Document:

Amendment No. 3 to Master Repurchase Agreement

 Exhibit 10.3 
  
 EXECUTION VERSION 
  
 AMENDMENT NO. 3 
 TO MASTER REPURCHASE
AGREEMENT 
  
 Amendment No. 3 dated as of December 27, 2004
(this “Amendment”), by and between BEAR STEARNS MORTGAGE CAPITAL CORPORATION (the “Buyer”), ABETTERWAYHOME FINANCE, LLC II (“Finance”) and HOMEBANC FUNDING CORP. II (“Funding” and,
together with Finance, the “Seller”). 
  
 RECITALS 
  
 The Buyer and the Seller are parties
to that certain Master Repurchase Agreement, dated as of April 29, 2004 and as amended by Amendment No. 1 and Joinder dated as of June 7, 2004 and Amendment No. 2 dated as of June 25, 2004 (the “Existing Repurchase Agreement”; as
amended by this Amendment, the “Repurchase Agreement”). Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Existing Repurchase Agreement. 
  
 The Buyer and the Seller have agreed, subject to the terms and conditions of
this Amendment, that the Existing Repurchase Agreement be amended to reflect certain agreed upon revisions to the terms of the Existing Repurchase Agreement. 
  
 Accordingly, the Buyer and the Seller hereby agree, in consideration of the mutual promises and mutual obligations set forth herein, that the Existing
Repurchase Agreement is hereby amended as follows: 
  
 SECTION 1.
Definitions. Section 1 of the Existing Repurchase Agreement is hereby amended by: 
  
 1.1 adding the following defined terms in their proper alphabetical order: 
  
 “Combined Loan to Value Ratio” or “CLTV” shall mean, with respect to any Second Lien Mortgage Loan, the sum of the
original principal balance of such Mortgage Loan and the outstanding principal balance of any related first lien as of the date of origination of the Mortgage Loan, divided by the Appraised Value of the Mortgaged Property as of the origination date.

  
 “Second Lien Mortgage Loan” shall mean a
Mortgage Loan secured by a second lien on the related Mortgaged Property. 
  
 1.2 by deleting the definitions of “Mortgage,” “Mortgage Loan,” “Pricing Letter” and “Servicer” in their entirety and replacing them with the following: 
  
 “Mortgage” shall mean each mortgage, assignment of rents,
security agreement and fixture filing, or deed of trust, assignment of rents, security agreement and fixture filing, deed to secure debt, assignment of rents, security agreement and fixture filing, or similar instrument creating and evidencing a
first lien or second lien on real property and other property and rights incidental thereto. 

 “Mortgage Loan” shall mean any first lien or second lien, one-to-four-family residential
mortgage loan evidenced by a Mortgage Note and secured by a Mortgage, which Mortgage Loan is subject to a Transaction hereunder, which in no event shall include any mortgage loan which (a) is subject to Section 226.32 of Regulation Z or any similar
state law (relating to high interest rate credit/lending transactions), (b) includes any single premium credit life or accident and health insurance or disability insurance, or (c) is a High Cost Mortgage Loan. 
  
 “Pricing Letter” shall mean that certain second amended and
restated pricing side letter among the Buyer and the Seller, dated as of December 27, 2004 as amended from time to time. 
  
 “Servicer” shall mean HomeBanc Corp., or any successor in interest thereto. 
  
 SECTION 2. Schedule 1. The Existing Repurchase Agreement is hereby amended by: 
  
 2.1 deleting clauses (i), (n) and (uu) of Schedule 1 in their entirety and
replacing them with clauses (i), (n) and (uu) on Exhibit A hereto. 
  
 2.2 adding clause (kkk) to Schedule 1 with clause (kkk) on Exhibit A hereto. 
  
 SECTION 3. Conditions Precedent. This Amendment shall become effective on the date hereof (the “Amendment Effective Date”) subject
to the satisfaction of the following conditions precedent: 
  
 3.1 Delivered Documents. On the Amendment Effective Date, the Buyer shall have received the following documents, each of which shall be satisfactory to the Buyer in form and substance: 
  
 (a) this Amendment, executed and delivered and duly
authorized officers of the Buyer, Finance and Funding; 
  
 (b) the Pricing Letter, executed and delivered and duly authorized officers of the Buyer and Seller; and 
  
 (c) such other documents as the Buyer or counsel to the Buyer may reasonably request. 
  
 SECTION 4. Representations and Warranties. Each of Finance and Funding
hereby represents and warrants to the Buyer that it is in compliance with all the terms and provisions set forth in the Existing Repurchase Agreement on its part to be observed or performed, and that no Event of Default has occurred or is
continuing, and hereby confirms and reaffirms the representations and warranties contained in Section 11 of the Existing Repurchase Agreement. 
  
 SECTION 5. Fees. The Seller agrees to pay as and when billed by the Buyer all of the reasonable fees, disbursements and expenses of counsel to the
Buyer in connection with the development, preparation and execution of, this Amendment or any other documents prepared in connection herewith and receipt of payment thereof shall be a condition precedent to the Buyer entering into any Transaction
pursuant hereto. 
  

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 SECTION 6. Confidentiality. The parties hereto acknowledge that the confidentiality provisions set
forth in Section 29 of the Repurchase Agreement shall apply to this Amendment. 
  
 SECTION 7. Limited Effect. Except as expressly amended and modified by this Amendment, the Existing Repurchase Agreement shall continue to be, and shall remain, in full force and effect in accordance with its
terms. 
  
 SECTION 8. GOVERNING LAW. THIS
AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 
  
 SECTION 9. Counterparts. This Amendment may be executed in one or more
counterparts and by different parties hereto on separate counterparts, each of which, when so executed, shall constitute one and the same agreement. 
  
 SECTION 10. Conflicts. The parties hereto agree that in the event there is any conflict between the terms of this Amendment, and the terms of the
Existing Repurchase Agreement, the provisions of this Amendment shall control. 
  
 [SIGNATURE PAGE FOLLOWS] 
  

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

			
	BEAR STEARNS MORTGAGE CAPITAL CORPORATION,
	as Buyer
		
	By:	 	 /s/ John Garzone

	Name:	 	John Garzone
	Title:	 	Senior Vice President
	
	ABETTERWAYHOME FINANCE, LLC II
	as Seller
		
	By:	 	 /s/ James L. Krakau

	Name:	 	James L. Krakau
	Title:	 	Treasurer
	
	HOMEBANC FUNDING CORP. II,
	as Seller
		
	By:	 	 /s/ James L. Krakau

	Name:	 	James L. Krakau
	Title:	 	Treasurer

 EXHIBIT A TO AMENDMENT NO. 3 
 TO MASTER REPURCHASE AGREEMENT 
  
 “(i) Valid First or Second Lien. The Mortgage is a valid, subsisting, enforceable and perfected (a) with respect to each first lien Mortgage Loan, first priority lien and first priority security interest,
or (b) with respect to each Second Lien Mortgage Loan, second priority lien and second priority security interest, in each case, on the real property included in the Mortgaged Property, including all buildings on the Mortgaged Property and all
installations and mechanical, electrical, plumbing, heating and air conditioning systems located in or annexed to such buildings, and all additions, alterations and replacements made at any time with respect to the foregoing. The lien of the
Mortgage is subject only to: 
  
 (i) the lien of current real
property taxes and assessments not yet due and payable; 
  
 (ii)
covenants, conditions and restrictions, rights of way, easements and other matters of the public record as of the date of recording acceptable to prudent mortgage lending institutions generally and specifically referred to in Buyer’s title
insurance policy delivered to the originator of the Mortgage Loan and (a) referred to or otherwise considered in the appraisal made for the originator of the Mortgage Loan or (b) which do not adversely affect the Appraised Value of the Mortgaged
Property set forth in such appraisal; 
  
 (iii) other matters to
which like properties are commonly subject which do not materially interfere with the benefits of the security intended to be provided by the Mortgage or the use, enjoyment, value or marketability of the related Mortgaged Property; and 

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

  
 “(n) Title Insurance. The Mortgage Loan is covered
by either (i) an attorney’s opinion of title and abstract of title, the form and substance of which is acceptable to prudent mortgage lending institutions making mortgage loans in the area wherein the Mortgaged Property is located or (ii) an
ALTA lender’s title insurance policy or other generally acceptable form of policy or insurance acceptable to Fannie Mae or Freddie Mac and each such title insurance policy is issued by a title insurer acceptable to Fannie Mae or Freddie Mac and
qualified to do business in the jurisdiction where the Mortgaged Property is located, insuring 

 
Seller, its successors and assigns, as to the first priority lien or second priority lien, as applicable, of the Mortgage, as applicable in the original
principal amount of the Mortgage Loan (or to the extent a Mortgage Note provides for negative amortization, the maximum amount of negative amortization in accordance with the Mortgage), subject only to the exceptions contained in clauses (a), (b)
and (c), and in the case of adjustable rate Mortgage Loans, against any loss by reason of the invalidity or unenforceability of the lien resulting from the provisions of the Mortgage providing for adjustment to the Mortgage Interest Rate and Monthly
Payment. Where required by state law or regulation, the Mortgagor has been given the opportunity to choose the carrier of the required mortgage title insurance. Additionally, such lender’s title insurance policy affirmatively insures ingress
and egress and against encroachments by or upon the Mortgaged Property or any interest therein. The title policy does not contain any special exceptions (other than the standard exclusions) for zoning and uses and has been marked to delete the
standard survey exception or to replace the standard survey exception with a specific survey reading. Seller, its successors and assigns, are the sole insureds of such lender’s title insurance policy, and such lender’s title insurance
policy is valid and remains in full force and effect and will be in force and effect upon the consummation of the transactions contemplated by this Repurchase Agreement. No claims have been made under such lender’s title insurance policy, and
no prior holder or servicer of the related Mortgage, including Seller, has done, by act or omission, anything which would impair the coverage of such lender’s title insurance policy, including, without limitation, no unlawful fee, commission,
kickback or other unlawful compensation or value of any kind has been or will be received, retained or realized by any attorney, firm or other Person, and no such unlawful items have been received, retained or realized by Seller;” 

 
 “(uu) Predatory Lending Regulations; High Cost Loans. No
Mortgage Loan (a) is subject to Section 226.32 of Regulation Z or any similar state law (relating to high interest rate credit/lending transactions), or (b) is a High Cost Mortgage Loan. In addition to and notwithstanding anything to the contrary
herein, no Mortgage Loan for which the Mortgaged Property is located in New Jersey is a Home Loan as defined in the New Jersey Home Ownership Security Act of 2002 that was made, arranged, or assigned by a person selling either a manufactured home or
home improvements to the Mortgaged Property or was made by an originator to whom the Mortgagor was referred by any such Seller.” 
  
 “(kkk) Massachusetts Mortgage Loans. No Mortgage Loan is secured by Mortgaged Property in the Commonwealth of Massachusetts with a loan
application date on or after November 7, 2004 that refinances a Mortgage Loan that is less than sixty (60) months old, unless such Mortgage Loan (i) is on an investment property, (ii) meets the requirements set forth in the Code of Massachusetts
Regulation (“CMR”), 209 CMR 53.04(1)(b), or (iii) meets the requirements set forth in the 209 CMR 53.04(1)(c).” 
  

 -2-Amendment No. 2 and Joinder to Purchase, Warranties and Servicing Agreement

 Exhibit 10.4 
  
 EXECUTION VERSION 
  
 AMENDMENT NO. 2 AND JOINDER 
 TO
PURCHASE, WARRANTIES AND SERVICING AGREEMENT 
  
 Amendment No.
2, and Joinder dated as of December 27, 2004 (this “Amendment”), by and between ABETTERWAYHOME FINANCE, LLC II (“Finance” and a “Purchaser”), HOMEBANC FUNDING CORP. II (“Funding”, a
“Purchaser” and together with Finance the “Purchasers”) HOMEBANC MORTGAGE CORPORATION (“HMC” and a “Company”) and HOMEBANC CORP. (“HomeBanc” and a
“Company” and together with HMC the “Companies”). 
  
 RECITALS 
  
 HMC and the
Purchasers are parties to that certain Purchase, Warranties and Servicing Agreement, dated as of April 29, 2004 as amended by Amendment No. 1, and Joinder dated as of June 7, 2004 (the “Existing Purchase Agreement”; as amended by
this Amendment, the “Purchase Agreement”). Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Existing Purchase Agreement. 
  
 HMC and the Purchasers have agreed, subject to the terms and conditions of
this Amendment, that the Existing Purchase Agreement be amended to reflect certain agreed upon revisions to the terms of the Existing Purchase Agreement and to permit HomeBanc to become an additional Company under the Purchase Agreement. 

 
 Accordingly, HMC, the Purchasers and HomeBanc hereby agree, in
consideration of the mutual promises and mutual obligations set forth herein, that the Existing Purchase Agreement is hereby amended as follows: 
  
 SECTION 1. Agreement and Joinder with respect to HomeBanc. HomeBanc hereby agrees to all of the provisions of the Existing Purchase Agreement, and
effective as of July 19, 2004, becomes a party to the Purchase Agreement, as a Company, with the same effect as if the undersigned were an original signatory to the Existing Purchase Agreement, subject to the provisions of this Amendment. All
references to Company or Companies in the Purchase Agreement shall be deemed to include HomeBanc, except as otherwise provided herein. 
  
 SECTION 2. References to Company as Servicer. All references to the Company in its capacity as Servicer shall be deemed to refer to HomeBanc and
not to HMC. 
  
 SECTION 3. Preamble. The first WHEREAS
clause of the Existing Purchase Agreement is hereby amended by deleting it in its entirety and replacing it with the following: 
  
 “WHEREAS, the Purchasers have heretofore agreed to purchase from the Companies and the Companies have heretofore agreed to sell to the Purchasers,
from time to time, certain Mortgage Loans on a servicing released basis;” 
  
 SECTION 4. Definitions. Section 1.01 of the Existing Purchase Agreement is hereby amended by deleting the definitions of “Company” and “FDIC” in their entirety and replacing with the
following: 
  
 “Company: HomeBanc Mortgage
Corporation and HomeBanc Corp., and their successors in interest and assigns, as permitted by this Agreement.” 

 “FDIC: the Federal Deposit Insurance Corporation, or any successor thereto.” 

 
 SECTION 5. Agreement to Purchase. Section 2.01 of the Existing
Purchase Agreement is hereby amended by deleting it in its entirety and replacing it with the following: 
  
 “Each Company agrees to sell and each Purchaser agrees to purchase the Mortgage Loans having an aggregate Stated Principal Balance on the related
Cut-off Date set forth in the related Term Sheet in an amount as set forth in the Confirmation, or in such other amount as agreed by such Purchaser and such Company as evidenced by the actual aggregate Stated Principal Balance of the Mortgage Loans
accepted by such Purchaser on the related Closing Date, with servicing released by such Company. The applicable Company shall deliver the related Mortgage Loan Schedule attached to the related Term Sheet for the Mortgage Loans to be purchased on the
related Closing Date to the applicable Purchaser at least two (2) Business Days prior to the related Closing Date. The Mortgage Loans shall be sold pursuant to this Agreement, and the related Term Sheet shall be executed and delivered on the related
Closing Date.” 
  
 SECTION 6. Representations and
Warranties. 
  
 6.1 Section 3.01 (a) of the Existing Purchase
Agreement is hereby amended by deleting it in its entirety and replacing it with the following: 
  
 “(a) The Company is a corporation, duly organized, validly existing and in good standing under the laws of its jurisdiction of organization and has
all licenses necessary to carry out its business as now being conducted, and is licensed and qualified to transact business in and is in good standing under the laws of each state in which any Mortgaged Property is located or is otherwise exempt
under applicable law from such licensing or qualification or is otherwise not required under applicable law to effect such licensing or qualification and no demand for such licensing or qualification has been made upon such Company by any such
state, and in any event such Company is in compliance with the laws of any such state to the extent necessary to ensure the enforceability of each Mortgage Loan and the servicing of the Mortgage Loans in accordance with the terms of this
Agreement;” 
  
 6.2 Section 3.01(j) of the Existing Purchase
Agreement is hereby amended by deleting it in its entirety and replacing it with the following: 
  
 “(j) Either (i) Company is an approved seller/servicer of residential mortgage loans for Fannie Mae, FHLMC and HUD, with such facilities, procedures
and personnel necessary for the sound servicing of such mortgage loans or (ii) Company has designated a subservicer that is so approved. Either (i) Company is duly qualified, licensed, registered and otherwise authorized under all applicable
federal, state and local laws, and regulations, if applicable, and is in good standing to sell mortgage loans to and service mortgage loans for Fannie Mae and FHLMC 

  

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and no event has occurred which would make Company unable to comply with eligibility requirements or which would require notification to either Fannie Mae or
FHLMC or (ii) Company has designated a subservicer that is so qualified, licensed, registered and authorized and is in good standing to sell mortgage loans to and service mortgage loans for Fannie Mae and FHLMC and no event has occurred which would
make such subservicer unable to comply with eligibility requirements or which would require notification to either Fannie Mae or FHLMC.” 
  
 SECTION 7. Events of Default. 
  
 7.1 Section 9.01(i) is hereby amended by deleting it in its entirety and replacing it with the following: 
  
 “(i) Both Company and any subservicer cease to be approved by either
Fannie Mae or FHLMC as a mortgage loan seller or servicer for more than thirty (30) days;” 
  
 7.2 Section 9.01(l) is hereby amended by deleting it in its entirety and replacing it with the following: 
  
 “(l) Intentionally omitted;” 
  
 SECTION 8. Conditions Precedent. This Amendment shall become effective
as of July 19, 2004 (the “Amendment Effective Date”) subject to the satisfaction of the following conditions precedent: 
  
 8.1 Delivered Documents. The Buyer shall have received the following documents, each of which shall be satisfactory to the Buyer in form and
substance: 
  
 (a) this Amendment, executed and
delivered by duly authorized officers of HMC, each Purchaser, HomeBanc and the Buyer; 
  
 (b) Second Amended and Restated Pricing Side Letter, executed and delivered by duly authorized officers of the Buyer and Purchasers;

  
 (c) Amendment No. 2 to Master Repurchase
Agreement, executed and delivered by duly authorized officers of the Buyer and Purchasers; and 
  
 (d) such other documents as the Buyer or counsel to the Buyer may reasonably request. 
  
 SECTION 9. Joint and Several Obligations. Each Purchaser and each
Company hereby acknowledge and agree that the Purchasers are each jointly and severally liable to each Company for all of their respective representations, warranties and covenants hereunder and under the Existing Purchase Agreement. 
  

 -3- 

 SECTION 10. Fees. The Purchasers and the Companies agree to pay as and when billed by the Buyer
all of the reasonable fees, disbursements and expenses of counsel to the Buyer in connection with the development, preparation and execution of, this Amendment or any other documents prepared in connection herewith and receipt of payment thereof
shall be a condition precedent to the Buyer entering into any Transaction pursuant hereto. 
  
 SECTION 11. Confidentiality. The parties hereto acknowledge that this Amendment, the Existing Purchase Agreement, and all drafts thereof, documents relating thereto and transactions contemplated thereby are
subject to the provisions of Section 11.10 of the Existing Agreement, as amended hereby. 
  
 SECTION 12. Limited Effect. Except as expressly amended and modified by this Amendment, the Existing Purchase Agreement shall continue to be, and shall remain, in full force and effect in accordance with its
terms. 
  
 SECTION 13. GOVERNING LAW. THIS AMENDMENT
SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.  
  
 SECTION 14. Counterparts. This Amendment may be executed in one or
more counterparts and by different parties hereto on separate counterparts, each of which, when so executed, shall constitute one and the same agreement. 
  

SECTION 15. Conflicts. The parties hereto agree that in the event there is any conflict between the terms of this Amendment, and the terms of
the Existing Purchase Agreement, the provisions of this Amendment shall control. 
  
 [SIGNATURE PAGE FOLLOWS] 
  

 -4- 

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

			
	ABETTERWAYHOME FINANCE, LLC II
	as Purchaser
		
	 By:
	 	 /s/ James L. Krakau

	 Name:
	 	 James L. Krakau

	 Title:
	 	 Treasurer

	
	HOMEBANC FUNDING CORP. II,
	as Purchaser
		
	 By:
	 	 /s/ James L. Krakau

	 Name:
	 	 James L. Krakau

	 Title:
	 	 Treasurer

	
	HOMEBANC MORTGAGE CORPORATION,
	as Company
		
	 By:
	 	 /s/ James L. Krakau

	 Name:
	 	 James L. Krakau

	 Title:
	 	 SVP and Treasurer

	
	HOMEBANC CORP.,
	as Company
		
	 By:
	 	 /s/ James L. Krakau

	 Name:
	 	 James L. Krakau

	 Title:
	 	 SVP and Treasurer

			
	 Acknowledged and Agreed:

	
	BEAR STEARNS MORTGAGE CAPITAL CORPORATION,
	as Buyer
		
	 By:
	 	 /s/ John Garzone

	 Name:
	 	 John Garzone

	 Title:
	 	 Senior Vice President

  

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