer shall pay any and all costs related to obtaining any Third
Party Consent.

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ARTICLE X

CONDITIONS PRECEDENT TO OBLIGATIONS OF SUBSERVICER

     The obligations of Subservicer under this Agreement are subject to the satisfaction of the
following conditions:

     Section 10.01. Compliance and Conditions. All terms, covenants, and conditions of
this Agreement required to be complied with and performed by Servicer shall have been duly complied
with and performed by Servicer in all material respects on or before the date specified.

     Section 10.02. Corporate Resolution. Subservicer shall have received from Servicer on
or before the first Transfer Date a duly executed certificate of Servicer’s Secretary or Assistant
Secretary reciting the corporate approval by Servicer of the subservicing of the Mortgage Loans by
Subservicer and authorizing Servicer’s officers to execute such documents as may be necessary to
carry out the transactions contemplated hereby.

     Section 10.03. No Material Adverse Change. As of each applicable Transfer Date, there
shall not have been any material adverse change in the business or financial condition of Servicer
since the date of this Agreement (or since the immediately preceding Transfer Date, in the case of
any Transfer Date after the first Transfer Date), other than those that result from general changes
in economic conditions including but not limited to fluctuations in interest rates, changes to
Applicable Requirements, or changes applicable to the mortgage servicing industry generally.
Notwithstanding anything contained herein, “material adverse change” shall not include: (a) the
merger of Servicer with and into any of Servicer’s Affiliates or (b) each applicable sale and
transfer of the servicing rights to Subservicer pursuant to the Purchase and Sale Agreement or
transfer of subservicing rights as contemplated hereunder.

     Section 10.04. Financial Ability to Indemnify. Subservicer shall have received, on or
before the first Transfer Date, evidence, satisfactory to Subservicer in the exercise of its
reasonable discretion, that Servicer has the financial ability to discharge its indemnity
obligations, and any and all other financial obligations set forth herein.

     Section 10.05. Opinion of Counsel for Servicer. Subservicer shall have received, on
or before the first Transfer Date, an opinion of the in-house counsel of Servicer (or of a law firm
reasonably acceptable to Subservicer) dated as of the date of this Agreement, in form and substance
satisfactory to Subservicer in the exercise of its reasonable discretion, to the effect that: (a)
Servicer is a corporation validly existing and in good standing under the laws of its state of
organization; (b) Servicer has all requisite corporate power, authority and capacity to enter into
the Transaction Agreements and to perform the obligations required of it thereby; (c) the execution
and performance by Servicer of the Transaction Agreements, Servicer’s compliance with the terms
thereof and the consummation of the transactions contemplated thereby do not and will not conflict
with any of the terms of Servicer’s certificate of incorporation or bylaws or any similar corporate
documents of Servicer, or, as to the attorney’s knowledge any material contract or agreement, order
or decree to which Servicer is subject or by which it is bound; (d) the Transaction Agreements have
been duly executed by Servicer and each is the valid and

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legally binding obligation of Servicer
enforceable against Servicer in accordance with their 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; and (e) to the knowledge of such
counsel, there is no litigation proceeding or governmental investigation existing, pending or
threatened, or any order, injunction or decree outstanding against or relating to Servicer that is
reasonably expected to have a material adverse effect upon the performance by Servicer of its
obligations under this Agreement.

     Section 10.06. Correctness of Representations and Warranties. The representations and
warranties made by Servicer in this Agreement are true and correct in all material respects as of
each Transfer Date with respect to the subservicing rights transferred on such date, except where
another date is specified therein.

     Section 10.07. Litigation or Administrative Action. As of each Transfer Date, there
shall not have been commenced or, to the knowledge of either party hereto, threatened, any action,
suit or proceeding that enjoins, or is likely to materially and adversely affect, the consummation
of the transactions contemplated hereby.

     Section 10.08. Third Party Consents. As of each applicable Transfer Date, with
respect to the subservicing rights to be transferred on such Transfer Date, Subservicer shall have
received the applicable Third Party Consents required by Article IX.

     Section 10.09. Effective Agreements. As of each applicable Transfer Date, the
applicable Private Investor Agreements and applicable Pooling and Servicing Agreements shall be in
full force and effect. As of each
applicable Transfer Date, the Transaction Agreements shall be in full force and effect and
Servicer shall have complied in all material respects with the covenants, conditions, and
agreements applicable to it under the Transaction Agreements.

ARTICLE XI

CONDITIONS PRECEDENT TO OBLIGATIONS OF SERVICER

     The obligations of Servicer under this Agreement are subject to the satisfaction of the
following conditions:

     Section 11.01. Compliance with Conditions. All terms, conditions and covenants of
this Agreement required to be complied with and performed by Subservicer shall have been duly
complied with and performed by Subservicer in all material respects on or before the date
specified.

     Section 11.02. Corporate Resolution. Servicer shall have received from Subservicer on
or before the first Transfer Date a duly executed certificate of Subservicer’s Secretary or
Assistant Secretary reciting the corporate approval by Subservicer of the subservicing of the
Mortgage Loans and authorizing Subservicer’s officers to execute such documents as may be necessary
to carry out the transactions contemplated hereby.

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     Section 11.03. Correctness of Representations and Warranties. The representations and
warranties made by Subservicer in this Agreement are true and correct in all material respects as
of each applicable Transfer Date with respect to the subservicing rights transferred on such date,
except where another date is specified therein.

     Section 11.04. Third Party Consents. As of each applicable Transfer Date, with
respect to subservicing rights to be transferred on such Transfer Date, Servicer shall have
received the Third Party Consents required by Article IX.

     Section 11.05. Opinion of Counsel for Subservicer. Servicer shall have received, on
or before the first Transfer Date, an opinion of the in-house counsel of Subservicer (or of a law
firm reasonably acceptable to Servicer) dated as of the date of this Agreement, in form and
substance satisfactory to Servicer in the exercise of its reasonable discretion, to the effect
that: (a) Subservicer is a corporation validly existing and in good standing under the laws of its
state of organization; (b) Subservicer has all requisite corporate power, authority and capacity to
enter into the Transaction Agreements and to perform the obligations required of it thereby; (c)
the execution and performance by Subservicer of the
Transaction Agreements, Subservicer’s compliance with the terms thereof and the consummation
of the transactions contemplated thereby do not and will not conflict with any of the terms of
Subservicer’s Certificate of Incorporation or Bylaws or any similar corporate documents of
Subservicer, or, as to the attorney’s knowledge, any material contract or agreement, order or
decree to which Subservicer is subject or by which it is bound; (d) the Transaction Agreements have
been duly executed by Subservicer and each is the valid and legally binding obligation of
Subservicer enforceable against Subservicer in accordance with their 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; and (e) to the knowledge
of such counsel, there is no litigation proceeding or governmental investigation existing, pending
or threatened, or any order, injunction or decree outstanding against or relating to Subservicer
that is reasonably expected to have a material adverse effect upon the performance by Subservicer
of its obligations hereunder.

     Section 11.06. No Material Adverse Change. As of each applicable Transfer Date, there
shall not have been any material adverse change in the business or financial condition of
Subservicer since the date of this Agreement (or since the immediately preceding Transfer Date, in
the case of any Transfer Date after the first Transfer Date), other than those that result from
general changes in economic conditions including but not limited to fluctuations in interest rates,
changes to Applicable Requirements, or changes applicable to the mortgage servicing industry
generally. Notwithstanding anything contained herein, “material adverse change” shall not include
the merger of Subservicer with and into any of Subservicer’s Affiliates.

     Section 11.07. Financial Ability to Indemnify. Servicer shall have received, on or
before the first Transfer Date, evidence, satisfactory to Servicer in the exercise of its
reasonable discretion, that Subservicer has the financial ability to discharge its indemnity
obligations, and any and all other financial obligations set forth herein.

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     Section 11.08. Effective Agreements. As of each applicable Transfer Date, the
applicable Private Investor Agreements and applicable Pooling and Servicing Agreements shall be in
full force and effect. As of each applicable Transfer Date, the Transaction Agreements shall be in
full force and effect and Subservicer shall have complied in all material respects with the
covenants, conditions, and agreements applicable to it under the Transaction Agreements.

ARTICLE XII

ANNUAL CERTIFICATIONS

     Section 12.01. Annual Statement as to Compliance. The Subservicer will deliver to the Servicer on or before March 1 of each year, beginning
with March 1, 2003, a certificate signed by a senior vice president or more senior officer stating
that (i) a review of the activities of the Subservicer 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 Subservicer 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 12.02. Annual Independent Certified Public Accountants’ Servicing Reports. On
or before March 1 of each year, beginning with March 1, 2003, the Subservicer at its expense shall
cause a nationally recognized firm of independent certified public accountants that is a member of
the American Institute of Certified Public Accountants to furnish a report to the Servicer to the
effect that (i) all Mortgage Loans subserviced by the Subservicer 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 Subservicer relative to the Subservicer’s EDP and has determined that
such system has been suitably designed to subservice the Mortgage Loans pursuant to this Agreement.

     (a) Prior to execution of this Agreement, the Subservicer at its expense shall have caused,
and annually thereafter within 90 days after the close of the Subservicer’s fiscal year, beginning
with the close of the 2000 fiscal year, the Subservicer 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 Servicer audited financial statements of the
Subservicer 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 Servicer.

     (b) On or before March 1 of each year, beginning March 1, 2003, the Subservicer, at its
expense, shall cause the Subservicer’s EDP licensor to furnish its Statement of Auditing

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Standards
(“SAS”) 70 Report (Report on the Processing of Transactions by Service Organizations) to
the Servicer.

ARTICLE XIII

INDEMNIFICATION

     Section 13.01. Indemnification of Subservicer. Servicer shall indemnify and hold Subservicer, its officers, directors, employees and
agents (the “Subservicer Indemnified Parties”) harmless from, and will reimburse the
Subservicer Indemnified Parties for, any and all Losses incurred by any of the Subservicer
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 Servicer in this Agreement or in any schedule,
exhibit, or certificate furnished pursuant hereto;

     (b) Any material breach of any representations and warranties of Servicer or the
nonfulfillment of any term, covenant, condition, or obligation of Servicer set forth in this
Agreement or in any schedule, statement, exhibit, or certificate furnished pursuant hereto, or any
default or failure to perform by Servicer hereunder;

     (c) Any liabilities or obligations, contingent or otherwise, of Servicer of any nature
whatsoever relating to Servicer’s obligations under this Agreement (other than those specifically
assumed by Subservicer under this Agreement), to the extent that any related Loss to Subservicer is
not increased by negligence, bad faith or willful misconduct on the part of Subservicer;

     (d) The fact that any Advance is not fully collectible after reasonable good faith efforts on
the part of Subservicer to collect the Advance.

     (e) Any failure of the Servicer to perform default servicing activities in accordance with the
related Pooling and Servicing Agreement for any Complex Defaulted Mortgage Loan, as described in
Section 2.07.

     The indemnity provided in this Section 13.01 shall remain in full force and effect
regardless of any investigation made by Subservicer or its representatives.

     Section 13.02. Repurchase of Mortgage Loans. In the event Servicer repurchases a
Mortgage Loan, Subservicer will follow such directions and provide such reports as may be required
by the Servicer. Upon repurchase, MLCC will be the owner of the Mortgage Loan which shall be
subserviced by the Subservicer pursuant to the terms of this Agreement.

     Section 13.03. Indemnification of Servicer. Subservicer shall indemnify and hold
Servicer, its officers, directors, employees and agents (the “Servicer Indemnified
Parties”) harmless from, and will reimburse the Servicer Indemnified Parties for, any and all
Losses incurred by any of the Servicer Indemnified Parties to the extent that such Losses result
from, are caused by or arise out of any one or more of the following:

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     (a) Any material misrepresentations made by Subservicer 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 Subservicer or the
nonfulfillment of any term, covenant, condition or obligation of Subservicer set forth in this
Agreement or in any schedule, statement, exhibit, or certificate furnished pursuant hereto, or any
default or failure to perform by Subservicer hereunder;

     (c) Any failure of Subservicer to comply with the terms of any Private Investor Agreement, or
any Pooling and Servicing Agreement or any other Applicable Requirements in connection with
subservicing the Mortgage Loans;

     (d) Any liabilities or obligations, contingent or otherwise, of Subservicer of any nature
whatsoever relating to Subservicer’s obligations under this Agreement, to the extent that any
related Loss to Servicer is not increased by negligence, bad faith or willful misconduct on the
part of Servicer;

     (e) Any non-compliance with the terms of any powers of attorney or the use thereof that
results in a Loss to Servicer; or

     (f) Any failure by Subservicer to deliver a Distribution Certificate in accordance with
Section 5.01.

     The indemnity provided in this Section 13.03 shall remain in full force and effect
regardless of any investigation made by Servicer or its representatives.

     Section 13.04. 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 XIII, 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 seven (7) Business Days, provide the other party with a notice describing
the same. Failure to provide a notice within such seven (7) Business Day period shall not relieve
such other party of its obligations under this Article XIII, 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 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

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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
XIII, 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 XIII, 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 a Trustee, Insurer or third-party
claimant.

ARTICLE XIV

DEFAULT AND TERMINATION

     Section 14.01. Termination by Servicer; Events of Default. In case one or more of the
following events (each, an “Event of Default”) shall occur and be continuing:

     (a) any failure by the Subservicer to timely remit to the Servicer or any Trustee any payment
required to be made under the terms of this Agreement; or

     (b) any material breach by the Subservicer 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 such lesser time as is provided to the Servicer under the
applicable Pooling and Servicing Agreement; or

     (c) there shall have occurred under any Transaction Agreement a default by the Subservicer; or

     (d) following entry against the Subservicer 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
Subservicer 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
Subservicer’s affairs, if such decree or order has remained in force undischarged or unstayed for a
period of sixty (60) days, or

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     (e) upon consent by the Subservicer 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 Subservicer or of
or relating to all or substantially all of the Subservicer’s property; or

     (f) upon the Subservicer’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

     (g) the Subservicer 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

     (h) any failure by Subservicer to deliver a Distribution Certificate in accordance with
Section 5.01; or

     (i) the Subservicer fails to meet a “Service Standard” set forth in Section I of the
Operations Guide and the Subservicer fails to remedy such deficiency within the ninety (90) day
time period set forth in Section 14.02(b); or

     (j) any downgrade, withdrawal, or qualification by a Rating Agency of its rating of any
outstanding class of Certificates due to an act or omission of the Subservicer; or

     (k) a Trust Fund ceases to qualify as a REMIC due to an act or omission of the Subservicer;

then and in each and every such case, the Servicer may, by notice in writing to the Subservicer,
terminate this Agreement and exercise any other rights and remedies that the Servicer may have at
law or in equity, including, without limitation, the right to damages, injunctive relief and
specific performance. In addition to the foregoing, in the event that (A) a Subservicer Competitor
Change of Control shall have occurred, then at any time after Servicer shall have received notice
of such Subservicer Competitor Change of Control, Servicer may, by giving written notice thereof to
Subservicer, terminate this Agreement as of a future date specified in such notice of termination;
or (B) a Subservicer Change of Control (other than a Subservicer Competitor Change of Control)
shall have occurred, then at any time within 30 days after the two year anniversary of such
Subservicer Change of Control, Servicer may, by giving written notice thereof to Subservicer,
terminate this Agreement as of a future date specified in such notice of termination. On or after
the receipt by the Subservicer of written notice of termination of this Agreement, all authority
and power of the Subservicer 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 15.01. Upon written
request from the Servicer, the Subservicer 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,

57

 

at the Subservicer’s sole expense. The Subservicer agrees to cooperate
with the Servicer and such successor in effecting the termination of the Subservicer’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 Subservicer to any Mortgage Loan or thereafter received with respect to the
Mortgage Loans.

     Section 14.02. Failure of Subservicer to Maintain Service Standards; Termination. (a)
If, as evidenced by the monthly reports that Subservicer is required to furnish to Servicer
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 Servicer’s
request Subservicer shall develop a plan describing the countermeasures and targets/goals
Subservicer will use to correct the Service Deficiency, and Subservicer shall present such plan to
Servicer within 15 days after Servicer has notified Subservicer of the Service Deficiency. Within
15 days after receiving the plan from Subservicer, Servicer shall either (x) accept the plan or (y)
instruct Subservicer to modify the plan, and, in the case of clause (y), Subservicer shall make
such modifications. Unless Servicer agrees otherwise, Subservicer shall cure the Service
Deficiency within 60 calendar days (the “Level I Curative Period”) from the date on which
Servicer has accepted the plan or notified Subservicer of the modifications to be made to the plan.

     (b) If Subservicer fails to correct any Service Deficiency by the end of the Level I Curative
Period, then, for a period not to exceed 90 days from the end of any Level I Curative Period,
Subservicer shall pay Servicer liquidated damages of $[* * *]. Subservicer shall pay such
liquidated damages to Servicer by wire transfer of immediately available funds within [* * *]. If
a Service Deficiency has not been cured within such 90-day period, Servicer may at its sole option,
within sixty (60) days thereafter, require Subservicer to solicit bids for an alternative
subservicer as provided in Section (d) below.

     (c) If a Service Deficiency has not been cured and Servicer elects not to require Subservicer
to solicit bids for an alternative subservicer as provided for in Section (d) below,

 

			
	[***] 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.

58

 

then within fifteen (15) days of
Servicer’s request, Subservicer shall develop and present a
plan to Servicer describing new countermeasures and targets/goals that Subservicer will use to
correct the Service Deficiency. Following receipt of the plan, Subservicer and Servicer shall
follow and be subject to the requirements of Section 14.02(a) and (b), including
but not limited to the liquidated damages provisions.

     (d) In the event that Servicer shall have the right to require Subservicer to solicit bids for
an alternative subservicer as provided in (b) above, then Subservicer, upon Servicer’s written
demand, shall proceed as follows:

     (i) Subservicer shall prepare a request for proposal (“RFP”) for an alternative
subservicer to assume Subservicer’s obligations relating to its obligations hereunder.
Subservicer shall submit such RFP to Servicer for review within thirty (30) days of
Servicer’s written demand that Subservicer solicit bids for an alternative subservicer.
Subservicer shall incorporate Servicer’s reasonably requested revisions to such RFP within
ten (10) days of Subservicer’s receipt of Servicer’s requested revisions.

     (ii) Subservicer shall submit the final RFP to no less than three (3) residential
Mortgage Loan servicers reasonably chosen by Servicer.

     (iii) Subservicer shall select the bid requested by Servicer.

     (iv) Subservicer shall pay the costs of the entity chosen by Servicer as the
alternative subservicer to assume Subservicer’s obligations hereunder. If, however, the bid
selected by Servicer is the highest bid and such bid [* * *], then Servicer shall be
responsible for the difference between the selected bid and [* * *].

     (e) The remedies set forth in this Section 14.02 shall be in furtherance of, and not
in limitation of, Servicer’s remedies under this Agreement.

     Section 14.03. Waiver of Defaults. The Servicer, by notice in writing to the
Subservicer, may waive any default by the Subservicer 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 14.04. Term of Agreement; Termination Without Cause. (a) This Agreement
shall automatically expire and terminate upon the earlier of (i) December 31, 2004 (the
“Initial Termination Date”) or (ii) the date upon which the Origination Agreement is
terminated in accordance with the terms thereof. In the event this Agreement has not earlier
terminated, the respective obligations and responsibilities of the Subservicer shall terminate
without cause and without payment by either party of any penalty or termination fee (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

 

[***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH

59

 

THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

60

 

remittance of all funds due hereunder or (ii) by mutual consent of the Subservicer and the
Servicer in writing.

     (b) Servicer may elect to terminate this Agreement without cause prior to the end of the
Initial Termination Date of this Agreement upon one hundred eighty (180) days prior written notice
to Subservicer. Within five (5) Business Days of the effective date of any such termination, the
Servicer shall pay to the Subservicer an early termination fee that shall be equal to the
Subservicing Fees earned by Subservicer during the last three full months under this Agreement.

     (c) Servicer may elect to terminate this Agreement without cause and without payment to the
Subservicer of any penalty or termination fee at any time after the Initial Termination Date of
this Agreement upon one hundred eighty (180) days prior written notice to Subservicer.

     (d) The Subservicer acknowledges that in the event MLCC is terminated as the Servicer under
any Pooling and Servicing Agreement, the Trustee or successor Servicer thereunder has the option to
terminate this Agreement and the rights of the Subservicer to subservice the Mortgage Loans,
without cause and without penalty or payment of a termination fee to the Subservicer. In event of
such termination of the Subservicer, (i) if the Subservicer is terminated prior to the end of the
Initial Termination Date of this Agreement, within five (5) Business Days after the effective date
of termination, the Servicer shall pay a termination fee to the Subservicer that shall be equal to
[* * *] or (ii) if the Subservicer is terminated after the end of the Initial Termination Date of
this Agreement, the Subservicer shall not be entitled to any penalty or termination fee from the
Servicer.

     Section 14.05. Effect of Termination of Agreement. (a) In the event this Agreement
is terminated pursuant to the provisions hereof, this Section 14.05, Article XIII,
Sections 7.01, 14.02, 17.02, 17.03, 17.05 and 17.17
shall remain in effect after such termination, and all provisions relating to the allocation of
responsibility for costs incurred by Servicer and/or Subservicer shall remain in effect with
respect to acts occurring before such termination.

     (b) If Servicer, Trustee or successor Servicer under a Pooling and Servicing Agreement,
terminates this Agreement, and Servicer terminates any or all of the other Transaction Agreements
(to the extent Servicer is permitted to do so), the remedies for liquidated damages set forth in
Section 14.02 shall not apply as to any Mortgage Loan that Subservicer continues to
subservice.

ARTICLE XV

SUCCESSOR TO THE SUBSERVICER

     Section 15.01. Successor to the Subservicer. Upon termination of Subservicer’s
responsibilities and duties under this Agreement, the Servicer, applicable Trustee or successor
Servicer, or successor Subservicer, shall service or

 

[***] 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.

61

 

subservice the applicable Mortgage Loans under such terms and conditions as such parties may
agree.

     (a) In the event that the Subservicer’s duties, responsibilities and liabilities under this
Agreement should be terminated, the Subservicer 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, a Trustee or Certificateholder under any Pooling and
Servicing Agreement or a Private Investor. The resignation or removal of Subservicer shall not
relieve the Subservicer of any representations, warranties, covenants or agreements made in
connection herewith or affect the remedies available to the Servicer hereunder, it being understood
and agreed that such provisions shall be applicable to the Subservicer notwithstanding any such
resignation or termination of the Subservicer, or the termination of this Agreement.

     (b) Any termination or resignation of the Subservicer or termination of this Agreement shall
not affect any claims that the Servicer may have against the Subservicer due to any failure of the
Subservicer to comply with the terms of this Agreement prior to any such termination or
resignation.

     (c) The Subservicer, in a timely and reasonable manner, but in any event no later than two (2)
Business Days after the effective date of any termination or permitted resignation of the
Subservicer or termination of this Agreement, shall deliver to the Servicer, applicable Trustee or
successor Servicer, or successor Subservicer (i) any funds held in connection with the Mortgage
Loans and (ii) the mortgage files and related documents and statements and computer files held by
it hereunder, and the Subservicer shall account for all funds. The Subservicer 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 Servicer, applicable Trustee or successor Servicer, or
successor Subservicer all such rights, powers, duties, responsibilities, obligations and
liabilities of the Subservicer. The Servicer or new Subservicer shall make arrangements as it may
deem appropriate to reimburse the Subservicer for amounts the Subservicer actually expended
pursuant to this Agreement that the Servicer or successor Subservicer is entitled to retain
hereunder and that would otherwise have been reimbursable to the Subservicer pursuant to this
Agreement but for the termination of the Subservicer.

ARTICLE XVI

ANTI-MONEY LAUNDERING

     Section 16.01. Compliance. (a) Subservicer shall at all times undertake and perform
the requirements set forth in Servicer’s anti-money laundering policies and procedures (as of the
date hereof, policies and procedures nos. 2000-25, 2000-13 and 98-048) as the same may be amended
from time to time (the “BSA Policies and Procedures”). The BSA Policies and Procedures are
attached hereto as Exhibit G. Servicer represents and warrants that as of the date hereof, Servicer
complies with its anti-money laundering policies and procedures (as of the date

62

 

hereof, policies
and procedures nos. 2000-25, 2000-13 and 98-048). Notwithstanding the foregoing, if the
representation contained in the immediately preceding sentence is inaccurate as of the date made as
to any specific part of the BSA Policies and Procedures (the “Non-Compliant Procedure”),
Subservicer shall not be obligated to comply with such Non-Compliant Procedure to the extent that
(i) Servicer does not comply with such Non-Compliant Procedure as of the date hereof and (ii)
Subservicer is not in compliance with such Non-Compliant Procedure as of the date such inaccuracy
is discovered; provided, that upon discovery of the inaccuracy of such representation,
Subservicer shall promptly notify Servicer in writing of such inaccuracy and shall indicate in such
notice the Non-Compliant Procedure. Within five (5) Business Days after receipt of such notice,
Servicer shall notify Subservicer of whether Servicer desires Subservicer to follow such
Non-Complying Procedure. If Servicer notifies Subservicer that it desires Subservicer to follow
such Non-Compliant Procedure, Subservicer shall have the right to propose an adjustment to the
Subservicing Fee in accordance with the procedures set forth in Section 17.04(d). For the
avoidance of doubt, nothing contained in this Section 16.01 shall relieve Subservicer’s
obligation to subservice the Mortgage Loans in accordance with applicable law. Subservicer 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 Subservicer retains the services
of a third party vendor to process the receipt of funds from Mortgagors (hereafter, a “Lock-Box
Vendor”), Subservicer shall first obtain Servicer’s consent to the selection of such Lock-Box
Vendor, which consent shall not be unreasonably withheld. Further, Subservicer 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) Subservicer shall be responsible for assuring compliance by Servicer with Servicer’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, Subservicer shall have: (i) appointed a suitable
officer of Subservicer 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 Servicer or a third party vendor at Servicer’s expense; and (iii) implemented policies,
procedures and internal controls to undertake the BSA Policies and Procedures and shall have
provided Servicer with photocopies of internal memoranda and other documents of Subservicer setting
forth such policies, procedures and internal controls.

     (d) Failure of Subservicer to comply with the terms of this Article XVI in all
material respects, including without limitation, the failure of Subservicer to take any remedial
action called for by Servicer as described in subsection (f) below, shall constitute a Service
Deficiency for purposes of Section 14.02.

     (e) Subservicer shall indemnify Servicer for any financial losses resulting from Subservicer’s
failure to comply with the BSA Policies and Procedures.

63

 

     (f) Servicer, upon reasonable notice, may audit and test Subservicer’s compliance with the
provisions of the BSA Policies and Procedures. Any such audit or test may be conducted by
Servicer’s internal auditors or other employees or by an outside auditing firm. If Servicer
detects weaknesses in or exceptions to Subservicer’s compliance with the BSA Policies and
Procedures, Servicer shall notify Subservicer of its findings, and Subservicer shall immediately
undertake the remedial action suggested by Servicer and shall report to Servicer on the action
taken.

ARTICLE XVII

MISCELLANEOUS

     Section 17.01. Supplementary Information. From time to time before and after each
applicable Transfer Date, Servicer shall furnish to Subservicer such information supplementary to
the information contained in the documents and schedules delivered pursuant hereto which is
reasonably available to Servicer as Subservicer may reasonably request in writing and/or which may
be necessary to enable Subservicer to file any reports or respond to Mortgagor or Trustee inquiries
in connection with the Mortgage Loans or subservicing rights so long as furnishing such information
does not violate the Applicable Requirements.

     Section 17.02. Access to Information; Confidentiality. (a) Upon reasonable prior
notice, (i) Servicer shall afford reasonable cooperation to Subservicer and its counsel,
accountants and other representatives (collectively, “Subservicer’s Representatives”) in
providing reasonable access during normal business hours through each Transfer Date to examine
Servicer’s files, books and records with respect to the related Mortgage Loans and subservicing
rights and (ii) Subservicer shall afford reasonable cooperation to Servicer and its counsel,
accountants and other representatives (collectively, “Servicer’s Representatives”) in providing
reasonable access during normal business hours after each Transfer Date to examine Subservicer’s
files, books and records with respect to the related Mortgage Loans and subservicing rights.
Servicer shall be entitled to take reasonable and appropriate actions to assure that Subservicer
maintains the confidentiality of the names and addresses of the Mortgagors under the Mortgage Loans
and all non-public information obtained in such investigation that could reasonably be construed to
be of a confidential or proprietary nature. Subservicer and Subservicer’s Representatives shall
treat as confidential all information obtained in such investigation and not otherwise in the
public domain. Each party shall, upon reasonable notice to the other party, provide the other
party with access to its premises during normal working hours and access to reasonable cooperation
with its officers and employees. The salaries, travel, subsistence and other related expenses for
the visiting party shall be borne by such party. The party being visited shall, at its expense,
make available all customary, reasonable office space, facilities, and equipment for the visiting
party.

     (b) Subservicer shall, and shall cause Subservicer’s Representatives and Subservicer’s
Affiliates to, hold in confidence and not disclose to any third party without Servicer’s prior
written consent, all information relating to Servicer received by Subservicer, Subservicer’s
Representatives and/or Subservicer’s Affiliates in connection with the transactions contemplated

64

 

herein, other than information (i) received by Subservicer, Subservicer’s Representatives or
Subservicer’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.

     (c) Servicer shall, and shall cause Servicer’s Representatives and Servicer’s Affiliates to,
hold in confidence and not disclose to any third party without Subservicer’s prior written consent,
all information relating to Subservicer received by Servicer and/or Servicer’s Representatives in
connection with the transactions contemplated herein, other than information (i) received by
Servicer or Servicer’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.

     (d) Subservicer acknowledges that Servicer is licensed as a mortgage
lender/originator/servicer in numerous jurisdictions and that, pursuant to such licenses and
similar licenses, Servicer 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 Servicer is required to produce
any such mortgage loan servicing information, Subservicer shall make all such information available
to Servicer in a timely manner at Servicer’s cost and expense, provided that Subservicer’s
dissemination of such information does not violate the Applicable Requirements.

     (e) This Section 17.02 shall survive any termination of this Agreement.

     Section 17.03. No Broker’s Fees. Each party hereto represents and warrants to the
other that it has made no agreement to pay any agent, finder, or broker or any other
representative, any fee or commission in the nature of a finder’s or broker’s fee arising out of or
in connection with the subject matter of this Agreement. The parties hereto covenant with each
other and agree to indemnify and hold each other harmless from and against any such obligation or
liability and any Losses incurred by the other in investigating or defending any claim based upon
the other party’s actions under this Section. This Section 17.03 shall survive any
termination of this Agreement.

     Section 17.04. Further Assurances. (a) Servicer and Subservicer 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.

65

 

     (c) Servicer and Subservicer shall each execute and deliver to each other all such other
instruments or documentation as either may reasonably request in order to effect the transfer,
assignment and delivery to Subservicer of the subservicing rights which are the subject of this
Agreement.

     (d) If, after the date hereof, a material change in any Applicable Requirement shall have had
a material, negative economic impact on either Party, then such Party may propose an adjustment to
the Subservicing Fee paid to Subservicer pursuant to Article VI. The non-proposing Party
agrees to consider such proposal in good faith, provided that the proposing Party provides,
upon the reasonable request of the non-proposing Party, documentation evidencing such negative
economic impact.

     Section 17.05. 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 the
subservicing of which is transferred on those dates.

     Section 17.06. 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 transfer of the subservicing rights to Subservicer and that is in effect on each applicable
Transfer Date 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 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 17.07. 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 Servicer or Subservicer, as applicable.

     Section 17.08. Assignability. Neither Servicer nor Subservicer shall assign this
Agreement, or delegate any duty hereunder, without the prior written consent of the other party and
without having complied with all applicable provisions of the Pooling and Servicing Agreements,
including but not limited to having obtained any necessary Third Party Consents. 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 that (i) such
party’s Affiliate is an Affiliate as of the date hereof and has the ability to perform the
obligations of the Subservicer hereunder and (ii) such party has complied with all applicable

66

 

provisions of the Pooling and Servicing Agreements, including but not limited to having obtained
any necessary Third Party Consents.

     Section 17.09. Certain Costs. Unless otherwise set forth in this Agreement, each
party shall bear their respective costs in fulfilling their responsibilities herein.

     Section 17.10. 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 Subservicer, 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

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 Servicer, to:

	 	 	 	 	 
	 	 	Merrill Lynch Credit Corporation

4802 Deer Lake Drive East

Jacksonville, Florida 32246
	 

	 	Attn:
	 	President

With a copy to:

	 	 	 	 	 
	 	 	Merrill Lynch Credit Corporation

4802 Deer Lake Drive East

67

 

	 	 	 	 	 
	 	 	Jacksonville, Florida 32246
	 

	 	Attn:
	 	General Counsel

Ph.: (904) 218-8830

Fax: (904) 218-8848

or to such other address as Subservicer or Servicer shall have specified in writing to the other.

     Section 17.11. Entire Agreement; Construction. (a) This Agreement constitutes the
entire agreement between the parties with respect to the subject matter hereof. Except as set
forth in paragraph (b) below, 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, 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.

     (b) Subservicer agrees that Exhibit C hereto may be amended by Servicer during the
month of January 2003 and during every second January thereafter by sending written notice to
Subservicer 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 C shall be Persons which are Financial Services Firms and (ii) Exhibit
C shall not at any time contain more than twenty Persons.

     Section 17.12. 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 17.13. 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 17.14. Applicable Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the state of New York.

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     Section 17.15. 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 exchange by telefax of executed signature pages to this Agreement
shall be binding upon the parties, with original, signed Agreements to follow by overnight mail.

     Section 17.16. 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 17.17. 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.

     Section 17.18. 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 17.19. 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 17.20. Merger or Consolidation of Servicer and Subservicer. (a) Servicer and
Subservicer 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 Servicer’s right to terminate this Agreement upon the occurrence of a
Subservicer Change of Control or a Subservicer Competitor Change of Control, any entity into which
Servicer or Subservicer may be merged or consolidated, or any entity resulting from any merger,
conversion or consolidation to which Servicer or Subservicer shall be a party, or any entity
succeeding to the business of Servicer or Subservicer, shall be the successor of Servicer or
Subservicer 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, the successor or surviving entity shall be an institution whose business is the
origination or servicing of mortgage loans, unless otherwise consented to by Subservicer or
Servicer, as

69

 

applicable, and shall be qualified to service mortgage loans on behalf of FNMA and to
subservice the Mortgage Loans under each of the Pooling and Servicing Agreements.

     Section 17.21. Termination Assistance. (a) Upon expiration or termination of all or
part of the MLCC Services for any reason, Subservicer shall for a period of one (1) year (the
“Termination Assistance Period”), upon Servicer’s request and at Servicer’s expense,
continue to provide the MLCC Services that were
provided prior thereto (“Termination Assistance Services”). In providing Termination
Assistance Services, Subservicer shall provide such reasonable cooperation and technical assistance
to Servicer, or to a third-party service provider designated by Servicer, as required to facilitate
the transfer of the affected MLCC Services to Servicer or such third-party service provider. The
rights of Servicer 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 Subservicer 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
Subservicer in complying with this Section 17.21(a).

     (b) If and to the extent requested by Servicer, whether prior to, upon, or following any
termination of this Agreement, Subservicer shall reasonably assist Servicer 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) For a period of six (6) months following the Termination Assistance Period, Subservicer
shall: (i) answer all reasonable and pertinent verbal or written questions from Servicer regarding
the MLCC Services on an “as needed” basis; and (ii) deliver to Servicer any remaining
Servicer-owned reports and documentation still in Subservicer’s possession.

[Signature page follows.]

70

 

     IN WITNESS WHEREOF, MERRILL LYNCH CREDIT CORPORATION and CENDANT MORTGAGE CORPORATION
have caused this Agreement to be executed by their respective officers thereunto duly authorized as
of the date first above written.

	 	 	 	 	 
	MERRILL LYNCH CREDIT CORPORATION	 	 
	 
	 	 	 	 
	By:

	 	/s/ Lawrence P. Washington
 

	 	 
	Name:

Title:	 	 
	 
	 	 	 	 
	CENDANT MORTGAGE CORPORATION	 	 
	 
	 	 	 	 
	By:

	 	/s/ Joseph Sutter
 

	 	 
	Name: Joseph Sutter

Title: Senior Vice President	 	 

71

 

 

EQUITY ACCESS® AND OMEGASM LOAN SUBSERVICING AGREEMENT

AMENDMENT AGREEMENT (FIDELITY CONVERSION)

By and Between

MERRILL LYNCH CREDIT CORPORATION

AND

PHH MORTGAGE CORPORATION

Dated as of

March 14, 2006

 

 

 

EQUITY ACCESS® AND OMEGASM LOAN SUBSERVICING AGREEMENT AMENDMENT AGREEMENT (FIDELITY CONVERSION)

          This Amendment Agreement (Fidelity Conversion) dated as of March 14, 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 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 Equity Access® and OmegaSM Loan
Subservicing Agreement dated as of June 6, 2002 (as amended and supplemented as of the date hereof,
the “Equity Access Agreement”); and

          WHEREAS, MLCC and PHH desire to reflect properly their agreement with respect to certain
matters relating to the extension of the Equity Access Agreement and the conversion of certain
information technology systems utilized in the performance of PHH’s obligations under the Equity
Access Agreement, as set forth below;

          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 Equity Access Agreement. The Equity Access Agreement is
hereby amended as follows:

     Section 1.01 Section 1.01. The following definitions are added to Section 1.01 in
alphabetical order:

“Active Loan” means any HELOC Loan that had an Outstanding Principal Balance
greater than zero and/or had accrued and unpaid interest due during the month. A
HELOC Loan shall be considered “active” for the month in which such HELOC Loan is
paid in full.

“Active Loan Servicing Fee means, as applicable, (a) from the date hereof
until the Fidelity Conversion Date $[* * *] or (b) if the Initial Termination Date
shall be determined pursuant to clause (ii) of Section 14.04 hereof, (i) from the
Fidelity Conversion Date until the first anniversary thereof (“Year One”),
$[* * *], (ii) during the year following the first anniversary of the Fidelity
Conversion Date (“Year Two”), $[* * *], and (iii) during the year following
the second anniversary of the Fidelity Conversion Date (“Year Three”), $[* *
*]; provided, however, that (A) in the event that the total number of
Mortgage Loans subserviced during [* * *], the Active Loan Servicing Fee for [* * *]
shall be $[* * *] and (B) in the event that the total number of Mortgage Loans
subserviced during [* * *], the Active Loan Servicing Fee for [* * *] shall be $[* *
*].”

 

[***] 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.

1

 

“Fidelity Conversion Date means the date on which all Mortgage Loans
are subserviced on the Fidelity system, as further described in Section 14.04(a)
below.

“Inactive Loan” means any HELOC Loan other than an “active” HELOC Loan.

“Inactive Loan Servicing Fee means, as applicable, (a) from the date hereof
until the Fidelity Conversion Date, $[* * *] or (b) if the Initial Termination Date
shall be determined pursuant to clause (ii) of Section 14.04 hereof, (i) during [* *
*], $[* * *], (ii) during [* * *], $[* * *], and (iii) during [* * *] $[* * *];
provided, however, that (A) in the event that the total number of
Mortgage Loans subserviced during [* * *], the Inactive Loan Servicing Fee for [* *
*] shall be $[* * *] and (B) in the event that the total number of Mortgage Loans
subserviced during [* * *], the Inactive Loan Servicing Fee for [* * *] shall be $[*
* *].”

“Year One means the twelve month period beginning on the Fidelity Conversion
Date and ending on the first anniversary of the Fidelity Conversion Date.”

“Year Two means the twelve month period beginning on the first anniversary
of the Fidelity Conversion Date and ending on the second anniversary of the Fidelity
Conversion Date”

“Year Three means the twelve month period beginning on the second anniversary
of the Fidelity Conversion Date and ending on the third anniversary of the Fidelity
Conversion Date”

 (b) Section 1.01. The definition of “EDP” contained in Section 1.01 is hereby amended
in its entirety to read as follows:

“EDP means (a) on and after the Fidelity Conversion Date, the electronic data
processing system commonly referred to as the “Fidelity” system and (b) prior to the
Fidelity Conversion Date, the MLCC computer tracking system used by MLCC as of
January 1, 2001 to service Equity Loans, which computer tracking system is licensed
to Subservicer pursuant to the Licensing Agreement, or (c) such other computer
tracking system that Subservicer may utilize from time to time to subservice the
Equity Loans, provided, that such other computer tracking system enables
Subservicer to perform its obligations under this Agreement, including its obligation
to produce the reports and provide the information required to be provided to the
Servicer hereunder.”

	 	(c)	 	Section 2.01(h). Section 2.01(h) is hereby amended in its entirety by
replacing the text thereof with the following text: “With the exception of (i) Ancillary
Fees, (ii) reasonable and customary wire transfer fees and (iii) any other reasonable and
customary charges, including but not limited to charges expressly permitted by the Mortgage
Note, Mortgage and Applicable Requirements (“Allowed Fees”), the Subservicer covenants and
agrees

 

[***] 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.

2

 

	 	 	 	that it will not, without the prior written consent of the Servicer, charge or collect
from any Mortgagor, or trustee under a deed of trust, any fees, other than Allowed Fees, of
any kind including, but not limited to, charges for amounts expended by the Subservicer,
regardless of the characterization of the fee or charge.”
	 
	 	d)	 	Section 2.02. The following sentence is added to Section 2.02 as the second
sentence thereof: “At no time shall Subservicer have any legal or beneficial interest in
any Mortgage Loan or Mortgage Loan Document, but only a custodial interest as provided in
this Section 2.02 and Servicer shall at all times retain all of the legal and beneficial
interests in each Mortgage Loan and Mortgage Loan Document.”
	 
	 	e)	 	Section 2.09. Section 2.09 is amended in its entirety to read as follows:

          “Section 2.09. Use of EDP; Conversion to Fidelity. (a) Nabanco/First Data
EDP. Other than as set forth in Section 2.09(c) and other than as provided in the Asset
Purchase Agreement, dated as of December 15, 2000, between Servicer and Subservicer, throughout the
term of this Agreement, Subservicer shall pay [* * *] Dollars per [* * *] in payment for its use
of, and access to, the EDP system commonly referred to as “Nabanco”. Such $[* * *] shall include
all cost and expenses associated with the maintenance, use and service of such system and any
third-party user or license fees. Subservicer shall continue to pay Servicer said sum for Nabanco
until the Fidelity Conversion Date, at which time all such payment shall cease. No further
payments shall be required so long as on or before [* * *], Subservicer mails credit cards to the
Borrowers existing as of the Fidelity Conversion Date. In the event Subservicer is unable to mail
new cards by [* * *], Subservicer shall remit [* * *] Dollars per [* * *] in payment for its
continued use of the Nabanco EDP system, until the earlier of (a) the date the credit cards are
mailed to the Borrowers existing as of the Fidelity Conversion Date or (b) [* * *]. In the event
Subservicer is unable to mail new credit cards to the Borrowers existing as of the Fidelity
Conversion Date on or before [* * *], Subservicer shall pay [* * *] Dollars per [* * *] for access
to Nabanco for [* * *], for the term of the Equity Access® and OmegaSM Loan
Subservicing Agreement dated as of June 6, 2002.

          (b) Change of EDP. Other than as set forth in Section 2.09(c), approval of Servicer,
which may be withheld at Servicer’s sole discretion, must be obtained by Subservicer prior to the
development of a new EDP and before the transfer of any Equity Loan to the new EDP. If Servicer
approves such development or transfer, the development and transfer shall be on such terms as
mutually agreed upon by the parties.

          (c) Transfer to Fidelity.

          (i) Servicer and Subservicer hereby agree that Subservicer may transfer Equity Loans to the
new EDP commonly referred to as “Fidelity” upon the terms set forth in this Section 2.09(c).
Subservicer shall pay for all costs and expenses incurred by it, Servicer or any other Person in
connection with or arising from the conversion of the EDP from “Nabanco” to “Fidelity”
provided that Servicer shall reimburse Subservicer for any reasonable and documented costs
and expenses incurred by Subservicer in connection with or arising from the conversion,

 

[***] 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

 

de-conversion and/or related consulting services of the EDP from “Nabanco” to “Fidelity” that
arise solely as a result of requirements relating to the conversion and operation of Fidelity that
are imposed by Servicer but which are in addition to the requirements specified in the Statement of
Work attached hereto as Exhibit P (such as additional functionality or enhancements to the standard
product offering or customized reporting). Servicer shall reimburse Subservicer for such charges
within thirty (30) days of receipt of the documented expense from Subservicer.

          (ii) Subservicer shall be responsible for and shall pay the costs and expenses of
Subservicer’s information technology resources required for project management of the Fidelity EDP
system and basic programming requirements for Subservicer’s internal information technology and
other systems. Servicer shall be responsible for and shall pay the costs and expenses of
dedicating sufficient Servicer personnel necessary to effectuate the conversion to Fidelity with
respect to such EDP system’s interaction with Servicer’s information technology systems.

          (iii) In connection with the conversion to the Fidelity EDP system, Servicer agrees to pay the
costs and expenses of (a), issuing new credit cards to Borrowers existing as of the Fidelity
Conversion Date, (b) carrying out other transitional activities relating thereto (including credit
card start-up costs and the creation of a Fidelity test region for Servicer) and (c) actual
reasonable legal expenses, which collectively are anticipated to total [* * *]) (the “Servicer Card
Conversion Amount”). In addition, Servicer agrees to pay the costs and expenses of preparing and
mailing all customer notification related to the First Data to Fidelity conversion and issuing new
checks to Borrowers existing as of the Fidelity Conversion Date.

          Servicer shall reimburse Subservicer for any such charges within thirty (30) days of receipt
of the documented expense from Subservicer.

          (iv) In the event that during Year One, Year Two or Year Three, Subservicer utilizes the
credit card functionality within the Fidelity system in connection with the performance by it or
any of its affiliates of any servicing or subservicing activities for a Person other than Servicer,
Subservicer shall reimburse Servicer [* * *], excluding any amounts paid by Servicer to reissue the
credit cards.

          (v) In addition to entering into a contract with Fidelity for the conversion to the Fidelity
EDP system to support credit card functionality for the Equity Access program, Subservicer will
also enter into an agreement with First Data Resources Inc. (“FDR”) for certain processing
services. Subservicer shall use best efforts to negotiate a termination date with FDR that will
match the termination date of this Agreement (i.e., three years). However, in the event the
minimum negotiated term of the FDR agreement is four (4) years, Servicer agrees to reimburse
Subservicer for the costs and expenses incurred in the fourth year by Subservicer under said FDR
contract. However, if Subservicer is utilizing credit card functionality for HELOC loans for a
third-party private label client in Year 4, Servicer shall be relieved of the obligation to
reimburse said costs and expenses incurred in the fourth year by Subservicer under the FDR
contract.

 

[***] 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

 

          Section 2.27. Section 2.27 is hereby amended in its entirety by replacing the
text thereof with the following text: “In performing its services and obligations under this
Agreement, Subservicer shall have the right to select and engage the services of (at its own cost
and expense) a lockbox vendor, a Visa® bank sponsor/credit card issuer and a card
transaction provider.”

Section 2A.1. Section 2A.1 is hereby amended by (i) deleting the words “by overnight
delivery service” in paragraph (a) and inserting in lieu thereof the words “by first class mail”;
(ii) adding the following text at the end of paragraph (a): “The amount of Checks made available
to Borrowers may be reduced by Subservicer from the amount of Checks made available to Borrowers on
or prior to the date of this Agreement, but in no event shall the amount of Checks made available
to Borrowers under this Agreement be less than the amount of checks made available by Subservicer
to borrowers pursuant to its contractual arrangements with other mortgage loan subservicing
clients, and Subservicer may reduce the number of colors used in printing the checks to two,
provided print colors are pre-approved by MLCC. (iii) deleting the text “, pursuant to Servicer’s
direction” in the first sentence of paragraph (b); and (iv) adding the following text at the end of
paragraph (b): “In complying with its obligations under this Section 2A.1(b), Subservicer may
clear Checks utilizing its existing banking relationships and in a manner substantially similar
(and no less favorable to Servicer) to the manner in which it clears checks pursuant to its
contractual arrangements with other mortgage loan subservicing clients.

Section 2A.2(h). The following text is added to Section 2A.2 as new paragraph (h): The
parties agree that the “Sponsor Bank Interchange Fee” is the gross interchange fee paid to the
Sponsor Bank. Of the Sponsor Bank Interchange Fee, Servicer shall be entitled to receive a
“Private Label Interchange Fee”, calculated as follows. Subject to the Sponsor Bank Minimum Fee
requirement set out below, Servicer shall be entitled to receive the “Private Label Interchange
Fee” equal to [* * *]. Subservicer agrees to promptly remit to Servicer the Private Label
Interchange Fee remitted to it by the Sponsor Bank

For the purposes of this Agreement, the following terms will have the meaning set out below.

“Sponsor Bank” shall mean UMB Bank, N.A., or such other Sponsor Bank as may be designated by the
parties in the future.

“Sponsor Bank Minimum Fee” means the minimum fee required by the Sponsor Bank each month. In the
event the Sponsor Bank Interchange Fee does not meet or exceed the Sponsor Bank Minimum Fee, then
Servicer shall pay to Subservicer the difference between the amount of the “Sponsor Bank
Interchange Fee” collected and the Sponsor Bank Minimum Fee, but not more than $[* * *] per month
unless [* * *].

Section 2A.2(i). The following text is added to Section 2A.2 as new paragraph (i):
“Subject to Section 2A.2(j), Servicer agrees that it shall reimburse Subservicer for all reasonable
and documented monthly actual or minimum expenses charged by First Data Resource or UMB Bank to
Subservicer and paid by Subservicer with respect to the provision of services by First Data
Resource or UMB Bank to Subservicer required for the performance of Subservicer’s obligations under
this Section 2A.2. Prior to any reimbursement obligation of Servicer under

 

[***] 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

 

this Section 2A.2(i), Subservicer shall submit to Servicer all documentation necessary to
establish such expenses and the payment thereof.”

Section 2A.2(j). The following text is added to Section 2A.2 as new paragraph (j):
“Subservicer agrees that Servicer shall be obligated to reimburse Subservicer for the expenses
described in Section 2A.2(i) above only to the extent of Servicer’s proportional usage of the
systems made available by First Data Resources, Inc. based upon [* * *]. Further, Subservicer
agrees that it shall provide to Servicer in its monthly Subservicing Invoice each month a report
detailing [* * *]. Servicer shall reimburse Subservicer for such expenses within fifteen (15) days
of receipt of said invoice. In the event that such reports are not so provided to Servicer,
Servicer shall have no obligation to reimburse Subservicer for any of the amounts described in
Section 2A.2(i) above until such report is delivered to Servicer.”

Section 2A.2(k). The following text is added to Section 2A.2 as new paragraph (k): “The
Servicer and the Subservicer agree to consult with each other from time to time with respect to the
development of marketing strategies relating to the reissuance of credit cards and any new credit
card access features, insofar as such strategies or features are not proprietary to third-party
private label clients. Neither party shall have any obligation to incur any costs or expenses
arising from its obligation to consult pursuant to this Section 2A.2(k).”

Section 6.02. Section 6.02 is hereby amended by (i) replacing the text “a sum equal to $[*
* *]” appearing in paragraph (a) with the words “the applicable Active Loan Servicing Fee” and (ii)
replacing the text “a sum equal to $[* * *]” appearing in paragraph (a) with the words “the
applicable Inactive Loan Servicing Fee.”

Section 14.04(a). The first sentence of Section 14.04(a) is hereby amended in its entirety
by replacing such sentence with the following: “Subservicer shall use commercially reasonable
efforts to convert the Nabanco system to the Fidelity system on or before [* * *] (the “Fidelity
Conversion Date”), although Subservicer’s commitment with respect to the conversion is dependent
upon the performance of third party vendors over whom Subservicer does not have direct control.
Therefore, the parties agree that the timing of the conversion and the success of the conversion
cannot be determined with precision at this time. This Agreement shall automatically expire and
terminate upon the earliest to occur of (i) the Fidelity Conversion Date, although the parties
agree to consult with each other regarding the feasibility of this date and to grant such
extension(s) as the parties may deem prudent and advisable under the circumstances, (ii) in the
event the Fidelity Conversion shall have occurred prior to the Fidelity Conversion Date, or any
extension thereof as mutually agreed, this Agreement shall terminate on the third anniversary of
the date on which the Fidelity Conversion shall have occurred (such conversion date as evidenced by
a notice from Servicer to Subservicer confirming that the Fidelity Conversion shall have occurred
and the date thereof) (the applicable termination date as between (i) and (ii), the “Initial
Termination Date”) or (iii) the date upon which the Origination Agreement is terminated in
accordance with the terms thereof.”

 

[***] 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

 

Section 2. Amendment and Restatement of Equity Access Agreement. MLCC and PHH agree
to amend and restate the Equity Access Agreement on or around the date on which the Fidelity
Conversion occurs in order to reflect in one agreement all amendments made to the Equity Access
Agreement (including the amendments contained in this Amendment Agreement) as of the date of such
amendment and restatement.

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 Equity Access 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 Equity Access Agreement.

7

 

          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:  	Laurence P. Washington 	 
	 	 	Title:  	CEO 	 
	 

	 	 	 	 	 
	 	PHH MORTGAGE CORPORATION

 	 
	 	By:  	/s/ Greg Gentek
 	 
	 	 	Name:  	Greg Gentek 	 
	 	 	Title:  	Senior Vice President

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