Document:

Exhibit 10.9

 

CORRESPONDENT 

AGREEMENT

FORM 200 

 

This Correspondent Loan Purchase Agreement (“Agreement”), dated the 26th
day of April, 2004, by and between CitiMortgage, Inc. (“CMI”), for
itself and on behalf of Citibank, FSB, Citibank (West), FSB, and Citibank,
N.A., and;

 

	
  HOME LOAN CENTER, INC (“Correspondent”).

  

 

In
consideration of the terms contained in this Agreement, CMI and Correspondent
agree as follows:

 

1.     PURCHASE AND SALE OF MORTGAGE LOANS

 

From
time to time, Correspondent may sell to CMI and CMI may purchase from
Correspondent one or more residential mortgage, home equity or other loans (“Loan(s)”)
in accordance with the terms, conditions, requirements, procedures,
representations and warranties set forth in the “CitiMortgage, Inc.
Correspondent Manual” and all amendments, bulletins, program requirements and supplements
to such Manual (collectively hereinafter referred to as the “CMI Manual”), and
this Agreement. CMI and Correspondent agree that the CMI Manual is incorporated
by reference herein and is part of this Agreement. Further, CMI and
Correspondent agree that Citibank, FSB; Citibank (West), FSB; and Citibank,
N.A. are intended third party beneficiaries of this Agreement.

 

For
each Loan offered for sale by Correspondent to CMI, Correspondent will deliver
Loan documentation to CMI in accordance with the applicable terms, conditions,
requirements, procedures, representations and warranties set forth in the CMI
Manual. CMI may purchase Loans with or without conducting a complete review of the
Loan documentation. CMI’s review of, or failure to review, all or any portion
of the Loan documentation shall not affect CMI’s rights to demand repurchase of
a Loan or any other CMI right or remedy provided by this Agreement.

 

For
each Loan CMI agrees to purchase, CMI shall pay the amount agreed upon by CMI
and Correspondent (“Purchase Price”) in accordance with the applicable
provisions of the CMI Manual. CMI may offset against the Purchase Price any
outstanding fees or other amounts owing from Correspondent to CMI in connection
with the particular purchase or other transactions.

 

As
of the date CMI purchases each Loan, Correspondent will (i) transfer to
CMI all of its right, title and interest in and to each Loan, including without
limitation all documents held or subsequently acquired by Correspondent
relating to each Loan and (ii) execute all documents necessary to transfer
such right, title and interest to CMI.

 

2.     REPRESENTATIONS AND
WARRANTIES

 

Correspondent
represents, warrants and
covenants throughout the term of this Agreement as follows:

 

(a)   That it is duly organized, validly existing, in good standing, qualified
and authorized to do business in each jurisdiction where it originate Loans or
where a property securing any of its Loans is located; that all corporate or
other actions and approvals necessary for the execution and performance of this
Agreement have been taken and/or received; and that no consent from any third
party is required for the execution and performance of this Agreement.

 

(b)   That it (i) holds and
shall maintain in good standing throughout the term of this Agreement all
applicable license(s) and/or registration(s) in each jurisdiction
that is/are necessary for Correspondent’s Loan origination, purchase and sale activities under this Agreement and (ii) is
in full compliance with all laws in each jurisdiction which govern
Correspondent’s activities under this Agreement. Correspondent agrees to
promptly provide CMI with copies of all such license(s) and/or
registration(s) upon request by CMI.

 

(c)   That it will allow CMI to periodically investigate the financial
(including but not limited to obtaining corporate and/or individual credit
reports) and other status of Correspondent and, if necessary, the financial and
other status of Correspondent’s directors, officers and/or employees. If
necessary, Correspondent shall cooperate with CMI to obtain the written consent
of one or more of Correspondent’s directors, officers and/or employees to such
periodic investigation. Correspondent agrees that the failure to obtain such
consent may result in the termination of this Agreement in accordance with the
provisions of Sec. 7.

 

1

 

(d)   That it is thoroughly familiar with and will comply with all applicable
federal (including but not limited to the Real Estate Settlement Procedures
Act, Truth-In-Lending Act, Equal Credit Opportunity Act and federal fair
lending laws), state and, if necessary, local laws and regulations directly or
indirectly relating to its activities under this Agreement (including but not
limited to involvement in such activities of individuals convicted of crimes
involving dishonesty or breach of trust).

 

(e)   That Correspondent is an approved seller/servicer of conventional
residential adjustable and fixed-rate mortgage Loans for Fannie Mae, Freddie
Mac, and/or is a FHA-, VA- and/or HUD- approved mortgagee; that Correspondent
is duly qualified, licensed, registered and otherwise authorized under all
applicable laws and regulations and is in good standing to (i) originate,
sell, endorse and assign Loans and, if applicable, the related Loan collateral
to CMI, (ii) service Loans in the jurisdiction(s) where, if
applicable, the properties securing such Loans are located for Fannie Mae, Freddie
Mac, FHA or VA, and (iii) no event has occurred that would make
Correspondent unable to comply with Fannie Mae, Freddie Mac, FHA, VA or HUD
eligibility requirements or that would require notification to Fannie Mae,
Freddie Mac, FHA or VA or HUD.

 

(f)    That it does not believe, nor does it have any reason or cause to
believe, it cannot perform every covenant contained in this Agreement or
continue to carry on its business substantially as now conducted; that it is
solvent and the sale of Loans will not cause it to become insolvent; that no
action, suit, proceeding or investigation pending or threatened against
Correspondent, either alone or in the aggregate, may result in its inability to
carry on its business substantially as now conducted; and that the sale of
Loans under this Agreement is not undertaken with the intent to hinder, delay
or defraud any of its creditors.

 

(g)   That it has obtained and reviewed or will, upon execution of this
Agreement, promptly obtain and review the CMI Manual and will fully comply with
its terms, conditions, requirements and procedures.

 

(h)   That it does not currently and will not in the future employ any entity
or individual on the Freddie Mac exclusionary list.

 

(i)    That neither this Agreement nor any statement, report or other
information provided or to be provided pursuant to this Agreement (including
but not limited to the statements and information contained in the
documentation for each Loan purchased by CMI) contains or will contain any
misrepresentation or untrue statement of fact or omits or will omit to state a
fact necessary to make the information not misleading. The provisions of this
sub-section shall not apply to information obtained from (i) appraisers,
escrow agents, title companies, closers, credit reporting agencies or any other
entity approved by CMI (“Approved Entity”) unless Correspondent knows or has
reason to believe that any information provided by such Approved Entity is not
true, correct or valid in any material respect and (ii) the Loan applicant(s) unless
Correspondent knows, has reason to believe or, after performing its normal due
diligence and quality control review, should have known that any information
provided by the Loan applicant(s) is not true, correct or valid in any
material respect.

 

(j)    That the documentation for each Loan sold to CMI (i) shall be duly
executed by the borrower(s), (ii) shall create a valid and legally binding
obligation of the borrowers(s) and (iii), if applicable, shall create a
fully enforceable first or subordinate lien on the property securing repayment of the Loan.

 

(k)   That each mortgage, home equity or other Loan (i) shall be fully
enforceable and originated in accordance with the terms, conditions,
representations, warranties and covenants contained in the CMI Manual and this
Agreement which were in effect as of the Loan closing date, (ii), if
applicable, was serviced in accordance with applicable Fannie Mae, Freddie Mac,
FHA, VA and/or HUD requirements
and industry standards, and (iii) is
subject to no defects or defenses, including but not limited to damage to the
property securing the Loan, lien imperfections or environmental risk.

 

(I)    That any third-party originators referring, or
in any way involved with, any Loan shall be, at a minimum, approved by
Correspondent according to Fannie Mae, Freddie Mac, FHA, VA and/or HUD guidelines for approving third-party originators as described
in the CMI Manual.

 

(m)  That it will immediately notify CMI if it (i) fails
to maintain any license or registration in violation of Sec. 2(b) above
and/or (ii) becomes subject to any enforcement and/or investigative

 

2

 

proceeding
by any licensing or regulatory authority or agency and/or (iii) is named
as a party or becomes involved in any material litigation.

 

(n)   That it will immediately notify CMI if (i) Correspondent and/or any
of its principal director(s) or owner(s) becomes the debtor in any
voluntary or involuntary bankruptcy proceeding, (ii) Correspondent and/or
any of its principal director(s) or owner(s) requests the appointment
of a receiver and/or (iii) Correspondent and/or any of its principal
director(s) or owner(s) has incurred or is likely to incur a material,
adverse change in its/their financial condition.

 

(o)   That it will immediately notify CMI of any material change in ownership
and/or management.

 

(p)   That it will promptly respond to or otherwise comply with CMI’s
reasonable request(s) for periodic financial statements of Correspondent
and/or any of its principal director(s) or owners and any other
documentation required by CMI in connection with the recertification of
Correspondent.

 

(q)   That it will fully comply with all additional representations,
warranties and covenants contained in the CMI Manual.

 

(r)    That all representations, warranties and covenants contained in this
Agreement and the CMI Manual shall survive the expiration and termination of
this Agreement.

 

3.     COSTS

 

Correspondent
shall pay all costs and expenses incurred in connection with the transfer and
delivery of Loans to CMI purchased pursuant to this Agreement, including but
not limited to mortgage Loan assignment preparation and recording fees, fees
for title policy endorsements and continuations, and Correspondent’s attorneys’
fees.

 

4.     CORRESPONDENT ADVERTISING; NON-SOLICITATION AND CUSTOMER PRIVACY

 

Correspondent
may advertise to the public the availability of various Loan programs, but
Correspondent may not, in any way, directly or indirectly identify CMI in all
such advertising unless (i) required by applicable law or (ii) CMI
has, in advance, approved use of CMI’s name in such advertising.

 

Correspondent
agrees that the borrower(s) on all Loans shall, at the time of purchase by
CMI, become the exclusive customers of CMI for all Loan-related purposes. During
the first twelve (12) months after the date any Loan is purchased by
CMI, Correspondent represents and warrants that Correspondent, Correspondent’s
directors, officers, employees, agents or affiliates will
not, without the prior consent of CMI, (i) use targeted
advertising, solicit or otherwise directly encourage or incent the Loan
borrower(s) to refinance or prepay the Loan that was purchased by CMI, (ii) prepare, sell or distribute any customer list incorporating the
names, addresses or any non-public personal information of such borrower(s) or (iii)
use any such customer list to solicit, promote, or allow any other entity to solicit or promote,
the sale of financial services or products to any such 

borrower(s). CMI and Correspondent agree that nothing contained herein shall
prohibit advertising or solicitation by Correspondent that is directed to the
general public in the area where the Loan borrower(s) reside(s).

 

Correspondent
acknowledges that it has received a copy of the Citigroup Privacy Promise
and/or Citigroup Privacy Policy and, to the extent necessary, shall comply with
all applicable provisions of such Promise and/or Policy. Correspondent also
agrees that it shall comply with all applicable federal or state laws related
to the use and/or retention of the non-public personal and/or financial
information associated with all Loans and the related Loan borrower(s).

 

5.     TERM

 

This
Agreement is for an initial one-year term and shall automatically renew for
successive one-year terms, unless terminated pursuant to Section 7 of this
Agreement.

 

3

 

6.     RELATIONSHIP BETWEEN CMI AND CORRESPONDENT

 

This
Agreement will not create any agency between Correspondent and CMI.
Correspondent shall conduct its business under this Agreement as an independent
contractor and shall have the rights and responsibilities of an independent
contractor.

 

CMI
shall not be responsible for any actions or omissions by Correspondent.
Correspondent agrees it will not represent, orally, in writing, by implication
or otherwise, that it can act in any capacity on behalf of CMI.

 

CMI
is prescribing no marketing plan for Correspondent and
exercises no control over the methods, operations and practices of
Correspondent except as provided in this Agreement and the CMI Manual.

 

Correspondent
acknowledges it is not selling or distributing CMI’s services, and CMI has made
no promise, representation or warranty regarding the profitability of any
arrangement with Correspondent.

 

Correspondent
and CMI acknowledge that each will be providing the other party with valuable
proprietary information (“Confidential Information”), including but not limited
to information regarding CMI’s or Correspondent’s products, programs,
underwriting policies, procedures and customers. Except as necessary to perform
its obligations under this Agreement or as required by law, each party will not
disclose any Confidential Information to any person outside that party’s
organization and will limit access to this information within its organization
on a strict “need to know” basis. Each party agrees to notify all of its
directors, officers, employees and other agents of its obligations regarding
Confidential Information and will cause such directors, officers, employees and
other agents to comply with such obligations.

 

7.     TERMINATION

 

CMI
may immediately terminate this Agreement without notice and CMI then will have
no further obligations under this Agreement upon: (1) the failure of
Correspondent to perform or abide by any term, condition, covenant or
obligation contained in this Agreement or the CMI Manual; (2) the finding
by CMI that any representation or warranty made by Correspondent is false or
incorrect in any material respect; (3) commencement by or against
Correspondent of any bankruptcy, insolvency or similar proceedings; (4) CMI’s
determination that Correspondent’s actions contravene the terms and conditions
of this Agreement or could adversely impact CMI’s activities or reputation; or (5) the
failure of loans sold by Correspondent to CMI pursuant to this Agreement to
satisfy CMI’s expectations regarding loan quality and/or performance.

 

Either
party may terminate this Agreement for any other reason upon thirty (30)
calendar days prior notice to the other. In the event of termination,
Correspondent shall fully cooperate with and assist CMI in obtaining the
documentation necessary to complete the processing and full resolution of all matters
(including but not limited to the delivery of all application and/or closed loan
documents and, if applicable, all Loan insuring documentation) relating to all
Loans purchased by CMI.

 

8.     ASSIGNMENT

 

Correspondent
may not assign this Agreement or any of its responsibilities under this
Agreement. This Agreement and all rights, obligations and responsibilities
hereunder may be assigned by CitiMortgage, Inc., without consent of the
Correspondent, to any corporation or bank more than 50% of the voting stock of
which is, directly or indirectly, owned by Citigroup, Inc.

 

9.     NON-EXCLUSIVE AGREEMENT

 

Correspondent’s
rights under this Agreement are on a non-exclusive basis. CMI shall be free to
market its products and services to, and to contract with, other parties and
customers as it deems appropriate.

 

4

 

10.   INDEMNIFICATION

 

Correspondent
agrees to indemnify and hold CMI harmless from any and all claims, actions and
costs, including reasonable attorneys’ fees and costs, arising from (i) Correspondent’s
performance or failure to perform under the terms, conditions or obligations of
this Agreement or the CMI Manual (including but not limited to Correspondent’s
failure to timely deliver all documents and records associated with or related
to all Loans purchased by CMI pursuant to this Agreement), (ii) any fraud,
misrepresentation or breach of any representation, warranty or covenant
contained this Agreement or the CMI Manual and/or (iii) Correspondent’s
advertisements, promotions or other activities. This indemnification shall
extend to any action or inaction by the directors, officers, employees, agents,
independent contractors or other representatives of Correspondent and shall
survive the expiration and termination of this Agreement.

 

11.   CURE OR REPURCHASE

 

If
CMI, in its sole and exclusive discretion, determines any Loan purchased
pursuant to this Agreement:

 

(i)    was underwritten and/or originated in violation of any term, condition,
requirement or procedure contained in this Agreement or the CMI Manual in
effect as of the date CMI purchased such Loan;

 

(ii)   was underwritten and/or originated based on any materially inaccurate
information or material misrepresentation made by the Loan borrower(s),
Correspondent, Correspondent’s directors, officers, employees, agents,
independent contractors and/or affiliates, or any other party providing
information relating to said Loan;

 

(iii)  was or is capable of being rescinded by the applicable borrower(s) pursuant
to the provisions of any applicable federal (including but not limited to the
Truth-In-Lending Act) or state law or regulation;

 

(iv)  must be repurchased from any secondary market investor (including but
not limited to the Fannie Mae, Freddie Mac, FHA, VA, HUD or Government National
Mortgage Association) due to a breach by Correspondent of any representation,
warranty or covenant contained in this Agreement or the CMI Manual or a failure
by Correspondent to comply in all material respects with the applicable CMI
Manual terms, conditions, requirements and procedures; and/or

 

(v)   was subject to an Early Payment Default (as defined in the CMI Manual), an Early Payoff (as defined
in the CMI Manual) or any other payment related defect (as defined in the CMI
Manual)

 

Correspondent
will, upon notification by CMI, correct or cure such defect within the time prescribed
by CMI to the full and complete satisfaction of CMI. If, after receiving such
notice from CMI, Correspondent is unable to correct or cure such defect within
the prescribed time, Correspondent shall, at CMI’s sole discretion, either (i) repurchase
such defective Loan from CMI at the price required by CMI (“Repurchase Price”)
or (ii) agree to such other remedies (including but not limited to
additional indemnification and/or refund of a portion of the Loan purchase
price) as CMI may deem appropriate. If CMI requests a repurchase of a defective
Loan, Correspondent shall, within ten (10) business days of Correspondent’s
receipt of such repurchase request, pay to CMI the Repurchase Price by cashier’s
check or wire transfer of immediately available federal funds. If such
defective Loan is owned by CMI at the time of repurchase by Correspondent, CMI
shall, upon receipt of the Repurchase Price, release to Correspondent the
related mortgage file and shall execute and deliver such instruments of
transfer or assignment, in each case without recourse or warranty, as shall be
necessary to vest in Correspondent or its designee title to the repurchased
Loan.

 

Correspondent
agrees and acknowledges that the provisions of this Sec. 11 do not, in any way,
eliminate, diminish or impair Correspondent’s indemnification obligations
contained in Sec. 10.

 

5

 

12.   GOVERNING LAW; VENUE

 

This Agreement shall be governed by the laws of the State of Missouri
and applicable federal law.

 

CMI
and Correspondent agree that any action, suit or proceeding to enforce or
defend any right or obligation under this Agreement or otherwise arising out of
either party’s performance under this Agreement shall be brought in St. Louis
County Circuit Court or the United States District Court for the Eastern
District of Missouri and each party irrevocably submits to the jurisdiction of
either forum and waives the defense of an inconvenient forum to the maintenance
of any such action, suit or proceeding in such state or federal court and any
other substantive or procedural rights or remedies it may have with respect to
the maintenance of any such action or proceeding in either forum.

 

13.   NOTICE

 

All
notices to CMI shall be sent in accordance with the applicable provisions of
the CMI Manual and shall be addressed according to such provisions.

 

Prior
to or at the time Correspondent executes this Agreement, it shall provide CMI
with one or more procedures and addresses for delivering notices pursuant to
this Agreement. In addition to these procedures and addresses, Correspondent
agrees and acknowledges that CMI may deliver all notices required by this
Agreement in writing to Correspondent at the address listed on the last page of
this Agreement.

 

14.   MODIFICATION; MERGER; ENTIRE AGREEMENT; NO
WAIVER OF RIGHTS

 

This
Agreement may not be modified except by a document or record signed by both CMI
and Correspondent. This Agreement (including the CMI Manual) contains the
entire agreement of the parties and supersedes all previous agreements
(including all amendments thereto) between the parties hereto. Any
representations, promises or agreements not contained in this Agreement or the
CMI Manual shall have no force or effect. The failure of either party to
exercise any right given to it under this Agreement or to insist on strict
compliance of any obligation under this Agreement shall not constitute a waiver
of any right, including the right to insist on strict compliance in the future.

 

15.   ON-SITE REVIEW AND DOCUMENT COLLECTION

 

Correspondent
shall permit any officer,
employee or designated representative of CMI, at any reasonable time during
regular business hours and upon reasonable advance notice by CMI, to conduct an
examination and audit on Correspondent’s premises of any of the processes
implemented and documents kept by Correspondent regarding any Loan purchased by
CMI pursuant to this Agreement. If Correspondent fails to timely deliver, in
accordance with the applicable terms and conditions specified in the CMI
Manual, all documents and records associated with or related to any Loan
purchased by CMI pursuant to this Agreement, Correspondent shall also give CMI
and its officers, employees, or designated representatives reasonable access to
Correspondent’s premises in order to allow CMI to retrieve, prepare or
otherwise obtain all such documents and records. Correspondent shall also make
its officers, employees and/or designated representatives available to CMI and
shall cooperate with CMI in all such examinations, audits and document and
record collection activities.

 

16.   AUTHORITY TO EXECUTE AGREEMENT

 

Correspondent
represents and warrants that it has all requisite power, authority and capacity
to enter into this Agreement and to perform all obligations required of it
hereunder. The execution and delivery of this Agreement and the consummation of
the transactions contemplated hereby have each been duly and validly authorized
by all necessary action(s). Correspondent shall, upon request by CMI, execute
such supplemental resolutions, acknowledgments and/or certifications as may be
reasonably necessary to evidence such power, authority and capacity.

 

6

 

17.   CORRESPONDENT GRANT
OF LIMITED POWER OF ATTORNEY

 

Correspondent
hereby appoints CMI and the directors, officers, employees, agents, successors
and assigns of CMI as its
true and lawful attorney-in-fact
without right of revocation and with full power of substitution for and in its place and stead to (i) demand and control all sums due on Loans purchased pursuant to this Agreement and to enforce all rights with respect thereto, (ii) endorse,
mark, place or otherwise evidence Correspondent’s name as payee on all checks,
drafts, acceptances or other form of partial or full Loan payment delivered or
tendered to CMI, (iii) endorse, mark, place or otherwise evidence Correspondent’s name on all notes, mortgages, deeds of trust, and other
forms of security instruments or collateral and all assignments, full or
partial releases or satisfactions
of said mortgages, deeds of trust,
and other forms of security instruments or collateral for all Loans purchased pursuant to this
Agreement. Correspondent agrees to execute such other documents as CMI may reasonably request to evidence the appointment of CMI as Correspondent’s attorney-in-fact.

 

18.  MISCELLANEOUS

 

All
capitalized terms not otherwise defined herein shall have the meanings
attributed to them in the CMI Manual. All Section headings are for
convenience only and shall not be construed as part of this Agreement. Any
provision of this Agreement that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
portions hereof or affecting the validity or enforceability of such provision
in any other jurisdiction and, to accomplish this purpose, the provisions
hereof are severable. This Agreement shall not
be effective until signed by both parties.

 

IN
WITNESS WHEREOF, the duly authorized officers of CMI and Correspondent have
executed this Agreement as of the date first above written.

 

 

	
  CITIMORTGAGE,
  INC.

  	
   

  	
  Home Loan Center

  
	
          (CMI)

  	
  CORRESPONDENT

  
	
   

  	
   

  
	
  By

  	
  /s/
  Richard P. McCoppin

  	
   

  	
  By

  	
  /s/ Robert Hill

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title

  	
   Vice President

  	
   

  	
  Title

  	
    SVP Finance

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date

  	
  3-29-05

  	
   

  	
  Date

  	
  May 7th, 2004

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  RICHARD P. McCOPPIN

  	
   

  	
  Correspondent
  Notice Address:

  
	
  Manager Eligibility & Wholesale MIS

  	
   

  	
    18191
  Von Karman Ave, Suite 300

  
	
  CitiMortgage, Inc.

  	
   

  	
   

  
	
  1000 Technology Drive/MS 111

  	
   

  	
    Irvine,
  CA 92612

  
	
  O’Fallon, MO 63304

  	
   

  	
   

  
	
  (636) 261-0151/GEID #0002093401

  	
   

  	
   

  
							

 

 

NOTE: THE TEXT OF THIS AGREEMENT MAY NOT
BE CHANGED IN ANY MANNER WITHOUT THE EXPRESS PERMISSION OF CITIMORTGAGE, INC.
(Except for the Addendum attached hereto)

 

7

 

ADDENDUM

TO

LOAN PURCHASE AGREEMENT

 

The
parties set forth below have entered into this Addendum to amend the terms and
conditions of the Correspondent Loan Purchase Agreement between Home Loan Center, Inc.
(“HLC”) and CitiMortgage, Inc. (“Purchaser”) dated April 26, 2004
(the “Agreement”). All capitalized terms in this Addendum that are not
otherwise defined shall have the meanings set forth for such terms in the
Agreement. In the event of any inconsistency between the Agreement and this
Addendum, the terms and conditions of this Addendum shall control.

 

From
time to time, HLC or its affiliates may send email or other communications to
its customers who opt in to receive certain types of communications from HLC or
its affiliates or are solicited by third parties on behalf of HLC without
knowledge of Purchaser’s relationship to such customers (“Permitted
Communications”). Permitted Communications (which may include information
regarding service providers that compete with Purchaser) shall not be
considered a violation of the Agreement. Notwithstanding the foregoing,
Permitted Communications may not be designed to specifically target HLC’s
customers whose loans have been sold to Purchaser.

 

Notwithstanding
anything to the contrary contained in the Agreement, if the Agreement is
terminated, Purchaser shall remain responsible to pay the Purchase Price with
respect to any Loan.

 

 

	
   

  	
  /s/ Robert Hill

  
	
   

  	
  May 7, 2004

  
	
   

  	
  Robert Hill

  
	
   

  	
  Svp Finance

  
	
   

  	
  Home Loan Center

  

 

8Exhibit 10.10

 

Loan Purchase Agreement

 

This Agreement, dated as of 4/16, is made by and between Countrywide
Home Loans, Inc., a New York corporation (“Countrywide”), and Home Loan Center, a CA  corporation (“Seller”), for mutual considerations
set forth herein.

 

Countrywide agrees to purchase certain loans secured by real
property, together with the servicing thereof (the “Loans”), from Seller under
Countrywide’s mortgage loan programs, and Seller agrees to  sell to Countrywide certain
such Loans pursuant to the terms and conditions set forth herein and in
Countrywide’s Correspondent Lending Division Loan Purchase Program Seller’s
Manual, as amended from time to time (the “Manual”). In connection therewith,
the parties agree as follows:

 

1. ELIGIBLE LOANS

 

A.  Only those Loans fully complying with the standards
for Conforming
Conventional, Jumbo Conventional,
Government and Second Mortgage Loan Programs set forth in the Mortgage Programs
section of the Manual are eligible for  purchase under this Agreement.
Seller must be approved, qualified and/or licensed to originate such Loans.

 

B.   Seller shall
fully underwrite each Loan prior to submission to Countrywide in accordance
with Underwriting Guidelines and Lending Requirements sections of the Manual,
or, if available, use a Countrywide-approved automated underwriting system for
underwriting the Loan.

 

C.   Seller shall
be responsible for assuring that Loans submitted to Countrywide comply with all
terms and conditions of this Agreement and the Manual.

 

2. COMMITMENT TO PURCHASE LOANS

 

The procedure pursuant to
which Seller may commit to sell a Loan to Countrywide is detailed in the Loan
Registration section of the Manual. For purposes of this Agreement, Countrywide
and Seller define a best effort commitment to be a mandatory commitment if the Loan closes. Countrywide will confirm the conditions of the sale of the Loan
to Countrywide by delivering a confirmation (“Commitment”) to Seller which sets forth the terms of the
transaction, including the price Countrywide will pay for each Loan, as
determined pursuant to the Pricing standards set
forth in the Manual (the “Purchase Price”). The terms of the Commitment,
including the Purchase Price, shall be in effect for the period of time
requested by Seller and approved by Countrywide (the “Commitment Period”). If
Seller is
approved by Countrywide to sell
Loans to Countrywide on a bulk sale basis, Countrywide and Seller shall execute
the  Addendum to Loan Purchase Agreement (Bulk
Sales) which shall be attached to and incorporated into this Agreement by
reference.

 

3. UNDERWRITING AND PROPERTY APPRAISAL

 

A. Countrywide
shall have the right, but not the obligation, to underwrite any Loan submitted
for purchase pursuant to this Agreement, or otherwise insure that any Loan
submitted for  purchase complies with all terms and
conditions of this Agreement and the Manual; provided that neither the
existence nor the exercise of this right shall affect in any way Seller’s
obligations hereunder, including without limitation, Seller’s repurchase
obligations under Section 7 hereof and Seller’s hold harmless obligations
under Section 9 hereof. The applicable procedures are set forth in the Prior
Approval section of the Manual.

 

B.  Seller shall
deliver to Countrywide an appraisal of the real estate security for each
such Loan, signed by a qualified appraiser, as defined in the Manual, prior to
Countrywide’s approval to purchase such  Loan.

 

4.
DELIVERY OF LOAN DOCUMENTATION

 

A
Loan shall be deemed delivered to Countrywide if: (A) it is received by Countrywide
within the Commitment Period; (B) it is in compliance with the
requirements set forth in the Delivery of Closed Loans and Funding
Documentation sections of the Manual; and (C) there are no outstanding
conditions which would prevent Countrywide from funding the purchase of the
Loan. Failure by Seller to deliver to Countrywide within 120 days from the date
a Loan was purchased one or more of the original documents specified in the
Delivery of Closed Loans section of the Manual shall result in assessment by
Countrywide of a fee of $50 per month for each month, after the initial 120 day
period, during which one or more of such documents is outstanding, i.e., has
not been delivered to Countrywide for any period of time during the month. Such
fee shall
be $50 regardless of the number of such documents. Failure by
Seller to deliver to Countrywide one or more of the original documents
specified in the Delivery of Closed Loans section of the Manual within 270 days
from the date the Loan was purchased by Countrywide shall obligate Seller to repurchase the Loan pursuant to the provisions
of Section 7 of this
Agreement.

 

5. PAYMENT OF PURCHASE PRICE AND SELLER’S WIRE INSTRUCTIONS

 

Countrywide
shall, after receipt of a Loan documentation package which fully complies with
the requirements of the Manual, deliver the Purchase Price (less any fees or discounts due to Countrywide) set
forth in the applicable Commitment to Seller in accordance with Seller’s wire
instructions or in accordance with any ballee letter or trust receipt submitted with the Loan, as determined
in the sole and absolute
discretion of Countrywide.

 

	
  

  	
   

  	
   

  

 

1

 

6. SELLER’S OBLIGATIONS, REPRESENTATIONS AND WARRANTIES

 

A.  Seller represents and warrants to Countrywide
as to each Loan offered for sale under this Agreement that as  of the date  of
Countrywide’s purchase of such Loan:

 

(1)   The Loan documents have been duly executed by the trustor/mortgagor,
acknowledged and recorded; each Loan is valid and complies with all criteria
contained in
the Manual; the note and deed of trust/mortgage constitute the entire
Agreement between the trustor/mortgagor and the beneficiary/mortgagee, and there is no
verbal understanding or written modification
which would affect the terms of the note or the deed of trust/mortgage except
by written instrument delivered and expressly made known to the
beneficiary/mortgagee and recorded if recording is necessary to protect the
interests of the beneficiary/mortgagee.

 

(2)   Seller is the sole owner of the Loan and has authority to sell, transfer and assign the same on the terms set forth herein and in the
Manual. There has been no assignment, sale or hypothecation thereof by Seller,
except the usual hypothecation of the documents in connection with Seller’s
normal banking transactions in the conduct of its business.

 

(3)   The full principal amount of the Loan has been advanced to the
trustor/mortgagor, either by payment directly to such  person or by payment made on such
person’s request or  approval.
The unpaid principal balance of the Loan is as represented by Seller. All
costs, fees and expenses incurred in making, closing and recording the Loan
have been paid. No part of the mortgaged property has been released from the lien of the
Loan, the terms of the Loan have in no way been changed or modified, and the
Loan is current and not in default.

 

(4)   Each Loan is a valid first lien or, if specifically approved by
Countrywide, a valid second lien on the mortgaged property, and the mortgaged property is free and clear of all
encumbrances and liens having priority over the lien of such Loan, except
for the first
lien, if applicable, and liens for real estate taxes and special
assessments not yet due and payable and those exceptions allowed in connection
with Government Loans and other exceptions set forth in the Manual.

 

(5)   The mortgaged property is free and clear of all mechanics’ and materialmen’s
liens or liens in the nature thereof, and no rights are outstanding that under
law could give rise to any such lien, nor is Seller aware of any facts which could give rise to any such lien.

 

(6)   Each Loan which Seller represents to be insured or guaranteed is, or
will within 120 days from the date of delivery of such Loan to Countrywide be,
so insured or guaranteed. No action
has been taken or failed to have been taken which has resulted or will result
in an exclusion from, denial of, or defense to, coverage under such insurance
or guarantee; and all conditions within  the control of Seller as to the validity of
the insurance or guaranty as required by the National Housing Act of 1934 and
the rules and regulations thereunder, or as required by the Servicemen’s
Readjustment Act of 1944 and the rules and
regulations thereunder, or imposed by the mortgage insurance companies or other
insurers have been properly satisfied, and said insurance or guaranty is valid
and enforceable.

 

(7)   All federal and state laws, rules and regulations applicable to
the mortgage Loans have been complied with, including but not limited to: the
Real Estate Settlement
Procedures Act, the Flood Disaster Protection Act, the Federal Consumer
Credit Protection Act including the Truth-in-Lending and Equal Credit
Opportunity Acts, and all applicable statutes or regulations governing fraud, lack of consideration,
unconscionability, consumer credit transactions or interest charges.

 

(8)   No Loan is the subject of, and Seller is not aware of any facts which
could give rise to, litigation which could affect Countrywide’s ability to
enforce the terms of the obligation or its rights under the mortgage documents.

 

(9)   There is in force for each Loan either
(a) a paid-up title insurance policy on the Loan issued by a Countrywide
approved title company in an amount at least equal to the outstanding principal
balance of the Loan or (b) an attorney’s mortgage lien opinion. (Negatively amortizing loans require
additional coverage.)

 

(10) There is in force for each Loan valid hazard insurance policy coverage
and, where applicable, valid flood insurance policy coverage, and such coverages
meet the requirements of Countrywide specified in the Manual.

 

(11) Seller will record the corporate assignment in the name of  Countrywide Home Loans, Inc. at the time the deed of trust/mortgage
is recorded, and the assignment of the Loan from Seller to Countrywide shall be
valid and enforceable.

 

(12) The borrower has no rights of rescission, set-offs, counter-claims or
defenses to the note or deed of trust/mortgage securing the note arising from
the acts and/or omissions of Seller.

 

(13) Seller has no knowledge that any improvement located on or being part
of the mortgaged property is in violation of any
applicable zoning law or regulation.

 

(14) All improvements included for the purpose of determining the appraised
value of the mortgaged property lie wholly within the boundaries and building
restriction lines of such property, and no improvements on adjoining properties
encroach upon the mortgaged property.

 

(15) There is no proceeding pending for total or partial condemnation of any
mortgaged property and said property is free of substantial damage (including,
but not
limited to, any damage by fire, earthquake, windstorm,
vandalism or other casualty) and in good repair.

 

2

 

(16) Seller has no
knowledge of any circumstances or conditions with respect to any Loan,
mortgaged property, trustor/mortgagor or trustor’s/mortgagor’s credit standing
that reasonably could be expected to cause private institutional investors to
regard any Loan as an unacceptable investment, cause any Loan to become
delinquent or adversely affect the value or marketability of the Loan.

 

(17) All documents submitted are genuine. All other representations as to each such Loan are true
and correct and meet the requirements and specifications of all parts of this Agreement and
the Manual.

 

B. Seller represents and
warrants to Countrywide that as of the date first set forth above and as of the
date of Countrywide’s purchase of each Loan hereunder:

 

(1)   Seller is duly organized, validly existing and in good standing under the laws of its state of
incorporation and is qualified and/or licensed as necessary to transact business, including the originating and
selling of mortgage loans, and is in good standing in each state where the property
securing a Loan is located.

 

(2)   Seller has the full power and authority to hold and sell each Loan; and
neither the execution and delivery of this Agreement, nor the acquisition or
origination of the Loans, nor the sale of the Loans, nor the consummation of the
transactions contemplated herein, nor the fulfillment of or compliance with the
terms and conditions of this Agreement will conflict with, or result in a
breach of any term, condition or provision of, Seller’s certificate of incorporation
or by-laws, any license held by Seller or governing Seller’s activities or any
agreement to which Seller is a party or by which Seller is bound, or constitute
a material default or result in an acceleration under any of the foregoing.

 

(3)   No consent, approval, authorization or order of any court, governmental
body or any other person or entity is required for the execution, delivery and
performance by Seller of this Agreement, including but not limited to, the sale
of the Loans to Countrywide.

 

(4)   Neither Seller nor its agents know of any suit, action, arbitration or
legal or administrative or other proceeding pending or threatened against
Seller which would affect its ability to perform its obligations under this
Agreement.

 

(5)   Seller is not a party to, bound by or in breach or violation of any
agreement or instrument, or subject to or in violation of any statute, order or
regulation of any court, regulatory body, administrative agency or governmental
body having jurisdiction over it, which materially and adversely affects, or
may in the future materially and adversely affect, the ability of Seller to perform its obligations under this Agreement or the Manual, including,
without limitation, Seller’s repurchase and indemnification obligations pursuant
to Sections 7, 8 and 9 of this Agreement.

 

7. SELLER’S REPURCHASE OBLIGATIONS

 

A.  Seller
shall repurchase any Loan sold to Countrywide pursuant to this Agreement within
twenty business days of receipt of written notice from Countrywide of any of
the following circumstances (the “Repurchase Obligation”):

 

(1)   Seller fails to deliver to Countrywide within 270 days from the date
each Loan was purchased the original documents specified in the Delivery of
Closed Loans section of the Manual.

 

(2)   Countrywide determines that there is any evidence of fraud in the
origination of the Loan or in the sale of the Loan to Countrywide or that any matter in the mortgage loan file is not true
and correct.

 

(3)   If Countrywide determines the Loan is not eligible for GNMA, FNMA or FHLMC
pool participation or whole loan purchase or purchase by a private investor,
or, if Countrywide has sold such Loan in whole or in part to  GNMA, FNMA, FHLMC or a  private  investor, and GNMA, FNMA, FHLMC or the private investor  requires Countrywide to repurchase said interest or reimburse it for
losses, or the mortgage insurer denies coverage on the Loan; provided the
reason for such ineligibility; repurchase, reimbursement or denial shall be due
to a failure of the Loan to meet requirements specified in the Manual at the time of Countrywide’s purchase of  the Loan from Seller.

 

(4)   If the first payment due Countrywide is not received by Countrywide,
whether from the borrower directly or forwarded by Seller if the Borrower has
submitted the  payment to Seller, by the last day of the
month in which it is due, and, in addition, at any time within the first twelve
months after the Loan has been purchased by Countrywide, the Borrower is 90
days delinquent with respect to a monthly payment. For this purpose a Borrower shall be considered to be 90 days delinquent on a monthly
payment if it is not received by Countrywide by the last day of the third
month, regardless of the number of days in the month. For example, if the
Borrower has not made his/her January payment by the last day of March,
the Borrower shall be considered 90 days delinquent with respect
to the January payment. Seller shall not have the right to advance funds
for or on behalf of a Borrower for any delinquent payment or to  otherwise
make funds available to any Borrower to avoid or cure a default by the
Borrower. A payment for which Countrywide deducted funds at the time it purchased the Loan from Seller shall not be considered the first
payment due Countrywide.

 

(5)   Seller falls to observe or perform or breaches in any material respect
any of the representations, warranties or agreements contained in this
Agreement or the Manual with respect to a particular Loan.

 

(6)   With respect solely to VA Loans purchased by Countrywide pursuant to an
Assignment of Trade Addendum to this Agreement or on a Direct Trade basis
pursuant to a Direct Trade Addendum to this Agreement, if the Loan  goes into foreclosure within 24 months from the date  of sale of the Loan to Countrywide as to
those Loans with full  guarantees from the VA and 48 months from the date of sale of the Loan to
Countrywide as to those Loans with partial guarantees from the VA and as to which the VA gives Countrywide a  no-bid instruction in
conjunction with the foreclosure
sale on such Loan.

 

3

 

B.   The option to request or accept repurchase of any Loan is at the sole
discretion of Countrywide. Notwithstanding that a Seller may be obligated pursuant to the terms of this Section 7
to repurchase a Loan, if such Loan is in compliance with all requirements of
this Agreement and the Manual at the time of its purchase by Countrywide and if
there is no evidence of fraud or misrepresentation in connection with the Loan,
Countrywide, in its sole discretion and on terms determined solely by Countrywide,
may consider
permitting Seller to indemnify Countrywide against all suits, costs, damages,
losses, fees or claims, including without limitation reasonable attorneys’
fees, which may be incurred by Countrywide in connection with such Loan. Such
indemnification shall be substantially in the form of the applicable
Indemnification Agreement, the provisions of which shall include, without
limitation, the requirement that the
Seller shall pay to Countrywide, at the time that the indemnification Agreement
is executed, the amount specified by Countrywide as the amount necessary to
cover its projected and potential costs and losses, and including the service
release premium paid by Countrywide to the Seller with respect to the Loan.

 

C.   It is agreed by the parties that Seller’s Repurchase Obligation with respect to
a Loan shall not be obviated by the fact that the property securing the Loan has been foreclosed upon and said property has been acquired by Countrywide or
a third party, it being understood that the term Repurchase Obligation
encompasses within its meaning the repurchase of the property from Countrywide
if Countrywide has acquired the property, or, if a third party has acquired the
property, reimbursing Countrywide in the amount specified in Section 8.C.
of this Agreement.

 

D.  It is further agreed by the parties that if Countrywide has made demand
on Seller to repurchase a Loan pursuant to Section 7 of this Agreement,
Countrywide shall have the right to withhold any monies due Seller in
connection with the Loan(s) subject to the Repurchase Obligation or any
other Loans until the parties have agreed that the Repurchase Obligation is
satisfied.

 

8. REPURCHASE PRICE

 

A. The repurchase price for Loans subject to a Repurchase
Obligation pursuant to Section 7 hereof shall be as follows:

 

(1)   The current unpaid principal balance of such Loan if it has been pooled
or resold. If such loan has not been pooled or resold by Countrywide, the
repurchase price shall be at the original price, less principal reduction since
the original purchase of the Loan by Countrywide; plus

 

(2)   All interest accrued but unpaid on the principal balance of the Loan
from the paid-to-date of the loan through and including the last day of the
month in which the repurchase is made; plus

 

(3)   All expenses, including but not limited to reasonable fees and expenses of
counsel, incurred by Countrywide in enforcing Seller’s obligation to repurchase
such Loan; plus

 

(4)   The original servicing release premium paid by Countrywide with respect
to such Loan; plus

 

(5)   Any unreimbursed advances of taxes or insurance made by Countrywide
with regard to such Loan as of the date of repurchase; less

 

(6)   Any proceeds of mortgage insurance with respect to the Loan collected
by Countrywide.

 

Upon
any such repurchase of Loans by Seller, Countrywide shall endorse the
promissory note (without recourse) and shall assign any security interest
(without recourse and in recordable form) to Seller.

 

B.   If the
real property security for the Loan has been foreclosed upon and purchased by
Countrywide at the foreclosure sale, then the repurchase price pursuant to Section 7
hereof, notwithstanding the amount of Countrywide’s credit bid, shall be:

 

(1)  The current unpaid principal balance of such Loan if it has been pooled
or resold. If such loan has nor been pooled or resold by Countrywide, the
repurchase price shall be at the original price, less principal reduction since the
original purchase of the Loan by Countrywide; plus

 

(2)  All interest accrued but unpaid on the principal balance of the Loan from
the paid-to-date of the loan through and including the last day of the Month in which
the foreclosure sale occurs; plus

 

(3)  All costs and expenses,
including but not limited to reasonable
fees and expenses of counsel, incurred by Countrywide in connection with the foreclosure
and in enforcing Seller’s
Repurchase Obligations hereunder; plus

 

(4)  The original servicing release premium paid by Countrywide with regard
to such Loan; plus

 

(5)  Any unreimbursed advances of taxes or insurance made by Countrywide
with regard to such Loan as of
the date of repurchase; plus

 

(6)  Interest on the amounts set forth in paragraphs (l) through (5) above
at the Loan rate from the end of the month in which the foreclosure sale
occurred until and including the date of repurchase by Seller; less

 

(7)  Any proceeds of mortgage insurance collected by Countrywide with
respect to the Loan.

 

Upon payment of the
repurchase price, Countrywide shall transfer title to the property securing such
Loan to Seller.

 

C. If the real
property security for the Loan has been sold at foreclosure and purchased by a
third party, the amount Seller shall pay Countrywide to fulfill its Repurchase
Obligation pursuant to Section 7 of this Agreement shall be as follows:

 

(1)  The current unpaid principal balance of such Loan if it has been pooled or resold. If such loan
has not been pooled or resold by Countrywide, the repurchase price shall be at
the original price, less principal reduction since the original purchase of the
Loan by Countrywide; plus

 

4

 

(2)  All interest accrued but unpaid on the principal balance of the Loan
from the paid-to-date of the loan through and including the last day of the
month in which the foreclosure sale occurs; plus

 

(3)  All costs and expenses, including but not limited to reasonable fees
and expenses of counsel, incurred by Countrywide in enforcing Seller’s
Repurchase Obligations hereunder; plus

 

(4)  The original servicing release premium paid by Countrywide with regard
to such Loan; plus

 

(5)  Any unreimbursed advances of taxes or insurance made by Countrywide
with regard to such Loan as of the date of repurchase; plus

 

(6)  Interest on the amounts set forth in paragraphs (1) through
(5) above at the Loan rate from the end of the month in which the
foreclosure sale occurred until and including the date of repurchase by Seller;
less

 

(7)  The net proceeds of the foreclosure sale (sale price minus costs and
expenses, including but not limited to reasonable fees and expenses of counsel, incurred by Countrywide in
connection with the foreclosure sale); less

 

(8)  Any proceeds of mortgage insurance collected by Countrywide in
connection with the Loan.

 

9. HOLD HARMLESS

 

A. Seller shall hold Countrywide harmless and shall indemnify Countrywide
from and against any and all suits, costs, damages, losses, fees or claims,
including without limitation reasonable attorney’s fees (“Loss”), arising out of or in connection with any negligence,
fraud or a material omission on the part of Seller in receiving, processing or
funding any Loan committed to Countrywide for sale under Section 2 above,
during the origination period and Commitment Period up to and including the
date the Loan is purchased by Countrywide. Seller’s obligation to Countrywide
in this regard shall remain effective after Countrywide’s purchase of the Loan
if the Loss arose prior to purchase
but was undetected at time of purchase. This paragraph shall not modify Seller’s
obligations contained elsewhere in this Agreement.

 

B. Seller shall also hold Countrywide harmless and shall indemnify
Countrywide from and against any and all suits, costs, damages, fees or claims, including without
limitation reasonable attorneys’ fees, arising out of or in connection with any
one or more of the items set forth in paragraphs (1) through (6) of Section 7A.
of this Agreement.

 

10. NO SOLICITATION

 

Loans
sold to Countrywide cannot be solicited by Seller for refinance for a period of
12 months from the date the Loan is purchased by Countrywide. Borrowers
requesting a refinance from Seller within the 12 month period must be referred
to Countrywide or, provided the refinanced loan meets all Countrywide
requirements as specified in the Manual, may be processed by the Seller and
sold to Countrywide for a service release premium, if any, to be
negotiated by the parties.

 

11. PROHIBITION AGAINST USE OF NAME OR AFFILIATION

 

Seller
shall not hold itself out as a joint venturer, partner, representative,
employee or agent of Countrywide. Nor shall it use Countrywide’s name in any
advertising or written or broadcast material without Countrywide’s express
prior written consent. This prohibition shall not prevent Seller from using any
advertising media provided to it by Countrywide for use by Seller and
containing any copyrighted Countrywide name or logo. Such copyrighted name or
logo shall remain in place.

 

12. TERMINATION –  SUSPENSION

 

A. This Agreement may be terminated as to future commitments for sale of
Loans by either party at any time, but such termination shall not in any
respect change or modify the obligation of Seller with respect to Loans already
subject to a Commitment. The effective time of termination shall be the earlier
of the time written notice is actually received by the other party or five days
after written notice is posted in the United States Postal Service by the
canceling party. Termination of this Agreement shall not in any way affect
either Seller’s or Countrywide’s
obligations, representations, warranties or indemnifications with respect to
Loans already purchased by Countrywide; provided, however, that Countrywide may
immediately terminate its obligations hereunder without notice and immediately
return to Seller any Loans subject to a Commitment, and Seller shall accept
such loans if Coutrywide reasonably determines that there has been any
deception, fraud, concealment or material misrepresentation by Seller in
performing any of its duties, obligations, responsibilities or actions
undertaken in connection with this Agreement or in connection with any Loan sold to Countrywide pursuant to this
Agreement.

 

B. In addition to the termination rights set
forth in Paragraph A. above, in the event that Countrywide believes in good faith that Seller has breached an obligation (including
a Repurchase Obligation under Section 7), representation, warranty or
covenant under the Agreement, or will be unable to fulfill any of its
obligations under the Agreement or the Manual (including a Repurchase
Obligation under Section 7), Countrywide may, in its sole and absolute
discretion, suspend this Agreement as to future Commitments for the sale of
Loans by Seller.
Such suspension shall be
effective immediately upon Seller’s receiving written notice of same from
Countrywide and shall last until Countrywide, in its sole discretion,
determines to reactivate or terminate this Agreement.

 

13. EXHIBITS

 

All
exhibits attached hereto or
material referred to in this Agreement, including the Manual, are incorporated
by reference into this Agreement. To the extent there are differences between
requirements as stated in the Manual and as stated in this Agreement, the
provisions of this Agreement shall govern.

 

5

 

14. ENTIRE AGREEMENT

 

The
entire agreement between the parties is contained in this Agreement and in the Manual and cannot be modified in any respect except by an amendment
in writing signed by both parties. The invalidity of any portion of this
Agreement shall in no way affect the balance thereof.

 

15. ASSIGNMENT

 

Seller
may not assign its rights or delegate its
duties or obligations under this Agreement without the prior written
consent of Countrywide. This Agreement shall be binding on and inure to the
benefit of the permitted successors and assigns of the parties hereto.

 

16. ATTORNEYS’ FEES AND EXPENSES-CHOICE OF LAW AND FORUM

 

If
any party hereto shall bring suit or other
proceeding against the other as a
result of any alleged breach or failure by the other party to fulfill or
perform any covenants or obligations under this Agreement, then the prevailing
party obtaining final judgment in such action shall be entitled to receive from
the non-prevailing party reasonable attorneys’ fees incurred by reason of such
action and all costs of suit and
preparation thereof at both trial and appellate levels. This Agreement
shall be governed by and construed
and enforced in accordance with applicable federal law and the laws of the State of California. In
addition, any such suit or proceeding shall be brought in the federal or state courts
located in Los Angeles County, California, which courts shall have sole and
exclusive in personam, subject matter and other jurisdiction in connection with
such suit or proceedings, and venue shall be appropriate for all purposes in
such courts.

 

17. NO REMEDY EXCLUSIVE-WAIVER

 

No
remedy under this Agreement is exclusive of any other available remedy, but
each remedy shall be cumulative and shall be in addition to other remedies
given under this Agreement or existing at law or in equity.

 

Any
forbearance by a party to
this Agreement in exercising any right
or remedy
under this Agreement or otherwise afforded by applicable law shall not be a
waiver or preclude the exercise of that or any other right or remedy.

 

18. NOTICE

 

Unless
otherwise provided in this Agreement, all notices under this Agreement shall be
in writing, deemed effective upon receipt and addressed as indicated
below.

 

	
  TO:

  	
  Countrywide
  Home Loans, Inc.

  	
  TO:

  	
  Lender/Seller

  
	
   

  	
  Correspondent
  Lending Division

  	
   

  	
  HOME
  LOAN CENTER

  
	
   

  	
  450
  American Street

  	
   

  	
  2010
  Main St.

  
	
   

  	
  Mail
  Stop No. SV3-51

  	
   

  	
  IRVINE,
  CA 92614

  
	
   

  	
  Simi
  Valley, California 93065

  	
   

  
	
   

  	
  Attention:
  Vice President of Production

  	
   

  

 

	
  ACCEPTED BY:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  COUNTRYWIDE
  HOME LOANS, INC.

  	
  SELLER:

  	
   

  	
  Home
  Loan Center

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/
  Catherine A. Kaiser

  	
   

  	
  By:

  	
   

  	
  /s/
  Anthony Hsieh

  
	
   

  	
   

  	
  SIGNATURE

  	
   

  	
   

  	
   

  	
  SIGNATURE

  
	
  Name:

  	
   

  	
  Catherine
  A. Kaiser

  	
   

  	
  Name:

  	
   

  	
  Anthony
  Hsieh

  
	
  Title:

  	
   

  	
  Senior
  Vice President

  	
   

  	
  Title:

  	
   

  	
  CEO

  
	
  Dated:

  	
   

  	
  May
  15, 2002

  	
   

  	
  Dated:

  	
   

  	
  4/16/02

  

 

6

 

Addendum to Loan
Purchase Agreement

 

MANDATORY COMMITMENTS (BULK SALES)

 

This Agreement (the “Addendum”) constitutes
an Addendum to that Loan Purchase Agreement dated 4-16, 2002 by and between
Countrywide Home Loans, Inc., a New York Corporation (“Countrywide”), and
Home Loan Center  a           (“Seller”) (the “Agreement”).

 

This
Addendum is for the purpose of setting forth the obligations of the Seller to
Countrywide in accordance with Countrywide’s mandatory commitment program,
which is further described in the Seller’s Manual. The terms and conditions of
the Loan Purchase Agreement are incorporated herein by reference. This Addendum
shall modify, amend, and form a part of the terms of the Agreement. All terms contained herein  shall have the same meaning as in the
Agreement, unless otherwise defined herein. In the event of any conflict
between the terms and conditions of the Agreement and this Addendum as it
pertains to the mandatory commitment program, the terms and conditions of this
Addendum shall prevail.

 

GENERAL

 

Sellers
may elect to deliver loans to Countrywide under the mandatory commitment
program by entering into a mandatory delivery commitment (a “Commitment”) to
deliver a specified amount and type of loan on or before a specified date.
Under the mandatory commitment program, the Seller shall be obligated to pay a
mark-to-market pair-off fee if the Seller fails to deliver qualifying loans by
the date specified in the Commitment (the “Commitment Expiration Date”), in the
amount specified in the Commitment (the “Commitment Amount”), or otherwise
under the terms provided in the applicable Commitment.

 

I. PAIR-OFF ASSESSMENT

 

Pair-off
fees shall be assessed as of the dates and times (the “Pair-Off
Assessment Date”) provided for:

 

(a)  as of the date and time
that the Seller notifies Countrywide of its election for a reduction of any
portion of the Commitment Amount; or

 

(b) as of the date and time that the Seller notifies Countrywide of its
election for a program substitution as described in the Seller’s
Manual for any portion of the mandatory commitment (such substitution to be
treated as a reduction of the Commitment Amount); or

 

(c)  as of the close of the Commitment Expiration Date if qualifying loan
files are not delivered by seller in an amount equal to the Commitment Amount,
less the allowable delivery variance provided for in the Commitment; or

 

(d) as of the close of business on such date subsequent to the Commitment
Expiration Date that Countrywide determines that a loan delivered by the
Commitment Expiration Date was not eligible for purchase.

 

II. PAIR-OFF CALCULATION AND PAYMENT OF PAIR-OFF FEES

 

The
pair-off fee shall be assessed and calculated as provided:

 

(a) A pair-off fee  shall be assessed should the Seller notify Countrywide of its election
to pair-off all or a portion of the Commitment Amount prior to the Commitment
Expiration Date pursuant to the provisions of paragraphs I(a) and I(b) above.
In such event, the Commitment shall be amended to require Seller to deliver, and for Countrywide to purchase, the
original Commitment Amount reduced by the amount paired-off by Seller (the “Amended
Commitment Amount”) with all other terms of the Commitment remaining unchanged.
Any such  amount which Seller elects
to pair-off shall hereinafter be referred to as the “Amount Paired-Off By
Seller.”

 

(b) A pair-off fee shall be assessed should
Seller fail to deliver qualifying loans by the Commitment Expiration Date with
an aggregate principal balance equal to the Commitment Amount or the Amended Commitment Amount applicable, less the allowable delivery variance provided for in
the Commitment. Any such  shortfall in the delivery of qualifying loans
by the Commitment Expiration Date shall be hereinafter referred to as the “Delivery
Shortfall Amount.”

 

(c) The pair-off fee  to be assessed on Amounts
Paired-Off by Seller and Delivery
Shortfall Amounts shall be calculated by multiplying the Amount Paired-Off by
Seller or Delivery Shortfall Amount, as applicable, by a percentage equal to
the sum of .125% (the “Administrative Fee”), plus the positive price
difference, if any, between the percentage price posted by Countrywide as of
the Pair-Off Assessment Date (on the loans which were the subject of
the Commitment), and the percentage price to have been paid by Countrywide
pursuant to the Commitment. Countrywide’s posted percentage price on the Pair-Off Assessment Date shall be
determined as follows:

 

i.    if the Pair-Off Assessment Data is the Commitment Expiration Date, or a subsequent
date, pursuant to paragraph I(c) and
(d) above, the posted
percentage price to be used
shall be that percentage price posted by Countrywide

 

	
  

  	
   

  	
   

  

 

1

 

applicable to the earliest delivery option available
on such Pair-Off Assessment Date (e.g., the price for a mandatory 2 day
delivery).

 

ii.   If the Pair-Off
Assessment Date is earlier than the Commitment Expiration Date pursuant to paragraphs I (a) or I (b), then the
posted price to be used shall be the posted
mandatory delivery price applicable to the delivery period option which expires closest to, but not after the
Commitment Expiration Date. For example, if the Pair-Off Assessment Date is 40
days prior to the Commitment Expiration Date, the posted price to be used for
the pair-off fee calculation shall be Countrywide’s 29 day mandatory delivery
price on the Pair-Off Assessment Date. (for purposes of this example, available
mandatory delivery periods are: 2, 7, 15, 29, 45, 60 and 75 days.)

 

(d) Notwithstanding the provisions of paragraph II (c) above, the
administrative fee shall be a minimum of $100.

 

(e)  The pair-off fees assessed hereunder shall be
due and payable within five (5) business days after the Pair-Off
Assessment Date. In addition to Countrywide’s other remedies, if pair-off fees are not paid within this time
period, Seller agrees that Countrywide
shall be entitled to net and offset such fees against other amounts owed by Countrywide to
Seller.

 

AUTHORIZED AGENTS

 

The following person(s) have been authorized by appropriate resolution of Seller
to execute this Addendum and all documents necessary and appropriate to bind Seller pursuant
to the terms of this Addendum. Countrywide may rely on any instructions
received from such person(s) and the same shall be fully binding on Seller until such time as
Countrywide shall receive written instructions revoking the authority of such
person to bind Seller to any future transactions.

 

	
  1.

  	
  Anthony Hsieh

  	
   

  
	
   

  	
   

  	
   

  
	
  2.

  	
  Tomo Yebisu

  	
   

  
	
   

  	
   

  	
   

  
	
  3.

  	
  AJ Yue

  	
   

  
	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
   

  

 

COUNTRYWIDE HOME LOANS, INC. (“BUYER”)

 

	
  BY: 

  	
   

  	
  Catherine
  A. Kaiser

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TITLE:

  	
   

  	
  Senior
  Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  DATE:

  	
   

  	
  May 15,
  2002

  	
   

  

 

(“SELLER”)

 

	
  BY:

  	
   

  	
  /s/ Anthony Hsieh

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TITLE:

  	
   

  	
  CEO

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  DATE:

  	
   

  	
  4/16/02

  	
   

  

 

2

 

Addendum to Loan Purchase Agreement for Junior Loans

 

This Addendum, is made this 16
day of APRIL, 2002 between Countrywide Home Loans, Inc., (“Countrywide”),
and HOME LOAN CENTER (“Seller”), to the Loan Purchase Agreement (“LPA”) dated
as of 4/16.

 

1.             For the purposes of the sale of loans secured
by liens that are other than senior liens (“Seconds”), including home equity
lines of credit (“HELOCs”) and fixed rate loans secured by junior liens, all
provisions of the LPA shall be applicable and remain valid, binding and in full
force and effect, except as specifically modified herein. For the purposes of
the sale of all Loans other than Seconds, the provisions of the LPA as they
currently exist without the modifications provided herein shall remain valid,
binding and in full force and effect. The provisions in this Addendum shall
have no effect upon the applicability of the LPA to Loans other than Seconds.

 

2.             Wherever in the LPA the term “note” is used, the term shall include home equity
credit line agreements, and agreements of similar import. Wherever in the LPA
the term “manual” is used, the term “Guide”
shall be used in its stead.

 

3.             For the purposes of HELOCs, the first sentence of Section 6.A.(3) of the LPA
is amended and restated in its entirety as follows: “The full amount of the
draw indicated on the Authorization to Pay (as indicated in the Guide)
delivered to Lender, and no other amount, has been fully funded to the
borrower.”

 

4.             Section 6.A.(9) of the LPA is amended and restated in its entirety as
follows: “(9) There is in force for the Loan either (a) a paid-up
valid and enforceable lenders title insurance policy on the Loan insuring
Seller, its successors and assigns, issued by a Countrywide approved title
company, as to the first or second priority lien position,
as applicable, in full compliance with all requirements in the Guide, (b) an
attorney’s mortgage lien opinion, or (c) if permitted under the
requirements specified in the Guide, a title guarantee or title search.”

 

5.             Section 6.A.(18) of the LPA is added to the LPA as follows: “(18) If the Loan is in a
second lien position, none of the documents evidencing, securing or otherwise
relating to the mortgage loan in first
lien position in any way restricts or prohibits the borrower(s) from obtaining
the Loan or from creating any of the liens granted as security for the Loan and
the Loan does not violate any term or condition imposed by any such document.”

 

6.             Section 6.B.(1) of the LPA is hereby
amended and restated in its entirety as follows: “(1) Seller is duly
organized, validly existing and in good standing under the laws of its state of
incorporation and is qualified and/or licensed as necessary to transact
business, including the originating and selling of each Loan, including without
limitation, with rates of interest, loan type and other terms provided in the
Loan documents, and is in good standing in each state where property securing a
Loan is located.”

 

7.             All references in Section 8 of the
LPA to “servicing release premium” are replaced with “premium paid to Seller by
Countrywide at the time of its purchase
of the Loan”.

 

8.             The following is added as Sections 8.A.4a, and
8.B.4a and 8.C.4a: “any un-reimbursed advances made by Countrywide with respect
to such Loan, including but not limited to payments authorized by the loan
documents or law to protect the security interest; plus”, and Sections 8.A(1),
8.B(1) and 8.C(1) are amended and restated in their entirety as follows: “The
repurchase price shall be the original purchase price, less principal reduction
made since the Closing Date.”

 

The parties hereto do hereby agree to the foregoing as of the
date above first written.

 

 

	
  SELLER:

  	
    Home Loan Center

  	
   

  	
  COUNTRYWIDE HOME LOANS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
  a: 

  	
    California Corporation

  	
   

  	
  A NEW YORK CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
  BY:  

  	
    /s/ Anthony Hsieh

  	
   

  	
  BY:

  	
  /s/ Catherine A. Kaiser

  
	
   

  	
    SIGNATURE 

  	
   

  	
   

  	
  SIGNATURE 

  
	
  NAME: 

  	
    Anthony Hsieh

  	
   

  	
  NAME:

  	
  Catherine A. Kaiser

  
	
   

  	
   

  	
   

  	
   

  
	
  TITLE:

  	
    CEO

  	
   

  	
  TITLE:

  	
  Senior Vice President

  
										

 

	
  

  	
   

  	
   

  

 

1

 

Addendum to Loan Purchase Agreement - Subprime

 

This Addendum, is made this 16
day of APRIL, 02  between Countrywide
Home Loans, Inc., (“Countrywide”) and Home Loan Center (“Seller”)
to the Loan Purchase Agreement (“LPA”) dated as of 4/16.

 

1. Definitions. The terms “Subprime Loan”, “Mortgage Loan Schedule”, “Commitment”, “Commitment
Letter”, “Pool Commitment”, “Spot Commitment” and “Closing Date” shall have the
meanings set forth therefor in the “Guide” (as defined below).

 

2. Commitment to Purchase Loans. The following is hereby added at the end of
the first sentence of Section 2: “except that for the purposes of Subprime
Loans, the procedure pursuant to which Seller may commit to sell a Subprime Loan to Countrywide is detailed in the Subprime section
of the Guide.”

 

3. Representations and Warranties.

 

A.  Section 6.A (7) is amended and restated in its entirety as
follows: “All federal and state Laws, rules and regulations applicable to the
Loan for its applicable Loan Type have been complied with, including but not
limited to: the Real Estate Settlement Procedures Act, the Flood Disaster
Protection Act, the Federal Consumer Credit Protection Act
including the Truth-in-Lending and Equal Credit Opportunity Acts, the Federal
Fair Housing Act, the Home Ownership and Equity Protection Act
of 1994 and all applicable federal and state statutes or regulations governing
fraud, lack of consideration, unconscionability, consumer credit transactions,
consumer protection, interest or other charges, licensing and mortgage insurance.”

 

B.   Section 6.B (1) is amended and restated in its entirety  as follows: “Seller is duly
organized, validly existing and in good standing under the laws of its state of
incorporation and is qualified and/or licensed as necessary to transact business, including the originating and selling of each Loan,
including without limitation, with rates of interest, loan type and other terms
provided in the Loan documents, and is in good standing in each state where
property securing a Loan is located.”

 

C.   Section 6.A (18) is added as follows: “For
each Subprime Loan, all information regarding such Subprime Loan in the
Confirmation therefor and the Mortgage Loan Schedule attached to such
Confirmation is true and correct,”

 

4. Purchase Limitation. The obligation to purchase any Subprime Loans
identified in a Confirmation does not extend to any Loans that would violate
any representation and warranty by Seller contained in the LPA.

 

5. Purchase Price. The purchase price of each Subprime Loan shall be calculated by multiplying the unpaid
principal balance of each Subprime Loan (as adjusted for the borrower’s next
payment) on the Closing Date by its applicable purchase price percentage
calculated in accordance with the rate sheet at the time of purchase for “Spot”
Commitments, or as stated in the Commitment letter for “Pool” Commitments (the “Purchase Price”). If a borrower’s
payment is due 15 days or earlier after the Closing Date (an “Early Payment”),
the portion of such payment attributable to principal shall be deducted from
the unpaid principal balance for  calculating the Purchase Price. Seller shall
then retain borrower’s Early Payment when made. The purchase proceeds paid by
Countrywide to Seller shall consist
of the Purchase Price plus accrued interest as of the Closing Date and less (i) any
positive escrow balances, and (ii) any amounts actually owed and paid by Seller
for Mortgage Loan tax service contracts and flood certification determinations
which are transferable and transferred to Countrywide on the Closing Date.
Without limitation on Countrywide’s other rights herein, the Purchase Price is
subject to change if it is determined that the loan characteristics of the
Subprime Loan to be purchased differ from the characteristics represented on
the Mortgage Loan Schedule

 

6. Premium Recapture. Should any Borrower prepay a Subprime Loan
during the twelve month period following Countrywide’s purchase of the loan,
Seller shall reimburse Countywide, upon demand, some or all of the purchase
price premium above par paid by Countrywide. The reimbursement shall be calculated
using the following formula for “Spot” commitments and “Pool” commitments
unless stated otherwise in the “Pool” commitment letter:

 

	
  Purchase Price Premium

  paid by Countrywide

  	
   

  	
  x

  	
   

  	
  12 minus the number of months expired since the date
  of purchase 12

  	
   

  	
  –

  	
   

  	
  Prepay Penalty

  	
  =

  	
  Premium Refund

  

 

7. Seller’s Repurchase Obligations. Section 7.A (4) is amended
and restated in its entirety as follows; “If the first payment due Countrywide
is not received by Countrywide, whether
from the borrower directly or
forwarded by Seller if the Borrower has submitted the payment to Seller,
within 90 days of the first payment due Countrywide. For this purpose a
Borrower shall be considered to be 90 days delinquent with respect to the first
monthly payment due Countrywide if the payment is not received by Countrywide

 

	
  

  	
   

  	
   

  

 

1

 

within
three months of the payment due date, regardless of the number of days in the
month. For example, if the due date of the first payment due to Countrywide is January 15th and the
Borrower has not made his/her January 15th
payment by April 14th, the Borrower shall be considered 90 days delinquent
with respect to the January 15th payment. Seller shall not have the right
to advance funds for or on behalf of a Borrower for any delinquent payment or
to otherwise
make funds available to any
Borrower to avoid or cure a default by the
Borrower. A payment for which
Countrywide deducted funds at the time it purchased the Loan from Seller shall
not be considered the first payment due Countrywide,”

 

8. Repurchase Price. For the purposes of determining
the repurchase price of a Subprime Loan, Sections 8.A(4), 8.B(4) and 8.C(4) are
deleted, and Sections 8.A(1), 8.B(1) and 8.C(1) are amended and
restated in their entirety as follows: “The repurchase price shall be the original Purchase Price (as defined in
this Addendum), less principal reduction made since the Closing Date.”

 

9. Sellers Guide. All references to “Countrywide’s Correspondent Lender Division Loan
Purchase Program Seller’s Manual” or “Manual” throughout the LPA are replaced with
“Countrywide’s Correspondent Lending Seller’s Guide” or “Guide”, respectfully.
Seller acknowledges receipt of the Guide, which may be amended, modified or
supplemented from time to time by Countrywide, in its sole and absolute discretion, which amendments,
modifications or supplements shall be effective upon Countrywide’s sending the
same to Seller.

 

10. Brokers. Neither party has employed or otherwise engaged, nor shall employ, or
otherwise engage, any broker or finder in connection with the negotiation or
execution of the LPA, this Addendum or any Commitment, nor with respect to the
transactions contemplated by this
Addendum, in such a manner as to give rise to any claim, against any party, for
any brokerage commission, finder’s fee or
similar payment. Each party shall indemnify and defend the other party for any
claims for
brokerage commission, finder’s
fee or similar payment based upon statements or agreements alleged to have been made by the indemnifying party.

 

11. LPA
Terms. All provisions of the
LPA shall be applicable and remain valid, binding and in full force and effect,
except as specifically modified herein.

 

The parties hereto do hereby agree to the foregoing as of the date above first
written.

 

 

	
  SELLER:

  	
  COUNTRYWIDE:

  
	
   

  	
   

  
	
  Home Loan Center

  	
   

  	
  COUNTRYWIDE HOME LOANS, INC.

  
	
  a:

  	
  California Corporation

  	
   

  	
  A NEW YORK CORPORATION

  
	
  By:

  	
  /s/ Anthony Hsieh

  	
   

  	
  By:

  	
  /s/ Catherine A. Kaiser

  
	
   

  	
  SIGNATURE

  	
   

  	
   

  	
  SIGNATURE

  
	
  Name:

  	
  Anthony Hsieh

  	
   

  	
  Name:

  	
  Catherine A. Kaiser

  
	
  Title:

  	
  CEO

  	
   

  	
  Title:

  	
  Senior Vice President

  
								

 

2

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