Document:

Exhibit 10.1

 

 

 

SECOND AMENDED AND RESTATED MASTER REPURCHASE
AGREEMENT

 

 

CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL
LLC, as buyer

(“Buyer”) or as agent pursuant hereto (“Agent”), and

 

 

PENNYMAC LOAN SERVICES, LLC, as seller (“Seller”)
and

 

 

PRIVATE NATIONAL MORTGAGE ACCEPTANCE COMPANY,
LLC, as guarantor (“Guarantor”)

 

 

 

 

Dated as of March 31, 2016

 

 

 

 

 

 

    	 	 	 

     

    

 

TABLE OF CONTENTS

Page

	1.   Applicability	1
	2.   Definitions	1
	3.   Program; Initiation of Transactions	21
	4.   Repurchase	23
	5.   Price Differential.	24
	6.   Margin Maintenance	24
	7.   Income Payments	25
	8.   Security Interest	26
	9.   Payment and Transfer	28
	10.   Conditions Precedent	28
	11.   Program; Costs	32
	12.   Servicing	33
	13.   Representations and Warranties	34
	14.   Covenants	40
	15.   Events of Default	47
	16.   Remedies Upon Default	50
	17.   Reports	52
	18.   Repurchase Transactions	56
	19.   Single Agreement	56
	20.   Notices and Other Communications	57
	21.   Entire Agreement; Severability	58
	22.   Non assignability	58
	23.   Set-off	59

 

 

 

 

 

 

    	 	i	 

     

    

 

 

	24.   Binding Effect; Governing Law; Jurisdiction	59
	25.   No Waivers, Etc.	60
	26.   Intent	60
	27.   Disclosure Relating to Certain Federal Protections	61
	28.   Power of Attorney	61
	29.   Buyer May Act Through Affiliates	62
	30.   Indemnification; Obligations	62
	31.   Counterparts	63
	32.   Confidentiality	63
	33.   Recording of Communications	64
	34.   Commitment Fee	64
	35.   Periodic Due Diligence Review	64
	36.   Authorizations	65
	37.   Acknowledgement Of Anti-Predatory Lending Policies	65
	38.   Documents Mutually Drafted	65
	39.   General Interpretive Principles	65
	40.   Condition Subsequent.	66
	41.   Amendment and Restatement	66
	42.   Agency and Allocation Agreement.	66
	43.   Reaffirmation of Guaranty	67

 

SCHEDULES

 

Schedule 1 – Representations
and Warranties with Respect to Purchased Mortgage Loans

 

Schedule 2 – Authorized
Representatives 

 

Schedule 3 – Responsible
Officers of Seller and Guarantor

 

 

 

 

 

 

    	 	ii	 

     

    

 

EXHIBITS

 

Exhibit A – Form of Transaction
Request

 

Exhibit B – Form of Purchase
Confirmation

 

Exhibit C – Form of Mortgage
Loan Schedule

 

Exhibit D – Reserved

 

Exhibit E – Form of Power
of Attorney

 

Exhibit F – Underwriting
Guidelines

 

Exhibit G – Officer’s
Certificate of Seller and Corporate Resolutions of Seller

 

Exhibit H – Seller’s
Tax Identification Number

 

Exhibit I – Existing Indebtedness

 

Exhibit J - Escrow Instruction
Letter

 

Exhibit K – Custodial and
Securities Intermediary Fee Schedule

 

Exhibit L – Form of Trade
Assignment

 

 

 

 

 

 

 

 

    	 	iii	 

     

    

 

This is a SECOND AMENDED
AND RESTATED MASTER REPURCHASE AGREEMENT, dated as of March 31, 2016, by and among CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL
LLC (the “Buyer”), PENNYMAC LOAN SERVICES, LLC., as seller (“Seller”), and PRIVATE NATIONAL
MORTGAGE ACCEPTANCE COMPANY, LLC, as guarantor (“Guarantor”).

 

The Buyer, the Guarantor
and the Seller previously entered into an Amended and Restated Master Repurchase Agreement, dated as of May 3, 2013 (the “Existing
Master Repurchase Agreement”);

 

The parties hereto
have requested that the Existing Master Repurchase Agreement be amended and restated, in its entirety, on the terms and subject
to the conditions set forth herein;

 

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

 

1.              
Applicability

 

From time to time the
parties hereto may enter into transactions in which Seller agrees to transfer to Buyer Mortgage Loans (as hereinafter defined)
on a servicing released basis against the transfer of funds by Buyer, with a simultaneous agreement by Buyer to transfer to Seller
such Mortgage Loans on a servicing released basis at a date certain or on demand, against the transfer of funds by Seller. This
Agreement is a commitment by Buyer to engage in the Transactions as set forth herein up to the Maximum Regular Way Committed Purchase
Price; provided, that Buyer shall have no commitment to enter into any Transaction requested that would result in the aggregate
Purchase Price of then-outstanding Transactions to exceed the Maximum Regular Way Committed Purchase Price. The aggregate Purchase
Price of Purchased Mortgage Loans subject to outstanding Transactions shall not exceed the Maximum Regular Way Purchase Price.
Each such transaction shall be referred to herein as a “Transaction” and, unless otherwise agreed in writing,
shall be governed by this Agreement, including any supplemental terms or conditions contained in any annexes identified herein,
as applicable hereunder.

 

2.              
Definitions

 

Whenever used in this
Agreement, the following words and phrases, unless the context otherwise requires, shall have the following meanings:

 

“Acceptable
State” means any state acceptable pursuant to the Underwriting Guidelines.

 

“Accepted Servicing
Practices” means, with respect to any Mortgage Loan, those mortgage servicing practices of prudent mortgage lending institutions
which service mortgage loans of the same type as such Mortgage Loan in the jurisdiction where the related Mortgaged Property is
located.

 

 

    	 	- 1 -	 

     

    

 

“Act of Insolvency”
means, with respect to any Person or its Affiliates, (i) the filing of a petition, commencing, or authorizing the commencement
of any case or proceeding, or the voluntary joining of any case or proceeding under any bankruptcy, insolvency, reorganization,
liquidation, dissolution or similar law relating to the protection of creditors, or suffering any such petition or proceeding to
be commenced by another which is consented to, not timely contested or results in entry of an order for relief; (ii) the seeking
of the appointment of a receiver, trustee, custodian or similar official for such party or an Affiliate or any substantial part
of the property of either; (iii) the appointment of a receiver, conservator, or manager for such party or an Affiliate by any governmental
agency or authority having the jurisdiction to do so; (iv) the making or offering by such party or an Affiliate of a composition
with its creditors or a general assignment for the benefit of creditors; (v) the admission by such party or an Affiliate of such
party of its inability to pay its debts or discharge its obligations as they become due or mature; or (vi) that any governmental
authority or agency or any person, agency or entity acting or purporting to act under governmental authority shall have taken any
action to condemn, seize or appropriate, or to assume custody or control of, all or any substantial part of the property of such
party or of any of its Affiliates, or shall have taken any action to displace the management of such party or of any of its Affiliates
or to curtail its authority in the conduct of the business of such party or of any of its Affiliates.

 

“Additional
Collateral” has the meaning assigned to such term in Section 8(b) hereof.

 

“Adjusted Tangible
Net Worth” has the meaning set forth in the Pricing Side Letter.

 

“Affiliate”
means, with respect to any Person, any “affiliate” of such Person, as such term is defined in the Bankruptcy Code;
provided, however, that in respect of Seller or Guarantor the term “Affiliate” shall include only Guarantor
and its wholly-owned Subsidiaries.

 

“Aged Loan”
means a Mortgage Loan (other than with respect to a GNMA Loan, a Non-Agency QM Mortgage Loan and a Pooled Mortgage Loan) which
has been subject to one or more Transactions hereunder for a period of greater than 60 days but not greater than 90 days.

 

“Agency”
means Freddie Mac or Fannie Mae, as applicable.

 

“Agency Mortgage
Loan” means, collectively, Conforming Mortgage Loans, FHA Loans, VA Loans, Conforming High CLTV Loans, FHA 203(k) Loans,
Freddie Mac SBL Loans and USDA Loans.

 

“Agency Security”
means a mortgage-backed security issued by an Agency.

 

“Agent”
means DLJ Mortgage Capital, Inc.

 

“Aging Limit”
means the aging limit listed opposite the type of Mortgage Loan in the table below:

 

 

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	Type of Mortgage Loan	Aging Limit
	Purchased Mortgage Loans other than Aged Loans, GNMA Loans and Non-Agency QM Mortgage Loans	60 days
	Purchased Mortgage Loans that are Aged Loans	90 days
	Purchased Mortgage Loans that are Non-Agency QM Mortgage Loans	270 days

 

“Agreement”
means this Second Amended and Restated Master Repurchase Agreement, as it may be amended, supplemented or otherwise modified from
time to time.

 

“Amendment Effective
Date” means a date when all conditions precedent set forth in Section 10(a) are satisfied.

 

“Appraised Value”
means the value set forth in an appraisal made in connection with the origination of the related Mortgage Loan as the value of
the Mortgaged Property.

 

“Asset Confirm”
means, with respect to any Transaction as of any date, a confirmation in the form attached as an exhibit to the Custodial Agreement.

 

“Asset Tape”
means a remittance report on a monthly basis or requested by Buyer pursuant to Section 17d hereof containing servicing information,
including, without limitation, those fields reasonably requested by Buyer from time to time, on a loan-by-loan basis and in the
aggregate, with respect to the Purchased Mortgage Loans serviced by Seller or any Servicer for the month (or any portion thereof)
prior to the Reporting Date.

 

“Asset Value”
has the meaning assigned to such term in the Pricing Side Letter.

 

“Assignment
of Mortgage” means an assignment of the Mortgage, notice of transfer or equivalent instrument in recordable form, sufficient
under the laws of the jurisdiction wherein the related Mortgaged Property is located to reflect the sale of the Mortgage to Buyer.

 

“Assignment
of Proprietary Lease” means the specific agreement creating a first lien on and pledge of the Co-op Shares and the appurtenant
Proprietary Lease securing a Co-op Loan.

 

“Attorney Bailee
Letter” means a bailee letter substantially in the form approved in writing by Buyer.

 

“Bailee Letter”
has the meaning assigned to such term in the Custodial Agreement.

 

“Bankruptcy
Code” means the United States Bankruptcy Code of 1978, as amended from time to time.

 

 

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“Base Rate”
means the “CS Base Rate” as identified in Buyer’s warehouse system from time to time.

 

“Bid”
has the meaning set forth in Section 4(c) hereof.

 

“BPO”
means an opinion of the fair market value of a Mortgaged Property given by a licensed real estate agent or broker which generally
includes three comparable sales and three comparable listings.

 

“Business Day”
means any day other than (A) a Saturday or Sunday and (B) a public or bank holiday in New York City.

 

“Buyer”
means Credit Suisse First Boston Mortgage Capital LLC, and any successor or assign hereunder.

 

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

 

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

 

“Change in Control”
means any of the following except to the extent contemplated by PennyMac Financial Services, Inc.’s Registration Statement
on Form S-1, filed on February 7, 2013:

 

(A)any transaction or event
as a result of which Guarantor ceases to own, beneficially or of record, 100% of the stock of Seller, except with respect to an
initial public offering of Seller’s common stock on a U.S. national securities exchange;

 

 

    	 	- 4 -	 

     

    

 

(B)the sale, transfer, or other
disposition of all or substantially all of Seller’s or Guarantor’s assets (excluding any such action taken in connection
with any securitization transaction); or

 

(C)the consummation of a merger
or consolidation of Seller or Guarantor with or into another entity or any other corporate reorganization, if more than 50% of
the combined voting power of the continuing or surviving entity’s stock outstanding immediately after such merger, consolidation
or such other reorganization is owned by Persons who were not stockholders of Seller or Guarantor immediately prior to such merger,
consolidation or other reorganization.

 

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

 

“Commitment
Fee” has the meaning assigned to such term in the Pricing Side Letter.

 

“Committed Mortgage
Loan” means a Mortgage Loan which is the subject of a Take-out Commitment with a Take-out Investor.

 

“Conforming
High CLTV Loan” shall have the meaning given to such term in the Pricing Side Letter.

 

“Conforming
Mortgage Loan” means a first lien Mortgage Loan originated in accordance with the criteria of an Agency for purchase
of Mortgage Loans, including, without limitation, conventional Mortgage Loans, FHA Loans and VA Loans, as determined by Buyer in
its sole discretion.

 

“Co-op”
means a private, cooperative housing corporation, having only one class of stock outstanding, which owns or leases land and all
or part of a building or buildings, including apartments, spaces used for commercial purposes and common areas therein and whose
board of directors authorizes the sale of stock and the issuance of a Proprietary Lease.

 

“Co-op Corporation”
means, with respect to any Co-op Loan, the cooperative apartment corporation that holds legal title to the related Co-op Project
and grants occupancy rights to units therein to stockholders through Proprietary Leases or similar arrangements.

 

“Co-op Lien
Search” means a search for (a) federal tax liens, mechanics’ liens, lis pendens, judgments of record or otherwise
against (i) the Co-op Corporation and (ii) seller of the Co-op Unit, (b) filings Uniform Commercial Code financing statements and
(c) the deed of the Co-op Project into the Co-op Corporation.

 

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

 

 

    	 	- 5 -	 

     

    

 

“Co-op Project”
means, with respect to any Co-op Loan, all real property and improvements thereto and rights therein and thereto owned by a Co-op
Corporation including without limitation the land, separate dwelling units and all common elements.

 

“Co-op Shares”
means, with respect to any Co-op Loan, the shares of stock issued by a Co-op Corporation and allocated to a Co-op Unit and represented
by a stock certificates.

 

“Co-op Unit”
means, with respect to any Co-op Loan, a specific unit in a Co-op Project.

 

“Correspondent
Loan” means a Mortgage Loan which is (i) originated by a Correspondent Seller and underwritten in accordance with the
Underwriting Guidelines and (ii) acquired by the Seller from PennyMac Corp. or a Correspondent Seller in the ordinary course of
business, for sale to the Buyer pursuant to this Agreement.

 

“Correspondent
Seller” means a mortgage loan originator that sells Mortgage Loans originated by it to Seller as a “correspondent”
client.

 

“Correspondent
Release” means, with respect to any Correspondent Loan, a release by any third party lender that has a secured interest
in the Correspondent Loan of all right, title and interest, including any such security interest, in such Correspondent Loan. The
form of such Correspondent Release shall be mutually acceptable to the Buyer and Seller.

 

“Custodial Agreement”
means the custodial agreement dated as of May 11, 2010, among Seller, Buyer and Custodian as the same may be amended, restated,
supplemented or otherwise modified from time to time.

 

“Custodial Mortgage
Loan Schedule” has the meaning assigned to such term in the Custodial Agreement.

 

“Custodian”
means Deutsche Bank National Trust Company or such other party specified by Buyer and agreed to by Seller, which approval shall
not be unreasonably withheld.

 

“DE Compare
Ratio” means the Two Year FHA Direct Endorsement Lender Compare Ratio, excluding streamline FHA refinancings, as made
publicly available by HUD.

 

“Default”
means an Event of Default or an event that with notice or lapse of time or both would become an Event of Default.

 

“Dollars”
and “$” means dollars in lawful currency of the United States of America.

 

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

 

“Due Diligence
Cap” has the meaning assigned to such term in the Pricing Side Letter.

 

 

    	 	- 6 -	 

     

    

 

“Effective Date”
means the date upon which the conditions precedent set forth in Section 10 shall have been satisfied.

 

“Electronic
Tracking Agreement” means an Electronic Tracking Agreement among Buyer, Seller, MERS and MERSCORP Holdings, Inc., dated
August 14, 2009 to the extent applicable as the same may be amended, restated, supplemented or otherwise modified from time to
time.

 

“Encumbered
Mortgage Servicing Rights” means any mortgage servicing rights that are subject to any Lien, claim, restriction or other
encumbrance that limits in any way the ability to dispose of or transfer such asset whether or not such Lien, claim, restriction
or other encumbrance relates to any outstanding debt.

 

“Encumbered
Mortgage Servicing Rights Equity” means that portion of the MSR Valuation of the Encumbered Mortgage Servicing Rights
that exceeds the Indebtedness encumbering such mortgage servicing rights.

 

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

 

“ERISA Affiliate”
means any corporation or trade or business that, together with Seller or Guarantor is treated as a single employer under Section
414(b) or (c) of the Code or solely for purposes of Section 302 of ERISA and Section 412 of the Code is treated as single employer
described in Section 414 of the Code.

 

“Escrow Instruction
Letter” means the Escrow Instruction Letter from Seller to the Settlement Agent, in the form of Exhibit J hereto,
as the same may be modified, supplemented and in effect from time to time.

 

“Escrow Payments”
means, with respect to any Mortgage Loan, the amounts constituting ground rents, taxes, assessments, water rates, sewer rents,
municipal charges, mortgage insurance premiums, fire and hazard insurance premiums, condominium charges, and any other payments
required to be escrowed by the Mortgagor with the mortgagee pursuant to the Mortgage or any other document.

 

“Event of Default”
has the meaning specified in Section 15 hereof.

 

“Event of Termination”
means with respect to Seller or Guarantor (i) with respect to any Plan, a reportable event, as defined in Section 4043 of ERISA,
as to which the PBGC has not by regulation waived the requirement of Section 4043(a) of ERISA that it be notified with 30 days
of the occurrence of such event, or (ii) the withdrawal of Seller, Guarantor or any ERISA Affiliate thereof from a Plan during
a plan year in which it is a substantial employer, as defined in Section 4001(a)(2) of ERISA, or (iii) the failure by Seller, Guarantor
or any ERISA Affiliate thereof to meet the minimum funding standard of Section 412 of the Code or Section 302 of ERISA with respect
to any Plan, including, without limitation, the failure to make on or before its due date a required installment under Section
412(m) of the Code (or Section 430 (j) of the Code as amended by the Pension Protection Act) or Section 302(e) of ERISA (or Section
303 (j) of ERISA, as amended by the Pension Protection Act), or (iv) the distribution under Section 4041 of ERISA of a notice of
intent to terminate any Plan or any action taken by Seller, Guarantor or any ERISA Affiliate thereof to terminate any plan, or
(v) the failure to meet requirements of Section 436 of the Code resulting in the loss of qualified status under Section 401(a)(29)
of the Code, or (vi) the institution by the PBGC of proceedings under Section 4042 of ERISA for the termination of, or the appointment
of a trustee to administer, any Plan, or (vii) the receipt by Seller, Guarantor or any ERISA Affiliate thereof of a notice from
a Multiemployer Plan that action of the type described in the previous clause (vi) has been taken by the PBGC with respect to such
Multiemployer Plan, or (viii) any event or circumstance exists which may reasonably be expected to constitute grounds for Seller,
Guarantor or any ERISA Affiliate thereof to incur liability under Title IV of ERISA or under Sections 412 (b) or 430 (k) of the
Code with respect to any Plan.

 

 

    	 	- 7 -	 

     

    

 

“Exception Mortgage
Loan” means any Mortgage Loan which is otherwise ineligible for purchase hereunder, or which otherwise becomes ineligible
for purchase hereunder and which is approved by Buyer in its sole discretion; provided, that upon 30 days’
notice to Seller, Buyer may change such Exception Mortgage Loan approval fee. Buyer’s approval of a Mortgage Loan as an Exception
Mortgage Loan shall expire on the earlier of (a) the date set forth by Buyer in the written notice that such Mortgage Loan is approved
as an Exception Mortgage Loan (an “Exception Notice”) or (b) the occurrence of any additional event, other than
that set forth in the Exception Notice, which would cause the Mortgage Loan to become ineligible for purchase hereunder. The Pricing
Rate, Market Value, Purchase Price and Buyer’s Asset Value with respect to Exception Mortgage Loans shall be set in the sole
discretion of Buyer. Buyer may at any time, and in its sole discretion, no longer consider a Mortgage Loan an Exception Mortgage
Loan, in which case such Mortgage Loan shall have a Market Value of zero.

 

“Existing Indebtedness”
has the meaning specified in Section 13(a)(23) hereof.

 

“Fannie Mae”
means Fannie Mae, the government sponsored enterprise formerly known as the Federal National Mortgage Association.

 

“FHA”
means the Federal Housing Administration, an agency within the United States Department of Housing and Urban Development, or any
successor thereto, and including the Federal Housing Commissioner and the Secretary of Housing and Urban Development where appropriate
under the FHA Regulations.

 

“FHA 203(k)
Loan” means an FHA Loan that is eligible for FHA’s 203(k) loan program.

 

“FHA Approved
Mortgagee” means a corporation or institution approved as a mortgagee by the FHA under the National Housing Act, as amended
from time to time, and applicable FHA Regulations, and eligible to own and service mortgage loans such as the FHA Loans.

 

“FHA Loan”
means a Mortgage Loan which is the subject of an FHA Mortgage Insurance Contract.

 

 

    	 	- 8 -	 

     

    

 

“FHA Mortgage
Insurance” means, mortgage insurance authorized under the National Housing Act, as amended from time to time, and provided
by the FHA.

 

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

 

“FHA Regulations”
means the regulations promulgated by the Department of Housing and Urban Development under the National Housing Act, as amended
from time to time and codified in 24 Code of Federal Regulations, and other Department of Housing and Urban Development issuances
relating to FHA Loans, including the related handbooks, circulars, notices and mortgagee letters.

 

“FICO”
means Fair Isaac & Co., or any successor thereto.

 

“Fidelity Insurance”
shall mean insurance coverage with respect to employee errors, omissions, dishonesty, forgery, theft, disappearance and destruction,
robbery and safe burglary, property (other than money and securities) and computer fraud in an aggregate amount acceptable to Seller’s
regulators.

 

“Foreclosed
Loan” means a Mortgage Loan, the property securing which has been foreclosed upon by Seller.

 

“Freddie Mac”
means the Federal Home Loan Mortgage Corporation or any successor thereto.

 

“Freddie Mac
Guide” means any and all rules, regulations, requirements and guidelines of Freddie Mac applicable to Freddie Mac SBL
Loans, as the same may be amended from time to time, including without limitation the Freddie Mac Multifamily Seller/Servicer Guide.

 

“Freddie Mac
SBL Loan” means a small balance Mortgage
Loan providing financing for the acquisition or refinance of conventional multifamily housing with five residential units or more
and eligible for delivery to Freddie Mac under the terms of the Freddie Mac Guide.

 

“GAAP”
means generally accepted accounting principles in effect from time to time in the United States of America and applied on a consistent
basis.

 

“GNMA”
means the Government National Mortgage Association and any successor thereto.

 

“GNMA Account”
means (a) the account designated as: Seller as agent, trustee, and/or bailee for Buyer and/or payments of various mortgagors and/or
various owners of interest in loans – EBO P&I, Account No. 555230001, City National Bank, ABA # 122016066, (b) the
account designated as: Seller as agent, trustee, and/or bailee for Buyer and/or payments of various mortgagors and/or various owners
of interest in loans – FHA/VA Claims, Account No. 555230036, City National Bank, ABA # 122016066, or (c) such other
account as designated in writing by Buyer, in each case, as contemplated by Section 14.ii hereof.

 

 

    	 	- 9 -	 

     

    

 

“GNMA Guide”
means the GNMA Mortgage-Backed Securities Guide, Handbook 5500.3, Rev. 1, as amended from time to time, and any related announcements,
directives and correspondence issued by GNMA.

 

“GNMA Loan”
means any Purchased Mortgage Loan that is subject to a Transaction hereunder and was purchased from a GNMA Security in accordance
with the terms of the GNMA Guide, or purchased by the Seller shortly after its purchase from a GNMA Security.

 

“GNMA Security”
means a mortgage-backed security guaranteed by GNMA pursuant to the GNMA Guide.

 

“Governmental
Authority” means any nation or government, any state or other political subdivision thereof, or any entity exercising
executive, legislative, judicial, regulatory or administrative functions over Seller, Guarantor or Buyer, as applicable.

 

“Gross Margin”
means, with respect to each adjustable rate Mortgage Loan, the fixed percentage amount set forth in the related Mortgage Note.

 

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

 

“Guarantor”
means Private National Mortgage Acceptance Company, LLC, in its capacity as guarantor under the Guaranty.

 

“Guaranty”
means the guaranty of Private National Mortgage Acceptance Company, LLC dated as August 14, 2009 as the same may be amended from
time to time, pursuant to which Guarantor fully and unconditionally guarantees the obligations of Seller hereunder as it may be
amended, supplemented or otherwise modified from time to time.

 

“High Cost Mortgage
Loan” means a Mortgage Loan classified as (a) a “high cost” loan under the Home Ownership and Equity
Protection Act of 1994 or (b) a “high cost,” “threshold,” “covered,” or “predatory”
loan under any other applicable state, federal or local law (or a similarly classified loan using different terminology under a
law, regulation or ordinance imposing heightened regulatory scrutiny or additional legal liability for residential mortgage loans
having high interest rates, points and/or fees).

 

 

    	 	- 10 -	 

     

    

 

 

“HUD”
means the United States Department of Housing and Urban Development or any successor thereto.

 

“Income”
means with respect to any Purchased Mortgage Loan at any time until repurchased by Seller, any principal received thereon or in
respect thereof and all interest, dividends or other distributions thereon.

 

“Indebtedness”
means, for any Person at any time, and only to the extent outstanding at such time: (a) obligations created, issued or incurred
by such Person for borrowed money (whether by loan, the issuance and sale of debt securities or the sale of Property to another
Person subject to an understanding or agreement, contingent or otherwise, to repurchase such Property from such Person); (b) obligations
of such Person to pay the deferred purchase or acquisition price of Property or services, other than trade accounts payable (other
than for borrowed money) arising, and accrued expenses incurred, in the ordinary course of business, so long as such trade accounts
payable are payable within 90 days after the date the respective goods are delivered or the respective services are rendered; (c)
Indebtedness of others secured by a Lien on the Property of such Person, whether or not the respective Indebtedness so secured
has been assumed by such Person; (d) obligations (contingent or otherwise) of such Person in respect of letters of credit or similar
instruments issued or accepted by banks and other financial institutions for the account of such Person; (e) Capital Lease Obligations
of such Person; (f) obligations of such Person under repurchase agreements, sale/buy-back agreements or like arrangements, including,
without limitation, any Indebtedness arising hereunder; (g) Indebtedness of others Guaranteed by such Person; (h) all obligations
of such Person incurred in connection with the acquisition or carrying of fixed assets by such Person; (i) Indebtedness of general
partnerships of which such Person is a general partner; and (j) with respect to clauses (a) – (i) above, both on and off
balance sheet.

 

“Index”
means, with respect to any adjustable rate Mortgage Loan, the index identified on the Mortgage Loan Schedule and set forth in the
related Mortgage Note for the purpose of calculating the applicable Mortgage Interest Rate.

 

“Interest Only
Adjustment Date” means, with respect to each Interest Only Loan, the date, specified in the related Mortgage Note on
which the Monthly Payment will be adjusted to include principal as well as interest.

 

“Interest Only
Loan” means a Mortgage Loan which only requires payments of interest for a period of time specified in the related Mortgage
Note.

 

“Interest Rate
Adjustment Date” means the date on which an adjustment to the Mortgage Interest Rate with respect to each Mortgage Loan
becomes effective.

 

“Interest Rate
Protection Agreement” means, with respect to any or all of the Purchased Mortgage Loans, any short sale of a US Treasury
Security, or futures contract, or mortgage related security, or Eurodollar futures contract, or options related contract, or interest
rate swap, cap or collar agreement or Take-out Commitment, or similar arrangement providing for protection against fluctuations
in interest rates or the exchange of nominal interest obligations, either generally or under specific contingencies, entered into
by Seller and an Affiliate of Buyer or such other party acceptable to Buyer in its sole discretion, which agreement is acceptable
to Buyer in its sole discretion.

 

 

    	 	- 11 -	 

     

    

 

“Irrevocable
Instruction Letter” shall have the meaning assigned to such term in Section 8(b) hereof.

 

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

 

“Loan to Value
Ratio” or “LTV” means with respect to any Mortgage Loan, the ratio of the original outstanding principal
amount of such Mortgage Loan to the lesser of (a) the Appraised Value of the Mortgaged Property at origination or (b) if the Mortgaged
Property was purchased within 12 months of the origination of such Mortgage Loan, the purchase price of the Mortgaged Property.

 

“Low Percentage
Margin Call” has the meaning specified in Section 6(b) hereof.

 

“Margin Call”
has the meaning specified in Section 6(a) hereof.

 

“Margin Deadline”
has the meaning specified in Section 6(b) hereof.

 

“Margin Deficit”
has the meaning specified in Section 6(a) hereof.

 

“Market Value”
has the meaning assigned to such term in the Pricing Side Letter.

 

“Material Adverse
Effect” means (a) a material adverse change in, or a material adverse effect upon, the operations, business, properties,
condition (financial or otherwise) or prospects of Seller, Guarantor or any Affiliate that is a party to any Program Agreement
taken as a whole; (b) a material impairment of the ability of Seller, Guarantor or any Affiliate that is a party to any Program
Agreement to perform under any Program Agreement and to avoid any Event of Default; or (c) a material adverse effect upon
the legality, validity, binding effect or enforceability of any Program Agreement against Seller, Guarantor or any Affiliate that
is a party to any Program Agreement.

 

“Maximum Regular
Way Committed Purchase Price” has the meaning set forth in the Pricing Side Letter.

 

“Maximum Regular
Way Purchase Price” has the meaning set forth in the Pricing Side Letter.

 

“MERS”
means Mortgage Electronic Registration Systems, Inc., a corporation organized and existing under the laws of the State of Delaware,
or any successor thereto.

 

“MERS System”
means the system of recording transfers of mortgages electronically maintained by MERS.

 

“Monthly Payment”
means the scheduled monthly payment of principal and/or interest on a Mortgage Loan.

 

 

    	 	- 12 -	 

     

    

 

“Moody’s”
means Moody’s Investors Service, Inc. or any successors thereto.

 

“Mortgage”
means 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 lien on real property and other property and rights incidental thereto, unless such Mortgage is granted
in connection with a Co-op Loan, in which case the first lien position is in the stock of the subject cooperative association and
in the tenant’s rights in the cooperative lease relating to such stock.

 

“Mortgage File”
means, with respect to a Mortgage Loan, the documents and instruments relating to such Mortgage Loan and set forth in Exhibit
F-1 to the Custodial Agreement.

 

“Mortgage Interest
Rate” means the rate of interest borne on a Mortgage Loan from time to time in accordance with the terms of the related
Mortgage Note.

 

“Mortgage Interest
Rate Cap” means, with respect to an adjustable rate Mortgage Loan, the limit on each Mortgage Interest Rate adjustment
as set forth in the related Mortgage Note.

 

“Mortgage Loan”
means any Agency Mortgage Loan, Non-Agency QM Mortgage Loan, GNMA Loan or Pooled Mortgage Loan which is a fixed or floating rate,
one to four family residential mortgage loan evidenced by a promissory note and secured by a mortgage, which satisfies the requirements
set forth in the Underwriting Guidelines and Section 13(b) hereof; provided, however, that, Mortgage Loans
shall not include any High Cost Mortgage Loans.

 

“Mortgage Loan
Documents” means the documents in the related Mortgage File to be delivered to Custodian.

 

“Mortgage Loan
Schedule” means with respect to any Transaction as of any date, a mortgage loan schedule in the form of either (a) Exhibit C
attached hereto or (b) a computer tape or other electronic medium generated by Seller or Guarantor, and delivered to Buyer and
Custodian, which provides information (including, without limitation, the information set forth on Exhibit C attached hereto)
relating to the Purchased Mortgage Loans in a format acceptable to Buyer.

 

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

 

“Mortgaged Property”
means the real property or other Co-op Loan collateral securing repayment of the debt evidenced by a Mortgage Note.

 

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

 

 

    	 	- 13 -	 

     

    

 

“MSR Valuation”
means the lesser of (i) the value of the mortgage servicing rights owned by the Seller as set forth in the Seller’s most
recent balance sheet as determined by the Seller as of such date in accordance with GAAP, (ii) the Buyer’s valuation of such
mortgage servicing rights as determined by the Buyer, or (iii) a Third Party Evaluator’s valuation of such mortgage servicing
rights as determined by such Third Party Evaluator.

 

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

 

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

 

“Net Worth”
means, with respect to any Person, an amount equal to, on a consolidated basis, such Person’s stockholder equity (determined
in accordance with GAAP).

 

“Net Worth Amount”
means, $5 million.

 

“1934 Act”
means the Securities Exchange Act of 1934, as amended from time to time.

 

“Non-Agency
QM Mortgage Loan” means a Mortgage Loan that (a)  meets all applicable criteria as set forth in the Underwriting
Guidelines, but (b) has an original principal balance in an amount in excess of the then applicable conventional conforming limits,
including general limits and high-cost area limits, for Mortgaged Properties securing Mortgage Loans in such county or local area;
provided, however, that Non-Agency QM Mortgage Loans shall not include any Mortgage Loan with an original principal
balance in excess of $2,000,000, and (c) is otherwise acceptable to Buyer in its sole discretion.

 

“Non-Performing
Mortgage Loan” means (i) any Mortgage Loan for which any payment of principal or interest is more than thirty (30) days
past due, (ii) any Mortgage Loan with respect to which the related mortgagor is in bankruptcy or (iii) any Mortgage Loan with respect
to which the related mortgaged property is in foreclosure.

 

“Non-Recourse
Debt” shall mean Indebtedness payable solely from the assets sold or pledged to secure such Indebtedness and under which
Indebtedness no party has recourse to Seller, Guarantor or any of their Affiliates if such assets are inadequate or unavailable
to pay off such Indebtedness, and neither Seller, Guarantor nor any of their Affiliates effectively has any obligation to directly
or indirectly pay any such deficiency.

 

“Notice Date”
has the meaning given to it in Section 3(b) hereof.

 

“Obligations”
means (a) all of Seller’s indebtedness, obligations to pay the Repurchase Price on the Repurchase Date, the Price Differential
on each Price Differential Payment Date, and other obligations and liabilities, to Buyer, its Affiliates or Custodian arising under,
or in connection with, the Program Agreements, whether now existing or hereafter arising; (b) any and all sums paid by Buyer
or on behalf of Buyer in order to preserve any Purchased Mortgage Loan or its interest therein; (c) in the event of any proceeding
for the collection or enforcement of any of Seller’s indebtedness, obligations or liabilities referred to in clause (a),
the reasonable expenses of retaking, holding, collecting, preparing for sale, selling or otherwise disposing of or realizing on
any Purchased Mortgage Loan, or of any exercise by Buyer of its rights under the Program Agreements, including, without limitation,
attorneys’ fees and disbursements and court costs; (d) all of Seller’s indemnity obligations to Buyer or Custodian
or both pursuant to the Program Agreements; and (e) all of Seller’s obligations under the Servicing Facility Documents.

 

    	 	- 14 -	 

     

    

 

“OFAC”
has the meaning set forth in Section 13(a)(27) hereof.

 

‘Officer’s
Compliance Certificate” has the meaning assigned to such term in the Pricing Side Letter.

 

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

 

“Pension Protection
Act” means the Pension Protection Act of 2006.

 

“Person”
means an individual, partnership, corporation (including a business trust), limited liability company, joint stock company, trust,
unincorporated association, joint venture or other entity, or a government or any political subdivision or agency thereof.

 

“Plan”
means an employee benefit or other plan established or maintained by any Seller or any ERISA Affiliate and covered by Title IV
of ERISA, other than a Multiemployer Plan.

 

“Pooled Mortgage
Loan” means any Purchased Mortgage Loan that is subject to a Transaction hereunder and is part of a pool of Purchased
Mortgage Loans certified by Custodian to an Agency to be either (a) purchased by such Agency or (b) swapped for an Agency Security
backed by such pool, in each case, in accordance with the terms of the guidelines issued by the applicable Agency.

 

“Post Default
Rate” has the meaning assigned to such term in the Pricing Side Letter.

 

“Power of Attorney”
has the meaning specified in Section 28 hereto.

 

“Price Differential”
means with respect to any Transaction as of any date of determination, an amount equal to the product of (A) the Pricing Rate
for such Transaction and (B) the Purchase Price for such Transaction, calculated daily on the basis of a 360-day year for
the actual number of days during the period commencing on (and including) the Purchase Date for such Transaction and ending on
(but excluding) the Repurchase Date.

 

“Price Differential
Payment Date” means, with respect to a Purchased Mortgage Loan, the 5th day of the month following the related
Purchase Date and each succeeding 5th day of the month thereafter; provided, that, with respect to such Purchased
Mortgage Loan, the final Price Differential Payment Date shall be the related Repurchase Date; and provided, further,
that if any such day is not a Business Day, the Price Differential Payment Date shall be the next succeeding Business Day.

 

    	 	- 15 -	 

     

    

 

“Pricing Rate”
has the meaning assigned such term in the Pricing Side Letter.

 

“Pricing Side
Letter” means the amended and restated letter agreement dated as of the date hereof, among Buyer, Seller and Guarantor
as the same may be amended from time to time.

 

“Program Agreements”
means, collectively, the Custodial Agreement, this Agreement, the Pricing Side Letter, the Electronic Tracking Agreement, if entered
into, the Guaranty, the Securities Account Control Agreement, the Power of Attorney and, with respect to each Exception Mortgage
Loan, a Purchase Confirmation.

 

“Prohibited
Person” has the meaning set forth in Section 13(a)(27) hereof.

 

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

 

“Proprietary
Lease” means the lease on a Co-op Unit evidencing the possessory interest of the owner in the Co-op Shares in such Co-op
Unit.

 

“Purchase Confirmation”
means a confirmation of a Transaction, in the form attached as Exhibit B hereto.

 

“Purchase Date”
means the date on which Purchased Mortgage Loans are to be transferred by Seller to Buyer.

 

“Purchase Price”
means the price at which each Purchased Mortgage Loan is transferred by Seller to Buyer, which shall equal:

 

(i) on the Purchase Date,
in the case of all Purchased Mortgage Loans, the lesser of either: (x) the product of (1) the Market Value of such Purchased Mortgage
Loan multiplied by (2) the applicable Purchase Price Percentage for such Mortgage Loan or (y) the product of (1) the outstanding
principal amount thereof as set forth on the related Mortgage Loan Schedule multiplied by (2) the applicable Purchase Price Percentage
for such Mortgage Loan; or

 

(ii) on any day
after the Purchase Date, except where Buyer and Seller agree otherwise, the amount determined under the immediately preceding clauses
(i) or (ii) decreased by the amount of any cash transferred by Seller to Buyer pursuant to Section 4(c) hereof or applied
to reduce Seller’s obligations under clause (ii) of Section 4(b) hereof or under Section 6 hereof.

 

“Purchase Price
Percentage” has the meaning assigned to such term in the Pricing Side Letter.

 

“Purchased Mortgage
Loans” means the collective reference to Mortgage Loans together with the Repurchase Assets related to such Mortgage
Loans transferred by Seller to Buyer in a Transaction hereunder, listed on the related Mortgage Loan Schedule attached to the related
Transaction Request, which such Mortgage Loans Custodian has been instructed to hold pursuant to the Custodial Agreement.

 

    	 	- 16 -	 

     

    

 

“Qualified Insurer”
means a mortgage guaranty insurance company duly authorized and licensed where required by law to transact mortgage guaranty insurance
business and approved as an insurer by Fannie Mae or Freddie Mac.

 

“Qualified Originator”
means an originator of Mortgage Loans which is acceptable under the Underwriting Guidelines.

 

“Recognition
Agreement” means, an agreement among a Co-op Corporation, a lender and a Mortgagor with respect to a Co-op Loan whereby
such parties (i) acknowledge that such lender may make, or intends to make, such Co-op Loan, and (ii) make certain agreements with
respect to such Co-op Loan.

 

“Records”
means all instruments, agreements and other books, records, and reports and data generated by other media for the storage of information
maintained by Seller, Servicer or any other person or entity with respect to a Purchased Mortgage Loan. Records shall include the
Mortgage Notes, any Mortgages, the Mortgage Files, the credit files related to the Purchased Mortgage Loan and any other instruments
necessary to document or service a Mortgage Loan.

 

“REO Property”
means real property acquired by Seller, including a Mortgaged Property acquired through foreclosure of a Mortgage Loan or by deed
in lieu of such foreclosure.

 

“Reporting Date”
means the 5th day of each month or, if such day is not a Business Day, the next succeeding Business Day.

 

“Repurchase
Assets” has the meaning assigned thereto in Section 8 hereof.

 

“Repurchase
Date” means the earliest of (i) the Termination Date, (ii) the date set forth in the applicable Purchase Confirmation,
(iii) the date determined by application of Section 16 hereof, (iv) the date identified to Buyer by Seller as the date that the
related Mortgage Loan is to be sold pursuant to a Take-out Commitment or (v) 30 days following the Purchase Date.

 

“Repurchase
Price” means the price at which Purchased Mortgage Loans are to be transferred from Buyer to Seller upon termination
of a Transaction, which will be determined in each case (including Transactions terminable upon demand) as the sum of the Purchase
Price and the accrued but unpaid Price Differential as of the date of such determination.

 

“Request for
Certification” means a notice sent to Custodian reflecting the sale of one or more Purchased Mortgage Loans to Buyer
hereunder.

 

“Requirement
of Law” means, with respect to any Person, any law, treaty, rule or regulation or determination of an arbitrator, a court
or other governmental authority, applicable to or binding upon such Person or any of its property or to which such Person or any
of its property is subject.

 

    	 	- 17 -	 

     

    

 

“Responsible
Officer” means as to any Person, the chief executive officer or, with respect to financial matters, the chief financial
officer of such Person; provided, however, that the Responsible Officers of Seller and Guarantor as of the date hereof are listed
on Schedule 3 hereto.

 

“S&P”
means Standard & Poor’s Ratings Services, or any successor thereto.

 

“SEC”
means the Securities and Exchange Commission, or any successor thereto.

 

“Securities
Account” means the account established pursuant to the Securities Account Control Agreement, into which all collections
and proceeds on or in respect of the Mortgage Loans shall be deposited by Servicer.

 

“Securities
Account Control Agreement” means that certain Amended and Restated Securities Account Control Agreement dated as of October
31, 2014, among Buyer, Buyer in its capacity as lender under the Servicing Facility Agreement, Seller, Seller in its capacity as
borrower under the Servicing Facility Agreement, Seller in its capacity as servicer under the Agreement, and Securities Intermediary
and other parties as joined thereto from time to time, as may be amended, supplemented or replaced from time to time.

 

“Securities
Intermediary” means City National Bank, and its permitted successors and assigns, or such other party specified by Buyer
and agreed to by Seller, which approval shall not be unreasonably withheld.

 

“Seller”
means PennyMac Loan Services, LLC or its permitted successors and assigns.

 

“Servicer”
means any servicer approved by Buyer in its sole discretion, which may be Seller or its permitted successors and assigns.

 

“Servicing Facility
Agreement” means that certain Master Repurchase Agreement (Participation Certificates and Servicing), dated November
10, 2015 among Seller, Private National Mortgage Acceptance Company, LLC and the Buyer, as amended from time to time (the “Repurchase
Agreement”), which amended and restated that certain Third Amended and Restated Loan and Security Agreement, dated March
27, 2015, as further amended from time to time.

 

“Servicing Facility
Documents” means the Servicing Facility Agreement and the other “Program Agreements” as defined in the Servicing
Facility Agreement.

 

“Servicing Facility
Rights” has the meaning assigned to such term in Section 8(b) hereof.

 

“Servicing Rights”
means rights of any Person to administer, service or subservice, the Purchased Mortgage Loans or to possess related Records.

 

“Settlement
Agent” means, with respect to any Transaction the subject of which is a Wet-Ink Mortgage Loan, the entity approved by
Buyer, in its sole good-faith discretion, which may be a title company, escrow company or attorney in accordance with local law
and practice in the jurisdiction where the related Wet-Ink Mortgage Loan is being originated. A Settlement Agent is deemed approved
unless Buyer notifies Seller otherwise at any time electronically or in writing.

 

    	 	- 18 -	 

     

    

 

“SIPA”
means the Securities Investor Protection Act of 1970, as amended from time to time.

 

“Stock Certificate”
means, with respect to a Co-op Loan, the certificates evidencing ownership of the Co-op Shares issued by the Co-op Corporation.

 

“Stock Power”
means, with respect to a Co-op Loan, an assignment of the Stock Certificate or an assignment of the Co-op Shares issued by the
Co-op Corporation.

 

“Streamlined
Mortgage Loan” means an FHA Loan originated in accordance with FHA’s streamlined mortgage loan refinance program
as set forth in FHA’s Underwriting Guidelines.

 

“Subordinated
Debt” means, Indebtedness of Seller which is (i) unsecured, (ii) no part of the principal of such Indebtedness is required
to be paid (whether by way of mandatory sinking fund, mandatory redemption, mandatory prepayment or otherwise) prior to the date
which is one year following the Termination Date and (iii) the payment of the principal of and interest on such Indebtedness and
other obligations of Seller in respect of such Indebtedness are subordinated to the prior payment in full of the principal of and
interest (including post-petition obligations) on the Transactions and all other obligations and liabilities of Seller to Buyer
hereunder on terms and conditions approved in writing by Buyer and all other terms and conditions of which are satisfactory in
form and substance to Buyer.

 

“Subsidiary”
means, with respect to any Person, any corporation, partnership or other entity of which at least a majority of the securities
or other ownership interests having by the terms thereof ordinary voting power to elect a majority of the board of directors or
other persons performing similar functions of such corporation, partnership or other entity (irrespective of whether or not at
the time securities or other ownership interests of any other class or classes of such corporation, partnership or other entity
shall have or might have voting power by reason of the happening of any contingency) is at the time directly or indirectly owned
or controlled by such Person or one or more Subsidiaries of such Person or by such Person and one or more Subsidiaries of such
Person.

 

“Take-out Commitment”
means a commitment of Seller to either (a) sell one or more identified Mortgage Loans to a Take-out Investor or (b) (i) swap one
or more identified Mortgage Loans with a Take-out Investor that is an Agency for an Agency Security, and (ii) sell the related
Agency Security to a Take-out Investor, and in each case, the corresponding Take-out Investor’s commitment back to Seller
to effectuate any of the foregoing, as applicable. With respect to any Take-out Commitment with an Agency, the applicable agency
documents list Buyer as sole subscriber.

 

“Take-out Investor”
means (i) an Agency or (ii) other institution which has made a Take-out Commitment and has been approved by Buyer.

 

    	 	- 19 -	 

     

    

 

“Termination
Date” means the earlier of (a) March 30, 2017, and (b) the date of the occurrence of an Event of Default.

 

“Third Party
Evaluator” means an appraiser approved by Buyer in its sole good faith discretion.

 

“TILA-RESPA Integrated Disclosure
Rule” means the Truth-in-Lending Act and Real Estate Settlement Procedures Act Integrated Disclosure Rule, adopted by
the Consumer Finance Protection Bureau, which is effective for residential mortgage loan applications received on or after October
3, 2015.

 

“Trade Assignment”
means an assignment to Buyer of a forward trade between a Takeout Investor and Seller with respect to one or more Purchased Mortgage
Loans that are Pooled Mortgage Loans substantially in the form of Exhibit L hereto.

 

“Transaction”
has the meaning set forth in Section 1 hereof.

 

“Transaction
Request” means a request from Seller to Buyer, in the form attached as Exhibit A hereto, to enter into a
Transaction.

 

“Underwriting
Guidelines” means the standards, procedures and guidelines of Seller for underwriting Mortgage Loans, which are set forth
in the written policies and procedures of Seller, the Fannie Mae Single-Family Selling and Servicing Guide, the Freddie Mac Single-Family
Seller/Servicer Guide, the Freddie Mac Multifamily Seller/Servicer Guide, FHA Underwriting Guidelines or VA Underwriting Guidelines,
a copy of which is attached hereto as Exhibit F and such other guidelines as are identified and approved in writing
by Buyer.

 

“Unencumbered
Mortgage Servicing Rights” means any mortgage servicing rights that are not Encumbered Mortgage Servicing Rights.

 

“Uniform Commercial
Code” means the Uniform Commercial Code as in effect on the date hereof in the State of New York or the Uniform
Commercial Code as in effect in the applicable jurisdiction.

 

“USDA Loan”
means a first lien Mortgage Loan originated in accordance with the criteria established by and guaranteed by the United States
Department of Agriculture.

 

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

 

“VA Approved
Lender” means a lender which is approved by the VA to act as a lender in connection with the origination of VA Loans.

 

“VA Loan”
means a Mortgage Loan which is the subject of a VA Loan Guaranty Agreement as evidenced by a loan guaranty certificate, or a Mortgage
Loan which is a vendor loan sold by the VA.

 

    	 	- 20 -	 

     

    

 

“VA Loan Guaranty
Agreement” means the obligation of the United States to pay a specific percentage of a Mortgage Loan (subject to a maximum
amount) upon default of the Mortgagor pursuant to the Servicemen’s Readjustment Act, as amended.

 

“Violation Deadline”
has the meaning assigned thereto in Section 4(c) hereof.

 

“Wet-Ink Documents”
means, with respect to any Wet-Ink Mortgage Loan, the (a) Transaction Request and (b) the Mortgage Loan Schedule.

 

“Wet-Ink Mortgage
Loan” means a Mortgage Loan which Seller is selling to Buyer simultaneously with the origination thereof or in the case
of a GNMA Loan, Seller is selling to Buyer simultaneously with the purchase of such Mortgage Loan from a GMNA Security.

 

3.Program;
Initiation of Transactions

 

a.From time to time,
Buyer will purchase from Seller certain Mortgage Loans that have either been originated by Seller or purchased by Seller from a
Correspondent Seller. This Agreement is a commitment by Buyer to enter into Transactions with Seller for an aggregate amount
equal to the Maximum Regular Way Committed Purchase Price. This Agreement is not a commitment by Buyer to enter into Transactions
with Seller for amounts exceeding the Maximum Regular Way Committed Purchase Price, but rather, sets forth the procedures to be
used in connection with periodic requests for Buyer to enter into Transactions with Seller. Seller hereby acknowledges that, beyond
the Maximum Regular Way Committed Purchase Price, Buyer is under no obligation to agree to enter into, or to enter into, any Transaction
pursuant to this Agreement. All Purchased Mortgage Loans shall exceed or meet the Underwriting Guidelines, and shall be serviced
by Servicer. The aggregate Purchase Price of Purchased Mortgage Loans subject to outstanding Transactions shall not exceed the
Maximum Regular Way Purchase Price.

 

b.With respect to
each Transaction involving Mortgage Loans which are not Wet-Ink Mortgage Loans, Seller shall give Buyer and Custodian at least
2 Business Day’s prior notice of any proposed Purchase Date (the date on which such notice is given, the “Notice
Date”); provided, that if Seller is delivering 200 or more Mortgage Loans, which are not Wet-Ink Mortgage Loans, on a
Purchase Date, the number of Business Days prior to the related Purchase Date by which the notice shall be delivered shall be increased
by one (1) additional Business Day for each 200 Mortgage Loans in excess of 200 Mortgage Loans. With respect to Wet-Ink Mortgage
Loans, Seller shall deliver notice of any proposed purchase on or before 3:00 p.m. (New York City time) on the Purchase Date. On
the Notice Date, Seller shall (i) request that Buyer enter into a Transaction by furnishing to Buyer a Transaction Request,
(ii) deliver to Buyer and Custodian a Mortgage Loan Schedule and (iii) deliver to Custodian, or Buyer, with respect to
each Wet-Ink Mortgage Loan, either a Request for Certification and each Mortgage File or Wet-Ink Documents for each Wet-Ink Mortgage
Loan, as applicable, in accordance with Section 10(b)(3) hereof. With respect to requested Transactions that would cause the aggregate
outstanding Purchase Price for all outstanding Transactions to exceed the Maximum Regular Way Committed Purchase Price, Buyer may
enter into such requested Transaction or may notify Seller of its intention not to enter into such Transaction. In the event the
Mortgage Loan Schedule provided by Seller contains erroneous computer data, is not formatted properly or the computer fields are
otherwise improperly aligned, Buyer shall provide written or electronic notice to Seller describing such error and Seller may either
(a) give Buyer written or electronic authority to correct the computer data, reformat the Mortgage Loans or properly align the
computer fields or (b) correct the computer data, reformat or properly align the computer fields itself and resubmit the Mortgage
Loan Schedule as required herein. In the event that Seller gives Buyer authority to correct the computer data, reformat the Mortgage
Loan Schedule or properly align the computer fields, Seller shall hold Buyer harmless for such correction, reformatting or realigning,
as applicable, except as otherwise expressly provided herein.

 

    	 	- 21 -	 

     

    

 

c.With respect to
each Exception Mortgage Loan, upon receipt of the Transaction Request, Buyer shall, consistent with this Agreement, specify the
terms for such proposed Transaction, including the Purchase Price, the Pricing Rate, the Market Value and the Repurchase Date in
respect of such Transaction. The terms thereof shall be set forth in the Purchase Confirmation to be delivered to Seller on or
prior to the Purchase Date.

 

d.With respect to
each Exception Mortgage Loan, the Purchase Confirmation, together with this Agreement, shall constitute conclusive evidence of
the terms agreed between Buyer and Seller with respect to the Transaction to which the Purchase Confirmation relates, and Seller’s
acceptance of the related proceeds shall constitute Seller’s agreement to the terms of such Purchase Confirmation. It is
the intention of the parties that, with respect to each Exception Mortgage Loan, each Purchase Confirmation shall not be separate
from this Agreement but shall be made a part of this Agreement. In the event of any conflict between this Agreement and, with respect
to each Exception Mortgage Loan, a Purchase Confirmation, the terms of the Purchase Confirmation shall control with respect to
the related Transaction.

 

e.Upon the satisfaction
of the applicable conditions precedent set forth in Section 10 hereof, all of Seller’s interest in the Repurchase Assets
shall pass to Buyer on the Purchase Date, against the transfer of the Purchase Price to Seller. Upon transfer of the Mortgage Loans
to Buyer as set forth in this Section and until termination of any related Transactions as set forth in Sections 4 or 16 of this
Agreement, ownership of each Mortgage Loan, including each document in the related Mortgage File and Records, is vested in Buyer;
provided that, prior to the recordation by Custodian as provided for in the Custodial Agreement record title in the name
of Seller to each Mortgage shall be retained by Seller for the benefit of Buyer, for the sole purpose of facilitating the servicing
and the supervision of the servicing of the Mortgage Loans.

 

    	 	- 22 -	 

     

    

 

f.With respect to
each Wet-Ink Mortgage Loan, by no later than 12:00 noon, (New York City time) on the seventh Business Day following the applicable
Purchase Date, Seller shall cause the related Settlement Agent to deliver to Custodian the remaining documents in the Mortgage
File.

 

g.Buyer hereby appoints
and authorizes Agent to act as agent solely with respect to performance of the following duties, in each case, on behalf of Buyer
to the extent contemplated by Section 14.ii: (i) receiving from HUD and VA all amounts with respect to all Purchased Mortgage Loans
that are GNMA Loans, (ii) maintaining the GNMA Account, (iii) taking such actions as Agent deems appropriate to administer the
GNMA Account, and (iv) acting as mortgagee of record with respect to the GNMA Loans pursuant to Section 14.ii hereof. The Agent
shall have no duties or responsibilities except those expressly set forth in this Section 3.g.

 

4.Repurchase

 

a.Seller shall repurchase
the related Purchased Mortgage Loans from Buyer on each related Repurchase Date. Such obligation to repurchase exists without regard
to any prior or intervening liquidation or foreclosure with respect to any Purchased Mortgage Loan (but liquidation or foreclosure
proceeds received by Buyer shall be applied to reduce the Repurchase Price for such Purchased Mortgage Loan on each Price Differential
Payment Date except as otherwise provided herein). Seller is obligated to repurchase and take physical possession of the Purchased
Mortgage Loans from Buyer or its designee (including Custodian) at Seller’s expense on the related Repurchase Date. To the
extent that (i) the Repurchase Date shall have occurred, (ii) there exists no Default, (iii) Seller wishes to enter into a new
Transaction with respect to the related Mortgage Loans, (iv) such Mortgage Loans have a Market Value in excess of zero and (v)
the Purchase Price shall not cause the aggregate Purchase Price of all Transactions to exceed the Maximum Regular Way Committed
Purchase Price nor cause a Margin Deficit, then Seller may request a new Transaction in accordance with the provisions of Section
3 hereof and Buyer shall enter the same.

 

b.Provided that no
Default shall have occurred and is continuing, and Buyer has received the related Repurchase Price upon repurchase of the Purchased
Mortgage Loans, Buyer agrees to release its ownership interest hereunder in the Purchased Mortgage Loans (including, the Repurchase
Assets related thereto) at the request of Seller. With respect to payments in full by the related Mortgagor of a Purchased Mortgage
Loan, Seller agrees to (i) provide Buyer with a copy of a report from the related Servicer indicating that such Purchased
Mortgage Loan has been paid in full, (ii) remit to Buyer, within two Business Days, the Repurchase Price with respect to such Purchased
Mortgage Loans and (iii)  provide Buyer a notice specifying each Purchased Mortgage Loan that has been prepaid in full. Buyer
agrees to release its ownership interest in Purchased Mortgage Loans which have been prepaid in full after receipt of evidence
of compliance with clauses (i) through (iii) of the immediately preceding sentence.

 

 

    	 	- 23 -	 

     

    

 

c.In the event that
at any time any Purchased Mortgage Loan violates the applicable sublimit set forth in the definition of Asset Value, Buyer may,
in its sole discretion, redesignate such Mortgage Loan as an Exception Mortgage Loan. If Buyer does not redesignate such Mortgage
Loan as an Exception Mortgage Loan, and if Seller fails to notify Buyer within one (1) Business Day following notice or knowledge
of such violation that Seller does not want to receive a bid for such Mortgage Loan as described below, Buyer or an Affiliate of
Buyer may offer to terminate Seller’s right and obligation to repurchase such Mortgage Loan by paying Seller a price to be
set by Buyer in its sole discretion (a “Bid”). Seller, within five (5) Business Days of receipt of Buyer’s
bid (the “Violation Deadline”) may, in its sole discretion, either (i) accept Buyer’s bid, terminating
Seller’s right to repurchase such Mortgage Loan under this Agreement or (ii) immediately repurchase the Mortgage Loan at
the Repurchase Price in accordance with this Section 4. Any amount paid by Buyer or its Affiliate to terminate Seller’s right
to repurchase a Purchased Mortgage Loan if a Bid is accepted pursuant to this Section shall be applied by Buyer toward the outstanding
Repurchase Price for the applicable Transaction.

 

5.Price Differential.

 

a.On each Business
Day that a Transaction is outstanding, the Pricing Rate shall be reset and, unless otherwise agreed, the accrued and unpaid Price
Differential shall be settled in cash on each related Price Differential Payment Date. Two Business Days prior to the Price Differential
Payment Date, Buyer shall give Seller written or electronic notice of the amount of the Price Differential due on such Price Differential
Payment Date. On the Price Differential Payment Date, Seller shall pay to Buyer the Price Differential for such Price Differential
Payment Date (along with any other amounts to be paid pursuant to Sections 7 and 35 hereof), by wire transfer in immediately available
funds.

 

b.If Seller fails
to pay all or part of the Price Differential by 3:00 p.m. (New York City time) on the related Price Differential Payment Date,
with respect to any Purchased Mortgage Loan, Seller shall be obligated to pay to Buyer (in addition to, and together with, the
amount of such Price Differential) interest on the unpaid Repurchase Price at a rate per annum equal to the Post Default Rate until
the Price Differential is received in full by Buyer.

 

6.Margin Maintenance

 

a.If at any time
the outstanding Purchase Price of any Purchased Mortgage Loan subject to a Transaction is greater than the Asset Value of such
Purchased Mortgage Loan subject to a Transaction (a “Margin Deficit”), then Buyer may by notice to any Seller
require Seller to transfer to Buyer cash in an amount at least equal to the Margin Deficit (such requirement, a “Margin
Call”).

 

 

    	 	- 24 -	 

     

    

 

b.Notice delivered
pursuant to Section 6(a) may be given by any written or electronic means. With respect to a Margin Call in the amount of less
than 5% of the Purchase Price for all Transactions (a “Low Percentage Margin Call”), any notice given before
5:00 p.m. (New York City time) on a Business Day shall be met, and the related Margin Call satisfied, no later than 5:00 p.m. (New
York City time) on the following Business Day; notice given after 5:00 p.m. (New York City time) on a Business Day shall be met,
and the related Margin Call satisfied, no later than 5:00 p.m. (New York City time) on the second Business Day following the date
of such notice. With respect to all Margin Calls other than Low Percentage Margin Calls, any notice given before 10:00 a.m. (New
York City time) on a Business Day shall be met, and the related Margin Call satisfied, no later than 5:00 p.m. (New York City time)
on such Business Day; notice given after 10:00 a.m. (New York City time) on a Business Day shall be met, and the related Margin
Call satisfied, no later than 5:00 p.m. (New York City time) on the following Business Day. The foregoing time requirements for
satisfaction of a Margin Call are referred to as the “Margin Deadlines”). The failure of Buyer, on any one or
more occasions, to exercise its rights hereunder, shall not change or alter the terms and conditions to which this Agreement is
subject or limit the right of Buyer to do so at a later date. Seller and Buyer each agree that a failure or delay by Buyer to exercise
its rights hereunder shall not limit or waive Buyer’s rights under this Agreement or otherwise existing by law or in any
way create additional rights for Seller.

 

c.In the event that
a Margin Deficit exists with respect to any Purchased Mortgage Loan, Buyer may retain any funds received by it to which Seller
would otherwise be entitled hereunder, which funds (i) shall be held by Buyer against the related Margin Deficit and (ii) may be
applied by Buyer against any Purchased Mortgage Loan for which the related Margin Deficit remains otherwise unsatisfied. Notwithstanding
the foregoing, Buyer retains the right, in its sole discretion, to make a Margin Call in accordance with the provisions of this
Section 6.

 

7.Income Payments

 

a.The Securities
Account shall be established by Servicer in accordance with the Securities Account Control Agreement concurrently with the execution
and delivery of this Agreement by Seller and Buyer. Buyer shall have sole dominion and control over the Securities Account. If
Income is paid in respect of any Purchased Mortgage Loan during the term of a Transaction, such Income shall be the property of
Buyer and shall be deposited in the Securities Account on a daily basis. Notwithstanding the foregoing, and provided no Event of
Default has occurred and is continuing, Buyer agrees that if a third-party Servicer is in place for any Purchased Mortgage Loans,
such Servicer shall deposit such Income to the Securities Account. Seller shall deposit all Income received in its capacity as
Servicer of any Purchased Mortgage Loans to the Securities Account in accordance with Section 12(c) hereof.

 

 

    	 	- 25 -	 

     

    

 

b.Provided that no
Event of Default has occurred and is continuing, funds deposited in the Securities Account shall be held therein until the next
Price Differential Payment Date. Subject to the terms of the Securities Account Control Agreement, Seller shall withdraw any funds
on deposit in the Securities Account and distribute such funds as follows:

 

(1)first,
to Buyer in payment of any accrued and unpaid Price Differential, to the extent not paid by Seller to Buyer pursuant to Section
5;

 

(2)second,
without limiting the rights of Buyer under Section 6 of this Agreement, to Buyer, in the amount of any unpaid Margin Deficit;

 

(3)third,
to Buyer in reduction of the Repurchase Price of the Purchased Mortgage Loans, an amount equal to the full or partial prepayments
of principal received on or with respect to such Purchased Mortgage Loans;

 

(4)fourth,
to the payment of all other costs and fees payable to Buyer pursuant to this Agreement; and

 

(5)fifth, to Seller,
any remaining amounts.

 

c.In the event that
an Event of Default has occurred and is continuing, notwithstanding any provision set forth herein, Seller shall remit all Income
received with respect to each Purchased Mortgage Loan into the Securities Account or such other account and on such other date
or dates as Buyer notifies Seller in writing.

 

d.Notwithstanding
any provision to the contrary in this Section 7, within two (2) Business Days of receipt by Seller of any prepayment of principal
in full, with respect to a Purchased Mortgage Loan, Seller shall remit such amount to Buyer and Buyer shall immediately apply any
such amount received by Buyer to reduce the amount of the Repurchase Price due upon termination of the related Transaction.

 

8.Security
Interest

 

a.Although the parties
intend that all Transactions hereunder be sales and purchases and not loans, in the event any such Transactions are deemed to be
loans, and in any event, Seller hereby pledges to Buyer as security for the performance by Seller of its Obligations and hereby
grants, assigns and pledges to Buyer a fully perfected first priority security interest in the Purchased Mortgage Loans, the Records,
and all related Servicing Rights, the Program Agreements (to the extent such Program Agreements and Seller’s right thereunder
relate to the Purchased Mortgage Loans), any related Take-out Commitments, any Property relating to the Purchased Mortgage Loans,
all insurance policies and insurance proceeds relating to any Purchased Mortgage Loan or the related Mortgaged Property, including,
but not limited to, any payments or proceeds under any related primary insurance, hazard insurance and FHA Mortgage Insurance Contracts
and VA Loan Guaranty Agreements (if any), Income, the Securities Account and any account to which such amount is deposited, Interest
Rate Protection Agreements, accounts (including any interest of Seller in escrow accounts) and any other contract rights, instruments,
accounts, payments, rights to payment (including payments of interest or finance charges) general intangibles and other assets
relating to the Purchased Mortgage Loans (including, without limitation, any other accounts) or any interest in the Purchased Mortgage
Loans, and any proceeds (including the related securitization proceeds) and distributions with respect to any of the foregoing
and any other property, rights, title or interests as are specified on a Transaction Request and/or Asset Confirm, in all instances,
whether now owned or hereafter acquired, now existing or hereafter created (collectively, the “Repurchase Assets”).

 

    	 	- 26 -	 

     

    

 

b.Buyer and Seller
hereby agree that in order to further secure Seller’s Obligations hereunder, Seller hereby grants to Buyer a security interest
in (i) Seller’s rights under the Servicing Facility Documents, including, without limitation, any rights to receive payments
thereunder or any rights to collateral thereunder whether now owned or hereafter acquired, now existing or hereafter created (collectively,
the “Servicing Facility Rights”) and (ii) all collateral however defined or described under the Servicing Facility
Documents to the extent not otherwise included under the definition of Collateral therein (such collateral, the “Additional
Collateral”). Seller shall deliver an irrevocable instruction (the “Irrevocable Instruction Letter”)
to the buyer under the Servicing Facility Documents that upon receipt of a notice of an Event of Default under this Agreement,
the buyer thereunder is authorized and instructed to remit to Buyer hereunder directly any amounts otherwise payable to Seller
and to deliver to Buyer all collateral otherwise deliverable to Seller. In furtherance of foregoing, the Irrevocable Instruction
Letter shall also require, upon repayment of the entire Obligations (as defined in the Servicing Facility Documents) under the
Servicing Facility Agreement and the termination of all obligations of the buyer thereunder or other termination of the Servicing
Facility Documents following the repayment of all obligations thereunder that the buyer thereunder deliver to Buyer hereunder any
collateral then in its possession or control.

 

The foregoing provisions
(a) and (b) are intended to constitute a security agreement or other arrangement or other credit enhancement related to the Agreement
and Transactions hereunder as defined under Sections 101(47)(v) and 741(7)(x) of the Bankruptcy Code.

 

Seller agrees to execute,
deliver and/or file such documents and perform such acts as may be reasonably necessary to fully perfect Buyer’s security
interest created hereby. Furthermore, Seller hereby authorizes Buyer to file financing statements relating to the Repurchase Assets,
as Buyer, at its option, may deem appropriate. Seller shall pay the filing costs for any financing statement or statements prepared
pursuant to this Section 8.

 

    	 	- 27 -	 

     

    

 

With respect to the Additional
Collateral, Sections 4.04, 4.05 and 4.06 of the Servicing Facility Agreement are deemed to apply and are incorporated
by reference herein.

 

9.Payment
and Transfer

 

Unless otherwise mutually
agreed in writing, all transfers of funds to be made by Seller hereunder shall be made in Dollars, in immediately available funds,
without deduction, set-off or counterclaim, to Buyer at the following account maintained by Buyer: Account No. 30809505, for the
account of CSFB Buyer/PennyMac Loan Services, LLC Seller-Inbound Account, Citibank, ABA No. 021 000 089 or such other account as
Buyer shall specify to Seller in writing. Seller acknowledges that it has no rights of withdrawal from the foregoing account. All
Purchased Mortgage Loans transferred by one party hereto to the other party shall be in the case of a purchase by Buyer in suitable
form for transfer or shall be accompanied by duly executed instruments of transfer or assignment in blank and such other documentation
as Buyer may reasonably request. All Purchased Mortgage Loans shall be evidenced by an Asset Confirm. Any Repurchase Price received
by Buyer after 2:00 p.m. (New York City time) shall be deemed received on the next succeeding Business Day.

 

10.Conditions
Precedent

 

a.Initial Transaction.
As conditions precedent to the effectiveness of this Agreement on the Amendment Effective Date, Buyer shall have received on or
before the Amendment Effective Date the following, in form and substance satisfactory to Buyer and duly executed by Seller, Guarantor
and each other party thereto:

 

(1)Program Agreements.
The Program Agreements (including, without limitation, the Guaranty and a Custodial Agreement in a form acceptable to Buyer) duly
executed and delivered by the parties thereto and being in full force and effect, free of any modification, breach or waiver.

 

(2)Security Interest.
Evidence that all other actions necessary or, in the opinion of Buyer, desirable to perfect and protect Buyer’s interest
in the Purchased Mortgage Loans and other Repurchase Assets have been taken, including, without limitation, duly authorized and
filed Uniform Commercial Code financing statements on Form UCC-1.

 

(3)Organizational
Documents. A certificate of the corporate secretary of each of Seller and Guarantor substantially in the form of Exhibit
G hereto, attaching certified copies of Seller’s and Guarantor’s charter, bylaws and corporate resolutions approving
the Program Agreements and transactions thereunder (either specifically or by general resolution) and all documents evidencing
other necessary corporate action or governmental approvals as may be required in connection with the Program Agreements.

 

(4)Good Standing
Certificate. A certified copy of a good standing certificate from the jurisdiction of organization of Seller and Guarantor,
dated as of no earlier than ten (10) Business Days prior to the Amendment Effective Date.

 

    	 	- 28 -	 

     

    

 

(5)Incumbency
Certificate. An incumbency certificate of the corporate secretary of each of Seller and Guarantor, certifying the names, true
signatures and titles of the representatives duly authorized to request transactions hereunder and to execute the Program Agreements.

 

(6)Opinion of
Counsel. An opinion of Seller’s and Guarantor’s internal counsel, in form and substance mutually agreed upon by
parties hereto.

 

(7)Underwriting
Guidelines. A true and correct copy of the Underwriting Guidelines certified by an officer of Seller.

 

(8)Fees. Payment
of any fees due to Buyer hereunder.

 

(9)Irrevocable
Instruction Letter. The Irrevocable Instruction Letter duly executed and delivered by Seller and being in full force and effect,
free of any modification or waiver.

 

(10)Amended and
Restated Power of Attorney. The Amended and Restated Power of Attorney duly executed by Seller.

 

b.All Transactions.
The obligation of Buyer to enter into each Transaction pursuant to this Agreement is subject to the following conditions precedent:

 

(1)Due Diligence
Review. Without limiting the generality of Section 35 hereof, Buyer shall have completed, to its satisfaction, its due diligence
review of the related Mortgage Loans and Seller, Guarantor and the Servicer.

 

(2)Required Documents.

 

(a)With respect
to each Purchased Mortgage Loan which is not a Wet-Ink Mortgage Loan, the Mortgage File has been delivered to the Custodian in
accordance with the Custodial Agreement;

 

(b)With respect
to each Wet-Ink Mortgage Loan, the Wet-Ink Documents have been delivered to Buyer or Custodian, as the case may be, in accordance
with the Custodial Agreement.

 

(c)With respect
to each Correspondent Loan in which a third party lender has a secured interest, Buyer shall have received a Correspondent Release
for such Purchased Mortgage Loan that is duly executed and delivered by such third party lender on or prior to the Purchase Date.

 

(d) With respect
to each Correspondent Loan, the related Correspondent Seller shall either be identified on Schedule 6 to the most recent Officer’s
Certificate or otherwise approved by Buyer on or prior to the Purchase Date, and in either case Seller shall not have received
notice from Buyer that such Correspondent Seller is no longer approved.

 

    	 	- 29 -	 

     

    

 

(3)Transaction
Documents. Buyer or its designee shall have received on or before the day of such Transaction (unless otherwise specified in
this Agreement) the following, in form and substance satisfactory to Buyer and (if applicable) duly executed:

 

(a)A Transaction
Request delivered pursuant to Section 3(c) hereof and a Purchase Confirmation, if applicable.

 

(b)The Request
for Certification and the related Custodial Mortgage Loan Schedule, and the Asset Confirm.

 

(c)Such certificates,
opinions of counsel or other documents as Buyer may reasonably request.

 

(4)No Default.
No Default or Event of Default shall have occurred and be continuing.

 

(5)Requirements
of Law. Buyer shall not have determined that the introduction of or a change in any Requirement of Law or in the interpretation
or administration of any Requirement of Law applicable to Buyer has made it unlawful, and no Governmental Authority shall have
asserted that it is unlawful, for Buyer to enter into Transactions with a Pricing Rate based on the Base Rate.

 

(6)Representations
and Warranties. Both immediately prior to the related Transaction and also after giving effect thereto and to the intended
use thereof, the representations and warranties made by Seller in each Program Agreement shall be true, correct and complete on
and as of such Purchase Date in all material respects with the same force and effect as if made on and as of such date (or, if
any such representation or warranty is expressly stated to have been made as of a specific date, as of such specific date).

 

(7)Electronic
Tracking Agreement. To the extent Seller is selling Mortgage Loans which are registered on the MERS® System, an Electronic
Tracking Agreement entered into, duly executed and delivered by the parties thereto and being in full force and effect, free of
any modification, breach or waiver.

 

(8)Securities
Account Agreement. A Securities Account Agreement satisfactory to the Buyer, entered into, duly executed and delivered by Buyer,
Seller and Securities Intermediary and being in full force and effect, free of any modification, breach or waiver.

 

(9)Custodial Agreement.
A Custodial Agreement satisfactory to the Buyer, entered into, duly executed and delivered by Buyer, Seller and Custodian and being
in full force and effect, free of any modification, breach or waiver.

 

    	 	- 30 -	 

     

    

 

(10)Material Adverse
Change. None of the following shall have occurred and/or be continuing:

 

(a)Credit Suisse
First Boston, New York Branch’s corporate bond rating as calculated by S&P or Moody’s has been lowered or downgraded
to a rating below investment grade by S&P or Moody’s;

 

(b)an event or
events shall have occurred in the good faith determination of Buyer resulting in the effective absence of a “repo market”
or comparable “lending market” for financing debt obligations secured by mortgage loans or securities or an event or
events shall have occurred resulting in Buyer not being able to finance Purchased Mortgage Loans through the “repo market”
or “lending market” with traditional counterparties at rates which would have been reasonable prior to the occurrence
of such event or events; or

 

(c)an event or
events shall have occurred resulting in the effective absence of a “securities market” for securities backed by mortgage
loans or an event or events shall have occurred resulting in Buyer not being able to sell securities backed by mortgage loans at
prices which would have been reasonable prior to such event or events; or

 

(d)there shall
have occurred a material adverse change in the financial condition of Buyer which affects (or can reasonably be expected to affect)
materially and adversely the ability of Buyer to fund its obligations under this Agreement.

 

(11)Pooled Mortgage
Loans. Solely with respect to Transactions the subject of which are Pooled Mortgage Loans, Buyer shall have received the related
Trade Assignment on or prior to the Purchase Date with respect thereto.

 

(12)Ineligible
Loans. With respect to any Transaction, Buyer shall have determined in the course of its due diligence that the greater (by
count) of 5% or twenty (20) of the Mortgage Loans are ineligible for sale to Buyer in accordance with the terms of this Agreement.

 

(13)DE Compare
Ratio. Seller’s DE Compare Ratio is less than 200%; and

 

(14)No HUD Suspension.
HUD has not suspended Seller’s ability to originate FHA Loans in any jurisdiction.

 

(15)Freddie Mac
SBL Loans. With respect to any Transaction involving Freddie Mac SBL Loans, an amendment to the Custodial Agreement, addressing
delivery of such Freddie Mac SBL Loans, in a form acceptable to Buyer, duly executed and delivered by the parties thereto and being
in full force and effect, free of any modification, breach or waiver.

 

    	 	- 31 -	 

     

    

 

11.Program;
Costs

 

a.Seller shall pay
the fees and expenses of Buyer’s counsel in connection with the original preparation and execution of the Program Agreements.
Seller shall reimburse Buyer for any of Buyer’s reasonable out-of-pocket costs, including due diligence review costs and
reasonable attorney’s fees as further described below and in Section 35, incurred by Buyer in determining the acceptability
to Buyer of any Mortgage Loans. Seller shall also pay, or reimburse Buyer if Buyer shall pay, any termination fee, which may be
due any servicer. Legal fees for any subsequent amendments to this Agreement or related documents shall be borne by Seller. Seller
shall pay reasonable and customary ongoing custodial and securities intermediary fees and expenses as set forth on Exhibit K
hereto, and any other reasonable and customary ongoing fees and expenses under any other Program Agreement.

 

b.If Buyer determines
that, due to the introduction of, any change in, or the compliance by Buyer with (i) any eurocurrency reserve requirement
or (ii) the interpretation of any law, regulation or any guideline or request from any central bank or other Governmental
Authority (whether or not having the force of law), there shall be an increase in the cost to Buyer in engaging in the present
or any future Transactions, then Seller agrees to pay to Buyer, from time to time, upon demand by Buyer (with a copy to Custodian)
the actual cost of additional amounts as specified by Buyer to compensate Buyer for such increased costs; provided that
this Section 11(b) shall only apply to the extent that such increased costs are not reflected in Buyer’s calculation of the
Base Rate.

 

c.With respect to
any Transaction, Buyer may conclusively rely upon, and shall incur no liability to Seller in acting upon, any request or other
communication that Buyer reasonably believes to have been given or made by a person authorized to enter into a Transaction on Seller’s
behalf. In each such case, Seller hereby waives the right to dispute Buyer’s record of the terms of the Purchase Confirmation,
request or other communication.

 

d.Notwithstanding
the assignment of the Program Agreements with respect to each Purchased Mortgage Loan to Buyer, Seller agrees and covenants with
Buyer to enforce diligently Seller’s rights and remedies set forth in the Program Agreements.

 

e.Any payments made
by Seller or Guarantor to Buyer shall be free and clear of, and without deduction or withholding for, any taxes; provided, however,
that if such payer shall be required by law to deduct or withhold any taxes from any sums payable to Buyer, then such payer shall
(A) make such deductions or withholdings and pay such amounts to the relevant authority in accordance with applicable law, (B)
pay to Buyer the sum that would have been payable had such deduction or withholding not been made, and (C) at the time Price Differential
is paid, pay to Buyer all additional amounts as specified by Buyer to preserve the after-tax yield Buyer would have received if
such tax had not been imposed, and otherwise indemnify Buyer for any such taxes imposed.

 

    	 	- 32 -	 

     

    

 

12.Servicing

 

a.Seller shall service
the Mortgage Loans consistent with the degree of skill and care that Seller customarily requires with respect to similar Mortgage
Loans owned or managed by it and in accordance with Accepted Servicing Practices and Agency, GNMA, HUD, FHA and VA guidelines,
as applicable. The Servicer shall (i) comply with all applicable federal, state and local laws and regulations, (ii) maintain all
state and federal licenses necessary for it to perform its servicing responsibilities hereunder and (iii) not impair the rights
of Buyer in any Mortgage Loans or any payment thereunder. Buyer may terminate the servicing of any Mortgage Loan with the then
existing Servicer in accordance with Section 12(d) hereof.

 

b.Seller shall hold
or cause to be held all escrow funds collected by Seller as Servicer with respect to any Purchased Mortgage Loans in trust accounts
and shall apply the same for the purposes for which such funds were collected.

 

c.Seller shall deposit
all collections received by Seller as Servicer on the Purchased Mortgage Loans in the Securities Account on a daily basis within
one (1) Business Day following receipt; provided, however, that any amounts required to be remitted to Buyer shall be deposited
in the Securities Account on or prior to the day on which such remittance is to occur.

 

d.Upon the occurrence
and continuance of an Event of Default hereunder, Buyer shall have the right to immediately terminate Seller’s right to service
the Purchased Mortgage Loans without payment of any penalty or termination fee. Seller shall cooperate in transferring the servicing
of the Purchased Mortgage Loans to a successor servicer appointed by Buyer in its sole discretion.

 

e.If Seller should
discover that, for any reason whatsoever, Seller or any entity responsible to Seller for managing or servicing any such Purchased
Mortgage Loan has failed to perform fully Seller’s obligations under the Program Agreements or any of the obligations of
such entities with respect to the Purchased Mortgage Loans, Seller shall promptly notify Buyer.

 

f.Servicer shall
service the Purchased Mortgage Loans on behalf of Buyer for thirty (30) day intervals which will automatically terminate if not
renewed by Buyer (such renewal as evidenced by Buyer’s entry into a new Transaction).

 

g.For the avoidance
of doubt, Seller retains no economic rights to the servicing of the Purchased Mortgage Loans. As such, Seller expressly acknowledges
that the Purchased Mortgage Loans are sold to Buyer on a “servicing-released” basis with such servicing retained by
Seller.

 

    	 	- 33 -	 

     

    

 

13.Representations
and Warranties

 

a.Each of Seller
and Guarantor represents and warrants to Buyer as of the date hereof and as of each Purchase Date for any Transaction that:

 

(1)Seller and
Guarantor Existence. Each of Seller and Guarantor has been duly organized and is validly existing as a limited liability company
in good standing under the laws of the State of Delaware.

 

(2)Licenses.
Each of Seller and Guarantor is duly licensed or is otherwise qualified in each jurisdiction in which it transacts business for
the business which it conducts and is not in default of any applicable federal, state or local laws, rules and regulations unless,
in either instance, the failure to take such action is not reasonably likely (either individually or in the aggregate) to cause
a Material Adverse Effect and is not in default of such state’s applicable laws, rules and regulations. Seller has the requisite
power and authority and legal right to originate and purchase Mortgage Loans (as applicable) and to own, sell and grant a lien
on all of its right, title and interest in and to the Mortgage Loans. Each of Seller and Guarantor has the requisite power and
authority and legal right to execute and deliver, engage in the transactions contemplated by, and perform and observe the terms
and conditions of, this Agreement, each Program Agreement and any Transaction Request or, if applicable, Purchase Confirmation.
Seller is an FHA Approved Mortgagee.

 

(3)Power.
Each of Seller and Guarantor has all requisite corporate or other power, and has all governmental licenses, authorizations, consents
and approvals necessary to own its assets and carry on its business as now being or as proposed to be conducted, except where the
lack of such licenses, authorizations, consents and approvals would not be reasonably likely to have a Material Adverse Effect.

 

(4)Due Authorization.
Each of Seller and Guarantor has all necessary corporate or other power, authority and legal right to execute, deliver and perform
its obligations under each of the Program Agreements, as applicable. This Agreement, any Transaction Request, Purchase Confirmation
and the Program Agreements have been (or, in the case of Program Agreements and any Transaction Request, Purchase Confirmation
not yet executed, will be) duly authorized, executed and delivered by Seller and Guarantor, all requisite or other corporate action
having been taken, and each is valid, binding and enforceable against Seller and Guarantor in accordance with its terms except
as such enforcement may be affected by bankruptcy, by other insolvency laws, or by general principles of equity.

 

(5)Financial Statements.

 

a.Guarantor has
heretofore furnished to Buyer a copy of (a) its consolidated balance sheet and the consolidated balance sheets of its consolidated
Subsidiaries for the fiscal year of Guarantor ended December 31, 2012 and the related consolidated statements of income for Guarantor
and its consolidated Subsidiaries for such fiscal year, with the opinion thereon of Deloitte & Touche LLP and (b) its consolidated
balance sheets and the consolidated balance sheets of its consolidated Subsidiaries for the quarterly fiscal period of Guarantor
ended March 31, 2013 and the related consolidated statements of income for Guarantor and its consolidated Subsidiaries for such
quarterly fiscal periods. All such financial statements are complete and correct and fairly present, in all material respects,
the consolidated financial condition of Guarantor and its Subsidiaries and the consolidated results of their operations as at such
dates and for such fiscal periods, all in accordance with GAAP applied on a consistent basis. Since December 31, 2012, there has
been no material adverse change in the consolidated business, operations or financial condition of Guarantor and its consolidated
Subsidiaries taken as a whole from that set forth in said financial statements nor is Guarantor aware of any state of facts which
(with notice or the lapse of time) would or could result in any such material adverse change. Guarantor has, on the date of the
statements delivered pursuant to this Section (the “Statement Date”) no liabilities, direct or indirect, fixed
or contingent, matured or unmatured, known or unknown, or liabilities for taxes, long-term leases or unusual forward or long-term
commitments not disclosed by, or reserved against in, said balance sheet and related statements, and at the present time there
are no material unrealized or anticipated losses from any loans, advances or other commitments of Guarantor except as heretofore
disclosed to Buyer in writing.

 

    	 	- 34 -	 

     

    

 

b.Seller has heretofore
furnished to Buyer a copy of (a) its balance sheet for the fiscal year of Seller ended December 31, 2012 and the related statements
of income for Seller for such fiscal year, with the opinion thereon of Deloitte & Touche LLP and (b) its balance sheet for
the quarterly fiscal period of Seller ended March 31, 2013 and the related statements of income for Seller for such quarterly fiscal
period. All such financial statements are complete and correct and fairly present, in all material respects, the financial condition
of Seller and the results of its operations as at such dates and for such fiscal periods, all in accordance with GAAP applied on
a consistent basis. Since December 31, 2012, there has been no material adverse change in the consolidated business, operations
or financial condition of Seller from that set forth in said financial statements nor is Seller aware of any state of facts which
(with notice or the lapse of time) would or could result in any such material adverse change. Seller has, on the Statement Date
no liabilities, direct or indirect, fixed or contingent, matured or unmatured, known or unknown, or liabilities for taxes, long-term
leases or unusual forward or long-term commitments not disclosed by, or reserved against in, said balance sheet and related statements,
and at the present time there are no material unrealized or anticipated losses from any loans, advances or other commitments of
Seller except as heretofore disclosed to Buyer in writing.

 

(6)Event of Default.
There exists no Event of Default under Section 15(b) hereof, which default gives rise to a right to accelerate indebtedness
as referenced in Section 15(b) hereof, under any mortgage, borrowing agreement or other instrument or agreement pertaining
to indebtedness for borrowed money or to the repurchase of mortgage loans or securities.

 

    	 	- 35 -	 

     

    

 

(7)Solvency.
Each of Seller and Guarantor is solvent and will not be rendered insolvent by any Transaction and, after giving effect to such
Transaction, will not be left with an unreasonably small amount of capital with which to engage in its business. Neither Seller
nor Guarantor intends to incur, nor believes that it has incurred, debts beyond its ability to pay such debts as they mature and
is not contemplating the commencement of insolvency, bankruptcy, liquidation or consolidation proceedings or the appointment of
a receiver, liquidator, conservator, trustee or similar official in respect of such entity or any of its assets. The amount of
consideration being received by Seller upon the sale of the Purchased Mortgage Loans to Buyer constitutes reasonably equivalent
value and fair consideration for such Purchased Mortgage Loans. Seller is not transferring any Purchased Mortgage Loans with any
intent to hinder, delay or defraud any of its creditors.

 

(8)No Conflicts.
The execution, delivery and performance by each of Seller and Guarantor of this Agreement, any Transaction Request or Purchase
Confirmation hereunder and the Program Agreements do not conflict with any term or provision of the organizational documents of
Seller or Guarantor or any law, rule, regulation, order, judgment, writ, injunction or decree applicable to Seller or Guarantor
of any court, regulatory body, administrative agency or governmental body having jurisdiction over Seller or Guarantor, which conflict
would have a Material Adverse Effect and will not result in any violation of any such mortgage, instrument, agreement or obligation
to which Seller or Guarantor is a party.

 

(9)True and Complete
Disclosure. All information, reports, exhibits, schedules, financial statements or certificates of Seller, Guarantor or any
Affiliate thereof or any of their officers furnished or to be furnished to Buyer in connection with the initial or any ongoing
due diligence of Seller, Guarantor or any Affiliate or officer thereof, negotiation, preparation, or delivery of the Program Agreements
are true and complete and do not omit to disclose any material facts necessary to make the statements herein or therein, in light
of the circumstances in which they are made, not misleading. All financial statements have been prepared in accordance with GAAP.

 

(10)Approvals.
No consent, approval, authorization or order of, registration or filing with, or notice to any governmental authority or court
is required under applicable law in connection with the execution, delivery and performance by Seller or Guarantor of this Agreement,
any Transaction Request, Purchase Confirmation and the Program Agreements.

 

(11)Litigation.
There is no action, proceeding or investigation pending with respect to which either Seller or Guarantor has received service of
process or, to the best of Seller’s or Guarantor’s knowledge threatened against it before any court, administrative
agency or other tribunal (A) asserting the invalidity of this Agreement, any Transaction, Transaction Request, Purchase Confirmation
or any Program Agreement, (B) seeking to prevent the consummation of any of the transactions contemplated by this Agreement, any
Transaction Request, Purchase Confirmation or any Program Agreement, (C) makes a claim individually or in the aggregate in an amount
greater than $10,000,000, (D) which requires filing with the Securities and Exchange Commission in accordance with the 1934 Act
or any rules thereunder or (E) which might materially and adversely affect the validity of the Mortgage Loans or the performance
by it of its obligations under, or the validity or enforceability of, this Agreement, any Transaction Request, Purchase Confirmation
or any Program Agreement.

 

    	 	- 36 -	 

     

    

 

(12)Material Adverse
Change. There has been no material adverse change in the business, operations, financial condition, properties or prospects
of Seller, Guarantor or their Affiliates since the date set forth in the most recent financial statements supplied to Buyer.

 

(13)Ownership.
Upon payment of the Purchase Price and the filing of the financing statement and delivery of the Mortgage Files to Custodian and
Custodian’s receipt of the related Request for Certification, Buyer shall become the sole owner of the Purchased Mortgage
Loans and related Repurchase Assets, free and clear of all liens and encumbrances.

 

(14)Underwriting
Guidelines. The Underwriting Guidelines provided to Buyer are the true and correct Underwriting Guidelines of Seller.

 

(15)Taxes.
Seller, Guarantor and their Subsidiaries have timely filed all tax returns that are required to be filed by them and have paid
all taxes, except for any such taxes as are being appropriately contested in good faith by appropriate proceedings diligently conducted
and with respect to which adequate reserves have been provided. The charges, accruals and reserves on the books of Seller, Guarantor
and their Subsidiaries in respect of taxes and other governmental charges are, in the opinion of Seller or Guarantor, as applicable,
adequate.

 

(16)Investment
Company. Neither Seller nor any of its Subsidiaries is an “investment company”, or a company “controlled”
by an “investment company,” within the meaning of the Investment Company Act of 1940, as amended; provided,
however, that any entity that is under the management of PNMAC Capital Management LLC in its capacity as an “investment
adviser” within the meaning of the Investment Advisers Act of 1940 and is otherwise not directly or indirectly owned or controlled
by Seller shall not be deemed a “Subsidiary” for the purposes of this Section 13(a)(16).

 

(17)Chief Executive
Office; Jurisdiction of Organization. On the Effective Date, Seller’s chief executive office, is, and has been, located
at 6101 Condor Drive, Moorpark, CA 93021. On the Effective Date, Seller’s jurisdiction of organization is the State of Delaware.
Seller shall provide Buyer with thirty days advance notice of any change in Seller’s principal office or place of business
or jurisdiction. Seller has no trade name. During the preceding five years, Seller has not been known by or done business under
any other name, corporate or fictitious, and has not filed or had filed against it any bankruptcy receivership or similar petitions
nor has it made any assignments for the benefit of creditors.

 

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(18)Location of
Books and Records. The location where Seller keeps its books and records, including all computer tapes and records relating
to the Purchased Mortgage Loans and the related Repurchase Assets is its chief executive office.

 

(19)Adjusted Tangible
Net Worth. On the Amendment Effective Date, Seller’s Adjusted Tangible Net Worth is not less than $90,000,000.

 

(20)ERISA.
Each Plan to which Seller, Guarantor or their Subsidiaries make direct contributions, and, to the knowledge of Seller and Guarantor,
each other Plan and each Multiemployer Plan, is in compliance in all material respects with, and has been administered in all material
respects in compliance with, the applicable provisions of ERISA, the Code and any other Federal or State law.

 

(21)Adverse Selection.
Seller has not selected the Purchased Mortgage Loans in a manner so as to adversely affect Buyer’s interests.

 

(22)Agreements.
Neither Seller nor any Subsidiary of Seller is a party to any agreement, instrument, or indenture or subject to any restriction
materially and adversely affecting its business, operations, assets or financial condition, except as disclosed in the financial
statements described in Section 13(a)(5) hereof. Neither Seller nor any Subsidiary of Seller is in default in the performance,
observance or fulfillment of any of the obligations, covenants or conditions contained in any agreement, instrument, or indenture
which default could have a material adverse effect on the business, operations, properties, or financial condition of Seller as
a whole. No holder of any indebtedness of Seller or of any of its Subsidiaries has given notice of any asserted default thereunder.

 

(23)Other Indebtedness.
All Indebtedness (other than Indebtedness evidenced by this Agreement) of Seller existing on the date hereof is listed on Exhibit
I hereto (the “Existing Indebtedness”).

 

(24)Agency Approvals.
With respect to each Agency Security and to the extent necessary, Seller is an FHA Approved Mortgagee. Seller is also approved
by Fannie Mae as an approved seller/servicer and Freddie Mac as an approved seller/servicer, and, to the extent necessary, approved
by the Secretary of Housing and Urban Development pursuant to Sections 203 and 211 of the National Housing Act. In each such case,
Seller is in good standing, with no event having occurred or Seller having any reason whatsoever to believe or suspect will occur
prior to the issuance of the Agency Security or the consummation of the Take-out Commitment, as the case may be, including, without
limitation, a change in insurance coverage which would either make Seller unable to comply with the eligibility requirements for
maintaining all such applicable approvals or require notification to the relevant Agency or to the Department of Housing and Urban
Development, FHA or, only to the extent that Seller is a VA Approved Lender as of the relevant Purchase Date, VA. Should Seller
for any reason cease to possess all such applicable approvals, or should notification to the relevant Agency or to the Department
of Housing and Urban Development, FHA or VA (only to the extent that Seller is a VA Approved Lender as of the relevant Purchase
Date), be required, Seller shall so notify Buyer immediately in writing. Servicer has adequate financial standing, servicing facilities,
procedures and experienced personnel necessary for the sound servicing of mortgage loans of the same types as may from time to
time constitute Mortgage Loans and in accordance with Accepted Servicing Practices.

 

    	 	- 38 -	 

     

    

 

(25)No Reliance.
Each of Seller and Guarantor has made its own independent decisions to enter into the Program Agreements and each Transaction and
as to whether such Transaction is appropriate and proper for it based upon its own judgment and upon advice from such advisors
(including without limitation, legal counsel and accountants) as it has deemed necessary. Neither Seller nor Guarantor is relying
upon any advice from Buyer as to any aspect of the Transactions, including without limitation, the legal, accounting or tax treatment
of such Transactions.

 

(26)Plan Assets.
Neither Seller nor Guarantor is an employee benefit plan as defined in Section 3 of Title I of ERISA, or a plan described in Section
4975(e)(1) of the Code, and the Purchased Mortgage Loans are not “plan assets” within the meaning of 29 CFR §2510.3
101 as amended by Section 3(42) of ERISA, in Seller’s or Guarantor’s hands, and transactions by or with Seller or Guarantor
are not subject to any state or local statute regulating investments or fiduciary obligations with respect to governmental plans
within the meaning of Section 3(32) of ERISA.

 

(27)No Prohibited
Persons. Neither Seller nor any of its Affiliates, officers, directors, partners or members, is an entity or person (or to
Seller’s knowledge, owned or controlled by an entity or person): (i) that is listed in the Annex to, or is otherwise subject
to the provisions of Executive Order 13224 issued on September 24, 2001 (“EO13224”); (ii) whose name appears
on the United States Treasury Department’s Office of Foreign Assets Control (“OFAC”) most current list
of “Specifically Designated National and Blocked Persons” (which list may be published from time to time in various
mediums including, but not limited to, the OFAC website, http:www.treas.gov/ofac/t11sdn.pdf); (iii) who commits, threatens to commit
or supports “terrorism”, as that term is defined in EO13224; or (iv) who is otherwise affiliated with any entity or
person listed above (any and all parties or persons described in clauses (i) through (iv) above are herein referred to as a “Prohibited
Person”).

 

    	 	- 39 -	 

     

    

 

b.With respect to
every Purchased Mortgage Loan, each of Seller and Guarantor jointly and severally represents and warrants to Buyer as of the applicable
Purchase Date for any Transaction and each date thereafter that each representation and warranty set forth on Schedule 1
is true and correct.

 

c.The representations
and warranties set forth in this Agreement shall survive transfer of the Purchased Mortgage Loans to Buyer and shall continue for
so long as the Purchased Mortgage Loans are subject to this Agreement. Upon discovery by Seller, Servicer or Buyer of any breach
of any of the representations or warranties set forth in this Agreement, the party discovering such breach shall promptly give
notice of such discovery to the others.

 

14.Covenants

 

Each of Seller and Guarantor
covenants with Buyer that, during the term of this facility:

 

a.Reserved.

 

b.Reserved.

 

c.Litigation.
Seller and Guarantor, as applicable, will promptly, and in any event within ten (10) days after service of process on any of the
following, give to Buyer notice of all litigation, actions, suits, arbitrations, investigations (including, without limitation,
any of the foregoing which are threatened or pending) or other legal or arbitrable proceedings affecting Seller, Guarantor or any
of their Subsidiaries or affecting any of the Property of any of them before any Governmental Authority that (i) questions or challenges
the validity or enforceability of any of the Program Agreements or any action to be taken in connection with the transactions contemplated
hereby, (ii) makes a claim individually or in the aggregate in an amount greater than $10,000,000, or (iii) which, individually
or in the aggregate, if adversely determined, could be reasonably likely to have a Material Adverse Effect. On each Reporting Date,
Seller and Guarantor, as applicable, will provide to Buyer a litigation docket listing all litigation, actions, suits, arbitrations,
investigations (including, without limitation, any of the foregoing which are threatened or pending) or other legal or arbitrable
proceedings affecting Seller, Guarantor or any of their Subsidiaries or affecting any of the Property of any of them before any
Governmental Authority. Seller and Guarantor, as applicable, will promptly provide notice of any judgment, which with the passage
of time, could cause an Event of Default hereunder.

 

d.Prohibition
of Fundamental Changes. Seller shall not enter into any transaction of merger or consolidation or amalgamation, or liquidate,
wind up or dissolve itself (or suffer any liquidation, winding up or dissolution) or sell all or substantially all of its assets;
provided, that Seller may merge or consolidate with (a) any wholly owned subsidiary of Seller, or (b) any other Person if Seller
is the surviving entity; and provided further, that if after giving effect thereto, no Default would exist hereunder.

 

    	 	- 40 -	 

     

    

 

e.Reserved.

 

f.Servicer; Asset
Tape. Upon the occurrence of any of the following (a) the occurrence and continuation of an Event of Default, (b) within two
(2) Business Days following any Purchased Mortgage Loan becoming an Aged Loan, (c) the fifth (5th) Business Day of each
month, or (d) within two (2) Business Days following the request of Buyer, Seller shall cause Servicer to provide to Buyer, electronically,
in a format mutually acceptable to Buyer and Seller, an Asset Tape. Seller shall not cause the Mortgage Loans to be serviced by
any servicer other than a servicer expressly approved in writing by Buyer, which approval shall be deemed granted by Buyer with
respect to Seller with the execution of this Agreement.

 

g.Insurance.
Seller or Guarantor shall continue to maintain, for Seller, Servicer and their Subsidiaries, Fidelity Insurance in an aggregate
amount at least equal to $1,400,000. Seller or Guarantor shall maintain, for Seller, Servicer and their Subsidiaries, Fidelity
Insurance in respect of its officers, employees and agents, with respect to any claims made in connection with all or any portion
of the Repurchase Assets. Seller or Guarantor shall notify Buyer of any material change in the terms of any such Fidelity Insurance.

 

h.No Adverse Claims.
Seller warrants and will defend, and shall cause any Servicer to defend, the right, title and interest of Buyer in and to all Purchased
Mortgage Loans and the related Repurchase Assets against all adverse claims and demands.

 

i.Assignment.
Except as permitted herein, neither Seller nor any Servicer shall sell, assign, transfer or otherwise dispose of, or grant any
option with respect to, or pledge, hypothecate or grant a security interest in or lien on or otherwise encumber (except pursuant
to the Program Agreements), any of the Purchased Mortgage Loans or any interest therein, provided that this Section shall not prevent
any transfer of Purchased Mortgage Loans in accordance with the Program Agreements.

 

j.Security Interest.
Seller shall do all things necessary to preserve the Purchased Mortgage Loans and the related Repurchase Assets so that they remain
subject to a first priority perfected security interest hereunder. Without limiting the foregoing, Seller will comply with all
rules, regulations and other laws of any Governmental Authority and cause the Purchased Mortgage Loans or the related Repurchase
Assets to comply with all applicable rules, regulations and other laws. Seller will not allow any default for which Seller is responsible
to occur under any Purchased Mortgage Loans or the related Repurchase Assets or any Program Agreement and Seller shall fully perform
or cause to be performed when due all of its obligations under any Purchased Mortgage Loans or the related Repurchase Assets and
any Program Agreement.

 

    	 	- 41 -	 

     

    

 

k.Records.

 

(1)Seller shall collect
and maintain or cause to be collected and maintained all Records relating to the Purchased Mortgage Loans in accordance with industry
custom and practice for assets similar to the Purchased Mortgage Loans, including those maintained pursuant to the preceding subparagraph,
and all such Records shall be in Custodian’s possession unless Buyer otherwise approves. Seller will not allow any such papers,
records or files that are an original or an only copy to leave Custodian’s possession, except for individual items removed
in connection with servicing a specific Mortgage Loan, in which event Seller will obtain or cause to be obtained a receipt from
a financially responsible person for any such paper, record or file. Seller or the Servicer of the Purchased Mortgage Loans will
maintain all such Records not in the possession of Custodian in good and complete condition in accordance with industry practices
for assets similar to the Purchased Mortgage Loans and preserve them against loss.

 

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

 

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

 

l.Books. Seller
shall keep or cause to be kept in reasonable detail books and records of account of its assets and business and shall clearly reflect
therein the transfer of Purchased Mortgage Loans to Buyer.

 

m.Approvals.
Seller shall maintain all licenses, permits or other approvals necessary for Seller to conduct its business and to perform its
obligations under the Program Agreements, and Seller shall conduct its business in all material respects in accordance with applicable
law.

 

n.Material Change
in Business. Neither Seller nor Guarantor shall make any material change in the nature of its business as carried on at the
date hereof.

 

    	 	- 42 -	 

     

    

 

o.Underwriting
Guidelines. Without the prior written consent of Buyer, Seller shall not amend or otherwise modify the Underwriting Guidelines
in any material respect. Without limiting the foregoing, in the event that Seller makes any amendment or modification to the Underwriting
Guidelines, Seller shall promptly deliver to Buyer a complete copy of the amended or modified Underwriting Guidelines, specifying
in detail the amendments and modifications set forth therein from the previous copy delivered.

 

p.Distributions.
If an Event of Default has occurred and is continuing, neither Seller nor Guarantor shall pay any dividends with respect to any
capital stock or other equity interests in such entity, whether now or hereafter outstanding, or make any other distribution in
respect thereof, either directly or indirectly, whether in cash or property or in obligations of Seller or Guarantor.

 

q.Applicable Law.
Seller and Guarantor shall comply in all material respects with the requirements of all applicable laws, rules, regulations and
orders of any Governmental Authority.

 

r.Existence.
Each of Seller and Guarantor shall preserve and maintain its legal existence and all of its material rights, privileges, material
licenses and franchises.

 

s.Chief Executive
Office; Jurisdiction of Organization. Seller shall not move its chief executive office from the address referred to in Section
13(a)(17) or change its jurisdiction of organization from the jurisdiction referred to in Section 13(a)(17) unless it shall have
provided Buyer 30 days’ prior written notice of such change.

 

t.Taxes. Seller
and Guarantor shall timely file all tax returns that are required to be filed by them and shall timely pay and discharge all taxes,
assessments and governmental charges or levies imposed on it or on its income or profits or on any of its property prior to the
date on which penalties attach thereto, except for any such tax, assessment, charge or levy the payment of which is being contested
in good faith and by proper proceedings and against which adequate reserves are being maintained.

 

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

 

v.Guarantees.
Seller shall not create, incur, assume or suffer to exist any Guarantees, except (i) to the extent reflected in Seller’s
financial statements or notes thereto and (ii) to the extent the aggregate Guarantees of Seller do not exceed $250,000.

 

    	 	- 43 -	 

     

    

 

w.Indebtedness.
Seller shall not incur any additional material Indebtedness (other than (i) the Existing Indebtedness in amounts not to exceed
the amounts specified on Exhibit I hereto, (ii) except for Indebtedness incurred with Buyer or its Affiliates, (iii) Indebtedness
required to be obtained pursuant to the Program Agreements and (iv) usual and customary accounts payable for a mortgage company)
without the prior written consent of Buyer.

 

x.Hedging.
Seller has entered into Interest Rate Protection Agreements with respect to the Conforming Mortgage Loans, having terms with respect
to protection against fluctuations in interest rates acceptable to Buyer in its sole discretion. In the event that Seller intends
to make any change to its policy regarding Interest Rate Protection Agreements, Seller shall notify Buyer in writing 30 days prior
to implementing any such change.

 

y.True and Correct
Information. All information, reports, exhibits, schedules, financial statements or certificates of Seller, Guarantor any Affiliate
thereof or any of their officers furnished to Buyer hereunder and during Buyer’s diligence of Seller and Guarantor are and
will be true and complete and do not omit to disclose any material facts necessary to make the statements herein or therein, in
light of the circumstances in which they are made, not misleading. All required financial statements, information and reports delivered
by Seller and Guarantor to Buyer pursuant to this Agreement shall be prepared in accordance with U.S. GAAP, or, if applicable,
to SEC filings, the appropriate SEC accounting regulations.

 

z.Agency Approvals;
Servicing. Seller shall maintain its status with Fannie Mae as an approved lender and Freddie Mac as an approved seller/servicer,
in each case in good standing. Servicer shall service all Purchased Mortgage Loans which are Committed Mortgage Loans in accordance
with the applicable agency guide. Should Servicer, for any reason, cease to possess all such applicable Agency Approvals, or should
notification to the relevant Agency or to the Department of Housing and Urban Development, FHA or VA be required, such Seller shall
so notify Buyer immediately in writing. Notwithstanding the preceding sentence, Servicer shall take all necessary action to maintain
all of their applicable Agency Approvals at all times during the term of this Agreement and each outstanding Transaction. Servicer
shall maintain adequate financial standing, servicing facilities, procedures and experienced personnel necessary for the sound
servicing of mortgage loans of the same types as may from time to time constitute Mortgage Loans and in accordance with Accepted
Servicing Practices.

 

aa.Take-out Payments.
With respect to each Committed Mortgage Loan, Seller shall arrange that all payments under the related Take-out Commitment shall
be paid directly to Buyer at the account set forth in Section 9 hereof, or to an account approved by Buyer in writing prior to
such payment. With respect to any Agency Take-out Commitment, if applicable, (1) with respect to the wire transfer instructions
as set forth in Freddie Mac Form 987 (Wire Transfer Authorization for a Cash Warehouse Delivery) such wire transfer instructions
are identical to Buyer’s wire instructions or Buyer has approved such wire transfer instructions in writing in its sole discretion,
or (2) the Payee Number set forth on Fannie Mae Form 1068 (Fixed-Rate, Graduated-Payment, or Growing-Equity Mortgage Loan Schedule)
or Fannie Mae Form 1069 (Adjustable-Rate Mortgage Loan Schedule), as applicable, is identical to the Payee Number that has been
identified by Buyer in writing as Buyer’s Payee Number or Buyer has previously approved the related Payee Number in writing
in its sole discretion; with respect to any Take-out Commitment with an Agency, the applicable agency documents list Buyer as sole
subscriber, unless otherwise agreed to in writing by Buyer, in Buyer’s sole discretion.

 

    	 	- 44 -	 

     

    

 

bb.No Pledge.
Neither Seller nor Guarantor shall pledge, transfer or convey any security interest in the Securities Account to any Person without
the express written consent of Buyer.

 

cc.Plan Assets.
Seller shall not be an employee benefit plan as defined in Section 3 of Title I of ERISA, or a plan described in Section 4975(e)(1)
of the Code and Seller shall not use “plan assets” within the meaning of 29 CFR §2510.3 101, as amended by Section
3(42) of ERISA to engage in this Repurchase Agreement or any Transaction hereunder. Transactions by or with Seller or Guarantor
shall not be subject to any state or local statute regulating investments of or fiduciary obligations with respect to governmental
plans within the meaning of Section 3(32) of ERISA.

 

dd.Financial Covenants.
Seller shall at all times comply with any and all financial covenants and/or financial ratios set forth below:

 

(1)Adjusted
Tangible Net Worth. Seller shall maintain an Adjusted Tangible Net Worth of at least equal to $90,000,000.

 

(2)Indebtedness
to Adjusted Tangible Net Worth Ratio. Seller’s ratio of Indebtedness (excluding (A) Non-Recourse Debt, including any
securitization debt, and (B) any intercompany debt eliminated in consolidation) to Adjusted Tangible Net Worth shall not exceed
10:1.

 

(3)Maintenance
of Liquidity. The Seller shall ensure that, at all times, it has cash (other than Restricted Cash) and Cash Equivalents in
an amount not less than $20,000,000.

 

(4)Maintenance
of Profitability. Seller shall not permit, for any Test Period, Net Income for such Test Period, before income taxes for such
Test Period and distributions made during such Test Period, to be less than $1.00.

 

(5)Additional
Warehouse Line. The Seller shall maintain one or more additional warehouse or repurchase facilities in order to finance mortgage
loans in an aggregate amount at least equal to 55% of the Maximum Regular Way Committed Purchase Price.

 

    	 	- 45 -	 

     

    

 

ee.Sharing of
Information. Seller shall allow Buyer to exchange information related to Seller and the Transactions hereunder with third party
lenders and Seller shall permit each third party lender to share such information with Buyer.

 

ff.Reserved.

 

gg.Most Favored
Status. Seller, Guarantor and Buyer each agree that should Seller, Guarantor or any Affiliate thereof enter into a repurchase
agreement or credit facility with any Person other than Buyer or an Affiliate of Buyer which by its terms provides any of the following
(each, a “More Favorable Agreement”):

 

(1)more favorable
terms with respect to any guaranties or financial covenants, including without limitation covenants covering the same or similar
subject matter referred to in Sections 14p and 14dd hereof;

 

(2) a security interest
to any Person other than Buyer or an Affiliate of Buyer in substantially all assets of Seller, Guarantor or any Affiliate thereof;
or

 

(3)a requirement
that Seller has added or will add any Person other than Buyer or an Affiliate of Buyer as a loss payee under Seller’s Fidelity
Insurance;

 

then the terms of this
Agreement shall be deemed automatically amended to include such more favorable terms contained in such More Favorable Agreement,
such that such terms operate in favor of Buyer or an Affiliate of Buyer; provided, that in the event that such More Favorable Agreement
is terminated, upon notice by Seller to Buyer of such termination, the original terms of this Agreement shall be deemed to be automatically
reinstated. Seller, Guarantor and Buyer further agree to execute and deliver any new guaranties, agreements or amendments to this
Agreement evidencing such provisions, provided that the execution of such amendment shall not be a precondition to the effectiveness
of such amendment, but shall merely be for the convenience of the parties hereto. Promptly upon Seller, Guarantor or any Affiliate
thereof entering into a repurchase agreement or other credit facility with any Person other than Buyer, Seller or Guarantor, as
applicable, shall deliver to Buyer a true, correct and complete copy of such repurchase agreement, loan agreement, guaranty or
other financing documentation.

 

hh.Liens on
Substantially All Assets. Seller shall not grant a security interest to any Person other than Buyer or an Affiliate of Buyer
in substantially all assets of Seller unless Seller has entered into an amendment to this Agreement that grants to Buyer a pari
passu security interest on such assets.

 

ii.GNMA Loans.

 

    	 	- 46 -	 

     

    

 

(1)With respect to
all claims submitted to HUD on or prior to June 6, 2014, Seller shall remain, on the FHA Connect system, the mortgagee of record
with respect to each GNMA Loan. Upon receipt of any proceeds from HUD with respect to any Purchased Mortgage Loan that is a GNMA
Loan, Seller shall remit such amounts within four (4) Business Days to the GNMA Account pursuant to the definition of “GNMA
Account”. To the extent HUD deducts any amounts owing by Seller to HUD, Seller shall deposit, within four (4) Business Days
following notice or knowledge of such deduction by HUD, such deducted amounts into the applicable GNMA Account. On each Price Differential
Payment Date, Seller shall instruct Securities Intermediary to remit all amounts on deposit in any GNMA Account to the Securities
Account for distribution in accordance with the Securities Account Control Agreement. On June 6, 2014, with respect to any Purchased
Mortgage Loan, Seller shall transfer the mortgagee of record on the FHA Connect system to Buyer.

 

(2)With respect to
each GNMA Loan, to the extent the FHA Connect system permits Buyer to designate a GNMA Account linked to Buyer as mortgagee of
record, Seller shall cause Buyer to be designated as mortgagee of record on the FHA Connect system under mortgagee number 34522,
and shall submit all claims to HUD under such applicable number for remittance of amounts to the GNMA Account pursuant to the definition
of “GNMA Account”. On each Price Differential Payment Date, Seller shall instruct Securities Intermediary to remit
all amounts on deposit in any GNMA Account to the Securities Account for distribution in accordance with the Securities Account
Control Agreement. From and after June 6, 2014, on each Purchase Date with respect to a Mortgage Loan, Seller shall transfer the
mortgagee of record on the FHA Connect system to Buyer.

 

(3)Seller shall cooperate
and do all things deemed necessary or appropriate by Buyer to effectuate the steps as contemplated in this Section 14.ii.

 

15.Events
of Default

 

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

 

a.Payment Failure.
Failure of Seller to (i) make any payment of Price Differential or Repurchase Price or any other sum which has become due,
on a Price Differential Payment Date or a Repurchase Date or otherwise, whether by acceleration or otherwise, under the terms of
this Agreement, any other warehouse and security agreement or any other document evidencing or securing Indebtedness of Seller
to Buyer or to any Affiliate of Buyer, or (ii) cure any Margin Deficit when due pursuant to Section 6 hereof.

 

b.Cross Default.
Seller, Guarantor or Affiliates thereof shall be in default under (i) the Servicing Facility Documents, (ii) any Indebtedness,
in the aggregate, in excess of $1 million of Seller, Guarantor or any Affiliate thereof, including amounts owed under the Servicing
Facility Documents, which default (1) involves the failure to pay a matured obligation, or (2) permits the acceleration of the
maturity of obligations by any other party to or beneficiary with respect to such Indebtedness, or (iii) any other contract or
contracts, in the aggregate in excess of $1 million to which Seller, Guarantor or any Affiliate thereof is a party which default
(1) involves the failure to pay a matured obligation, or (2) permits the acceleration of the maturity of obligations by any other
party to or beneficiary of such contract.

 

    	 	- 47 -	 

     

    

 

c.Assignment.
Assignment or attempted assignment by Seller or Guarantor of this Agreement or any rights hereunder without first obtaining the
specific written consent of Buyer, or the granting by Seller of any security interest, lien or other encumbrances on any Purchased
Mortgage Loans to any person other than Buyer.

 

d.Insolvency.
An Act of Insolvency shall have occurred with respect to Seller, Guarantor or any Affiliate thereof.

 

e.Material Adverse
Change. Any material adverse change in the Property, business, financial condition or operations of Seller, Guarantor or any
of their Affiliates shall occur, in each case as determined by Buyer in its sole good faith discretion, or any other condition
shall exist which, in Buyer’s sole good faith discretion, constitutes a material impairment of Seller’s or Guarantor’s
ability to perform its obligations under this Agreement or any other Program Agreement.

 

f.Breach of Financial
Representation or Covenant or Obligation. A breach by Seller or Guarantor of any of the representations, warranties or covenants
or obligations set forth in (i) Sections 13(a)(1), 13(a)(7), 13(a)(12), 13(a)(19), 14d, 14p, 14r, 14v, or 14cc of this Agreement
or (ii) Sections 13(a)(23), 14w, 14dd or 14gg of this Agreement and such breach identified in this clause (ii) shall remain unremedied
for one (1) Business Day.

 

g.Breach of Non-Financial
Representation or Covenant. A breach by Seller or Guarantor of any other representation, warranty or covenant set forth in
this Agreement in any material respect (and not otherwise specified in Section 15(f) above), if such breach is not cured within
five (5) Business Days (other than the representations and warranties set forth in Schedule 1, which shall be considered solely
for the purpose of determining the Market Value, the existence of a Margin Deficit and the obligation to repurchase such Mortgage
Loan unless (i) such party shall have made any such representations and warranties with knowledge that they were materially false
or misleading at the time made, (ii) any such representations and warranties have been determined by Buyer in its sole discretion
to be materially false or misleading on a regular basis, or (iii) Buyer, in its sole discretion, determines that such breach of
a material representation, warranty or covenant materially and adversely affects (A) the condition (financial or otherwise) of
such party, its Subsidiaries or Affiliates; or (B) Buyer’s determination to enter into this Agreement or Transactions with
such party, then such breach shall constitute an immediate Event of Default and neither Seller nor Guarantor shall have any cure
right hereunder).

 

    	 	- 48 -	 

     

    

 

h.Guarantor Breach.
A breach by Guarantor of any material representation, warranty or covenant set forth in the Guaranty or any other Program Agreement,
any “event of default” by Guarantor under the Guaranty, any repudiation of the Guaranty by Guarantor, or if the Guaranty
is not enforceable against Guarantor.

 

i.Change in Control.
The occurrence of a Change in Control.

 

j.Failure to Transfer.
Seller fails to transfer the Purchased Mortgage Loans to Buyer on the applicable Purchase Date (provided Buyer has tendered the
related Purchase Price).

 

k.Judgment.
A final judgment or judgments for the payment of money in excess of $10,000,000 shall be rendered against Seller, Guarantor or
any of their Affiliates by one or more courts, administrative tribunals or other bodies having jurisdiction and the same shall
not be satisfied, discharged (or provision shall not be made for such discharge) or bonded, or a stay of execution thereof shall
not be procured, within 30 days from the date of entry thereof.

 

l.Government Action.
Any Governmental Authority or any person, agency or entity acting or purporting to act under governmental authority shall have
taken any action to condemn, seize or appropriate, or to assume custody or control of, all or any substantial part of the Property
of Seller, Guarantor or any Affiliate thereof, or shall have taken any action to displace the management of Seller, Guarantor or
any Affiliate thereof or to curtail its authority in the conduct of the business of Seller, Guarantor or any Affiliate thereof,
or takes any action in the nature of enforcement to remove, limit or restrict the approval of Seller, Guarantor or Affiliate as
an issuer, buyer or a seller/servicer of Mortgage Loans or securities backed thereby, and such action provided for in this subparagraph
l shall not have been discontinued or stayed within 30 days.

 

m.Inability to
Perform. A Responsible Officer of Seller or Guarantor shall admit its inability to, or its intention not to, perform any of
Seller’s Obligations or Guarantor’s obligations hereunder or the Guaranty.

 

n.Security Interest.
This Agreement shall for any reason cease to create a valid, first priority security interest in any material portion of the Purchased
Mortgage Loans or other Repurchase Assets purported to be covered hereby.

 

o.Financial Statements.
Seller’s or Guarantor’s audited annual financial statements or the notes thereto or other opinions or conclusions stated
therein shall be qualified or limited by reference to the status of Seller or Guarantor as a “going concern” or a reference
of similar import.

 

An Event of Default shall
be deemed to be continuing unless expressly waived by Buyer in writing.

 

    	 	- 49 -	 

     

    

 

16.Remedies
Upon Default

 

In the event that an
Event of Default shall have occurred:

 

a.Buyer may, at its
option (which option shall be deemed to have been exercised immediately upon the occurrence of an Act of Insolvency of Seller or
any Affiliate), declare an Event of Default to have occurred hereunder and, upon the exercise or deemed exercise of such option,
the Repurchase Date for each Transaction hereunder shall, if it has not already occurred, be deemed immediately to occur (except
that, in the event that the Purchase Date for any Transaction has not yet occurred as of the date of such exercise or deemed exercise,
such Transaction shall be deemed immediately canceled). Buyer shall (except upon the occurrence of an Act of Insolvency) give notice
to Seller and Guarantor of the exercise of such option as promptly as practicable.

 

b.If Buyer exercises
or is deemed to have exercised the option referred to in subparagraph (a) of this Section, (i) Seller’s obligations
in such Transactions to repurchase all Purchased Mortgage Loans, at the Repurchase Price therefor on the Repurchase Date determined
in accordance with subparagraph (a) of this Section, shall thereupon become immediately due and payable, (ii) all Income
paid after such exercise or deemed exercise shall be retained by Buyer and applied, in Buyer’s sole discretion, to the aggregate
unpaid Repurchase Prices for all outstanding Transactions and any other amounts owing by Seller hereunder, and (iii) Seller
shall immediately deliver to Buyer the Mortgage Files relating to any Purchased Mortgage Loans subject to such Transactions then
in Seller’s possession or control.

 

c.Buyer also shall
have the right to obtain physical possession, and to commence an action to obtain physical possession, of all Records and files
of Seller relating to the Purchased Mortgage Loans and all documents relating to the Purchased Mortgage Loans (including, without
limitation, any legal, credit or servicing files with respect to the Purchased Mortgage Loans) which are then or may thereafter
come in to the possession of Seller or any third party acting for Seller. To obtain physical possession of any Purchased Mortgage
Loans held by Custodian, Buyer shall present to Custodian an Asset Confirm. Without limiting the rights of Buyer hereto to pursue
all other legal and equitable rights available to Buyer for Seller’s failure to perform its obligations under this Agreement,
Seller acknowledges and agrees that the remedy at law for any failure to perform obligations hereunder would be inadequate and
Buyer shall be entitled to specific performance, injunctive relief, or other equitable remedies in the event of any such failure.
The availability of these remedies shall not prohibit Buyer from pursuing any other remedies for such breach, including the recovery
of monetary damages.

 

    	 	- 50 -	 

     

    

 

d.Buyer shall have
the right to direct all servicers then servicing any Purchased Mortgage Loans to remit all collections thereon to Buyer, and if
any such payments are received by Seller, Seller shall not commingle the amounts received with other funds of Seller and shall
promptly pay them over to Buyer. Buyer shall also have the right to terminate any one or all of the servicers then servicing any
Purchased Mortgage Loans with or without cause. In addition, Buyer shall have the right to immediately sell the Purchased Mortgage
Loans and liquidate all Repurchase Assets. Such disposition of Purchased Mortgage Loans may be, at Buyer’s option, on either
a servicing-released or a servicing-retained basis. Buyer shall not be required to give any warranties as to the Purchased Mortgage
Loans with respect to any such disposition thereof. Buyer may specifically disclaim or modify any warranties of title or the like
relating to the Purchased Mortgage Loans. The foregoing procedure for disposition of the Purchased Mortgage Loans and liquidation
of the Repurchase Assets shall not be considered to adversely affect the commercial reasonableness of any sale thereof. Seller
agrees that it would not be commercially unreasonable for Buyer to dispose of the Purchased Mortgage Loans or the Repurchase Assets
or any portion thereof by using Internet sites that provide for the auction of assets similar to the Purchased Mortgage Loans or
the Repurchase Assets, or that have the reasonable capability of doing so, or that match buyers and sellers of assets. Buyer shall
be entitled to place the Purchased Mortgage Loans in a pool for issuance of mortgage-backed securities at the then-prevailing price
for such securities and to sell such securities for such prevailing price in the open market. Buyer shall also be entitled to sell
any or all of such Mortgage Loans individually for the prevailing price. Buyer shall also be entitled, in its sole discretion to
elect, in lieu of selling all or a portion of such Purchased Mortgage Loans, to give Seller credit for such Purchased Mortgage
Loans and the Repurchase Assets in an amount equal to the Market Value of the Purchased Mortgage Loans against the aggregate unpaid
Repurchase Price and any other amounts owing by Seller hereunder.

 

e.Upon the happening
of one or more Events of Default, Buyer may apply any proceeds from the liquidation of the Purchased Mortgage Loans and Repurchase
Assets to the Repurchase Prices hereunder and all other Obligations in the manner Buyer deems appropriate in its sole discretion.

 

f.Seller shall be
liable to Buyer for (i) the amount of all reasonable and customary legal or other expenses (including, without limitation,
all costs and expenses of Buyer in connection with the enforcement of this Agreement or any other agreement evidencing a Transaction,
whether in action, suit or litigation or bankruptcy, insolvency or other similar proceeding affecting creditors’ rights generally,
further including, without limitation, the reasonable fees and expenses of counsel (including the costs of internal counsel of
Buyer) incurred in connection with or as a result of an Event of Default, (ii) damages in an amount equal to the cost (including
all fees, expenses and commissions) of entering into replacement transactions and entering into or terminating hedge transactions
in connection with or as a result of an Event of Default, and (iii) any other loss, damage, cost or expense directly arising
or resulting from the occurrence of an Event of Default in respect of a Transaction.

 

    	 	- 51 -	 

     

    

 

g.To the extent permitted
by applicable law, Seller shall be liable to Buyer for interest on any amounts owing by Seller hereunder, from the date Seller
becomes liable for such amounts hereunder until such amounts are (i) paid in full by Seller or (ii) satisfied in full
by the exercise of Buyer’s rights hereunder. Interest on any sum payable by Seller under this Section 16(g) shall be
at a rate equal to the Post-Default Rate.

 

h.Buyer shall have,
in addition to its rights hereunder, any rights otherwise available to it under any other agreement or applicable law.

 

i.Buyer may exercise
one or more of the remedies available to Buyer immediately upon the occurrence of an Event of Default and, except to the extent
provided in subsections (a) and (d) of this Section, at any time thereafter without notice to Seller. All rights and remedies arising
under this Agreement as amended from time to time hereunder are cumulative and not exclusive of any other rights or remedies which
Buyer may have.

 

j.Buyer may enforce
its rights and remedies hereunder without prior judicial process or hearing, and Seller hereby expressly waives any defenses Seller
might otherwise have to require Buyer to enforce its rights by judicial process. Seller also waives any defense (other than a defense
of payment or performance) Seller might otherwise have arising from the use of nonjudicial process, enforcement and sale of all
or any portion of the Repurchase Assets, or from any other election of remedies. Seller recognizes that nonjudicial remedies are
consistent with the usages of the trade, are responsive to commercial necessity and are the result of a bargain at arm’s
length.

 

k.Buyer shall have
the right to perform reasonable due diligence with respect to Seller and the Mortgage Loans, which review shall be at the expense
of Seller subject to Section 35 hereof.

 

17.Reports

 

a.Notices.
Seller or Guarantor shall furnish to Buyer (x) promptly, copies of any material and adverse notices (including, without limitation,
notices of defaults, breaches, potential defaults or potential breaches) and any material financial information that is not otherwise
required to be provided by Seller or Guarantor hereunder which is given to Seller’s lenders, (y) immediately, notice
of the occurrence of any Event of Default hereunder or default or breach by Seller, Guarantor or Servicer of any obligation under
any Program Agreement or any material contract or agreement of Seller, Guarantor or Servicer or the occurrence of any event or
circumstance that such party reasonably expects has resulted in, or will, with the passage of time, result in, a Material Adverse
Effect or an Event of Default or such a default or breach by such party and (z) the following:

 

(1)as soon as available
and in any event within forty-five (45) calendar days after the end of each calendar month, the unaudited consolidated balance
sheets of Guarantor and its consolidated Subsidiaries and the unaudited balance sheet of Seller, each as at the end of such period
and the related unaudited consolidated statements of income for Guarantor and its consolidated Subsidiaries and Seller for such
period and the portion of the fiscal year through the end of such period, accompanied by a certificate of a Responsible Officer
of Guarantor or Seller, as applicable, which certificate shall state that said consolidated financial statements or financial statements,
as applicable, fairly present in all material respects the consolidated financial condition or financial condition, as applicable,
and results of operations of Guarantor and its consolidated Subsidiaries or Seller, as applicable, in accordance with GAAP, consistently
applied, as at the end of, and for, such period (subject to normal year-end adjustments);

 

    	 	- 52 -	 

     

    

 

(2)as soon as available
and in any event within forty-five (45) calendar days after the end of each calendar quarter, the unaudited consolidated cash flow
statements of Guarantor and its consolidated Subsidiaries and the unaudited cash flow statements of Seller, each as at the end
of such period and the portion of the fiscal year through the end of such period, accompanied by a certificate of a Responsible
Officer of Guarantor or Seller, as applicable, which certificate shall state that said consolidated financial statements or financial
statements, as applicable, fairly present in all material respects the consolidated financial condition or financial condition,
as applicable, and results of operations of Guarantor and its consolidated Subsidiaries or Seller, as applicable, in accordance
with GAAP, consistently applied, as at the end of, and for, such period (subject to normal year-end adjustments);

 

(3)as soon as available
and in any event within ninety (90) days after the end of each fiscal year of Guarantor and Seller, the consolidated balance sheets
of Guarantor and its consolidated Subsidiaries and the balance sheet of Seller, each as at the end of such fiscal year and the
related consolidated statements of income and retained earnings and of cash flows for Guarantor and its consolidated Subsidiaries
and Seller for such year, setting forth in each case in comparative form the figures for the previous year, accompanied by an opinion
thereon of independent certified public accountants of recognized national standing, which opinion and the scope of audit shall
be acceptable to Buyer in its sole discretion, shall have no “going concern” qualification and shall state that said
consolidated financial statements or financial statements, as applicable, fairly present the consolidated financial condition or
financial condition, as applicable, and results of operations of Guarantor and its respective consolidated Subsidiaries or Seller,
as applicable, as at the end of, and for, such fiscal year in accordance with GAAP;

 

(4)such other prepared
statements that Buyer may reasonably request;

 

(5)if applicable,
copies of any 10-Ks, 10-Qs, registration statements and other “corporate finance” SEC filings (other than 8-Ks)
by Guarantor, Seller or any Affiliate, within 5 Business Days of their filing with the SEC; provided, that, Guarantor, Seller
or any Affiliate will provide Buyer and Credit Suisse First Boston Corporation with a copy of the annual 10-K filed with the SEC
by Guarantor, Seller or their Affiliates, no later than 90 days after the end of the year;

 

    	 	- 53 -	 

     

    

 

(6)as soon as available,
and in any event within thirty (30) days of receipt, copies of relevant portions of all final written Agency, FHA, VA, Governmental
Authority and investor audits, examinations, evaluations, monitoring reviews and reports of its operations (including those prepared
on a contract basis) which provide for or relate to (i) material corrective action required, (ii) material sanctions proposed,
imposed or required, including without limitation notices of defaults, notices of termination of approved status, notices of imposition
of supervisory agreements or interim servicing agreements, and notices of probation, suspension, or non-renewal, or (iii) “report
cards,” “grades” or other classifications of the quality of Seller’s operations;

 

(7)from time to time
such other information regarding the financial condition, operations, or business of Seller or Guarantor as Buyer may reasonably
request;

 

(8) as soon as reasonably
possible, and in any event within thirty (30) days after a Responsible Officer of Seller or Guarantor has knowledge of the occurrence
of any Event of Termination, stating the particulars of such Event of Termination in reasonable detail;

 

(9)As soon as reasonably
possible, notice of any of the following events:

 

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

 

(b)any material
dispute, litigation, investigation, proceeding or suspension between Seller or Servicer, on the one hand, and any Governmental
Authority or any Person;

 

(c)any material
change in accounting policies or financial reporting practices of Seller or Servicer;

 

(d)with respect
to any Purchased Mortgage Loan, immediately upon receipt of notice or knowledge thereof, that the underlying Mortgaged Property
has been damaged by waste, fire, earthquake or earth movement, windstorm, flood, tornado or other casualty, or otherwise damaged
so as to affect adversely the value of such Mortgaged Loan;

 

(e)any material
issues raised upon examination of Seller or Seller’s facilities by any Governmental Authority;

 

    	 	- 54 -	 

     

    

 

(f)any material
change in the Indebtedness of Seller, including, without limitation, any default, renewal, non-renewal, termination, increase in
available amount or decrease in available amount related thereto;

 

(g)promptly upon
receipt of notice or knowledge of (i) any default related to any Repurchase Asset, (ii) any lien or security interest (other than
security interests created hereby or by the other Program Agreements) on, or claim asserted against, any of the Purchased Mortgage
Loans;

 

(h)a summary of
the portfolio performance on a rolling monthly period, commencing on the calendar quarter following the date hereof, stratified
by percentage repurchase demands for: representation breaches, missing document breaches, repurchases due to fraud, early payment
default requests, summarized on the basis of (a) pending repurchase demands (including weighted average duration of outstanding
request), (b) satisfied repurchase demands, (c) total repurchase demands;

 

(i)any other event,
circumstance or condition that has resulted, or has a possibility of resulting, in a Material Adverse Effect with respect to Seller
or Servicer; and

 

(j)the occurrence
of any material employment dispute and a description of the strategy for resolving it that has the possibility of resulting in
a Material Adverse Effect.

 

b.Officer’s
Certificates. Seller will furnish to Buyer, at the time Seller furnishes each set of financial statements pursuant to Section
17(a)(1), (2) and (3) above, a certificate of a Responsible Officer of Seller in the form of Exhibit A to the Pricing Side
Letter.

 

c.Mortgage Loan
Reports. Within 10 days of the end of each calendar month, Seller will furnish to Buyer monthly electronic Mortgage Loan performance
data, including, without limitation, delinquency reports and volume information and responses thereto, broken down by product (i.e.,
delinquency, foreclosure and net charge-off reports).

 

d.Asset Tape.
Seller shall provide to Buyer, electronically, in a format mutually acceptable to Buyer and Seller, an Asset Tape by no later than
the Reporting Date.

 

e.Quality Control
Reports. Periodic internal quality control reports and internal audit reports as they are distributed to the board of directors
of Seller or Guarantor.

 

f.MSR Reports.
Seller shall provide the market value analysis for the MSR Valuation as determined (i) internally for each monthly fiscal period
and (ii) by a Third Party Evaluator for each quarterly fiscal period to the extent received, in all instances as set forth in the
Officer’s Compliance Certificate delivered pursuant to Section 17.b. herein.

 

    	 	- 55 -	 

     

    

 

g.Other. Seller
shall deliver to Buyer any other reports or information reasonably requested by Buyer or as otherwise required pursuant to this
Agreement.

 

h.DE Compare Ratio
and HUD Reports. Seller shall furnish to Buyer the following notices:

 

1.In the event Seller’s DE Compare
Ratio equals or exceeds 200%, Seller shall provide Buyer with written notice of such occurrence within five (5) Business Days,
which notice shall include a written summary of actions Seller is taking to correct its DE Compare Ratio.

 

2.In the event Seller receives any
inquiry or notice from HUD regarding its DE Compare Ratio, Seller shall provide Buyer with written notice of such inquiry or notice
within five (5) Business Days, regardless of Seller’s current DE Compare Ratio.

 

3.In the event any action plan with
respect to Seller’s DE Compare Ratio is agreed to between Seller and HUD or imposed upon Seller by HUD, Seller shall provide
Buyer with a written summary of such agreement or imposition, as applicable, within five (5) Business Days.

 

18.Repurchase
Transactions

 

Buyer may, in its sole
election, engage in repurchase transactions with the Purchased Mortgage Loans or otherwise pledge, hypothecate, assign, transfer
or otherwise convey the Purchased Mortgage Loans with a counterparty of Buyer’s choice. Unless an Event of Default shall
have occurred, no such transaction shall relieve Buyer of its obligations to transfer Purchased Mortgage Loans to Seller pursuant
to Section 4 hereof, or of Buyer’s obligation to credit or pay Income to, or apply Income to the obligations of, Seller pursuant
to Section 7 hereof. In the event Buyer engages in a repurchase transaction with any of the Purchased Mortgage Loans or otherwise
pledges or hypothecates any of the Purchased Mortgage Loans, Buyer shall have the right to assign to Buyer’s counterparty
any of the applicable representations or warranties herein and the remedies for breach thereof, as they relate to the Purchased
Mortgage Loans that are subject to such repurchase transaction.

 

19.Single
Agreement

 

Buyer and Seller acknowledge
that, and have entered hereunto, and will enter into each Transaction hereunder, in consideration of and in reliance upon the fact
that, all Transactions hereunder constitute a single business and contractual relationship and have been made in consideration
of each other. Accordingly, each of Buyer and Seller agrees (i) to perform all of its obligations in respect of each Transaction
hereunder, and that a default in the performance of any such obligations shall constitute a default by it in respect of all Transactions
hereunder, (ii) that each of them shall be entitled to set-off claims and apply property held by them in respect of any Transaction
against obligations owing to them in respect of any other Transactions hereunder and (iii)  that payments, deliveries
and other transfers made by either of them in respect of any Transaction shall be deemed to have been made in consideration of
payments, deliveries and other transfers in respect of any other Transactions hereunder, and the obligations to make any such payments,
deliveries and other transfers may be applied against each other and netted.

 

    	 	- 56 -	 

     

    

 

20.Notices
and Other Communications

 

Any and all notices (with
the exception of Transaction Requests or Purchase Confirmations, which shall be delivered via facsimile only), statements, demands
or other communications hereunder may be given by a party to the other by mail, email, facsimile, messenger or otherwise to the
address specified below, or so sent to such party at any other place specified in a notice of change of address hereafter received
by the other. All notices, demands and requests hereunder may be made orally, to be confirmed promptly in writing, or by other
communication as specified in the preceding sentence.

 

If to Seller or Guarantor:

 

PennyMac Loan Services, LLC

3043 Townsgate Road

Westlake Village, California
91361

Attention: Pamela Marsh/Kevin
Chamberlain

Phone Number: (805)
330-6059/(818) 746-2877

E-mail: pamela.marsh@pnmac.com ; kevin.chamberlain@pnmac.com

 

 

with a copy to:

 

PennyMac Loan Services,
LLC

3043 Townsgate Road

  Westlake Village, California 91361
 Attention: Jeff Grogin
 Phone Number: (818) 224-7050
 E-mail: jeff.grogin@pnmac.com

 

If to Buyer:

For Transaction Requests and Purchase
Confirmations:

 

CSFBMC LLC

c/o Credit Suisse Securities (USA) LLC

One Madison Avenue, 2nd floor

New York, New York 10010

Attention: Christopher Bergs, Resi Mortgage Warehouse Ops

Phone: 212-538-5087

E-mail: christopher.bergs@credit-suisse.com

 

    	 	- 57 -	 

     

    

 

with a copy to:

Credit Suisse First Boston Mortgage Capital LLC

c/o Credit Suisse Securities (USA) LLC

Eleven Madison Avenue, 4th Floor

New York, NY 10010

Attention: Margaret Dellafera

E-mail: margaret.dellafera@credit-suisse.com

 

For all other Notices:

Credit Suisse First Boston Mortgage Capital LLC

c/o Credit Suisse Securities (USA) LLC

Eleven Madison Avenue, 4th Floor

Attention: Margaret Dellafera

New York, New York 10010

Phone Number: 212-325-6471

Fax Number: 212-743-4810

E-mail: margaret.dellafera@credit-suisse.com

 

with a copy to:

Credit Suisse First Boston Mortgage Capital LLC

c/o Credit Suisse Securities (USA) LLC

One Madison Avenue, 9th Floor

New York, NY 10010

Attention: Legal Department—RMBS Warehouse Lending

Fax Number: (212) 322-2376

 

21.Entire
Agreement; Severability

 

This Agreement shall
supersede any existing agreements between the parties containing general terms and conditions for repurchase transactions. Each
provision and agreement herein shall be treated as separate and independent from any other provision or agreement herein and shall
be enforceable notwithstanding the unenforceability of any such other provision or agreement.

 

22.Non assignability

 

The Program Agreements
are not assignable by Seller or Guarantor. Buyer may from time to time assign all or a portion of its rights and obligations under
this Agreement and the Program Agreements; provided, however that Buyer shall maintain as agent of Seller, for review by
Seller upon written request, a register of assignees and a copy of an executed assignment and acceptance by Buyer and assignee
(“Assignment and Acceptance”), specifying the percentage or portion of such rights and obligations assigned.
Upon such assignment, (a) such assignee shall be a party hereto and to each Program Agreement to the extent of the percentage
or portion set forth in the Assignment and Acceptance, and shall succeed to the applicable rights and obligations of Buyer hereunder,
and (b) Buyer shall, to the extent that such rights and obligations have been so assigned by it to either (i) an Affiliate
of Buyer which assumes the obligations of Buyer or (ii) to another Person approved by Seller (such approval not to be unreasonably
withheld) which assumes the obligations of Buyer, be released from its obligations hereunder and under the Program Agreements.
Unless otherwise stated in the Assignment and Acceptance, Seller shall continue to take directions solely from Buyer unless otherwise
notified by Buyer in writing. Buyer may distribute to any prospective assignee any document or other information delivered to Buyer
by Seller.

 

    	 	- 58 -	 

     

    

 

23.Set-off

 

In addition to any rights
and remedies of Buyer hereunder and by law, Buyer shall have the right, without prior notice to Seller or Guarantor, any such notice
being expressly waived by Seller and Guarantor to the extent permitted by applicable law to set-off and appropriate and apply against
any Obligation from Seller, Guarantor or any Affiliate thereof to Buyer or any of its Affiliates any and all deposits (general
or special, time or demand, provisional or final), in any currency, and any other obligation (including to return excess margin),
credits, indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or contingent, matured or unmatured,
at any time held or owing by or due from Buyer or any Affiliate thereof to or for the credit or the account of Seller, Guarantor
or any Affiliate thereof. Buyer agrees promptly to notify Seller or Guarantor after any such set off and application made by Buyer;
provided that the failure to give such notice shall not affect the validity of such set off and application.

 

24.Binding
Effect; Governing Law; Jurisdiction

 

a.This Agreement
shall be binding and inure to the benefit of the parties hereto and their respective successors and permitted assigns. Seller acknowledges
that the obligations of Buyer hereunder or otherwise are not the subject of any guaranty by, or recourse to, any direct or indirect
parent or other Affiliate of Buyer. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAW OF THE STATE
OF NEW YORK, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF.

 

b.EACH OF SELLER
AND GUARANTOR HEREBY WAIVES TRIAL BY JURY. EACH OF SELLER AND GUARANTOR HEREBY IRREVOCABLY CONSENTS TO THE EXCLUSIVE JURISDICTION
OF ANY COURT OF THE STATE OF NEW YORK, OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, ARISING
OUT OF OR RELATING TO THE PROGRAM AGREEMENTS IN ANY ACTION OR PROCEEDING. EACH OF SELLER AND GUARANTOR HEREBY SUBMITS TO, AND WAIVES
ANY OBJECTION IT MAY HAVE TO, EXCLUSIVE PERSONAL JURISDICTION AND VENUE IN THE COURTS OF THE STATE OF NEW YORK AND THE UNITED STATES
DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, WITH RESPECT TO ANY DISPUTES ARISING OUT OF OR RELATING TO THE PROGRAM
AGREEMENTS.

 

    	 	- 59 -	 

     

    

 

25.No Waivers,
Etc.

 

No express or implied
waiver of any Event of Default by either party shall constitute a waiver of any other Event of Default and no exercise of any remedy
hereunder by any party shall constitute a waiver of its right to exercise any other remedy hereunder. No modification or waiver
of any provision of this Agreement and no consent by any party to a departure herefrom shall be effective unless and until such
shall be in writing and duly executed by both of the parties hereto. Without limitation on any of the foregoing, the failure to
give a notice pursuant to Section 6(a), 16(a) or otherwise, will not constitute a waiver of any right to do so at a later
date.

 

26.Intent

 

a.The parties intend
that: (i) each Transaction is a “repurchase agreement” as that term is defined in section 101(47) of the Bankruptcy
Code, and, therefore, is subject to the protections
of certain sections of the Bankruptcy Code including, without limitation, section 559 with respect to the exercise by Buyer of
its rights hereunder to cause the liquidation, termination, or acceleration of such Transaction upon Seller becoming the subject
of a proceeding under the Bankruptcy Code, (ii) each Transaction is a “securities contract” as that term is defined
in Section 741 of the Bankruptcy Code, and, therefore,
is subject to the protections of certain sections of the Bankruptcy Code including, without limitation, section 555 with respect
to the exercise by Buyer of its rights hereunder to cause the liquidation, termination, or acceleration of such Transaction upon
Seller becoming the subject of a proceeding under the Bankruptcy Code, and (iii) this Agreement is a “master netting agreement,”
as that term is defined in section 101(38A) of the Bankruptcy Code and, therefore, is subject to the protections of certain sections
of the Bankruptcy Code including without limitation, section 561 with respect to Buyer’s rights to offset or net termination
values, payment amounts, or other transfer obligations arising under or in connection with the termination, liquidation, or acceleration
of Transactions hereunder.

 

b.The parties agree
and acknowledge that if a party hereto is an “insured depository institution,” as such term is defined in the Federal
Deposit Insurance Act, as amended (“FDIA”), then each Transaction hereunder is a “qualified financial contract,”
as that term is defined in FDIA and any rules, orders or policy statements thereunder (except insofar as the type of assets subject
to such Transaction would render such definition inapplicable).

 

c.It is understood
that this Agreement constitutes a “netting contract” as defined in and subject to Title IV of the Federal Deposit
Insurance Corporation Improvement Act of 1991 (“FDICIA”) and each payment entitlement and payment obligation
under any Transaction hereunder shall constitute a “covered contractual payment entitlement” or “covered
contractual payment obligation”, respectively, as defined in and subject to FDICIA (except insofar as one or both of
the parties is not a “financial institution” as that term is defined in FDICIA).

 

    	 	- 60 -	 

     

    

 

d.For U.S. federal
tax purposes, the Seller, the Guarantor, the Buyer, and each Buyer assignee by acquiring an interest in any Transaction agree to
treat and report each Transaction as indebtedness issued by Guarantor or Seller as the case may be, which indebtedness, in the
case of each obligor, shall have but a single maturity for purposes of Code section 7701(i)(2)(A)(ii) and U.S. Treasury Regulation
section 301.7701(i)-1(e).

 

e.Each party agrees
that this Agreement is intended to create mutuality of obligations among the parties, and as such, the Agreement constitutes a
contract which (i) is among all of the parties and (ii) places each party in the same “right” and “capacity”.

 

27.Disclosure
Relating to Certain Federal Protections

 

The parties acknowledge
that they have been advised that:

 

a.in the case of
Transactions in which one of the parties is a broker or dealer registered with the SEC under Section 15 of the 1934 Act, the
Securities Investor Protection Corporation has taken the position that the provisions of the SIPA do not protect the other party
with respect to any Transaction hereunder;

 

b.in the case of
Transactions in which one of the parties is a government securities broker or a government securities dealer registered with the
SEC under Section 15C of the 1934 Act, SIPA will not provide protection to the other party with respect to any Transaction
hereunder; and

 

c.in the case of
Transactions in which one of the parties is a financial institution, funds held by the financial institution pursuant to a Transaction
hereunder are not a deposit and therefore are not insured by the Federal Deposit Insurance Corporation or the National Credit Union
Share Insurance Fund, as applicable.

 

28.Power of
Attorney

 

Seller hereby authorizes
Buyer to file such financing statement or statements relating to the Repurchase Assets without Seller’s signature thereon
as Buyer, at its option, may deem appropriate. Seller hereby appoints Buyer as Seller’s agent and attorney-in-fact to execute
any such financing statement or statements in Seller’s name and to perform all other acts which Buyer deems appropriate to
perfect and continue its ownership interest in and/or the security interest granted hereby, if applicable, and to protect, preserve
and realize upon the Repurchase Assets, including, but not limited to, the right to endorse notes, complete blanks in documents,
transfer servicing, and sign assignments on behalf of Seller as its agent and attorney-in-fact. This agency and power of attorney
is coupled with an interest and is irrevocable without Buyer’s consent. Notwithstanding the foregoing, the power of attorney
hereby granted may be exercised only during the occurrence and continuance of any Default hereunder. Seller shall pay the filing
costs for any financing statement or statements prepared pursuant to this Section 28. In addition the foregoing, Seller agrees
to execute an amended and restated power of attorney in the form of Exhibit E hereto (the “Power of Attorney”),
to be delivered on the date hereof.

 

    	 	- 61 -	 

     

    

 

29.Buyer May
Act Through Affiliates

 

Buyer may, from time
to time, designate one or more affiliates for the purpose of performing any action hereunder.

 

30.Indemnification;
Obligations

 

a.Each of Seller
and Guarantor agrees to hold Buyer and each of its respective Affiliates and their officers, directors, employees, agents and advisors
(each, an “Indemnified Party”) harmless from and indemnify each Indemnified Party (and will reimburse each Indemnified
Party as the same is incurred) against all liabilities, losses, damages, judgments, costs and expenses (including, without limitation,
reasonable fees and expenses of counsel) of any kind which may be imposed on, incurred by, or asserted against any Indemnified
Party relating to or arising out of this Agreement, any Transaction Request, Purchase Confirmation, any Program Agreement or any
transaction contemplated hereby or thereby resulting from anything other than the Indemnified Party’s gross negligence or
willful misconduct. Each of Seller and Guarantor also agrees to reimburse each Indemnified Party for all reasonable expenses in
connection with the enforcement of this Agreement and the exercise of any right or remedy provided for herein, any Transaction
Request, Purchase Confirmation and any Program Agreement, including, without limitation, the reasonable fees and disbursements
of counsel. Seller’s and Guarantor’s agreements in this Section 30 shall survive the payment in full of the Repurchase
Price and the expiration or termination of this Agreement. Each of Seller and Guarantor hereby acknowledges that its obligations
hereunder are recourse obligations of Seller and Guarantor and are not limited to recoveries each Indemnified Party may have with
respect to the Purchased Mortgage Loans. Each of Seller and Guarantor also agrees not to assert any claim against Buyer or any
of its Affiliates, or any of their respective officers, directors, employees, attorneys and agents, on any theory of liability,
for special, indirect, consequential or punitive damages arising out of or otherwise relating to the facility established hereunder,
the actual or proposed use of the proceeds of the Transactions, this Agreement or any of the transactions contemplated thereby.
THE FOREGOING INDEMNITY AND AGREEMENT NOT TO ASSERT CLAIMS EXPRESSLY APPLIES, WITHOUT LIMITATION, TO THE NEGLIGENCE (BUT NOT GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT) OF THE INDEMNIFIED PARTIES.

 

b.Without limitation
to the provisions of Section 4, if any payment of the Repurchase Price of any Transaction is made by Seller other than on
the then scheduled Repurchase Date thereto as a result of an acceleration of the Repurchase Date pursuant to Section 16 or
for any other reason, Seller shall, upon demand by Buyer, pay to Buyer an amount sufficient to compensate Buyer for any losses,
costs or expenses that it may reasonably incur as of a result of such payment.

 

    	 	- 62 -	 

     

    

 

c.Without limiting
the provisions of Section 30(a) hereof, if Seller fails to pay when due any costs, expenses or other amounts payable by it under
this Agreement, including, without limitation, fees and expenses of counsel and indemnities, such amount may be paid on behalf
of Seller by Buyer, in its sole discretion.

 

31.Counterparts

 

This Agreement may be
executed in one or more counterparts, each of which shall be deemed to be an original, and all such counterparts shall together
constitute one and the same instrument.

 

32.Confidentiality

 

This Agreement and its
terms, provisions, supplements and amendments, and notices hereunder, are proprietary to Buyer and Agent or Seller and Guarantor,
as applicable and shall be held by each party hereto, as applicable in strict confidence and shall not be disclosed to any third
party without the written consent of Buyer, Seller or Guarantor, as applicable, except for (i) disclosure to Buyer’s,
Seller’s or Guarantor’s direct and indirect Affiliates and Subsidiaries, attorneys or accountants, but only to the
extent such disclosure is necessary and such parties agree to hold all information in strict confidence, or (ii)  disclosure
required by law, rule, regulation or order of a court or other regulatory body. Notwithstanding the foregoing or anything to the
contrary contained herein or in any other Program Agreement, the parties hereto may disclose to any and all Persons, without limitation
of any kind, the federal, state and local tax treatment of the Transactions, any fact relevant to understanding the federal, state
and local tax treatment of the Transactions, and all materials of any kind (including opinions or other tax analyses) relating
to such federal, state and local tax treatment and that may be relevant to understanding such tax treatment; provided that
Seller may not disclose the name of or identifying information with respect to Buyer or Agent or any pricing terms (including,
without limitation, the Pricing Rate, Commitment Fee, Purchase Price Percentage and Purchase Price) or other nonpublic business
or financial information (including any sublimits and financial covenants) that is unrelated to the federal, state and local tax
treatment of the Transactions and is not relevant to understanding the federal, state and local tax treatment of the Transactions,
without the prior written consent of Buyer.

 

Notwithstanding anything
in this Agreement to the contrary, Seller shall comply with all applicable local, state and federal laws, including, without limitation,
all privacy and data protection law, rules and regulations that are applicable to the Purchased Assets and/or any applicable terms
of this Agreement (the “Confidential Information”). Seller understands that the Confidential Information may
contain “nonpublic personal information”, as that term is defined in Section 509(4) of the Gramm-Leach-Bliley Act (the
“Act”), and Seller agrees to maintain such nonpublic personal information that it receives hereunder in accordance
with the Act and other applicable federal and state privacy laws. Seller shall implement such physical and other security measures
as shall be necessary to (a) ensure the security and confidentiality of the “nonpublic personal information” of the
“customers” and “consumers” (as those terms are defined in the Act) of Buyer or any Affiliate of Buyer
which Buyer holds (b) protect against any threats or hazards to the security and integrity of such nonpublic personal information,
and (c) protect against any unauthorized access to or use of such nonpublic personal information. Seller represents and warrants
that it has implemented appropriate measures to meet the objectives of Section 501(b) of the Act and of the applicable standards
adopted pursuant thereto, as now or hereafter in effect. Upon request, Seller will provide evidence reasonably satisfactory to
allow Buyer to confirm that the providing party has satisfied its obligations as required under this Section. Without limitation,
this may include Buyer’s review of audits, summaries of test results, and other equivalent evaluations of Seller. Seller
shall notify the other party immediately following discovery of any breach or compromise of the security, confidentiality, or integrity
of nonpublic personal information of the customers and consumers of Buyer or any Affiliate of Buyer provided directly to Seller
by Buyer or such Affiliate. Seller shall provide such notice to Buyer by personal delivery, by facsimile with confirmation of receipt,
or by overnight courier with confirmation of receipt to the applicable requesting individual.

 

    	 	- 63 -	 

     

    

 

33.Recording
of Communications

 

Buyer, Seller and Guarantor
shall have the right (but not the obligation) from time to time to make or cause to be made tape recordings of communications between
its employees and those of the other party with respect to Transactions. Buyer, Seller and Guarantor consent to the admissibility
of such tape recordings in any court, arbitration, or other proceedings. The parties agree that a duly authenticated transcript
of such a tape recording shall be deemed to be a writing conclusively evidencing the parties’ agreement.

 

34.Commitment
Fee

 

No later than the date
hereof, Seller shall pay to Buyer in immediately available funds a non-refundable Commitment Fee. The Commitment Fee shall be paid
in quarterly equal installments which shall be paid on the date hereof and on the Price Differential Payment Date every third (3rd)
month hereafter. All payments of the Commitment Fee shall be made in Dollars, in immediately available funds, without deduction,
set-off or counterclaim, to Buyer at such account designated by Buyer.

 

35.Periodic
Due Diligence Review

 

Seller acknowledges that
Buyer has the right to perform continuing due diligence reviews with respect to Seller and the Mortgage Loans, for purposes of
verifying compliance with the representations, warranties and specifications made hereunder, or otherwise, and Seller agrees that
upon reasonable (but no less than one (1) Business Day’s) prior notice unless an Event of Default shall have occurred, in
which case no notice is required, to Seller, Buyer or its authorized representatives will be permitted during normal business hours
to examine, inspect, and make copies and extracts of, the Mortgage Files and any and all documents, records, agreements, instruments
or information relating to such Mortgage Loans in the possession or under the control of Seller and/or Custodian. Seller also shall
make available to Buyer a knowledgeable financial or accounting officer for the purpose of answering questions respecting the Mortgage
Files and the Mortgage Loans. Without limiting the generality of the foregoing, Seller acknowledges that Buyer may purchase Mortgage
Loans from Seller based solely upon the information provided by Seller to Buyer in the Mortgage Loan Schedule and the representations,
warranties and covenants contained herein, and that Buyer, at its option, has the right at any time to conduct a partial or complete
due diligence review on some or all of the Mortgage Loans purchased in a Transaction, including, without limitation, ordering Broker’s
price opinions, new credit reports and new appraisals on the related Mortgaged Properties and otherwise re-generating the information
used to originate such Mortgage Loan. Buyer may underwrite such Mortgage Loans itself or engage a mutually agreed upon third party
underwriter to perform such underwriting. Seller agrees to cooperate with Buyer and any third party underwriter in connection with
such underwriting, including, but not limited to, providing Buyer and any third party underwriter with access to any and all documents,
records, agreements, instruments or information relating to such Mortgage Loans in the possession, or under the control, of Seller.
Seller further agrees that Seller shall pay all out-of-pocket costs and expenses incurred by Buyer in connection with Buyer’s
activities pursuant to this Section 35 (“Due Diligence Costs”); provided, that such Due Diligence Costs
shall not exceed the Due Diligence Cap per calendar year unless a Default or Event of Default shall have occurred, in which event
Buyer shall have the right to perform due diligence, at the sole expense of Seller without regard to the dollar limitation set
forth herein.

 

    	 	- 64 -	 

     

    

 

36.Authorizations

 

Any of the persons whose
signatures and titles appear on Schedule 2 are authorized, acting singly, to act for Seller or Buyer, as the case may be, under
this Agreement. The Seller may amend Schedule 2 from time to time by delivering a revised Schedule 2 to Buyer and expressly stating
that such revised Schedule 2 shall replace the existing Schedule 2.

 

37.Acknowledgement
Of Anti-Predatory Lending Policies

 

Buyer has in place internal
policies and procedures that expressly prohibit its purchase of any High Cost Mortgage Loan.

 

38.Documents
Mutually Drafted

 

Seller and Buyer agree
that this Agreement and each other Program Agreement prepared in connection with the Transactions set forth herein have been mutually
drafted and negotiated by each party, and consequently such documents shall not be construed against either party as the drafter
thereof.

 

39.General
Interpretive Principles

 

For purposes of this
Agreement, except as otherwise expressly provided or unless the context otherwise requires:

 

a.the terms defined
in this Agreement have the meanings assigned to them in this Agreement and include the plural as well as the singular, and the
use of any gender herein shall be deemed to include the other gender;

 

    	 	- 65 -	 

     

    

 

b.accounting terms
not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles;

 

c.references herein
to “Articles”, “Sections”, “Subsections”, “Paragraphs”, and other subdivisions
without reference to a document are to designated Articles, Sections, Subsections, Paragraphs and other subdivisions of this Agreement;

 

d.a reference to
a Subsection without further reference to a Section is a reference to such Subsection as contained in the same Section in which
the reference appears, and this rule shall also apply to Paragraphs and other subdivisions;

 

e.the words “herein”,
“hereof”, “hereunder” and other words of similar import refer to this Agreement as a whole and not to any
particular provision;

 

f.the term “include”
or “including” shall mean without limitation by reason of enumeration;

 

g.all times specified
herein or in any other Program Agreement (unless expressly specified otherwise) are local times in New York, New York unless otherwise
stated; and

 

h.all references
herein or in any Program Agreement to "good faith" means good faith as defined in Section 1-201(19) of the UCC as in
effect in the State of New York.

 

40.Condition
Subsequent.

 

Within ten (10) Business
Days following the date hereof, Seller shall deliver to Buyer the opinion of Seller’s and Guarantor’s internal counsel,
in form and substance mutually agreed upon by parties hereto, as referred to in Section 10(a)(6) hereof. Buyer reserves the right
not to fund any Transactions if Seller fails to deliver such items as described in this Section. Seller’s failure to deliver
these items shall be a breach of a material covenant under this Agreement.

 

41.Amendment
and Restatement

 

The terms and provisions
of the Existing Master Repurchase Agreement are hereby amended and restated in their entirety by the terms and provisions of this
Agreement and shall supersede all provisions of the Existing Master Repurchase Agreement as of the date hereof. From and after
the date hereof, all references made to the Existing Master Repurchase Agreement in any Program Agreement or in any other instrument
or document shall, without more, be deemed to refer to this Agreement.

 

42.Agency
and Allocation Agreement.

 

Buyer intends to assign
the Transactions to one or more affiliates of Buyer and to enter into an agency and allocation agreement allocating current and
future Transactions to such affiliates and setting forth certain agency related provisions and amending this Agreement to conform
thereto, as applicable. Seller shall agree to and acknowledge such agency and allocation agreement in writing (the “Allocation
Agreement”). In the event that the Seller fails to execute the Allocation Agreement described herein for any reason within
sixty (60) days following receipt thereof from Buyer or its counsel, then the obligations of the Buyer under the Repurchase Agreement
will be deemed uncommitted and Buyer shall have no obligations to enter into Transactions under the Repurchase Agreement.

 

    	 	- 66 -	 

     

    

 

43.Reaffirmation
of Guaranty

 

Guarantor hereby (i)
agrees that the liability of Guarantor or rights of Buyer under the Guaranty shall not be affected as a result of amending and
restating this Agreement, (ii) ratifies and affirms all of the terms, covenants, conditions and obligations of the Guaranty and
(iii) acknowledges and agrees that such Guaranty is and shall continue to be in full force and effect.

 

[Signature Page Follows]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	- 67 -	 

     

    

IN WITNESS WHEREOF, Seller, Guarantor and Buyer have caused
their names to be signed hereto by their respective officers thereunto duly authorized as of the date first above written.

 

	 	 Credit
Suisse First Boston Mortgage Capital LLC, as Buyer

 

By: /s/ Elie Chau

       Name: Elie Chau

       Title: Vice President

 

PENNYMAC
LOAN SERVICES, LLC, as Seller

 

By: /s/ Pamela Marsh

       Name: Pamela Marsh

       Title: Managing Director, Treasurer

 

PRIVATE
NATIONAL MORTGAGE ACCEPTANCE COMPANY, LLC, as Guarantor

 

By: /s/ Pamela Marsh______________________

       Name: Pamela Marsh

       Title: Managing Director, Treasurer

 

 

 

 

 

Signature Page to Second Amended and Restated
Master Repurchase Agreement

    	 	 	 

     

    

SCHEDULE 1

 

REPRESENTATIONS AND WARRANTIES WITH RESPECT
TO PURCHASED MORTGAGE LOANS

 

(a)Payments
Current. Except with respect to a Mortgage Loan that is a GNMA Loan, all payments required to be made up to the Purchase Date
for the Mortgage Loan under the terms of the Mortgage Note have been made and credited. Except with respect to a Mortgage Loan
that is a GNMA Loan, no payment required under the Mortgage Loan is delinquent nor has any payment under the Mortgage Loan been
delinquent at any time since the origination of the Mortgage Loan and, if the Mortgage Loan is a Co-op Loan, no foreclosure action
or private or public sale under the Uniform Commercial Code has ever to the knowledge of Seller, been threatened or commenced with
respect to the Co-op Loan. The first Monthly Payment shall be made, or shall have been made, with respect to the Mortgage Loan
on its Due Date or within the grace period, all in accordance with the terms of the related Mortgage Note.

 

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

 

(c)Original
Terms Unmodified. The terms of the Mortgage Note (and the Proprietary Lease, the Assignment of Proprietary Lease and Stock
Power with respect to each Co-op Loan) and Mortgage have not been impaired, waived, altered or modified in any respect, from the
date of origination; except (i) by a written instrument which has been recorded, if necessary to protect the interests of Buyer,
and which has been delivered to Custodian and the terms of which are reflected in the Custodial Mortgage Loan Schedule and (ii)
with respect to a Mortgage Loan that is a GNMA Loan. The substance of any such waiver, alteration or modification has been approved
by the title insurer, to the extent required, and its terms are reflected on the Custodial Mortgage Loan Schedule. No Mortgagor
in respect of the Mortgage Loan has been released, in whole or in part, except in connection with an assumption agreement approved
by the title insurer, to the extent required by such policy, and which assumption agreement is part of the Mortgage File delivered
to Custodian and the terms of which are reflected in the Custodial Mortgage Loan Schedule.

 

(d)No Defenses.
The Mortgage Loan (and the Assignment of Proprietary Lease related to each Co-op Loan) is not subject to any right of rescission,
set-off, counterclaim or defense, including, without limitation, the defense of usury, nor will the operation of any of the terms
of the Mortgage Note or the Mortgage, or the exercise of any right thereunder, render either the Mortgage Note or the Mortgage
unenforceable, in whole or in part and no such right of rescission, set-off, counterclaim or defense has been asserted with respect
thereto, and no Mortgagor in respect of the Mortgage Loan was a debtor in any state or Federal bankruptcy or insolvency proceeding
at the time the Mortgage Loan was originated. Seller has no knowledge nor has it received any notice that any Mortgagor in respect
of the Mortgage Loan is a debtor in any state or federal bankruptcy or insolvency proceeding.

 

    	 	Schedule 1- 1 	 

     

    

 

(e)Hazard
Insurance. The Mortgaged Property is insured by a fire and extended perils insurance policy, issued by a Qualified Insurer,
and such other hazards as are customary in the area where the Mortgaged Property is located, and to the extent required by Seller
as of the date of origination consistent with the Underwriting Guidelines, against earthquake and other risks insured against by
Persons operating like properties in the locality of the Mortgaged Property, in an amount not less than the greatest of (i) 100%
of the replacement cost of all improvements to the Mortgaged Property, (ii) the outstanding principal balance of the Mortgage
Loan, or (iii) the amount necessary to avoid the operation of any co-insurance provisions with respect to the Mortgaged Property,
and consistent with the amount that would have been required as of the date of origination in accordance with the Underwriting
Guidelines. If any portion of the Mortgaged Property is in an area identified by any federal Governmental Authority as having special
flood hazards, and flood insurance is available, a flood insurance policy meeting the current guidelines of the Federal Emergency
Management Agency is in effect with a generally acceptable insurance carrier, in an amount representing coverage not less than
the least of (1) the outstanding principal balance of the Mortgage Loan (2) the full insurable value of the Mortgaged
Property, and (3) the maximum amount of insurance available under the National Flood Insurance Act of 1968, as amended by
the Flood Disaster Protection Act of 1974. All such insurance policies (collectively, the “hazard insurance policy”)
contain a standard mortgagee clause naming Seller, its successors and assigns (including, without limitation, subsequent owners
of the Mortgage Loan), as mortgagee, and may not be reduced, terminated or canceled without 30 days’ prior written notice
to the mortgagee. No such notice has been received by Seller. All premiums on such insurance policy have been paid. The related
Mortgage obligates the Mortgagor to maintain all such insurance and, at such Mortgagor’s failure to do so, authorizes the
mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such Mortgagor.
Where required by state law or regulation, the Mortgagor has been given an opportunity to choose the carrier of the required hazard
insurance, provided the policy is not a “master” or “blanket” hazard insurance policy covering a condominium,
or any hazard insurance policy covering the common facilities of a planned unit development. The hazard insurance policy is the
valid and binding obligation of the insurer and is in full force and effect. Seller has not engaged in, and has no knowledge of
the Mortgagor’s having engaged in, any act or omission which would impair the coverage of any such policy, the benefits of
the endorsement provided for herein, or the validity and binding effect of either including, without limitation, no unlawful fee,
commission, kickback or other unlawful compensation or value of any kind has been or will be received, retained or realized by
any attorney, firm or other Person, and no such unlawful items have been received, retained or realized by Seller.

 

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

 

    	 	Schedule 1- 2 	 

     

    

 

(g)No Satisfaction
of Mortgage. The Mortgage has not been satisfied, canceled, subordinated or rescinded, in whole or in part, and the Mortgaged
Property has not been released from the lien of the Mortgage, in whole or in part, nor has any instrument been executed that would
effect any such release, cancellation, subordination or rescission. Except with respect to a Mortgage Loan that is a GNMA Loan,
Seller has not waived the performance by the Mortgagor of any action, if the Mortgagor’s failure to perform such action would
cause the Mortgage Loan to be in default, nor has Seller waived any default resulting from any action or inaction by the Mortgagor.

 

(h)Location
and Type of Mortgaged Property. The Mortgaged Property is located in an Acceptable State as identified in the Custodial Mortgage
Loan Schedule and, other than the Freddie Mac SBL Loans, consists of a single parcel of real property with a detached single family
residence erected thereon, or a two- to four-family dwelling, or an individual condominium unit in a low-rise Co-op Project, or
such other dwelling(s) conforming with the applicable Fannie Mae and Freddie Mac requirements, and, with respect to Freddie Mac
SBL Loans, consists of a single parcel of real property with a multi-family residence erected thereon conforming with the Freddie
Mac Guide, regarding such dwellings or conforming to underwriting guidelines acceptable to Buyer in its sole discretion; provided
that no residence or dwelling is a mobile home. No portion of the Mortgaged Property is used for commercial purposes; provided,
that, the Mortgaged Property may be a mixed use property if such Mortgaged Property conforms to underwriting guidelines acceptable
to Buyer in its sole discretion.

 

(i)Valid First
Lien. The Mortgage is a valid, subsisting, enforceable and perfected first priority lien and first priority security interest,
in each case, on the real property included in the Mortgaged Property, including all buildings on the Mortgaged Property. The appraisal
of the Mortgaged Property does not list any material repair or maintenance items. The lien of the Mortgage is subject only to:

 

a.the lien of current
real property taxes and assessments not yet due and payable;

 

b.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; and

 

c.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.

 

    	 	Schedule 1- 3 	 

     

    

 

Any security agreement,
chattel mortgage or equivalent document related to and delivered in connection with the Mortgage Loan establishes and creates a
valid, subsisting and enforceable first lien and first priority security interest on the property described therein 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.

 

(j)Validity
of Mortgage Documents. The Mortgage Note and the Mortgage and any other agreement executed and delivered by a Mortgagor or
guarantor, if applicable, in connection with a Mortgage Loan, and all signatures thereon, are genuine, and each such document is
the legal, valid and binding obligation of the maker thereof enforceable in accordance with its terms. All parties to the Mortgage
Note, the Mortgage and any other such related agreement had legal capacity to enter into the Mortgage Loan and to execute and deliver
the Mortgage Note, the Mortgage and any such agreement, and the Mortgage Note, the Mortgage and any other such related agreement
have been duly and properly executed by such related parties. No fraud, error, omission, misrepresentation, negligence or similar
occurrence with respect to a Mortgage Loan has taken place on the part of any Person, including, without limitation, the Mortgagor,
any appraiser, any builder or developer, or any other party involved in the origination of the Mortgage Loan. Seller has reviewed
all of the documents constituting the Mortgage File and has made such inquiries as it deems necessary to make and confirm the accuracy
of the representations set forth herein. To the best of Seller’s knowledge, except as disclosed to Buyer in writing, all
tax identifications and property descriptions are legally sufficient; and tax segregation, where required, has been completed.
Such Purchased Mortgage Loan is a “closed” loan fully funded by Seller and held in Seller’s name.

 

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

 

(l)Ownership.
Seller has full right to sell the Mortgage Loan to Buyer free and clear of any encumbrance, equity, participation interest, lien,
pledge, charge, claim or security interest, and has full right and authority subject to no interest or participation of, or agreement
with, any other party, to sell each Mortgage Loan pursuant to this Agreement and following the sale of each Mortgage Loan, Buyer
will own such Mortgage Loan (and with respect to any Co-op Loan, the sole owner of the related Assignment of Proprietary Lease)
free and clear of any encumbrance, equity, participation interest, lien, pledge, charge, claim or security interest except any
such security interest created pursuant to the terms of this Agreement.

 

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

 

    	 	Schedule 1- 4 	 

     

    

 

(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 Buyer with respect to Non-Agency QM Mortgage Loans and Fannie Mae or Freddie Mac with respect to Mortgage Loans,
other than Non-Agency QM Mortgage Loans and each such title insurance policy is issued by a title insurer acceptable Buyer
with respect to Non-Agency QM Mortgage Loans and Fannie Mae or Freddie Mac with respect to Mortgage Loans,
other than Non-Agency QM Mortgage Loans 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 of the Mortgage, in the original principal
amount of the Mortgage Loan, with respect to a Mortgage Loan, subject only to the exceptions acceptable to Buyer with respect to
Non-Agency QM Mortgage Loans and Fannie Mae or Freddie Mac with respect to Mortgage Loans,
other than Non-Agency QM Mortgage Loans. Seller, its successors and assigns, are the sole insureds of such lender’s
title insurance policy, and such lender’s title insurance policy is valid and remains in full force and effect and will be
in force and effect upon the consummation of the transactions contemplated by this Agreement. No claims have been made under such
lender’s title insurance policy, and no prior holder or servicer of the related Mortgage, including Seller, has done, by
act or omission, anything which would impair the coverage of such lender’s title insurance policy, including without limitation,
no unlawful fee, commission, kickback or other unlawful compensation or value of any kind has been or will be received, retained
or realized by any attorney, firm or other Person, and no such unlawful items have been received, retained or realized by Seller.

 

(o)No Defaults.
Except with respect to a Mortgage Loan that is a GNMA Loan, there is no default, breach, violation or event of acceleration existing
under the Mortgage or the Mortgage Note and no event has occurred which, with the passage of time or with notice and the expiration
of any grace or cure period, would constitute a default, breach, violation or event of acceleration, and neither Seller nor its
predecessors have waived any default, breach, violation or event of acceleration; and with respect to each Co-op Loan, there is
no default in complying with the terms of the Mortgage Note, the Assignment of Proprietary Lease and the Proprietary Lease and
all maintenance charges and assessments (including assessments payable in the future installments, which previously became due
and owing) have been paid, and Seller has the right under the terms of the Mortgage Note, Assignment of Proprietary Lease and Recognition
Agreement to pay any maintenance charges or assessments owed by the Mortgagor.

 

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

 

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

 

    	 	Schedule 1- 5 	 

     

    

 

(r)Origination;
Payment Terms. The Mortgage Loan was originated by or in conjunction with a mortgagee approved by the Secretary of Housing
and Urban Development pursuant to Sections 203 and 211 of the National Housing Act, a savings and loan association, a savings bank,
a commercial bank, credit union, insurance company or similar banking institution which is supervised and examined by a federal
or state authority. Principal and/or interest payments on the Mortgage Loan commenced no more than 60 days after funds were disbursed
in connection with the Mortgage Loan. With respect to adjustable rate Mortgage Loans, the Mortgage Interest Rate is adjusted on
each Interest Rate Adjustment Date to equal the Index plus the Gross Margin (rounded up or down to the nearest .125%), subject
to the Mortgage Interest Rate Cap. The Mortgage Note is payable on the first day of each month in equal monthly installments of
principal and/or interest (subject to an “interest-only” period in the case of Interest Only Loans), which installments
of interest (a) with respect to adjustable rate Mortgage Loans are subject to change on the Interest Rate Adjustment Date due to
adjustments to the Mortgage Interest Rate on each Interest Rate Adjustment Date and (b) with respect to Interest Only Loans are
subject to change on the Interest Only Adjustment Date due to adjustments to the Mortgage Interest Rate on each Interest Only Adjustment
Date, in both cases, with interest calculated and payable in arrears, sufficient to amortize the Mortgage Loan fully by the stated
maturity date, over an original term of not more than 30 years from commencement of amortization. The Due Date of the first payment
under the Mortgage Note is no more than 60 days from the date of the Mortgage Note.

 

(s)Customary
Provisions. The Mortgage Note has a stated maturity. The Mortgage contains customary and enforceable provisions such as to
render the rights and remedies of the holder thereof adequate for the realization against the Mortgaged Property of the benefits
of the security provided thereby. There is no homestead or other exemption or other right available to the Mortgagor or any other
person, or restriction on Seller or any other person, including without limitation, any federal, state or local, law, ordinance,
decree, regulation, guidance, attorney general action, or other pronouncement, whether temporary or permanent in nature, that would
interfere with, restrict or delay, either (y) the ability of Seller, Buyer or any servicer or any successor servicer to sell the
related Mortgaged Property at a trustee's sale or otherwise, or (z) the ability of Seller, Buyer or any servicer or any successor
servicer to foreclose on the related Mortgage. The Mortgage Note and Mortgage are on forms acceptable to Freddie Mac or Fannie
Mae.

 

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

 

    	 	Schedule 1- 6 	 

     

    

 

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

 

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

 

(w)Transfer
of Mortgage Loans. Except with respect to Mortgage Loans intended for purchase by GNMA and for Mortgage Loans registered with
MERS, the Assignment of Mortgage is in recordable form and is acceptable for recording under the laws of the jurisdiction in which
the Mortgaged Property is located.

 

(x)Due-On-Sale.
Except with respect to Mortgage Loans originated pursuant to FHA Guidelines, the Mortgage contains an enforceable provision for
the acceleration of the payment of the unpaid principal balance of the Mortgage Loan in the event that the Mortgaged Property is
sold or transferred without the prior written consent of the mortgagee thereunder.

 

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

 

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

 

(aa)No Condemnation
Proceeding. There have not been any condemnation proceedings with respect to the Mortgaged Property and Seller has no knowledge
of any such proceedings.

 

    	 	Schedule 1- 7 	 

     

    

 

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

 

(cc)Servicemembers
Civil Relief Act. The Mortgagor has not notified Seller, and Seller has no knowledge, of any relief requested or allowed to
the Mortgagor under the Servicemembers Civil Relief Act of 2003.

 

(dd)Appraisal.
The Mortgage File contains an full appraisal of the related Mortgaged Property signed prior to the funding of the Mortgage Loan
by a qualified appraiser, duly appointed by Seller, who had no interest, direct or indirect in the Mortgaged Property or in any
loan made on the security thereof, and whose compensation is not affected by the approval or disapproval of the Mortgage Loan,
and the appraisal and appraiser both satisfy the relevant Fannie Mae and Freddie Mac guidelines, each as amended and as in effect
on the date the Mortgage Loan was originated.

 

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

 

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

 

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

 

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

 

    	 	Schedule 1- 8 	 

     

    

 

(ii)Proceeds
of Mortgage Loan. The proceeds of the Mortgage Loan have not been and shall not be used to satisfy, in whole or in part, any
debt owed or owing by the Mortgagor to Seller or any Affiliate or correspondent of Seller, except in connection with a refinanced
Mortgage Loan.

 

(jj)Origination
Date The Purchase Date for a Mortgage Loan other than a Correspondent Loan or a GNMA Loan is no more than thirty (30) days
following the origination date and the Purchase Date for a Correspondent Loan is no more than one hundred eighty (180) days following
the origination date.

 

(kk)Mortgage Submitted
for Recordation. The Mortgage either has been or will promptly be submitted for recordation in the appropriate governmental
recording office of the jurisdiction where the Mortgaged Property is located.

 

(ll)Other
Encumbrances. To the best of Seller’s knowledge, any property subject to any security interest given in connection with
such Purchased Mortgage Loan is not subject to any other encumbrances other than a stated first mortgage, if applicable, and encumbrances
which may be allowed under the Fannie Mae Single-Family Selling and Servicing Guide, the Freddie Mac Single-Family Seller/Servicer
Guide or the Freddie Mac Multifamily Seller/Servicer Guide.

 

(mm)Description.
Each Purchased Mortgage Loan conforms to the description thereof as set forth on the related Custodial Mortgage Loan Schedule delivered
to Custodian and Buyer.

 

(nn)Located in
U.S. No collateral (including, without limitation, the related real property and the dwellings thereon and otherwise) relating
to a Purchased Mortgage Loan is located in any jurisdiction other than in one of the fifty (50) states of the United States of
America or the District of Columbia.

 

(oo)Underwriting
Guidelines. Each Purchased Mortgage Loan has been originated in accordance with the Underwriting Guidelines (including all
supplements or amendments thereto) previously provided to Buyer.

 

(pp)Committed
Mortgage Loans. Each Committed Mortgage Loan is covered by a Take-out Commitment, does not exceed the availability under such
Take-out Commitment (taking into consideration mortgage loans which have been purchased by the respective Take-out Investor under
the Take-out Commitment and mortgage loan which Seller has identified to Buyer as covered by such Take-out Commitment) and conforms
to the requirements and the specifications set forth in such Take-out Commitment and the related regulations, rules, requirements
and/or handbooks of the applicable Take-out Investor and is eligible for sale to and insurance or guaranty by, respectively the
applicable Take-out Investor and applicable insurer. Each Take-out Commitment is a legal, valid and binding obligation of Seller
enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’
rights generally and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought
in a proceeding in equity or at law).

 

    	 	Schedule 1- 9 	 

     

    

 

(qq)Primary Mortgage
Guaranty Insurance. Each Mortgage Loan is insured as to payment defaults by a policy of primary mortgage guaranty insurance
in the amount required where applicable, and by an insurer approved, by the applicable Take-out Investor, if applicable, and all
provisions of such primary mortgage guaranty insurance have been and are being complied with, such policy is in full force and
effect, and all premiums due thereunder have been paid. Each Mortgage Loan which is represented to Buyer to have, or to be eligible
for, FHA insurance is insured, or eligible to be insured, pursuant to the National Housing Act. Each Mortgage Loan which is represented
by Seller to be guaranteed, or to be eligible for guaranty, by the VA is guaranteed, or eligible to be guaranteed, under the provisions
of Chapter 37 of Title 38 of the United States Code. As to each FHA insurance certificate or each VA guaranty certificate, Seller
has complied with applicable provisions of the insurance for guaranty contract and federal statutes and regulations, all premiums
or other charges due in connection with such insurance or guarantee have been paid, there has been no act or omission which would
or may invalidate any such insurance or guaranty, and the insurance or guaranty is, or when issued, will be, in full force and
effect with respect to each Mortgage Loan. There are no defenses, counterclaims, or rights of setoff affecting the Mortgage Loans
or affecting the validity or enforceability of any private mortgage insurance or FHA insurance applicable to the Mortgage Loans
or any VA guaranty with respect to the Mortgage Loans.

 

(rr)Predatory
Lending Regulations; High Cost Loans. None of the Mortgage Loans are classified as High Cost Mortgage Loans.

 

(ss)Wet-Ink
Mortgage Loans. With respect to each Mortgage Loan that is a Wet-Ink Mortgage Loan, the Settlement Agent has been instructed
in writing by Seller to hold the related Mortgage Loan Documents as agent and bailee for Buyer or Buyer agent and to promptly forward
such Mortgage Loan Documents in accordance with the provisions of the Custodial Agreement and the Escrow Instruction Letter.

 

(tt)FHA Mortgage
Insurance; VA Loan Guaranty. With respect to the FHA Loans, the FHA Mortgage Insurance Contract is in full force and effect
and there exists no impairment to full recovery without indemnity to the Department of Housing and Urban Development or the FHA
under FHA Mortgage Insurance. With respect to the VA Loans, the VA Loan Guaranty Agreement is in full force and effect to the maximum
extent stated therein. All necessary steps have been taken to keep such guaranty or insurance valid, binding and enforceable and
each of such is the binding, valid and enforceable obligation of the FHA and the VA, respectively, to the full extent thereof,
without surcharge, set-off or defense. Each FHA Loan and VA Loan was originated in accordance with the criteria of an Agency for
purchase of such Mortgage Loans.

 

(uu)Negative Amortization.
None of the Mortgage Notes relating to any of the Mortgage Loans provides for negative amortization.

 

    	 	Schedule 1- 10 	 

     

    

 

(vv)Second Lien;
Non-Agency QM Mortgage Loans. None of the Mortgage Loans is a second lien Mortgage Loan or, except with respect to a Non-Agency
QM Mortgage Loan, an “A” quality first lien Mortgage Loan that is not eligible for sale to an Agency.

 

(ww)Co-op Loan:
Valid First Lien. With respect to each Co-op Loan, the related Mortgage is a valid, enforceable and subsisting first security
interest on the related cooperative shares securing the related cooperative note and lease, subject only to (a) liens of the cooperative
for unpaid assessments representing the Mortgagor’s pro rata share of the cooperative’s payments for its blanket mortgage,
current and future real property taxes, insurance premiums, maintenance fees and other assessments to which like collateral is
commonly subject and (b) other matters to which like collateral is commonly subject which do not materially interfere with the
benefits of the security intended to be provided by the security interest. There are no liens against or security interests in
the cooperative shares relating to each Co-op Loan (except for unpaid maintenance, assessments and other amounts owed to the related
cooperative which individually or in the aggregate will not have a material adverse effect on such Co-op Loan), which have priority
equal to or over Seller’s security interest in such Co-op Shares.

 

(xx)Co-op Loan:
Compliance with Law. With respect to each Co-op Loan, the related cooperative corporation that owns title to the related cooperative
apartment building is a “cooperative housing corporation” within the meaning of Section 216 of the Internal Revenue
Code, and is in material compliance with applicable federal, state and local laws which, if not complied with, could have a material
adverse effect on the Mortgaged Property.

 

(yy)Co-op Loan:
No Pledge. With respect to each Co-op Loan, there is no prohibition against pledging the shares of the cooperative corporation
or assigning the Proprietary Lease. With respect to each Co-op Loan, (i) the term of the related Proprietary Lease is longer than
the term of the Co-op Loan, (ii) there is no provision in any Proprietary Lease which requires the Mortgagor to offer for sale
the Co-op Shares owned by such Mortgagor first to the Co-op Corporation, (iii) there is no prohibition in any Proprietary Lease
against pledging the Co-op Shares or assigning the Proprietary Lease and (iv) the Recognition Agreement is on a form of agreement
published by Aztech Document Systems, Inc. as of the date hereof or includes provisions which are no less favorable to the lender
than those contained in such agreement.

 

(zz)Co-op Loan:
Acceleration of Payment. With respect to each Co-op Loan, each Assignment of Proprietary Lease contains enforceable provisions
such as to render the rights and remedies of the holder thereof adequate for the realization of the material benefits of the security
provided thereby. The Assignment of Proprietary Lease contains an enforceable provision for the acceleration of the payment of
the unpaid principal balance of the Mortgage Note in the event the Co-op Unit is transferred or sold without the consent of the
holder thereof.

 

(aaa)Qualified
Mortgage. Notwithstanding anything to the contrary set forth in this Agreement, on and after January 10, 2014 (or such later
date as set forth in the relevant regulations), (i) prior to the origination of each Mortgage Loan, the originator made a reasonable
and good faith determination that the Mortgagor had a reasonable ability to repay the loan according to its terms, in accordance
with, at a minimum, the eight underwriting factors set forth in 12 CFR 1026.43(c) and (ii) each Mortgage Loan is a “Qualified
Mortgage” as defined in 12 CFR 1026.43(e); provided that a modification subsequent to the date listed above shall
not be considered an “origination” of a Mortgage Loan or a “covered transaction” as long as no new Mortgage
Note is executed and delivered and the interest rate of the related Mortgage Loan is not increased.

 

    	 	Schedule 1- 11 	 

     

    

 

(bbb)Aging.
Such Mortgage Loan has not been subject to a Transaction hereunder for more than the applicable Aging Limit.

 

(ccc)TRID Compliance.
With respect to each Mortgage Loan where the Mortgagor’s loan application for the Mortgage Loan was taken on or after October
3, 2015, such Mortgage Loan was originated in compliance with the TILA-RESPA Integrated Disclosure Rule.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	Schedule 1- 12 	 

     

    

SCHEDULE 2

 

 

AUTHORIZED REPRESENTATIVES

 

 

SELLER AUTHORIZATIONS

 

Any of the persons whose signatures and
titles appear below are authorized, acting singly, to act for Seller under this Agreement:

 

Authorized Representatives for execution
of Program Agreements and amendments

 

	Name	 	Title	 	Signature

 

 

 

 

 

 

 

 

 

 

Authorized Representatives for execution
of Transaction Requests and day-to-day operational functions

 

	Name	 	Title	 	Signature

 

 

 

 

 

 

 

    	 	Schedule 2-1	 

     

    

BUYER NOTICES

 

	Name: Margaret Dellafera	 	Address:	Credit Suisse First Boston Mortgage Capital LLC
	Telephone: 212-325-6471	 	 	 
	Facsimile: 212-743-4810	 	 	11 Madison Avenue
	 	 	 	 
	 	 	 	New York, NY  10010

 

BUYER AUTHORIZATIONS

 

Any of the persons whose signatures and
titles appear below, including any other authorized officers, are authorized, acting singly, to act for Buyer under this Agreement:

 

 

	
        Name

         
	
        Title

         
	
        Signature

         

	Adam Loskove	Vice President	 
	Margaret Dellafera	Vice President	 
	Elie Chau	Vice President	 
	Patrick Gallagher	Vice President	 
	Deirdre Harrington	Vice President	 
	Robert Durden	Vice President	 
	Ron Tarantino	Vice President	 
	Michael Marra	Vice President	 

 

 

 

 

    	 	Schedule 2-2	 

     

    

SCHEDULE 3

 

RESPONSIBLE OFFICERS OF SELLER

 

 

 

	Name	Title
	Vandad Fartaj	Senior Managing Director and

 Chief Capital Markets Officer
	Anne D. McCallion	Senior Managing Director and

 Chief Financial Officer
	Jeffrey P. Grogin	Senior Managing Director and Chief Administrative and Legal Officer

 and Assistant Secretary
	Pamela Marsh	Managing Director, Treasurer
	Derek W. Stark	Managing Director, General Counsel

 and Secretary

 

 

 

 

RESPONSIBLE OFFICERS OF GUARANTOR

 

 

 

	Name	Title
	Vandad Fartaj	Senior Managing Director and

 Chief Capital Markets Officer
	Anne D. McCallion	Senior Managing Director and

 Chief Financial Officer
	Jeffrey P. Grogin	Senior Managing Director and Chief Administrative and Legal Officer

 and Assistant Secretary
	Pamela Marsh	Managing Director, Treasurer
	Derek W. Stark	Managing Director, General Counsel

 and Secretary

 

    	 	Schedule 3-1	 

     

    

EXHIBIT A

 

FORM OF TRANSACTION REQUEST

 

[Date]

 

 

 

		Re:	Second Amended and Restated Master Repurchase Agreement dated as of March 31, 2016 (as amended
from time to time, the “Master Repurchase Agreement”) by and among PennyMac Loan Services, LLC, Private National
Mortgage Acceptance Company, LLC and Credit Suisse First Boston Mortgage Capital LLC.

 

PennyMac Loan Services, LLC hereby requests
that Credit Suisse First Boston Mortgage Capital LLC (“CSFBMCL”) enter into a Transaction with respect to the
Mortgage Loans listed on the Custodial Mortgage Loan Schedule attached hereto on Attachment 1 and as set forth below, pursuant
to the Master Repurchase Agreement.

 

	TOTAL NUMBER OF MORTGAGE LOANS	___ Mortgage Loans – (See Custodial Mortgage Loan Schedule)
	ORIGINAL PRINCIPAL AMOUNT OF MORTGAGE LOANS:	$
	CURRENT PRINCIPAL AMOUNT OF MORTGAGE LOANS:	$
	PROPOSED PURCHASE PRICE:	$
	PURCHASE PRICE INCREASE:	$
	AGGREGATE PURCHASE PRICE:	$
	PROPOSED PURCHASE DATE:	 

 

The Master Repurchase Agreement is incorporated
by reference into this Transaction Request and is made a part hereof as if it were fully set forth herein. (All capitalized terms
used herein but not defined herein shall have the meanings specified in the Master Repurchase Agreement.)

 

    	 	Exhibit A-1	 

     

    

 

PennyMac Loan Services, LLC

 

By:_______________________________________

Name:

Title:

[wire instructions]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	Exhibit A-2	 

     

    

EXHIBIT B

 

FORM OF PURCHASE CONFIRMATION

 

[Date]

 

PennyMac Loan Services, LLC

3043 Townsgate Road

Westlake Village, CA 91361

Attention: [__________________]

 

Credit Suisse First Boston Mortgage Capital
LLC (“CSFBMCL”) is pleased to confirm your sale and our purchase of the Mortgage Loans described below and on
the attached Custodial Mortgage Loan Schedule pursuant to the Second Amended and Restated Master Repurchase Agreement dated as
of March 31, 2016 (as amended from time to time, the “Master Repurchase Agreement”) by and among PennyMac Loan
Services, LLC, Private National Mortgage Acceptance Company, LLC and Credit Suisse First Boston Mortgage Capital LLC under the
following terms and conditions:

 

	Market Value:	$
	Current Principal Amount of Mortgage Loans:	$
	Aggregate Purchase Price:	$
	Purchase Date:	 
	Repurchase Date:	 
	Pricing Rate:	 
	ADDITIONAL INFORMATION:	 
	Aggregate Purchase Price (date):	$
	Less Previous Aggregate Purchase Price:	$
	Less Price Differential due on (date):	$
	Net funds due [CSFB]/[Name] on (date):	$

 

The Master Repurchase Agreement is incorporated
by reference into this Transaction Confirmation, is made a part hereof as if it were fully set forth herein and is extended hereby
until all amounts due in connection with this Transaction are paid in full.

 

    	 	Exhibit B-1	 

     

    

 

All capitalized terms used herein but not
defined herein shall have the meanings specified in the Master Repurchase Agreement.

 

	 	 CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL
LLC

 

By:____________________________________

Name:

Title:

 

 

PENNYMAC LOAN SERVICES, LLC

 

By:____________________________________

Name:

Title:

 

 

 

 

 

 

 

 

 

 

 

    	 	Exhibit B-2	 

     

    

EXHIBIT C

 

MORTGAGE LOAN SCHEDULE

MORTGAGE LOAN CHARACTERISTICS

 

 

 

1.Customer Name

2.Collateral Number

3.Primary Borrower Last Name

4.Primary Borrower First Name

5.Co-Borrower Last Name *

6.Co-Borrower First Name *

7.Property Address

8.City

9.State

10.Zip Code

11.County

12.SS Number

13.SS # Co-borrower *

14.Product Type/Code

15.Loan Amount

16.Original monthly principal and interest

17.Original interest rate

18.Original date of Mortgage Note

19.Closing Date

20.First Payment Date

21.Maturity Date

22.Loan Type (adjustable, fixed, etc)

23.Purchase Date

24.Funding Method Code (wire disbursement, etc.)

25.Closing Agent

26.Address

27.City

28.State

29.Zip Code

30.Account Number

31.ABA Number

32.Closing Schedule

33.Instructions

34.Name of Bank

35.Address of Bank

36.City of Bank

37.State of Bank

38.Zip of Bank

39.Other Account Bank *

40.Further Instructions *

 

 

    	 	Exhibit C-1	 

     

    

 

41.Investor *

42.Investor Commitment Number *

43.Price *

44.Commitment Date *

45.Commitment Expiration Date *

46.Property Type

47.Lien Position

48.LTV

49.CLTV

50.FICO

51.Amortization Term

52.Purpose

53.No. of Units

54.Original Appraised Value

55.Name of appraiser

56.Certificate Number for each loan with primary mortgage
insurance*

57.Margin*

58.Life floor*

59.Index type*

60.Initial rate floor*

61.Periodic rate cap*

62.Life cap*

63.First interest rate adjustment date*

 

 

 

* If applicable.

 

    	 	Exhibit C-2	 

     

    

EXHIBIT D

 

 

 

RESERVED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	Exhibit D-1	 

     

    

 

 

EXHIBIT E

 

POWER OF ATTORNEY

 

 

 

Re: Second Amended
and Restated Master Repurchase Agreement, dated as of March 31, 2016 (as amended from time to time, the “Agreement”)
among PennyMac Loan Services, LLC (the “Seller”), Private National Mortgage Acceptance Company, LLC (the “Guarantor”)
and Credit Suisse First Boston Mortgage Capital LLC (the “Buyer”).

 

 

KNOW ALL MEN BY THESE
PRESENTS, that Seller hereby irrevocably constitutes and appoints Buyer and any officer or agent thereof, with full power of substitution,
as its true and lawful attorney-in-fact with full irrevocable power and authority in the place and stead of Seller and in the name
of Seller or in its own name, from time to time in Buyer’s discretion:

 

(a)in the name of
Seller, or in its own name, or otherwise, to take possession of and endorse and collect any checks, drafts, notes, acceptances
or other instruments for the payment of moneys due with respect to any assets purchased by Buyer under the Agreement (the “Assets”)
and to file any claim or to take any other action or proceeding in any court of law or equity or otherwise deemed appropriate by
Buyer for the purpose of collecting any and all such moneys due with respect to any other assets whenever payable;

 

(b)to pay or discharge
taxes and liens levied or placed on or threatened against the Assets;

 

(c)       (i) to direct
any party liable for any payment under any Assets to make payment of any and all moneys due or to become due thereunder directly
to Buyer or as Buyer shall direct; (ii) to ask or demand for, collect, receive payment of and receipt for, any and all moneys,
claims and other amounts due or to become due at any time in respect of or arising out of any Assets; (iii) to sign and endorse
any invoices, assignments, verifications, notices and other documents in connection with any Assets; (iv) to commence and
prosecute any suits, actions or proceedings at law or in equity in any court of competent jurisdiction to collect the Assets or
any proceeds thereof and to enforce any other right in respect of any Assets; (v) to defend any suit, action or proceeding
brought against Seller with respect to any Assets; (vi) to settle, compromise or adjust any suit, action or proceeding described
in clause (vii) above and, in connection therewith, to give such discharges or releases as Buyer may deem appropriate; and
(viii) generally, to sell, transfer, pledge and make any agreement with respect to or otherwise deal with any Assets as fully
and completely as though Buyer were the absolute owner thereof for all purposes, and to do, at Buyer’s option and Seller’s
expense, at any time, and from time to time, all acts and things which Buyer deems necessary to protect, preserve or realize upon
the Assets and Buyer’s Liens thereon and to effect the intent of this Agreement, all as fully and effectively as Seller might
do;

 

    	 	Exhibit E-1	 

     

    

 

(d)for the purpose
carrying out the transfer of servicing with respect to the Mortgage Loans from Seller to a successor servicer appointed by Buyer
in its sole discretion and to take any and all appropriate action and to execute any and all documents and instruments which may
be necessary or desirable to accomplish such transfer of servicing, and, without limiting the generality of the foregoing, Seller
hereby gives Buyer the power and right, on behalf of Seller, without assent by Seller, to, in the name of Seller or its own name,
or otherwise, prepare and send or cause to be sent “good-bye” letters and Section 404 Notices to all mortgagors under
the Mortgage Loans, transferring the servicing of the Mortgage Loans to a successor servicer appointed by Buyer in its sole discretion.

 

(e)for the purpose
of delivering any notices of sale to mortgagors or other third parties, including without limitation, those required by law.

 

Seller hereby ratifies
all that said attorneys shall lawfully do or cause to be done by virtue hereof. This power of attorney is a power coupled with
an interest and shall be irrevocable.

 

Seller also authorizes
Buyer, from time to time, to execute, in connection with any sale, any endorsements, assignments or other instruments of conveyance
or transfer with respect to the Assets.

 

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

 

TO INDUCE ANY THIRD PARTY
TO ACT HEREUNDER, SELLER HEREBY AGREES THAT ANY THIRD PARTY RECEIVING A DULY EXECUTED COPY OR FACSIMILE OF THIS INSTRUMENT MAY
ACT HEREUNDER, AND THAT REVOCATION OR TERMINATION HEREOF SHALL BE INEFFECTIVE AS TO SUCH THIRD PARTY UNLESS AND UNTIL ACTUAL NOTICE
OR KNOWLEDGE OF SUCH REVOCATION OR TERMINATION SHALL HAVE BEEN RECEIVED BY SUCH THIRD PARTY, AND BUYER ON ITS OWN BEHALF AND ON
BEHALF OF BUYER’S ASSIGNS, HEREBY AGREES TO INDEMNIFY AND HOLD HARMLESS ANY SUCH THIRD PARTY FROM AND AGAINST ANY AND ALL
CLAIMS THAT MAY ARISE AGAINST SUCH THIRD PARTY BY REASON OF SUCH THIRD PARTY HAVING RELIED ON THE PROVISIONS OF THIS INSTRUMENT.

 

[REMAINDER OF PAGE INTENTIONALLY
BLANK. SIGNATURES FOLLOW.]

 

    	 	Exhibit E-2	 

     

    

IN WITNESS WHEREOF Seller
has caused this Power of Attorney to be executed and Seller’s seal to be affixed this _____ day of __________, 201__.

 

 

 

 

	 	 PENNYMAC LOAN SERVICES,
LLC

 

By: _______________________________

       Name:

       Title:

 

 

 

 

    	 	Exhibit E-3	 

     

    

 

	STATE OF [                     ]	)	 
	 	)	ss.:
	COUNTY OF [              ]	)	 

 

On the ____________ day
of [ ], 201[ ] before me, a Notary Public in and for said State, personally appeared           ,
known to me to be [__________________________________________________] of Seller, the institution that executed the within instrument
and also known to me to be the person who executed it on behalf of said corporation, and acknowledged to me that such corporation
executed the within instrument.

 

IN WITNESS WHEREOF, I
have hereunto set my hand affixed my office seal the day and year in this certificate first above written.

 

_____________________________

Notary Public

 

My Commission expires
                                                    

 

 

 

 

 

    	 	Exhibit E-4	 

     

    

EXHIBIT F

 

UNDERWRITING GUIDELINES

 

 

 

On file with Buyer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	Exhibit F-1	 

     

    

EXHIBIT G

 

Certificate of an Officer of Seller or
Guarantor

 

The undersigned,
____________ of [PennyMac Loan Services, LLC][Private National Mortgage Acceptance Company, LLC], a Delaware limited liability
company ([“Seller”][“Guarantor”]), hereby certifies as follows:

 

1.Attached hereto
as Exhibit A is a copy of the Certificate of Formation of [Seller][Guarantor], as certified by the Secretary of State of
the State of Delaware.

 

2.Neither any amendment
to the Certificate of Formation of [Seller][Guarantor] nor any other organizational document with respect to [Seller][Guarantor]
has been filed, recorded or executed since _______ __, 200__, and no authorization for the filing, recording or execution of any
such amendment or other organizational document is outstanding.

 

3.Attached hereto
as Exhibit B is a true, correct and complete copy of the limited liability company operating agreement of [Seller][Guarantor]
as in effect as of the date hereof and at all times since ________, 200__.

 

4.Attached hereto
as Exhibit C is a true, correct and complete copy of resolutions adopted by the Board of Directors of [Seller][Guarantor]
by unanimous written consent on ___________________ (the “Resolutions”). The Resolutions have not been further
amended, modified or rescinded and are in full force and effect in the form adopted, and they are the only resolutions adopted
by the Board of Directors of [Seller][Guarantor] or by any committee of or designated by such Board of Directors relating to the
execution and delivery of, and performance of the transactions contemplated by the Second Amended and Restated Master Repurchase
Agreement dated as of March 31, 2016 (the “Repurchase Agreement”), among PennyMac Loan Services, LLC (the “Seller”),
Private National Mortgage Acceptance Company, LLC (“Guarantor”) and Credit Suisse First Boston Mortgage Capital
LLC ( “Buyer”) and the Amended and Restated Pricing Side Letter dated as of March 31, 2016, among Seller, Buyer
and Guarantor.

 

5.The Repurchase
Agreement and the Pricing Side Letter are substantially in the form approved by the Resolutions or pursuant to authority duly granted
by the Resolutions.

 

6.The undersigned,
as officers of [Seller][Guarantor] or as attorney-in-fact, are authorized to and have signed manually the Repurchase Agreement,
Pricing Side Letter or any other document delivered in connection with the transactions contemplated thereby, were duly elected
or appointed, were qualified and acting as such officer or attorney-in-fact at the respective times of the signing and delivery
thereof, and were duly authorized to sign such document on behalf of [Seller][Guarantor], and the signature of each such person
appearing on any such document is the genuine signature of each such person.

 

	Name	Title	Signature
	 	 	 

 

 

 

    	 	Exhibit G-1	 

     

    

 

 

IN WITNESS WHEREOF, the
undersigned has hereunto executed this Certificate as of the _____ day of __________________, 201__.

 

By: ___________________________________

Name:

Title:

 

    	 	Exhibit G-2	 

     

    

 

 

Exhibit C to Officer’s Certificate
of the [Seller][Guarantor]

 

RESOLUTIONS OF [SELLER][GUARANTOR]

 

Action of the Board of Directors

Without a Meeting Pursuant to

Section 18-404(d) of Delaware Limited Liability Company Act

 

The undersigned, being
the directors of [PennyMac Loan Services, LLC][Private National Mortgage Acceptance Company, LLC], a Delaware limited liability
company (the [“Seller”][“Guarantor”]), do hereby consent to the taking of the following action
without a meeting and do hereby adopt the following resolutions by written consent pursuant to Section 18-404(d) of Limited Liability
Company Act of the State of Delaware:

 

[WHEREAS, it is in the
best interests of Seller to transfer from time to time to Buyer Mortgage Loans against the transfer of funds by Buyer, with a simultaneous
agreement by Buyer to transfer to Seller such Mortgage Loans at a date certain or on demand, against the transfer of funds by Seller
pursuant to the terms of the Repurchase Agreement (as defined below).]

 

[WHEREAS, it is in the
best interests of Guarantor to guarantee the obligations of Seller under the Repurchase Agreement (as defined below).]

 

NOW, THEREFORE, be it

 

[RESOLVED, that the execution,
delivery and performance by Seller of the Amended and Restated Master Repurchase Agreement (the “Repurchase Agreement”)
to be entered into by Seller and Credit Suisse First Boston Mortgage Capital LLC, as Buyer, substantially in the form of the draft
dated ______________, attached hereto as Exhibit A, are hereby authorized and approved and that the [President] or any [Vice
President] (collectively, the “Authorized Officers”) of Seller be and each of them hereby is authorized and
directed to execute and deliver the Repurchase Agreement to Buyer with such changes as the officer executing the same shall approve,
his execution and delivery thereof to be conclusive evidence of such approval;]

 

[RESOLVED, that the execution,
delivery and performance by Seller of the Pricing Side Letter (the “Pricing Side Letter”) to be entered into
by Seller, Buyer and Guarantor substantially in the form of the draft dated _________________, attached hereto as Exhibit B,
are hereby authorized and approved and that the Authorized Officers of Seller be and each of them hereby is authorized and directed
to execute and deliver the Pricing Side Letter to Buyer with such changes as the officer executing the same shall approve, his
execution and delivery thereof to be conclusive evidence of such approval;]

 

    	 	Exhibit G-3	 

     

    

 

RESOLVED, that the Authorized
Officers hereby are, and each hereby is, authorized to execute and deliver all such aforementioned agreements on behalf of the
[Seller][Guarantor] and to do or cause to be done, in the name and on behalf of the [Seller][Guarantor], any and all such acts
and things, and to execute, deliver and file in the name and on behalf of the [Seller][Guarantor], any and all such agreements,
applications, certificates, instructions, receipts and other documents and instruments, as such Authorized Officer may deem necessary,
advisable or appropriate in order to carry out the purposes of the foregoing resolutions.

 

RESOLVED, that the proper
officers, agents and counsel of the [Seller][Guarantor] are, and each of such officers, agents and counsel is, hereby authorized
for and in the name and on behalf of the [Seller][Guarantor] to take all such further actions and to execute and deliver all such
other agreements, instruments and documents, and to make all governmental filings, in the name and on behalf of the [Seller][Guarantor]
and such officers are authorized to pay such fees, taxes and expenses, as advisable in order to fully carry out the intent and
accomplish the purposes of the resolutions heretofore adopted hereby.

 

Dated as of:___________ ___, 200_

 

 

 

 

 

    	 	Exhibit G-4	 

     

    

EXHIBIT H

 

SELLER’S AND GUARANTOR’S
TAX IDENTIFICATION NUMBERS

 

 

 

	Entity Name	Tax Identification Number
	PennyMac Loan Services, LLC	26-2049351
	Private National Mortgage Acceptance Company, LLC	26-1740587

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	Exhibit H-1	 

     

    

EXHIBIT I

 

EXISTING INDEBTEDNESS

 

 

 

AS OF MARCH 28, 2016

 

 

 

 

 

See attached.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	Exhibit I-1	 

     

    

EXHIBIT J

 

 

 

form
of ESCROW INSTRUCTION letter TO BE PROVIDED BY SELLER bEFORE CLOSING

 

 

The escrow instruction letter (the “Escrow Instruction
Letter”) shall also include the following instruction to the Settlement Agent (the “Escrow Agent”):

 

Credit Suisse First
Boston Mortgage Capital LLC (the “Buyer”), has agreed to provide funds (“Escrow Funds”) to
PennyMac Loan Services, LLC to finance certain mortgage loans (the “Mortgage Loans”) for which you are acting
as Escrow Agent.

 

You hereby agree that
(a) you shall receive such Escrow Funds from Buyer to be disbursed in connection with this Escrow Instruction Letter, (b) you will
hold such Escrow Funds in trust, without deduction, set-off or counterclaim for the sole and exclusive benefit of Buyer until such
Escrow Funds are fully disbursed on behalf of Buyer in accordance with the instructions set forth herein, and (c) you will disburse
such Escrow Funds on the date specified for closing (the “Closing Date”) only after you have followed the Escrow
Instruction Letter’s requirements with respect to the Mortgage Loans. In the event that the Escrow Funds cannot be disbursed
on the Closing Date in accordance with the Escrow Instruction Letter, you agree to promptly remit the Escrow Funds to Custodian
by re-routing via wire transfer the Escrow Funds in immediately available funds, without deduction, set-off or counterclaim, back
to the account specified in Buyer’s incoming wire transfer.

 

You further agree that,
upon disbursement of the Escrow Funds, you will hold all Mortgage Loan Documents specified in the Escrow Instruction Letter in
escrow as agent and bailee for Buyer, and will forward the Mortgage Loan Documents and original Escrow Instruction Letter in connection
with such Mortgage Loans by overnight courier (y) to Custodian within seven (7) Business Days following the date of origination.

 

You agree that all
fees, charges and expenses regarding your services to be performed pursuant to the Escrow Instruction Letter are to be paid by
Seller or its borrowers, and Buyer shall have no liability with respect thereto.

 

You represent, warrant and covenant
that you are not an affiliate of or otherwise controlled by Seller, and that you are acting as an independent contractor and not
as an agent of Seller.

 

The provisions of this
Escrow Instruction Letter may not be modified, amended or altered, except by written instrument, executed by the parties hereto
and Buyer. You understand that Buyer shall act in reliance upon the provisions set forth in this Escrow Instruction Letter, and
that Buyer is an intended third party beneficiary hereof.

 

Whether or not an Escrow
Instruction Letter executed by you is received by Custodian, your acceptance of the Escrow Funds shall be deemed to constitute
your acceptance of the Escrow Instruction Letter.

 

 

 

    	 	Exhibit J-1	 

     

    

Exhibit
K

 

 

 

CUSTODIAL
AND Securities Intermediary FEE SCHEDULE

 

 

 

 

 

On file with Buyer

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	Exhibit K-1	 

     

    

EXHIBIT L

 

 

 

FORM OF TRADE ASSIGNMENT

 

 

 

[NAME] (“Takeout Investor”)

[Address]

[Address]

Attention: [__]

 

[DATE]

 

Ladies and Gentlemen:

 

Attached hereto is
a correct and complete copy of your confirmation of commitment (the “Commitment”) for the following security
(the “Security”):

 

	Trade Date:  	[__]
	Settlement Date:  	[__]
	Security Description:	[__]
	Coupon:	[__]
	Price:	[__]
	Par Amount:	[__]
	Pool Number:	[__]

 

The undersigned customer
(the “Customer”) has assigned the Security to Credit Suisse First Boston Mortgage Capital LLC (“Credit
Suisse”) as security for Customer’s Obligations under the Master Repurchase Agreement, as amended (the “Agreement”),
by and between Customer and Credit Suisse.

 

This is to confirm
that (i) Takeout Investor’s obligation to purchase the Security on the above terms in accordance with the Commitment is
in full force and effect, (ii) Takeout Investor will accept delivery of the Security directly from Credit Suisse, (iii) Takeout
Investor will pay Credit Suisse for the Security, (iv) Customer unconditionally guarantees payment to Credit Suisse of all sums
due under the Commitment, (v) Credit Suisse shall deliver the Security to Takeout Investor on the above terms and in accordance
with the Commitment. Payment will be made “delivery versus payment” to Takeout Investor in immediately available funds.
Capitalized terms used, but not otherwise defined herein, shall have the respective meanings assigned to such terms in the Agreement.

 

	
        Very truly yours,

         

         

         

        [CUSTOMER]

         

         

         

        By: ____________________

Name:____________________

Title: ____________________

         
	
        Agreed to, confirmed and accepted:

         

         

         

        [TAKEOUT INVESTOR]

         

         

         

        By:____________________

Name: ____________________

Title:____________________

         

         

         

 

 

    	 	Exhibit L-1Exhibit 10.1

 

AMENDED AND RESTATED MASTER REPURCHASE AGREEMENT

 

 

CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL
LLC, as buyer,

 

 

PENNYMAC CORP., PENNYMAC HOLDINGS, LLC and
PENNYMAC OPERATING PARTNERSHIP, L.P., each a seller,

 

 

PMC REO FINANCING TRUST, as an asset subsidiary,
and

 

 

PENNYMAC MORTGAGE INVESTMENT TRUST and PENNYMAC
OPERATING PARTNERSHIP, L.P., each a guarantor

 

 

 

 

 

 

Dated March 31, 2016

 

 

 

    	 	 	 

     

    

TABLE OF CONTENTS

 

Page

 

 

	1.	Applicability	1
	2.	Definitions	2
	3.	Program; Initiation of Transactions	32
	4.	Repurchase	35
	5.	Price Differential	37
	6.	Margin Maintenance	38
	7.	Income Payments	39
	8.	Security Interest	40
	9.	Payment and Transfer	46
	10.	Conditions Precedent	46
	11.	Program; Costs	52
	12.	Servicing; Property Management	54
	13.	Representations and Warranties	56
	14.	Covenants	64
	15.	Events of Default	78
	16.	Remedies Upon Default	82
	17.	Reports	86
	18.	Repurchase Transactions	91
	19.	Single Agreement	91
	20.	Notices and Other Communications	91
	21.	Entire Agreement; Severability	93
	22.	Non assignability	93
	23.	Set-off	94

 

 

    	 	- i -	 

     

    

 

	24.	Binding Effect; Governing Law; Jurisdiction	94
	25.	No Waivers, Etc.	95
	26.	Intent	95
	27.	Disclosure Relating to Certain Federal Protections	96
	28.	Power of Attorney	97
	29.	Buyer May Act Through Affiliates and REO Subsidiary May Act Through Seller	97
	30.	Indemnification; Obligations	97
	31.	Counterparts	98
	32.	Confidentiality	99
	33.	Recording of Communications	100
	34.	Agency and Allocation Agreement.	100
	35.	Condition Subsequent	100
	36.	Periodic Due Diligence Review	100
	37.	Authorizations	101
	38.	Acknowledgement of Anti-Predatory Lending Policies	101
	39.	Documents Mutually Drafted	102
	40.	General Interpretive Principles	102
	41.	Joint and/or Several Liability of Sellers	102
	42.	Amendment and Restatement	103
	43.	Reaffirmation of Guaranty	103

 

 

    	 	- ii -	 

     

    

 

SCHEDULES

 

Schedule 1 - Representations
and Warranties

 

Part I: with Respect
to New Origination Mortgage Loans

 

Part II: with Respect
to Underlying Repurchase Transactions

 

Part III: with Respect
to Seasoned Mortgage Loans

 

Part IV: with Respect
to REO Property

 

Part V: with Respect
to REO Subsidiary Interests

 

Part VI: with Respect
to Rental Property

 

Schedule 2 – Authorized
Representatives

 

EXHIBITS

 

Exhibit A – Form
of Tenant Instruction Notice

 

Exhibit B – Form
of Property Manager Report

 

Exhibit C – Form
of Property Management Agreement Side Letter

 

Exhibit D – Form
of Power of Attorney

 

Exhibit E-1 – Form
of Servicer Power of Attorney

 

Exhibit E-2 – Form
of REO Subsidiary Power of Attorney

 

Exhibit F – Reserved.

 

Exhibit G – Seller
Parties’ and Guarantors’ Tax Identification Numbers

 

Exhibit H – Existing
Indebtedness

 

Exhibit I – Escrow
Instruction Letter

 

Exhibit J – Form
of Servicer Notice and Pledge

 

Exhibit K – Loan
Activity Report

 

Exhibit L – Form
of Trade Assignment

 

Exhibit M – State
Specific Foreclosure Aging Timeline

 

Exhibit
N – State Specific REO Disposition Timeline

 

Exhibit O – State
Specific REO Recording Timeline

 

 

 

    	 	- iii -	 

     

    

This is an AMENDED
AND RESTATED MASTER REPURCHASE AGREEMENT, dated as of March 31, 2016, by and among CREDIT SUISSE FIRST BOSTON MORTGAGE CAPITAL
LLC (the “Buyer”), PENNYMAC HOLDINGS, LLC (“PennyMac Holdings” and a “Seller”),
PENNYMAC CORP. (“PMC” and a “Seller”), PENNYMAC OPERATING PARTNERSHIP, L.P., in its capacity
as a seller (“POP” and a “Seller”, together with PennyMac Holdings and PMC, the “Sellers”),
PMC REO FINANCING TRUST (the “REO Subsidiary”) and PENNYMAC MORTGAGE INVESTMENT TRUST (“PMIT”)
and PENNYMAC OPERATING PARTNERSHIP, L.P., in their capacity as guarantors (each, a “Guarantor” and collectively,
the “Guarantors”).

 

The Buyer, the Guarantors
and PennyMac Holdings, as seller, previously entered into a Master Repurchase Agreement, dated as of March 29, 2012 (as amended,
supplemented and otherwise modified from time to time, the “Existing Internal Rewarehouse Master Repurchase Agreement”).

 

The Buyer, the Guarantors
and PMC, as seller, previously entered into an Amended and Restated Master Repurchase Agreement, dated as of June 1, 2013 (as amended,
supplemented and otherwise modified from time to time, the “Existing Regular Way Master Repurchase Agreement”).

 

The Buyer, PMIT, as
guarantor, PMC, as seller, and PennyMac Holdings, as seller, previously entered into an Amended and Restated Master Repurchase
Agreement, dated as of August 25, 2011 (as amended, supplemented and otherwise modified from time to time, the “Existing
NPL Master Repurchase Agreement” and, together with the Existing Internal Rewarehouse Master Repurchase Agreement and
the Existing Regular Way Master Repurchase Agreement, the “Existing Master Repurchase Agreements”).

 

The parties hereto
have requested that the Existing Master Repurchase Agreements be consolidated, amended and restated, in their entirety, on the
terms and subject to the conditions set forth herein.

 

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

 

1.Applicability

 

On a Purchase Date, the
Buyer purchased the Subsidiary Certificates (as defined herein) from the Sellers in connection with the Transaction on such date,
with a simultaneous agreement by Buyer to transfer to Sellers each Subsidiary Certificate at a date certain, against the transfer
of funds by Sellers, in an amount equal to the Repurchase Price for such Subsidiary Certificate. From time to time the parties
hereto may enter into Transactions in which the applicable Seller agrees to initiate the transfer of Mortgage Loans or Contributed
Assets, as applicable (as hereinafter defined) on a servicing released basis against the transfer of funds by Buyer in an amount
equal to the Purchase Price for the related Purchased Mortgage Loans or the Purchase Price Increase on account of the applicable
Subsidiary Certificate as the result of the increase in value with respect to the Contributed Asset transferred to the Asset Subsidiary,
with a simultaneous agreement by Buyer to sell the Purchased Mortgage Loans back to the Seller for the applicable Repurchase Price
or permit the release of Contributed Assets with respect thereto from the Asset Subsidiary, to or for the benefit of the applicable
Seller upon payment by such Seller of a portion of the Repurchase Price for the Subsidiary Certificate representing the Repurchase
Price in respect of such Contributed Asset, in all cases subject to the terms of this Agreement. Each such transaction involving
any acquisition or transfer of Subsidiary Interests, Mortgage Loans and/or Contributed Assets shall be referred to herein as a
“Transaction” and, unless otherwise agreed in writing, shall be governed by this Agreement, including any supplemental
terms or conditions contained in any annexes identified herein, as applicable hereunder. This Agreement is a commitment by Buyer
to engage in the Transactions (and requests for Purchase Price Increases, from time to time) as set forth herein up to the applicable
Maximum Committed Purchase Price; provided, that Buyer shall have no commitment to enter into any Transaction or agree to
any Purchase Price Increase requested that would result in the aggregate Purchase Price of then-outstanding Transactions to exceed
the applicable Maximum Committed Purchase Price, and in no event shall the aggregate Purchase Price of outstanding Transactions
exceed the Maximum Purchase Price at any time.

 

    	 	- 1 -	 

     

    

 

Pursuant to the Underlying
Master Repurchase Agreement (as defined herein), POP has acquired and will own 100% of the Capital Stock in the REO Subsidiary.

 

On or prior to the Effective
Date, PMC and POP each pledged their rights to the REO Subsidiary Interests to Buyer.

 

2.Definitions

 

Whenever used in this
Agreement, the following words and phrases, unless the context otherwise requires, shall have the following meanings:

 

“1934 Act”
means the Securities Exchange Act of 1934, as amended from time to time.

 

“Acceptable
State” means any state acceptable pursuant to the Underwriting Guidelines.

 

“Acceptable
Underlying Repurchase Transaction” means an Underlying Repurchase Transaction with an Underlying Repurchase Counterparty
in which all right, title and interest in each underlying Mortgage Loan or REO Subsidiary Interest sold to a Seller pursuant to
such Underlying Repurchase Transaction is documented by Underlying Repurchase Documents that contain the following characteristics:

 

i.The Underlying
Repurchase Agreement contains broad repledge, assignment and rehypothecation provisions in favor of each Seller permitting such
Seller to sell, transfer and assign to Buyer hereunder, without restriction or rights to consent by the Underlying Repurchase Counterparty
or any other Person, all of such Seller’s right, title and interest in Mortgage Loans or REO Subsidiary Interests purchased
by such Seller pursuant to such Underlying Repurchase Agreement;

 

    	 	- 2 -	 

     

    

ii.The Underlying
Repurchase Agreement contains a back-up grant of security interest in each related Mortgage Loan or REO Subsidiary Interest to
each Seller, similar in form and substance to the security interest granted to Buyer in Section 8 hereof, and the Underlying
Repurchase Agreement or an ancillary document thereto provides for a provision or instruction that, (i) unless such Mortgage
Loan is a Wet-Ink Mortgage Loan, the Asset File in respect of such Mortgage Loan be delivered by the Underlying Repurchase Counterparty
directly to Buyer or Buyer’s designee and (ii) if such Mortgage Loan is a Wet-Ink Mortgage Loan, the Settlement Agent
has been instructed to hold the Asset File for the benefit of Buyer or Buyer’s designee and has agreed to deliver the related
Asset File directly to Buyer or Buyer’s designee;

 

iii.The Underlying
Repurchase Agreement contains a broad grant of a power of attorney to each Seller and each Seller’s attorneys-in-fact, including
Buyer;

 

iv.The Underlying
Repurchase Agreement grants to each Seller and Buyer the right to immediately terminate the Underlying Repurchase Counterparty’s
right or any third party servicer’s right to service or manage, as applicable, Mortgage Loans and Contributed Assets;

 

v.The Underlying
Repurchase Agreement requires that each Servicer or Property Manager, as applicable, has adequate financial standing, servicing
facilities, procedures and experienced personnel necessary for the sound servicing or managing, as applicable, of mortgage loans
and real property of the same types as may from time to time constitute Mortgage Loans and Contributed Assets and in accordance
with Accepted Servicing Practices or Accepted Property Management Practices, as applicable;

 

vi.The Underlying
Electronic Tracking Agreement or other Underlying Repurchase Documents provides that the Underlying Repurchase Counterparty (i)
gives Buyer the authority to change fields in the MERS System as appropriate, including, without limitation, changing the “interim
funder” field to insert parties with which a Seller enters into financing arrangements including repurchase agreements with
respect to such Mortgage Loans and (ii) authorizes a Seller to enter into an electronic tracking agreement with MERS and third
party lender in connection with MERS taking instructions from an interim funder under certain circumstances;

 

vii.Unless expressly
agreed to in writing by Buyer, during the duration of the related Transaction, no third-party custodian shall hold any Asset Documents
pursuant to an agreement to which Underlying Repurchase Counterparty is a party, or beneficiary;

 

viii.The Underlying
Repurchase Documents have not been assigned by any Seller and no Seller has granted a security interest in, the Underlying Repurchase
Documents to any third party;

 

 

    	 	- 3 -	 

     

    

 

ix.A financing
statement on Form UCC-1 has been filed in the applicable filing office naming the Underlying Repurchase Counterparty as debtor
and each Seller as secured party with a collateral description reasonably acceptable to Buyer, which shall be similar in form and
substance to the Repurchased Assets in which a security interest is granted pursuant to Section 8 hereof; and

 

x.All of the representations
and warranties set forth on Schedule 1, Part II are true and correct in all material respects.

 

Buyer acknowledges that the transactions
contemplated by the Underlying Repurchase Agreement qualify as Acceptable Underlying Repurchase Transactions, provided that any
amendment to such Underlying Repurchase Agreement shall not be deemed to qualify as an Acceptable Underlying Repurchase Transaction
unless consented to in writing by Buyer.

 

“Accepted Property
Management Practices” means, with respect to any Rental Property, those property management, rental or sales practices
of prudent institutions that (i) manage single family and 2-4 family residential homes for rent and sale of the same type as such
Rental Property in the jurisdiction where the related Rental Property is located, (ii) employ procedures intended to produce the
highest net present value on the Rental Properties for the REO Subsidiary and Buyer, and (iii) exercise the same care that it customarily
employs and exercises in managing similar properties for its own account giving due consideration to clauses (i) and (ii) of this
definition and Requirements of Law.

 

“Accepted Servicing
Practices” means, with respect to any Purchased Mortgage Loan or REO Property, those mortgage servicing practices or
property management practices, as applicable, of prudent mortgage lending institutions which service mortgage loans and manage
real estate properties, as applicable, of the same type as such Purchased Mortgage Loan or REO Property, as applicable, in the
jurisdiction where the related Mortgaged Property or REO Property is located.

 

“Accrual Period”
means with respect to any Payment Date, the period from and including the last Payment Date to but excluding the next Payment Date.
Buyer shall provide notice to Sellers of interest accrued during the applicable Accrual Period one Business Day prior to the applicable
Payment Date.

 

“Acquisition
Guidelines” means the standards, procedures and guidelines of Sellers for acquiring Mortgage Loans and Contributed Assets,
as applicable, in general conformance with such Seller’s due diligence protocols for the purchase of Mortgage Loans or Contributed
Assets, as applicable, as previously provided to Buyer.

 

“Act of Insolvency”
means, with respect to any Person or its Affiliates, (a) the filing of a petition, commencing, or authorizing the commencement
of any case or proceeding, or the voluntary joining of any case or proceeding under any bankruptcy, insolvency, reorganization,
liquidation, dissolution or similar law relating to the protection of creditors, or suffering any such petition or proceeding to
be commenced by another which is consented to, not timely contested or results in entry of an order for relief; (b) the seeking
of the appointment of a receiver, trustee, custodian or similar official for such party or an Affiliate or any substantial part
of the property of either; (c) the appointment of a receiver, conservator, or manager for such party or an Affiliate by any governmental
agency or authority having the jurisdiction to do so; (d) the making or offering by such party or an Affiliate of a composition
with its creditors or a general assignment for the benefit of creditors; (e) the admission by such party or an Affiliate of such
party of its inability to pay its debts or discharge its obligations as they become due or mature; or (f) that any governmental
authority or agency or any person, agency or entity acting or purporting to act under governmental authority shall have taken any
action to condemn, seize or appropriate, or to assume custody or control of, all or any substantial part of the property of such
party or of any of its Affiliates, or shall have taken any action to displace the management of such party or of any of its Affiliates
or to curtail its authority in the conduct of the business of such party or of any of its Affiliates.

 

    	 	- 4 -	 

     

    

 

“Adjusted Tangible
Net Worth” has the meaning set forth in the Pricing Side Letter.

 

“Affiliate”
means, with respect to any Person, any “affiliate” of such Person, as such term is defined in the Bankruptcy Code;
provided, however, that any entity that is otherwise not directly or indirectly owned or controlled by any Seller or any Guarantor
shall not be deemed an “Affiliate” for the purposes of this definition. For the avoidance of doubt, the term “Affiliate”
as used herein shall include only PennyMac Mortgage Investment Trust and its Subsidiaries.

 

“Aged Loan”
means a Mortgage Loan (other than a Non-Agency QM Mortgage Loan, New Origination Performing Mortgage Loan, a Seasoned Mortgage
Loan and a Pooled Mortgage Loan) which has been subject to one or more Transactions hereunder for a period of greater than 60 days
but not greater than 90 days.

 

“Aged New Origination
Performing Loan” means a New Origination Performing Mortgage Loan which has been subject to one or more Transactions
hereunder for a period of greater than 90 days but not greater than 180 days.

 

“Agency”
means Freddie Mac, Fannie Mae or GNMA, as applicable.

 

“Agency Approvals”
has the meaning set forth in Section 14.w hereof.

 

“Agency Mortgage
Loan” means a Conforming Mortgage Loan, a FHA Loan (including a FHA 203(k) Loan), a Streamlined Mortgage Loan, a USDA
Loan and a VA Loan.

 

“Agency Security”
means a mortgage-backed security issued by an Agency.

 

“Aging Limit”
has the meaning set forth in the Pricing Side Letter.

 

“Agreement”
means this Amended and Restated Master Repurchase Agreement, as it may be amended, supplemented or otherwise modified from time
to time.

 

“Allocated Repurchase
Price” means the price at which Purchased Mortgage Loans or Contributed Assets supporting a portion of the Purchase Price
or a Purchase Price Increase are to be released from the REO Subsidiary or from the Buyer, as applicable, upon the Optional Partial
Prepayment Date, which price will be equal to the sum of (a) such portion of the Purchase Price or the Purchase Price Increase,
as applicable, and (b) accrued unpaid Price Differential related to such Purchased Mortgage Loan or Contributed Asset, as applicable,
as of the date of such determination.

 

    	 	- 5 -	 

     

    

 

“ALTA”
means the American Land Title Association.

 

“Ancillary Income”
means all income derived from the Purchased Mortgage Loans are to be repurchased or Contributed Assets (other than payments or
other collections in respect of principal, interest and escrow payments attributable to the Purchased Mortgage Loans or Contributed
Assets), as applicable, attributable to such Purchased Mortgage Loan or Contributed Asset, including, but not limited to, late
charges, all interest received on funds deposited in the Collection Account or REO Subsidiary Account, as applicable, reconveyance
fees, subordination fees, speedpay fees, mortgage pay on the web fees, automatic clearing house fees, demand statement fees, modification
fees, if any, fees received with respect to checks on bank drafts returned by the related bank for insufficient funds, assumption
fees and other similar types of fees arising from or in connection with any Purchased Mortgage Loan or Contributed Asset to the
extent not otherwise payable to the Mortgagor or other Person under applicable law or pursuant to the terms of the related Mortgage
Note or Lease Agreement.

 

“Appraised Value”
means the value set forth in an appraisal made in connection with the origination of the related Mortgage Loan as the value of
the Mortgaged Property.

 

“Asset Documents”
means the documents in the related Asset File to be delivered to the Custodian.

 

“Asset File”
means, with respect to each Purchased Mortgage Loan or Contributed Asset, the documents and instruments relating to such Purchased
Mortgage Loan or Contributed Asset, as applicable, and set forth in an exhibit to the Custodial Agreement, which, with respect
to any Rental Property, shall include the related SFR Property Documents.

 

“Asset Schedule”
means, with respect to any Transaction as of any date, an Asset Schedule in the form prescribed by the Custodial Agreement.

 

“Asset Value”
has the meaning assigned to such term in the Pricing Side Letter.

 

“Assignment
of Mortgage” means an assignment of the Mortgage, notice of transfer or equivalent instrument in recordable form, sufficient
under the laws of the jurisdiction wherein the related Mortgaged Property is located to reflect the transfer of the Mortgage.

 

“Assignment
of Proprietary Lease” means the specific agreement creating a first lien on and pledge of the Co-op Shares and the appurtenant
Proprietary Lease securing a Co-op Loan.

 

“Attorney Bailee
Letter” means a bailee letter substantially in the form prescribed by the Custodial Agreement or otherwise approved in
writing by Buyer.

 

    	 	- 6 -	 

     

    

 

“Bailee Letter”
has the meaning assigned to such term in the Custodial Agreement.

 

“Bank”
means City National Bank and any successor or assign.

 

“Bankruptcy
Code” means the United States Bankruptcy Code of 1978, as amended from time to time.

 

“Base Rate”
has the meaning assigned to such term in the Pricing Side Letter.

 

“BPO”
means an opinion of the fair market value of a Mortgaged Property, Rental Property or other REO Property given by a licensed real
estate agent or broker in conformity with customary and usual business practices, which includes comparable sales and comparable
listings and complies with the criteria set forth in FIRREA for an “appraisal” or an “evaluation” as applicable;
provided, that no BPO shall be valid if it is dated earlier than (x) with respect to Mortgaged Property and Contributed
Assets, one hundred and eighty (180) days prior to the date of determination, and (y) with respect to Rental Property, three hundred
and sixty (360) days prior to the date of determination.

 

“Business Day”
means any day other than (A) a Saturday or Sunday and (B) a public or bank holiday in New York City.

 

“Buyer”
means Credit Suisse First Boston Mortgage Capital LLC, and any successor or assign hereunder.

 

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

 

“Capital Stock”
means, as to any Person, any and all shares, interests, participations or other equivalents (however designated) of capital stock
of a corporation, any and all equivalent equity ownership interests in a Person which is not a corporation, including, without
limitation, any and all member or other equivalent interests in any limited liability company, limited partnership, trust, and
any and all warrants or options to purchase any of the foregoing, in each case, designated as “securities” (as defined
in Section 8-102 of the Uniform Commercial Code) in such Person, including, without limitation, all rights to participate in the
operation or management of such Person and all rights to such Person’s properties, assets, interests and distributions under
the related organizational documents in respect of such Person. “Capital Stock” also includes (i) all accounts receivable
arising out of the related organizational documents of such Person; (ii) all general intangibles arising out of the related organizational
documents of such Person; and (iii) to the extent not otherwise included, all proceeds of any and all of the foregoing (including
within proceeds, whether or not otherwise included therein, any and all contractual rights under any revenue sharing or similar
agreement to receive all or any portion of the revenues or profits of such Person).

 

    	 	- 7 -	 

     

    

 

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

 

“Category”
means the category or type of Purchased Mortgage Loan or Contributed Asset as delineated in the definitions of Aging Limit, Asset
Value, Pricing Rate and Purchase Price Percentage.

 

“Change in Control”
means:

 

(a)any transaction
or event as a result of which PennyMac Operating Partnership, L.P. ceases to own, beneficially or of record, 100% of the Capital
Stock of PMC or PennyMac Holdings;

 

(b)any transaction
or event as a result of which PennyMac Mortgage Investment Trust ceases to own, beneficially or of record, 100% of the Capital
Stock of PennyMac Operating Partnership, L.P.;

 

(c)any transaction
or event as a result of which PennyMac Operating Partnership, L.P. ceases to own, beneficially or of record, 100% of the Capital
Stock of each Underlying Repurchase Counterparty;

 

(d)any transaction
(other than those contemplated under this Agreement) or event as a result of which PMC ceases to own, beneficially or of record,
100% of the Capital Stock of the REO Subsidiary;

 

(e)the acquisition
by any Person or group (within the meaning of the Securities Exchange Act of 1934, as amended, and the rules of the Securities
and Exchange Commission thereunder), directly or indirectly, beneficially or of record, of ownership or control of in excess of
50% of the voting common stock of PennyMac Mortgage Investment Trust on a fully diluted basis at any time;

 

    	 	- 8 -	 

     

    

 

(f)the sale, transfer,
or other disposition of all or substantially all of Underlying Repurchase Counterparty’s, any Seller Party’s or any
Guarantor’s assets (excluding any such action taken in connection with any securitization transaction); or

 

(g)the consummation
of a merger or consolidation of Underlying Repurchase Counterparty, Seller Parties or Guarantors with or into another entity or
any other corporate reorganization, if more than 50% of the combined voting power of the continuing or surviving entity’s
stock outstanding immediately after such merger, consolidation or such other reorganization is owned by Persons who were not stockholders
of Underlying Repurchase Counterparty, Seller Parties or Guarantors immediately prior to such merger, consolidation or other reorganization.

 

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

 

“Collection
Account” means each account established at the Bank into which all Income other than REO Subsidiary Income shall be deposited,
each of which shall be subject to a Collection Account Control Agreement.

 

“Collection
Account Control Agreement” means a letter agreement among PennyMac Loan Services, LLC, Buyer, and Bank in form and substance
reasonably acceptable to Buyer, as it may be amended, supplemented or otherwise modified from time to time.

 

“Commitment
Fee” has the meaning specified in the Pricing Side Letter.

 

“Committed Mortgage
Loan” means a Mortgage Loan which is the subject of a Take-out Commitment with a Take-out Investor.

 

“Compare Ratio”
has the meaning set forth in the applicable Compare Report.

 

“Compare Report”
means the Underlying Repurchase Counterparty DE Compare Report or the Underlying Repurchase Counterparty Institution Compare Report,
as applicable.

 

“Conforming
Mortgage Loan” means a first lien Mortgage Loan originated in accordance with the criteria of an Agency for purchase
of Mortgage Loans, including, without limitation, conventional Mortgage Loans, as determined by Buyer in its sole discretion.

 

“Contributed
Asset” means a Rental Property or a REO Property.

 

“Co-op”
means a private, cooperative housing corporation, having only one class of stock outstanding, which owns or leases land and all
or part of a building or buildings, including apartments, spaces used for commercial purposes and common areas therein and whose
board of directors authorizes the sale of stock and the issuance of a Proprietary Lease.

 

“Co-op Corporation”
means, with respect to any Co-op Loan, the cooperative apartment corporation that holds legal title to the related Co-op Project
and grants occupancy rights to units therein to stockholders through Proprietary Leases or similar arrangements. 

 

    	 	- 9 -	 

     

    

 

“Co-op Lien
Search” means a search for (a) federal tax liens, mechanics’ liens, lis pendens, judgments of record or otherwise
against (i) the Co-op Corporation and (ii) seller of the Co-op Unit, (b) filings Uniform Commercial Code financing statements and
(c) the deed of the Co-op Project into the Co-op Corporation. 

 

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

 

“Co-op Project”
means, with respect to any Co-op Loan, all real property and improvements thereto and rights therein and thereto owned by a Co-op
Corporation including without limitation the land, separate dwelling units and all common elements. 

 

“Co-op Shares”
means, with respect to any Co-op Loan, the shares of stock issued by a Co-op Corporation and allocated to a Co-op Unit and represented
by a Stock Certificate. 

 

“Co-op Unit”
means, with respect to any Co-op Loan, a specific unit in a Co-op Project.

 

“Custodial Agreement”
means the amended and restated custodial agreement dated as of the date hereof, among Seller Parties, Buyer and Custodian, as the
same may be amended, restated, supplemented or otherwise modified from time to time.

 

“Custodial Asset
Schedule” has the meaning assigned to such term in the Custodial Agreement.

 

“Custodian”
means Deutsche Bank Trust Company Americas or such other party specified by Buyer and agreed to by Sellers, which approval shall
not be unreasonably withheld.

 

“DE Compare
Ratio” means either the DE Compare (public) Ratio or the DE Compare (private) Ratio, as applicable.

 

“DE Compare
(public) Ratio” means the Two Year FHA Direct Endorsement Lender Compare Ratio, excluding streamline FHA refinancings,
as made publicly available by HUD. 

 

“DE Compare
(private) Ratio” means the Two Year FHA Direct Endorsement Lender Compare Ratio, including streamline FHA refinancings,
as made privately available by HUD to a Seller. 

 

“Deed”
means the deed issued in connection with a foreclosure sale of a Mortgaged Property or in connection with receiving a deed in lieu
of foreclosure evidencing title to the related Contributed Asset.

 

“Default”
means an Event of Default or an event that with notice or lapse of time or both would become an Event of Default.

 

    	 	- 10 -	 

     

    

 

“Deposit Account”
has the meaning assigned to such term in the Securities Account Control Agreement.

 

“Diligence Agent”
means such Person as may be appointed by Buyer in its sole good faith discretion to perform certain diligence services described
herein.

 

“Dollars”
and “$” means dollars in lawful currency of the United States of America.

 

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

 

“Early Repurchase
Trigger Event” means either of the following shall have occurred and be continuing on a cumulative basis commencing
on the Effective Date for more than thirty (30) calendar days, (i) the Purchase Price of all Rental Properties that fail to be
owned by REO Subsidiary is equal to or greater than ten percent (10%) of the REO Property Concentration Limit as defined in the
Pricing Side Letter; or (ii) Rental Properties are subject to Liens that (A) are prior to the Lien of the Buyer; (B) are not insured
by a valid title insurance policy; (C) are reasonably likely to have a material adverse effect on the marketability and value of
the Rental Property; and (D) the Purchase Price of all such Rental Properties is equal to or greater than ten percent (10%) of
the REO Property Concentration Limit as defined in the Pricing Side Letter.

 

“EDGAR”
means the Electronic Data-Gathering, Analysis, and Retrieval system maintained by the SEC.

 

“Effective Date”
means the date upon which the conditions precedent set forth in Section 10 shall have been satisfied.

 

“Eligible
Lease” means a Lease Agreement that (i) is in a form that is customary for the jurisdiction in which such Rental Property
is located, (ii) is entered into on an arms-length basis, (iii) is in material conformance with the REO Subsidiary’s Leasing
Criteria, and (v) is in compliance with all applicable laws, rules and regulations.

 

“Eligible Tenant”
means a Tenant that, as of any date of determination, (i) is not a debtor in any state or federal bankruptcy or insolvency proceeding,
and (ii) conforms to the REO Subsidiary’s Tenant Underwriting Criteria.

 

“Environmental
Issue” means any material environmental issue with respect to any Mortgaged Property or Contributed Asset, as determined
by the Buyer in its good faith discretion, including without limitation, the violation of any federal, state, foreign or local
statute, law, rule, regulation, ordinance, code, guideline, written policy and rule of common law now or hereafter in effect and
in each case as amended, and any judicial or administrative interpretation thereof, including any judicial or administrative order,
consent decree or judgment, relating to the environment, employee health and safety or hazardous substances, materials or other
pollutants, including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”),
42 U.S.C. § 9601 et seq.; the Solid Waste Disposal Act, as amended by the Resource Conservation and
Recovery Act (“RCRA”), 42 U.S.C. § 6901 et seq.; the Federal Water Pollution Control
Act, 33 U.S.C. § 1251 et seq.; the Toxic Substances Control Act, 15 U.S.C. § 2601
et seq.; the Clean Air Act, 42 U.S.C. § 7401 et seq.; the Safe Drinking Water
Act, 42 U.S.C. § 3803 et seq.; the Oil Pollution Act of 1990, 33 U.S.C. § 2701 et seq.;
the Emergency Planning and the Community Right-to-Know Act of 1986, 42 U.S.C. § 11001 et seq.;
the Hazardous Material Transportation Act, 49 U.S.C. § 1801 et seq. and the Occupational Safety
and Health Act, 29 U.S.C. § 651 et seq.; and any state and local or foreign analogues, counterparts
or equivalents, in each case as amended from time to time.

 

    	 	- 11 -	 

     

    

 

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

 

“ERISA Affiliate”
means any corporation or trade or business that, together with Sellers or Guarantors is treated as a single employer under Section
414(b) or (c) of the Code or solely for purposes of Section 302 of ERISA and Section 412 of the Code is treated as a single employer
described in Section 414 of the Code.

 

“Escrow Instruction
Letter” means the Escrow Instruction Letter from Underlying Repurchase Counterparty to the Settlement Agent, in the form
of Exhibit I hereto, as the same may be modified, supplemented and in effect from time to time.

 

“Escrow Payments”
means, with respect to any Mortgage Loan, the amounts constituting ground rents, taxes, assessments, water rates, sewer rents,
municipal charges, mortgage insurance premiums, fire and hazard insurance premiums, condominium charges, and any other payments
required to be escrowed by the Mortgagor with the mortgagee pursuant to the Mortgage or any other document.

 

“Event of Default”
has the meaning specified in Section 15 hereof.

 

“Event of Termination”
means with respect to Underlying Repurchase Counterparty, Seller Parties or Guarantors (a) with respect to any Plan, a reportable
event, as defined in Section 4043 of ERISA, as to which the PBGC has not by regulation waived the requirement of Section 4043(a)
of ERISA that it be notified with 30 days of the occurrence of such event, or (b) the withdrawal of Underlying Repurchase Counterparty,
Seller Parties, Guarantors or any ERISA Affiliate thereof from a Plan during a plan year in which it is a substantial employer,
as defined in Section 4001(a)(2) of ERISA, or (c) the failure by Seller Parties, Guarantors or any ERISA Affiliate thereof to meet
the minimum funding standard of Section 412 of the Code or Section 302 of ERISA with respect to any Plan, including, without limitation,
the failure to make on or before its due date a required installment under Section 412(m) of the Code (or Section 430 (j) of the
Code as amended by the Pension Protection Act) or Section 302(e) of ERISA (or Section 303 (j) of ERISA, as amended by the Pension
Protection Act), or (d) the distribution under Section 4041 of ERISA of a notice of intent to terminate any Plan or any action
taken by Underlying Repurchase Counterparty, Seller Parties, Guarantors or any ERISA Affiliate thereof to terminate any plan, or
(e) the failure to meet requirements of Section 436 of the Code resulting in the loss of qualified status under Section 401(a)(29)
of the Code, or (f) the institution by the PBGC of proceedings under Section 4042 of ERISA for the termination of, or the appointment
of a trustee to administer, any Plan, or (g) the receipt by Underlying Repurchase Counterparty, Seller Parties, Guarantors or any
ERISA Affiliate thereof of a notice from a Multiemployer Plan that action of the type described in the previous clause (f) has
been taken by the PBGC with respect to such Multiemployer Plan, or (h) any event or circumstance exists which may reasonably be
expected to constitute grounds for Underlying Repurchase Counterparty, Seller Parties, Guarantors or any ERISA Affiliate thereof
to incur liability under Title IV of ERISA or under Sections 412 (b) or 430 (k) of the Code with respect to any Plan.

 

    	 	- 12 -	 

     

    

 

“Existing Indebtedness”
has the meaning specified in Section 13(a)(23) hereof.

 

“Fannie Mae”
means the Federal National Mortgage Association or any successor thereto.

 

“FHA”
means the Federal Housing Administration, an agency within the United States Department of Housing and Urban Development, or any
successor thereto, and including the Federal Housing Commissioner and the Secretary of Housing and Urban Development where appropriate
under the FHA Regulations.

 

“FHA 203(k)
Loan” means an FHA Loan that is eligible for FHA’s 203(k) loan program. 

 

“FHA Approved
Mortgagee” means a corporation or institution approved as a mortgagee by the FHA under the National Housing Act, as amended
from time to time, and applicable FHA Regulations, and eligible to own and service mortgage loans such as the FHA Loans.

 

“FHA Loan”
means a Mortgage Loan which is the subject of an FHA Mortgage Insurance Contract.

 

“FHA Mortgage
Insurance” means, mortgage insurance authorized under the National Housing Act, as amended from time to time, and provided
by the FHA.

 

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

 

“FHA Regulations”
means the regulations promulgated by HUD under the National Housing Act, as amended from time to time and codified in 24 Code of
Federal Regulations, and other Department of Housing and Urban Development issuances relating to FHA Loans, including the related
handbooks, circulars, notices and mortgagee letters.

 

“FICO”
means Fair Isaac & Co., or any successor thereto.

 

“Fidelity Insurance”
shall mean insurance coverage with respect to employee errors, omissions, dishonesty, forgery, theft, disappearance and destruction,
robbery and safe burglary, property (other than money and securities) and computer fraud in an aggregate amount acceptable to a
Seller’s regulators.

 

    	 	- 13 -	 

     

    

 

“Freddie Mac”
means the Federal Home Loan Mortgage Corporation or any successor thereto.

 

“GAAP”
means generally accepted accounting principles in effect from time to time in the United States of America and applied on a consistent
basis.

 

“GNMA”
means the Government National Mortgage Association and any successor thereto.

 

“Governmental
Authority” means any nation or government, any state or other political subdivision thereof, or any entity exercising
executive, legislative, judicial, regulatory or administrative functions over Underlying Repurchase Counterparty, Seller Parties,
Guarantors or Buyer, as applicable.

 

“Governmental
Event” means (i) a Seller Party’s or Underlying Repurchase Counterparty’s failure to obtain licensing from
any Governmental Authority where it is required to be licensed and such failure to be licensed and requirement to be licensed continue
for 30 days following notice to or knowledge thereof by a Seller Party or Underlying Repurchase Counterparty, (ii) the imposition
of material sanctions on a Seller Party or Underlying Repurchase Counterparty from any Governmental Authority, or (iii) any material
dispute, litigation, investigation, proceeding or suspension between a Seller Party or Underlying Repurchase Counterparty and any
Governmental Authority or any Person.

 

“Gross Margin”
means, with respect to each adjustable rate Mortgage Loan, the fixed percentage amount set forth in the related Mortgage Note.

 

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

 

“Guarantor”
means PennyMac Mortgage Investment Trust and PennyMac Operating Partnership, L.P., each in its capacity as guarantor under the
Guaranty.

 

“Guaranty”
means the amended and restated guaranty of the Guarantors dated as of the date hereof as the same may be amended from time to time,
pursuant to which each Guarantor fully and unconditionally guarantees the obligations of each Seller Party hereunder.

 

    	 	- 14 -	 

     

    

 

“High Cost Mortgage
Loan” means a Mortgage Loan classified as (a) a “high cost” loan under the Home Ownership and Equity
Protection Act of 1994 or (b) a “high cost,” “threshold,” “covered,” or “predatory”
loan under any other applicable state, federal or local law (or a similarly classified loan using different terminology under a
law, regulation or ordinance imposing heightened regulatory scrutiny or additional legal liability for residential mortgage loans
having high interest rates, points and/or fees).

 

“High LTV Loan”
means a Mortgage Loan having a Loan to Value Ratio in excess of (a) with respect to FHA Loans or VA Loans, 97.75% (other than Streamlined
Mortgage Loans); (b) with respect to all other Mortgage Loans, 95%; or (c) such lower percentage as may be set forth in the Underwriting
Guidelines. 

 

“HUD”
means the United States Department of Housing and Urban Development or any successor thereto.

 

“Improvements”
means all buildings, structures, improvements, parking areas, landscaping, fixtures and articles of property now erected on, attached
to, or used or adapted for use in the operation of any Rental Property, including, without limitation, all heating, air conditioning
and incinerating apparatus and equipment, all boilers, engines, motors, dynamos, generating equipment, piping and plumbing fixtures,
water heaters, ranges, cooking apparatus and mechanical kitchen equipment, refrigerators, freezers, cooling, ventilating, sprinkling
and vacuum cleaning systems, fire extinguishing apparatus, gas and electric fixtures, carpeting, floor covering, underpadding,
storm sashes, awnings, signs, furnishings of public spaces, halls and lobbies, and shrubbery and plants.

 

“Income”
means, without duplication, with respect to any Purchased Mortgage Loan, REO Subsidiary Interest or Contributed Asset, all principal
and income or dividends or distributions received with respect to such Purchased Mortgage Loan, REO Subsidiary Interest or Contributed
Asset, including any sale or liquidation premiums, Liquidation Proceeds, insurance proceeds, interest, dividends, Rental Proceeds,
Security Deposits or other distributions payable thereon or any fees or payments of any kind received by the related Servicer.

 

“Indebtedness”
means, for any Person: at any time, and only to the extent outstanding at such time: (a) obligations created, issued or incurred
by such Person for borrowed money (whether by loan, the issuance and sale of debt securities or the sale of Property to another
Person subject to an understanding or agreement, contingent or otherwise, to repurchase such Property from such Person); (b) obligations
of such Person to pay the deferred purchase or acquisition price of Property or services, other than trade accounts payable (other
than for borrowed money) arising, and accrued expenses incurred, in the ordinary course of business, so long as such trade accounts
payable are payable within 90 days of the date the respective goods are delivered or the respective services are rendered; (c)
Indebtedness of others secured by a Lien on the Property of such Person, whether or not the respective Indebtedness so secured
has been assumed by such Person; (d) obligations (contingent or otherwise) of such Person in respect of letters of credit or similar
instruments issued or accepted by banks and other financial institutions for the account of such Person; (e) Capital Lease Obligations
of such Person; (f) obligations of such Person under repurchase agreements, sale/buy-back agreements or like arrangements, including,
without limitation, any Indebtedness arising hereunder; (g) Indebtedness of others Guaranteed by such Person; (h) all obligations
of such Person incurred in connection with the acquisition or carrying of fixed assets by such Person; (i) Indebtedness of general
partnerships of which such Person is a general partner and (j) with respect to clauses (a)-(i) above both on and off balance sheet.

 

    	 	- 15 -	 

     

    

 

“Index”
means, with respect to any adjustable rate Mortgage Loan, the index identified on the Asset Schedule and set forth in the related
Mortgage Note for the purpose of calculating the applicable Mortgage Interest Rate.

 

“Interest Only
Adjustment Date” means, with respect to each Interest Only Loan, the date, specified in the related Mortgage Note on
which the Monthly Payment will be adjusted to include principal as well as interest.

 

“Interest Only
Loan” means a Mortgage Loan which only requires payments of interest for a period of time specified in the related Mortgage
Note.

 

“Interest Rate
Adjustment Date” means the date on which an adjustment to the Mortgage Interest Rate with respect to each Mortgage Loan
becomes effective.

 

“Interest Rate
Protection Agreement” means, with respect to any or all of the Purchased Mortgage Loans, any short sale of a U.S. Treasury
Security, or futures contract, or mortgage related security, or Eurodollar futures contract, or options related contract, or interest
rate swap, cap or collar agreement or Take-out Commitment, or similar arrangement providing for protection against fluctuations
in interest rates or the exchange of nominal interest obligations, either generally or under specific contingencies, entered into
by a Seller and an Affiliate of Buyer or such other party acceptable to Buyer in its sole discretion, which agreement is acceptable
to Buyer in its sole discretion.

 

“Lease Agreement”
means, with respect to any Rental Property, a lease or rental agreement entered into between the REO Subsidiary (or Property Manager
acting as agent for the REO Subsidiary) and a Tenant providing for the rental of such Rental Property to such Tenant, including
any renewal or extension of an existing lease or rental, which lease or rental agreement is in form and substance reasonably acceptable
to Buyer.

 

“Leasing Criteria”
means the standards, procedures and guidelines of the REO Subsidiary for any Lease Agreement, which are set forth in the written
policies and procedures of the REO Subsidiary, a copy of which have been provided to Buyer and such other criteria as are identified
to and approved in writing by Buyer.

 

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

 

“Liquidated
Asset” means (i) a Purchased Mortgage Loan that has been sold or refinanced or was subject to a short sale or with respect
to which the Mortgaged Property has been sold or for which a prepayment in full was received or (ii) a Rental Property or REO Property
that has been sold.

 

    	 	- 16 -	 

     

    

 

“Liquidation
Proceeds” means, for any Purchased Mortgage Loan or Contributed Asset that becomes a Liquidated Asset, the proceeds received
on account of the liquidation of such Purchased Mortgage Loan or Contributed Asset or the amount of the prepayment in full.

 

“Loan to Value
Ratio” or “LTV” means with respect to any Mortgage Loan, the ratio of the original outstanding principal
amount of such Mortgage Loan to the lesser of (a)(i) with respect to a New Origination Mortgage Loan, the Appraised Value of the
Mortgaged Property at origination or (ii) with respect to a Seasoned Mortgage Loan, the BPO value or (b) with respect to New Origination
Mortgage Loans, if the Mortgaged Property was purchased within 12 months of the origination of such Mortgage Loan, the purchase
price of the Mortgaged Property.

 

“Low Percentage
Margin Call” has the meaning specified in Section 6(b) hereof.

 

“Margin Call”
has the meaning specified in Section 6(a) hereof.

 

“Margin Deadline”
has the meaning specified in Section 6(b) hereof.

 

“Margin Deficit”
has the meaning specified in Section 6(a) hereof.

 

“Market Value”
has the meaning assigned to such term in the Pricing Side Letter.

 

“Material Adverse
Effect” means (a) a material adverse change in, or a material adverse effect upon, the operations, business, properties,
condition (financial or otherwise) or prospects of Underlying Repurchase Counterparty, any Seller Party, any Guarantor or any Affiliate
that is a party to any Program Agreement taken as a whole; (b) a material impairment of the ability of any Seller Party, any
Guarantor or any Affiliate that is a party to any Program Agreement to perform under any Program Agreement and to avoid any event
of default; (c) a material impairment of the ability of Underlying Repurchase Counterparty to perform under Underlying Repurchase
Documents and to avoid any event of default thereunder; or (d) a material adverse effect upon the legality, validity, binding
effect or enforceability of any Program Agreement against any Seller Party, any Guarantor or any Affiliate that is a party to any
Program Agreement or against Underlying Repurchase Counterparty that is a party to any Underlying Repurchase Documents, in each
case as determined by the Buyer in its sole good faith discretion.

 

“Maximum Committed
Purchase Price” means the “Maximum Roll-Up Committed Purchase Price” as defined in the Pricing Side Letter.

 

“Maximum Purchase
Price” means the “Maximum Roll-Up Purchase Price” as defined in the Pricing Side Letter.

 

“MERS”
means Mortgage Electronic Registration Systems, Inc., a corporation organized and existing under the laws of the State of Delaware,
or any successor thereto.

 

“MERS System”
means the system of recording transfers of mortgages electronically maintained by MERS.

 

    	 	- 17 -	 

     

    

 

“Modified Loan”
means a Purchased Mortgage Loan that has been modified by a Seller or the Servicer from the original terms.

 

“Monthly Lease
Payment” means, with respect to any Lease Agreement, the lease payment that is actually payable by the related Tenant
from time to time under the terms of such Lease Agreement, after giving effect to any provision of such Lease Agreement providing
for periodic increases in such fixed or base rent.

 

“Monthly Payment”
means the scheduled monthly payment of principal and/or interest on a Mortgage Loan.

 

“Moody’s”
means Moody’s Investors Service, Inc. or any successors thereto.

 

“Mortgage”
means each mortgage, deed of trust, deed to secure debt or similar instrument creating and evidencing a lien on real property and
other property and rights incidental thereto, unless such Mortgage is granted in connection with a Co-op Loan, in which case the
first lien position is in the stock of the subject cooperative association and in the tenant’s rights in the cooperative
lease relating to such stock.

 

“Mortgage Interest
Rate” means the rate of interest borne on a Mortgage Loan from time to time in accordance with the terms of the related
Mortgage Note.

 

“Mortgage Interest
Rate Cap” means, with respect to an adjustable rate Mortgage Loan, the limit on each Mortgage Interest Rate adjustment
as set forth in the related Mortgage Note.

 

“Mortgage Loan”
means any first lien closed Pooled Mortgage Loan, New Origination Mortgage Loan or Seasoned Mortgage Loan which is a fixed or floating-rate,
one-to-four-family residential mortgage loan evidenced by a promissory note and secured by a first lien mortgage.

 

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

 

“Mortgaged Property”
means the real property or other Co-op Loan collateral securing repayment of the debt evidenced by a Mortgage Note.

 

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

 

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

 

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

 

    	 	- 18 -	 

     

    

 

“Net Worth”
means, with respect to any Person, an amount equal to, on a consolidated basis, such Person’s stockholder equity (determined
in accordance with GAAP).

 

“New Origination
Mortgage Loan” means (i) any Non-Agency QM Mortgage Loan, (ii) any Agency Mortgage Loan, in each case and (iii) any New
Origination Performing Mortgage Loan, that was originated no more than 90 days prior to the related Purchase Date.

 

“Non-Agency
QM Mortgage Loan” means a New Origination Mortgage Loan that that is neither a Non-Performing Mortgage Loan nor Re-Performing
Mortgage Loan and that (a) does not meet the criteria for an Agency Mortgage Loan; (b) meets all applicable criteria
as set forth in the Underwriting Guidelines and (c) is otherwise acceptable to Buyer in its sole discretion.

 

“New Origination
Performing Mortgage Loan” means a first lien Mortgage Loan (i) originated by a Seller in accordance with the criteria
of an Agency except such Mortgage Loan is not eligible for sale to an Agency and is not a Qualified Mortgage Loan, (ii) no payment
under which is nor has been delinquent at any time since the origination, and (iii) is acceptable to Buyer in its sole discretion.

 

“Non-Performing
Mortgage Loan” means any Mortgage Loan for which any payment of principal or interest is thirty (30) days or more past
due. For the avoidance of doubt, a Mortgage Loan that is a Non-Performing Mortgage Loan shall be deemed a Non-Performing Mortgage
Loan until it satisfies the requirements set forth in the definition of Re-Performing Mortgage Loan.

 

“Non-Recourse
Debt” shall mean Indebtedness payable solely from the assets sold or pledged to secure such Indebtedness and under which
Indebtedness no party has recourse to Sellers, Guarantors or any of their Affiliates if such assets are inadequate or unavailable
to pay off such Indebtedness, and neither Sellers, Guarantors nor any of their Affiliates effectively has any obligation to directly
or indirectly pay any such deficiency.

 

“Obligations”
means (a) all of Seller Parties’ indebtedness, obligations to pay the Repurchase Price on the Repurchase Date, the Price
Differential on each Payment Date, and other obligations and liabilities, to Buyer, its Affiliates or Custodian arising under,
or in connection with, the Program Agreements, whether now existing or hereafter arising; (b) any and all sums paid by Buyer
or on behalf of Buyer in order to preserve any Purchased Asset and/or Contributed Asset or its interest therein; (c) in the
event of any proceeding for the collection or enforcement of any of a Seller Parties’ indebtedness, obligations or liabilities
referred to in clause (a), the reasonable expenses of retaking, holding, collecting, preparing for sale, selling or otherwise
disposing of or realizing on any Purchased Asset and/or Contributed Asset, or of any exercise by Buyer of its rights under the
Program Agreements, including, without limitation, attorneys’ fees and disbursements and court costs; and (d) all of
any Seller Parties’ indemnity obligations to Buyer or Custodian or both pursuant to the Program Agreements.

 

“OFAC”
has the meaning set forth in Section 13(a)(27) hereof.

 

“Optional Partial
Prepayment” has the meaning specified in Section 4(b) hereof.

 

“Optional Partial
Prepayment Date” has the meaning specified in Section 4(b) hereof.

 

    	 	- 19 -	 

     

    

 

“Payment Date”
means, with respect to a Purchased Asset, the 5th day of the month following the month of the related Purchase Date
and each succeeding 5th day of the month thereafter; provided, that, with respect to such Purchased Asset, the
final Payment Date shall be the related Repurchase Date; and provided, further, that if any such day is not
a Business Day, the Payment Date shall be the next succeeding Business Day.

 

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

 

“Pension Protection
Act” means the Pension Protection Act of 2006.

 

“Person”
means an individual, partnership, corporation (including a business trust), limited liability company, joint stock company, trust,
unincorporated association, joint venture or other entity, or a government or any political subdivision or agency thereof.

 

“Plan”
means an employee benefit or other plan established or maintained by any Seller Party or any ERISA Affiliate and covered by Title
IV of ERISA, other than a Multiemployer Plan.

 

“Pooled Mortgage
Loan” means any Purchased Mortgage Loan that is subject to a Transaction hereunder and is part of a pool of Purchased
Mortgage Loans certified by Custodian to an Agency to be either (a) purchased by such Agency or (b) swapped for an Agency Security
backed by such pool, in each case, in accordance with the terms of the guidelines issued by the applicable Agency.

 

“Post-Default
Rate” has the meaning assigned to such term in the Pricing Side Letter.

 

“Power of Attorney”
means the power of attorney in the form of Exhibit D, Exhibit E-1, or Exhibit E-2 delivered by each Seller
Party, PennyMac Loan Services, LLC and the REO Subsidiary, as applicable.

 

“Price Differential”
means, with respect to any Transaction hereunder as of any date, the aggregate amount obtained by daily application of, for each
Purchased Mortgage Loan and/or Contributed Asset, the Pricing Rate (or, during the continuation of an Event of Default, by daily
application of the Post-Default Rate) for such Purchased Mortgage Loan and/or Contributed Asset to the Purchase Price allocated
to such Purchased Mortgage Loan and/or Contributed Asset on a 360 day per year basis for the actual number of days during the period
commencing on (and including) the Purchase Date for such Purchased Mortgage Loan and/or Contributed Asset and ending on (but excluding)
the Repurchase Date or the Optional Partial Prepayment Date with respect to such Purchased Mortgage Loan and/or Contributed Asset.
The Price Differential accrued during any Accrual Period shall be due and payable on the following Payment Date.

 

“Pricing Rate”
has the meaning assigned to such term in the Pricing Side Letter.

 

    	 	- 20 -	 

     

    

 

“Pricing Side
Letter” means the consolidated, amended and restated letter agreement dated as of the date hereof, among Buyer, Seller
Parties and the Guarantors as the same may be amended from time to time.

 

“Program Agreements”
means, collectively, this Agreement, the Pricing Side Letter, the Guaranty, the Custodial Agreement, the Underlying Electronic
Tracking Agreement, the Securities Account Control Agreement, the Collection Account Control Agreement, the REO Subsidiary Account
Control Agreements, the Power of Attorney, the Servicing Agreement, if any, each Subsidiary Agreement, the Servicer Notice and
Pledge, the Property Management Agreement and the Property Management Agreement Side Letter.

 

“Prohibited
Person” has the meaning set forth in Section 13(a)(27) hereof.

 

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

 

“Property Level
Reporting Period” means, as of the date of determination, the most recently ended calendar quarter of each calendar year.

 

“Property Management
Agreement” means the Servicing Agreement or a property management agreement approved by Buyer in its sole discretion
between a Property Manager and the REO Subsidiary, as the same may be amended, supplemented, or otherwise modified from time to
time.

 

“Property Management
Agreement Side Letter” means the side letter substantially in the form of Exhibit C hereto.

 

“Property Management
Rights” means rights of any Person (including a Property Manager) to administer, manage, service or subservice, the Rental
Property or to possess related Records.

 

“Property Manager”
means, with respect to any Rental Property, any property manager approved by Buyer in its sole discretion.

 

“Property Manager
Termination Event” means (i) a material default by Property Manager under the Property Management Agreement, (ii) there
shall occur or exist any fraud, gross negligence, willful misconduct or misappropriation of funds by Property Manager in connection
with the Program Agreements or Property Management Agreement or (iii) an Act of Insolvency shall have occurred with respect to
Property Manager, subject to Section 15.d hereof.

 

“Proprietary
Lease” means the lease on a Co-op Unit evidencing the possessory interest of the owner in the Co-op Shares in such Co-op
Unit. 

 

“Purchase Date”
means the date on which a Purchased Asset is to be transferred by a Seller to Buyer or a Purchase Price Increase Date.

 

“Purchase Price”
means, without duplication: (a) with respect to REO Subsidiary Interests, the aggregate Purchase Price of all Contributed Assets,
as applicable, and (b) with respect to each Purchased Mortgage Loan or Contributed Asset, the price at which such Purchased Mortgage
Loan or Contributed Asset, as applicable, is made subject to a Transaction hereunder, which shall equal:

 

    	 	- 21 -	 

     

    

 

(a) on the Purchase Date
of the Purchased Mortgage Loans or Contributed Assets, the Asset Value of such Purchased Mortgage Loans or Contributed Assets as
of the Purchase Date;

 

(b) on any day after
the Purchase Date, except where Buyer and such Seller agree otherwise, the amount determined under the immediately preceding clause
(a) (i) solely with respect to the Eligible REO Subsidiary Interest, without duplication, increased or decreased upon the acquisition
or disposition of Contributed Assets by the REO Subsidiary, pursuant to Sections 3(b) and 4 hereof, and (ii) decreased
by the amount of any cash transferred by such Seller to Buyer pursuant to Section 6 hereof.

 

“Purchase Price
Increase” means an increase in the Purchase Price for the REO Subsidiary Interests based upon the REO Subsidiary acquiring
additional Contributed Assets, to which such portion of the Purchase Price is allocated, as requested by a Seller pursuant to Section
3(b) hereof. 

 

“Purchase Price
Increase Date” means the date on which a Contributed Asset is transferred to the REO Subsidiary, and/or a Purchase Price
Increase is made with respect thereto.

 

“Purchase Price
Increase Request” means a request via email from a Seller to Buyer requesting a Purchase Price Increase for REO Subsidiary
Interests based upon the acquisition of additional Contributed Assets by the REO Subsidiary and indicating that it is a Purchase
Price Increase Request under this Agreement.

 

“Purchase Price
Percentage” has the meaning assigned to such term in the Pricing Side Letter.

 

“Purchased Assets”
means the collective reference to Purchased Mortgage Loans and REO Subsidiary Interests (including for the avoidance of doubt,
the related Underlying Repurchase Assets) together with the Repurchase Assets related to such REO Subsidiary Interests transferred
by Sellers to Buyer in a Transaction hereunder, listed on the related Asset Schedule attached to the related Transaction Request
which such Asset Files and REO Subsidiary Interests the Custodian has been instructed to hold pursuant to the Custodial Agreement;
provided, that, in the case of the transfer of REO Subsidiary Interests under any Transaction, Purchased Assets shall be
deemed to include all such portion(s) of the REO Subsidiary Interests allocable to the Purchase Price or Purchase Price Increase,
as applicable, that correspond to the related Contributed Assets owned by the REO Subsidiary, and as related to such Purchase Price
or Purchase Price Increase, as applicable. 

 

“Purchased Mortgage
Loan” means a Mortgage Loan which is subject to a Transaction under this Agreement.

 

    	 	- 22 -	 

     

    

 

“Qualified Insurer”
means an insurance company duly authorized and licensed where required by law to transact insurance business and approved as an
insurer by Fannie Mae or Freddie Mac.

 

“Qualified Originator”
means, with respect to New Origination Mortgage Loans, an originator of Mortgage Loans which is acceptable under the Underwriting
Guidelines.

 

“Records”
means all instruments, agreements and other books, records, and reports and data generated by other media for the storage of information
maintained by Seller Parties, Servicer, Guarantors, Custodian, Underlying Repurchase Counterparty, or any other person or entity
with respect to a Purchased Asset or Contributed Asset. Records shall include the Mortgage Notes, any Mortgages, the Asset Files,
the credit files related to the Purchased Asset, and any other instruments necessary to document or service a Purchased Mortgage
Loan. For Contributed Assets, Records shall include the Asset Files and any other instruments necessary to document or manage a
Contributed Asset.

 

“Recognition
Agreement” means, an agreement among a Co-op Corporation, a lender and a Mortgagor with respect to a Co-op Loan whereby
such parties (i) acknowledge that such lender may make, or intends to make, such Co-op Loan, and (ii) make certain agreements with
respect to such Co-op Loan.

 

“REIT”
means a real estate investment trust, as defined in Section 856 of the Code.

 

“Rental Proceeds”
means all payments made by Tenants and received in respect of any Rental Property, including Monthly Lease Payments and fees, but
excluding Security Deposits.

 

“Rental Property”
means a parcel of residential real property that is wholly owned by or acquired by REO Subsidiary and the fee title to which is
held by REO Subsidiary, together with all Improvements thereon and all other rights, benefits and proceeds arising from and in
connection with such property, that is subject to an Eligible Lease with an Eligible Tenant and satisfies each of the applicable
representations and warranties set forth on Schedule 1, Part VI with respect thereto.

 

“REO Property”
means (a) real property acquired by or transferred to REO Subsidiary, including a Mortgaged Property acquired through foreclosure
of a Mortgage Loan or by deed in lieu of such foreclosure, the fee title of which is held by REO Subsidiary, which shall include,
for the avoidance of doubt Rental Property, and (b) Unrecorded REO Property.

 

“REO Subsidiary”
means PMC REO Financing Trust, a wholly owned Subsidiary of PMC that is a Special Purpose Entity formed for the sole purpose of
holding REO Property and Rental Property.

 

“REO Subsidiary
Account” means each account as established pursuant to the applicable Subsidiary Agreement for the benefit of the REO
Subsidiary, into which PennyMac Loan Services, LLC shall direct all REO Subsidiary Income received with respect to the assets owned
by the REO Subsidiary.

 

    	 	- 23 -	 

     

    

 

“REO Subsidiary
Account Control Agreement” means the letter agreement among the REO Subsidiary, PennyMac Loan Services, LLC, PennyMac
Corp., Buyer, City National Securities, Inc. and Bank in form and substance reasonably acceptable to Buyer, as it may be amended,
supplemented or otherwise modified from time to time.

 

“REO Subsidiary
Account Required Balance” shall mean an amount equal to the total payments and Security Deposits on the account of the
Rental Properties expected to be received in such calendar month plus such Security Deposits previously collected and expected
to be continued to be held for such month, as determined on the first day of each calendar month based on Sellers’ monthly
report of rental property performance, in form and substance acceptable to Buyer.

 

“REO Subsidiary
Income” means, with respect to assets owned by the REO Subsidiary (including Unrecorded REO Property), all principal
and income received with respect to such assets, including any sale or liquidation premiums, Liquidation Proceeds, insurance proceeds,
interest, dividends or other distributions payable thereon or any fees or payments of any kind received by the REO Subsidiary.

 

“REO Subsidiary
Interests” means any and all of any Seller’s interests, as the case may be, in the Capital Stock in REO Subsidiary.

 

“Re-Performing
Mortgage Loan” means, as of any date of determination, a Mortgage Loan that was a Non-Performing Mortgage Loan, but with
respect to which the related Mortgagor has made all Monthly Payments for the three (3) months prior to such date of determination.

 

“Reporting Date”
means the 5th day of each month or, if such day is not a Business Day, the next succeeding Business Day.

 

“Repurchase
Assets” has the meaning assigned thereto in Section 8 hereof.

 

“Repurchase
Date” means the earliest of (a) the Termination Date, (b) the date determined by application of Section 16 hereof, (c)
any other date requested by a Seller upon one (1) Business Day's prior written notice subject to Section 4 hereof, (d) with respect
to the Specified Mortgage Loan Pool, the Specified Mortgage Loan Pool Repurchase Date and (e) with respect to Rental Properties,
upon the occurrence of an Early Repurchase Trigger Event.

 

“Repurchase
Price” means, without duplication, the price at which Purchased Assets are to be transferred from Buyer to Sellers, or
at which the REO Subsidiary Interests are to be reduced in value with respect to Contributed Assets released therefrom upon a Partial
Prepayment Date or termination of a Transaction, which will be determined in each case (including Transactions terminable upon
demand) as (a) with respect to Purchased Mortgage Loans and Contributed Assets, the Allocated Repurchase Price as of the date of
such determination and (b) with respect to the Subsidiary Certificate, the aggregate Allocated Repurchase Price of all Contributed
Assets owned by the REO Subsidiary.

 

    	 	- 24 -	 

     

    

 

“Request for
Certification” means a notice sent to the Custodian reflecting that one or more of the Mortgage Loans, Rental Properties
or REO Properties shall be made subject to a Transaction with the Buyer hereunder.

 

“Requirement
of Law” means, as to any Person, any law, treaty, rule, regulation, procedure or determination of an arbitrator or a
court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which
such Person or any of its property is subject, and includes all federal, state, county, municipal and other governmental statutes,
laws, rules, orders, regulations, ordinances, judgments, decrees and injunctions of Governmental Authorities, whether now or hereafter
enacted and in force, and all permits, licenses and authorizations and regulations relating thereto, and all covenants, agreements,
restrictions and encumbrances contained in any instruments, either of record or known to a Seller Party, at any time in force affecting
such Seller Party, any Rental Property, Mortgage Loan or REO Property or any part thereof, including, without limitation, any which
may (a) require repairs, modifications or alterations in or to a Rental Property or any part thereof, or (b) in any way limit the
leasing, use and enjoyment of a Contributed Asset.

 

“Responsible
Officer” means as to any Person, the chief executive officer or, with respect to financial matters, the chief financial
officer of such Person. The Responsible Officers of Seller Parties as of the date hereof are listed on Schedule 2 hereto.

 

“Restricted
Cash” means for any Person, any amount of cash of such Person that is contractually required to be set aside, segregated
or otherwise reserved.

 

“S&P”
means Standard & Poor’s Ratings Services, or any successor thereto.

 

“Seasoned Mortgage
Loan” means any Mortgage Loan that is not a New Origination Mortgage Loan and is a Non-Performing Mortgage Loan or Re-Performing
Mortgage Loan.

 

“SEC”
means the Securities and Exchange Commission, or any successor thereto.

 

“Securities
Account” has the meaning assigned to such term in the Securities Account Control Agreement.

 

“Securities
Account Control Agreement” means the agreement dated as of March 29, 2012, among Buyer, Sellers, Servicer, Bank and City
National Securities, Inc., a California corporation, as the same may be amended from time to time.

 

“Security Deposits”
means, any payments made by Tenants and received in respect of any Rental Property that is in the nature of a security deposit.

 

“Sellers”
means, collectively, PennyMac Corp., PennyMac Holdings, LLC and PennyMac Operating Partnership, L.P., or their respective permitted
successors and assigns.

 

“Seller Parties”
means, collectively, the Sellers and the REO Subsidiary, and their respective permitted successors and assigns.

 

    	 	- 25 -	 

     

    

 

“Servicer”
means PennyMac Loan Services, LLC or any other servicer approved by Buyer in its sole discretion, which may be a Seller or the
applicable Underlying Repurchase Counterparty.

 

“Servicer Account”
means that certain clearing account in the name of the applicable Servicer into which all sale proceeds of a Seasoned Mortgage
Loan or REO Property (unless otherwise agreed pursuant to the Program Agreements) are remitted and that clearing account where
Rental Proceeds are received.

 

“Servicer Notice
and Pledge” means the notice to and pledge by the Servicer substantially in the form of Exhibit J hereto.

 

“Servicing Agreement”
means that certain Second Amended and Restated Flow Servicing Agreement, dated as of March 1, 2013, by and between PennyMac Operating
Partnership, L.P. and Servicer, as the same may be amended from time to time.

 

“Servicing Rights”
means rights of any Person to administer, service or subservice, the Purchased Mortgage Loans or REO Properties or to possess related
Records.

 

“Settlement
Agent” means, with respect to any Transaction the subject of which is a Wet-Ink Mortgage Loan, the entity approved by
Buyer, in its sole good-faith discretion, which may be a title company, escrow company or attorney in accordance with local law
and practice in the jurisdiction where the related Wet-Ink Mortgage Loan is being originated. A Settlement Agent is deemed approved
unless Buyer notifies Sellers otherwise at any time electronically or in writing.

 

“SFR Property
Documents” means, with respect to any Rental Property, those documents executed in connection with, evidencing or governing
such Rental Property, which include with respect to such Rental Property: (i) the Deed (or true copy thereof) with evidence of
recording thereon evidencing the ownership of the related Rental Property by the REO Subsidiary, (ii) the original (or true copy
thereof) title insurance policy insuring such Rental Property, (iii) a true copy of the related Lease Agreement, if any, (iv) a
Tenant estoppel certificate and subordination, non-disturbance and attornment agreements, if any, to the extent in the possession
of the REO Subsidiary, in which the related Tenant acknowledges that such Lease Agreement is in full force and effect, that such
Tenant is not in default under the terms of such Lease Agreement, and that no circumstances currently exist that would give such
Tenant the right to abate or offset its rent, (v) any Rental Property zoning reports, (vi) a copy of the related Survey and (vii)
evidence of all insurance required to be maintained under such Lease Agreement, including but not limited to, with respect to any
environmental insurance policy, the original or a copy of each such environmental insurance policy, if any.

 

“SIPA”
means the Securities Investor Protection Act of 1970, as amended from time to time.

 

“Special Purpose
Entity” means a Person, other than an individual, which is formed or organized solely for the purpose of holding, directly
or indirectly, an ownership interest in one or more Rental Properties or REO Properties, does not engage in any business unrelated
to the Rental Properties or REO Properties, does not have any assets other than as otherwise expressly permitted by this Agreement,
has its own separate books and records and will not commingle its funds in each case which are separate and apart from the books
and records of any other Person, and is subject to all of the limitations on the powers set forth in the organizational documentation
of REO Subsidiary as in effect on the date hereof, and holds itself out as a Person separate and apart from any other Person and
otherwise complies with all of the covenants set forth in Section 14(gg).

 

    	 	- 26 -	 

     

    

 

“Specified Mortgage
Loan Pool” has the meaning assigned to such term in the Pricing Side Letter.

 

“Specified Mortgage
Loan Pool Repurchase Date” has the meaning assigned to such term in the Pricing Side Letter.

 

“State Specific
Foreclosure Aging Timeline” means the state specific foreclosure timeline as of the date of the Agreement as set forth
for each state on Exhibit M hereto.

 

“State Specific
REO Disposition Timeline” means the state specific disposition timeline for REO Properties as of the date of the Agreement
as set forth for each state on Exhibit N hereto.

 

“State Specific
REO Recording Timeline” means the state specific recording timeline for REO Properties as of the date of the Agreement
as set forth for each state on Exhibit O hereto.

 

“Stock Certificate”
means, with respect to a Co-op Loan, the certificates evidencing ownership of the Co-op Shares issued by the Co-op Corporation.

 

“Stock Power”
means, with respect to a Co-op Loan, an assignment of the Stock Certificate or an assignment of the Co-op Shares issued by the
Co-op Corporation. 

 

“Streamlined
Mortgage Loan” means an FHA Loan originated in accordance with FHA’s streamlined mortgage loan refinance program
as set forth in FHA’s Underwriting Guidelines.

 

“Subordinated
Debt” means, Indebtedness of a Seller which is (a) unsecured, (b) no part of the principal of such Indebtedness is required
to be paid (whether by way of mandatory sinking fund, mandatory redemption, mandatory prepayment or otherwise) prior to the date
which is one year following the Termination Date and (c) the payment of the principal of and interest on such Indebtedness and
other obligations of a Seller in respect of such Indebtedness are subordinated to the prior payment in full of the principal of
and interest (including post-petition obligations) on the Transactions and all other obligations and liabilities of a Seller to
Buyer hereunder on terms and conditions approved in writing by Buyer and all other terms and conditions of which are satisfactory
in form and substance to Buyer.

 

“Subsidiary”
means, with respect to any Person, any corporation, limited liability company, partnership, trust or other entity of which at least
a majority of the securities or other ownership interests having by the terms thereof ordinary voting power to elect a majority
of the board of directors or other persons performing similar functions of such corporation, limited liability company, partnership,
trust or other entity (irrespective of whether or not at the time securities or other ownership interests of any other class or
classes of such corporation, limited liability company, partnership, trust or other entity shall have or might have voting power
by reason of the happening of any contingency) is at the time directly or indirectly owned or controlled by such Person or one
or more Subsidiaries of such Person or by such Person and one or more Subsidiaries of such Person.

 

    	 	- 27 -	 

     

    

 

“Subsidiary
Agreement” means the organizing documents governing REO Subsidiary as contemplated by this Agreement, as the same may
be modified from time to time.

 

“Subsidiary
Certificates” means, collectively, the certificates evidencing 100% of the REO Subsidiary Interests for REO Subsidiary.

 

“Subsidiary
Owned Assets” means all property including Mortgage Loan, Rental Property and REO Property and shall include any Subsidiary
Repurchase Asset related to the foregoing subject to a Transaction, owned by the REO Subsidiary, including those listed on the
related Asset Schedule attached to the related Transaction Request.

 

“Subsidiary
Repurchase Assets” has the meaning set forth in Section 8(a) hereof.

 

“Survey”
means a survey prepared by a surveyor licensed in the state where the Rental Property is located and satisfactory to Buyer and
the company or companies issuing ALTA owner’s title insurance policy, and containing a certification of such surveyor satisfactory
to Buyer.

 

“Take-out Commitment”
means a commitment of Underlying Repurchase Counterparty to either (a) sell one or more identified Mortgage Loans or REO Properties
to a Take-out Investor or (b) (i) swap one or more identified Mortgage Loans or REO Properties with a Take-out Investor that is
an Agency for an Agency Security, and (ii) sell the related Agency Security to a Take-out Investor, and in each case, the corresponding
Take-out Investor’s commitment back to Underlying Repurchase Counterparty to effectuate any of the foregoing, as applicable.
With respect to any Take-out Commitment with an Agency, the applicable agency documents list Buyer as the subscriber to the Agency
Security and such Agency Security is delivered to an account specified by Buyer.

 

“Take-out Investor”
means (a) an Agency, (b) PennyMac Loan Services, LLC or (c) any other institution which has made a Take-out Commitment and has
been approved by Buyer.

 

“Tenant”
means the tenant of a Rental Property named on the related Lease Agreement, together with any guarantor of such tenant’s
obligations under such Lease Agreement.

 

“Tenant Instruction
Notice” means, with respect to a Rental Property that is subject to a Lease Agreement, upon request from Buyer to provide
such notice, the written notice in the form of Exhibit A hereto that is executed by a Property Manager and may be delivered
by Buyer following the occurrence of an Event of Default or a Property Manager Termination Event and termination of a Property
Manager in accordance with Section 12 to each related Tenant informing such Tenant that Buyer or a replacement property
manager has replaced the Property Manager.

 

    	 	- 28 -	 

     

    

 

“Tenant Underwriting
Criteria” means the standards, procedures and guidelines of the REO Subsidiary for the approval of any Tenant, which
are set forth in the written policies and procedures of the REO Subsidiary, a copy of which have been provided to Buyer and such
other criteria as are identified to and approved in writing by Buyer.

 

“Termination
Date” means the earliest of (a) March 30, 2017, and (b) the date of the occurrence of an Event of Default.

 

“Test Period”
means any one fiscal quarter.

 

“TILA-RESPA
Integrated Disclosure Rule” means the Truth-in-Lending Act and Real Estate Settlement Procedures Act Integrated Disclosure
Rule, adopted by the Consumer Finance Protection Bureau, which is effective for residential mortgage loan applications received
on or after October 3, 2015.

 

“Trade Assignment”
means an assignment to Buyer of a forward trade between a Take-out Investor and Underlying Repurchase Counterparty with respect
to one or more Purchased Mortgage Loans that are Pooled Mortgage Loans substantially in the form of Exhibit L hereto.

 

“Transaction”
has the meaning set forth in Section 1 hereof.

 

“Transaction
Request” means a request via email from a Seller to Buyer notifying Buyer that such Seller wishes to enter into a Transaction
hereunder that indicates that it is a Transaction Request under this Agreement.

 

“Trust Receipt”
means, with respect to any Transaction as of any date, a receipt in the form attached as an exhibit to the Custodial Agreement.

 

“Underlying
Electronic Tracking Agreement” means, to the extent applicable, an Electronic Tracking Agreement among an Underlying
Repurchase Counterparty, Buyer, Sellers, MERS and MERSCORP Holdings, Inc., as the same may be amended from time to time.

 

“Underlying
Interest Rate Protection Agreement” means, with respect to any or all of the Purchased Mortgage Loans, any short sale
of a US Treasury Security, or futures contract, or mortgage related security, or Eurodollar futures contract, or options related
contract, or interest rate swap, cap or collar agreement, or similar arrangement providing for protection against fluctuations
in interest rates or the exchange of nominal interest obligations, either generally or under specific contingencies, entered into
by Underlying Repurchase Counterparty.

 

“Underlying
Repurchase Agreement” shall mean the repurchase agreement among PMC, Sellers and Servicer dated as of March 29, 2012
in the form approved by Buyer in writing in its sole discretion with any material modifications approved by Buyer in writing in
its sole discretion (excluding provisions related to the price or pricing rate of such Underlying Repurchase Transactions, which
shall not be subject to Buyer review or approval), as amended, restated, supplemented or otherwise modified from time to time.

 

    	 	- 29 -	 

     

    

 

“Underlying
Repurchase Asset” shall mean, in connection with an Underlying Repurchase Transaction, the Mortgage Loans and the REO
Subsidiary Interests sold by a Seller, including PMC to another Seller, including POP and Pennymac Holdings, thereunder.

 

“Underlying
Repurchase Counterparty” means PennyMac Corp. or any other Affiliate of Sellers approved by Buyer in writing in its sole
discretion and that is joined as a party to the Program Agreements, that has sold, or concurrently with a purchase of a Mortgage
Loan by Buyer hereunder, will sell, such Mortgage Loan to Sellers.

 

“Underlying
Repurchase Counterparty DE Compare Report” means, with respect to any Underlying Repurchase Counterparty, the top of
the three rows of the report entitled “Neighborhood Watch Early Warning System – Single Lender – Direct Endorsement
Lender” and found at https://entp.hud.gov/sfnw/public/. Such report shall be generated using the following criteria:
Mortgagee Selections: “Direct Endorsement Lender;” Delinquent Choices: “Seriously Delinquent;” and 2 Year
Performance Period: “Data as of [END OF MOST RECENT PRIOR MONTH].”

 

“Underlying
Repurchase Counterparty Institution Compare Ratio” has the meaning set forth in the Underlying Repurchase Counterparty
Institution Compare Report.

 

“Underlying
Repurchase Counterparty Institution Compare Report” means, with respect to any Underlying Repurchase Counterparty, the
report entitled “Neighborhood Watch Early Warning System – Single Lender – Originator by Institution”
and found at https://entp.hud.gov/sfnw/public/. Such report shall be generated using the following criteria: Mortgagee Selections:
“Originator by Institution;” Delinquent Choices: “Seriously Delinquent;” and 2 Year Performance Period:
“Data as of [END OF MOST RECENT PRIOR MONTH].”

 

“Underlying
Repurchase Documents” means the Underlying Repurchase Agreement, pricing letter, confirmations and all documents ancillary
thereto that evidence an Underlying Repurchase Transaction in the form approved by Buyer in writing in its sole discretion with
any material modifications approved by Buyer in writing in its sole discretion (excluding provisions related to the price or pricing
rate of such Underlying Repurchase Transactions, which shall not be subject to Buyer review or approval).

 

“Underlying
Repurchase Transaction” means a transaction between a Seller and an Underlying Repurchase Counterparty whereby the Underlying
Repurchase Counterparty sells one or more Mortgage Loans and REO Subsidiary Interests to such Seller against the transfer of funds
by such Seller, with the simultaneous agreement by such Seller to transfer to such Underlying Repurchase Counterparty such Mortgage
Loans and REO Subsidiary Interests at a date certain against the transfer of funds by such Underlying Repurchase Counterparty,
which Mortgage Loans and REO Subsidiary Interests are concurrently or consecutively purchased by Buyer hereunder.

 

    	 	- 30 -	 

     

    

 

“Underwriting
Guidelines” means, with respect to New Origination Mortgage Loans, the standards, procedures and guidelines of the applicable
Underlying Repurchase Counterparty for underwriting Mortgage Loans, as set forth in the written policies and procedures of such
Underlying Repurchase Counterparty, copies of which have been provided to Buyer, and, as applicable, the Fannie Mae Single-Family
Selling and Servicing Guide, the Freddie Mac Single-Family Seller/Servicer Guide, FHA Underwriting Guidelines or VA Underwriting
Guidelines and such other guidelines as are identified and approved in writing by Buyer.

 

“Uniform Commercial
Code” means the Uniform Commercial Code as in effect on the date hereof in the State of New York or the Uniform
Commercial Code as in effect in the applicable jurisdiction.

 

“Unrecorded
REO Property” means REO Property for which the Custodian has not received a copy of the Deed recorded or submitted for
recording into the name of REO Subsidiary, and otherwise meets the criteria set forth in this Agreement.

 

“USDA Loan”
means a first lien Mortgage Loan originated in accordance with the criteria established by and guaranteed by the United States
Department of Agriculture.

 

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

 

“VA Approved
Lender” means a lender which is approved by the VA to act as a lender in connection with the origination of VA Loans.

 

“VA Loan”
means a Mortgage Loan which is subject of a VA Loan Guaranty Agreement as evidenced by a loan guaranty certificate, or a Mortgage
Loan which is a vendor loan sold by the VA.

 

“VA Loan Guaranty
Agreement” means the obligation of the United States to pay a specific percentage of a Mortgage Loan (subject to a maximum
amount) upon default of the Mortgagor pursuant to the Servicemen’s Readjustment Act, as amended.

 

“Warehouse Facility”
means a mortgage loan or REO property warehouse facility, warehouse line of credit (including both on and off balance sheet facilities),
and any other such facility with terms and conditions similar to the terms and conditions of this Agreement and the purpose of
which is to fund the origination and/or purchase of newly originated Mortgage Loans or REO Properties pending sale or securitization.

 

“Wet-Ink Documents”
means, with respect to any Wet-Ink Mortgage Loan, the (a) Transaction Request and (b) the Asset Schedule.

 

“Wet-Ink Mortgage
Loan” means a New Origination Mortgage Loan which a Seller is selling to Buyer simultaneously with the origination thereof.

 

    	 	- 31 -	 

     

    

 

3.Program;
Initiation of Transactions

 

a.Initiation.
On each Purchase Date, Buyer will purchase from POP and PennyMac Holdings the Purchased Assets (accompanied by a pledge of the
related Mortgage Loans that have been either originated by such Sellers or purchased by such Sellers from other originators). On
the initial Purchase Date, PMC and POP have each pledged their rights in and to the REO Subsidiary Interests to Buyer. From time
to time, Seller may request and Buyer may fund additional Purchase Price Increases in connection with the conveyance of REO Properties
or Rental Properties to the REO Subsidiary and the corresponding increases of the Purchase Price on account of the REO Subsidiary
Interests. This Agreement is a commitment by Buyer to enter into Transactions and Purchase Price Increases with Sellers for
an aggregate amount equal to the Maximum Committed Purchase Price. This Agreement is not a commitment by Buyer to enter into Transactions
or Purchase Price Increases with Sellers for amounts exceeding the Maximum Purchase Price, but rather, sets forth the procedures
to be used in connection with periodic requests for Buyer to enter into Transactions or Purchase Price Increases with Sellers.
Each Seller hereby acknowledges that, beyond the applicable Maximum Committed Purchase Price, Buyer is under no obligation to agree
to enter into, or to enter into, any Transaction or Purchase Price Increase pursuant to this Agreement. All Purchased Mortgage
Loans and Contributed Assets shall exceed or meet the Underwriting Guidelines or Acquisition Guidelines, as applicable, and all
Purchased Mortgage Loans and REO Property shall be serviced by a Seller or Servicer, as applicable. All Rental Properties shall
be managed by a Property Manager and shall exceed or meet the Leasing Criteria and Tenant Underwriting Criteria. The aggregate
Purchase Price (adjusted for any Purchase Price Increases or reductions in Purchase Price, as applicable) of then-outstanding Transactions
shall not exceed the Maximum Purchase Price.

 

b.Requests for
Transactions. Sellers shall request that Buyer enter into a Transaction or Purchase Price Increase by delivering to Buyer a
Transaction Request or Purchase Price Increase Request, as applicable, and with respect to Seasoned Mortgage Loans and REO Property,
summary results of due diligence delivered in connection with Section 10(b)(1) of this Agreement, compliance diligence information
and upon request of Buyer, BPO valuation and valuation date for each Mortgage Loan or Contributed Asset, as applicable, a copy
of the BPO and BPO results, in each case in the format mutually agreed to by Buyer and Sellers (i) on or before 3:00 p.m. (New
York City time) on the Purchase Date for Transactions involving Wet-Ink Mortgage Loans and (ii) on or before 12:00 p.m. (New York
City time) (A) five (5) Business Days with respect to Seasoned Mortgage Loans and Contributed Assets, and (B) one (1) Business
Day with respect to New Origination Mortgage Loans, prior to the proposed Purchase Date or Purchase Price Increase Date, as applicable,
for Transactions involving all Mortgage Loans other than Wet-Ink Mortgage Loans; provided that if such REO Property is related
to a Purchased Mortgage Loan that is a Seasoned Mortgage Loan, Sellers shall not be required to deliver an additional BPO at the
time of such Purchase Price Increase, and Sellers shall deliver either (x) to Buyer and Custodian a Request for Certification and
related Asset Schedule, in accordance with the Custodial Agreement or (y) to the extent that such Purchase Price Increase is a
result of a change of Category for a Purchased Mortgage Loan to a REO Property, evidence of such change in Category. In the event
the Asset Schedule provided by Sellers contains erroneous computer data, is not formatted properly or the computer fields are otherwise
improperly aligned, Buyer shall provide written or electronic notice to the applicable Seller describing such error and the applicable
Seller shall correct the computer data, reformat or properly align the computer fields itself and resubmit the Asset Schedule as
required herein. With respect to Seasoned Mortgage Loans and Contributed Assets, Buyer shall review and advise the applicable Seller
in writing of Buyer’s Market Value within four (4) Business Days of receipt of a Transaction Request or Purchase Price Increase
Request, as applicable. Upon Buyer and Sellers’ mutual agreement of the Market Value, Buyer and the applicable Seller shall
enter into a Transaction or Purchase Price Increase, as applicable, within one (1) Business Day of such agreement as set forth
in Section 3(i) hereto

 

    	 	- 32 -	 

     

    

 

c.Transfer of
Interests. Upon the satisfaction of the applicable conditions precedent set forth in Section 10 hereof, all of the applicable
Seller’s interest in the Repurchase Assets shall pass to or be pledged to Buyer, against the transfer of the Purchase Price
for the related Purchased Assets to Sellers. Upon transfer of (i) the Purchased Mortgage Loans to Buyer, (ii) Unrecorded REO Property
to Sellers, the applicable Servicer or any prior owner or prior servicer for whom the applicable Servicer is contractually permitted
to act, all for the benefit of REO Subsidiary, which shall be for the benefit of Buyer, or (iii) Contributed Assets to the REO
Subsidiary, in each case, as set forth in this Section and until termination of any related Transactions or the release of Purchased
Mortgage Loans and/or Contributed Assets as set forth in Sections 4 or 16 of this Agreement, beneficial ownership
in the related Purchased Mortgage Loans and Contributed Assets, including each document in the related Asset File and Records,
is vested in Buyer; provided that, prior to the recordation by the Custodian as provided for in the Custodial Agreement
(i) with respect to Purchased Mortgage Loans, record title in the name of Underlying Repurchase Counterparty to each Mortgage shall
be retained by Underlying Repurchase Counterparty in trust, for the benefit of Buyer, for the sole purpose of facilitating the
servicing and the supervision of the servicing of the Purchased Mortgage Loans, (ii) with respect to Contributed Assets, record
title in the name of the REO Subsidiary to each Contributed Asset shall be retained by the REO Subsidiary in trust pursuant to
the applicable Subsidiary Agreement for the benefit of Buyer, as owner of the REO Subsidiary Interests, for the sole purpose of
facilitating the administration of the Contributed Asset, (iii) with respect to each Unrecorded REO Property, in which the
legal title may be in the name of Sellers, Servicers or any prior owner or prior servicer for whom the applicable Servicer is contractually
permitted to act, all for the benefit of the REO Subsidiary, and (iv) with respect to each Contributed Asset other than Unrecorded
REO Property, upon transfer of such Contributed Asset to the REO Subsidiary as set forth in this Section and until termination
of the Transaction (or release of the Contributed Asset upon payment of the related Optional Partial Prepayment) as set forth in
Sections 4 or 16 of this Agreement, ownership of such Contributed Asset, including each document in the related Asset
File and Records, is vested in the REO Subsidiary; provided that, prior to the recordation as provided for in the Custodial Agreement
(a) with respect to Contributed Assets other than Unrecorded REO Properties, record title in the name of the REO Subsidiary to
each Contributed Asset shall be retained by the REO Subsidiary in accordance with the applicable Subsidiary Agreement and (b) with
respect to Unrecorded REO Property, record title in the name of the applicable Seller, Servicer or any prior owner or prior servicer
for whom the applicable Servicer is contractually permitted to act to each REO Property shall be retained in trust for the REO
Subsidiary, and promptly transferred to the REO Subsidiary to be held in accordance with the applicable Subsidiary Agreement but
subject to the requirements of this Agreement.

 

    	 	- 33 -	 

     

    

 

d.Delivery of
Asset File. With respect to Mortgage Loans that are not Wet-Ink Mortgage Loans, Sellers shall cause the delivery of the Asset
File to the Custodian, as more particularly set forth in the Custodial Agreement.

 

e.Delivery of
Asset File with respect to Wet-Ink Mortgage Loans. With respect to each Wet-Ink Mortgage Loan, by no later than the seventh
(7th) Business Day following the applicable Purchase Date, Sellers shall cause the related Settlement Agent to deliver
to the Custodian the remaining documents in the Asset File, as more particularly set forth in the Custodial Agreement.

 

f.Ownership of
REO Subsidiary Interests. Upon transfer of the REO Subsidiary Interests to Buyer as set forth herein and until termination
of such Transaction as set forth herein, ownership of the REO Subsidiary Interests is vested in the Buyer, and record title (i)
to each Contributed Asset (subject to exceptions permitted for Unrecorded REO Property) shall be retained by REO Subsidiary, and
(ii) to each Unrecorded REO Property shall be retained by the applicable Servicer, a Seller, or any prior owner or prior servicer
for whom the applicable Servicer is contractually permitted to act in trust, for the benefit of REO Subsidiary, which shall be
for the benefit of Buyer provided that with respect to any Unrecorded REO Property in the name of a Seller, the applicable Servicer,
or any prior owner or prior servicer for whom the applicable Servicer is contractually permitted to act, Sellers shall deliver
or cause to be delivered to the applicable county recorder’s office (with a copy to Custodian) a Deed in the name of REO
Subsidiary within the period of time generally necessary in the applicable jurisdiction for the applicable Servicer, acting in
accordance with the Servicing Guidelines, to (i) receive the Deed into the name of such party, (ii) review such Deed and perform
all necessary title work with respect to the related property and (iii) prepare the new Deed to REO Subsidiary.

 

g.Underlying Repurchase
Transactions.

 

    	 	- 34 -	 

     

    

 

(1)With respect
to a Mortgage Loan that is subject to a Transaction, in the event that such Mortgage Loan is sold by an Underlying Repurchase Counterparty
to a Seller under the Underlying Repurchase Documents, such Mortgage Loan may be sold under the Underlying Repurchase Documents
as an Underlying Repurchase Asset and such Seller shall provide notice thereof to Buyer, and from and after the related Purchase
Date, the selling Seller shall be deemed to have paid the Repurchase Price of such Mortgage Loan hereunder, the selling Seller
shall be deemed to have sold such Underlying Repurchase Asset to the Underlying Repurchase Counterparty under the Underlying Repurchase
Documents, Buyer shall be deemed to have paid the Purchase Price for such Mortgage Loan as a Purchased Mortgage Loan to the purchasing
Seller hereunder and the Transaction governing such Purchased Mortgage Loan shall be between such purchasing Seller and Buyer hereunder.
For the avoidance of doubt, any Mortgage Loan made subject to a Transaction by a Seller and Buyer that is subsequently sold by
such Seller to Underlying Repurchase Counterparty, and thereafter becomes subject to a Underlying Repurchase Transaction under
the Underlying Repurchase Documents as a Underlying Repurchase Asset shall, on the related Purchase Date, be replaced by such Underlying
Repurchase Asset as the Purchased Mortgage Loan, which Underlying Repurchase Asset shall automatically become subject to the Transaction
to which the Mortgage Loan was subject.

 

(2)On each Purchase
Date with respect to any Mortgage Loan or REO Subsidiary Interest subject to an Underlying Repurchase Transaction, the related
Seller will be deemed to make the representations and warranties hereto with respect to such Mortgage Loan or REO Subsidiary Interest
as set forth in Schedule 1, Part II attached hereto.

 

(3)Each Seller
hereby agrees and acknowledges that any Underlying Repurchase Transaction is subject to and subordinate to Buyer’s rights
hereunder and Buyer’s security interest in the Purchased Mortgage Loans, the REO Subsidiary Interests and Buyer’s rights
under the related Transaction.

 

4.Repurchase

 

a.Sellers shall repurchase
from Buyer the related Purchased Assets on each related Repurchase Date. Such obligation to repurchase exists without regard to
any prior or intervening liquidation or foreclosure with respect to any Purchased Mortgage Loan or Contributed Asset (but liquidation
or foreclosure proceeds received by Buyer shall be applied to reduce the Repurchase Price for the related Purchased Mortgage Loans
or REO Subsidiary Interests on each Payment Date except as otherwise provided herein). Sellers are obligated to repurchase and
take physical possession of the Purchased Mortgage Loans and Contributed Assets, as applicable, from Buyer or its designee (including
the Custodian) then in Buyer’s or its designee’s possession at Sellers’ expense on the related Repurchase Date.

 

    	 	- 35 -	 

     

    

 

b.When the Purchased
Mortgage Loans or the Contributed Assets supporting a portion of the Purchase Price of the Transaction related to the REO Subsidiary
Interests are desired by a Seller to be released, sold or otherwise liquidated, such Seller shall make payment to Buyer in order
to prepay the Allocated Repurchase Price (a “Optional Partial Prepayment”) in an amount equal to the Allocated
Repurchase Price on each date such Purchased Mortgage Loan Contributed Asset is desired to be sold or otherwise liquidated (each,
a “Optional Partial Prepayment Date”). Such payment shall serve as a partial prepayment of the Repurchase Price
in connection with the Transaction in respect of the Purchased Mortgage Loans or REO Subsidiary Interests, as applicable, in order
to avoid a Margin Deficit. Such obligation to pay the Optional Partial Prepayment exists without regard to any prior or intervening
liquidation or foreclosure with respect to any Purchased Mortgage Loan or Contributed Asset. Sellers are obligated to pay the Optional
Partial Prepayment and take physical possession of the Purchased Mortgage Loans or Contributed Assets, as applicable, giving rise
to the Optional Partial Prepayment, from in the case of Contributed Assets, the REO Subsidiary or its designee (including the Custodian)
at Sellers’ expense on the related Optional Partial Prepayment Date.

 

c.Provided that no
Default shall have occurred and is continuing, and Buyer has received the related Repurchase Price upon repurchase of the Purchased
Assets or release of Contributed Assets from the REO Subsidiary, Buyer agrees to release (or permit the release of), as applicable,
its ownership interest hereunder in the Purchased Mortgage Loans, or lien on the Contributed Assets or REO Subsidiary Interests,
or the Repurchase Assets related thereto, as applicable. The applicable Purchased Mortgage Loans, Contributed Assets or the Repurchase
Assets related thereto, as applicable, shall be retransferred by delivery to the applicable Seller or the designee of such Seller
free and clear of any lien, encumbrance or claim of Buyer. Provided that no Default shall have occurred and be continuing, and
Buyer has received the applicable Optional Partial Prepayment, Buyer agrees to permit the release from the REO Subsidiary of the
Contributed Asset attributable to such Optional Partial Prepayment (including, the Repurchase Assets related thereto) at the request
of Sellers. The applicable Purchased Mortgage Loan or Contributed Asset and the Repurchase Assets related thereto, shall be delivered
to the applicable Seller or the designee of such Seller free and clear of any lien, encumbrance or claim of Buyer or REO Subsidiary.

 

d.With respect to
a Liquidated Asset, Sellers agree to (i) provide Buyer with a copy of a report from the related Servicer indicating that such
Purchased Mortgage Loan or Contributed Asset has been liquidated, (ii) cause the applicable Servicer to, (x) if such Liquidated
Asset is a Purchased Mortgage Loan, remit to the Servicer Account, immediately upon the applicable Servicer’s receipt of
the proceeds, the Repurchase Price, with respect to such Liquidated Asset and thereafter cause the applicable Servicer to remit
such proceeds to the Collection Account within two (2) Business Days and (y) if such Liquidated Asset is a Contributed Asset remit
the Optional Partial Prepayment in accordance with Section 4(b) and (iii) provide Buyer a notice specifying each Purchased
Mortgage Loan or Contributed Asset that has been liquidated. Buyer agrees to release its lien on such Liquidated Asset and permit
the release of the Liquidated Asset from REO Subsidiary concurrently with receipt of confirmation that proceeds have been received
by the applicable Servicer. All amounts on deposit in the REO Subsidiary Accounts shall be remitted to the Collection Account on
each Payment Date in accordance with the terms of the applicable Subsidiary Agreement.

 

    	 	- 36 -	 

     

    

 

e.Promptly upon a
Purchased Mortgage Loan becoming an REO Property, (a) Sellers shall (i) notify Buyer in writing that such Purchased Mortgage Loan
has become a REO Property and the value attributed to such REO Property by Sellers, (ii) deliver to Buyer and Custodian an Asset
Schedule with respect to such REO Property, (iii) be deemed to make the representations and warranties listed on Schedule 1,
Part IV hereto with respect to such REO Property; and (iv) without limiting the requirements set forth in the definition
of Market Value, deliver to Buyer a true and complete copy of a BPO of such REO Property no less frequently than once per 180 day
period, and (b) solely with respect to a Purchased Mortgage Loan becoming a REO Property (i) such REO Property shall automatically
and immediately be deemed contributed or sold by the Seller that owns it to the REO Subsidiary, and (ii) such REO Property shall
be deemed a REO Property owned by the REO Subsidiary hereunder and its Market Value as determined by Buyer shall be included in
the Market Value of the REO Subsidiary Interests. The acquisition of such REO Property by the REO Subsidiary shall result in an
increase in the value of the REO Subsidiary Interests (as determined in accordance with the definition of Market Value) of the
REO Subsidiary against a decrease in value of the Purchased Mortgage Loan and any Purchase Price Increase or Margin Deficit attributed
to any change in Category shall be paid by the Buyer or Sellers as applicable, in accordance with this Agreement.

 

f.Promptly upon a
REO Property becoming a Rental Property, Sellers shall (i) notify Buyer in writing that such REO Property has become a Rental Property
and the value attributed to such Rental Property by Sellers, (ii) deliver to Buyer and Custodian an Asset Schedule with respect
to such Rental Property, (iii) be deemed to make the representations and warranties listed on Schedule 1, Part VI
hereto with respect to such Rental Property; (iv) without limiting the requirements set forth in the definition of Asset Value,
deliver to Buyer a true and complete copy of a BPO of such Rental Property no less frequently than once per 180 day period. The
conversion of such Rental Property shall result in an applicable change in the value of the REO Subsidiary Interests (as determined
in accordance with the definition of Asset Value) of such REO Subsidiary and any Margin Deficit attributed to any change in Category
shall be paid by the Buyer or Sellers, as applicable.

 

5.Price Differential

 

a.On each Business
Day that a Transaction is outstanding, the Pricing Rate shall be reset and, unless otherwise agreed, the accrued and unpaid Price
Differential shall be settled in cash on each related Payment Date. Two (2) Business Days prior to the Payment Date, Buyer shall
give Sellers written or electronic notice of the amount of the Price Differential due on such Payment Date. On the Payment Date,
Sellers shall pay to Buyer the Price Differential for such Payment Date (along with any other amounts to be paid pursuant to Sections
7 and 34 hereof), by wire transfer in immediately available funds.

 

    	 	- 37 -	 

     

    

 

b.If Sellers fail
to pay all or part of the Price Differential by 3:00 p.m. (New York City time) on the related Payment Date, with respect to any
Purchased Mortgage Loan or Contributed Asset, Sellers shall be obligated to pay to Buyer (in addition to, and together with, the
amount of such Price Differential) interest on the unpaid Repurchase Price at a rate per annum equal to the Post-Default Rate until
the Price Differential is received in full by Buyer.

 

6.Margin Maintenance

 

a.If at any time
the outstanding Purchase Price of any Purchased Mortgage Loan or allocated to any Contributed Asset underlying a REO Subsidiary
Interest subject to a Transaction is greater than the Asset Value of such Purchased Mortgage Loan or Contributed Asset underlying
a REO Subsidiary Interest subject to a Transaction (a “Margin Deficit”), then Buyer may by notice to Sellers
require Sellers to transfer to Buyer cash in an amount at least equal to the Margin Deficit subject to or related to a Transaction
or solely with the consent of Buyer in its sole discretion, additional Mortgage Loans or Contributed Assets with an Asset Value
equal to such Margin Deficit (such requirement, a “Margin Call”).

 

b.Notice delivered
pursuant to Section 6(a) may be given by any written or electronic means. With respect to a Margin Call in the amount of less
than 5% of the Purchase Price for all Transactions (a “Low Percentage Margin Call”), any notice given before
5:00 p.m. (New York City time) on a Business Day shall be met, and the related Margin Call satisfied, no later than 5:00 p.m. (New
York City time) on the following Business Day; notice given after 5:00 p.m. (New York City time) on a Business Day shall be met,
and the related Margin Call satisfied, no later than 5:00 p.m. (New York City time) on the second Business Day following the date
of such notice. With respect to all Margin Calls other than Low Percentage Margin Calls, any notice given before 10:00 a.m. (New
York City time) on a Business Day shall be met, and the related Margin Call satisfied, no later than 5:00 p.m. (New York City time)
on such Business Day; notice given after 10:00 a.m. (New York City time) on a Business Day shall be met, and the related Margin
Call satisfied, no later than 5:00 p.m. (New York City time) on the following Business Day (the foregoing time requirements for
satisfaction of a Margin Call are referred to as the “Margin Deadlines”). The failure of Buyer, on any one or
more occasions, to exercise its rights hereunder, shall not change or alter the terms and conditions to which this Agreement is
subject or limit the right of Buyer to do so at a later date. Each Seller and Buyer each agree that a failure or delay by Buyer
to exercise its rights hereunder shall not limit or waive Buyer’s rights under this Agreement or otherwise existing by law
or in any way create additional rights for a Seller.

 

    	 	- 38 -	 

     

    

 

c.In the event that
a Margin Deficit exists with respect to any Purchased Mortgage Loan or Contributed Asset, Buyer may retain any funds received by
it to which the Sellers would otherwise be entitled hereunder, which funds (i) shall be held by Buyer against the related Margin
Deficit for a Purchased Mortgage Loan or Contributed Asset and (ii) will be applied by Buyer against the Allocated Repurchase Price
related to such Purchased Mortgage Loan or Contributed Asset for which the related Margin Deficit remains otherwise unsatisfied.
Notwithstanding the foregoing, the Buyer retains the right, in its sole discretion, to make a Margin Call in accordance with the
provisions of this Section 6.

 

d.In the event that
Sellers reasonably believe that the Asset Value of all Purchased Assets exceeds the aggregate Purchase Price of all Purchased Assets
by more than $3,000,000, Sellers may request that Buyer remit additional Purchase Price with respect to specific Purchased Assets
to be identified by Sellers to Buyer, and Buyer will consider such request; provided that Buyer will make such determination in
its sole discretion. Any additional Purchase Price remitted by Buyer to Sellers hereunder (and in the case of Contributed Assets,
Purchase Price Increase) shall be added to the Purchase Price for the applicable Purchased Assets. For the avoidance of doubt,
Buyer shall have no obligation to advance additional Purchase Price hereunder, and Buyer’s agreement to do so in any instance,
shall not be deemed as Buyer’s agreement to do so in the future.

 

7.Income Payments

 

a.All Income received
on account of the Purchased Mortgage Loans, Contributed Assets or Subsidiary Certificates during the term of a Transaction shall
be the property of Buyer. Sellers shall and shall cause (i) the applicable Servicer to deposit all Income with respect to Purchased
Mortgage Loans other than New Origination Mortgage Loans into the Collection Account within two (2) Business Days following receipt
by any Seller, the Underlying Repurchase Counterparty or the applicable Servicer and the Underlying Repurchase Counterparty, (ii)
the applicable Servicer to deposit all REO Subsidiary Income into the REO Subsidiary Account within two (2) Business Days following
receipt by REO Subsidiary or a Servicer, as applicable, and (iii) the Property Manager to deposit all Income received with respect
to the Subsidiary Certificates for the REO Subsidiary and Rental Properties during the immediately preceding calendar month into
the REO Subsidiary Account within five (5) Business Days of receipt thereof; provided, however, that notwithstanding
the foregoing, the applicable Servicer shall be entitled to retain Ancillary Income to which it is entitled under the applicable
Servicing Agreement, without any obligation to deposit such Income into the Collection Account or a REO Subsidiary Account.

 

b.Provided no Event
of Default has occurred and is continuing, on each Payment Date, (i) Buyer shall cause the Seller Parties or Property Manager,
as applicable, to remit all amounts collected on account of Rental Properties and the REO Subsidiary Account to the Collection
Account, and (ii) Buyer shall, or shall direct the Bank to, remit amounts with respect to Contributed Assets and Seasoned Mortgage
Loans, on deposit in the Collection Account as follows:

 

    	 	- 39 -	 

     

    

 

(1)first, to Buyer
in payment of any accrued and unpaid Price Differential, to the extent not paid by Sellers to Buyer pursuant to Section 5;

 

(2)second, to Buyer
in reduction of the Repurchase Price or Allocated Repurchase Price of any Liquidated Asset, an amount equal to the lesser of (x)
Liquidation Proceeds received on or with respect to such Liquidated Asset or (y) Repurchase Price or Allocated Repurchase Price
of such Liquidated Asset;

 

(3)third, without
limiting the rights of Buyer under Section 6 of this Agreement, to Buyer, in the amount of any unpaid Margin Deficit;

 

(4)fourth, to the
payment of all other costs and fees payable to Buyer pursuant to this Agreement; and

 

(5)fifth, to deposit
into the REO Subsidiary Account, an amount equal to the REO Subsidiary Account Required Balance;

 

(6)sixth, only to
the extent of amounts then remaining on deposit in the Collection Account, to the payment of reasonable and actual fees and unreimbursed
advances of the applicable Servicer attributable to the Purchased Mortgage Loans, Rental Properties or REO Properties, as applicable;
and

 

(7)seventh, to Sellers,
any remaining amounts.

 

c. Notwithstanding
any provision to the contrary in this Section 7, within two (2) Business Days of receipt by Sellers or Underlying Repurchase
Counterparty of any prepayment of principal in full, with respect to a Purchased Mortgage Loan, Sellers shall remit or cause to
be remitted such amount to Buyer and Buyer shall immediately apply any such amount received by Buyer to reduce the amount of the
Repurchase Price due upon termination of the related Transaction.

 

d.Notwithstanding
any provision to the contrary in this Section 7, upon the occurrence and continuance of an Event of Default or on the Termination
Date all Income shall be remitted to Buyer for application to the aggregate Repurchase Price and any Obligations as Buyer deems
appropriate.

 

8.Security
Interest 

 

a.Security Interest.

 

    	 	- 40 -	 

     

    

 

(1)On the applicable
Purchase Date on or prior to the date hereof, Sellers sold, assigned, and conveyed all right, title and interest in REO Subsidiary
Interests and all Purchased Assets identified on a Transaction Request and/or Trust Receipt, including, without limitation, the
beneficial interest in Purchased Mortgage Loans and Contributed Assets identified on the related Asset Schedule, and the related
Repurchase Assets. On each subsequent Purchase Date, Sellers hereby sell, assign and convey all right, title and interest in all
Purchased Assets identified on a Transaction Request and/or Trust Receipt and the related Repurchase Assets, including, without
limitation, the beneficial interest in Purchased Mortgage Loans and Contributed Assets identified on the related Asset Schedule,
and the related Repurchase Assets. Although the parties intend that all Transactions hereunder be sales and purchases and not loans,
in the event any such Transactions are deemed to be loans, and in any event, each Seller hereby pledges to Buyer as security for
the performance of the Obligations and hereby grants, assigns and pledges to Buyer a fully perfected first priority security interest
in the Purchased Assets, including, without limitation, the beneficial interest in Purchased Mortgage Loans and Contributed Assets
identified on the related Asset Schedule, any Agency Security or right to receive such Agency Security when issued to the extent
backed by any of the Purchased Mortgage Loans and Contributed Assets, the Records (including, without limitation, any other collateral
pledged or otherwise relating to the Rental Properties, together with all files, material documents, instruments, surveys, certificates,
correspondence, appraisals, computer records, computer storage, accounting records and other books and records relating thereto),
and all related Servicing Rights, Property Management Rights, the Program Agreements (to the extent such Program Agreements and
each Seller’s right thereunder relate to the Purchased Mortgage Loans or Contributed Assets), all SFR Property Documents
relating to the Rental Property, all Lease Agreements relating to the Rental Property, any related Take-out Commitments, the Collection
Account, the REO Subsidiary Account, the Deposit Account, the Securities Account and all amounts deposited therein, the obligations
of each Seller to deliver and convey each Contributed Asset to REO Subsidiary, any Property relating to the Purchased Mortgage
Loans or Contributed Assets, all insurance policies and insurance proceeds relating to any Purchased Mortgage Loans or Contributed
Assets, or the related Mortgaged Property, including, but not limited to, any payments or proceeds under any related primary insurance,
hazard insurance and FHA Mortgage Insurance Contracts and VA Loan Guaranty Agreements (if any), Income, Underlying Interest Rate
Protection Agreements to the extent of the Purchased Assets protected thereby, accounts (including any interest of each Seller
in escrow accounts) related to the Purchased Assets, all of each Seller’s right, title and interest in, to and under the
Underlying Repurchase Transactions and all of each Seller’s rights against and in respect of the Underlying Repurchase Counterparties
related to the Underlying Repurchase Transactions, and any other contract rights, instruments, accounts, payments, rights to payment
(including payments of interest or finance charges), dividends, general intangibles and other assets relating to the Purchased
Mortgage Loans or Contributed Assets, (including, without limitation, any other accounts) or any interest in the Purchased Mortgage
Loans or Contributed Assets, and any proceeds (including the related securitization proceeds) and distributions with respect to
any of the foregoing and any other property, rights, title or interests as are specified on a Transaction Request and/or Trust
Receipt, in all instances, whether now owned or hereafter acquired, now existing or hereafter created (collectively, the “Seller
Repurchase Assets”).

 

    	 	- 41 -	 

     

    

 

(2)In order to further
secure the Obligations hereunder, PMC hereby grants, assigns and pledges to Buyer a fully perfected first priority security interest
in all of PMC’s right, title and interest in, to and under the Underlying Repurchase Assets subject to an Underlying Repurchase
Transaction, Repurchase Assets (as such term is defined in the Underlying Repurchase Documents), any Agency Security or right to
receive such Agency Security when issued to the extent backed by any of the Underlying Repurchase Assets, the Records (including,
without limitation, any other collateral pledged or otherwise relating to the Rental Properties, together with all files, material
documents, instruments, surveys, certificates, correspondence, appraisals, computer records, computer storage, accounting records
and other books and records relating thereto), and all related Servicing Rights, Property Management Rights, the Program Agreements
(to the extent such Program Agreements and each Seller’s right thereunder relate to the Purchased Assets), all documents
relating to the Rental Property, all Lease Agreements relating to the Rental Property, any related Take-out Commitments, the Collection
Account, the REO Subsidiary Account, the Deposit Account, the Securities Account and all amounts deposited therein, any Property
relating to the Underlying Repurchase Assets, all insurance policies and insurance proceeds relating to any Underlying Repurchase
Asset or the related Mortgaged Property, including, but not limited to, any payments or proceeds under any related primary insurance,
hazard insurance and FHA Mortgage Insurance Contracts and VA Loan Guaranty Agreements (if any), Income, Underlying Interest Rate
Protection Agreements to the extent of the Underlying Repurchase Assets protected thereby, accounts (including any interest of
PMC in escrow accounts) related to the Underlying Repurchase Assets, and any other contract rights, instruments, accounts, payments,
rights to payment (including payments of interest or finance charges), dividends, general intangibles and other assets relating
to the Underlying Repurchase Assets (including, without limitation, any other accounts) or any interest in the Underlying Repurchase
Assets, and any proceeds (including the related securitization proceeds) and distributions with respect to any of the foregoing
and any other property, rights, title or interests as are specified on a Transaction Request and/or Trust Receipt, in all instances,
whether now owned or hereafter acquired, now existing or hereafter created (collectively, the “Underlying Transaction
Repurchase Assets”).

 

    	 	- 42 -	 

     

    

 

(3)In order to further
secure the Obligations hereunder, REO Subsidiary hereby grants, assigns and pledges to Buyer a fully perfected first priority security
interest in the Subsidiary Owned Assets, the Records (including, without limitation, any other collateral pledged or otherwise
relating to the Rental Properties, together with all files, material documents, instruments, surveys, certificates, correspondence,
appraisals, computer records, computer storage, accounting records and other books and records relating thereto), and all related
Servicing Rights, Property Management Rights, the Security Deposits, the Program Agreements (to the extent such Program Agreements
and each Seller’s right thereunder relate to the Purchased Assets), all SFR Property Documents relating to the Rental Property,
all Lease Agreements relating to the Rental Property, any related Take-out Commitments, the Collection Account, the REO Subsidiary
Account, the Deposit Account, the Securities Account and all amounts deposited therein, the obligations of each Seller to deliver
and convey each Contributed Asset to REO Subsidiary, any Property relating to the Subsidiary Owned Assets, all insurance policies
and insurance proceeds relating to any Subsidiary Owned Asset or the related Mortgaged Property, including, but not limited to,
any payments or proceeds under any related primary insurance, hazard insurance and FHA Mortgage Insurance Contracts and VA Loan
Guaranty Agreements (if any), Income, Underlying Interest Rate Protection Agreements to the extent of the Subsidiary Owned Assets
protected thereby, accounts (including any interest of REO Subsidiary in escrow accounts) related to the Subsidiary Owned Assets,
and any other contract rights, instruments, accounts, payments, rights to payment (including payments of interest or finance charges),
dividends, general intangibles and other assets relating to the Subsidiary Owned Assets (including, without limitation, any other
accounts) or any interest in the Subsidiary Owned Assets, and any proceeds (including the related securitization proceeds) and
distributions with respect to any of the foregoing and any other property, rights, title or interests as are specified on a Transaction
Request and/or Trust Receipt, in all instances, whether now owned or hereafter acquired, now existing or hereafter created (collectively,
the “Subsidiary Repurchase Assets”, together with the Seller Repurchase Assets and the Underlying Transaction
Repurchase Assets, the “Repurchase Assets”).

 

b.Release of Servicing
Rights. The Sellers and Guarantors each acknowledge that none of them, nor any Underlying Repurchase Counterparty has rights
to service the Purchased Mortgage Loans or REO Properties but only has rights as a party to any Servicing Agreement. Without limiting
the generality of the foregoing and in the event that the Sellers or Guarantors are deemed to retain any residual Servicing Rights,
and for the avoidance of doubt, each of Sellers and Guarantors grants, assigns and pledges to Buyer a security interest in the
Servicing Rights and proceeds related thereto and in all instances, whether now owned or hereafter acquired, now existing or hereafter
created.

 

c.Intent.
The foregoing provisions (a) and (b) are intended to constitute a security agreement or other arrangement or other credit enhancement
related to this Agreement and Transactions hereunder as defined under Sections 101(47)(A)(v) and 741(7)(A)(xi) of the Bankruptcy
Code.

 

    	 	- 43 -	 

     

    

 

d.Financing Statements.
Each Seller Party agrees to execute, deliver and/or file such documents and perform such acts as may be reasonably necessary to
fully perfect Buyer’s security interest created hereby. Furthermore, each Seller Party hereby authorizes the Buyer to file
financing statements relating to the Repurchase Assets, as the Buyer, at its option, may deem appropriate. The Sellers shall pay
the filing costs for any financing statement or statements prepared pursuant to this Section 8. For the avoidance of doubt, the
parties hereto agree that no mortgage on real property will be filed with respect to such security interest.

 

e.Subordination.
Each Seller acknowledges and agrees that its rights with respect to the Repurchase Assets (including without limitation its security
interest in the Purchased Assets and Contributed Assets and any other collateral purchased by such Seller in an Underlying Repurchase
Transaction and in which a security interest is granted to Buyer pursuant to this Section 8) are and shall continue to be at all
times junior and subordinate to the rights of Buyer under this Agreement. Each Seller agrees that it will provide notice of any
action it takes with respect to the Repurchase Assets at any time any such Repurchase Assets are owned by or pledged to Buyer under
this Agreement. In furtherance of the foregoing, each Seller acknowledges and agrees that the grants given by REO Subsidiary are
directly in favor of Buyer and no Seller that is party to an Underlying Repurchase Transaction has any claim to the assets of REO
Subsidiary granted hereunder.

 

f.Acquisition
of REO Property. If the Sellers shall acquire, or contemplate the acquisition of, any REO Property, or desire to extinguish
any Mortgage Note in connection with the foreclosure of the related Mortgage Loan, a transfer of the real property underlying the
Mortgage Note in lieu of foreclosure or other transfer of such real property, the Sellers shall cause such real property to be
taken by deed, or by means of such instruments as is provided by the Governmental Authority governing the transfer, or right to
request transfer and issuance of the deed, or such instrument as is provided by the related Governmental Authority, or to be acquired
through foreclosure sale in the jurisdiction in which the REO Property is located, in the name of the REO Subsidiary; provided
that each Seller or the applicable Servicer may achieve this by initially taking such REO Property in its own name or in the name
of any prior owner or prior servicer for whom the applicable Servicer is contractually permitted to act, and then transferring
(and hereby covenants to transfer) such REO Property to the REO Subsidiary by deed within the period of time generally necessary
in the applicable jurisdiction for the applicable Servicer.

 

g.REO Subsidiary
Interests as Securities. The parties acknowledge and agree that the REO Subsidiary Interests shall constitute and remain “securities”
as defined in Section 8-102 of the Uniform Commercial Code; PMC covenants and agrees that (i) the REO Subsidiary Interests are
not and will not be dealt in or traded on securities exchanges or securities markets, and (ii) the REO Subsidiary Interests are
not and will not be investment company securities within the meaning of Section 8-103 of the Uniform Commercial Code. PMC shall,
at Sellers’ sole cost and expense, take all steps as may be reasonably necessary in connection with the indorsement, transfer,
delivery and pledge of all REO Subsidiary Interests to Buyer.

 

    	 	- 44 -	 

     

    

 

h.Additional Interests.
If PMC shall, as a result of ownership of the REO Subsidiary Interests become entitled to receive or shall receive any certificate
evidencing any REO Subsidiary Interest or other equity interest, any option rights, or any equity interest in REO Subsidiary, whether
in addition to, in substitution for, as a conversion of, or in exchange for the REO Subsidiary Interests, or otherwise in respect
thereof, PMC shall accept the same as agent for Buyer, hold the same in trust for the Buyer and deliver the same forthwith to the
Buyer in the exact form received, duly indorsed by PMC to the Buyer, if required, together with an undated transfer power, if required,
covering such certificate duly executed in blank, to be held by the Buyer subject to the terms hereof as additional security for
the Obligations. Any sums paid upon or in respect of the REO Subsidiary Interests upon the liquidation or dissolution of REO Subsidiary
shall be paid over to the Buyer as additional security for the Obligations. If following the occurrence and during the continuation
of an Event of Default any sums of money or property so paid or distributed in respect of the REO Subsidiary Interests shall be
received by PMC, PMC shall, until such money or property is paid or delivered to the Buyer, hold such money or property in trust
for the Buyer segregated from other funds of PMC as additional security for the Obligations.

 

i.Voting
Rights. Subject to this Section, Buyer as the holder shall exercise all voting and member rights with respect to the Repurchase
Assets, provided that, unless an Event of Default has occurred and is continuing, Buyer (i) shall not exercise any voting or member
right with respect to the Repurchase Assets without giving Sellers prior written notice (which may be in the form of an email
transmission and which notice shall describe the contemplated action); provided that, to the extent that any voting or member
action is in response to a request by a Seller or an Affiliate of Seller, such notice may be in the form of a response to such
request; and provided further that Buyer shall not be liable to the Seller for any failure to deliver such notice to the extent
that such failure is not due to bad faith or willful misconduct on the part of the Buyer, and (ii) shall exercise all such voting
and member rights as instructed by Sellers unless Buyer shall determine in its good faith discretion that such exercise in accordance
with such instruction would otherwise result in a breach of a provision of this Agreement, an Event of Default under this Agreement
or would adversely affect the Buyer’s rights or interests under this Agreement or with respect to the REO Subsidiary Interests
or Repurchase Assets. Without limiting the generality of the foregoing, Buyer may in its sole discretion (x) remove a Servicer
or Program Manager, as applicable, or terminate a Servicing Agreement or Program Management Agreement, as applicable, in connection
with a default by a Servicer or Program Manager, as applicable, or (y) consent or refuse to consent to a waiver of a material
breach or consent or refuse to consent to a material modification of a Servicing Agreement or Program Management Agreement, as
applicable. In no event shall Buyer be required to cast any vote or exercise any member right or take other action which would
impair the Repurchase Assets or the REO Subsidiary Interests, as applicable, or which would be inconsistent with or result in
a violation of any provision of this Agreement. Without limiting the generality of the foregoing, Buyer shall have no obligation
to (a) vote to enable, or take any other action to permit REO Subsidiary to issue any interests of any nature or to issue any
other interests convertible into or granting the right to purchase or exchange for any interests of such entity, or (b) sell,
assign, transfer, exchange or otherwise dispose of, or grant any option with respect to the REO Subsidiary Interests or (c) create,
incur or permit to exist any Lien or option in favor of, or any claim of any Person with respect to, the Sellers’ or REO
Subsidiary’s interest in the Repurchase Assets except for the Lien provided for by this Agreement, or (d) except as provided
in this Agreement, enter into any agreement or undertaking restricting the right or ability of Sellers or REO Subsidiary to sell,
assign or transfer the Repurchase Assets.

 

    	 	- 45 -	 

     

    

 

j.REO
Subsidiary Interests. Notwithstanding any provision to the contrary herein or in any other Program Agreement, the Seller Parties
and Buyer hereby acknowledge and agree that (i) the issuance or reissuance of the REO Subsidiary Interests in Buyer’s name
is for the sole purpose of perfecting Buyer’s security interest hereunder in the REO Subsidiary Interests (by means of “control”
under Section 8-106(b)(2) of the Uniform Commercial Code) and for otherwise exercising its rights as permitted under this Agreement,
and (ii) the security interest in the REO Subsidiary Interests granted hereunder shall constitute a security interest in all legal
and beneficial interest in and to such REO Subsidiary Interests but not a sale or transfer of such legal and beneficial interest
in and to such REO Subsidiary Interest.

 

9.Payment
and Transfer

 

Unless otherwise mutually
agreed in writing, all transfers of funds to be made by Sellers hereunder shall be made in Dollars, in immediately available funds,
without deduction, set-off or counterclaim, to Buyer at the following account maintained by Buyer: Account No. 30910312, for the
account of CSFB Buyer/PennyMac Holdings, LLC/PennyMac Operating Partnership, L.P.-Inbound Account, Citibank, ABA No. 021 000 089
or such other account as Buyer shall specify to Sellers in writing. Each Seller acknowledges that it has no rights of withdrawal
from the foregoing account. All Purchased Assets transferred by one party hereto to the other party shall be in the case of a purchase
by Buyer in suitable form for transfer or shall be accompanied by duly executed instruments of transfer or assignment in blank
and such other documentation as Buyer may reasonably request. All Purchased Assets and Contributed Assets shall be evidenced by
a Trust Receipt. Any Repurchase Price received by Buyer after 2:00 p.m. (New York City time) shall be deemed received on the next
succeeding Business Day.

 

10.Conditions
Precedent

 

a.Effective Date.
As conditions precedent to the Effective Date, Buyer shall have received on or before the day of entering into additional Transactions
the following, in form and substance satisfactory to Buyer and duly executed by each Seller Party, Guarantors and each other party
thereto:

 

    	 	- 46 -	 

     

    

 

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

 

(2)Security Interest.
Evidence that all other actions necessary or, in the opinion of Buyer, desirable to perfect and protect Buyer’s interest
in the Purchased Assets, Purchased Mortgage Loans, Contributed Assets and other Repurchase Assets have been taken, including, without
limitation, (i) duly authorized and filed Uniform Commercial Code financing statements on Form UCC-1 and Form UCC-3 and (ii) delivery
to the Custodian of the original Subsidiary Certificate re-registered into the name of the Buyer and evidence that any REO Subsidiary
Interests are evidenced by a certificate in a registered form.

 

(3)Organizational
Documents. A certificate of the duly authorized person of each Seller Party, each Guarantor and PennyMac GP OP, Inc., attaching
certified copies of each Seller’s certificate of formation and operating agreement, PennyMac Mortgage Investment Trust’s
declaration of trust, PennyMac Operating Partnership, L.P.’s limited partnership certificate, REO Subsidiary’s Subsidiary
Agreement and in each case resolutions approving the Program Agreements and transactions thereunder (either specifically or by
general resolution) and all documents evidencing other necessary action or governmental approvals as may be required in connection
with the Program Agreements.

 

(4)Good Standing
Certificate. A certified copy of a good standing certificate from the jurisdiction of organization of Sellers and Guarantors,
dated as of no earlier than the date ten (10) Business Days prior to the date hereof.

 

(5)Incumbency
Certificate. An incumbency certificate of each Seller, administrator and authorized signatory for REO Subsidiary, and Guarantors,
certifying the names, true signatures and titles of the representatives duly authorized to request transactions hereunder and to
execute the Program Agreements.

 

(6)Opinion of
Counsel. An opinion of Seller Parties’ and Guarantors’ counsel, in form and substance acceptable to Buyer as to
(i) general corporate matters, (ii) enforceability, (iii) creation and perfection, (iv) bankruptcy safe harbors, (v) matters of
Delaware law with respect to REO Subsidiary, and (vi) Investment Company Act of 1940, as amended (the “Investment Company
Act”), indicating that no Guarantor, Seller nor REO Subsidiary is an “investment company”, within the meaning
of the Investment Company Act and that it is not necessary for REO Subsidiary to register under the Investment Company Act because
REO Subsidiary is not required to be registered as an “investment company” within the meaning of the Investment Company
Act as it is outside the definitions of “investment company” under Section 3(a)(1)(A), (B) and (C) of the Investment
Company Act or, alternatively, it is not required to be registered as an “investment company” within the meaning of
the Investment Company Act in reliance upon the exceptions under Sections 3(c)(5)(C) and 3(c)(6).

 

    	 	- 47 -	 

     

    

 

(7)Underwriting
Guidelines, Acquisition Guidelines, Leasing Criteria, Tenant Underwriting Criteria. A true and correct copy of the Underwriting
Guidelines, Acquisition Guidelines, Leasing Criteria and Tenant Underwriting Criteria, each certified by an officer of the Underlying
Repurchase Counterparty.

 

(8)Fees. Payment
of any fees due to Buyer hereunder.

 

(9)Insurance.
Evidence that Sellers have added Buyer as an additional loss payee under the Sellers’ Fidelity Insurance.

 

(10)Underlying
Repurchase Documents. Fully executed and delivered Underlying Repurchase Documents.

 

(11)REO Subsidiary
Interests. Sellers shall deliver an original of each Subsidiary Certificate or other similar indicia of ownership of the REO
Subsidiary Interests, however denominated, re-registered in Buyer’s name.

 

b.All Transactions
and Purchase Price Increases. The obligation of Buyer to enter into each Transaction or Purchase Price Increase pursuant to
this Agreement is subject to the following conditions precedent:

 

(1)Due Diligence
Review. Without limiting the generality of Section 36 hereof, Buyer shall have completed, to its satisfaction, its due diligence
review of the related Purchased Assets, Mortgage Loans, Contributed Assets, Underlying Repurchase Counterparty, Property Manager,
Seller Parties, Guarantors and the applicable Servicer. In addition to the foregoing, at least five (5) Business Days prior to
the related Purchase Date with respect to Seasoned Mortgage Loans, Sellers shall have delivered to Buyer summary results of the
due diligence Sellers performed in connection with the acquisition of Mortgage Loans by Sellers and Contributed Assets by REO Subsidiary
and Buyer shall have excluded such assets as it deemed appropriate in its sole discretion.

 

(2)Required Documents.

 

(a)With respect
to each Mortgage Loan which is not a Wet-Ink Mortgage Loan and REO Property, the Asset File has been delivered to the Custodian
in accordance with the Custodial Agreement;

 

    	 	- 48 -	 

     

    

 

(b)With respect
to each Wet-Ink Mortgage Loan, the Wet-Ink Documents have been delivered to Buyer or Custodian, as the case may be, in accordance
with the Custodial Agreement;

 

(c)The
Buyer has, in its sole discretion, approved the Property Manager and has delivered and executed the Property Management
Agreement and the Buyer has received evidence that, with respect to Transactions relating to Rental Properties, the Property
Manager has added Buyer as an additional loss payee under Property Manager’s Fidelity Insurance; and

 

(d)With
respect to each of the Purchased Mortgage Loans and Contributed Assets, (x) all applicable Servicers have delivered a fully executed
Servicer Notice and Pledge and (y) the Property Manager have delivered fully executed Property Management Agreement Side Letter.

 

(3)Transaction
Documents. Buyer or its designee shall have received on or before the day of such Transaction or Purchase Price Increase (unless
otherwise specified in this Agreement) the following, in form and substance satisfactory to Buyer and (if applicable) duly executed:

 

(a)A Transaction
Request or Purchase Price Increase Request, as applicable, and Asset Schedule or other information required to be delivered by
the applicable Seller pursuant to Section 3(b) or 3(c) hereof.

 

(b)The Request
for Certification and the related Asset Schedule delivered by a Seller, and the Trust Receipt and Custodial Asset Schedule delivered
by Custodian.

 

(c)With respect
to Rental Properties, such other documents as Buyer may reasonably request, in form and substance reasonably acceptable to Buyer,
including but not limited to the following: (x) the SFR Property Documents, (y) current rent roll (including actual and
expected rents), if applicable, and (z) Tenant credit information, as may be required by Buyer in its reasonable discretion.

 

(d)Such certificates,
opinions of counsel or other documents as Buyer may reasonably request.

 

(4)No Default.
No Default, Event of Default or, with solely respect to new Transactions involving Rental Properties, no Early Repurchase Trigger
Event shall have occurred and be continuing;

 

(5)Requirements
of Law. Buyer shall not have determined that the introduction of or a change in any Requirement of Law or in the interpretation
or administration of any Requirement of Law applicable to Buyer has made it unlawful, and no Governmental Authority shall have
asserted that it is unlawful, for Buyer to enter into Transactions or remit Purchase Price Increases with a Pricing Rate based
on the Base Rate.

 

    	 	- 49 -	 

     

    

 

(6)Representations
and Warranties. Both immediately prior to the related Transaction or Purchase Price Increase, as applicable, and also after
giving effect thereto and to the intended use thereof, the representations and warranties made by Seller Parties in each Program
Agreement shall be true, correct and complete on and as of such Purchase Date in all material respects with the same force and
effect as if made on and as of such date (or, if any such representation or warranty is expressly stated to have been made as of
a specific date, as of such specific date).

 

(7)Electronic
Tracking Agreement. To the extent any Purchased Mortgage Loans are registered on the MERS® System, an Underlying Electronic
Tracking Agreement entered into, duly executed and delivered by the parties thereto and being in full force and effect, free of
any modification, breach or waiver; provided that, executed signature pages by MERS and MERSCORP Holdings, Inc. may be provided
following the date hereof.

 

(8)Material Adverse
Change. None of the following shall have occurred and/or be continuing:

 

(a)Credit Suisse
AG, New York Branch’s corporate bond rating as calculated by S&P or Moody’s has been lowered or downgraded to a
rating below investment grade by S&P or Moody’s;

 

(b)an event or
events shall have occurred in the good faith determination of Buyer resulting in the effective absence of a “repo market”
or comparable “lending market” for financing debt obligations secured by mortgage loans or securities or an event or
events shall have occurred resulting in Buyer not being able to finance Purchased Mortgage Loans and/or Contributed Assets through
the “repo market” or “lending market” with traditional counterparties at rates which would have been reasonable
prior to the occurrence of such event or events; or

 

(c)an event or
events shall have occurred resulting in the effective absence of a “securities market” for securities backed by mortgage
loans or an event or events shall have occurred resulting in Buyer not being able to sell securities backed by mortgage loans at
prices which would have been reasonable prior to such event or events; or

 

(d)there shall
have occurred a material adverse change in the financial condition of Buyer which affects (or can reasonably be expected to affect)
materially and adversely the ability of Buyer to fund its obligations under this Agreement.

 

(9)Pooled Mortgage
Loans. Solely with respect to Transactions the subject of which are Pooled Mortgage Loans, Buyer shall have received the related
Trade Assignment on or prior to the Purchase Date with respect thereto.

 

(10)Underlying
Repurchase Documents. Sellers shall provide a Transaction Request (as defined in the Underlying Repurchase Documents), which
shall reference the applicable Asset Schedule which shall describe the Purchased Mortgage Loans and Contributed Assets. All Underlying
Repurchase Documents applicable to each Purchased Mortgage Loan and Contributed Asset have been duly executed and delivered by
Sellers and the Underlying Repurchase Counterparty and are in form and substance satisfactory to Buyer in all material respects,
in its sole discretion.

 

    	 	- 50 -	 

     

    

 

(11)Acceptable
Underlying Repurchase Transaction. Such Mortgage Loan is sold to a Seller by an Underlying Repurchase Counterparty pursuant
to an Acceptable Underlying Repurchase Transaction.

 

(12)Escrow Instruction
Letter. With respect to each Wet-Ink Mortgage Loan, evidence that an Escrow Instruction Letter has been delivered by Underlying
Repurchase Counterparty to the related Settlement Agent.

 

(13)Underlying
Repurchase Counterparty Compare Ratio. With respect to the applicable Mortgage Loan, the related Underlying Repurchase Counterparty
Compare Ratio with respect to each of its Underlying Repurchase Counterparty DE Compare Report and Underlying Repurchase Counterparty
Institution Compare Report does not exceed 150%.

 

(14)Delivery of
Broker’s Price Opinion.

 

(a)With respect
to each Seasoned Mortgage Loan and REO Property, Sellers shall have delivered to Buyer a BPO valuation and valuation date, and
such other information as may be required by Buyer pursuant to Section 3(b) for such Purchased Asset.

 

(b)With
respect to each Rental Property, the REO Subsidiary shall have delivered to Buyer a true and complete copy of an internal BPO
for such Rental Property dated no more than sixty (60) days prior to the requested Purchase Price Increase Date or the Conversion
Date.

 

(15)Licensing.
Buyer shall not be required to obtain any “mortgage banker”, “broker”, “lender” or other similar
state license in order to enter into Transactions with respect to such Rental Properties or in connection with the SFR Property
Documents for such Rental Properties.

 

(16)DE
Compare Ratio. Sellers’ DE Compare Ratio shall be less than 250%.

 

(17)No
HUD Suspension. HUD shall not have suspended PMC’s ability to originate FHA Loans in any jurisdiction.

 

(18)REO
Subsidiary Account Required Balance. Solely with respect to new Transactions involving Rental Properties, the Sellers shall
maintain a minimum balance in the REO Subsidiary Account of at least the REO Subsidiary Account Required Balance.

 

    	 	- 51 -	 

     

    

 

11.Program;
Costs

 

a.Sellers shall pay
the fees and expenses of Buyer’s counsel in connection with the original preparation and execution of the Program Agreements.
Sellers shall reimburse Buyer for any of Buyer’s reasonable out-of-pocket costs, including due diligence review costs and
reasonable attorney’s fees incurred by Buyer in determining the acceptability to Buyer of any Mortgage Loans. Sellers shall
also pay, or reimburse Buyer if Buyer shall pay, any termination fee, which may be due any servicer. Legal fees for any subsequent
amendments to this Agreement or related documents shall be borne by Sellers. Sellers shall pay ongoing custodial fees and expenses
as set forth in the Custodial Agreement, and any other ongoing fees and expenses under any other Program Agreement.

 

b.If Buyer determines
that, due to the introduction of, any change in, or required change in compliance by Buyer with (i) any eurocurrency reserve
requirement or (ii) the interpretation of any law, regulation or any guideline or request from any central bank or other Governmental
Authority (whether or not having the force of law), there shall be an increase in the cost to Buyer in engaging in the present
or any future Transactions or remitting Purchase Price Increases, then Sellers agree to pay to Buyer, from time to time, upon demand
by Buyer (with a copy to Custodian) the actual cost of additional amounts as specified by Buyer to compensate Buyer for such increased
costs; provided that this Section 11(b) shall only apply to the extent that such increased costs are not reflected in Buyer’s
calculation of the Base Rate.

 

c.With respect to
any Transaction or Purchase Price Increase, as applicable, Buyer may conclusively rely upon, and shall incur no liability to Sellers
in acting upon, any request or other communication that Buyer reasonably believes to have been given or made by a person authorized
to enter into a Transaction or request a Purchase Price Increase, as applicable, on any Seller’s behalf, whether or not such
person is listed on the certificate delivered pursuant to Section 10(a)(6) hereof. In each such case, each Seller hereby waives
the right to dispute Buyer’s record of the terms of the request or other communication.

 

d.Notwithstanding
the assignment of the Program Agreements with respect to each Repurchase Asset to Buyer, each Seller Party agrees and covenants
with Buyer to enforce diligently such Seller Party’s rights and remedies set forth in the Program Agreements.

 

e.     (i) Any payments
made by Sellers or Guarantor to Buyer hereunder shall be made free and clear of and without deduction for any Indemnified Taxes
or Other Taxes; provided that if a Seller or Guarantor shall be required to deduct any Indemnified Taxes or Other Taxes
from such payments, then (A) the sum payable shall be increased as necessary so that after making all required deductions (including
deductions applicable to additional sums payable under this Section 11(e)(i)) the Buyer receives an amount equal to the
sum it would have received had no such deductions been made, (B) the Sellers shall make such deductions, (C) the Sellers shall
pay the full amount deducted to the relevant official body in accordance with applicable Law, and (D) the Sellers shall notify
the Buyer of the amount paid and shall provide evidence of such payment within ten days thereafter. Sellers and Guarantor shall
otherwise indemnify Buyer for any Indemnified Taxes or Other Taxes imposed on Buyer.

 

    	 	- 52 -	 

     

    

 

(ii) Buyer and any Buyer
assignee shall deliver to each of the Sellers and the Guarantor (A) in the case of a Buyer or Buyer assignee which is a “U.S.
Person” as defined in section 7701(a)(30) of the Code, a properly completed and executed Internal Revenue Service (“IRS”)
Form W-9 certifying that it is not subject to backup withholding, and (B) in the case of a Buyer or Buyer assignee which is not
a “U.S. Person” as defined in Code section 7701(a)(30), a properly completed and executed IRS Form W-8BEN or W-8ECI,
as appropriate, evidencing entitlement to a zero percent rate of U.S. federal income tax withholding on any payments made hereunder
and, in the case of such non-U.S. Person claiming exemption from the withholding of U.S. federal income tax under Code sections
871(h) or 881(c) with respect to payments of “portfolio interest,” a duly executed certificate to the effect that such
non-U.S. Person is not (A) a “bank” within the meaning of Code section 881(c)(3)(A), (B) a “10 percent shareholder”
of any Seller, Guarantor of affiliate thereof, within the meaning of Code section 881(c)(3)(B), or (C) a “controlled foreign
corporation” described in Code section 881(c)(3)(C).

 

f.(i) Any indemnification
payable by Sellers to Buyer or any Buyer assignee for Indemnified Taxes or Other Taxes that are imposed on Buyer or a Buyer assignee,
as described in Section 11(e)(i) hereof, shall be paid by Sellers within thirty (30) days after written demand therefor.
As part of any such written demand for payment, the Buyer or the relevant Buyer assignee shall deliver a certificate to Sellers
(along with a copy of the applicable documents from the relevant Governmental Authority) setting forth a calculation of the amount
of Indemnified Taxes or Other Tax for which the demand is made, which calculated amount shall be conclusive absent manifest error.
The Buyer or relevant Buyer assignee also shall timely deliver to the Sellers a receipt (or other evidence reasonably satisfactory
to the Sellers) of the actual payment of Indemnified Taxes or Other Taxes with respect to which the indemnification request relates.

 

(ii) In addition, as
soon as practicable after any payment of Indemnified Taxes or Other Taxes by a Seller to a Governmental Authority pursuant to Section
11(e)(i), such Seller shall deliver to the Buyer or the relevant Buyer assignee the original or a certified copy of a receipt
issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of
such payment reasonably satisfactory to Buyer or the relevant Buyer assignee.

 

The applicable IRS forms
referred to above shall be delivered by each applicable Buyer or Buyer assignee on or prior to the date on which such person becomes
a Buyer or Buyer assignee under this Agreement, as the case may be, and upon the obsolescence or invalidity of any IRS form previously
delivered by it hereunder.

 

    	 	- 53 -	 

     

    

 

12.Servicing;
Property Management

 

a.Servicing.

 

(1)Pursuant to the
Servicing Agreement, Seller Parties have contracted with Servicer to service the Purchased Mortgage Loans and REO Properties consistent
with the degree of skill and care that Seller Parties customarily require with respect to similar Mortgage Loans and REO Properties
owned or managed by it and in accordance with Accepted Servicing Practices. The Seller Parties and Servicer shall (i) comply
with all applicable Federal, State and local laws and regulations, (ii) maintain all state and federal licenses necessary
for it to perform its servicing responsibilities hereunder and (iii) not impair the rights of Buyer in any Mortgage Loans
and REO Properties or any payment thereunder. Buyer may terminate the servicing of any Mortgage Loan or REO Property with the then-existing
servicer in accordance with Section 12(a)(5) hereof.

 

(2)Seller Parties
shall and shall cause the Servicer to hold or cause to be held all escrow funds collected by Seller Parties and Servicer with respect
to any Purchased Mortgage Loans and REO Properties in trust accounts and shall apply the same for the purposes for which such funds
were collected.

 

(3)Seller Parties
shall and shall cause the Servicer to deposit all collections received by Servicer on the Purchased Mortgage Loans and REO Property
in accordance with Section 7 hereof.

 

(4)Seller Parties
shall provide to Buyer a Servicer Notice and Pledge addressed to and agreed to by the Servicer of the related Purchased Mortgage
Loans and REO Properties, advising such Servicer of such matters as Buyer may reasonably request, including, without limitation,
recognition by the Servicer of Buyer’s interest in such Purchased Mortgage Loans and REO Properties and the Servicer’s
agreement that upon receipt of notice of an Event of Default from Buyer, it will follow the instructions of Buyer with respect
to the Purchased Mortgage Loans and REO Properties and any related Income with respect thereto.

 

(5)Upon the occurrence
and continuation of an Event of Default hereunder, Buyer shall have the right to immediately terminate the Servicer’s right
to service the Purchased Mortgage Loans and REO Properties without payment of any penalty or termination fee under the Servicing
Agreement. Seller Parties and the Servicer shall cooperate in transferring the servicing of the Purchased Mortgage Loans and REO
Properties to a successor servicer appointed by Buyer in its sole discretion. For the avoidance of doubt, any termination of the
Servicer’s rights to service by the Buyer as a result of an Event of Default shall be deemed part of an exercise of the Buyer’s
rights to cause the liquidation, termination or acceleration of this Agreement.

 

    	 	- 54 -	 

     

    

 

(6)If Seller Parties
should discover that, for any reason whatsoever, Seller Parties or any entity responsible to Seller Parties for managing or servicing
any such Purchased Mortgage Loan or REO Property has failed to perform fully Seller Parties’ obligations under the Program
Agreements or any of the obligations of such entities with respect to the Purchased Mortgage Loans and REO Properties, Seller Parties
shall promptly notify Buyer.

 

(7)Reserved.

 

(8)For the avoidance
of doubt, no Seller Party retains economic rights to the servicing of the Purchased Mortgage Loans and REO Properties; provided
that the Seller Parties shall and shall cause the Servicer to continue to service the Purchased Mortgage Loans and REO Properties
hereunder as part of the Obligations hereunder. As such, each Seller Party expressly acknowledges that the REO Properties are transferred
to REO Subsidiary and pledged to Buyer on a “servicing released” basis.

 

b.Property Management.

 

(1)Pursuant to the
Property Management Agreement, the Sellers, on Buyer’s behalf, shall contract with the Property Managers to manage the Rental
Property consistent with the degree of skill and care that such Property Managers customarily require with respect to similar Rental
Property owned or managed by such Property Managers and in accordance with Accepted Property Management Practices. Property Manager
shall (i) comply in all material respects with all applicable Federal, State and local laws and regulations, (ii) maintain
all state and federal licenses necessary for it to perform its management responsibilities hereunder and (iii) not impair
the rights of Buyer in any Rental Property or any payment thereunder. Buyer may terminate the management of any Rental Property
with the then existing Property Managers in accordance with Section 12(b)(5) hereof.

 

(2)Upon request from
Buyer, each Seller shall provide to Custodian, as part of the Asset File, an executed Tenant Instruction Notice addressed to and
agreed to by the Eligible Tenant, advising Eligible Tenants of such matters as Buyer may reasonably request, including, without
limitation, recognition by the Eligible Tenants of Buyer’s interest in such Rental Properties and each Eligible Tenant’s
agreement that upon receipt of notice of an Event of Default or a Property Manager Termination Event from Buyer, it will follow
the instructions of Buyer with respect to the Rental Property and any related Income with respect thereto.

 

(3)Upon prior written
notice following the occurrence and during the continuance of an Event of Default or Property Manager Termination Event, Buyer
shall have the right to immediately terminate the Property Manager’s right to manage the Rental Properties without payment
of any penalty or termination fee under the Property Management Agreement. Upon receipt of such notice, each Seller and the Property
Manager shall cooperate in transferring the management of the Rental Properties to a successor property manager appointed by Buyer
in its sole discretion. For the avoidance of doubt, any termination of a Property Manager’s rights to manage by the Buyer
as a result of an Event of Default or Property Manager Termination Event shall be deemed part of an exercise of the Buyer’s
rights to cause the liquidation, termination or acceleration of this Agreement.

 

    	 	- 55 -	 

     

    

 

(4)If any Seller
should discover that, for any reason whatsoever, any Seller or any entity responsible to such Seller for managing any such Rental
Property has failed to perform fully such Seller’s material obligations under the Program Agreements or any of the material
obligations of such entities with respect to the Rental Properties, such Seller shall promptly notify Buyer.

 

13.Representations
and Warranties

 

a.Except as otherwise
specifically set forth below, each of Seller Parties and Guarantors represents and warrants to Buyer as of the date hereof and
as of each Purchase Date for any Transaction or Purchase Price Increase Date, as applicable, that:

 

(1)Seller Parties
and Guarantors Existence. PMC has been duly organized and is validly existing as a corporation in good standing under
the laws of the State of Delaware. PennyMac Holdings, LLC has been duly organized and is validly existing as a limited liability
company in good standing under the laws of the State of Delaware. PennyMac Mortgage Investment Trust has been duly organized
and is validly existing as a real estate investment trust in good standing under the laws of the State of Maryland. PennyMac Operating
Partnership, L.P. has been duly organized and is validly existing as a limited partnership in good standing under the laws of the
State of Delaware. REO Subsidiary has been duly organized and is validly existing and in good standing under the laws of the State
of Delaware. 

 

(2)Licenses.
Each Seller Party and each Guarantor is duly licensed or is otherwise qualified in each jurisdiction in which it transacts business
for the business which it conducts and is not in default of any applicable federal, state or local laws, rules and regulations
unless, in either instance, the failure to take such action is not reasonably likely (either individually or in the aggregate)
to cause a Material Adverse Effect. Each Seller Party and each Guarantor has the requisite power and authority, legal right and
necessary licenses (including from VA and FHA, if applicable) to originate and purchase Mortgage Loans and/or REO Property, lease
Rental Property (as applicable) and to own, sell and grant a lien on all of its right, title and interest in and to the Mortgage
Loans, Rental Properties and REO Property, and to execute and deliver, engage in the transactions contemplated by, and perform
and observe the terms and conditions of, each Program Agreement and any Transaction Request or Purchase Price Increase Request,
as applicable.

 

    	 	- 56 -	 

     

    

 

(3)Power.
Each Seller Party and each Guarantor has all requisite corporate or other power, and has all governmental licenses, authorizations,
consents and approvals necessary to own its assets and carry on its business as now being or as proposed to be conducted, except
where the lack of such licenses, authorizations, consents and approvals would not be reasonably likely to have a Material Adverse
Effect.

 

(4)Due Authorization.
Each Seller Party and each Guarantor has all necessary corporate or other power, authority and legal right to execute, deliver
and perform its obligations under each of the Program Agreements, as applicable. Each Program Agreement has been (or, in the case
of Program Agreements not yet executed, will be) duly authorized, executed and delivered by Seller Parties and Guarantors, all
requisite or other corporate action having been taken, and each is valid, binding and enforceable against Seller Parties and Guarantors
in accordance with its terms except as such enforcement may be affected by bankruptcy, by other insolvency laws, or by general
principles of equity.

 

(5)Financial Statements.
Each of PMIT, PMC and PennyMac Holdings have heretofore furnished to Buyer a copy of (a) its consolidated balance sheets for the
fiscal year ended December 31, 2014 and the related consolidated statements of income and retained earnings and of cash for such
fiscal year, with the opinion thereon of Deloitte & Touche LLP and (b) its consolidated balance sheets for the quarterly fiscal
periods ended June 30, 2015 and September 30, 2015 and the related consolidated statements of income and retained earnings and
of cash flows for it and its consolidated Subsidiaries for such quarterly fiscal periods. All such financial statements are complete
and correct and fairly present, in all material respects, the consolidated financial condition of PMIT, PMC or PennyMac Holdings
and their consolidated Subsidiaries, as applicable and the consolidated results of their operations as at such dates and for such
fiscal periods, all in accordance with GAAP (other than monthly financial statements solely with respect to footnotes, year-end
adjustments and cash flow statements) applied on a consistent basis. Each of PMIT, PMC, and PennyMac Holdings has, on the date
of the statements delivered pursuant to this Section (the “Statement Date”) no liabilities, direct or indirect,
fixed or contingent, matured or unmatured, known or unknown, or liabilities for taxes, long-term leases or unusual forward or long-term
commitments not disclosed by, or reserved against in, said balance sheet and related statements, and at the present time there
are no material unrealized or anticipated losses from any loans, advances or other commitments of Sellers except as heretofore
disclosed to Buyer in writing.

 

(6)Event of Default.
There exists no Event of Default under Section 15(b) hereof, which default gives rise to a right to accelerate indebtedness
as referenced in Section 15(b) hereof, under any mortgage, borrowing agreement or other instrument or agreement pertaining
to indebtedness for borrowed money or to the repurchase of mortgage loans or securities.

 

    	 	- 57 -	 

     

    

 

(7)Solvency.
Each Seller Party and each Guarantor is solvent and will not be rendered insolvent by any Transaction or Purchase Price Increase
and, after giving effect to such Transaction or Purchase Price Increase, will not be left with an unreasonably small amount of
capital with which to engage in its business. No Seller Party nor any Guarantor intends to incur, nor believes that it has incurred,
debts beyond their ability to pay such debts as they mature and are not contemplating the commencement of insolvency, bankruptcy,
liquidation or consolidation proceedings or the appointment of a receiver, liquidator, conservator, trustee or similar official
in respect of such entity or any of its assets. The amount of consideration being received by each Seller upon the sale of the
Purchased Assets to Buyer constitutes reasonably equivalent value and fair consideration for such Purchased Assets. No Seller is
transferring any Purchased Assets or any Contributed Asset to the REO Subsidiary with any intent to hinder, delay or defraud any
of its creditors. Each transfer of Contributed Assets to REO Subsidiary constitutes reasonably equivalent value and fair consideration
for such Contributed Assets

 

(8)No Conflicts.
The execution, delivery and performance by each of each Seller Party and each Guarantor of each Program Agreement do not conflict
with any term or provision of the formation documents or by-laws of Seller Parties or Guarantors or any law, rule, regulation,
order, judgment, writ, injunction or decree applicable to any Seller Party or any Guarantor of any court, regulatory body, administrative
agency or governmental body having jurisdiction over any Seller Party or any Guarantor, which conflict would have a Material Adverse
Effect and will not result in any violation of any such mortgage, instrument, agreement or obligation to which any Seller Party
or any Guarantor is a party.

 

(9)True and Complete
Disclosure. All information, reports, exhibits, schedules, financial statements or certificates of Seller Parties, Guarantors,
any Property Manager, or any Affiliate thereof or any of their officers furnished or to be furnished to Buyer in connection with
the initial or any ongoing due diligence of Seller Parties, Guarantors, any Underlying Repurchase Counterparty, any Property Manager,
or any Affiliate or officer thereof, negotiation, preparation, or delivery of the Program Agreements are true and complete and
do not omit to disclose any material facts necessary to make the statements herein or therein, in light of the circumstances in
which they are made, not misleading. All financial statements have been prepared in accordance with GAAP (other than monthly financial
statements solely with respect to footnotes, year-end adjustments and cash flow statements).

 

    	 	- 58 -	 

     

    

 

(10)Approvals.
No consent, approval, authorization or order of, registration or filing with, or notice to any governmental authority or court
is required under applicable law in connection with the execution, delivery and performance by any Seller Party or any Guarantor
of each Program Agreement. For the avoidance of doubt, the parties acknowledge that certain details, excluding pricing details,
of the Program Agreements will be filed in the Guarantor’s 8-K filing.

 

(11)Litigation.
There is no action, proceeding or investigation pending with respect to which any Seller Party or either Guarantor has received
service of process or, to the best of such Seller Party’s or either Guarantor’s knowledge threatened against it before
any court, administrative agency or other tribunal (A) asserting the invalidity of any Program Agreement, (B) seeking to prevent
the consummation of any of the transactions contemplated by any Program Agreement, (C) making a claim individually or in the aggregate
in an amount greater than (x) $10,000,000 against any Seller, Underlying Repurchase Counterparty or any of their Affiliates or
(y) $250,000 against REO Subsidiary, (D) which requires filing with the Securities and Exchange Commission in accordance with the
1934 Act or any rules thereunder or (E) which might materially and adversely affect the validity of the Purchased Assets, Mortgage
Loans or Contributed Assets or the performance by it of its obligations under, or the validity or enforceability of any Program
Agreement.

 

(12)Material Adverse
Change. There has been no material adverse change in the business, operations, financial condition, properties or prospects
of Underlying Repurchase Counterparty, Seller Parties, Guarantors or their Affiliates since the date set forth in the most recent
financial statements supplied to Buyer as determined by Buyer in its sole good faith discretion.

 

(13)Ownership.
Upon (a) payment of the Purchase Price and the filing of the financing statement and delivery of the Asset Files to the Custodian
and delivery to Custodian of the originals of the Subsidiary Certificates re-registered in Buyer’s name and the Custodian’s
receipt of the related Request for Certification, Buyer shall become the sole owner of the Purchased Assets and have a Lien on
the related Repurchase Assets, (b) transfer of each REO Property, the REO Subsidiary shall become the sole owner of the REO Properties,
and (c) transfer of each Rental Property to the REO Subsidiary shall become the sole owner of the Rental Properties, in each case,
free and clear of all liens and encumbrances. No Seller Party has assigned, pledged, or otherwise conveyed or encumbered any Purchased
Asset or Contributed Asset to any other Person, (other than to the Underlying Repurchase Counterparty under the Underlying Repurchase
Documents provided such liens are subordinate in all respects to the liens hereunder), and immediately prior to the sale and backup
pledge of such Purchased Asset, Mortgage Loan or Contributed Asset to Buyer, such Seller Party was the sole owner thereof and had
good and marketable title thereto, free and clear of all Liens. No Seller Party has assigned, pledged, or otherwise conveyed or
encumbered any Program Agreement to any other Person and such Seller Party is the sole owner thereof, free and clear of all Liens.

 

    	 	- 59 -	 

     

    

 

(14)Underwriting
Guidelines, Acquisition Guidelines, Leasing Criteria, Tenant Underwriting Criteria. The Underwriting Guidelines, Acquisition
Guidelines, Leasing Criteria and Tenant Underwriting Criteria provided to Buyer are the true and correct Underwriting Guidelines,
Acquisition Guidelines, Leasing Criteria and Tenant Underwriting Criteria of the Underlying Repurchase Counterparty.

 

(15)Taxes.
Seller Parties, Guarantors and their Subsidiaries have timely filed all tax returns that are required to be filed by them and have
paid all taxes, except for any such taxes as are being appropriately contested in good faith by appropriate proceedings diligently
conducted and with respect to which adequate reserves have been provided. The charges, accruals and reserves on the books of Seller
Parties, Guarantors and their Subsidiaries in respect of taxes and other governmental charges are, in the opinion of Seller Parties
or Guarantors, as applicable, adequate.

 

(16)Investment
Company. None of any Seller, any Guarantor or REO Subsidiary is required to register as an “investment company,”
within the meaning of the Investment Company Act of 1940, as amended (the “Investment Company Act”), and it
is not necessary for REO Subsidiary to register under the Investment Company Act for specified reasons other than the exemption
provided by Section 3(c)(1) or Section 3(c)(7) of the Investment Company Act; provided, however, that any entity
that is under the management of PNMAC Capital Management LLC in its capacity as an “investment adviser” within the
meaning of the Investment Advisers Act of 1940 and is otherwise not directly or indirectly owned or controlled by a Seller shall
not be deemed a “Subsidiary” for the purposes of this Section 13(a)(16).

 

(17)Chief Executive
Office; Jurisdiction of Organization. On the Effective Date, each Seller Party’s chief executive office, is, and has
been, located at 6101 Condor Drive, Moorpark, CA 93021. On the Effective Date, each Seller Party’s jurisdiction of organization
is the State of Delaware. Seller Parties shall provide Buyer with thirty days advance notice of any change in any Seller Party’s
principal office or place of business or jurisdiction; provided, however, that no additional notice is required that
such addresses shall change on or about March 14, 2016 to 3043 Townsgate Road, Westlake Village, California 91361. No Seller Party
has a trade name. During the preceding five years, no Seller Party has been known by or done business under any other name, corporate
or fictitious, and has not filed or had filed against it any bankruptcy receivership or similar petitions nor has it made any assignments
for the benefit of creditors.

 

(18)Location of
Books and Records. The location where each Seller Party keeps its books and records, including all computer tapes and records
relating to the Purchased Assets, Mortgage Loans and Contributed Assets and the related Repurchase Assets is its chief executive
office or in the custody of the Servicer of the Property Manager, as applicable.

 

    	 	- 60 -	 

     

    

 

(19)Adjusted Tangible
Net Worth. On the Effective Date, Underlying Repurchase Counterparty’s, each Seller’s and PennyMac Mortgage Investment
Trust’s Adjusted Tangible Net Worth are not less than the amounts set forth in Section 14dd.(i)(C) hereof.

 

(20)ERISA.
Each Plan to which Seller Parties, Guarantors or their Subsidiaries make direct contributions, and, to the knowledge of Seller
Parties, each other Plan and each Multiemployer Plan, is in compliance in all material respects with, and has been administered
in all material respects in compliance with, the applicable provisions of ERISA, the Code and any other federal or state law.

 

(21)Adverse Selection.
No Seller has selected the Purchased Assets, Mortgage Loans or Contributed Assets in a manner so as to adversely affect Buyer’s
interests.

 

(22)Agreements.
No Seller Party nor any Subsidiary of any Seller is a party to any agreement, instrument, or indenture or subject to any restriction
materially and adversely affecting its business, operations, assets or financial condition, except as disclosed in the financial
statements described in Section 13(a)(5) hereof. No Seller Party nor any Subsidiary of any Seller Party is in default in the performance,
observance or fulfillment of any of the obligations, covenants or conditions contained in any agreement, instrument, or indenture
which default could have a material adverse effect on the business, operations, properties, or financial condition of any Seller
Party as a whole. No holder of any indebtedness of any Seller Party or of any of its Subsidiaries has given notice of any asserted
default thereunder.

 

(23)Other Indebtedness.
All Indebtedness (other than Indebtedness evidenced by this Agreement) of Sellers existing on the date hereof is listed on Exhibit
H hereto (the “Existing Indebtedness”).

 

(24)Agency Approvals.
With respect to each Agency Security and to the extent necessary, each of PMC and Underlying Repurchase Counterparty is an FHA
Approved Mortgagee, a VA Approved Lender and/or a GNMA Approved Lender. On and after approval by the Agencies, each of PMC and
Underlying Repurchase Counterparty will be, to the extent necessary, approved by Fannie Mae as an approved lender and Freddie Mac
as an approved seller/servicer, and, to the extent necessary, approved by the Secretary of Housing and Urban Development pursuant
to Sections 203 and 211 of the National Housing Act. On and after approval by the Agencies, each of PMC and Underlying Repurchase
Counterparty is in good standing, with no event having occurred or PMC or Underlying Repurchase Counterparty, as applicable, having
any reason whatsoever to believe or suspect will occur prior to the issuance of the Agency Security or the consummation of the
Take-out Commitment, as the case may be, including, without limitation, a change in insurance coverage which would either make
PMC or Underlying Repurchase Counterparty, as applicable, unable to comply with the eligibility requirements for maintaining all
such applicable approvals or require notification to the relevant Agency or to HUD, FHA or VA. If, on and after approval by the
Agencies, either PMC or Underlying Repurchase Counterparty for any reason ceases to possess all such applicable approvals, or should
notification to the relevant Agency or to HUD, FHA or VA be required, Sellers or Guarantors shall so notify Buyer immediately in
writing.

 

    	 	- 61 -	 

     

    

 

(25)No Reliance.
Each Seller Party and each Guarantor has made its own independent decisions to enter into the Program Agreements and each Transaction
or request a Purchase Price Increase, as applicable, and as to whether such Transaction or request a Purchase Price Increase, as
applicable, is appropriate and proper for it based upon its own judgment and upon advice from such advisors (including without
limitation, legal counsel and accountants) as it has deemed necessary. No Seller Party nor any Guarantor is relying upon any advice
from Buyer as to any aspect of the Transactions or Purchase Price Increases, as applicable, including without limitation, the legal,
accounting or tax treatment of such Transactions or Purchase Price Increases, as applicable.

 

(26)Plan Assets.
Neither Seller Parties nor Guarantors are an employee benefit plan as defined in Section 3 of Title I of ERISA, or a plan described
in Section 4975(e)(1) of the Code, and the Purchased Assets, Mortgage Loans and REO Properties are not “plan assets”
within the meaning of 29 CFR §2510.3 101 as amended by Section 3(42) of ERISA, in the Sellers’ hands, and transactions
by or with Underlying Repurchase Counterparty, Seller Parties or Guarantors are not subject to any state or local statute regulating
investments or fiduciary obligations with respect to governmental plans within the meaning of Section 3(32) of ERISA.

 

(27)No Prohibited
Persons. Neither the Seller Parties nor Guarantors, nor any of their Affiliates, officers, directors, partners or members,
is an entity or person (or to the Sellers Parties’ or Guarantors’ knowledge, owned or controlled by an entity or person):
(i) that is listed in the Annex to, or is otherwise subject to the provisions of Executive Order 13224 issued on September 24,
2001 (“EO13224”); (ii) whose name appears on the United States Treasury Department’s Office of Foreign
Assets Control (“OFAC”) most current list of “Specifically Designated National and Blocked Persons”
(which list may be published from time to time in various mediums including, but not limited to, the OFAC website, http:www.treas.gov/ofac/t11sdn.pdf);
(iii) who commits, threatens to commit or supports “terrorism”, as that term is defined in EO13224; or (iv) who is
otherwise affiliated with any entity or person listed above (any and all parties or persons described in clauses (i) through (iv)
above are herein referred to as a “Prohibited Person”).

 

    	 	- 62 -	 

     

    

 

(28)Servicing
and Property Management. Seller Parties have adequate financial standing and, through the Servicing Agreement or Property Management,
as applicable, with Servicer or Property Manager, as applicable, access to adequate servicing and management facilities, procedures
and experienced personnel necessary for the sound servicing and management of mortgage loans, REO properties and rental properties
of the same types as may from time to time constitute Mortgage Loans and Contributed Assets and in accordance with Accepted Servicing
Practices and Accepted Property Management Practices, as applicable.

 

(29)Real Estate
Investment Trust. PennyMac Mortgage Investment Trust is a REIT.

 

(30)True Sale.
Each Rental Property was acquired by the REO Subsidiary from a transferor on a legal true sale or true contribution basis pursuant
to a market standard purchase and/or sale agreement between the REO Subsidiary and such transferor.

 

b.With respect to
(i) every Purchased Asset and Contributed Asset, each Seller represents and warrants to Buyer as of the applicable Purchase Date
for any Transaction as of any Purchase Price Increase Date, as applicable, and each date thereafter that each representation and
warranty set forth on Parts I, III, IV and V of Schedule 1, as applicable, is true and correct in all material respects
and (ii) every Underlying Repurchase Transaction, Underlying Repurchase Document and Underlying Repurchase Counterparty, as applicable,
each Seller represents and warrants to Buyer as of the applicable Purchase Date for any Transaction and each date thereafter that
each representation and warranty set forth on Part II of Schedule 1 is true and correct in all material respects.

 

c.The representations
and warranties set forth in this Agreement shall survive transfer of the Purchased Assets to Buyer and the pledge of the REO Subsidiary
Interests and Contributed Assets to the Buyer and shall continue for so long as the Purchased Assets and Contributed Asset are
subject to this Agreement. Upon discovery by Seller Parties, Servicer or Buyer of any breach of any of the representations or warranties
set forth in this Agreement, the party discovering such breach shall promptly give notice of such discovery to the others. Buyer
has the right to require, in its unreviewable discretion, Sellers to repurchase within one (1) Business Day after receipt of notice
from Buyer any Purchased Asset, or pay the Allocated Repurchase Price for any Contributed Asset, or cause REO Subsidiary to transfer
any Contributed Asset at the Allocated Repurchase Price for which a breach of one or more of the representations and warranties
referenced in Section 13(b) exists and which breach has a material adverse effect on the value of such Purchased Asset or
Contributed Asset or the interests of Buyer.

 

    	 	- 63 -	 

     

    

 

14.Covenants

 

Each Seller Party and
each Guarantor covenants with Buyer that, during the term of this facility:

 

a.Litigation.
Each Seller Party and each Guarantor, as applicable, will promptly, and in any event within ten (10) days after service of process
on any of the following, give to Buyer notice of all litigation, actions, suits, arbitrations, investigations (including, without
limitation, any of the foregoing which are threatened or pending) or other legal or arbitrable proceedings affecting Seller Parties,
Guarantors or any of their Subsidiaries or affecting any of the Property of any of them before any Governmental Authority that
(i) questions or challenges the validity or enforceability of any of the Program Agreements or any action to be taken in connection
with the transactions contemplated hereby, (ii) makes a claim individually or in the aggregate in an amount greater than $10,000,000
(other than with respect to the REO Subsidiary, which amount shall be $250,000), or (iii) which, individually or in the aggregate,
if adversely determined, could be reasonably likely to have a Material Adverse Effect. Each Seller Party and each Guarantor, as
applicable, will promptly provide notice of any judgment, which with the passage of time, could cause an Event of Default hereunder.

 

b.Prohibition
of Fundamental Changes. No Seller Party shall enter into any transaction of merger or consolidation or amalgamation, or liquidate,
wind up or dissolve itself (or suffer any liquidation, winding up or dissolution) or sell all or substantially all of its assets;
provided, that such Seller Party may merge or consolidate with (a) any wholly owned subsidiary of such Seller Party (other than
REO Subsidiary), or (b) any other Person if such Seller Party is the surviving corporation; and provided further, that if after
giving effect thereto, no Default would exist hereunder.

 

c.Servicing; Property
Management. No Seller Party shall cause the Mortgage Loans or Contributed Assets to be serviced by any servicer or property
manager, as applicable, other than a servicer or property manager, as applicable, expressly approved in writing by Buyer, which
approval shall be deemed granted by Buyer with respect to Servicer and Property Manager, as applicable, with the execution of this
Agreement.

 

d.Insurance.

 

(1)The Sellers
or Guarantors shall continue to maintain, for Sellers and their Subsidiaries, Fidelity Insurance in an aggregate amount at least
equal to $300,000. The Sellers or Guarantors shall maintain, for Sellers and their Subsidiaries and each Underlying Repurchase
Counterparty, Fidelity Insurance in respect of its officers, employees and agents, with respect to any claims made in connection
with all or any portion of the Repurchase Assets. The Sellers or Guarantors shall notify the Buyer of any material change in the
terms of any such Fidelity Insurance. REO Subsidiary shall continue to maintain homeowners or other liability insurance covering
each REO Property as contemplated by the applicable Servicing Agreement. The REO Subsidiary and Property Manager shall continue
to maintain homeowners or other liability insurance covering each Rental Property as contemplated by the Property Management Agreement;
and

 

    	 	- 64 -	 

     

    

 

(2)REO Subsidiary
shall:

 

(i)and shall cause
each Property Manager to keep all Rental Property useful and necessary in its business in good working order and condition (ordinary
wear and tear and casualty and condemnation events excepted);

 

(ii)obtain and
maintain, or cause to be obtained and maintained, insurance for itself and each Rental Property (and its related Improvements and
personal property) owned by it providing at least the following coverages:

 

(a)REO Subsidiary
shall maintain, comprehensive all risk insurance including, but not limited to, loss caused by any type of windstorm or hail, (A)
in an amount equal to 100% of the current fair market value as agreed with the insurers, subject to a loss limit equal to $1,000,000
per occurrence; (B) containing an agreed amount endorsement with respect to the Improvements at any Rental Property waiving all
co-insurance provisions or to be written on a no co-insurance form furnished by the Sellers and/or REO Subsidiary; (C) providing
for no deductible in excess of $25,000 for all such insurance coverage for any one casualty or insured event; provided,
however with respect to windstorm and earthquake coverage, no deductible in excess of 5% of the insurable value for each
location, and (D) if any portion of a Rental Property is currently or at any time in the future located in a federally designated
“special flood hazard area”, flood hazard insurance, with no more than $25,000 deductible per occurrence, in an amount
equal to the maximum amount of such insurance available under the National Flood Insurance Act of 1968, the Flood Disaster Protection
Act of 1973 or the National Flood Insurance Reform Act of 1994, as each may be amended, plus excess amounts as Buyer shall require.
Coverage for demolition costs and increased costs of construction in a combined amount not less than $25,000 per location. The
wind and hail insurance coverage shall not exclude named storms. In addition,  with respect to Rental Property located in
California, it shall obtain earthquake insurance for the current fair market value of the property with deductible not exceeding
$50,000 per property;

 

(b)REO Subsidiary
shall maintain, at all times during which structural construction, repairs or alterations are being made with respect to the Improvements
on any Rental Property and only if and to the extent each of the property coverage form and the liability insurance coverage form
does not otherwise apply (A) owner’s contingent or protective liability insurance, otherwise known as owner contractor’s
protective liability (or its equivalent), covering claims not covered by or under the terms or provisions of the above mentioned
commercial general liability insurance policy; provided however, that such insurance shall only be required at all times during
which a material structural loss occurs and is continuing and (B) the insurance provided for in subsection (i) above written in
a so-called builder’s risk completed value form (1) on a non-reporting basis, (2) against all risks insured against pursuant
to subsection (i) above, (3) including permission to occupy the Property and (4) with an agreed amount endorsement waiving co-insurance
provisions;

 

    	 	- 65 -	 

     

    

 

(c)REO Subsidiary
shall maintain and shall cause each Property Manager to collectively maintain, commercial general liability insurance against claims
for personal injury, bodily injury, death or property damage occurring upon, in or about any Rental Property, such insurance (A)
to be on the so-called “occurrence” form with a limit of not less than five million dollars ($5,000,000) per occurrence
per location; two million dollars ($2,000,000) in the aggregate for each policy year and an excess coverage of three million dollars
($3,000,000) per policy year; (B) to continue at not less than the aforesaid limit until required to be changed by the Buyer in
writing by reason of changed economic conditions making such protection inadequate and (C) to cover at least the following hazards:
(1) premises and operations; (2) products and completed operations on an “if any” basis; (3) independent contractors
and (4) blanket contractual liability for all insured contracts;

 

(d)if applicable,
REO Subsidiary shall maintain and shall cause each Property Manager to maintain, worker’s compensation subject to the worker’s
compensation laws of the applicable state, and employer’s liability in amounts reasonably acceptable to the Buyer;

 

(e)REO Subsidiary
shall cause each Property Manager for itself but not for each Rental Property to collectively maintain, umbrella and excess liability
insurance in an amount not less than twenty-five million dollars ($25,000,000) per occurrence and in the aggregate on terms consistent
with, and providing coverage in excess of the coverage provided by, the commercial general liability insurance policy required
hereunder and including employer liability and automobile liability, if required;

 

Each insurance policy
provided for or contemplated by this clause (b) shall contain a standard insured party clause naming the Sellers, REO Subsidiary,
each Property Manager (as applicable) and their successors and assigns as insured parties and, except with respect to the coverage
required by clauses (d) and (e), the Buyer as additional insured and loss payee, and all premiums thereon.

 

e.No Adverse Claims.
Each Seller Party warrants and will defend, and shall cause any Servicer, the Property Manager and each Underlying Repurchase Counterparty
to defend, the right, title and interest of (i) Buyer in and to all Purchased Assets, Mortgage Loans and Contributed Assets and
the related Repurchase Assets, (ii) REO Subsidiary in and to all REO Properties and Rental Properties held by it, in each case,
against all adverse claims and demands.

 

    	 	- 66 -	 

     

    

 

f.Assignment.
Except as permitted herein, no Seller Party nor any Servicer shall sell, assign, transfer or otherwise dispose of, or grant any
option with respect to, or pledge, hypothecate or grant a security interest in or lien on or otherwise encumber (except pursuant
to the Program Agreements), any of the Purchased Assets, Mortgage Loans or Contributed Assets or any interest therein, provided
that this Section shall not prevent any transfer of Purchased Assets, Mortgage Loans or Contributed Assets in accordance with the
Program Agreements. Except as set forth herein, no Seller Party shall assign any of its rights under any Underlying Repurchase
Documents to any Person.

 

g.Security Interest.
Sellers shall do all things necessary to preserve the Purchased Assets, Contributed Assets, Mortgage Loans and the related
Repurchase Assets, as applicable, so that they remain subject to a first priority perfected security interest hereunder. Without
limiting the foregoing, Seller Parties will comply with all rules, regulations and other laws of any Governmental Authority and
cause the Purchased Assets, Mortgage Loans, Contributed Assets, Underlying Repurchase Documents and the related Repurchase Assets,
as applicable, to comply with all applicable rules, regulations and other laws. Seller Parties will not allow any default for which
Seller Parties are responsible to occur under any Purchased Assets or Contributed Assets, or the related Underlying Repurchase
Documents or the related Repurchase Assets or any Program Agreement and Seller Parties shall fully perform or cause to be performed
when due all of their obligations under any Purchased Assets, Mortgage Loans and Contributed Assets or the related Repurchase Assets
and any Program Agreement.

 

h.Records.

 

(1)Seller Parties
shall collect and maintain or cause to be collected and maintained all Records relating to the Purchased Assets, Mortgage Loans
and Contributed Assets in accordance with industry custom and practice for assets similar to the Purchased Assets, Mortgage Loans
and Contributed Assets, including those maintained pursuant to the preceding subparagraph, and all such Records shall be in Custodian’s
or each Property Manager’s possession unless Buyer otherwise approves. Except in accordance with the Custodial Agreement,
Seller Parties will not allow any such papers, records or files that are an original or an only copy to leave Custodian’s
possession, except for individual items removed in connection with servicing a specific Mortgage Loan or Contributed Asset, in
which event Seller Parties will obtain or cause to be obtained a receipt from a financially responsible person for any such paper,
record or file. Seller Parties or the Servicer of the Mortgage Loans or Contributed Assets will maintain all such Records not in
the possession of Custodian in good and complete condition in accordance with industry practices for assets similar to the Purchased
Assets, Mortgage Loans or Contributed Assets and preserve them against loss.

 

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

 

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

 

i.Books. Each
Seller Party shall keep or cause to be kept in reasonable detail books and records of account of its assets and business and shall
clearly reflect therein the transfer of Purchased Assets to Buyer. Sellers shall cause REO Subsidiary to keep in reasonable detail
books and records of account of its assets and business and shall clearly reflect therein the transfer of Contributed Assets to
REO Subsidiary.

 

j.Approvals.
Each Seller Party shall maintain all licenses, permits or other approvals necessary for such Seller Party to conduct its business
and to perform its obligations under the Program Agreements, and such Seller Party shall conduct its business in all material respects
in accordance with applicable law.

 

k.Material Change
in Business. No Seller Party nor any Guarantor shall make any material change in the nature of its business as carried on at
the date hereof.

 

l.Underwriting
Guidelines; Acquisition Guidelines; Leasing Criteria; Tenant Underwriting Criteria; Servicing Agreement. Without the prior
written consent of Buyer, no Seller shall amend or otherwise modify or permit the amendment or modification of the Underwriting
Guidelines, Acquisition Guidelines, Leasing Criteria or Tenant Underwriting Criteria in any material respect. Without limiting
the foregoing, in the event that a Seller makes any amendment or modification to the Underwriting Guidelines, Acquisition Guidelines,
Leasing Criteria or Tenant Underwriting Criteria, such Seller shall promptly deliver to Buyer a complete copy of the amended or
modified Underwriting Guidelines, Acquisition Guidelines, Leasing Criteria or Tenant Underwriting Criteria, as applicable, specifying
in detail the amendments and modifications set forth therein from the previous copy delivered. In the event that a Servicer makes
any amendment or modification to the applicable Servicing Agreement, Sellers shall promptly deliver to Buyer a complete copy of
such amended or modified Servicing Agreement, specifying in detail the amendments and modifications set forth therein from the
previous copy delivered. Buyer shall not be bound by such amended or modified Servicing Agreement unless Buyer provides written
consent in its sole discretion to any amendment or modification.

 

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m.Distributions.
If an Event of Default has occurred and is continuing, no Seller nor any Guarantor shall pay any dividends with respect to any
capital stock or other equity interests in such entity, whether now or hereafter outstanding, or make any other distribution in
respect thereof, either directly or indirectly, whether in cash or property or in obligations of Sellers or Guarantors.

 

n.Applicable Law.
Each Seller Party and each Guarantor shall comply in all material respects with the requirements of all applicable laws, rules,
regulations and orders of any Governmental Authority.

 

o.Existence.
Each Seller Party and each Guarantor shall preserve and maintain their legal existence and all of their material rights, privileges,
material licenses and franchises.

 

p.Chief Executive
Office; Jurisdiction of Organization. No Seller Party shall move its chief executive office from the address referred to in
Section 13(a)(17) or change its jurisdiction of organization from the jurisdiction referred to in Section 13(a)(17) unless it shall
have provided Buyer 30 days’ prior written notice of such change; provided, however, that no additional notice
is required that such addresses shall change on or about March 14, 2016 to 3043 Townsgate Road, Westlake Village, California 91361.

 

q.Taxes. Each
Seller Party and each Guarantor shall timely file all tax returns that are required to be filed by them and shall timely pay and
discharge all taxes, assessments and governmental charges or levies imposed on it or on its income or profits or on any of its
property prior to the date on which penalties attach thereto, except for any such tax, assessment, charge or levy the payment of
which is being contested in good faith and by proper proceedings and against which adequate reserves are being maintained.

 

r.Transactions
with Affiliates. No Seller Party will enter into any transaction, including, without limitation, any purchase, sale, lease
or exchange of property or the rendering of any service, with any Affiliate, other than any contribution of Contributed Assets
to REO Subsidiary, unless such transaction is (a) otherwise permitted under the Program Agreements, (b) in the ordinary course
of such Seller Party’s business and (c) upon fair and reasonable terms no less favorable to such Seller Party than it would
obtain in a comparable arm’s length transaction with a Person which is not an Affiliate, or make a payment that is not otherwise
permitted by this Section to any Affiliate.

 

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s.Guarantees.
No Seller shall create, incur, assume or suffer to exist any Guarantees, except (i) to the extent reflected in such Seller’s
financial statements or notes thereto and (ii) to the extent the aggregate Guarantees of such Seller do not exceed $250,000.

 

t.Indebtedness.
No Seller shall incur any additional material Indebtedness (other than (i) the Existing Indebtedness specified on Exhibit H
hereto; (ii) usual and customary accounts payable for a mortgage company; (iii) Indebtedness incurred in connection with new or
existing secured lending facilities; and (iv) Indebtedness incurred in connection with an intercompany lending agreement) without
the prior written consent of Buyer.

 

u.Hedging.
Underlying Repurchase Counterparty has entered into Interest Rate Protection Agreements with respect to the New Origination Mortgage
Loans, having terms with respect to protection against fluctuations in interest rates acceptable to Buyer in its sole discretion.
In the event that Underlying Repurchase Counterparty intends to make any change to its policy regarding Interest Rate Protection
Agreements, Sellers shall notify Buyer in writing thirty (30) days prior to Underlying Repurchase Counterparty implementing any
such change.

 

v.True and Correct
Information. All information, reports, exhibits, schedules, financial statements or certificates of each Underlying Repurchase
Counterparty, each Seller Party, each Guarantor, each Property Manager, any Affiliate thereof or any of their officers furnished
to Buyer hereunder and during Buyer’s diligence of each Underlying Repurchase Counterparty, Seller Parties and Guarantors
are and will be true and complete and do not omit to disclose any material facts necessary to make the statements herein or therein,
in light of the circumstances in which they are made, not misleading. All required financial statements, information and reports
delivered by Sellers to Buyer pursuant to this Agreement shall be prepared in accordance with U.S. GAAP, or, if applicable, to
SEC filings, the appropriate SEC accounting regulations.

 

w.Agency Approvals.
On and after approval by the Agencies, each Seller and Underlying Repurchase Counterparty, as applicable, shall maintain its status
with Fannie Mae as an approved lender and Freddie Mac as an approved seller/servicer, in each case in good standing (“Agency
Approvals”). Servicer shall service all Purchased Mortgage Loans which are Committed Mortgage Loans in accordance with
the applicable Agency guide. On and after approval by the Agencies, if any Underlying Repurchase Counterparty or any Seller, as
applicable, for any reason, ceases to possess all such applicable Agency Approvals, or should notification to the relevant Agency
or to HUD, FHA or VA be required, Sellers shall so notify Buyer immediately in writing. Notwithstanding the preceding sentence,
Sellers shall cause each Underlying Repurchase Counterparty to take all necessary action to maintain all of its applicable Agency
Approvals at all times during the term of this Agreement and each outstanding Transaction.

 

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x.Take-out Payments.

 

(1)With respect to
each New Origination Mortgage Loans that are Committed Mortgage Loan, Sellers shall arrange or caused to be arranged that all payments
under the related Take-out Commitment shall be paid directly to Buyer at the account set forth in Section 9 hereof, or to an account
approved by Buyer in writing prior to such payment. With respect to any Agency Take-out Commitment, if applicable, (1) with respect
to the wire transfer instructions as set forth in Freddie Mac Form 987 (Wire Transfer Authorization for a Cash Warehouse Delivery)
such wire transfer instructions are identical to Buyer’s wire instructions or Buyer has approved such wire transfer instructions
in writing in its sole discretion, or (2) the Payee Number set forth on Fannie Mae Form 1068 (Fixed-Rate, Graduated-Payment, or
Growing-Equity Asset Schedule) or Fannie Mae Form 1069 (Adjustable-Rate Asset Schedule), as applicable, shall be identical to the
Payee Number that has been identified by Buyer in writing as Buyer’s Payee Number or Buyer shall have previously approved
the related Payee Number in writing in its sole discretion; with respect to any Take-out Commitment with an Agency, the applicable
agency documents shall list Buyer as sole subscriber, unless otherwise agreed to in writing by Buyer, in Buyer’s sole discretion.

 

(2)With respect to
each Seasoned Mortgage Loan and/or Contributed Asset, for Take-out Commitments with respect to the purchase of twenty-five (25)
or more Seasoned Mortgage Loans and/or Contributed Assets sold to the same Take-out Investor, each Seller shall arrange that all
payments under the related Take-out Commitment shall be paid directly to the Collection Account or REO Subsidiary Account, as applicable.
All other remittances under Take-out Commitments shall be handled in a manner consistent with Section 7 hereof.

 

y.REO Subsidiary
Compliance. Sellers shall cause REO Subsidiary to comply with all requirements and obligations imposed upon it under the applicable
Subsidiary Agreement. Other than with respect to Unrecorded REO Property, Sellers shall not cause, or permit REO Subsidiary to
cause any Contributed Asset to be taken in the name of any Person other than REO Subsidiary without the consent of Buyer.

 

z.Plan Assets.
None of the Underlying Repurchase Counterparty, Seller Parties nor Guarantors shall be an employee benefit plan as defined in Section
3 of Title I of ERISA, or a plan described in Section 4975(e)(1) of the Code and the Seller Parties shall not use “plan assets”
within the meaning of 29 CFR §2510.3 101, as amended by Section 3(42) of ERISA to engage in this Agreement or any Transaction
hereunder. Transactions by or with Seller Parties or Guarantors shall not be subject to any state or local statute regulating investments
of or fiduciary obligations with respect to governmental plans within the meaning of Section 3(32) of ERISA.

 

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aa.Sharing of
Information. The Seller Parties shall allow the Buyer to exchange information related to the Seller Parties and the Transaction
hereunder with third party lenders and the Seller Parties shall permit each third party lender to share such information with the
Buyer.

 

bb.Rental Property
Samples. On the last Business Day of each Property Level Reporting Period, Seller Parties shall test, or caused to be tested,
a random sample of at least twenty five (25%) percent of the Rental Properties subject to Transactions as of the first Business
Day of such Property Level Reporting Period to confirm that (i) they are owned by the REO Subsidiary; (ii) they have no Liens (other
than Permitted Liens) and (iii) they maintain valid title insurance policies, or pro forma owner title policies, covering such
Rental Properties, all in accordance with the terms hereof.  Seller Parties shall use commercially reasonable efforts to ensure
that for any Property Level Reporting Period they will sample Rental Properties not included in any of the three immediately preceding
Property Level Reporting Periods.  Notwithstanding the foregoing, if more than 5% of the Rental Properties in any one Property
Level Reporting Period fail to meet the requirements set forth in clauses (i)-(iii) above, Buyer shall have the right to increase
the percentage of such sample in its sole discretion at the sole cost and expense of the Sellers.

 

cc.Quality Control.
Sellers shall cause each Underlying Repurchase Counterparty to maintain an internal quality control program that verifies, on a
regular basis, the existence and accuracy of all legal documents, credit documents, property appraisals, and underwriting decisions
related to Mortgage Loans and shall provide a report on the results of such quality control program in the Officer’s Compliance
Certificate provided pursuant to Section 17(b)(3). Such program shall be capable of evaluating and monitoring the overall quality
of a Seller’s, or Underlying Repurchase Counterparty’s, as applicable, loan production and servicing activities. Such
program shall (i) ensure that the Mortgage Loans are originated and serviced in accordance with prudent mortgage banking practices
and accounting principles; (ii) guard against dishonest, fraudulent, or negligent acts; and (iii) guard against errors and omissions
by officers, employees, or other authorized persons.

 

dd.Financial Covenants.
Sellers, PMIT and Underlying Repurchase Counterparty shall at all times comply with all financial covenants and/or financial ratios
set forth below:

 

(i)Adjusted
Tangible Net Worth. (A) Underlying Repurchase Counterparty shall maintain an Adjusted Tangible Net Worth of at least $150,000,000,
(B) PennyMac Holdings shall maintain an Adjusted Tangible Net Worth of at least $250,000,000, (C) PMIT shall maintain an Adjusted
Tangible Net Worth of at least $860,000,000 and (D) POP shall maintain an Adjusted Tangible Net Worth of at least $700,000,000.

 

    	 	- 72 -	 

     

    

 

(ii)Indebtedness
to Adjusted Tangible Net Worth Ratio. Underlying Repurchase Counterparty’s ratio of Indebtedness (on and off balance
sheet and excluding (A) Non-Recourse Debt, including any securitization debt, and (B) any intercompany debt eliminated in consolidation)
to Adjusted Tangible Net Worth shall not exceed 10:1. PennyMac Holdings’ ratio of Indebtedness (on and off balance sheet
and excluding (A) Non-Recourse Debt, including any securitization debt, and (B) any intercompany debt eliminated in consolidation)
to Adjusted Tangible Net Worth shall not exceed 10:1. PMIT’s ratio of Indebtedness (on and off balance sheet) to Adjusted
Tangible Net Worth shall not exceed 5:1. POP’s ratio of Indebtedness (on and off balance sheet and excluding (A) Non-Recourse
Debt, including any securitization debt, and (B) any intercompany debt eliminated in consolidation) to Adjusted Tangible Net Worth
shall not exceed 5:1.

 

(iii)Maintenance
of Profitability. PMIT shall maintain profitability of at least $1.00 in Net Income for at least one of the two prior Test
Periods.

 

(iv)Maintenance
of Liquidity. PennyMac Holdings, Underlying Repurchase Counterparty, PennyMac Operating Partnership, L.P. and PMIT shall ensure
that, as of the end of each calendar month, they have consolidated cash and Cash Equivalents other than Restricted Cash in amounts
not less than (i) with respect to the PennyMac Holdings, $10,000,000, (ii) with respect to the Underlying Repurchase Counterparty,
$10,000,000, (iii) with respect to PennyMac Holdings and the Underlying Repurchase Counterparty, $25,000,000 in the aggregate,
(iv) with respect to PMIT, $40,000,000 and (v) with respect to POP, $40,000,000.

 

(v)Additional
Warehouse Line. With respect to New Origination Mortgage Loans, Seasoned Mortgage Loans and REO Properties, Sellers shall maintain
at least one additional warehouse or repurchase facility from unaffiliated entities with respect to assets similar to the New Origination
Mortgage Loans, Seasoned Mortgage Loans and REO Properties, respectively, in a combined amount at least equal to 50% of the applicable
Concentration Limit set forth in the Pricing Side Letter. 

 

ee.Most Favored
Status. Sellers, Guarantors and the Buyer each agree that should a Seller enter into a Warehouse Facility with any Person other
than the Buyer or an Affiliate of the Buyer which by its terms provides more favorable terms to the Buyer with respect to the financial
covenants set forth in Section 14dd hereof (a “More Favorable Agreement”), the terms of this Agreement shall
be deemed automatically amended to include such more favorable terms contained in such More Favorable Agreement; provided, that
in the event that such More Favorable Agreement is terminated, upon notice by the Sellers to the Buyer of such termination, the
original terms of this Agreement shall be deemed to be automatically reinstated. The Sellers, the Guarantors, and the Buyer further
agree to execute and deliver any new agreements or amendments to this Agreement evidencing such provisions, provided that the execution
of such amendment shall not be a precondition to the effectiveness of such amendment, but shall merely be for the convenience of
the parties hereto. Promptly upon a Seller entering into a repurchase agreement or other credit facility with any Person other
than the Buyer, Sellers shall notify Buyer that it has entered into such repurchase agreement or other credit facility and deliver
to Buyer a summary of the material terms related to the comparable financial covenants of such repurchase agreement or other credit
facility in form and substance acceptable to Buyer.

 

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ff.No Amendments/Waivers
of Underlying Repurchase Documents. Without the prior written consent of Buyer, Sellers shall not, and shall not agree, consent
to or suffer to exist any material amendment, modification, supplement, waiver or forbearance with respect to any of the Underlying
Repurchase Documents or any of any Seller’s rights thereunder.

 

gg.Special Purpose
Entity. Sellers shall cause REO Subsidiary to be a Special Purpose Entity that shall (i) own no assets other than the assets
specifically contemplated by the Program Agreements, and will not engage in any business, other than the assets and transactions
specifically contemplated by the Program Agreements; (ii) not incur any Indebtedness or obligation, secured or unsecured, direct
or indirect, absolute or contingent (including guaranteeing any obligation), other than pursuant to the Program Agreements; (iii)
not make any loans or advances to any Affiliate or third party, and shall not acquire obligations or securities of any Sellers’
Affiliates; (iv) pay its debts and liabilities (including, as applicable, shared personnel expenses and overhead expenses) only
from its own assets; (v) comply with the provisions of its organizational documents; (vi) do all things necessary to observe organizational
formalities and to preserve its existence, and not amend, modify or otherwise change its organizational documents, or suffer same
to be amended, modified or otherwise changed, without the Buyer’s prior written consent which shall not be unreasonably withheld;
(vii) maintain all of its books, records and financial statements separate from those of its Affiliates (except that such financial
statements may be to the extent consolidation is required under GAAP or as a matter of applicable law; provided, that (A) appropriate
notation shall be made on such financial statements if prepared to indicate the separateness of the Sellers from such Affiliate
and to indicate that the Sellers’ assets and credit are not available to satisfy the debts and other obligations of such
Affiliate or any other Person, (B) such assets shall also be listed on the applicable Seller’s own separate balance sheet
if prepared and (C) the Sellers shall file its own tax returns if filed, except to the extent consolidation is required or permitted
under applicable law); (viii) be, and at all times will hold itself out to the public as, a legal entity separate and distinct
from any other entity (including any Affiliate), shall correct any known misunderstanding regarding its status as a separate entity,
shall conduct business in its own name, shall not identify itself or any of its Affiliates as a division or part of the other;
(ix) not enter into any transactions other than transactions specifically contemplated by the Program Agreements with any Affiliates
except on commercially reasonable terms similar to those available to unaffiliated parties in an arm’s length transaction;
(x) maintain adequate capital in light of its contemplated business purpose, transactions and liabilities; (xi) not engage in or
suffer any dissolution, winding up, liquidation, consolidation or merger or transfer all or substantially all of its properties
and assets to any Person (except as contemplated herein); (xii) not commingle its funds or other assets with those of any Affiliate
or any other Person and shall maintain its properties and assets in such manner that it would not be costly or difficult to identify,
segregate or ascertain its properties and assets from those of others; (xiii) not institute against, or join any other Person in
instituting against REO Subsidiary any proceedings of the type referred to in the definition of Act of Insolvency hereunder or
seek to substantively consolidate REO Subsidiary in connection with any Act of Insolvency with respect to any Seller; (xiv) will
not hold itself out to be responsible for the debts or obligations of any other Person; (xv) not form, acquire or hold any Subsidiary
or own any equity interest in any other entity; (xvi) allocate fairly and reasonably any overhead for shared office space and services
performed by an employee of an Affiliate; and (xvii) not pledge its assets to secure the obligations of any other Person.

 

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hh. Rental
Property Obligations. With respect to Rental Property, the REO Subsidiary shall (and shall cause the Property Manager to)
not: (1)   (x) remove demolish or materially alter any related fixtures, equipment, personal property
or Improvements with respect to any Rental Property outside of the ordinary course of business, without the consent of
Buyer, (y) commit or suffer any waste of any Rental Property or take any action that might invalidate or give cause for
cancellation of any insurance policy, or do or permit to be done thereon anything that may in any way impair the value of the
Rental Properties, or (z) permit any drilling or exploration for or extraction, removal, or production of any minerals from
the surface or the subsurface of the Rental Properties, regardless of the depth thereof or the method of mining or
extraction thereof without the consent of Buyer;

 

(2)deliver to Buyer,
promptly upon Buyer’s request, evidence reasonably satisfactory to Buyer that all taxes, assessments, water rates, sewer
rents, governmental impositions, and other charges, including without limitation vault charges and license fees for the use of
vaults, chutes and similar areas adjoining the Rental Properties, now or hereafter levied or assessed or imposed against the Rental
Properties or any part thereof, all ground rents, maintenance charges and similar charges, now or hereafter levied or assessed
or imposed against the Rental Properties or any part thereof, and all charges for utility services provided to the Rental Properties
prior to the same becoming delinquent, have been so paid or are not then delinquent;

 

(3)shall use commercially
reasonable efforts to prohibit other users (to the extent the REO Subsidiary has knowledge thereof) of the Rental Properties to
do any act that materially increases the dangers to human health or the environment, poses an unreasonable risk of harm to any
person or entity (whether on or off the Rental Property), impairs or may impair the value of the Rental Properties, is contrary
to any requirement of any insurer, constitutes a public or private nuisance, constitutes waste, or violates any covenant, condition,
agreement or easement applicable to the Rental Properties; and

 

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(4)subject to the
rights of Tenants, shall permit and shall cause the Property Manager to permit, agents, representatives and employees of Buyer
to inspect to the Rental Properties proposed to be subject to any Purchase Price Increase, in each case at reasonable hours and
upon reasonable advance notice; provided that such agents, representatives and employees shall not contact any such Tenants
directly.

 

ii.Leasing Matters.

 

(1)If the REO Subsidiary
(or Property Manager on behalf of the REO Subsidiary) enters into a Lease Agreement with respect to a Rental Property, the REO
Subsidiary shall ensure that such Lease Agreement (i) provides for rental rates and terms comparable to existing local market rates
and terms, (ii) is an arms-length transaction with a bona fide, independent third party Tenant, (iii) does not have a material
adverse effect on the value or quality of the related Rental Property, (iv) is written on one of the standard forms of lease approved
by Buyer, (v) provides for a rental term that is not less than twelve (12) months and (vi) is in compliance with all applicable
law in all material respects. All proposed Lease Agreements which do not satisfy the requirements set forth in this Section 14(ii)(1)
shall be subject to the prior written approval of Buyer. At Buyer’s request, the REO Subsidiary shall promptly deliver to
Buyer copies of all Lease Agreements which are entered into pursuant to this Section 14(ii)(1) together with the REO Subsidiary’s
certification that it has satisfied all of the conditions of this Section 14(ii)(1).

 

(2)The REO Subsidiary
shall (i) ensure that all of the obligations imposed upon the lessee under the applicable Lease Agreements are observed and performed
and shall not do or permit to be done anything to impair the value of any of the applicable Lease Agreements; (ii) enforce all
of the material terms, covenants and conditions contained in the applicable Lease Agreements upon the part of the tenant thereunder
to be observed or performed; (iii) promptly send copies to Buyer of all notices of default or other material matters which the
REO Subsidiary sends or receives with respect to the applicable Lease Agreements and (iv) not consent to any assignment of or subletting
under any Lease Agreements except in accordance with their respective terms.

 

(3)The REO Subsidiary
shall not amend, modify or waive, or permit the amendment, modification or waiver of, the provisions of any Lease Agreement or
terminate, reduce rents under, accept a surrender of space under, or shorten the term of, any Lease Agreement (including any guaranty,
letter of credit or other credit support with respect thereto) without obtaining Buyer’s consent except (i) with respect
to any such action that does not have a material adverse effect on the value of the related Rental Property taken as a whole or
(ii) as the REO Subsidiary (or Property Manager acting on behalf of the REO Subsidiary) may otherwise determine in its reasonable
business judgment, and provided that such Lease Agreement, as amended, modified or waived, is otherwise in compliance with the
requirements of this Agreement. For the avoidance of doubt, a termination of a Lease Agreement with a Tenant who is in default
beyond applicable notice and grace periods shall not be considered an action which has a material adverse effect on the value of
the related Rental Property taken as a whole. Any amendment, modification, waiver, termination, rent reduction, space surrender
or term shortening which does not satisfy the requirements set forth in this Section 14(ii)(3) shall be subject to the prior written
approval of Buyer and its counsel, at the REO Subsidiary’s expense. At Buyer’s request, the REO Subsidiary shall promptly
deliver to Buyer or its designee copies of all such amendments, modifications and waivers which are entered into pursuant to this
Section 14(ii)(3).

 

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(4)The REO Subsidiary
shall (a) cause each related Tenant, in accordance with the terms of the applicable Lease Agreement to or shall itself, directly
or through Property Manager to maintain each Rental Property in good condition and repair (except for ordinary wear and tear),
(b) promptly repair, replace or rebuild any part of any Rental Property which may be destroyed by any casualty or become damaged,
worn or dilapidated or which may be affected by any condemnation; (c) complete and pay for any structure at any time in the process
of construction or repair on the related land of any Rental Property; and (d) otherwise make all commercially reasonable efforts
to preserve the value of each Rental Property, including re-leasing, liquidating and selling such Rental Property when appropriate
in the REO Subsidiary’s reasonable business judgment.

 

(5)The REO Subsidiary
shall use its reasonable best efforts to cause each related Tenant, in accordance with the terms of the applicable Lease Agreement
to, or shall itself, directly or through Property Manager, ensure that: (x) all uses and operations on or of the Rental Properties
are free of Environmental Issues and in compliance with permits issued pursuant thereto and (y) the Rental Properties shall
be kept free and clear of all Liens and other encumbrances that may be imposed as a result of any Environmental Issue, whether
due to any act or omission of the REO Subsidiary, Tenant or any other person or entity.

 

(6)In the
event that a Tenant under a Rental Property is replaced with a new Tenant and upon request from Buyer, the REO Subsidiary shall
deliver to Custodian a Tenant Instruction Notice duly executed in blank for such new Tenant, together with a copy of the related
Lease Agreement for such new Tenant.

 

jj.Property Management.
The REO Subsidiary shall not permit (i) the assignment of Property Manager’s rights or obligations under the Property Management
Agreement, (ii) the removal of Property Manager, or (iii) the amendment, modification, waiver, termination or revocation of the
Property Management Agreement without Buyer’s prior written consent, or except as otherwise permitted in both the Program
Management Agreement Side Letter and the Property Management Agreement. The REO Subsidiary shall strictly enforce the terms and
provisions of the Program Management Agreement and shall not, without Buyer’s prior written consent, waive the performance
by Program Manager of any action, or any default under the Program Management Agreement resulting from Program Manager’s
failure to perform any action, if the failure to perform such action could reasonably be expected to adversely affect the REO Subsidiary,
the Rental Properties or Buyer in any material respect. The REO Subsidiary shall not and shall not permit the Property Manager
to enter into any other property management agreement in respect of the Rental Properties other than the Property Management Agreement.

 

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kk.REO Subsidiary
Account. Sellers have established and shall maintain a REO Subsidiary Account and shall ensure at all times that such REO Subsidiary
Account is subject to a REO Subsidiary Account Control Agreement. Sellers shall maintain a balance in the REO Subsidiary Account
at least equal to the REO Subsidiary Account Required Balance, which will be held as cash margin and additional collateral for
all Obligations under this Agreement. Any interest on funds deposited in the REO Subsidiary Account shall be deposited in the REO
Subsidiary Account. Upon the Termination Date and the payment of all amounts due by the Sellers to the Buyer hereunder, all amounts
on deposit in the REO Subsidiary Account shall be remitted to the Sellers. Upon the occurrence and continuance of an Event of Default,
the distribution and application of funds on deposit in the REO Subsidiary Account shall, at the direction of the Buyer, be applied
as determined by Buyer in its sole discretion.

 

15.Events
of Default

 

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

 

a.Payment Failure.
Failure of any Seller to (i) make any payment of Price Differential or Repurchase Price or any other sum which has become
due, on a Payment Date, an Optional Partial Prepayment Period or a Repurchase Date or otherwise, whether by acceleration or otherwise,
under the terms of this Agreement, any other warehouse and security agreement or any other document evidencing or securing Indebtedness
of any Seller to Buyer or to any Affiliate of Buyer, or (ii) cure any Margin Deficit when due pursuant to Section 6 hereof.

 

b.Cross Default.

 

Any Seller Party, Underlying
Repurchase Counterparty, any Guarantor or any Affiliates thereof shall be in default under (i) any Indebtedness, in the aggregate,
in excess of $1.5 million of any Seller, Underlying Repurchase Counterparty, any Guarantor or any Affiliate thereof or $500,000
of the REO Subsidiary, which default (1) involves the failure to pay a matured obligation, or (2) permits the acceleration of the
maturity of obligations by any other party to or beneficiary with respect to such Indebtedness, or (ii) any other contract or contracts,
in the aggregate in excess of $1.5 million to which any Seller, Underlying Repurchase Counterparty, any Guarantor or any Affiliate
thereof or $500,000 to which the REO Subsidiary is a party which default (1) involves the failure to pay a matured obligation,
or (2) permits the acceleration of the maturity of obligations by any other party to or beneficiary of such contract.

 

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c.Assignment.
Assignment or attempted assignment by any Seller Party or Guarantor of this Agreement or any rights hereunder without first obtaining
the specific written consent of Buyer, or the granting by any Seller of any security interest, lien or other encumbrances on any
Purchased Assets, Mortgage Loans or Contributed Assets, as applicable, to any person other than Buyer; or the granting by REO Subsidiary
of any security interest, lien or other encumbrances on any Purchased Asset or Contributed Asset to any person other than Buyer
or nominee approved by Buyer.

 

d.Insolvency.
An Act of Insolvency shall have occurred with respect to (i) any Seller Party, Underlying Repurchase Counterparty, any Guarantor
or any Affiliate or (ii) solely to the extent the Property Manager is an Affiliate of a Seller, to the Property Manager and Seller
has not replaced the Property Manager and appointed a successor Property Manager acceptable to Buyer within five (5) Business Days
of such Act of Insolvency.

 

e.Material Adverse
Change. Any material adverse change in the Property, business, financial condition or operations of any Seller Party, Underlying
Repurchase Counterparty, any Guarantor or any of their Affiliates shall occur, in each case as determined by Buyer in its sole
good faith discretion, or any other condition shall exist which, in Buyer’s sole good faith discretion, constitutes a material
impairment of any Seller Party’s or any Guarantor’s ability to perform its obligations under this Agreement or any
other Program Agreement or Underlying Repurchase Counterparty’s ability to perform under Underlying Repurchase Documents.

 

f.Breach of Specified
Representation or Covenant or Obligation. A breach by any Seller Party or either Guarantor of any of the representations, warranties
or covenants or obligations set forth (i) in Sections 13(a)(1) (Seller Parties and Guarantors Existence), 13(a)(7) (Solvency),
13(a)(12) (Material Adverse Change), 13(a)(19) (Adjusted Tangible Net Worth), 14b (Prohibition of Fundamental
Changes), 14m (Distributions), 14o (Existence), 14s (Guarantees), 14z (Plan Assets), 14gg (Special
Purpose Entity), 14ii (Rental Property Obligations), 14jj (Leasing Matters) or 14kk (Property Management)
of this Agreement or (ii) Sections 13(a)(23) (Other Indebtedness), 14t (Indebtedness), 14dd (Financial Covenants)
or 14ee (Most Favored Status) of this Agreement and such breach identified in this clause (ii) shall remain unremedied for
one (1) Business Day.

 

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g.Breach of Take-out
Payment Covenant. A breach by any Seller or any Guarantor of the covenant set forth in Section 14x (Take-out Payments),
if such breach is not cured within one (1) Business Day.

 

h.Breach of Non-Specified
Representation or Covenant. A breach by any Seller Party or any Guarantor of any other representation, warranty or covenant
set forth in this Agreement in any material respect (and not otherwise specified in Sections 15(f) and (g) above), if such breach
is not cured within five (5) Business Days (other than the representations and warranties set forth in Schedule 1, which
shall be considered solely for the purpose of determining the Asset Value, the existence of a Margin Deficit and the obligation
to repurchase such Mortgage Loan or pay the Allocated Repurchase Price with respect to such Contributed Asset, as applicable) unless
(i) such party shall have made any such representations and warranties with knowledge that they were materially false or misleading
at the time made, (ii) any such representations and warranties have been determined by Buyer in its sole discretion to be materially
false or misleading on a regular basis, or (iii) Buyer, in its sole discretion, determines that such breach of a material representation,
warranty or covenant materially and adversely affects (A) the condition (financial or otherwise) of such party, its Subsidiaries
or Affiliates; or (B) Buyer’s determination to enter into this Agreement or Transactions or Purchase Price Increases, as
applicable, with such party, then such breach shall constitute an immediate Event of Default and no Seller Party shall have any
cure right hereunder).

 

i.Change of Control.
The occurrence of a Change in Control without prior consent of Buyer which consent shall be granted or withheld in its sole discretion.

 

j.Failure to Transfer.
Any Seller Party fails to either (i) transfer the Purchased Assets to Buyer, or (ii) transfer the Contributed Assets to REO Subsidiary,
subject to the additional qualifications with respect to Unrecorded REO Properties on or prior to the applicable Purchase Date
(provided Buyer has tendered the related Purchase Price).

 

k.Judgment.
A final judgment or judgments for the payment of money in excess of (i) $10,000,000 in the aggregate shall be rendered against
any Seller, Underlying Repurchase Counterparty or any of their Affiliates or (ii) $250,000 in the aggregate shall be rendered against
REO Subsidiary, by one or more courts, administrative tribunals or other bodies having jurisdiction and the same shall not be satisfied,
discharged (or provision shall not be made for such discharge) or bonded, or a stay of execution thereof shall not be procured,
within 30 days from the date of entry thereof. 

 

l.Government Action.
Any Governmental Authority or any person, agency or entity acting or purporting to act under governmental authority shall have
taken any action to condemn, seize or appropriate, or to assume custody or control of, all or any substantial part of the Property
of any Seller Party, Underlying Repurchase Counterparty, Guarantors or any Affiliate thereof, or shall have taken any action to
displace the management of any Seller Party, Guarantors or any Affiliate thereof or to curtail its authority in the conduct of
the business of any Seller Party, Underlying Repurchase Counterparty, Guarantors or any Affiliate thereof, or takes any action
in the nature of enforcement to remove, limit or restrict the approval of any Seller Party, Underlying Repurchase Counterparty,
Guarantors or Affiliate as an issuer, buyer or a seller/servicer of Purchased Assets, Contributed Assets or Mortgage Loans or securities
backed thereby, and such action provided for in this Section 15(l) shall not have been discontinued or stayed within 30 days.

 

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m.Inability to
Perform. A Responsible Officer of any Seller Party, Underlying Repurchase Counterparty, or any Guarantor shall admit its inability
to, or its intention not to, perform any of the Obligations hereunder or any Guarantor’s obligations hereunder or under the
Guaranty or Underlying Repurchase Counterparty’s obligations under the Underlying Repurchase Documents.

 

n.Security Interest.
This Agreement shall for any reason cease to create a valid, first priority security interest in any material portion of the Purchased
Assets or other Repurchase Assets purported to be covered hereby.

 

o.Financial Statements.
Sellers’, Underlying Repurchase Counterparty, or Guarantors’ audited annual financial statements or the notes thereto
or other opinions or conclusions stated therein shall be qualified or limited by reference to the status of Sellers, Underlying
Repurchase Counterparty, or Guarantors as a “going concern” or a reference of similar import.

 

p.Underlying Repurchase
Documents and Underlying Repurchase Counterparties. (A) Any material provision of any Underlying Repurchase Document shall
at any time for any reason cease to be valid and binding or in full force and effect; or (B) The Underlying Repurchase Counterparty
shall deny that it has any or further liability or obligation under any material provision of any Underlying Repurchase Document;
or (C) any Seller or the Underlying Repurchase Counterparty shall fail to perform or observe any material covenant, term, obligation
or agreement contained in any Underlying Repurchase Document or defaults in the performance or observance of any of its obligations
under any Underlying Repurchase Document and such default shall continue after the earlier of (x) the expiration of the grace period
applicable thereto under such Underlying Repurchase Document and (y) two (2) Business Days; or (D) The validity or enforceability
of any material provision of any Underlying Repurchase Document shall be contested by any party thereto; or (E) Any representation
or warranty set forth on Schedule 1, Part II shall be untrue in any material respect; unless in each case of clauses
(A) through (E), the related Mortgage Loans subject to the Underlying Repurchase Document are repurchased by any Seller within
two (2) Business Days following notice or knowledge thereof.

 

q.Guarantor Breach.
A breach by any Guarantor of any material representation, warranty or covenant set forth in the Guaranty or any other Program Agreement,
any “event of default” by any Guarantor under the Guaranty, any repudiation of the Guaranty by any Guarantor, or if
the Guaranty is not enforceable against any Guarantor.

 

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r.REIT Qualification.
The failure of PennyMac Mortgage Investment Trust to qualify as a REIT and Buyer has delivered notice of an Event of Default to
the Sellers with respect thereto.

 

s.Governmental
Event. Buyer shall determine, in its sole discretion, that a Governmental Event, individually or collectively, and whether
unforeseen or arising out of any Seller Party’s or Underlying Repurchase Counterparty’s existing applications, communications
and correspondence with any Governmental Authority or Person, has had, or is likely to have, a Material Adverse Effect, or an adverse
effect upon its ability to perform its obligations under this Agreement or any other material agreement to which it is a party
or that may otherwise materially impair, limit or restrict any Seller Party’s or Underlying Repurchase Counterparty’s
ability to conduct its business or its operations.

 

t.REO
Subsidiary Breach. A breach by REO Subsidiary of any material representation, warranty or covenant set forth in the Property
Contribution Agreement, Subsidiary Agreement or any other Program Agreement, any “event of default” by REO Subsidiary
under the Property Contribution Agreement, any repudiation of the Property Contribution Agreement or Subsidiary Agreement by REO
Subsidiary, or if the Property Contribution Agreement or Subsidiary Agreement is not enforceable against REO Subsidiary.

 

u.Property Manager
Termination Event. The occurrence of a Property Manager Termination Event and a Seller has not appointed a successor Property
Manager acceptable to Buyer within thirty (30) days of Buyer’s written request.

 

An Event of Default shall
be deemed to be continuing unless expressly waived by Buyer in writing.

 

16.Remedies
Upon Default

 

In the event that an
Event of Default shall have occurred:

 

a.Buyer may, at its
option (which option shall be deemed to have been exercised immediately upon the occurrence of an Act of Insolvency of any Seller
Party or any Affiliate), declare an Event of Default to have occurred hereunder and, upon the exercise or deemed exercise of such
option, the Repurchase Date for each Transaction hereunder shall, if it has not already occurred, be deemed immediately to occur
(except that, in the event that the Purchase Date for any Transaction or Purchase Price Increase Date for any Purchase Price Increase
has not yet occurred as of the date of such exercise or deemed exercise, such Transaction or Purchase Price Increase shall be deemed
immediately canceled). Buyer shall (except upon the occurrence of an Act of Insolvency) give notice to Seller Parties and Guarantors
of the exercise of such option as promptly as practicable.

 

    	 	- 82 -	 

     

    

 

b.If Buyer exercises
or is deemed to have exercised the option referred to in subparagraph (a) of this Section, (i) any Seller’s obligations
in such Transactions to repurchase all Purchased Assets and Repurchase Assets, at the Repurchase Price therefor on the Repurchase
Date determined in accordance with subparagraph (a) of this Section, shall thereupon become immediately due and payable, (ii) all
Income paid after such exercise or deemed exercise shall be retained by Buyer and applied, in Buyer’s sole discretion, to
the aggregate unpaid Repurchase Prices for all outstanding Transactions and any other amounts owing by Sellers hereunder, and (iii) a
Seller Party shall immediately deliver to Buyer the Asset Files relating to any Purchased Assets and Repurchase Assets subject
to such Transactions then in such Seller Party’s possession or control.

 

c.Buyer also shall
have the right to obtain physical possession, and to commence an action to obtain physical possession, of all Records and files
of each Seller Party relating to the Purchased Assets, Mortgage Loans and Contributed Assets and all documents relating to the
Purchased Assets and Repurchase Assets (including, without limitation, any legal, credit or servicing files with respect to the
Purchased Assets and Repurchase Assets) which are then or may thereafter come in to the possession of any Seller Party or any third
party acting for such Seller Party. To obtain physical possession of any Purchased Assets or Repurchase Assets held by Custodian,
Buyer shall present to Custodian a Trust Receipt. Without limiting the rights of Buyer hereto to pursue all other legal and equitable
rights available to Buyer for Seller Party’s failure to perform its obligations under this Agreement, each of the Seller
Parties acknowledges and agrees that the remedy at law for any failure to perform obligations hereunder would be inadequate and
Buyer shall be entitled to specific performance, injunctive relief, or other equitable remedies in the event of any such failure.
The availability of these remedies shall not prohibit Buyer from pursuing any other remedies for such breach, including the recovery
of monetary damages.

 

d.Buyer shall have
the right to direct all servicers or the Property Manager then servicing or managing any Purchased Mortgage Loans and Contributed
Assets to remit all collections thereon to Buyer, and if any such payments are received by any Seller Party, such Seller Party
shall not commingle the amounts received with other funds of such Seller Party and shall promptly pay them over to Buyer. Buyer
shall also have the right to terminate any one or all of the servicers or Property Manager then servicing or managing any Purchased
Mortgage Loans and Contributed Assets with or without cause. In addition, Buyer shall have the right to immediately sell the Purchased
Assets, cause REO Subsidiary to sell the Contributed Assets and liquidate all Repurchase Assets. Such disposition of Purchased
Assets, Mortgage Loans, Contributed Assets or Repurchase Assets may be, at Buyer’s option, on either a servicing-released
or a servicing-retained basis. Buyer shall not be required to give any warranties as to the Purchased Assets, Mortgage Loans, Contributed
Assets or Repurchase Assets with respect to any such disposition thereof. Buyer may specifically disclaim or modify any warranties
of title or the like relating to the Purchased Assets, Mortgage Loans, Contributed Assets or Repurchase Assets. The foregoing procedure
for disposition of the Purchased Assets, Mortgage Loans, Contributed Assets or Repurchase Assets and liquidation of the Repurchase
Assets shall not be considered to adversely affect the commercial reasonableness of any sale thereof. Each Seller Party agrees
that it would not be commercially unreasonable for Buyer to dispose of the Purchased Assets or to cause the disposition of Contributed
Assets or dispose of the Repurchase Assets or any portion thereof by using Internet sites that provide for the auction of assets
similar to the Purchased Assets, Mortgage Loans, Contributed Assets or the Repurchase Assets, or that have the reasonable capability
of doing so, or that match buyers and sellers of assets. Buyer shall be entitled to place the Purchased Assets or cause the placement
of the Contributed Assets in a pool for issuance of securities at the then-prevailing price for such securities and to sell such
securities for such prevailing price in the open market. Buyer shall also be entitled to sell any or all of such Purchased Assets
and Repurchase Assets individually for the prevailing price. Buyer shall also be entitled, in its sole discretion to elect, in
lieu of selling all or a portion of such Purchased Assets and Repurchase Assets or causing the sale of all or a portion of such
Purchased Assets or Repurchase Assets, to give the Sellers credit for such Purchased Assets and the Repurchase Assets in an amount
equal to the Market Value of the Purchased Assets and Repurchase Assets against the aggregate unpaid Repurchase Price and any other
amounts owing by the Sellers hereunder.

 

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e.Upon the happening
of one or more Events of Default, Buyer may apply any proceeds from the liquidation of the Purchased Assets and Repurchase Assets
to the Repurchase Prices hereunder and all other Obligations in the manner Buyer deems appropriate in its sole discretion.

 

f.Each Seller Party
shall be liable to Buyer for (i) the amount of all reasonable legal or other expenses (including, without limitation, all
costs and expenses of Buyer in connection with the enforcement of this Agreement or any other agreement evidencing a Transaction,
whether in action, suit or litigation or bankruptcy, insolvency or other similar proceeding affecting creditors’ rights generally,
further including, without limitation, the reasonable fees and expenses of counsel (including the costs of internal counsel of
Buyer) incurred in connection with or as a result of an Event of Default, (ii) damages in an amount equal to the cost (including
all fees, expenses and commissions) of entering into replacement transactions and entering into or terminating hedge transactions
in connection with or as a result of an Event of Default, and (iii) any other loss, damage, cost or expense directly arising
or resulting from the occurrence of an Event of Default in respect of a Transaction.

 

g.To the extent permitted
by applicable law, Sellers shall be liable to Buyer for interest on any amounts owing by Sellers hereunder, from the date Sellers
become liable for such amounts hereunder until such amounts are (i) paid in full by Sellers or (ii) satisfied in full
by the exercise of Buyer’s rights hereunder. Interest on any sum payable by Sellers under this Section 16(g) shall accrue
at a rate equal to the Post-Default Rate.

 

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h.Each Seller Party
recognizes that the market for the Purchased Assets or Contributed Assets may not be liquid and as a result it may not be possible
for Buyer to sell all of the Purchased Assets on a particular Business Day, or in a transaction with the same purchaser, or in
the same manner. Each Seller Party further recognizes that Buyer may be unable to effect a public sale of any or all of the REO
Subsidiary Interests, by reason of certain prohibitions contained in the 1934 Act and applicable state securities laws or otherwise,
and may be compelled to resort to one or more private sales thereof to a restricted group of purchasers which will be obliged to
agree, among other things, to acquire such securities for their own account for investment and not a view to the distribution or
resale thereof. In view of the nature of the REO Subsidiary Interests, each Seller Party agrees that liquidation of any REO Subsidiary
Interests may be conducted in a private sale and at such price as Buyer may deem commercially reasonable. Buyer shall be under
no obligation to delay a sale of any REO Subsidiary Interests for the period of time necessary to permit the applicable Seller
to register the REO Subsidiary Interests for public sale under the 1934 Act, or under applicable state securities laws, even if
such Seller would agree to do so.

 

i.Each Seller Party
agrees to use its reasonable efforts to do or cause to be done all such other acts as may be reasonably necessary to make any sale
or sales of any portion of the REO Subsidiary Interests pursuant to this Agreement valid and binding and in compliance with any
and all other applicable laws other than registration under applicable securities laws, provided that each Seller shall have no
obligation to register the REO Subsidiary Interests for public sale under the 1934 Act. Each Seller Party further agrees that a
breach of any of the covenants contained in this Section will cause irreparable injury to Buyer, that Buyer has no adequate remedy
at law in respect of such breach and, as a consequence, that each and every covenant contained in this Section shall be specifically
enforceable against the Seller Parties, and each Seller Party hereby waives and agrees not to assert any defenses against an action
for specific performance of such covenants except for defense that no Event of Default has occurred hereunder.

 

j.Buyer shall have,
in addition to its rights hereunder, any rights otherwise available to it under any other agreement or applicable law.

 

k.Buyer may exercise
one or more of the remedies available to Buyer immediately upon the occurrence of an Event of Default and, except to the extent
provided in subsections (a) and (d) of this Section, at any time thereafter without notice to Seller Parties or Guarantors. All
rights and remedies arising under this Agreement as amended from time to time hereunder are cumulative and not exclusive of any
other rights or remedies which Buyer may have.

 

    	 	- 85 -	 

     

    

 

l.Buyer may enforce
its rights and remedies hereunder without prior judicial process or hearing, and each Seller Party and each Guarantor hereby expressly
waives any defenses such Seller Party and such Guarantor might otherwise have to require Buyer to enforce its rights by judicial
process. Each Seller Party and each Guarantor also waives any defense (other than a defense of payment or performance) such Seller
Party and such Guarantor might otherwise have arising from the use of nonjudicial process, enforcement and sale of all or any portion
of the Repurchase Assets, or from any other election of remedies. Each Seller Party and each Guarantor recognizes that nonjudicial
remedies are consistent with the usages of the trade, are responsive to commercial necessity and are the result of a bargain at
arm’s length.

 

m.Buyer shall have
the right to perform reasonable due diligence with respect to each Seller Party and the Purchased Assets and Repurchase Assets,
which review shall be at the expense of such Seller.

 

n.To the fullest
extent permitted by law, the REO Subsidiary for itself and its successors and assigns, waives all rights to a marshalling of the
assets of the REO Subsidiary, the REO Subsidiary’s partners or members and of the Rental Properties, or to a sale in inverse
order of alienation in the event of foreclosure of all or any of the Mortgages, and agrees not to assert any right under any laws
pertaining to the marshalling of assets, the sale in inverse order of alienation, homestead exemption, the administration of estates
of decedents, or any other matters whatsoever to defeat, reduce or affect the right of Buyer under the Program Agreements to a
sale of the Rental Properties for the collection of the Repurchase Assets without any prior or different resort for collection
or of the right of Buyer to the payment of the Repurchase Assets out of the net proceeds of the Rental Properties in preference
to every other claimant whatsoever. In addition, the REO Subsidiary, for itself and its successors and assigns, waives in the event
of foreclosure of any or all of the Mortgages, any equitable right otherwise available to the REO Subsidiary which would require
the separate sale of the Rental Properties or require Buyer to exhaust its remedies against any Rental Property or any combination
of the Rental Properties before proceeding against any other Rental Property or combination of Rental Properties; and further in
the event of such foreclosure the REO Subsidiary does hereby expressly consent to and authorizes, at the option of Buyer, the foreclosure
and sale either separately or together of any combination of the Rental Properties.

 

17.Reports

 

a.Default Notices.
Seller Parties or Guarantors shall furnish to Buyer (i) promptly, copies of any material and adverse notices (including, without
limitation, notices of defaults, breaches, potential defaults or potential breaches) and any material financial information that
is not otherwise required to be provided by Seller Parties or Guarantors hereunder which is given to Seller Parties’ or Guarantors’
lenders and (ii) immediately, notice of the occurrence of any (A) Event of Default hereunder, (B) default or breach by Seller
Parties or Servicer or Guarantors of any obligation under any Program Agreement or any material contract or agreement of Seller
Parties, Servicer or Guarantors or (C) event or circumstance that such party reasonably expects has resulted in, or will, with
the passage of time, result in, a Material Adverse Effect or an Event of Default or such a default or breach by such party.

 

    	 	- 86 -	 

     

    

 

b.Financial Notices.
Sellers or PennyMac Mortgage Investment Trust shall furnish to Buyer:

 

(1)as soon as available
and in any event within forty (40) calendar days after the end of each calendar month, the unaudited consolidated balance sheets
of Sellers and PennyMac Mortgage Investment Trust and their consolidated Subsidiaries as at the end of such period and the related
unaudited consolidated statements of income and retained earnings for the Sellers and PennyMac Mortgage Investment Trust and their
consolidated Subsidiaries for such period and the portion of the fiscal year through the end of such period, accompanied by a certificate
of a Responsible Officer of Sellers and PennyMac Mortgage Investment Trust, which certificate shall state that said consolidated
financial statements fairly present in all material respects the consolidated financial condition and results of operations of
Sellers and PennyMac Mortgage Investment Trust and their consolidated Subsidiaries in accordance with GAAP (other than solely with
respect to footnotes, year-end adjustments and cash flow statements) consistently applied, as at the end of, and for, such period;

 

(2)to the extent
not filed with the SEC on EDGAR, as soon as available and in any event within ninety (90) days after the end of each fiscal year
of Sellers or PennyMac Mortgage Investment Trust, the consolidated balance sheets of Sellers, PennyMac Mortgage Investment Trust
and their consolidated Subsidiaries as at the end of such fiscal year and the related consolidated statements of income and retained
earnings and of cash flows for the Sellers or PennyMac Mortgage Investment Trust and their consolidated Subsidiaries for such year,
setting forth in each case in comparative form the figures for the previous year, accompanied by an opinion thereon of independent
certified public accountants of recognized national standing, which opinion and the scope of audit shall be acceptable to Buyer
in its sole discretion, shall have no “going concern” qualification and shall state that said consolidated financial
statements fairly present the consolidated financial condition and results of operations of Sellers or PennyMac Mortgage Investment
Trust and their respective consolidated Subsidiaries as at the end of, and for, such fiscal year in accordance with GAAP

 

(3)at the time the
Sellers and PennyMac Mortgage Investment Trust furnish each set of financial statements pursuant to Section 17(b)(1) or (2) above,
an Officer’s Compliance Certificate or, with respect to 17(b)(2) above, (at the time filed with the SEC on EDGAR), a certificate
of a Responsible Officer of Sellers and PennyMac Mortgage Investment Trust in the form attached as Exhibit A to the Pricing
Side Letter;

 

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(4)if applicable,
notice of any 10-K or 10-Q filings with the SEC on EDGAR by Sellers or PennyMac Mortgage Investment Trust, within five (5) Business
Days of such filing with the SEC; and

 

(5)as soon as available
and in any event within thirty (30) days of receipt thereof:

 

(a)reserved;

 

(b)copies of relevant
portions of all final written Agency, FHA, VA, Governmental Authority and investor audits, examinations, evaluations, monitoring
reviews and reports of its operations (including those prepared on a contract basis) which provide for or relate to (i) material
corrective action required, (ii) material sanctions proposed, imposed or required, including without limitation notices of defaults,
notices of termination of approved status, notices of imposition of supervisory agreements or interim servicing agreements, and
notices of probation, suspension, or non-renewal, or (iii) “report cards,” “grades” or other classifications
of the quality of Sellers’ operations;

 

(c)such other information
regarding the financial condition, operations, or business of the Sellers or Guarantors as Buyer may reasonably request; and

 

(d)the particulars
of any Event of Termination in reasonable detail.

 

c.Notices of Certain
Events. As soon possible and in any event within five (5) Business Days of knowledge thereof, Sellers shall furnish to Buyer
notice of the following events:

 

(1)a change in the
insurance coverage required of any Seller Party, Servicer, Property Manager or any other Person pursuant to any Program Agreement,
with a copy of evidence of same attached;

 

(2)any material dispute,
litigation, investigation, proceeding or suspension between a Seller or Servicer, on the one hand, and any Governmental Authority
or any Person;

 

(3)any material change
in accounting policies or financial reporting practices of a Seller or Servicer;

 

(4)that the underlying
Mortgaged Property, with respect to any Purchased Mortgage Loan or any Contributed Asset has been damaged by waste, fire, earthquake
or earth movement, windstorm, flood, tornado or other casualty, or otherwise damaged so as to affect adversely the value of such
Mortgage Loan, Rental Property or REO Property;

 

    	 	- 88 -	 

     

    

 

(5)any material issues
raised upon examination of a Seller or such Seller’s facilities by any Governmental Authority;

 

(6)any material change
in the Indebtedness of a Seller, including, without limitation, any default, renewal, non-renewal, termination, increase in available
amount or decrease in available amount related thereto;

 

(7)any default related
to any Repurchase Asset, including without limitation any default under any Underlying Repurchase Documents, or any lien or security
interest (other than security interests created hereby or by the other Program Agreements) on, or claim asserted against, any of
the Purchased Assets or any Repurchase Asset;

 

(8)any Underlying
Repurchase Counterparty for any reason ceases to possess all applicable Agency approvals, or an event has occurred or Underlying
Repurchase Counterparty has a reason to believe or suspect that an event will occur prior to the issuance of the Agency Security
or the consummation of the Take-Out Commitment, that will require notification to an Agency or HUD, FHA or VA;

 

(9)any other event,
circumstance or condition that has resulted, or has a possibility of resulting, in a Material Adverse Effect with respect to a
Seller or Servicer;

 

(10)the occurrence
of any material employment dispute and a description of the strategy for resolving it that has the possibility of resulting in
a Material Adverse Effect;

 

(11)without limiting
any of the other reporting obligations of Sellers hereunder, Sellers shall promptly notify Buyer of any Governmental Event or update
thereto, and shall include the particulars of each update with sufficient detail as is satisfactory to Buyer;

 

(12)any notice a
Seller receives from an Underlying Repurchase Counterparty in accordance with the terms of the Underlying Repurchase Documents
relating to a material event, circumstance or condition affecting the Servicer; and

 

(13)with respect
to the sample testing required pursuant to Section 14.bb hereof, if any such tested Rental Property in any one Property Level Reporting
Period fails to meet the requirements set forth in Section 14bb.(i)-(iii), and such failure is not cured within sixty (60) days.

 

d.Portfolio Performance
Data. On the first Reporting Date of each calendar month, Sellers will furnish to Buyer (i) in the event the Seasoned Mortgage
Loans are serviced on a “retained” basis, an electronic Purchased Mortgage Loan and Contributed Asset performance data
for Seasoned Mortgage Loans, including, without limitation, delinquency reports and volume information, broken down by product
(i.e., delinquency, foreclosure and net charge-off reports) and (ii) electronically, in a format mutually acceptable to
Buyer and Sellers, servicing information, including, without limitation, those fields reasonably requested by Buyer from time to
time, on a loan-by-loan basis and in the aggregate, with respect to the Purchased Mortgage Loans serviced by any Seller or any
Servicer for the month (or any portion thereof) prior to the Reporting Date and, with respect to Seasoned Mortgage Loans and Contributed
Assets, the current BPO and the current BPO date. In addition to the foregoing information on each Reporting Date, Sellers will
furnish to Buyer such information upon (i) the occurrence and continuation of an Event of Default and (ii) upon any Purchased Mortgage
Loan becoming an Aged Loan or Aged New Origination Performing Loan.

 

    	 	- 89 -	 

     

    

 

e.Quality Control
Reports. Within forty (40) days following the end of each calendar month, monthly quality control reports or similar reports
generated, based on a sample of at least 10% of volume, with respect to the Mortgage Loan product types owned or financed by Underlying
Repurchase Counterparty; and

 

f.Pending/Completed
Repurchase Requests. Within forty (40) days following the end of each calendar month, a summary of the portfolio performance
of New Origination Mortgage Loans owned or financed by Underlying Repurchase Counterparty including representation breaches, missing
document breaches, repurchases due to fraud, early payment default requests, and New Origination Mortgage Loans owned or financed
by Underlying Repurchase Counterparty subject to other warehouse lines in excess of sixty (60) days summarized on the basis of
(a) pending repurchase demands (including weighted average duration of outstanding request), (b) satisfied repurchase demands and
(c) total repurchase demands.

 

g.Other Reports.
Sellers shall deliver to Buyer any other reports or information reasonably requested by Buyer or as otherwise required pursuant
to this Agreement including without limitation any reports prepared by the Diligence Agent, if any, in accordance with Section
14.bb hereof and any reports or information received from any Underlying Repurchase Counterparty.

 

h.Loan Activity
Report. Sellers hereby acknowledge that by the 10th Business Day of each calendar month, Sellers will furnish to
Buyer (i) an Asset Schedule and (ii) a loan activity report comprised of the information set forth in Exhibit K attached
hereto.

 

i.Property Management
Report. Within forty (40) days after the end of each calendar month, a monthly property management report of Property Manager,
in the form attached hereto as Exhibit B, setting forth information regarding the Rental Properties with respect to the
immediately preceding calendar month, together with a copy of each other report delivered by Property Manager to the REO Subsidiary
pursuant to the Property Management Agreement (to the extent not delivered directly to Buyer by Property Manager).

 

    	 	- 90 -	 

     

    

 

18.Repurchase
Transactions

 

Buyer may, in its sole
election, engage in repurchase transactions with the Purchased Assets or Repurchase Assets or its interests in Contributed Assets
or otherwise pledge, hypothecate, assign, transfer or otherwise convey the Purchased Assets or Repurchase Assets to a counterparty
of Buyer’s choice. Unless an Event of Default shall have occurred, no such transaction shall relieve Buyer of its obligations
to transfer Purchased Assets or Repurchase Assets to Sellers pursuant to Section 4 hereof, or of Buyer’s obligation to credit
or pay Income to, or apply Income to the obligations of, Sellers pursuant to Section 7 hereof. In the event Buyer engages in a
repurchase transaction with any of the Purchased Assets or Repurchase Assets or its interests in Contributed Assets or otherwise
pledges or hypothecates any of the Purchased Assets or its interests in Contributed Assets, Buyer shall have the right to assign
to Buyer’s counterparty any of the applicable representations or warranties herein and the remedies for breach thereof, as
they relate to the Purchased Assets or Repurchase Assets or its interests in Contributed Assets that are subject to such repurchase
transaction.

 

19.Single
Agreement

 

Buyer and each Seller
Party acknowledge they have and will enter into each Transaction hereunder, in consideration of and in reliance upon the fact that,
all Transactions hereunder constitute a single business and contractual relationship and have been made in consideration of each
other. Accordingly, each of Buyer and each Seller Party agrees (i) to perform all of its obligations in respect of each Transaction
hereunder, and that a default in the performance of any such obligations shall constitute a default by it in respect of all Transactions
hereunder, (ii) that each of them shall be entitled to set-off claims and apply property held by them in respect of any Transaction
against obligations owing to them in respect of any other Transactions hereunder and (iii)  that payments, deliveries
and other transfers made by either of them in respect of any Transaction shall be deemed to have been made in consideration of
payments, deliveries and other transfers in respect of any other Transactions hereunder, and the obligations to make any such payments,
deliveries and other transfers may be applied against each other and netted.

 

20.Notices
and Other Communications

 

Any and all notices (with
the exception of Transaction Requests or Purchase Price Increase Requests, as applicable, which shall be delivered via electronic
mail or other electronic medium agreed to by the Buyer and Seller Parties), statements, demands or other communications hereunder
may be given by a party to the other by mail, email, facsimile, messenger or otherwise to the address specified below, or so sent
to such party at any other place specified in a notice of change of address hereafter received by the other. All notices, demands
and requests hereunder may be made orally, to be confirmed promptly in writing, or by other communication as specified in the preceding
sentence. In all cases, to the extent that the related individual set forth in the respective “Attention” line is no
longer employed by the respective Person, such notice may be given to the attention of a Responsible Officer of the respective
Person or to the attention of such individual or individuals as subsequently notified in writing by a Responsible Officer of the
respective Person.

 

 

    	 	- 91 -	 

     

    

 

If to Seller Parties:

 

PennyMac Corp.

PennyMac Holdings, LLC

PennyMac Operating Partnership, L.P.

PMC REO Financing Trust

3043 Townsgate Road

Westlake Village, California 91361

Attention: Pamela Marsh/Kevin Chamberlain

Phone Number: (805) 330-6059/(818) 746-2877

E-mail: pamela.marsh@pnmac.com;

             kevin.chamberlain@pnmac.com

 

 

with a copy to:

 

PennyMac Corp.

PennyMac Holdings, LLC

 

PennyMac Operating Partnership, L.P.

3043 Townsgate Road

Westlake Village, California 91361

Attention: Jeff Grogin

Phone Number: (818) 224-7050

E-mail: jeff.grogin@pnmac.com

 

If to Guarantors:

 

 

PennyMac Mortgage Investment Trust

3043 Townsgate Road

Westlake Village, California 91361

E-mail:
anne.mccallion@pnmac.com

PennyMac Operating Partnership, L.P.

3043 Townsgate Road

Westlake Village, California 91361

Attention: Anne D. McCallion

Phone Number: (818) 224-7434

E-mail: anne.mccallion@pnmac.com

 

If to Buyer:

 

For Transaction
Requests:

 

CSFBMC LLC

c/o Credit Suisse
Securities (USA) LLC

One Madison Avenue,
2nd floor

New York, New York
10010

Attention: Christopher
Bergs, Resi Mortgage Warehouse Ops

Phone: 212-538-5087

E-mail: christopher.bergs@credit-suisse.com

 

 

    	 	- 92 -	 

     

    

 

with a copy to:

 

 

Credit Suisse First
Boston Mortgage Capital LLC

c/o Credit Suisse
Securities (USA) LLC

Eleven Madison Avenue,
4th Floor

New York, New York
10010

Attention: Margaret
Dellafera

Phone: 212-325-6471

Fax:
212-743-4810

E-mail: margaret.dellafera@credit-suisse.com

 

For all other
Notices:

 

Credit Suisse First
Boston Mortgage Capital LLC

c/o Credit Suisse
Securities (USA) LLC

Eleven Madison Avenue,
4th Floor

New York, New York
10010

Attention: Margaret
Dellafera

Phone: 212-325-6471

Fax: 212-743-4810

E-mail: margaret.dellafera@credit-suisse.com

 

with a copy to:

 

Credit Suisse First
Boston Mortgage Capital LLC

c/o Credit Suisse
Securities (USA) LLC

One Madison Avenue,
9th Floor

New York, NY 10010

Attention: Legal Department—RMBS
Warehouse Lending

Fax: (212) 322-2376

 

21.Entire
Agreement; Severability

 

This Agreement shall
supersede any existing agreements between the parties containing general terms and conditions for repurchase transactions. Each
provision and agreement herein shall be treated as separate and independent from any other provision or agreement herein and shall
be enforceable notwithstanding the unenforceability of any such other provision or agreement.

 

22.Non assignability

 

The Program Agreements
are not assignable by any Seller Party or any Guarantor. Buyer may from time to time assign all or a portion of its rights and
obligations under this Agreement and the Program Agreements; provided, however that Buyer shall maintain as agent of Sellers,
for review by Sellers upon written request, a register of assignees and a copy of an executed assignment and acceptance by Buyer
and assignee (“Assignment and Acceptance”), specifying the percentage or portion of such rights and obligations
assigned. Upon such assignment, (a) such assignee shall be a party hereto and to each Program Agreement to the extent of the
percentage or portion set forth in the Assignment and Acceptance, and shall succeed to the applicable rights and obligations of
Buyer hereunder, and (b) Buyer shall, to the extent that such rights and obligations have been so assigned by it to either
(i) an Affiliate of Buyer which assumes the obligations of Buyer or (ii)  another Person approved by Sellers (such approval
not to be unreasonably withheld) which assumes the obligations of Buyer, be released from its obligations hereunder and under the
Program Agreements. Unless otherwise stated in the Assignment and Acceptance, Seller Parties shall continue to take directions
solely from Buyer unless otherwise notified by Buyer in writing. Buyer may distribute to any prospective assignee any document
or other information delivered to Buyer by Seller Parties.

 

    	 	- 93 -	 

     

    

 

23.Set-off

 

In addition to any rights
and remedies of the Buyer hereunder and by law, the Buyer shall have the right, without prior notice to the Seller Parties or Guarantors,
any such notice being expressly waived by the Seller Parties and Guarantors to the extent permitted by applicable law to set-off
and appropriate and apply against any Obligation from any Seller Party, any Guarantor or any Affiliate thereof to Buyer or any
of its Affiliates any and all deposits (general or special, time or demand, provisional or final), in any currency, and any other
obligation (including to return excess margin), credits, indebtedness or claims, in any currency, in each case whether direct or
indirect, absolute or contingent, matured or unmatured, at any time held or owing by or due from the Buyer or any Affiliate thereof
to or for the credit or the account of the Seller Parties, any Guarantor or any Affiliate thereof. The Buyer agrees promptly to
notify the Seller Parties or Guarantors after any such set off and application made by the Buyer; provided that the failure to
give such notice shall not affect the validity of such set off and application.

 

24.Binding
Effect; Governing Law; Jurisdiction

 

a.This Agreement
shall be binding and inure to the benefit of the parties hereto and their respective successors and permitted assigns. Each Seller
Party acknowledges that the obligations of Buyer hereunder or otherwise are not the subject of any guaranty by, or recourse to,
any direct or indirect parent or other Affiliate of Buyer. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY,
THE LAW OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF (EXCEPT FOR SECTION 5-1401 AND
5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

 

b.EACH SELLER PARTY
AND EACH GUARANTOR HEREBY WAIVE TRIAL BY JURY. EACH SELLER PARTY AND EACH GUARANTOR HEREBY IRREVOCABLY CONSENT TO THE EXCLUSIVE
JURISDICTION OF ANY COURT OF THE STATE OF NEW YORK, OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK,
ARISING OUT OF OR RELATING TO THE PROGRAM AGREEMENTS IN ANY ACTION OR PROCEEDING. EACH SELLER PARTY AND EACH GUARANTOR HEREBY SUBMIT
TO, AND WAIVE ANY OBJECTION THEY MAY HAVE TO, EXCLUSIVE PERSONAL JURISDICTION AND VENUE IN THE COURTS OF THE STATE OF NEW YORK
AND THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, WITH RESPECT TO ANY DISPUTES ARISING OUT OF OR
RELATING TO THE PROGRAM AGREEMENTS.

 

    	 	- 94 -	 

     

    

 

25.No Waivers,
Etc.

 

No express or implied
waiver of any Event of Default by either party shall constitute a waiver of any other Event of Default and no exercise of any remedy
hereunder by any party shall constitute a waiver of its right to exercise any other remedy hereunder. No modification or waiver
of any provision of this Agreement and no consent by any party to a departure herefrom shall be effective unless and until such
shall be in writing and duly executed by both of the parties hereto. Without limitation on any of the foregoing, the failure to
give a notice pursuant to Section 6(a), 16(a) or otherwise, will not constitute a waiver of any right to do so at a later
date.

 

26.Intent

 

a.The parties recognize
that each Transaction is a “repurchase agreement” as that term is defined in Section 101 of Title 11
of the United States Code, as amended, a “securities contract” as that term is defined in Section 741 of
Title 11 of the United States Code, as amended, and a “master netting agreement” as that term is defined in Section
101(38A)(A) of the Bankruptcy Code, that all payments hereunder are deemed “margin payments” or “settlement
payments” as defined in Title 11 of the United States Code, and that the pledge of the Repurchase Assets constitutes
“a security agreement or other arrangement or other credit enhancement” that is “related to” the Agreement
and Transactions hereunder within the meaning of Sections 101(38A)(A), 101(47)(A)(v) and 741(7)(A)(xi) of the Bankruptcy Code.
Each Seller Party and Buyer further recognize and intend that this Agreement is an agreement to provide financial accommodations
and is not subject to assumption pursuant to Bankruptcy Code Section 365(a). For the avoidance of doubt, the pledge of the REO
Subsidiary Interests which constitutes “a security agreement or other arrangement or other credit enhancement” that
is “related to” this Agreement and Transactions thereunder within the meaning of Sections 101(38A)(A), 101(47)(A)(v)
and 741(7)(A)(xi) of the Bankruptcy Code.

 

b.Buyer’s right
to liquidate the Purchased Assets, Repurchase Assets, Mortgage Loans and Contributed Assets delivered to it in connection with
the Transactions hereunder or to accelerate or terminate this Agreement or otherwise exercise any other remedies pursuant to Section 16
hereof is a contractual right to liquidate, accelerate or terminate such Transaction as described in Bankruptcy Code Sections 555,
559 and 561; any payments or transfers of property made with respect to this Agreement or any Transaction to satisfy a Margin Deficit
shall be considered a “margin payment” as such term is defined in Bankruptcy Code Section 741(5).

 

    	 	- 95 -	 

     

    

 

c.The parties agree
and acknowledge that if a party hereto is an “insured depository institution,” as such term is defined in the
Federal Deposit Insurance Act, as amended (“FDIA”), then each Transaction hereunder is a “qualified
financial contract,” as that term is defined in FDIA and any rules, orders or policy statements thereunder (except insofar
as the type of assets subject to such Transaction would render such definition inapplicable).

 

d.It is understood
that this Agreement constitutes a “netting contract” as defined in and subject to Title IV of the Federal
Deposit Insurance Corporation Improvement Act of 1991 (“FDICIA”) and each payment entitlement and payment obligation
under any Transaction hereunder shall constitute a “covered contractual payment entitlement” or “covered
contractual payment obligation”, respectively, as defined in and subject to FDICIA (except insofar as one or both of
the parties is not a “financial institution” as that term is defined in FDICIA).

 

e.This Agreement
is intended to be a “repurchase agreement” and a “securities contract,” within the meaning of Section 101(47),
Section 555, Section 559 and Section 741 under the Bankruptcy Code.

 

f.Each party agrees
that this Agreement is intended to create mutuality of obligations among the parties, and as such, the Agreement constitutes a
contract which (i) is between all of the parties and (ii) places each party in the same right and capacity.

 

g.For U.S. federal
tax purposes, each of the Seller Parties, the Guarantor, the Buyer, and each Buyer assignee by acquiring an interest in any Transaction
agree to treat and report each Transaction as indebtedness issued by PennyMac Mortgage Investment Trust, PMC or PennyMac Holdings,
LLC as the case may be, which indebtedness, in the case of each obligor, shall have but a single maturity for purposes of Code
section 7701(i)(2)(A)(ii) and U.S. Treasury Regulation section 301.7701(i)-1(e).

 

27.Disclosure
Relating to Certain Federal Protections

 

The parties acknowledge
that they have been advised that:

 

a.in the case of
Transactions in which one of the parties is a broker or dealer registered with the SEC under Section 15 of the 1934 Act, the
Securities Investor Protection Corporation has taken the position that the provisions of the SIPA do not protect the other party
with respect to any Transaction hereunder;

 

b.in the case of
Transactions in which one of the parties is a government securities broker or a government securities dealer registered with the
SEC under Section 15C of the 1934 Act, SIPA will not provide protection to the other party with respect to any Transaction
hereunder; and

 

    	 	- 96 -	 

     

    

 

c.in the case of
Transactions in which one of the parties is a financial institution, funds held by the financial institution pursuant to a Transaction
hereunder are not a deposit and therefore are not insured by the Federal Deposit Insurance Corporation or the National Credit Union
Share Insurance Fund, as applicable.

 

28.Power of
Attorney

 

Each Seller Party hereby
authorizes Buyer to file such financing statement or statements relating to the Repurchase Assets without such Seller Party’s
signature thereon as Buyer, at its option, may deem appropriate. Each Seller Party hereby appoints Buyer as such Seller Party’s
agent and attorney-in-fact to execute any such financing statement or statements in such Seller Party’s name and to perform
all other acts which Buyer deems appropriate to perfect and continue its ownership interest in and/or the security interest granted
hereby, if applicable, and to protect, preserve and realize upon the Repurchase Assets, including, but not limited to, the right
to endorse notes, complete blanks in documents, transfer servicing, and sign assignments on behalf of such Seller Party as its
agent and attorney-in-fact and exercise all rights and remedies of such Seller Party thereunder and to act as attorney-in-fact
for Underlying Repurchase Counterparty. This agency and power of attorney is coupled with an interest and is irrevocable without
Buyer’s consent. Notwithstanding the foregoing, the power of attorney hereby granted may be exercised only during the occurrence
and continuance of any Default hereunder. Sellers shall pay the filing costs for any financing statement or statements prepared
pursuant to this Section 28. In addition the foregoing, each Seller agrees to execute a Power of Attorney, the form of Exhibit
D hereto, to be delivered on the date hereof. Sellers shall cause PennyMac Loan Services, LLC and REO Subsidiary to execute
a Power of Attorney in the form of Exhibit E-1 and Exhibit E-2, respectively, hereto.

 

29.Buyer May
Act Through Affiliates and REO Subsidiary May Act Through Seller

 

Buyer may, from time
to time, designate one or more Affiliates for the purpose of performing any action hereunder. Pursuant to the Subsidiary Agreement,
the REO Subsidiary has appointed Sellers as its agent with respect to the execution, delivery and/or performance of any Program
Agreement, including, without limitation, the Custodial Agreement, any Servicing Agreement and any Servicer Notice.

 

30.Indemnification;
Obligations

 

a.Each Seller and
each Guarantor agrees to hold Buyer and each of its respective Affiliates and their officers, directors, employees, agents and
advisors (each, an “Indemnified Party”) harmless from and indemnify each Indemnified Party (and will reimburse
each Indemnified Party as the same is incurred) against all liabilities, losses, damages, judgments, costs and expenses (including,
without limitation, reasonable fees and expenses of counsel) of any kind which may be imposed on, incurred by, or asserted against
any Indemnified Party relating to or arising out of this Agreement, any Transaction Request or Purchase Price Increase Request,
any Program Agreement, any Underlying Repurchase Document, or any transaction contemplated hereby or thereby resulting from anything
other than the Indemnified Party’s gross negligence or willful misconduct. Each Seller and each Guarantor also agrees to
reimburse each Indemnified Party for all reasonable expenses in connection with the enforcement of this Agreement and the exercise
of any right or remedy provided for herein, any Transaction Request or Purchase Price Increase Request, and any Program Agreement,
including, without limitation, the reasonable fees and disbursements of counsel. Each Seller’s and each Guarantor’s
agreements in this Section 30 shall survive the payment in full of the Repurchase Price and the expiration or termination
of this Agreement. Each Seller and each Guarantor hereby acknowledges that its obligations hereunder are recourse obligations of
such Seller and such Guarantor and are not limited to recoveries each Indemnified Party may have with respect to the Purchased
Assets and Repurchase Assets. Each Seller Party and each Guarantor also agrees not to assert any claim against Buyer or any of
its Affiliates, or any of their respective officers, directors, employees, attorneys and agents, on any theory of liability, for
special, indirect, consequential or punitive damages arising out of or otherwise relating to the facility established hereunder,
the actual or proposed use of the proceeds of the Transactions or Purchase Price Increases, this Agreement or any of the transactions
contemplated thereby. THE FOREGOING INDEMNITY AND AGREEMENT NOT TO ASSERT CLAIMS EXPRESSLY APPLIES, WITHOUT LIMITATION, TO THE
NEGLIGENCE (BUT NOT GROSS NEGLIGENCE OR WILLFUL MISCONDUCT) OF THE INDEMNIFIED PARTIES.

 

    	 	- 97 -	 

     

    

 

b.Without limitation
to the provisions of Section 4, if any payment of the Repurchase Price of any Transaction or Purchase Price Increase is made
by Sellers other than on the then scheduled Repurchase Date thereto as a result of an acceleration of the Repurchase Date pursuant
to Section 16 or for any other reason, Sellers shall, upon demand by Buyer, pay to Buyer an amount sufficient to compensate
Buyer for any losses, costs or expenses that it may reasonably incur as of a result of such payment.

 

c.Without limiting
the provisions of Section 30(a) hereof, if Sellers fail to pay when due any costs, expenses or other amounts payable by it under
this Agreement, including, without limitation, fees and expenses of counsel and indemnities, such amount may be paid on behalf
of Sellers by Buyer, in its sole discretion.

 

31.Counterparts

 

This Agreement may be
executed in one or more counterparts, each of which shall be deemed to be an original, and all such counterparts shall together
constitute one and the same instrument. Delivery of an executed counterpart of a signature page of this Agreement in a Portable
Document Format (PDF) or by facsimile shall be effective as delivery of a manually executed original counterpart of this Agreement.

 

    	 	- 98 -	 

     

    

 

32.Confidentiality

 

a.This Agreement
and its terms, provisions, supplements and amendments, and notices hereunder, are proprietary to Buyer and shall be held by each
Seller Party and each Guarantor in strict confidence and shall not be disclosed to any third party without the written consent
of Buyer except for (i) disclosure to Seller Parties’ or Guarantors’ direct and indirect Affiliates and Subsidiaries,
attorneys or accountants, but only to the extent such disclosure is necessary and such parties agree to hold all information in
strict confidence, or (ii)  disclosure required by law, rule, regulation or order of a court or other regulatory body. Notwithstanding
the foregoing or anything to the contrary contained herein or in any other Program Agreement, the parties hereto may disclose to
any and all Persons, without limitation of any kind, the federal, state and local tax treatment of the Transactions, any fact relevant
to understanding the federal, state and local tax treatment of the Transactions, and all materials of any kind (including opinions
or other tax analyses) relating to such federal, state and local tax treatment and that may be relevant to understanding such tax
treatment; provided that no Seller Party may disclose the name of or identifying information with respect to Buyer or any pricing
terms (including, without limitation, the Commitment Fee, Pricing Rate, Purchase Price Percentage and Purchase Price) or other
nonpublic business or financial information (including any sublimits and financial covenants) that is unrelated to the federal,
state and local tax treatment of the Transactions and is not relevant to understanding the federal, state and local tax treatment
of the Transactions, without the prior written consent of the Buyer.

 

b.Notwithstanding
anything in this Agreement to the contrary, each Seller Party shall comply with all applicable local, state and federal laws, including,
without limitation, all privacy and data protection law, rules and regulations that are applicable to the Purchased Assets and
Repurchase Assets and/or any applicable terms of this Agreement (the “Confidential Information”). Each Seller
Party understands that the Confidential Information may contain “nonpublic personal information”, as that term is defined
in Section 509(4) of the Gramm-Leach-Bliley Act (the “Act”), and each Seller Party agrees to maintain such nonpublic
personal information that it receives hereunder in accordance with the Act and other applicable federal and state privacy laws.
Each Seller Party shall implement such physical and other security measures as shall be necessary to (a) ensure the security and
confidentiality of the “nonpublic personal information” of the “customers” and “consumers”
(as those terms are defined in the Act) of Buyer or any Affiliate of Buyer which such Seller Party holds, (b) protect against any
threats or hazards to the security and integrity of such nonpublic personal information, and (c) protect against any unauthorized
access to or use of such nonpublic personal information. Each Seller Party represents and warrants that it has implemented appropriate
measures to meet the objectives of Section 501(b) of the Act and of the applicable standards adopted pursuant thereto, as now or
hereafter in effect. Upon request, each Seller Party will provide evidence reasonably satisfactory to allow Buyer to confirm that
the providing party has satisfied its obligations as required under this Section. Without limitation, this may include Buyer’s
review of audits, summaries of test results, and other equivalent evaluations of each Seller Party. The Seller Parties shall notify
Buyer immediately following discovery of any breach or compromise of the security, confidentiality, or integrity of nonpublic personal
information of the customers and consumers of Buyer or any Affiliate of Buyer provided directly to the Seller Parties by Buyer
or such Affiliate. The Seller Parties shall provide such notice to Buyer by personal delivery, by facsimile with confirmation of
receipt, or by overnight courier with confirmation of receipt to the applicable requesting individual.

 

    	 	- 99 -	 

     

    

 

33.Recording
of Communications

 

Buyer, Seller Parties
and Guarantors shall have the right (but not the obligation) from time to time to make or cause to be made tape recordings of communications
between its employees and those of the other party with respect to Transactions. Buyer, Seller Parties and Guarantors consent to
the admissibility of such tape recordings in any court, arbitration, or other proceedings. The parties agree that a duly authenticated
transcript of such a tape recording shall be deemed to be a writing conclusively evidencing the parties’ agreement.

 

34.Agency
and Allocation Agreement.

 

Buyer intends to assign
the Transactions to one or more affiliates of Buyer and to enter into an agency and allocation agreement allocating current and
future Transactions to such affiliates and setting forth certain agency related provisions and amending this Agreement to conform
thereto, as applicable. Each Seller Party shall agree to and acknowledge such agency and allocation agreement in writing (the “Allocation
Agreement”). In the event that the Seller Parties fail to execute the Allocation Agreement described herein for any reason
within sixty (60) days following receipt thereof from Buyer or its counsel, then the obligations of the Buyer under the Repurchase
Agreement will be deemed uncommitted and Buyer shall have no obligations to enter into Transactions under the Repurchase Agreement.

 

35.Condition
Subsequent

 

Within ten (10) Business
Days following the date hereof, Sellers shall deliver to Buyer the opinions of Sellers’ and Guarantors’ counsel, in
form and substance acceptable to Buyer, as referred to in Section 10(a)(6) hereof. Buyer reserves the right not to fund any Transactions
if Sellers fail to deliver such items as described in this Section. Sellers’ failure to deliver these items shall be a breach
of a material covenant under this Agreement.

 

36.Periodic
Due Diligence Review

 

Each Seller Party and
each Guarantor acknowledges that Buyer has the right to perform continuing due diligence reviews with respect to each Seller Party,
each Guarantor, Underlying Repurchase Counterparty and the Purchased Assets, Mortgage Loans and Contributed Assets, for purposes
of verifying compliance with the representations, warranties and specifications made hereunder, for the purpose of performing
quality control review of the Purchased Assets, Mortgage Loans and Contributed Assets or otherwise, and upon reasonable (but no
less than one (1) Business Day’s) prior notice unless an Event of Default shall have occurred, in which case no notice is
required, to Sellers, each Seller agrees to permit or shall cause Underlying Repurchase Counterparty to permit Buyer or its authorized
representatives will be permitted during normal business hours to examine, inspect, and make copies and extracts of, the Asset
Files and any and all documents, data, records, agreements, instruments or information relating to such Purchased Assets, Mortgage
Loans and Contributed Assets (including, without limitation, quality control review) in the possession or under the control of
Sellers, Guarantors, Underlying Repurchase Counterparty and/or the Custodian. Sellers also shall make available or cause Underlying
Repurchase Counterparty to make available to Buyer a knowledgeable financial or accounting officer for the purpose of answering
questions respecting the Asset Files and the Purchased Assets, Mortgage Loans and Contributed Assets.

 

    	 	- 100 -	 

     

    

 

Without limiting the generality of the foregoing, each Seller
and each Guarantor acknowledges that Buyer may purchase Purchased Assets or enter into Transactions with respect to Contributed
Assets from such Seller based solely upon the information provided by such Seller to Buyer in the Asset Schedule and the representations,
warranties and covenants contained herein, and that Buyer, at its option, has the right at any time to conduct a partial or complete
due diligence review on some or all of the Purchased Assets and Repurchase Assets purchased in a Transaction, including, without
limitation, ordering BPOs, new credit reports and new appraisals on the related Mortgaged Properties and otherwise re-generating
the information used to originate such Purchased Mortgage Loan or Contributed Asset. Buyer may underwrite such Purchased Asset,
Contributed Asset or Mortgage Loans itself or engage a mutually agreed upon third party underwriter to perform such underwriting.
Each Seller agrees to cooperate or cause Underlying Repurchase Counterparty to cooperate with Buyer and any third party underwriter
in connection with such underwriting, including, but not limited to, providing Buyer and any third party underwriter with access
to any and all documents, records, agreements, instruments or information relating to such Purchased Assets, Contributed Assets
or Mortgage Loans in the possession, or under the control, of such Seller. Each Seller further agrees that Sellers shall pay all
out-of-pocket costs and expenses incurred by Buyer in connection with Buyer’s activities pursuant to this Section 36 (“Due
Diligence Costs”).

 

37.Authorizations

 

Any of the persons whose
signatures and titles appear on Schedule 2 are authorized, acting singly, to act for Seller Parties or Buyer to the extent set
forth therein, as the case may be, under this Agreement. The Seller Parties may amend Schedule 2 from time to time by delivering
a revised Schedule 2 to Buyer and expressly stating that such revised Schedule 2 shall replace the existing Schedule 2.

 

38.Acknowledgement
of Anti-Predatory Lending Policies

 

Buyer has in place internal
policies and procedures that expressly prohibit its purchase of any High Cost Mortgage Loan.

 

 

    	 	- 101 -	 

     

    

 

39.Documents
Mutually Drafted

 

Each Seller Party, each
Guarantor and the Buyer agree that this Agreement and each other Program Agreement prepared in connection with the Transactions
set forth herein have been mutually drafted and negotiated by each party, and consequently such documents shall not be construed
against either party as the drafter thereof.

 

40.General
Interpretive Principles

 

For purposes of this
Agreement, except as otherwise expressly provided or unless the context otherwise requires:

 

a.the terms defined
in this Agreement have the meanings assigned to them in this Agreement and include the plural as well as the singular, and the
use of any gender herein shall be deemed to include the other gender;

 

b.accounting terms
not otherwise defined herein have the meanings assigned to them in accordance with GAAP;

 

c.references herein
to “Articles”, “Sections”, “Subsections”, “Paragraphs”, and other subdivisions
without reference to a document are to designated Articles, Sections, Subsections, Paragraphs and other subdivisions of this Agreement;

 

d.a reference to
a Subsection without further reference to a Section is a reference to such Subsection as contained in the same Section in which
the reference appears, and this rule shall also apply to Paragraphs and other subdivisions;

 

e.the words “herein”,
“hereof”, “hereunder” and other words of similar import refer to this Agreement as a whole and not to any
particular provision;

 

f.the term “include”
or “including” shall mean without limitation by reason of enumeration;

 

g.all times specified
herein or in any other Program Agreement (unless expressly specified otherwise) are local times in New York, New York unless otherwise
stated; and

 

h.all references
herein or in any Program Agreement to "good faith" means good faith as defined in Section 1-201(19) of the UCC as in
effect in the State of New York.

 

41.Joint and/or
Several Liability of Sellers

 

a.Each Seller
Party shall be jointly and severally liable for the rights, covenants, obligations and warranties and representations of each other
Seller Party as contained herein and the actions of any Person (including another Seller Party) or third party shall in no way
affect such joint and several liability.

 

    	 	- 102 -	 

     

    

 

b.Each Seller
Party acknowledges and agrees that a Default or an Event of Default is hereby considered a Default or an Event of Default by each
Seller.

 

c.Each Seller
Party acknowledges and agrees that the Buyer shall have no obligation to proceed against one Seller before proceeding against another
Seller Party. Each Seller Party hereby waives any defense to its obligations under this Agreement or any other Program Agreement
based upon or arising out of the disability or other defense or cessation of liability of one Seller Party versus the other.

 

42.Amendment
and Restatement

 

The terms and provisions
of the Existing Master Repurchase Agreements shall be consolidated, amended and restated in their entirety by the terms and provisions
of this Agreement and this Agreement shall supersede all provisions of the Existing Master Repurchase Agreements as of the date
hereof. From and after the date hereof, all references made to the Existing Master Repurchase Agreements in any Program Agreement
or in any other instrument or document shall, without more, be deemed to refer to this Agreement.

 

43.Reaffirmation
of Guaranty

 

Each Guarantor hereby
(i) agrees that the liability of such Guarantor or rights of Buyer under the Guaranty shall not be affected as a result of amending
and restating this Agreement, (ii) ratifies and affirms all of the terms, covenants, conditions and obligations of the Guaranty
and (iii) acknowledges and agrees that such Guaranty is and shall continue to be in full force and effect.

 

[Signature Page Follows]

 

 

 

 

 

 

 

 

 

 

    	 	- 103 -	 

     

    

 

IN WITNESS WHEREOF, the undersigned have
caused this Agreement to be duly executed as of the date first above written.

 

Credit Suisse First Boston Mortgage Capital
LLC, as Buyer

 

 

By: /s/ Elie Chau

       Name: Elie Chau

       Title: Vice President

 

 

PennyMac Corp., as a Seller

 

By: /s/ Pamela Marsh

       Name: Pamela Marsh

      Title: Managing Director, Treasurer

 

 

PennyMac Holdings, LLC, as a Seller

 

By: /s/ Pamela Marsh

       Name: Pamela Marsh

       Title: Managing Director, Treasurer

 

 

PMC REO Financing Trust, as REO Subsidiary

 

  By: PennyMac Corp., as Administrator

 

By: /s/ Pamela Marsh

       Name: Pamela Marsh

       Title: Managing Director, Treasurer

 

PennyMac Mortgage Investment Trust, as
a Guarantor

 

By: /s/ Pamela Marsh

Name: Pamela Marsh

Title: Managing Director, Treasurer

 

 

Signature Page to the Amended and Restated Master Repurchase Agreement

 

    	 		 

     

    

 

PennyMac Operating Partnership, L.P.,
as a Seller and as a Guarantor

 

By: PennyMac GP OP, Inc., its General Partner

 

 

By: /s/ Pamela Marsh

       Name: Pamela Marsh

       Title: Managing Director, Treasurer

 

 

 

 

 

 

 

Signature Page to the Amended and Restated Master Repurchase Agreement

 

    	 		 

     

    

 

SCHEDULE 1

 

PART I

 

REPRESENTATIONS AND WARRANTIES WITH RESPECT
TO NEW ORIGINATION MORTGAGE LOANS

 

The Sellers make the
following representations and warranties to the Buyer, with respect to the New Origination Mortgage Loans subject to a Transaction
that as of the Purchase Date for the purchase of New Origination Mortgage Loans subject to a Transaction by the Buyer from a Seller,
and as of the date of this Agreement and any Transaction hereunder relating to the New Origination Mortgage Loans is outstanding
and at all times while the Program Agreements and any Transaction hereunder is in full force and effect. For purposes of this Schedule
1 and the representations and warranties set forth herein, a breach of a representation or warranty shall be deemed to have been
cured with respect to the New Origination Mortgage Loans if and when the Sellers have taken or caused to be taken action such that
the event, circumstance or condition that gave rise to such breach no longer adversely affects such New Origination Mortgage Loans.

 

(a)Payments Current.
All payments required to be made up to the Purchase Date for the Mortgage Loan under the terms of the Mortgage Note have been made
and credited. No payment required under the Mortgage Loan is delinquent nor has any payment under the Mortgage Loan been delinquent
at any time since the origination of the Mortgage Loan and, if the Mortgage Loan is a Co-op Loan, no foreclosure action or private
or public sale under the Uniform Commercial Code has ever to the knowledge of Sellers, been threatened or commenced with respect
to the Co-op Loan. The first Monthly Payment shall be made, or shall have been made, with respect to the Mortgage Loan on its Due
Date or within the grace period, all in accordance with the terms of the related Mortgage Note.  

 

(b)No Outstanding
Charges. All taxes, governmental assessments, insurance premiums, water, sewer and municipal charges, leasehold payments or
ground rents which previously became due and owing have been paid, or an escrow of funds has been established in an amount sufficient
to pay for every such item which remains unpaid and which has been assessed but is not yet due and payable. No Seller nor the Qualified
Originator from which the applicable Seller acquired the Mortgage Loan has advanced funds, or induced, solicited or knowingly received
any advance of funds by a party other than the Mortgagor, directly or indirectly, for the payment of any amount required under
the Mortgage Loan, except for interest accruing from the date of the Mortgage Note or date of disbursement of the proceeds of the
Mortgage Loan, whichever is earlier, to the day which precedes by one month the Due Date of the first installment of principal
and/or interest thereunder.

 

(c)Original Terms
Unmodified. The terms of the Mortgage Note (and the Proprietary Lease, the Assignment of Proprietary Lease and Stock Power
with respect to each Co-op Loan) and Mortgage have not been impaired, waived, altered or modified in any respect, from the date
of origination; except by a written instrument which has been recorded, if necessary to protect the interests of Buyer, and which
has been delivered to the Custodian and the terms of which are reflected in the Custodial Asset Schedule. The substance of any
such waiver, alteration or modification has been approved by the title insurer, to the extent required, and its terms are reflected
on the Custodial Asset Schedule. No Mortgagor in respect of the Mortgage Loan has been released, in whole or in part, except in
connection with an assumption agreement approved by the title insurer, to the extent required by such policy, and which assumption
agreement is part of the Asset File delivered to the Custodian and the terms of which are reflected in the Custodial Asset Schedule.

 

    	 	Schedule 1 Part 1 - 1 	 

     

    

 

(d)No Defenses.
The Mortgage Loan (and the Assignment of Proprietary Lease related to each Co-op Loan) is not subject to any right of rescission,
set-off, counterclaim or defense, including, without limitation, the defense of usury, nor will the operation of any of the terms
of the Mortgage Note or the Mortgage, or the exercise of any right thereunder, render either the Mortgage Note or the Mortgage
unenforceable, in whole or in part and no such right of rescission, set-off, counterclaim or defense has been asserted with respect
thereto, and no Mortgagor in respect of the Mortgage Loan was a debtor in any state or Federal bankruptcy or insolvency proceeding
at the time the Mortgage Loan was originated. No Seller has knowledge nor has it received any notice that any Mortgagor in respect
of the Mortgage Loan is a debtor in any state or federal bankruptcy or insolvency proceeding.

 

(e)Hazard Insurance.
The Mortgaged Property is insured by a fire and extended perils insurance policy, issued by a Qualified Insurer, and such other
hazards as are customary in the area where the Mortgaged Property is located, and to the extent required by a Seller as of the
date of origination consistent with the Underwriting Guidelines, against earthquake and other risks insured against by Persons
operating like properties in the locality of the Mortgaged Property, in an amount not less than the greatest of (i) 100% of
the replacement cost of all improvements to the Mortgaged Property, (ii) the outstanding principal balance of the Mortgage
Loan, or (iii) the amount necessary to avoid the operation of any co-insurance provisions with respect to the Mortgaged Property,
and consistent with the amount that would have been required as of the date of origination in accordance with the Underwriting
Guidelines. If any portion of the Mortgaged Property is in an area identified by any federal Governmental Authority as having special
flood hazards, and flood insurance is available, a flood insurance policy meeting the current guidelines of the Federal Emergency
Management Agency is in effect with a generally acceptable insurance carrier, in an amount representing coverage not less than
the least of (1) the outstanding principal balance of the Mortgage Loan (2) the full insurable value of the Mortgaged
Property, and (3) the maximum amount of insurance available under the National Flood Insurance Act of 1968, as amended by
the Flood Disaster Protection Act of 1974. All such insurance policies (collectively, the “hazard insurance policy”)
contain a standard mortgagee clause naming the applicable Seller, its successors and assigns (including, without limitation, subsequent
owners of the Mortgage Loan), as mortgagee, and may not be reduced, terminated or canceled without 30 days’ prior written
notice to the mortgagee. No such notice has been received by a Seller. All premiums on such insurance policy have been paid. The
related Mortgage obligates the Mortgagor to maintain all such insurance and, at such Mortgagor’s failure to do so, authorizes
the mortgagee to maintain such insurance at the Mortgagor’s cost and expense and to seek reimbursement therefor from such
Mortgagor. Where required by state law or regulation, the Mortgagor has been given an opportunity to choose the carrier of the
required hazard insurance, provided the policy is not a “master” or “blanket” hazard insurance policy covering
a condominium, or any hazard insurance policy covering the common facilities of a planned unit development. The hazard insurance
policy is the valid and binding obligation of the insurer and is in full force and effect. No Seller has engaged in, and has no
knowledge of the Mortgagor’s having engaged in, any act or omission which would impair the coverage of any such policy, the
benefits of the endorsement provided for herein, or the validity and binding effect of either including, without limitation, no
unlawful fee, commission, kickback or other unlawful compensation or value of any kind has been or will be received, retained or
realized by any attorney, firm or other Person, and no such unlawful items have been received, retained or realized by a Seller.

 

    	 	Schedule 1 Part 1 - 2 	 

     

    

 

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

 

(g)No Satisfaction
of Mortgage. The Mortgage has not been satisfied, canceled, subordinated or rescinded, in whole or in part, and the Mortgaged
Property has not been released from the lien of the Mortgage, in whole or in part, nor has any instrument been executed that would
effect any such release, cancellation, subordination or rescission. No Seller has waived the performance by the Mortgagor of any
action, if the Mortgagor’s failure to perform such action would cause the Mortgage Loan to be in default, nor has any Seller
waived any default resulting from any action or inaction by the Mortgagor.

 

(h)Location and
Type of Mortgaged Property. The Mortgaged Property is located in an Acceptable State as identified in the Custodial Asset Schedule
and consists of a single parcel of real property with a detached single family residence erected thereon, or a two- to four-family
dwelling, or an individual condominium unit in a low-rise Co-op Project, or an individual unit in a planned unit development or
a de minimis planned unit development; provided, however, that any condominium unit, Co-op Unit or planned unit development shall
conform with the applicable Fannie Mae and Freddie Mac requirements regarding such dwellings or shall conform to underwriting guidelines
acceptable to Buyer in its sole discretion and that no residence or dwelling is a mobile home. No portion of the Mortgaged Property
is used for commercial purposes; provided, that, the Mortgaged Property may be a mixed use property if such Mortgaged Property
conforms to underwriting guidelines acceptable to Buyer in its sole discretion.

 

(i)Valid First
Lien. The Mortgage is a valid, subsisting, enforceable and perfected first priority lien and first priority security interest
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;

 

    	 	Schedule 1 Part 1 - 3 	 

     

    

 

(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.

 

Any security agreement,
chattel mortgage or equivalent document related to and delivered in connection with the Mortgage Loan establishes and creates
a valid, subsisting and enforceable first lien and first priority security interest on the property described therein and the
applicable 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.

 

(j)Validity of
Mortgage Documents. The Mortgage Note and the Mortgage and any other agreement executed and delivered by a Mortgagor or guarantor,
if applicable, in connection with a Mortgage Loan are genuine, and each is the legal, valid and binding obligation of the maker
thereof enforceable in accordance with its terms. All parties to the Mortgage Note, the Mortgage and any other such related agreement
had legal capacity to enter into the Mortgage Loan and to execute and deliver the Mortgage Note, the Mortgage and any such agreement,
and the Mortgage Note, the Mortgage and any other such related agreement have been duly and properly executed by such related parties.
No fraud, error, omission, misrepresentation, negligence or similar occurrence with respect to a Mortgage Loan has taken place
on the part of any Person, including, without limitation, the Mortgagor, any appraiser, any builder or developer, or any other
party involved in the origination of the Mortgage Loan. The applicable Seller has reviewed all of the documents constituting the
Asset File and has made such inquiries as it deems necessary to make and confirm the accuracy of the representations set forth
herein. To the best of Sellers’ knowledge, except as disclosed to Buyer in writing, all tax identifications and property
descriptions are legally sufficient; and tax segregation, where required, has been completed.

 

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

 

(l)Ownership.
The applicable Seller has full right to sell the Mortgage Loan to Buyer free and clear of any encumbrance, equity, participation
interest, lien, pledge, charge, claim or security interest, and has full right and authority subject to no interest or participation
of, or agreement with, any other party, to sell each Mortgage Loan pursuant to this Agreement and following the sale of each Mortgage
Loan, Buyer will own such Mortgage Loan (and with respect to any Co-op Loan, the sole owner of the related Assignment of Proprietary
Lease) free and clear of any encumbrance, equity, participation interest, lien, pledge, charge, claim or security interest except
any such security interest created pursuant to the terms of this Agreement. 

 

    	 	Schedule 1 Part 1 - 4 	 

     

    

 

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

 

(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 the applicable Seller, its
successors and assigns, as to the first priority lien of the Mortgage, as applicable, in the original principal amount of the Mortgage
Loan, with respect to a 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)
of paragraph (i) of this Schedule 1. The applicable Seller, its successors and assigns, are the sole insureds of such lender’s
title insurance policy, and such lender’s title insurance policy is valid and remains in full force and effect and will be
in force and effect upon the consummation of the transactions contemplated by this Agreement. No claims have been made under such
lender’s title insurance policy, and no prior holder or servicer of the related Mortgage, including any 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 a Seller.

 

(o)No Defaults.
There is no default, breach, violation or event of acceleration existing under the Mortgage or the Mortgage Note and no event has
occurred which, with the passage of time or with notice and the expiration of any grace or cure period, would constitute a default,
breach, violation or event of acceleration, and no Seller nor its predecessors have waived any default, breach, violation or event
of acceleration; and with respect to each Co-op Loan, there is no default in complying with the terms of the Mortgage Note, the
Assignment of Proprietary Lease and the Proprietary Lease and all maintenance charges and assessments (including assessments payable
in the future installments, which previously became due and owing) have been paid, and the applicable Seller has the right under
the terms of the Mortgage Note, Assignment of Proprietary Lease and Recognition Agreement to pay any maintenance charges or assessments
owed by the Mortgagor.

 

    	 	Schedule 1 Part 1 - 5 	 

     

    

 

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

 

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

 

(r)Origination;
Payment Terms. The Mortgage Loan was originated by or in conjunction with a mortgagee approved by the Secretary of Housing
and Urban Development pursuant to Sections 203 and 211 of the National Housing Act, a savings and loan association, a savings bank,
a commercial bank, credit union, insurance company or similar banking institution which is supervised and examined by a federal
or state authority. Principal and/or interest payments on the Mortgage Loan commenced no more than 60 days after funds were disbursed
in connection with the Mortgage Loan. With respect to adjustable rate Mortgage Loans, the Mortgage Interest Rate is adjusted on
each Interest Rate Adjustment Date to equal the Index plus the Gross Margin (rounded up or down to the nearest .125%), subject
to the Mortgage Interest Rate Cap. The Mortgage Note is payable on the first day of each month in equal monthly installments of
principal and/or interest (subject to an “interest only” period in the case of Interest Only Loans), which installments
of interest (a) with respect to adjustable rate Mortgage Loans are subject to change on the Interest Rate Adjustment Date due to
adjustments to the Mortgage Interest Rate on each Interest Rate Adjustment Date and (b) with respect to Interest Only Loans are
subject to change on the Interest Only Adjustment Date due to adjustments to the Mortgage Interest Rate on each Interest Only Adjustment
Date, in both cases with interest calculated and payable in arrears, sufficient to amortize the Mortgage Loan fully by the stated
maturity date, over an original term of not more than 30 years from commencement of amortization.

 

(s)Customary Provisions.
The Mortgage Note has a stated maturity. The Mortgage contains customary and enforceable provisions such as to render the rights
and remedies of the holder thereof adequate for the realization against the Mortgaged Property of the benefits of the security
provided thereby, including, (i) in the case of a Mortgage designated as a deed of trust, by trustee’s sale, and (ii) otherwise
by judicial foreclosure. Upon default by a Mortgagor on a Mortgage Loan and foreclosure on, or trustee’s sale of, the Mortgaged
Property pursuant to the proper procedures, the holder of the Mortgage Loan will be able to deliver good and merchantable title
to the Mortgaged Property. There is no homestead or other exemption or other right available to the Mortgagor or any other person,
or restriction on any Seller or any other person, including without limitation, any federal, state or local, law, ordinance, decree,
regulation, guidance, attorney general action, or other pronouncement, whether temporary or permanent in nature, that would interfere
with, restrict or delay, either (y) the ability of any Seller, Buyer or any servicer or any successor servicer to sell the related
Mortgaged Property at a trustee's sale or otherwise, or (z) the ability of any Seller, Buyer or any servicer or any successor servicer
to foreclose on the related Mortgage. The Mortgage Note and Mortgage are on forms acceptable to Freddie Mac or Fannie Mae.

 

    	 	Schedule 1 Part 1 - 6 	 

     

    

 

(t)Occupancy of
the Mortgaged Property. As of the Purchase Date the Mortgaged Property is lawfully occupied under applicable law. All inspections,
licenses and certificates required to be made or issued with respect to all occupied portions of the Mortgaged Property and, with
respect to the use and occupancy of the same, including but not limited to certificates of occupancy and fire underwriting certificates,
have been made or obtained from the appropriate authorities. No Seller has received notification from any Governmental Authority
that the Mortgaged Property is in material non-compliance with such laws or regulations, is being used, operated or occupied unlawfully
or has failed to have or obtain such inspection, licenses or certificates, as the case may be. No Seller has received notice of
any violation or failure to conform with any such law, ordinance, regulation, standard, license or certificate. With respect to
any Mortgage Loan originated with an “owner-occupied” Mortgaged Property, the Mortgagor represented at the time of
origination of the Mortgage Loan that the Mortgagor would occupy the Mortgaged Property as the Mortgagor’s primary residence.

 

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

 

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

 

(w)Transfer of
Mortgage Loans. Except with respect to Mortgage Loans intended for purchase by GNMA and for Mortgage Loans registered with
MERS, the Assignment of Mortgage is in recordable form and is acceptable for recording under the laws of the jurisdiction in which
the Mortgaged Property is located.

 

(x)Due-On-Sale.
Except with respect to Mortgage Loans intended for purchase by GNMA, the Mortgage contains an enforceable provision for the acceleration
of the payment of the unpaid principal balance of the Mortgage Loan in the event that the Mortgaged Property is sold or transferred
without the prior written consent of the mortgagee thereunder.

 

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

 

    	 	Schedule 1 Part 1 - 7 	 

     

    

 

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

 

(aa)No Condemnation
Proceeding. There have not been any condemnation proceedings with respect to the Mortgaged Property and no Seller has knowledge
of any such proceedings.

 

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

 

(cc)Conversion
to Fixed Interest Rate. Except as allowed by Fannie Mae or Freddie Mac or otherwise as expressly approved in writing by Buyer,
with respect to adjustable rate Mortgage Loans, the Mortgage Loan is not convertible to a fixed interest rate Mortgage Loan.

 

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

 

(ee)Servicemembers
Civil Relief Act. The Mortgagor has not notified any Seller, and no Seller has knowledge, of any relief requested or allowed
to the Mortgagor under the Servicemembers Civil Relief Act of 2003.

 

    	 	Schedule 1 Part 1 - 8 	 

     

    

 

(ff)Appraisal.
The Asset File contains an appraisal of the related Mortgaged Property signed prior to the funding of the Mortgage Loan by a qualified
appraiser, duly appointed by Sellers, who had no interest, direct or indirect in the Mortgaged Property or in any loan made on
the security thereof, and whose compensation is not affected by the approval or disapproval of the Mortgage Loan, and the appraisal
and appraiser both satisfy the requirements of Fannie Mae or Freddie Mac and Title XI of the Federal Institutions Reform, Recovery,
and Enforcement Act of 1989 as amended and the regulations promulgated thereunder, all as in effect on the date the Mortgage Loan
was originated.

 

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

 

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

 

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

 

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

 

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

 

(ll)Proceeds of
Mortgage Loan. The proceeds of the Mortgage Loan have not been and shall not be used to satisfy, in whole or in part, any debt
owed or owing by the Mortgagor to any Seller or any Affiliate or correspondent of any Seller, except in connection with a refinanced
Mortgage Loan.

 

    	 	Schedule 1 Part 1 - 9 	 

     

    

 

(mm)Origination
Date. The Purchase Date for a Mortgage Loan, other than a correspondent Mortgage Loan or New Origination Performing Mortgage
Loan, is no more than ninety (90) days following the origination date. The Purchase Date for a correspondent Mortgage Loan is no
more than one hundred and eighty (180) days following the origination date. The Purchase Date for a New Origination Performing
Mortgage Loan is no more than three hundred sixty-four (364) days following the origination date.

 

(nn)No Exception.
The Custodian has not noted any material exceptions on a Custodial Asset Schedule with respect to the Mortgage Loan which would
materially adversely affect the Mortgage Loan or Buyer’s interest in the Mortgage Loan.

 

(oo)Mortgage Submitted
for Recordation. The Mortgage either has been or will promptly be submitted for recordation in the appropriate governmental
recording office of the jurisdiction where the Mortgaged Property is located.

 

(pp)Documents
Genuine. Such Purchased Mortgage Loan and all accompanying collateral documents are complete and authentic and all signatures
thereon are genuine. Such Purchased Mortgage Loan is a “closed” loan fully funded by a Seller and held in such Seller’s
name.

 

(qq)Bona Fide
Loan. Such Purchased Mortgage Loan arose from a bona fide loan, complying with all applicable state and federal laws and regulations,
to persons having legal capacity to contract and is not subject to any defense, set-off or counterclaim.

 

(rr)Other Encumbrances.
To the best of Sellers’ knowledge, any property subject to any security interest given in connection with such Purchased
Mortgage Loan is not subject to any other encumbrances other than a stated first mortgage, if applicable, and encumbrances which
may be allowed under the Underwriting Guidelines.

 

(ss)Description.
Each Purchased Mortgage Loan conforms to the description thereof as set forth on the related Custodial Asset Schedule delivered
to the Custodian and Buyer.

 

(tt)Located in
U.S. No collateral (including, without limitation, the related real property and the dwellings thereon and otherwise) relating
to a Purchased Mortgage Loan is located in any jurisdiction other than in one of the fifty (50) states of the United States of
America or the District of Columbia.

 

(uu)Underwriting
Guidelines. Each Purchased Mortgage Loan has been originated in accordance with the Underwriting Guidelines (including all
supplements or amendments thereto) previously provided to Buyer.

 

(vv)Aging.
Such Purchased Mortgage Loan has not been subject to a Transaction hereunder for more than the applicable Aging Limit.

 

(ww)Committed
Mortgage Loans. Each Committed Mortgage Loan is covered by a Take-out Commitment, does not exceed the availability under such
Take-out Commitment (taking into consideration mortgage loans which have been purchased by the respective Take-out Investor under
the Take-out Commitment and mortgage loan which the applicable Seller has identified to Buyer as covered by such Take-out Commitment)
and conforms to the requirements and the specifications set forth in such Take-out Commitment and the related regulations, rules,
requirements and/or handbooks of the applicable Take-out Investor and is eligible for sale to and insurance or guaranty by, respectively
the applicable Take-out Investor and applicable insurer. Each Take-out Commitment is a legal, valid and binding obligation of the
applicable Seller enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency and similar
laws affecting creditors’ rights generally and subject, as to enforceability, to general principles of equity (regardless
of whether enforcement is sought in a proceeding in equity or at law).

 

    	 	Schedule 1 Part 1 - 10 	 

     

    

 

(xx)Primary Mortgage
Guaranty Insurance. Each Conforming Mortgage Loan with a Loan to Value Ratio of 80% or higher is insured as to payment defaults
by primary mortgage guaranty insurance. Each other Mortgage Loan is insured as to payment defaults by a policy of primary mortgage
guaranty insurance where applicable. Each Purchased Mortgage Loan is insured in the amount required, and by an insurer approved,
by the applicable Take-out Investor, if applicable, and all provisions of such primary mortgage guaranty insurance have been and
are being complied with, such policy is in full force and effect, and all premiums due thereunder have been paid. Each Mortgage
Loan which is represented to Buyer to have, or to be eligible for, FHA insurance is insured, or eligible to be insured, pursuant
to the National Housing Act. Each Mortgage Loan which is represented by a Seller to be guaranteed, or to be eligible for guaranty,
by the VA is guaranteed, or eligible to be guaranteed, under the provisions of Chapter 37 of Title 38 of the United States Code.
As to each FHA insurance certificate or each VA guaranty certificate, the applicable Seller has complied with applicable provisions
of the insurance for guaranty contract and federal statutes and regulations, all premiums or other charges due in connection with
such insurance or guarantee have been paid, there has been no act or omission which would or may invalidate any such insurance
or guaranty, and the insurance or guaranty is, or when issued, will be, in full force and effect with respect to each Mortgage
Loan. There are no defenses, counterclaims, or rights of setoff affecting the Mortgage Loans or affecting the validity or enforceability
of any private mortgage insurance or FHA insurance applicable to the Mortgage Loans or any VA guaranty with respect to the Mortgage
Loans.

 

(yy)Predatory
Lending Regulations; High Cost Loans. None of the Mortgage Loans are classified as High Cost Mortgage Loans.

 

(zz)High LTV Loans.
None of the Mortgage Loans are High LTV Loans.

 

(aaa)Wet-Ink Mortgage
Loans. With respect to each Mortgage Loan that is a Wet-Ink Mortgage Loan, the Settlement Agent has been instructed in writing
by a Seller to hold the related Asset Documents as agent and bailee for Buyer or Buyer agent and to promptly forward such Asset
Documents in accordance with the provisions of the Custodial Agreement and the Escrow Instruction Letter.

 

(bbb)FHA Mortgage
Insurance; VA Loan Guaranty. With respect to the FHA Loans, the FHA Mortgage Insurance Contract is in full force and effect
and there exists no impairment to full recovery without indemnity to HUD or the FHA under FHA Mortgage Insurance. With respect
to the VA Loans, the VA Loan Guaranty Agreement is in full force and effect to the maximum extent stated therein. All necessary
steps have been taken to keep such guaranty or insurance valid, binding and enforceable and each of such is the binding, valid
and enforceable obligation of the FHA and the VA, respectively, to the full extent thereof, without surcharge, set-off or defense.
Each FHA Loan and VA Loan was originated in accordance with the criteria of an Agency for purchase of such Mortgage Loans.

 

    	 	Schedule 1 Part 1 - 11 	 

     

    

 

(ccc)Second Lien.
None of the Mortgage Loans are second lien Mortgage Loans.

 

(ddd)Co-op Loan:
Valid First Lien. With respect to each Co-op Loan, the related Mortgage is a valid, enforceable and subsisting first security
interest on the related cooperative shares securing the related cooperative note and lease, subject only to (a) liens of the cooperative
for unpaid assessments representing the Mortgagor’s pro rata share of the cooperative’s payments for its blanket mortgage,
current and future real property taxes, insurance premiums, maintenance fees and other assessments to which like collateral is
commonly subject and (b) other matters to which like collateral is commonly subject which do not materially interfere with the
benefits of the security intended to be provided by the security interest. There are no liens against or security interests in
the cooperative shares relating to each Co-op Loan (except for unpaid maintenance, assessments and other amounts owed to the related
cooperative which individually or in the aggregate will not have a material adverse effect on such Co-op Loan), which have priority
equal to or over a Seller’s security interest in such Co-op Shares.

 

(eee)Co-op Loan:
Compliance with Law. With respect to each Co-op Loan, the related cooperative corporation that owns title to the related cooperative
apartment building is a “cooperative housing corporation” within the meaning of Section 216 of the Internal Revenue
Code, and is in material compliance with applicable federal, state and local laws which, if not complied with, could have a material
adverse effect on the Mortgaged Property.

 

(fff)Co-op Loan:
No Pledge. With respect to each Co-op Loan, there is no prohibition against pledging the shares of the cooperative corporation
or assigning the Proprietary Lease. With respect to each Co-op Loan, (i) the term of the related Proprietary Lease is longer than
the term of the Co-op Loan, (ii) there is no provision in any Proprietary Lease which requires the Mortgagor to offer for sale
the Co-op Shares owned by such Mortgagor first to the Co-op Corporation, (iii) there is no prohibition in any Proprietary Lease
against pledging the Co-op Shares or assigning the Proprietary Lease and (iv) the Recognition Agreement is on a form of agreement
published by Aztech Document Systems, Inc. as of the date hereof or includes provisions which are no less favorable to the lender
than those contained in such agreement. 

 

(ggg)Co-op Loan:
Acceleration of Payment. With respect to each Co-op Loan, each Assignment of Proprietary Lease contains enforceable provisions
such as to render the rights and remedies of the holder thereof adequate for the realization of the material benefits of the security
provided thereby. The Assignment of Proprietary Lease contains an enforceable provision for the acceleration of the payment of
the unpaid principal balance of the Mortgage Note in the event the Co-op Unit is transferred or sold without the consent of the
holder thereof. 

 

 

    	 	Schedule 1 Part 1 - 12 	 

     

    

 

(hhh)Qualified
Mortgage. Notwithstanding anything to the contrary set forth in this Agreement, on and after January 10, 2014 (or such later
date as set forth in the relevant regulations), (i) prior to the origination of each Mortgage Loan, the originator made a reasonable
and good faith determination that the Mortgagor had a reasonable ability to repay the loan according to its terms, in accordance
with, at a minimum, the eight underwriting factors set forth in 12 CFR 1026.43(c) and (ii) each Mortgage Loan, other than a New
Origination Performing Mortgage Loan, is a “Qualified Mortgage” as defined in 12 CFR 1026.43(e).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	Schedule 1 Part 1 - 13 	 

     

    

SCHEDULE 1

 

PART II

 

 

REPRESENTATIONS AND WARRANTIES WITH RESPECT
TO 

 

UNDERLYING REPURCHASE TRANSACTIONS

 

 

The Sellers make the
following representations and warranties to the Buyer, with respect to the Underlying Repurchase Transactions, that as of the Underlying
Repurchase Transaction, and as of the date of this Agreement and any Underlying Repurchase Transaction is outstanding and at all
times while the Program Agreements and any Underlying Repurchase Transaction is in full force and effect. For purposes of this
Schedule 1 and the representations and warranties set forth herein, a breach of a representation or warranty shall be deemed
to have been cured with respect to the Underlying Repurchase Transaction if and when the Sellers have taken or caused to be taken
action such that the event, circumstance or condition that gave rise to such breach no longer adversely affects such Underlying
Repurchase Transaction.

 

(a)Validity of
Underlying Repurchase Documents. The Underlying Repurchase Documents and any other agreement executed and delivered by the
Underlying Repurchase Counterparty or guarantor thereto, as applicable, in connection with an Underlying Repurchase Transaction
are genuine, and each is the legal, valid and binding obligation of the maker thereof enforceable in accordance with its terms,
except as such enforcement may be affected by bankruptcy, by other insolvency laws or by general principles of equity. Sellers
and the Underlying Repurchase Counterparty had legal capacity to enter into the Underlying Repurchase Transaction and the Underlying
Repurchase Counterparty had the legal capacity to execute and deliver the Underlying Repurchase Documents and any such agreement,
and the Underlying Repurchase Documents and any such other related agreement to which Sellers or the Underlying Repurchase Counterparty
are parties have been duly and properly executed by Sellers and the Underlying Repurchase Counterparty, as applicable. The Underlying
Repurchase Documents to which the Underlying Repurchase Counterparty is a party constitute legal, valid, binding and enforceable
obligations of the Underlying Repurchase Counterparty. The Underlying Repurchase Transaction and the Underlying Repurchase Documents
are in full force and effect, and the enforceability of the Underlying Repurchase Documents has not been contested by the Underlying
Repurchase Counterparty.

 

(b)Original Terms
Unmodified. Except to the extent approved in writing by Buyer, the terms of the Underlying Repurchase Documents have not been
impaired, altered or modified in any respect.

 

(c)No Defenses.
The Underlying Repurchase Transaction is not subject to any right of rescission, set-off, counterclaim or defense nor will the
operation of any of the terms of any Underlying Repurchase Documents, or the exercise of any right thereunder, render any Underlying
Repurchase Document unenforceable in whole or in part and no such right of rescission, set-off, counterclaim or defense has been
asserted with respect thereto.

 

    	 	Schedule 1 Part 2 - 1 	 

     

    

 

(d)No Bankruptcy.
The Underlying Repurchase Counterparty is not a debtor in any state or federal bankruptcy or insolvency proceeding. The Underlying
Repurchase Counterparty has not threatened and, to Sellers’ knowledge, is not contemplating either the filing of a petition
by it under any state or federal bankruptcy or insolvency laws or the liquidation of all or a major portion of the Underlying Repurchase
Counterparty’s assets or any of the Mortgage Loans.

 

(e)Compliance
with Applicable Laws; Consents. Any and all requirements of any federal, state or local law including, without limitation,
usury, consumer credit protection, or disclosure laws applicable to the Underlying Repurchase Transaction have been complied with
in all material respects, the consummation of the transactions contemplated hereby will not involve the violation of any such laws
or regulations, and the applicable Seller shall maintain in its possession, available for the inspection by Buyer, and shall deliver
to Buyer, upon demand, evidence of compliance with all such requirements. All consents of and all filings with any federal or state
Governmental Authority necessary in connection with the execution, delivery or performance of the Underlying Repurchase Transaction
have been obtained or made and are in full force and effect.

 

(f)No Waiver.
Except to the extent approved in writing by Buyer, no Seller has waived the performance by the Underlying Repurchase Counterparty
of any action, if the Underlying Repurchase Counterparty’s failure to perform such action would cause the Underlying Repurchase
Transaction to be in default in any material respect nor, except to the extent approved in writing by Buyer, has any Seller waived
any such default resulting from any action or inaction by the Underlying Repurchase Counterparty.

 

(g)No Defaults.
Except to the extent approved in writing by Buyer, there is no default, breach, violation or event of acceleration existing under
the Underlying Repurchase Documents and no event has occurred which, with the passage of time or giving of notice or both and the
expiration of any grace or cure period, would constitute a default, breach, violation or event of acceleration thereunder, and
no Seller nor its predecessors in interest have waived any such default, breach, violation or event of acceleration.

 

(h)Delivery of
Underlying Repurchase Documents. True and correct copies of the Underlying Repurchase Documents have been delivered to Buyer.

 

(i)Organization.
The Underlying Repurchase Counterparty has been duly organized and is validly existing and in good standing under the laws of the
jurisdiction of its formation. The Underlying Repurchase Counterparty has requisite power and authority to (i) own its properties,
(ii) transact the business in which it is now engaged, (iii) execute and deliver the Underlying Repurchase Documents and (iv) consummate
the transactions contemplated thereby. The Underlying Repurchase Counterparty is duly qualified to do business and is in good standing
in the jurisdictions where it is required to be so qualified in connection with the ownership, maintenance, management and operation
of its business. The Underlying Repurchase Counterparty possesses all material rights, licenses, permits and authorizations, governmental
or otherwise, necessary to entitle it to own its properties and to transact the businesses in which it is now engaged.

 

    	 	Schedule 1 Part 2 - 2 	 

     

    

 

(j)No Conflicts.
The execution, delivery and performance of the Underlying Repurchase Documents by the Underlying Repurchase Counterparty do not
conflict with or constitute a default under, or result in the creation or imposition of any lien (other than pursuant to the Underlying
Repurchase Documents) under, any material mortgage, deed of trust, Agreement, partnership agreement, or other agreement or instrument
to which the Underlying Repurchase Counterparty is a party or to which any of its property is subject, nor will such action result
in any violation of the provisions of any statute of any Governmental Authority having jurisdiction over the Underlying Repurchase
Counterparty, and any qualification of or with any governmental authority required for the execution, delivery, and performance
by the Underlying Repurchase Counterparty of the Underlying Repurchase Documents has been obtained and is in full force and effect.

 

(k)Compliance.
The Underlying Repurchase Counterparty is in compliance in all material respects with all applicable legal requirements. The Underlying
Repurchase Counterparty is not in default or violation of any order, writ, injunction, decree or demand of any Governmental Authority,
the violation of which might adversely affect the condition (financial or otherwise) or business of the Underlying Repurchase Counterparty.

 

(l)Underlying
Repurchase Transaction Not Assigned. No Underlying Repurchase Transaction Document is assigned to any third party. The Underlying
Repurchase Documents permit Sellers to sell, assign, pledge, transfer or rehypothecate the Mortgage Loans and all other collateral
purchased by Sellers pursuant to the Underlying Repurchase Documents.

 

(m)Solvency.
The transfer of the Mortgage Loans subject to the Underlying Repurchase Documents is not undertaken with the intent to hinder,
delay or defraud any of the Underlying Repurchase Counterparty’s creditors. The Underlying Repurchase Counterparty is not
insolvent within the meaning of 11 U.S.C. Section 101(32) and the transfer and pledge of the Mortgage Loans pursuant to the Underlying
Repurchase Documents (i) will not cause the Underlying Repurchase Counterparty to become insolvent, (ii) will not result in any
property remaining with the Underlying Repurchase Counterparty to be unreasonably small capital, and (iii) will not result in debts
that would be beyond the Underlying Repurchase Counterparty’s ability to pay as same mature. The Underlying Repurchase Counterparty
receives reasonably equivalent value in exchange for the transfer and pledge of the Mortgage Loans in accordance with the Underlying
Repurchase Documents.

 

(n)Ownership.
The applicable Seller is the sole owner and holder of the underlying Mortgage Loan or REO Subsidiary Interest, as applicable. Neither
the Mortgage Loans nor the REO Subsidiary Interests have not been assigned or pledged by the applicable Seller other than pursuant
to this Agreement. The applicable Seller has good, indefeasible and marketable title to the Mortgage Loans and the REO Subsidiary
Interests, and has full right to transfer, pledge and assign the Mortgage Loans and the REO Subsidiary Interests to Buyer free
and clear of any encumbrance, equity, participation interest, lien, pledge, charge, claim or security interest, and has full right
and authority subject to no interest or participation of, or agreement with, any other party, to assign, transfer and pledge the
Mortgage Loans and the REO Subsidiary Interests pursuant to this Agreement, and following the transfer and pledge of the Mortgage
Loans and the REO Subsidiary Interests, Buyer will hold such Mortgage Loans and REO Subsidiary Interests free and clear of any
encumbrance, equity, participation interest, lien, pledge, charge, claim or security interest except any such security interest
created pursuant to the terms of the Agreement.

 

    	 	Schedule 1 Part 2 - 3 	 

     

    

 

(o)Agency Approvals.
With respect to each Agency Security and to the extent necessary, the applicable Underlying Repurchase Counterparty is an FHA Approved
Mortgagee, a VA Approved Lender and a GNMA Approved Lender. The applicable Underlying Repurchase Counterparty is also approved
by Fannie Mae as an approved lender and Freddie Mac as an approved seller/servicer, and, to the extent necessary, approved by the
Secretary of Housing and Urban Development pursuant to Sections 203 and 211 of the National Housing Act. In each such case, the
applicable Underlying Repurchase Counterparty is in good standing, with no event having occurred or such Underlying Repurchase
Counterparty having any reason whatsoever to believe or suspect will occur prior to the issuance of the Agency Security or the
consummation of the Take-out Commitment, as the case may be, including, without limitation, a change in insurance coverage which
would either make such Underlying Repurchase Counterparty unable to comply with the eligibility requirements for maintaining all
such applicable approvals or require notification to the relevant Agency or to HUD, FHA or VA. Should such Underlying Repurchase
Counterparty for any reason cease to possess all such applicable approvals, or should notification to the relevant Agency or to
HUD, FHA or VA be required, Sellers shall so notify Buyer immediately in writing.

 

(p)No Plan Assets.
The related Underlying Repurchase Counterparty is not an “employee benefit plan,” as defined in Section 3(3) of ERISA,
subject to Title I of ERISA, and none of the assets of the Mortgagor constitutes or will constitute “plan assets” of
one or more such plans within the meaning of 29 C.F.R. Section 2510.3-101.

 

(q)No Prohibited
Persons. Neither the related Underlying Repurchase Counterparty nor any of its Affiliates, officers, directors, partners or
members, is an entity or person (or to Sellers’ knowledge after due inquiry, owned or controlled by an entity or person):
(i) that is listed in the Annex to, or is otherwise subject to the provisions of Executive Order 13224 issued on September 24,
2001 (“EO13224”); (ii) whose name appears on the United States Treasury Department’s Office of Foreign
Assets Control (“OFAC”) most current list of “Specifically Designated National and Blocked Persons”
(which list may be published from time to time in various mediums including, but not limited to, the OFAC website, http:www.treas.gov/ofac/t11sdn.pdf);
(iii) who commits, threatens to commit or supports “terrorism”, as that term is defined in EO13224; or (iv) who
is otherwise affiliated with any entity or person listed above.

 

(r)Financial Information.
Based upon the related Underlying Repurchase Counterparty’s representations and warranties, all financial data, including,
without limitation the statements of cash flow and income and operating expense, that have been delivered to Sellers (i) are true,
complete, and correct in all material respects, and (ii) accurately represent the financial condition of such Underlying Repurchase
Counterparty as of the date of such reports.

 

(s)Mortgage Loans
Assignable; Buyer’s Security Interest. The underlying Asset Documents and Underlying Repurchase Documents have been delivered
to Buyer and (i) the UCC-1 Financing Statement naming the Underlying Repurchase Counterparty as debtor and each Seller as secured
party and identifying the Mortgage Loans and the REO Subsidiary Interests as collateral has been filed in the applicable filing
office.

 

    	 	Schedule 1 Part 2 - 4 	 

     

    

 

(t)No
Custodial Arrangement. There is no agreement or arrangement with any third party to hold the Asset Documents pursuant to the
Underlying Repurchase Transaction.

 

(u)Underlying
Repurchase Counterparty Diligence. The applicable Seller has delivered to Buyer all information regarding the applicable Underlying
Repurchase Counterparty as Buyer has requested and such information is satisfactory to Buyer in all material respects.

 

(v)Underlying
Repurchase Documents. The Underlying Repurchase Documents are “repurchase agreements” within the meaning of Section
559 of the Bankruptcy Code.

 

 

 

 

 

 

 

 

 

 

 

    	 	Schedule 1 Part 2 - 5 	 

     

    

SCHEDULE 1

 

PART III

 

REPRESENTATIONS AND WARRANTIES WITH RESPECT
TO SEASONED MORTGAGE LOANS

 

The Sellers make the
following representations and warranties to the Buyer, with respect to the Seasoned Mortgage Loans subject to a Transaction, that
as of the Purchase Date for the purchase of Seasoned Mortgage Loans subject to a Transaction by the Buyer from a Seller, , and
as of the date of this Agreement and any Transaction hereunder relating to the Seasoned Mortgage Loans is outstanding and at all
times while the Program Agreements and any Transaction hereunder is in full force and effect. For purposes of this Schedule
1 and the representations and warranties set forth herein, a breach of a representation or warranty shall be deemed to have
been cured with respect to the Seasoned Mortgage Loans if and when the Sellers have taken or caused to be taken action such that
the event, circumstance or condition that gave rise to such breach no longer adversely affects such Seasoned Mortgage Loans.

 

(a) Data.
The information on the Asset Schedule correctly and accurately reflects the information contained in the Sellers’ records
(including, without limitation, the Asset File, as applicable) in all material respects. The information contained under each of
the headings in the Asset Schedule is true, complete and correct in all material respects.

 

(b) No Error,
Omission, Fraud etc. No fraud, misrepresentation, material error or omission or gross negligence, has taken place on the part
of the Sellers or, to the best of Sellers’ knowledge any other party in connection with the origination of the Mortgage Loan,
the determination of the value of the Mortgaged Property, or the sale or servicing of the Mortgage Loan.

 

(c)Regulatory
Compliance. At the time of origination, or if modified, the date of modification, each Mortgage Loan complied in all material
respects with all then-applicable federal, state, and local laws, including (without limitation) usury, truth-in-lending, real
estate settlement procedures, consumer credit protection, equal credit opportunity, predatory and abusive lending laws, disclosure
or unfair and deceptive practice laws or such noncompliance was cured subsequent to origination, as permitted by applicable law.
The servicing and collection practices used by the related Servicer with respect to each Mortgage Loan have at all times complied
in all material respects with all applicable federal, state, and local laws. While the Mortgage Loan has been serviced by the related
Servicer, it has been serviced in accordance with the terms of the Mortgage Note or any applicable forbearance plan or bankruptcy
plan.

 

(d)Ownership.
Immediately prior to the transfer and assignment of the Mortgage Loan pursuant to this Agreement, the applicable Seller was the
sole owner and holder of the Mortgage Loan free and clear of any and all liens, pledges, charges, or security interests of any
nature and had full right and authority to sell and assign the same. Upon consummation of a Transaction with respect to the Mortgage
Loan, the Buyer shall acquire good and marketable title to the Purchased Mortgage Loan.

 

    	 	Schedule 1 Part 3 - 1 	 

     

    

 

(e)Enforceability
and Priority of Lien. (A) The Mortgage is a valid, subsisting, and enforceable first lien on the property therein described,
the Mortgaged Property is free and clear of all encumbrances and liens having priority over the lien of the Mortgage except for,
(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 public record as of the date of recording of such mortgage acceptable to mortgage
lending institutions in the area in which the Mortgaged Property is located, (iii) liens created pursuant to any federal, state,
or local law, regulation, or ordinance affording liens for the costs of clean-up of hazardous substances or hazardous wastes or
for other environmental protection purposes, and (iv) such other matters to which like properties are commonly subject that do
not individually or in aggregate materially interfere with the benefits of the security intended to be provided by the Mortgage;
and (B) any security agreement, chattel mortgage, or equivalent document related to and delivered to the Custodian with any Mortgage
establishes a valid and subsisting first lien on the property described therein.

 

(f)Mortgage Loan
Legal and Binding. (A) The Mortgage Note, the related Mortgage, and other agreements executed in connection therewith are genuine,
and each is the legal, valid, and binding obligation of the maker thereof, enforceable in accordance with its terms, except as
such enforcement may be limited by bankruptcy, insolvency, reorganization, or other similar laws affecting the enforcement of creditors’
rights generally and by general equity principles (regardless of whether such enforcement is considered in a proceeding in equity
or at law); and (B) to the best of Sellers’ knowledge, all parties to the Mortgage Note and the Mortgage had legal capacity
to execute the Mortgage Note and the Mortgage, and each Mortgage Note and Mortgage has been duly and properly executed by the Mortgagor
and delivered by the parties.

 

(g)Customary Provisions.
The Mortgage and related Mortgage Note contain customary and enforceable provisions such as to render the rights and remedies of
the holder thereof adequate for the realization against the Mortgaged Property of the benefits of the security provided thereby,
including (i) in the case of a Mortgage designated as a deed of trust by trustee’s sale, and (ii) otherwise by
judicial foreclosure. There is no homestead or other exemption available to the Mortgagor that would interfere with such right
of foreclosure.

 

(h)No Prior Modifications.
If a Mortgage Loan has been modified after acquisition by the applicable Seller, the current and applicable modified terms are
reflected on the Asset Schedule and the signed modification documents are in the related loan file.

 

(i)Taxes Paid.
Except as disclosed to Buyer, all taxes, and insurance premiums, and, to the best of the applicable Seller’s knowledge, homeowner
or similar association fees, charges and assessments, governmental assessments, and water, sewer and municipal charges, which previously
became due and owing have been paid, or an escrow of funds has been established, to the extent permitted by law, in an amount sufficient
to pay for every such item which remains unpaid.

 

(j)No Damage/Condemnation.
To the best of Sellers’ knowledge, the Mortgaged Property is undamaged by water, fire, earthquake, earth movement other than
earthquake, windstorm, flood, tornado, defective construction materials or work, or similar casualty (excluding casualty from the
presence of hazardous wastes or hazardous substances) to affect adversely the value of the Mortgaged Property as security for the
Mortgage Loan as reflected in the value of the Mortgage Loan; and to the best of Sellers’ knowledge, there is no proceeding
(pending or threatened) for the total or partial condemnation of the Mortgaged Property.

 

    	 	Schedule 1 Part 3 - 2 	 

     

    

 

(k)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), (b) is a High Cost Mortgage Loan or (c) contains any term or condition, or
involves any loan origination practice, that has been defined as “predatory” under any applicable federal, state, county
or municipal law, or that has been expressly categorized as an “unfair” or “deceptive” term, condition
or practice in any such applicable federal, state, county or municipal law. No predatory or deceptive lending practices, including,
without limitation, the extension of credit without regard to the ability of the Mortgagor to repay and the extension of credit
which has no apparent benefit to the Mortgagor, were employed in the origination of the Mortgage Loan.

 

(l)Existence of
Title Insurance. The Mortgage Loan (except any Mortgage Loan secured by a Mortgaged Property located in any jurisdiction for
which an opinion of counsel of the type customarily rendered in such jurisdiction in lieu of title insurance is instead received)
is covered by an American Land Title Association mortgagee title insurance policy or other generally acceptable form of policy
or insurance issued by a title insurer acceptable to Fannie Mae or Freddie Mac, issued by a title insurer acceptable to Fannie
Mae or Freddie Mac insuring the originator and its successors, and assigns, as to the first priority lien of the Mortgage in the
original or current principal amount of the Mortgage Loan and subject only to (a) the lien of current real property taxes and assessments
not yet due and payable, (b) covenants, conditions, and restrictions, rights of way, easements, and other matters of public record
as of the date of recording of such mortgage acceptable to mortgage lending institutions in the area in which the Mortgaged Property
is located or specifically referred to in the appraisal performed in connection with the origination of the related Mortgage Loan,
(c) liens created pursuant to any federal, state, or local law, regulation, or ordinance affording liens for the costs of clean-up
of hazardous substances or hazardous wastes or for other environmental protection purposes, and (d) such other matters to which
like properties are commonly subject which do not individually, or in the aggregate, materially interfere with the benefits of
the security intended to be provided by the Mortgage. The Sellers or any other person on behalf of the Sellers are the sole insured
of such mortgagee title insurance policy. The assignment of such mortgagee title insurance policy does not require any consent
of or notification to the insurer which has not been obtained or made. No claims have been made under such mortgagee title insurance
policy.

 

(m)Hazard Insurance;
Flood Insurance. The Mortgaged Property securing each Mortgage Loan is insured by an insurer acceptable to Fannie Mae or Freddie
Mac against loss by fire and such hazards as are covered under a standard extended coverage endorsement in an amount that is not
less than the value. If the Mortgaged Property is a condominium unit, it is included under the coverage afforded by a blanket policy
for the project. If upon origination of the Mortgage Loan, the improvements on the Mortgaged Property were in an area identified
in the Federal Register by the Federal Emergency Management Agency as having special flood hazards, a flood insurance policy meeting
the requirements of the current guidelines of the Federal Insurance Administration is in effect with a generally acceptable insurance
carrier in an amount representing commercially reasonable coverage. Each Mortgage obligates the Mortgagor thereunder to maintain
all such insurance at the Mortgagor’s cost and expense.

 

    	 	Schedule 1 Part 3 - 3 	 

     

    

 

(n)Mortgage Recorded.
With respect to any Mortgage that has not been recorded in the name of MERS, as agent for the holder from time to time of the Mortgage
Note, each original Mortgage was recorded or submitted for recordation in the jurisdiction in which the Mortgaged Property is located
and all subsequent assignments of the original Mortgage have been delivered in the appropriate form for recording in all jurisdictions
in which such recordation is appropriate.

 

(o)Litigation.
Other than any customary claim or counterclaim arising out of any foreclosure or collection proceeding relating to any Mortgage
Loan, there is no litigation, proceeding or governmental investigation pending, or any order, injunction or decree outstanding,
existing or relating to the Mortgage Loan or the related Mortgaged Property.

 

(p)Property Value.
Seller has delivered to Buyer a BPO valuation and valuation date given by a licensed real estate agent or broker in conformity
with customary and usual business practices, which includes comparable sales and comparable listings and complies with the criteria
set forth in FIRREA for an “appraisal” or an “evaluation”, as applicable, and such other information in
further compliance with this Agreement. The person performing any BPO received no benefit from, and such person’s compensation
or flow of business from the Sellers were not affected by, the acquisition of the Mortgage Loan by the Sellers or any other applicable
transferee.

 

(q)Location and
Type of Mortgaged Property. Each Mortgaged Property is located in an Acceptable State as identified in the Custodial Asset
Schedule and consists of a one- to four-unit residential property, which may include, but is not limited to, a single-family dwelling,
townhouse, condominium unit, or unit in a planned unit development. No Mortgaged Property is a cooperative or a manufactured home.

 

(r)Insurance Coverage
Not Impaired. With respect to any Mortgage Loan that is not covered under an umbrella insurance policy of the related Servicer,
with respect to any insurance policy including, but not limited to, hazard, title, or mortgage insurance covering a Mortgage Loan
and the related Mortgaged Property, neither (i) the originator nor (ii) any prior holder has engaged in, and the Sellers have no
knowledge of the Mortgagor’s having engaged in, any act or omission that would impair the coverage of any such policy, the
benefits of the endorsement, or the validity and binding effect of either, including without limitation, no unlawful fee, commission,
kickback, or other unlawful compensation or value of any kind as has been or will be received, retained, or realized by any attorney,
firm, or other person or entity, and no such unlawful items have been received, retained, or realized by the originator.

 

(s)Environmental
Laws. To the best of Sellers’ knowledge, the Mortgaged Property is currently in material compliance with all applicable
environmental laws pertaining to environmental hazards including, without limitation, asbestos.

 

    	 	Schedule 1 Part 3 - 4 	 

     

    

 

(t)Deeds of Trust.
In the event that the Mortgage constitutes a deed of trust, a trustee, duly qualified under applicable law to serve as such, has
been properly designated and currently so serves and is named in the Mortgage, and no fees or expenses are or will become payable
by the Buyer or any other applicable transferee to the trustee under the deed of trust, except in connection with a trustee’s
sale after default by the Mortgage.

 

(u)Due-On-Sale.
The Mortgage contains an enforceable provision, to the extent not prohibited by applicable law as of the date of such Mortgage,
for the acceleration of the payment of the unpaid principal balance of the Mortgage Loan in the event that the Mortgaged Property
is sold or transferred without the prior written consent of the mortgagee.

 

(v)Leases.
The Mortgaged Property is either a fee simple estate or a long-term residential lease. If the Mortgage Loan is secured by a long-term
residential lease, to the best of Sellers’ knowledge: (A) the terms of such lease expressly permit the mortgaging of the
leasehold estate, the assignment of the lease without the lessor’s consent (or the lessor’s consent has been obtained
and such consent is in the Asset File), and the acquisition by the holder of the Mortgage of the rights of the lessee upon foreclosure
or assignment in lieu of foreclosure or provide the holder of the Mortgage with substantially similar protection; (B) the terms
of such lease do not allow the termination thereof upon the lessee’s default without the holder of the Mortgage being entitled
to receive written notice of, and opportunity to cure, such default or prohibit the holder of the Mortgage from being insured under
the hazard insurance policy related to the Mortgaged Property; (C) the original term of such lease is not less than 15 years; (D)
the term of such lease does not terminate earlier than five years after the maturity date of the Mortgage Note; and (E) the Mortgaged
Property is located in a jurisdiction in which the use of leasehold estates for residential properties is an accepted practice.

 

(w)Complete Asset
Files. For each Mortgage Loan, all of the required Mortgage Loan documents have been delivered to the Custodian in accordance
with the Custodial Agreement and all Mortgage Loan documents necessary to foreclose on the Mortgaged Property are included in the
Asset File delivered to the Custodian. No material documentation is missing from the Asset File in possession of Custodian, unless
such documentation is subject to a Servicer request for release of documents and a foreclosure attorney acknowledgment in form
and substance acceptable to Buyer. Each of the documents and instruments specified to be included in the Asset File is executed
and in due and proper form, and each such document or instrument is in form acceptable to the applicable federal or state regulatory
agency.

 

(x)No Construction
Loans; Reverse Mortgage Loans; Home Equity Lines of Credit. No Mortgage Loan (i) was made in connection with the construction
or rehabilitation of a Mortgaged Property where construction loan proceeds are still being disbursed, (ii) is a reverse mortgage
loan or (iii) is a home equity line of credit.

 

(y)No Rescission.
(A) No Mortgage Note or Mortgage is subject to any right of rescission, set-off, counterclaim, or defense, including the defense
of usury, nor will the operation of any of the terms of the Mortgage Note or Mortgage, or the exercise of any right thereunder,
render the Mortgage Note or Mortgage unenforceable, in whole or in part, or subject it to any right of rescission, set-off, counterclaim,
or defense, including the defense of usury; and (B) to the best of the applicable Seller’s knowledge, no such right of rescission,
set-off, counterclaim, or defense has been asserted with respect thereto.

 

    	 	Schedule 1 Part 3 - 5 	 

     

    

 

(z) TRID Compliance.
With respect to each Mortgage Loan where the Mortgagor’s loan application for the Mortgage Loan was taken on or after October
3, 2015, such Mortgage Loan was originated in compliance with the TILA-RESPA Integrated Disclosure Rule

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	Schedule 1 Part 3 - 6 	 

     

    

 

 

    	 

    	 

    

SCHEDULE 1

 

PART IV

 

REPRESENTATIONS AND WARRANTIES WITH RESPECT
TO REO PROPERTY

 

 

 

The Sellers make the
following representations and warranties to the Buyer, with respect to the REO Property owned or deemed owned by the REO Subsidiary
and any Unrecorded REO Property owned or deemed owned by REO Subsidiary, that as of the Purchase Price Increase Date for the
acquisition of REO Property by REO Subsidiary and as of the date of this Agreement and any Transaction hereunder relating
to the REO Subsidiary Interests is outstanding and at all times while the Program Agreements and any Transaction hereunder is in
full force and effect, provided that to the extent that any Seller has declared in writing a REO Property to be ineligible to satisfy
the representations and warranties set forth below, then Sellers shall not make such representations and warranties with respect
to such REO Property. For purposes of this Schedule 1 and the representations and warranties set forth herein, a breach
of a representation or warranty shall be deemed to have been cured with respect to the REO Property if and when the Sellers have
taken or caused to be taken action such that the event, circumstance or condition that gave rise to such breach no longer adversely
affects such REO Property.

 

(a)Asset File.
All documents required to be delivered as part of the Asset File, have been delivered to the Custodian or held by an attorney in
connection with a foreclosure pursuant to an Attorney Bailee Letter and all information contained in the related Asset File
(or as otherwise provided to Buyer) in respect of such REO Property is accurate and complete in all material respects.  

 

(b)Ownership.
The REO Subsidiary is the sole owner and holder of the REO Property; provided that with respect to Unrecorded REO Property, the
holder of record title in the REO Property may be a Seller, the applicable Servicer, or any prior owner or prior servicer for whom
a Servicer is contractually permitted to act.

 

(c)REO Property
as Described. The information set forth in the Asset Schedule accurately reflects information contained in the applicable Seller’s
records in all material respects.

 

(d)Taxes, Assessments
and Other Charges. All taxes, homeowner or similar association fees, charges, and assessments, governmental assessments, insurance
premiums, water, sewer and municipal charges, leasehold payments or ground rents which previously became due and owing have been
paid.

 

(e)No Litigation.
Other than any customary claim or counterclaim arising out of any foreclosure or collection proceeding relating to any REO Property,
there is no litigation, proceeding or governmental investigation pending, or any order, injunction or decree outstanding, existing
or relating to Sellers, the REO Subsidiary or any of their Subsidiaries with respect to the REO Property that would materially
and adversely affect the value of the REO Property.

 

    	 	Schedule 1 Part 4 - 1 	 

     

    

 

(f)Hazard Insurance.
All buildings or other customarily insured improvements upon the REO Property are insured by an insurer against loss by fire, hazards
of extended coverage and such other hazards in an amount not less than the BPO value.

 

(g)Flood Insurance.If
the improvements on the REO Property were in an area identified in the Federal Register by the Federal Emergency Management Agency
as having special flood hazards at the time of origination of the Mortgage Loan that resulted in the REO Property, a flood insurance
policy meeting the requirements of the current guidelines of the Federal Insurance Administration is in effect with a generally
acceptable insurance carrier in an amount representing commercially reasonable coverage.

 

(h)Title Insurance.
The REO Property (and the Unrecorded REO Property Deed upon its submission) is covered by an owner’s mortgage title insurance
policy or an attorney’s opinion of title, or such other generally acceptable form of policy or insurance issued by a title
insurer qualified to do business in the jurisdiction where the REO Property is located, insuring the owner of the REO Property,
its successors and assigns as to the first priority lien of the Mortgage in the original principal amount of the Mortgage Loan.
The REO Subsidiary is the insured under such mortgage title insurance policy. No claim has been made under such owner’s title
insurance policy, and the Sellers, have not done, by act or omission, anything which would impair the coverage of such lender’s
title insurance policy.

 

(i)No Mechanics’
Liens. To the best of the applicable Seller’s knowledge, there are no mechanics’ or similar liens or claims which
have been filed for work, labor or material affecting the related REO Property.

 

(j)No Damage.
To the best of the applicable Seller’s knowledge, the REO Property is undamaged by water, fire, earthquake, earth movement
other than earthquake, windstorm, flood, tornado, defective construction materials or work, or similar casualty (excluding casualty
from the presence of hazardous wastes or hazardous substances) to affect adversely the value of the REO Property.

 

(k)No Condemnation.
To the best of the applicable Seller’s knowledge, there is no proceeding pending, or threatened, for the total or partial
condemnation of the REO Property.

 

(l)Environmental
Matters. To the best of the applicable Seller’s knowledge, there is no pending action or proceeding directly involving
the REO Property in which compliance with any environmental law, rule or regulation is an issue or is secured by a secured lender’s
environmental insurance policy.

 

(m)Location and
Type of REO Property. Each REO Property is located in the U.S. or a territory of the U.S. and consists of a one- to four-unit
residential property, which may include, but is not limited to, a single-family dwelling, townhouse, condominium unit, or unit
in a planned unit development. No REO Property is a cooperative or a manufactured home.

 

(n)Delivery of
Broker’s Price Opinion. With respect to each REO Property, the REO Subsidiary has delivered to Buyer a true and complete
copy of an internal BPO for such REO Property dated no more than ninety (90) days prior to the requested Purchase Date.

 

    	 	Schedule 1 Part 4 - 2 	 

     

    

SCHEDULE 1

 

PART V

 

REPRESENTATIONS AND WARRANTIES WITH RESPECT
TO 

REO SUBSIDIARY INTERESTS 

 

The Sellers make the
following representations and warranties to the Buyer, with respect to the REO Subsidiary Interests subject to a Transaction, that
as of the Purchase Date for the purchase of REO Subsidiary Interests subject to a Transaction by the Buyer from a Seller and as
of the date of this Agreement and any Transaction hereunder relating to the REO Subsidiary Interests is outstanding and at all
times while the Program Agreements and any Transaction hereunder is in full force and effect. For purposes of this Schedule
1 and the representations and warranties set forth herein, a breach of a representation or warranty shall be deemed to have
been cured with respect to the REO Subsidiary Interests if and when the Sellers have taken or caused to be taken action such that
the event, circumstance or condition that gave rise to such breach no longer adversely affects such REO Subsidiary Interests.

 

(a)REO Subsidiary
Interests. The REO Subsidiary Interests constitute all the issued and outstanding REO Subsidiary Interests of all classes of
REO Subsidiary and are certificated. Neither Seller shall issue certificates representing the REO Subsidiary Interests or issue
additional REO Subsidiary Interests other than the REO Subsidiary Interests.

 

(b)Duly and Validly
Issued. All of the shares of the REO Subsidiary Interests have been duly and validly issued and, if capital stock of a corporation,
are fully paid and nonassessable.

 

(c)REO Subsidiary
Interests as Securities. The REO Subsidiary Interests (a) constitute “securities” as defined in Section 8-102
of the Uniform Commercial Code (b) are not dealt in or traded on securities exchanges or in securities markets, (c) do not
constitute investment company securities (within the meaning of Section 8-103(c) of the Uniform Commercial Code) and (d) are
not held in a securities account (within the meaning of Section 8-103(c) of the Uniform Commercial Code).

 

(d)Beneficial
Owner. A Seller is the sole record and beneficial owner of, and has title to, the REO Subsidiary Interests, free of any and
all Liens or options in favor of, or claims of, any other Person, except the Lien created herein.

 

(e)Consents.
All consents of majority in interest of the members of REO Subsidiary to the grant of the security interests provided herein to
Buyer and to the Transactions provided for herein have been obtained and are in full force and effect.

 

(f)Conveyance;
First Priority Lien. Upon delivery to the Buyer of the certificates evidencing the REO Subsidiary Interests (and assuming the
continuing possession by the Buyer of such certificate in accordance with the requirements of applicable law) and the filing of
a financing statement covering the REO Subsidiary Interests in the State of Delaware and naming the applicable Seller as debtor
and the Buyer as secured party, such Seller has conveyed and transferred to Buyer all of its right, title and interest to the REO
Subsidiary Interests, including taking all steps as may be necessary in connection with the indorsement, transfer of power, delivery
and pledge of all REO Subsidiary Interests as “securities” (as defined in Section 8-102 of the Uniform Commercial Code)
to Buyer. The Lien granted hereunder is a first priority Lien on the REO Subsidiary Interests.

 

    	 	Schedule 1 Part 5 - 1 	 

     

    

 

(g)No Waiver.
The applicable Seller has not waived or agreed to any waiver under, or agreed to any amendment or other modification of, the Subsidiary
Agreements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	Schedule 1 Part 5 - 2 	 

     

    

SCHEDULE 1

 

PART VI

 

REPRESENTATIONS AND WARRANTIES WITH RESPECT
TO 

RENTAL PROPERTY

 

The Sellers make the
following representations and warranties to the Buyer, with respect to the Rental Property subject to a Transaction, that as of
the Purchase Date for the purchase of Rental Property subject to a Transaction by the Buyer from a Seller and as of the date of
this Agreement and any Transaction hereunder relating to the Rental Property is outstanding and at all times while the Program
Agreements and any Transaction hereunder is in full force and effect. For purposes of this Schedule 1 and the representations
and warranties set forth herein, a breach of a representation or warranty shall be deemed to have been cured with respect to the
Rental Property if and when the Sellers have taken or caused to be taken action such that the event, circumstance or condition
that gave rise to such breach no longer adversely affects such Rental Property.

 

(a)Title.
The REO Subsidiary has good and marketable fee simple title to the Rental Property with full right to transfer and sell the Rental
Property, free and clear of all liens.

 

(b)Asset File.
All documents required to be delivered as part of the Asset File in accordance with the Custodial Agreement, have been delivered
to the Custodian and all information contained in the related Asset File (or as otherwise provided to Buyer) in respect of such
Rental Property is accurate and complete in all material respects.

 

(c)Ownership.
The REO Subsidiary is the sole owner and holder of the Rental Property related thereto. The REO Subsidiary has not assigned or
pledged the Rental Property.

 

(d)Rental Property
as Described. All information or data furnished with respect to such Rental Property, including, without limitation, the information
set forth in the Transaction Request and the Program Agreements with respect to each Rental Property is complete, true and correct
in all material respects. There is no fact known to any Seller Party or their Affiliates which has not been disclosed to the Buyer
with respect to such Rental Property or the local housing market containing such Rental Property
that could reasonably be expected to have a material adverse effect on the value of such Rental Property or the interest of the
Buyer in such Rental Property.

 

(e)Owner’s
Title Insurance Policy. The related Asset Files contain, for such Rental Property, an owner’s title insurance policy
insuring the good and marketable fee ownership by the REO Subsidiary of such Rental Property or a title commitment for such a policy
issued by a nationally recognized title insurer, and the REO Subsidiary has not been notified in writing of any fact that would
lead a reasonable person to believe that Buyer cannot obtain similar insurance from a nationally recognized title insurer (without
additional exceptions to coverage) upon payment of the applicable premium. The REO Subsidiary is the sole insured of such owner’s
title insurance policy, and such owner’s title insurance policy is in full force and effect and will be in full force and
effect upon the pledge of the Rental Property to Buyer and all premiums thereon have been paid and no material claims have been
made thereunder and no claims have been paid thereunder. Neither the REO Subsidiary nor Property Manager has, by act or omission,
done anything that would materially impair the coverage under such policy. No claims have been made under such owner’s title
insurance policy, and the REO Subsidiary has not done, by act or omission, anything which would impair the coverage of such owner’s
title insurance policy.

 

    	 	Schedule 1 Part 6 - 1 	 

     

    

 

(f)Deed. The
Asset File for such Rental Property includes a Deed for such Rental Property conveying the Rental Property to the REO Subsidiary,
with vesting in the actual name of the REO Subsidiary and (i) evidence that such Deed has been duly recorded, (ii) certification
from a Responsible Officer of the REO Subsidiary that such Deed has been submitted for recordation to the applicable recording
office, or (iii) a stamped certification from the related title insurance company that such Deed has been submitted for recordation
to the applicable recording office.

 

(g)Compliance
with Requirements of Law. Such Rental Property (including the leasing and intended use thereof) complies with all applicable
Requirements of Law, including all applicable anti-discrimination laws and landlord-tenant laws, building and zoning ordinances
and codes and all certifications, permits, licenses and approvals, including without limitation, certificates of completion and
occupancy permits, required for the legal leasing, use, occupancy, habitability and operation of the Rental Property, have been
obtained and are in full force and effect. There is no consent, approval, order or authorization of, and no filing with or notice
to, any court or Governmental Authority related to the operation, use or leasing of the Rental Property that has not been obtained.
There has not been committed by REO Subsidiary or by any other Person in occupancy of or involved with the operation, use or leasing
of the Rental Property any act or omission affording any Governmental Authority the right of forfeiture as against the Rental Property
or any part thereof.

 

(h)Taxes, Assessments
and Other Charges. All taxes, homeowner or similar association fees, charges, and assessments, governmental assessments, insurance
premiums, water, sewer and municipal charges, leasehold payments or ground rents with respect to such Rental Property which previously
became due and owing have been paid. All transfer taxes, deed stamps, intangible taxes or other amounts in the nature of transfer
taxes required to be paid under applicable Requirements of Law in connection with the transfer of such Rental Property to the REO
Subsidiary have been paid or are being paid simultaneously with the making of the relevant Advance.

 

(i)No Litigation.
There is no litigation, proceeding or governmental investigation pending, or any order, injunction or decree outstanding, existing
or relating to the REO Subsidiary or any of its Affiliates with respect to the Rental Property that could reasonably be expected
to materially and adversely affect the value of the Rental Property or the REO Subsidiary. Neither the REO Subsidiary nor Property
Manager has received notice from any Person (including without limitation any Governmental Authority) that the Rental Property
owned by the REO Subsidiary is subject to any consumer litigation which could have a material and adverse effect on the value of
the Rental Property.

 

    	 	Schedule 1 Part 6 - 2 	 

     

    

 

(j)Hazard Insurance.
All buildings or other customarily insured improvements upon the Rental Property (including loss of Rental Proceeds with respect
to the Rental Property) are insured by an insurer against loss by fire, hazards of extended coverage and such other hazards in
an amount not less than the lesser of the related BPO value and the replacement value of such Rental Property.

 

(k)Flood Insurance.
If the improvements on the Rental Property were in an area identified in the Federal Register by the Federal Emergency Management
Agency as having special flood hazards at the time the REO Subsidiary acquired such Rental Property, a flood insurance policy meeting
the requirements of the current guidelines of the Federal Insurance Administration is in effect with a generally acceptable insurance
carrier in an amount representing commercially reasonable coverage.

 

(l)No Mechanics’
Liens. There are no valid and enforceable mechanics’ or similar liens or claims which have been filed for work, labor
or material affecting the related Rental Property.

 

(m)No Damage.
The Rental Property is undamaged by water, fire, earthquake, earth movement other than earthquake, windstorm, flood, tornado, defective
construction materials or work, or similar casualty (excluding casualty from the presence of hazardous wastes or hazardous substances)
which would cause such Rental Property to become uninhabitable.

 

(n)No Condemnation.
There is no proceeding pending, or threatened, for the total or partial condemnation of the Rental Property.

 

(o)Environmental
Matters. The Rental Property is in material compliance with all environmental laws. No Seller Party has caused, or has knowledge
of, any release on to the Rental Property or any adjoining property and to each Seller Party’s knowledge, no tenant of such
Rental Property is involved in any activity that would reasonably be expected to give rise to any environmental liability for any
Seller Party. Additionally, (1) there is no condition affecting the Rental Property (x) relating to lead paint, radon, asbestos
or other hazardous materials, (y) requiring remediation of any condition or (z) relating to a claim which could impose liability
upon, diminish rights of or otherwise adversely affect Buyer and (2) the REO Subsidiary prior to the related Purchase Date has
delivered or caused to be delivered to Buyer a Disclosure of Information on Lead-Based Paint and Lead-Based Paint Hazards for the
Rental Property in a form acceptable to Buyer to the extent required by applicable law.

 

(p)Location and
Type of Rental Property. Each Rental Property is located in the U.S. or a territory of the U.S. and consists of a one- to four-unit
residential property, which may include, but is not limited to, a single-family dwelling, townhouse, condominium unit, or unit
in a planned unit development. No Rental Property is a manufactured home.

 

(q)Recordation.
The related Deed is in recordable form and is acceptable in all respects for recording under the laws of the jurisdiction in which
the Property is located and has been delivered for recordation to the appropriate recording office. The related Deed has been initially
recorded or sent for recordation in the name of the REO Subsidiary.

 

    	 	Schedule 1 Part 6 - 3 	 

     

    

 

(r)No Consents.
Other than consents and approvals obtained as of the related Advance Date or those already granted in the documents governing such
Rental Property, no consent or approval by any Person is required in connection with the REO Subsidiary’s acquisition of
such Rental Property, for Buyer’s exercise of any rights or remedies in respect of such Rental Property or for Buyer’s
sale, pledge or other disposition of such Rental Property. No third party holds any “right of first refusal”, “right
of first negotiation”, “right of first offer”, purchase option, or other similar rights of any kind, and no other
impediment exists to any such transfer or exercise of rights or remedies with respect to such Rental Property. No consent, approval,
authorization or order of, or registration or filing with, or notice to, any court or governmental agency or body having jurisdiction
or regulatory authority over the REO Subsidiary is required for any transfer or assignment by the holder of such Rental Property.

 

(s)No Fraudulent
Acts. No fraudulent acts were committed by the REO Subsidiary in connection with the acquisition of such Rental Property nor
were any fraudulent acts committed by any Person in connection with the acquisition of such Rental Property.

 

(t)Acquisition
of Rental Property. With respect to each such Rental Property, (i) such Rental Property was (x) acquired by the REO Subsidiary
under a Property Contribution Agreement or (y) has been approved as a Rental Property by Buyer in its sole and absolute discretion,
and (ii) with respect to each such Rental Property, prior to the related Purchase Date, Custodian shall have received the complete,
related Asset File in accordance with the Custodial Agreement and such Asset File shall not have been released from the possession
of the Custodian for longer than the time periods permitted under the Custodial Agreement.

 

(u)Tenant and
Leasing Matters. The REO Subsidiary is the owner and lessor of landlord’s interest in the related Lease Agreement. No
Person has any possessory interest in the Rental Property or right to occupy the same except under and pursuant to the provisions
of the related Lease Agreement. The related Lease Agreement is in full force and effect (other than any Lease Agreement that expires
in accordance with its terms). There are no defaults by the REO Subsidiary or any Tenant under such Lease Agreement, and there
are no conditions that, with the passage of time or the giving of notice, or both, would constitute defaults under such Lease Agreement.
Except as the REO Subsidiary (or Property Manager acting on behalf of the REO Subsidiary) acting in its reasonable business judgment
may otherwise determine, the REO Subsidiary has not waived any material default, breach, violation or event of acceleration by
the related Tenant existing under such Lease Agreement related to such Rental Property. All work to be performed by the REO Subsidiary
under such Lease Agreement has been performed as required, and the REO Subsidiary has not been notified in writing that the applicable
Tenant under such Lease Agreement has not accepted or has contested the completion of such work, and any payments, free rent, partial
rent, rebate of rent or other payments, credits, allowances or abatements required to be given by the REO Subsidiary to the related
Tenant have already been received by such Tenant. The related Tenant under such Lease Agreement does not have a right or option
pursuant to such Lease Agreement or otherwise to purchase all or any part of the leased premises or the building of which the leased
premises are a part. The Lease Agreement is terminable upon the occurrence of a material default by the related Tenant after the
expiration of any notice period required by applicable Requirements of Law. The rent amount and Tenant name indicated on the related
Lease Agreement match the rent amount and Tenant name on the rent roll report provided to Buyer with respect to such Rental Property.

 

 

    	 	Schedule 1 Part 6 - 4 	 

     

    

 

(v)Utilities and
Public Access. The Rental Property has rights of access to public ways and is served by public water, sewer, sanitary sewer
and storm drain facilities adequate to manage the Rental Property for its intended uses. All public utilities necessary or convenient
to the full use and enjoyment of the Rental Property are located either in the public right-of-way abutting the Rental Property
or in recorded easements serving the Rental Property and such easements are set forth in and insured by the ALTA owner’s
title insurance policy. All roads necessary for the use of the Rental Property for its current purpose have been completed, are
physically open and are dedicated to public use.

 

(w)Separate Lots.
The Rental Property is comprised of one (1) or more parcels which constitute a separate tax lot or lots and does not constitute
a portion of any other tax lot not a part of the Rental Property.

 

(x)Certificate
of Occupancy; Licenses. All certifications, permits, licenses and approvals, including without limitation, certificates of
completion and occupancy permits required for the legal use, occupancy and operation of the Rental Property by the REO Subsidiary
as a residential rental property, have been obtained and are in full force and effect and are not subject to revocation, suspension
or forfeiture. The use being made of the Rental Property is in conformity with the certificate of occupancy issued for the Rental
Property, if a certificate of occupancy is required by law.

 

(y)Boundaries.
All of the improvements which were included in determining the appraised value of the Rental Property lie wholly within the boundaries
and building restriction lines of the Rental Property and comply in all material respects with all applicable zoning laws and ordinances
(except to the extent that they may constitute legal non-conforming uses), and no improvements on adjoining properties encroach
upon the Rental Property, and no easements or other encumbrances upon the Rental Property encroach upon any of the Improvements
except those that do not materially or adversely affect the value or current use of the Rental Property.

 

(z)Illegal Activity.
No portion of the Rental Property has been or will be purchased with proceeds of any illegal activity and there are no illegal
activities or activities relating to any controlled substances at the Rental Property.

 

(aa)No Ground
Leases. No Rental Property is subject to a ground lease.

 

(bb)No Defenses
or Counterclaims. Each eviction proceeding, if any, relating to the Rental Property has been properly commenced and there is
no valid defense or counterclaim by anyone with respect thereto.

 

(cc)Management.
The Rental Property has been and is currently being managed and maintained by the Property Manager in compliance in all material
respects with all applicable laws and regulations and Accepted Property Management Practices.

 

(dd)Management
and Other Contracts. There are no management, service, supply, security, maintenance or other similar contracts or agreements
with respect to the Rental Property which are not terminable at will or on notice of no greater than thirty (30) calendar days.

 

    	 	Schedule 1 Part 6 - 5 	 

     

    

(ee)No Set-off;
No Pledge. No Rental Property is or has been the subject of any compromise, adjustment, extension, satisfaction, subordination,
rescission, setoff, counterclaim, defense, abatement, suspension, deferment, deduction, reduction, termination or modification,
whether arising out of transactions concerning such Rental Property or otherwise, by the REO Subsidiary, any transferor thereof
or other Person, except, in each case, as set forth in the SFR Property Documents delivered to Buyer. None of the SFR Property
Documents in respect of any Rental Property has any marks or notations indicating that it has been sold, assigned, pledged, encumbered
or otherwise conveyed to any Person other than the REO Subsidiary or Buyer.

 

(ff)Delivery of
BPO. With respect to each Rental Property, the REO Subsidiary has delivered to Buyer a true and complete copy of an internal
BPO for such Rental Property dated no more than sixty (60) days prior to the requested Purchase Date.

 

(gg)Leasing Criteria.
Each Lease Agreement exceeds or meets the Leasing Criteria (including all supplements or amendments thereto) previously provided
to and approved by Buyer.]

 

(hh)Tenant Underwriting
Criteria. Each Tenant exceeds or meets the Tenant Underwriting Criteria (including all supplements or amendments thereto) previously
provided to and approved by Buyer.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	Schedule 1 Part 6 - 6 	 

     

    

SCHEDULE 2

 

AUTHORIZED REPRESENTATIVES

 

 

 

SELLER PARTIES AUTHORIZATIONS

 

Any of the persons whose signatures and
titles appear below are authorized, acting singly, to act for Seller Parties under this Agreement:

 

Authorized Representatives for execution
of Program Agreements and amendments

 

	Name	 	Title	 	Signature

 

 

 

 

 

 

 

 

 

 

Authorized Representatives for execution
of Transaction Requests and day-to-day operational functions

 

	Name	 	Title	 	Signature

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	Schedule 2 - 1 	 

     

    

BUYER
AUTHORIZATIONS

 

Any of the persons whose signatures and
titles appear below, including any other authorized officers, are authorized, acting singly, to act for Buyer under this Agreement:

 

 

 

	
        Name

         
	
        Title

         
	
        Signature

         

	Adam Loskove	Vice President	 
	Margaret Dellafera	Vice President	 
	Elie Chau	Vice President	 
	Patrick Gallagher	Vice President	 
	Deirdre Harrington	Vice President	 
	Robert Durden	Vice President	 
	Ron Tarantino	Vice President	 
	Michael Marra	Vice President	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	Schedule 2 - 2 	 

     

    

EXHIBIT A

 

FORM OF TENANT INSTRUCTION NOTICE

 

 

 

[insert DATE]

 

VIA CERTIFIED OR REGISTERED MAIL, 

RETURN RECEIPT REQUESTED

 

 

[TENANT NAME

ADDRESS]

 

 

Re:[insert ADDRESS] (“Property”)

 

 

Dear ______________:

 

 

This is to notify you that [______________],
the manager and landlord on your lease has transferred its rights to manage the Property described above and in connection therewith
has assigned its interest as landlord under your lease agreement to [NAME OF NEW MANAGER, ADDRESS, PHONE NUMBER AND CONTACT
NAME].

 

You are further notified that any refundable
security deposits or any prepaid rents under your lease have been transferred to [NAME OF NEW MANAGER].

 

Commencing as of the date of this notice,
all rental payments under your lease should be paid to [NAME OF NEW MANAGER] in accordance with the delivery instructions
below or as [NAME OF NEW MANAGER] may otherwise direct. We appreciate your prompt cooperation with these new instructions.

 

If you pay your rent by mailing a check,
the address to which your rent checks should be sent is as follows:

 

[P.O. BOX ADDRESS]

[                     
]

[                     ] 

 

 

If you pay your rent by hand-delivering
a check, the address to which your rent checks should be delivered is as follows:

 

 

    	 	Exhibit A- 1 	 

     

    

 

[STREET ADDRESS]

 

 

If you pay your rent by wire transfer,
ACH withdrawal, direct debit or over the internet, no changes to where your rental payments are made to or drawn from are required.

 

 

Any written notices you desire or are required
to make to the landlord under your lease should hereafter be sent to _________________________ at the address listed in
the first paragraph above.

 

 

[Signature Page Follows]

 

 

 

 

 

 

 

    	 	Exhibit A- 2 	 

     

    

 

 

	 	 Sincerely,

 

 

[___________________],

 

 

By: _______________________

Name:

Title:

 

 

 

 

 

 

 

 

 

 

    	 	Exhibit A- 3 	 

     

    

EXHIBIT B

 

FORM OF PROPERTY MANAGER REPORT

 

[SELLERS TO PROVIDE]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	Exhibit B- 1 	 

     

    

EXHIBIT C

 

 

 

FORM OF PROPERTY MANAGEMENT AGREEMENT SIDE
LETTER

 

[Date]

 

[________________], as Property Manager

[ADDRESS]

Attention: ___________

 

		Re:	Amended and Restated Master Repurchase Agreement, dated as of March 31, 2016 (the “Repurchase
Agreement”), by and among PennyMac Corp., PennyMac Holdings, LLC and PennyMac Operating Partnership, L.P. (the “Sellers”),
PMC REO Financing Trust (the “REO Subsidiary” and, together with Sellers, the “Seller Parties”),
PennyMac Mortgage Investment Trust and PennyMac Operating Partnership, L.P. (the “Guarantors”) and Credit Suisse
First Boston Mortgage Capital LLC (the “Buyer”).

 

Ladies and Gentlemen:

 

[___________________]
(the “Property Manager”) is managing certain real estate owned properties for REO Subsidiary pursuant to that
certain Property Management Agreement between the Property Manager and REO Subsidiary. Pursuant to the Repurchase Agreement among
Buyer, Seller Parties, and Guarantors, the Property Manager is hereby notified that REO Subsidiary and any subsequent REO Subsidiary
that executes a joinder agreement to the Repurchase Agreement, has pledged to Buyer certain real estate owned properties which
are managed by Property Manager which are subject to a security interest in favor of Buyer.

 

Upon receipt of a Notice
of Event of Default from Buyer (“Notice of Event of Default”) in which Buyer shall identify the real estate
owned properties which are then pledged to Buyer under the Repurchase Agreement (the “REO Properties”), the
Property Manager shall segregate all amounts collected on account of such REO Properties, hold them in trust for the sole and exclusive
benefit of Buyer, and remit such collections in accordance with Buyer’s written instructions. Following such Notice of Event
of Default, Property Manager shall follow the instructions of Buyer with respect to the REO Properties, and shall deliver to Buyer
any information with respect to the REO Properties reasonably requested by Buyer.

 

Notwithstanding any
contrary information which may be delivered to the REO Properties by REO Subsidiary, the Property Manager may conclusively rely
on any information or Notice of Event of Default delivered by Buyer, and REO Subsidiary shall indemnify and hold the Property Manager
harmless for any and all claims asserted against it for any actions taken in good faith by the Property Manager in connection with
the delivery of such information or Notice of Event of Default.

 

    	 	Exhibit C- 1 	 

     

    

 

Please acknowledge
receipt of this instruction letter by signing in the signature block below and forwarding an executed copy to Buyer promptly upon
receipt. Any notices to Buyer should be delivered to the following addresses: Eleven Madison Avenue, New York, New York 10010;
Attention: Margaret Dellafera; Telephone: 212-325-6471.

 

Very truly yours,

[__________________]

 

By:____________________

Name:

Title:

 

[___________________]

 

By:____________________

Name:

Title:

 

ACKNOWLEDGED:

 

[____________________]

as Property Manager

 

By:____________________

Name:

Title:

 

 

 

Credit Suisse First Boston Mortgage Capital
LLC

 

By:____________________

Name:

Title:

 

 

 

 

 

    	 	Exhibit C- 2 	 

     

    

EXHIBIT D

 

POWER OF ATTORNEY

 

Credit Suisse First Boston Mortgage Capital LLC

c/o Credit Suisse Securities (USA) LLC

Eleven Madison Avenue, 4th Floor

Attention: Margaret Dellafera

Fax Number: 212-743-4810

 

 

Re:Amended and Restated
Master Repurchase Agreement, dated as of ____________ __, 2016 (as amended, restated, supplemented or otherwise modified from time
to time, the “Agreement”) among PennyMac Corp., PennyMac Holdings, LLC, PennyMac
Operating Partnership, L.P., PMC REO Financing Trust, PennyMac Mortgage Investment Trust, and Credit Suisse First Boston
Mortgage Capital LLC

 

Ladies and Gentlemen:

 

KNOW ALL MEN BY THESE
PRESENTS, that [PennyMac Corp.][PennyMac Holdings, LLC][PennyMac Operating Partnership, L.P.] [PMC REO Financing Trust] (“Seller
Party”) hereby irrevocably constitutes and appoints Credit Suisse First Boston Mortgage Capital LLC (“Buyer”)
and any officer or agent thereof, with full power of substitution, as its true and lawful attorney-in-fact with full irrevocable
power and authority in the place and stead of Seller and in the name of Seller or in its own name, from time to time in Buyer’s
discretion:

 

		a.	in the name of Seller Party, or in its own name, or otherwise, to take possession of and endorse
and collect any checks, drafts, notes, acceptances or other instruments for the payment of moneys due with respect to any assets
purchased by Buyer (the “Assets”) from Seller Party and to file any claim or to take any other action or proceeding
in any court of law or equity or otherwise deemed appropriate by Buyer for the purpose of collecting any and all such moneys due
with respect to the Obligations;

 

		b.	to pay or discharge taxes and liens levied or placed on or threatened against the Assets;

 

		c.	(i) to direct any party liable for any payment under any Assets, including without limitation,
any Underlying Repurchase Counterparty under any Underlying Repurchase Document, to make payment of any and all moneys due or to
become due thereunder directly to Buyer or as Buyer shall direct; (ii) to ask or demand for, collect, receive payment of and
receipt for, any and all moneys, claims and other amounts due or to become due at any time in respect of or arising out of any
Assets including without limitation, from any Underlying Repurchase Counterparty under any Underlying Repurchase Document; (iii) to
sign and endorse any invoices, assignments, verifications, notices and other documents in connection with any Assets including
without limitation, with respect to any Underlying Repurchase Counterparty under any Underlying Repurchase Document; (iv) to
commence and prosecute any suits, actions or proceedings at law or in equity in any court of competent jurisdiction to collect
the Assets or any proceeds thereof and to enforce any other right in respect of any Assets including without limitation, any Underlying
Repurchase Document; (v) to defend any suit, action or proceeding brought against Seller Party with respect to any Assets,
(vi) to settle, compromise or adjust any suit, action or proceeding described in clause (vii) above and, in connection
therewith, to give such discharges or releases as Buyer may deem appropriate; and (viii) generally, to sell, transfer, pledge
and make any agreement with respect to or otherwise deal with any Assets as fully and completely as though Buyer were the absolute
owner thereof for all purposes, and to do, at Buyer’s option and Seller Party’s expense, at any time, and from time
to time, all acts and things which Buyer deems necessary to protect, preserve or realize upon the Assets and Buyer’s Liens
thereon and to effect the intent of this Agreement, all as fully and effectively as Seller Party might do, including without limitation,
in each case, with respect to any Underlying Repurchase Counterparty and any Underlying Repurchase Document;

 

    	 	Exhibit D- 1 	 

     

    

 

		d.	for the purpose of carrying out the transfer of servicing with respect to the Assets including
without limitation, directing any Underlying Repurchase Counterparty under any Underlying Repurchase Document, from Seller Party
or any third party to a successor servicer appointed by Buyer in its sole discretion and to take any and all appropriate action
and to execute any and all documents and instruments which may be necessary or desirable to accomplish such transfer of servicing,
and, without limiting the generality of the foregoing, Seller Party hereby gives Buyer the power and right, on behalf of Seller
Party, without assent by Seller Party, to, in the name of Seller Party or its own name, or otherwise, prepare and send or cause
to be sent “good-bye” letters to all mortgagors under the Assets, transferring the servicing of the Assets to a successor
servicer appointed by Buyer in its sole discretion;

 

		e.	for the purpose of delivering any notices of sale including without limitation, on behalf of any
Underlying Repurchase Counterparty under any Underlying Repurchase Document, to mortgagors or other third parties, including without
limitation, those required by law.

 

		f.	For the purpose of acting as attorney-in-fact for any Underlying Repurchase Counterparty pursuant
to any power of attorney granted to Seller Party by such Underlying Repurchase Counterparty.

 

Seller Party hereby
ratifies all that said attorneys shall lawfully do or cause to be done by virtue hereof. This power of attorney is a power coupled
with an interest and shall be irrevocable.

 

Any capitalized term
used but not defined herein shall have the meaning assigned to such term in the Agreement.

 

Seller Party also authorizes
Buyer, from time to time, to execute, in connection with any sale, any endorsements, assignments or other instruments of conveyance
or transfer with respect to the Assets.

 

    	 	Exhibit D- 2 	 

     

    

 

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

 

TO INDUCE ANY THIRD
PARTY TO ACT HEREUNDER, SELLER PARTY HEREBY AGREES THAT ANY THIRD PARTY RECEIVING A DULY EXECUTED COPY OR FACSIMILE OF THIS INSTRUMENT
MAY ACT HEREUNDER, AND THAT REVOCATION OR TERMINATION HEREOF SHALL BE INEFFECTIVE AS TO SUCH THIRD PARTY UNLESS AND UNTIL ACTUAL
NOTICE OR KNOWLEDGE OF SUCH REVOCATION OR TERMINATION SHALL HAVE BEEN RECEIVED BY SUCH THIRD PARTY, AND BUYER ON ITS OWN BEHALF
AND ON BEHALF OF BUYER’S ASSIGNS, HEREBY AGREES TO INDEMNIFY AND HOLD HARMLESS ANY SUCH THIRD PARTY FROM AND AGAINST ANY
AND ALL CLAIMS THAT MAY ARISE AGAINST SUCH THIRD PARTY BY REASON OF SUCH THIRD PARTY HAVING RELIED ON THE PROVISIONS OF THIS INSTRUMENT.

 

 

 

[REMAINDER OF PAGE INTENTIONALLY BLANK.
SIGNATURES FOLLOW.]

 

 

 

 

 

    	 	Exhibit D- 3 	 

     

    

IN
WITNESS WHEREOF Seller Party has caused this Power of Attorney
to be executed and Seller Party’s seal to be affixed this
___ day of _________, 2016.

 

 

 

	 	 [PennyMac Corp.][PennyMac
Holdings, LLC][PennyMac Operating Partnership, L.P.] [PMC REO Financing Trust]

 

By:   _______________________________

         Name:

         Title:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	Exhibit D- 4 	 

     

    

 

	A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

 

 

 

STATE OF CALIFORNIA

COUNTY OF ______________

 

 

On ______________________, 20__, before
me, ____________________________, a Notary Public, personally appeared ______________________________________, who proved to me
on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged
to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

 

I certify under PENALTY OF PERJURY under the laws of the State
of California that the foregoing paragraph is true and correct.

 

WITNESS my hand and official seal.

 

Signature ________________________________

 

(Seal)

 

 

 

 

 

    	 	Exhibit D- 5 	 

     

    

EXHIBIT E-1

 

FORM OF SERVICER POWER OF ATTORNEY

 

KNOW ALL MEN BY THESE
PRESENTS, that PennyMac Loan Services, LLC (the “Servicer”) hereby irrevocably constitutes and appoints Credit
Suisse First Boston Mortgage Capital LLC (“Buyer”) and any officer or agent thereof, with full power of substitution,
as its true and lawful attorney-in-fact with full irrevocable power and authority in the place and stead of Servicer and in the
name of Servicer or in its own name, from time to time in Buyer’s discretion:

 

(a)in the name of
Servicer, or in its own name, or otherwise, to take possession of and endorse and collect any checks, drafts, notes, acceptances
or other instruments for the payment of moneys due with respect to any assets purchased by Buyer under the Amended and Restated
Master Repurchase Agreement (as amended, restated or modified, “the Agreement”) dated March 31, 2016 among Buyer,
PennyMac Corp. (“PennyMac Corp.”), PennyMac Operating Partnership, L.P. (“POP”), PennyMac
Holdings, LLC (a “Seller,” together with PennyMac Corp. and POP, the “Sellers”), PMC REO
Financing Trust, and PennyMac Mortgage Investment Trust or owned by the subsidiary of any Seller subject to the Agreement (the
“Assets”) and to file any claim or to take any other action or proceeding in any court of law or equity or otherwise
deemed appropriate by Buyer for the purpose of collecting any and all such moneys due with respect to any other assets whenever
payable;

 

(b)to pay or discharge
taxes and liens levied or placed on or threatened against the Assets;

 

(c)(i) to direct
any party liable for any payment under any Assets to make payment of any and all moneys due or to become due thereunder directly
to Buyer or as Buyer shall direct; (ii) to ask or demand for, collect, receive payment of and receipt for, any and all moneys,
claims and other amounts due or to become due at any time in respect of or arising out of any Assets; (iii) to sign and endorse
any invoices, assignments, verifications, notices and other documents in connection with any Assets; (iv) to commence and prosecute
any suits, actions or proceedings at law or in equity in any court of competent jurisdiction to collect the Assets or any proceeds
thereof and to enforce any other right in respect of any Assets; (v) to defend any suit, action or proceeding brought against Servicer
with respect to any Assets; (vi) to settle, compromise or adjust any suit, action or proceeding described in clause (vii) above
and, in connection therewith, to give such discharges or releases as Buyer may deem appropriate; and (viii) generally, to sell,
transfer, pledge and make any agreement with respect to or otherwise deal with any Assets as fully and completely as though Buyer
were the absolute owner thereof for all purposes, and to do, at Buyer’s option and Servicer’s expense, at any time,
and from time to time, all acts and things which Buyer deems necessary to protect, preserve or realize upon the Assets and to effect
the intent of this Agreement, all as fully and effectively as Servicer might do;

 

(d)for the purpose
of carrying out the transfer of servicing with respect to the Assets from the Servicer to a successor servicer appointed by Buyer
in its sole discretion and to take any and all appropriate action and to execute any and all documents and instruments which may
be necessary or desirable to accomplish such transfer of servicing, and, without limiting the generality of the foregoing, Servicer
hereby gives Buyer the power and right, on behalf of such Servicer, without assent by Servicer, to, in the name of Servicer or
its own name, or otherwise, prepare and send or cause to be sent “good-bye” letters to all mortgagors under the Assets,
transferring the servicing of the Assets to a successor servicer appointed by Buyer in its sole discretion;

 

    	 	Exhibit E-1- 1 	 

     

    

 

(e)for the purpose
of delivering any notices of sale to mortgagors or other third parties, including without limitation, those required by law.

 

(f)for the purpose
of transferring real estate owned property from a Seller’s Subsidiary by execution and delivery of a deed.

 

Servicer hereby ratifies
all that said attorneys shall lawfully do or cause to be done by virtue hereof. This power of attorney is a power coupled with
an interest and shall be irrevocable.

 

Servicer also authorizes
Buyer, from time to time, to execute, in connection with any sale, any endorsements, assignments or other instruments of conveyance
or transfer with respect to the Assets.

 

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

 

TO INDUCE ANY THIRD PARTY
TO ACT HEREUNDER, Servicer HEREBY AGREES THAT ANY THIRD PARTY RECEIVING A DULY EXECUTED
COPY OR FACSIMILE OF THIS INSTRUMENT MAY ACT HEREUNDER, AND THAT REVOCATION OR TERMINATION HEREOF SHALL BE INEFFECTIVE AS TO SUCH
THIRD PARTY UNLESS AND UNTIL ACTUAL NOTICE OR KNOWLEDGE OF SUCH REVOCATION OR TERMINATION SHALL HAVE BEEN RECEIVED BY SUCH THIRD
PARTY, AND BUYER ON ITS OWN BEHALF AND ON BEHALF OF BUYER’S ASSIGNS, HEREBY AGREES TO INDEMNIFY AND HOLD HARMLESS ANY SUCH
THIRD PARTY FROM AND AGAINST ANY AND ALL CLAIMS THAT MAY ARISE AGAINST SUCH THIRD PARTY BY REASON OF SUCH THIRD PARTY HAVING RELIED
ON THE PROVISIONS OF THIS INSTRUMENT.

 

[REMAINDER OF PAGE INTENTIONALLY
BLANK. SIGNATURES FOLLOW.]

 

 

 

    	 	Exhibit E-1- 2 	 

     

    

IN WITNESS WHEREOF Servicer
has caused this Power of Attorney to be executed and Servicer’s seal to be affixed this ____ day of _________, 2016.

 

 

 

	 	 PennyMac Loan Services,
LLC

 

 

 

By:   _______________________________

         Name:

         Title:

 

 

 

 

	A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

 

 

STATE OF CALIFORNIA

COUNTY OF ______________

 

On ______________________, 20__, before
me, ____________________________, a Notary Public, personally appeared ______________________________________, who proved to me
on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged
to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

 

I certify under PENALTY OF PERJURY under the laws of the State
of California that the foregoing paragraph is true and correct.

 

 

WITNESS my hand and official seal.

 

Signature ________________________________

 

(Seal)

 

 

 

 

 

    	 	Exhibit E-1- 3 	 

     

    

EXHIBIT E-2

 

 

 

FORM OF REO SUBSIDIARY POWER OF ATTORNEY

 

KNOW ALL MEN BY THESE
PRESENTS, that PMC REO Financing Trust (the “REO Subsidiary”) hereby irrevocably constitutes and appoints Credit
Suisse First Boston Mortgage Capital LLC (“Buyer”) and any officer or agent thereof, with full power of substitution,
as its true and lawful attorney-in-fact with full irrevocable power and authority in the place and stead of REO Subsidiary and
in the name of REO Subsidiary or in its own name, from time to time in Buyer’s discretion:

 

(a)in the name of
REO Subsidiary, or in its own name, or otherwise, to take possession of and endorse and collect any checks, drafts, notes, acceptances
or other instruments for the payment of moneys due with respect to any assets purchased by Buyer under the Amended and Restated
Master Repurchase Agreement (as amended, restated or modified, “the Agreement”) among Buyer, PennyMac Corp.
(“PennyMac Corp.”), PennyMac Operating Partnership, L.P. (“POP”), PennyMac Holdings, LLC
(a “Seller,” together with PennyMac Corp. and POP, the “Sellers”), PMC REO Financing Trust
(the “REO Subsidiary”) and PennyMac Mortgage Investment Trust dated March 31, 2016 or owned by the subsidiary
of REO Subsidiary subject to the Agreement (the “Assets”) and to file any claim or to take any other action
or proceeding in any court of law or equity or otherwise deemed appropriate by Buyer for the purpose of collecting any and all
such moneys due with respect to any other assets whenever payable;

 

(b)to pay or discharge
taxes and liens levied or placed on or threatened against the Assets;

 

(c)(i) to direct
any party liable for any payment under any Assets to make payment of any and all moneys due or to become due thereunder directly
to Buyer or as Buyer shall direct; (ii) to ask or demand for, collect, receive payment of and receipt for, any and all moneys,
claims and other amounts due or to become due at any time in respect of or arising out of any Assets; (iii) to sign and endorse
any invoices, assignments, verifications, notices and other documents in connection with any Assets; (iv) to commence and prosecute
any suits, actions or proceedings at law or in equity in any court of competent jurisdiction to collect the Assets or any proceeds
thereof and to enforce any other right in respect of any Assets; (v) to defend any suit, action or proceeding brought against REO
Subsidiary with respect to any Assets; (vi) to settle, compromise or adjust any suit, action or proceeding described in clause
(vii) above and, in connection therewith, to give such discharges or releases as Buyer may deem appropriate; and (viii) generally,
to sell, transfer, pledge and make any agreement with respect to or otherwise deal with any Assets as fully and completely as though
Buyer were the absolute owner thereof for all purposes, and to do, at Buyer’s option and REO Subsidiary’s expense,
at any time, and from time to time, all acts and things which Buyer deems necessary to protect, preserve or realize upon the Assets
and to effect the intent of this Agreement, all as fully and effectively as REO Subsidiary might do;

 

(d)for the purpose
of carrying out the transfer of servicing with respect to the Assets from the REO Subsidiary to a successor servicer appointed
by Buyer in its sole discretion and to take any and all appropriate action and to execute any and all documents and instruments
which may be necessary or desirable to accomplish such transfer of servicing, and, without limiting the generality of the foregoing,
REO Subsidiary hereby gives Buyer the power and right, on behalf of REO Subsidiary, without assent by REO Subsidiary, to, in the
name of REO Subsidiary or its own name, or otherwise, prepare and send or cause to be sent “good-bye” letters to all
mortgagors under the Assets, transferring the servicing of the Assets to a successor servicer appointed by Buyer in its sole discretion;

 

    	 	Exhibit E-2- 1 	 

     

    

 

(e)for the purpose
of delivering any notices of sale to mortgagors or other third parties, including without limitation, those required by law;

 

(f)for the purpose
of transferring real estate owned property from REO Subsidiary by execution and delivery of a deed;

 

(g)for the purpose
of entering into insurance policies with respect to any Rental Property;

 

(h)for the purpose
of completing and/or filing any assignment of leases and rents; and

 

(i)for the purpose
of eviction or for termination in accordance with the applicable Lease Agreement and renewal of Lease Agreements.

 

REO Subsidiary hereby
ratifies all that said attorneys shall lawfully do or cause to be done by virtue hereof. This power of attorney is a power coupled
with an interest and shall be irrevocable.

 

REO Subsidiary also authorizes
Buyer, from time to time, to execute, in connection with any sale, any endorsements, assignments or other instruments of conveyance
or transfer with respect to the Assets.

 

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

 

TO INDUCE ANY THIRD PARTY
TO ACT HEREUNDER, REO Subsidiary HEREBY AGREES THAT ANY THIRD PARTY RECEIVING A
DULY EXECUTED COPY OR FACSIMILE OF THIS INSTRUMENT MAY ACT HEREUNDER, AND THAT REVOCATION OR TERMINATION HEREOF SHALL BE INEFFECTIVE
AS TO SUCH THIRD PARTY UNLESS AND UNTIL ACTUAL NOTICE OR KNOWLEDGE OF SUCH REVOCATION OR TERMINATION SHALL HAVE BEEN RECEIVED BY
SUCH THIRD PARTY, AND BUYER ON ITS OWN BEHALF AND ON BEHALF OF BUYER’S ASSIGNS, HEREBY AGREES TO INDEMNIFY AND HOLD HARMLESS
ANY SUCH THIRD PARTY FROM AND AGAINST ANY AND ALL CLAIMS THAT MAY ARISE AGAINST SUCH THIRD PARTY BY REASON OF SUCH THIRD PARTY
HAVING RELIED ON THE PROVISIONS OF THIS INSTRUMENT.

 

[REMAINDER OF PAGE INTENTIONALLY
BLANK. SIGNATURES FOLLOW.]

 

    	 	Exhibit E-2- 2 	 

     

    

IN WITNESS WHEREOF REO
Subsidiary has caused this Power of Attorney to be executed and REO Subsidiary’s seal to be affixed this ____ day of _________,
2016.

 

 

 

 

	 	 PMC REO Financing Trust

 

By: PennyMac Corp., as
Administrator

 

 

 

By:   _______________________________

         Name:

         Title:

 

 

 

 

	A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

 

 

 

STATE OF CALIFORNIA

COUNTY OF ______________

 

 

 

On ______________________, 20__, before
me, ____________________________, a Notary Public, personally appeared ______________________________________, who proved to me
on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged
to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

 

I certify under PENALTY OF PERJURY under the laws of the State
of California that the foregoing paragraph is true and correct.

 

 

WITNESS my hand and official seal.

 

Signature ________________________________

 

(Seal)

 

    	 	Exhibit E-2- 3 	 

     

    

EXHIBIT F

 

Reserved.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	Exhibit F- 1 	 

     

    

 

 

EXHIBIT G

 

SELLER PARTIES’
AND GUARANTORS’ TAX IDENTIFICATION NUMBERS

 

 

 

	PennyMac Holdings, LLC	27-2199755
	PennyMac Operating Partnership, L.P.	27-0214441
	PennyMac Corp.	80-0463416
	PennyMac Mortgage Investment Trust	27-0186273
	PMC REO FINANCING TRUST	45-6362117

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	Exhibit G- 1 	 

     

    

EXHIBIT H

 

EXISTING INDEBTEDNESS

 

INDEBTEDNESS AS OF March 28, 2016

 

See Attached.

 

 

 

 

 

 

 

 

 

 

 

 

    	 	Exhibit H- 1 	 

     

    

EXHIBIT I

 

 

 

form
of ESCROW INSTRUCTION letter TO BE PROVIDED BY SELLERS bEFORE CLOSING

 

 

 

The escrow instruction letter (the “Escrow
Instruction Letter”) shall also include the following instruction to the Settlement Agent (the “Escrow Agent”):

 

 

 

Credit Suisse First
Boston Mortgage Capital LLC (the “Buyer”), has agreed to provide funds (“Escrow Funds”) on
behalf of [PennyMac Holdings, LLC][ PennyMac Operating Partnership, L.P.,] to PennyMac Corp. to finance certain mortgage loans
[, REO properties and Rental Properties] (the “[Mortgage Loans][Assets]”)] for which you are acting as
Escrow Agent.

 

 

 

You hereby agree that
(a) you shall receive such Escrow Funds from Buyer to be disbursed in connection with this Escrow Instruction Letter, (b) you will
hold such Escrow Funds in trust, without deduction, set-off or counterclaim for the sole and exclusive benefit of Buyer until such
Escrow Funds are fully disbursed on behalf of Buyer in accordance with the instructions set forth herein, and (c) you will disburse
such Escrow Funds on the date specified for closing (the “Closing Date”) only after you have followed the Escrow
Instruction Letter’s requirements with respect to the Mortgage Loans. In the event that the Escrow Funds cannot be disbursed
on the Closing Date in accordance with the Escrow Instruction Letter, you agree to promptly remit the Escrow Funds to the Custodian
by re-routing via wire transfer the Escrow Funds in immediately available funds, without deduction, set-off or counterclaim, back
to the account specified in Buyer’s incoming wire transfer.

 

You further agree that, upon disbursement
of the Escrow Funds, you will hold all Asset Documents specified in the Escrow Instruction Letter in escrow as agent and bailee
for Buyer, and will forward the Asset Documents and original Escrow Instruction Letter in connection with such Mortgage Loans by
overnight courier (y) to the Custodian within five (5) Business Days following the date of origination.

 

You agree that all
fees, charges and expenses regarding your services to be performed pursuant to the Escrow Instruction Letter are to be paid by
a Seller or its borrowers, and Buyer shall have no liability with respect thereto.

 

You represent,
warrant and covenant that you are not an affiliate of or otherwise controlled by Pennymac Corp. or any affiliate thereof, and
that you are acting as an independent contractor and not as an agent of Pennymac Corp. or any affiliate thereof.

 

The provisions of this
Escrow Instruction Letter may not be modified, amended or altered, except by written instrument, executed by the parties hereto
and Buyer. You understand that Buyer shall act in reliance upon the provisions set forth in this Escrow Instruction Letter, and
that Buyer is an intended third party beneficiary hereof.

 

Whether or not
an Escrow Instruction Letter executed by you is received by the Custodian, your acceptance of the Escrow Funds shall be deemed
to constitute your acceptance of the Escrow Instruction Letter.

 

    	 	Exhibit I- 2 	 

     

    

EXHIBIT J

 

FORM OF SERVICER NOTICE AND PLEDGE

 

[Date]

 

PennyMac Loan Services, LLC, as Servicer

[ADDRESS]

Attention: ___________

 

		Re:	Amended and Restated Master Repurchase Agreement, dated as of March 31, 2016 (the “Repurchase
Agreement”), by and among PennyMac Corp., PennyMac Holdings, LLC and PennyMac Operating Partnership, L.P. (the “Sellers”),
PMC REO Financing Trust (the “REO Subsidiary” and, together with Sellers, the “Seller Parties”),
PennyMac Mortgage Investment Trust and PennyMac Operating Partnership, L.P. (the “Guarantors”) and Credit Suisse
First Boston Mortgage Capital LLC (the “Buyer”).

 

Ladies and Gentlemen:

 

PennyMac Loan Services, LLC (the “Servicer”)
is servicing certain mortgage loans originated by PennyMac Corp. and purchased by Sellers, which mortgage loans are serviced pursuant
to that certain Second Amended and Restated Flow Servicing Agreement, dated as of March 1, 2013, between the Servicer and
PennyMac Operating Partnership, L.P., as amended from time to time. Pursuant to the Repurchase Agreement among Buyer, Seller Parties
and Guarantors, the Servicer is hereby notified that Seller Parties have pledged to Buyer certain mortgage loans which are serviced
by Servicer which are subject to a security interest in favor of Buyer. Capitalized Terms used but not defined herein shall have
the meaning assigned to such term in the Repurchase Agreement.

 

 

 

Section 1. Servicing Rights and Grant
of Security Interest. (a) Buyer and Servicer hereby agree that in order to further secure the Obligations under the Repurchase
Agreement, Servicer hereby grants, assigns and pledges to Buyer a fully perfected first priority security interest in all of its
Servicing Rights related to the Purchased Mortgage Loans and REO Properties and all proceeds related thereto and in all instances,
whether now owned or hereafter acquired, now existing or hereafter created.

 

(b)The foregoing provision is intended
to constitute a security agreement or other arrangement or other credit enhancement related to the Repurchase Agreement and Transactions
thereunder as defined under Sections 101(47)(A)(v) and 741(7)(A)(xi) of the Bankruptcy Code.

 

    	 	Exhibit J- 1 	 

     

    

 

(c)Buyer shall have all rights
and remedies hereunder as are set forth in the Repurchase Agreement.

 

(d)In addition, Servicer hereby
acknowledges that Buyer has purchased the Purchased Mortgage Loans and REO Subsidiary has acquired the REO Properties on a servicing
released basis and Buyer shall have the same rights and remedies with respect to the Servicing Rights as it has with respect to
the Repurchase Assets under the Repurchase Agreement.

 

(e)Servicer further acknowledges
that notwithstanding any prior owner of the Repurchase Assets, or any other agreement between such prior owner and the Servicer,
Buyer’s rights are superior to any other claim by any party and Servicer shall follow the directions of Buyer and no other
party.

 

(f)Servicer agrees
to execute, deliver and/or file such documents and perform such acts as may be reasonably necessary to fully perfect Buyer’s
security interest created hereby. Furthermore, the Servicer hereby authorizes Buyer to file financing statements relating to the
security interest set forth herein, as Buyer, at its option, may deem appropriate.

 

(g)Servicer agrees
to the extent a deed for an REO Property is registered in the name of (a) a Seller, (b) the Servicer or (c) any prior owner or
prior servicer for whom the Servicer is contractually permitted to act, in each case, it shall or shall cause to deliver for recordation
(with a copy to Custodian) a deed in recordable form into the name of REO Subsidiary within the period of time generally necessary
in the applicable jurisdiction for the Servicer, acting in accordance with the Servicing Guidelines.

 

(h)Servicer waives any and all
notice of the creation, renewal, extension or accrual of any of the Obligations under the Repurchase Agreement or security interest
hereunder and notice or proof of reliance by Buyer upon this Servicer Notice and Pledge. Servicer hereby waives diligence, presentment,
protest, demand for payment and notice of default or nonpayment to or upon Sellers or Servicer with respect the Obligations.

 

Section 2.Act as Servicer.
(a) Pursuant to the Servicing Agreement and this Servicer Notice, Servicer will remit (i) all collections on the Mortgage Loans
to the following account:

 

PennyMac Corp. for the benefit of Credit
Suisse First

Boston Mortgage Capital LLC

Depository: City National
Bank

ABA#: 122016066

Account Name: PMC Sellers
Account

Account #: 555-062508

 

PennyMac Corp. for
the benefit of Credit Suisse First

Boston Mortgage Capital
LLC

Depository: City National
Securities, Inc.

ABA#: 122016066

Account Name: PMC Sellers
Account

Account #: TPS000299

 

    	 	Exhibit J- 2 	 

     

    

 

PennyMac Holdings,
LLC for the benefit of Credit Suisse First Boston Mortgage Capital LLC

Depository: City National
Bank

ABA#: 122016066

Account Name: PennyMac
Holdings Sellers Account

Account #: 555-062516

 

PennyMac Holdings,
LLC for the benefit of Credit Suisse First Boston Mortgage Capital LLC

Depository: City National
Securities, Inc.

ABA#: 122016066

Account Name: PennyMac
Holdings Sellers Account

Account #: TPS000280

 

(ii) all collections
on the assets owned by REO Subsidiary to the following account:

 

PMC REO Financing Trust
for the benefit of Credit Suisse

First Boston Mortgage Capital LLC

Depository: City National
Bank

ABA#: 122016066

Account Name: REO Account

Account #:555-063024

 

PMC REO Financing
Trust for the benefit of Credit Suisse

First Boston Mortgage
Capital LLC

Depository: City National
Securities, Inc.

ABA#: 122016066

Account Name: REO Account

Account #: TPS000264

 

 

Servicer’s obligation hereunder to
remit such collections to such account may not be altered, modified, revoked, amended or otherwise changed without the prior written
consent of Buyer or as otherwise provided in this notice.

 

Following receipt of notice of Event of
Default (“Notice of Event of Default”) from Buyer, Servicer shall follow the instructions of Buyer with respect
to the Purchased Mortgage Loans and REO Properties, and shall deliver to Buyer any information with respect to the Purchased Mortgage
Loans and REO Properties reasonably requested by Buyer.

 

(b)To the extent that Servicer
obtains possession of any documents related to the Purchased Mortgage Loans or REO Properties, it will hold such documents in trust
for the benefit of the Buyer.

 

(c)Notwithstanding any contrary
information which may be delivered to the Servicer by Sellers, the Servicer may conclusively rely on any information or Notice
of Event of Default delivered by Buyer, and Seller Parties shall indemnify and hold the Servicer harmless for any and all claims
asserted against it for any actions taken in good faith by the Servicer in connection with the delivery of such information or
Notice of Event of Default.

 

 

    	 	Exhibit J- 3 	 

     

    

 

 

Section 3.Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, and all such counterparts
shall together constitute one and the same instrument.

 

Section 4.Entire Agreement; Severability.
This Agreement shall supersede any existing agreements between the parties containing general terms and conditions for repurchase
transactions. Each provision and agreement herein shall be treated as separate and independent from any other provision or agreement
herein and shall be enforceable notwithstanding the unenforceability of any such other provision or agreement.

 

Section 5.Governing Law; Jurisdiction;
Waiver of Trial by Jury. (a) THIS SERVICER NOTICE AND PLEDGE SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE
LAW OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF.

 

(b)EACH SELLER PARTY AND SERVICER
HEREBY IRREVOCABLY CONSENTS TO THE EXCLUSIVE JURISDICTION OF ANY COURT OF THE STATE OF NEW YORK, OR IN THE UNITED STATES DISTRICT
COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, ARISING OUT OF OR RELATING TO THE PROGRAM AGREEMENTS IN ANY ACTION OR PROCEEDING.
SERVICER HEREBY SUBMITS TO, AND WAIVES ANY OBJECTION THEY MAY HAVE TO, EXCLUSIVE PERSONAL JURISDICTION AND VENUE IN THE COURTS
OF THE STATE OF NEW YORK AND THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, WITH RESPECT TO ANY DISPUTES
ARISING OUT OF OR RELATING TO THE PROGRAM AGREEMENTS.

 

(c)EACH SELLER PARTY AND SERVICER
HEREBY WAIVES TRIAL BY JURY.

 

 

 

[remainder of page intentionally left blank]

 

 

 

    	 	Exhibit J- 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.

 

 

Credit Suisse First
Boston Mortgage Capital LLC, as Buyer

 

By:____________________________________

       Name:

       Title:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	Exhibit J- 5 	 

     

    

PennyMac Loan Services, LLC, as Servicer

 

 

By:____________________________________

       Name:

       Title:

 

 

PennyMac Corp., as a Seller

 

By:____________________________________

       Name:

       Title:

 

PennyMac Holdings, LLC, as a Seller

 

By:____________________________________

       Name:

      Title:

 

 

PennyMac Operating Partnership, L.P.,
as a Seller

 

  By: PennyMac GP OP, Inc., its General Partner

 

By:____________________________________

       Name:

       Title:

 

PMC REO Financing Trust, as REO Subsidiary

 

  By: PennyMac Corp., as Administrator

 

By:____________________________________

       Name:

       Title:

 

 

 

    	 	Exhibit J- 6 	 

     

    

EXHIBIT K

 

 

 

LOAN ACTIVITY REPORT

 

 

 

	
        loanid

        servicernm

        srvloanid

        loanidprevious

        lien

        armorfix

        loantype

        fname

        lname

        staddress

        city

        state

        zip

        proptype

        units

        ownocc

        doctype

        originator

        origdate

        fpdate

        mtdate

        origterm

        amortterm

        origbal

        origrate

        origpandi

        schedrterm

        ramortterm

        curbal 

        rate

        pandi

        piti

        firstmtgbal

        secmtgbal

        secmtgcd

        modified

        modtype

        moddate

        lossmittype

        bkflag

        bkfiledate

        bkchapter

        fcflag

        fcstart

        fclstatus

        fcjudgedt
	
        fcnotsdate

        fcsaledate

        fcjudicial

        balloon

        paid2date

        escflag

        escadvbal

        escrowbal

        corpadvbal

        suspense

        fpadate

        fradate

        npadate

        nradate

        indexcd

        margin

        pfreq

        rfreq

        perfloor

        percap

        initfloor

        initcap

        lifefloor

        lifecap

        teaser

        pmipct

        mitype

        pmico

        appval

        ltv

        cltv

        appform

        curfico

        curficodt

        curficometh

        frontendratio

        backendratio

        delqstring

        paystatmba

        nextpmtduedt

        cash1

        reoflag

        dpbal

        uncollectedextendedbalanceflag

        pppflag

        pppterm
	
        pppdesc

        inttype

        negamflag

        negampct

        pmtadjcap

        pmtrecast

        recastdt

        dualam

        ioflag

        ioterm

        nxtduedate

        pifflag

        datadate

        BPO-QSV

        BPO-FMV

        BPO-Date

        HAMP Rewards

        SERVICE_FEE

        DIL Charge

        Loan Sales Charge

        Liquidation Charge

        Loan Boarding Charge 

        Modification Charge

        ModificationProgram

        FirstNewPaymentDate

        NewMaturityDate

        NewAmortizationTerm

        NewInterestRate

        NewUPB

        NewPILoanAmount

        ForbearedAmount

        NewPI

        CapitalizationAmount

 

    	 	Exhibit K- 1 	 

     

    

 

 

EXHIBIT L

 

FORM OF TRADE ASSIGNMENT

 

 

[NAME] (“Takeout Investor”)

[Address]

[Address]

Attention: [__]

[DATE]

Ladies and Gentlemen:

 

Attached hereto is a correct
and complete copy of your confirmation of commitment (the “Commitment”) for the following security (the “Security”):

 

	Trade Date:  	[__]
	Settlement Date:  	[__]
	Security Description:	[__]
	Coupon:	[__]
	Price:	[__]
	Par Amount:	[__]
	Pool Number:	[__]

 

The undersigned customer
(the “Customer”) has assigned the Security to Credit Suisse First Boston Mortgage Capital LLC (“Credit
Suisse”) as security for certain obligations under the Amended and Restated Master Repurchase Agreement dated as of March
31, 2016 as amended (the “Agreement”), by and among Customer or its affiliate, PennyMac Corp., PennyMac Holdings,
LLC (“PennyMac Holdings”) or PennyMac Operating Partnership, L.P., (“POP”), PMC REO Financing
Trust and Credit Suisse.

 

This is to confirm that
(i) Takeout Investor’s obligation to purchase the Security on the above terms in accordance with the Commitment is in full
force and effect, (ii) Takeout Investor will accept delivery of the Security directly from Credit Suisse, (iii) Takeout Investor
will pay Credit Suisse for the Security, (iv) Customer and PennyMac Holdings and POP unconditionally guarantees payment to Credit
Suisse of all sums due under the Commitment, (v) Credit Suisse shall deliver the Security to Takeout Investor on the above terms
and in accordance with the Commitment. Payment will be made “delivery versus payment” to Takeout Investor in immediately
available funds. Capitalized terms used, but not otherwise defined herein, shall have the respective meanings assigned to such
terms in the Agreement.

 

	
        Very truly yours,

         

        PennyMac Corp.

         

        By:__________

        Name:__________

        Title: __________

         
	
        Agreed to, confirmed and accepted:

         

        [TAKEOUT INVESTOR]

         

        By:__________

        Name:__________

        Title:__________

         

	
         

        PennyMac Holdings, LLC

         

        By:__________

        Name:__________

        Title: __________

         
	
         

         

         

	
         

        PennyMac Operating Partnership, L.P.

         

        By:__________

        Name:__________

        Title:__________
	 

 

 

    	 	Exhibit L- 1 	 

     

    

EXHIBIT M

 

STATE SPECIFIC FORECLOSURE AGING TIMELINE

 

	 	State Specific Foreclosure Aging Timeline
	State	 
	NY	689
	VT	677
	ME	649
	NJ	859
	IL	483
	PA	465
	FL	653
	NM	369
	MA	370
	CA	313
	AK	192
	MD	318
	CT	447
	WI	388
	IN	451
	NV	270
	SC	354
	KY	305
	LA	423
	UT	209
	OK	329
	CO	226
	NC	194
	NE	291
	IA	384
	AZ	212
	SD	438
	OH	432
	DE	431
	AL	135
	WY	147
	MT	263
	VA	136
	KS	260
	WA	277
	MO	153
	ID	307
	TN	192
	HI	387
	OR	290
	TX	169
	AR	186
	MI	224
	GA	182
	WV	221
	RI	281
	NH	259
	MN	259
	MS	304
	DC	360
	ND	419

 

    	 	Exhibit M- 1 	 

     

    

EXHIBIT N

STATE SPECIFIC
REO DISPOSITION TIMELINE

 

	 	State Specific REO Disposition Timeline
	State	 
	NY	403
	VT	285
	ME	306
	NJ	409
	IL	379
	PA	325
	FL	263
	NM	353
	MA	407
	CA	325
	AK	263
	MD	421
	CT	342
	WI	306
	IN	254
	NV	282
	SC	288
	KY	305
	LA	288
	UT	185
	OK	188
	CO	217
	NC	311
	NE	223
	IA	236
	AZ	218
	SD	400
	OH	265
	DE	275
	AL	301
	WY	470
	MT	339
	VA	289
	KS	323
	WA	240
	MO	209
	ID	229
	TN	258
	HI	301
	OR	253
	TX	236
	AR	230
	MI	380
	GA	320
	WV	319
	RI	378
	NH	371
	MN	379
	MS	315
	DC	762
	ND	382

 

    	 	Exhibit N- 1 	 

     

    

 

  EXHIBIT O

STATE SPECIFIC
REO RECORDING TIMELINE

 

 

	 	State Specific REO Recording Timeline - REO Deed Out For Recording	 	State Specific REO Recording Timeline - REO Deed Back From Recording
	State	 	 	 
	NY	92	 	162
	VT	82	 	142
	ME	117	 	212
	NJ	77	 	132
	IL	112	 	202
	PA	77	 	132
	FL	57	 	92
	NM	57	 	92
	MA	60	 	90
	CA	42	 	62
	AK	42	 	62
	MD	237	 	452
	CT	87	 	152
	WI	62	 	102
	IN	57	 	92
	NV	42	 	62
	SC	72	 	122
	KY	132	 	242
	LA	67	 	112
	UT	37	 	52
	OK	62	 	102
	CO	67	 	112
	NC	60	 	90
	NE	127	 	232
	IA	47	 	72
	AZ	37	 	52
	SD	222	 	422
	OH	142	 	262
	DE	107	 	192
	AL	67	 	112
	WY	177	 	332
	MT	37	 	52
	VA	82	 	142
	KS	147	 	272
	WA	42	 	62
	MO	37	 	52
	ID	37	 	52
	TN	37	 	52
	HI	117	 	212
	OR	37	 	52
	TX	37	 	52
	AR	60	 	90
	MI	37	 	52
	GA	60	 	90
	WV	52	 	82
	RI	67	 	112
	NH	82	 	142
	MN	37	 	52
	MS	37	 	52
	DC	122	 	222
	ND	132	 	242

 

 

 

    	 	Exhibit O- 1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}]]